<SUBMISSION>
<ACCESSION-NUMBER>0001171843-09-000555
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>6
<PERIOD>20090527
<ITEMS>1.01
<ITEMS>1.02
<ITEMS>2.03
<ITEMS>7.01
<ITEMS>9.01
<FILING-DATE>20090527
<DATE-OF-FILING-DATE-CHANGE>20090527
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ALEXANDERS J CORP
<CIK>0000103884
<ASSIGNED-SIC>5812
<IRS-NUMBER>620854056
<STATE-OF-INCORPORATION>TN
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-08766
<FILM-NUMBER>09853955
</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
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<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>VOLUNTEER CAPITAL CORP
<DATE-CHANGED>19820520
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<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k_052709.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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STATES</font></div>
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AND EXCHANGE COMMISSION</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">FORM
8-K</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CURRENT
REPORT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to Section 13 or 15(d) of the</font></div>
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Exchange Act of 1934</font></div>
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of Report (Date of earliest event reported): May 27, 2009 (May 22,
2009)</font></div>
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Charter)</font></div>
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Code)</font></div>
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telephone number, including area code:&#160;&#160;(615) 269-1900</font></div>
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  Report)</font></div>
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Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (<font style="DISPLAY: inline; FONT-STYLE: italic">see </font>General Instruction A.2.
below):</font></div>
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      communications pursuant to Rule 425 under the Securities Act (17 CFR
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      communications pursuant to Rule 13e-4(c) under the Exchange Act (17
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1.01.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Entry
into a Material Definitive Agreement.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">The
Pinnacle Loan Agreement</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>On May 22, 2009, J. Alexander&#8217;s
Corporation (the &#8220;Company&#8221;) entered into a Loan Agreement by and among the
Company as the Borrower, and Pinnacle National Bank (&#8220;Pinnacle&#8221;) as the Lender
(the &#8220;Pinnacle Loan Agreement&#8221;) that provides for two new credit facilities. The
new credit facilities consist of a three-year $5,000,000 revolving line of
credit (the &#8220;Pinnacle Revolving Loan&#8221;), which may be used for general corporate
purposes, and a $3,000,000 term loan (the &#8220;Pinnacle Term Loan&#8221;), which funded
the purchase of 808,000 shares of J. Alexander&#8217;s Corporation common stock from
Solidus Company, L.P. and an affiliate. The term loan is evidenced by that
certain Promissory Note for $3,000,000 by the Company as the Borrower in favor
of Pinnacle as the Lender (the &#8220;Pinnacle Term Promissory Note&#8221;). The revolving
line of credit replaces the Company&#8217;s previous line of credit and is evidenced
by that certain Revolving Promissory Note for $5,000,000 by the Company as the
Borrower in favor of Pinnacle as the Lender (the &#8220;Pinnacle Revolving Promissory
Note&#8221;). The credit facilities will be secured by liens on certain personal
property of the Company and its subsidiaries, subsidiary guaranties and a
negative pledge on certain real property.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Amounts borrowed will bear interest at
an annual rate of 30-day LIBOR plus an initial margin of 450 basis points, with
a minimum interest rate of 4.6%. The loans can be prepaid at any time without
penalty. Scheduled term loan payments are interest only for six months and
monthly payments of principal plus interest over the remainder of the five-year
term.</font></div>
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Agreement, among other things, limits capital expenditures, asset sales and
liens and encumbrances, prohibits dividends, and contains certain other
provisions customarily included in such agreements.</font></div>
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includes certain financial covenants. The Company must maintain a fixed charge
coverage ratio of at least 1.05 to 1.00 as of the end of any fiscal quarter. The
fixed charge coverage ratio will be measured for the two fiscal quarters ending
June 28, 2009, for the three fiscal quarters ending September 27, 2009 and for
the four fiscal quarters ending each quarter thereafter. The fixed charge
coverage ratio is defined in the Pinnacle Loan Agreement as the ratio of (a) the
sum of net income for the applicable period (excluding the effect of any
extraordinary or non-recurring gains or losses including any asset impairment
charges, deferred income tax benefits and expenses and up to $500,000 (in the
aggregate during the term of loan) in uninsured losses) plus depreciation and
amortization plus interest expense plus scheduled monthly rent payments plus
non-cash FASB 123R items (i.e., stock based compensation) minus certain capital
expenditures, to (b) the sum of interest expense during such period plus
