Document:

EXECUTIVE COMPENSATION AGREEMENT

     THIS  EXECUTIVE  COMPENSATION  AGREEMENT  ("Agreement") is made and entered
into  and  effective  the  22nd day of April, 2005, by and between Shawn Preator
(hereinafter  referred  to  as  "Executive")  and  Pizza  Inn, Inc. (hereinafter
referred  to  as  the  "Company").

                              W I T N E S S E T H:

     WHEREAS,  the  Company  currently  employs Executive as its Chief Financial
Officer  and  Vice  President of Distribution pursuant to that certain Executive
Compensation  Agreement  dated  as  of  December  16,  2002, and the Company and
Executive  desire  to  continue  and  extend  such  employment  on the terms and
conditions  set  forth  herein;
     WHEREAS,  the  Company  and  the  Executive  hereby agree to terminate that
certain  Executive  Compensation Agreement dated as of December 16, 2002 between
the  Company  and  the Executive effective upon the execution of this Agreement;
WHEREAS,  the  parties  concurrently  herewith  will enter into a new employment
agreement,  effective  upon  the  expiration  of  the  Agreement;
     NOW  THEREFORE,  for  and  in  consideration of the premises and the mutual
covenants  herein  contained  and  other  good  and  valuable consideration, the
receipt  and  sufficiency  of  which  is  hereby  acknowledged,  the Company and
Executive  hereby  agree  as  follows:

                                    ARTICLE I

                                  COMPENSATION
1.01  SALARY  AND  BONUS.  During  the  period of employment of Executive by the
Company, the Board of Directors of the Company (the "Board") or the Compensation
Committee  or  Stock  Award Plan Committee thereof shall determine, based on the
recommendations  of the Company's Chief Executive Officer from time to time, the
compensation of Executive, including salary, bonus, grants of stock options, and
other  benefits;  provided,  however,  that  Executive  shall  receive an annual
salary,  bonus  and  all other benefits not less than (i) $150,000, (ii) a bonus
equal  to  $30,000  (the "Section 1.01 Bonus"), and (iii) other benefits, except
stock  options,  including such increases as the Board or Compensation Committee
approve  from  time  to  time.  Such  salary  shall  be payable in such periodic
installments  as  established  by  the  Board  of  Directors  of  the  Company.

1.02  BENEFITS.  Executive  shall  receive  a  Company provided vehicle or a car
allowance  and  reimbursement  of  certain  expenses  in  accordance  with  past
practices.  All  benefits listed above in this section 1.02 shall be referred to
as  the  "Defined  Benefits."  Executive  may  also participate in the Company's
benefit  plans.

                                   ARTICLE II

                            TERMINATION OF EMPLOYMENT

2.01  TERMINATION  BY  THE  COMPANY;  FOR  CAUSE.  The  Company  may at any time
terminate Executive's employment for Cause. "Cause" shall mean the occurrence of
the  following  event:  the  Executive  is  convicted  of  any  felony or of any
misdemeanor involving dishonesty such as theft, forgery or fraud, or having been
indicted  for,  or  had  an information filed on him for, such a crime, enters a
plea  of  guilty  or  nolo  contendere;

2.02  TERMINATION BY THE COMPANY; OTHER THAN CAUSE.  The Company may at any time
terminate  Executive's  employment  for  other  than  Cause.

2.03  TERMINATION  BY  EXECUTIVE.  Executive's  employment  may be terminated by
Executive  with  or  without any reason at any time through December 31, 2005 by
giving  the  Company at least fifteen (15) calendar days prior written notice of
such  termination.

2.04  NOTICE  AND  DATE  OF  TERMINATION.  Any  termination by the Company or by
Executive  shall  be communicated by written notice. "Date of Termination" means
if Executive's employment is terminated by the Company or by Executive, the date
of  receipt  of  the  notice  of  termination.

                                   ARTICLE III

                   OBLIGATIONS OF THE COMPANY UPON TERMINATION

3.01  TERMINATION  BY  COMPANY;  OTHER  THAN  CAUSE.  If  the Company terminates
Executive's  employment  for any reason other than cause, then the Company shall
pay to Executive within fifteen (15) calendar days of the Date of Termination in
a  lump sum an amount equal to six months of the Executive's then current annual
salary  (provided  that  such  salary  shall  be  deemed  to  be  no  lower than
Executive's  highest  salary  during  any one of the immediately preceding three
years).  Further,  within fifteen (15) calendar days of the Date of Termination,
the  Company  will pay Executive in a lump sum a total equal to any unpaid bonus
Executive would have been entitled to receive had he worked through December 31,
2005.  Said bonus will be for the fiscal year period ending June 2005 as well as
any  accrued bonus through December 31, 2005.  Said bonus for the fiscal periods
described in the preceding sentence shall be at least $45,000, unless previously
paid.  Furthermore,  Executive  shall be entitled to receive for six months from
the  Date  of  Termination  all:  medical,  health,  dental,  disability,  life
insurance;  any  other  type  of  insurance;  any accrued vacation days; and any
unpaid  extra  days,  as  defined in the Company's employee handbook, Policy No.
310,  consistent  with  Executive's  then  current  medical,  health,  dental,
disability,  life  insurance;  and any other type of insurance.  Further, within
fifteen  (15)  calendar  days  of  the Date of Termination, the Company will pay
Executive  in  a  lump sum the value of any accrued vacation days and any unpaid
extra  days  Executive would have been entitled to receive had he worked through
December  31,  2005.  However,  whenever  the  Executive obtains employment that
provides comparable medical, health, dental, disability, life insurance; and any
other  type  of  insurance  to  what  Executive was entitled to receive from the
Company  through  December  31,  2005,  the  Company's obligation to provide any
specific comparable medical, health, dental, disability, life insurance; and any
other  type  of  insurance  will  cease.

