<SUBMISSION>
<ACCESSION-NUMBER>0000950144-06-003679
<TYPE>DEF 14A
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20060516
<FILING-DATE>20060419
<DATE-OF-FILING-DATE-CHANGE>20060419
<EFFECTIVENESS-DATE>20060419
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ALEXANDERS J CORP
<CIK>0000103884
<ASSIGNED-SIC>5812
<IRS-NUMBER>620854056
<STATE-OF-INCORPORATION>TN
<FISCAL-YEAR-END>0103
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>DEF 14A
<ACT>34
<FILE-NUMBER>001-08766
<FILM-NUMBER>06767749
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3401 WEST END AVE
<STREET2>P O BOX 24300
<CITY>NASHVILLE
<STATE>TN
<ZIP>37203
<PHONE>6152691900
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3401 WEST END AVE
<STREET2>SUITE 260
<CITY>NASHVILLE
<STATE>TN
<ZIP>37203
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>VOLUNTEER CAPITAL CORP / TN /
<DATE-CHANGED>19920703
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>WINNERS CORP
<DATE-CHANGED>19890910
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>VOLUNTEER CAPITAL CORP
<DATE-CHANGED>19820520
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>g00553def14a.htm
<DESCRIPTION>J. ALEXANDER'S CORPORATION
<TEXT>
<HTML>
<HEAD>
<TITLE>J. ALEXANDER'S CORPORATION</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 18pt; margin-top: 18pt"><B>SCHEDULE 14A</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>(RULE 14a-101)</B></DIV>



<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>INFORMATION REQUIRED IN PROXY STATEMENT</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>SCHEDULE 14A INFORMATION REQUIRED IN<BR>
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES<BR>
EXCHANGE ACT OF 1934 (AMENDMENT NO.  )</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Filed by the Registrant <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Filed by a Party other than the Registrant <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preliminary Proxy Statement</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Confidential, for Use of the Commission Only
(as permitted by Rule&nbsp;14a-6(e)(2))</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Definitive Proxy Statement</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Definitive Additional Materials</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting Material Pursuant to &#167; 240.14a-12</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><FONT style="border-bottom: 1px solid #000000"><B>J.
Alexander&#146;s Corporation</B></FONT>
</DIV>

<DIV align="center" style="font-size: 10pt">(Name of Registrant as Specified In Its Charter)</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Payment of Filing Fee (Check the appropriate box):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#254;</FONT> No fee required.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;Title of each class of securities to which transaction applies:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;Aggregate number of securities to which transaction applies:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;Per unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule&nbsp;0-11 (Set forth the amount on which the filing fee is calculated and state how it was
determined):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;Proposed maximum aggregate value of transaction:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;Total fee paid:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Fee paid previously with preliminary materials.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2) and
identify the filing for which the offsetting fee was paid previously. Identify the previous filing
by registration statement number, or the Form or Schedule and the date of its filing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;Amount Previously Paid:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;Form, Schedule or Registration Statement No.:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;Filing Party:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;Date Filed:
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000"> NOTICE OF ANNUAL MEETING OF SHAREHOLDERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001"> PROXY STATEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002"> FOR ANNUAL MEETING OF SHAREHOLDERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">PROPOSAL NO. 1: ELECTION OF DIRECTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005"> BACKGROUND INFORMATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">CORPORATE GOVERNANCE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">EXECUTIVE COMPENSATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">SUMMARY COMPENSATION TABLE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">AUDIT COMMITTEE REPORT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012"> COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013"> SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014"> RELATIONSHIP WITH INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</A></TD></TR>
<TR><TD colspan="9"><A HREF="#015">DEADLINE FOR SUBMISSION OF SHAREHOLDER PROPOSALS TO BE<BR> PRESENTED AT THE 2007 ANNUAL MEETING OF SHAREHOLDERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#016"> METHOD OF COUNTING VOTES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#017"> MISCELLANEOUS</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>









<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>J. ALEXANDER&#146;S CORPORATION<BR>
3401 West End Avenue<BR>
Suite&nbsp;260<BR>
P.O. Box 24300<BR>
Nashville, Tennessee 37202</B>
</DIV>

<!-- link1 " NOTICE OF ANNUAL MEETING OF SHAREHOLDERS " -->
<DIV align="left"><A NAME="000"></A></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the Shareholders of J. Alexander&#146;s Corporation:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Annual Meeting of Shareholders of J. Alexander&#146;s Corporation (the &#147;Company&#148;) will be held
at the Loews Vanderbilt Hotel, 2100 West End Avenue, Nashville, Tennessee 37203 at 10:00&nbsp;a.m.,
Nashville time, on Tuesday, May&nbsp;16, 2006 for the following purposes:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To elect six directors to hold office for a term of one year and until their
successors have been elected and qualified; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To transact such other business as may properly come before the meeting or any
adjournment or postponement thereof.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Only shareholders of record at the close of business on March&nbsp;24, 2006 are entitled to notice
of and to vote at the meeting or any adjournment or postponement thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your attention is directed to the Proxy Statement accompanying this notice for a more complete
statement regarding the matters to be acted upon at the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hope very much that you will be able to be with us. If you do not plan to attend the
meeting in person, you are requested to complete, sign and date the enclosed proxy card and return
it promptly in the enclosed addressed envelope, which requires no postage if mailed in the United
States, or follow the instructions on the enclosed proxy card for voting by telephone or the
Internet.
</DIV>

<DIV align="left" style="margin-left: 75%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">By Order of the Board of Directors</DIV>


<DIV align="left" style="margin-left: 75%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>R. GREGORY LEWIS</B><BR>
<I>Secretary</I></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">April&nbsp;19, 2006
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>J. ALEXANDER&#146;S CORPORATION<BR>
3401 West End Avenue<BR>
Suite&nbsp;260<BR>
P.O. Box 24300<BR>
Nashville, Tennessee 37202</B>
</DIV>

<!-- link1 " PROXY STATEMENT " -->
<DIV align="left"><A NAME="001"></A></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>PROXY STATEMENT</B></DIV>

<!-- link1 " FOR ANNUAL MEETING OF SHAREHOLDERS " -->
<DIV align="left"><A NAME="002"></A></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>FOR ANNUAL MEETING OF SHAREHOLDERS</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>May&nbsp;16, 2006</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The enclosed proxy is solicited by and on behalf of the Board of Directors of J. Alexander&#146;s
Corporation (the &#147;Company&#148;) for use at the Annual Meeting of Shareholders to be held on Tuesday,
May&nbsp;16, 2006, at 10:00&nbsp;a.m., Nashville time, at Loews Vanderbilt Hotel, 2100 West End Avenue,
Nashville, Tennessee 37203 and at any adjournments or postponements thereof, for the purposes set
forth in the foregoing Notice of Annual Meeting of Shareholders. Copies of the proxy, this Proxy
Statement and the attached Notice are being mailed to shareholders on or about April&nbsp;19, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proxies may be solicited by mail, telephone or telecopy. All costs of this solicitation will
be borne by the Company. The Company does not anticipate paying any compensation to any party other
than its regular employees for the solicitation of proxies, but may reimburse brokerage firms and
others for their reasonable expenses in forwarding solicitation material to beneficial owners.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares represented by such proxies will be voted in accordance with the choices specified
thereon. If no choice is specified, the shares will be voted FOR the election of the director
nominees named herein. The Board of Directors does not know of any other matters which will be
presented for action at the meeting, but the persons named in the proxy intend to vote or act with
respect to any other proposal which may be properly presented for action according to their best
judgment in light of the conditions then prevailing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A proxy may be revoked by a shareholder at any time before its exercise by attending the
meeting and voting in person, by filing with the Secretary of the Company a written revocation, by
duly executing a proxy bearing a later date or by casting a new vote by telephone or the Internet.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each share of the Company&#146;s Common Stock, $.05 par value (the &#147;Common Stock&#148;), issued and
outstanding on March&nbsp;24, 2006 (the &#147;Record Date&#148;), will be entitled to one vote on all matters to
come before the meeting. As of the Record Date, there were outstanding 6,535,122 shares of Common
Stock.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<!-- link1 "SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, as of March&nbsp;24, 2006, certain information with respect to
those persons known to the Company to be the beneficial owners (as defined by certain rules of the
Securities and Exchange Commission (the &#147;Commission&#148;)) of more than five percent of the Common
Stock, its only voting security, and with respect to the beneficial ownership of the Common Stock
by all directors, each of the executive officers named in the Summary Compensation Table, and all
executive officers and directors of the Company as a group (9 persons). Except as otherwise
specified, the shares indicated are presently outstanding.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Common</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name and Address of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Stock (1)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">E. Townes Duncan**<BR>
3401 West End Avenue, Suite&nbsp;520<BR>
Nashville, TN 37203</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,790,406</TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">27.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Solidus Company<BR>
3401 West End Avenue, Suite&nbsp;520<BR>
Nashville, TN 37203</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,747,846</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">26.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lonnie J. Stout II**** <BR>
3401 West End Avenue, Suite&nbsp;260<br>
Nashville, TN 37203</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">532,176</TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dimensional Fund Advisors, Inc. <br>
1299 Ocean Avenue, 11<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor<BR>
Santa Monica, CA 90401</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">428,600</TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Andreef Equity Advisors, L.L.C. <br>
450 Laurel Street, Suite&nbsp;2105<BR>
Baton Rouge, LA 70801</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">375,727</TD>
    <TD nowrap>(6)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">R. Gregory Lewis***</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140,837</TD>
    <TD nowrap>(7)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">J. Bradbury Reed**</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112,521</TD>
    <TD nowrap>(8)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">J. Michael Moore***</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">75,119</TD>
    <TD nowrap>(9)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mark A. Parkey***</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">63,631</TD>
    <TD nowrap>(10)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Garland G. Fritts**</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">31,800</TD>
    <TD nowrap>(11)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph N. Steakley**</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">11,000</TD>
    <TD nowrap>(12)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brenda B. Rector**</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">11,000</TD>
    <TD nowrap>(12)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All directors and executive officers as a group (9 persons)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2,768,490</TD>
    <TD nowrap>(13)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">38.7</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Less than one percent.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Director.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">***</TD>
    <TD>&nbsp;</TD>
    <TD>Named Officer.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">****</TD>
    <TD>&nbsp;</TD>
    <TD>Director and Named Officer.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pursuant to the rules of the Commission, shares of Common Stock subject to options held by
directors and executive officers of the Company which are exercisable within 60&nbsp;days of March
24, 2006, are deemed outstanding for the purpose of computing such director&#146;s or executive
officer&#146;s percentage ownership and the percentage ownership of all directors and executive
officers as a group, but are not deemed outstanding for the purpose of computing the
percentage ownership of the other persons shown in the table. Unless otherwise indicated,
each individual has sole voting and dispositive power with respect to all shares shown.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 9,000 shares issuable upon exercise of certain options held by Mr.&nbsp;Duncan, 240
shares owned by Mr.&nbsp;Duncan&#146;s wife, 100 shares that Mr.&nbsp;Duncan holds as custodian for minor
children, 4,560 shares that are held in trusts of which Mr.&nbsp;Duncan&#146;s wife is trustee, and
1,747,846 shares that are beneficially owned by Solidus Company (&#147;Solidus&#148;), a general
partnership of which Mr.&nbsp;Duncan is Managing Partner.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 91,700 shares held by Solidus Partners, L.P., a limited partnership of which Solidus
is general partner. Solidus shares voting and dispositive power with respect to its shares
with Mr.&nbsp;Duncan, its Managing Partner, whose beneficial ownership in such shares is shown
above.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 360,000 shares issuable upon exercise of certain options held by Mr.&nbsp;Stout and 9,307
Employee Stock Ownership Plan (&#147;ESOP&#148;) shares allocated to Mr.&nbsp;Stout and held by the J.
Alexander&#146;s Corporation Employee Stock Ownership Trust (the &#147;Trust&#148;), as to which Mr.&nbsp;Stout
has sole voting power and shared dispositive power.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dimensional Fund Advisors, Inc. (&#147;DFA&#148;) is a registered investment advisor. Information is
based solely on the Schedule&nbsp;13G/A filed with the Commission by DFA on February&nbsp;1, 2006.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Andreef Equity Advisors, L.L.C. shares beneficial ownership and voting and dispositive power
with Dane Andreef. Information is based solely on the Schedule&nbsp;13G/A filed with the
Commission by Andreef Equity Advisors, L.L.C. and Mr.&nbsp;Andreef on February&nbsp;14, 2006.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 96,800 shares issuable upon exercise of certain options held by Mr.&nbsp;Lewis and 7,406
ESOP shares allocated to Mr.&nbsp;Lewis and held by the Trust, as to which Mr.&nbsp;Lewis has sole
voting power and shared dispositive power.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 14,000 shares issuable upon exercise of options held by Mr.&nbsp;Reed.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 55,133 shares issuable upon the exercise of certain options held by Mr.&nbsp;Moore and
5,012 ESOP shares allocated to Mr.&nbsp;Moore and held by the Trust, as to which Mr.&nbsp;Moore has sole
voting power and shared dispositive power.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 50,333 shares issuable upon the exercise of certain options held by Mr.&nbsp;Parkey and
3,298 ESOP shares allocated to Mr.&nbsp;Parkey and held by the Trust, as to which Mr.&nbsp;Parkey has
sole voting power and shared dispositive power.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 9,000 shares issuable upon exercise of certain options held by Mr.&nbsp;Fritts.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(12)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 10,000 shares issuable upon exercise of certain options held by such person.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(13)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 614,266 shares issuable upon exercise of certain options held by the directors and
executive officers and 25,023 ESOP shares allocated to the executive officers and held by the
Trust, as to which such officers have sole voting power and shared dispositive power.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<!-- link1 "PROPOSAL NO. 1: ELECTION OF DIRECTORS" -->
<DIV align="left"><A NAME="004"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROPOSAL NO. 1: ELECTION OF DIRECTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six directors are to be elected at the annual meeting for a term of one year and until their
successors shall be elected and qualified. Election of directors requires a plurality of the votes
cast in such election. It is intended that shares represented by the enclosed proxy will be voted
FOR the election of the nominees named in the table set forth below unless a contrary choice is
indicated. Each of the nominees, including each independent director, is presently a director of
the Company and was nominated by the Board. Management believes that all of the nominees will be
available and able to serve as directors, but if for any reason any should not be available or able
to serve, it is intended that such shares will be voted for such substitute nominees as may be
proposed by the Board of Directors of the Company. Certain information with respect to each of the
nominees set forth below.
</DIV>
<!-- link1 " BACKGROUND INFORMATION" -->
<DIV align="left"><A NAME="005"></A></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>BACKGROUND INFORMATION</B></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">E. Townes Duncan
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mr. Duncan, 52, has been a director of the Company since May&nbsp;1989. Mr. Duncan has been the
Managing Partner of Solidus Company (formerly Solidus, LLC), a private investment firm, since
January 1997. Mr. Duncan is also a director of Bright Horizons Family Solutions, Inc., a
childcare services company.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Garland G. Fritts
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mr. Fritts, 77, has been a director of the Company since December&nbsp;1985. Since 1993, Mr.&nbsp;Fritts has
been a consultant for Fry Consultants, Inc., a management consulting firm.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Brenda B. Rector
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ms. Rector, 58, has been a director since May&nbsp;2004. From October 1996 until March 2004, Ms.
Rector was the Vice President, Controller and Chief Accounting Officer of Province Healthcare
Company, an owner and operator of acute care hospitals in non-urban markets.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">J. Bradbury Reed
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mr. Reed, 66, has been a director since May&nbsp;2000. Mr.&nbsp;Reed is a member in the law firm of Bass,
Berry &#038; Sims PLC and has served in various capacities for that firm since 1964. Bass, Berry &#038;
Sims PLC has served as the Company&#146;s outside general counsel since the Company&#146;s organization in
1971.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Joseph N. Steakley
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mr. Steakley, 51, has been a director since May&nbsp;2004. He has served as Senior Vice President &#150;
Internal Audit of HCA Inc., an owner and operator of hospitals, since July&nbsp;1999. From November
1997 to July&nbsp;1999, Mr.&nbsp;Steakley was Vice President&nbsp;&#150;&nbsp;Internal Audit for HCA Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Lonnie J. Stout II
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mr. Stout, 59, has been a director and President and Chief Executive Officer of the Company since
May&nbsp;1986. Since July&nbsp;1990, Mr. Stout has also served as Chairman of the Company. From 1982 to
May&nbsp;1984, Mr.&nbsp;Stout was a director of the Company, and served as Executive Vice President and
Chief Financial Officer of the Company from October&nbsp;1981 to May&nbsp;1984.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "CORPORATE GOVERNANCE" -->
<DIV align="left"><A NAME="006"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CORPORATE GOVERNANCE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company believes that good corporate governance is important to ensure that J. Alexander&#146;s
Corporation is managed for the long-term benefit of its shareholders. During the past year, the
Company has continued to review its corporate governance policies and practices and to compare them
to those suggested by various authorities on corporate governance and the practices of other public
companies. The Company has also continued to review the provisions of the Sarbanes-Oxley Act of
2002, the new and proposed rules of the Commission and the listing standards of the American Stock
Exchange (&#147;AMEX&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Audit Committee charter can be accessed on the Company&#146;s website at
<U>www.jalexanders.com</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Director Independence</B><U> </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board has determined that each of the following directors and nominees will qualify as an
&#147;independent director&#148; within the meaning of the AMEX listing standards.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">E. Townes Duncan<BR>
Garland G. Fritts<BR>
J. Bradbury Reed<BR>
Brenda B. Rector<BR>
Joseph N. Steakley

