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<SEC-DOCUMENT>0000825324-09-000021.txt : 20091229
<SEC-HEADER>0000825324-09-000021.hdr.sgml : 20091229
<ACCEPTANCE-DATETIME>20091229160232
ACCESSION NUMBER:		0000825324-09-000021
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20090930
FILED AS OF DATE:		20091229
DATE AS OF CHANGE:		20091229

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GOOD TIMES RESTAURANTS INC
		CENTRAL INDEX KEY:			0000825324
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING PLACES [5812]
		IRS NUMBER:				841133368
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18590
		FILM NUMBER:		091264042

	BUSINESS ADDRESS:	
		STREET 1:		601 CORPORATE CIRCLE
		CITY:			GOLDEN
		STATE:			CO
		ZIP:			80401
		BUSINESS PHONE:		3033841400

	MAIL ADDRESS:	
		STREET 1:		601 CORPORATE CIRCLE
		CITY:			GOLDEN
		STATE:			CO
		ZIP:			80401

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PARAMOUNT VENTURES INC
		DATE OF NAME CHANGE:	19900205
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>final10kb1.htm
<TEXT>
<html>

<head>
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<body lang=EN-US link=blue vlink=purple>



<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>









<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>



<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>



</div>

<p class=MsoNormal align=center style='margin-top:13.2pt;text-align:center'><b>UNITED
STATES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>SECURITIES
AND EXCHANGE COMMISSION</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>WASHINGTON</b><b>,
 D.C. 20549</b></p>

<p class=MsoNormal align=center style='margin-top:13.2pt;text-align:center'><b>FORM
10-K</b></p>

<p class=MsoNormal align=center style='margin-top:13.2pt;text-align:center'><b>Annual
Report Pursuant to Section&nbsp;13 or 15(d)</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;of
the Securities Exchange Act of 1934</b></p>

<p class=MsoNormal align=center style='margin-top:13.2pt;text-align:center'><b>For
the fiscal year ended <u>September 30, 2009</u></b> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Commission
file number <u>000-18590</u></b></p>

<p class=MsoNormal align=center style='margin-top:13.2pt;text-align:center'><b>GOOD
TIMES RESTAURANTS INC.&nbsp;</b></p>

<p class=MsoNormal align=center style='text-align:center'>(Exact
name of registrant as specified in its charter)</p>

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=720
 style='border-collapse:collapse'>
 <tr style='height:12.4pt'>
  <td width=341 valign=bottom style='width:3.55in;padding:0in 0in 0in 0in;
  height:12.4pt'>

  </td>
  <td width=38 valign=bottom style='width:.4in;padding:0in 0in 0in 0in;
  height:12.4pt'>

  </td>
  <td width=341 valign=bottom style='width:3.55in;padding:0in 0in 0in 0in;
  height:12.4pt'>

  </td>
 </tr>
 <tr style='height:12.4pt'>
  <td width=341 valign=top style='width:3.55in;padding:0in 0in 0in 0in;
  height:12.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>Nevada</p>
  </td>
  <td width=38 valign=bottom style='width:.4in;padding:0in 0in 0in 0in;
  height:12.4pt'>

  </td>
  <td width=341 valign=top style='width:3.55in;padding:0in 0in 0in 0in;
  height:12.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>84-1133368</p>
  </td>
 </tr>
 <tr style='height:1.25pt'>
  <td width=341 valign=top style='width:3.55in;border:none;border-top:solid black 1.0pt;
  padding:0in 0in 0in 0in;height:1.25pt'>

  </td>
  <td width=38 style='width:.4in;padding:0in 0in 0in 0in;height:1.25pt'>

  </td>
  <td width=341 valign=top style='width:3.55in;border:none;border-top:solid black 1.0pt;
  padding:0in 0in 0in 0in;height:1.25pt'>

  </td>
 </tr>
 <tr style='height:24.75pt'>
  <td width=341 valign=top style='width:3.55in;padding:0in 0in 0in 0in;
  height:24.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>(State
  or other jurisdiction of incorporation or organization)</p>
  </td>
  <td width=38 valign=bottom style='width:.4in;padding:0in 0in 0in 0in;
  height:24.75pt'>

  </td>
  <td width=341 valign=top style='width:3.55in;padding:0in 0in 0in 0in;
  height:24.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>(I.R.S.
  Employer Identification Number)</p>
  </td>
 </tr>
</table>

</div>

<p class=MsoNormal align=center style='text-align:center'><u>601 Corporate
Circle, Golden, Colorado&nbsp;&nbsp;&nbsp;&nbsp; 80401</u></p>

<p class=MsoNormal align=center style='text-align:center'>(Address of
principal executive offices)&nbsp;&nbsp;&nbsp;&nbsp; (Zip Code)</p>

<p class=MsoNormal align=center style='margin-top:6.0pt;text-align:center'>Issuer's
telephone number:&nbsp; <u>(303) 384-1400</u></p>

<p class=MsoNormal align=center style='margin-top:6.0pt;text-align:center'>Securities
registered pursuant to Section&nbsp;12(b) of the Act:</p>

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=744
 style='border-collapse:collapse'>
 <tr style='height:9.9pt'>
  <td width=365 valign=bottom style='width:3.8in;border:none;border-bottom:
  solid black 1.0pt;padding:0in 0in 0in 0in;height:9.9pt'>
  <p class=MsoNormal align=center style='text-align:center'>Title
  of each class</p>
  </td>
  <td width=38 valign=bottom style='width:.4in;padding:0in 0in 0in 0in;
  height:9.9pt'>

  </td>
  <td width=341 valign=bottom style='width:3.55in;border:none;border-bottom:
  solid black 1.0pt;padding:0in 0in 0in 0in;height:9.9pt'>
  <p class=MsoNormal align=center style='text-align:center'>Name
  of each exchange on which registered</p>
  </td>
 </tr>
 <tr style='height:12.4pt'>
  <td width=365 valign=top style='width:3.8in;padding:0in 0in 0in 0in;
  height:12.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>Common
  Stock $.001 par value, Preferred Stock $.01 par value</p>
  </td>
  <td width=38 valign=bottom style='width:.4in;padding:0in 0in 0in 0in;
  height:12.4pt'>

  </td>
  <td width=341 valign=top style='width:3.55in;padding:0in 0in 0in 0in;
  height:12.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>The
  NASDAQ Stock Market, LLC</p>
  </td>
 </tr>
</table>

</div>

<p class=MsoNormal align=center style='margin-top:13.2pt;text-align:center'>Securities
registered pursuant to Section&nbsp;12(g) of the Act: None</p>

<p class=MsoNormal style='margin-top:6.6pt'>Indicate by check mark if the
registrant is a well-known seasoned issuer, as defined in Rule 405 of the
Securities Act.&nbsp; Yes__&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  No&nbsp; <u>x</u></p>

<p class=MsoNormal style='margin-top:6.6pt'>Indicate by check mark if
the registrant is not required to file reports pursuant to Section 13 or
Section 15(d) of the Act.&nbsp; Yes__</p>

<p class=MsoNormal style='margin-bottom:12.0pt'>&nbsp;No&nbsp; x</p>

<p class=MsoNormal>Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the Securities Exchange
Act of 1934 during the preceding 12 months and (2)has been subject to such
filing requirements for the past 90 days Act.</p>

<p class=MsoNormal style='margin-bottom:6.0pt'>Yes&nbsp;&nbsp;&nbsp; <u>x</u> &nbsp;&nbsp;&nbsp;&nbsp; No__</p>

<p class=MsoNormal style='margin-bottom:6.0pt'>Indicate by check mark
whether the registrant has submitted electronically and posted on its corporate
Web site, if any, every Interactive Data File required to be submitted and
posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months
(or for such shorter period that the registrant was required to submit and post
such files). Yes__&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No&nbsp;&nbsp; <u>x</u></p>

<p class=MsoNormal style='margin-bottom:6.0pt'>Indicate by check mark if
disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not
contained herein, and will not be contained, to the best of registrant's
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K. <u>[</u><u>x]</u></p>

<p class=MsoNormal style='margin-bottom:6.0pt'>Indicate by check mark
whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer or a smaller reporting company. See definition of &quot;large
accelerated filer&quot;, &quot;accelerated filer&quot; and &quot;smaller reporting company&quot; in
Rule&nbsp;12b-2 of the Exchange Act. (Check one):</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr style='height:24.75pt'>
  <td width=156 valign=top style='width:117.1pt;padding:0in 0in 0in 0in;
  height:24.75pt'>
  <p class=MsoNormal>Large accelerated filer__</p>
  </td>
  <td width=139 valign=top style='width:104.45pt;padding:0in 0in 0in 0in;
  height:24.75pt'>
  <p class=MsoNormal>Accelerated filer__</p>
  </td>
  <td width=254 valign=top style='width:190.25pt;padding:0in 0in 0in 0in;
  height:24.75pt'>
  <p class=MsoNormal>Non-accelerated filer__</p>
  <p class=MsoNormal>(Do not check if a smaller reporting company)</p>
  </td>
  <td width=171 valign=top style='width:128.1pt;padding:0in 0in 0in 0in;
  height:24.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>Smaller
  Reporting </p>
  <p class=MsoNormal align=center style='text-align:center'>Company
  <u>x</u></p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:6.6pt'>Indicate by check mark
whether the registration is a shell company (as defined in Rule&nbsp;12b-2 of
the Exchange Act). Yes__
No&nbsp; <u>x</u></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'>As
of December 15, 2009, the aggregate market value of the 1,991,206 shares of
common stock held by non-affiliates of the issuer, based on the closing sales
price of the common stock on December 15, 2009 of $1.08 per share as reported
on the Nasdaq Capital Market, was $2,150,502.</p>

<p class=MsoFooter>As
of December 15, 2009, the issuer had 3,898,559 shares of common stock outstanding.
</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>





<br
clear=all style='page-break-before:always'>












<p class=MsoNormal align=center style='margin-top:0in;margin-right:.7pt;
margin-bottom:12.0pt;margin-left:0in;text-align:center'><b>TABLE OF
CONTENTS</b></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=636
 style='width:477.0pt;margin-left:9.9pt;border-collapse:collapse'>
 <tr style='height:.2in'>
  <td width=570 valign=top style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=center style='margin-top:12.0pt;margin-right:0in;
  margin-bottom:12.0pt;margin-left:0in;text-align:center'><b>FORM 10-K -
  PART I</b></p>
  </td>
  <td width=66 valign=top style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-top:12.0pt;margin-right:0in;
  margin-bottom:12.0pt;margin-left:0in;text-align:right'><b>&nbsp;</b></p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal>Item
  1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>1 - 10</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal>Item
  1A&nbsp;&nbsp;&nbsp;&nbsp; Risk Factors</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>10 - 13</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal>Item
  1B&nbsp;&nbsp;&nbsp;&nbsp; Unresolved Staff Comments</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>13</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal>Item
  2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Properties</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>13 - 14</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal>Item
  3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal Proceedings</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>14</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal style='margin-left:45.6pt;text-indent:-45.6pt'>Item 4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Submission
  of Matters to a Vote of Security Holders</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>14</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 valign=top style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=center style='margin-top:12.0pt;margin-right:0in;
  margin-bottom:12.0pt;margin-left:0in;text-align:center'><b>PART II</b></p>
  </td>
  <td width=66 valign=top style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-top:12.0pt;margin-right:0in;
  margin-bottom:12.0pt;margin-left:0in;text-align:right'><b>&nbsp;</b></p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal style='margin-left:45.6pt;text-indent:-45.6pt'>Item 5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market
  for Registrant's Common Equity, Related Stockholder Matters and Issuer
  Purchases of Equity Securities</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>14</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal style='margin-left:45.6pt;text-indent:-45.6pt'>Item 6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selected
  Financial Data</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>15</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal style='margin-left:45.6pt;text-indent:-45.6pt'>Item 7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management's
  Discussion and Analysis of Financial Condition and Results of Operations</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>16 - 22</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal style='margin-left:45.6pt;text-indent:-45.6pt'>Item 7A&nbsp;&nbsp;&nbsp;&nbsp; Quantitative
  and Qualitative Disclosures About Market Risk</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>22</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal>Item
  8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and Supplementary Data</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>F1 - F19</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal style='margin-left:45.6pt;text-indent:-45.6pt'>Item 9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes
  In and Disagreements with Accountants on Accounting and Financial Disclosure</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>23</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal>Item
  9A&nbsp;&nbsp;&nbsp;&nbsp; Controls and Procedures</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>23</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal>Item
  9B&nbsp;&nbsp;&nbsp;&nbsp; Other Information</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='text-align:right'>23</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=570 valign=top style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'><b><br
  clear=all style='page-break-before:always'>
  </b>
  <p class=MsoNormal align=center style='margin-top:12.0pt;margin-right:0in;
  margin-bottom:12.0pt;margin-left:0in;text-align:center'><b>PART III</b></p>
  </td>
  <td width=66 valign=top style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-top:12.0pt;margin-right:0in;
  margin-bottom:12.0pt;margin-left:0in;text-align:right'><b>&nbsp;</b></p>
  </td>
 </tr>
 <tr style='height:.1in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'>
  <p class=MsoNormal style='margin-left:45.35pt;text-indent:-45.35pt'>Item 10&nbsp;&nbsp;&nbsp;&nbsp; Directors,
  Executive Officers and Corporate Governance</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'>
  <p class=MsoNormal align=right style='text-align:right'>23 - 27</p>
  </td>
 </tr>
 <tr style='height:.1in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'>
  <p class=MsoNormal>Item
  11&nbsp;&nbsp;&nbsp;&nbsp; Executive Compensation</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'>
  <p class=MsoNormal align=right style='text-align:right'>27 - 29</p>
  </td>
 </tr>
 <tr style='height:.1in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'>
  <p class=MsoNormal style='margin-left:45.6pt;text-indent:-45.6pt'>Item 12&nbsp;&nbsp;&nbsp;&nbsp; Security
  Ownership of Certain Beneficial Owners and Management and Related Stockholder
  Matters</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'>
  <p class=MsoNormal align=right style='text-align:right'>30- 31</p>
  </td>
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  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'>
  <p class=MsoNormal style='margin-left:45.6pt;text-indent:-45.6pt'>Item 13&nbsp;&nbsp;&nbsp;&nbsp; Certain
  Relationships, Related Transactions, and Director Independence</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'>
  <p class=MsoNormal align=right style='margin-bottom:6.0pt;text-align:right'>31</p>
  </td>
 </tr>
 <tr style='height:.1in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'>
  <p class=MsoNormal>Item
  14&nbsp;&nbsp;&nbsp;&nbsp; Principal Accountant Fees and Services</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'>
  <p class=MsoNormal align=right style='text-align:right'>32</p>
  </td>
 </tr>
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  <td width=570 valign=top style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=center style='margin-top:12.0pt;margin-right:0in;
  margin-bottom:12.0pt;margin-left:0in;text-align:center'><b>PART IV</b></p>
  </td>
  <td width=66 valign=top style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-top:12.0pt;margin-right:0in;
  margin-bottom:12.0pt;margin-left:0in;text-align:right'><b>&nbsp;</b></p>
  </td>
 </tr>
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  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'>
  <p class=MsoNormal style='margin-bottom:12.0pt'>Item 15&nbsp;&nbsp;&nbsp;&nbsp; Exhibits, Financial
  Statement Schedules</p>
  </td>
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  <p class=MsoNormal align=right style='text-align:right'>33 - 35</p>
  </td>
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 <tr style='height:.1in'>
  <td width=570 style='width:427.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'>
  <p class=MsoNormal>Signatures</p>
  </td>
  <td width=66 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'>
  <p class=MsoNormal align=right style='text-align:right'>36</p>
  </td>
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<p class=MsoNormal style='margin-top:6.0pt;margin-right:-.7pt;margin-bottom:
6.0pt;margin-left:0in'><b>PART
I</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Item 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business.</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'><b>Overview:</b>
Good Times Restaurants Inc., a Nevada corporation (the &quot;Company&quot;),
was organized in 1987.&nbsp; The Company is essentially a holding company for its
wholly owned subsidiary, Good Times Drive Thru Inc., which is engaged in the
business of developing, owning, operating and franchising hamburger-oriented
drive-through restaurants under the name Good Times Burgers &amp; Frozen
Custard.&nbsp; Most of our restaurants are located in the front-range communities of
Colorado but we also have franchised restaurants in Idaho, North Dakota and
Wyoming.&nbsp; The terms &quot;Good Times&quot;, &quot;we&quot;, &quot;us&quot; and
&quot;our&quot; where used herein refer to the operations of Good Times Drive
Thru Inc. and of the Company.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'><b>Recent
Developments:</b> &nbsp;After several years of same store
sales growth, including several months of double digit growth in fiscal 2007
and early fiscal 2008, we experienced a dramatic change in our sales trends,
beginning in early calendar 2008 and continuing through September 2009, as the
economy slowed and competitive pricing pressures intensified.&nbsp;&nbsp; Due to the
dramatic decline in consumer spending, the unprecedented rise in commodity
costs and the upheaval in the credit markets, we suspended most of our
restaurant development under both the dual brand format and under the Development
Agreement with Zen Partners LLC described below.&nbsp; We also had to suspend the
development of company-owned restaurants. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'>As discussed
below in Concept and Business Strategy, we are focusing on regaining our same
store sales momentum, improving our core value proposition for the consumer and
evolving the brand to a more highly differentiated position in the marketplace.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'>On August 14,
2009 as reported on form 8-K we announced that our Board of Directors has
formed a Special Committee comprised of directors Richard Stark, Alan Teran and
Geoff Bailey to explore and evaluate strategic alternatives aimed at enhancing
shareholder value and explore alternatives to reduce the cost burdens of being
a publicly held entity. At that time, the Company hired Mastodon Ventures, Inc.
to provide strategic advisory services and explore other strategic alternatives
that will further the long-term&nbsp;business prospects of the Company and
provide incremental value to its shareholders.&nbsp; The foregoing activities are
continuing without yet any specific recommended alternatives.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'>There can be no
assurance regarding the timing of or whether the Board will elect to pursue any
of the strategic alternatives it may consider, or that any such alternatives
will result in changes to the Company's plans or will be consummated, and there
is no certainty that any&nbsp;strategic alternative will involve a transaction
for shareholders at a share price&nbsp;equal to&nbsp;or above the
current&nbsp;trading&nbsp;price of the Company's shares, bearing in mind that
the trading market for the Company's shares is relatively inactive and that the
Company has&nbsp;realized losses from operations during recent
periods.&nbsp;&nbsp; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'>The strategic
advisory services agreement (the &quot;Agreement&quot;) with Mastodon Ventures, Inc.
(&quot;Mastodon&quot;), provides that Mastodon will provide the Company with exclusive
advisory services related to the possible restructuring of certain lease and
debt agreements of the Company and the identification of possible additional
sources of capital for the Company.&nbsp; The services include but are not limited
to assistance with the preparation of information, structuring of a plan,
negotiations with potential investors and lenders, preparation of any documents
required to be filed with federal and state agencies relating to a restructuring
plan and analyzing other strategic alternatives.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'>The term of the
Agreement is for six months and terminable by the Company or Mastodon upon
thirty days written notice.&nbsp; Mastodon will receive an initial retainer fee of
$25,000 together with three monthly payments of $7,500 each made in October,
November and December 2009 and a Success Fee of up to $250,000 upon the
completion of a restructuring event.&nbsp; The maximum aggregate fees to Mastodon
shall not exceed $297,500 and the Agreement includes provisions for the payment
of lesser fees based upon the amount and type of capital raised, type of restructuring
plan implemented or if within 12 months following the termination of the
Agreement the Company enters into an agreement with persons or entities identified
by Mastodon or the Company during the term of the Agreement. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'>While the
Agreement provides that Mastodon is being engaged by the Company as an advisor
to the Company&nbsp;to explore strategic options, Mastodon understands that the
Board of Directors of the Company has appointed a Special Committee to consider
certain of&nbsp;such options on behalf of the shareholders of the
Company.&nbsp; Mastodon agrees that its services shall
include&nbsp;communicating with such Special Committee as it may reasonably request&nbsp;and,
if&nbsp;directed by such Committee, Mastodon shall hold such communications in
confidence.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'>On April 20,
2009 as reported on form 8-K, Good Times Restaurants Inc. (the &quot;Company&quot;) and
Good Times Drive Thru Inc. (&quot;GTDT&quot;), a wholly owned subsidiary of the Company,
entered into a loan agreement with Golden Bridge, LLC (&quot;Golden Bridge&quot;),
pursuant to which Golden Bridge made a loan of $185,000 (the &quot;Golden Bridge Loan&quot;)
to GTDT to be used for restaurant marketing and other working capital needs.
The Golden Bridge Loan is evidenced by a promissory note dated April 20, 2009
(the &quot;Golden Bridge Note&quot;) made by the Company and GTDT, as co-makers, and bears
interest at a rate of 10% per annum on the unpaid principal balance.&nbsp; The
Golden Bridge Note provides for monthly interest payments and will mature and
be due and payable in full on July 10, 2010.</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'>The Golden
Bridge Loan Agreement and Note are subject to the terms of an Intercreditor Agreement
dated April 20, 2009 (the &quot;Intercreditor Agreement&quot;), among the Company, GTDT,
Golden Bridge and PFGI II, LLC (&quot;PFGI&quot;).&nbsp; As previously reported by the
Company, GTDT currently has a $2,500,000 revolving line of credit with PFGI
(the &quot;PFGI Loan&quot;), which was scheduled to mature on July 10, 2009. In
connection with PFGI's entry into the Intercreditor Agreement, GTDT and the
Company entered into a first amendment to the amended and restated promissory
note dated April 20, 2009 (the &quot;PFGI Note Amendment&quot;), which extended the
maturity date of the PFGI Loan until July 10, 2010 and eliminated a loan balance
threshold for release of the collateral securing the PFGI Loan.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'>In connection
with the Golden Bridge Loan, the Company issued a three-year warrant dated
April 20, 2009 (the &quot;Warrant&quot;) to Golden Bridge which provides that Golden
Bridge may at any time from April 20, 2009 until April 20, 2012 purchase up to
92,500 shares of the Company's common stock (the &quot;Warrant Shares&quot;) at an
exercise price of $1.15 per share. The fair value of the Warrant issued was
determined to be $42,000 with the following assumptions: 1) risk free interest
rate of 1.27%, 2) an expected life of 3 years, and 3) an expected dividend
yield of zero. The fair value of $42,000 was charged to the note discount and
credited to Additional Paid in Capital. The note discount is being amortized
over fourteen months and charged to interest expense.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'>See Financing
Activities under the Liquidity and Capital Resources section Part II, Item 7.
Management's Discussion and Analysis of Financial Condition and Results of
Operations below for further details of the above transaction.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'>As reported on
the form 8-K filed on January 23, 2009, we are in default of certain technical
loan covenants on our note payable to Wells Fargo Bank, N.A. (the &quot;Bank&quot;).
Therefore the amount owing under this facility is reflected as a current liability
in the accompanying Condensed Consolidated Balance Sheet as of September 30,
2009. We have never been in payment default on the note and expect to be able
to remain current on payments in fiscal 2010, depending however on our sales
trends and cash flow from operations.&nbsp; On February 9, 2009 we received a
Reservation of Rights letter from the Bank formally notifying us of the default
of the Earnings Before Interest Taxes and Depreciation (&quot;EBITDA&quot;) Coverage
Ratio of not less than 1.5 to 1.0 and the Tangible Net Worth of not less than
$5,000,000 as set forth in the Credit Agreement for the period ending December
31, 2008. The letter serves as notice that in light of the foregoing events of
default, the Bank is reserving all of its rights and remedies under the Credit
Agreement and related agreements.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'>The Bank is not
accelerating the loan at this time and is continuing to accept regularly
scheduled payments of principal and interest under the loan; however the acceptance
of payments under the loan does not constitute a modification of the Credit
Agreement or a waiver of any of the covenants or of the Bank's rights or
remedies under the Credit Agreement, including the right to accelerate the loan
in the future after the giving of notice. &nbsp;We will continue to work with the
Bank on a Required Corrective Action for compliance with existing or modified
loan covenants.&nbsp; There can be no assurance that the Bank will in the future agree
to modify or waive any of the loan covenants or waive any of its rights or
remedies under the Credit Agreement and we require additional financing to
repay the loan balance.&nbsp; The loan is secured by security agreements covering
the equipment of four restaurants.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'>In December
2007 we granted permission for a North Dakota franchisee to terminate their
Good Times franchise agreements in our dual brand concept with Taco John's
International and effective December 2008 one Wyoming dual brand franchise
agreement was also terminated.&nbsp; Our dual brand test agreement expired in September
2008 by mutual agreement. However, one additional franchised dual brand
restaurant opened in December 2008 in Sheridan, Wyoming.</p>

<p class=Style4 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>In
August 2008 we announced the suspension of development of Good Times
restaurants under a 2007 Development Agreement with Zen Partners LLC, in which
David Grissen, a significant stockholder and a member of our Board of Directors,
has a 20% ownership interest.&nbsp; No restaurants have been developed under the
agreement.&nbsp; We may reevaluate expansion discussion with Zen Partners LLC as
conditions impacting our sales trends, the macroeconomic environment and credit
markets may change. </p>

<p class=Style4 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><b>Concept
and Business Strategy:</b>
We operate with two different formats that have evolved over the course of our
history:&nbsp; a smaller, 880 square foot double drive thru building focused on
drive thru service and limited walk up service; and a newer 2,400 to 2,700
square foot, 70 seat dining room format that is the model for future stores.&nbsp;
We are currently further refining the prototype design to reduce development
costs and improve the return on investment model for company owned and
franchised restaurant expansion with a 2,000 square foot, 50 seat dining room
design that will carry forward all of the core design elements of our prior
prototype design.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>In light of the last two years' sales declines
that began at the start of the current economic recession, we are primarily
focused on regaining positive growth in our existing stores' sales.&nbsp; During the
last year we have upgraded the quality and portions of our core hamburger and
chicken products, introduced new products, run several different promotions
discounting our premium products, reduced the price of our most popular hamburger
item and introduced Everyday Values in both our core and fountain menus with
price points from $1.25 to $1.99.&nbsp; While our primary value proposition for the
consumer is derived from the quality and taste of our products, the current
competitive and consumer spending environment continues to redefine value
expectations within the hamburger quick service restaurant segment and a larger
number of transactions are being driven by the availability of menu items at an
even lower price point of $1 and below. </p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We plan to become more competitive for consumers
through re-engineering smaller menu items at lower price points rather than
focus on discounting premium products that are our iconic &quot;go to for&quot; menu
items.&nbsp; The lower priced menu items will still be consistent with our quality
brand position offering fresh, all natural, made to order products available
only at Good Times.&nbsp; While we do not anticipate a $1 menu, we are testing and
plan to implement lower price points for the increasingly value conscious
customer.&nbsp; We believe we have effective premium and mid-tier priced menu
offerings, but need to strengthen our offerings for customers that want smaller
portions and lower price options.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We are continuing to implement every possible
quality enhancement to our core menu in burgers, chicken, fries and fountain
products to anchor our quality leadership in the quick service restaurant
industry.&nbsp; We have been testing fresh, hand cut fries for over six months and
are in the process of rolling them out system wide to replace our seasoned,
battered Wild Fry.&nbsp; We have found that our Wild Fry, while unique, for many
customers limits their frequency of use of Good Times.&nbsp; Our new fresh, hand cut
fries are unique to QSR in our market and will be supported by our marketing
campaign of &quot;Get Back to What's Good!&quot;&nbsp; We also have several other new products
in development that will be unique to Good Times and we will continue to focus
on innovation within our current menu categories as well as very selective
innovation in products with broad appeal for added variety.&nbsp; The core of our
brand position is to continue to offer the highest quality, best tasting
burgers, fries &amp; frozen custard available in the quick service restaurant
segment. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Our core strategies have not changed and we
continue to focus on the following initiatives to regain positive sales growth:
</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;text-indent:0in'>&sect;&nbsp;&nbsp;
<i>Focus
on our most important drivers of success:</i></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:37.05pt;text-align:justify;text-indent:-19.95pt'>o&nbsp;&nbsp;&nbsp;
<i>Values.&nbsp;
</i>We
strive to build and develop behaviors and expectations around what we value
most throughout the company: integrity, continued improvement, customer loyalty
and respect for each other.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:37.05pt;text-align:justify;text-indent:-19.95pt'>o&nbsp;&nbsp;&nbsp;
<i>People.
</i>&nbsp;Beginning
with our Operating Partner Program, people are our strongest asset.&nbsp; We seek to
hire high quality people throughout and provide them with comprehensive
training programs to ensure that we deliver consistently superior products and
service.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:37.05pt;text-align:justify;text-indent:-19.95pt'>o&nbsp;&nbsp;&nbsp;
<i>Distinctive
quality.&nbsp; </i>We
strive to offer unique, highly distinctive tastes with the highest quality
ingredients available in the quick service restaurant category.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:37.05pt;text-align:justify;text-indent:-19.95pt'>o&nbsp;&nbsp;&nbsp;
<i>Excellent
systems. </i>&nbsp;We
strive to provide the best systems and processes in every area to free our management
to focus on leading their people.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.1pt;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
<i>Offer
high quality, unique menu items that provide exceptional value.&nbsp; </i>Our
restaurants feature menu items that are unique in the quick service segment,
and flavor profiles that are associated more with casual theme restaurants than
with fast food.&nbsp; Whenever possible, products support the brand umbrella of
&quot;fresh, high quality ingredients&quot; such as fresh frozen custard made fresh
throughout the day in every restaurant, 100% all natural Coleman beef, fresh
squeezed lemonade, grilled honey cured bacon, sliced Bermuda onions and
toppings such as real guacamole,&nbsp; grilled pineapple and saut&#233;ed mushrooms.&nbsp;
Each menu category has signature recipes with fun, irreverent names that build
Good Times' non-traditional personality such as Wild Fries with Wild Dippin
Sauce, Big Daddy Bacon Cheeseburger, Mighty Deluxe, Burnin' Buffalo Chicken and
Cappuccino Mocha Joe, Raspberry Torte and Strawberry Cheesecake Addiction
Custard Spoonbenders.&nbsp; We have made significant changes to our entire menu to
leverage our heritage of quality products and to position the Good Times brand
for a more unique and highly differentiated consumer experience.&nbsp;&nbsp; Those
product and system changes include the following:</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:54.9pt;text-align:justify;text-indent:-.25in'>a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
introduction of fresh, never frozen, all natural, purebred Angus beef for all
of our burgers.&nbsp; The beef is Certified Humanely Raised, has never had
antibiotics or growth hormones and is vegetarian fed. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:54.9pt;text-align:justify;text-indent:-.25in'>b.&nbsp;&nbsp;&nbsp;&nbsp; Increased the
size of our hamburger patties by approximately 10% on a new split top, sponge
baked bun that is 20% heavier with increased portions of fresh produce.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:54.9pt;text-align:justify;text-indent:-.25in'>c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reduced the
price for our core Deluxe Burger and Deluxe Cheeseburger for a stronger value
proposition.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:54.9pt;text-align:justify;text-indent:-.25in'>d.&nbsp;&nbsp;&nbsp;&nbsp; Established a
new fresh grilled, honey cured bacon burger category with new flavor profiles.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:54.9pt;text-align:justify;text-indent:-.25in'>e.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reworked our
chicken category with 100% breast meat sandwiches and tenders with revised
flavor profiles that are unique to fast food.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:54.9pt;text-align:justify;text-indent:-.25in'>f.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tested,
validated and are rolling out fresh, hand-cut fries cut fresh daily from whole
Idaho russet potatoes.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:54.9pt;text-align:justify;text-indent:-.25in'>g.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We will
continue to raise the sales and promotional activity of our fountain category
of fresh squeezed lemonades, fresh frozen custard treats, shakes and floats.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:54.9pt;text-align:justify;text-indent:-.25in'>h.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We are
retraining team members in every restaurant on every position with new
standards.</p>

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</i>









<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:.25in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Establish
a unique brand position in quick service restaurants</i>.&nbsp; We aspire
to have Good Times stand for &quot;providing food the way it used to be.&nbsp; Good Times
is bringing real food back to fast food with pure, wholesome food that tastes
the way food used to taste.&quot;&nbsp; Key brand support for that will include
attributes such as &quot;Fresh&quot;, &quot;All Natural&quot;, &quot;Fresh Grilled&quot;, &quot;Authentic&quot;,
&quot;Homemade&quot;, and &quot;Fresh Squeezed&quot; with a theme of fresh ingredients and hand
crafted food. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.1pt;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
<i>Continually
improve our fast, friendly, personal customer service. </i>We strive to
optimize and personalize the interaction between our employees and customers,
particularly at the points of order and payment, to build a reputation as
having the friendliest service.&nbsp; We manage the face to face interaction with
our customers through extensive employee screening and hospitality training to
ensure their experience is punctuated by attentive, friendly service.&nbsp; During
fiscal 2009 we introduced a new online screening and hiring system to reduce
our hourly employee turnover and hire for good service attitudes.&nbsp;
Additionally, we introduced video training tools for the first time that we
believe will enhance consistent execution of our quality standards. Speed of
service through our drive thru lanes is important to the consumers' need for
convenience, but is always secondary to delivering the highest quality product
possible.&nbsp; We monitor each car's service time and have developed incentive
programs for management and employees to maintain our quick service standards.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.3pt;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
<i>Build
customer loyalty through a unique brand experience.&nbsp; </i>In addition to
fast friendly service and great tasting products, we strive to maintain clean,
safe and appealing facilities with a particular emphasis on well groomed
landscaping, freshly painted exteriors and merchandising that highlights the
unique product attributes and flavors of our products.&nbsp; We believe that
everything the customer sees, smells, hears and feels influences their overall
impression and the reputation of Good Times and that Good Times' target
customer is seeking more out of even a quick service restaurant experience.&nbsp; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.3pt;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
<i>Build
awareness of the Good Times Burgers &amp; Frozen Custard brand. </i>We believe
that Good Times has built substantial brand equity among our customers and has
become known for our quality, service and signature tastes, particularly within
the hamburger category.&nbsp; We believe there is significant opportunity to
continue to build that reputation within the hamburger category by continuing
to build a stronger overall value proposition and increase awareness of our
frozen custard and fountain category. As capital becomes available to us to
build out the Colorado market, we plan to increase our media advertising,
raising our overall awareness and building a highly differentiated brand
personality.&nbsp; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.3pt;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
<i>Continually
improve our employees' knowledge and proficiency of our core processes. </i>Our customers'
experience is driven by the ability of our management and employees to
consistently execute clearly defined processes in every area of our business.&nbsp;
We believe that our employees' abilities and attitudes are directly related to
our ability to provide well designed service, production and operating
processes and effective training that allows them to continually learn, improve
and succeed.&nbsp; We train, test, certify and re-train all employees and management
on all of our core operating and management processes to continually improve
levels of proficiency.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Current fiscal year initiatives</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:18.7pt;text-align:justify;text-indent:-18.7pt'>1.&nbsp;&nbsp;&nbsp; <b>Consistently
Grow Same Store Sales:</b> We will continue to focus on comparable restaurant
sales driven by increases in guest counts and increases in the average guest
check.&nbsp; Same store sales decreased 12.4% in fiscal 2009 compared to fiscal
2008.&nbsp; We hope to increase guest counts later in fiscal 2010 through a
multi-faceted approach to continually improve the Good Times brand experience
for our customers by:</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:31.35pt;text-align:justify;text-indent:-14.25pt'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Establishing
a more relevant value proposition that is centered on the availability of lower
price choices and smaller portions.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:31.35pt;text-align:justify;text-indent:-14.25pt'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Implementing
fresh cut fries and other new product introductions that are unique to Good
Times.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:31.35pt;text-align:justify;text-indent:-14.25pt'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Evolving
the Good Times brand position under a new umbrella of &quot;Back to Real Food&quot;
supported by the marketing campaign's tagline of &quot;Get Back to What's Good.&quot;</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:31.35pt;text-align:justify;text-indent:-14.25pt'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Improving
our execution on customer service and the delivery of our brand experience
through re-training of all of our employees on new standards and heightened
expectations.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:31.35pt;text-align:justify;text-indent:-14.25pt'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Continuing
to reinvest in our existing facilities with enhanced landscaping, patios and
exterior building finishes to improve the restaurants' curb appeal and
appearance.&nbsp; </p>

<p class=MsoFooter align=center style='text-align:center'>4</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.1pt;text-align:justify;text-indent:-17.1pt'>2.&nbsp;&nbsp;&nbsp; <b>Improve
our Income from Operations:</b> The quality, portioning and pricing changes to
improve our value proposition in fiscal 2009 resulted in an increase in our
cost of sales from 31.7% in fiscal 2008 to 33.7% in fiscal 2009.&nbsp;&nbsp; We began to
see smaller increases in commodity costs later in the year, and our goal is to
reduce our overall cost of sales in fiscal 2010, even with the introduction of
lower price points for some of our menu items.&nbsp; We implemented a cumulative
total weighted menu price increase of 2.31% during fiscal 2009 and we expect to
take modest price increases in fiscal 2010.&nbsp; During fiscal 2009, we continued
to reduce non-service labor hours and reduced our hourly employee turnover from
approximately 225% to approximately 155%.&nbsp; We reduced our General &amp;
Administrative costs by $474,000 in fiscal 2009 and we are evaluating each
restaurant's profitability and may sell or sublease a small number of low
volume restaurants during fiscal 2010.&nbsp;&nbsp; Approximately 40% to 45% of
incremental sales changes at each restaurant flow through to Income from
Operations, depending on the level of each restaurant's sales.&nbsp; As a result,
our restaurant operating margins are influenced most significantly from the
leveraging or deleveraging of fixed and semi-variable expenses along with same
store sales increases or decreases.&nbsp; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.1pt;text-align:justify;text-indent:-17.1pt'>3.&nbsp;&nbsp;&nbsp; <b>Pursue
Strategic Alternatives:</b>&nbsp; As described above, the Company has hired Mastodon
Ventures, Inc. to provide strategic advisory services and explore other
strategic alternatives that will further the long-term&nbsp;business prospects
of the Company and provide incremental value to its shareholders. The strategic
advisory services agreement (the &quot;Agreement&quot;) with Mastodon Ventures, Inc.
(&quot;Mastodon&quot;), provides that Mastodon will provide the Company with exclusive
advisory services related to the possible restructuring of certain lease and
debt agreements of the Company and the identification of possible additional
sources of capital for the Company.&nbsp; The services include but are not limited
to assistance with the preparation of information, structuring of a plan,
negotiations with potential investors and lenders, preparation of any documents
required to be filed with federal and state agencies relating to a restructuring
plan and analyzing other strategic alternatives.&nbsp;&nbsp; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Expansion strategy and site selection:</b> Our longer
term strategy of becoming a super regional brand in select contiguous markets
depends on our ability to reverse our same store sales trends, on the consumer
spending environment and on the availability of capital, which is currently
limited.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Any new development would involve our new
prototype restaurant design on sites that are on or adjacent to big box or
grocery store anchored shopping centers in high activity and employment areas.&nbsp;
Our site selection for new restaurants is oriented toward slightly higher
income demographic areas than many of our urban locations and most of our
targeted trade areas are in relatively high growth areas of the Denver,
Colorado Springs and northern Colorado markets.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We lease most of our sites.&nbsp; When we do purchase
and develop a site, we intend to sell the developed site into the
sale-leaseback market under a long term lease.&nbsp; Our primary site objective is
to secure a suitable site, with the decision to buy or lease as a secondary
objective.&nbsp; Our site criteria includes a mix of substantial daily traffic,
density of at least 30,000 people within a three mile radius, strong daytime
population and employment base, retail and entertainment traffic generators,
good visibility and easy access.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Restaurant locations:</b> We currently
operate and franchise a total of fifty-one Good Times restaurants, of which
forty-seven are in Colorado, with forty-two in the Denver greater metropolitan
area, three in Colorado Springs, one in Grand Junction and one in Silverthorne.</p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
 style='margin-left:5.4pt;border-collapse:collapse;border:none'>
 <tr>
  <td width=234 valign=top style='width:175.5pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  </td>
  <td width=59 valign=bottom style='width:43.95pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Total</b></p>
  </td>
  <td width=95 valign=top style='width:71.25pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Denver, CO</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Greater
  Metro</b></p>
  </td>
  <td width=74 valign=bottom style='width:55.8pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Colorado</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Other</b></p>
  </td>
  <td width=54 valign=bottom style='width:40.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Idaho</b></p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Wyoming</b></p>
  </td>
  <td width=66 valign=bottom style='width:49.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>North Dakota</b></p>
  </td>
 </tr>
 <tr>
  <td width=234 valign=top style='width:175.5pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Good
  Times co-owned &amp; co-developed</p>
  </td>
  <td width=59 valign=top style='width:43.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp; 27</p>
  </td>
  <td width=95 valign=top style='width:71.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24</p>
  </td>
  <td width=74 valign=top style='width:55.8pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>3</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=66 valign=top style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=234 valign=top style='width:175.5pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Good
  Times franchised</p>
  </td>
  <td width=59 valign=top style='width:43.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp; 16</p>
  </td>
  <td width=95 valign=top style='width:71.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13</p>
  </td>
  <td width=74 valign=top style='width:55.8pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>1</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=66 valign=top style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=234 valign=top style='width:175.5pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Dual
  brand co-owned</p>
  </td>
  <td width=59 valign=top style='width:43.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3</p>
  </td>
  <td width=95 valign=top style='width:71.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3</p>
  </td>
  <td width=74 valign=top style='width:55.8pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=66 valign=top style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=234 valign=top style='width:175.5pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Dual
  brand franchised</p>
  </td>
  <td width=59 valign=top style='width:43.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5</p>
  </td>
  <td width=95 valign=top style='width:71.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2</p>
  </td>
  <td width=74 valign=top style='width:55.8pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width=66 valign=top style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>1</p>
  </td>
 </tr>
 <tr>
  <td width=234 valign=top style='width:175.5pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>Total</p>
  </td>
  <td width=59 valign=top style='width:43.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp; 51</p>
  </td>
  <td width=95 valign=top style='width:71.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42</p>
  </td>
  <td width=74 valign=top style='width:55.8pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>5</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>1</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width=66 valign=top style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>1</p>
  </td>
 </tr>
</table>





