Document:

EMPLOYMENT CONTRACT

4:

EMPLOYMENT CONTRACT

EMPLOYMENT CONTRACT, dated as of January 22, 2001, between EATERIES, INC., an Oklahoma corporation (the "Company"), and JAMES M. BURKE, an Oklahoma resident ("BURKE").

BURKE currently serves as the Vice President-Operations of the Company under a three year Employment Contract dated October 1, 1995 and extended to December 31, 2000;

The Company desires to enter into a new three (3) year Employment Contract with BURKE to be effective on January 1, 2001 in substitution of his existing three year Employment Agreement and BURKE desires to accept such Employment
Contract in accordance with the terms and conditions hereinafter set forth.

NOW THEREFORE, BURKE and the Company, in consideration of the mutual covenants and promises herein contained do hereby agree as follow:

 1.Term.  The Company shall employ BURKE, and BURKE shall serve as the Vice President-Operations of the Company, on the terms and conditions of this Employment Contract for a three (3) year term commencing January 1, 2001,
and ending December 31, 2003, unless extended or terminated earlier as hereinafter provided.  The initial three (3) year Term of this Employment Contract shall be automatically extended for one (1) additional calendar year on the 31st day of each
December during Term hereof unless BURKE is given written notice by the Compensation Committee of the Board of Directors of the Company sixty (60) days prior to the 31st day of December that the Term is not to be thus automatically extended for one (1)
additional year.  If thus extended each year, then on January 1st of each year, this Employment Contract shall have three (3) years remaining to the Term hereof.

 2.Duties and Services.  During the Term hereof BURKE shall be employed in the business of the Company as Vice President-Operations and shall perform such services diligently, faithfully and consistent with the
responsibilities of such positions.  In performance of his duties BURKE shall report to the Board of Directors of the Company.  BURKE shall be available to travel as the needs of the business require.

 3.Compensation.

(a)Salary.  As a compensation for his services hereunder, the Company shall pay BURKE, during the Term, a salary payable in equal bi-weekly installments at the annual rate of $200,000.00, subject to annual re-evaluation by
the Compensation Committee of the Board of Directors of the Company.  The annual re-evaluation shall be based in part upon the attainment of corporate objectives mutually agreed upon by BURKE and the Board of Directors of the Company.  Nothing contained
herein shall preclude BURKE from participating in future executive bonus plans, pension or profit sharing, deferred compensation, stock option, or other employee benefit plans of the Company, if he meets the eligibility requirements therefor.

(b)Options.  As additional compensation BURKE has been granted nonqualified options of Eateries, Inc.  BURKE shall be entitled to additional grants of nonqualified stock options of Eateries, Inc. upon approval of the
Compensation Committee of the Board of Directors of the Company.

 4.Expenses and Vacation.  BURKE shall be entitled to reimbursement for reasonable travel and other out-of-pocket expenses necessarily incurred in the performance of his duties hereunder, upon submission and approval of
written statements and bills in accordance with the then regular policies and procedures of the Company.  BURKE shall be entitled to a car allowance payable in equal bi-weekly installments of $235.00 commencing January 1, 2001.  BURKE shall be
entitled to reasonable vacations in accordance with the then regular policies and procedures of the Company governing executives.

 5.Representations and Warranties of BURKE.  BURKE represents and warrants to the Company that (a) he is under no contractual or other restriction or obligation which is inconsistent with the execution of this Contract, the
performance of his duties hereunder, or the other rights of the Company hereunder and (b) he is under no physical or mental disability that would hinder his performance of duties under this Employment Contract.

 6.Confidential Information.  All trade secrets, or other proprietary or confidential information which BURKE may now possess, may obtain during or after the Term hereof, or may create prior to the end of the period BURKE is
employed by the Company under this Contract or otherwise relating to the business of the Company or its affiliates shall not be published, disclosed, or made accessible by him to any other person, firm, or corporation either during or after the
termination of his employment or used by him except during the Term hereof in the business and for the benefit of the Company.  BURKE shall return all tangible evidence of such trade secrets, or other proprietary or confidential information to the Company
prior to or at the termination of his employment.  "Trade secrets" shall include, but not be limited to recipes developed or utilized by the Company, as well as methods of operations developed and utilized by the Company.