If  payment  is  not  made  within  fifteen  (15)  calendar  days of the Date of
Termination,  then  Company agrees to pay Executive interest at the highest rate
of  interest allowed by law and compounded at the highest compounding allowed by
law,  on  all  unpaid  amounts due to Executive from Company until paid in full.

Further, if payment is not made within fifteen (15) calendar days of the Date of
Termination  in addition to the rights, remedies and damages Executive possesses
             --------------
or  can  obtain  under  this  contract,  Executive  will also be entitled to all
rights,  remedies  and damages available to Executive under the contract entered
into  between  the  Company  and  Executive  dated  December  16,  2002.

3.02  TERMINATION BY COMPANY; FOR CAUSE. If Executive's employment is terminated
by  the  Company  for  Cause,  this  Agreement  shall  terminate without further
obligations  to  Executive other than the obligation to pay to Executive, within
fifteen (15) calendar days of the Date of Termination, salary plus accrued bonus
and  any  accrued  vacation  days  and  any unpaid extra days, as defined in the
Company's  employee  handbook, Policy No. 310, due Executive through the Date of
Termination and the amount of any compensation previously deferred by Executive,
in  each  case  to  the  extent  theretofore  unpaid.

 3.03  TERMINATION  BY EXECUTIVE. If the Executive terminates his employment for
any  reason  or no reason at all, then the Company shall pay to Executive within
fifteen  (15)  calendar  days of the Date of Termination in a lump sum an amount
equal to six months of the Executive's then current annual salary (provided that
such  salary  shall  be  deemed  to  be no lower than Executive's highest salary
during  any  one  of  the  immediately  preceding three years).  Further, within
fifteen  (15)  calendar  days  of  the Date of Termination, the Company will pay
Executive  in  a lump sum a total equal to any unpaid bonus Executive would have
been  entitled  to  receive had he worked through December 31, 2005.  Said bonus
will be for the fiscal year period ending June 2005 as well as any accrued bonus
through  December  31, 2005.  Said bonus for the fiscal periods described in the
preceding  sentence  shall  be  at  least  $45,000,  unless  previously  paid.
Furthermore,  Executive  shall  be entitled to receive through December 31, 2005
any accrued vacation days and any unpaid extra days, as defined in the Company's
employee  handbook,  Policy No. 310.  Further, within fifteen (15) calendar days
of  the  Date  of  Termination, the Company will pay Executive in a lump sum the
value  of  any  accrued  vacation days and any unpaid extra days Executive would
have  been  entitled  to  receive  had  he  worked  through  December  31, 2005.

If  payment  is  not  made  within  fifteen  (15)  calendar  days of the Date of
Termination,  then  Company agrees to pay Executive interest at the highest rate
of  interest allowed by law and compounded at the highest compounding allowed by
law,  on  all  unpaid  amounts due to Executive from Company until paid in full.

Further, if payment is not made within fifteen (15) calendar days of the Date of
Termination  in addition to the rights, remedies and damages Executive possesses
             --------------
or  can  obtain  under  this  contract,  Executive  will also be entitled to all
rights,  remedies  and damages available to Executive under the contract entered
into  between  the  Company  and  Executive  dated  December  16,  2002.

3.04  NOT A PENALTY OR FORFEITURE. The parties hereto acknowledge and agree that
any  payment  under this Agreement is not a penalty or a forfeiture; rather, the
amount specified is a reasonable and fair reflection of the valuable protection,
benefits, and consideration Executive is giving up by agreeing to terminate that
certain  Executive  Compensation  agreement  dated  December  16,  2002.

3.05  TAX LIMITATION. (a) If any payment received or to be received by Executive
in  connection  with  a  Change  in  Control  of  the  Company or termination of
Executive's  employment (whether payable pursuant to the terms of this Agreement
or  any other plan, arrangement, or agreement with the Company, any person whose
actions  result  in a Change in Control of the Company, or any person affiliated
with the Company or such person (the "Total Payments")), would be subject to the
excise  tax  imposed  by  Section 4999 of the Internal Revenue Code, the Company
will pay to Executive, within 30 days of any payments giving rise to excise tax,
an  additional amount (the "gross-up payment") such that the net amount retained
or  to  be retained by Executive, after deduction of any excise tax on the total
payments  and  any  federal and state and local income tax and excise tax on the
gross-up  payment  provided  for by this section, will equal the total payments.