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Board Member Meetings and Attendance</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company strongly encourages each member of the Board of Directors to attend the Annual
Meeting of Shareholders. All of the Company&#146;s directors attended the 2005 Annual Meeting of
Shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the incumbent directors of the Company attended at least 75% of the aggregate of (i)
the total number of meetings held during 2005 by the Board of Directors while he or she was a
director and (ii)&nbsp;the total number of meetings held during 2005 by all committees of the Board
while he or she was a member of such committees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of the Company held eight meetings in 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Board Committee Composition</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit Committee</I>. The Board of Directors has an Audit Committee. The members of the Audit
Committee are currently Joseph N. Steakley (Chair), Garland G. Fritts and Brenda B. Rector, each of
whom is &#147;independent&#148; within the meaning of the AMEX listing standards and applicable Commission
regulations. In addition, the Board has determined that each of Brenda B. Rector and Joseph N.
Steakley is qualified as an &#147;audit committee financial expert&#148; within the meaning of Commission
regulations and is &#147;financially sophisticated&#148; within the meaning of the AMEX listing standards.
The Audit Committee, which held nine meetings during 2005, meets with the Company&#146;s independent
registered public accounting firm to review the Company&#146;s consolidated financial statements. It is
the function of this committee to ensure that the Company&#146;s financial statements accurately reflect
the Company&#146;s financial position and results of operations.
</DIV>

<P align="center" style="font-size: 10pt">5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Compensation/Stock Option </I>Committee. The Board of Directors has a Compensation/Stock Option
Committee (the &#147;Compensation Committee&#148;). The Compensation Committee members are currently Brenda
B. Rector (Chair), E. Townes Duncan and Garland G. Fritts. The Compensation Committee is
responsible for the periodic review of management&#146;s compensation and administration of the
Company&#146;s equity incentive plan. The Compensation Committee held four meetings during 2005. The
Board has determined that each member of the Company&#146;s Compensation Committee is &#147;independent&#148;
within the meaning of the AMEX listing standards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Nominating Committee. </I>The Company&#146;s Board of Directors currently has no standing nominating
committee, which the Board of Directors believes is appropriate, given the compact size of the
Board. The Board of Directors, including each independent director, participates in the nomination
process as described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Director Candidates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Candidates for nomination to the Board of Directors, including those suggested by shareholders
in compliance with the Company&#146;s charter, bylaws and applicable law, will be submitted to the Board
of Directors with as much biographical information as is available and with a brief statement of
the candidates&#146; qualifications for Board membership.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While the Board of Directors may consider whatever factors it deems appropriate in its
assessment of a candidate for board membership, candidates nominated to serve as directors will, at
a minimum, in the judgment of the independent directors:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be able to represent the interests of the Company and all of its shareholders and
not be disposed by affiliation or interest to favor any individual, group or class of
shareholders or other constituency;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possess relevant background, skills and abilities, and characteristics that fulfill
the needs of the Board at that time;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possess the background and demonstrated ability to contribute to the Board&#146;s
performance of its collective responsibilities, through senior executive management
experience, relevant professional or academic distinction, and/or a record of relevant
civic and community leadership;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>have the highest ethical character and share the core values of the Company as
reflected in the Code of Business Conduct and Ethics;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>have a reputation, both personal and professional, consistent with the image and
reputation of the Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>have relevant expertise and experience, and be able to offer advice and guidance to
the chief executive officer based on that expertise and experience; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>have the ability and the willingness to devote the necessary time and energy to
exercise sound business judgment.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board will preliminarily assess each candidate&#146;s qualifications and suitability. If it is
the consensus of the independent directors that a candidate is likely to meet the criteria for
Board membership, the Board will advise the candidate of the Board&#146;s preliminary interest and, if
the candidate expresses sufficient interest will arrange interviews of the candidate with one or
more members of the Board and request such additional information from
</DIV>

<P align="center" style="font-size: 10pt">6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the candidate as the Board deems appropriate. The independent directors will consider the
candidate&#146;s qualifications, the assessment of the individual&#146;s background, skills and abilities,
and whether such characteristics fulfill the needs of the Board at that time, confer and reach a
collective assessment as to the qualifications and suitability of the candidate for Board
membership.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a majority of the independent directors determine that the candidate is suitable and meets
the criteria for Board membership, the candidate will be invited to meet with senior management of
the Company, both to allow the candidate to obtain further information about the Company and to
give management a basis for input to the Board regarding the candidate. On the basis of its
assessment, and taking into consideration input from senior management, the Board will formally
consider whether to recommend the candidate&#146;s nomination for election to the Board of Directors.
Approval by a majority of the independent directors will be required to recommend the candidate&#146;s
nomination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Code of Business Conduct and Ethics</B><U> </U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Board of Directors has adopted a Code of Business Conduct and Ethics applicable
to the members of its Board of Directors and officers, including the Chief Executive Officer and
Chief Financial Officer. The Company&#146;s Code of Business Conduct and Ethics may be accessed on its
website at <U>www.jalexanders.com</U> or a copy requested by writing to the following address: J.
Alexander&#146;s Corporation, Suite&nbsp;260, 3401 West End Avenue, Nashville Tennessee 37203. The Company
will make any legally required disclosures regarding amendments to, or waivers of, provisions of
the Code of Business Conduct and Ethics on its website.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Communications with Members of the Board</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders interested in communicating directly with members of the Company&#146;s Board of
Directors may do so by writing to Board of Directors, c/o Corporate Secretary, J. Alexander&#146;s
Corporation, 3401 West End Avenue, Suite&nbsp;260, P.O. Box 24300, Nashville, Tennessee 37202.
</DIV>

<P align="center" style="font-size: 10pt">7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "EXECUTIVE COMPENSATION" -->
<DIV align="left"><A NAME="007"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXECUTIVE COMPENSATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides information as to annual, long-term or other compensation during
fiscal years 2005, 2004 and 2003 for the Company&#146;s Chief Executive Officer and each of the other
executive officers of the Company who were serving as executive officers at January&nbsp;1, 2006 whose
salary and bonus exceeded $100,000 (collectively, the &#147;Named Officers&#148;).
</DIV>
<!-- link1 "SUMMARY COMPENSATION TABLE" -->
<DIV align="left"><A NAME="008"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY COMPENSATION TABLE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Long Term Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Annual Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Awards</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Other Annual</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Restricted</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>All Other</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name and Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock Awards</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Compensation</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Salary ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Bonus($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($) (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Options (#)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($) (4)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lonnie J. Stout II</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">340,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">26,393 </TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4,440 </TD>
    <TD nowrap>(5)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Chairman, President,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">325,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,938</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,614</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Chief Executive</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">285,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,270</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Officer and Director</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">R. Gregory Lewis</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">171,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">17,903 </TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4,223 </TD>
    <TD nowrap>(6)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Vice-President, Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,938</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,995</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,124</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Financial Officer and</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,037</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Secretary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">J. Michael Moore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">137,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">20,272 </TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3,538 </TD>
    <TD nowrap>(7)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Vice-President,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,338</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,455</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Human Resources</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,606</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,243</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">and Administration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mark A. Parkey</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">19,627 </TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3,339 </TD>
    <TD nowrap>(8)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Vice-President and</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,046</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Controller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,389</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,049</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes, to the extent applicable, an automobile allowance, premium cost of medical
insurance, cost of a tax preparation service, automobile expense taxable to the Named Officer
and imputed interest under the 1999 Loan Program taxable to the Named Officer.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes an automobile allowance of $11,076 and $9,897 of imputed interest under the 1999
Loan Program taxable to Mr.&nbsp;Stout.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes an automobile allowance of $10,656 and taxable automobile expense of $4,286 for Mr.
Lewis, $3,822 for Mr.&nbsp;Moore and $5,817 for Mr.&nbsp;Parkey.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>The ESOP shares included in this column for 2005 are valued at $8.02 per share, the closing
price of the Company&#146;s Common Stock on December&nbsp;30, 2005.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">8
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes the $612 premium cost of term life insurance maintained for the benefit of Mr.
Stout, $1,575 contributed by the Company to the Company&#146;s 401(k) Plan on behalf of Mr.&nbsp;Stout,
and 281 ESOP shares allocated to Mr.&nbsp;Stout.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes the $612 premium cost of term life insurance maintained for the benefit of Mr.
Lewis, $1,438 contributed by the Company to the Company&#146;s 401(k) Plan on behalf of Mr.&nbsp;Lewis
and 271 ESOP shares allocated to Mr.&nbsp;Lewis.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes the $612 premium cost of term life insurance maintained for the benefit of Mr.
Moore, $1,197 contributed by the Company to the Company&#146;s 401(k) Plan on behalf of Mr.&nbsp;Moore
and 216 ESOP shares allocated to Mr.&nbsp;Moore.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes the $612 premium cost of term life insurance maintained for the benefit of Mr.
Parkey, $1,050 contributed by the Company to the Company&#146;s 401(k) Plan on behalf of Mr.&nbsp;Parkey
and 209 ESOP shares allocated to Mr.&nbsp;Parkey.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">9
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Option Grants in Last Fiscal Year</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides information with respect to option grants to the named executive
officers during 2005 under the J. Alexander&#146;s Corporation 2004 Equity Incentive Plan. The Company
has never granted SARs. This table includes the number of shares of common stock underlying
options granted during this year, the percentage that such options represent of all options granted
to employees during the year, the exercise price, the expiration date, and the potential realizable
value of the options assuming both a 5% and 10% annual return on the underlying common stock from
the date of grant of such option to the end of each option term.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Individual Grants</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Potential Realizable Value</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Granted to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>at Assumed Annual Rates</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Employees</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Expiration</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>of Stock Appreciation for</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Granted(#)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>in 2005(%)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($/Share)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Option Terms</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>5% ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>10% ($)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lonnie J. Stout II</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/21/15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155,581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">472,823</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/21/15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,695</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131,006</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">207,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">603,829</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">R. Gregory Lewis</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/21/15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,206</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/21/15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155,085</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">393,017</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">511,223</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">J. Michael Moore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/21/15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,206</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/21/15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,390</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">262,011</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">380,217</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mark A. Parkey</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/21/15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,206</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/21/15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,390</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">262,011</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">380,217</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">10
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Option Exercises and Year-End Value Table</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides information as to options exercised by the Named Officers during
fiscal 2005. None of the Named Officers has held or exercised separate SARs. In addition, this
table includes the number of shares covered by both exercisable and unexercisable stock options as
of January&nbsp;1, 2006. Also reported are the values for the &#147;in-the-money&#148; options, which represent
the positive spread between the exercise price of any such outstanding stock options and the
year-end price of the Common Stock.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Number of Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Value of Unexercised</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Underlying Unexercised</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>In-the-Money Options</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Acquired on</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Value</B></TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Options
At Fiscal Year End (#)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>At Fiscal Year End ($)(1)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exercise (#)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Realized ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Unexercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Unexercisable</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lonnie J. Stout II</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">360,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,102,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">R. Gregory Lewis</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">301,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">J. Michael Moore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,210</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mark A. Parkey</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,210</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Reflects the value of outstanding options based on the
closing price of the Company&#146;s Common Stock on December&nbsp;30, 2005.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Salary Continuation Agreements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since 1978, the Company has entered into salary continuation agreements with eligible
employees (the &#147;Salary Continuation Agreements&#148;) which will remain in effect for 2006, subject to
amendment. The Salary Continuation Agreements generally provide for a retirement benefit of 50% of
the employee&#146;s salary on the date of entering into the agreement. The retirement benefit is payable
over 15&nbsp;years commencing at age 65. The Salary Continuation Agreements also provide that in the
event an employee dies while in the employ of the Company after entering into a Salary Continuation
Agreement but before retirement, his or her beneficiaries, for a period of one year, will receive
100% of such employee&#146;s salary at the time of entering into the Salary Continuation Agreement.
Thereafter, for a period of 10&nbsp;years, or until such time as the employee would have attained age
65, whichever period is longer, the beneficiaries will receive 50% of such salary yearly. In
addition, the Salary Continuation Agreements provide scheduled vested benefits which are payable to
the employee in a lump sum upon termination of service with the Company for any reason other than
death or retirement at age 65. These amounts are currently $989,524 for Mr.&nbsp;Stout (expected to
increase to approximately $1,009,000 in 2006), $341,536 for Mr.&nbsp;Lewis, $114,188 for Mr.&nbsp;Moore and
$113,059 for Mr.&nbsp;Parkey. All officers and certain other key employees of the Company with three
full years of service are eligible to enter into a Salary Continuation Agreement. Directors of the
Company who are not also executive officers or employees are not parties to a Salary Continuation
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The annual benefits payable upon retirement at age 65 for each of Messrs.&nbsp;Stout and Lewis are
currently $138,750 (expected to increase to $175,950 in 2006) and $74,000, respectively.
Currently, Mr.&nbsp;Moore would receive
</DIV>

