| 1.   | All                  terms and conditions in the Agreement shall remain in full force                  and                  effect unless specifically modified                  herein; |
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| 2.   | Should                  Executive’s employment end for any reason except death, disability (as                  defined in Section 3(B) of the Agreement), termination for cause                  (as                  defined in Section 3(C) of the Agreement) or should Executive elect                  to                  voluntarily resign for any of the reasons enumerated in Section                  4 (A-E) of                  the Agreement, then Executive shall receive the                  following: |
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| a.   | His/her                  normal gross salary, as it existed on the date of separation of                  employment                  from the Company, and which shall not be lower than Executive’s salary on                  the date of this Amendment, payable for one year from the last                  day of                  Executive’s employment with Company, subject to withholdings required by                  law or elected by Executive (the “Salary Benefit”) subject to the                  following conditions: |
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| i.   | The                  Salary Benefit shall be paid on the Company’s normal and customary pay                  days; |
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|           |                                                                                                                     |

| ii.   | Should                  Executive begin subsequent employment with any other employer or                  provide                  services for remuneration for any person or entity as a consultant                  or                  contractor while the Salary Benefit is payable, then the gross                  amount of                  the Salary Benefit shall be reduced by the amount of the Executive’s gross                  salary at his/her subsequent                  employment; |
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| b.   | Executive                  shall be paid a lump sum payment equal to any bonus to which Executive                  would have been entitled under the Incentive Bonus Plan or any                  other cash                  or other bonus plan, had all requirements for earning a bonus been                  satisfied by Executive, multiplied by a fraction, the denominator                  of which                  will be the number of days in any such computation period and the                  numerator of which shall be the number of days during the computation                  period the Executive was employed by the Company.  By way of                  example, should the computation period be one year, during which                  the                  Executive worked 75 days before the termination, then the fraction                  would                  be 75/365.  The parties understand and agree that should the                  calculation of the bonus not be ascertainable at the date of Executive’s                  termination then the payment required hereunder shall be made within                  20                  days of the date the computation herein is first able to be made                  by                  Company. |
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| c.   | Should                  Executive be provided with the use of an automobile which is owned                  or                  leased by the Company on the date of his/her termination from the                  Company                  then Executive shall be entitled to continue to use such automobile                  on the                  same terms and conditions as he/she did prior to the termination                  for a                  period of up to sixty (60) days following such                  termination.  Should Executive be provided with use of an                  automobile  by a subsequent employer prior to the expiration of                  sixty (60) days then Executive shall make arrangements to return                  the                  Company’s automobile within five (5) days                  thereafter; |
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| d.   | For                  up to twelve (12) months following the Executive’s last date of employment                  he/she shall be entitled to continue participation in any Company-provided                  group medical insurance plan in which he/she was enrolled on the                  date of                  termination.  If the Company is prevented by law or contract                  from retaining Executive as a participant in any insurance plan,                  Company                  shall pay to Executive the amount of the Company’s contribution for such                  coverage so that Executive may continue his/her coverage under                  COBRA or                  acquire similar coverage in the market at the same financial obligation                  as                  he/she would have if he/she had remained an employee of the                  Company.  The Company’s obligations under this sub-paragraph                  shall end on the date that Executive is eligible to participate                  in any                  group health plan offered by a subsequent                  employer. |
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| e.   | Within                  the first twelve (12) months following Executive’s last date of employment                  with the Company the Company shall, upon request, either pay for                  directly                  or reimburse Executive for up to $15,000 for outplacement services                  provided on Executive’s behalf. |
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| f.   | If,                  as of the date his employment terminates, Executive is a “key employee”                  within the meaning of Section 416(i) of the Code, without regard                  to                  paragraph 416(i)(5) thereof, and the Company has stock that is                  publicly                  traded on an established securities market or otherwise, any payment                  that                  constitutes deferred compensation because of employment termination                  will                  be suspended until, and will be paid to Executive on, the first                  day of the                  seventh month following the month in which Executive’s last day of                  employment occurs.  For purposes of this Section 6,                  “deferred compensation” means compensation provided under a nonqualified                  deferred compensation plan as defined in, and subject to,                  Section 409A of the Code. |
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| 3.   | To                  induce the Company to enter into this Agreement, Executive hereby                  agrees                  as follows: |
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| a.   | He/she                  will use good faith efforts to obtain substantially similar subsequent                  employment, shall notify the Company’s General Counsel and Senior Vice                  President, Human Resources promptly upon obtaining such substantially                  similar subsequent employment, including informing them of his/her                  gross                  salary amount, eligibility for group health insurance benefits                  and any                  other information that is reasonably related to the calculation                  of                  benefits hereunder; |
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|   | THE                STEAK N SHAKE COMPANY                                                                                                                                                |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                    |
|   |                                                                                                                                                                                    |
|   | By:                  /s/ Wayne L.                  Kelley                      |

|   | Wayne                  L. Kelley, Interim Chief Executive Officer                                                                           |
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|   |                                                                                                                                        |
|   |                                                                                                                                        |
|   | EXECUTIVE:                                                                                                                                  |
|   |                                                                                                                                        |
|   | /s/                Duane E.                Geiger                |
|   | Duane                E. Geiger, Vice President,                Controller                                                         |