(b)  For  purposes  of determining the amount of the gross-up payment, Executive
will  be  deemed  to  pay  federal  income taxes at the highest marginal rate of
federal income taxation in the calendar year that the payment is to be made, and
state  and  local  income  taxes at the highest marginal rate of taxation in the
state  and  locality  of the executive's residence on the date of termination or
the  date  that  excise  tax  is  withheld  by  the  Company, net of the maximum
reduction in federal income taxes that could be obtained by deducting such state
and  local  taxes.

(c)  For  purposes of determining whether any of the total payments would not be
deductible by the Company and would be subject to the excise tax, and the amount
of  such  excise tax, (i) total payments will be treated as "parachute payments"
within  the  meaning of Section 280G(b)(2) of the Internal Revenue Code, and all
parachute  payments  in  excess of the base amount within the meaning of Section
280G(b)(3)  will  be treated as subject to the excise tax unless, in the opinion
of  tax counsel selected by the Company's independent auditors and acceptable to
Executive  such total payments (in whole or in part) are not parachute payments,
or  such  parachute  payments in excess of the base amount (in whole or in part)
are  otherwise not subject to the excise tax, and (ii) the value of any non-cash
benefits  or any deferred payment or benefit will be determined by the Company's
independent  auditors  in  accordance  with  Sections  280G(d)(3) and (4) of the
Internal  Revenue  Code.

                                   ARTICLE IV

                                      TERM
4.01  The term (the "Term") of this Agreement shall commence on the date of this
Agreement  as  set forth above (the "Effective Date") and shall continue through
December  31,  2005.

                                    ARTICLE V

                          PROPRIETARY INFORMATION, ETC.

5.01  PROPRIETARY  INFORMATION.  (a) Disclosure of Information. It is recognized
that  Executive  will  have  access  to  certain confidential information of the
Company  and  its  affiliates  and  subsidiaries,  and  that  such  information
constitutes  valuable,  special  and  unique  property  of  the  Company and its
affiliates  and  subsidiaries. Executive shall not at any time disclose any such
confidential information to any party for any reason or purpose except as may be
made  in  the  normal  course  of  business of the Company or its affiliates and
subsidiaries and for the Company's or its affiliates' or subsidiaries' benefits.
(b)  Return  of  Information.  All  advertising,  sales  and  other materials or
articles  of  information, including without limitation data processing reports,
invoices,  or  any other materials or data of any kind furnished to Executive by
the  Company  or  developed  by  Executive  on  behalf  of the Company or at the
Company's  direction  or  for  the Company's use or otherwise in connection with
Executive'  employment hereunder, are and shall remain the sole and confidential
property of the Company; if the Company requests the return of such materials at
any  time  during,  upon  or  after  the  termination of Executive's employment,
Executive  shall  immediately  deliver  the  same  to  the  Company.

                                   ARTICLE VI

                               TITLE AND AUTHORITY

6.01  In  performing the duties of Chief Financial Officer and Vice President of
Distribution  hereunder,  Executive  shall  give  the Company the benefit of his
special  knowledge,  skills,  contacts  and business experience and shall devote
substantially  all  of  his  business  time,  attention,  ability  and  energy
exclusively to the business of the Company. It is agreed that Executive may have
other business investments and participate in other business ventures which may,
from  time  to  time,  require  minor  portions of his time, but which shall not
interfere  or  be  inconsistent  with  his  duties  hereunder.

                                   ARTICLE VII

                                   ARBITRATION
7.01  Any  controversy  or claim arising out of or relating to this Agreement or
the breach thereof of Executive's employment relationship with the Company shall
be  settled  by arbitration in the City of Dallas in accordance with the laws of
the  State  of  Texas  by  one  arbitrator, pursuant to the American Arbitration
Association  rules  for  resolution  of  employment  disputes.  The  American
Arbitration Association shall provide each party with a list of five arbitrators
from  the  American  Arbitration  Association's  list  of  employment  law panel
arbitrators  and  each party to the arbitration shall be allowed to strike up to
two  of  the  arbitrators  from  the  list  provided.  The  arbitration shall be
conducted  in accordance with the rules of the American Arbitration Association.
Judgment  upon the award rendered by the arbitrators may be entered in any court
having  jurisdiction.

