Document:

exv10w17

 

Exhibit 10.17

AMENDMENT TO EMPLOYMENT AGREEMENT

     This Amendment to Employment Agreement (the “Amendment”) is entered into effective as
of November 30, 2006, between Pizza Inn, Inc. (the “Company”), and Timothy P. Taft (the
“Executive”).

     WHEREAS, the Company and Executive desire to amend that certain employment agreement entered
into as of March 31, 2005 (the “Agreement”);.

     NOW, THEREFORE, in consideration of the mutual agreements contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereby agree as follows:

	1.	 	Definitions. All terms not otherwise defined herein shall have the meaning set forth
in the Agreement.

2. Amendments. 

	 	a.	 	Section 1.4 of the Agreement is hereby amended and replaced in its
entirety as follows:
	 
	 	 	 	1.4 Place of Work. The Executive shall perform services under this Agreement
at the Company’s principal office currently located in The Colony, Texas, and at such
other place or places as directed by the Chairman or Board of Directors.
	 
	 	b.	 	Section 3.1 of the Agreement is hereby amended and replaced in its entirety as
follows:
	 
	 	3.1.	 	Base Salary. During the first twelve months of this Agreement, the
base salary of the Executive for all of his employment services to the Company under
this Agreement shall be $1 per year, which the Company shall pay to the Executive in
advance. For the six-month period between April 1, 2006 and September 30, 2006, the
Company shall pay the Executive a total salary of $11,830, net of all applicable
deductions for taxes and the employee’s share of the cost of employee benefits. For
the period between October 1, 2006 and June 27, 2007, the Company shall pay the
Executive an annualized salary of $300,000, net of all applicable deductions for taxes
and the employee’s share of the cost of employee benefits Thereafter, the Executive’s
base salary shall be reviewed annually by the Board of Directors of the Company.

	 
	 	 	 	No payment under this Section 3.1 may be accelerated, deferred or delayed, nor
may the time or form of such payment be changed at the Executive’s election.
	 
	 	c.	 	Section 3.2 of the Agreement is hereby amended and replaced in its entirety as
follows:
	 
	 	3.2.	 	Bonuses. For the period between October 1, 2006 and June 27, 2007,
the Executive shall be eligible to earn a bonus of $338,000. Of that amount, $138,000
shall be a minimum base bonus amount. The Executive may earn an additional amount up
to $200,000 as determined by the Compensation Committee, provided that (i) the
Executive achieves performance goals determined by the Compensation Committee, and (ii)
this Agreement has not been terminated in accordance with Section 4.1 or
Section 4.2. The total amount of the bonus earned and payable as provided
herein, must be paid on or before September 1, 2007.
	 
	 	 	 	No payment under this Section 3.2 may be accelerated, deferred or delayed, nor
may the time or form of such payment be changed at the Executive’s election.
	 
	 	d.	 	Section 4.3 of the Agreement is hereby amended and replaced in its entirety as
follows:

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	 	 	 	4.3 Post-Termination Obligations to Executive. If the Company terminates the
employment of the Executive for Cause, or the Executive voluntary terminates his
employment, the Company shall have no further liability or obligation to the Executive
under this Agreement or otherwise in connection with his employment hereunder, except
for (i) any unpaid salary accrued through the date of termination, (ii) any unreimbursed
expenses properly incurred prior to the date of termination, and (iii) rights granted to
the Executive under any executive benefit plan (in accordance with the terms of any such
plan). If the Company terminates the employment of the Executive without Cause, then
the Executive shall be entitled to be paid, in addition to the foregoing amounts, either
(a) during the first twelve months of this Agreement, an amount equal to $25,000 for
each full month the Executive has been employed hereunder, payable in a lump sum within
30 business days following such termination, or (b) commencing on the first anniversary
of his employment hereunder, an amount equal to twelve months of the then base salary of
the Executive, payable at the election of the Company either (x) in a lump sum, or (y)
in equal monthly installments in the same manner as if the employment of the Executive
had not been terminated.
	 