<P align="center" style="font-size: 10pt">11
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">$59,900 and Mr.&nbsp;Parkey would receive annual benefits of $63,000
payable upon retirement at age 65. These amounts may be adjusted periodically.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Termination Benefits</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to severance benefits agreements with the Company, in the event that Mr.&nbsp;Stout or Mr.
Lewis is terminated or resigns after a change in responsibilities or a decrease in the level of
compensation, then he will receive an amount equal to 18&nbsp;months&#146; compensation. Based on current
levels of compensation, such amounts would be $527,850 for Mr.&nbsp;Stout and $266,400 for Mr.&nbsp;Lewis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently each director who is not an employee of the Company receives a monthly fee of $1,250
plus a fee of $1,500 for each attended meeting of the Board or any Committee of which he or she is
a member. These levels of compensation are applicable to 2005 and 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each director who is not also an employee of the Company is eligible for grants of
non-qualified stock options under the 2004 Equity Incentive Plan (the &#147;Equity Incentive Plan&#148;).
Generally, directors who are not employees of the Company have been awarded options to purchase
10,000 shares of Common Stock upon joining the Board and options to purchase 1,000 shares of Common
Stock for each succeeding year of service, with the exercise price equal to the fair market value
of the Common Stock on the date of grant. Pursuant to the terms of the Equity Incentive Plan, no
non-employee director is eligible for a grant of incentive stock options under the Equity Incentive
Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation Committee Report</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decisions on compensation of the Company&#146;s executive officers are made by the Compensation
Committee of the Company&#146;s Board of Directors. Each member of the Compensation Committee is a
non-employee director and is independent as that term is defined in the current rules of the AMEX.
It is the responsibility of the Compensation Committee to determine whether in its judgment the
Company&#146;s executive compensation policies are reasonable and appropriate, meet their stated
objectives and effectively serve the best interests of the Company and its shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Compensation Philosophy and Policies for Executive Officers</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee believes that the primary objectives of the Company&#146;s executive
compensation policies should be:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to attract and retain talented executives by providing
compensation that is, overall, competitive with the compensation
provided to executives at companies of comparable size and
position in the restaurant industry, while maintaining
compensation within levels that are consistent with the Company&#146;s
overall financial objectives and operating performance;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to provide the appropriate incentives for executive officers to
work towards the achievement of the Company&#146;s annual sales,
operating and development targets; and</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">12
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to determine if it is appropriate for the Company to provide
long-term incentive compensation to its executive officers in the
form of stock options or other stock-based awards in order to
align the interests of its executive officers closely with those
of its shareholders and the long-term interests of the Company.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee believes that the Company&#146;s executive compensation policies should
be reviewed each year following the time when the financial results of the prior year are
available. The policies are reviewed in light of their consistency with the Company&#146;s financial
performance, the success achieved in meeting its sales and operating performance targets, achieving
its overall strategic business plan objectives and its position within the restaurant industry.
The compensation of individual executive officers is reviewed annually by the Compensation
Committee in light of the executive compensation policies established for that year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee sets the base compensation of the executive officers at a level
that it believes appropriate considering the overall strategic direction of the Company, its
position within the relative segment of the food service industry in which it operates and the
overall responsibilities of each executive officer. The Compensation Committee believes that in
addition to corporate performance, it is appropriate to consider in setting and reviewing executive
compensation the personal contributions the particular individual may make to the success of the
corporate enterprise. Such qualitative factors as demonstrated leadership skills, planning
initiatives, development and morale building skills, and other such related factors have been
deemed to be important qualitative factors to take into account when considering levels of
compensation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Compensation of Executive Officers</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee believes that the compensation for each of the Named Officers
should consist of a base salary, the potential for an annual bonus and long-term stock-based
incentive compensation and has applied the policies described herein to fiscal 2005 compensation
for executive officers as described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Base Compensation</I>. Base salaries for the Named Officers are at fixed levels generally
believed to be between the 25th and 75th percentiles of salaries paid to senior managers with
comparable qualifications, experience and responsibility at other corporations engaged in similar
businesses as the Company. The Compensation Committee subjectively determined, on the basis of
discussions with the Chief Executive Officer and its experience in business generally and with the
Company specifically, what it viewed to be appropriate levels of base compensation after taking
into consideration each executive&#146;s contributions and the level of performance of the Company
overall. As a result of this review, increases averaging approximately 4.8% in the base salaries
for the Named Officers for fiscal 2005 were made, with specific increases varying from 4.0% to
5.6%, reflecting the Compensation Committee&#146;s subjective judgment as to individual contributions
towards meeting the Company&#146;s overall financial objectives and financial performance. The
Compensation Committee did not assign any relative weight to the quantitative and qualitative
factors which it applied subjectively in reaching its base compensation decisions. For 2006, base
salaries were increased by an average of 3.5%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Annual Incentive Compensation</I>. In 2005, the Compensation Committee adopted the Cash Incentive
Performance Program (&#147;CIPP&#148;), which provided for annual bonuses to be paid to the Named Officers in
cash as a percentage of their base salaries for 2005 if the Company achieved specified adjusted
earnings before interest, taxes, depreciation, amortization, pre-opening costs and stock option
expense (adjusted EBITDA) for fiscal 2005. The possible bonuses for 2005 ranged from 12.5% to 70%
of base salary levels, depending on the Committee&#146;s determinations for each Named Officer and the
adjusted EBITDA achieved. The Compensation Committee also may consider, and has in the past
considered, other factors when awarding annual bonuses, such as the executive&#146;s ability to increase
same store sales, improve corporate operating profits or maintain them at the appropriate levels
for the sales achieved, and meet the Company&#146;s overall strategic business plan objectives.
Additional considerations may
</DIV>

<P align="center" style="font-size: 10pt">13
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">include the executive&#146;s contribution to concept development and
improvement in financial performance and the impact the executive officers have on programs that
enhance shareholder value.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee generally believes that an annual bonus award in the range of 12.5%
to 100% of the executive officer&#146;s annual base compensation is appropriate in light of the
relatively low to moderate
base salary levels. For fiscal 2005, no bonuses were awarded to the executive officers because the
Company failed to reach the adjusted EBITDA target set forth in the CIPP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Long-Term Incentive Compensation</I>. During the Company&#146;s fiscal year the Compensation Committee
considers the advisability of granting the Company&#146;s senior executives long-term incentive
compensation in the form of awards under the Company&#146;s stock incentive plan. The Compensation
Committee believes that its past grants of stock options have successfully focused the Company&#146;s
management team on building profitability and enhancing shareholder value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company currently has no set policy as to when stock options should be awarded. The
Compensation Committee believes that the Company should make it a part of its regular executive
compensation policies to consider granting annual awards of stock options to executive officers to
provide long-term incentives as part of each executive&#146;s annual compensation package. The
Compensation Committee also believes that any grant should be made on terms established at the time
of the annual review, and that the exercise price of stock options should generally be the fair
market value of the Company&#146;s Common Stock on the date of grant. Generally, the Compensation
Committee&#146;s policy is that stock options should vest in increments over a period of three or more
years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee believes that long-term stock-based incentive compensation should
be structured so as to closely align the interests of the executives with those of the Company&#146;s
shareholders. The Compensation Committee determines the award of stock option grants to the
executive officers and takes into account the recommendations of the Chief Executive Officer prior
to approving annual awards of long-term stock-based incentive compensation to the other executive
officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, the Compensation Committee approved grants of stock options to each of the Named
Officers after considering that the only grants received by those persons in recent years were
grants for the purchase of 5,000 shares received by each of Messrs.&nbsp;Moore and Parkey in 2003 and
that granting additional equity incentives would better align the interests of the Named Officers
with those of the shareholders. Each Named Officer received an option to purchase a specified
number of shares at an exercise price of $8.22 per share, which was the closing sale price of the
Common Stock on the American Stock Exchange on the date of grant, as well as an option to purchase
a specified number of shares at an exercise price of $9.50 per share, a 15.6% premium to the
then-current market price. The share amounts granted are those set forth above, under &#147;Option
Grants in Last Fiscal Year.&#148; The options were granted pursuant to the Company&#146;s 2004 Equity
Incentive Plan. The options have a term of ten years and are intended to be incentive stock
options to the extent permitted under the Internal Revenue Code. The options are immediately
exercisable, but any shares of Common Stock that are purchased are subject to restrictions on
resale and may not be sold or disposed of prior to December&nbsp;21, 2007. The resale restrictions
lapse upon termination of the optionee&#146;s employment for any reason. The Compensation Committee
also considered that the Company would not be required to recognize compensation expense with
respect to options that were granted in 2005 and were fully vested at the time of grant.
</DIV>

<P align="center" style="font-size: 10pt">14
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Loan Program</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 1999, the Company&#146;s Board of Directors established a loan program designed to enable
eligible employees to purchase shares of the Company&#146;s Common Stock. Under the program eligible
participants were permitted to borrow an amount equal to the full price of Common Stock purchased.
The program authorized $1&nbsp;million in loans to employees. The employee loans are payable on
December&nbsp;31, 2006, unless repaid sooner pursuant to terms of the loan program. Pursuant to the
terms of the loan program, participants received one share of Common Stock and one share of
restricted stock under the Company&#146;s 1994 Employee Stock Incentive Plan for every 20 shares
purchased pursuant to the loan program. The restricted stock vested in 20% increments on the second
through sixth anniversaries of the date of issuance. The Compensation Committee believes that the
loan program, which facilitated employee purchases of Common Stock, more closely aligns employee
interests with shareholder interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Compensation of Chief Executive Officer</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee believes that the Chief Executive Officer&#146;s compensation is
consistent with its general policies concerning executive compensation and is appropriate in light
of the Company&#146;s financial objectives and performance. Awards of long-term incentive compensation
to the Chief Executive Officer are considered concurrently with awards to other executive officers
and follow the same general policies as such other long-term incentive awards. The Compensation
Committee granted a stock option award to the Chief Executive Officer in 2005, with a significant
portion exercisable at a price per share in excess of the fair market value of the Common Stock on
the date of grant, in order to more closely link compensation to stockholders&#146; interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Compliance with Internal Revenue Code Section&nbsp;162(m</I>).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;162(m) of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;), enacted in 1993,
generally prohibits public companies from deducting the Chief Executive Officer&#146;s and four other
most highly compensated executive officers&#146; compensation, to the extent such compensation exceeds
$1&nbsp;million for any individual officer. Performance-based compensation is not subject to the
deduction limit if certain requirements are met. Since the compensation of each of the Company&#146;s
executive officers is significantly less than $1&nbsp;million, the Company has not addressed the steps
that it would take to structure the performance-based portion of the compensation of its executive
officers in a manner that would comply with the statute.
</DIV>

<DIV align="left" style="margin-left: 70%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Respectfully submitted,</DIV>


<DIV align="left" style="margin-left: 70%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Brenda B. Rector (Chair)<BR>
E. Townes Duncan<BR>
Garland G. Fritts</DIV>


