Document:

Amendment No. 5 to Employment Agreement - Harris J. Pappas

 Exhibit 10jj 
 AMENDMENT NO. 5 TO 
 EMPLOYMENT AGREEMENT 

This Amendment No. 5 (“Amendment”) to the Employment Agreement, dated November 9, 2005, between Luby’s, Inc., a
Delaware corporation (“Luby’s” or the “Company”), and Harris J. Pappas, a resident of Houston, Texas (“Executive”), is executed as of the 2nd day of September, 2010 (the “Effective Date”). For
purposes of this Amendment, “Luby’s” or the “Company” shall include the subsidiaries of Luby’s. Luby’s and Executive are sometimes referred to herein individually as a “Party,” and collectively as the
“Parties.” 
 RECITALS 
 WHEREAS, the Parties previously entered into the following agreements: 
  

	 	(i)	the Employment Agreement, dated November 9, 2005; 

  

	 	(ii)	Amendment No. 1 to Employment Agreement, dated October 29, 2007; 

 

	 	(iii)	Amendment No. 2 to Employment Agreement, dated November 19, 2008; 

 

	 	(v)	Amendment No. 3 to Employment Agreement, dated November 19, 2009; and 

 

	 	(vi)	Amendment No. 4 to Employment Agreement, dated April 15, 2010 (collectively, the “Agreement”); 

WHEREAS, on September 2, 2010, the Company and Executive mutually agreed to increase Executive’s Base Salary from $250,000 to
$400,000 per annum; 
 WHEREAS, the Company desires to increase the Executive’s Base Salary to $400,000 per annum;

 NOW, THEREFORE, for and in consideration of the mutual promises, covenants and obligations contained herein, the Company and
Executive agree as follows: 
 1. Definitions. Capitalized terms used in this Amendment, to the extent not otherwise defined
herein, shall have the same meaning as in the Agreement, as amended hereby. 
 2. Amendments. As of the Effective Date,
Section 4 of the Agreement is hereby amended and restated as follows: 
 “4. Compensation.
Executive’s compensation during his employment under the terms of this Agreement shall be as follows: 
 (a)
Base Salary. Commencing September 2, 2010, Luby’s shall pay to Executive a fixed annual base salary (the “Base Salary”) of Four Hundred Thousand Dollars ($400,000) for each year. The Base Salary shall be payable in equal,
semi-monthly installments on or about the 15th day and last day of each month or at such other times and in such installments as may be agreed between Luby’s and Executive. All payments shall be subject to the deduction of payroll taxes, income
tax withholdings, and similar deductions and withholdings as required by law. 
 (b) Bonus. During each year of
the Term, in addition to the Base Salary, Executive shall be eligible but not entitled to receive incentive compensation in an amount that the independent Board of Directors of the Company or an authorized committee thereof, shall determine, solely
based upon the Company’s performance relative to Board-approved goals relating to the Company’s achievement of same-store sales (50%) and earnings before interest, taxes, depreciation and amortization (50%) targets.”

 3. Noncompetition. Executive hereby acknowledges and reaffirms the provisions of Section 11(a) of the Agreement.

 4. CONTROLLING LAW. THIS AMENDMENT SHALL BE DETERMINED AND GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO ANY CONFLICTS OF LAWS PROVISIONS. 
 5. Severability.
If any term or other provision of this Amendment is invalid, illegal, or incapable of being enforced by any rule of applicable law, or public policy, all other conditions and provisions of this Amendment shall nevertheless remain in full force and
effect so long as the economic or legal substance of the transactions contemplated herein are not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal, or incapable of
being enforced, the parties hereto shall negotiate in good faith to modify this Amendment so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated herein
are consummated as originally contemplated to the fullest extent possible. 
 6. Effect of Amendment. This Amendment shall be
binding upon Executive and his heirs, executors, legal representatives, successors and assigns, and Luby’s and its legal representatives, successors and assigns. Except as provided in the preceding sentence, this Amendment, and the rights and
obligations of the Parties hereunder, are personal and neither this Amendment, nor any right, benefit, or obligation of either Party hereto, shall be subject to voluntary or involuntary assignment, alienation, or transfer, whether by operation of
law or otherwise, without the prior written consent of the other Party. 
 7. Execution. This Amendment may be executed and
delivered (including by facsimile transmission) in one or more counterparts all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to
the other Party, it being understood that all Parties need not sign the same counterpart. 
 [Signatures appear on following
page] 

 IN WITNESS WHEREOF, the Parties have executed this Amendment effective as of the Effective
Date. 
  

					
	 /s/ Harris J. Pappas
	 		 	
	Harris J. Pappas	 		 	
	Luby’s Inc.	 		 	
			
	 /s/ Gasper Mir, III.
	 		 	
