This Employment Agreement ("Agreement"), between Luby's, Inc., a Delaware corporation ("Luby's" or the
"Company"), and Christopher J. Pappas, a resident of Houston, Texas, ("Executive") is executed this 7th day of
June, 2004 to be effective as of the 1st day of April 2004 ("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. 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.
2. Term . Subject to the provisions for termination of employment as provided in Section 7(a),
Executive's employment under this Agreement shall be for a period beginning on the Effective Date
and ending on March 31, 2006 ("Term").
3. 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 the first year of the Term and Three
Hundred Thousand Dollars ($300,000) for the second 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.
B. Bonus . During the second year of the Term, in addition to the Base Salary, Executive shall
be eligible, but not entitled, to receive bonus compensation of between $100,000 to
$200,000 as the Board of Directors of Luby's or an authorized committee thereof shall from
time to time determine in its sole discretion.