Document:

Exhibit 10.2

                              EMPLOYMENT AGREEMENT

        This Employment Agreement ("Agreement"), between Luby's, Inc., a
Delaware corporation ("Luby's" or the "Company"), and Harris J. Pappas, a
resident of Houston, Texas, ("Executive") is executed this 9th day of November,
2005 to be effective as of the 1st day of September, 2005 ("Effective Date").
For purposes of this Agreement, "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." The Parties hereby
agree as follows:

        1.      Definitions. As used in this Agreement, and unless the context
requires a different meaning, the following terms have the meanings indicated:

        "Affiliate" means, with respect to any Person, any other Person
directly, or indirectly through one or more intermediaries, controlling,
controlled by or under common control with such Person. For purposes of this
definition and this Agreement, the term "control" (and correlative terms
"controlling," "controlled by" and "under common control with") means possession
of the power, whether by contract, equity ownership or otherwise, to direct the
policies or management of a Person.

        "Associate" has the meaning ascribed to such term in Rule 12b-2 under
the Exchange Act.

        "Beneficially Own" or "Beneficial Ownership" is defined in Rules 13d-3
and 13d-5 of the Exchange Act, but without taking into account any contractual
restrictions or limitations on voting or other rights.

        "Board" or "Board of Directors" means the Board of Directors of the
Company.

        "Business Combination" means (i) any consolidation, merger, share
exchange or similar business combination transaction involving the Company with
any Person or (ii) the sale, assignment, conveyance, transfer, lease or other
disposition by the Company of all or substantially all of its assets.

        "Change of Control" shall means the occurrence of any of the events
described in subsections (i) through (iv) below:

                        (i)     The Rights Agreement shall have been determined
                to be invalid or is otherwise abrogated by a court of competent
                jurisdiction in a final and non-appealable judgment rendered in
                connection with a contest for control of the Company and a
                substitute defense mechanism having the effectiveness of the
                Rights Agreement is not promptly adopted or, if adopted, is
                determined to be invalid or is otherwise abrogated, and either
                (y) the Company has received a report on Schedule 13D, or an
                amendment to such a report, filed with the SEC pursuant to
                Section 13(d) of the Exchange Act disclosing that any Person or
                13d Group other than Harris J. Pappas or Harris J. Pappas,
                individually or together with their Affiliates and Associates
                and any 13d Group of which they are a part, Beneficially Owns,
                directly or indirectly, twenty percent or more of the combined
                voting power of the outstanding Common Stock, or (z) the Board
                of Directors has actual knowledge of facts on the basis of which
                any Person or 13d Group other than Harris J. Pappas or Harris J.
                Pappas, individually or together

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                with their Affiliates and Associates and any 13d Group of which
                they are a part, is required to file such a report on Schedule
                13D, or to make an amendment to such a report, with the SEC (or
                would be required to file such a report or amendment upon the
                lapse of the applicable period of time specified in Section
                13(d) of the Securities Act) disclosing that such Person or 13d
                Group other than Harris J. Pappas or Harris J. Pappas,
                individually or together with their Affiliates and Associates
                and any 13d Group of which they are a part, Beneficially Owns,
                directly or indirectly, twenty percent or more of the combined
                voting power of the outstanding Common Stock.

                        (ii)    Either (y) the purchase by any Person, other
                than the Company or a wholly-owned subsidiary of the Company or
                Harris J. Pappas or Harris J. Pappas, individually or together
                with their Affiliates and Associates and any 13d Group of which
                they are a part, of shares of Common Stock pursuant to a tender
                or exchange offer to acquire any Common Stock (or securities
                convertible into Common Stock) for cash, securities or any other
                consideration or (z) any Person, other than the Company or a
                wholly-owned subsidiary of the Company or Harris J. Pappas or
                Harris J. Pappas or any of their Affiliates, Associates or
                members of any 13d Group of which they are a part, individually
                or together, shall make any such offer to acquire any Common
                Stock pursuant to a tender or exchange offer for cash,
                securities or any other consideration and either (1) the Company
                shall have recommended that stockholders accept such offer or
                (2) within 10 business days (as such term is used in Rule 14e-2
                under the Exchange Act), the Company shall have made no
                recommendation that stockholders reject such offer or (3) the
                Company shall have recommended that stockholders reject such
                offer and the Rights Agreement shall have been determined to be
                invalid or is otherwise abrogated by a court of competent
                jurisdiction in a final and non-appealable judgment rendered in
                connection with a contest for control of the Company and a
                substitute defense mechanism having the effectiveness of the
                Rights Agreement is not promptly adopted or, if adopted, is
                determined to be invalid or is otherwise abrogated, provided
                that, after consummation of any such offer, such Person
                Beneficially Owns, or would Beneficially Own, directly or
                indirectly, twenty percent or more of the combined voting power
                of the outstanding Common Stock (calculated as provided in
                paragraph (d) of Rule 13d-3 under the Exchange Act in the case
                of rights to acquire stock).

                        (iii)   The Company shall, after approval by its Board
                of Directors or an authorized committee thereof, enter into any
                agreement contemplating a transaction described below, other
                than any such transaction with Harris J. Pappas or Harris J.
                Pappas, individually or together with their Affiliates and
                Associates and any 13d Group of which they are a part: (v) a
                transaction pursuant to which the Company agrees to issue or
                sell, regardless of the consideration therefor,