                                  ARTICLE VIII

                                  MISCELLANEOUS
8.01  NOTICES.  Any  notices  to be given hereunder by either party to the other
shall be in writing and may be effected either by personal delivery, via fax, or
by mail, registered or certified, postage prepaid with return receipt requested.
Mailed  notices  shall  be  addressed to the parties at the following addresses:

If  to  Company:            Pizza  Inn,  Inc.
                            3551  Plano  Parkway
                            The  Colony,  Texas  75056
                            Attn: Corporate Secretary
                            Fax:  (469)  384-5061

     If  to  Executive:     808  Cresthaven  Dr.
                            McKinney,  TX  75070

Any  party  may  change  his or its address by written notice in accordance with
this Paragraph 8.01. Notice delivered personally shall be deemed communicated as
of  actual receipt; mailed notices shall be deemed communicated as of three days
after  proper  mailing.

8.02  LAW GOVERNING AGREEMENT. This Agreement shall be governed by and construed
in  accordance  with the laws of the State of Texas and all obligations shall be
performable  in  Denton  County,  Texas.

8.03  WAIVERS.  No  term  or condition of this Agreement shall be deemed to have
been  waived  nor  shall  there  be  any estoppel to enforce any of the terms or
provisions  of  this Agreement except by written instrument of the party charged
with  such  waiver  or  estoppel, and, if the Company is the waiving party, such
waiver  must  be  approved by the Board. Further, it is agreed that no waiver at
any  time of any of the terms or provisions of this Agreement shall be construed
as  a waiver of any of the other terms or provisions of this Agreement, and that
a  waiver  at any time of any of the terms or provisions of this Agreement shall
not  be  construed  as  a  waiver  at  any  subsequent time of the same terms or
provisions.

8.04  AMENDMENTS. No amendment or modification of this Agreement shall be deemed
effective  unless and until executed in writing by all of the parties hereto and
approved  by  the  Board.

8.05  SEVERABILITY AND LIMITATION. All agreements and covenants contained herein
are  severable  and  in the event any of them shall be held to be invalid by any
competent  court,  this  Agreement  shall  be  interpreted  as  if  such invalid
agreements  or  covenants  were  not contained herein. Should any court or other
legally  constituted authority determine that for any such agreement or covenant
to  be  effective  that  it must be modified to limit its duration or scope, the
parties  hereto  shall  consider  such  agreement  or  covenant to be amended or
modified  with  respect to duration and scope so as to comply with the orders of
any  such  court  or  other  legally constituted authority, and, as to all other
portions  of  such  agreements or covenants, they shall remain in full force and
effect  as  originally  written.

8.06  HEADINGS.  All  headings  set  forth  in  this  Agreement are intended for
convenience  only  and  shall not control or affect the meaning, construction or
effect  of  this  Agreement  or  of  any  of  the  provisions  thereof.

8.07  SURVIVAL.  Articles  III,  V  and  VII  shall  survive termination of this
Agreement.

8.08  AUTHORITY.  The  signatories  to this agreement represent and warrant that
they  have  full  authority  to enter into this agreement and any board approval
necessary  to  enter  into  this  agreement  has  been  obtained.

8.09  LEGAL  EXPENSES.  Within  thirty  (30)  days  of  receipt  of any bill for
Executive's  legal fees and expenses that Executive may incur as a result of the
Company contesting the validity, enforceability or Executive's interpretation of
or  determinations  under this Agreement, including but not limited to the issue
of  whether  or  not the Company had good cause for terminating Executive and/or
the  amounts  owed  by the Company to Executive, the Company will pay said bill.
Executive  shall be entitled to redact from the attorneys' fee and expenses bill
he  submits  to  the  Company  any  confidential  information or attorney-client
communications  that  may  be  referenced  in  said  bill.

The  Company  shall  not be entitled to withhold or delay payment of Executive's
attorneys' fees and expenses bill, even if the Company believes that the bill is
unreasonable  or Executive's actions and/or interpretation of this Agreement are
frivolous.

However,  after  a final decision is rendered by the arbitrator, the Company can
seek  repayment  of some or all of the attorneys' fees and expenses bill it paid
to  Executive,  if  and  only  if,  the  Company can prove that the claims which
Executive  brought  against  the  Company  or Executive's interpretation of this
Agreement  were  frivolous  and  brought  in  bad  faith.

8.10  NO  MITIGATION  REQUIRED.  The Executive shall not be required to mitigate
the  amount  of any payment provided for in this Agreement.  Executive shall not
be  required  to  seek employment or take any other action to mitigate or reduce
the  damages  Executive  suffers  in  the  event  that the Company breaches this
Agreement.  The  amount  of any payment owed under this Agreement by the Company
to  Executive  shall  not be reduced in any amount by any remuneration Executive
may  earn  from  his own business, another employer, or government benefits that
Executive  receives  following  his  termination of employment with the Company.

EXECUTED  as  of  the  date  and  year  first  above  written.