<P align="center" style="font-size: 10pt">15
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Performance Graph</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following graph compares the five-year cumulative returns of $100 invested on December&nbsp;29,
2000 in (a)&nbsp;the Company, (b)&nbsp;HemScott Restaurant Group Index (&#147;Restaurant Group Index&#148;) (formerly
known as the CoreData Restaurant Group Industry Index), (c)&nbsp;the Standard &#038; Poor&#146;s 500 Index (&#147;S&#038;P
500 Index&#148;), and (d)&nbsp;the American Stock Exchange Market Index (&#147;AMEX Market Index&#148;) assuming the
reinvestment of all dividends:
</DIV>




<P align="center">
<IMG src="g00553g0055301.gif" alt="LOGO">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="22%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="25"></TD>
</TR>

<TR>
    <TD colspan="25" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="2">12/29/2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="2">12/30/2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="2">12/29/2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="2">12/28/2003</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="2">1/2/2005</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="2">1/1/2006</FONT></B></TD>
</TR>

<TR>
    <TD colspan="25"></TD>
</TR>

<TR>
    <TD colspan="25" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">&nbsp;J Alexander&#146;s Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116.73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">302.64</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">319.93</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">350.94</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="25" align="left"><HR size="1" noshade></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">&nbsp;Restaurant Group Index
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101.41</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80.95</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111.45</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">136.12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">144.82</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="25" align="left"><HR size="1" noshade></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">&nbsp;AMEX Market Index
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95.39</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">91.58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">124.66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">142.75</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">157.43</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="25" align="left"><HR size="1" noshade></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">&nbsp;S&#38;P 500 Index
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">88.12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68.64</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">88.33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">97.94</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">102.75</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="25" align="left"><HR size="1" noshade></TD>

</TR>

</TABLE>
</CENTER>





<P align="center" style="font-size: 10pt">16
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "AUDIT COMMITTEE REPORT" -->
<DIV align="left"><A NAME="009"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AUDIT COMMITTEE REPORT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee of the Board of Directors is comprised of three non-employee directors and
operates under a written charter. The Restated Audit Committee Charter is posted on the Company&#146;s
website at www.jalexanders.com. The Audit Committee is comprised of Joseph N. Steakley (Chairman),
Brenda B. Rector and Garland G. Fritts, each of whom is independent under the rules of the American
Stock Exchange and applicable Securities and Exchange Commission regulations. The Board of
Directors has determined that each of Joseph N. Steakley and Brenda B. Rector is an &#147;audit
committee financial expert&#148; as defined by the Securities and Exchange Commission, and that each of
them is &#147;independent&#148; as that term is used in item 7(d)(3)(iv) of Schedule&nbsp;14A of the Securities
Exchange Act. During 2005, the Audit Committee met nine times.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The primary purpose of the Audit Committee is to assist the Board of Directors in fulfilling
its responsibility to oversee (i)&nbsp;the integrity of the financial statements of the Company, (ii)
the Company&#146;s compliance with legal and regulatory requirements, (iii)&nbsp;the independent registered
public accounting firm&#146;s qualifications and independence, and (iv)&nbsp;the performance of the Company&#146;s
independent registered public accounting firm. The Audit Committee is directly responsible for the
appointment, compensation and oversight of the work of the independent registered public accounting
firm. The independent registered public accounting firm reports directly to the Audit Committee.
Management has the primary responsibility for the financial statements and the reporting process,
including internal control over financial reporting. The Company&#146;s independent registered public
accounting firm is responsible for planning and carrying out proper annual audits and quarterly
reviews of the Company&#146;s financial statements in accordance with standards established by the
Public Company Accounting Oversight Board (United States) and expressing an opinion on the
conformity of the Company&#146;s audited financial statements with U.S. generally accepted accounting
principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the performance of its oversight function, the Audit Committee has reviewed and discussed
the audited financial statements with management and the independent registered public accounting
firm. The Audit Committee has discussed with the independent registered public accounting firm the
matters required to be discussed by Statement on Auditing Standards No.&nbsp;61 (Communication with
Audit Committees), as amended by Statement on Auditing Standards No.&nbsp;90 (Audit Committee
Communications). In addition, the Audit Committee has received from the independent registered
public accounting firm the written disclosures required by Independence Standards Board No.&nbsp;1
(Independence Discussions with Audit Committees) and discussed with them its independence from the
Company and its management. The Audit Committee has considered whether the independent registered
public accounting firm&#146;s provision of non-audit services to the Company is compatible with the
independent registered public accounting firm&#146;s independence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee discussed with the Company&#146;s independent registered public accounting firm
the overall scope and plans for its audit. The Audit Committee meets with the independent
registered public accounting firm, with and without management present, to discuss the results of
its audit and the evaluations of the Company&#146;s internal control over financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In reliance on the reviews and discussions referred to above, the Audit Committee recommended
to the Board of Directors that the audited financial statements be included in the Company&#146;s Annual
Report on Form 10-K for the year ended January&nbsp;1, 2006, for filing with the Securities and Exchange
Commission.
</DIV>

<DIV align="left" style="margin-left: 70%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Respectfully submitted,<BR>
Joseph N. Steakley (Chair)<BR>
Garland G. Fritts<BR>
Brenda B. Rector</DIV>



<P align="center" style="font-size: 10pt">17
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The foregoing report of the Audit Committee shall not be deemed incorporated by reference by any
general statement incorporating by reference the Proxy Statement into any filing under the
Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the
Company specifically incorporates this information by reference, and shall not otherwise be deemed
filed under such acts.
</DIV>

<!-- link1 "CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS" -->
<DIV align="left"><A NAME="010"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;Townes Duncan, a director of the Company, is a minority owner of and manages the
investments of Solidus Company, the Company&#146;s largest shareholder. Pursuant to a Stock Purchase
and Standstill Agreement between Solidus, LLC (the predecessor to Solidus) and the Company dated
March&nbsp;22, 1999, Solidus purchased 1,086,266 shares of Common Stock for $3.75 per share, for an
aggregate purchase price of $4,073,497.50 and agreed to certain restrictions on its ownership for
seven years, including restrictions on its ability to sell Common Stock or hold more than 33% of
the Common Stock. Solidus also agreed it would not exercise rights attributable to the 1,086,266
shares of Common Stock purchased on March&nbsp;22, 1999, during the Company&#146;s rights offering in 1999.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Stock Purchase and Standstill Agreement was scheduled to expire on March&nbsp;22, 2006. The
Company and Solidus entered into an Amended and Restated Standstill Agreement dated July&nbsp;31, 2005
(&#147;Standstill Agreement&#148;) which replaces the former Stock Purchase and Standstill Agreement. In the
Standstill Agreement, the former restrictions were continued and Solidus agreed that (i)&nbsp;Solidus
and its affiliates would not acquire or hold more than 33% of the Company&#146;s Common Stock; (ii)
Solidus and its affiliates would not solicit proxies for a vote of the shareholders of the Company;
(iii)&nbsp;Solidus and Solidus, L.P., a partnership in which Solidus is the general partner, any
successor investment partnerships and owners of those entities receiving distributions of shares of
Common Stock, would not sell the Company&#146;s Common Stock, except to the Company, a person, entity or
group approved by the Company or to an affiliate of Solidus, or as otherwise noted below; and (iv)
the above restrictions on ownership and ability to solicit proxies would terminate in the event of
certain tender offers or exchange offers, a notice filing with the Department of Justice relating
to the acquisition by a third party of more than 15% of the outstanding Common Stock or with the
Commission relating to the acquisition by a third party of more than 10% of the outstanding Common
Stock, the Company&#146;s proposing or approving a merger or other business combination, or a change to
a majority of the Company&#146;s Board of Directors over a two-year period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The restrictions will be extended quarterly or annually up to December, 2009, at the election
of the Company, as long as the Company on a quarterly basis, declares and pays beginning before
January&nbsp;15, 2006, minimum cash dividends on its Common Stock, payable to all shareholders of the
Company, of at least $0.025 per share, per quarter or, at its election, on an annual basis pays
aggregate dividends of $0.10 per share per twelve-month period. The minimum dividend payable to
effect an extension of the restrictions will be adjusted proportionately in the event of a stock
split or stock dividend or certain other corporate transactions. On January&nbsp;13, 2006, the Company
paid a cash dividend of $0.10 per share to all shareholders of the Company which was sufficient to
extend the standstill restrictions until January&nbsp;15, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Company agreed, beginning December&nbsp;1, 2006, to allow Solidus to sell, free of
restrictions in the Standstill Agreement, up to 100,000 shares of Common Stock each year, and to
allow Solidus, L.P. to sell up to 6,000 shares each year, and, if all such shares are not sold by
November&nbsp;30 of the following year, they may sell those shares during the remaining term of the
Standstill Agreement. The Standstill Agreement also extended a 2003 arrangement whereby the Company
authorized Solidus to pledge the Common Stock of the Company owned by it as collateral security for
the payment and performance of Solidus&#146; obligations under a credit agreement with a bank. In the
event that Solidus defaults on its obligations to the bank, and such default results in the need to
liquidate the related collateral, the bank is required to give the Company written notice of the
number of shares it intends to sell
</DIV>

<P align="center" style="font-size: 10pt">18
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and the price at which such shares are to be sold. The Company has the exclusive right within the
first 30&nbsp;days subsequent to receipt of such written notice to purchase all or any portion of the
shares subject to sale and, should the Company decline to purchase any of the applicable shares,
the bank may sell such shares over the ensuing 50&nbsp;days on terms no more favorable than the terms
stated in the written notice referred to above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Standstill Agreement was unanimously approved on behalf of the Company by the Audit
Committee of the Board of Directors, which is composed of three members, all of whom are
independent directors for purposes of considering a conflict of interest transaction under
Tennessee corporate law and approving the transaction on behalf of the Board of Directors. For
this purpose, the Audit Committee also was advised by special counsel. Negotiations with Solidus
were conducted by the Audit Committee Chair on behalf of the Company. In determining to approve
the transaction, the Audit Committee considered the following factors in support of the standstill
and the payment of a cash dividend to all shareholders:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Extending the restrictions on Solidus for an additional period may allow the
Company to continue to pursue its business plan without the uncertainty associated
with the possibility of a significant percentage of the Company&#146;s Common Stock being
available for sale upon expiration of the original standstill.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Audit Committee concluded it was to the Company&#146;s potential advantage to
evaluate and negotiate an agreement to extend the standstill prior to the year in
which the standstill was expected to expire.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The structure of the transaction, including a cash dividend to all shareholders
payable on a per-share basis, provides the opportunity for the same value to all
shareholders of the Company, rather than only to Solidus, although only Solidus must
abide by the standstill restrictions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s current financial and cash flow projections support the board&#146;s
expectation that cash will be available to pay the minimum dividend necessary to
extend the standstill and the board confirmed its intention to declare a dividend
sufficient to effect an initial extension of the standstill.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company will have the opportunity to consider, on a periodic basis, whether it
is to the Company&#146;s advantage and in the best interest of shareholders to continue to
use cash to make the dividend payment and extend the standstill for an additional
quarter or year, or to use the cash for other corporate purposes, which might include
development activities, including new restaurant openings, reducing debt, capital
expenditures or other uses.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Shareholders may benefit from a favorable tax treatment for qualified cash
dividends, which are generally taxed at a 15 % rate for U.S. taxpayers.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company will have the opportunity to consider in the future adopting a dividend
reinvestment plan whereby shareholders could elect to purchase additional shares of
the Company&#146;s Common Stock with their cash dividends.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The board also considered the following factors that it deemed potentially unfavorable
consequences of an
agreement requiring the Company to pay the cash dividend in consideration for the extension of
the standstill:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Extension of the standstill might discourage third party offers to acquire the
Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Using cash to pay a dividend to all shareholders may divert cash from corporate
purposes that would have been more beneficial to shareholders.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 1999, the Company&#146;s Board of Directors established a loan program designed to enable
eligible employees to purchase shares of the Company&#146;s Common Stock. Under the terms of the loan
program, all full-time employees as well as part-time employees who had at least five years of
employment with the Company were
</DIV>

<P align="center" style="font-size: 10pt">19
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">eligible to borrow amounts ranging from a minimum of $10,000 to a maximum of 100% of their annual
salary. Borrowings in excess of the maximum were allowed upon approval by the Compensation
Committee or the officers of the Company, as applicable. The aggregate amount of loans authorized
was $1&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the terms of the loan program, participants received one share of bonus Common
Stock and one share of restricted stock issued pursuant to the Company&#146;s 1994 Employee Stock
Incentive Plan for every 20 shares purchased pursuant to the loan program. The shares of
restricted stock vested at a rate of 20% on each of the second through the sixth anniversaries of
February&nbsp;18, 2000, vesting in full in 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following officers borrowed amounts under the 1999 loan program in excess of $60,000. Mr.
Stout borrowed $424,005 to purchase 128,971 shares of Common Stock. He received 6,449 shares of
bonus stock and 6,449 shares of restricted stock. Mr.&nbsp;Moore borrowed $76,397 to purchase 23,238
shares. He received 1,162 shares of bonus stock and 1,162 shares of restricted stock. In addition,
Mr.&nbsp;Moore received an additional loan in the amount of $1,283. The market price of the Common
Stock was $3.625 per share at the time of the award of the shares of the bonus stock and the shares
of restricted stock. Currently, Mr.&nbsp;Stout owes $373,849 to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All loans made under the loan program bear interest at an annual rate of 3%, payable
quarterly, and are due and payable on December&nbsp;31, 2006. In the event a participant receives from
the Company bonus compensation, 30% of any such bonus is to be applied to the outstanding principal
balance of the loan. Further, a participant&#146;s loan may become due and payable upon termination of
a participant&#146;s employment or failure to make any payment when due, as well as under other
circumstances set forth in the loan program documents. The interest rate and payment terms are
adjusted to higher rates in the event a participant sells or pledges the shares purchased pursuant
to the loan program (including shares of bonus stock and restricted stock awarded in connection
with the program) without the Company&#146;s prior consent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Reed is a member of the law firm of Bass, Berry &#038; Sims PLC. This law firm has served as
the Company&#146;s outside legal counsel since the Company&#146;s inception in 1971.
</DIV>