	 	 	 	No payment of any amount under this Section 4.3 shall be accelerated, deferred,
or delayed. The Executive may not make any election as to the time or form of payment
under this Section 4.3. The determination of whether the Executive was a
“specified employee” under Proposed Treasury Regulation §1.409A-1(i) shall be made as of
the immediately preceding December 31st. If the Executive is a specified
employee, any payment of amounts due under this Section 4.3 shall not commence
until six months and two days following the date on which the Executive separated from
service with the Company (with such separation from service defined under Proposed
Treasury Regulation §1.409A-1(h)) and the first six months of separation pay that would
have been payable hereunder shall be paid to the Executive on the date that is six
months and two days following his separation from service. All monthly payments after
such initial payment shall be paid on the first day of each next following month until
the full amount payable under this Section 4.3 has been paid.
	 
	 	e.	 	Section 4.4 (ii) of the Agreement is hereby amended and replaced in its entirety as
follows:
	 
	 	(ii)	 	For purposes of this Section 4.4, “Good Reason” shall mean (a) a reduction
in the base salary of the Executive following any Change in Control; or (b) a material
diminution of the employment responsibilities and authority of the Executive following
any Change in Control. No payment may be made for any “Good Reason” unless the Change
in Control qualifies as a Change in Control under Code Section 409A and any guidance
issued thereunder, as currently in effect. Any distribution under this Section
4.4 shall be paid only on account of a Change in Control as defined under Code
Section 409A and the guidance thereunder and no payment shall be made if the
requirements for a Change in Control distribution under Code Section 409A and the
guidance issued thereunder are not satisfied. No payment under this Section 4.4
may be accelerated, nor may the time or form of payment be changed. The Executive may
not elect to defer any payment under this Section 4.4.
	 
	 	f.	 	Section 4.5 of the Agreement is hereby amended and replaced in its entirety as
follows:
	 
	 	 	 	4.5 Exclusive Benefits. Any post-termination payments made to the
Executive pursuant to Section 4.3 or Section 4.4 are in lieu of any and
all other benefits or claims which the Executive might assert against the Company, and
may be conditioned upon the Executive’s execution of a full and complete release of the
Company from any and all liabilities arising in connection with his employment by the
Company or the termination thereof. Except as otherwise expressly provided, such
payments shall be made to the Executive in accordance

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	 	 	 	with the Company’s customary payroll practices. To the extent such practices do not
conflict with the terms of this Agreement or Code Section 409A and the guidance issued
thereunder, such payments shall be subject to withholding for federal and state income
taxes, social security payments, employee benefit costs and similar deductions, as
required by applicable law. The Company shall be entitled to suspend all
post-termination payments to the Executive during any period when the Executive is in
breach of any of the covenants contained in Article 5 and Article 6, or as required to
comply with Code Section 409A.
	 
	 	g.	 	Section 8.2 of the Agreement is hereby amended and replaced in its entirety as
follows:
	 
	 	 	 	8.2 Construction. This Agreement, to the extent it includes any
arrangement that constitutes a nonqualified deferred compensation plan or arrangement
under Code Section 409A shall be interpreted and construed in a manner consistent with
satisfying such requirements, and to the extent any arrangement under this Agreement may
constitute a benefit or arrangement that is exempt from Code Section 409A shall be
construed and interpreted in a manner to comply with such exemption’s requirements.
	 
	 	h.	 	Section 8.3 of the Agreement is hereby amended and replaced in its entirety as
follows:
	 
	 	 	 	8.3 Company’s Right to Amend. The Executive hereby consents to the Company
making any unilateral amendments documented in writing to this Agreement that are
necessary to bring this Agreement in compliance with any exemption from Code Section
409A’s application under the final regulations issued thereunder or that are necessary
to bring any arrangement under this Agreement that constitutes a nonqualified deferred
compensation plan or arrangement into compliance with the requirements of any such final
regulations issued.
	 
	 	i.	 	Section 8.4 of the Agreement is hereby amended and replaced in its entirety as
follows:
	 
	 	 	 	8.4 Notices. All notices required to be given under this Agreement shall be in
writing and shall be deemed to have been given and received when personally delivered,
or when mailed by registered or certified mail, postage prepaid, return receipt
requested, or when sent by overnight delivery service, addressed as follows:

	 	 	 	 	 
	 

	 	If to the Executive:
	 	Timothy P. Taft
	 

	 	 	 	5606 Palomar Lane
	 

	 	 	 	Dallas, Texas 75229
	 
	 	 	 	 
	 

	 	If to the Employer:
	 	Pizza Inn, Inc.
	 