PIZZA  INN,  INC.
By:

/s/  Tim  Taft
--------------
Tim  Taft
Chief  Executive  Officer

EXECUTIVE

/s/  Shawn  Preator
-------------------
SHAWN  PREATOREXECUTIVE COMPENSATION AGREEMENT

     THIS  EXECUTIVE  COMPENSATION  AGREEMENT  ("Agreement") is made and entered
into  and  effective  the  22nd  day of April, 2005, by and between Ward Olgreen
(hereinafter  referred  to  as  "Executive")  and  Pizza  Inn, Inc. (hereinafter
referred  to  as  the  "Company").

                              W I T N E S S E T H:

     WHEREAS,  the  Company  currently  employs  Executive  as  its  Senior Vice
President  of  Franchise  Operations  and  Concept  Development pursuant to that
certain  Executive Compensation Agreement dated as of December 16, 2002, and the
Company and Executive desire to continue and extend such employment on the terms
and  conditions  set  forth  herein;
     WHEREAS,  the  Company  and  the  Executive  hereby agree to terminate that
certain  Executive  Compensation Agreement dated as of December 16, 2002 between
the  Company  and  the Executive effective upon the execution of this Agreement;
WHEREAS,  the  parties  concurrently  herewith  will enter into a new employment
agreement,  effective  upon  the  expiration  of  the  Agreement;
     NOW  THEREFORE,  for  and  in  consideration of the premises and the mutual
covenants  herein  contained  and  other  good  and  valuable consideration, the
receipt  and  sufficiency  of  which  is  hereby  acknowledged,  the Company and
Executive  hereby  agree  as  follows:

                                    ARTICLE I

                                  COMPENSATION
1.01  SALARY  AND  BONUS.  During  the  period of employment of Executive by the
Company, the Board of Directors of the Company (the "Board") or the Compensation
Committee  or  Stock  Award Plan Committee thereof shall determine, based on the
recommendations  of the Company's Chief Executive Officer from time to time, the
compensation of Executive, including salary, bonus, grants of stock options, and
other  benefits;  provided,  however,  that  Executive  shall  receive an annual
salary,  bonus  and  all other benefits not less than (i) $168,000, (ii) a bonus
equal  to  $33,600  (the "Section 1.01 Bonus"), and (iii) other benefits, except
stock  options,  including such increases as the Board or Compensation Committee
approve  from  time  to  time.  Such  salary  shall  be payable in such periodic
installments  as  established  by  the  Board  of  Directors  of  the  Company.

1.02  BENEFITS.  Executive  shall  receive  a  Company provided vehicle or a car
allowance  and  reimbursement  of  certain  expenses  in  accordance  with  past
practices.  All  benefits listed above in this section 1.02 shall be referred to
as  the  "Defined  Benefits."  Executive  may  also participate in the Company's
benefit  plans.

                                   ARTICLE II

                            TERMINATION OF EMPLOYMENT

2.01  TERMINATION  BY  THE  COMPANY;  FOR  CAUSE.  The  Company  may at any time
terminate Executive's employment for Cause. "Cause" shall mean the occurrence of
the  following  event:  the  Executive  is  convicted  of  any  felony or of any
misdemeanor involving dishonesty such as theft, forgery or fraud, or having been
indicted  for,  or  had  an information filed on him for, such a crime, enters a
plea  of  guilty  or  nolo  contendere;

2.02  TERMINATION BY THE COMPANY; OTHER THAN CAUSE.  The Company may at any time
terminate  Executive's  employment  for  other  than  Cause.

2.03  TERMINATION  BY  EXECUTIVE.  Executive's  employment  may be terminated by
Executive  with  or  without any reason at any time through December 31, 2005 by
giving  the  Company at least fifteen (15) calendar days prior written notice of
such  termination.

2.04  NOTICE  AND  DATE  OF  TERMINATION.  Any  termination by the Company or by
Executive  shall  be communicated by written notice. "Date of Termination" means
if Executive's employment is terminated by the Company or by Executive, the date
of  receipt  of  the  notice  of  termination.

                                   ARTICLE III

                   OBLIGATIONS OF THE COMPANY UPON TERMINATION

3.01  TERMINATION  BY  COMPANY;  OTHER  THAN  CAUSE.  If  the Company terminates
Executive's  employment  for any reason other than cause, then the Company shall
pay to Executive within fifteen (15) calendar days of the Date of Termination in
a  lump sum an amount equal to six months of the Executive's then current annual
salary  (provided  that  such  salary  shall  be  deemed  to  be  no  lower than
Executive's  highest  salary  during  any one of the immediately preceding three
years).  Further,  within fifteen (15) calendar days of the Date of Termination,
the  Company  will pay Executive in a lump sum a total equal to any unpaid bonus
Executive would have been entitled to receive had he worked through December 31,
2005.  Said bonus will be for the fiscal year period ending June 2005 as well as
any  accrued bonus through December 31, 2005.  Said bonus for the fiscal periods
described in the preceding sentence shall be at least $45,000, unless previously
paid.  Furthermore,  Executive  shall be entitled to receive for six months from
the  Date  of  Termination  all:  medical,  health,  dental,  disability,  life
insurance;  any  other  type  of  insurance;  any accrued vacation days; and any
unpaid  extra  days,  as  defined in the Company's employee handbook, Policy No.
310,  consistent  with  Executive's  then  current  medical,  health,  dental,
disability,  life  insurance;  and any other type of insurance.  Further, within
fifteen  (15)  calendar  days  of  the Date of Termination, the Company will pay
Executive  in  a  lump sum the value of any accrued vacation days and any unpaid
extra  days  Executive would have been entitled to receive had he worked through
December  31,  2005.  However,  whenever  the  Executive obtains employment that
provides comparable medical, health, dental, disability, life insurance; and any
other  type  of  insurance  to  what  Executive was entitled to receive from the
Company  through  December  31,  2005,  the  Company's obligation to provide any
specific comparable medical, health, dental, disability, life insurance; and any
other  type  of  insurance  will  cease.

