Exhibit 10(bb)
FINAL SEVERANCE AGREEMENT AND RELEASE
WHEREAS, Alan M. Davis, was employed on April 29, 1998, by Luby's, Inc. to
perform certain tasks; and
WHEREAS, it is the mutual desire of Luby's Inc. and Alan M. Davis to terminate
this employment relationship and the existing salary continuation agreement
executed on January 24, 2001 by the parties and enter into the Consultant
Agreement attached hereto; and
WHEREAS, it is the mutual desire of Luby's, Inc. and Mr. Davis to terminate the
existing employment relationship effective July 20, 2001. For and in
consideration of the terms set forth below, the parties agree as follows:
1. Luby's, Inc. agrees to pay to Mr. Davis the sum of ONE THOUSAND AND NO ONE
HUNDRED DOLLARS ($1,000.00) less applicable taxes or other withholdings.
Mr. Davis acknowledges that this is an amount which Luby's, Inc. is not
required to pay him and that it is in addition to any amounts that are owed
to him for the services that he has performed for Luby's, Inc.
2. Mr. Davis releases Luby's, Inc. and its directors, officers, managers,
employees, former employees, agents, attorneys, and other persons acting on
behalf of Luby's, Inc. (all referred to as "the Parties Released") from all
federal and state discrimination claims specifically including any claims of
violation of the Age Discrimination in Employment Act ("ADEA") and/or from
all claims of any nature in any way related to his employment or to the
termination of his employment with Luby's, Inc. up to the date of signing
this Final Severance Agreement and Release.
The release stated above shall not apply to any rights or claims Alan M.
Davis may have with regard to any Incentive Stock Option Agreements
previously granted to him. Any options previously granted under the
Incentive Stock Option Plan must be exercised on or before July 20, 2002.
3. Mr. Davis agrees that
a) he has read this Final Severance Agreement and Release, and agrees that
it is written in language understandable to him. He further
acknowledges that he has been advised to consult with an attorney before
signing this Final Severance Agreement and Release.
b) he has been given at least 21 days to consider whether to accept this
Final Severance Agreement and Release.
c) he understands and agrees that in the event he decides to sign this
Final Severance Agreement and Release prior to the end of the 21 day
time period, he represents that his decision to accept this shorter time
period is knowing and voluntary and is not induced by Luby's, Inc.
through fraud, misrepresentation, or a threat to withdraw or alter the
offer prior to the expiration of the 21 day time period.
d) he understands that he may revoke the agreement reflected in this Final
Severance Agreement and Release at any time within seven days after he
signs it (excluding the date of signing). To revoke the Final Severance
Agreement and Release, he must deliver notice of revocation to Peter
Tropoli, 2211 Northeast Loop 410, San Antonio, Texas 78217, or in his
absence to his office, within seven days after the date he signs the
Final Severance Agreement and Release.
e) he understands that if he does not revoke this Final Severance Agreement
and Release as described above, this Final Severance Agreement and
Release will become effective, binding, and enforceable on the seventh
day after he signs this Final Severance Agreement and Release (excluding
the date of signing). Mr. Davis understand that he will not receive the
sum of money described in Paragraph 2 until the first regular pay day
after the Final Severance Agreement and Release becomes effective.
4. This Final Severance Agreement and Release is not an admission by Luby's,
Inc. that it has acted unlawfully or violated any local, state or federal
law or regulation.
5. Mr. Davis understands that the terms of this Final Severance Agreement and
Release are confidential. Mr. Davis understands that he is not permitted to
disclose the terms of this Final Severance Agreement and Release to any
person other than his attorney, financial advisor, spouse or as required by
law.
6. Mr. Davis understands that this Final Severance Agreement and Release shall
be binding upon him, and upon his heirs, administrators, representatives,
executors, successors and assigns.
7. This Final Severance Agreement and Release has been signed in the State of
Texas. The laws of the State of Texas, and federal law where applicable,
govern the interpretation and enforcement of this Final Severance Agreement
and Release. The parties agree that venue for any disputes shall lie in
Bexar County, Texas.
8. Mr. Davis has read this document and understands the he is giving a full and
final release to Luby's, Inc. and the Parties Released and declares that it
is his intent to provide such a release. Mr. Davis acknowledges that he has
been advised to consult with an attorney, and has consulted with an
attorney, prior to signing this agreement. Mr. Davis agrees that this
document is a full and final expression of his Final Severance Agreement and
Release with Luby's, Inc. and made with the Parties Released. Mr. Davis
acknowledges that no other promise has been made to him either by Luby's,
Inc., or the Parties Released that are not set forth in this document. Mr.
Davis hereby signs this document knowingly, voluntarily, and of his own free
will.
9. As part of the consideration identified above, Mr. Davis agrees, on behalf
of himself, his heirs, successors and assigns, to INDEMNIFY and HOLD
HARMLESS agree to DEFEND Luby's Inc. and the Released Parties from all
claims, demands, and causes of action of any nature, which may have been or
may be asserted by any person claiming by, through, or under me concerning
any of the matters covered by this release.
IN WITNESS WHEREOF, the parties execute this Final Severance Agreement and
Release in duplicate originals on this 20th day of July, 2001.
/s/ Peter Tropoli /s/ Alan M. Davis
__________________________ __________________________
LUBY'S, INC. ALAN M. DAVIS
DATE: July 20, 2001 DATE: July 20, 2001