Additionally, during the Term hereof, BURKE shall not acquire, directly or indirectly, any interest in any restaurants with concepts similar to Company restaurants, unless specifically authorized by the Board or Directors of the
Company in writing.  Notwithstanding the foregoing, BURKE shall not be prevented from owning any securities of any competitor of the Company which are regularly traded on any national securities exchange or in the over-the-counter market; provided, that
the same shall not result in BURKE and his immediate family owning, legally or beneficially, at any time, ten percent (10%) or more of the voting securities of any such company.  In the event that the provisions of this section should ever be deemed to
exceed the time, geographic or occupational limitations permitted by applicable law, then such provisions shall be reformed to the maximum time, geographic, or occupational limitations permitted by applicable law.

 7.Termination.  Notwithstanding anything herein contained, if on or after the date hereof and prior to the end of the Term hereof,

(a)either (i) BURKE shall be physically or mentally incapacitated or disabled or otherwise unable fully to discharge his duties hereunder for a period of six (6) months, (ii) BURKE shall be convicted of a felony crime by a court of
last resort, (iii) BURKE shall commit any act or omit to take any action in bad faith and to the substantial detriment of the Company, or (iv) BURKE shall breach any term of this Contract and such breach shall directly cause a material adverse impact upon
the Company and he shall fail to cure and correct such breach within ten (10) days after notice to BURKE by the Company of the same, or such longer period as may be necessary with due diligence to cure such breach then, and in each case, the Company shall
have the right to give notice of termination of BURKE's services hereunder as of a date (not earlier than ten (10) days from such notice in the case of items (ii), (iii) or (iv) and not earlier than six (6) months from such notice in the case of item (i)
to be specified in such notice and this Agreement shall terminate on the date so specified; or

(b)BURKE shall die, then this Employment Contract shall terminate on the date of BURKE's death,

Whereupon BURKE or his estate, as the case may be, shall be entitled to receive only his salary at the rate provided in Section 3 to the date on which termination shall take effect.  In the event of BURKE's death, his estate or
designated beneficiary shall receive, in addition to the foregoing amount, an amount equal to two (2) year's salary payable by the Company upon receipt of the life insurance proceeds of BURKE's key man insurance policy, if any and if not sufficient then
within ninety (90) days of BURKE's death.

 8.Merger, Et Cetera.  In the event of a future disposition of (or including) the properties and business of the Company, substantially as an entirety, by merger, consolidation, sale of assets, or otherwise, then the Company
may elect:

(a)To assign this Contract and all of its rights and obligations hereunder to the acquiring of surviving entity; provided that such entity shall be capable of assuming and performing and shall assume in writing and perform all of
the obligations of the Company hereunder; provided further that the Company (in the event and so long as it remains in business as an independent going enterprise) shall remain liable for the performance of its obligations hereunder in the event of an
unjustified failure of the acquiring entity to perform its obligations under this Contract; and provided finally that the duties assigned BURKE are commensurate with those held prior to the merger and that a relocation of more than 50 miles from the city
limits of the City of Oklahoma City, is not required to fulfill such duties; or

(b)In addition to its other rights of termination, to terminate this Contract upon at least sixty (60) days' written notice by paying BURKE two (2) year's salary and car allowance at the rate provided in Section 3 and 4 on the date
which such termination shall take effect.

 9.Liquidation Damages.  The parties hereto covenant and agree that, in the event the Company shall breach the terms of this Employment Contract or the Contract shall terminate under Section 8 (b), it shall pay to BURKE, as
liquidated damages for such breach or termination, an amount equal to that which would have been received by him under Section 3(a) and 4 for then remaining Term of this Employment Contract, plus reasonable attorneys' fees, if any.  Such amount shall be
promptly paid upon a determination of breach or termination, but in no event later than thirty (30) days after such determination.

10.Survival.  The covenants, agreements, representation, and warranties contained in or made pursuant to this Employment Contract shall survive BURKE's termination of employment, irrespective of any investigation made by or
on behalf of any party.

11.Modification.  This Employment Contract sets forth the entire understanding of the parties with respect to the subject matter hereof, and may be modified only by a written instrument duly executed by each party.

