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Prepared by MERRILL CORPORATION

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Exhibit 10.3    
  

    
[FEDEX EXPRESS LETTERHEAD] 

VIA FEDEX ENVELOPE  

September 26, 2001 

Mr. Dwight
Young

Manager

National Mail Transportation Purchasing

United States Postal Service

475 L'Enfant Plaza S.W.

Room 4900

Washington, D.C. 20260-6210 

Dear
Dwight: 

In
our meetings earlier this week, the parties agreed to make certain changes to the volume commitments for the November Schedule Block and a ten day period in December. Originally, the United States
Postal Service ("USPS") committed to tender and Federal Express Corporation ("FedEx") agreed to transport volumes of [*] for the Day-turn Operations and
[*] for the Night-turn Operations during the November Schedule Block. However, the USPS and FedEx have mutually agreed to revise the volumes so that USPS will now
provide [*] for the Day-turn Operations and [*] for the Night-turn Operations. 

In
order to accommodate the expected increase in volume which occurs each holiday season, USPS has requested that FedEx allow for an increase in its volume commitment for the Night-turn
Operations occurring during the period commencing December 10 and ending December 23, 2001 ("Peak Period"). FedEx and USPS have agreed that the Committed Volume will increase by
[*] for each day of the Peak Period. 

If
the matters reflected above accurately reflect our discussions, please acknowledge this by signing where indicated below and kindly return a fully executed original to me. 

	Sincerely,

FEDERAL EXPRESS CORPORATION	 	 	 
	

/s/ PAUL J. HERRON   	

 	
 	

 
	

Paul J. Herron

Vice President

Postal Transportation Management	

 	
 	

 
	

 	

Acknowledged and agreed to this 12th

day of December, 2001.
	

 	

By:	
 	

/s/ J. DWIGHT YOUNG   

	 	Title:	 	Manager,

National Mail Transportation Purchasing

cc: Paul Vogel 

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	BLANK
SPACES CONTAINED CONFIDENTIAL INFORMATION WHICH HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

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Exhibit 10.3Prepared by MERRILL CORPORATION

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Exhibit 10.4    
  

AMENDMENT  

    THIS AMENDMENT ("Amendment") dated the 31st day of August, 2001, amends the Transportation Agreement dated as of January 10, 2001 (the
"Agreement") between The United States Postal Service ("USPS") and Federal Express Corporation ("FedEx"). 

Preamble  

    WHEREAS, USPS and FedEx entered into the Agreement in order to provide for the transportation of certain Products (as such term is defined in the Agreement"), 

    WHEREAS,
the parties now desire to amend certain provisions of the Agreement as more specifically set forth in this Agreement. 

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained in this Amendment, the parties agree as follows: 

    1.  The
parties agree that certain revisions to Attachments 1 and 2 to Exhibit A are necessary. Accordingly, the parties shall meet for the purpose of making
mutually agreed revisions to Attachments 1 and 2. The parties shall make such revisions by December 1, 2001. 

    2.  Notwithstanding
anything contained in Attachments 1 and 2 to Exhibit A, during any Schedule Period that USPS commits to provide and, if FedEx agrees to lift,
a minimum of [*] outbound [*], FedEx shall be
deemed to have committed to provide lift of [*] outbound [*]. For purposes of the foregoing, the following parameters shall apply: 

    [*]

 

    3.  Section 3.9.1 of the Operations Specification is hereby amended by adding a new bullet to such section as follows: 

	•
	For
the Day-turn Operations only, any Tuesday immediately following one of the foregoing holidays that occurs on a Monday. 

    For
purposes of computing the average daily Minimum Guaranteed Volume, as set forth in Section 11.1 of the Agreement, for the Day-turn Operations only, no Tuesday
identified in Section 3.9.1 shall be considered in such computation. 

    4.  Section 3.9.2
of the Operations Specification is hereby amended by adding a new bullet to such section as follows: 

	•
	Additionally,
no Day-turn products will be tendered by USPS to FedEx on any Tuesday immediately following one of the holidays listed in
section 3.9.1 that occurs on a Monday. 

    5.  All
capitalized terms not otherwise defined in this Amendment shall have the meanings set forth in the Agreement. 

    6.  Except
as amended by this Amendment, the terms and conditions of the Agreement shall remain in full force and effect and are ratified and confirmed in all respects. 

    IN WITNESS WHEREOF, the parties have signed this Amendment in duplicate, one for each of the Parties, as of August 31, 2001. 

	 	THE UNITED STATES POSTAL SERVICE
	

 	

By:	
 	

/s/ LESLIE A. GRIFFITH   

	 	Title:	 	Contracting Officer
	

 	

FEDERAL EXPRESS CORPORATION
	

 	

By:	
 	

/s/ PAUL J. HERRON   

	 	Title:	 	Vice President,

Postal Transportation Management

	*
	BLANK
SPACES CONTAINED CONFIDENTIAL INFORMATION WHICH HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. 