If  payment  is  not  made  within  fifteen  (15)  calendar  days of the Date of
Termination,  then  Company agrees to pay Executive interest at the highest rate
of  interest allowed by law and compounded at the highest compounding allowed by
law,  on  all  unpaid  amounts due to Executive from Company until paid in full.

Further, if payment is not made within fifteen (15) calendar days of the Date of
Termination  in addition to the rights, remedies and damages Executive possesses
             --------------
or  can  obtain  under  this  contract,  Executive  will also be entitled to all
rights,  remedies  and damages available to Executive under the contract entered
into  between  the  Company  and  Executive  dated  December  16,  2002.

3.02  TERMINATION BY COMPANY; FOR CAUSE. If Executive's employment is terminated
by  the  Company  for  Cause,  this  Agreement  shall  terminate without further
obligations  to  Executive other than the obligation to pay to Executive, within
fifteen (15) calendar days of the Date of Termination, salary plus accrued bonus
and  any  accrued  vacation  days  and  any unpaid extra days, as defined in the
Company's  employee  handbook, Policy No. 310, due Executive through the Date of
Termination and the amount of any compensation previously deferred by Executive,
in  each  case  to  the  extent  theretofore  unpaid.

 3.03  TERMINATION  BY EXECUTIVE. If the Executive terminates his employment for
any  reason  or no reason at all, then the Company shall pay to Executive within
fifteen  (15)  calendar  days of the Date of Termination in a lump sum an amount
equal to six months of the Executive's then current annual salary (provided that
such  salary  shall  be  deemed  to  be no lower than Executive's highest salary
during  any  one  of  the  immediately  preceding three years).  Further, within
fifteen  (15)  calendar  days  of  the Date of Termination, the Company will pay
Executive  in  a lump sum a total equal to any unpaid bonus Executive would have
been  entitled  to  receive had he worked through December 31, 2005.  Said bonus
will be for the fiscal year period ending June 2005 as well as any accrued bonus
through  December  31, 2005.  Said bonus for the fiscal periods described in the
preceding  sentence  shall  be  at  least  $45,000,  unless  previously  paid.
Furthermore,  Executive  shall  be entitled to receive through December 31, 2005
any accrued vacation days and any unpaid extra days, as defined in the Company's
employee  handbook,  Policy No. 310.  Further, within fifteen (15) calendar days
of  the  Date  of  Termination, the Company will pay Executive in a lump sum the
value  of  any  accrued  vacation days and any unpaid extra days Executive would
have  been  entitled  to  receive  had  he  worked  through  December  31, 2005.

If  payment  is  not  made  within  fifteen  (15)  calendar  days of the Date of
Termination,  then  Company agrees to pay Executive interest at the highest rate
of  interest allowed by law and compounded at the highest compounding allowed by
law,  on  all  unpaid  amounts due to Executive from Company until paid in full.

Further, if payment is not made within fifteen (15) calendar days of the Date of
Termination  in addition to the rights, remedies and damages Executive possesses
             --------------
or  can  obtain  under  this  contract,  Executive  will also be entitled to all
rights,  remedies  and damages available to Executive under the contract entered
into  between  the  Company  and  Executive  dated  December  16,  2002.

3.04  NOT A PENALTY OR FORFEITURE. The parties hereto acknowledge and agree that
any  payment  under this Agreement is not a penalty or a forfeiture; rather, the
amount specified is a reasonable and fair reflection of the valuable protection,
benefits, and consideration Executive is giving up by agreeing to terminate that
certain  Executive  Compensation  agreement  dated  December  16,  2002.

3.05  TAX LIMITATION. (a) If any payment received or to be received by Executive
in  connection  with  a  Change  in  Control  of  the  Company or termination of
Executive's  employment (whether payable pursuant to the terms of this Agreement
or  any other plan, arrangement, or agreement with the Company, any person whose
actions  result  in a Change in Control of the Company, or any person affiliated
with the Company or such person (the "Total Payments")), would be subject to the
excise  tax  imposed  by  Section 4999 of the Internal Revenue Code, the Company
will pay to Executive, within 30 days of any payments giving rise to excise tax,
an  additional amount (the "gross-up payment") such that the net amount retained
or  to  be retained by Executive, after deduction of any excise tax on the total
payments  and  any  federal and state and local income tax and excise tax on the
gross-up  payment  provided  for by this section, will equal the total payments.