<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 align=left
 width=661 style='border-collapse:collapse;border:none;margin-left:6.75pt;
 margin-right:6.75pt'>
 <tr>
  <td width=661 colspan=3 valign=top style='width:495.9pt;border:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-left:3.3in;text-align:center'><b>DECEMBER</b></p>
  </td>
 </tr>
 <tr>
  <td width=299 valign=top style='width:224.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=188 valign=top style='width:141.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>2008</b></p>
  </td>
  <td width=174 valign=top style='width:130.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>2009</b></p>
  </td>
 </tr>
 <tr>
  <td width=299 valign=top style='width:224.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Company-owned restaurants</p>
  </td>
  <td width=188 valign=top style='width:141.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>21</p>
  </td>
  <td width=174 valign=top style='width:130.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>21</p>
  </td>
 </tr>
 <tr>
  <td width=299 valign=top style='width:224.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Joint venture restaurants</p>
  </td>
  <td width=188 valign=top style='width:141.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>9</p>
  </td>
  <td width=174 valign=top style='width:130.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>9</p>
  </td>
 </tr>
 <tr>
  <td width=299 valign=top style='width:224.1pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.5pt;border-right:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Franchise operated restaurants</p>
  </td>
  <td width=188 valign=top style='width:141.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>22</p>
  </td>
  <td width=174 valign=top style='width:130.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>21</p>
  </td>
 </tr>
 <tr>
  <td width=299 valign=top style='width:224.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>Total
  restaurants</p>
  </td>
  <td width=188 valign=top style='width:141.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>52</p>
  </td>
  <td width=174 valign=top style='width:130.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>51</p>
  </td>
 </tr>
</table>





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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>In October 2008 we opened one new company-owned
restaurant in Firestone, Colorado. In December 2008 a Wyoming franchisee
terminated their Good Times franchise agreement in the dual brand concept and
has stopped selling Good Times products in one location.&nbsp; Also in December 2008
a franchisee opened a new dual brand restaurant in Sheridan, Wyoming. In
October 2009 a franchisee operating a Good Times restaurant in Thornton,
Colorado terminated their franchise agreement and closed the restaurant.&nbsp; We
anticipate that we may close three low volume franchised restaurants. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Menu:</b> The menu of a
Good Times Burgers &amp; Frozen Custard restaurant is limited to hamburgers,
cheeseburgers, chicken sandwiches, french fries, onion rings, fresh squeezed
and frozen lemonades, soft drinks and frozen custard products.&nbsp; Each menu item
is made to order at the time the customer places the order and is not
pre-prepared.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The hamburger patty is prepared with specially
formulated and seasoned Coleman 100% natural beef, served on a 4 1/4 inch bun.&nbsp;
Coleman was acquired by Meyer All Natural Beef and as of January 2009 all of
our hamburgers are made from fresh, all natural, pure bred Angus beef.&nbsp;
Hamburgers and cheeseburgers are garnished with fresh iceberg lettuce, fresh
sliced sweet red
onions,
mayonnaise,
mustard,
ketchup, pickles and fresh sliced tomatoes.&nbsp; Other specialty hamburger toppings
include guacamole, fresh grilled honey cured bacon, and proprietary sauces.&nbsp;
The chicken products include a spiced, battered whole muscle breast patty and a
grilled seasoned breast patty, both served with mayonnaise, lettuce and
tomatoes, and Chicken Dunkers, whole breast meat breaded strips. Signature
chicken sandwiches include the Burnin' Buffalo, Tasty Teriyaki, and Guacamole
Chicken.&nbsp; Equipment has been automated and equipped with compensating computers
to deliver a consistent product and minimize variability in operating systems.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>All natural Angus beef is raised without the use
of any hormones, antibiotics or animal byproducts that are normally used in the
open beef market.&nbsp; We believe that all natural beef delivers a better tasting
product and, because of the rigorous protocols and testing that are a part of
the Meyer processes, also may minimize the risk of any food-borne
bacteria-related illnesses. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Fresh frozen custard is a premium ice cream
(requiring in excess of 10% butterfat content) with a proprietary vanilla blend
that is prepared from highly specialized equipment that minimizes the amount of
air that is added to the mix and that creates smaller ice crystals than other
frozen dairy desserts.&nbsp; The custard is scooped similarly to hard-packed ice
cream but is served at a slightly warmer temperature. The resulting product is
smoother, creamier and thicker than typical soft serve or hard-packed ice cream
products.&nbsp; Good Times serves the frozen custard in cups and cones, specialty
sundaes and &quot;Spoonbenders&quot;, a mix of custard and toppings, and we
anticipate it will continue to become a larger percentage of sales as we
continue to develop custard products and awareness.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Marketing &amp; Advertising:</b> Our marketing
strategy focuses on:&nbsp; 1) driving comparable restaurant sales through attracting
new customers and increasing the frequency of visits by current customers; 2)
communicating specific product news and attributes to build strong points of
difference from competitors; and 3) communicating a unique, strong and
consistent brand.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Media is an important component of building Good
Times' brand awareness and distinctiveness.&nbsp; We spent our advertising dollars
on both television and radio media during fiscal 2009.&nbsp; The Colorado market is
an expensive media market, so most of our advertising placement is not in prime
time but in early and late fringe, prime access and late news time slots.&nbsp; As
we continue to develop more and more distinctiveness to Good Times' brand and
increase penetration of the Colorado market, we anticipate we will continue to
use media advertising to increase overall awareness.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Another important component of our marketing
efforts is point-of-sale and on-site merchandising.&nbsp; We rotate new four color
product point-of-purchase displays every other month and support new product
introductions with extensive merchandising. Our restaurants with dining rooms
have back-lit and front-lit product displays, table tents and product messaging
throughout.&nbsp; Menu boards are kept fresh with new food photography and graphics
several times throughout the year.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We plan to redesign and expand the use of our
website during fiscal 2010 and we use email marketing and social media as a
tool to build customer loyalty.&nbsp; We have a marketing agreement with the Pepsi
Center in Denver, Colorado to serve and promote Good Times' products in that
venue.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Operations</b></p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Restaurant Management:</b> We have
developed Operating Partners in several of our restaurants as we are able to
recruit qualified candidates.&nbsp; We believe that this is a distinct competitive
advantage that provides a higher level of service, quality control and
stability over time. The objective of the Operating Partner Program is to have
each partner develop a relationship with the employees, the customers and the
community at their restaurant and develop an ownership mentality with
commensurate rewards as sales increase over a longer period of time.&nbsp; The
program allows an Operating Partner to earn 25% of a restaurant's improvement
in cash flow over an established baseline.&nbsp; Each Good Times unit employs an
operating partner or a general manager, one to two assistant managers and
approximately 15 to 25 employees, most of whom work part-time during three
shifts.&nbsp; An eight to ten week training program is utilized to train restaurant
managers on all phases of the operation.&nbsp; Ongoing training is provided as
necessary. We believe that incentive compensation of our restaurant managers is
essential to the success of our business.&nbsp; Accordingly, in addition to a
salary, managerial employees may be paid a bonus based upon proficiency in
meeting financial, customer service and quality performance objectives tied to
a monthly scorecard of measures.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Operational systems and processes:</b> We believe
that we have some of the best operating systems and processes in the industry.&nbsp;
Detailed processes have been developed for hourly, daily, weekly and monthly
responsibilities that drive consistency across our system of restaurants and
performance against our standards within different day parts.&nbsp; We utilize a
labor program to determine optimal staffing needs of each restaurant based on
its actual customer flow and demand.&nbsp; We also employ several additional
operational tools to continuously monitor and improve speed of service, food
waste, food quality, sanitation, financial management and employee
development.&nbsp; We are moving toward automating and computerizing as many of
these systems as possible into an integrated, digital management system.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The order system at each Good Times restaurant is
equipped with an internal timing device that displays and records the time each
order takes to prepare and deliver.&nbsp; The total transaction time for the
delivery of food at the window is approximately 30 to 60 seconds during peak
times.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We use several sources of customer feedback to
evaluate each restaurant's service and quality performance, including an
extensive, computerized secret shopper program, customer comment phone line,
telephone surveys and web site comments.&nbsp; Additionally, management uses both
its own primary consumer research for product development and to determine
customer usage and attitude patterns as well as third party market research
that evaluates Good Times' performance ratings on several different operating
attributes against key competitors.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Training:</b> We strive to
maintain quality and consistency in each of our restaurants through the careful
training and supervision of all our employees at all levels and the
establishment of, and adherence to, high standards relating to personnel
performance, food and beverage preparation and maintenance of our restaurants.&nbsp;
Each manager must complete an eight to ten week training program, be certified
on several core processes and is then closely supervised to show both
comprehension and capability before they are allowed to manage autonomously.&nbsp;
All of our training and development is based upon a &quot;train, test, certify, re-train&quot;
cycle around standards and operating processes at all levels.&nbsp; We conduct a
semi-annual performance review with each manager to discuss prior performance
and future performance goals.&nbsp; We have a defined weekly and monthly goal
setting process around service, employee development, financial management and
store maintenance goals for every restaurant.&nbsp; During fiscal 2009, we implemented
video training tools to drive training efficiencies and consistency.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Recruiting and retention:</b> We seek to
hire experienced restaurant managers and Operating Partners.&nbsp; We support
employees by offering competitive wages and benefits, including a 401(k) plan,
medical insurance, stock options for regional managers and incentives plans at
every level that are tied to performance against key goals and objectives.&nbsp; We
motivate and prepare our employees by providing them with opportunities for
increased responsibilities and advancement.&nbsp; We also provide various other
incentives, including vacations, car allowances, monthly performance bonuses
and monetary rewards for managers who develop future managers for our
restaurants.&nbsp;&nbsp; In fiscal 2009, we implemented an online screening and hiring
tool that has proven to reduce hourly employee turnover.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Franchising:</b> Good Times
has prepared prototype area rights and franchise agreements, a Uniform
Franchise Disclosure Document (&quot;UFDD&quot;) and advertising material to be utilized
in soliciting prospective franchisees.&nbsp; We seek to attract franchisees that are
experienced restaurant operators, well capitalized and have demonstrated the ability
to develop one to five restaurants.&nbsp; We review sites selected for franchises
and monitor performance of franchise units.&nbsp; We are not currently soliciting
new franchisees and will not do so until capital becomes more available and we
have regained positive same store sales momentum.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We estimate that it will cost a franchisee on
average approximately $750,000 to $1,100,000 to open a restaurant with dining
room seating, including pre-opening costs and working capital, assuming the
land is leased.&nbsp; A franchisee typically will pay a royalty of 4% of net sales,
an advertising materials fee of at least 1.5% of net sales, plus participation
in regional advertising up to an additional 4% of net sales, or a higher amount
approved by the advertising cooperative, and initial development and franchise
fees totaling $25,000 per restaurant.&nbsp; Among the services and materials which
we provide to franchisees are site selection assistance, plans and
specifications for construction of the Good Times Burgers and Frozen Custard
restaurants, an operating manual which includes product specifications and
quality control procedures, training, on-site opening supervision and advice
from time to time relating to operation of the franchised restaurants.</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>After a franchise agreement is signed, we actively
work with and monitor our franchisees to ensure successful franchise operations
as well as compliance with Good Times systems and procedures.&nbsp; During the
development phase, we assist in the selection of sites and the development of prototype
and building plans, including all required changes by local municipalities and
developers.&nbsp; We provide an opening team of trainers to assist in the opening of
the restaurant and training of the employees.&nbsp; We advise the franchisee on
menu, management training, marketing, and employee development.&nbsp; On an ongoing
basis we conduct standards reviews of all franchise restaurants in key areas
including product quality, service standards, restaurant cleanliness and
sanitation, food safety and people development.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We have entered into thirteen franchise agreements
in the greater Denver metropolitan area.&nbsp; Thirteen franchise restaurants and
nine joint-venture restaurants are operating in the Denver metropolitan area
media market.&nbsp; Good Times franchise restaurants also operate in Colorado
Springs and Grand Junction, Colorado and in Boise, Idaho.&nbsp; Dual branded
franchised restaurants operate in Gillette and Sheridan, Wyoming, Ft. Collins
and Windsor, Colorado, and Bismarck, North Dakota.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Management Information Systems:</b> Financial and
management control is maintained through the use of automated data processing
and centralized accounting and management information systems that we provide.&nbsp;
Sales, labor and cash data is collected daily via a restaurant back office system
which gathers data from the restaurant point-of-sale system.&nbsp; Management
receives daily, weekly and monthly reports identifying food, labor and
operating expenses and other significant indicators of restaurant performance.&nbsp;
We believe that these reporting systems are sophisticated and enhance our
ability to control and manage operations.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Food Preparation, Quality Control
&amp; Purchasing:</b>
We believe that we have some of the highest food quality standards in the quick
service restaurant industry.&nbsp; Our systems are designed to protect our food
supply throughout the preparation process.&nbsp; We inspect specific qualified
manufacturers and work together with those manufacturers to provide
specifications and quality controls.&nbsp; Our operations management teams are trained
in a comprehensive safety and sanitation course provided by the National
Restaurant Association.&nbsp; Minimum cook temperature requirements and line checks
throughout the day ensure the safety and quality of both burgers and other
items we use in our restaurants.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We currently purchase 100% of our restaurant food
and paper supplies from Yancey's Food Service.&nbsp; We do not believe that the
current reliance on this sole vendor will have any long-term material adverse
effect since we believe that there are a sufficient number of other suppliers
from which food and paper supplies could be purchased.&nbsp; We do not anticipate
any difficulty in continuing to obtain an adequate quantity of food and paper
supplies of acceptable quality and at acceptable prices.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Employees:</b> At December 15,
2009, we had approximately 459 employees of which 383 are part time hourly
employees and 76 are salaried employees working full time.&nbsp; We consider
our employee relations to be good.&nbsp; None of our employees are covered by a
collective bargaining agreement.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Competition:</b> The
restaurant industry, including the fast food segment, is highly competitive.&nbsp;
Good Times competes with a large number of other hamburger-oriented fast food
restaurants in the areas in which it operates.&nbsp; Many of these restaurants are
owned and operated by regional and national restaurant chains, many of which
have greater financial resources and experience than we do.&nbsp; Restaurant
companies that currently compete with Good Times in the Denver market include
McDonald's, Burger King, Wendy's, Carl's Jr., Sonic and Jack in the Box.&nbsp;
Double drive-through restaurant chains such as Rally's Hamburgers and Checker's
Drive-In Restaurants, which currently operate a total of over 800 double
drive-through restaurants in various markets in the United States, are not
currently operating in Colorado.&nbsp; Culver's and Freddy's are the only
significant competitors offering frozen custard as a primary menu item
operating in the Denver and Colorado Springs markets and both have a
significant presence in the targeted Midwestern markets for expansion.&nbsp;
Additional &quot;fast casual&quot; hamburger restaurants are being developed in the
Colorado market, such as Smashburger and Five Guys, however, they do not have
drive-through service and generate an average per person check that is
approximately 50% higher than Good Times.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Our management believes that we may have a
competitive advantage in terms of quality of product compared to traditional
fast food hamburger chains.&nbsp; Early development of our double drive-through concept
in Colorado has given us an advantage over other double drive-through chains
that may seek to expand into Colorado because of our brand awareness and
present restaurant locations.&nbsp; Nevertheless, we may be at a competitive
disadvantage to other restaurant chains with greater name recognition and
marketing capability.&nbsp; Furthermore, most of our competitors in the fast-food
business operate more restaurants, have been established longer, and have
greater financial resources and name recognition than we do.&nbsp; There is also
active competition for management personnel, as well as for attractive
commercial real estate sites suitable for restaurants.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Trademarks</b>: Good Times
has registered its mark &quot;Good Times! Drive Thru Burgers&quot;(SM) with the
State of Colorado. &nbsp;We have also registered our mark &quot;Good Times Burgers &amp;
Frozen Custard&quot; federally and with the State of Colorado.&nbsp; Good Times received
approval of its federal registration of &quot;Good Times&quot; in 2003.&nbsp; In
addition we own trademarks or service marks that have been registered, or for
which applications are pending, with the United States Patent and Trademark
Office including but not limited to: &quot;Mighty Deluxe&quot;, &quot;Wild Fries&quot;,
&quot;Spoonbender&quot;, &quot;Chicken Dunkers&quot;, &quot;Big Daddy Bacon Cheeseburger&quot;, and
&quot;Wild Dippin' Sauce&quot;. Our trademarks expire between 2010 and 2015.</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Government Regulation:</b> Each Good
Times restaurant is subject to the regulations of various health, sanitation,
safety and fire agencies in the jurisdiction in which the restaurant is
located.&nbsp; Difficulties or failures in obtaining the required licenses or
approvals could delay or prevent the opening of a new Good Times restaurant.&nbsp;
Federal and state environmental regulations have not had a material effect on
our operations. More stringent and varied requirements of local governmental
bodies with respect to zoning, land use and environmental factors could delay
or prevent development of new restaurants in particular locations.&nbsp; We are
subject to the Fair Labor Standards Act, which governs such matters as minimum
wages, overtime, and other working conditions.&nbsp; In addition, we are subject to
the Americans With Disabilities Act, which requires restaurants and other
facilities open to the public to provide for access and use of facilities by
the handicapped.&nbsp; Management believes that we are in compliance with the
Americans With Disabilities Act.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We are also subject to federal and state laws
regulating franchise operations, which vary from registration and disclosure
requirements in the offer and sale of franchises to the application of
statutory standards regulating franchise relationships.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Available Information:</b> Our Internet
website address is www.goodtimesburgers.com.&nbsp; We make available free of charge
through our website's investor relations information section our annual reports
on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and
any amendments to those reports filed with or furnished to the SEC under
applicable securities laws as soon as reasonably practical after we
electronically file such material with, or furnish it to, the SEC.&nbsp; Our website
information is not part of or incorporated by reference into this Annual Report
on Form 10-K.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Special Note About Forward-Looking
Statements:</b>
From time to time the Company makes oral and written statements that reflect
the Company's current expectations regarding future results of operations,
economic performance, financial condition and achievements of the Company.&nbsp; We
try, whenever possible, to identify these forward-looking statements by using
words such as &quot;anticipate,&quot; &quot;assume,&quot; &quot;believe,&quot;
&quot;estimate,&quot; &quot;expect,&quot; &quot;intend,&quot; &quot;plan,&quot;
&quot;project,&quot; &quot;may,&quot; &quot;will,&quot; &quot;would,&quot; and
similar expressions&nbsp; Certain forward-looking statements are included in this
Form 10-K, principally in the sections captioned &quot;Description of
Business,&quot; and &quot;Management's Discussion and Analysis of Financial
Condition and Results of Operations.&quot;&nbsp; Forward-looking statements are
related to, among other things:</p>

<p class=MsoNormal style='margin-left:27.0pt;text-align:justify;text-indent:
- -13.5pt'>&sect;&nbsp; business
objectives and strategic plans;</p>

<p class=MsoNormal style='margin-left:27.0pt;text-align:justify;text-indent:
- -13.5pt'>&sect;&nbsp; operating
strategies;</p>

<p class=MsoNormal style='margin-left:27.0pt;text-align:justify;text-indent:
- -13.5pt'>&sect;&nbsp; our ability to
open and operate additional restaurants profitably and the timing of such
openings;</p>

<p class=MsoNormal style='margin-left:27.0pt;text-align:justify;text-indent:
- -13.5pt'>&sect;&nbsp; restaurant and
franchise acquisitions;</p>

<p class=MsoNormal style='margin-left:27.0pt;text-align:justify;text-indent:
- -13.5pt'>&sect;&nbsp; anticipated
price increases;</p>

<p class=MsoNormal style='margin-left:27.0pt;text-align:justify;text-indent:
- -13.5pt'>&sect;&nbsp; expected
future revenues and earnings, comparable and non-comparable restaurant sales,
results of operations, and future restaurant growth (both company-owned and
franchised);</p>

<p class=MsoNormal style='margin-left:27.0pt;text-align:justify;text-indent:
- -13.5pt'>&sect;&nbsp; estimated
costs of opening and operating new restaurants, including general and
administrative, marketing, franchise development and restaurant operating
costs;</p>

<p class=MsoNormal style='margin-left:27.0pt;text-align:justify;text-indent:
- -13.5pt'>&sect;&nbsp; anticipated
selling, general and administrative expenses and restaurant operating costs,
including commodity prices, labor and energy costs; </p>

<p class=MsoNormal style='margin-left:27.0pt;text-align:justify;text-indent:
- -13.5pt'>&sect;&nbsp; future capital
expenditures;</p>

<p class=MsoNormal style='margin-left:45.0pt;text-align:justify;text-indent:
- -.25in'>&sect;&nbsp; our
expectation that we will have adequate cash from operations and credit facility
borrowings to meet all future debt service, capital expenditure and working
capital requirements in fiscal year 2010;</p>

<p class=MsoNormal style='margin-left:45.0pt;text-align:justify;text-indent:
- -.25in'>&sect;&nbsp; the
sufficiency of the supply of commodities and labor pool to carry on our
business;</p>

<p class=MsoNormal style='margin-left:45.0pt;text-align:justify;text-indent:
- -.25in'>&sect;&nbsp; success of
advertising and marketing activities;</p>

<p class=MsoNormal style='margin-left:45.0pt;text-align:justify;text-indent:
- -.25in'>&sect;&nbsp; the absence of
any material adverse impact arising out of any current litigation in which we
are involved;</p>

<p class=MsoNormal style='margin-left:45.0pt;text-align:justify;text-indent:
- -.25in'>&sect;&nbsp; impact of the
adoption of new accounting standards and our financial and accounting systems
and analysis programs;</p>

<p class=MsoNormal style='margin-left:45.0pt;text-align:justify;text-indent:
- -.25in'>&sect;&nbsp; expectations
regarding competition and our competitive advantages;</p>

<p class=MsoNormal style='margin-left:45.0pt;text-align:justify;text-indent:
- -.25in'>&sect;&nbsp; impact of our
trademarks, service marks, and other proprietary rights; and</p>

<p class=MsoNormal style='margin-left:45.0pt;text-align:justify;text-indent:
- -.25in'>&sect;&nbsp; effectiveness
of our internal control over financial reporting.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Although we believe that the expectations
reflected in our forward-looking statements are based on reasonable assumptions,
such expectations may prove to be materially incorrect due to known and unknown
risks and uncertainties.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>In some cases, information regarding certain
important factors that could cause actual results to differ materially from any
forward-looking statements appears together with such statement.&nbsp; In addition,
the factors described under Critical Accounting Policies and Estimates in Part
II, Item 7, and Risk Factors in Part I, Item 1A, as well as other possible
factors not listed, could cause actual results to differ materially from those
expressed in forward-looking statements, including, without limitation, the
following: concentration of restaurants in certain markets and lack of market
awareness in new markets; changes in disposable income; consumer spending
trends and habits; increased competition in the quick service restaurant
market; costs and availability of food and beverage inventory; our ability to
attract qualified managers, employees, and franchisees; changes in the
availability of capital or credit facility borrowings; costs and other effects
of legal claims by employees, franchisees, customers, vendors, stockholders and
others, including settlement of those claims; effectiveness of management
strategies and decisions; weather conditions and related events in regions
where our restaurants are operated; and changes in accounting standards
policies and practices or related interpretations by auditors or regulatory
entities.</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>All forward-looking statements speak only as of
the date made.&nbsp; All subsequent written and oral forward-looking statements
attributable to us, or persons acting on our behalf, are expressly qualified in
their entirety by the cautionary statements.&nbsp; Except as required by law, we
undertake no obligation to update any forward-looking statement to reflect
events or circumstances after the date on which it is made or to reflect the
occurrence of anticipated or unanticipated events or circumstances.</p>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><b>Item 1A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk Factors.</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>You should consider carefully the following risk
factors before making an investment decision with respect to Good Times
Restaurants' securities. You are cautioned that the risk factors discussed
below are not exhaustive.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>Going Concern.&nbsp; </i></b>As shown in
the accompanying financial statements, we have incurred operating losses in the
current and prior fiscal years and, due to loan covenant defaults, the entire
balance of an $846,000 note payable to Wells Fargo Bank N.A. is included in
current liabilities.&nbsp; If Wells Fargo were to accelerate payment of the note
payable and if we are not successful in raising additional operating capital,
we would not have the ability to satisfy our liabilities in the normal course
of business.&nbsp; It is our current objective to raise operating capital through
debt and equity offerings, however there can be no assurance that we will be
successful in raising the required additional capital.&nbsp; As a result of the
foregoing circumstances, our auditors have expressed in their report on our
consolidated financial statements that there is doubt about our ability to
continue as a going concern.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>We have accumulated losses.</i></b> We have
incurred losses in every fiscal year since inception except 1999, 2002, 2006
and 2007.&nbsp; As of September 30, 2009 we had an accumulated deficit of $13,805,000.&nbsp;
We cannot assure you that we will not have a loss for the current fiscal year
ending September 30, 2010.&nbsp; As of September 30, 2009, we had a working capital deficit
of $1,200,000.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>We must sustain same store sales
increases</i></b><b>.</b>&nbsp; We must
sustain same store sales increases in existing restaurants to sustain
profitability and we experienced declines in our same store sales in fiscal
2008 and fiscal 2009.&nbsp; Sales increases will depend in part on the success of
our advertising and promotion of new and existing menu items and consumer
acceptance.&nbsp; We cannot assure that our advertising and promotional efforts will
in fact be successful.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>New restaurants, when and if opened,
may not be profitable, if at all, for several months</i></b><i>.</i>&nbsp; We
anticipate that our new restaurants, when and if opened, will generally take
several months to reach normalized operating levels due to inefficiencies
typically associated with new restaurants, including lack of market awareness,
the need to hire and train a sufficient number of employees, operating costs,
which are often materially greater during the first several months of operation
than thereafter, pre-opening costs and other factors.&nbsp; In addition, restaurants
opened in new markets may open at lower average weekly sales volumes than
restaurants opened in existing markets, and may have higher restaurant-level
operating expense ratios than in existing markets.&nbsp; Sales at restaurants opened
in new markets may take longer to reach average annual company-owned restaurant
sales, if at all, thereby affecting the profitability of these restaurants.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>Our operations are susceptible to the
cost of and changes in food availability which could adversely affect our
operating results.</i></b>&nbsp; Our profitability depends in part on our ability
to anticipate and react to changes in food costs.&nbsp; Various factors beyond our
control, including adverse weather conditions, governmental regulation,
production, availability, recalls of food products and seasonality may affect
our food costs or cause a disruption in our supply chain.&nbsp; We enter into annual
contracts with our beef and chicken suppliers.&nbsp; Our contracts for chicken are
fixed price contracts.&nbsp; Our contracts for beef are generally based on current
market prices plus a processing fee.&nbsp; Changes in the price or availability of
chicken or beef could materially adversely affect our profitability.&nbsp; We cannot
predict whether we will be able to anticipate and react to changing food costs
by adjusting our purchasing practices and menu prices, and a failure to do so
could adversely affect our operating results.&nbsp; In addition, because we provide
a &quot;value-priced&quot; product, we may not be able to pass along price
increases to our guests.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>The macroeconomic recession could
affect our operating results.</i></b>&nbsp; The current state of the economy and
decreased consumer spending has adversely affected our sales over the last
eighteen months and may continue to cause material negative sales trends.&nbsp; A
continued shift in consumer purchases toward $1 value menus, in our competitive
segment, and a proliferation of heavy discounting by our major competitors may
also continue to negatively affect our sales and operating results.&nbsp; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>Price increases may impact guest
visits.</i></b>&nbsp;
We may make price increases on selected menu items in order to offset increased
operating expenses we believe will be recurring.&nbsp; Although we have not
experienced significant consumer resistance to our past price increases, we
cannot provide assurance that this or other future price increases will not
deter guests from visiting our restaurants or affect their purchasing
decisions.</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>The hamburger restaurant market is
highly competitive</i></b><b>.</b> The hamburger restaurant market is
highly competitive.&nbsp; Our competitors include many recognized national and
regional fast-food hamburger restaurant chains such as McDonald's, Burger King,
Wendy's, Carl's Jr., Sonic, Jack in the Box and Culver's.&nbsp; We also compete with
small regional and local hamburger and other fast-food restaurants, many of
which feature drive-through service.&nbsp; Most of our competitors have greater
financial resources, marketing programs and name recognition.&nbsp; All of the major
hamburger chains have increasingly offered selected food items and combination
meals at discounted prices and have recently intensified their promotions of
value priced meals.&nbsp; Continued discounting by competitors may adversely affect
the revenues and profitability of our restaurants.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>Sites may be difficult to acquire.</i></b> Location of
our restaurants in high-traffic and readily accessible areas is an important
factor for our success.&nbsp; Drive-through restaurants require sites with specific
characteristics and there are a limited number of suitable sites available in
our geographic markets.&nbsp; Since suitable locations are in great demand, and in
the future we may not be able to obtain optimal sites at a reasonable cost.&nbsp; In
addition, we cannot assure you that the sites we do obtain will be successful.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>We will require additional financing</i></b><b>.</b> In order to
fully develop the Denver and Colorado Springs/Pueblo markets and to expand into
markets outside of Colorado, we will require additional financing.&nbsp; We cannot
assure you that we will be able to access sufficient capital to adequately
finance our operations and our planned developments or that additional
financing will be available on reasonable terms.&nbsp; The current economic
recession and status of the capital markets may adversely affect our ability to
acquire additional debt or equity financing for working capital, new restaurant
development, or refinancing of existing funding agreements.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>If our franchisees cannot develop or
finance new restaurants, build them on suitable sites or open them on schedule,
our growth and success may be impeded.</i></b>&nbsp; Under our current form of
area development agreement, some franchisees must develop a predetermined
number of restaurants according to a schedule that lasts for the term of their
development agreement.&nbsp; Franchisees may not have access to the financial or
management resources that they need to open the restaurants required by their
development schedules, or may be unable to find suitable sites on which to
develop them.&nbsp; Franchisees may not be able to negotiate acceptable lease or
purchase terms for the sites, obtain the necessary permits and government
approvals or meet construction schedules.&nbsp; From time to time in the past, we
have agreed to extend or modify development schedules and we may do so in the
future.&nbsp; Any of these problems could slow our growth and reduce our franchise
revenues.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Additionally, our franchisees depend upon
financing from banks and other financial institutions in order to construct and
open new restaurants.&nbsp; Difficulty in obtaining adequate financing would
adversely affect the number and rate of new restaurant openings by our
franchisees and adversely affect our future franchise revenues.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>Our franchisees could take actions
that could harm our business.</i></b>&nbsp; Franchisees are independent
contractors and are not our employees.&nbsp; We provide training and support to
franchisees; however, franchisees operate their restaurants as independent
businesses.&nbsp; Consequently, the quality of franchised restaurant operations may
be diminished by any number of factors beyond our control.&nbsp; Moreover,
franchisees may not successfully operate restaurants in a manner consistent
with our standards and requirements, or may not hire and train qualified
managers and other restaurant personnel.&nbsp; Our image and reputation, and the
image and reputation of other franchisees, may suffer materially and
system-wide sales could significantly decline if our franchisees do not operate
successfully.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>We depend on key management employees</i></b><b>.</b> We believe
our current operations and future success depend largely on the continued
services of our management employees, in particular Boyd E. Hoback, our
president and chief executive officer, and Scott LeFever, our vice president of
operations.&nbsp; Although we have entered into an employment agreement with Mr.
Hoback, he may voluntarily terminate his employment with us at any time.&nbsp; In
addition, we do not maintain key-person insurance on Messrs. Hoback's or LeFever's
life.&nbsp; The loss of Messrs. Hoback's or LeFever's services, or other key
management personnel, could have a material adverse effect on our financial
condition and results of operations.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><i>Labor shortages could slow our growth
or harm our business.</i></b> Our success depends in part upon our ability to
attract, motivate and retain a sufficient number of qualified, high-energy
employees.&nbsp; Qualified individuals needed to fill these positions are in short
supply in some areas.&nbsp; The inability to recruit and retain these individuals
may delay the planned openings of new restaurants or result in high employee
turnover in existing restaurants, which could harm our business.&nbsp; Additionally,
competition for qualified employees could require us to pay higher wages to
attract sufficient employees, which could result in higher labor costs.&nbsp; Most
of our employees are paid on an hourly basis.&nbsp; The employees are paid in
accordance with applicable minimum wage regulations.&nbsp; Accordingly, any increase
in the minimum wage, whether state or federal, could have a material adverse
impact on our business.</p>

<p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:
0in;text-align:justify'><b><i>Nevada law and our articles of incorporation and bylaws
have provisions that discourage corporate takeovers and could prevent
stockholders from realizing a premium on their investment.</i></b> We
are subject to anti-takeover laws for Nevada corporations.&nbsp; These anti-takeover
laws prevent a Nevada corporation from engaging in a business combination with
any stockholder, including all affiliates and associates of the stockholder,
who owns 10% or more of the corporation's outstanding voting stock, for three
years following the date that the stockholder acquired 10% or more of the
corporation's voting stock, unless specified conditions are met.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Our articles of incorporation and our bylaws
contain a number of provisions that may deter or impede takeovers or changes of
control or management.&nbsp; These provisions:</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.5in;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
authorize
our Board of Directors to establish one or more series of preferred stock, the
terms of which can be determined by the Board of Directors at the time of
issuance;</p>

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<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.5in;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
do
not allow for cumulative voting in the election of directors unless required by
applicable law.&nbsp; Under cumulative voting, a minority stockholder holding a
sufficient percentage of a class of shares may be able to ensure the election of
one or more directors;</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.5in;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
state
that special meetings of our stockholders may be called only by the chairman of
the board, the president or any two directors, and must be called by the
president upon the written request of the holders of ten percent of the outstanding
shares of capital stock entitled to vote at such special meeting; and</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.5in;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
provide
that the authorized number of directors is currently set at seven.</p>

<p class=Style2 style='margin-bottom:6.0pt;text-indent:0in'>These
provisions, alone or in combination with each other, may discourage
transactions involving actual or potential changes of control, including
transactions that otherwise could involve payment of a premium over prevailing
market prices to stockholders for their common stock.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><b><i>Future changes in financial accounting standards may
cause adverse unexpected operating results and affect our reported results of
operations.</i></b>&nbsp; Changes in accounting standards can have a significant
effect on our reported results and may affect our reporting of transactions
completed before the change is effective.&nbsp; As an example, in 2006, we adopted
the change that requires us to record compensation expense in the statement of
operations for employee stock options using the fair value method.&nbsp; See Note 1
to our Consolidated Financial Statements for further discussion.&nbsp; New pronouncements
and varying interpretations of pronouncements have occurred and may occur in
the future.&nbsp; Changes to existing rules or differing interpretations with
respect to our current practices may adversely affect our reported financial
results.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><b><i>Our
NASDAQ Listing Is Important.</i></b><i>
</i>Our common
stock is currently listed for trading on the NASDAQ Capital Market.&nbsp; The NASDAQ
maintenance rules require, among other things, that our common stock price
remains above $1.00 per share and that we have minimum net tangible assets in
excess of $2 million.&nbsp; We were required to obtain shareholder approval in 1998
for a reverse stock split to maintain a sufficient per share price to preserve
our NASDAQ listing.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><b><i>We
are subject to extensive government regulation that may adversely hinder or
impact our ability to govern various aspects of our business including our
ability to expand and develop our restaurants.</i></b>&nbsp; The restaurant industry is
subject to various federal, state and local government regulations, including
those relating to the sale of food.&nbsp; While in the past we have been able to
obtain and maintain the necessary governmental licenses, permits and approvals,
our failure to maintain these licenses, permits and approvals, including food
licenses, could adversely affect our operating results.&nbsp; Difficulties or
failures in obtaining the required licenses and approvals could delay or result
in our decision to cancel the opening of new restaurants.&nbsp; Local authorities
may suspend or deny renewal of our food licenses if they determine that our
conduct does not meet applicable standards or if there are changes in
regulations.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>Various
federal and state labor laws govern our relationship with our employees and
affect operating costs.&nbsp; These laws govern minimum wage requirements, such as those
to be imposed by recently enacted legislation in Colorado, overtime pay, meal
and rest breaks, unemployment tax rates, workers' compensation rates,
citizenship or residency requirements, child labor regulations and sales
taxes.&nbsp; Additional government-imposed increases in minimum wages, overtime pay,
paid leaves of absence and mandated health benefits may increase our operating
costs.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>The
federal Americans with Disabilities Act prohibits discrimination on the basis
of disability in public accommodations and employment.&nbsp; Although our
restaurants are designed to be accessible to the disabled, we could be required
to make modifications to our restaurants to provide service to, or make
reasonable accommodations for, disabled persons.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>We
are also subject to federal and state laws that regulate the offer and sale of
franchises and aspects of the licensor-licensee relationship.&nbsp; Many state
franchise laws impose restrictions on the franchise agreement, including
limitations on non-competition provisions and the termination or non-renewal of
a franchise.&nbsp; Some states require that franchise materials be registered before
franchises can be offered or sold in the state.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><b><i>Compliance
with changing regulation of corporate governance and public disclosure may
result in additional expenses.</i></b>&nbsp;
Keeping abreast of, and in compliance with, changing laws, regulations and
standards relating to corporate governance and public disclosure, including the
Sarbanes-Oxley Act of 2002, new SEC regulations and The NASDAQ&nbsp; Market rules,
has required an increased amount of management attention and expense.&nbsp; We
remain committed to maintaining high standards of corporate governance and
public disclosure.&nbsp; As a result, we intend to invest all reasonably necessary
resources to comply with evolving standards, and this investment has resulted
in and will continue to result in increased general and administrative expenses
and a diversion of management time and attention from revenue-generating
activities to compliance activities.&nbsp; Accordingly, we are continuing to explore
alternatives to reduce the cost burdens of being a publicly held entity.</p>

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<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><b><i>Risks
related to internal controls.</i></b>&nbsp;
Public companies in the United States are required to review their internal
controls as set forth in the Sarbanes-Oxley Act of 2002.&nbsp; It should be noted
that any system of controls, however well designed and operated, can provide
only reasonable, and not absolute, assurance that the objectives of the system
are met.&nbsp; In addition, the design of any control system is based in part upon
certain assumptions about the likelihood of future events.&nbsp; Because of these
and other inherent limitations of control systems, there can be no assurance
that any design will succeed in achieving its stated goals under all potential
future conditions, regardless of how remote.&nbsp; If the internal controls put in
place by us are not adequate or in conformity with the requirements of the
Sarbanes-Oxley Act of 2002, and the rules and regulations promulgated by the
Securities and Exchange Commission, we may be forced to restate our financial
statements and take other actions which will take significant financial and
managerial resources, as well as be subject to fines and other government
enforcement actions.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><b><i>Health
concerns relating to the consumption of beef, chicken or other food products
could affect consumer preferences and could negatively impact our results of
operations.</i></b>&nbsp;
Like other restaurant chains, consumer preferences could be affected by health
concerns about the avian influenza, also known as bird flu, or the consumption
of beef, the key ingredient in many of our menu items, or negative publicity
concerning food quality, illness and injury generally, such as negative
publicity concerning E. coli, &quot;mad cow&quot; or &quot;foot-and-mouth&quot;
disease, publication of government or industry findings concerning food
products served by us, or other health concerns or operating issues stemming
from one restaurant or a limited number of restaurants.&nbsp; This negative
publicity may adversely affect demand for our food and could result in a
decrease in guest traffic to our restaurants.&nbsp; If we react to the negative
publicity by changing our concept or our menu we may lose guests who do not
prefer the new concept or menu, and may not be able to attract a sufficient new
guest base to produce the revenue needed to make our restaurants profitable.&nbsp;
In addition, we may have different or additional competitors for our intended
guests as a result of a concept change and may not be able to compete
successfully against those competitors.&nbsp; A decrease in guest traffic to our
restaurants as a result of these health concerns or negative publicity or as a
result of a change in our menu or concept could materially harm our business.</p>

