Document:

exhibit10_02.htm

EXHIBIT
    4.02

     

    THE
      STEAK N SHAKE COMPANY

    2008
      Equity Incentive Plan Restricted Stock Agreement

    

    THIS
      AGREEMENT is made this 12th
      day of
      April 2008 between THE STEAK N SHAKE COMPANY, (hereinafter referred to as
“Company”), and                                      
 (hereinafter referred to as
“Associate”).

    

    As
      additional consideration for Associate’s continuing service for the Company, the
      Company grants to Associate shares of the common stock of the Company, stated
      value $.50 per share (“Restricted Shares”), as hereinafter set forth, and the
      Company and Associate hereby agree as follows:

    

    1.   Grants.  Company
      hereby grants to
      Associate                
 Restricted Shares subject
      to the terms and conditions of the 2008
      Equity Incentive Plan.

    

    2.   Restricted
      Shares.  Company shall
      promptly issue to Associate, stock certificate(s) representing the number of
      Restricted Shares granted above, which shall be retained by Company for
      safekeeping for a period of three (3) years from the date hereof (“Forfeiture
      Period”).  Associate shall be entitled to all ownership rights thereto
      upon issuance, including dividends, if any, and voting rights, except that
      the
      Restricted Shares granted hereunder may not be sold, transferred or pledged
      by
      Associate during the said Forfeiture Period and any dividends will not be paid
      until the lapsing of the Forfeiture Period.  At the conclusion of the
      Forfeiture Period, and if the forfeiture has not occurred under Paragraph 3
      herein, the stock certificate(s) and any dividends held by the Company shall
      be
      delivered to Associate with all ownership rights attendant thereto.

    

    3.           
      Forfeiture:

    

    (a)      
In
      the event of the termination of Associate’s service for the Company during the
      Forfeiture Period for any reason other than death, disability or retirement
      the
      Restricted Shares granted hereunder shall be immediately forfeited by Associate
      to the Company.  In such event, the stock certificate(s) held by
      Company shall be transferred to Company and Company shall have no further
      obligation to Associate hereunder.

     

     
      (b)       In the event of Associate’s disability
      or retirement during the said Forfeiture Period, the Associate shall be entitled
      to retain that number of Restricted Shares granted hereunder, multiplied by
      a
      fraction, the numerator of which is the number of months Associate served during
      the said Forfeiture Period (including the month during which disability or
      retirement occurred), and the denominator of which is thirty-six
      (36).  In such event, the stock certificate(s) held by the Company
      shall be transferred to the Company, and the Company shall reissue an
      appropriate stock certificate to Associate for the number of Restricted Shares
      to be retained under the computation herein.

     

     
      (c)       In the event of Associate’s death
      while serving on the Board, the restriction on transfer shall be lifted on
      the
      date of the Associate’s death and the shares shall be transferred to his or her
      estate.

    

    4.           
      Adjustments.   In
      the event of any change in the Company’s outstanding shares subsequent to the
      effective date of the Plan by reason of any Reorganization, recapitalization,
      stock split, stock dividend, combination or exchange of shares, merger,
      consolidation or any change in the corporate structure or Shares of the Company,
      the shares granted hereunder shall be appropriately adjusted to prevent the
      dilution or diminution.  Any shares or other securities received, as a
      result of any of the foregoing will be subject to the same restrictions and
      the
      certificate(s) as set forth above.

    
      
        
        

      

      
        
        

        
          

        

      

    

    5.   Effect
      of
      Reorganization.  In the
      event of a reorganization:

              (a) 
If
      the
      Reorganization is a dissolution or liquidation of the Company then the
      restrictions on Restricted Shares will lapse.

     

             
      (b)  If
      the
      Reorganization is a merger or consolidation, upon the effective date of the
      Reorganization the Associate shall be entitled to receive money, shares or
      other
      securities as are paid for other shares of the Company’s stock.

     

             
      (c)  The
      adjustments contained in this Section and the manner of application of such
      provisions will be determined solely by the Compensation Committee of the Board
      of Directors.

     

    6.   Withholding
      Tax.   At the end of the Forfeiture Period Associate may
      have the Company deduct or withhold an amount of shares sufficient to satisfy
      all applicable tax withholding requirements.  For these purposes, the
      value of the Shares to be withheld or delivered will be equal to the Market
      Value as of the date that the taxes are required to be withheld.

    

    7.  
Transferability.  This
      Agreement is not transferable by Associate.  This Agreement shall be
      binding upon and inure to the benefit of any successor to the Company and all
      persons lawfully claiming under Associate.