(b)  For  purposes  of determining the amount of the gross-up payment, Executive
will  be  deemed  to  pay  federal  income taxes at the highest marginal rate of
federal income taxation in the calendar year that the payment is to be made, and
state  and  local  income  taxes at the highest marginal rate of taxation in the
state  and  locality  of the executive's residence on the date of termination or
the  date  that  excise  tax  is  withheld  by  the  Company, net of the maximum
reduction in federal income taxes that could be obtained by deducting such state
and  local  taxes.

(c)  For  purposes of determining whether any of the total payments would not be
deductible by the Company and would be subject to the excise tax, and the amount
of  such  excise tax, (i) total payments will be treated as "parachute payments"
within  the  meaning of Section 280G(b)(2) of the Internal Revenue Code, and all
parachute  payments  in  excess of the base amount within the meaning of Section
280G(b)(3)  will  be treated as subject to the excise tax unless, in the opinion
of  tax counsel selected by the Company's independent auditors and acceptable to
Executive  such total payments (in whole or in part) are not parachute payments,
or  such  parachute  payments in excess of the base amount (in whole or in part)
are  otherwise not subject to the excise tax, and (ii) the value of any non-cash
benefits  or any deferred payment or benefit will be determined by the Company's
independent  auditors  in  accordance  with  Sections  280G(d)(3) and (4) of the
Internal  Revenue  Code.

                                   ARTICLE IV

                                      TERM
4.01  The term (the "Term") of this Agreement shall commence on the date of this
Agreement  as  set forth above (the "Effective Date") and shall continue through
December  31,  2005.

                                    ARTICLE V

                          PROPRIETARY INFORMATION, ETC.

5.01  PROPRIETARY  INFORMATION.  (a) Disclosure of Information. It is recognized
that  Executive  will  have  access  to  certain confidential information of the
Company  and  its  affiliates  and  subsidiaries,  and  that  such  information
constitutes  valuable,  special  and  unique  property  of  the  Company and its
affiliates  and  subsidiaries. Executive shall not at any time disclose any such
confidential information to any party for any reason or purpose except as may be
made  in  the  normal  course  of  business of the Company or its affiliates and
subsidiaries and for the Company's or its affiliates' or subsidiaries' benefits.
(b)  Return  of  Information.  All  advertising,  sales  and  other materials or
articles  of  information, including without limitation data processing reports,
invoices,  or  any other materials or data of any kind furnished to Executive by
the  Company  or  developed  by  Executive  on  behalf  of the Company or at the
Company's  direction  or  for  the Company's use or otherwise in connection with
Executive'  employment hereunder, are and shall remain the sole and confidential
property of the Company; if the Company requests the return of such materials at
any  time  during,  upon  or  after  the  termination of Executive's employment,
Executive  shall  immediately  deliver  the  same  to  the  Company.

                                   ARTICLE VI

                               TITLE AND AUTHORITY

6.01  In  performing the duties of Chief Financial Officer and Vice President of
Distribution  hereunder,  Executive  shall  give  the Company the benefit of his
special  knowledge,  skills,  contacts  and business experience and shall devote
substantially  all  of  his  business  time,  attention,  ability  and  energy
exclusively to the business of the Company. It is agreed that Executive may have
other business investments and participate in other business ventures which may,
from  time  to  time,  require  minor  portions of his time, but which shall not
interfere  or  be  inconsistent  with  his  duties  hereunder.

                                   ARTICLE VII

                                   ARBITRATION
7.01  Any  controversy  or claim arising out of or relating to this Agreement or
the breach thereof of Executive's employment relationship with the Company shall
be  settled  by arbitration in the City of Dallas in accordance with the laws of
the  State  of  Texas  by  one  arbitrator, pursuant to the American Arbitration
Association  rules  for  resolution  of  employment  disputes.  The  American
Arbitration Association shall provide each party with a list of five arbitrators
from  the  American  Arbitration  Association's  list  of  employment  law panel
arbitrators  and  each party to the arbitration shall be allowed to strike up to
two  of  the  arbitrators  from  the  list  provided.  The  arbitration shall be
conducted  in accordance with the rules of the American Arbitration Association.
Judgment  upon the award rendered by the arbitrators may be entered in any court
having  jurisdiction.