<p class=Style2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><b>Item
1B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unresolved Staff Comments.</b></p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>Not
applicable.</p>

<p class=Style2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><b>Item
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Properties.</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We currently lease approximately 3,700 square feet
of space for our executive offices in Golden, Colorado for approximately $55,000
per year under
a lease agreement which expired in September 2009. We are currently leasing the
space on a month to month basis. The space is leased from The Bailey
Company, a significant stockholder in the Company, at their corporate
headquarters</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>As of December 15, 2009, Good Times has an ownership
interest in thirty Good Times units, all of which are located in Colorado.&nbsp;
Nine of these restaurants are held in joint venture limited partnerships of
which Good Times is the general partner. &nbsp;Good Times has a 50% interest in
seven of the partnership restaurants, a 78% interest in one restaurant and a
51% interest in another restaurant.&nbsp; There are twenty one Good Times units that
are wholly owned by Good Times.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Most of our existing Good Times restaurants are a
combination of free-standing structures containing approximately 880 square
feet for the double drive thru format and approximately 2400 square feet for
our prototype building with a 70 seat dining room.&nbsp; In addition, we have
several restaurants that are conversions from other concepts in various sizes
ranging from 1700 square feet to 3500 square feet.&nbsp; The buildings are situated
on lots of approximately 18,000 to 50,000 square feet.&nbsp; Certain restaurants
serve as collateral for the underlying debt financing arrangements as discussed
in the Notes to Consolidated Financial Statements included in this report.&nbsp; We
intend to acquire new sites both through ground leases and purchase agreements
supported by mortgage and leasehold financing arrangements and through
sale-leaseback agreements.</p>

<p class=MsoNormal style='margin-top:6.0pt;text-align:justify'>All of the
restaurants are regularly maintained by our repair and maintenance staff as well
as by outside contractors, when necessary.&nbsp; We believe that all of our
properties are in good condition and that there will be a need for periodic
capital expenditures to maintain the operational and aesthetic integrity of our
properties for the foreseeable future, including recurring maintenance and
periodic capital improvements.&nbsp; All of our properties are covered up to
replacement cost under our property and casualty insurance policies and in the
opinion of management are adequately covered by insurance.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Item 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal Proceedings.</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:-1.45pt;margin-bottom:
12.0pt;margin-left:0in'>We
are not involved in any material legal proceedings.&nbsp; We are subject, from time
to time, to various lawsuits in the normal course of business.&nbsp; These lawsuits
are not expected to have a material impact.</p>

<p class=MsoNormal style='margin-right:-1.45pt'><b>Item 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Submission of
Matters to a Vote of Security Holders.</b></p>

<p class=MsoNormal style='margin-top:6.0pt'>No matters were submitted to a vote of
security holders during the fourth quarter of the fiscal year ended September
30, 2009.</p>

<p class=MsoFooter align=center style='text-align:center'>13</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>












<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in'><b>PART
II</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:1.0in;text-align:justify;text-indent:-1.0in'><b>Item 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market
for Registrant's Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities.</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;text-align:justify'>Shares of Good Times Restaurants Inc. common stock
are listed for trading on the NASDAQ Capital Market under the symbol &quot;GTIM.&quot;&nbsp;
The following table presents the quarterly high and low bid prices for Good
Times Restaurants common stock as reported by the NASDAQ Capital Market for
each quarter within the last two fiscal years.&nbsp; The quotations reflect
interdealer prices, without retail mark-ups, markdowns or commissions and may
not represent actual transactions.</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:.45in;border-collapse:collapse'>
 <tr>
  <td width=300 colspan=3 valign=top style='width:225.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b><u>2008</u></b></p>
  </td>
  <td width=306 colspan=4 valign=top style='width:229.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b><u>2009</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:125.9pt;padding:0in 5.4pt 0in 5.4pt'><b><br
  clear=all style='page-break-before:always'>
  <br clear=all style='page-break-before:always'>
  </b>
  <p class=MsoNormal style='text-align:justify'><b><u>Quarter Ended</u></b></p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b><u>High</u></b></p>
  </td>
  <td width=65 valign=top style='width:48.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b><u>Low</u></b></p>
  </td>
  <td width=170 valign=top style='width:127.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'><b><u>Quarter Ended</u></b></p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b><u>High</u></b></p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b><u>Low</u></b></p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:125.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>December 31, 2007</p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$6.25</p>
  </td>
  <td width=65 valign=top style='width:48.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$5.10</p>
  </td>
  <td width=170 valign=top style='width:127.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>December 31, 2008</p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$2.95</p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$0.76</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:125.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>March 31, 2008</p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$6.25</p>
  </td>
  <td width=65 valign=top style='width:48.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$4.99</p>
  </td>
  <td width=170 valign=top style='width:127.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>March 31, 2009</p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$1.57</p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$0.75</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:125.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>June 30, 2008</p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$5.50</p>
  </td>
  <td width=65 valign=top style='width:48.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$2.08</p>
  </td>
  <td width=170 valign=top style='width:127.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>June 30, 2009</p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$2.50</p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$1.00</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:125.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>September 30, 2008</p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.50</p>
  </td>
  <td width=65 valign=top style='width:48.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$1.23</p>
  </td>
  <td width=170 valign=top style='width:127.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>September 30, 2009</p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$1.65</p>
  </td>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$1.08</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>As of December 15, 2009 there were approximately 225
holders of record of Common Stock.&nbsp; However, management estimates that there
are not fewer than 1,390 beneficial owners of our Common Stock.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Dividend Policy:</b> We have never
paid dividends on our common stock and do not anticipate paying dividends in
the foreseeable future.&nbsp; In addition, we have obtained financing under
loan agreements that restrict the payment of dividends.&nbsp; Our ability to
pay future dividends will necessarily depend on our earnings and financial
condition.&nbsp; However, since restaurant development is capital intensive, we
currently intend to retain any earnings for that purpose.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Disclosure with Respect to the
Company's Equity Compensation Plans:</b> We maintain the 2008 Omnibus Equity
Incentive Compensation Plan, pursuant to which we may grant equity awards to
eligible persons, and have outstanding stock options granted under our 2001
Good Times Restaurants Stock Option Plan, 1992 Incentive Stock Option Plan and
1992 Non-Statutory Stock Option Plan.&nbsp; For additional information, see Note 12,
Stockholders' Equity, in the Notes to the Consolidated Financial Statements
included in this report. The following table gives information about equity
awards under our plans as of September 30, 2009.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Equity Compensation Plan Information</b></p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width=691
 style='border-collapse:collapse;border:none'>
 <tr>
  <td width=157 valign=top style='width:117.9pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'><b><br clear=all style='page-break-before:always'>
  </b>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  </td>
  <td width=168 valign=top style='width:1.75in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>(a)</b></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>(b)</b></p>
  </td>
  <td width=210 valign=top style='width:157.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:3.0pt;text-align:center'><b>(c)</b></p>
  </td>
 </tr>
 <tr>
  <td width=157 valign=bottom style='width:117.9pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Plan category</b></p>
  </td>
  <td width=168 valign=bottom style='width:1.75in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Number of
  securities to be issued upon exercise of outstanding options, warrants &amp;
  rights</b></p>
  </td>
  <td width=156 valign=bottom style='width:117.0pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Weighted-average
  exercise price of outstanding options, warrants &amp; rights</b></p>
  </td>
  <td width=210 valign=bottom style='width:157.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:3.0pt;text-align:center'><b>Number of
  securities remaining available for future issuance under equity compensation
  plans (excluding securities reflected in column (a))</b></p>
  </td>
 </tr>
 <tr>
  <td width=157 valign=top style='width:117.9pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Equity
  compensation plans approved by security holders</p>
  </td>
  <td width=168 valign=bottom style='width:1.75in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>379,231</p>
  </td>
  <td width=156 valign=bottom style='width:117.0pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-left:1.55pt;text-align:center'>$3.55</p>
  </td>
  <td width=210 valign=bottom style='width:157.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:1.65pt;margin-bottom:.0001pt;text-align:center'>172,841</p>
  </td>
 </tr>
 <tr>
  <td width=157 valign=top style='width:117.9pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Total</p>
  </td>
  <td width=168 valign=bottom style='width:1.75in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>379,231</p>
  </td>
  <td width=156 valign=bottom style='width:117.0pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-left:1.55pt;text-align:center'>$3.55</p>
  </td>
  <td width=210 valign=bottom style='width:157.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:1.65pt;margin-bottom:.0001pt;text-align:center'>172,841</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-left:.75in;text-indent:-.75in'><b>&nbsp;</b></p>

<p class=MsoFooter align=center style='text-align:center'>14</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal><b>&nbsp;</b></p>

<p class=MsoNormal style='margin-left:.75in;text-indent:-.75in'><b>&nbsp;Item 6.&nbsp;&nbsp;&nbsp;&nbsp; Selected
Financial Data.</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;text-align:justify'>The selected financial data on the following pages
are derived from our historical financial statements and is qualified in its
entirety by such financial statements which are included in Item 8 hereof.</p>

<p class=MsoNormal style='margin-bottom:12.0pt;text-align:justify'>The following
presents certain historical financial information of the Company.&nbsp; This
financial information includes the combined operations of the Company and its
subsidiary for the fiscal years ended September 30, 2005 to 2009.</p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width=714
 style='border-collapse:collapse;border:none'>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-20.55pt;text-align:justify'><b>&nbsp;</b></p>
  </td>
  <td width=450 colspan=5 valign=top style='width:337.15pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:.05in;text-align:center'><b>September</b></p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-20.55pt;text-align:justify'><b>Operating
  Data:</b></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>2009</b></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>2008</b></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:.05in;text-align:center'><b>2007</b></p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:.05in;text-align:center'><b>2006</b></p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:.05in;text-align:center'><b>2005</b></p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Restaurant
  sales</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>$ 23,213,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>$ 25,244,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>$ 24,215,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>$ 20,329,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>$ 16,510,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Franchise
  fees and royalties</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>536,000</u></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>638,000</u></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>740,000</u></p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>606,000</u></p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>451,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  Net Revenues</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>23,749,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>25,882,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>24,955,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>20,935,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>16,961,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:6.0pt'>Restaurant Operating Costs:</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp; Food
  and packaging costs</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>7,816,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>8,002,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>7,589,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>6,338,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>5,434,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp; Payroll
  and other employee benefit costs</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>8,138,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>8,780,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>8,063,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>6,584,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>5,278,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp; Occupancy
  and other operating costs</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>4,877,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>4,881,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>4,393,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>3,797,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>2,966,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp; New
  store pre-opening costs</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>15,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>38,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>118,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>182,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>127,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp; Depreciation
  and amortization</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>1,262,000</u></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>1,283,000</u></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>1,223,000</u></p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>997,000</u></p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>795,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-bottom:6.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total restaurant operating
  costs</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-bottom:6.0pt;text-align:right'>22,108,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-bottom:6.0pt;text-align:right'>22,984,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>21,386,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>17,898,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>14,600,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-5.4pt'>&nbsp;&nbsp;&nbsp; Selling, General &amp;
  Administrative Expenses</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>2,860,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>3,567,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>3,226,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>2,752,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>2,548,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp; Franchise
  Costs</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>161,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>312,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>161,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>166,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>98,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-left:12.25pt;text-indent:-12.25pt'>&nbsp;&nbsp;&nbsp; Gain on
  disposal of restaurants and equipment</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>(28,000)</u></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>(35,000)</u></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>(17,000)</u></p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>(57,000)</u></p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>(22,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:6.0pt'>Income&nbsp; (Loss) from Operations</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;text-align:right'>($ 1,352,000)</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;text-align:right'>($&nbsp;&nbsp; 946,000)</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:.05in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'>$&nbsp;&nbsp; 200,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:.05in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'>$&nbsp;&nbsp; 176,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:.05in;margin-bottom:
  0in;margin-left:0in;margin-bottom:.0001pt'>($&nbsp; &nbsp;&nbsp; 265,000)</p>
  </td>
 </tr>
 <tr style='height:17.5pt'>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:17.5pt'>
  <p class=MsoNormal style='margin-top:6.0pt'>Other Income and (expenses)</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:17.5pt'>

  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:17.5pt'>

  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:17.5pt'>

  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:17.5pt'>

  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:17.5pt'>

  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp; Minority
  income (expense), net</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>54,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(113,000)</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(211,000)</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(246,000)</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(201,000)</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Unrealized
  loss on interest rate swap</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(87,000)</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>-</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>-</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>-</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Interest
  income (expense), net</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>(261,000)</u></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>(13,000)</u></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>40,000</u></p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>87,000</u></p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>48,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  other expenses</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(294,000)</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(126,000)</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(171,000)</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(159,000)</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(153,000)</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:6.0pt'>Net Income (Loss) before Income
  Taxes</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;text-align:right'><u>($ 1,646,000)</u></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;text-align:right'><u>($ 1,072,000)</u></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:.05in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp; 29,000</u></p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:.05in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp; 17,000</u></p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:.05in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'><u>($&nbsp;&nbsp; 418,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less
  imputed preferred stock dividend</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>-</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>-</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>-</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>-</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>533,000</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal style='margin-bottom:6.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-bottom:6.0pt;text-align:right'>-</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-bottom:6.0pt;text-align:right'>4,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>-</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>-</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:6.0pt'>Net Income (Loss) available to
  Common Shareholders</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;text-align:right'><u>($ 1,646,000)</u></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;text-align:right'><u>($ 1,076,000)</u></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29,000</u></p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;text-align:right'><u>$&nbsp;&nbsp; 17,000</u></p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;text-align:right'><u>($&nbsp;&nbsp;&nbsp; 951,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Basic
  and Diluted Earnings (Loss) Per Share</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>($&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  .42)</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>($&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  .28)</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .01</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .01</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>($&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  .40)</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><i>&nbsp;</i></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-20.55pt;text-align:justify'><b>Balance
  Sheet Data:</b></p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Working
  Capital (Deficit)</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>($1,200,000)</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>($ 2,082,000)</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>$ &nbsp; 532,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>$  1,547,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>$  2,722,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Total
  assets</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>10,254,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>11,920,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>11,544,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>10,693,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>9,431,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Minority
  Interest</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>428,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>584,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>751,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>795,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>620,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Long-term
  debt</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>2,478,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>846,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>970,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>1,293,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>522,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Stockholders'
  equity</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>$ 3,950,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>$ 5,409,000</p>
  </td>
  <td width=86 valign=top style='width:.9in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>$  &nbsp;&nbsp; 6,333,000</p>
  </td>
  <td width=96 valign=top style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>$  6,082,000</p>
  </td>
  <td width=94 valign=top style='width:70.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>$  5,999,000</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:.75in;text-indent:-.75in'><u>&nbsp;</u></p>

<p class=MsoFooter align=center style='text-align:center'>15</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-bottom:10.0pt;line-height:115%'><u>&nbsp;</u></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:.75in;text-indent:-.75in'><b>Item 7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management's Discussion
and Analysis of Financial Condition and Results of Operations.</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Results of Operations</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Net Revenues:</b> Net revenues
for fiscal 2009 decreased $2,133,000 (8.2%) to $23,749,000 from $25,882,000 for
fiscal 2008.&nbsp; Same store restaurant sales decreased $2,587,000 or (12.4%),
during fiscal 2009. Restaurants are included in same store sales after they
have been open a full fifteen months and only Good Times restaurants are
included while dual branded restaurants are excluded.&nbsp; Restaurant sales decreased
$292,000 due to one non-traditional company-owned restaurant not included in
same store sales and increased $848,000 due to seven new, acquired or dual
branded company-owned restaurants that were opened or acquired in fiscal 2008
and 2009. Net revenues decreased $102,000 in fiscal 2009 due to an increase in
franchise fees of $13,000 offset by a decrease in franchise royalties of $115,000.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Our same store restaurant sales decline of 12.4%
reflects the adverse impact the macroeconomic environment is having on
consumers' discretionary spending and the proliferation of heavy promotion of
$1 value menus and discounting by competitors. We had shown same store sales
growth in sixteen consecutive quarters leading into the third quarter of fiscal
2008.&nbsp; Our outlook for fiscal 2010 remains cautious as the economic pressures
may continue to impact consumer spending and we anticipate that we will
continue to face increased competitive pricing pressure.&nbsp; While we are
implementing several broad product and brand initiatives during fiscal 2010 to
improve our core value proposition, our sales may continue to be adversely
affected during the economic recession.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Average restaurant sales for company-owned and
co-developed restaurants (including double drive thru restaurants and
restaurants with dining rooms but excluding dual brand restaurants) for fiscal
2008 and 2009 were as follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:36.9pt;border-collapse:collapse'>
 <tr style='height:15.9pt'>
  <td width=180 valign=top style='width:135.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.9pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=108 valign=top style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.9pt'>
  <p class=MsoNormal><b><u>Fiscal
  2009</u></b></p>
  </td>
  <td width=108 valign=top style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.9pt'>
  <p class=MsoNormal><b><u>Fiscal
  2008</u></b></p>
  </td>
 </tr>
 <tr style='height:8.55pt'>
  <td width=180 valign=top style='width:135.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:8.55pt'>
  <p class=MsoNormal>Company
  operated</p>
  </td>
  <td width=108 valign=top style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:8.55pt'>
  <p class=MsoNormal style='margin-left:6.75pt'>$773,000</p>
  </td>
  <td width=108 valign=top style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:8.55pt'>
  <p class=MsoNormal style='margin-left:6.75pt'>$916,000</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:6.0pt;text-align:justify'>For factors
which may affect future results of operations, please refer to the section
entitled &quot;Current Fiscal Year Initiatives&quot; in Item 1 on pages 4 - 5 of this
report and a related discussion of planned product and system changes discussed
in the section entitled &quot;Concept and Business Strategy&quot; in Item 1 on pages 2 -
4 of this report.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Restaurant Operating Costs:</b> Restaurant
operating costs as a percent of restaurant sales were 95.2% for fiscal 2009
compared to 91.1% in fiscal 2008.</p>

<p class=MsoNormal style='text-align:justify'>The changes in restaurant-level costs
are explained as follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=660
 style='margin-left:5.4pt;border-collapse:collapse'>
 <tr>
  <td width=521 valign=top style='width:390.45pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText style='margin-right:-5.4pt'>Restaurant-level costs for the
  period ended September 30, 2008</p>
  </td>
  <td width=139 valign=top style='width:104.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=right style='margin-right:8.1pt;text-align:right'>91.1%</p>
  </td>
 </tr>
 <tr>
  <td width=521 valign=top style='width:390.45pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText style='margin-right:-5.4pt'>Increase in food and packaging costs</p>
  </td>
  <td width=139 valign=top style='width:104.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=right style='margin-right:8.1pt;text-align:right'>2.0%</p>
  </td>
 </tr>
 <tr>
  <td width=521 valign=top style='width:390.45pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText style='margin-right:-5.4pt'>Increase in payroll and other
  employee benefit costs</p>
  </td>
  <td width=139 valign=top style='width:104.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=right style='margin-right:8.1pt;text-align:right'>.3%</p>
  </td>
 </tr>
 <tr>
  <td width=521 valign=top style='width:390.45pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText style='margin-right:-5.4pt'>Increase in occupancy and other
  operating costs</p>
  </td>
  <td width=139 valign=top style='width:104.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=right style='margin-right:8.1pt;text-align:right'>1.6%</p>
  </td>
 </tr>
 <tr>
  <td width=521 valign=top style='width:390.45pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText style='margin-right:-5.4pt'>Decrease in pre-open costs</p>
  </td>
  <td width=139 valign=top style='width:104.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=right style='margin-right:.05in;text-align:right'>(.1%)</p>
  </td>
 </tr>
 <tr>
  <td width=521 valign=top style='width:390.45pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText style='margin-right:-5.4pt'>Increase in depreciation and
  amortization costs</p>
  </td>
  <td width=139 valign=top style='width:104.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:2.05pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; .30%</u></p>
  </td>
 </tr>
 <tr>
  <td width=521 valign=top style='width:390.45pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText style='margin-right:-5.4pt'>Restaurant-level costs for the
  period ended September 30, 2009</p>
  </td>
  <td width=139 valign=top style='width:104.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=right style='margin-right:8.1pt;text-align:right'>95.2%</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Food and Packaging Costs:</b> Food and
packaging costs for fiscal 2009 decreased $186,000 from $8,002,000 (31.7% of
restaurant sales) in fiscal 2008 to $7,816,000 (33.7% of restaurant sales). We
experienced unprecedented increases in commodity costs including beef, bakery,
soft drinks, dairy and packaging costs in fiscal 2008 with the majority of
those increases occurring in May through July 2008. In fiscal 2009 we saw a
moderation in food and packaging cost increases.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>In fiscal 2008 and 2009 our weighted food and
packaging costs increased approximately 12% and 2%, respectively.&nbsp; The
cumulative weighted menu price increases taken during fiscal 2008 and fiscal
2009 were approximately 3.8% and 2.3%, respectively.&nbsp; We anticipate limited
price increases in fiscal 2010 with continued cost pressure on several core
commodities.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Payroll and Other Employee Benefit
Costs</b>:
For fiscal 2009 payroll and other employee benefit costs decreased $642,000
from $8,780,000 (34.8% of restaurant sales) in fiscal 2008 to $8,138,000 (35.1%
of restaurant sales).</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The decrease in payroll and other employee benefit
costs for fiscal 2009 is partially due to a decrease in restaurant sales.
Payroll and benefit costs are semi-variable and therefore increase or decrease
as sales fluctuate. Additionally we have reduced our labor hours' allocation
through increased efficiencies and improved our sales per employee hour
efficiencies on service hours, thereby eliminating approximately $300,000 of
annual payroll costs. The new restaurant which opened in October 2008 operated
at a higher labor cost as a percent of sales due to higher initial labor costs
until it reached mature staffing levels.&nbsp; The three dual branded restaurants
also have a higher labor cost as a percent of sales than Good Times single brand
restaurants.</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Occupancy and Other Costs:</b> For fiscal
2009, occupancy and other costs decreased $4,000 from $4,881,000 (19.3% of
restaurant sales) in fiscal 2008 to $4,877,000 (21% of restaurant sales).&nbsp; The
$4,000 decrease in occupancy and other costs are primarily attributable to:</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.1pt;text-align:justify;text-indent:-17.1pt'>&sect;&nbsp;
Increases
in building rent of $68,000 due to normal rent escalations and the restaurants
acquired in fiscal 2008.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.1pt;text-align:justify;text-indent:-17.1pt'>&sect;&nbsp;
Increases
in property taxes of $58,000 related to valuation increases at existing
restaurants and the new and acquired restaurants.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.1pt;text-align:justify;text-indent:-17.1pt'>&sect;&nbsp;
Decrease
in our accretion for deferred rent of $32,000.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.1pt;text-align:justify;text-indent:-17.1pt'>&sect;&nbsp;
Decreases
in restaurant repairs of $61,000 primarily due to contract maintenance services.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.1pt;text-align:justify;text-indent:-17.1pt'>&sect;&nbsp;
Decreases
in utility costs of $19,000 related to utility rate decreases.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Occupancy costs may increase as a percent of sales
as new company-owned restaurants are developed due to higher rent associated
with sale-leaseback operating leases, as well as increased property taxes on
those locations.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>New Store Pre-opening Costs:</b> For fiscal
2009, new store pre-opening costs decreased $23,000 from $38,000 in fiscal 2008
to $15,000.&nbsp; New store pre-opening costs in fiscal 2008 and 2009 are related to
one new company-owned restaurant that opened in October 2008. </p>

<p class=MsoBodyText><b>Depreciation
and Amortization Costs</b>: For fiscal 2009, depreciation and amortization
costs decreased $21,000 from $1,283,000 in fiscal 2008 to $1,262,000.&nbsp;
Depreciation costs increased due to $71,000 of depreciation expense in the
three acquired and new company-owned restaurants, offset by declining depreciation
expense in our aging company-owned restaurants.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Selling, General and Administrative
Costs:</b>
For fiscal 2009, selling, general and administrative costs decreased $707,000
from $3,567,000 (14.1% of restaurant sales) in fiscal 2008 to $2,860,000 (12.3%
of restaurant sales) in fiscal 2009.&nbsp; The decrease in selling, general and
administrative costs are partially attributable to decreased advertising costs,
which decreased to $1,292,000 (5.6% of restaurant sales) for fiscal 2009 from
$1,525,000 (6.0% of restaurant sales) for fiscal 2008, and a decrease in
general and administrative costs, which decreased to $1,568,000 (6.8% of
restaurant sales) for fiscal 2009 from $2,042,000 (8.1% of restaurant sales)
for fiscal 2008 (as explained below).</p>

<p class=MsoBodyText>The
decrease in advertising costs is primarily due to the decrease in restaurant
sales, as contributions are made to the advertising materials fund and regional
advertising cooperative based on a percentage of sales. In addition, $75,000 of
payroll and employee benefit costs were eliminated in fiscal 2009 due to the
retirement of our Vice President of Marketing in November 2008. We currently
have no plans to fill the position in the immediate future.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We anticipate that fiscal 2010 advertising will
consist primarily of television and radio advertising, on-site and
point-of-purchase merchandising totaling approximately 5.8% of restaurant
sales.&nbsp; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The $474,000 decrease in general and
administrative cost is primarily attributable to:</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.3pt;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
Reductions
in payroll and employee benefit costs of $218,000.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.3pt;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
Reductions
in training and recruiting expenses of $74,000.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.3pt;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
Reduction
in professional services of $61,000.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.3pt;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
Net
reductions in various other fixed expenses of $40,000.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:17.1pt;text-align:justify;text-indent:-.25in'>&sect;&nbsp;
Reduction
in preliminary site costs related to the Omaha, Nebraska expansion of $81,000.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:-.9pt;text-align:justify'><b>Franchise Costs:</b> For fiscal
2009, franchise costs decreased $151,000 from $312,000 (1.2% of total revenues)
in fiscal 2008 to $161,000 (.7% of total revenues) in fiscal 2009.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:-.9pt;text-align:justify'>The decrease in franchise costs is primarily
attributable to the reduction in payroll and employee benefit costs related to
the Vice President of Franchise Development position that was eliminated in
July 2008 in conjunction with Good Times' exit from the planned Midwest
expansion. We incurred $12,000 in legal costs in the prior year related to
franchise registration filings. The current year includes a write off of
$20,000 for legal fees incurred in prior years related to the Good Times/Taco
John's Dual Brand franchise agreement.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:-.9pt;text-align:justify'><b>Gain on disposal of restaurants and equipment:</b> For fiscal
2009, the gain on disposal of restaurants and equipment decreased $7,000 to $28,000
from $35,000 in fiscal 2008.&nbsp; The $28,000 gain on disposal of restaurants and
equipment in fiscal 2009 is primarily related to the partial recognition of
deferred gains related to two sale-leaseback transactions that were completed
in fiscal 2004 and 2006.</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:-.7pt;text-align:justify'><b>Income (Loss) from Operations:</b> The loss from
operations was $1,352,000 in fiscal 2009 compared to a loss from operations of
$946,000 in fiscal 2008.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'><b>Net Income
(Loss):</b> Net loss was $1,646,000 for fiscal 2009 compared
to a net loss of $1,076,000 in fiscal 2008.&nbsp; The change from fiscal 2008 to
fiscal 2009 was primarily attributable to the matters discussed in the
&quot;Net Revenues&quot;, &quot;Food and Packaging Costs&quot;, &quot;Selling,
General and Administrative Costs&quot; and &quot;Franchise Costs&quot; sections
of Item 6.&nbsp; In addition, 1) minority interest expense decreased $167,000 due to
decreased income from restaurant operations of the joint venture restaurants
for fiscal 2009; 2) net interest expense increased $248,000 in fiscal 2009 primarily
due to increased borrowings on our PFGI II, LLC line-of-credit and 3) an
$87,000 unrealized loss in the current fiscal year related to our interest rate
swap liability.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:97%'><b>Liquidity and
Capital Resources</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><b>Cash and
Working Capital:</b>
As
of September 30, 2009, we had $815,000 in cash and cash equivalents on hand.&nbsp;
We currently plan to use the cash balance and any cash generated from
operations for our working capital needs in fiscal 2010.&nbsp; We anticipate that we
will require additional working capital of $300,000 to $500,000 during January
through April, 2010 and we are pursuing additional sources of funding to
increase our working capital.&nbsp;&nbsp; We are pursuing rent concessions from several
of our landlords and anticipate improved income from operations of $75,000 -
$100,000 from those transactions in fiscal 2010. If circumstances require we
may contemplate the sale or sublease of selected underperforming restaurants in
fiscal 2010.&nbsp; In April, 2009 we extended the maturity of our $2,500,000 line of
credit with PFGI II, LLC to July, 2010 and have further extended the maturity
to December 31, 2012 as described below (see &quot;Financing&quot; below).</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>As of
September 30, 2009, we had a working capital deficit of $1,200,000 due
primarily to the entire note payable to Wells Fargo Bank, N.A. of $846,000
shown as a current liability due to certain loan covenant defaults that existed
as of September 30, 2009. We are not in payment default under the note and
anticipate remaining current on all principal and interest payments in fiscal
2010, subject to our successfully raising additional operating capital.&nbsp; We
have received a Forbearance and Reservation of Rights letter from Wells Fargo
Bank stating that they are accepting current principal and interest payments
and are not currently accelerating the note, subject to agreeing to an
acceptable Required Corrective Action for the covenant defaults.&nbsp; It is
unlikely that we will have an acceptable Required Corrective Action until our Earnings
Before Interest Taxes and Depreciation (&quot;EBITDA&quot;) improves.&nbsp; If Wells Fargo
were to accelerate the note payable, we would need additional financing and we
do not currently have a source for such financing.&nbsp; Additionally, we have
recorded an $87,000 current liability related to the unrealized loss on our
interest rate swap, as described in Note 4 of the Notes to Consolidated
Financial Statements in Item 8.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The
accompanying financial statements have been prepared on a going concern basis,
which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business.&nbsp; Due to the classification of the
entire Wells Fargo note payable as a current liability and the right of Wells
Fargo to accelerate the required payment of the note, we do not show the
ability to fully satisfy our liabilities in the normal course of business
without raising additional capital.&nbsp;&nbsp; It is our objective to acquire additional
operating capital through debt and equity offerings and the possible sale of an
existing restaurant with such funds to be used for the repayment of the Wells
Fargo note and to increase our working capital.&nbsp; We believe we will be
successful in raising sufficient additional operating capital and in
restructuring our debt obligations, however there can be no assurance that we
will be successful in raising such additional funds.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The accompanying
financial statements do not include any adjustments relating to the
recoverability and classification of assets and liabilities that might be
necessary should we be unable to continue as a going concern.&nbsp; Our continuation
as a going concern is dependent upon on our ability to obtain additional
operating capital, restructure our debt obligations and attain profitability.&nbsp; </p>

<p class=MsoNormal style='text-align:justify'>In December, 2009 we entered into an
agreement to extend the maturity of the PFGI II, LLC loan to December 31, 2012
and modified the terms of the loan to include a 25 year amortization period
with a balloon payment on December 31, 2012.&nbsp; As a result, the majority of the PFGI
II LLC loan is shown as a long term liability as of September 30, 2009. We
anticipate either developing a new restaurant on the land we own
collateralizing the PFGI II loan and reducing the amount of the loan by the
value of the land or selling the property and using the proceeds to reduce the
loan, with estimated net proceeds of $800,000 to $1,000,000.&nbsp; We will continue
to market the other land and building we own that collateralizes the PFGI loan
for a sale and leaseback and plan to use the net proceeds to reduce the loan. </p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><b>Financing:</b> </p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In May 2007 we
borrowed $1,100,000 from Wells Fargo Bank under a note payable with an eight
year term with a floating interest rate at .50% below prime.&nbsp; We simultaneously
entered into an interest rate swap transaction with Wells Fargo Bank for the
full $1,100,000 with a fixed interest rate of 7.77% for the full eight year
term coinciding with the note payable (see note 5 in item I. above). As
discussed above we are in default of certain loan covenants as of September 30,
2009 on this Wells Fargo note, however we are not currently, and have never
been, in payment default under the note.</p>

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<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>On March 1,
2008, we acquired the assets of two restaurants from an existing franchisee for
a total purchase price of $1,330,000, including the land, site improvements,
building and equipment for one restaurant and site improvements, building and
equipment on one restaurant.&nbsp; The purchase price was funded primarily from cash
on hand of $272,000 and $849,000 in net proceeds from a simultaneous sale-leaseback
transaction to a third party investor involving the land, building and
improvements of one of the restaurants acquired.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>As additional
consideration, notes receivable from the franchisee of $250,000 were forgiven,
and a deferred gain of $26,000 was written off. The deferred gain was related
to a prior sale to the franchisee of one of the restaurants acquired. We did
not record a gain or loss related to this acquisition. The financial results of
the two restaurants have been included in our financial results from the
acquisition date forward.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The
acquisition of the two restaurants was accounted for using the purchase method
as defined in FASB ASC 805-10, <i>Business Combinations</i>. The purchase price
was allocated as follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:41.4pt;border-collapse:collapse'>
 <tr>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=Style84 style='text-align:justify'>Current assets
  net of current liabilities</p>
  </td>
  <td width=138 valign=top style='width:103.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=Style84 style='margin-top:0in;margin-right:17.1pt;margin-bottom:
  0in;margin-left:12.6pt;margin-bottom:.0001pt'>$&nbsp;&nbsp;  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=Style84 style='text-align:justify'>Property and
  equipment&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=138 valign=top style='width:103.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=Style84 style='margin-top:0in;margin-right:17.1pt;margin-bottom:
  0in;margin-left:12.6pt;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>1,326,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=Style84 style='text-align:justify'>Total purchase
  price</p>
  </td>
  <td width=138 valign=top style='width:103.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=Style84 style='margin-top:0in;margin-right:17.1pt;margin-bottom:
  0in;margin-left:12.6pt;margin-bottom:.0001pt'>$&nbsp;&nbsp; &nbsp;&nbsp; <u>1,330,000</u></p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The sale-leaseback transaction was entered into
simultaneously with the acquisition and involved selling the land, building and
improvements of one of the acquired restaurants for net proceeds of $849,000.
The sale-leaseback was the funding vehicle for the purchase of the two
restaurants and was not used to raise cash for the Company or increase our
liquidity. The assets sold in the sale-leaseback transaction were not recorded
in our financial statements as the long term lease entered into does not meet
any of the criteria for a capital lease and therefore qualifies as an operating
lease, as defined in FASB ASC 840-10, <i>Leases</i>. After the sale-leaseback
transaction was accounted for, it resulted in $476,000 in fixed assets and
$14,000 in current assets recorded on our financial statements. We believe the
$476,000 represents the fair value of the net assets acquired (after completion
of the simultaneous sale-leaseback transaction) consisting of furniture,
fixtures and equipment in two restaurants and the site improvements and
building in one restaurant.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>In July 2008, we entered into a $2,500,000
promissory note with an unrelated third party (PFGI II, LLC) and amended that
note on April 20, 2009 extending the maturity to July 10, 2010 and again on
December 14, 2009 extending the maturity to December 31, 2012.&nbsp; The promissory
note originally constituted a revolving line-of-credit for the development of
new restaurants which was advanced and repaid on a monthly basis from time to
time.&nbsp; The promissory note now constitutes a term loan with monthly payments of
principal and interest.&nbsp; The loan is secured by separate leasehold deeds of
trust and security agreements related to six company-owned restaurants and
first deeds of trust on two real properties funded by the line of credit. The
total outstanding balance on the line of credit was $2,500,000 at September 30,
2009.&nbsp; Of the $2,500,000 outstanding balance, $1,595,000 is related to the
construction of one company-owned restaurant in Firestone, Colorado that opened
in October 2008. The fully developed restaurant is currently being marketed in
the sale-leaseback market.&nbsp; The remaining balance is related to the purchase, entitlement
and other development fees on a parcel of land in Aurora, Colorado that will be
either developed into a company-owned restaurant, leased or sold.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>On April 20,
2009 as reported on form 8-K, Good Times Restaurants Inc. (the &quot;Company&quot;) and
Good Times Drive Thru Inc. (&quot;GTDT&quot;), a wholly owned subsidiary of the Company,
entered into a loan agreement with Golden Bridge, LLC (&quot;Golden Bridge&quot;),
pursuant to which Golden Bridge made a loan of $185,000 (the &quot;Golden Bridge Loan&quot;)
to GTDT to be used for restaurant marketing and other working capital costs.&nbsp;
Eric Reinhard, Ron Goodson, David Grissen, Richard Stark, and Alan Teran, who
are all members of the Company's Board of Directors and stockholders of the
Company, are the sole members of Golden Bridge.&nbsp; Eric Reinhard is the sole
manager of Golden Bridge.&nbsp; The Company's and GTDT's obtaining of the Golden
Bridge Loan and related transactions with Golden Bridge were duly approved in
advance by the Company's Board of Directors by the affirmative vote of members
thereof who did not have an interest in the transaction.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The Golden
Bridge Loan is evidenced by a promissory note dated April 20, 2009 (the &quot;Golden
Bridge Note&quot;) made by the Company and GTDT, as co-makers, and bears interest at
a rate of 10% per annum on the unpaid principal balance.&nbsp; The Golden Bridge
Note provides for monthly interest payments and will mature and be due and
payable in full on July 10, 2010.&nbsp; The commitment fee for the Golden Bridge
Loan is $3,700.&nbsp; The Golden Bridge Loan Agreement contains customary event of
default provisions and a cross-default provision with respect to the loan
agreement for the PFGI II, LLC loan (as described above).</p>