	 	 	 	3551 Plano Parkway
	 

	 	 	 	The Colony, Texas 75056

     Such addresses may be changed from time to time by written notice to the other party.

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     IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have duly
executed this Agreement as of the day and year first written above.

	 	 	 	 	 
	 	EXECUTIVE:

 	 
	 	/s/ Timothy P. Taft
 	 
	 	Timothy P. Taft 	 
	 	 	 
	 

	 	 	 	 	 
	 	COMPANY:

PIZZA INN, INC.

 	 
	 	By:  	/s/ Mark E. Schwarz
 	 
	 	 	Mark E. Schwarz, 	 
	 	 	Chairman of the Board 	 
	 

Page 4Exhibit
10.1

SHARE PURCHASE AGREEMENT

THIS SHARE
PURCHASE AGREEMENT (this
‘‘Agreement’’) is made as of December
1, 2006, between MBP IIII Plan Investors, L.P.
(‘‘MBP’’), Millennium Partners II,
L.P. (‘‘Millennium Partners’’), DLJ MB
Partners III GmbH & Co. KG (‘‘DLJ MB
Partners’’), DLJ Offshore Partners III-2, C.V.
(‘‘DLJ Offshore-2’’), DLJ Offshore
Partners III-1, C.V. (‘‘DLJ
Offshore-1’’), DLJ Offshore Partners III C.V.
(‘‘DLJ Offshore’’) and DLJMB Overseas
Partners III, C.V. (‘‘DLJMB
Overseas’’, and collectively with MBP, Millennium
Partners, DLJ MB Partners, DLJ Offshore-2, DLJ Offshore-1 and DLJ
Offshore, ‘‘Sellers’’ and each
individually a ‘‘Seller’’), and Aspen
Insurance Holdings Limited (the
‘‘Company’’).

WHEREAS, (i) MBP
is the beneficial owner of 719,807 ordinary shares, par value
0.15144558 cents per share, of the Company (the
‘‘Shares’’), (ii) Millennium Partners
is the beneficial owner of 27,385 Shares, (iii) DLJ MB Partners is the
beneficial owner of 40,289 Shares, (iv) DLJ Offshore-2 is the
beneficial owner of 60,721 Shares; (v) DLJ Offshore-1 is the beneficial
owner of 85,252 Shares, (vi) DLJ Offshore is the beneficial owner of
332,184 Shares and (vii) DLJMB Overseas is the beneficial owner of
4,825,649 Shares; and

WHEREAS, in a privately negotiated
transaction, the Company desires to repurchase (i) 195,211 Shares from
MBP, (ii) 7,427 Shares from Millennium Partners, (iii) 10,926 Shares
from DLJ MB Partners, (iv) 16,468 Shares from DLJ Offshore-2, (v)
23,120 Shares from DLJ Offshore-1, (vi) 90,088 Shares from DLJ Offshore
and (vii) 1,308,714 Shares from DLJMB Overseas, for a total of
1,651,954 Shares, and the Sellers have agreed to such Share repurchase
by the Company on the terms and conditions hereinafter set forth.

NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

1.    Repurchase of Shares.

1.1.    Repurchase. Subject to the terms and
conditions of this Agreement, the Company agrees to purchase from each
Seller at the Closing (as defined below), and each Seller hereby
consents and agrees to the Company's respective purchase at the
Closing (i) 195,211 Shares from MBP, (ii) 7,427 Shares from Millennium
Partners, (iii) 10,926 Shares from DLJ MB Partners, (iv) 16,468 Shares
from DLJ Offshore-2, (v) 23,120 Shares from DLJ Offshore-1, (vi) 90,088
Shares from DLJ Offshore and (vii) 1,308,714 Shares from DLJMB
Overseas, each for a purchase price in cash of $26.50 per share, for an
aggregate purchase price of (i) $5,173,091.5 for the MBP Shares, (ii)
$196,815.5 for the Millennium Partners Shares, (iii) $289,539 for the
DLJ MB Partners Shares, (iv) $436,402 for the DLJ Offshore-2 Shares,
(v) $612,680 for the DLJ Offshore-1 Shares, (vi) $2,387,332 for the DLJ
Offshore Shares and (vii) $34,680,921 for the DLJMB Overseas Shares
respectively, for a total purchase price of $43,776,781 (the
‘‘Purchase Price’’).