<P align="center" style="font-size: 10pt">20
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS" -->
<DIV align="left"><A NAME="011"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes information concerning the Company&#146;s equity compensation plans
at January&nbsp;1, 2006:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Remaining Available for</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Future Issuance Under</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>be Issued upon</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Equity Compensation</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Exercise of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Weighted Average Exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Plans (Excluding Shares</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price of Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Reflected in First</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Plan Category</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>and Warrants</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Options and Warrants</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Column)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Equity compensation
plans approved by
shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">868,143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">186,169</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Equity compensation
plans not approved by
shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">868,143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">186,169</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<!-- link1 " COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION " -->
<DIV align="left"><A NAME="012"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee of the Board of Directors is composed of Brenda B. Rector, Chair,
E. Townes Duncan and Garland G. Fritts. None of these persons has at any time been an officer or
employee of the Company or any of its subsidiaries. In addition, there are no relationships among
the Company&#146;s executive officers, members of the Compensation Committee or entities whose
executives serve on the Board of Directors that require disclosure under applicable Commission
regulations.
</DIV>
<!-- link1 " SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE" -->
<DIV align="left"><A NAME="013"></A></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;16(a) of the Exchange Act requires the Company&#146;s executive officers and directors, and
persons who own more than 10% of a registered class of the Company&#146;s equity securities, to file
reports of ownership and changes in ownership with the Commission and AMEX. Executive officers,
directors and greater than 10% shareholders are required by regulation of the Commission to furnish
the Company with copies of all Section 16(a) forms they file.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based solely on a review of the Forms 3, 4 and 5 and amendments thereto and certain written
representations furnished to the Company, the Company believes that during the fiscal year ended
January&nbsp;1, 2006, its executive officers and directors complied with all applicable filing
requirements, except E. Townes Duncan filed a late report on Form&nbsp;4 with respect to the sale of
1,400 shares of Common Stock on November&nbsp;16, 2005.
</DIV>
<!-- link1 " RELATIONSHIP WITH INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM" -->
<DIV align="left"><A NAME="014"></A></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>RELATIONSHIP WITH INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KPMG LLP (&#147;KPMG&#148;) has been appointed to serve as the Company&#146;s independent registered public
accounting firm for fiscal 2006 and served as the Company&#146;s independent registered public
accounting firm for the year ended January&nbsp;1, 2006. As reported on a Current Report on Form 8-K
filed with the Commission, on April&nbsp;20, 2004, KPMG was appointed to serve as the Company&#146;s
independent registered public accounting firm for the year
</DIV>

<P align="center" style="font-size: 10pt">21
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ended January&nbsp;2, 2005 and Ernst &#038; Young
LLP (&#147;Ernst &#038; Young&#148;) was dismissed as the Company&#146;s independent
registered public accounting firm. The decision to change independent registered public accounting
firm was made by the Audit Committee. The Audit Committee expressed its satisfaction with the
services of Ernst &#038; Young, which had served as the Company&#146;s independent registered public
accounting firm since the Company&#146;s inception.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ernst &#038; Young&#146;s reports on the Company&#146;s consolidated financial statements for the fiscal
years ended December&nbsp;28, 2003 and December&nbsp;29, 2002 did not contain an adverse opinion or
disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or
accounting principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fiscal years ended December&nbsp;28, 2003 and December&nbsp;29, 2002 and through the date of
Ernst &#038; Young&#146;s dismissal, there were no disagreements with Ernst &#038; Young on any matter of
accounting principles or practices, financial statement disclosure or auditing scope or procedure
which, if not resolved to Ernst &#038; Young&#146;s satisfaction, would have caused them to make reference to
the subject matter in connection with their report on the Company&#146;s consolidated financial
statements for such years; and there were no reportable events as listed in Item&nbsp;304(a)(1)(v) of
Regulation&nbsp;S-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the years ended December&nbsp;28, 2003 and December&nbsp;29, 2002 and through the date of Ernst &#038;
Young&#146;s dismissal, the Company did not consult KPMG regarding any of the matters or events set
forth in Items 304(a)(2)(i) and (ii)&nbsp;of Regulation&nbsp;S-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has been informed that representatives of KPMG plan to attend the Annual Meeting.
Such representatives will have the opportunity to make a statement if they desire to do so and will
be available to respond to shareholders&#146; questions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit Fees</I>. The aggregate fees billed to the Company by KPMG during 2005 for professional
services rendered for the audit of the Company&#146;s annual financial statements, for the reviews of
the financial statements included in the quarterly reports on Form 10-Q and services that are
normally provided by the independent registered public accounting firm in connection with statutory
and regulatory filings totaled $160,000. The aggregate fees billed to the Company by KPMG during
2004 for professional services rendered for the audit of the Company&#146;s annual financial statements,
for the reviews of the financial statements included in the quarterly reports on Form 10-Q and
services that are normally provided by the independent registered public accounting firm in
connection with statutory and regulatory filings totaled $202,500.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit-Related Fees. </I>The aggregate fees billed to the Company by KPMG for professional
services related to employee benefit plans totaled $18,000 in 2004 and no such services were
provided by KPMG in 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tax Fees</I>. No tax-related services were provided to the Company by KPMG in 2004 or 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>All Other Fees</I>. No other services were provided to the Company by KPMG in 2004 or 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All audit related services, tax services and other services for 2004 and 2005 were
pre-approved by the Audit Committee, except for de minimis fees approved in advance by the Audit
Committee chair and disclosed to and ratified by the Audit Committee pursuant to the Committee&#146;s
pre-approval policy for non-audit services. The Audit Committee concluded that the provision of
such services by KPMG was compatible with the maintenance of such firm&#146;s independence in the
conduct of its auditing function.
</DIV>

<P align="center" style="font-size: 10pt">22
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "DEADLINE FOR SUBMISSION OF SHAREHOLDER PROPOSALS TO BE<BR> PRESENTED AT THE 2007 ANNUAL MEETING OF SHAREHOLDERS" -->
<DIV align="left"><A NAME="015"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DEADLINE FOR SUBMISSION OF SHAREHOLDER PROPOSALS TO BE<BR>
PRESENTED AT THE 2007 ANNUAL MEETING OF SHAREHOLDERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any proposal intended to be presented for action at the 2007 Annual Meeting of Shareholders by
any shareholder of the Company must be received by the Secretary of the Company not later than
December&nbsp;20, 2006, in order for such proposal to be considered for inclusion in the Company&#146;s Proxy
Statement and proxy relating to its 2007 Annual Meeting of Shareholders. Nothing in this paragraph
shall be deemed to require the Company to include any shareholder proposal that does not meet all
the Commission&#146;s requirements for inclusion in effect at the time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For other shareholder proposals to be timely (but not considered for inclusion in the
Company&#146;s Proxy Statement), a shareholder&#146;s notice must be received by the Secretary of the Company
not less than 75&nbsp;days nor more than 90&nbsp;days prior to April&nbsp;19, 2007. For proposals that are not
timely filed, the Company retains discretion to vote proxies it receives. For proposals that are
timely filed, the Company retains discretion to vote proxies it receives provided (1)&nbsp;it includes
in the Proxy Statement advice on the nature of the proposal and how the Company intends to exercise
its voting discretion and (2)&nbsp;the proponent does not issue a proxy statement.
</DIV>
<!-- link1 " METHOD OF COUNTING VOTES" -->
<DIV align="left"><A NAME="016"></A></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>METHOD OF COUNTING VOTES</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless a contrary choice is indicated, all duly executed proxies will be voted in accordance
with the instructions set forth on the proxy card. A broker non-vote occurs when a broker holding
shares registered in street name is permitted to vote, in the broker&#146;s discretion, on routine
matters without receiving instructions from the client, but is not permitted to vote without
instructions on non-routine matters, and the broker returns a proxy card with no vote (the
&#147;non-vote&#148;) on the non-routine matter. Under the rules and regulations of the primary trading
markets applicable to most brokers, the election of directors is a routine matter on which a broker
has the discretion to vote if instructions are not received from the client in a timely manner.
Abstentions and broker non-votes will be counted as present for purposes of determining the
existence of a quorum. Directors will be elected by a plurality of the votes cast in the election
by the holders of the Common Stock represented and entitled to vote at the Annual Meeting.
Abstentions and broker non-votes will not be counted as votes for or against any director nominee.
Any other matters that may properly come before the meeting or any adjournment thereof shall be
approved by the affirmative vote of a majority of the votes cast by holders of Common Stock
represented and entitled to vote at the Annual Meeting, and abstentions and &#147;non-votes&#148; will have
no effect on the outcome of the vote.
</DIV>
<!-- link1 " MISCELLANEOUS" -->
<DIV align="left"><A NAME="017"></A></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>MISCELLANEOUS</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In certain instances, one copy of the Company&#146;s Annual Report or Proxy Statement may be
delivered to two or more shareholders who share an address. The Company will deliver promptly upon
written or oral request a separate copy of the annual report or Proxy Statement, to a shareholder
at a shared address to which a single copy of the documents was delivered. Conversely,
shareholders sharing an address who are receiving multiple copies of annual reports or Proxy
Statements may request delivery of a single copy.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="85%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Requests should be addressed to:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">R. Gregory Lewis<BR>
Secretary<BR>
J. Alexander&#146;s Corporation<BR>
3401 West End Avenue, Suite&nbsp;260<BR>
P. O. Box 24300<BR>
Nashville, Tennessee 37202<BR>
(615)&nbsp;269-1900</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">23
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the Company&#146;s Annual Report is being mailed to shareholders concurrently with the
mailing of this Proxy Statement. It is important that proxies be returned promptly to avoid
unnecessary expense. Therefore, shareholders who do not expect to attend in person are urged,
regardless of the number of shares of stock owned, to date, sign and return the enclosed proxy
promptly or follow the instructions on the proxy card to vote by telephone or the Internet.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>A COPY OF THE COMPANY&#146;S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED JANUARY 1, 2006 MAY BE
OBTAINED, WITHOUT CHARGE, BY ANY SHAREHOLDER TO WHOM THIS PROXY STATEMENT IS SENT, UPON WRITTEN
REQUEST TO R. GREGORY LEWIS, SECRETARY, J. ALEXANDER&#146;S CORPORATION, P.O. BOX 24300, NASHVILLE,
TENNESSEE 37202.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date: April&nbsp;19, 2006
</DIV>



<P align="center" style="font-size: 10pt">24
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">

</DIV>

<DIV align="center">
<B><FONT size="2">J. ALEXANDER&#146;S CORPORATION</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">EMPLOYEE STOCK OWNERSHIP PLAN PARTICIPANT
VOTING INSTRUCTION FORM</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This Voting Instruction Form is tendered to
direct SunTrust Bank, Nashville, N.A. (the &#147;Trustee&#148;),
as Trustee of the J.&nbsp;Alexander&#146;s Corporation Employee
Stock Ownership Plan (&#147;ESOP&#148;), as to the manner in
which all allocated shares in the ESOP account of the
undersigned (the &#147;Voting Shares&#148;) shall be voted at
the Annual Meeting of Shareholders (the &#147;Annual
Meeting&#148;) to be held at Loews Vanderbilt Hotel, 2100 West
End Avenue, Nashville, Tennessee 37203 on Tuesday, May&nbsp;16,
2006, at 10:00 a.m., local time, and any adjournments or
postponements thereof.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The undersigned hereby directs the Trustee to
vote all Voting Shares of the undersigned as shown below on this
Voting Instruction Form at the Annual Meeting.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Election of Directors:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2"><FONT face="wingdings">&#111;</FONT><B>&nbsp;</B></FONT></TD>
    <TD align="left">
    <B><FONT size="2">FOR</FONT></B><FONT size="2"> all of the
    following nominees (except as indicated to the contrary below):
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T.
Duncan, G. Fritts, B. Rector, B. Reed, J. Steakley and L. Stout.
</FONT>
</DIV>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
withhold authority to vote for any individual nominee, please
print name or names below:
</FONT>

<DIV align="left">
<HR size="1" width="100%" align="left" color="black" noshade>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp; </FONT></TD>
    <TD align="left">
    <B><FONT size="2">WITHHOLD AUTHORITY
    </FONT></B><FONT size="2">to vote for all nominees
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">In the Trustee&#146;s discretion, the Trustee is
    entitled to act on any other matter which may properly come
    before said meeting or any adjournment thereof.
    </FONT></TD>
</TR>

</TABLE>

<P align="center">
<I><FONT size="2">(Continued and to be signed on reverse
side)</FONT></I>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<I><FONT size="2">(Continued from other side)</FONT></I>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;
<B><FONT size="2">IMPORTANT: Please date and sign this Voting
Instruction Form </FONT></B><FONT size="2">and return it to the
Trustee of the J. Alexander&#146;s Corporation Employee Stock
Ownership Plan, SunTrust Bank, Nashville, N.A., P.O.
Box&nbsp;305110, Nashville, Tennessee&nbsp;37230-9979 by
May&nbsp;11, 2006.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;
<FONT size="2">A stamped and addressed envelope is enclosed for
your convenience. <B>Your Voting Instruction Form must be
received by the Trustee by May&nbsp;11, 2006.</B>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;
<FONT size="2">Your shares will be voted by the Trustee in
accordance with your instructions. If no choice is specified,
your shares will be voted <B>FOR </B>the nominees in the
election of directors.
</FONT>

<P align="center">
<B><FONT size="2">PLEASE SIGN, DATE AND RETURN
PROMPTLY</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="52%"></TD>
    <TD width="48%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" color="black" noshade></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" color="black" noshade></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD align="left"><FONT size="2">&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date:&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&nbsp;, 2006</FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="52%"></TD>
    <TD width="48%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="right">
    <HR size="1" align="right" color="black" noshade></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Please sign exactly as your name appears at left.
    If registered in the names of two or more persons, each should
    sign. Executors, administrators, trustees, guardians, attorneys,
    and corporate officers should show their full titles.
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left">
<HR size="1" width="100%" align="left" color="black" noshade>
</DIV>