	Gasper Mir, III	 		 	
	Chairman of the BoardWRITTEN AGREEMENT

 Exhibit 10.01 
 UNITED STATES OF AMERICA 
 BEFORE THE 

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM 
 WASHINGTON, D.C. 
  

			
	Written Agreement by and between	 	
		
	 BANK OF THE CAROLINAS CORPORATION
 Mocksville, North Carolina
	 	Docket No. 11-103-WA/RB-HC
		
	and	 	
		
	 FEDERAL RESERVE BANK
OF RICHMOND
 Richmond, Virginia
	 	

 WHEREAS, Bank of the Carolinas Corporation, Mocksville, North Carolina (“BCC”), a registered
bank holding company, owns and controls Bank of the Carolinas, Mocksville, North Carolina (“Bank”), a state-chartered nonmember bank, and a nonbank subsidiary; 
 WHEREAS, it is the common goal of BCC and the Federal Reserve Bank of Richmond (the “Reserve Bank”) to maintain the financial soundness of BCC so that BCC may serve as a source of strength to
the Bank; 
 WHEREAS, BCC and the Reserve Bank have mutually agreed to enter into this Written Agreement (the
“Agreement”); and 
 WHEREAS, on August 24, 2011, the board of directors of BCC, at a duly constituted meeting,
adopted a resolution authorizing and directing Dr. Francis W. Slate to enter into this Agreement on behalf of BCC, and consenting to compliance with each and every provision of this Agreement by BCC and its institution-affiliated parties,
as defined in sections 3(u) and 

 
8(b)(3) of the Federal Deposit Insurance Act, as amended (the “FDI Act”) (12 U.S.C. §§ 1813(u) and 1818(b)(3)). 

NOW, THEREFORE, BCC and the Reserve Bank agree as follows: 
 Source of Strength 
 1. The board of directors of BCC shall take appropriate
steps to fully utilize BCC’s financial and managerial resources, pursuant to section 38A of the FDI Act (12 U.S.C. § 1831o-1) and section 225.4 (a) of Regulation Y of the Board of Governors of the Federal Reserve System (the
“Board of Governors”) (12 C.F.R. § 225.4(a)), to serve as a source of strength to the Bank, including, but not limited to, taking steps to ensure that the Bank complies with the Consent Order issued by the Federal Deposit Insurance
Corporation on April 27, 2011, and any other supervisory action taken by the Bank’s federal or state regulator. 
 Dividends,
Distributions, and Other Payments 
 2. (a) BCC shall not declare or pay any dividends without the prior written
approval of the Reserve Bank and the Director of the Division of Banking Supervision and Regulation (the “Director”) of the Board of Governors. 
 (b) BCC shall not directly or indirectly take dividends or any other form of payment representing a reduction in capital from the Bank without the prior written approval of the Reserve Bank. 

(c) BCC and its nonbank subsidiary shall not make any distributions of interest, principal, or other sums on subordinated debentures or
trust preferred securities without the prior written approval of the Reserve Bank and the Director. 
 (d) All requests for
prior approval shall be received by the Reserve Bank at least 30 days prior to the proposed dividend declaration date, proposed distribution on 

 
subordinated debentures, and required notice of deferral on trust preferred securities. All requests shall contain, at a minimum, current and projected information on BCC’s capital,
earnings, and cash flow; the Bank’s capital, asset quality, earnings, and allowance for loan and lease losses; and identification of the sources of funds for the proposed payment or distribution. For requests to declare or pay dividends, BCC
must also demonstrate that the requested declaration or payment of dividends is consistent with the Board of Governors’ Policy Statement on the Payment of Cash Dividends by State Member Banks and Bank Holding Companies, dated November 14,
1985 (Federal Reserve Regulatory Service, 4-877 at page 4-323). 
 Debt and Stock Redemption 

3. (a) BCC and its nonbank subsidiary shall not, directly or indirectly, incur, increase, or guarantee any debt without the prior
written approval of the Reserve Bank. All requests for prior written approval shall contain, but not be limited to, a statement regarding the purpose of the debt, the terms of the debt, and the planned source(s) for debt repayment, and an analysis
of the cash flow resources available to meet such debt repayment. 
 (b) BCC shall not, directly or indirectly, purchase or
redeem any shares of its stock without the prior written approval of the Reserve Bank. 
 Capital Plan 

4. Within 60 days of this Agreement, BCC shall submit to the Reserve Bank an acceptable written plan to maintain sufficient capital at BCC
on a consolidated basis. The plan shall, at a minimum, address, consider, and include: 
 (a) The consolidated
organization’s and the Bank’s current and future capital requirements, including compliance with the Capital Adequacy Guidelines for Bank Holding Companies: Risk-Based Measure and Tier 1 Leverage Measure, Appendices A and D of

 
Regulation Y of the Board of Governors (12 C.F.R. Part 225, App. A and D) and the applicable capital adequacy guidelines for the Bank issued by the Bank’s federal regulator; 