scheduled monthly rent payments made during such period plus scheduled payments
of long term debt made during such period plus scheduled payments of capital
leases made during such period, all determined in accordance with generally
accepted accounting principles.&#160;&#160;In addition, the Company&#8217;s adjusted
debt to EBITDAR ratio must not exceed 6 to 1 for the four quarters ending June
28, 2009 and September 27, 2009, 5 to 1 for the four quarters ending January 3,
2010 and 4.5 to 1 for each four quarter period thereafter. Under the Pinnacle
Loan Agreement, EBITDAR is defined as the sum of net income for the applicable
period (excluding the effect of any extraordinary or non-recurring gains or
losses including any asset impairment charges, and up to $500,000 (in the
aggregate during the term of loan) in uninsured losses) plus an amount which, in
the determination of net income for such period has been deducted for (i)
interest expense for such period;&#160;&#160;(ii) total federal, state, foreign
or other income taxes for such period; (iii) all depreciation and amortization
for such period; (iv) scheduled monthly rent payments for such period; and (v)
non-cash FASB 123R items, all as determined in </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">accordance
with generally accepted accounting principles. Adjusted debt is (i) the
Company&#8217;s debt obligations net of any short term investments, cash or cash
equivalents plus (ii) scheduled monthly rent payments multiplied by
seven.</font></div>
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be continuing under the Pinnacle Loan Agreement, the commitments under the
Pinnacle Loan Agreement may be terminated and the principal amount outstanding
under the Pinnacle Loan Agreement, together with all accrued unpaid interest and
other amounts owing in respect thereof, may be declared immediately due and
payable.</font></div>
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Pinnacle Loan Agreement, the Pinnacle Term Promissory Note and the Pinnacle
Revolving Promissory Note does not purport to be complete and is qualified in
its entirety by reference to the Pinnacle Loan Agreement, Pinnacle Term
Promissory Note and the Pinnacle Revolving Promissory Note, copies of which are
filed as Exhibits 10.1 10.2, and 10.3, respectively, to this Current Report on
Form 8-K.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">The
Solidus Stock Purchase Agreement</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>On May 22, 2009, the Company entered
into a Stock Purchase Agreement (the &#8220;Stock Purchase Agreement&#8221;) with Solidus
Company, L.P. (&#8220;Solidus&#8221;) to purchase, in aggregate, 808,000 shares of common
stock, par value $.05, for $3.60 per share from Solidus and director E. Townes
Duncan, who also serves as the president of Solidus&#8217; general partner, Solidus
General Partner, LLC (the &#8220;Stock Repurchase&#8221;). Solidus and Mr. Duncan agreed to
limit future dispositions of their J. Alexander&#8217;s Corporation stock holdings
remaining after the Stock Repurchase to 100,000 shares for the remainder of the
2009 calendar year, 200,000 shares in the 2010 calendar year and up to 100,000
shares from January 1, 2011 until May 22, 2011. The foregoing description of the
Stock Purchase Agreement does not purport to be complete and is qualified in its
entirety by reference to the Stock Purchase Agreement, a copy of which is filed
as Exhibit 10.4 to this Current Report on Form 8-K.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
1.02.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Termination
of a Material Definitive Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>On May 22, 2009, that certain loan
agreement dated May 12, 2003, as amended, between the Company, J. Alexander&#8217;s
Restaurants, Inc. and Bank of America, N.A (the &#8220;Bank of America Loan
Agreement&#8221;) was terminated by the Company. The Bank of America Loan Agreement
provided for a revolving line of credit up to $10,000,000 for general corporate
purposes. On the date of termination, there were no amounts outstanding under
the Bank of America Loan Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 90pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
      2.03.</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Creation
      of a Direct Financial Obligation or an Obligation under an Off-Balance
      Sheet Arrangement of a Registrant</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The information under Item 1.01 above
is incorporated by reference hereunder.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
7.01.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Regulation
FD Disclosure.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>J. Alexander&#8217;s Corporation&#8217;s press
release announcing the new credit facilities and the repurchase of stock from
Solidus Company, L.P. is furnished as Exhibit 99.1.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
9.01.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Financial
Statements and Exhibits.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exhibits:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The following exhibits are filed or
furnished herewith as noted above:</font><br><br></div>
    <div>
      <div>
        <div align="center">
          <div align="center">
            <div align="center">
              <div align="center">
                <div align="center">
                  <table cellpadding="0" cellspacing="0" width="100%">
                      <tr>