1.2.    Closing. The purchase of the Shares shall
take place at the offices of LeBoeuf, Lamb, Greene & MacRae London,
England at 4 p.m. on December 6, 2006 or at such other date and time as
agreed between the Sellers and the Company (the
‘‘Closing’’).

1

1.3.    Closing Deliveries by
Seller. At the Closing, Sellers shall deliver, or cause to be
delivered, to the Company any share certificates representing the
Shares, for cancellation by the Company.

1.4.    Closing Deliveries by the Company. At the
Closing, the Company shall deliver, or cause to be delivered, to each
Seller their respective portion of the Purchase Price for their Shares.
Each portion of the Purchase Price shall be paid by wire transfer of
immediately available funds in U.S dollars to the account designated by
the relevant Seller to the Company in writing on the date of this
Agreement. Upon such delivery of the Purchase Price, the Company shall
amend its register of members to reflect its purchase of the
Shares.

2.    Representations and Warranties of
Seller. Each Seller hereby represents and warrants to the Company
that:

2.1.    Authorization. All acts and
conditions required by law or otherwise on the part of Seller to
authorize the execution and delivery of this Agreement by Seller and
the transactions contemplated herein and the performance of all
obligations of Seller hereunder have been duly performed and obtained,
and this Agreement constitutes a valid and legally binding obligation
of Seller, enforceable in accordance with its terms, subject, as to the
enforcement of remedies, to applicable bankruptcy, insolvency,
moratorium, reorganization or similar laws affecting creditors'
rights generally and to general equitable principles.

2.2.    Title to Stock. Seller has good and
marketable title to the Shares, free and clear of all liens, pledges,
encumbrances, equities, security interests and claims whatsoever, and
assuming the Company purchases the Shares for value in good faith and
without notice of any such lien, pledges, encumbrance, equity, security
interest or other adverse claim within the meaning of the New York
Uniform Commercial Code, the Shares will be free and clear of all
liens, pledges, encumbrances, equities, security interests and claims
whatsoever.

2.3.    Broker's or
Finder's Fees. Seller has not authorized any person to act
as a broker, finder or in any other similar capacity in connection with
the transactions contemplated by this Agreement.

2.4.    Non-Contravention. The transactions
contemplated by this Agreement do not violate any blue sky law of a
state of the United States or securities law of any jurisdiction.

3.    Representations and Warranties of the Company. The
Company hereby represents and warrants to each Seller that:

3.1.    Authorization. All acts and conditions
required by law or otherwise on the part of the Company to authorize
the execution and delivery of this Agreement by Company and the
transactions contemplated herein and the performance of all obligations
of the Company hereunder have been duly performed and obtained, and
this Agreement constitutes a valid and legally binding obligation of
the Company, enforceable in accordance with its terms, subject, as to
the enforcement of remedies, to applicable bankruptcy, insolvency,
moratorium, reorganization or similar laws affecting creditors'
rights generally and to general equitable principles.

2

3.2.    Broker's or
Finder's Fees. The Company has not authorized any person to
act as a broker, finder or in any other similar capacity in connection
with the transactions contemplated by this Agreement.

3.3.    Non-Contravention. The transactions
contemplated by this Agreement do not violate any blue sky law of any
state of the United States or securities law of any jurisdiction.

4.    Covenants.

4.1.    Further
Assurances. Sellers and the Company hereby agree to execute and
deliver such certificates, instruments and other documents, and to take
other actions, as may be reasonably requested by any other party hereto
in order to carry out, evidence or give effect to the transactions
contemplated by this Agreement.

4.2.    Tax.
Each Seller agrees to pay their respective portion of any tax imposed
in connection with the repurchase of the Shares as contemplated under
this Agreement.

4.3.    Expenses. Except as
otherwise agreed by Sellers and the Company, Sellers and the Company
shall each pay their own expenses incurred in connection with the
transactions contemplated by this Agreement.

5.    Conditions of the Company's Obligations at
Closing. The obligations of the Company to purchase the Shares are
subject to the fulfillment on or before the Closing of each of the
following conditions:

5.1.    Representations and
Warranties. The representations and warranties of each Seller
contained in Section 2 shall be true on and as of the Closing with the
same effect as though such representations and warranties had been made
on and as of the date of such Closing.