                                  ARTICLE VIII

                                  MISCELLANEOUS
8.01  NOTICES.  Any  notices  to be given hereunder by either party to the other
shall be in writing and may be effected either by personal delivery, via fax, or
by mail, registered or certified, postage prepaid with return receipt requested.
Mailed  notices  shall  be  addressed to the parties at the following addresses:

If  to  Company:            Pizza  Inn,  Inc.
                            3551  Plano  Parkway
                            The  Colony,  Texas  75056
                            Attn: Corporate Secretary
                            Fax:  (469)  384-5061

     If  to  Executive:     5908  Whisperfield  Drive
                            Plano,  TX  75024

Any  party  may  change  his or its address by written notice in accordance with
this Paragraph 8.01. Notice delivered personally shall be deemed communicated as
of  actual receipt; mailed notices shall be deemed communicated as of three days
after  proper  mailing.

8.02  LAW GOVERNING AGREEMENT. This Agreement shall be governed by and construed
in  accordance  with the laws of the State of Texas and all obligations shall be
performable  in  Denton  County,  Texas.

8.03  WAIVERS.  No  term  or condition of this Agreement shall be deemed to have
been  waived  nor  shall  there  be  any estoppel to enforce any of the terms or
provisions  of  this Agreement except by written instrument of the party charged
with  such  waiver  or  estoppel, and, if the Company is the waiving party, such
waiver  must  be  approved by the Board. Further, it is agreed that no waiver at
any  time of any of the terms or provisions of this Agreement shall be construed
as  a waiver of any of the other terms or provisions of this Agreement, and that
a  waiver  at any time of any of the terms or provisions of this Agreement shall
not  be  construed  as  a  waiver  at  any  subsequent time of the same terms or
provisions.

8.04  AMENDMENTS. No amendment or modification of this Agreement shall be deemed
effective  unless and until executed in writing by all of the parties hereto and
approved  by  the  Board.

8.05  SEVERABILITY AND LIMITATION. All agreements and covenants contained herein
are  severable  and  in the event any of them shall be held to be invalid by any
competent  court,  this  Agreement  shall  be  interpreted  as  if  such invalid
agreements  or  covenants  were  not contained herein. Should any court or other
legally  constituted authority determine that for any such agreement or covenant
to  be  effective  that  it must be modified to limit its duration or scope, the
parties  hereto  shall  consider  such  agreement  or  covenant to be amended or
modified  with  respect to duration and scope so as to comply with the orders of
any  such  court  or  other  legally constituted authority, and, as to all other
portions  of  such  agreements or covenants, they shall remain in full force and
effect  as  originally  written.

8.06  HEADINGS.  All  headings  set  forth  in  this  Agreement are intended for
convenience  only  and  shall not control or affect the meaning, construction or
effect  of  this  Agreement  or  of  any  of  the  provisions  thereof.

8.07  SURVIVAL.  Articles  III,  V  and  VII  shall  survive termination of this
Agreement.

8.08  AUTHORITY.  The  signatories  to this agreement represent and warrant that
they  have  full  authority  to enter into this agreement and any board approval
necessary  to  enter  into  this  agreement  has  been  obtained.

8.09  LEGAL  EXPENSES.  Within  thirty  (30)  days  of  receipt  of any bill for
Executive's  legal fees and expenses that Executive may incur as a result of the
Company contesting the validity, enforceability or Executive's interpretation of
or  determinations  under this Agreement, including but not limited to the issue
of  whether  or  not the Company had good cause for terminating Executive and/or
the  amounts  owed  by the Company to Executive, the Company will pay said bill.
Executive  shall be entitled to redact from the attorneys' fee and expenses bill
he  submits  to  the  Company  any  confidential  information or attorney-client
communications  that  may  be  referenced  in  said  bill.

The  Company  shall  not be entitled to withhold or delay payment of Executive's
attorneys' fees and expenses bill, even if the Company believes that the bill is
unreasonable  or Executive's actions and/or interpretation of this Agreement are
frivolous.

However,  after  a final decision is rendered by the arbitrator, the Company can
seek  repayment  of some or all of the attorneys' fees and expenses bill it paid
to  Executive,  if  and  only  if,  the  Company can prove that the claims which
Executive  brought  against  the  Company  or Executive's interpretation of this
Agreement  were  frivolous  and  brought  in  bad  faith.

8.10  NO  MITIGATION  REQUIRED.  The Executive shall not be required to mitigate
the  amount  of any payment provided for in this Agreement.  Executive shall not
be  required  to  seek employment or take any other action to mitigate or reduce
the  damages  Executive  suffers  in  the  event  that the Company breaches this
Agreement.  The  amount  of any payment owed under this Agreement by the Company
to  Executive  shall  not be reduced in any amount by any remuneration Executive
may  earn  from  his own business, another employer, or government benefits that
Executive  receives  following  his  termination of employment with the Company.

EXECUTED  as  of  the  date  and  year  first  above  written.

PIZZA  INN,  INC.
By:

/s/  Tim  Taft
--------------
Tim  Taft
Chief  Executive  Officer

EXECUTIVE

/s/  Ward  Olgreen
------------------
WARD  OLGREEN

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