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<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The Golden
Bridge Loan Agreement and Note are subject to the terms of an Intercreditor Agreement
dated April 20, 2009 (the &quot;Intercreditor Agreement&quot;), among the Company, GTDT,
Golden Bridge and PFGI II, LLC (&quot;PFGI&quot;).&nbsp; As previously reported by the
Company, GTDT currently has a $2,500,000 revolving line of credit with PFGI
(the &quot;PFGI Loan&quot;), which was scheduled to mature on July 10, 2009, under which
$2,500,000 was outstanding as of April 20, 2009.&nbsp; Under the Intercreditor
Agreement, PFGI and Golden Bridge agreed that, upon any payments of principal
or interest on the Golden Bridge Loan or the PFGI Loan by GTDT, PFGI and Golden
Bridge shall each be entitled to its pro rata share of such payments in the
amount of 93.1% for PFGI and 6.9% for Golden Bridge.&nbsp; The Intercreditor
Agreement also provides that GTDT and the Company may prepay the Golden Bridge
Loan in whole or in part with the prior consent of PFGI, and that any other
indebtedness of the Company or GTDT to PFGI or Golden Bridge shall be
subordinate in payment and lien priority to the Golden Bridge Loan and the PFGI
Loan to the extent of the proceeds of the collateral.&nbsp; Under the Intercreditor
Agreement, all money received from any foreclosure on the collateral securing
the PFGI Loan shall be applied to PFGI and Golden Bridge for their expenses
related to such event and then on a pari passu basis to PFGI and Golden Bridge
in accordance with their respective pro rata shares.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Prior to the
closing of the Golden Bridge Loan, borrowings under the PFGI Loan were secured
by GTDT's leasehold estates and business assets with respect to certain of
GTDT's restaurants located in Boulder, Adams, Jefferson and Larimer counties in
Colorado and first deeds of trust on real property in Arapahoe and Weld
counties in Colorado developed under the PFGI Loan.&nbsp; In connection with PFGI's
entry into the Intercreditor Agreement, GTDT and the Company entered into a
first amendment to the amended and restated promissory note dated April 20,
2009 (the &quot;PFGI Note Amendment&quot;), which extended the maturity date of the PFGI
Loan until July 10, 2010 and eliminated a loan balance threshold for release of
the collateral securing the PFGI Loan.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In connection
with the Golden Bridge Loan, the Company issued a three-year warrant dated
April 20, 2009 (the &quot;Warrant&quot;) to Golden Bridge which provides that Golden
Bridge may at any time from April 20, 2009 until April 20, 2012 purchase up to
92,500 shares of the Company's common stock (the &quot;Warrant Shares&quot;) at an
exercise price of $1.15 per share.&nbsp; The number of Warrant Shares and the
exercise price are subject to customary antidilution adjustments upon the occurrence
of any stock dividends, stock splits, reverse stock splits, recapitalizations,
reclassifications, stock combinations or similar events. The fair value of the Warrant
issued was determined to be $42,000 with the following assumptions: 1) risk
free interest rate of 1.27%, 2) an expected life of 3 years, and 3) an expected
dividend yield of zero. The fair value of $42,000 was charged to the note
discount and credited to Additional Paid in Capital. The note discount will be
amortized over fourteen months and charged to interest expense.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Additional commitments for the
development of new restaurants in fiscal 2010 will depend on the Company's
sales trends, cash generated from operations and our access to capital including
in the sale-leaseback markets.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><b>Cash Flows:</b> Net cash used
in operating activities was $595,000 for fiscal 2009 compared to cash provided
by operating activities of $619,000 in fiscal 2008.&nbsp; The decreased net cash used
in operating activities for fiscal 2009 was the result of net loss of $1,646,000
and non-cash reconciling items totaling $1,051,000 (comprised principally of
depreciation and amortization of $1,262,000, minority interest income of $54,000,
$77,000 of stock option compensation expense, $87,000 related to an unrealized
loss in regards to our interest rate swap agreement, a $273,000 decrease in our
trade accounts payable and net decreases in operating assets and liabilities
totaling $48,000).</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Net cash used in investing activities in fiscal
2009 was $284,000 compared to $2,787,000 in fiscal 2008.&nbsp; The fiscal 2009
activity reflects payments for the purchase of property and equipment of $284,000
(of which $186,000 was related to a new company-owned restaurant that opened in
October 2008), payments received on loans to franchisees of $31,000 and $31,000
for loans made to franchisees. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Net cash provided by financing activities in
fiscal 2009 was $280,000 compared to $1,117,000 in fiscal 2008.&nbsp; The fiscal 2009
activity includes principal payments on notes payable and long term debt of $123,000,
borrowings on the revolving line-of-credit and other notes payable of $505,000
and distributions to minority interests in partnerships of $102,000.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Contingencies and Off-Balance Sheet
Arrangements: </b>We
remain contingently liable on various land leases underlying restaurants that
were previously sold to franchisees.&nbsp; We have never experienced any losses
related to these contingent lease liabilities, however if a franchisee defaults
on the payments under the leases, we would be liable for the lease payments as
the assignor or sublessor of the lease.&nbsp; Currently we have not been notified
nor are we aware of any leases in default under which we are contingently
liable, however there can be no assurance that there will not be in the future,
which could have a material adverse effect on our future operating results.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Critical Accounting Policies and
Estimates</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We follow accounting standards set by the
Financial Accounting Standards Board, commonly referred to as the &quot;FASB.&quot; The
FASB sets generally accepted accounting principles (GAAP) that we follow to
ensure we consistently report our financial condition, results of operations, and
cash flows. Over the years, the FASB and other designated GAAP-setting bodies,
have issued standards in the form of FASB Statements, Interpretations, FASB
Staff Positions, EITF consensuses, AICPA Statements of Position, etc. </p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The FASB recognized the complexity of its
standard-setting process and embarked on a revised process in 2004 that
culminated in the release on July 1, 2009, of the FASB Accounting Standards Codification,&trade;
sometimes referred to as the Codification or ASC. To the Company, this means
instead of following the Statements, Interpretations, Staff Positions, etc., we
will follow the guidance in Topics as defined in the ASC. The Codification does
not change how the Company accounts for its transactions or the nature of
related disclosures made. However, when referring to guidance issued by the
FASB, the Company refers to topics in the ASC rather than Statements, etc. The
above change was made effective by the FASB for periods ending on or after
September 15, 2009. We have updated references to GAAP in this Annual Report on
Form 10-K to reflect the guidance in the Codification. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Notes Receivable:</b> We evaluate
the collectability of our note receivables from franchisees annually.&nbsp;
Historically, such amounts have been fully repaid and we believe the collateral
and guarantees are adequate to provide for future payments; therefore no
allowances for amounts estimated to be uncollectable have been provided.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Impairment of Long-Lived Assets:</b> We review our
long-lived assets for impairment in accordance with the guidance of FASB ASC
360-10, <i>Property, Plant, and Equipment</i>, including land, property and
equipment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. Recoverability of assets to
be held and used is measured by a comparison of the capitalized costs of the
assets to the future undiscounted net cash flows expected to be generated by
the assets and the expected cash flows are based on recent historical cash
flows at the restaurant level (the lowest level that cash flows can be
determined).</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>An analysis
was performed on a restaurant by restaurant basis at September 30, 2009.
Assumptions used in preparing expected cash flows were as follows: </p>

<p class=Style84 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.75in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales
projections are as follows: Fiscal 2010 sales are projected flat with respect
to fiscal 2009, for fiscal years 2011 to 2024 we have used annual increases of
2% to 3%. We believe the 2% to 3% increase in the years beyond 2010 is a
reasonable expectation of growth and that it would be unreasonable to expect
less growth in our sales. These increases include menu price increases in
addition to any real growth. Historically our weighted menu prices have
increased 1.5% to 6% per year.</p>

<p class=Style84 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.75in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our
variable and semi-variable restaurant operating costs are projected to increase
proportionately with the sales increases as well as increasing an additional
1.5% per year consistent with inflation.</p>

<p class=Style84 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.75in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our
other fixed restaurant operating costs are projected to increase 1.5% to 2% per
year.</p>

<p class=Style84 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.75in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Food
and packaging costs are projected to remain flat in relation to our current
fiscal 2009 food and packaging costs as a percentage of sales.</p>

<p class=Style84 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.75in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Salvage
value has been estimated on a restaurant by restaurant basis considering each
restaurant's particular equipment package and building size.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Given the
results of our impairment analysis at September 30, 2009 there are no
restaurants which have potential impairment as their projected undiscounted
cash flows show recoverability of their asset values.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Our impairment
analysis included a sensitivity analysis with regard to the cash flow
projections that determine the recoverability of each restaurant's assets. The
results indicate that even with a 20% decline in our projected cash flows we
would still not have any potential impairment issues.&nbsp; We have experienced
higher than normal food and packaging costs as a percentage of restaurant sales
in recent years and we do not believe these costs will remain at these levels
in future years. However for purposes of our cash flow projections in the asset
impairment analysis we have assumed our food and packaging costs will remain at
these higher levels.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Each time we
conduct an impairment analysis in the future we will compare actual results to
our projections and assumptions, and to the extent our actual results do not
meet expectations, we will revise our assumptions and this could result in
impairment charges being recognized.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>All of the
judgments and assumptions made in preparing the cash flow projections are
consistent with our other financial statement calculations and disclosures. The
assumptions used in the cash flow projections are consistent with other
forward-looking information prepared by the Company, such as those used for
internal budgets, discussions with third parties, and/or reporting to
management or the Board of Directors.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>To date we have not written down any assets due to
impairment, however projecting the cash flows for the impairment analysis
involves significant estimates with regard to the performance of each
restaurant, and it is reasonably possible that the estimates of cash flows may
change in the near term resulting in the need to write down operating assets to
fair value. If the assets are determined to be impaired, the amount of
impairment recognized is the amount by which the carrying amount of the assets
exceeds their fair value. Fair value would be determined using forecasted cash
flows discounted using an estimated average cost of capital and the impairment
charge would be recognized in income from operations.</p>

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<p class=MsoNormal style='text-align:justify;text-autospace:none'><b>Income Taxes: </b>We account for
income taxes in accordance with FASB ASC 740, <i>Income Taxes</i>. FASB ASC 740
prescribes the use of the liability method whereby deferred tax asset and
liability account
balances
are determined based on differences between the financial reporting and tax
bases of assets
and
liabilities and are measured using the enacted tax rates and laws that will be
in effect when the
differences
are expected to reverse. The Company provides a valuation allowance, if
necessary, to
reduce
deferred tax assets to their estimated realizable value. The deferred
tax assets are reviewed periodically for recoverability, and valuation
allowances are adjusted as necessary.&nbsp; We believe it is more likely than not
that the recorded deferred tax assets will be realized.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Variable Interest Entities</b>: We analyze
any potential Variable Interest or Special-Purpose Entities in accordance with
the guidance of
FASB ASC 810-10, <i>Consolidation of Variable Interest and Special-Purpose
Entities. </i>Once an entity is determined to be a Variable Interest Entity
(VIE), the party with the controlling financial interest, the primary
beneficiary, is required to consolidate it.&nbsp; We have several franchisees with
notes payable to the Company and after analysis we have determined that, while
these franchisees are VIE's as defined by FASB ASC 810-10, we are not the
primary beneficiary of the entities, and therefore they are not required to be
consolidated.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Fair Value of Financial Instruments</b>: We adopted
the provisions of FASB ASC 820, <i>Fair Value Measurements and Disclosures</i>,
effective October 1, 2008. FASB ASC 820 defines fair value, establishes a
framework for measuring fair value under GAAP and enhances disclosure about
fair value measurements. The adoption of this guidance did not have a material
impact on either our financial position or results of operations.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>New Accounting Pronouncements:</b> In June 2008,
the FASB issued FASB ASC 815-40, <i>Derivatives and Hedging</i>, that provides
guidance on how to determine if certain instruments (or embedded features) are
considered indexed to a company's own stock, including instruments similar to
warrants to purchase the company's stock. FASB ASC 815-40 requires companies to
use a two-step approach to evaluate an instrument's contingent exercise
provisions and settlement provisions in determining whether the instrument is
considered to be indexed to its own stock and therefore exempt from the
application of FASB ASC 815 Although FASB ASC 815-40 is effective for fiscal
years beginning after December 15, 2008, any outstanding instrument at the date
of adoption will require a retrospective application of the accounting through
a cumulative effect adjustment to retained earnings upon adoption. The Company
does not expect the adoption of this guidance to have a material impact on
either its financial position or results of operations.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>In December 2007, the FASB issued FASB ASC 805, <i>Business
Combinations</i>, which establishes principles and requirements for how an
acquiring entity in a business combination recognizes and measures the assets
acquired and liabilities assumed in the transaction; establishes the
acquisition-date fair value as the measurement objective for all assets
acquired and liabilities assumed; and sets the disclosure requirements
regarding the information needed to evaluate and understand the nature and
financial effect of the business combination.&nbsp; This accounting pronouncement is
effective for fiscal years beginning after December 15, 2008, which will
effective for our fiscal year beginning October 1, 2009.&nbsp; The requirements of
FAS 141 will only impact future business combination transactions into which we
may enter.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>In December 2007, the FASB issued FASB ASC 810-10,
<i>Consolidation</i>, which prescribes the accounting by a parent company for
minority interests held by other parties in a subsidiary of the parent
company.&nbsp; FAS ASC 810-10 is effective for fiscal years beginning after December
15, 2008, which will be effective for our fiscal year beginning October 1,
2009.&nbsp; We are currently evaluating the requirements of FAS ASC 810-10 and have
not yet determined the impact on our financial statements.</p>

<p class=Level1 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;text-indent:0in'><b>Subsequent Events:</b> In December,
2009 the Company entered into an agreement to amend the PFGI II Loan.&nbsp; The
maturity date was extended to December 31, 2012, the interest rate was
increased to 8.65% and monthly payments of principal and interest will be
payable beginning January 31, 2010, based upon a 25 year amortization prior to
maturity.&nbsp; In connection with the agreement the Company also agreed to issue
$125,000 of warrants exercisable at the average market price during the twenty
days prior to January 2, 2010.&nbsp; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Subsequent events have been evaluated through
December 28, 2009, the date the consolidated financial statements were
available to be issued.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Pre-approval of non-audit services:</b> On October
26, 2009, the Audit Committee of the Board of Directors of Good Times
Restaurants Inc. approved in advance certain non-audit services to be performed
by Hein &amp; Associates, Good Times' independent auditor.&nbsp; These non-audit
services are to consist primarily of corporate income tax compliance services.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Item 7A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Quantitative and
Qualitative Disclosures about Market Risk.</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Not applicable.</p>

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<p class=MsoNormal style='margin-bottom:.5in;text-align:justify'><b>Item 8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial
Statements and Supplementary Data.</b></p>

<p class=MsoNormal align=center style='text-align:center'>INDEX TO
FINANCIAL STATEMENTS</p>







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  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'><u>PAGE</u></p>
  </td>
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  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=588 valign=top style='width:441.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Report
  of Independent Registered Public Accounting Firm</p>
  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>F-2</p>
  </td>
 </tr>
 <tr>
  <td width=588 valign=top style='width:441.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=588 valign=top style='width:441.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Consolidated
  Balance Sheet - September 30, 2009 and 2008</p>
  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>F-3</p>
  </td>
 </tr>
 <tr>
  <td width=588 valign=top style='width:441.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=588 valign=top style='width:441.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Consolidated
  Statements of Operations - For the Years Ended September 30, 2009 and 2008</p>
  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>F-4</p>
  </td>
 </tr>
 <tr>
  <td width=588 valign=top style='width:441.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
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  <td width=588 valign=top style='width:441.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Consolidated
  Statements of Stockholders' Equity - For the Period from October 1, 2007</p>
  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
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  <td width=588 valign=top style='width:441.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>through
  September 30, 2009</p>
  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>F-5</p>
  </td>
 </tr>
 <tr>
  <td width=588 valign=top style='width:441.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=588 valign=top style='width:441.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Consolidated
  Statements of Cash Flows - For the Years Ended September 30, 2009 and 2008</p>
  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>F-6</p>
  </td>
 </tr>
 <tr>
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  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=588 valign=top style='width:441.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Notes
  to Consolidated Financial Statements</p>
  </td>
  <td width=65 valign=top style='width:48.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>F-7</p>
  </td>
 </tr>
</table>



<p class=MsoFooter align=center style='text-align:center'>F-1</p>



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<p class=MsoNormal align=center style='margin-top:12.0pt;text-align:center'>REPORT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</p>









<p class=MsoNormal style='text-align:justify'>To the Stockholders and</p>

<p class=MsoNormal style='text-align:justify'>Board of Directors</p>

<p class=MsoNormal style='text-align:justify'>Good Times Restaurants, Inc.</p>

<p class=MsoNormal style='text-align:justify'>Golden, Colorado</p>





<p class=MsoNormal style='text-align:justify'>We have audited the accompanying
consolidated balance sheet of Good Times Restaurants, Inc. and Subsidiary as of
September 30, 2009 and 2008, and the related consolidated statements of
operations, stockholders' equity, comprehensive income and cash flows for the
years ended September 30, 2009 and 2008. These consolidated financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audits. </p>



<p class=MsoNormal style='text-align:justify'>We conducted our audits in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion. </p>



<p class=MsoNormal style='text-align:justify'>In our opinion, the consolidated
financial statements referred to above present fairly, in all material
respects, the financial position of Good Times Restaurants, Inc. and Subsidiary
as of September 30, 2009, and the results of their operations and their cash
flows for the years ended September 30, 2009 and 2008, in conformity with U.S.
Generally Accepted Accounting Principles. </p>



<p class=MsoNormal style='text-align:justify'>The accompanying financial statements
have been prepared assuming that the Company will continue as a going concern.&nbsp;
As discussed in Note 2 to the financial statements, the Company remains out of
compliance with certain debt covenants, and has suffered recurring losses from
operations.&nbsp; These facts raise substantial doubt about the Company's ability to
continue as a going concern.&nbsp; Management's plans in regard to these matters,
including its plans to pursue additional sources of funding, are also described
in Note 2.&nbsp; The financial statements do not include any adjustments that might
result from the outcome of this uncertainty.</p>



<p class=MsoNormal style='text-align:justify'>We were not engaged to examine
management's assertion about the effectiveness of Good Times Restaurants, Inc's
internal control over financial reporting as of September 30, 2009 included in
the accompanying Management's Annual Report on Internal Control Over Financial
Reporting included in Item 9A, and, accordingly, we do not express an opinion
thereon.</p>









<p class=MsoNormal style='text-align:justify'>HEIN &amp; ASSOCIATES LLP </p>



<p class=MsoNormal style='text-align:justify'>Denver, Colorado</p>

<p class=MsoNormal style='text-align:justify'>December 28, 2009</p>























<p class=MsoFooter align=center style='text-align:center'>F-2</p>



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<p class=MsoFooter align=center style='text-align:center'>F-3</p>



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<p class=MsoNormal align=center style='text-align:center'>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARY</p>

<p class=MsoNormal align=center style='text-align:center'>CONSOLIDATED
BALANCE SHEET</p>

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 style='margin-left:.9pt;border-collapse:collapse'>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=390><p class='MsoNormal'>&nbsp;</td>
  <td width=270 colspan=3 valign=top style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>September 30,</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:12.1pt;margin-bottom:.0001pt;text-align:center'><u>2009</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:12.1pt;margin-bottom:.0001pt;text-align:center'><u>2008</u></p>
  </td>
 </tr>
 <tr style='height:9.0pt'>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:9.0pt'>
  <p class=MsoNormal><u>ASSETS</u></p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:9.0pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:9.0pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:9.0pt'>

  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Current Assets:</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash
  and cash equivalents</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>$&nbsp; 815,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>$&nbsp;&nbsp;&nbsp;&nbsp; 1,414,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables,
  net of allowance for doubtful</p>
  <p class=MsoNormal style='margin-left:18.85pt'>accounts of $0</p>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>122,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>160,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid
  expenses and other</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>32,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>79,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>220,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>240,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes
  receivable</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'><u>&nbsp;</u></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  current assets</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>1,225,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>1,928,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Property and Equipment:</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land
  and building</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>6,596,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>6,566,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold
  improvements</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>4,107,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>4,017,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixtures
  and equipment</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8,438,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'><u>&nbsp;</u></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8,303,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>19,141,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>18,886,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin-left:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less accumulated
  depreciation and amortization</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (11,853,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-left:12.6pt;text-align:
  right'><u>(10,602,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>7,288,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>8,284,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;</h3>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:.05in;margin-bottom:.0001pt;text-align:right;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:12.6pt;margin-bottom:.0001pt;text-align:right;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets held for sale</h3>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:.05in;margin-bottom:.0001pt;text-align:right;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,595,000</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>1,574,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:6.0pt'>Other Assets:</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:.05in;margin-bottom:.0001pt;text-align:right;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:12.6pt;margin-bottom:.0001pt;text-align:right;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes
  receivable, net of current portion</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>82,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>83,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits
  and other assets</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 64,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 51,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 146,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 134,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:6.0pt'>Total Assets</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10,254,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp; 11,920,000</u></p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:8.1pt;margin-bottom:
6.0pt;margin-left:0in'><u>LIABILITIES
 AND STOCKHOLDERS' EQUITY</u></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:.9pt;border-collapse:collapse'>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText>Current Liabilities:</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin-left:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current maturities of
  long-term debt, net of discount of $27,000 and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $0, respectively</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,027,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  .05in;margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:
  right'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,304,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts
  payable</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>355,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>628,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred
  income</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>113,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>139,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other
  accrued liabilities</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:7.65pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 930,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 939,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  current liabilities</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>2,425,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>4,010,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin-top:6.0pt;margin-right:0in;margin-bottom:0in;margin-left:
  0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Long-Term Liabilities:</h3>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:12.6pt;margin-bottom:.0001pt;text-align:right;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin-left:17.55pt;text-indent:-17.55pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt,
  net of current portion and net of discount of $35,000 and $0, respectively</p>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>2,478,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  .05in;margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:
  right'>846,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred
  liabilities</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:7.65pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 973,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,071,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  long-term liabilities</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>3,451,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>1,917,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:12.6pt;margin-bottom:
  0in;margin-left:0in;margin-bottom:.0001pt;page-break-after:avoid'>Minority Interests in Partnerships</p>
  </td>
  <td width=132 style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:8.1pt;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
  page-break-after:avoid'>428,000</p>
  </td>
  <td width=18 style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right;
  page-break-after:avoid'>584,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Commitments and Contingencies   (Notes 4 and 6)</h3>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Stockholders' Equity:</h3>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Preferred stock, $.01 par value;</h3>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,000,000 shares authorized, none issued</h3>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and outstanding as of September 30, 2008
  and 2009</h3>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-left:.05in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Common stock, $.001 par value; 50,000,000 shares</h3>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Authorized, 3,898,559 shares issued and</h3>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; outstanding as of September 30, 2008 and
  2009</h3>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>4,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>4,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated
  other comprehensive loss</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-left:.05in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>(68,000)</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin-left:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital
  contributed in excess of par value</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:
  right'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17,751,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  .05in;margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:
  right'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17,632,000</p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin-left:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated
  deficit</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  .05in;margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:
  right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (13,805,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  .05in;margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:
  right'><u>&nbsp;&nbsp;&nbsp; (12,159,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  stockholders' equity</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,950,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,409,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=390 valign=top style='width:292.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Total Liabilities and Stockholders' Equity</h3>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10,254,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,920,000</u></p>
  </td>
 </tr>
</table>



<h3>&nbsp; </h3>



<p class=MsoFooter align=center style='text-align:center'><b><i>See
accompanying notes to these consolidated financial statements.</i></b></p>

<p class=MsoFooter align=center style='text-align:center'>F-4</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal align=center style='text-align:center'>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARY</p>

<p class=MsoNormal align=center style='text-align:center'>CONSOLIDATED
STATEMENTS OF OPERATIONS</p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=599
 style='margin-left:51.45pt;border-collapse:collapse'>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=317 colspan=3 valign=top style='width:238.05pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center'>For the Years Ended</p>
  <p class=MsoNormal align=center style='text-align:center'>September 30,</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=top style='width:116.55pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:38.55pt;margin-bottom:.0001pt;text-align:center'>2009</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=top style='width:1.5in;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:38.55pt;margin-bottom:.0001pt;text-align:center'>2008</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal>Net Revenues:</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 style='width:116.55pt;border:none;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=18 style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Restaurant sales</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>$&nbsp;&nbsp; 23,213,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>$&nbsp;&nbsp; 25,244,000</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Area development and franchise fees</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>13,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Franchise royalties </p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 523,000</u></p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; 638,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
  margin-left:33.8pt'>Total
  net revenues</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:6.0pt;margin-left:16.05pt;text-align:right'>23,749,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:6.0pt;margin-left:16.05pt;text-align:right'>25,882,000</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal>Restaurant Operating Costs:</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Food and packaging costs</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>7,816,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>8,002,000</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Payroll and other employee benefit
  costs</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>8,138,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>8,780,000</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Restaurant occupancy costs</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>3,756,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>3,714,000</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Accretion of deferred rent</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>1,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>33,000</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Other restaurant operating costs</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>1,120,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>1,134,000</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>New store pre-opening costs</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>15,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>38,000</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Depreciation and amortization</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; 1,262,000</u></p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal><u>&nbsp;</u></p>
  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; 1,283,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
  margin-left:33.8pt'>Total
  restaurant operating costs</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:6.0pt;margin-left:16.05pt;text-align:right'><u>&nbsp;&nbsp; 22,108,000</u></p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:6.0pt;margin-left:16.05pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; 22,984,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>General and administrative costs</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>1,568,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>2,042,000</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Advertising costs</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>1,292,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>1,525,000</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Franchise costs</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>161,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>312,000</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
  margin-left:25.5pt;text-indent:-9.3pt'>Gain on disposal of restaurants and
  equipment</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:6.0pt;margin-left:16.05pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; (28,000</u>)</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-bottom:6.0pt'><u>&nbsp;</u></p>
  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:6.0pt;margin-left:16.05pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; (35,000</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-bottom:3.0pt'>Loss From
  Operations</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:3.0pt;margin-left:16.05pt;text-align:right'>(1,352,000)</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:3.0pt;margin-left:16.05pt;text-align:right'>&nbsp;&nbsp;&nbsp;&nbsp; (946,000)</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal>Other Income (Expenses):</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Interest income</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>16,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>67,000</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Interest expense</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>(277,000)</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>(80,000)</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Unrealized loss on interest rate
  swap</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>(87,000)</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Minority interest in income of
  partnerships</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; 54,000</u></p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; (113,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:3.0pt;
  margin-left:33.8pt'>Total
  other expenses, net</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:3.0pt;margin-left:16.05pt;text-align:right'>(294,000)</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:3.0pt;margin-left:16.05pt;text-align:right'>(126,000)</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:3.0pt;
  margin-left:16.2pt;text-indent:-16.2pt'>Net Loss before Income Taxes</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:3.0pt;margin-left:16.05pt;text-align:right'><u>(1,646,000)</u></p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:3.0pt;margin-left:16.05pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; (1,072,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-bottom:3.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Income Tax Expense</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:3.0pt;margin-left:16.05pt;text-align:right'>-</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:3.0pt;margin-left:16.05pt;text-align:right'>4,000</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-bottom:3.0pt'>Net Loss</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:3.0pt;margin-left:16.05pt;text-align:right'><u>($1,646,000)</u></p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:3.0pt;margin-left:16.05pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; ($1,076,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-bottom:3.0pt'>Basic and Diluted Loss per Share</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:3.0pt;margin-left:16.05pt;text-align:right'>($0.42)</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:3.0pt;margin-left:16.05pt;text-align:right'>($0.28)</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt;text-indent:-16.2pt'>Weighted Average Common Shares Outstanding:</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:.45in;text-indent:-16.2pt'>Basic</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>3,898,559</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>3,886,730</p>
  </td>
 </tr>
 <tr>
  <td width=276 valign=top style='width:207.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:.45in;text-indent:-16.2pt'>Diluted</p>
  </td>
  <td width=6 style='width:4.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=155 valign=bottom style='width:116.55pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>n/a</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:16.5pt;
  margin-bottom:0in;margin-left:16.05pt;margin-bottom:.0001pt;text-align:right'>n/a</p>
  </td>
 </tr>
</table>

<p class=MsoFooter align=center style='text-align:center'><b><i>See
accompanying notes to these consolidated financial statements.</i></b></p>

<p class=MsoFooter align=center style='text-align:center'>F-5</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>





<br
clear=all style='page-break-before:always'>












<p class=MsoNormal align=center style='text-align:center'>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARY</p>

<p class=MsoNormal align=center style='text-align:center'>CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' EQUITY</p>

<p class=MsoNormal align=center style='margin-bottom:6.0pt;text-align:center'>FOR THE PERIOD
FROM OCTOBER 1, 2007 THROUGH SEPTEMBER 30, 2009</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=930
 style='margin-left:-26.5pt;border-collapse:collapse'>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;border:none;border-bottom:solid windowtext 1.5pt;
  padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=center style='text-align:center'>Preferred
  Stock</p>
  </td>
  <td width=144 colspan=2 valign=bottom style='width:1.5in;border:none;
  border-bottom:solid windowtext 1.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=center style='text-align:center'>Common Stock</p>
  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=center style='text-align:center'>Issued</p>
  <p class=MsoNormal align=center style='text-align:center'>Shares</p>
  </td>
  <td width=72 valign=bottom style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=center style='text-align:center'>Par</p>
  <p class=MsoNormal align=center style='text-align:center'>Value</p>
  </td>
  <td width=72 valign=bottom style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=center style='text-align:center'>Issued</p>
  <p class=MsoNormal align=center style='text-align:center'>Shares</p>
  </td>
  <td width=66 valign=bottom style='width:49.5pt;border-top:solid windowtext 1.5pt;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
  padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=center style='margin-right:3.0pt;text-align:center'>Par</p>
  <p class=MsoNormal align=center style='margin-right:3.0pt;text-align:center'>Value</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=center style='text-align:center'>Capital
  Contributed in Excess of Par Value</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=center style='text-align:center'>Accumulated
  Deficit</p>
  </td>
  <td width=96 valign=bottom style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=center style='margin-right:4.0pt;text-align:center'>Accumulated
  Other Comprehensive Loss</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=center style='text-align:center'>Comprehensive
  Income</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=center style='text-align:center'>Total</p>
  </td>
 </tr>
 <tr style='height:15.65pt'>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt;
  height:15.65pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;border:none;padding:0in .5pt 0in .5pt;
  height:15.65pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;border:none;padding:0in .5pt 0in .5pt;
  height:15.65pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;border:none;padding:0in .5pt 0in .5pt;
  height:15.65pt'>

  </td>
  <td width=66 valign=bottom style='width:49.5pt;border:none;padding:0in .5pt 0in .5pt;
  height:15.65pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;border:none;padding:0in .5pt 0in .5pt;
  height:15.65pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;border:none;padding:0in .5pt 0in .5pt;
  height:15.65pt'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;border:none;padding:0in .5pt 0in .5pt;
  height:15.65pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;border:none;padding:0in .5pt 0in .5pt;
  height:15.65pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;border:none;padding:0in .5pt 0in .5pt;
  height:15.65pt'>

  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal style='margin-left:13.0pt;text-indent:-13.0pt'>Balances,
  October 1, 2007</p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.5pt;
  margin-bottom:0in;margin-left:3.5pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.0pt;
  margin-bottom:0in;margin-left:13.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</u></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'><u>3,866,896</u></p>
  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:3.0pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp; 4,000</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'><u>$17,438,000</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:5.5pt;margin-bottom:.0001pt;text-align:right'><u>$(11,083,000</u>)</p>
  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp; (26,000)</u></p>
  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.5pt;
  margin-bottom:0in;margin-left:8.5pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,000</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:4.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp; 6,333,000</u></p>
  </td>
 </tr>
 <tr style='height:1.0pt'>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt;
  height:1.0pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt;
  height:1.0pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt;
  height:1.0pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt;
  height:1.0pt'>

  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt;
  height:1.0pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt;
  height:1.0pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt;
  height:1.0pt'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt;
  height:1.0pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt;
  height:1.0pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt;
  height:1.0pt'>

  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal style='margin-left:22.5pt;text-indent:-9.0pt'>Stock option
  compensation cost</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'>90,000</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:4.0pt;margin-bottom:.0001pt;text-align:right'>90,000</p>
  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal style='margin-left:22.5pt;text-indent:-9.0pt'>Stock issued
  for exercised stock options</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'>31,663</p>
  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'>104,000</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:4.0pt;margin-bottom:.0001pt;text-align:right'>104,000</p>
  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal style='margin-left:22.5pt;text-indent:-9.0pt'>Comprehensive
  Loss</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal style='margin-left:22.5pt;text-indent:-9.0pt'><a
  name="_Hlk184521674">&nbsp;&nbsp;&nbsp; Net
  Income</a></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:5.5pt;margin-bottom:.0001pt;text-align:right'>(1,076,000)</p>
  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.5pt;
  margin-bottom:0in;margin-left:8.5pt;margin-bottom:.0001pt;text-align:right'>(1,076,000)</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:4.0pt;margin-bottom:.0001pt;text-align:right'>(1,076,000)</p>
  </td>
 </tr>
 <tr style='height:15.75pt'>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt;
  height:15.75pt'>
  <p class=MsoNormal style='margin-left:22.5pt;text-indent:-9.0pt'>&nbsp;&nbsp;&nbsp; Deferred
  hedging losses</p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt;
  height:15.75pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt;
  height:15.75pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt;
  height:15.75pt'>

  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt;
  height:15.75pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt;
  height:15.75pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt;
  height:15.75pt'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt;
  height:15.75pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'>(42,000)</p>
  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt;
  height:15.75pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt;
  height:15.75pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:4.0pt;margin-bottom:.0001pt;text-align:right'>(42,000)</p>
  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive
  loss</p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.5pt;
  margin-bottom:0in;margin-left:3.5pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.0pt;
  margin-bottom:0in;margin-left:13.0pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:7.5pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:3.0pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:5.5pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.5pt;
  margin-bottom:0in;margin-left:8.5pt;margin-bottom:.0001pt;text-align:right'><u>(42,000)</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:4.0pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal>Balances, September&nbsp;30, 2008</p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.5pt;
  margin-bottom:0in;margin-left:3.5pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.0pt;
  margin-bottom:0in;margin-left:13.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</u></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'><u>3,898,559</u></p>
  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:3.0pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp; 4,000</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'><u>$17,632,000</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:5.5pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp; (12,159,000</u>)</p>
  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp; (68,000)</u></p>
  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.5pt;
  margin-bottom:0in;margin-left:8.5pt;margin-bottom:.0001pt;text-align:right'><u>$(1,115,000)</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:4.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp; 5,409,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal style='margin-left:22.5pt;text-indent:-9.0pt'>Stock option
  compensation cost</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'>77,000</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:4.0pt;margin-bottom:.0001pt;text-align:right'>77,000</p>
  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal style='margin-left:22.5pt;text-indent:-9.0pt'>Value of
  warrants issued with debt</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'>42,000</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:4.0pt;margin-bottom:.0001pt;text-align:right'>42,000</p>
  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal style='margin-left:22.5pt;text-indent:-9.0pt'>Comprehensive(Loss</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal style='margin-left:22.5pt;text-indent:-9.0pt'>&nbsp;&nbsp;&nbsp; Net Loss</p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:5.5pt;margin-bottom:.0001pt;text-align:right'>(1,646,000)</p>
  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.5pt;
  margin-bottom:0in;margin-left:8.5pt;margin-bottom:.0001pt;text-align:right'>(1,646,000)</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:4.0pt;margin-bottom:.0001pt;text-align:right'>(1,646,000)</p>
  </td>
 </tr>
 <tr>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred
  hedging losses</p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.5pt;
  margin-bottom:0in;margin-left:3.5pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.0pt;
  margin-bottom:0in;margin-left:13.0pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:7.5pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:3.0pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:5.5pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68,000</u></p>
  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.5pt;
  margin-bottom:0in;margin-left:8.5pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt'>
  <p class=MsoNormal align=right style='margin-right:4.0pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68,000</u></p>
  </td>
 </tr>
 <tr style='height:5.4pt'>
  <td width=192 valign=top style='width:2.0in;padding:0in .5pt 0in .5pt;
  height:5.4pt'>
  <p class=MsoNormal style='margin-left:13.0pt;text-indent:-13.0pt'>Balances,
  September&nbsp;30, 2009</p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt;
  height:5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.5pt;
  margin-bottom:0in;margin-left:3.5pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt;
  height:5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.0pt;
  margin-bottom:0in;margin-left:13.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</u></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;padding:0in .5pt 0in .5pt;
  height:5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'><u>3,898,559</u></p>
  </td>
  <td width=66 valign=bottom style='width:49.5pt;padding:0in .5pt 0in .5pt;
  height:5.4pt'>
  <p class=MsoNormal align=right style='margin-right:3.0pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp; 4,000</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt;
  height:5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'><u>$17,751,000</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt;
  height:5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:5.5pt;margin-bottom:.0001pt;text-align:right'><u>$(13,805,000</u>)</p>
  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in .5pt 0in .5pt;
  height:5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.5pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</u></p>
  </td>
  <td width=90 valign=top style='width:67.5pt;padding:0in .5pt 0in .5pt;
  height:5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.5pt;
  margin-bottom:0in;margin-left:8.5pt;margin-bottom:.0001pt;text-align:right'><u>$(2,761,000)</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in .5pt 0in .5pt;
  height:5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:4.0pt;
  margin-bottom:0in;margin-left:4.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp; 3,950,000</u></p>
  </td>
 </tr>
</table>

<p class=MsoFooter align=center style='text-align:center'><b><i>See
accompanying notes to these consolidated financial statements.</i></b></p>

<p class=MsoFooter align=center style='text-align:center'>F-5</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>





<br
clear=all style='page-break-before:always'>












<p class=MsoNormal align=center style='text-align:center'>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARY</p>

<p class=MsoNormal align=center style='margin-bottom:12.0pt;text-align:center'>CONSOLIDATED
STATEMENTS OF CASH FLOWS</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=690
 style='margin-left:10.5pt;border-collapse:collapse'>

  <tr style='height:24.75pt'>
   <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt;
   height:24.75pt'>

   </td>
   <td width=12 valign=top style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt;
   height:24.75pt'>

   </td>
   <td width=234 colspan=3 valign=top style='width:175.5pt;border:none;
   border-bottom:solid windowtext 1.0pt;padding:0in 1.5pt 0in 1.5pt;height:
   24.75pt'>
   <p class=MsoNormal align=center style='text-align:center'>For the Years Ended</p>
   <p class=MsoNormal align=center style='text-align:center'>September 30,</p>
   </td>
  </tr>
  <tr>
   <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>

   </td>
   <td width=12 valign=top style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

   </td>
   <td width=108 valign=top style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;
   padding:0in 1.5pt 0in 1.5pt'>
   <p class=MsoNormal align=center style='margin-top:0in;margin-right:7.5pt;
   margin-bottom:0in;margin-left:16.5pt;margin-bottom:.0001pt;text-align:center'>2009</p>
   </td>
   <td width=24 valign=top style='width:.25in;border:none;border-top:solid windowtext 1.0pt;
   padding:0in 1.5pt 0in 1.5pt'>

   </td>
   <td width=102 valign=top style='width:76.5pt;border-top:solid windowtext 1.0pt;
   border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
   padding:0in 1.5pt 0in 1.5pt'>
   <p class=MsoNormal align=center style='margin-top:0in;margin-right:7.5pt;
   margin-bottom:0in;margin-left:16.5pt;margin-bottom:.0001pt;text-align:center'>2008</p>
   </td>
  </tr>

 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal>Cash Flows from Operating
  Activities:</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:7.5pt'>Net Loss</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>$&nbsp;&nbsp;&nbsp; (1,646,000)</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:7.5pt;margin-bottom:.0001pt;text-align:right'>$&nbsp; (1,076,000)</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:25.5pt;text-indent:-9.3pt'>Adjustments
  to reconcile net income (loss) to net cash provided by
  operating&nbsp;activities:</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:25.5pt'>Depreciation and amortization</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>1,262,000</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>1,283,000</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:25.5pt'>Note discount amortization</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>15,000</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:25.5pt'>Accretion of deferred rent</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>1,000</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>33,000</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:25.5pt'>Minority interest expense (income)</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(54,000)</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>113,000</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:34.5pt;text-indent:-9.0pt'>Gain on
  disposal of property, restaurants and equipment</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(28,000)</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(35,000)</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:34.5pt;text-indent:-9.0pt'>Stock option
  compensation cost</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>77,000</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>90,000</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:34.5pt;text-indent:-9.0pt'>Expenses
  associated with exit activity</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>95,000</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:34.5pt;text-indent:-9.0pt'>Unrealized
  loss on interest rate swap agreement</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>87,000</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:34.5pt;text-indent:-9.0pt'>Changes in
  operating assets and liabilities:</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:34.5pt;text-indent:-9.0pt'>(Increase)
  decrease in:</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:39.0pt'>Receivables</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>38,000</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>42,000</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:39.0pt'>Inventories</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>&nbsp;20,000</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(35,000)</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:39.0pt'>Prepaid expenses and other</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>47,000</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(40,000)</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:39.0pt'>Deposits and other assets</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>16,000</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(3,000)</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:34.5pt;text-indent:-9.0pt'>(Decrease)
  increase in:</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:39.0pt'>Accounts payable</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(273,000)</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>232,000</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:39.0pt'>Accrued and other liabilities</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(157,000)</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(90,000)</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:39.0pt'>Deferred franchise fees</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal><u>&nbsp;</u></p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:3.0pt;
  margin-left:44.2pt;text-indent:-10.4pt'>Net cash provided by (used in) operating
  activities</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:3.0pt;margin-left:12.0pt;text-align:right'><u>&nbsp;&nbsp;&nbsp; (595,000)</u></p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-bottom:3.0pt'><u>&nbsp;</u></p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:3.0pt;margin-left:12.0pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 619,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal>Cash Flows From Investing Activities:</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt;text-indent:-8.7pt'>Payments for
  the purchase of property and equipment </p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(284,000)</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(3,282,000)</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt;text-indent:-13.5pt'>&nbsp;Proceeds
  from the sale of assets</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>747,000</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt;text-indent:-13.5pt'>&nbsp;Purchase of
  franchisee</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(272,000)</p>
  </td>
 </tr>
 <tr style='height:10.35pt'>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt;
  height:10.35pt'>
  <p class=MsoNormal style='margin-left:16.6pt;text-indent:-13.7pt'>&nbsp;Loans made
  to franchisees and to others</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt;height:10.35pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt;
  height:10.35pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(31,000)</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt;
  height:10.35pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt;
  height:10.35pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(54,000)</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:7.5pt;text-indent:-4.8pt'>&nbsp;Payments
  received on loans to franchisees and to others</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31,000</u></p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal><u>&nbsp;</u></p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 74,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:3.0pt;
  margin-left:46.4pt;text-indent:-10.4pt'>Net cash used in investing
  activities</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:3.0pt;margin-left:12.0pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (284,000</u>)</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:3.0pt;margin-left:12.0pt;text-align:right'><u>&nbsp;&nbsp;&nbsp; (2,787,000</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal>&nbsp;Cash Flows From Financing Activities:</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt;text-indent:-8.7pt'>Principal
  payments on notes payable, capital leases, and long&#8209;term debt</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(123,000)</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>(870,000)</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt;text-indent:-8.7pt'>Borrowings on
  notes payable and long-term debt</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>185,000</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>2,180,000</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt;text-indent:-8.7pt'>Proceeds from
  exercise of stock options</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>104,000</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt;text-indent:-8.7pt'>Net proceeds
  on line-of-credit</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>320,000</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt;text-indent:-8.7pt'>Distributions(net
  of contributions) paid to minority interests in partnerships</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (102,000)</u></p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (297,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:3.0pt;
  margin-left:46.4pt;text-indent:-10.4pt'>Net cash provided by financing
  activities</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:3.0pt;margin-left:12.0pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 280,000</u></p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-bottom:3.0pt'><u>&nbsp;</u></p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:3.0pt;margin-left:12.0pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,117,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:3.0pt;
  margin-left:16.2pt;text-indent:-16.2pt'>Net Change in Cash and Cash Equivalents</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:3.0pt;
  margin-bottom:3.0pt;margin-left:12.0pt;text-align:right'>(599,000)</p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:3.0pt;margin-left:12.0pt;text-align:right'>(1,051,000)</p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:3.0pt;
  margin-left:16.2pt;text-indent:-16.2pt'>Cash and Cash Equivalents, beginning of year</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:3.0pt;margin-left:12.0pt;text-align:right'><u>&nbsp;&nbsp;&nbsp; 1,414,000</u></p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-bottom:3.0pt'><u>&nbsp;</u></p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:3.0pt;margin-left:12.0pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,465,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-bottom:3.0pt'>Cash and Cash Equivalents, end of year</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:3.0pt;margin-left:12.0pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp; 815,000</u></p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-bottom:3.0pt'><u>&nbsp;</u></p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:3.0pt;margin-left:12.0pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp; 1,414,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt;text-indent:-16.2pt'>Supplemental Disclosures of Cash Flow Information:</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'><a name="_Hlk216664756">Cash paid for
  interest</a></p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp; 299,000</u></p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal><u>&nbsp;</u></p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 111,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Non-cash acquisition price of
  franchise store (notes receivable)</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal><u>&nbsp;</u></p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 250,000</u></p>
  </td>
 </tr>
 <tr style='height:11.25pt'>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt;
  height:11.25pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Non-cash deferred hedging losses</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt;height:11.25pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt;
  height:11.25pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt;
  height:11.25pt'>
  <p class=MsoNormal><u>&nbsp;</u></p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt;
  height:11.25pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42,000</u></p>
  </td>
 </tr>
 <tr style='height:11.25pt'>
  <td width=444 valign=top style='width:333.0pt;padding:0in 1.5pt 0in 1.5pt;
  height:11.25pt'>
  <p class=MsoNormal style='margin-left:16.2pt'>Non-cash fair value of warrants</p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 1.5pt 0in 1.5pt;height:11.25pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 1.5pt 0in 1.5pt;
  height:11.25pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42,000</u></p>
  </td>
  <td width=24 valign=bottom style='width:.25in;padding:0in 1.5pt 0in 1.5pt;
  height:11.25pt'>
  <p class=MsoNormal><u>&nbsp;</u></p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt;
  height:11.25pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:7.5pt;
  margin-bottom:0in;margin-left:12.0pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
 </tr>
</table>