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                a number of its shares of Common Stock that would result in any
                Person acquiring Beneficial Ownership, directly or indirectly,
                of twenty percent or more of the combined voting power of the
                outstanding Common Stock, calculated as in clause (ii) above;
                (w) any consolidation, merger or similar transaction involving
                the Company in which the Company is not the continuing or
                surviving corporation or pursuant to which shares of Common
                Stock would be converted into cash, securities or other
                property, other than a consolidation, merger or similar
                transaction involving the Company in which holders of its Common
                Stock immediately prior to the consolidation or merger or
                similar transaction own at least a majority of the combined
                voting power of the outstanding capital stock of the surviving
                corporation immediately after the consolidation, merger or
                similar transaction (or at least a majority of the combined
                voting power of the outstanding capital stock of a corporation
                which owns directly or indirectly all of the voting stock of the
                surviving corporation); (x) any consolidation, merger or similar
                transaction involving the Company in which the Company is the
                continuing or surviving corporation but in which the
                stockholders of the Company immediately prior to the
                consolidation, merger or similar transaction do not hold at
                least a majority of the combined voting power of the outstanding
                Common Stock of the continuing or surviving corporation (except
                where such holders of Common Stock hold at least a majority of
                the combined voting power of the outstanding capital stock of
                the corporation which owns directly or indirectly all of the
                voting stock of the Company); (y) any sale, lease, exchange or
                other transfer (in one transaction or a series of related
                transactions) of all or substantially all the assets of the
                Company (except such a transfer to a corporation which is wholly
                owned, directly or indirectly, by the Company), or any complete
                liquidation of the Company; or (z) any consolidation, merger or
                similar transaction involving the Company where, after the
                consolidation, merger or similar transaction, one Person owns
                100% of the shares of Common Stock (except where the holders of
                the Company's voting stock immediately prior to such
                consolidation, merger or similar transaction own at least a
                majority of the combined voting power of the outstanding capital
                stock of such Person immediately after such consolidation,
                merger or similar transaction).

                        (iv)    A change in the majority of the members of the
                board of directors of the Company within a 24-month period
                unless the election or nomination for election by the
                shareholders of each new director was approved by the vote of at
                least two-thirds of the directors then still in office who were
                in office at the beginning of the 24-month period.

        For purposes of this Agreement, the "effective date of a Change of
        Control" is the date that an event described in subsection (i), (ii),
        (iii) or (iv) occurs or the date upon which all the events necessary to
        constitute the Change of Control shall have occurred.

        "Common Stock" means the Company's common stock, par value $.32 per
share, and any capital stock for or into which such Common Stock hereafter is
exchanged, converted, reclassified or recapitalized by the Company or pursuant
to an agreement or Business Combination to which the Company is a party.

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        "Covenant Period" means:

                        (i)     twenty-four (24) months if Employee is
                terminated by the Company for Cause or if Executive terminates
                his employment without Good Reason; or (ii) if Executive's
                employment is terminated for any other reason;

                                (x)     twelve (12) months for the activities
                                        prohibited by clauses (ii) and (iv) of
                                        Section 11(b); and

                                (y)     twenty-four (24) months for the
                                        activities prohibited by any other
                                        provision of Section 11.

        "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time, and the rules and regulations of the SEC promulgated
thereunder.

        "Person" means an individual or a corporation, partnership, trust,
incorporated or unincorporated association, limited liability company, joint
venture, joint stock company, government (or an agency or political subdivision
thereof) or other entity of any kind.

        "Rights Agreement" means the Rights Agreement dated April 16, 1991
between the Company and Ameritrust Company, N.A. as Agent, as amended from time
to time.

        "SEC" means the Securities and Exchange Commission.

        "13d Group" means a group within the meaning of Section 13(d)(3) of the
Exchange Act.

        2.      Employment. Luby's hereby employs Executive, and Executive
hereby accepts employment with Luby's, subject to the terms and conditions set
forth in this Agreement.

        3.      Term. Subject to the provisions for termination of employment as
provided in Section 8(a), Executive's employment under this Agreement shall be
for a period beginning on the Effective Date and ending on August 31, 2008
("Term").

        4.      Compensation. Executive's compensation during his employment
under the terms of this Agreement shall be as follows:

                (a)     Base Salary. Luby's shall pay to Executive a fixed
                        -----------
        annual base salary (the "Base Salary") of Four Hundred Thousand Dollars
        ($400,000) for each year of the Term. The Base Salary shall be payable
        in equal, semi-monthly installments on 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.

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                (b)     Bonus. During each year of the Term, in addition to the
                        -----
        Base Salary, Executive shall be eligible, but not entitled, to receive
        bonus compensation as the Board of Directors of Luby's or an authorized
        committee thereof shall from time to time determine in its sole
        discretion.

        5.      Expenses and Benefits.

                (a)     During his employment hereunder, Executive is authorized
        to incur reasonable and appropriate expenses related to the business of
        Luby's, including expenses for entertainment, travel, and similar
        matters. Luby's will reimburse Executive for such expenses upon
        presentation by Executive of such accounts and records as Luby's may
        from time to time reasonably require.

                (b)     Luby's also agrees to provide Executive with the
        following benefits during his employment hereunder:

                        (i)     Employee Benefit Plans. Executive and, to the
                                ----------------------
                extent applicable, Executive's spouse, dependents, and
                beneficiaries, shall be allowed to participate on the same terms
                in all benefits, plans, and programs, including improvements or
                modifications of the same, which are now, or may hereafter be,
                available to other executive employees of Luby's; provided that
                Executive shall not be permitted without the express consent of
                the Board of Directors of Luby's to participate in any bonus,
                incentive, profit-sharing, or similar cash payment plan. Such
                benefits, plans, and programs may include, without limitation,
                stock option or thrift plans, health insurance or health care
                plans, life insurance, disability insurance, supplemental
                retirement plans, vacation, and sick leave. Luby's shall not,
                however, by reason of this paragraph be obligated to institute,
                maintain, or refrain from changing, amending, or discontinuing
                any such benefit plan or program, so long as such changes are
                similarly applicable to executive employees generally.

                        (ii)    Vacations. Executive shall be entitled (in
                                ---------
                addition to the usual Luby's holidays) to paid vacation time for
                periods in each calendar year not exceeding four (4) weeks.

                        (iii)   Working Facilities. Executive shall be furnished
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                by Luby's with an office at the Company's principal office in
                Houston, Texas, secretarial help and other facilities and
                services, including but not limited to, full use of Luby's mail
                and communication facilities and services reasonably suitable to
                his position and reasonably necessary for the performance of his
                duties under this Agreement.

