The Committee of Concerned Luby's Shareholders, P.O. 6983, Tyler,
Texas 75711, 800/657-2286
E-mail: [email protected]
PLEASE VOTE THE BLUE PROXY
NOW, MORE THAN EVER, "WATCHDOGS" ARE NEEDED ON THE BOD
If properly operated, Luby's has much to offer its
customers, employees and Shareholders. Now, restauranteurs are
purchasing stock and discussing participation in the operations
of Luby's. However, as welcome as those acts of the Pappas may
be, Shareholders must realize that there is a "price" that those
seeking such participation will ask for their assistance. Since
the BOD has recently announced that it is willing to consider
participation of the Pappas, it should let it be known that it
would consider participation by others too. Capitalism is based
upon competition. The "price" of any such participation must be
fair to all Shareholders of Luby's. Competition can go a long
way to determine fairness.
The Committee feels that the services of its Director-
nominees will be needed more than ever on the BOD in determining
the fairness to all Shareholders of offers by any and all such
prospective participants. The recent history of the BOD does not
engender confidence, e.g. depletion of Shareholder assets through
marketing based upon discount pricing and payments of
discretionary compensation increases, bonuses and/or separation
packages to executives who produced questionable financial
results.
The Committee hopes that the joint announcement by Luby's
and the Pappas has more to do with the improvement of Luby's than
the BOD's efforts in the pending proxy contest. However,
according to SEC filings, the Pappas have made absolutely NO
commitment to the operations of Luby's and the Pappas have
financed their stock investment through their personal margin
accounts, which constitute callable loans.
PLEASE VOTE THE BLUE PROXY.
YOUR VOTE CAN MAKE THE DIFFERENCE.
THE COMMITTEE THANKS YOU.