<p class=MsoFooter align=center style='text-align:center'><b><i>See
accompanying notes to these consolidated financial statements.</i></b></p>

<p class=MsoFooter align=center style='text-align:center'>F-7</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>





<u><br clear=all style='page-break-before:
always'>
</u>











<p class=Level1 align=center style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:.5in;text-align:center;text-indent:0in'>Notes to Consolidated Financial statements</p>

<p class=Level1 style='margin-bottom:6.0pt'>1.&nbsp;&nbsp;&nbsp;&nbsp; <u>Organization and Summary of Significant Accounting Policies</u>:</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.4in;text-align:justify'><u>Organization</u> - Good Times
Restaurants Inc. (Good Times or the Company) is a Nevada corporation. The
Company operates through its wholly owned subsidiary Good Times Drive Thru Inc.
(Drive Thru).</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.4in;text-align:justify'>Drive Thru commenced operations in 1986 and, as of
September&nbsp;30, 2009, operates thirty&nbsp;company-owned and joint venture
drive-thru fast food hamburger restaurants.&nbsp; The Company's restaurants are
located in Colorado. In addition, Drive Thru has twenty-two franchises, eighteen
operating in Colorado, two in Wyoming, one in Idaho and one in North Dakota,
and is offering franchises for development of additional Drive Thru
restaurants.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.4in;text-align:justify'>We follow accounting standards set by the
Financial Accounting Standards Board, commonly referred to as the &quot;FASB&quot;. The
FASB sets generally accepted accounting principles (GAAP) that we follow to
ensure we consistently report our financial condition, results of operations
and cash flows. References to GAAP issued by the FASB in these footnotes are to
the <i>FASB Accounting Standards Codification&trade;, </i>sometimes referred to as
the Codification or ASC. The FASB finalized the Codification effective for
periods ending on or after September 15, 2009. For further discussion of the
Codification see &quot;FASB Codification Discussion&quot; in Management's Discussion and
Analysis of Financial Condition and Results of Operations (commonly referred to
as MD&amp;A) elsewhere in this report.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.4in;text-align:justify'><u>Principles of Consolidation</u> - The
consolidated financial statements include the accounts of Good Times, its
subsidiary and two limited partnerships, in which the Company exercises control
as general partner.&nbsp; The Company owns an approximate 51% interest in both
partnerships, is the sole general partner and receives a management fee prior
to any distributions to the limited partners.&nbsp; Because the Company owns an
approximate 51% interest in the partnerships and exercises complete management
control over all decisions for the partnerships, except for certain veto
rights, the financial statements of the partnerships are consolidated into the
Company's financial statements.&nbsp; The equity interests of the unrelated limited
partners are shown on the accompanying consolidated balance sheet as minority
interest, and the limited partners' shares of net income in the partnerships is
shown as minority interest expense in the accompanying consolidated statement
of operations. All inter-company accounts and transactions are eliminated.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.4in;text-align:justify'><u>Accounting Estimates</u> - The
preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles requires management to make estimates and
assumptions that affect the amounts reported in these consolidated financial
statements and the accompanying notes.&nbsp; Actual results could differ from those
estimates.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.4in;text-align:justify'><u>Reclassification</u> - Certain prior
year balances have been reclassified to conform to the current year's
presentation.&nbsp; Such reclassifications had no effect on the net income or loss.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.4in;text-align:justify'><u>Cash and Cash Equivalents</u> - The Company
considers all highly liquid debt instruments purchased with an initial maturity
of three months or less to be cash equivalents.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.4in;text-align:justify'><u>Accounts Receivable</u> - Accounts
receivable include uncollateralized receivables from our franchisees and our
advertising fund, due in the normal course of business, generally requiring
payment within thirty days of the invoice date. On a periodic basis the Company
monitors all accounts for delinquency and provides for estimated losses of
uncollectible accounts. Currently and historically there have been no allowances
for unrecoverable accounts receivable.<u> </u></p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.4in;text-align:justify'><u>Inventories</u> - Inventories
are stated at the lower of cost or market, determined by the first-in,
first-out method, and consist of restaurant food items and related packaging
supplies.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.4in;text-align:justify'><u>Property and Equipment</u> -
Depreciation is recognized using the straight-line method over the estimated
useful lives of the assets or the lives of the related leases, if shorter, as
follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:135.9pt;border-collapse:collapse'>
 <tr>
  <td width=204 valign=top style='width:153.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Buildings</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>15 years</p>
  </td>
 </tr>
 <tr>
  <td width=204 valign=top style='width:153.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Leasehold improvements</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>7-15 years</p>
  </td>
 </tr>
 <tr>
  <td width=204 valign=top style='width:153.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Fixtures and equipment</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>3-8 years</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'>Maintenance and repairs are charged to
expense as incurred, and expenditures for major improvements are capitalized.&nbsp;
When assets are retired, or otherwise disposed of, the property accounts are
relieved of costs and accumulated depreciation with any resulting gain or loss
credited or charged to income.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'>We have classified $1,595,000 as
assets held for sale in the accompanying consolidated balance sheet. These
costs are related to a site in Firestone, Colorado which has been fully
developed.&nbsp; The restaurant is being marketed for sale and leaseback.&nbsp; The
proceeds of a sale leaseback transaction, if consummated, are required to be
used for the reduction of the line of credit payable to PFGI II, LLC. The
effect on our operating cash flow is not material as the interest expense on
the line of credit is approximately equal to the proposed rental rate on sale
and leaseback transaction.</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'><u>Impairment of Long-Lived Assets</u> - We review our
long-lived assets for impairment in accordance with the guidance of FASB ASC
360-10, Property, Plant, and Equipment, including land, property and equipment
whenever events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. Recoverability of assets to be held and
used is measured by a comparison of the capitalized costs of the assets to the
future undiscounted net cash flows expected to be generated by the assets and
the expected cash flows are based on recent historical cash flows at the
restaurant level (the lowest level that cash flows can be determined).</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'>An analysis was performed on a
restaurant by restaurant basis at September 30, 2009. Assumptions used in
preparing expected cash flows were as follows: </p>

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6.0pt;margin-left:1.0in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales
projections are as follows: Fiscal 2010 sales are projected flat with respect
to fiscal 2009, for fiscal years 2011 to 2024 we have used annual increases of
2% to 3%. We believe the 2% to 3% increase in the years beyond 2010 is a
reasonable expectation of growth and that it would be unreasonable to expect no
growth in our sales. These increases include menu price increases in addition
to any real growth. Historically our weighted menu prices have increased 1.5%
to 6%.</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:1.0in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our
variable and semi-variable restaurant operating costs are projected to increase
proportionately with the sales increases as well as increasing an additional
1.5% per year consistent with inflation.</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:1.0in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our
other fixed restaurant operating costs are projected to increase 1.5% to 2% per
year.</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:1.0in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Food
and packaging costs are projected to remain flat in relation to our current
fiscal 2009 food and packaging costs as a percentage of sales. </p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:1.0in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Salvage
value has been estimated on a restaurant by restaurant basis considering each
restaurant's particular equipment package and building size.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'>Given the results of our impairment
analysis at September 30, 2009 there are no restaurants which are impaired as
their projected undiscounted cash flows show recoverability of their asset
values.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'>Our impairment analysis included a
sensitivity analysis with regard to the cash flow projections that determine
the recoverability of each restaurant's assets. The results indicate that even
with a 20% decline in our projected cash flows we would still not have any
potential impairment issues.&nbsp; However if we elect to sublease, close or
otherwise exit a restaurant location impairment could be required. We have
experienced higher than normal food and packaging costs as a percentage of
restaurant sales in recent years and we do not believe these costs will remain
at these levels in future years. However for purposes of our cash flow
projections in the asset impairment analysis we have assumed our food and
packaging costs will remain at these higher levels.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'>Each time we conduct an impairment
analysis in the future we will compare actual results to our projections and assumptions,
and to the extent our actual results do not meet expectations, we will revise
our assumptions and this could result in impairment charges being recognized.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'>All of the judgments and assumptions
made in preparing the cash flow projections are consistent with our other
financial statement calculations and disclosures. The assumptions used in the
cash flow projections are consistent with other forward-looking information
prepared by the company, such as those used for internal budgets, discussions with
third parties, and/or reporting to management or the board of directors.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'>To date we have not written down any
assets due to impairment, however projecting the cash flows for the impairment
analysis involves significant estimates with regard to the performance of each
restaurant, and it is reasonably possible that the estimates of cash flows may
change in the near term resulting in the need to write down operating assets to
fair value. If the assets are determined to be impaired, the amount of
impairment recognized is the amount by which the carrying amount of the assets
exceeds their fair value. Fair value would be determined using forecasted cash
flows discounted using an estimated average cost of capital and the impairment
charge would be recognized in income from operations.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'><u>Sales of Restaurants and Restaurant
Equity Interests</u>
- - Sales of restaurants or non-controlling equity interests in restaurants
developed by the Company are recorded under either the full accrual method or
the installment method of accounting.&nbsp; Under the full accrual method, a gain is
not recognized until the collectability of the sales price is reasonably
assured and the earnings process is virtually complete without further
contingencies.&nbsp; When a sale does not meet the requirements for income
recognition, the related gain is deferred until those requirements are met.&nbsp;
Under the installment method, the gain is incrementally recognized as principal
payments on the related notes receivable are collected.&nbsp; The Company's
accounting policy, with regards to the sale of restaurants, is in accordance
with the guidance of FASB ASC 360-10, Property, Plant, and Equipment.&nbsp; If the
initial payment is less than the percentages set forth, use of the installment
method is required.&nbsp; </p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'>The Company's accounting for the sale
of restaurants is also in accordance with FASB ASC 810-20, Consolidation of
Variable Interest and Special-Purpose Entities, because the risks and other
incidents of ownership have been transferred to the buyer.&nbsp; Specifically, a) no
continuing involvement by the Company exists in restaurants that are sold, b)
sales contracts and related income recognition are not dependant on the future
successful operations of the sold restaurants, and c) the Company is not
involved as a guarantor on the purchasers' debts.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'><u>Deferred Liabilities</u> - Rent
expense is reflected on a straight-line basis over the term of the lease for
all leases containing step-ups in base rent.&nbsp; An obligation representing future
payments (which totaled $551,000 as of September&nbsp;30, 2009) is reflected in
the accompanying consolidated balance sheet as a deferred liability.&nbsp; Also
included in the $973,000 deferred and other liability balance is a $422,000
deferred gain on the sale of the building and improvements of two Company-owned
restaurants in two separate sale leaseback transactions.&nbsp; The building and
improvements were subsequently leased back from the third party purchasers. The
gains will be recognized in future periods in proportion to the rents paid on
the fifteen and twenty year leases.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'><u>Opening Costs</u> - Opening
costs are expensed as incurred.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'><u>Advertising</u> - The Company
incurs advertising expenses in connection with the marketing of its restaurant
operations.&nbsp; Advertising costs are expensed when the related advertising
begins.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'><u>Franchise and Area Development Fees</u> - Individual
franchise fee revenue is deferred when received and is recognized as income
when the Company has substantially performed all of its obligations under the
franchise agreement and the franchisee has commenced operations.&nbsp; The Company's
commitments and obligations pursuant to the franchise agreements consist of a)
development assistance; including site selection, building specifications and
equipment purchasing and b) operating assistance; including training of personnel
and preparation and distribution of manuals and operating materials.&nbsp; All of
these obligations are effectively complete upon the opening of the restaurant
at which time the franchise fee and the portion of any development fee
allocable to that restaurant is recognized.&nbsp; There are no additional material
commitments or obligations.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'>The Company has not recognized any
franchise fees that have not been collected.&nbsp; The Company segregates initial
franchise fees from other franchise revenue in the statement of operations.&nbsp;
Revenues and costs related to company-owned restaurants are segregated from
revenues and costs related to franchised restaurants in the statement of
operations.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'>Continuing royalties from franchisees,
which are a percentage of the gross sales of franchised operations, are
recognized as income when earned.&nbsp; Franchise development expenses, which
consist primarily of legal costs and restaurant opening expenses associated
with developing and opening franchise restaurants, are expensed against the
related franchise fee income.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'><u>Accounting for Notes Receivable</u> - The
Company's notes receivables are all due from Good Times franchisees, or
franchise advertising cooperatives. All of the notes receivable are
collateralized by real estate or equipment and certain of the notes are
personally guaranteed by the franchisees. The notes are all term notes with
interest accruing at market rates. The Company reviews the notes from time to
time to access collectability. The Company has determined that all notes receivable
at September 30, 2009 are collectable and allowances for write-downs are not
necessary.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'><u>Operating Partner Program</u> - Operating
Partners in a restaurant share in future increases of their restaurant's cash
flows above an established baseline, which is based on the preceding twelve
months' cash flow after full allocation of advertising and capital expenses.&nbsp;
This program is designed to figuratively put Operating Partners in the shoes of
an owner so that a portion of their compensation is derived solely from the
improvement in the financial performance of their respective restaurants.&nbsp; The
portion of cash flow increases allocable to the Operating Partners are expensed
as incurred on a quarterly basis, with a cumulative adjustment made for any
months where cash flows fall below the established baselines. Compensation
under this program is expensed to restaurant operations as incurred.&nbsp; No other
long term benefits accrue or vest to the Operating Partners in this program.&nbsp;
Operating Partners are employees at will and are subject to termination from
this program if certain operating, customer service and financial objectives
are not met.</p>

<p class=MsoNormal style='margin-left:25.9pt;text-autospace:none'><u>Income Taxes</u> - We account
for income taxes in accordance with FASB ASC 740, Income Taxes. FASB ASC 740
prescribes the use of the liability method whereby deferred tax asset and
liability account balances are determined based on differences between the
financial reporting and tax bases of assets and liabilities and are measured
using the enacted tax rates and laws that will be in effect when the differences
are expected to reverse. The Company provides a valuation allowance, if
necessary, to reduce deferred tax assets to their estimated realizable value.</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'><u>Net Income (Loss) Per Common Share</u> - The income
(loss) per share is presented in accordance with the guidance of FASB ASC
260-10, Earnings per Share (EPS).&nbsp; Basic EPS is calculated by dividing the
income (loss) available to common stockholders by the weighted average number
of common shares outstanding for the period.&nbsp; Diluted EPS reflects the
potential dilution that could occur if securities or other contracts to issue
common stock were exercised or converted into common stock. Options for 9,953
shares of common stock were not included in computing diluted EPS for 2009
because their effects were anti-dilutive. Options for 81,364 shares of common
stock were included in computing diluted EPS for 2008 because they were
dilutive. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'><u>Financial Instruments and
Concentrations of Credit Risk</u> - Credit risk represents the
accounting loss that would be recognized at the reporting date if
counterparties failed completely to perform as contracted.&nbsp; Concentrations of
credit risk (whether on or off balance sheet) that arise from financial
instruments exist for groups of customers or counterparties when they have
similar economic characteristics that would cause their ability to meet
contractual obligations to be similarly effected by changes in economic or
other conditions.&nbsp; Financial instruments with off-balance-sheet risk to the
Company include lease liabilities whereby the Company is contingently liable as
a guarantor of certain leases that were assigned to third parties in connection
with various sales of restaurants to franchisees (see Note&nbsp;6).&nbsp; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>Financial instruments potentially
subjecting the Company to concentrations of credit risk consist principally of
receivables.&nbsp; At September 30, 2009, notes receivable totaled $118,000 and are
due from four entities.&nbsp; Additionally, the Company has other current
receivables totaling $122,000, which includes $72,000 of franchise receivables.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>The Company purchases 100% of its
restaurant food and paper from one vendor. The Company believes a sufficient
number of other suppliers exist from which food and paper could be purchased to
prevent any long-term, adverse consequences.&nbsp; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>The Company operates in one industry
segment, restaurants.&nbsp; A geographic concentration exists because the Company's
customers are generally located in the State of Colorado. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'><u>Comprehensive Income (Loss</u>) - Comprehensive
income includes net income or loss, changes in certain assets and liabilities
that are reported directly in equity such as adjustments resulting from
unrealized gains or losses on held-to-maturity investments and certain hedging
transactions. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'>In May 2007, the Company entered into
an interest rate swap agreement, designated as a cash flow hedge, which hedges
the Company's exposure to interest rate fluctuations on the Company's floating
rate $1,100,000 term loan. In fiscal 2008 The Company recorded the fair value
of these contracts in the balance sheet, with the offset to other comprehensive
loss. In fiscal 2009 the fair value has been recognized in current earnings due
to the technical covenant defaults that exist with the underlying Wells Fargo
Bank loan. The contract requires monthly settlements of the difference between
the amounts to be received and paid under the agreement, the amount of which is
recognized in current earnings as interest expense. See Note 4 for additional
information.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'><u>Stock-Based Compensation</u> - Stock-based
compensation is presented in accordance with the guidance of FASB ASC
718-10-30, Compensation - Stock Compensation. Under
the provisions of FASB ASC 718, stock-based compensation is measured at the
grant date, based on the calculated fair value of the award, and is recognized
as an expense over the requisite employee service period (generally the vesting
period of the grant). See Note 10 for additional information.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'><u>Variable Interest Entities</u> - FASB ASC
810-20, Consolidation of Variable Interest and Special-Purpose Entities, can
require consolidation of &quot;variable interest entities&quot; (VIEs).&nbsp; Once an entity
is determined to be a VIE, the party with the controlling financial interest,
the primary beneficiary, is required to consolidate it.&nbsp; The Company has several
franchisees with notes payable to the Company.&nbsp; These franchisees are VIE's as
defined by FASB ASC 810-20, however, the Company is not the primary beneficiary
of these entities.&nbsp; Therefore they are not required to be consolidated under
the guidance of FASB ASC 810-20.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Fair Value of Financial
Instruments </u>- The Company adopted the provisions of FASB ASC 820, Fair
Value Measurements and Disclosures, effective October 1, 2008. FASB ASC 820
defines fair value, establishes a framework for measuring fair value under
generally accepted accounting principles and enhances disclosures about fair
value measurements. See Note 11 for additional information.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>Fair value is defined as the price
that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.
Valuation techniques used to measure fair value, as required by Topic 820 of
the FASB ASC, must maximize the use of observable inputs and minimize the use
of unobservable inputs.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>FASB ASC 820 defines three levels of
inputs that may be used to measure fair value and requires that the assets or
liabilities carried at fair value be disclosed by the input level under which
they were valued. The input levels defined under FASB ASC 820 are as follows:</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>Level 1: Quoted market prices in
active markets for identical assets and liabilities.</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>Level 2: Observable inputs other than
defined in Level 1, such as quoted prices for similar assets or liabilities;
quoted prices in markets that are not active; or other inputs that are
observable or can be corroborated by observable market data for substantially
the full term of the assets or liabilities.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>Level 3: Unobservable inputs that are
not corroborated by observable market data.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'><u>Recent Accounting Pronouncements</u> <a
name="OLE_LINK2">-</a> In June 2009, the FASB
issued FASB ASC 105, Generally Accepted Accounting Principles, which establishes
the FASB Accounting Standards Codification as the sole source of authoritative
generally accepted accounting principles. Pursuant to the provisions of FASB
ASC 105, the Company has updated references to GAAP in its financial statements
issued for the period ended September 30, 2009. The adoption of FASB ASC 105
did not impact the Company's financial position or results of operations.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In June 2008, the FASB issued
FASB ASC 815-40, Derivatives and Hedging , that provides guidance on how to
determine if certain instruments (or embedded features) are considered indexed
to a company's own stock, including instruments similar to warrants to purchase
the company's stock. FASB ASC 815-40 requires companies to use a two-step
approach to evaluate an instrument's contingent exercise provisions and
settlement provisions in determining whether the instrument is considered to be
indexed to its own stock and therefore exempt from the application of FASB ASC
815 Although FASB ASC 815-40 is effective for fiscal years beginning after
December 15, 2008, any outstanding instrument at the date of adoption will
require a retrospective application of the accounting through a cumulative
effect adjustment to retained earnings upon adoption. The Company does not
expect the adoption of this guidance to have a material impact on either its
financial position or results of operations.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>In December 2007, the FASB issued FASB
ASC 805, Business Combinations, which establishes principles and requirements
for how an acquiring entity in a business combination recognizes and measures
the assets acquired and liabilities assumed in the transaction; establishes the
acquisition-date fair value as the measurement objective for all assets
acquired and liabilities assumed; and sets the disclosure requirements
regarding the information needed to evaluate and understand the nature and
financial effect of the business combination.&nbsp; This accounting pronouncement is
effective for fiscal years beginning after December 15, 2008, which will
effective for our fiscal year beginning October 1, 2009.&nbsp; The requirements of
FAS 141 will only impact future business combination transactions into which we
may enter.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>In December 2007, the FASB issued FASB
ASC 810-10, <i>Consolidation</i>, which prescribes the accounting by a parent
company for minority interests held by other parties in a subsidiary of the
parent company.&nbsp; FAS ASC 810-10 is effective for fiscal years beginning after
December 15, 2008, which will be effective for our fiscal year beginning
October 1, 2009.&nbsp; We are currently evaluating the requirements of FAS ASC
810-10 and have not yet determined the impact on our financial statements.</p>

<p class=Level1 style='margin-bottom:6.0pt;text-align:justify'>2.&nbsp;&nbsp;&nbsp;&nbsp; <u>Liquidity:</u> </p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>As of September 30, 2009, we had
$815,000 in cash and cash equivalents on hand.&nbsp; We currently plan to use the
cash balance and any cash generated from operations for our working capital
needs in fiscal 2010.&nbsp; We anticipate that we will require additional working
capital of $300,000 to $500,000 during January through April, 2010 and we are
pursuing additional sources of funding to increase our working capital.&nbsp;&nbsp; We
are pursuing rent concessions from several of our landlords and anticipate
improved income from operations of $75,000 - $100,000 from those transactions
in fiscal 2010. If circumstances require we may contemplate the sale or
sublease of selected underperforming restaurants in fiscal 2010.&nbsp; In April,
2009 we extended the maturity of our $2,500,000 line of credit with PFGI II,
LLC to July, 2010 and have further extended the maturity to December 31, 2012
as described below (see &quot;Financing Transactions&quot; below).&nbsp; </p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>As of September 30, 2009, we had a
working capital deficit of $1,200,000 due primarily to the entire note payable
to Wells Fargo Bank, N.A. of $846,000 shown as a current liability due to
certain loan covenant defaults that existed as of September 30, 2009. We are
not in payment default under the note and anticipate remaining current on all
principal and interest payments in fiscal 2010, subject to our successfully
raising additional operating capital.&nbsp; We have received a Forbearance and
Reservation of Rights letter from Wells Fargo Bank stating that they are
accepting current principal and interest payments and are not currently
accelerating the note, subject to agreeing to an acceptable Required Corrective
Action for the covenant defaults.&nbsp; It is unlikely that we will have an
acceptable Required Corrective Action until our Earnings Before Interest Taxes
and Depreciation (&quot;EBITDA&quot;) improves.&nbsp; If Wells Fargo were to accelerate the
note payable, we would need additional financing and we do not currently have a
source for such financing.&nbsp; Additionally, we have recorded an $87,000 current
liability related to the unrealized loss on our interest rate swap, as noted in
Note 4 below.</p>

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<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>The accompanying financial statements
have been prepared on a going concern basis, which contemplates the realization
of assets and the satisfaction of liabilities in the normal course of
business.&nbsp; Due to the classification of the entire Wells Fargo note payable as
a current liability and the right of Wells Fargo to accelerate the required
payment of the note, we do not show the ability to fully satisfy our
liabilities in the normal course of business without raising additional
capital.&nbsp;&nbsp; It is our objective to acquire additional operating capital through
debt and equity offerings and the possible sale of an existing restaurant with
such funds to be used for the repayment of the Wells Fargo note and to increase
our working capital.&nbsp; We believe we will be successful in raising sufficient
additional operating capital and in restructuring our debt obligations, however
there can be no assurance that we will be successful in raising such additional
funds.&nbsp; </p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>The accompanying financial statements
do not include any adjustments relating to the recoverability and
classification of assets and liabilities that might be necessary should we be
unable to continue as a going concern.&nbsp; Our continuation as a going concern is
dependent upon on our ability to obtain additional operating capital,
restructure our debt obligations and attain profitability.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>In December, 2009 we entered into an
agreement to extend the maturity of the PFGI II, LLC loan to December 31, 2012
and modified the terms of the loan to include a 25 year amortization period
with a balloon payment on December 31, 2012.&nbsp; As a result, the majority of the PFGI
II LLC loan is shown as a long term liability as of September 30, 2009. We
anticipate either developing a new restaurant on the land we own
collateralizing the PFGI II loan and reducing the amount of the loan by the
value of the land or selling the property and using the proceeds to reduce the
loan, with estimated net proceeds of $800,000 to $1,000,000.&nbsp; We will continue
to market the other land and building we own that collateralizes the PFGI loan
for a sale and leaseback and plan to use the net proceeds to reduce the loan.&nbsp; </p>

<p class=Level1 style='margin-bottom:6.0pt;text-align:justify;page-break-after:
avoid'>3.&nbsp;&nbsp;&nbsp;&nbsp; <u>Notes Receivable</u>:</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify;page-break-after:avoid'>Notes
receivable consists of the following as of September 30, 2009:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=636
 style='margin-left:27.0pt;border-collapse:collapse'>
 <tr style='height:9.0pt'>
  <td width=504 valign=top style='width:5.25in;padding:0in 0in 0in 0in;
  height:9.0pt'>
  <p class=MsoNormal style='margin-right:5.7pt;text-align:justify'>Notes
  receivable from franchisees related to restaurant equipment; 6.0% to 10%
  interest per annum; monthly payments of principal and interest are due in the
  amount of approximately $2,200; final payment due in 2012; collateralized by
  all fixtures and equipment of the related restaurants.</p>
  </td>
  <td width=30 valign=top style='width:22.5pt;padding:0in 0in 0in 0in;
  height:9.0pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 0in 0in 0in;
  height:9.0pt'>
  <p class=MsoNormal align=right style='margin-right:9.0pt;text-align:right'>33,000</p>
  </td>
 </tr>
 <tr style='height:9.0pt'>
  <td width=504 valign=top style='width:5.25in;padding:0in 0in 0in 0in;
  height:9.0pt'>

  </td>
  <td width=30 valign=top style='width:22.5pt;padding:0in 0in 0in 0in;
  height:9.0pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 0in 0in 0in;
  height:9.0pt'>
  <p class=MsoNormal align=right style='margin-right:9.0pt;text-align:right'><u>&nbsp;</u></p>
  </td>
 </tr>
 <tr style='height:9.0pt'>
  <td width=504 valign=top style='width:5.25in;padding:0in 0in 0in 0in;
  height:9.0pt'>
  <p class=MsoNormal style='margin-right:5.7pt;text-align:justify'>Note
  receivable from a franchisee related to a working capital loan; 10% interest
  per annum; monthly payments of principal and interest are due in the amount
  of $2,150; final payment due in 2013; collateralized by all fixtures and equipment
  of the related restaurant.</p>
  </td>
  <td width=30 valign=top style='width:22.5pt;padding:0in 0in 0in 0in;
  height:9.0pt'>

  </td>
  <td width=102 valign=bottom style='width:76.5pt;padding:0in 0in 0in 0in;
  height:9.0pt'>
  <p class=MsoNormal align=right style='margin-right:9.0pt;text-align:right'><u>&nbsp; 85,000</u></p>
  </td>
 </tr>
 <tr style='height:9.0pt'>
  <td width=504 valign=top style='width:5.25in;padding:0in 0in 0in 0in;
  height:9.0pt'>

  </td>
  <td width=30 valign=top style='width:22.5pt;padding:0in 0in 0in 0in;
  height:9.0pt'>

  </td>
  <td width=102 style='width:76.5pt;padding:0in 0in 0in 0in;height:9.0pt'>
  <p class=MsoNormal align=right style='margin-right:9.0pt;text-align:right'>118,000</p>
  </td>
 </tr>
 <tr style='height:9.0pt'>
  <td width=504 valign=top style='width:5.25in;padding:0in 0in 0in 0in;
  height:9.0pt'>
  <p class=MsoNormal>Less
  current portion</p>
  </td>
  <td width=30 valign=top style='width:22.5pt;padding:0in 0in 0in 0in;
  height:9.0pt'>

  </td>
  <td width=102 style='width:76.5pt;padding:0in 0in 0in 0in;height:9.0pt'>
  <p class=MsoNormal align=right style='margin-right:4.5pt;text-align:right'><u>&nbsp; (36,000</u>)</p>
  </td>
 </tr>
 <tr style='height:9.0pt'>
  <td width=504 valign=top style='width:5.25in;padding:0in 0in 0in 0in;
  height:9.0pt'>
  <p class=MsoNormal style='margin-top:6.0pt'>Notes receivable, net of current
  portion</p>
  </td>
  <td width=30 valign=top style='width:22.5pt;padding:0in 0in 0in 0in;
  height:9.0pt'>

  </td>
  <td width=102 style='width:76.5pt;padding:0in 0in 0in 0in;height:9.0pt'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:9.0pt;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'><u>$&nbsp; 82,000</u></p>
  </td>
 </tr>
</table>

<p class=Level1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:45.35pt;text-align:justify;text-indent:0in'><u>&nbsp;</u></p>

<p class=MsoFooter align=center style='text-align:center'>F-13</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal><u>&nbsp;</u></p>

<p class=Level1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:45.35pt;text-align:justify'>4.&nbsp;&nbsp;&nbsp;&nbsp;
<u>Debt</u>:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=671
 style='margin-left:27.4pt;border-collapse:collapse'>
 <tr>
  <td width=569 valign=top style='width:427.1pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-top:12.0pt;margin-right:5.7pt;margin-bottom:
  0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'>Note payable
  with PFGI II, LLC with monthly payments of interest (prime rate +2%, with a
  minimum rate of 8%, at September 30, 2010 the rate was 8.0%) through December
  31, 2009.&nbsp; Beginning in January 2010 payments of principal and interest
  (8.65%, with a 25 year amortization) will be due monthly with a balloon
  payment of all unpaid principal due on December 31, 2012.&nbsp; The loan is
  secured by two Real Property Deeds of Trust, four Leasehold Deeds of Trust
  and <a name="OLE_LINK4">Security Agreements</a> and Assignment of Rents and
  Fixture Filings and two Security Agreements and Assignment of Rents and
  Fixture Filings related to those six corporate restaurants.&nbsp; The promissory
  note constitutes a line of credit which may be repaid but not re-advanced, at
  any time.</p>
  </td>
  <td width=12 valign=bottom style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:4.5pt'>$&nbsp;&nbsp; 2,500,000</p>
  </td>
 </tr>
 <tr>
  <td width=569 valign=top style='width:427.1pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=12 valign=bottom style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in 0in 0in 0in'>

  </td>
 </tr>
 <tr>
  <td width=569 valign=top style='width:427.1pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-right:5.7pt;text-align:justify'>Note payable
  with Wells Fargo Bank, NA with payments of principal and interest (prime rate
  less .5%) due monthly and the final payment due in April 2015.&nbsp; The loan is
  secured by four Security Agreements related to the furniture, fixtures and
  equipment of the four corporate restaurants. This loan is classified as current
  based on covenant violations as discussed below.</p>
  </td>
  <td width=12 valign=bottom style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:4.5pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 846,000</p>
  </td>
 </tr>
 <tr>
  <td width=569 valign=top style='width:427.1pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=12 valign=bottom style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in 0in 0in 0in'>

  </td>
 </tr>
 <tr>
  <td width=569 valign=top style='width:427.1pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='text-align:justify'>Related Party note payable with
  Golden Bridge, LLC with monthly payments of interest (10%) due monthly with
  all unpaid principal due July 10, 2010. The promissory note is subject to the
  terms of an Intercreditor Agreement between the Company, Golden Bridge, LLC
  and PFG1 II, LLC, and the deeds of trust and security agreements described in
  such Intercreditor Agreement. See note 7 below for further explanation.</p>
  </td>
  <td width=12 valign=top style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=90 valign=bottom style='width:67.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:4.5pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 185,000</p>
  </td>
 </tr>
 <tr>
  <td width=569 valign=top style='width:427.1pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=12 valign=top style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=90 style='width:67.5pt;padding:0in 0in 0in 0in'>

  </td>
 </tr>
 <tr>
  <td width=569 valign=top style='width:427.1pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='text-align:justify'>Unamortized note discount related to
  warrants issued in connection with the above note payable with Golden Bridge,
  LLC.</p>
  </td>
  <td width=12 valign=top style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=90 style='width:67.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:4.5pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (27,000)</p>
  </td>
 </tr>
 <tr>
  <td width=569 valign=top style='width:427.1pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='text-align:justify'>Other, various terms</p>
  </td>
  <td width=12 valign=top style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=90 style='width:67.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:4.5pt'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=569 valign=top style='width:427.1pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=12 valign=top style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=90 style='width:67.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:4.5pt'>&nbsp;&nbsp;&nbsp;&nbsp; 3,505,000</p>
  </td>
 </tr>
 <tr>
  <td width=569 valign=top style='width:427.1pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='text-align:justify'>Less current portion</p>
  </td>
  <td width=12 valign=top style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=90 style='width:67.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:4.5pt'><u>&nbsp;&nbsp;&nbsp; (1,027,000</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=569 valign=top style='width:427.1pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-top:6.0pt;text-align:justify'>Long term
  portion</p>
  </td>
  <td width=12 valign=top style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=90 style='width:67.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  0in;margin-left:4.5pt;margin-bottom:.0001pt'><u>$&nbsp;&nbsp; 2,478,000</u></p>
  </td>
 </tr>
</table>

<p class=MsoBodyTextIndent style='margin-top:6.0pt;margin-right:0in;margin-bottom:
0in;margin-left:4.3pt;margin-bottom:.0001pt'>In conjunction with the Wells Fargo
Bank term loan, the Company entered into a variable to fixed interest rate swap
agreement with Wells Fargo Bank effective May 9, 2007, with a notional amount
of $1,100,000, a pay rate of 7.77% and a receive rate based on the bank prime
rate less .50%. The swap agreement has an eight-year term and has the effect of
normalizing the effective interest rate at 7.77%. As of September 30, 2009, the
fair value of the contract was a loss of $87,000. The unrealized loss has been
recorded in interest expense.</p>

<p class=MsoBodyTextIndent style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:4.3pt'>As
of September 30, 2009, principal payments on debt become due as follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=360
 style='margin-left:100.5pt;border-collapse:collapse'>
 <tr>
  <td width=210 valign=top style='width:157.2pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>Years Ending</p>
  <p class=MsoNormal align=center style='text-align:center'>September
  30,</p>
  </td>
  <td width=12 valign=top style='width:9.3pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=138 valign=top style='width:103.2pt;padding:0in 0in 0in 0in'>

  </td>
 </tr>
 <tr>
  <td width=210 valign=top style='width:157.2pt;border:none;padding:0in 0in 0in 0in'>

  </td>
  <td width=12 valign=top style='width:9.3pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=138 valign=top style='width:103.2pt;padding:0in 0in 0in 0in'>

  </td>
 </tr>
 <tr>
  <td width=210 valign=top style='width:157.2pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>2010</p>
  </td>
  <td width=12 valign=top style='width:9.3pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=138 valign=top style='width:103.2pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.25in;
  margin-bottom:0in;margin-left:22.2pt;margin-bottom:.0001pt;text-align:right'>$&nbsp;&nbsp; 1,027,000</p>
  </td>
 </tr>
 <tr>
  <td width=210 valign=top style='width:157.2pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>2011</p>
  </td>
  <td width=12 valign=top style='width:9.3pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=138 valign=top style='width:103.2pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.25in;
  margin-bottom:0in;margin-left:22.2pt;margin-bottom:.0001pt;text-align:right'>32,000</p>
  </td>
 </tr>
 <tr>
  <td width=210 valign=top style='width:157.2pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>2012</p>
  </td>
  <td width=12 valign=top style='width:9.3pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=138 valign=top style='width:103.2pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.25in;
  margin-bottom:0in;margin-left:22.2pt;margin-bottom:.0001pt;text-align:right'>34,000</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=210 valign=top style='width:157.2pt;padding:0in 0in 0in 0in;
  height:.2in'>
  <p class=MsoNormal align=center style='text-align:center'>2013</p>
  </td>
  <td width=12 valign=top style='width:9.3pt;padding:0in 0in 0in 0in;
  height:.2in'>

  </td>
  <td width=138 valign=top style='width:103.2pt;padding:0in 0in 0in 0in;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.25in;
  margin-bottom:0in;margin-left:22.2pt;margin-bottom:.0001pt;text-align:right'><u>2,412,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=210 valign=top style='width:157.2pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=12 valign=top style='width:9.3pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=138 valign=top style='width:103.2pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.25in;
  margin-bottom:0in;margin-left:22.2pt;margin-bottom:.0001pt;text-align:right'><u>$3,505,000</u></p>
  </td>
 </tr>
</table>

<p class=MsoBodyTextIndent style='margin-top:6.0pt;margin-right:0in;margin-bottom:
0in;margin-left:4.3pt;margin-bottom:.0001pt'>In connection with the Wells Fargo
Bank loan, the Company has agreed to certain covenants, which include minimum
tangible net worth, a total liabilities to tangible net worth ratio and a fixed
charge coverage ratio, as defined in the agreement. As stated above in Note 2
as of September 30, 2008, the Company is not in compliance with its loan
covenants.</p>

<p class=MsoFooter align=center style='text-align:center'>F-14</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>












<p class=Level1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify;text-indent:-25.9pt'>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Other Accrued Liabilities</u>:</p>

<p class=MsoBodyTextIndent style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other
accrued liabilities consist of the following at September&nbsp;30, 2009:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=347
 style='margin-left:108.75pt;border-collapse:collapse'>
 <tr>
  <td width=217 valign=top style='width:162.9pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Wages
  and other employee benefits</p>
  </td>
  <td width=17 valign=top style='width:12.6pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=113 valign=top style='width:84.75pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=right style='margin-right:.25in;text-align:right'>$&nbsp;&nbsp; 225,000</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top style='width:162.9pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Taxes,
  other than income tax</p>
  </td>
  <td width=17 valign=top style='width:12.6pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=113 valign=top style='width:84.75pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=right style='margin-right:.25in;text-align:right'>491,000</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top style='width:162.9pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Other</p>
  </td>
  <td width=17 valign=top style='width:12.6pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=113 valign=top style='width:84.75pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=right style='margin-right:.25in;text-align:right'><u>214,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top style='width:162.9pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=17 valign=top style='width:12.6pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=113 valign=top style='width:84.75pt;padding:0in 0in 0in 0in'>

  </td>
 </tr>
 <tr>
  <td width=217 valign=top style='width:162.9pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=17 valign=top style='width:12.6pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=113 valign=top style='width:84.75pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=right style='margin-right:.25in;text-align:right'><u>$930,000</u></p>
  </td>
 </tr>
</table>