        6.      Positions and Duties. Executive is employed hereunder as Chief
Executive Officer of Luby's or in such other positions as the Parties may
mutually agree. In addition, if requested to do so, Executive shall serve as the
chief executive officer or other officer or as a member of the Board of
Directors, or both, of any subsidiary or affiliate of Luby's. Executive agrees
to serve in the position referred to above and to perform diligently and to the
best of his abilities the duties and services appertaining to such office, as
well as such additional duties and services appropriate to such offices which
the Parties mutually may agree upon from time to time.

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Executive's employment shall also be subject to the policies maintained and
established by Luby's that are of general applicability to Luby's executive
employees, as such policies may be amended from time to time. Executive's duties
shall be performed principally at Luby's principal place of business in Houston,
Texas and at the locations of its operations. Executive acknowledges and agrees
that Executive owes a fiduciary duty of loyalty to act at all times in the best
interests of Luby's. In keeping with such duty, Executive represents that he
owes no duty to any other entity or person regarding, and shall make full
disclosure to Luby's of, all business opportunities pertaining to Company's
business which have not been previously renounced by the Board of Directors, as
contemplated by Section 11 hereof, and shall not appropriate for Executive's own
benefit any such business opportunities.

        7.      Extent of Service. Executive shall, during the term of this
Agreement, devote his primary working time, attention, energies and business
efforts to his duties as an employee of Luby's and to the business and affairs
of Luby's generally, and shall not, during the term of this Agreement, engage,
directly or indirectly, in any other business activity whatsoever, whether or
not such business activity is pursued for gain, profit or other pecuniary
advantage, except with the consent of the Board of Directors of Luby's; however,
this Section 7 shall not be construed to prevent Executive from, nor require
board consent with respect to, (i) continuing executive's senior level
management of non-cafeteria style restaurant businesses operated by executive's
privately-held family company ("Executive's Family Company"), (ii) serving as a
member of the board of directors or board of trustees of Executive's Family
Company or other companies or not-for-profit entities, or (iii) from investing
his personal, private assets as a passive investor in such form or manner as
will not require any active services on the part of Executive in the management
or operation of the affairs of the companies, partnerships, or other business
entities in which any such passive investments are made; provided in case of
clause (i), (ii), or (iii) such activities do not conflict with the business and
affairs of Luby's or interfere with Executive's ability to perform the services
and discharge the duties required of him hereunder.

        8.      Termination.

                (a)     Termination of Employment. Notwithstanding the
                        -------------------------
        provisions of Section 2, the employment of the Executive pursuant to
        this Agreement shall terminate prior to the expiration of the Term, upon
        the occurrence of any of the following events:

                        (i)     the death of the Executive;

                        (ii)    the termination of the Executive's employment by
                Luby's due to the Executive's Disability (as defined in Section
                8(b));

                        (iii)   the termination of the Executive's employment by
                the Executive for "Good Reason" (as defined in Section 8(d));

                        (iv)    the termination of the Executive's employment by
                Luby's for "Cause" (as defined in Section 8(c)); or

                        (v)     for any reason whatsoever in the discretion of
                the Executive or Luby's.

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                (b)     Disability. For the purposes of this Agreement, the term
                        ----------
        "Disability" shall mean Executive becoming incapacitated by accident,
        sickness, or other circumstance that renders him physically or mentally
        unable to carry out the duties and services required of him hereunder on
        a full-time basis for more than one hundred twenty (120) days in any one
        hundred eighty (180) day period. If a dispute arises between the
        Executive and the Company concerning the Executive's physical or mental
        ability to continue or return to the performance of his duties as
        aforesaid, the Executive shall submit to examination by a competent
        physician mutually agreeable to both parties or, if the parties are
        unable to agree, by a physician appointed by the president of the Harris
        County Medical Association, and such physician's opinion shall be final
        and binding.

                (c)     Cause. For purposes of this Agreement, the term "Cause"
                        -----
        shall mean:

                        (i)     Executive's conviction of a crime constituting a
                felony, or a misdemeanor involving moral turpitude;

                        (ii)    The commission by Executive, or participation
                in, an illegal act or acts that were intended to defraud Luby's;

                        (iii)   the willful refusal by Executive to fulfill the
                duties and responsibilities as Chief Executive Officer;

                        (iv)    the breach by Executive of material provisions
                of this Agreement, a policy of Luby's, or the code of conduct of
                Luby's in each case after written notice from the Board of
                Directors and, if correctible, the failure to correct such
                breach within 30 days from the date such notice is given;

                        (v)     gross negligence or willful misconduct by
                Executive in the performance of his duties and obligations to
                Luby's;

                        (vi)    willful engagement by Executive in conduct known
                (or which should have been known) to be materially injurious to
                Luby's.

                (d)     Good Reason. For purposes of this Agreement, "Good
                        -----------
        Reason" shall mean the occurrence of any of the following circumstances,
        without the consent of the Executive, unless such circumstances are
        remedied in all material respects by Luby's 30 days after Luby's receipt
        of written notice thereof given by the Executive:

                        (i)     the material diminution in the nature, scope, or
                duties of the Executive or assignment of duties inconsistent
                with those of the Chief Executive Officer or a change in the
                location of the principal business office of the Company in
                which his services are to be carried out, to a place outside of
                Texas;

                        (ii)    any breach of a material provision of this
                Agreement by Luby's after written notice from Employee and, if
                correctible, the failure to correct such breach within 30 days
                from the date such notice is given;

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                        (iii)   within two years after sale by Luby's of all or
                substantially all of its assets or the merger, share exchange,
                or other reorganization of Luby's into or with another
                corporation or entity (with respect to which Luby's does not
                survive), a diminution in employee benefits (including but not
                limited to medical, dental, life insurance, and long-term
                disability plans) and perquisites applicable to Executive from
                the greater of (A) the employee benefits and perquisites
                provided by Luby's to executives with comparable duties or (B)
                the employee benefits and perquisites to which Executive was
                entitled immediately prior to the date on which a change in
                control occurs.