                        <td valign="top" width="16%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Exhibit
      Number</font></div>
                        </td>
                        <td align="left" valign="top" width="64%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Description</font></div>
                        </td>
                      </tr>
                      <tr>
                        <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        <td align="left" valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                      </tr>
                      <tr>
                        <td valign="top" width="16%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10.1</font></div>
                        </td>
                        <td align="left" valign="top" width="64%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Loan
      Agreement dated May 22, 2009 between the Company and Pinnacle National
      Bank.</font></div>
                        </td>
                      </tr>
                      <tr>
                        <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        <td align="left" valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                      </tr>
                      <tr>
                        <td valign="top" width="16%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10.2</font></div>
                        </td>
                        <td align="left" valign="top" width="64%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Promissory
      Note dated May 22, 2009 from the Company in favor of Pinnacle National
      Bank.</font></div>
                        </td>
                      </tr>
                      <tr>
                        <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        <td align="left" valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                      </tr>
                      <tr>
                        <td valign="top" width="16%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10.3</font></div>
                        </td>
                        <td align="left" valign="top" width="64%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Revolving
      Promissory Note dated May 22, 2009 from the Company in favor of Pinnacle
      National Bank.</font></div>
                        </td>
                      </tr>
                      <tr>
                        <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        <td align="left" valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                      </tr>
                      <tr>
                        <td valign="top" width="16%">
                          <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10.4</font></div>
                        </td>
                        <td align="left" valign="top" width="64%">
                          <div style="DISPLAY: block; TEXT-INDENT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Stock
      Purchase Agreement dated May 22, 2009 between Solidus Company, L.P., E.
      Townes Duncan and the Company</font></div>
                        </td>
                      </tr>
                      <tr>
                        <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        <td align="left" valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                      </tr>
                      <tr>
                        <td valign="top" width="16%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">99.1</font></div>
                        </td>
                        <td align="left" valign="top" width="64%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Press
      Release Dated May 22,
2009</font></div>
                        </td>
                      </tr>
                  </table>
                </div>
              </div>
            </div>
          </div>
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="4">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURE</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Pursuant to the requirements of the
Securities Exchange Act of 1934, as amended, the Registrant has duly caused this
report to be signed on its behalf by the undersigned, hereunto duly
authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="32%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></td>
            <td colspan="2" valign="top" width="47%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">J.
      Alexander&#8217;s Corporation</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="32%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></td>
            <td colspan="2" valign="top" width="47%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td valign="top" width="32%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></td>
            <td colspan="2" valign="top" width="47%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td valign="top" width="32%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
      May 27, 2009</font></div>
            </td>
            <td valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:</font></div>
            </td>
            <td valign="top" width="41%" style="BORDER-BOTTOM: black 0.5pt solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
      R. GREGORY LEWIS</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="32%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></td>
            <td valign="top" width="7%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></td>
            <td valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">R.