5.2.    Performance. Each Seller shall have
performed and complied with all agreements, obligations and conditions
contained in this Agreement that are required to be performed or
complied with by it on or before the Closing.

6.    Conditions of Sellers' Obligations at
Closing. The consent of Sellers to the Company's repurchase
of the Shares under this Agreement are subject to the fulfillment on or
before the Closing of each of the following conditions by the
Company:

6.1.    Representations and
Warranties. The representations and warranties of the Company
contained in Section 3 shall be true on and as of the Closing with the
same effect as though such representations and warranties had been made
on and as of the Closing.

3

6.2.    Performance. The
Company shall have performed and complied with all agreements,
obligations and conditions contained in this Agreement that are
required to be performed or complied with by it on or before the
Closing.

7.    Miscellaneous.

7.1.    Survival. The representations and
warranties of Sellers or the Company contained in or made pursuant to
this Agreement shall survive the Closing.

7.2.    Successors and Assigns. Except as
otherwise provided herein, the terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective
successors of the parties. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties
hereto or their respective successors any rights, remedies,
obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement. No party may assign its
rights under this Agreement without the prior written consent of the
other parties.

7.3.    Governing Law. This
Agreement shall be governed by and construed under the laws of the
State of New York without regard to conflicts of law principles.

7.4.    Counterparts. This Agreement may be
executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument. This Agreement may be executed and delivered by facsimile
or e-mail transmission.

7.5.    Amendments and
Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or
prospectively), only with the written consent of Seller and the
Company.

7.6.    Severability. If one or more
provisions of this Agreement are held to be unenforceable under
applicable law, such provision shall be excluded from this Agreement
and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with
its terms. This Agreement comprises the entire agreement beween the
parties on the subject matter hereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

4

IN WITNESS WHEREOF, the parties have
executed this Agreement as of the date first above written.

		DLJ Merchant Banking III, Inc., as Advisory General
Partner on behalf of DLJ OFFSHORE PARTNERS III, C.V. 

		By:                                                    

           Name:    Kenneth Lohsen

           Title:       Vice
President

		DLJ Merchant Banking III, Inc., as
Advisory General Partner on behalf of DLJ OFFSHORE PARTNERS III-1,
C.V. and as attorney-in-fact for DLJMB III (Bermuda), L.P., as
Overseas Associate General Partner of DLJ OFFSHORE PARTNERS III-1,
C.V.

		By:                                                    

           Name:    Kenneth Lohsen

           Title:       Vice
President

		DLJ Merchant Banking III, Inc., as
Advisory General Partner on behalf of DLJ OFFSHORE PARTNERS III-2,
C.V. and as attorney-in-fact for DLJMB III (Bermuda), L.P., as
Overseas Associate General Partner of DLJ OFFSHORE PARTNERS III-2,
C.V.

		By:                                                    

           Name:    Kenneth Lohsen

           Title:       Vice
President

		MILLENNIUM PARTNERS II, L.P.

		By:     DLJ Merchant Banking III, Inc.,

             as Managing General
Partner

		By:                                                    

           Name:    Kenneth Lohsen

           Title:       Vice
President

5

		DLJ MB PARTNERSIII GMBH & CO.
KG

		By:    DLJ Merchant Banking III, Inc., as
General Partner of

          DLJ
Merchant Banking III, L.P., its Managing Limited
          Partner

		By:                                                    

           Name:    Kenneth Lohsen

           Title:       Vice
President

		By:    DLJ MB GmbH, as General
Partner

		By:                                                    

           Name:    Kenneth Lohsen

           Title:       Director

		DLJ Merchant Banking III, Inc., as Managing General
Partner on behalf of DLJMB OVERSEAS PARTNERS III, C.V.

		By:                                                    

           Name:    Kenneth Lohsen

           Title:       Vice
President

		By:    MBPSLP, Inc., as Special
Limited Partner

		By:                                                    

           Name:    Kenneth Lohsen

           Title:       Vice
President

		MBP IIII PLAN INVESTORS, L.P.

		By:    DLJ LBO Plans Management Corporation II,
its General           Partner

		By:                                                    

           Name:    Kenneth Lohsen

           Title:       Vice
President

		ASPEN INSURANCE HOLDINGS LIMITED

		By:                                                    

           Name:    Julian Cusack

           Title:      Chief Financial
Officer

6

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