                (e)     Notice of Termination. If Luby's or Executive desires to
                        ---------------------
        terminate Executive's employment hereunder at any time prior to
        expiration of the Term, it or he shall do so by giving written notice to
        the other party that it or he has elected to terminate Executive's
        employment hereunder and stating the proposed effective date and reason
        for such termination, provided that no such action shall alter or amend
        any other provisions hereof or rights arising hereunder.

        9.      Consequences of Termination.

                (a)     By Expiration. If Executive's employment hereunder shall
                        -------------
        terminate upon expiration of the Term, then all compensation for periods
        subsequent to termination and all benefits to Executive hereunder, other
        than (i) the nonqualified stock option to purchase 1,120,000 shares of
        Common Stock of Luby's, with an exercise price per share equal to five
        dollars ($5.00) per share dated March 9, 2001 and (ii) any other equity
        based compensation awards granted to Executive by Luby's (collectively,
        the "Awards"), each of which is governed by its own terms in such
        circumstances, shall terminate contemporaneously with termination of his
        employment.

                (b)     Death or Disability. If the Executive's employment is
                        -------------------
        terminated during the Term by reason of the Executive's death or
        Disability, all Compensation and benefits to Executive under this
        Agreement, other than the Awards, each of which is governed by its own
        terms in such circumstances, shall terminate contemporaneously with the
        termination of employment and without further obligation to the
        Executive or the Executive's legal representatives under the Agreement
        (other than payment of the Executive's Base Salary in respect of the
        period through his date of death or termination for Disability).

                (c)     Termination by the Executive without Good Reason or by
                        ------------------------------------------------------
        the Company For Cause. If the Executive's employment is terminated by
        ---------------------
        the Executive without Good Reason, or by the Company for Cause, all
        compensation and benefits to Executive under this Agreement, other than
        the Awards, each of which is governed by its own terms in such
        circumstances, shall terminate contemporaneously with such termination
        of employment and without further obligation to Executive or Executive's
        legal representatives under this Agreement (other than payment of
        Executive's Base Salary in respect of the period through his date of
        termination).

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                (d)     Termination by the Executive for Good Reason or by the
                        ------------------------------------------------------
        Company without Cause.
        ---------------------

                        (i)     If the Executive's employment is terminated by
                the Company without Cause or by the Executive for Good Reason,
                the Company shall be obligated to pay to, or make available to,
                the Executive Executive's monthly Base Salary and benefits in
                effect on the date of termination for the remainder of the Term.
                The Executive shall have no obligation to seek other employment
                during any time period for which he may receive payment pursuant
                to this subsection (d), and in the event the Executive obtains
                other employment during such period, the Company's obligations
                to make payments pursuant to this subsection (d) shall not be
                reduced. In the event that continued participation in any Luby's
                benefit plan contemplated by Section 5(b)(i) hereof is for
                whatever reason impermissible during the remainder of the Term,
                Company shall arrange upon comparable terms benefits
                substantially equivalent to those that may not be so provided
                under the plan maintained by Luby's. The parties agree that the
                payments provided for herein constitute part of the
                consideration provided by the Company for the Executive's
                agreements contained in Section 6 hereof.

                        (ii)    Notwithstanding clause (i) of this subsection
                (d), if, at any time during which the Executive would otherwise
                be entitled to receive any payment pursuant to clause (i) of
                subsection (d), the Executive engages in any activity or takes
                any action which would be prohibited under Sections 10 and 11
                hereof, then the Executive shall be deemed to have irrevocably
                forfeited any right to receive any further payments pursuant to
                this Agreement, provided such forfeiture shall not limit Luby's
                rights to seek to enforce such provision or to seek damages;
                provided, however, that the Awards and the benefits thereof
                shall not be in any way affected by this clause (d)(ii) of this
                Section 9.

        10.     Disclosure of Confidential Information. Executive acknowledges
that Luby's will disclose to Executive, or place Executive in a position to have
access to or develop, trade secrets or Confidential Information of Luby's or its
affiliates, and shall entrust Executive with business opportunities of Luby's or
its affiliates, and shall place Executive in a position to develop business
goodwill on behalf of Luby's or its affiliates. Except to the extent required in
the performance of his duties and obligations to Luby's as expressly authorized
herein, or by prior written consent of a duly authorized officer or director of
Luby's, Executive will not, directly or indirectly, at any time during his
employment with Luby's, or for 18 months subsequent to the termination thereof,
for any reason whatsoever, with or without cause, breach the confidence reposed
in him by Luby's by using, disseminating, disclosing, divulging, or in any
manner whatsoever disclosing or permitting to be divulged or disclosed in any
manner Confidential Information to any person, firm, corporation, association,
or other business entity. As used herein, the term "Confidential Information"
means any and all information concerning ideas, concepts, products, processes,
and services related to the business of Luby's, including information relating
to research, development, inventions, manufacture, purchasing, accounting,
engineering, marketing, merchandising, or the selling of any product or products
to any customers of Luby's, disclosed to Executive or known by Executive as a
consequence of or through his employment by Luby's (or any parent, subsidiary or
affiliated corporations of Luby's)

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including, but not necessarily limited to, any person, firm, corporation,
association, or other business entity with which Luby's has any type of agency
agreement, or any shareholders, directors, or officers of any such person, firm,
corporation, association, or other business entity; provided, however, that
Confidential Information shall not include information generally known in any
industry in which Luby's is or may become engaged during the term of this
Agreement, information disclosed publicly by Luby's or any information, ideas,
products, processes, services, and concepts existing and known to Executive
prior to his employment by Luby's. On termination of employment with Luby's, all
documents, records, notebooks, e-mails, or similar repositories of or containing
Confidential Information, including all copies of any documents, records,
notebooks, e-mail, or similar repositories of or containing Confidential
Information, then in Executive's possession or in the possession of any third
party under the control of Executive or pursuant to any agreement with
Executive, whether prepared by Executive or any other person, firm, corporation,
association, or other business entity, will be delivered to Luby's by Executive.