<p class=Level1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify;text-indent:-25.9pt'>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Commitments and Contingencies</u>:</p>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:26.15pt;text-align:justify'>The Company's office space, and the
land and buildings related to the Drive Thru restaurant facilities are
classified as operating leases and expire over the next 15 years. Some leases
contain escalation clauses over the lives of the leases. Most of the leases
contain one to three five-year renewal options at the end of the initial term.
Certain leases include provisions for additional contingent rent payments if
sales volumes exceed specified levels. The Company paid no material contingent
rentals during fiscal 2009 and 2008.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:26.15pt;text-align:justify'>Following is a summary of operating
lease activities:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=432
 style='margin-left:1.5in;border-collapse:collapse'>
 <tr>
  <td width=252 valign=top style='width:189.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=174 valign=top style='width:130.5pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>Year Ended
  September 30,</p>
  <p class=MsoNormal align=center style='text-align:center'>2009</p>
  </td>
 </tr>
 <tr>
  <td width=252 valign=top style='width:189.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=174 valign=top style='width:130.5pt;border:none;padding:0in 0in 0in 0in'>

  </td>
 </tr>
 <tr>
  <td width=252 valign=top style='width:189.0pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Minimum
  rentals</p>
  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=174 valign=top style='width:130.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-top:0in;margin-right:13.5pt;margin-bottom:
  0in;margin-left:13.5pt;margin-bottom:.0001pt'>$2,445,000</p>
  </td>
 </tr>
 <tr>
  <td width=252 valign=top style='width:189.0pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Less
  sublease rentals</p>
  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=174 valign=top style='width:130.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-top:0in;margin-right:13.5pt;margin-bottom:
  0in;margin-left:13.5pt;margin-bottom:.0001pt'>&nbsp;<u>&nbsp;&nbsp; (381,000</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=252 valign=top style='width:189.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=174 valign=top style='width:130.5pt;padding:0in 0in 0in 0in'>

  </td>
 </tr>
 <tr>
  <td width=252 valign=top style='width:189.0pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:.4in;text-indent:.4in'>Net rent
  paid</p>
  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=174 valign=top style='width:130.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-top:0in;margin-right:13.5pt;margin-bottom:
  0in;margin-left:13.5pt;margin-bottom:.0001pt'><u>$2,064,000</u></p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
12.0pt;margin-left:.3in;text-align:justify'>As of September 30, 2009, future
minimum rental commitments required under the Company's operating leases that
have initial or remaining noncancellable lease terms in excess of one year are
as follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=330
 style='margin-left:99.95pt;border-collapse:collapse'>

  <tr>
   <td width=198 valign=top style='width:148.5pt;padding:0in .95pt 0in .95pt'>
   <p class=MsoNormal align=center style='text-align:center;page-break-after:
   avoid'>Years
   Ending September 30, 2009</p>
   </td>
   <td width=6 valign=top style='width:4.5pt;padding:0in .95pt 0in .95pt'>

   </td>
   <td width=126 valign=top style='width:94.5pt;padding:0in .95pt 0in .95pt'>

   </td>
  </tr>

 <tr>
  <td width=198 valign=top style='width:148.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in .95pt 0in .95pt'>

  </td>
 </tr>
 <tr>
  <td width=198 valign=top style='width:148.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal style='page-break-after:avoid'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2010</p>
  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal align=right style='margin-right:12.55pt;text-align:right;
  page-break-after:avoid'>$2,223,000</p>
  </td>
 </tr>
 <tr>
  <td width=198 valign=top style='width:148.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal style='page-break-after:avoid'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2011</p>
  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal align=right style='margin-right:12.55pt;text-align:right;
  page-break-after:avoid'>2,062,000</p>
  </td>
 </tr>
 <tr>
  <td width=198 valign=top style='width:148.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal style='page-break-after:avoid'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2012</p>
  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal align=right style='margin-right:12.55pt;text-align:right;
  page-break-after:avoid'>1,951,000</p>
  </td>
 </tr>
 <tr>
  <td width=198 valign=top style='width:148.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal style='page-break-after:avoid'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2013</p>
  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal align=right style='margin-right:12.55pt;text-align:right;
  page-break-after:avoid'>1,887,000</p>
  </td>
 </tr>
 <tr>
  <td width=198 valign=top style='width:148.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal style='page-break-after:avoid'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2014</p>
  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal align=right style='margin-right:12.55pt;text-align:right;
  page-break-after:avoid'>1,779,000</p>
  </td>
 </tr>
 <tr>
  <td width=198 valign=top style='width:148.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal style='page-break-after:avoid'>&nbsp;&nbsp; Thereafter</p>
  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal align=right style='margin-right:12.55pt;text-align:right;
  page-break-after:avoid'><u>9,242,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=198 valign=top style='width:148.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal align=right style='margin-right:12.55pt;text-align:right;
  page-break-after:avoid'>19,144,000</p>
  </td>
 </tr>
 <tr>
  <td width=198 valign=top style='width:148.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal style='page-break-after:avoid'>Less sublease rentals</p>
  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal align=right style='margin-right:8.05pt;text-align:right;
  page-break-after:avoid'><u>&nbsp;
  (2,645,000</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=198 valign=top style='width:148.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in .95pt 0in .95pt'>

  </td>
 </tr>
 <tr>
  <td width=198 valign=top style='width:148.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in .95pt 0in .95pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in .95pt 0in .95pt'>
  <p class=MsoNormal align=right style='margin-right:12.55pt;text-align:right;
  page-break-after:avoid'><u>$16,499,000</u></p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:.3in;text-align:justify'>The Company is contingently liable on
several ground leases that have been subleased or assigned to franchisees. The
subleased and assigned leases expire between 2010 and 2024. Currently we have
not been notified nor are we aware of any leases in default by the franchisees,
however there can be no assurance that there will not be in the future which
could have a material effect on our future operating results.</p>

<p class=Level1 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.3in;text-align:justify;text-indent:-.3in'>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Financing Transactions</u>:</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.3in;text-align:justify'>On March 1, 2008, we acquired the assets of two
restaurants from an existing franchisee for a total purchase price of
$1,330,000, including the land, site improvements, building and equipment for
one restaurant and site improvements, building and equipment on one
restaurant.&nbsp; The purchase price was funded primarily from cash on hand of
$272,000 and $849,000 in net proceeds from a simultaneous sale-leaseback
transaction to a third party investor involving the land, building and
improvements of one of the restaurants acquired.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.3in;text-align:justify'>As additional consideration and accounting in the
acquisition, notes receivable from the franchisee of $250,000 were forgiven,
and a deferred gain of $26,000 was written off. The deferred gain was related
to a prior sale to the franchisee of one of the restaurants acquired. We did
not record a gain or loss related to this acquisition. The financial results of
the two restaurants have been included in our financial results from the
acquisition date forward.</p>

<p class=MsoFooter align=center style='text-align:center'>F-15</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.3in;text-align:justify'>The acquisition of the two restaurants was
accounted for using the purchase method as defined in FASB ASC 805-10, Business
Combinations. The purchase price was allocated as follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:41.4pt;border-collapse:collapse'>
 <tr>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNoSpacing style='text-align:justify'>Current assets
  net of current liabilities</p>
  </td>
  <td width=138 valign=top style='width:103.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNoSpacing align=right style='margin-right:17.1pt;text-align:right'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  14,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNoSpacing style='text-align:justify'>Property and
  equipment&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=138 valign=top style='width:103.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNoSpacing align=right style='margin-right:17.1pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,316,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNoSpacing style='text-align:justify'>Total purchase
  price</p>
  </td>
  <td width=138 valign=top style='width:103.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNoSpacing align=right style='margin-right:17.1pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp; 1,330,000</u></p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:.3in;text-align:justify'>The sale-leaseback transaction was
entered into simultaneously with the acquisition and involved selling the land,
building and improvements of one of the acquired restaurants for net proceeds
of $849,000. The sale-leaseback was the funding vehicle for the purchase of the
two restaurants and was not used to raise cash for the Company or increase our
liquidity. The assets sold in the sale-leaseback transaction were never
recorded in our financial statements as the long term lease entered into does
not meet any of the criteria for a capital lease and therefore qualifies as an
operating lease, as defined in FASB ASC 840-10, Leases. After the
sale-leaseback transaction was accounted for, it resulted in $476,000 in fixed
assets and $14,000 in current assets recorded on our financial statements. We
believe the $476,000 represents the fair value of the net assets acquired
(after completion of the simultaneous sale-leaseback transaction) consisting of
furniture, fixtures and equipment in two restaurants and the site improvements
and building in one restaurant.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:.3in;text-align:justify'>In July 2008, we entered into a $2,500,000
promissory note with an unrelated third party (PFGI II, LLC) and amended that
note on April 20, 2009 extending the maturity to July 10, 2010 and again on
December 14, 2009 extending the maturity to December 31, 2012.&nbsp; The promissory
note originally constituted a revolving line-of-credit for the development of
new restaurants which was advanced and repaid on a monthly basis from time to
time.&nbsp; The promissory note now constitutes a term loan with monthly payments of
principal and interest.&nbsp; The loan is secured by separate leasehold deeds of
trust and security agreements related to six company-owned restaurants and
first deeds of trust on two real properties funded by the line of credit. The
total outstanding balance on the line of credit was $2,500,000 at September 30,
2009.&nbsp; Of the $2,500,000 outstanding balance, $1,595,000 is related to the
construction of one company-owned restaurant in Firestone, Colorado that opened
in October 2008. The fully developed restaurant is currently being marketed in
the sale-leaseback market.&nbsp; The remaining balance is related to the purchase,
entitlement and other development fees on a parcel of land in Aurora, Colorado
that will be either developed into a company-owned restaurant, leased or sold.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.3in;text-align:justify'>On April 20, 2009 as reported on form 8-K, Good
Times Restaurants Inc. (the &quot;Company&quot;) and Good Times Drive Thru Inc. (&quot;GTDT&quot;),
a wholly owned subsidiary of the Company, entered into a loan agreement with
Golden Bridge, LLC (&quot;Golden Bridge&quot;), pursuant to which Golden Bridge made a
loan of $185,000 (the &quot;Golden Bridge Loan&quot;) to GTDT to be used for restaurant
marketing and other working capital costs.&nbsp; Eric Reinhard, Ron Goodson, David
Grissen, Richard Stark, and Alan Teran, who are all members of the Company's
Board of Directors and stockholders of the Company, are the sole members of
Golden Bridge.&nbsp; Eric Reinhard is the sole manager of Golden Bridge.&nbsp; The
Company's and GTDT's obtaining of the Golden Bridge Loan from Golden Bridge and
related transactions were duly approved in advance by the Company's Board of
Directors by the affirmative vote of members thereof who did not have an
interest in the transaction.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.3in;text-align:justify'>The Golden Bridge Loan is evidenced by a
promissory note dated April 20, 2009 (the &quot;Note&quot;) made by the Company and GTDT,
as co-makers, and bears interest at a rate of 10% per annum on the unpaid
principal balance.&nbsp; The Note provides for monthly interest payments and will
mature and be due and payable in full on July 10, 2010.&nbsp; The commitment fee for
the Loan is $3,700.&nbsp; The Golden Bridge Loan Agreement contains customary event
of default provisions and a cross-default provision with respect to the loan
agreement for the PFGI II, LLC loan (as described above).</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.3in;text-align:justify'>The Golden Bridge Loan Agreement and the Golden
Bridge Note are subject to the terms of an intercreditor agreement dated April
20, 2009 (the &quot;Intercreditor Agreement&quot;), among the Company, GTDT, Golden
Bridge and PFGI II, LLC (&quot;PFGI&quot;).&nbsp; As previously reported by the Company, GTDT
currently has a $2,500,000 revolving line of credit with PFGI (the &quot;PFGI
Loan&quot;), which was scheduled to mature on July 10, 2009, under which $2,500,000
was outstanding as of April 20, 2009.&nbsp; Under the Intercreditor Agreement, PFGI
and Golden Bridge agreed that, upon any payments of principal or interest on
the Loan or the PFGI Loan by GTDT, PFGI and Golden Bridge shall each be entitled
to its pro rata share of such payments in the amount of 93.1% for PFGI and 6.9%
for Golden Bridge.&nbsp; The Intercreditor Agreement also provides that GTDT and the
Company may prepay the Loan in whole or in part with the prior consent of PFGI,
and that any other indebtedness of the Company or GTDT to PFGI or Golden Bridge
shall be subordinate in payment and lien priority to the Loan and the PFGI Loan
to the extent of the proceeds of the collateral.&nbsp; Under the Intercreditor
Agreement, all money received from any foreclosure on the collateral securing
the PFGI Loan shall be applied to PFGI and Golden Bridge for their expenses
related to such event and then on a pari passu basis to PFGI and Golden Bridge
in accordance with their respective pro rata shares.</p>

<p class=MsoFooter align=center style='text-align:center'>F-16</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.3in;text-align:justify'>Prior to the closing of the Golden Bridge Loan,
borrowings under the PFGI Loan were secured by GTDT's leasehold estates and
business assets with respect to certain of GTDT's restaurants located in
Boulder, Adams, Jefferson and Larimer counties in Colorado and first deeds of
trust on real property in Arapahoe and Weld counties in Colorado developed
under the PFGI Loan.&nbsp; In connection with PFGI's entry into the Intercreditor
Agreement, GTDT and the Company entered into a first amendment to the amended
and restated promissory note dated April 20, 2009 (the &quot;PFGI Note Amendment&quot;),
which extended the maturity date of the PFGI Loan until July 10, 2010.&nbsp;
Effective January 1, 2010, the maturity of the PFGI Loan was further extended
to December 31, 2012 and the Company will enter into an Amended and Restated
Promissory Note.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:.3in;text-align:justify;line-height:97%'>In
connection with the Golden Bridge Loan, the Company issued a three-year warrant
dated April 20, 2009 (the &quot;Warrant&quot;) to Golden Bridge which provides that
Golden Bridge may at any time from April 20, 2009 until April 20, 2012 purchase
up to 92,500 shares of the Company's common stock (the &quot;Warrant Shares&quot;) at an
exercise price of $1.15 per share.&nbsp; The number of Warrant Shares and the
exercise price are subject to customary antidilution adjustments upon the
occurrence of any stock dividends, stock splits, reverse stock splits,
recapitalizations, reclassifications, stock combinations or similar events. The
fair value of the warrants issued was determined to be $42,000 with the
following assumptions; 1) risk free interest rate of 1.27%, 2) an expected life
of 3 years, and 3) an expected dividend yield of zero. The fair value of
$42,000 was charged to the note discount and credited to Additional Paid in
Capital. The note discount will be amortized over the term of fourteen months
and charged to interest expense.</p>

<p class=Level1 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.3in;text-align:justify;text-indent:-.3in'>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Managed Limited Partnerships</u>:</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.3in;text-align:justify'>Drive Thru is the general partner of two limited
partnerships that were formed to develop Drive Thru restaurants.&nbsp; Limited
partner contributions have been used to construct new restaurants.&nbsp; Drive Thru,
as a general partner, generally receives an allocation of approximately 51% of
the profit and losses and a fee for its management services.&nbsp; The limited
partners' equity has been recorded as a minority interest in the accompanying
consolidated financial statements.</p>

<p class=Level1 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.3in;text-align:justify;text-indent:-.3in;page-break-after:avoid'>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Income Taxes</u>:</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.3in;text-align:justify'>Deferred tax assets (liabilities) are comprised of
the following at September 30:</p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width=577
 style='margin-left:1.0in;border-collapse:collapse;border:none'>
 <tr>
  <td width=228 valign=top style='width:171.0pt;border:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>

  </td>
  <td width=169 colspan=3 valign=top style='width:126.65pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in .65pt 0in .65pt'>
  <h3>2009</h3>
  </td>
  <td width=180 colspan=3 valign=top style='width:135.0pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in .65pt 0in .65pt'>
  <h3>2008</h3>
  </td>
 </tr>
 <tr>
  <td width=228 valign=top style='width:171.0pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in .65pt 0in .65pt'>

  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <h3>Current</h3>
  </td>
  <td width=90 valign=top style='width:67.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <h3>Long Term</h3>
  </td>
  <td width=90 colspan=2 valign=top style='width:67.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <h3>Current</h3>
  </td>
  <td width=90 valign=top style='width:67.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <h3>Long Term</h3>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr>
  <td width=228 valign=top style='width:171.0pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal style='margin-top:6.0pt'>Deferred assets (liabilities):</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>

  </td>
  <td width=90 colspan=2 valign=top style='width:67.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>

  </td>
  <td width=90 valign=top style='width:67.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>

  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr style='height:.1in'>
  <td width=228 valign=top style='width:171.0pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in .65pt 0in .65pt;height:.1in'>
  <p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
  0in;margin-left:21.85pt;margin-bottom:.0001pt;text-indent:-9.0pt'>Tax effect
  of net operating loss carry-forward</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt;height:.1in'>
  <p class=MsoNormal>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt;height:.1in'>
  <p class=MsoNormal>$&nbsp;&nbsp;&nbsp; 2,292,000</p>
  </td>
  <td width=90 colspan=2 valign=bottom style='width:67.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt;height:.1in'>
  <p class=MsoNormal>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt;height:.1in'>
  <p class=MsoNormal>$&nbsp;&nbsp;&nbsp; 1,886,000</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr>
  <td width=228 valign=top style='width:171.0pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal style='margin-left:21.85pt;text-indent:-9.0pt'>Partnership
  basis difference</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 143,000</p>
  </td>
  <td width=90 colspan=2 valign=bottom style='width:67.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 124,000</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr>
  <td width=228 valign=top style='width:171.0pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal style='margin-left:21.85pt;text-indent:-9.0pt'>Deferred
  revenue</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 172,000</p>
  </td>
  <td width=90 colspan=2 valign=bottom style='width:67.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 183,000</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr>
  <td width=228 valign=top style='width:171.0pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal style='margin-left:21.85pt;text-indent:-9.0pt'>Property and
  equipment basis differences</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 117,000</p>
  </td>
  <td width=90 colspan=2 valign=bottom style='width:67.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 57,000</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr>
  <td width=228 valign=top style='width:171.0pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal style='margin-left:21.85pt;text-indent:-9.0pt'>Other
  accrued liability difference</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48,000</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36,000</u></p>
  </td>
  <td width=90 colspan=2 valign=bottom style='width:67.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7,000</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr>
  <td width=228 valign=top style='width:171.0pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>Net
  deferred tax assets</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48,000</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,760,000</p>
  </td>
  <td width=90 colspan=2 valign=bottom style='width:67.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7,000</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,250,000</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr>
  <td width=228 valign=top style='width:171.0pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>Less
  valuation allowance*</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (48,000</u>)</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>&nbsp;&nbsp;&nbsp;&nbsp; (2,760,000</u>)</p>
  </td>
  <td width=90 colspan=2 valign=bottom style='width:67.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7,000</u>)</p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>&nbsp;&nbsp;&nbsp;&nbsp; (2,250,000</u>)</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr>
  <td width=228 valign=top style='width:171.0pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in .65pt 0in .65pt'>

  </td>
  <td width=78 valign=bottom style='width:58.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>&nbsp;</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>&nbsp;</u></p>
  </td>
  <td width=90 colspan=2 valign=bottom style='width:67.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>&nbsp;</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>&nbsp;</u></p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr>
  <td width=228 valign=top style='width:171.0pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal>Net
  deferred tax assets</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=90 colspan=2 valign=bottom style='width:67.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=90 valign=bottom style='width:67.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in .65pt 0in .65pt'>
  <p class=MsoNormal><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p class='MsoNormal'>&nbsp;</td>
 </tr>
 <tr height=0>
  <td width=228 style='border:none'></td>
  <td width=78 style='border:none'></td>
  <td width=90 style='border:none'></td>
  <td width=1 style='border:none'></td>
  <td width=89 style='border:none'></td>
  <td width=90 style='border:none'></td>
  <td width=1 style='border:none'></td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:40.5pt;text-align:justify;text-indent:-13.5pt'>*&nbsp;&nbsp; The
valuation allowance increased by $551,000 during the year ended
September&nbsp;30, 2009.</p>

<p class=MsoNormal style='margin-left:26.15pt;text-align:justify'>The Company
has net operating loss carry-forwards of approximately $6,012,000 for income
tax purposes which expire from 2010 through 2029.&nbsp;
The use of these net operating loss carry-forwards may be restricted due to changes
in ownership.</p>

<p class=MsoFooter align=center style='text-align:center'>F-17</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>












<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:26.15pt;text-align:justify'>Total income tax expense for the years
ended 2009 and 2008 differed from the amounts computed by applying the U.S.
Federal statutory tax rates to pre-tax income as follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=450
 style='margin-left:63.0pt;border-collapse:collapse'>
 <tr>
  <td width=252 valign=top style='width:189.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=12 valign=top style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=96 valign=top style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center;page-break-after:
  avoid'>2009</p>
  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=84 valign=top style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center;page-break-after:
  avoid'>2008</p>
  </td>
 </tr>
 <tr>
  <td width=252 valign=top style='width:189.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=12 valign=top style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=96 valign=top style='width:1.0in;border:none;padding:0in 0in 0in 0in'>

  </td>
  <td width=6 valign=top style='width:4.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=84 valign=top style='width:63.0pt;border:none;padding:0in 0in 0in 0in'>

  </td>
 </tr>
 <tr>
  <td width=252 valign=top style='width:189.0pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:19.05pt;text-indent:-19.05pt;
  page-break-after:avoid'>Total
  expense (benefit) computed by applying the U.S. Statutory rate (35%)</p>
  </td>
  <td width=12 valign=top style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'>$ (576,000)</p>
  </td>
  <td width=6 valign=bottom style='width:4.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=84 valign=bottom style='width:63.0pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'>$ (375,000)</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=252 valign=bottom style='width:189.0pt;padding:0in 0in 0in 0in;
  height:.2in'>
  <p class=MsoNormal style='page-break-after:avoid'>State income tax, net of
  federal tax benefit</p>
  </td>
  <td width=12 valign=bottom style='width:9.0pt;padding:0in 0in 0in 0in;
  height:.2in'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in 0in 0in 0in;
  height:.2in'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'>&nbsp;&nbsp;(50,000)</p>
  </td>
  <td width=6 valign=bottom style='width:4.5pt;padding:0in 0in 0in 0in;
  height:.2in'>

  </td>
  <td width=84 valign=bottom style='width:63.0pt;padding:0in 0in 0in 0in;
  height:.2in'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'>&nbsp;&nbsp;(32,000)</p>
  </td>
 </tr>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='page-break-after:avoid'>Effect of change in valuation
  allowance</p>
  </td>
  <td width=12 valign=bottom style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'>&nbsp;&nbsp; 552,000</p>
  </td>
  <td width=6 valign=bottom style='width:4.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=84 valign=bottom style='width:63.0pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'>&nbsp;&nbsp; 144,000</p>
  </td>
 </tr>
 <tr style='height:.25in'>
  <td width=252 valign=bottom style='width:189.0pt;padding:0in 0in 0in 0in;
  height:.25in'>
  <p class=MsoNormal style='page-break-after:avoid'>Change in partnership basis</p>
  </td>
  <td width=12 valign=bottom style='width:9.0pt;padding:0in 0in 0in 0in;
  height:.25in'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in 0in 0in 0in;
  height:.25in'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=6 valign=bottom style='width:4.5pt;padding:0in 0in 0in 0in;
  height:.25in'>

  </td>
  <td width=84 valign=bottom style='width:63.0pt;padding:0in 0in 0in 0in;
  height:.25in'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'>&nbsp;&nbsp; 240,000</p>
  </td>
 </tr>
 <tr style='height:15.75pt'>
  <td width=252 valign=bottom style='width:189.0pt;padding:0in 0in 0in 0in;
  height:15.75pt'>
  <p class=MsoNormal style='page-break-after:avoid'>Permanent differences</p>
  </td>
  <td width=12 valign=bottom style='width:9.0pt;padding:0in 0in 0in 0in;
  height:15.75pt'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in 0in 0in 0in;
  height:15.75pt'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'>&nbsp;&nbsp;&nbsp; 68,000</p>
  </td>
  <td width=6 valign=bottom style='width:4.5pt;padding:0in 0in 0in 0in;
  height:15.75pt'>

  </td>
  <td width=84 valign=bottom style='width:63.0pt;padding:0in 0in 0in 0in;
  height:15.75pt'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'>&nbsp;&nbsp;&nbsp; 57,000</p>
  </td>
 </tr>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='page-break-after:avoid'>Other</p>
  </td>
  <td width=12 valign=bottom style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6,000</u></p>
  </td>
  <td width=6 valign=bottom style='width:4.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=84 valign=bottom style='width:63.0pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'><u>&nbsp; ( 34,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=12 valign=bottom style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in 0in 0in 0in'>

  </td>
  <td width=6 valign=bottom style='width:4.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=84 valign=bottom style='width:63.0pt;padding:0in 0in 0in 0in'>

  </td>
 </tr>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='page-break-after:avoid'>Provision for income taxes</p>
  </td>
  <td width=12 valign=bottom style='width:9.0pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=6 valign=bottom style='width:4.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=84 valign=bottom style='width:63.0pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:9.0pt;page-break-after:avoid'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
 </tr>
</table>

<p class=Level1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.95pt;text-align:justify;text-indent:-30.95pt;page-break-after:
avoid'>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Related Parties</u>:</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.25pt;text-align:justify'>The Erie County Investment Company
(owner of 99% of The Bailey Company) is a substantial holder of our common
stock and has certain contractual rights to elect up to three members of the
Company's board of directors under the Series B Convertible Preferred Stock
Agreements entered into in February, 2005.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.25pt;text-align:justify'>The Company leases office space from
The Bailey Company under a lease agreement which expired in September 2009 and
is currently leasing the space on a month to month basis.&nbsp; Rent paid to them in
fiscal 2009 and 2008 for office space was $55,000 and $55,000, respectively.&nbsp; </p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.25pt;text-align:justify'>The Bailey Company is also the owner
of one franchised Good Times Drive Thru restaurant which is located in
Loveland, Colorado and was the owner of one franchised restaurant in Thornton,
Colorado which was closed in October 2009. The Bailey Company has entered into
two franchise and management agreements with us, franchise royalties and
management fees paid under those agreements totaled approximately $78,000 and $94,000
for the fiscal years ending September 30, 2009 and 2008, respectively. Amounts
due from The Bailey Company in regards to these agreements at September 30, 2009
and 2008 were $18,000 in each year.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.25pt;text-align:justify'>In April 2009 the Company entered into
a loan agreement with Golden Bridge, LLC (&quot;Golden Bridge&quot;), pursuant to which
Golden Bridge made a loan of $185,000 to the Company.&nbsp; Eric Reinhard, Ron
Goodson, David Grissen, Richard Stark, and Alan Teran, who are all members of
the Company's Board of Directors and stockholders of the Company, are the sole
members of Golden Bridge.&nbsp; Eric Reinhard is the sole manager of Golden Bridge.&nbsp; The Company's obtaining of the Loan from Golden Bridge and related
transactions were duly approved in advance by the Company's Board of Directors
by the affirmative vote of members thereof who did not have an interest in the
transaction.&nbsp;&nbsp; Total interest and commitment fees paid under this
agreement were approximately $12,000 for fiscal 2009. The amount due to related
parties under this agreement that is included in notes payable was $185,000 at September
30, 2009. See Note 7 above for the terms of the loan.&nbsp;</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Fair
Value of Financial Instruments:</u></p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.25pt;text-align:justify'>The Company adopted the provisions of
FASB ASC 820, Fair Value Measurements and Disclosures, effective October 1,
2008. FASB ASC 820 defines fair value, establishes a framework for measuring fair
value under generally accepted accounting principles and enhances disclosures
about fair value measurements.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.25pt;text-align:justify'>Fair value is defined as the price
that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.
Valuation techniques used to measure fair value, as required by Topic 820 of
the FASB ASC, must maximize the use of observable inputs and minimize the use
of unobservable inputs.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.05pt;text-align:justify'>FASB ASC 820 defines three levels of
inputs that may be used to measure fair value and requires that the assets or
liabilities carried at fair value be disclosed by the input level under which
they were valued. The input levels defined under FASB ASC 820 are as follows:</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:30.25pt;text-align:justify'>Level 1: Quoted market prices in
active markets for identical assets and liabilities.</p>

<p class=MsoFooter align=center style='text-align:center'>F-18</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.25pt;text-align:justify'>Level 2: Observable inputs other than
defined in Level 1, such as quoted prices for similar assets or liabilities;
quoted prices in markets that are not active; or other inputs that are
observable or can be corroborated by observable market data for substantially
the full term of the assets or liabilities.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.25pt;text-align:justify'>Level 3: Unobservable inputs that are
not corroborated by observable market data.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.25pt;text-align:justify'>The following table summarizes
financial assets and liabilities that are measured at fair value on a recurring
basis as of September 30, 2009:</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:67.5pt;text-align:justify'><u>Level 2</u></p>

<p class=MsoNormal style='margin-left:67.5pt;text-align:justify'>Interest Rate
Swap liability&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $87,000</p>

<p class=Level1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:.5in;text-align:justify'>12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Stockholders' Equity</u>:</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.6pt;text-align:justify'><u>Preferred Stock</u> - The Company
has the authority to issue 5,000,000 shares of preferred stock.&nbsp; The Board of
Directors has the authority to issue such preferred shares in series and
determine the rights and preferences of the shares as may be determined by the
Board of Directors.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.6pt;text-align:justify'><u>Common Stock Dividend Restrictions</u> - As long as
at least two-thirds of the shares of common stock into which the Series B
Preferred Stock was converted remains held by the former holders of such
converted Series B Preferred Stock, without the written consent or affirmative
vote of the holders of three-quarters of the then outstanding votes of the
shares of the Series B Preferred Stock and the shares of the common stock, the
Company cannot institute any payment of cash dividends or other distributions
on any shares of common stock.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.95pt;text-align:justify'><u>Stock Option Plans</u> - The Company
has an Omnibus Equity Incentive Compensation Plan (the &quot;2008&nbsp; Plan&quot;), approved
by shareholders in fiscal 2008, which is the successor equity compensation plan
to the Company's 2001 Stock Option Plan (the &quot;2001&nbsp; Plan&quot;). &nbsp;As of September
30, 2009, 172,841 shares were available for future grants of nonqualified
stock options, incentive stock options, stock appreciation rights, restricted
stock, restricted stock units, performance shares, performance units and
stock-based awards.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.95pt;text-align:justify'>The 2008 Plan serves as the successor
to our 2001 Plan, as amended (the &quot;Predecessor Plan&quot;), and no further awards
shall be made under the Predecessor Plan from and after the effective date of
the 2008 Plan.&nbsp; All outstanding awards under the Predecessor Plan immediately
prior to the effective date of the 2008 Plan shall be incorporated into the
2008 Plan and shall accordingly be treated as awards under the 2008 Plan.&nbsp;
However, each such award shall continue to be governed solely by the terms and
conditions of the instrument evidencing such grant or issuance, and, except as
otherwise expressly provided in the 2008 Plan or by the Committee that
administers the 2008 Plan, no provision of the 2008 Plan shall affect or
otherwise modify the rights or obligations of holders of such incorporated
awards.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:29.5pt;text-align:justify;text-indent:-.05in'>&nbsp;Following the
guidance of FASB ASC 718-10-30, Compensation - Stock Compensation, stock-based
compensation is measured at the grant date, based on the calculated fair value
of the award, and is recognized as an expense over the requisite employee
service period (generally the vesting period of the grant).</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>The Company measures the compensation
cost associated with share-based payments by estimating the fair value of stock
options as of the grant date using the Black-Scholes option pricing model. The
Company believes that the valuation technique and the approach utilized to
develop the underlying assumptions are appropriate in calculating the fair
values of the Company's stock options granted during fiscal 2009. Estimates of
fair value are not intended to predict actual future events or the value
ultimately realized by the employees who receive equity awards.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>Net income for the fiscal years ended
September 30, 2009 and 2008 includes $77,000 and $90,000, respectively, of
compensation costs related to our stock-based compensation arrangements.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>During the fiscal year ended September
30, 2009, we granted 12,000 non-statutory stock options and 68,400 incentive
stock options both with exercise prices of $1.47. The per share weighted
average fair value was $.97 for both non-statutory stock option grants and
incentive stock option grants.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>In addition to the exercise and grant
date prices of the awards, certain weighted average assumptions that were used
to estimate the fair value of stock option grants are listed in the following
table:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=630
 style='margin-left:27.0pt;border-collapse:collapse'>
 <tr>
  <td width=222 valign=top style='width:166.5pt;padding:0in 0in 0in 0in'>

  </td>
  <td width=234 valign=top style='width:175.5pt;border:none;border-bottom:solid black 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>Incentive
  Stock Options</p>
  </td>
  <td width=174 valign=top style='width:130.5pt;border:none;border-bottom:solid black 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>Non-Statutory
  Stock Options</p>
  </td>
 </tr>
 <tr>
  <td width=222 valign=top style='width:166.5pt;background:#EEECE1;padding:
  0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:4.5pt'>Expected term (years)</p>
  </td>
  <td width=234 valign=top style='width:175.5pt;background:#EEECE1;padding:
  0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>6.5</p>
  </td>
  <td width=174 valign=top style='width:130.5pt;background:#EEECE1;padding:
  0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>6.7</p>
  </td>
 </tr>
 <tr>
  <td width=222 valign=top style='width:166.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:4.5pt'>Expected volatility</p>
  </td>
  <td width=234 valign=top style='width:175.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>70%</p>
  </td>
  <td width=174 valign=top style='width:130.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>67%</p>
  </td>
 </tr>
 <tr>
  <td width=222 valign=top style='width:166.5pt;background:#EEECE1;padding:
  0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:4.5pt'>Risk-free interest rate</p>
  </td>
  <td width=234 valign=top style='width:175.5pt;background:#EEECE1;padding:
  0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>2.8%</p>
  </td>
  <td width=174 valign=top style='width:130.5pt;background:#EEECE1;padding:
  0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>2.8%</p>
  </td>
 </tr>
 <tr>
  <td width=222 valign=top style='width:166.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-left:4.5pt'>Expected dividends</p>
  </td>
  <td width=234 valign=top style='width:175.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>0</p>
  </td>
  <td width=174 valign=top style='width:130.5pt;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'>0</p>
  </td>
 </tr>
</table>



<p class=MsoFooter align=center style='text-align:center'>F-19</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>












<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>We estimate expected volatility based
on historical weekly price changes of our common stock for a period equal to
the current expected term of the options. The risk-free interest rate is based
on the United States treasury yields in effect at the time of grant
corresponding with the expected term of the options. The expected option term
is the number of years we estimate that options will be outstanding prior to
exercise considering vesting schedules and our historical exercise patterns.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>FASB ASC 718-10-30 requires the cash
flows resulting from the tax benefits for tax deductions in excess of the
compensation expense recorded for those options (excess tax benefits) to be
classified as financing cash flows. These excess tax benefits were $0 for the
fiscal years ended September 30, 2009 and 2008.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>A summary of stock option activity
under our share-based compensation plan for the fiscal year ended September 30,
2009 is presented in the following table:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=636
 style='margin-left:.45in;border-collapse:collapse'>
 <tr style='height:1.0in'>
  <td width=162 valign=bottom style='width:121.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:1.0in'>

  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:1.0in'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:12.6pt;
  margin-bottom:0in;margin-left:30.1pt;margin-bottom:.0001pt;text-align:center'>Options</p>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:1.0in'>
  <p class=MsoNormal align=center style='text-align:center'>Weighted
  Average Exercise Price</p>
  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:1.0in'>
  <p class=MsoNormal align=center style='margin-left:-.7pt;text-align:center'>Weighted
  Average Remaining Contractual Life (Yrs.)</p>
  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:1.0in'>
  <p class=MsoNormal align=center style='margin-left:-.5pt;text-align:center'>Aggregate
  Intrinsic Value</p>
  </td>
 </tr>
 <tr>
  <td width=162 valign=bottom style='width:121.5pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Outstanding-beg
  of year</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:12.95pt;margin-bottom:.0001pt;text-align:right'>353,942</p>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'>$4.04</p>
  </td>
  <td width=108 valign=bottom style='width:81.0pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=162 valign=bottom style='width:121.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Granted</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:12.95pt;margin-bottom:.0001pt;text-align:right'>&nbsp;80,400</p>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'>$1.47</p>
  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=162 valign=bottom style='width:121.5pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Exercised</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:12.95pt;margin-bottom:.0001pt;text-align:right'>0</p>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=162 valign=bottom style='width:121.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Forfeited</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.95pt;margin-bottom:.0001pt;text-align:right'>(15,160)</p>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'>$4.90</p>
  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=162 valign=bottom style='width:121.5pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Expired</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.95pt;margin-bottom:.0001pt;text-align:right'>(39,951)</p>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'>$3.21</p>
  </td>
  <td width=108 valign=bottom style='width:81.0pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=162 valign=bottom style='width:121.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Outstanding
  Sept 30, 2009</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:12.95pt;margin-bottom:.0001pt;text-align:right'>379,231</p>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'>$3.55</p>
  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-left:-.5pt;text-align:center'>5.6</p>
  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:26.1pt;
  margin-bottom:0in;margin-left:-.5pt;margin-bottom:.0001pt;text-align:right'>$0</p>
  </td>
 </tr>
 <tr>
  <td width=162 valign=bottom style='width:121.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=132 valign=bottom style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=162 valign=bottom style='width:121.5pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Exercisable
  Sept 30, 2009</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:12.95pt;margin-bottom:.0001pt;text-align:right'>271,163</p>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'>$3.68</p>
  </td>
  <td width=108 valign=bottom style='width:81.0pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-left:-.5pt;text-align:center'>4.4</p>
  </td>
  <td width=108 valign=bottom style='width:81.0pt;background:#EEECE1;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:26.1pt;
  margin-bottom:0in;margin-left:-.5pt;margin-bottom:.0001pt;text-align:right'>$0</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:26.15pt;margin-bottom:.0001pt;text-align:justify'>As of
September 30, 2009, the total remaining unrecognized compensation cost related
to unvested stock-based arrangements was $106,000 and is expected to be
recognized over a weighted average period of 2.08 years.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:25.9pt;text-align:justify'>The total intrinsic value of stock
options exercised during the fiscal year ended September 30, 2009 was $0. &nbsp;Cash
received from stock option exercises for the fiscal year ended September 30,
2009 was $0.</p>

<p class=Level1 style='margin-bottom:6.0pt;text-align:justify'>13.&nbsp;&nbsp;&nbsp; <u>Retirement Plan</u>:</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.25pt;text-align:justify'>The Company has a 401(k) profit
sharing plan (the &quot;Plan&quot;).&nbsp; Eligible employees may make voluntary contributions
to the Plan, which may be matched by the Company, in an amount equal to 25% of
the employee's contribution up to 6% of their compensation.&nbsp; The amount of
employee contributions is limited as specified in the Plan. The Company may, at
its discretion, make additional contributions to the Plan or change the matching
percentage.&nbsp; The Company made matching contributions of $0 and $30,000 in
fiscal 2009 and fiscal 2008 respectively.&nbsp; All matching contributions are made
in cash.</p>

<p class=Level1 style='margin-bottom:6.0pt;text-align:justify'>14.&nbsp;&nbsp;&nbsp; <u>Subsequent Events</u>:</p>

<p class=Level1 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:30.25pt;text-align:justify;text-indent:0in'>In December, 2009 the Company
entered into an agreement to amend the PFGI II Loan.&nbsp; The maturity date was
extended to December 31, 2012, the interest rate was increased to 8.65% and
monthly payments of principal and interest will be payable beginning January
31, 2010, based upon a 25 year amortization prior to maturity.&nbsp; In connection
with the agreement the Company also agreed to issue $125,000 of warrants
exercisable at the average market price during the twenty days prior to January
2, 2010. </p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:30.25pt;text-align:justify'>Subsequent events have been evaluated
through December 28, 2009, the date the consolidated financial statements were
available to be issued. </p>



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<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:1.0in;text-align:justify;text-indent:-1.0in'><b>Item 9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes
In and Disagreements with Accountants on Accounting and Financial Disclosure.</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;text-align:justify'>During the two most recent fiscal years, Good
Times Restaurants has not had any changes in or disagreements with its
independent accountants on matters of accounting or financial disclosure.</p>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><b>Item 9A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Controls and
Procedures</b></p>

<p class=MsoNormal style='text-align:justify;background:white'><b>Conclusion
Regarding the Effectiveness of Disclosure Controls and Procedures </b></p>