<DIV align="center">
<FONT size="2">If your address has changed, please PRINT your
new address on this line.
</FONT>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">



<P><DIV style="position: relative; float: left; width: 70%">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>J.
ALEXANDER&#146;S</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 1pt">c/o
Stock Transfer Department<BR>
P.O. Box 105649<BR>
Atlanta GA 30348
</DIV>

</DIV>
<DIV style="position: relative; float: right; width: 27%">
<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="center" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>Vote by Telephone</B></FONT></DIV>


<DIV align="center"><DIV style="font-size: 3pt; margin-top: 1pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">Have your proxy card
available when you call <B>Toll-Free
1-888-693-8683 </B>using a touch-tone
phone and follow the simple
instructions to record your
vote.
</DIV>

<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="center" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>Vote by Internet</B></FONT></DIV>


<DIV align="center"><DIV style="font-size: 3pt; margin-top: 1pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">Have your proxy card
available when you access the
website <B>www.cesvote.com </B>and follow
the simple instructions to record
your vote.
</DIV>

<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="center" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>Vote by Mail</B></FONT></DIV>


<DIV align="center"><DIV style="font-size: 3pt; margin-top: 1pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">Please mark, sign and date
your proxy and return it in
the <B>postage-paid envelope </B>provided
or return it to: Corporate
Election Services, P.O. Box 3230,
Pittsburgh, PA 15230.
</DIV>

</DIV>
<BR clear="all"><BR>
<P><DIV style="position: relative; float: left; width: 32%">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Vote by Telephone</B></DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 2pt">Call <U>Toll-Free</U> using a</DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 2pt">touch-tone telephone:</DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 2pt"><B>1-888-693-8683</B></DIV>
</DIV>

</DIV>
<DIV style="position: relative; float: left; margin-left: 2%; width: 32%">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Vote by Internet</B></DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 2pt">Access the Website and</DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 2pt">cast your vote:</DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 2pt"><B>www.cesvote.com</B></DIV>
</DIV>

</DIV>
<DIV style="position: relative; float: right; width: 32%">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Vote by Mail</B></DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 2pt">Return your proxy</DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 2pt">in the postage-paid</DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 2pt">envelope provided</DIV>
</DIV>

</DIV>
<BR clear="all"><BR>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Vote 24 hours a day, 7&nbsp;days a week!</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>If you vote by telephone or over the Internet, do not mail your proxy card.</B>

</DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 10pt">
<DIV style="width: 22%">
<P>
<DIV style="width: 100%; border: 3px double black; padding: 11px;">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><FONT style="font-family: Wingdings">&#232;</FONT></B>
</DIV>
</DIV>
</DIV>
</DIV>
<DIV style="position: relative; float: right; width: 32%">
</DIV>
<BR clear="all"><BR>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Proxy card must be signed and dated below.<BR>
<FONT style="font-family: Wingdings">&#234;</FONT> Please fold and detach card at perforation before mailing. <FONT style="font-family: Wingdings">&#234;</FONT></B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV style="border-bottom: 1px dashed #000000; font-size: 1px">&nbsp;</DIV>

</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>J.
ALEXANDER&#146;S CORPORATION</B></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>J.
ALEXANDER&#146;S</B></DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>Proxy
solicited by the Board of Directors for the<br>Annual Meeting of
Shareholders to be held on Tuesday, May&nbsp;16, 2006</B>
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">The undersigned hereby appoints Lonnie J. Stout
II and R. Gregory Lewis, and each of them, as proxies, with full
power of substitution, to vote all shares of the undersigned as
shown below on this proxy at the Annual Meeting of Shareholders
of J.&nbsp;Alexander&#146;s Corporation to be held at Loews
Vanderbilt Hotel, 2100 West End Avenue, Nashville, Tennessee
37203 on Tuesday, May&nbsp;16, 2006, at 10:00 a.m., local time,
and any adjournments or postponements thereof.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 4pt">
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;
</TD>
    <TD align="left" valign="top" nowrap colspan="2">, 2006</TD>
</TR>
<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 3pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top"><DIV align="justify">Please sign exactly as your name appears at left.
    If registered in the names of two or more persons, each should
    sign. Executors, administrators, trustees, guardians, attorneys,
    and corporate officers should show their full titles.</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>





<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">PLEASE
SIGN, DATE AND RETURN PROMPTLY

</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 12pt; margin-top: 48pt"><B>YOUR VOTE IS IMPORTANT</B>
</DIV>



<DIV align="center" style="font-size: 12pt; margin-top: 6pt; margin-left: 6%; margin-right: 6%">Regardless
of whether you plan to attend the Annual Meeting of<br>Shareholders,
you can be sure your shares are represented at the<br>meeting by
promptly returning your proxy in the enclosed envelope.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Proxy
card must be signed and dated on the reverse side.<br><FONT style="font-family: Wingdings">&#234;</FONT> Please fold and detach card at perforation before mailing. <FONT style="font-family: Wingdings">&#234;</FONT></B><BR>
<DIV style="border-bottom: 1px dashed #000000; font-size: 5pt">&nbsp;</DIV>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom" style="font-size:3pt">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>J.
ALEXANDER&#146;S CORPORATION</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B> PROXY</B>&nbsp;&nbsp;</TD>
</TR>
</TABLE>
</DIV>



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Election of Directors:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2"><FONT face="wingdings">&#111;</FONT><B>&nbsp;</B></FONT></TD>
    <TD align="left">
    <B><FONT size="2">FOR</FONT></B><FONT size="2"> all of the
    following nominees (except as indicated to the contrary below):
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T.
Duncan, G. Fritts, B. Rector, B. Reed, J. Steakley and L. Stout.
</FONT>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
withhold authority to vote for any individual nominee, please
print name or names below:
</FONT>


<DIV align="left" style="font-size: 10pt; margin-top: 16pt">
<HR size="1" width="100%" align="left" color="black" noshade>
</DIV>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;<B>WITHHOLD
AUTHORITY </B>to vote for all nominees
</FONT>

<P align="left">
<FONT size="2">(2)&nbsp;In their discretion on any other matter
which may properly come before said meeting or any adjournment
thereof.
</FONT>




<P align="left">
<HR size="1" width="100%" align="left" color="black" noshade>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If you have changed your address, please PRINT your
new address on this line.
</DIV>



<P align="center">
<B><FONT size="2">IMPORTANT: </FONT></B><FONT size="2">Please
date and sign this proxy on the reverse side.
</FONT>