        11.     Noncompetition; Standstill.

                (a)     Executive recognizes and understands that in performing
        the responsibilities of his employment, he will occupy a position of
        fiduciary trust and confidence, pursuant to which he will develop and
        acquire experience and knowledge with respect to Luby's business. It is
        the expressed intent and agreement of Executive and Luby's that such
        knowledge and experience shall be used exclusively in the furtherance of
        the interests of Luby's and not in any manner which would be detrimental
        to Luby's interests. In consideration of the benefits herein, Executive
        therefore agrees that so long as he is employed by Luby's and for the
        Covenant Period after termination of Executive's employment, Executive
        will not directly or indirectly:

                        (i)     engage in any other "cafeteria-style" restaurant
                business (as defined in the resolution of the Board of Directors
                of the Company dated March 7, 2001 adopted in connection with
                Executive's initial employment by the Company) or own any
                interests whether as an owner, shareholder, joint venturer,
                partner or otherwise, in any other association or entity that
                engages, directly or indirectly, in any "cafeteria-style"
                restaurant business in each case in any state where Luby's or
                any of its affiliates are conducting business on the date of
                this Agreement or in any contiguous state; provided, however,
                that nothing herein shall prohibit Executive from holding or
                making passive investments in limited partnerships or
                corporations whose securities are traded in a generally
                recognized market provided that Executive's interest, together
                with those of his affiliates and family do not exceed 1% of the
                outstanding shares or interests in such corporation or
                partnership; or

                        (ii)    render advice or services to, or otherwise
                assist, any other person, association, or entity engaged,
                directly or indirectly, in any "cafeteria-style" restaurant
                business in any state where Luby's or its affiliates conduct
                business on the date of this Agreement or in any contiguous
                state; or

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                        (iii)   contact or solicit any employee of Luby's or any
                of its affiliates to induce them to terminate his or her
                employment with Luby's or such affiliates.

                (b)     Executive agrees that for so long as he is employed by
        Luby's and for the Covenant Period he will not without the prior written
        consent of the Company: (i) knowingly, after due inquiry, sell any
        shares of Common Stock, or right to acquire Common Stock, to any person
        or group (as defined in Section 13(d)(3) of the Exchange Act , as
        amended, and the regulations promulgated thereunder) that would
        subsequent to such sale Beneficially Own in excess of 10% of the
        Company's issued and outstanding Common Stock (1% in the case of
        industry competitors), (ii) solicit, or participate in a solicitation of
        proxies or votes or consents to vote any voting securities of the
        Company or grant (except to the Company or its representatives or
        representatives of the Executive) any proxies to vote such securities or
        subject their shares in the Company to any voting trust or other voting
        arrangement or agreement, (iii) form, join, or in any way participate
        in, any group (as defined in Section 13(d)(3) of the Exchange Act, as
        amended, and the regulations promulgated thereunder) with respect to
        voting securities of the Company, or (iv) seek, propose, or make any
        public statement regarding any merger, tender or exchange offer or other
        business combination involving the Company or any sale, assignment,
        transfer, lease or other disposition by the Company of all or
        substantially all of its assets; provided, however, the covenants
        contained in this subsection (b) shall terminate and shall be of no
        further force or effect upon the occurrence of a Change of Control.

        12.     Enforcement and Remedies. Executive understands that the
restrictions set forth here may limit Executive's ability to engage in certain
businesses in certain geographic regions during the period provided for above,
but acknowledges that Executive will receive sufficiently high remuneration and
other benefits under this Agreement to justify such restriction. Executive
acknowledges that money damages would not be sufficient remedy for any breach of
Section 10 or 11 by Executive, and Luby's shall be entitled to enforce the
provisions thereof by terminating any payments then owing to Executive under
this Agreement and/or by specific performance and injunctive relief as remedies
for such breach or any threatened breach. Such remedies shall not be deemed the
exclusive remedies for a breach, but shall be in addition to all remedies
available at law or in equity to Luby's, including without limitation, the
recovery of damages from Executive and Executive's agents involved in such
breach and remedies available to Luby's pursuant to other agreements with
Executive.

        13.     Insurance. Luby's may, in its sole and absolute discretion, at
any time after the Effective Date, apply for and procure, as owner and for its
own benefit, insurance on the life of Executive, in such amounts and in such
forms as Luby's may choose. Unless otherwise agreed by Luby's, Executive shall
have no interest whatsoever in any such policy or policies, but Executive shall,
at Luby's request, submit to such medical examinations, supply such information,
and execute and deliver such documents as may be required by the insurance
company or companies to which Luby's has applied for such insurance.

                                       11
<PAGE>

        14.     Notice. All notices and communications hereunder shall be in
writing and shall be deemed given if delivered personally or mailed by
registered or certified mail (return receipt requested) to the parties at the
following addresses (or at such other address for a party as shall be specified
by like notice):

           If to Executive:     Harris J. Pappas
                                642 Yale
                                Houston, Texas 77007

           with a copy to:      Frank Markantonis
                                645 Heights Blvd.
                                Houston, Texas  77007

           and                  Fulbright & Jaworski, L.L.P.
                                1301 McKinney Suite 5100
                                Houston, Texas 77010-3095
                                Attn:  Charles H. Still

           If to Luby's:        Luby's, Inc.
                                13111 Northwest Freeway, Suite 600
                                Houston, Texas 77040
                                Attention:  Chairman of the Board and
                                            General Counsel

           With a copy to:      Hornberger Sheehan Fuller & Beiter Incorporated
                                7373 Broadway, Suite 300
                                San Antonio, Texas 78209
                                Attention:  Drew R. Fuller, Jr.

