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<SEC-DOCUMENT>0000950134-07-002168.txt : 20070206
<SEC-HEADER>0000950134-07-002168.hdr.sgml : 20070206
<ACCEPTANCE-DATETIME>20070206170203
ACCESSION NUMBER:		0000950134-07-002168
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070131
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070206
DATE AS OF CHANGE:		20070206

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
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-12919
		FILM NUMBER:		07585143

	BUSINESS ADDRESS:	
		STREET 1:		3551 PLANO PARKWAY
		CITY:			THE COLONY
		STATE:			TX
		ZIP:			75056
		BUSINESS PHONE:		469-384-5000

	MAIL ADDRESS:	
		STREET 1:		3551 PLANO PARKWAY
		CITY:			THE COLONY
		STATE:			TX
		ZIP:			75056

	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
<SEQUENCE>1
<FILENAME>d43349e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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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 style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

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

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


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

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported) January&nbsp;31, 2007</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Pizza Inn, Inc.</B>
</DIV>

<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%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<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>


<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><B>3551 Plano Parkway, The Colony, Texas</B><BR>
(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>75056</B><BR>
(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Registrant&#146;s telephone number, including area code <B>(469)&nbsp;384-5000</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Not Applicable</B><BR>
(Former name or former address, if changed since last report)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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):
</DIV>


<DIV style="margin-top: 6pt">
<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="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&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>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&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>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>



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

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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="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;5.02 Departure of Directors or Certain Officers; Election of<BR>
Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;Clinton J. Coleman, an employee of Newcastle Capital Management, L.P., who has been serving as
Interim Chief Financial Officer and interim principal accounting officer of Pizza Inn, Inc. (the
&#147;Company&#148;) will relinquish those duties effective February&nbsp;8, 2007, following the filing of the
Company&#146;s quarterly report on Form 10-Q for the quarterly period ended December&nbsp;24, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;On January&nbsp;31, 2007, the Company announced the appointment of Charles R. Morrison as Chief
Financial Officer. Prior to joining the Company, Mr.&nbsp;Morrison, age 38, served as President of
Steak and Ale and The Tavern, a restaurant company that is a division of Metromedia Restaurant
Group, located in Plano, Texas from 2005 to November&nbsp;2006. Mr.&nbsp;Morrison served from 2004 to 2005
as Chief Financial Officer for both Steak and Ale and Ponderosa (Ponderosa is also a restaurant
company that is a division of Metromedia Restaurant Group). From 1997 to 2004, Mr.&nbsp;Morrison served
in multiple roles as Vice President of Finance, Vice President of Product Management and Director
of Strategic Planning for Kinko&#146;s, Inc., a retailer of printing, copying and office solutions with
annual revenues of approximately $2&nbsp;billion. From 1996 to 1997, Mr.&nbsp;Morrison served as Director of
Strategic Planning for Boston Market Corporation, a restaurant company based in Golden, Colorado.
From 1990 to 1996, Mr.&nbsp;Morrison served various roles in finance and was Director of Strategic
Planning for Pizza Hut Restaurants based in Dallas, Texas from 1995 to 1996. Mr.&nbsp;Morrison received
a Bachelor of Science in Business Administration from Kansas State University in 1990.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Morrison has no family relationships with any other director or executive officer of the
Company, and there are no transactions in which Mr.&nbsp;Morrison has an interest requiring disclosure
under Item 404(a) of Regulation&nbsp;S-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Compensation Committee of the Company&#146;s Board of Directors has approved the following
compensation arrangements for Mr.&nbsp;Morrison: (1)&nbsp;an annual base salary of $250,000, subject to
annual review by the Company&#146;s Chief Executive Officer and the Compensation Committee, (2)&nbsp;a
one-time guaranteed bonus of $40,000 payable on June&nbsp;24, 2007, and (3)&nbsp;beginning with the 2008
fiscal year, a bonus of up to 35% of base salary, upon meeting criteria established from time to
time by the Compensation Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The foregoing compensation arrangements are set forth in an employment offer letter sent by the
Company to Mr.&nbsp;Morrison on January&nbsp;26, 2007 and accepted by him on January&nbsp;31, 2007 (the
&#147;Employment Letter&#148;). The Employment Letter further provides that in the event Mr.&nbsp;Morrison&#146;s
employment is terminated by the Company without &#147;cause&#148; (as such term is defined in the Employment
Letter), the Company must pay him severance benefits equal to (1)&nbsp;3&nbsp;months of his then current base
annual salary and (2)&nbsp;medical, dental and other insurance benefits for the longer of three months
following the date of his termination or the minimum period required by applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The foregoing description of the Employment Letter does not purport to be complete, and is
qualified in its entirety by reference to the Employment Letter, which is included as Exhibit&nbsp;10.1
to this Current Report on Form 8-K and incorporated herein by reference.
</DIV>


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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Morrison will assume the duties of principal financial officer and principal accounting officer
of the Company effective February&nbsp;8, 2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;Exhibits
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.1 Employment Offer Letter dated as of January&nbsp;26, 2007, between Pizza Inn, Inc. and Charles R.
Morrison
</DIV>


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

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




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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.
</DIV>

<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">Pizza Inn, Inc.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: February 6, 2007&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Timothy P. Taft
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Timothy P. Taft, President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>d43349exv10w1.htm
<DESCRIPTION>EMPLOYMENT OFFER LETTER
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w1</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="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.1
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">January&nbsp;26, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Charles R. Morrison<BR>
1221 Westwood Drive<BR>
Roanoke, TX 76262