    

    8.  
Notices.  Any
      notices to be given or served
      under the terms of this Agreement shall be addressed to the Secretary of the
      Company at 36 South Pennsylvania Street, Indianapolis, Indiana, 46204, and
      to
      the Grantee at the address on file with the Company from time to time, or such
      other address or addresses as either party may hereafter designate in writing
      to
      the other.  Any such notice shall be deemed to have been duly given or
      served, if and when enclosed in a properly sealed envelope addressed as
      aforesaid, postage prepaid, and deposited in the United States mail or set
      via
      reputable overnight carrier.

    

    9.  
Controlling
      Document.  The
      restricted stock granted hereunder is subject to all the terms, provisions
      and
      conditions of the Plan, which is incorporated herein by reference and to such
      regulations as may be adopted by the Board of Directors’ Compensation
      Committee.  A copy of the Plan is available for free on the Company’s
      web site, www.steaknshake.com
      in the Company’s 2008 Proxy Statement.  In the event of any conflict
      between the provisions of the Plan and the provisions of this Agreement, the
      terms of the Plan shall control.

    

    10.  
Governing
      Law.  This Agreement
      shall be governed by the laws of the State of Indiana.  Any suit filed
      regarding this Agreement shall be venued only in the Federal District Court
      for
      the Southern District of Indiana, Indianapolis, Indiana.

    

    IN
      WITNESS WHEREOF, the Company has caused this Agreement to be duly executed
      by
      its officers thereunto duly authorized, and Associate has executed this
      Agreement, all on the day and year first above written.

     

    
      THE
        STEAK N SHAKE
        COMPANY

      

      By:
        ___________________________________

      ATTEST:                                                                                                
        Wayne L. Kelley, Interim Chairman and CEO

      

      _________________________________                               “ASSOCIATE”

      David
        C.
        Milne, Corporate Secretary

      ___________________________________exhibit10_04.htm

    EXHIBIT
      10.04

     

     

    
      FIRST
        AMENDMENT TO CHANGE IN CONTROL BENEFITS AGREEMENT

      

      This
        First Amendment (the “Amendment”) to that certain Change in Control Benefits
        Agreement entered into by the parties on November 7, 2007, by and between
        The
        Steak N Shake Company, an Indiana corporation (hereinafter referred to as
        the
“Company”), and Duane E. Geiger (hereinafter referred to as
“Executive”) (the “Agreement”) is hereby made this 22nd day of April, 2008 on
        the following terms and conditions:

      

      WITNESSETH

       

          WHEREAS,
        the
        Company believes that Executive has made and will continue to make valuable
        contributions to the productivity and profitability of the Company;
        and

       

          WHEREAS,
        the
        Company desires to encourage Executive to continue to make valuable
        contributions, not to seek or accept employment elsewhere, and be an integral
        part of the Company’s future; and

       

          WHEREAS,
        the
        Company, desires to assure Executive of certain benefits should his/her
        employment be terminated for any reason except cause, death, disability or
        his/her voluntary decision to leave the Company;

          

          NOW,
        THEREFORE, in consideration of the foregoing and of the mutual covenants
        herein
        contained and the mutual benefits herein provided, the Company and Executive
        hereby agree as follows:

      

      
        	
                1.  

              	
                All
                  terms and conditions in the Agreement shall remain in full force
                  and
                  effect unless specifically modified
                  herein;

              

      

      

      
        	
                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:

              

      

      

      
        	
                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:

              

      

      

      
        	
                i.  

              	
                The
                  Salary Benefit shall be paid on the Company’s normal and customary pay
                  days;

              
	 	 

      

      
        	
                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;

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                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.

              

      

      

      
        	
                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;

              

      

      

      
        	
                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.

              

      

      

      
        	
                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.

              

      

      

      
        	
                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.

              

      

      

      
        	
                3.  

              	
                To
                  induce the Company to enter into this Agreement, Executive hereby
                  agrees
                  as follows:

              

      

      

      
        	
                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;

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties have caused this Agreement to be executed and
        delivered as of the day and year first above set forth.

      

                    

      

      
        	 	THE
                STEAK N SHAKE COMPANY
	 	 
	 	 
	
                 

              	
                By:
                  /s/ Wayne L.
                  Kelley                     
                  

              

      

      
        	
                 

              	
                Wayne
                  L. Kelley, Interim Chief Executive Officer 

              
	 	 
	 	 
	 	EXECUTIVE:
	 	 
	 	/s/
                Duane E.
                Geiger               
                
	 	Duane
                E. Geiger, Vice President,
                Controller

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