        Any of the above addresses may be changed at any time by notice given as
provided above; provided, however, that any such notice of change of address
shall be effective only upon receipt. All notices, requests or instructions
given in accordance herewith shall be deemed received on the date of delivery,
if hand delivered, on the date of receipt, if telecopied, three Business Days
after the date of mailing, if mailed by registered or certified mail, return
receipt requested, and one Business Day after the date of sending, if sent by
Federal Express or other recognized overnight courier

        15.     CONTROLLING LAW. THIS AGREEMENT 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 LAW PROVISIONS.

        16.     Additional Instruments. This Agreement governs the rights and
obligations of Executive and Luby's with respect to Executive's base salary and
certain perquisites of employment. Executive's rights and obligations both
during the term of his employment and thereafter with respect to stock options,
life insurance policies insuring the life of Executive, and other benefits under
the plans and programs maintained by Luby's shall be governed by the separate
agreements, plans, and other documents and instruments governing such matters.

                                       12
<PAGE>

        17.     Liquidated Damages. In light of the difficulties in estimating
the damages for any early termination of employment, Luby's and Executive hereby
agree that the payments, if any, to be received by Executive pursuant to this
Agreement shall be received by Executive as liquidated damages. Payment of the
amounts set forth in this Agreement, if any, shall be in lieu of any severance
benefit Executive may be entitled to under any severance plan or policy of
Luby's.

        18.     Severability. If any term or other provision of this Agreement
is invalid, illegal, or incapable of being enforced by any rule of applicable
law, or public policy, all other conditions and provisions of this Agreement
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 Agreement 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.

        19.     Miscellaneous. No provision of this Agreement may be modified,
waived or discharged orally, but only by a waiver, modification or discharge in
writing signed by the Executive, and such officer of the Company as may be
designated by the Board. No waiver by either party hereto at any time of any
breach by the other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the time or at any
prior or subsequent time. No agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof have been made by
either party which are not expressly set forth in this Agreement. Wherever
appropriate to the intention of the parties hereto, the respective rights and
obligations of the parties hereto, will survive any termination or expiration of
the term of this Agreement as specifically set forth herein; in addition
Sections 9, 10, 11, 12, 14, 15, 16, 17, 18, 19, 20, 21 and 23 shall survive such
termination or expiration to the extent the context thereof requires.

        20.     Entire Agreement. This Agreement (which term shall be deemed to
include the exhibits hereto and any other certificates, documents or instruments
delivered hereunder), the Purchase Agreement dated March 9, 2001 among the
Company, Executives, and the other signatories thereto, as amended from time to
time (the "Purchase Agreement"), and the other Transaction Documents (as defined
in the Purchase Agreement) constitute the entire agreement of the Parties hereto
and supercede all prior agreements and understandings, both written and oral,
among the parties as to the subject matter hereof. There are no representations
or warranties, agreements, or covenants other than those expressly set forth
herein, in the Purchase Agreement and in the other Transaction Documents.

        21.     Effect of Agreement. This Agreement 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 Agreement, and the rights and
obligations of the Parties hereunder, are personal and neither this Agreement,
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.

                                       13
<PAGE>

        22.     Execution. This Agreement 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 parties, it being understood that all parties need not sign the
same counterpart.

        23.     Deemed Resignations. Any termination of Executive's employment
shall constitute an automatic resignation as an officer and director of Luby's
and each subsidiary or affiliate of Luby's.

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

                                                     ---------------------------
                                                     Harris J. Pappas

                                                     Luby's, Inc.

                                                     ---------------------------
                                                     Gasper Mir, III
                                                     Chairman of the Board

                                       14Exhibit 10.1

SEPARATION & GENERAL RELEASE AGREEMENT

                    This Separation and General Release Agreement (“Agreement”) is made by and between Rok Sribar (“Sribar”) and Align Technology, Inc. (“Align”).  Sribar and Align will hereinafter be referred to as the “Parties.”

R E C I T A L S

                    WHEREAS, Sribar has been for a time employed by Align;

                    WHEREAS, the Parties agree that his employment shall be terminated on October 31, 2005 (the “Termination Date”);

                    WHEREAS, Sribar and Align (together “the Parties”) wish permanently to resolve all disputes that exist or may exist between them in the future arising out of Sribar’s employment with Align and the termination thereof;

                    NOW, THEREFORE, for and in consideration of the promises and undertakings described below, the Parties agree as follows:

A G R E E M E N T S

          A.       ALIGN.

1.     Severance Pay.  Beginning upon the first regular pay day following the execution of this Agreement by Sribar and after the expiration of the revocation period referred to in Section C.7. below, Align shall pay to Sribar the total of the sum of (i) the amount of Sixty Thousand Dollars ($60,000.00); plus (ii) the amount of One Hundred Thirteen Thousand ($113,000.00), to be paid in accordance with Align’s standard payroll schedule and practices, less applicable deductions and withholdings, which represents six months of Sribar’s current Base Salary.  In addition, Align hereby waives Sribar’s obligation to repay that certain Sign-on Bonus as defined and set forth in Align’s Offer Letter to you dated January 24, 2005.  A Form W-2 shall be issued to Sribar for each year during which these payments are made and/or waivers are issued.  

2.     COBRA Continuation.  Beginning after the execution of this Agreement by Sribar and after the expiration of the revocation period referred to in Section C.7. below, if Sribar is eligible and timely elects to continue medical coverage for himself and his eligible dependents under COBRA, Align will pay, on Sribar’s behalf, the premiums to continue this group health insurance, including coverage for Sribar’s eligible dependents for a period of six (6) months; provided, however, that Align will pay such premiums only for the coverage for which Sribar and his eligible dependents were enrolled immediately prior to the Termination Date.  

          Align shall pay the premiums for such coverage until the earlier of (a) six (6) months following the expiration of the revocation period; (b) the effective date of Sribar’s coverage by a health plan of a subsequent employer; or (c) the date Sribar is no longer eligible for COBRA coverage.  For the balance of the period that Sribar is entitled to coverage under COBRA, he shall be entitled to maintain coverage for himself and his eligible dependents at his own expense.

