Pizza Inn Inc. has agreed to pay its former president and chief executive $2.8 million to settle a nearly two-year-old legal feud.

FILE 2001/Staff photo

Ronnie Parker was one of three executives who left the restaurant chain during a tumultuous period that began in early 2004. He and the company settled the claim for $2.8 million.

Ronnie Parker was one of three executives who left the restaurant chain during a tumultuous period that began in early 2004. Pizza Inn has already reached agreements with the other two.

Mr. Parker was terminated in 2004, in part over board unhappiness about his employment contract.

He filed suit against Pizza Inn, based in The Colony, and the matter went to arbitration with the company seeking $9.4 million.

Mr. Parker filed a counterclaim seeking $5.4 million from Pizza Inn. The settlement agreement ends both claims, said Mr. Parker's attorney, Rogge Dunn of Dallas.

Under the disputed employment agreements, Mr. Parker could have pushed for a $5.4 million payout.

"It's over," Tim Taft, Pizza Inn's chief executive, said Monday. "For the first time in two years, we're able to rip off the rearview mirror and look to the future without the distraction and expense of protracted litigation with Mr. Parker. That's good for Mr. Parker. That's good for Pizza Inn."

Mr. Parker was one of four executives covered by employment agreements that could have required Pizza Inn to pay out up to $7.4 million in the event of a change of control.

While the Pizza Inn board was reconstituted in February 2004, the company maintained no change of control had occurred and that it wasn't liable for any payouts.

Keith Clark, who was general counsel, resigned in 2004. Shawn M. Preator, chief financial officer, left the following year. Pizza Inn settled with Mr. Clark and gave Mr. Preator six months' salary when he left, Mr. Taft said.

The fourth executive, Ward T. Olgreen, remains with the company as a senior vice president.

In October 2004, Pizza Inn filed suit against the law firm Akin Gump Strauss Hauer & Feld LLP over the contracts. Akin Gump has said it did not prepare the employment agreements in question.

That suit has not been settled or withdrawn, Mr. Taft said.

Pizza Inn shares gained 1 cent Monday to close at $1.96.

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