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1.
    
    I shall receive $300,000 from the Company, payable in twelve monthly
installments of $25,000 each, consistent with the customary payroll practices of the Company. I
shall also be entitled to receive any salary that has been accrued and  earned through
the date hereof, any unreimbursed expenses properly incurred prior to the date hereof and
bonus for the fiscal year ended June 24, 2007 of $50,000.2.
    
    I agree to release all claims which I may have again the Company, its
agents, employees, officers, directors, successors, related or affiliated entities,
including its investors and their affiliates, and their agents, employees, officers, directors
and successors (the Released Parties), relating in any way to my employment or
termination of employment. This release includes, but is not limited to, all claims
and rights under all federal, state or local laws or regulations, employment practice
laws and civil rights acts and claims and damages for unpaid compensation, un-reimbursed
expenses, wrongful discharge, breach of contract, negligence, defamation, fraud
and personal injury (including mental or emotional anguish, humiliation,
embarrassment, loss of professional status, prestige and self-esteem) and all claims for loss of
consortium or loss of services, support or affection, and damages, costs, expenses, compensation,
benefits, attorneys fees, and any other claims arising out of my employment or
termination of employment. In addition, I promise never to sue over
any such claims or
institute any other action, administrative proceeding or lawsuit against the
Company or any of the Released Parties for claims arising out of my employment
or termination of employment.3.
    
    I agree not to disparage the professional or personal reputation of
the Company, its officers, shareholders, directors, employees, franchisees and
other agents and the




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Company agrees not to disparage my professional or personal reputation. This
non-disparagement provision applies to any public or private statements, comments, or
communications in any form, whether oral, written, or electronic.4.
    
    Nothing in this letter shall supersede or amended the provisions of the agreement that I
entered into with the Company on March 31, 2005, as amend on November 30, 2006
(collectively, the Employment Agreement). Notwithstanding the foregoing, I
understand that the Company does not have any further obligations to me pursuant to
Articles 3 and 4 of the Employment Agreement.5.
    
    The Nonqualified Stock Option Agreement dated March 31, 2005 that I entered into with
the Company (the Option Agreement) is amended to grant me until 5 p.m. on the date
which is thirty (30) days following the date of my resignation to exercise the vested
options granted pursuant to the Option Agreement. I acknowledge and understand that
without this amendment my right to exercise the vested options granted pursuant to the
Option Agreement would expire at 5 p.m. on the date of my resignation of employment.
  Sincerely,/s/ Timothy P. TaftTimothy P. Taft5606 Palomar Lane
Dallas, Texas 75229 Agreed and Accepted: 

PIZZA INN, INC./s/ Mark E. SchwarzMark E. SchwarzChairman of the Board