PAGE 1 of 5

          B.       SRIBAR.

1.     Final Pay.  Sribar represents and warrants that he has received and reviewed his final paycheck and that he has been paid all salary, wages and compensation of any type earned by him and owed to him by Align, including, but not limited to, all accrued but unused vacation as well as any reimbursable business expenses.  Sribar further acknowledges and agrees that he is not entitled to any additional payments from Align except as set forth in this Agreement. 

2.     Consultation/Assistance.  Sribar agrees that for the six (6) month period following the Termination Date, he will make himself available to consult with and assist Align as Align may reasonably request from time to time.  As compensation for any services that he may provide during the six (6) month period identified herein, Sribar shall be paid $250 per hour, to invoiced no more frequently than monthly and to be paid net 30 days from the date of receipt by Align.  Sribar further acknowledges and agrees that he is not entitled to any employment-related benefits, other than potential COBRA covered benefits as otherwise provided herein, during this six (6) month period. 

3.     General Release.  Sribar hereby fully and forever releases, waives, discharges and promises not to sue or otherwise institute or cause to be instituted any legal or administrative proceedings against Align or any of its current and former officers, directors, attorneys, shareholders, predecessor, successor, affiliated or related companies, agents, employees and assignees thereof (collectively, the “Company”), with respect to any and all liabilities, claims, demands, contracts, debts, obligations and causes of action of any nature, kind, and description, whether in law, equity or otherwise, whether or not now known or ascertained, which currently do or may exist, including without limitation any matter, cause or claim arising out of or related to facts or events occurring prior to the Effective Date of this Agreement, and/or arising from and relating to Sribar’ employment with Align or the termination
there from, including, but not limited to any claims for unpaid wages, severance, benefits, penalties, breach of contract, breach of the covenant of good faith and fair dealing, infliction of emotional distress, misrepresentation, claims under Title VII of the Civil Rights Act, under the Age Discrimination in Employment Act, under the California Fair Employment and Housing Act, under the California Labor Code, under the Employment Retirement Income and Security Act and under any other statutory or common law claims relating to employment or the termination thereof, except any claims Sribar may have, which, as a matter of law, are not subject to waiver, such as:

	
  
 
  	
  
a.
  	
  
unemployment insurance benefits pursuant to the   terms of applicable law;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
b.
  	
  
workers’ compensation insurance benefits pursuant to   Division 4 of the California Labor Code, under the terms of any workers’   compensation insurance policy or fund of Align;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
c.
  	
  
continued participation in certain of Align’s group   benefit plans on a temporary basis pursuant to the federal law known as   COBRA: and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
d.
  	
  
rights or claims under the Age Discrimination in   Employment Act (“ADEA”) that may arise after the date this Agreement is   signed.
  

4.     Waiver – Civil Code Section 1542.   Sribar understands and agrees that Section B.3., above, applies to claims, known and presently unknown by Sribar; and that this means that if, hereafter, Sribar discovers facts different from or in addition to those which Sribar now knows or believes to be true, that the releases, waivers, discharge and promise not to sue or otherwise institute legal action shall be and remain effective in all respects notwithstanding such different or additional facts or the discovery of such fact.  Accordingly, Sribar hereby agrees that he fully and forever waives any and all rights and benefits conferred upon his by the provisions of Section 1542 of the Civil Code of the State of California which states as follows (parentheticals added):

	
  
 
  	
  
A general release does not extend to claims which   the creditor [i.e., Sribar] does not know or suspect to exist in his favor   at the time of executing the release, which if known by him must have   materially affected his settlement with the debtor [i.e., the Company].
  

PAGE 2 of 5

5.     Confidentiality & Non-Disclosure.  Sribar hereby agrees that he will not, without compulsion of legal process, disclose to any third party any of the terms of this Agreement, including the amount referred to herein, either by specific dollar amounts or by number of “figures” or otherwise, nor shall he disclose that the fact of the payment of said dollar amount, except that he may disclose such information to his spouse and he may disclose such information to his attorneys and accountants to whom, and only to the extent, disclosure is necessary to effect the purposes for which Sribar has consulted such attorneys and accountants.  Sribar agrees that in connection with any disclosure permitted hereunder, Sribar shall cause such third party to whom disclosure has been made, including his spouse, to agree to comply with this covenant of confidentiality and non-disclosure, and in the event such third party
breaches this covenant of confidentiality and non-disclosure, such breach shall be deemed to have been committed by Sribar.  

6.     COBRA Continuation.  Sribar hereby agrees that he will notify Align’s human resources department when he becomes eligible for medical coverage with a subsequent employer or otherwise.

7.     No Other Pending Claims.  Sribar hereby represents and warrants that he has neither filed nor served any claim, demand, suit or legal proceeding against the Company.

8.     No Prior Assignments.  Sribar hereby represents and warrants that he has not assigned or transferred, or purported to assign or transfer, to any third person or entity any claim, right, liability, demand, obligation, expense, action or causes of action being waived or released pursuant to this Agreement.

9.     Material Inducements.  Sribar hereby agrees and acknowledges that the releases, waivers and promises contained in this Agreement, including the promises of confidentiality and non-disclosure, are material inducements for the consideration described in Section A., above. 

10.     Agreement Inures to Align.  Sribar hereby agrees and understands that this Agreement shall bind him, and his heirs, executors, administrators and agents thereof and that it inures to the benefit of Align and its current and former officers, directors, attorneys, shareholders, predecessors, successors, affiliated or related companies, agents, employees and assignees thereof.  

11.     Proprietary Information.  Sribar hereby acknowledges and agrees that (a) he is bound by, and has continuing obligations under, the Proprietary Information and Inventions Agreement (“PIIA”) signed by him on January 20, 2005 and the Employment Agreement by and between Sribar and Align dated February 7, 2005; (b) he has returned to Align all items of property paid for and/or provided by Align for his use during employment with Align including, but not limited to, any laptops, computer and office equipment, software programs, cell phones, pagers, access cards and keys, credit and calling cards; and (c) he has returned to Align all documents (electronic and paper) created and received by him during his employment with Align, and he has not retained any such documents, except he may keep his personal copies of (i) documents evidencing his hire, compensation, benefits and termination (including this Agreement); (ii)
any materials distributed generally to stockholders of the Company, and (iii) his copy of the PIIA.  The PIIA is incorporated herein by this reference.