12.Notices.  Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be mailed by certified mail, return receipt requested, or delivered against receipt, to the party to
whom it is to be given at the then address of such party (or to such other address as the party shall have furnished in writing).  Notice to the estate of BURKE shall be sufficient if addressed to BURKE as provided in this Section 12.  Any notice or other
communication given by certified mail shall be deemed given at the time of certification thereof, except for a notice changing a party's address which shall be deemed given at the time of receipt thereof.

13.Waiver.  Any waiver by either party of a breach of any provision of this Contract shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any provision in this
Contract.  The failure of a party to insist upon strict adherence to any term of this Contract on one or more occasions shall not be considered a waiver or deprive that party of the right hereafter to insist upon strict adherence to that term or any other
term of this Contract.  Any waiver must be in writing and signed by the parties.

14.Binding Effect.  BURKE's rights and obligations under this Contract shall not be transferable by assignment or otherwise, such rights shall not be subject to commutation, encumbrance, or the claims of BURKE's creditors,
and any attempt to do any of the foregoing shall be void.  The provisions of this Contract shall be binding upon and inure to the benefit of BURKE and his heirs and personal representatives, and shall be binding upon and inure to the benefit of the
Company and its successors and those who are its assigns.

15.No Third Party Beneficiaries.  This Employment Contract does not create, and shall not be construed as creating, any rights enforceable by any person not a party to this Employment Contract (except as provided in Section
14).

16.Headings.  The headings in this Employment Contract are solely for the convenience of reference and shall be given no effect in the construction or interpretation of this Contract.

17.Counterparts:  Governing Law.  This Employment Contract may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  It
shall be governed by and construed in accordance with the laws of the State of Oklahoma, without given effect to the conflict of laws.

IN WITNESS WHEREOF, the parties have duly executed this Employment Contract as of the date first above written.

"COMPANY"

EATERIES, INC., an Oklahoma corporation

By:   /s/                                     
           

President

"BURKE"

By:/s/                                     
           

JAMES M. BURKE

As approved by a vote of the Compensation Committee of the Board of Directors of Eateries, Inc. on January 10, 2001._OPTION AGREEMENT

OPTION AGREEMENT

THIS OPTION AGREEMENT ("Agreement") is made and entered into as of the 1st  day of January 2001, by EATERIES, INC., an Oklahoma corporation (the
"Company"), and BRAD GROW ("Awardee"), an Oklahoma resident.

The Company and Awardee agree as follows:

1. Grant of Option.  The Company grants to Awardee options to purchase a total of 210,000 shares of the common stock of the Company (the
"Option Shares") the first 60,000 options at an exercise price of $6.00 per share (the
"Stock Options") representing the market price on August 14, 1998 and the next 150,000 options at an exercise price of $2.50 the market price on December 31, 2000.  The Stock Options are NOT awarded pursuant to the Company's Omnibus Equity
Compensation Plan (the
"Plan").

2. Present & Future Options.  Subject to the terms and conditions stated in this Agreement, the Stock Options shall vest, and Awardee shall have the right to exercise the Stock Options, in varied increments.  A (28.57)
percent increment (60,000 shares) have vested and became exercisable on June 1, 2000 ("First Increment"); thereafter, an additional (28.57) percent increment (60,000 shares) shall vest and become exercisable on January 2, 2001 (second increment);
thereafter, (14.29) percent increments (30,000 shares) shall vest and become exercisable on June 1, 2001, June 1, 2002, and June 1, 2003.  If Awardee ceases to be an employee of the Company for any reason prior to the date any or all of the annual
installments have vested, the Stock Options shall be forfeited and expire with respect to the unvested portion.  Exercise rights shall be cumulative, meaning that any vested but unexercised Stock Options from prior years may be exercised without reducing
the rate at which Stock Options vest and become exercisable.

3. Term.  The Stock Options shall expire upon the earlier of: (a) expiration prior to vesting as specified by paragraph 2 above; (b) the fifth anniversary of the date on which they first became exercisable; or (c) if the Stock
Options were exercisable at the time the Awardee ceased to be an employee of the Company, ninety (90) days after Awardee ceases to be an employee of the Company for any reason unless such cessation of employment shall be caused by Awardee's voluntary
termination of employment or the Company's termination of the employment of the Awardee
"for cause," in which events the Stock Options shall cease to be exercisable immediately upon termination of employment.  As used herein, Awardee shall be terminated
"for cause" if Awardee (i) commits a material act of dishonesty, fraud, misrepresentation, or other act of moral turpitude, (ii) is guilty of gross carelessness or misconduct, (iii) has been convicted of a felony crime, (iv) refuses to obey the clear and
lawful direction of the Company's President, or (v) acts in a way that has a direct, substantial, and adverse effect on the Company's reputation.