<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>g00553g0055301.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 g00553g0055301.gif
M1TE&.#EA4`(!`=4@`$!`0,#`P+^_OS\_/W]_?_#P\*"@H&!@8+"PL#`P,-#0
MT.#@X._O[Y"0D%!04'!P<!`0$%]?7R`@(-_?W\_/SY^?GT]/3X^/CZ^OKR\O
M+V]O;P\/#Q\?'X"`@````/_______P``````````````````````````````
M````````````````````````````````````````````````````````````
M`````````````````````````````````"'Y!`$``"``+`````!0`@$!``;_
M0)!P2"P:C\BD<LEL.I_0J'1*K5JOV*QVR^UZO^"P>$PNF\_HM'K-;KO?\+A0
M00PLB(N`?,_O^_^`@8*#80@`0@4'!08&0HR)!822DY25EI>8F`4.AR`="$(`
M!06="!V9J*FJJZRMKD,=`9T)=R`'"`@'0@L)K[Z_P,'"PU5VLD(>L!W+0\G$
MS]#1TM.#"XW'(,Z>RZ?(U-_@X>+C6`?+!Q*G$+`-#=T@Z^3R\_3UT@H!`0T)
M>@YT(/X4.)@S\,@#``@3*ES(L*'#AQ`C2IQ(L:+%BQ@S:MS(L:/'CR!#BAQ)
MLJ3(>&BP!3BU28B#2+&0`+@@H*;-FSASZMS)LZ?/_Y]`@PH=2K2H49T>\BE=
MRK2ITZ=0HTJ=2K6JU:M8LVK=RK6KUZ]@`_1*8VT(K@:10!1H@"L)``$?XLJ=
M2[>NW;MX\^K=R[>OW[^``PNVJ\V>X<-3.E5Z.[BQX\>0(TN>C+<PXLN8W5YB
M3+FSY\^@0_.UG+ET:<64.(M>S;JU:[^D3<L^C'J2ZM>X<^L&'7NV[WFU)=W>
M3;RX<=B_D]L+3FCX\>?0G_=63GT:\T'.HVO?[GIZ]>_$K@O*SKV\><K>P:O_
M)3X0^?-R&7B6#S\O@PGHU^M_UA[0^[P$9##`@`1R`)=@&`Q@`05U3:#!7!AL
M<*!D$UA`@%X+YH4!`1@(H/]!!J]=8$%^^Y4(3']__(<7`1/*Q6)C`UQ85P0;
MT!?7`"U&1H",>$6`WUT:##"7!3:"EN-DZ9FHI"4H^J'B72_2%:5@,=;%@`8<
M7#`7CG$Q(,"/=GEI(WXM3B#`CEU^&1\%#,@HYEP3>(#!7!0P^(&9<]V'GWP"
MV/AFEPS8J>8'%(P8%YAXRD7F7TDNZ6ASFQU)YTX1'$D`33G9J5>5=-%T`0=;
MPE5!GP8R$`$'$W!)P8,6]&F!A18(^0$!;&9PX:@,&"A`!A<,<,&>$7Q@:%P7
M>``DFP-04&$$&EC(`0$:;(!?!15\$$$%;?+*@:D,7'#A!1GT&61<&B#+YJL$
MQ(K_W*/L8M)D'^\Q0."\`QI85X#T$L@7IT-^P,`&U=X(5[@"1&`H!QH<B,&<
M:*+Y@;$4!#OKA00;_,$`<\HEP(B:SFIL7:O&A0&(T,8E@*P:/"@K`QYX">*=
M%Y[\@<PS"QGR!R-/'-?'H[7K\V*1"C:EBY+VQ:_(+&XLZ\4U+2T7!MMJC(&%
M.C]<]8XTR\7E7!EDT'$%+=_+H[$.TWQRUCAF/4$%!`AIMI`.6^TPSWLU^O/=
M;[S+QY-V#1V7WW\=;:VB'AR((P5A$_JW!0_BK&7#,I+=^(Z(T\?@UEUZ/&&<
M`<]U@<0?;%"UV1%0`.J-%-`\0;`RO_W!YW*)/O>Z>-?N_V30@5V:4Z6"(=OY
MG8W'E8'$7'(0[-HS8_`O7!A_H,&%LU-0H_,7&G]GM9C/S*`&6LJ%I8T53##!
MZ:N/+NL%U:)Z8\U_/Y@@^UX*.?ZAP<[>E]VVYV^&WGOP7=>9.PK@CL`4.`V`
MSE\IH\_J#F>!"P0J`QZ(P'TL@)]F3>`"&[A4!C"0L@DD""X$,)X%)$@!")*P
M@3:*F(>*]($*#(![%[`3VP3@0`=I@$P<Z%#W5%@!-HF(00+8@`8JP`%L/>N"
M&9JA`Z]TPP_>3W]0A`/_Y."_^E@1+UG;#OZBR,4N3/$*"'"`!!XP!`,@I"`*
M^,0[C%#%*[IQ+EG4SA:[2$<L?/^Q"@4`10$D\(\'Y*,6G6"$3(KVQD)::8;E
MF6,=%YF8,Z0%!*(`@0%N,80`H/$Z;32D)K7(2)\%@`/YXH`>RG#'*QB@`8X`
M@`<2`)-W]":3FXSE<139R=\$@$<N&B492ED%!"0``KKDQ4"8X8TCP%*6R-0-
M+6LYFUO>2Y=CX*45'%"0722#F-D89#*W>9YE,M,TSI02-,4@S6+49AT!T`4(
M%H!)0G+SG;OQ@$GF2<]ZVO.>^#1)`G#YMP3@$R5H,``HAK``,D+2$8TPICOA
MR=#NA.6A$(VH1"=*T8I:5!\'2(`'/""!?=ZK`1=5REC*H(`$&"`?:H%`+`8*
M@C2:PBW_"VVH3$/CS6^20P$&.`A''1"+2(1S+@089QC*N89CSO2HC:FI3:>!
M4YU*@*<!>&0E*X63"`@5#$15@U&1RE5&+?4R&%7E4WNZA`5PXZP=J,4N<=?5
MMGI&J5]U!48U.M:H`HU),76K7KT:5W#,=:=DS416T[!58G5OK\9A(6_Z&HV_
MUE6JJ1@L&@H[@0U(RS$G8U$%;E@>:"W,8I-QD*\4&Y^VM0:NC`7$7Q,`5<BV
M0K)G*.P+Q^483F&0M/_[S)$B`#H&#$LR`J#;7>*XV-2R8K4'`"DT8+N_O$+I
M9;RJK8R".R$!:*I.<6&;7+"+%SWYJT^*FEF77B87L!5I0H&B_\^@[L(`+_V/
M9_AA4WP$\#Z3=8Q$QKT$<I5+#>:2DI"^S=>\/&`GQ`EX0+^]"Z<(,#T*:(EJ
MM*(``4Q5.FM-@`)N,U:%"+"L9H6L5;Z%E<T*9Z,(D!>.O/)5R"K`.@U;*,#I
M.O',/A8@:$VO`G.*@,T>/.%3I<JY>D%M?LNPWZM:AZUVZ4D&@2JAG>QE`->R
MU8\LH$/1)4MQ#I/8QV@,O<8M3&?V$^Z`XM.K.35/6/39H-7`+",U:^QC-./2
MRV1&91J*[@,(`W*0AZS:!F1TE<DU<CC\NTL]NTC&'[#58&(DO;'1!0,>D)'#
M&(#C+?\->CRB+X0CMS.ZJ&LN']L:S__0Q.6KX3*X)I-5VF0E,^'B+&J1$3*?
MRXC69214"47&#*&C:6A"$1ADOPY,E8(;L`UD[#X/A)N,B+3F4CL,`X_#=*?7
M+)=B%2G4![KLK+3D;$G_#M7L8]JN4AVZ8^,G7<%[C*QG#4F=,"?7LMDU.7O=
M-0$*L&M4DE&Q&&3B]FI)2_^:F,O\M67YI*QJS7M>U2SMI^&!6F!QN5;$\1.V
M@SN,@G"$LZKA(B&<":G?W4K>\F+-[BT`P"Z=@'=RY#U40T_`WC#G,&`VEB'G
M@=@"'KCR$*DULR+FR@(5R,"#0OB\<G7P=1D$%P>;R*57$=!4&N@0!H)5*`?Z
M*P(+RQC1H=7_)BI_65%!<N`/J_YJQB7+MSE7%L8M")EUS_KD=8&`1A,0Z/6P
M'*N]1FQGXE8?M^<W'PFP"S^4=/<O%%;OD.$[?/S.S'RXXP``T.@J`0`!E"^I
M\%XX/.(;<\$87I'Q4'1\!R`O>7^:`Z30A#M=,-]?)&_^]77CL^A)OU'3=P#U
M35#]7%A_9+S"_O>QM^GL(U][`)P>I54`@(!Y+PWFAW&,L##%/URZQB)H'OA'
M!;UOAE]ZX]\>^27G?1[5PD=))K03@;RU]?.._;9J'Q6?#*6@F\#]XA]__B4_
MJ!D>&4D`_,,!^7!)VM1^!"@7[Y<)/Y5+]*</HT=\DW=_^==(:7!*_\6T#=CT
M2NQ7@-EW&`GX-]!4?P_X??@7@5#`?"#@2\"434)P5LTP@!K8?@>("1TX*PC1
M?1!(@N2T!M2D@A;H2B[X@L`7@_K%3[/B1R.(@X:W!L<``+5P`/F@3NST@T`(
M>QY0:U9XA5B8A5JXA5S8A5MX`$1(`.;@A618AF9XAFB8AFJXAFQ8AA*P!@)E
M?J$PAW*H4%.(?578AGJXAVL(AO<RAGP8B((XB(18B'SXAF904B>E2VHT?6H$
M4X[A8)ZW5[@%&968&T)H"3,85$C(!B:8!48E+\9#(\SV&!)$9F?6)0IB)C%2
M$U-S)SIF=0F"+5U29GFRBGD11'HF6E9W%_\;%AV96`D(($\,\0^=2%BNYQ<.
M-UX)%AAQPD\><#K9M607PR,!\R\2PW-T$8US40'4F!?98R7W!6X`0H3$$8R3
M4``0@$K'&`>?:$=Y1T1T\2_W!1@[<F=R$0&%DX^<PB\V0ET29A?Z."$ZEFE@
MTEZ7DR->\B.\DW'A528`E"8$A(GV4`!TUXY4E(R>$W-M0X3H`G.'A2&A\SL$
MH&,BDR`RPBDU,1=8<D!`99(X@Y)7URT3%B"?PC0,D`'8@BL&,@&\0D"H%F+I
M(BNTDI.W0BI?D@$+,@`325/V`'D8F9&^QUX<V9$S8B$QQQ<X-BO2."O4-3C]
M2%4)DR<>T(Q_\Y7_P5(E+\<^XW8CT)9F-6$QX0ANT2,Q:%(Q(U)9&G")G8&.
M@]`!K!25[JB1>^%"\\@!]>@7K2(`WC@A%Z(@%(`]*<DC'3-$<M(W%[,@DGDH
M;.,V2S,`64)NH4(7=,EI#H,U3D,N9NF4\V``$&",@ND&[W@%QY0KN`23@L&8
M_.@B,V8H_8A+,E0M#-:4,5.6-W(AY=,ZG^F-#%(Y<9&0I%EJ<C,YM)(X=H(E
M&7-:\Z``*1B;4D28>V$Z,1)"&<"7>7&*(N,!/R(CSW*<[OF<6N(A<@%*]Q(7
M[5F-L^(^GJDU-;$!#&(]R(,CYR6=$#,]"@>@U?(K062>DN&7?Z".ZN>=_VTP
MFU:P592V(]F9FYCC0C?T0S@C'PE"0862-%-C)B@$/#%"']V2(<KC<1041$.4
M)1Y:=:NS("440?(!+IL3=C;D05P20@9#0B;D)1+D6WNIG>-@D>HDH7D#GG>H
M5P[:!YS`I(,YE4_Z>E&Z!P\0F%3:I,I`3`70`1+@`?Y@!!':7%=*A>+@FK#9
MI9Y(!`]0A;4@>1L%`6JU@D65@6F:3%D*!PJ0%&[ZG4/@`+=F`!OE`2`U>D50
M?6BZIXC7IVZP`!!PIH&J542PI.JX4>]@4+"0IX[ZJ-]@D9Q:J1-*!._0`77Z
M2-7'J/_UJ7H'J6RP@Z3JI4*@3IE:A9>ZJ)[JJO][!:MJL*6N-:O(.`0'P%-C
MRE&/9`#5A*=:I:>\:DB^&E!V*JRTJA9T^II"D$X>,*J>L*O/ZG[WX`%M2JV6
M6@2F8`!IL1+<H*M0L`"0QU+JV@UKT192^*T;"`W<2:GD.EE0,$ZLF@0%X$>N
M.4H/L`P#]1*>8&2'EYCVRDG/(*K[6JU+T`&U\:](@`!I4;`@L!*/I``IMZQ$
M4%BG\CL-RQW1NDL@&['E.@0EQ5$LU;(52P4=T`BHNJU"X`Y#`%`AFX&\92TD
M&QB4QI@9R@`+,R8W$28V\2,V$1]%FR=)FQ=KR54G*P89%:PJ&UM$<*L;I0<-
M<*@Q*X&.``%D=('UVA?_/1MQ/QLX\?5;`]!>!V22/IEN+81@(O-O&4,DOD47
MB!.22>9J#36U8.":=WJU*PL"77NHQ'BH$N"O4V``;1H`ZT"V=A@89YN/:7L_
M](%++5,^+B(KD$9`_"2-H*)=LT*R^QAD706X7@"YXTJX_$JL#Q`):X&XL6L$
M%IL$"-"ZR8``!F619:L7E3L7$D<EY>DO7%.29J(FIH4SP=9"T2@C/BD7&;`Z
M&3-UVP@7!1,QZ*E#'Y,Z4=="'*:-LI2'AEB^6BAWYIN^ZKN^[-N^68B(M5H$
M#N`!$#!0@WN[1Z```V57B#`0I"`$+S6Y8;(!B'NHJ;DE!;Q1^(@7T@,P<#(`
M_W>F<+,B/\NX70S&.I]Y-J)I@`>RCPTT*W/",C.#G#62*_+)I^ZKOG'*4RG<
MPB[\PC!,AO#;K::*L$+`K?A;!-QYJ(H``':`K@@%";_;73II%RS6&&C7.!%3
M65H".@%2$TWYG.J)-AH<;AP\;6@BC<82`9@B<Q'"L(6DNB:WI*Y;JH.*5@!P
M5E!IJE>`#X.;!TH`2SE)LD<L&#92+/C1MD@W*IW[9%_RF:MS(`5SO5A\(3QC
M+`-`LO]BCM`*#%5;QM6J2@F,N%]+6'DWQ^7EDG^QDCL#%^IY(U$C'\L+CO(A
MNN#[-Z;;P9>&9ZI,6T3K/-(#QFXDQEC0`!!@M9",M?]#(,F3O%&5/%GLA\EU
M/!@^R2<O,P#APC;UUL2PUBG-&3#0]CIWVUX)MK<$9W!#MT%@@P&592'!LI4!
MPJ#=Y`L(@*VY+)LA"XBU=A#L:LE(/#R:'!@8,"HMZB\7,(D\E[R2LB'K-3.<
M["]-.U]0G#I?4A-\$KZ'@C[?U9S6A4RT7`7Y>L[5RJU&@,/>:L=\6[(.RPI[
ME,,2'4U0`%D>G7G.JM&+YPH7^='H_`06W:PF?:^KD%$J+;%)8`#^U,[`_-(S
M]=!1T``2@,LS34IE)::^C-.Q5=(Z;;*K4,ZM&]2Z?`3:2LE&W:A)#4\\[03<
MR5).751&L!;'6J>W`+(C[47_2%W5P)@*>\2.6_VF+'L`!>Q/HQ2A8\T%`"`@
M!W;7>)W7>KW7?-W7?OW7@!W8@LW75[T$2KK6*UVKB.N$"8L$<VURJ!=2DCW9
ME%W938$*,HW89CP$7GT`_Q`31_#86N##FAT(8@K4I9V#^0MY#>!'V3K5I'2$
MJ3V!YCS;PXH$B\!:H$#&-$Q8LFW;)%6_P%VX2>"N$/#+L?7;PQT&$+K<M\T$
M`@';NZ3<SMT%AUW=3]T$]UM4U(W=6K#&WBW42Q!&R=6FC^VN`,!29Y$6\ZK5
MUM?=X6T%@(G:\3W:31"F\B3=N"VP*;@2:E$0"`O:;`3?]2T%;%K@:^4$%*O?
M1X"Q_S=\"@`8"@K@L=F:LJ%`X`B.U=V9X4/U!/_+QE,PL_#`#C@K!#J[RQC.
MX4H@J?JJXO;]!*M*!9V@#2Q8@>_MXEQPW3B>A)VJ!#%NX/]`X^MJXR&;XCM.
M!%-ZY#P>"HOH%&'$X!=KC%SZ`+C0NR-E?>H<PUJ^Y5S>Y<LPOP7KY6(^YF3N
