Exhibit 10(s)
Luby's, Inc.
2211 Northeast Loop 410
San Antonio, Texas 78217-4673
210/654-9000
Mailing Address:
P. O. Box 33069
San Antonio, Texas 78265-3069
October 15, 1999
Mr. Barry J.C. Parker
President and Chief Executive Officer
Luby's, Inc.
P. O. Box 33069
San Antonio, Texas 78265-3069
Dear Mr. Parker:
Pursuant to authorization by the Board of Directors of Luby's, Inc.
(the "Company") on this date, this letter will confirm that your employment
agreement with the Company dated September 15, 1997, is hereby amended to
increase your minimum base salary to $405,000 per year ($33,750 per month)
effective as of November 1, 1999.
Sincerely,
DAVID B. DAVISS
_____________________
Chairman of the Board
Accepted and agreed to:
BARRY J.C. PARKER
__________________
Barry J.C. Parker
Exhibit 10(dd)
LUBY'S, INC.
INCENTIVE BONUS PLAN FOR FISCAL YEAR 2000
1. Purpose. The Incentive Bonus Plan for Fiscal 2000 (the "Plan") of Luby's,
Inc. (the "Company") is intended to provide (i) additional incentives for
Participants to improve their job performance (ii) drive the achievement
of performance objectives that are aligned with the Company's strategic
plan, and (iii) to retain and attract highly talented executives.
2. Participants. Participants include the Chief Executive Officer, Senior
Vice Presidents, Vice Presidents, Departmental Directors, Assistant Vice
Presidents, and Assistant Secretaries.
3. Eligibility. An employee must be a Participant in the Plan for a minimum
of three months during the Plan Year to be eligible for an award for that
plan year.
4. Target Award Percentages. Award Levels are set for each Participant in the
organization based on level of responsibility.
5. Cash Bonus Pool. The Company shall establish a Cash Bonus Pool based upon
the sum of target award percentages multiplied by each Participant's
salary. The target award percentages are set for each level by the
Compensation Committee.
6. Performance Goals. At the recommendation of the Chief Executive Officer,
the Compensation Committee of the Board of Directors has approved certain
Strategic Objectives and a threshold earnings goal for the Company for
fiscal 2000. The amount of the pool will be determined based on the
following:
50% of the Pool: Earnings Per Share versus established goals, according to
the following schedule for 2000:
Performance vs. Goal % of Target Pool Generated
Stretch Performance: 107% or more 150% of pool
Performance at Goal: 100% 100% of pool
Threshold Goal: 93% of Goal 50% of pool
*Straight line interpolation between or above points
The other 50% of the pool will be based on performance versus the strategic
objectives as determined by the CEO and approved by the Compensation
Committee of the Board of Directors.
7. Job Performance Evaluations. At the end of each fiscal year, the
management of the Company shall review the job performance of each
Participant during the fiscal year and shall evaluate his or her
performance based upon the achievement of written objectives established
for the year. In addition, each Participant will be evaluated on the basis
of general job performance criteria.
8. Cash Bonuses. Upon completion of the Job Performance Evaluations of all
Participants at the end of the fiscal year, the management of the Company
shall allocate the approved Cash Bonus Pool among the Participants based
upon the evaluations. The Company's evaluation of each Participant's
performance and the Company's determination of the amount to be awarded to
each Participant out of the Cash Bonus Pool shall be final and conclusive
and shall be binding upon all Participants in the Plan. The amount awarded
to each Participant out of the Cash Bonus Pool shall be in addition to his
or her base salary and other benefits.
9. Adjustments for Extraordinary Items. The Compensation Committee of the
Board shall be authorized to make adjustments in the method of calculating
attainment of Performance Goals in recognition of: (i) extraordinary or
nonrecurring items, (ii) changes in tax or other laws, (iii) changes in
generally accepted accounting principles or changes in accounting policies,
(iv) charges related to restructured or discontinued operations,
(v) restatement of prior period financial results, and (vi) any other
unusual, nonrecurring gain or loss that is separately identified and
quantified in the Company's financial statements.
10. Withholding Tax. The Company shall have the right to deduct from all
payments made under the Plan any taxes required by law to be withheld with
respect to such payments.
11. Interpretation of the Plan. Any disagreement or dispute with respect to
the interpretation or application of the Plan shall be resolved by the
Executive Committee of the Board of Directors of the Company. The decision
of the Executive Committee with respect to any such matter shall be final
and conclusive and shall be binding upon all participants in the Plan.
12. Amendment and Discontinuance of the Plan. The Plan may be discontinued or
amended by the Board of Directors of the Company at any time. No
participant shall be entitled to receive a bonus under the Plan until such
time as the bonus has been awarded by the Board of Directors in accordance
with the plan.
13. No Right To Continued Employment or Awards. No employee shall have any
claim or right to be made an award, and the making of an award shall not be
construed as giving a participant the right to be retained in the employ of
the Company. Further, the Company expressly reserves the right at any time
to terminate the employment of any Participant free from any liability
under the Plan.