2

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Exhibit 10.4Prepared by MERRILL CORPORATION

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Exhibit 10.5    
  

AMENDMENT  

    THIS AMENDMENT ("Amendment") dated the 28th day of August, 2001, amends the Transportation Agreement dated as of January 10, 2001 (the "Agreement")
between The United States Postal Service ("USPS") and Federal Express Corporation ("FedEx"). 

Preamble  

    WHEREAS, USPS and FedEx entered into the Agreement in order to provide for the transportation and delivery of the Products (as such term is defined in the
Agreement); 

    WHEREAS,
the parties now desire to amend certain provisions of the Agreement to provide an expansion of the Products as stated below; 

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained in this Amendment, the parties agree as follows: 

    1.  FedEx
agrees to provide supplemental service ("Supplemental Service") into and out of the locations identified in the supplemental operating plan ("Supplemental
Operating Plan") which is set forth in the new Attachment VII to Exhibit A, attached. FedEx agrees to provide Supplemental Service to the USPS on a space available basis. 

    2.  FedEx
shall provide Supplemental Service to the USPS for the term of the Agreement; provided, however, that in the event FedEx terminates Supplemental Service to
any location identified in the
Supplemental Operating Plan, FedEx's obligation to provide Supplemental Service to such location shall also terminate. 

    3.  Product
transported by way of the Supplemental Service shall be subject to a charge of [*] in addition to the non-fuel transport
charge and fuel transport charge specified in Exhibit B, Part B. Each time a Handling Unit originates at or is destined to a location identified in the Supplemental Operating Plan the
Supplemental Service charge shall be applied. This rate will escalate [*] per year beginning with the Schedule Period inclusive of the following dates. 

	 	Year 2	 	August 27, 2002
	 	Year 3	 	August 27, 2003
	 	Year 4	 	August 27, 2004
	 	Year 5	 	August 27, 2005
	 	Year 6	 	August 27, 2006
	 	Year 7	 	August 27, 2007

 

    4.  The addition or deletion of any locations to the Supplemental Operating Plan will require the execution of an amendment to the Supplemental Operating Plan. 

    5.  All
capitalized terms not otherwise defined in this Amendment shall have the meanings set forth in the Agreement. 

    6.  Except
as amended by this Amendment, the terms and conditions of the Agreement shall remain in full force and effect and are ratified and confirmed in all respects. 

    IN WITNESS WHEREOF, the parties have signed this Amendment in duplicate, one for each of the Parties, as of August 28, 2001. 

	 	THE UNITED STATES POSTAL SERVICE
	

 	

By:	
 	

/s/ LESLIE A. GRIFFITH   

	 	Title:	 	Contracting Officer
	

 	

FEDERAL EXPRESS CORPORATION
	

 	

By:	
 	

/s/ PAUL J. HERRON   

	 	Title:	 	Vice President,

Postal Transportation Management

2

 

Attachment VII to Exhibit A 

[*]

	*
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SPACES CONTAINED CONFIDENTIAL INFORMATION WHICH HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

3

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Exhibit 10.5<Page>

EXHIBIT 10.05 RETIREMENT AGREEMENT BY AND BETWEEN S. SUE ARAMIAN AND THE
REGISTRANT

                       TERMINATION OF EMPLOYMENT AGREEMENT

     This Termination of Employment Agreement (the "Agreement") is made and
entered into as of the 15th day of August, 2001, by and between The Steak n
Shake Company (the "Company") and S. Sue Aramian.

     WHEREAS, Ms. S. Sue Aramian has served as an employee of the Company since
1983, having served the Company two years prior to that time without pay; and

     WHEREAS, Ms. Aramian's service to the Company has included a wide range of
important positions, including Vice President, Secretary, and, currently, Vice
Chairwoman of the Board of Directors; and

     WHEREAS, Ms. Aramian has advised the Company that she will retire as an
employee of the Company effective March 1, 2002, and will resign her position as
Vice Chairwoman of the Board of Directors in January, 2004; and

     WHEREAS, the Company would like to express its gratitude and appreciation
for Ms. Aramian's faithful and distinguished service and for her significant
contributions to the Company's growth and success, as a modern-day founder of
the Company, in conjunction with Mr. E. W. Kelley.

     NOW, THERFORE, it is agreed between the parties hereto as follows:

     1.   Commencing upon Ms. Aramian's retirement as an employee of the Company
          on March 1, 2002, Ms. Aramian will be paid the sum of $7,000 per month
          ($84,000 annually) for the balance of her lifetime.

     2.   Ms. Aramian will also remain eligible for coverage under the Company's
          medical insurance plans for the balance of her lifetime; provided,
          however, that such coverage shall be secondary to Medicare or any
          other coverage provided by the Federal government.

     3.   In consideration of the above, Ms. Aramian has agreed to make herself
          available to the Board for special assignments during her retirement.
          It is understood, however, that Ms. Aramian has no obligation to
          accept any particular special assignment.

This Agreement was executed as of the date first set forth above.

                                             THE STEAK N SHAKE COMPANY

-----------------------------------          -----------------------------------
S. Sue Aramian                               E. W. Kelley, Chairman

                                             -----------------------------------
                                             Alan B. Gilman, President

                                       35

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