| ·   | “Ninth                Amendment” means that certain agreement entitled “Ninth Amendment                to Credit Agreement” entered into by and between the Company and the Bank                dated as of August 6, 2008, for the purpose of amending this                Agreement. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | The                Commitment -- Use                of Proceeds.  From the date of the Ninth Amendment and                until the Revolving Loan Maturity Date, the Bank agrees to make Advances                (collectively, the “Revolving Loan”) to the Company from time to time                under a revolving line of credit of amounts not exceeding in the                aggregate                principal amount at any time outstanding the amount of Thirty Million                and                No/100 Dollars ($30,000,000.00). Proceeds of the Revolving Loan may                be                used by the Company only to fund general corporate purposes. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Method                of                Borrowing.  The obligation of the Company to repay the                Revolving Loan shall be evidenced by a Promissory Note of the Company                in                the form of Exhibit“A”                attached to the Ninth Amendment (the “Revolving Note”). |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Maximum                Ratio of                Funded Debt to EBITDA. As of the end of each period of four (4)                consecutive fiscal quarters ending as of the last day of each fiscal                quarter, the Company shall maintain a ratio of Funded Debt to EBITDA                of                not more than 4.75 to 1.00. On and after the date of the Ninth Amendment,                for purposes of calculating EBITDA, the calculation of earnings shall                exclude a one-time, non-cash impairment charge of up to $17,500,000                pre-tax taken during the Company’s third fiscal quarter in 2008. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | Debt                Service Coverage                Ratio.  As of the end of each period of four (4)                consecutive fiscal quarters ending as of the last day of each fiscal                quarter, the Company shall maintain a debt service coverage ratio                of not                less than .70  to 1.00.  For purposes of this                covenant, the phrase "debt service coverage ratio" means the ratio                of: (A)                the sum of net income, interest expense, plus rent expense, to (B)                the sum                of interest expense, rent expense, the Current Portion of all lease                obligations, plus the Current Portion of all long term debt. The                term                “Current Portion” means all payments scheduled to be paid over the twelve                (12) month period immediately following the date of                determination.  On and after the date of the Ninth Amendment,                the calculation of net income shall exclude a one-time, non-cash                impairment charge of up to $17,500,000 pre-tax taken during the Company’s                third fiscal quarter in 2008. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) |   | This                Amendment duly executed by the Company. |
|-----|--------|-------------------------------------------------------------|