12.     Non-Disparagement. Sribar agrees not to make any derogatory statements about the Company and/or the Company’s officers, directors, employees, investors, stockholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations and assigns.

PAGE 3 of 5

          C.       ALIGN AND SRIBAR.

1.     Attorneys Fees and Expenses.  Each party to this Agreement shall bear their own respective attorneys’ fees and expenses related to the negotiation of this Agreement, and each agrees to hold the other harmless from the payment of all such attorneys’ fees and expenses.

2.     No Admission.  Nothing contained in this Agreement shall constitute, be construed or be treated as an admission of liability or wrongdoing by Sribar, by Align, or by any current or former employee, officer or director of Align.

3.     Governing Law.  California law shall govern the construction, interpretation and enforcement of this Agreement.

4.     Severability.  If any provision or portion thereof, of this Agreement shall for any reason be held to be invalid or unenforceable or to be contrary to public policy or any law, then the remainder of the Agreement shall not be affected thereby.

5.     Arbitration of Disputes Arising from Agreement.  Any and all disputes that arise out or relate to this Agreement or any of the subjects hereof shall be resolved through final and binding arbitration.  Binding arbitration will be conducted in Santa Clara County in accordance with California Code of Civil Procedure section 1282, et seq., and the rules and regulations of the American Arbitration Association then in effect for resolution of commercial disputes.  Each of the Parties understands and agrees that arbitration shall be instead of any civil litigation, each waives its right to a jury trial, and each understands and agrees that the arbitrator’s decision shall be final and binding to the fullest extent permitted by law and enforceable by any court having jurisdiction thereof.   Each of the Parties will bear their own respective attorneys’ fees and will equally share the cost of
arbitration, although the arbitrator may award the prevailing party his/its reasonable attorneys’ fees and costs of arbitration except that such fees and costs may not be recovered by Align that result from Align’s defense against any claim by Sribar challenging the waiver, release and discharge of rights under the Age Discrimination in Employment Act.

6.     Counterpart Signatures.  Sribar and Align hereby acknowledge that this Agreement may be executed in counterpart originals with like effect as if executed in a single original document.

7.     Time to Consider; Revocation Period; Effective Date.  Sribar understands and agrees that he may have up to a full twenty-one (21) days after receipt of this Agreement within which he may review, consider, and decide whether or not to sign this Agreement, and, if Sribar has not taken that full time period, that he expressly waives the remaining time period and will not assert the invalidity of this Agreement or any portion thereof on this basis.  Sribar further acknowledges and is hereby advised that he should discuss the terms of this Agreement with an attorney of his choosing at his sole expense.  Sribar also understands that, for the period of seven (7) days after the date he signs this Agreement, he may revoke the release of his claims under the Age Discrimination in Employment Act (“ADEA”), in which case this Agreement shall remain effective and enforceable in all other respects but the payments
in Section A.1. and 2. will each be reduced by 40%.  Sribar understands that if he wishes to revoke his release of claims under the ADEA, he must deliver written notice of revocation, no later than the seventh day after he signs this Agreement, to:

	
  
 
  	
  
Align Technology, Inc.
  
	
  
 
  	
  
Attn.:  Human Resources
  
	
  
 
  	
  
881 Martin Ave.
  
	
   
  	
  
Santa Clara, CA  95050
  
	
  
 
  	
  
Facsimile: (408) 470-1024
  

     
     Sribar  further understands that the
     Effective Date of this General Release will be the eighth day after both of
     the Parties have signed it and it has been delivered to Align.  Sribar
     understands  that he must deliver his signed  General  Release to Align via
     the address, above.

PAGE 4 of 5

8.     Results of Negotiation; Knowing and Voluntary Execution.  The Parties hereby acknowledge that this Agreement is the result of negotiation between them, that each were represented by an attorney of their own choosing in deciding whether or not to sign this Agreement and that each has read and understands the foregoing Agreement and that each affixes their respective signature to this Agreement knowingly, voluntarily and without coercion.

9.     Entire Agreement; Modification.  The Parties hereby acknowledge and agree that except for any pre-existing stock, stock option and/or purchase agreement(s) between Sribar and Align, and any amendments and waivers thereto, no promises or representations were or are made which do not appear written in this Agreement.  The Parties agree that this Agreement contains the entire agreement by Sribar and Align, and that neither is relying on any representation or promise that does not appear in this Agreement.  The Parties further agree that the benefits provided in this Agreement fully satisfy any obligations Align may have to provide any severance or other benefits to Sribar under that certain employment offer letter by and between Sribar and Align dated January 24, 2005, and the Employment Agreement by and between Sribar and Align dated February 7, 2005.  This Agreement may be changed only by another written
agreement signed by Sribar and the Chief Executive Officer of Align. 

10.    Enforcement Costs.  If an action is brought by either party for breach of any provision of this Agreement, the non-breaching party shall be entitled to recover all reasonable attorneys’ fees and costs in defending or bringing such an action.

	
  
Signed 11/10/2005,
  	
  
 
  	
  
 
  
	
  
effective as of
  	
  
 
  	
  
 
  
	
  
Date:    October 31, 2005
  	
  
 
  	
  
/s/ Rok Sribar
  
	
  
 
  	
  
 
  	
  

  

	
   
  	
  
Align Technology Inc.:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  
	
  
Signed 11/10/2005
  	
  
 
  	
  
 
  
	
  
effective as of
  	
  
 
  	
  
 
  
	
  
Date: October 31, 2005
  	
  
By:
  	
  
/s/ Roger E. George
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
Roger E. George
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  Title:
  	
  Vice President and General Counsel
  

PAGE 5 of 5

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