<p class=MsoNormal style='margin-top:6.0pt;text-align:justify'>Based on an
evaluation of the Company's disclosure controls and procedures (as defined in
Rules&nbsp;13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as
amended), as of the end of the Company's fiscal year ended September&nbsp;30,
2009, the Company's Chief Executive Officer and Controller (its principal executive
officer and principal financial officer, respectively) have concluded that the
Company's disclosure controls and procedures were effective.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Management's Report on Internal
Control Over Financial Reporting </b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>We are
responsible for establishing and maintaining adequate internal control over
financial reporting (as defined in Rule&nbsp;13a-15(f) and 15d-15(f) under the Securities
and Exchange Act of 1934, as amended). We maintain a system of internal
controls that is designed to provide reasonable assurance in a cost-effective
manner as to the fair and reliable preparation and presentation of the
consolidated financial statements. </p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Because of its
inherent limitations, internal control over financial reporting may not prevent
or detect misstatements. Therefore, even those systems determined to be
effective can provide only reasonable assurance with respect to financial
statement preparation and presentation.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We conducted an evaluation of the effectiveness of
our internal control over financial reporting as of September&nbsp;30, 2009. In
making this evaluation, our management used the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission (&quot;COSO&quot;) in
Internal Control-Integrated Framework. This evaluation included a review of the
documentation of controls, evaluation of the design effectiveness of controls,
testing of the operating effectiveness of controls and a conclusion on this
evaluation. We have concluded that, as of September&nbsp;30, 2009, the
Company's internal control over financial reporting was effective based on
these criteria.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;background:white'>This Annual Report does not
include an attestation report of the Company's registered public accounting
firm regarding internal control over financial
reporting.&nbsp;&nbsp;Management's report was not subject to attestation by the
Company's registered public accounting firm pursuant to temporary rules of the
SEC that permit the Company to provide only management's report in this Annual
Report.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;background:white'><b>Changes in Internal Control
over Financial Reporting</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt;text-align:justify;background:
white'>There
have been no significant changes in the Company's internal control over
financial reporting that occurred during the Company's fiscal quarter ended
September&nbsp;30, 2009 that have materially affected, or are reasonably likely
to materially affect, the Company's internal control over financial reporting. </p>

<p class=MsoNormal style='background:white'><b>Item 9B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Information</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;text-align:justify'>Nothing to report.</p>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><b>PART III</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:1.0in;text-align:justify;text-indent:-1.0in'><b>Item 10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Directors,
Executive Officers and Corporate Governance<a name="_Toc92016743"></a><a
name="_Toc89839951"></a><a name="_Toc89839456"></a></b></p>

<p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:
0in;text-align:justify'><b>Directors:</b> The directors
of Good Times Restaurants are as follows:</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Geoffrey R. Bailey,</i> age 58, has
served as a Good Times director since 1996 and is a member of the Special
Committee.&nbsp; He is also a director of The Erie County Investment Co., which owns
99% of The Bailey Company.&nbsp; The principal business of The Bailey Company is
owning and operating 58 Arby's restaurants as a franchisee, and The
Bailey Company has also been a franchisee and joint venture partner of Good
Times Restaurants since 1987.&nbsp; Mr. Bailey joined The Erie County Investment Co.
in 1979.&nbsp; Mr. Bailey is a graduate of the University of Denver with a
Bachelor's Degree in Business Administration.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><strong><i>Ron Goodson</i></strong><strong>, age 53, has served as a Good Times&nbsp;director since 2005 and is a
member of the Compensation Committee.&nbsp; He also is the Vice President &amp;
General Manager for the Pepsi Cola Bottling Group's Southwest&nbsp;Market
Unit.&nbsp; Mr. Goodson has been with PepsiCo&nbsp;and Pepsi Bottling Group
for&nbsp;30 years where he has held numerous positions&nbsp;with increasing
responsibility in more than half a dozen geographical territories.&nbsp; In addition
Mr. Goodson has served on the North America Diversity Advisory Board, the PBG
Annual Planning Steering Committee and is active with the&nbsp;Company's focus
on campus recruiting and retention.&nbsp; Mr. Goodson is a graduate of Wright State
University.&nbsp; His current&nbsp;executive&nbsp;board involvement is with the
YMCA and&nbsp;The City of Hope.</strong></p>

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<p class=MsoNormal style='text-align:justify'><i>David Grissen</i>, age 52, has served as
a Good Times director since 2005 and is a member of the Audit Committee.&nbsp; He is
Executive Vice President Eastern Region for Marriott International, a position
he has held since 2005.&nbsp; He is responsible for&nbsp;730 hotels within the
Eastern Region (spanning from the states of Maine to South Carolina) operated
under the Marriott Hotels&nbsp;&amp; Resort, Marriott Conference
Centers,&nbsp;Renaissance Hotels &amp; Resorts,&nbsp;Courtyard, Residence Inn,
TownePlace Suites and SpringHill Suites brands.&nbsp; He oversees Human
Resources, Sales and Marketing, Finance, Market Strategy, Information Resources
and Development and Feasibility areas through key executives on the Eastern
Regional Team.&nbsp;&nbsp;Prior to Mr. Grissen's current role, he served as
Senior Vice President for the Marriott International Mid Atlantic Region.&nbsp; Mr.
Grissen joined Marriott from Dreyer's Grand Ice Cream in 1987, where he had
served as Director of Finance and Planning. &nbsp;Mr. Grissen holds a B.A. from
Michigan State University and a M.B.A. from Loyola University in Chicago. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Boyd E. Hoback</i>, age 54, has
served as a Good Times director since 1992 and is President and Chief Executive
Officer of Good Times Restaurants, a position which he has held since December
1992, and he has been in the restaurant business since the age of 16.&nbsp; Mr.
Hoback has been a vital part of the development of Good Times to a
52-restaurant chain and has been involved in developing all areas of the Company.&nbsp;
Mr. Hoback is an honors graduate of the University of Colorado in finance.</p>

<p class=MsoNormal style='text-align:justify'><i>Eric W. Reinhard</i>, age 51, has
served as a Good Times director since 2005 and in addition to serving as
Chairman of the Board, Mr. Reinhard also serves as President of the Pepsi Cola
Bottler's Association, a beverage
association management and consulting association and a position he
has held since 2006. Prior to June 2004 he was the General Manager for the
Pepsi Bottling Group's Great West Business Unit.&nbsp; While in this role, Mr.
Reinhard was also a member of the Pepsi Bottling Group's Chairman's Operating
Council, a member of the Food Service Strategic Planning Committee, and a
member of The Dr. Pepper Bottler Marketing Committee.&nbsp;&nbsp; Mr. Reinhard joined
Pepsi Cola in 1984 after four years with The Proctor &amp; Gamble Distributing
Company.&nbsp; Since 1984 he has held several field and headquarters positions
including Vice President/General Manager Pepsi-Lipton Tea partnership (JV),
General Manager Mid-Atlantic business Unit, Area Vice President Retail
Channels, Vice President On-Premise Operations and Area Vice President of
Franchise Operations.&nbsp; Mr. Reinhard holds a BA from Michigan State University
and has completed the Executive Business Program at the University of Michigan.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Richard J. Stark</i>, age 69, has
served as a Good Times director since July 1990.&nbsp; He is Chairman of the Audit
Committee, and a member of the Compensation and Special Committees&nbsp; Mr. Stark
has spent over 40 years in the investment industry.&nbsp; He is currently President
of Boulder Asset Management, a firm that he founded in 1984. From 1982 - 1984,
Mr. Stark was the Chief Investment Officer of Interfirst Investment Management
in Dallas, Texas and was responsible for all individual asset management at
S&amp;P/Intercapital in New York.&nbsp; Mr. Stark is a graduate of Marquette
University with a BS in business administration (finance) and has an MBA from
the University of Illinois with a major in finance.&nbsp; Mr. Stark received his
chartered financial analyst designation in 1974.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Alan A. Teran</i>, age 63, has served as
a Good Times director since 1994.&nbsp; He is a member of the Audit, Compensation and
Special Committees.&nbsp; Additionally, Mr. Teran has been a Director of Morton's of
Chicago since 1993.&nbsp; Mr. Teran is currently a principal in multiple private
restaurants.&nbsp; Mr. Teran served as president of Cork &amp; Cleaver from 1975 -
1981 and served as a Director for Boulder Valley National Bank and Charlie
Brown's Restaurants. He
was one of the first franchisees of Le Peep Restaurants.&nbsp; Mr. Teran graduated
from the University of Akron in 1968 with a degree in business.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>There
are no family relationships among the directors.&nbsp; The board has determined that
of the current directors Geoffrey R. Bailey, Ron Goodson, David Grissen,
Richard J. Stark and Alan A. Teran are independent directors under the NASDAQ
listing standards.</p>

<p class=Style2 style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
0in'>Geoffrey R. Bailey
was originally elected to the Board of Directors pursuant to contractual board
representation rights granted to The Bailey Company in connection with its
investment in shares of our Series A Convertible Preferred Stock in 1996.&nbsp; Mr.
Bailey continues to serve on the board pursuant to contractual board
representation rights held by The Bailey Company and its affiliates (&quot;The
Bailey Group&quot;) in connection with our Series B Convertible Preferred Stock
financing in February 2005, whereby The Bailey Group is currently entitled to
elect three members of our Board of Directors, two of whom must be independent
directors.&nbsp; Richard J. Stark and Alan A. Teran are the additional members of
the Board of Directors and nominees designated by The Bailey Group under these
provisions.&nbsp; Accordingly, the votes of The Bailey Group shall be determinative
as to the election of Messrs. Bailey, Stark and Teran.&nbsp; The other investors in
our Series B Convertible Preferred Stock financing also have board
representation rights whereby they are currently entitled to elect three
members of our Board of Directors.&nbsp; Ron Goodson, David Grissen and Eric W.
Reinhard are the members of the Board of Directors and nominees designated
under these provisions.&nbsp; Accordingly, the votes of the other investors in our
Series B Convertible Preferred Stock financing shall be determinative as to the
election of Messrs. Goodson, Grissen and Reinhard.&nbsp; See Item 13 &quot;Certain
relationships and related transactions&quot; for additional discussion of these
provisions.&nbsp; There are no other arrangements or understandings between any
current director and any other person under which that director was elected or
nominated.&nbsp; <a name="_Toc92016733"></a></p>

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<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:0in;
margin-left:0in;margin-bottom:.0001pt;text-indent:0in'><b>Nominee selection process</b><b>: </b>Our Board of Directors as a whole
acts as the nominating committee for the selection of nominees for election as
directors.&nbsp; We do not have a separate standing nominating committee since we
require that our director nominees be approved as nominees by a majority of our
independent directors.&nbsp; The board will consider suggestions by stockholders for
possible future nominees for election as directors at the next annual meeting
when the suggestion is delivered in writing to the corporate secretary of Good
Times Restaurants by August 15 of the year immediately preceding the annual
meeting.&nbsp; No request for a recommended nominee was made by the August 15, 2009
deadline by any stockholder or group of stockholders with beneficial ownership
of more than 5% of the Company's common stock as indicated in a Schedule 13D or
13G.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>The
board selects each nominee, subject to contractual nominee designation and
election rights held by certain stockholders, as discussed below, based on the
nominee's skills, achievements and experience, with the objective that the
board as a whole should have broad and relevant experience in high policymaking
levels in business and a commitment to representing the long-term interests of
the stockholders.&nbsp; The board believes that each nominee should have experience
in positions of responsibility and leadership, an understanding of our business
environment and a reputation for integrity.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>The
board evaluates each potential nominee individually and in the context of the
board as a whole.&nbsp; The objective is to recommend a group that will effectively
contribute to our long-term success and represent stockholder interests.&nbsp; In
determining whether to recommend a director for re-election, the board also
considers the director's past attendance at meetings and participation in and
contributions to the activities of the board.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>When
seeking candidates for director, the board solicits suggestions from incumbent
directors, management, stockholders or others.&nbsp; The board does not have a
charter for the nominating process.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><a name="_Toc92016734"><b>Communication with the directors</b></a><b>:</b> The board welcomes questions
or comments about us and our operations.&nbsp; Those interested may contact the
board as a whole or any one or more specified individual directors by sending a
letter to the intended recipients' attention in care of Good Times Restaurants
Inc., Corporate Secretary, 601 Corporate Circle, Golden, CO 80401.&nbsp; All such
communications other than commercial advertisements will be forwarded to the
appropriate director or directors for review.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><a name="_Toc92016736"></a><a
name="_Toc89839945"></a><a name="_Toc89839450"><b>Board Committees</b></a></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><a
name="_Toc92016737"></a><a name="_Toc89839946"></a><a name="_Toc89839451"><b>Audit
Committee</b></a><b>:</b> The Audit
Committee currently consists of Messrs. Grissen, Teran and Stark, each of whom
are independent directors under the applicable NASDAQ listing standards.&nbsp;&nbsp; The
Board has determined that Richard Stark is an audit committee financial expert,
as that term is defined by the Securities and Exchange Commission
(&quot;SEC&quot;) rules.&nbsp; The function of this Committee relates to oversight
of the auditors, the auditing, accounting and financial reporting processes and
the review of the Company's financial reports and information.&nbsp; In addition,
the functions of this Committee have included, among other things, recommending
to the Board the engagement or discharge of independent auditors, discussing
with the auditors their review of the Company's quarterly results and the results
of their audit and reviewing the Company's internal accounting controls.&nbsp; The
Audit Committee operates pursuant to a written Charter adopted by the Board of
Directors.&nbsp; A current copy of the Audit Committee Charter is available on our
website at www.goodtimesburgers.com.&nbsp; The Audit Committee held four
meetings during fiscal 2009.</p>

<p class=Style90 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><a name="_Toc92016738"></a><a
name="_Toc89839947"></a><a name="_Toc89839452"><b>Compensation Committee</b></a><b>:</b> The
Compensation Committee currently consists of Messrs. Goodson, Stark and Teran,
each of whom are independent directors under the applicable NASDAQ listing
standards.&nbsp; The function of this Committee is to consider and determine all
matters relating to the compensation of the President and Chief Executive
Officer and other executive officers, including matters relating to the
employment agreements.&nbsp; The Compensation Committee held one meeting during
fiscal 2009.</p>

<p class=Style90 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The Compensation Committee does not have a
Charter. The
responsibility of the Compensation Committee is to review and approve the
compensation and other terms of employment of our Chief Executive Officer and
our other executive officers, including all of the executive officers named in
the Summary Compensation Table in Item 11 of Part III of this Form 10-K (the
&quot;Named Executive Officers&quot;).&nbsp; Among its other duties, the Compensation
Committee oversees all significant aspects of the Company's compensation plans
and benefit programs.&nbsp; The Compensation Committee annually reviews and approves
corporate goals and objectives for the Chief Executive Officer's compensation
and evaluates the Chief Executive Officer's performance in light of those goals
and objectives.&nbsp; The Compensation Committee also recommends to the Board of
Directors the compensation and benefits for members of the Board of Directors.&nbsp;
The Compensation Committee has also been appointed by the Board of Directors to
administer our 2008 Omnibus Equity Incentive Compensation Plan (the &quot;2008
Plan&quot;), which is the successor equity compensation plan to the Company's 2001
Stock Option Plan (the &quot;2001 Plan&quot;).&nbsp; The Compensation Committee does not delegate
any of its authority to other persons.</p>

<p class=Style90 style='margin-top:6.0pt;margin-right:6.05pt;margin-bottom:
6.0pt;margin-left:.2pt;text-align:justify'>In carrying out its duties, the
Compensation Committee participates in the design and implementation and
ultimately reviews and approves specific compensation programs.&nbsp; The
Compensation Committee reviews and determines the base salaries for the Named
Executive Officers, and also approves awards to the Named Executive Officers
under the Company's equity compensation plans.</p>

<p class=MsoFooter align=center style='text-align:center'>25</p>



<div class=MsoNormal align=center style='text-align:center'>

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<p class=Style90 style='margin-top:6.0pt;margin-right:.25pt;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>In determining the amount and form of compensation
for Named Executive Officers other than the Chief Executive Officer, the
Compensation Committee obtains input from the Chief Executive Officer regarding
the duties, responsibilities and performance of the other executive officers
and the results of performance reviews.&nbsp; The Chief Executive Officer also
recommends to the Compensation Committee the base salary levels for all Named
Executive Officers and the award levels for all Named Executive Officers under
the Company's equity compensation programs.&nbsp; No Named Executive Officer attends
any executive session of the Compensation Committee or is present during final
deliberations or determinations of such Named Executive Officer's
compensation.&nbsp; The Chief Executive Officer also provides input with respect to
the amount and form of compensation for the members of the Board of Directors.</p>

<p class=Style90 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The Compensation Committee has the authority to
directly engage, at the Company's expense, any compensation consultants or
other advisers as it deems necessary to carry out its responsibilities in
determining the amount and form of executive and director compensation.&nbsp; For
fiscal 2009, the Compensation Committee did not use the services of a
compensation consultant or other adviser.&nbsp; However, the Compensation Committee
has reviewed surveys, reports and other market data against which it has
measured the competitiveness of the Company's compensation programs.&nbsp; In
determining the amount and form of executive and director compensation, the
Compensation Committee has reviewed and discussed historical salary information
as well as salaries for similar positions at comparable companies.</p>

<p class=Style90 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Special Committee:</b>&nbsp; On August
14, 2009 as reported on form 8-K we announced that our Board of Directors has
formed a Special Committee comprised of directors Richard Stark, Alan Teran and
Geoff Bailey to explore and evaluate strategic alternatives aimed at enhancing
shareholder value and explore alternatives to reduce the cost burdens of being
a publicly held entity.&nbsp; At that time, the Company hired Mastodon Ventures,
Inc. to provide strategic advisory services and explore other strategic
alternatives that will further the long-term business prospects of the Company
and provide incremental value to its shareholders.&nbsp; The foregoing activities
are continuing without yet any specific recommended alternatives.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><a name="_Toc92016739"></a><a
name="_Toc89839948"></a><a name="_Toc89839453"><b>Directors' meetings and attendance</b></a><b>:</b> There were
nine meetings of the Board of Directors held during the last full fiscal year.
No member of the Board of Directors attended fewer than 75% of the board
meetings and applicable committee meetings.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>Each
director attended the 2009 annual meeting of stockholders.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><a name="_Toc92016740"></a><a
name="_Toc89839949"></a><a name="_Toc89839454"><b>Directors' compensation</b></a><b>:</b> Each
non-employee director receives $500 for each Board of Directors meeting
attended.&nbsp; Members of the Compensation and Audit Committees generally each
receive $100 per meeting attended.&nbsp; However, where both Compensation and Audit Committee
meetings are held at the same gathering only $100 is paid to directors
attending both committee meetings.&nbsp; Additionally, for the fiscal year ended
September 30, 2009, each non-employee director received a non-statutory stock
option to acquire 2,000 shares of common stock at an exercise price of $1.15.</p>

<p class=Style2 style='margin-bottom:6.0pt;text-indent:0in'><a
name="_Toc92016741"></a><a name="_Toc89839950"></a><a name="_Toc89839455"><b>Audit Committee Report</b></a><b>:</b> Good Times Restaurant's
management is responsible for the internal controls and financial reporting
process for Good Times Restaurants.&nbsp; The independent accountants for Good Times
Restaurants are responsible for performing an independent audit of the
financial statements in accordance with generally accepted auditing standards
and to issue a report on those financial statements.&nbsp; The Audit Committee's
responsibility is to monitor and oversee these processes.</p>

<p class=Style2 style='margin-bottom:6.0pt;text-indent:0in'>In this context, the Audit
Committee met with management and the independent accountants to review and
discuss the Good Times Restaurants financial statements for the fiscal year
ended September 30, 2009.&nbsp; Management represented to the Audit Committee that
the financial statements were prepared in accordance with generally accepted
accounting principles, and the Audit Committee has reviewed and discussed the
financial statements with management and the independent accountants.</p>

<p class=Style2 style='margin-bottom:6.0pt;text-indent:0in'>The Audit Committee has
discussed with the independent accountants matters required to be discussed by
Statement on Auditing Standards No. 61, Communication with Audit Committees.&nbsp;
The Audit Committee has also received the written disclosures and the letter
from the independent accountants required by applicable requirements of the
Public Company Accounting Oversight Board regarding the independent
accountants' communications with the Audit Committee concerning independence and
the Audit Committee discussed with the independent accountants that firm's
independence.</p>

<p class=MsoNormal style='margin-bottom:12.0pt;text-align:justify'>Based on the Audit
Committee's review and discussions referred to above, the Audit Committee
recommended to the Board of Directors that the audited financial statements be
included in the Good Times Restaurants Annual Report on Form 10-K for the
fiscal year ended September 30, 2009 for filing with the SEC.</p>

<p class=MsoNormal style='margin-bottom:12.0pt'><b>Executive officers</b><b>:</b> The executive
officers of Good Times Restaurants are as follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='margin-left:5.4pt;border-collapse:collapse'>
 <tr style='height:17.1pt'>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:17.1pt'>
  <p class=MsoNormal style='margin-left:17.1pt;text-align:justify'><b><u>Name</u></b></p>
  </td>
  <td width=54 valign=top style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:17.1pt'>
  <p class=MsoNormal align=center style='margin-left:-2.55pt;text-align:center'><b><u>Age</u></b></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:17.1pt'>
  <p class=MsoNormal align=center style='margin-left:8.85pt;text-align:center'><b><u>Position</u></b></p>
  </td>
  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:17.1pt'>
  <p class=MsoNormal align=center style='margin-right:.05in;text-align:center'><b><u>Date Began
  With Company</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Boyd E. Hoback</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-left:-2.55pt;text-align:center'>54</p>
  </td>
  <td width=228 valign=top style='width:171.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-left:2.85pt'>President &amp; CEO</p>
  </td>
  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:12.6pt;margin-bottom:
  0in;margin-left:44.1pt;margin-bottom:.0001pt'>September 1987</p>
  </td>
 </tr>
 <tr>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Susan M. Knutson</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-left:-2.55pt;text-align:center'>51</p>
  </td>
  <td width=228 valign=top style='width:171.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-left:2.85pt'>Controller</p>
  </td>
  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:12.6pt;margin-bottom:
  0in;margin-left:44.1pt;margin-bottom:.0001pt'>September 1987</p>
  </td>
 </tr>
 <tr style='height:11.85pt'>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:11.85pt'>
  <p class=MsoNormal style='text-align:justify'>Scott G. LeFever</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:11.85pt'>
  <p class=MsoNormal align=center style='margin-left:-2.55pt;text-align:center'>51</p>
  </td>
  <td width=228 valign=top style='width:171.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:11.85pt'>
  <p class=MsoNormal style='margin-left:2.85pt'>VP of Operations</p>
  </td>
  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:11.85pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:12.6pt;margin-bottom:
  0in;margin-left:44.1pt;margin-bottom:.0001pt'>September 1987</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Boyd E. Hoback.</i>&nbsp; See the
description of Mr. Hoback's business experience under &quot;Directors&quot;.</p>

<p class=MsoFooter align=center style='text-align:center'>26</p>



<div class=MsoNormal align=center style='text-align:center'>

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clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Susan M. Knutson </i>has been
Controller since 1993 with direct responsibility for overseeing the accounting
department, maintaining cash controls, producing budgets, financials and quarterly
and annual reports required to be filed with the Securities and Exchange
Commission, acting as the principal financial officer of the Company, and
preparing all information for the annual audit.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Scott G. LeFever</i> has been Vice
President of Operations since August 1995, and has been involved in all phases
of operations with direct responsibility for restaurant service performance,
personnel and cost controls.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>Executive
officers do not have fixed terms and serve at the discretion of the Board of Directors.&nbsp;
There are no family relationships among the executive officers, directors or
director nominees.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;text-align:justify'><a name="_Toc92016744"></a><a
name="_Toc89839952"></a><a name="_Toc89839457"><b>Code of ethics</b></a>: Good Times
Restaurants has adopted a Code of Business Conduct which applies to all
directors, officers, employees and franchisees of Good Times Restaurants.&nbsp; The
Code of Business Conduct was filed with the SEC as an exhibit to the Annual
Report on Form 10-KSB for the fiscal year ended September 30, 2003.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Item 11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Executive
Compensation</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Executive Compensation:</b>
The following table sets forth compensation information for 2009 and 2008 with
respect to the named executive officers:</p>

<p class=MsoNormal align=center style='text-align:center;text-autospace:none'><b>Summary
Compensation Table for 2009 and 2008</b></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 align=left
 width=674 style='border-collapse:collapse;margin-left:6.75pt;margin-right:
 6.75pt'>
 <tr style='height:43.45pt'>
  <td width=104 valign=bottom style='width:78.0pt;border:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal style='text-autospace:none'>Name and Principal
  Position</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Year</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Salary
  $</p>
  </td>
  <td width=42 valign=bottom style='width:31.5pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Bonus
  $</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Stock
  Awards $</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Option
  Awards $<sup>3</sup></p>
  </td>
  <td width=84 valign=bottom style='width:63.0pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Non-Equity
  Incentive Plan Compensation $</p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Nonqualified
  Deferred Compensation Earnings $</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>All
  Other Compensation $</p>
  </td>
  <td width=72 valign=bottom style='width:.75in;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Total
  $</p>
  </td>
 </tr>
 <tr>
  <td width=104 valign=top style='width:78.0pt;border:none;border-left:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='text-autospace:none'>Boyd E. Hoback</p>
  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>2009</p>
  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>162,083</p>
  </td>
  <td width=42 valign=top style='width:31.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>25,118</p>
  </td>
  <td width=84 valign=top style='width:63.0pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>16,073<sup>1</sup></p>
  </td>
  <td width=72 valign=top style='width:.75in;border:none;border-right:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>203,274</p>
  </td>
 </tr>
 <tr style='height:23.5pt'>
  <td width=104 valign=top style='width:78.0pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.0pt;border-right:
  none;padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal style='text-autospace:none'>President and Chief
  Executive Officer</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>2008</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>193,400</p>
  </td>
  <td width=42 style='width:31.5pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>17,436</p>
  </td>
  <td width=84 style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=102 style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>17,754<sup>1</sup></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>228,590</p>
  </td>
 </tr>
 <tr style='height:8.9pt'>
  <td width=104 valign=top style='width:78.0pt;border:none;border-left:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:8.9pt'>

  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=42 valign=top style='width:31.5pt;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=84 valign=top style='width:63.0pt;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=78 valign=top style='width:58.5pt;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
 </tr>
 <tr>
  <td width=104 valign=top style='width:78.0pt;border-top:solid windowtext 1.0pt;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:none;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='text-autospace:none'>Scott G. LeFever</p>
  </td>
  <td width=48 valign=top style='width:.5in;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>2009</p>
  </td>
  <td width=48 valign=top style='width:.5in;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>101,667</p>
  </td>
  <td width=42 valign=top style='width:31.5pt;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 valign=top style='width:.5in;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 valign=top style='width:.5in;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>9,979</p>
  </td>
  <td width=84 valign=top style='width:63.0pt;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>11,477<sup>2</sup></p>
  </td>
  <td width=72 valign=top style='width:.75in;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>123,123</p>
  </td>
 </tr>
 <tr style='height:22.45pt'>
  <td width=104 valign=top style='width:78.0pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.0pt;border-right:
  none;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal style='text-autospace:none'>Vice President of
  Operations</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>2008</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>119,775</p>
  </td>
  <td width=42 valign=bottom style='width:31.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>5,481</p>
  </td>
  <td width=48 style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>5,277</p>
  </td>
  <td width=84 style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=102 style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>11,262<sup>2</sup></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>141,795</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:-13.7pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-autospace:none'><sup>1&nbsp;&nbsp;&nbsp; </sup>The
amount indicated for Mr. Hoback includes an automobile allowance, long-term
disability and 401(K) Plan matching contributions.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:-13.7pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-autospace:none'><sup>2&nbsp;&nbsp;&nbsp; </sup>The
amount indicated for Mr. LeFever includes an automobile allowance, long-term
disability, personal expenses and 401(K) Plan matching contributions.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:-13.7pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-autospace:none'><sup>3&nbsp;&nbsp;&nbsp; </sup>The
value of stock option awards shown in this column includes all amounts expensed
in the Company's financial statements in 2008 and 2009 for equity awards in accordance
with the guidance of FASB ASC 718-10-30, Compensation - Stock Compensation,
excluding any estimate for forfeitures.&nbsp; The Company's accounting treatment
for, and assumptions made in the valuations of, equity awards is set forth in
Note 1 of the notes to the Company's 2009 consolidated financial statements
included in the Company's Annual Report on Form 10-K for the fiscal year ended
September 30, 2009.&nbsp; There were no option awards re-priced in 2009.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:-13.7pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-autospace:none'>There
were no shares of SARs granted during 2009 or 2008 nor has there been any
nonqualified deferred compensation paid to any named executive officers during
2009 or 2008.&nbsp; The Company does not have any plans that provide for specified
retirement payments and benefits at, following or in connection with
retirement.</p>

<p class=MsoFooter align=center style='text-align:center'>27</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>












<p class=MsoNormal style='margin-top:6.0pt;margin-right:-13.7pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-autospace:none'>The following
table sets forth information as of September 30, 2009 on all unexercised
options previously awarded to the named executive officers:</p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=705
 style='margin-left:-.05in;border-collapse:collapse'>
 <tr style='height:26.25pt'>
  <td width=705 nowrap colspan=12 style='width:528.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:26.25pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Outstanding
  Equity Awards at 2009 Fiscal Year-End</b></p>
  </td>
 </tr>
 <tr style='height:19.5pt'>
  <td width=422 nowrap colspan=6 style='width:316.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:19.5pt'>
  <p class=MsoNormal><b>___________________________ Option
  Awards______________________ </b></p>
  </td>
  <td width=16 colspan=2 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;
  height:19.5pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  </td>
  <td width=267 nowrap colspan=4 style='width:200.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:19.5pt'>
  <p class=MsoNormal><b>_______________ Stock
  Awards_________ </b></p>
  </td>
 </tr>
 <tr style='height:85.0pt'>
  <td width=60 valign=bottom style='width:45.0pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal>Name
  </p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Number of
  Securities Underlying Unexercised Options -Exercisable (#)</p>
  </td>
  <td width=96 valign=bottom style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Number of
  Securities Underlying Unexercised Options -Unexercisable (#)</p>
  </td>
  <td width=72 valign=bottom style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Equity
  Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned
  Options (#)</p>
  </td>
  <td width=60 valign=bottom style='width:45.0pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Option
  Exercise Price $</p>
  </td>
  <td width=66 colspan=2 valign=bottom style='width:49.5pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Option
  Expiration Date</p>
  </td>
  <td width=63 colspan=2 valign=bottom style='width:46.9pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Number of
  Shares or Units of Stock That Have Not Vested (#)</p>
  </td>
  <td width=60 valign=bottom style='width:44.95pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Market Value
  of Shares or Units of Stock That Have Not Vested ($)</p>
  </td>
  <td width=72 valign=bottom style='width:54.05pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Equity
  Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That
  Have Not Vested (#)</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Equity
  Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or
  Other Rights That Have Not Vested ($)</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 valign=top style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal>Boyd
  E.&nbsp;</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>19,231</p>
  </td>
  <td width=96 nowrap style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.12</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/09</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 valign=top style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal>&nbsp;Hoback</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,500</p>
  </td>
  <td width=96 nowrap style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$1.38</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/10</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 valign=top style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>50,000</p>
  </td>
  <td width=96 nowrap style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$1.75</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/11</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 valign=top style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>3,750</p>
  </td>
  <td width=96 nowrap style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$2.70</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/12</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 valign=top style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>3,900</p>
  </td>
  <td width=96 nowrap style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.60</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/13</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 valign=top style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>12,000</p>
  </td>
  <td width=96 nowrap style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.11</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/14</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 valign=top style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>8,500</p>
  </td>
  <td width=96 nowrap style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$5.68</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/15</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 valign=top style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>5,700</p>
  </td>
  <td width=96 nowrap style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>13,300 <sup>(1)</sup></p>
  </td>
  <td width=72 nowrap style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$6.38</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>11/17/16</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 nowrap valign=bottom style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>0</p>
  </td>
  <td width=96 nowrap style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>28,503 <sup>(2)</sup></p>
  </td>
  <td width=72 nowrap style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$1.47</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>11/14/18</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 nowrap valign=bottom style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=96 nowrap valign=bottom style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=72 nowrap valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=60 nowrap valign=bottom style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=63 nowrap colspan=2 valign=bottom style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=60 nowrap valign=bottom style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=72 nowrap valign=bottom style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 valign=bottom style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal>Scott
  G.</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>1,260</p>
  </td>
  <td width=96 nowrap valign=bottom style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap valign=bottom style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$2.70</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/12</p>
  </td>
  <td width=63 nowrap colspan=2 valign=bottom style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap valign=bottom style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap valign=bottom style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 valign=bottom style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal>&nbsp;LeFever</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,580</p>
  </td>
  <td width=96 nowrap valign=bottom style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.60</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/13</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 valign=bottom style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>5,750</p>
  </td>
  <td width=96 nowrap valign=bottom style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.11</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/14</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 valign=bottom style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>5,750</p>
  </td>
  <td width=96 nowrap valign=bottom style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$5.68</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/15</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 valign=bottom style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>1,725</p>
  </td>
  <td width=96 nowrap valign=bottom style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>4,025<sup>
  (1)</sup></p>
  </td>
  <td width=72 nowrap valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$6.38</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>11/17/16</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=60 nowrap valign=bottom style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>0</p>
  </td>
  <td width=96 nowrap valign=bottom style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>17,007<sup> (2)</sup></p>
  </td>
  <td width=72 nowrap valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$1.47</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>11/14/18</p>
  </td>
  <td width=63 nowrap colspan=2 style='width:46.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr height=0>
  <td width=66 style='border:none'></td>
  <td width=90 style='border:none'></td>
  <td width=102 style='border:none'></td>
  <td width=78 style='border:none'></td>
  <td width=60 style='border:none'></td>
  <td width=56 style='border:none'></td>
  <td width=10 style='border:none'></td>
  <td width=6 style='border:none'></td>
  <td width=57 style='border:none'></td>
  <td width=60 style='border:none'></td>
  <td width=72 style='border:none'></td>
  <td width=78 style='border:none'></td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:-27.0pt;margin-bottom:
0in;margin-left:-9.0pt;margin-bottom:.0001pt;text-indent:-13.5pt'><sup>1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </sup>The options
were granted on November 17, 2006. Assuming continued employment with the
Company, the shares under the option agreements will become exercisable per a
vesting schedule which began on November 17, 2007 continuing through November
17, 2010, whereby options vest per the following schedule: 10% on November 17,
2007; an additional 20% on November 17, 2008; an additional 30% on November 17,
2009; and an additional 40% on November 17, 2010.</p>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:-27.0pt;margin-bottom:
0in;margin-left:-9.0pt;margin-bottom:.0001pt;text-indent:-13.5pt'><sup>2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </sup>The options
were granted on November 14, 2008. Assuming continued employment with the Company,
the shares under the option agreements will become fully exercisable on
November 14, 2011.</p>

<p class=MsoFooter align=center style='text-align:center'>28</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-top:12.0pt;margin-right:-27.0pt;margin-bottom:
12.0pt;margin-left:-9.0pt;text-indent:-13.5pt'>The following table sets forth
compensation information for 2009 with respect to directors:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=685
 style='border-collapse:collapse'>
 <tr style='height:15.75pt'>
  <td width=685 nowrap colspan=8 style='width:513.9pt;border:solid windowtext 1.0pt;
  border-right:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Director
  Compensation Table for Fiscal Year 2009</b></p>
  </td>
 </tr>
 <tr style='height:.6in'>
  <td width=114 style='width:85.55pt;border:solid windowtext 1.0pt;border-top:
  none;padding:0in 5.4pt 0in 5.4pt;height:.6in'>
  <p class=MsoNormal align=center style='text-align:center'>Name</p>
  </td>
  <td width=67 style='width:50.35pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:.6in'>
  <p class=MsoNormal align=center style='text-align:center'>Fees Earned
  or Paid in Cash ($)</p>
  </td>
  <td width=60 style='width:45.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.6in'>
  <p class=MsoNormal align=center style='text-align:center'>Stock Awards
  ($)</p>
  </td>
  <td width=66 style='width:49.5pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.6in'>
  <p class=MsoNormal align=center style='text-align:center'>Option
  Awards ($) <sup>1, 2</sup></p>
  </td>
  <td width=96 style='width:1.0in;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.6in'>
  <p class=MsoNormal align=center style='text-align:center'>Non-Equity
  Incentive Plan Compensation ($)</p>
  </td>
  <td width=102 style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:.6in'>
  <p class=MsoNormal align=center style='text-align:center'>Nonqualified
  Deferred Compensation Earnings $</p>
  </td>
  <td width=102 style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:.6in'>
  <p class=MsoNormal align=center style='text-align:center'>All Other
  Compensation $ <sup>3</sup></p>
  </td>
  <td width=78 style='width:58.5pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.6in'>
  <p class=MsoNormal align=center style='margin-left:6.7pt;text-align:center'>Total $</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 valign=bottom style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>Geoffrey
  R. Bailey</p>
  </td>
  <td width=67 nowrap valign=bottom style='width:50.35pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,000</p>
  </td>
  <td width=60 nowrap valign=bottom style='width:45.0pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>1,949</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right'>3,949</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 valign=top style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>Ron
  Goodson</p>
  </td>
  <td width=67 nowrap style='width:50.35pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,000</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>1,949</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right'>3,949</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 nowrap valign=bottom style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>David
  Grissen</p>
  </td>
  <td width=67 nowrap style='width:50.35pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,000</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>1,949</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right'>3,949</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 valign=bottom style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>Eric
  W. Reinhard </p>
  </td>
  <td width=67 nowrap valign=bottom style='width:50.35pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>1,000</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>1,949</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,000</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right'>4,949</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 valign=top style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>Richard
  J. Stark</p>
  </td>
  <td width=67 nowrap style='width:50.35pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,000</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>1,949</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right'>3,949</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 nowrap valign=bottom style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>Alan
  A. Teran</p>
  </td>
  <td width=67 nowrap style='width:50.35pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,000</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>1,949</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right'>3,949</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 nowrap valign=bottom style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>Boyd
  E. Hoback <sup>4</sup></p>
  </td>
  <td width=67 nowrap valign=bottom style='width:50.35pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap valign=bottom style='width:49.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right'>0</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The value of stock option
awards shown in this column includes all amounts expensed in the Company's
financial statements in 2009 for equity awards in accordance with the guidance
of FASB ASC 718-10-30, Compensation - Stock Compensation, excluding any
estimate for forfeitures.&nbsp; The Company's accounting treatment for, and
assumptions made in the valuation of equity awards are set forth in Note 1 of
the notes to the Company's 2009 consolidated financial statements included in
the Company's Annual Report on Form 10-K for the fiscal year ended September
30, 2009.&nbsp; There were no option awards re-priced in 2009.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><sup>&nbsp;2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </sup>As of September
30, 2009, the following directors held options to purchase the following number
of shares of our common stock:&nbsp; Mr. Bailey 12,000 shares; Mr. Goodson 10,000
shares; Mr. Grissen 10,000 shares; Mr. Reinhard 14,500 shares; Mr. Stark 12,000
shares; Mr. Teran 12,000 shares; and Mr. Hoback 128,153 shares.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><sup>3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </sup>The amount
indicated for Mr. Reinhard included an expense allowance for a part of the
fiscal year in his role as Chairman.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><sup>4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </sup>Mr. Hoback is
an employee director and does not receive additional fees for service as a
member of the Board.</p>

<p class=MsoNormal style='margin-top:6.0pt;text-align:justify'>A description
of the standard compensation arrangements (such as fees for committee service,
service as chairman of the board or a committee, and meeting attendance) is set
forth in the section entitled &quot;Directors' Compensation&quot; above.</p>

<p class=MsoNormal style='margin-top:6.0pt;text-align:justify'><b>Employment
Agreement:</b>&nbsp;
Mr. Hoback entered into an employment agreement with us in October 2001 and the
terms of the agreement were revised effective October 2007 for compliance with
Section 409A of the Internal Revenue Code.&nbsp; The revised agreement provides for
his employment as president and chief executive officer for two years from the
date of the agreement at a minimum salary of $190,000 per year, terminable by
us only for cause.&nbsp; The agreement provides for payment of one year's salary and
benefits in the event that change of ownership control results in a termination
of his employment or termination other than for cause.&nbsp; This agreement renews
automatically unless specifically not renewed by the Board of Directors.&nbsp; Mr.
Hoback's compensation, including salary, expense allowance, bonus and any
equity award, is reviewed and set annually by the Compensation Committee.&nbsp; Mr.
Hoback's bonus, when applicable, is based on the Company's achieving certain
Earnings Before Interest, Taxes, Depreciation and Amortization (&quot;EBITDA&quot;)
targets for the year.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Other Employment Arrangements:</b>&nbsp; Mr. LeFever is
employed as an &quot;employee at will&quot; and does not have a written employment agreement.&nbsp;
His compensation, including salary, expense allowance, bonus and any equity
awards, is reviewed and approved by the Compensation Committee annually.&nbsp; He
participates in a bonus program that is based on both the company's level of
EBITDA for the year and achieving certain operating metrics and sales targets. </p>