(b) the adequacy of the Bank’s capital, taking into account the volume of classified credits, its risk profile, the adequacy of the
allowance for loan and lease losses, current and projected asset growth, and projected earnings; 
 (c) the source and timing of
additional funds necessary to fulfill the consolidated organization’s and the Bank’s future capital requirements; 

(d) supervisory requests for additional capital at the Bank or the requirements of any supervisory action imposed on the Bank by its
federal regulator; and 
 (e) the requirements of section 38A of the FDI Act and section 225.4(a) of Regulation Y of the Board
of Governors that BCC serve as a source of strength to the Bank. 
 5. BCC shall notify the Reserve Bank, in writing, no more
than 45 days after the end of any quarter in which any of BCC’s capital ratios fall below the approved plan’s minimum ratios. Together with the notification, BCC shall submit an acceptable written plan that details the steps that BCC will
take to increase BCC’s capital ratios to or above the approved plan’s minimums. 
 Cash Flow Projections 

6. Within 45 days of this Agreement, BCC shall submit to the Reserve Bank a written statement of its planned sources and uses of cash for
debt service, operating expenses, and other purposes (“Cash Flow Projection”) for 2011. BCC shall submit to the Reserve Bank a Cash Flow Projection for each calendar year subsequent to 2011 at least one month prior to the beginning of that
calendar year. 

 Compliance with Laws and Regulations 

7. (a) In appointing any new director or senior executive officer, or changing the responsibilities of any senior executive officer
so that the officer would assume a different senior executive officer position, BCC shall comply with the notice provisions of section 32 of the FDI Act (12 U.S.C. § 1831(i) and Subpart H of Regulation Y of the Board of Governors (12 C.F.R.
§§ 225.71 et seq.). 
 (b) BCC shall comply with the restrictions on indemnification and severance payments of
section 18(k) of the FDI Act (12 U.S.C. § 1828(k)) and Part 359 of the FDIC’s regulations (12 C.F.R. Part 359). 
 Progress Reports

 8. Within 30 days after the end of each calendar quarter following the date of this Agreement, the board of directors
shall submit to the Reserve Bank written progress reports detailing the form and manner of all actions taken to secure compliance with the provisions of this Agreement and the results thereof, and a parent company only balance sheet, income
statement, and, as applicable, report of changes in stockholders’ equity. 
 Approval and Implementation of Plan 

9. (a) BCC shall submit a written capital plan that is acceptable to the Reserve Bank within the applicable time period set forth in
paragraph 4 of this Agreement. 
 (b) Within 10 days of approval by the Reserve Bank, BCC shall adopt the approved capital plan.
Upon adoption, BCC shall promptly implement the approved plan, and thereafter fully comply with it. 
 (c) During the term of
this Agreement, the approved capital plan shall not be amended or rescinded without the prior written approval of the Reserve Bank. 

 Communications 
 10. All communications regarding this Agreement shall be sent to: 
  

			
	(a)	  	Ms. Joan T. Garton
		  	Vice President
		  	Federal Reserve Bank of Richmond
		  	P.O. Box 27622
		  	Richmond, Virginia 23261-7622
		
	(b)	  	Mr. Stephen Talbert
		  	President and Chief Executive Officer
		  	Bank of the Carolinas Corporation
		  	P.O. Box 129
		  	Mocksville, North Carolina 27028

 Miscellaneous 
 11. Notwithstanding any provision of this Agreement, the Reserve Bank may, in its sole discretion, grant written extensions of time to BCC to comply with any provision of this Agreement. 

12. The provisions of this Agreement shall be binding upon BCC and its institution- affiliated parties, in their capacities as such, and
their successors and assigns. 
 13. Each provision of this Agreement shall remain effective and enforceable until stayed,
modified, terminated, or suspended in writing by the Reserve Bank. 
 14. The provisions of this Agreement shall not bar, estop,
or otherwise prevent the Board of Governors, the Reserve Bank, or any other federal or state agency from taking any other action affecting BCC, the Bank, the nonbank subsidiary of BCC, or any of their current or former institution-affiliated parties
and their successors and assigns. 

 15. Pursuant to section 50 of the FDI Act (12 U.S.C. § 1831aa), this Agreement is
enforceable by the Board of Governors under section 8 of the FDI Act (12 U.S.C. § 1818). 
 IN WITNESS
WHEREOF, the parties have caused this Agreement to be executed as of the 26th day of August, 2011. 
  

									
	 BANK OF THE CAROLINAS CORPORATION
	 		 	 FEDERAL RESERVE BANK OF RICHMOND

					
	By:	 	 /s/ Dr. Francis W. Slate
	 		 	By:	 	 /s/ Joan T. Garton

		 	Dr. Francis W. Slate	 		 		 	Joan T. Garton
		 	Chairman of the Board of Directors	 		 		 	Vice President

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