| (ii) |   | The                Revolving Note in the form of Exhibit                "A"                attached hereto duly executed by the Company. |
|------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | The                Reaffirmation of Guaranty Agreement in the form attached hereto asExhibit                "B"                duly executed by Steak n Shake Operations, Inc. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv) | The                Reaffirmation of Guaranty Agreement in the form attached hereto asExhibit                "C"                duly executed by Steak n Shake Enterprises, Inc. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | The                Reaffirmation of Guaranty Agreement in the form attached hereto asExhibit                "D"                duly executed by SnS Investment                Company. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (vi) | Payment                by the Company to the Bank contemporaneously with the execution hereof                of                an amendment and waiver fee in the amount of $30,000. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii) | Resolutions                of the Board of Directors of the Company authorizing the execution,                delivery and performance, respectively, of this Amendment, the Revolving                Note, and all other Loan Documents provided for in this Amendment                to which                the Company is a party certified by the Secretary of the Board of                Directors of the Company as being in full force and effect and duly                adopted as of the date hereof. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (viii) | The                Certificate of the Secretary of the Board of Directors of the Company                certifying the names of the officer or officers authorized to execute                this                Amendment, the Revolving Note, and all other Loan Documents provided                for                in this Amendment to which the Company is a party, together with                a sample                of the true signature of each such officer, dated as of the date                of this                Amendment. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ix) | Resolutions                of the Board of Directors of Steak n Shake Operations, Inc., an Indiana                corporation, authorizing the execution, delivery and performance,                respectively, of its Reaffirmation of Guaranty Agreement and all                other                Loan Documents provided for in this Amendment to which Steak n Shake                Operations, Inc. is a party certified by the Secretary of the Board                of                Directors of Steak n Shake Operations, Inc. as being in full force                and                effect and duly adopted as of the date hereof. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (x) |   | The                Certificate of the Secretary of the Board of Directors of Steak n                Shake                Operations, Inc. certifying the names of the officer or officers                authorized to execute its Reaffirmation of Guaranty Agreement and                all                other Loan Documents provided for in this Amendment to which Steak                n Shake                Operations, Inc. is a party, together with a sample of the true signature                of each such officer, dated as of the date of this Amendment. |
|-----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (xi) | Resolutions                of the Board of Directors of Steak n Shake Enterprises, Inc., an                Indiana                corporation, authorizing the execution, delivery and performance,                respectively, of its Reaffirmation of Guaranty Agreement and all                other                Loan Documents provided for in this Amendment to which Steak n Shake                Enterprises, Inc. is a party certified by the Secretary of the Board                of                Directors of Steak n Shake Enterprises, Inc. as being in full force                and                effect and duly adopted as of the date hereof. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (xii) | The                Certificate of the Secretary of the Board of Directors of Steak n                Shake                Enterprises, Inc. certifying the names of the officer or officers                authorized to execute its Reaffirmation of Guaranty Agreement and                all                other Loan Documents provided for in this Amendment to which Steak                n Shake                Enterprises, Inc. is a party, together with a sample of the true                signature                of each such officer, dated as of the date of this Amendment. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (xiii) | Resolutions                of the Board of Directors of SnS Investment Company, an Indiana                corporation, authorizing the execution, delivery and performance,                respectively, of its Reaffirmation of Guaranty Agreement and all                other                Loan Documents provided for in this Amendment to which SnS Investment                Company is a party certified by the Secretary of the Board of Directors of                SnS Investment Company as being in full force and effect and duly                adopted                as of the date hereof. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (xiv) | The                Certificate of the Secretary of the Board of Directors of SnS Investment                Company certifying the names of the officer or officers authorized                to                execute its Reaffirmation of Guaranty Agreement and all other Loan                Documents provided for in this Amendment to which SnS Investment                Company                is a party, together with a sample of the true signature of each                such                officer, dated as of the date of this Amendment. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | THE                STEAK N SHAKE                COMPANY, an Indiana corporation |
|--------|---------------------------------------------------------------------------------|

|   | By: | /s/                David C. Milne |  |
|--------|-----|-----------------------------------|--|

|   | David                C. Milne, Vice President, General Counsel and Corporate Secretary |
|--------|----------------------------------------------------------------------------------------|

|   | By: | /s/                William J.                Krummen |
|--------|-----|------------------------------------------------------|

|   | William                J. Krummen, Vice President |
|--------|---------------------------------------------------|

----

| Exhibit                "A" |   | Promissory                Note (Revolving Loan)($30,000,000.00) (The Steak n Shake Company) |
|----------------------------|--------|---------------------------------------------------------------------------------------------|

| Exhibit                "B" |   | Reaffirmation                of Guaranty Agreement (Steak n Shake Operations, Inc.) |
|----------------------------|--------|-------------------------------------------------------------------------------------|

| Exhibit                "C" |   | Reaffirmation                of Guaranty Agreement (Steak n Shake Enterprises, Inc.) |
|----------------------------|--------|--------------------------------------------------------------------------------------|

| Exhibit                "D" |   | Reaffirmation                of Guaranty Agreement (SnS Investment Company) |
|----------------------------|--------|-----------------------------------------------------------------------------|

----

----

|   | THE                STEAK N SHAKE                COMPANY, an Indiana corporation |
|--------|---------------------------------------------------------------------------------|

----

|   | By: | /s/                David C.                Milne   |
|--------|-----|--------------------------------------------------------------|

----

| STATE                    OF INDIANA | ) |
|-------------------------------------|---|

| COUNTY                    OF  Marion      | ) |
|-------------------------------------------------------------------------|---|

----

|   | By: | /s/                  David C.                  Milne   |
|--------|-----|------------------------------------------------------------------|

----

| STATE                    OF INDIANA | ) |
|-------------------------------------|---|

| COUNTY                    OF  Marion      | ) |
|-------------------------------------------------------------------------|---|

----

|   | By: | /s/                  David C.                  Milne   |
|--------|-----|------------------------------------------------------------------|

----

| STATE                    OF INDIANA | ) |
|-------------------------------------|---|

| COUNTY                    OF  Marion      | ) |
|-------------------------------------------------------------------------|---|