Item 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.

On June 19, 2009, the Compensation Committee of the Board of Directors voted unanimously to increase the salary of the Chairman, President and Chief Executive Officer, Sardar Biglari, to $900,000 per year effective immediately. Mr. Biglari's previous salary had been $280,000. Mr. Biglari does not have an employment agreement and will not participate in any bonus program or receive any stock or stock option grants. Mr. Biglari does not receive any separate compensation for serving as a Director or Chairman of the Board of Directors.

Item 8.01 OTHER EVENTS

On June 24, 2009, the Company closed on a transaction repaying in full all sums due and owing under, and terminating, the Amended and Restated Note Purchase and Private Shelf Agreement between the Company and The Prudential Insurance Company of America originally dated as of September 20, 2002, as amended. The Company's payment included $12.1 million in principal and interest and $0.5 million of yield maintenance premium.

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