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Charlie:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I am pleased to be writing today to offer you the position of Chief Financial Officer for Pizza
Inn, Inc. (&#147;Company&#148;) reporting to the President and Chief Executive Officer. This position is
being offered as a full-time position starting as soon as possible on a mutually agreeable date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Your initial base rate of pay, beginning on your start date, will be $250,000 annually. Your base
rate of pay will be reviewed and set annually by the Chief Executive Officer and Compensation
Committee in accordance with guidelines developed from time to time by the Compensation Committee.
However, your base pay will not be decreased below $250,000 annually. You will be paid on every
other Friday, in accordance with the Company&#146;s standard payroll practice, including compliance with
applicable withholding taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You will earn a guaranteed bonus of $40,000 for the period of time beginning with your start date
through the end of fiscal 2007 (occurring on June&nbsp;24, 2007. Beginning with fiscal year &#146;08 a bonus
of up to 35% of your base rate of pay may be earned upon meeting criteria established from time to
time by the Compensation Committee. Such criteria will be set by the Compensation Committee in
accordance with the Committee&#146;s timing and procedures for establishing annual performance
objectives for the Company&#146;s senior management team. Should you voluntarily resign from the Company
or be terminated for cause (as defined below) prior to the payment dates of the bonuses described
in the preceding sentences you will not be entitled to such bonuses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It is my goal to present to the Compensation Committee and the board a comprehensive stock option
and ownership plan to become effective no later than the middle of fiscal 2008. Assuming approval
of such a plan and subject to its provisions, and assuming your continued employment with the
Company, you will be entitled to participate in the plan on the terms generally applicable to the
Company&#146;s senior management team.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company offers a benefits package for its senior management employees and upon your hire date
you will be entitled to participate in all employee benefits for which you are eligible, which
include medical, vacation and other benefits. All such benefits will be commensurate with those
offered all members of the senior management team. Detailed information about these benefits will
be mailed to you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It is anticipated that you will be a long-term employee. However, like all employees of the
Company, your employment with the Company is for no specified period and constitutes &#147;at-will&#148;
employment, which means that you have the right to resign from your employment at any time, with or
without notice, and the Company has the right to modify your employment, subject to the
compensation provisions outlined herein, or terminate your employment at any time, with or without
cause, and with or without notice. No representative of the Company has the authority to enter
into any agreement with you guaranteeing employment for any specified period of time or
</DIV>

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

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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="left" style="font-size: 10pt; margin-top: 6pt">Charles Morrison<BR>
January&nbsp;26, 2007<BR>
Page 2 of 3

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">modifying the at-will relationship, unless it is done so in writing and signed by you and the
Company&#146;s President and Chief Executive Officer. You will also be subject to all other polices
applicable to employees of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Should the Company terminate your employment other than for cause, you will receive severance
benefits equal to (i)&nbsp;three (3)&nbsp;months of your base rate of pay, and (ii)&nbsp;medical, dental and other
insurance benefits that you may then be receiving, for the longer of a period of three (3)&nbsp;months
following the date of your termination or the minimum period required by applicable law. If you
are terminated for cause, you will receive no severance payment, and no other benefits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For purposes of this offer letter, &#147;cause&#148; is defined as your:
</DIV>

<DIV style="margin-top: 6pt">
<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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>commission of a dishonest or fraudulent act in connection with your
employment, or the misappropriation of Company property in the reasonable
determination of the board;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>death, or inability (with, in the case of disability, reasonable
accommodation) for any reason to perform duties essential to your position for a
continuous period of 30&nbsp;days (60&nbsp;days in the case of disability) for reasons other
than actions by the Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>willful disobedience of a lawful directive of the board (whether by
commission or omission);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>indictment on, formal charge of, conviction of, or plea of <I>nolo contendere</I>
to, a felony;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>indictment on, formal charge of, conviction of, or plea of <I>nolo contendere </I>to
any misdemeanor involving dishonesty (such as theft, forgery, or fraud) or moral
turpitude;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>insobriety during working hours, in violation of standard Company policy;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>use of illegal drugs in violation of standard Company policy; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(viii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>gross negligence or willful misconduct in the performance of duties.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Any notice of discharge for cause shall describe with reasonable specificity the cause for
termination of employment as well as the effective date of the termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This offer letter sets forth the terms of your employment with the Company and supersedes any and
all prior and contemporaneous representations and agreements, whether written or oral, with the
exception of the Non-Disclosure Agreement enclosed with this offer letter. Any waiver of a right
under this agreement must be in writing. This agreement is governed by Texas law.
</DIV>

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

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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="left" style="font-size: 10pt; margin-top: 6pt">Charles Morrison<BR>
January&nbsp;26, 2007<BR>
Page 3 of 3

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the foregoing terms are agreeable, please sign below and return the signed copy to us, along
with a signed original Non-Disclosure Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Best regards,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ Timothy P. Taft<BR>
Timothy P. Taft

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>AGREE AND ACCEPTED:</B>
</DIV>

<DIV align="left">
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signed
</DIV></TD>
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    <TD align="left" valign="top">/s/ Charles Morrison</TD>
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    <TD align="left" valign="top">Charles Morrison</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:
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    <TD align="left" valign="top">January&nbsp;31, 2007</TD>
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