4. Method of Exercise.  To exercise the Stock Options, Awardee shall give the Company written notice of the exercise of the options, in substantially the form attached hereto as Exhibit A. Awardee shall pay the appropriate
exercise price for the Option Shares at the time of the notice of the exercise of the Stock Options in cash or in such other consideration as the Company's Compensation Committee (the
"Committee") determines is consistent with the purpose of this Agreement and applicable law.  The Company shall issue or shall have its transfer agent issue one or more certificates for the Option Shares purchased within thirty (30) business days after
exercise.  The Committee may establish other requirements to provide reasonable procedures for the exercise of the Stock Options.

5.Transferability of Options.  Awardee shall not have the right to transfer all or any part of the Stock Options except by will or pursuant to the laws of descent and distribution or to a trust or family partnership for
estate planning purposes.

6.Reimbursement for Withholding Liabilities.  Subsequent to the granting of the Stock Options to Awardee pursuant to this Agreement, Awardee shall have the obligation to reimburse the Company for any withholding liabilities
for Federal, state, and local income taxes, social security taxes, and any other taxes which it may incur as a result of the granting, vesting, and/or exercise of the Stock Options. Awardee shall reimburse the Company for those amounts within thirty (30)
days after his receipt of a written accounting of the amounts due.  Awardee shall satisfy the tax withholding reimbursement obligation with cash.

7.Transfer Restrictions.  Awardee acknowledges that the Stock Options and the underlying common stock have not been registered with state or federal securities agencies.  Awardee is acquiring the Stock Options, and will
acquire the common stock, for investment and not with a view to the distribution thereof.  The Company has not promised to register either the Stock Options or the underlying common stock.

8.Modification.  This Agreement sets forth the entire understanding of the parties with respect to the subject matter hereof, supersedes all existing agreements between them concerning such subject matter, and may be
modified only by a written instrument duly executed by each party.

9. Notices.  Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be mailed by certified mail, return receipt requested, or delivered against receipt, to the party to whom
it is to be given at the address of such party set forth in the records of the Company (or to such other address as the party shall have furnished in writing). Notice to the estate of Awardee shall be sufficient if addressed to Awardee as provided in this
paragraph 9.  Any notice or other communication given by certified mail shall be deemed given at the time of certification thereof, except for a notice changing a party's address which shall be deemed given at the time of receipt thereof.

10. Acceleration of Vesting.  In the event of a Change in Control prior to June 1, 2003, all of the Awardee's options shall accelerate and vest.  

11. Change in Control.  For purposes of this Agreement,
"Change in Control" shall mean a change in control of the Company of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the
"Act"), whether or not the Company is then subject to such reporting requirement; provided that, without limitation, a Change in Control shall be deemed to have occurred if any individual, partnership, firm, corporation, association, trust,
unincorporated organization, or other entity, or any syndicate or group deemed to be a person under Section 14(d)(2) of the Act, who is not as of the date of this Agreement the
"beneficial owner" (as defined in Rule 13d-3 of the General Rules and Regulations under the Act), directly or indirectly, of securities of the Company representing fifty-one percent (51%) or more of the combined voting power of the Company's then
outstanding securities entitled to vote in the election of directors of the Company becomes such a fifty-one percent (51%) beneficial owner.

IN WITNESS WHEREOF, the parties hereto have executed this Option Agreement as of the day and year first set forth above.

COMPANY:

EATERIES, INC.

By:

Vincent F. Orza, Jr., President

 

AWARDEE:

Bradley L. Grow

EXHIBIT A

NOTICE OF EXERCISE OF STOCK OPTIONS

The undersigned hereby gives notice to Eateries, Inc. (the "Company") of exercise of the stock options issued to him pursuant to the terms of the Stock Option Agreement between the Company and the undersigned, dated as of  
                        , to purchase            shares of the common stock of the Company.  The undersigned has enclosed a check for $           and delivers 
           shares of the Company's common stock held of record by him and having a fair market value of $           as payment of the purchase price for the shares of common stock.

DATED this            day of                         
 , 20     .

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