MPC/,R[V,W-"]OV$Z4*+PX0',1EE>YG1>YW9.AK]TYWJ^YWPNPR';RUX+Y3H,
M`3RL%HH@2.8GQ,9DY#O^ITVMY*`8LO[D$#<-XE=@!W@P?Z0-Z5+`XIR.5;FJ
M!+PMVJ#(Z"H.L9^^Y.M45H)N>*;.X;*:ZIG'!.3=`.;-W?^RW@2/G.M>=-^H
MJN:QS>M*(+C"WNL*#NS37>Q0+:[*3M<>CNS1].KQ'='-;G)0\..^7>V(D``4
MK>W)9^F.W>J9)^W>;7S>;NV[W.1-\>3@GMS:ONOG;D=_#NCYW>[[0^[.[9KT
M'>].@!IH/LG03D[X/MRLR^\O'@J3WA"5WN/97NS4;O#R3JQ+,.JX+NP62>H0
M;TQXP.KV'NS"GM(9'_%&H`#N8.M)@/&T.?"I#>\A7Z$C3Z<;M;BA7?&R;LO[
MWO),4!O#V,MGBO(5JO*(S=2?GD8=\.B@SMF$SE$)(7G3VO')GNH/?^2;L`',
MP@%<*MXK*`%`7`0&`'U.OP30E`?_`:#>"#"X19[J:?WI#J#'$7?E(+W+N-P2
M7X\$!84:!Y'&-TP'!V#V%Y[J(*_D"C`]<\$![MWA0]#M<"KN=:`894%0*<?;
M*/[IF<WI#:#)!.#S)9CX/J[XE:08;IT``Y53B###9P_I/GWSMET`^6``RU"#
M&V7YF/\$_A[W8BT%V)"M;DVS/KCHD"[TSHT/IM"`O'Q&!HM2@2\?W)4!+6[L
M6;_U1-#U+=VOP>'3V]""O'_D68W88N\.=W^L$H`0RX!Z?&]]P=(UIN+VJHT(
M2?_]KD^_VQT%MT\$R<#Z0T#ZNQS9EIW_^K___`\$`>&06(0<BDGEDMET/J%1
MZ91:M5X#_X9.QP$`>,!@B??1:6"%",@F,]A`SNAI`E2O(\)YL,%N[_0!`^T"
M``3I%@I!`@X$00`2O"(E)RDK+2\Q,S4W.3L]/T%#14<?/2!)45-55UDK)<#<
M/,96(?3T3ELU)38H)C9F<R\A`@,2]"0"!/\:F1'H0`HZ"D`,%.H>K`\6&@&2
MF;_!P\7'R<O-S]'3U=?%#Y[9X>/EY^D7(`@8/CX((*S'"X0TV.+%F"PR6X1L
MHT>N0((+^BY(F+:06:)`"@0V\*?,W((A=1J<F7@'@4)!W2BF5+F29<N6'22Z
ME#F3)J`#$?01R.D`4)HM![R$\>)@"P(A-<<M.#!`G[X!#VA:[/\IT(#)0,N0
MHD2ZE6M7K^(,]/LZEBPY"!,^7/#PD($'+Z\,`M@29R17CT.V_)2D9P/:IKZ\
MN91:)P!<H5;]<-5:EG%CQ_`40`C\F/+6@%P\?*"PX4+?#QZ$;'0)<(C`+0\D
MU1(:J<Q<(A,+2'C85%^%F()[V@(C%A#6FHLK!Q<>O``$/L.1R_.H!?474P`.
MF$F`(8-.#0,$2(!'^O+IU'DD1<]+!#&Y!QP$I%>?/@,CW'W@`H,[&(3OJ).3
MY]=/LZ'[_?\%(6V++FJ!P`N$`JBK#@/8T(>!##:PC[`AM,CKN]6\$`_!A&1"
M))/R*)(*CPX06Z`#T'I3##\`66R1':#_7,Q/@2PZ`*H@2,HP(``0&U'``PJ:
MHL"MM_+`A:B\C.(PQI:D>@`!9@1*<2O@EJS2RD8>2$#!*[<""(&!G!N#J#C0
M`4@+`"30B39^0N.RK":_*6`P"66BTLT[70Q+-#Q5NJR+^>3JP"@>Q?&H`]1J
M28`H`#*@K:D,Z.3SMSXBM6-.%27-]#\?5US2&3`2>'*=Y0X-ZKGHSM@3'06^
M[,(#`Z/;T0X?+UA//;54U;3./C*!1,JL.M556,;L.8Y+!BNH;0-CXQ1B0``*
M!.!((;9,A\92QC`C06::NZ3285.2RCG=P+ATRF#!3;?+!/R[<H$?:1/2JAD%
MLK%<`'*4=1Z/_QI`U!2BC%*717')%>K7W]`56.&6'.#IS@8L</0#"[H(4UIM
M$U:'U1J=@ZZ#`')=6#]QDU0"`7.!%5EEBF8LXH#;W.Q`S34!,*I:>:XU9HP'
M1%K92JF8%23HC%6RT^>CSP&`@*69)H"^%@'BHI:(';6@@84`ZA?-?SO0$>D[
MGT;.Z*_)!@<`B3\(6\8&W#'E@6J*$^"#"N06`(*;R9F1XW)C#;GL*M46;NR_
M"><5[<`I6\``U&1QX(Q`&"1@`\Z6/8=&!XPQD&=]"\\4\<H&[YSPLR7^?*RH
MH37P8[P)@T`#"R0+)^L.MH:D:Z)%=]/TQT+/760O.:[E\,H":,"!5__PK:J<
M!CA@@($-1.W#4*!J\1@!OWW7=7?'>L]>4S.Y<,[V,Q`9OBP%%C>&78W2L4?N
M#S"0K-7,\?V84._3W7Z>R19`('H0_$>H[N&O$:QS#+]H5Y"+Z:A:I'.4_A;2
M/]I!``)$V18[`*`!VEC`+;<S(`&[<H!VS02"[%@`:NR@%!`H`"H@P`8(M,$-
MW-&C`/_3%5$HHS?4T"\Z-AN'TIJVM!*R(P!<0)Z@[I>W]#6*-L^S(0@=<Y,(
MC/`]-"&$'9!0!P`L`!&$H:(69RB/AG@@:)(R``<\@#V7!.!+J'G%S@051D&T
MK`AJC`=&VL:N:MQQ<5^00,/@Y2B[)7%)A+3_TDWT,<5)U>2*=;C-VQ97A]C(
MD(0#L.0E!S#$_+B/`.]H"?"H]YPR@"Q&_6/<'Q\'C^(!I7&KJT,"JA/$I7%`
MD\EA4!GOA,BF*)*$2&DD"#S@A[S8(9@GD>,Z'$B;6HI-@Q^`%$7`YZKG:,N0
MPXF:`R@H%P1\,!RKU)D%MZ2`O(R3G-7\CP$B\"!<7DF7M.%E%6?RRV+69YAU
MF"<@!K@="9CO3M'8``;2HY9MJ@.!I7`+41C(I54B[VUV!$?4\GB`5!(.G0[*
MP#J)8S)R.@`G:'LG2Y:)CE]JIPY=TX(=2!H(`,1!#D\P!MH\P%(H?(F<-;7I
M32NF"EL,0)8#^)@4_TI5$(.4H60M-:I1^R@&"[;4B$K]Z5&A&M66-J"C%I6I
M5)-0(7("A1)"+1AX)"&!JCHJ`@G`JA(\*9-?9M$17$S$(KB!BV!$0JR9D9@'
M-O!5O19LKI[PP,R:P@]H[148?0V&4.6*":\:2!5>'9)A(1O93$!@K!;=ZV5M
MP5C)6B(!E?U`63<++:0X(X6,8.$ULL&C?*XC-G9UE`<>0*-2F8I<I4BL8723
MV*'<M*A#L&,#-@#8G)#Q2X9)@%`AH"V'EB4LU<F`<9A1O..YQ4GF%(0$!YN\
MY:+C`!C=#Q'&"0"FH(T!'"AL_6JJHR18ER;M_.P7BU:3NP2F?_\+8$6.N?\J
M"'``IFF]B!`JU*TP:!9)"9DO$;0Z3JY.`K>UC01>A;N/(MUN"%\Z@`.`\D:/
M)=0Q`=C`^^"W@<"@+Z+L(^B74J==F4C1NUWA#DW!1-OG'&0+!DA`LB16`2WQ
M29<?A>?(\GN.@M@J/6#XECA:!N-(J(;`15%21Y0@$*5)C`!'"I\E&IS;2MS4
MR4M@;R!N[*A.TJZ509[5F;*)1*3TN,7*J7!>NN552;0FCM2279AIHV-NMDB*
M\%U)2#$E$RTD8`,#@&W79G(7)7N!R9'(BWJW"\`($\#,*7RS&X_A,0L)HV":
MW?(6/)`/VDS``VI.!_H8I[J2>,6]$6AS(^:KU07_XU82XR0"-/$\MQUK2H13
M&EBERY2``;P:*8K>]-;NA5Y(8W'25U,)J0@TU#CNN0X'+@*,7:NFMH@TJ7]T
M)5G<FTACT=$T5Q[L;B)A999&.B4-29:>H4@.0)\+*35T$7?R4C'#M*&GE;-B
M$1-X+^6R(\P$\``&YK8[;Y:9VC,)]R[#``P-J9>4^VE(61L.Q7FG+-[?<,BM
M:I4>V`7J*/5F(\=>`2L/D@,!&ZC`7S\,O>BR37VQRGA+G$6[+^!88CYV4P$.
M<',0;AQA'8]3KG>)A#8:]$`_W0J]P@>J^I5<&7^=&!G[<,V:3W0L4(_V&'JX
M(Z0GTL]&5QC1[V-V9KC;_YWP!=X.!>YT7RZ=?F.250>86-XS-!4Z7.>*UP<+
M]MOQB.U)5_O7T$Y"8(NN\#Y_Z,GA/B0$%?MR@_6,/@3@MCW:I7CAJX7@=<3>
MQI?]\.I*?)T6S_@;.[Y,D&<ZR5//$-DX2@.G9P:I,ORJBY%/C`>H`.M+?_9?
M![^`[/JDZQ4(^Y0\8+Q-Y("SZT&CW!O([NSF+NF)#R[;,RGVC'<Q\N-.=9%Z
M@&Y$YL>7[0#*K5%_X-EWOSFV#]+NOU\E;W_]Y-OQED);<L9'EB3X)4_NZ&\`
MDV;X"%`_["_Y\.\B)`!(:F/7`"$!PV_^#O#]XN_/*+`"38[NP@\!&M!1="SG
M3/\%1P10`TT0@PSP!*WD[7;!`4'0;:9-!65P'BZP:#)P!L<"`3)`U!R%`B3`
M^G`P"+DA!86P2@Q@!WOP!XMP"=6A!L/E!IEP*XZ0!WT0"*-P"9T0'!3-#NZ+
MDJYP2:90,Y3P"\DP'++P&YIC&5XHAHRI#&/D"+/#"MT0!\\0UIBEBQ0!OE9K
M#A]#3_CP#_'I*P[`%$0EDJ`AI?`)"@'QDQ:Q$>NP$18!Z[:`F+RP$2WQ$L6F
M+!I`.R;1GBH1$T$Q%-^$,8+II!SI$T4Q%54Q*ACC$-Y*#S$K%F5Q%FFQ%FWQ
M%G$Q%W5Q%WFQ%WWQ%X$Q&(5Q&(GQ%KTB&J9A\]90M13_<16=\1FUZ"M"XH)(
M0H":$1JQ410?41[V,!N]\1LMA0C!<1S)4:7$L1S1<1RW,1ZZ,1W=\1+7$1[:
M\1WI\0_C$8.NL1[U40/O$9GR<1\!DO[ZL0G_,2`-,O@&,AWF\2`94@43$AT6
MLB$E\@`?,FD*<B(Q,GLJ$OXN,B,]LG`VLAPB\B-)TNA"4MXZLB15<F5.\H=2
M<B5A4F!:4AQ&,B9M$B3/\29ULN-FT@Q?<B>!4G<2)V%J,BB-4O@<PP`,`.AN
MIBB/\BF'Y23EY`XBQ2FA\BHEY201P#T6P+_`""O!\F].LA.!"17#\BQ%9BRQ
MXIYXY2?1\BT9XR2CI`Z&H0WA__(N3<\Q%,!A]K(1'*`8`3,P!7,P";,P#?,P
M$3,Q%7,P'\,!IN%C'(,M-84LA44R,X4R=<4R)04S94(.ZZ\!_.<Q-)-/.#-3
M1A-/2E-23O-.4I,,5S-F_(]+7I-+6A-/9O-*:O,*;]-*<M--=K-*>E,VTR4X
ME_`WEX0XK<0X8P0YJT0Y780Y\3(ZI7,ZJ;,ZK?,ZL3,[M7,[N9,,V2C]:,<W
MO,8`H&,B6"5@[.`!"D`I:H8+$:`!8`,TH\=_X+/=?",`&D8T&($]Y_,]1P(C
MJ*$\)4D^W;,^JPWZ*.([)2D\^V`\!72%_&<RU),_"S0^0W-!'I0B-@\$*#0]
MUQ,HHO]'1QK`)`"4/(-N0"\4@/RSVD"4)C9TA:[&1/_S:O#3`3;B#*`/?3:T
M0HB-(A8`05UH&GX4$-0S&N3BS#841[.N`92G</82*P3%&;!BBY02/PM!A6!H
M(R0BML(B&8H(&AS&,>O#2_^@`!R&AO!@5CZF`^[&B^JC`")C&[[43/U`*76D
M"^I`3"%S3AW&1+;O2?W`?Q)@2A7G3J_4/0Y`2PN`2V.'3_/T,9.A2O$T09%!
MDA@U,+8T"V+'20ZQ3B4U$?243,&TI.`4`M#/<BK54PVU3L6IB-IT3\LT3*<!
MZ+;`,PF*=@!!._PT5^M#4&/U4<=4$99!`1+`5H6E$SWB#A+_H2&H09)*<1D,
M$0&<9"+*``0<P!L`0`$4X*UXXEJUR%@%89Z,Q:RN8=6T:!N\U1'\04N.HP""
M:5L)HUNQU1]^B2*0U1M.1I+HH%V?=4%:2%H'RH7^(%VS%5X5@2?XU0;O@%J7
M`6`9UA&N9I)>J0`2UF#QTUKGU22V2/'Z@%V=U0X\]I62H2Y!8!CFT@QZ=2SJ
M55H)0T0>(%D!J!!.]FI(=AAB`UQUA3/ABAJ`E!.7H9$2E5+X@&3-8"Y+]FA+
M"DCEP3(W%@0\29SHT@^N9@'.]!2-=AB(UMGJ=2%TUCT,H&?IJ67K(&CK%&GK
M(R2P@F1/\0FOXCC(MJ3X0`T"(+:J_ZUJ04`[KM9L4;8.H)9CZY97.=1NM\A@
MU35=+_8+H*LKZI5L%U<TX,IP;=0BLK4!`$`+W%(_.),-'<`JE!*`GJ&1TBH1
MYFF<*'%T8_,<)!-+%<`_U"`!ML%T08!)&Y0/R#*88%<1XB]S%6)S9]=SQ=9I
M`[$L2ZJ>A'=!>I0CS?&5@C=V/>!,9=<..K=VB[<36_=4+=(.GM=X0>(.&>&7
MND$K&BD:/.")XDDJWJ%>TRJ&P/=[+04_H:(KR?=K,!-]]#7KL.(!',``H@.`
M6FA!_,%TI?=V%T(RI:%<L\[X8!<"HV%X2U>8?C<EYK==/6F!KR%_]Y=EH?=_
MA4EZ%Q0#`?]A\S#8?RTU,MQ#@9<A@!U87[&/&P/#A$&V+@K8>PG!&^J5"Q37
M(D+XET)XA8YC?658*PS`;LN&,A4'>A&43C;V;:_GA<L5@YEUUSB5(MC20($7
M$/(5BDNB:K'"B>D`BQ_87GVCB!?DB$]B&Y1X(["8BQ/#@[EP(\X8BY[$'KA(
MB[FPA9Z86NWK#+6":BDEA:K60)EU8J-XA[?6BBSB;==J(\38A41%6@/9:8&.
MAGNR+,BR`)P-(&P4>R<B>N8RI5B%,*)!5`"@`*82@/Y`4+1(Z,+AGI88@/K2
MBD]9E"T9^@QTFQ+A2U+6$2:BD.>ADB\9/V]TD[%W&3Q95!($E77_N91Q.7:%
M.41&S)@E%D)!F6`Q@I8W69EC.97[8)D%PQM"0I/OX)OOP!^>9)2AH1#F]AHF
MXSUO&*7Z8*32[Y?3V862P9RG,EI/5V'V,I/'2`SN%HOR8!M8Z#AV-C+"@!&8
MLG.I82E/-*&/]Q_P8*`,(`^TX#A6EXO:->@ZMVD',0RV02F9$AHT^CA,)%47
M8I^MH9]EX9_'-J!7Z&W<=(54PP,0>J2--Z0[&@RL-[HD@$1D^J`+>J:[-^A.
MBZ-=&J0;VJ8O>I%QKJ>WP:@]NFDG.@SXX+1>R(6T%2KP<P'HURY@PDO]HZ3!
M6E\C#K5.ZZ6Q.D\5`!D[#D[7SBJX"!PX2X=#\6.N:6*M9\6N]25C8'80=GH>
MW+J`X#J)YKJOQR*NUVZOM;"N2=2NK2BZ'J\NM'40J/&P>02QF6&RTZ^R-;L[
,/?NS03NT6R((```[
`
end
</TEXT>
</DOCUMENT>
</SUBMISSION>