<p class=MsoFooter align=center style='text-align:center'>29</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-bottom:10.0pt;line-height:115%'><b>&nbsp;</b></p>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:
- -1.0in'><b>Item
12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters<a name="_Toc92016742"></a></b></p>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
12.0pt;margin-left:0in;text-align:justify'><b>Ownership of common stock by principal
stockholders and management</b><b>:</b> The following table shows the
beneficial ownership of shares of Good Times Restaurants common stock as of December
15, 2009 by each person known by Good Times Restaurants to be the beneficial
owner of more than five percent of the shares of Good Times Restaurants common
stock, each director and each executive officer named in the Summary
Compensation Table, and all directors and executive officers as a group.&nbsp; The
address for the principal stockholders and the Directors and Officers is 601
Corporate Circle, Golden, CO 80401.</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:23.4pt;border-collapse:collapse'>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'><b><br
  clear=all style='page-break-before:always'>
  </b>
  <p class=MsoNormal><b><u>Holder</u></b></p>
  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=center style='margin-left:.3pt;text-align:center'><b>Number of
  shares </b></p>
  </td>
  <td width=108 valign=top style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:.3pt;
  margin-bottom:0in;margin-left:.9pt;margin-bottom:.0001pt;text-align:center'><b>Percent of</b></p>
  </td>
 </tr>
 <tr style='height:.25in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.25in'>
  <p class=MsoNormal><b><u>Principal
  stockholders</u></b></p>
  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;
  height:.25in'>
  <p class=MsoNormal align=center style='text-align:center'><b><u>beneficially
  owned</u></b></p>
  </td>
  <td width=108 valign=top style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.25in'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:.3pt;
  margin-bottom:0in;margin-left:.9pt;margin-bottom:.0001pt;text-align:center'><b><u>class**</u></b></p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>The
  Bailey Company, LLLP</p>
  </td>
  <td width=144 style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'>821,512<sup>1</sup></p>
  </td>
  <td width=108 style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>21.07%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>The
  Erie County Investment Co.</p>
  </td>
  <td width=144 style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'>1,016,192<sup>1</sup></p>
  </td>
  <td width=108 style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>26.07%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Commonwealth
  Equity Services LLP</p>
  </td>
  <td width=144 style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'>316,513<sup>2</sup></p>
  </td>
  <td width=108 style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>8.12%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Paul
  T. Bailey</p>
  </td>
  <td width=144 style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'>1,074,192<sup>3</sup></p>
  </td>
  <td width=108 style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>27.55%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal><b><u>Directors
  and Officers</u></b></p>
  </td>
  <td width=144 style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'><b>&nbsp;</b></p>
  </td>
  <td width=108 style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'><b>&nbsp;</b></p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Geoffrey
  R. Bailey, Director</p>
  </td>
  <td width=144 style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'>23,300<sup>4</sup></p>
  </td>
  <td width=108 style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>*</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Ron
  Goodson, Director</p>
  </td>
  <td width=144 style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'>214,497<sup>5</sup></p>
  </td>
  <td width=108 style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>5.48%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>David
  Grissen, Director</p>
  </td>
  <td width=144 style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'>231,999<sup>6</sup></p>
  </td>
  <td width=108 style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>5.90%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Boyd
  E. Hoback, Director, President and Chief Executive Officer</p>
  </td>
  <td width=144 valign=bottom style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'>144,994<sup>7</sup></p>
  </td>
  <td width=108 valign=bottom style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>3.59%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Scott
  G. LeFever, Vice President, Operations</p>
  </td>
  <td width=144 style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'>21,413<sup>8</sup></p>
  </td>
  <td width=108 style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>*</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Richard
  J. Stark, Director</p>
  </td>
  <td width=144 style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'>62,103<sup>9</sup></p>
  </td>
  <td width=108 style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>1.58%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Alan
  A. Teran, Director</p>
  </td>
  <td width=144 style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'>&nbsp;113,206<sup>10</sup></p>
  </td>
  <td width=108 style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>2.88%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Eric
  W. Reinhard, Chairman</p>
  </td>
  <td width=144 style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'>314,000<sup>11</sup></p>
  </td>
  <td width=108 style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>7.94%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=378 valign=top style='width:283.5pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal>All
  directors and executive officers as a group</p>
  <p class=MsoNormal>(9
  persons including all those named above)</p>
  </td>
  <td width=144 valign=bottom style='width:1.5in;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:.3in;text-align:right'>1,144,736<sup>12</sup></p>
  </td>
  <td width=108 valign=bottom style='width:81.0pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>26.73%</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><sup>1&nbsp;&nbsp;&nbsp; </sup>The Bailey
Company is 99% owned by The Erie County Investment Co., which should be deemed
the beneficial owner of Good Times Restaurants common stock held by The Bailey
Company.&nbsp; The Erie County Investment Co. also owns 194,680 shares of Good Times
Restaurants common stock in its own name.&nbsp; Geoffrey R. Bailey is a director and
executive officer of The Erie County Investment Co.&nbsp; Geoffrey R. Bailey
disclaims beneficial ownership of the shares of Good Times Restaurants common
stock held by The Bailey Company and The Erie County Investment Co.&nbsp; See
footnote 3 below.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><sup>2&nbsp;&nbsp;&nbsp; </sup>The information
as to Commonwealth Equity Services LLP (&quot;Commonwealth&quot;) and entities
controlled directly or indirectly by Commonwealth is derived in part from
Schedule&nbsp;13G, as filed with the Securities and Exchange Commission on
December 23, 2005 and most recently amended on February 11, 2009, and
information furnished to Good Times separately by Commonwealth.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><sup>3&nbsp;&nbsp;&nbsp; </sup>Includes
821,512 shares beneficially owned by The Bailey Company and 194,680 shares held
of record by The Erie County Investment Co.&nbsp; Paul T. Bailey is the principal
owner of The Erie County Investment Co. and may be deemed the beneficial owner
of shares held by The Erie County Investment Co. and The Bailey Company.&nbsp; Paul T.
Bailey disclaims beneficial ownership of the shares held by The Erie County
Investment Co. and The Bailey Company.&nbsp; Paul T. Bailey is the father of
Geoffrey R. Bailey.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><sup>4&nbsp;&nbsp;&nbsp; </sup>Includes 14,000
shares underlying presently exercisable stock options.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><sup>5&nbsp;&nbsp;&nbsp; </sup>Includes 12,000
shares underlying presently exercisable stock options and 2,497 warrants to
purchase stock.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><sup>6&nbsp;&nbsp;&nbsp; </sup>Includes 12,000
shares underlying presently exercisable stock options and 19,999 warrants to
purchase stock.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><sup>7&nbsp;&nbsp;&nbsp; </sup>Includes
100,002 shares underlying presently exercisable stock options</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><sup>8&nbsp;&nbsp;&nbsp; </sup>Includes 21,413
shares underlying presently exercisable stock options</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><sup>9&nbsp;&nbsp;&nbsp; </sup>Includes 14,000
shares underlying presently exercisable stock options and 15,003 warrants to
purchase stock.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><sup>10&nbsp; </sup>Includes 14,000
shares underlying presently exercisable stock options and 17,501 warrants to
purchase stock</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><sup>11&nbsp; </sup>Includes 16,500
shares underlying presently exercisable stock options and 37,500 warrants to
purchase stock</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><sup>12&nbsp; </sup>Does not
include shares held beneficially by The Bailey Company and The Erie County
Investment Co.&nbsp; If those shares were included, the number of shares
beneficially held by all directors and executive officers as a group would be
2,160,928 and the percentage of class would be 50.46%.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>*&nbsp; Less than one percent.</p>

<p class=MsoNormal>** Under
SEC rules, beneficial ownership includes shares over which the individual or
entity has voting or investment power and any shares which the individual or
entity has the right to acquire within sixty days.</p>

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<p class=MsoNormal style='text-align:justify'>The information required by this Item
concerning securities authorized for issuance under equity compensation plans
is incorporated by reference to the information provided under the caption
&quot;Disclosure with Respect to the Company's Equity Compensation Plan&quot;
in Part II - Item 5 - Market for Common Equity and Related Stockholder Matters,
included in this Form 10-K.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Item 13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certain Relationships
and Related Transactions and Director Independence.</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>In February 2005, we issued 1,240,000 shares of
our Series B Convertible Preferred Stock, including 180,000 shares to The Erie
County Investment Co., a substantial holder of our common stock and member of
The Bailey Group.&nbsp; In June 2006, we exercised our mandatory conversion rights
under the terms of the Series B preferred stock to convert all of those shares
into a total of 1,240,000 shares of our common stock.&nbsp; Under the agreements for
the Series B preferred stock financing, The Bailey Group currently has the
right to elect three directors, provided that two directors meet the NASDAQ
independence standards.&nbsp; Furthermore, the other investors in the Series B
preferred stock financing currently have the right to elect three directors.&nbsp;
The number of director positions subject to these provisions will decrease
proportionally to the extent that the original investors sell or otherwise transfer
the common stock into which the Series B shares have been converted.&nbsp; An
additional provision of the Series B preferred stock financing restricts, for
as long as the original investors hold at least two-thirds of the common stock
into which the Series B shares have been converted, our ability to increase the
size of the Board of Directors above seven directors unless we first receive
approval from the holders of at least three-fourths of all outstanding shares
of common stock.&nbsp; Geoffrey R. Bailey, Richard J. Stark and Alan A. Teran are
the current directors designated by The Bailey Group, and Ron Goodson, David
Grissen and Eric W. Reinhard are the current directors designated by the other
investors.&nbsp; Geoffrey R. Bailey is a director of The Erie County Investment Co.,
which owns 99% of The Bailey Company.&nbsp; The Bailey Company and The Erie County
Investment Co. are principal stockholders of us.&nbsp; Geoffrey R. Bailey's father,
Paul T. Bailey, is the principal owner of The Erie County Investment Co.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Our corporate headquarters are located in a
building owned by The Bailey Company and in which The Bailey Company also has
its corporate headquarters.&nbsp; We currently lease our executive office space of
approximately 3,693 square feet from The Bailey Company for approximately $55,000
per year.&nbsp; The lease expired September 30, 2009 and we continue to lease the
space on a month to month basis.</p>

<p class=Style2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>The
Bailey Company is also the owner of one franchised Good Times Drive Thru
restaurant which is located in Loveland, Colorado and was the owner of one
franchised restaurant in Thornton, Colorado which was closed in October 2009.
The Bailey Company has entered into two franchise and management agreements
with us.&nbsp; Franchise royalties and management fees paid under those agreements
totaled approximately $78,000 and $94,000 for the fiscal years ending September
30, 2009 and 2008, respectively.</p>

<p class=Style4 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>In
April 2009 the Company entered into a loan agreement with Golden Bridge, LLC
(&quot;Golden Bridge&quot;), pursuant to which Golden Bridge made a loan of $185,000 to
the Company.&nbsp; Eric Reinhard, Ron Goodson, David Grissen, Richard Stark, and
Alan Teran, who are all members of the Company's Board of Directors and
stockholders of the Company, are the sole members of Golden Bridge.&nbsp; Eric
Reinhard is the sole manager of Golden Bridge.&nbsp; The Company's obtaining of the
Loan from Golden Bridge and related transactions were duly approved in advance
by the Company's Board of Directors by the affirmative vote of members thereof
who did not have an interest in the transaction.&nbsp;&nbsp; Total interest and
commitment fees paid under this agreement were approximately $12,000 for fiscal
2009. The amount due to related parties under this agreement that is included
in notes payable was $185,000 at September 30, 2009. See Note 7 above for the
terms of the loan.</p>

<p class=Style4 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>In
August 2008 we announced the suspension of development of Good Times
restaurants under a 2007 Development Agreement with Zen Partners LLC, in which
David Grissen, a significant stockholder and a member of our Board of Directors,
has a 20% ownership interest.&nbsp; No restaurants have been developed under the
agreement.&nbsp; We may reevaluate expansion discussion with Zen Partners LLC as
conditions impacting our sales trends, the macroeconomic environment and credit
markets change.</p>

<p class=Style4 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><b>Section
16(a) beneficial ownership reporting compliance:</b> Under Section 16(a) of the
Securities Exchange Act of 1934, directors, executive officers and persons who
own more than ten percent of Good Times Restaurants common stock must disclose
their initial beneficial ownership of the common stock and any changes in that
ownership in reports which must be filed with the SEC and Good Times
Restaurants. The SEC has designated specific deadlines for these reports and
Good Times Restaurants must identify in this proxy statement those persons who
did not file these reports when due.</p>

<p class=Style4 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>Based
solely on a review of the reports filed with Good Times Restaurants and written
representations received from reporting persons Good Times Restaurants believes
that during the fiscal year ended September 30, 2009 all Section 16(a) filing
requirements for its officers, directors, and more than ten percent
shareholders were complied with on a timely basis.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Item 14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal Accountant
Fees and Services</b></p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>INDEPENDENT PUBLIC ACCOUNTANTS</b><b>:</b> The Board of Directors
appointed HEIN &amp; ASSOCIATES LLP as Good Times Restaurants' independent
auditors for the fiscal year ended September 30, 2008 and fiscal year 2009, and
to perform other accounting services.&nbsp; Representatives of HEIN &amp; ASSOCIATES
LLP are expected to be present at the annual meeting of shareholders, and will
have the opportunity to make a statement if they so desire and to respond to
appropriate shareholder questions.<a name="_Toc92016774"></a><a
name="_Toc89839957"></a><a name="_Toc89839462"></a></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Audit Fees</b><b>:</b> The aggregate
fees billed for professional services rendered by HEIN &amp; ASSOCIATES LLP for
its audit of the Company's annual financial statements for the fiscal year
ended September 30, 2009, and its reviews of the financial statements included
in the Company's Forms 10-Qs for fiscal year 2009 were $86,236 compared to $75,593
in fees for the fiscal year ended 2008.<a name="_Toc92016775"></a><a
name="_Toc89839958"></a><a name="_Toc89839463"></a></p>

<p class=Style10 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;text-indent:0in'><b>Audit Related Fees:</b> There were no
aggregate fees billed by HEIN &amp; ASSOCIATES LLP for assurance and related
services that are reasonably related to the performance of the audit or review
of our financial statements and are not reported under &quot;Audit Fees&quot; for the
fiscal years ended September 30, 2009 and September 30, 2008.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Tax Fees:</b> The aggregate
fees billed by HEIN &amp; ASSOCIATES LLP for the preparation and review of the
Company's tax returns for the fiscal year ended September 30, 2009 were $11,350
compared to $10,900 in fees for the fiscal year ended September 30, 2008.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>All Other Fees</b><b>:</b> The aggregate
fees billed to Good Times Restaurants for all other services rendered by HEIN
&amp; ASSOCIATES LLP for fiscal year 2009 were $12,562 compared to $10,806 in
fees for the fiscal year ended September 30, 2008.&nbsp; These fees are related to a
401(k) plan audit<a name="_Toc92016776"></a><a name="_Toc89839959"></a><a
name="_Toc89839464">.</a></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Audit Committee:</b> Policy on
Pre-Approval Policies of Auditor Services: Under the provisions of the Audit
Committee Charter, all audit services and all permitted non-audit services
(unless subject to a de minimis exception allowed by law) provided by our
independent auditors, as well as fees and other compensation to be paid to
them, must be approved in advance by our Audit Committee.&nbsp; All audit and other
services provided by HEIN &amp; ASSOCIATES LLP during the fiscal year ended
September 30, 2009, and the related fees as discussed above, were approved in
advance in accordance with SEC rules and the provisions of the Audit Committee
Charter.&nbsp; There were no other services or products provided by HEIN &amp;
ASSOCIATES LLP to us or related fees during the fiscal year ended September 30,
2009 except as discussed above.<a name="_Toc92016777"></a><a name="_Toc89839960"></a><a
name="_Toc89839465"></a></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Auditor
Independence</b><b>:</b> The Audit Committee of the Board of
Directors has considered the effect that the provision of the services
described above under the caption &quot;All Other Fees&quot; may have on the independence
of HEIN &amp; ASSOCIATES LLP.&nbsp; The Audit Committee has determined that
provision of those services is compatible with maintaining the independence of
HEIN &amp; ASSOCIATES LLP as the Company's principal accountants.</p>

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<p class=MsoNormal style='margin-bottom:10.0pt;line-height:115%'><b>&nbsp;</b></p>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><b>PART IV</b></p>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><b>Item 15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits, Financial
Statement Schedules.</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The following exhibits are furnished as part of
this report:</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b><u>Exhibit</u></b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Description</u></b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Articles
of Incorporation of the Registrant (previously filed on November 30, 1988 as
Exhibit 3.1 to the registrant's Registration Statement on Form S-18 (File No.
33-25810-LA) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amendment
to Articles of Incorporation of the Registrant dated January 23, 1990
(previously filed on January 18, 1990 as Exhibit 3.1 to the registrant's
Current Report on Form 8-K (File No. 000-18590) and incorporated herein by
reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amendment
to Articles of Incorporation (previously filed as Exhibit 3.5 to the
registrant's Annual Report on Form 10-KSB for the fiscal year ended September
30, 1996 and (File No. 000-18590) incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restated
Bylaws of Registrant dated November 7, 1997 (previously filed as Exhibit 3.6 to
the registrant's Annual Report on Form 10-KSB for the fiscal year ended
September 30, 1997 (File No. 000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restated
Bylaws of Registrant, amended as of August 14, 2007 (previously filed as
Exhibit 3/1 to the registrant's current report on Form 8-K dated August 14,
2007 (File No. 000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certificate
of Designations, Preferences, and Rights of Series B Convertible Preference
Stock of Good Times Restaurants Inc. (previously filed as Exhibit 1 to the
Amendment No. 6 to Schedule 13D filed by The Erie County Investment Co., The
Bailey Company, LLLP and Paul T. Bailey (File No. 005-42729) on February 14,
2005 and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Registration
Rights Agreement dated May 31, 1996 regarding registration rights of the common
stock issuable upon conversion of the Series A Convertible Preferred Stock
(previously filed as Exhibit 10.15 to the registrant's Annual Report on Form
10-KSB/A for the fiscal year ended September 30, 1995 (File No. 000-18590) and
incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amendment
and Agreement regarding Series A Convertible Preferred Stock by and between
Good Times Restaurants Inc. and The Bailey Company dated December 3, 1997,
effective as of October 31, 1997 (previously filed as Exhibit 10.13 to the
registrant's Annual Report on Form 10-KSB for the fiscal year ended September
30, 1997 (File No. 000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Office
lease (previously filed as Exhibit 10.12 to the registrant's Annual Report on
Form 10-KSB for the fiscal year ended September 30, 1998 (File No. 000-18590)
and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1992
Incentive Stock Option Plan, as amended (previously filed as Exhibit 4.9 to the
registrant's Annual Report on Form 10-KSB for the fiscal year ended September
30, 1998 (File No. 000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1992
Non-Statutory Stock Option Plan, as amended (previously filed as Exhibit 4.10
to the registrant's Annual Report on Form 10-KSB for the fiscal year ended
September 30, 1998 (File No. 000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employment
Agreement dated October 3, 2001 between the registrant and Boyd E. Hoback</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wells
Fargo Credit Agreement (previously filed as Exhibit 10.17 to the registrant's
Annual Report on Form 10-KSB for the fiscal year ended September 30, 2003 (File
No. 000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form
of Option Agreement (previously filed as Exhibit 10.18 to the registrant's
Annual Report on Form 10-KSB for the fiscal year ended September 30, 2004 (File
No. 000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form
of Option Grant Notice (previously filed as Exhibit 10.19 to the registrant's
Annual Report on Form 10-KSB for the fiscal year ended September 30, 2004 (File
No. 000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash
Bonus Plan for Boyd Hoback (previously filed as Exhibit 10.20 to the
registrant's Annual Report on Form 10-KSB for the fiscal year ended September
30, 2004 (File No. 000-18590) and incorporated herein by reference)</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities
Purchase Agreements (previously filed on the registrant's Current Report on
Form 8-K dated January 3, 2005 (File No. 000-18590) and incorporated herein by
reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amendment
to Securities Purchase Agreement (previously filed as Exhibit 10.1 to the
registrant's Form 8-K Report dated January 27, 2005 (File No. 000-18590) and
incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2001
Stock Option Plan, as amended (previously filed as Exhibit 99.1 to the
registrant's Registration Statement on Form S-8 filed on May 23, 2005
(Registration No. 333-125150) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.1pt;text-align:justify;text-indent:-51.1pt'>10.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Registration
Statement (previously filed on the registrant's Registration Statement on Form
S-3 filed on February 17, 2005 (Registration No. 333-122890) and incorporated
herein by reference</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.1pt;text-align:justify;text-indent:-51.1pt'>10.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amendment
No. 1 to Registration Statement (previously filed on the registrant's
Registration Statement on Form S-3 filed on April 4, 2005 (Registration No.
333-122890) and incorporated herein by reference</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Conversion
of Series B Convertible Preferred Stock (previously filed as Exhibit 99.1 to
the registrant's Form 8-K Report dated June 8, 2006 (File No. 000-18590) and
incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.17&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan
Agreement and Promissory Note (previously filed as Exhibit 10.1 and 10.2 to the
registrant's Form 8-K Report dated August 7, 2006 (File No. 000-18590) and
incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.18&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceleration
of Vesting of Stock Options and Form of Resale Restriction Agreement
(previously filed as Exhibit 10.1 to the registrant's Form 8-K Report dated
August 8, 2006 (File No. 000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.19&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expansion
of Loan Agreement and Promissory Note (previously filed as Exhibit 10.1 and
10.2 to the registrant's Form 8-K Report dated March 15, 2007 (File No.
000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.20&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan
Agreement and Promissory Note (previously filed as Exhibit 10.1 and 10.2 to the
registrant's Form 8-K Report dated May 7, 2007 (File No. 000-18590) and
incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.21&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amendment
No. 1 to Loan Agreement and Promissory Note (previously filed as Exhibit 10.1
and 10.2 to the registrant's Form 8-K Report dated May 10, 2007 (File No.
000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.22&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2008
Omnibus Equity Incentive Compensation Plan (previously filed as Exhibit 10.1&nbsp;
to the registrant's Form 8-K Report dated January 29, 2008 (File No. 000-18590)
and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.23&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employment
Agreement of Boyd E. Hoback (previously filed as Exhibit 10.1 to the
registrant's Form 8-K Report dated January 29, 2008 (File No. 000-18590) and
incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.24&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Letter
Agreement between Good Times Drive Thru Inc. and CEDA Enterprises, Inc.
(previously filed as Exhibit 10.1 to the registrant's Form 8-K Report dated
March 12, 2008 (File No. 000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.25&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Letter
Agreement between Good Times Drive Thru Inc. and CEDA Enterprises, Inc. and CEJ
Investments, LLC (previously filed as Exhibit 10.2 to the registrant's Form 8-K
Report dated March 12, 2008 (File No. 000-18590) and incorporated herein by
reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.1pt;text-align:justify;text-indent:-51.1pt'>10.26&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amended
and Restated Loan Agreement (previously filed as Exhibit 10.1 to the
registrant's Form 8-K Report dated July 2, 2008 (File No. 000-18590) and
incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.27&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Promissory
Note by Good Times Drive Thru Inc. and Good Times Restaurants Inc. payable to
PFGI II, LLC (previously filed as Exhibit 10.2 to the registrant's Form 8-K
Report dated July 2, 2008 (File No. 000-18590) and incorporated herein by
reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.28&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Departure
of Management Employees, Transfer of Development Rights and Suspension of
Expansion (previously filed in the registrant's Form 8-K Report dated June 26,
2008 (File No. 000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.29&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Suspension
of Development Agreement previously filed as Exhibit 10.41 to the registrant's
Form 10-KSB Report dated December 26, 2008 (File No. 000-18590) and
incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Results
of Operations, Triggering Events and Other Events (previously filed as the
registrant's Form 8-K Report dated January 20, 2009 (File No. 000-18590) and
incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.31&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan
Agreement, Promissory Note, Warrant, Intercreditor Agreement and First
Amendment to Amended and Restated Promissory Note (previously filed as Exhibits
4.1, 10.1, 10.2, 10.3 and 10.4 to the registrant's Form 8-K Report dated April
20, 2009 (File No. 000-18590) and incorporated herein by reference)</p>

<p class=MsoFooter align=center style='text-align:center'>34</p>



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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.32&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Agreement
between Good Times Restaurants Inc. and Mastodon Ventures Inc. (previously
filed as Exhibit 10.1 to the registrant's Form 8-K Report dated August 14, 2009
(File No. 000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>10.33&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Letter
Agreement between Good Times Restaurants Inc. and PFGI II, LLC dated December
14, 2009 and filed herewith</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>14.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Code
of Ethics (previously filed as Exhibit 14.1 to the registrant's Annual Report
on Form 10-KSB for the fiscal year ended September 30, 2003 (File No.
000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>21.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subsidiaries
of registrant (previously filed as Exhibit 21.1 to the registrant's Annual
Report on Form 10-KSB for the fiscal year ended September 30, 1998 (File No.
000-18590) and incorporated herein by reference)</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>23.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Consent
of HEIN &amp; ASSOCIATES LLP</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>31.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Certification
of Chief Executive Officer pursuant to 18 U.S.C. Section 1350</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>31.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Certification
of Controller pursuant to 18 U.S.C. Section 1350</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:51.3pt;text-align:justify;text-indent:-51.3pt'>32.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Certification
of Chief Executive Officer and Controller pursuant to 18 U.S.C. Section 1350</p>

<p class=MsoFooter align=center style='text-align:center'>*Filed
herewith35</p>



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<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
12.0pt;margin-left:0in'><b>SIGNATURES</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt;text-align:justify'>In accordance
with Section 13 or 15(d) of the Exchange Act, the registrant caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=595
 style='border-collapse:collapse'>
 <tr>
  <td width=307 valign=top style='width:3.2in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=288 valign=top style='width:3.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-bottom:12.0pt'><b>GOOD TIMES&nbsp; RESTAURANTS INC.</b></p>
  </td>
 </tr>
 <tr style='height:24.9pt'>
  <td width=307 style='width:3.2in;padding:0in 5.4pt 0in 5.4pt;height:24.9pt'>
  <p class=MsoNormal align=center style='text-align:center'>Date: December
  29, 2009</p>
  </td>
  <td width=288 valign=bottom style='width:3.0in;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:24.9pt'>
  <p class=MsoNormal>/s/
  Boyd E. Hoback</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=top style='width:3.2in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=288 valign=top style='width:3.0in;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Boyd
  E. Hoback</p>
  <p class=MsoNormal>President
  and Chief Executive Officer</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
12.0pt;margin-left:0in'>In
accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=596
 style='border-collapse:collapse'>
 <tr>
  <td width=255 valign=top style='width:191.2pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><i>/s/
  Eric W. Reinhard</i></p>
  </td>
  <td width=52 valign=top style='width:39.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><i>&nbsp;</i></p>
  </td>
  <td width=289 valign=top style='width:216.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-left:.55pt'><i>/s/ Boyd E. Hoback</i></p>
  </td>
 </tr>
 <tr style='height:37.95pt'>
  <td width=255 valign=top style='width:191.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:37.95pt'>
  <p class=MsoNormal>Eric
  W. Reinhard, Chairman</p>
  <p class=MsoNormal>and
  Chief Development Officer</p>
  <p class=MsoNormal style='margin-bottom:6.0pt'>Date: December 29, 2009</p>
  </td>
  <td width=52 valign=top style='width:39.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:37.95pt'>

  </td>
  <td width=289 valign=top style='width:216.75pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:37.95pt'>
  <p class=MsoNormal style='margin-left:.55pt'>Boyd E. Hoback, Director </p>
  <p class=MsoNormal style='margin-left:.55pt'>and President and CEO</p>
  <p class=MsoNormal style='margin-left:.55pt'>Date: December 29, 2009</p>
  </td>
 </tr>
 <tr>
  <td width=255 valign=top style='width:191.2pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:12.0pt'><i>/s/ Geoffrey R. Bailey</i></p>
  </td>
  <td width=52 valign=top style='width:39.2pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=289 valign=top style='width:216.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:12.0pt'><i>/s/ Susan M. Knutson</i></p>
  </td>
 </tr>
 <tr style='height:35.7pt'>
  <td width=255 valign=top style='width:191.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:35.7pt'>
  <p class=MsoNormal>Geoffrey
  R. Bailey, Director</p>
  <p class=MsoNormal>Date:
  December 29, 2009</p>
  </td>
  <td width=52 valign=top style='width:39.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:35.7pt'>

  </td>
  <td width=289 valign=top style='width:216.75pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:35.7pt'>
  <p class=MsoNormal>Susan
  M. Knutson, Controller and</p>
  <p class=MsoNormal>Principal
  Financial Officer</p>
  <p class=MsoNormal style='margin-bottom:6.0pt'>Date: December 29, 2009</p>
  </td>
 </tr>
 <tr>
  <td width=255 valign=top style='width:191.2pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:12.0pt'><i>/s/ Ron Goodson</i></p>
  </td>
  <td width=52 valign=top style='width:39.2pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=289 valign=top style='width:216.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:12.0pt'><i>/s/ Richard J. Stark</i></p>
  </td>
 </tr>
 <tr style='height:26.4pt'>
  <td width=255 valign=top style='width:191.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:26.4pt'>
  <p class=MsoNormal>Ron
  Goodson, Director</p>
  <p class=MsoNormal style='margin-bottom:6.0pt'>Date: December 29, 2009</p>
  </td>
  <td width=52 valign=top style='width:39.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:26.4pt'>

  </td>
  <td width=289 valign=top style='width:216.75pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:26.4pt'>
  <p class=MsoNormal>Richard
  J. Stark, Director</p>
  <p class=MsoNormal>Date:
  December 29, 2009</p>
  </td>
 </tr>
 <tr>
  <td width=255 valign=top style='width:191.2pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:12.0pt'><i>/s/ David Grissen</i></p>
  </td>
  <td width=52 valign=top style='width:39.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:12.0pt'><i>&nbsp;</i></p>
  </td>
  <td width=289 valign=top style='width:216.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
  0in;margin-left:.55pt;margin-bottom:.0001pt'><i>/s/ Alan A. Teran</i></p>
  </td>
 </tr>
 <tr>
  <td width=255 valign=top style='width:191.2pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>David
  Grissen, Director</p>
  <p class=MsoNormal>Date:
  December 29, 2009</p>
  </td>
  <td width=52 valign=top style='width:39.2pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=289 valign=top style='width:216.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-left:.55pt'>Alan A. Teran, Director</p>
  <p class=MsoNormal style='margin-left:.55pt'>Date: December 29, 2009</p>
  </td>
 </tr>
</table>

<p class=MsoFooter align=center style='text-align:center'>36</p>



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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>2
<FILENAME>exhibit311certceo1.htm
<TEXT>
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<p class=MsoNormal align=right style='text-align:right'><b>&nbsp;</b></p>

<p class=MsoNormal align=right style='text-align:right'><b>&nbsp;</b></p>









<p class=MsoNormal align=right style='text-align:right'><b>Exhibit 31.1</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CERTIFICATION OF
THE CHIEF EXECUTIVE OFFICER</b></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'>I, Boyd E. Hoback, certify that:</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I
have reviewed this annual report on Form 10-K of Good Times Restaurants Inc.;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, this report does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
registrant's other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have:</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disclosed in this report any change in the registrant's
internal control over financial reporting that occurred during the registrant's
most recent fiscal quarter (the registrant's fourth fiscal quarter in the case
of an annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and</p>



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<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
registrant's other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><a name="OLE_LINK1">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All significant deficiencies and material
weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial information; and</a></p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal
control over financial reporting.</p>

<p class=MsoNormal>Date:&nbsp; December 29, 2009</p>



<p class=MsoNormal><u>/s/ Boyd E. Hoback</u></p>

<p class=MsoNormal><u>&nbsp;</u></p>

<p class=MsoNormal>Boyd E. Hoback</p>

<p class=MsoFooter>President and Chief Executive Officer</p>

<div class=MsoNormal align=center style='text-align:center'>

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<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>3
<FILENAME>exhibit312certofcontroller1.htm
<TEXT>
<html>

<head>
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<!-- Copyright 2006 E-Services, LLC.-->
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</head>

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<p class=MsoNormal align=right style='text-align:right'><b>&nbsp;</b></p>

<p class=MsoNormal align=right style='text-align:right'><b>&nbsp;</b></p>









<p class=MsoNormal align=right style='text-align:right'><b>Exhibit 31.2</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CERTIFICATION OF
THE CONTROLLER</b></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'>I, Susan M. Knutson, certify that:</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I
have reviewed this annual report on Form 10-K of Good Times Restaurants Inc.;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
registrant's other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have:</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disclosed in this report any change in the registrant's
internal control over financial reporting that occurred during the registrant's
most recent fiscal quarter (the registrant's fourth fiscal quarter in the case
of an annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and</p>



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clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
registrant's other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><a name="OLE_LINK1">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All significant deficiencies and material
weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial information; and</a></p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal
control over financial reporting.</p>

<p class=MsoNormal>Date:&nbsp; December 29, 2009</p>



<p class=MsoNormal><u>/s/ Susan M. Knutson</u></p>

<p class=MsoNormal><u>&nbsp;</u></p>

<p class=MsoNormal>Susan M. Knutson</p>

<p class=MsoFooter>Controller</p>

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<DOCUMENT>
<TYPE>EX-99.906 CERT
<SEQUENCE>4
<FILENAME>exh321ceoandcontrol.htm
<TEXT>
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<title>_</title>


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<body lang=EN-US>



<p class=MsoNormal align=right style='text-align:right'><b>&nbsp;</b></p>

<p class=MsoNormal align=right style='text-align:right'><b>&nbsp;</b></p>









<p class=MsoNormal align=right style='text-align:right'><b>Exhibit 32.1</b></p>

<p class=titlec align=center style='text-align:center'><b>CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350,</b></p>

<p class=titlec align=center style='text-align:center'><b>AS ADOPTED PURSUANT
TO</b></p>

<p class=titlec align=center style='text-align:center'><b>SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002</b></p>

<p class=bodytext5 style='text-align:justify;text-indent:.5in'>In connection
with the Annual Report on Form 10-K of Good Times Restaurants Inc. (the
&quot;Company&quot;) for the fiscal year ended September 30, 2009 as filed with the
Securities and Exchange Commission on the date hereof (the &quot;Report&quot;), I, Boyd
E. Hoback, as Chief Executive Officer of the Company, and Susan M. Knutson, as
Controller of the Company, each hereby certifies, pursuant to and solely for
the purpose of 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley
Act of 2002, that to the best of my knowledge and belief:</p>

<p class=bodytext5 style='margin-left:.5in;text-align:justify;text-indent:-.5in'>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Report fully complies with the requirements of section 13(a) or 15(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and</p>

<p class=bodytext5 style='margin-left:.5in;text-align:justify;text-indent:-.5in'>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company.</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=301 valign=top style='width:225.9pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>/s/ Boyd E. Hoback</p>
  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=289 valign=top style='width:216.9pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>/s/ Susan M. Knutson</p>
  </td>
 </tr>
 <tr>
  <td width=301 valign=top style='width:225.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=289 valign=top style='width:216.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=301 valign=top style='width:225.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Boyd E. Hoback</p>
  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=289 valign=top style='width:216.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Susan M. Knutson</p>
  </td>
 </tr>
 <tr>
  <td width=301 valign=top style='width:225.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Chief Executive Officer</p>
  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=289 valign=top style='width:216.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Controller (principal financial officer)</p>
  </td>
 </tr>
 <tr>
  <td width=301 valign=top style='width:225.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>December 29, 2009</p>
  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=289 valign=top style='width:216.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>December 29, 2009</p>
  </td>
 </tr>
</table>



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<DOCUMENT>
<TYPE>EX-1
<SEQUENCE>5
<FILENAME>exhibitletteragreepfgi21.htm
<TEXT>
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<p class=MsoNormal>December 14, 2009</p>



<p class=MsoNormal>Mr. Fred Gardner</p>

<p class=MsoNormal>Manager, PFGI II, LLC</p>

<p class=MsoNormal>1789 Highland Way</p>

<p class=MsoNormal>Steamboat Springs, CO&nbsp; 80487</p>



<p class=MsoNormal>Dear Fred;</p>

<p class=MsoNormal>This letter agreement will define the terms of an extension
and modification to the Amended and Restated Loan Agreement and Promissory Note
between Good Times Drive Thru Inc. and Good Times Restaurants Inc and PFGI II,
LLC, dated July 1, 2008, as amended on April 20, 2009.&nbsp;&nbsp; These terms will be
incorporated into an Amended and Restated Loan Agreement and Promissory Note
effective as of January 1, 2010.</p>



<p class=MsoListParagraphCxSpFirst style='margin-left:.75in;text-indent:-.25in'>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
maturity date for all outstanding principal and interest under the note will be
extended to December 31, 2012.</p>



<p class=MsoListParagraphCxSpMiddle style='margin-left:.75in;text-indent:-.25in'>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
interest rate will be fixed at 3% over the fixed rate charged by Bank of
Colorado, or 8.65%.</p>



<p class=MsoListParagraphCxSpMiddle style='margin-left:.75in;text-indent:-.25in'>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal
and interest will be due monthly based upon a 25 year amortization of the
$2,500,000 note, with the balance due upon maturity.</p>



<p class=MsoListParagraphCxSpMiddle style='margin-left:.75in;text-indent:-.25in'>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All
of the collateral remains the same as under the existing loan agreement and the
Amended &amp; Restated Promissory Note and Loan Agreement will include restated
collateral agreements.&nbsp;&nbsp; Any proceeds from the sale of any of the collateral
will go toward the payment of outstanding principal on the note and the
remaining balance will be re-amortized over a 25 year schedule, with principal
and interest payable monthly.&nbsp;&nbsp; No additional draws may be made on the loan as
principal is paid down.</p>



<p class=MsoListParagraphCxSpMiddle style='margin-left:.75in;text-indent:-.25in'>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Good
Times will pay a .5% loan fee on January 2, 2010 and upon the maturity of the
note.</p>



<p class=MsoListParagraphCxSpMiddle style='margin-left:.75in;text-indent:-.25in'>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Good
Times will issue to PFGI II, LLC warrants for the purchase of common stock
equal to 5% of the note ($125,000.00).&nbsp; The exercise price of the warrants
shall be the average market price of the stock during the 20 trading days prior
to January 2, 2010 and the warrants shall be exercisable until December 31,
2012.&nbsp; The warrants are detachable from the note and if the note is prepaid in
full or in part, the warrants will remain exercisable for their term.</p>



<p class=MsoListParagraphCxSpMiddle style='margin-left:0in'>If the terms of
this letter agreement are acceptable, please sign where provided below and we
will prepare amended note and loan agreements effective as of January 1, 2010.</p>



<p class=MsoListParagraphCxSpMiddle style='margin-left:0in'><b>Good Times Restaurants, Inc.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PFGI
II, LLC</b></p>

<p class=MsoListParagraphCxSpMiddle style='margin-left:0in'><b>Good Times Drive Thru Inc.</b></p>



<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
 style='border-collapse:collapse;border:none'>
 <tr>
  <td width=277 valign=top style='width:207.9pt;border:solid black 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoListParagraphCxSpMiddle style='margin-left:0in'><u>/s/ Boyd E.
  Hoback</u></p>
  </td>
  <td width=108 valign=top style='width:81.0pt;border:solid black 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=301 valign=top style='width:225.9pt;border:solid black 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoListParagraphCxSpLast style='margin-left:0in'><u>/s/ Fred Gardner</u></p>
  </td>
 </tr>
 <tr>
  <td width=277 valign=top style='width:207.9pt;border:solid black 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoListParagraphCxSpFirst style='margin-left:0in'>Boyd Hoback,
  President &amp; CEO</p>
  </td>
  <td width=108 valign=top style='width:81.0pt;border-top:none;border-left:
  none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=301 valign=top style='width:225.9pt;border-top:none;border-left:
  none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoListParagraphCxSpLast style='margin-left:0in'>Fred Gardner,
  Manager</p>
  </td>
 </tr>
</table>





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<DOCUMENT>
<TYPE>EX-99.14 OTH CONSENT
<SEQUENCE>6
<FILENAME>consent.htm
<TEXT>
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<title>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</title>



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<body lang=EN-US>

























<p class=MsoNormal align=center style='text-align:center'><b>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM</b></p>







<p class=MsoNormal style='text-align:justify'>We
consent to the incorporation by reference of our report dated December&nbsp;28,
2009, accompanying the consolidated financial statements of Good Times
Restaurants, Inc., also incorporated by reference in the Form S-8 Registration
Statements with registration numbers 333-60813, 333-98407, and 333-125150 and
Form S-3 Registration Statement 333-122890 of Good Times Restaurants, Inc., and
to the use of our name and the statements with respect to us, as appearing
under the heading &quot;Experts&quot; in the Registration Statements.</p>









<p class=MsoNormal style='text-align:justify'><b><i>HEIN</i></b><i>
&amp; ASSOCIATES LLP</i> </p>



<p class=MsoNormal style='text-align:justify'>Denver, Colorado</p>

<p class=MsoFooter>December 28, 2009</p>

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