      Gregory Lewis</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="32%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></td>
            <td valign="top" width="7%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></td>
            <td valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
      Financial Officer, Vice President of Finance and
  Secretary</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="4">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EXHIBIT
INDEX</font><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div><br>
      <div>
        <div>
          <div align="center">
            <div align="center">
              <div align="center">
                <div align="center">
                  <div align="center">
                    <table cellpadding="0" cellspacing="0" width="100%">
                        <tr>
                          <td valign="top" width="16%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Exhibit
      Number</font></div>
                          </td>
                          <td align="left" valign="top" width="64%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Description</font></div>
                          </td>
                        </tr>
                        <tr>
                          <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                          <td align="left" valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        </tr>
                        <tr>
                          <td valign="top" width="16%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10.1</font></div>
                          </td>
                          <td align="left" valign="top" width="64%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Loan
      Agreement dated May 22, 2009 between the Company and Pinnacle National
      Bank.</font></div>
                          </td>
                        </tr>
                        <tr>
                          <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                          <td align="left" valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        </tr>
                        <tr>
                          <td valign="top" width="16%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10.2</font></div>
                          </td>
                          <td align="left" valign="top" width="64%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Promissory
      Note dated May 22, 2009 from the Company in favor of Pinnacle National
      Bank.</font></div>
                          </td>
                        </tr>
                        <tr>
                          <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                          <td align="left" valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        </tr>
                        <tr>
                          <td valign="top" width="16%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10.3</font></div>
                          </td>
                          <td align="left" valign="top" width="64%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Revolving
      Promissory Note dated May 22, 2009 from the Company in favor of Pinnacle
      National Bank.</font></div>
                          </td>
                        </tr>
                        <tr>
                          <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                          <td align="left" valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        </tr>
                        <tr>
                          <td valign="top" width="16%">
                            <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10.4</font></div>
                          </td>
                          <td align="left" valign="top" width="64%">
                            <div style="DISPLAY: block; TEXT-INDENT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Stock
      Purchase Agreement dated May 22, 2009 between Solidus Company, L.P., E.
      Townes Duncan and the Company</font></div>
                          </td>
                        </tr>
                        <tr>
                          <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                          <td align="left" valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        </tr>
                        <tr>
                          <td valign="top" width="16%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">99.1</font></div>
                          </td>
                          <td align="left" valign="top" width="64%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Press
      Release Dated May 22,
2009</font></div>
                          </td>
                        </tr>
                    </table>
                  </div>
                </div>
              </div>
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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>exh_101.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<html>
  <head>
    <title>Unassociated Document</title>
    <!--Licensed to: GlobeNewswire, Inc.-->
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  <div id="lockwidth" style="width: 640px">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
10.1</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">LOAN
AGREEMENT</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">THIS AGREEMENT</font> (&#8220;Loan
Agreement&#8221;) is made and entered into this 22<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">nd</font> day of
May, 2009, by and between<font style="DISPLAY: inline; FONT-WEIGHT: bold"> J.
ALEXANDER&#8217;S CORPORATION, </font>a Tennessee corporation (herein called
&#8220;Borrower&#8221;) and <font style="DISPLAY: inline; FONT-WEIGHT: bold">PINNACLE
NATIONAL BANK </font>(herein called &#8220;Lender&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">W
I T N E S S E T H:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">WHEREAS,</font> Borrower has applied
to Lender for financing to acquire certain stock in Borrower from Solidus
Company, LP, a Tennessee limited partnership, and for general corporate
purposes, including working capital needs, and Lender has agreed to provided
such financing, subject to the terms and conditions hereinafter
contained.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">NOW, THEREFORE,</font> in
consideration of the mutual covenants herein contained, and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Lender and Borrower covenant and agree as follows:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I.
THE LOANS</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">1.1</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Loans.</font>&#160;&#160;Subject to
the terms and provisions of this instrument, Lender agrees to make available to
Borrower a term loan in the original principal amount of <font style="DISPLAY: inline; FONT-WEIGHT: bold">THREE MILLION AND NO/100
($3,000,000.00) DOLLARS</font>, solely for the purposes specifically enumerated
herein and certain costs and expenses related thereto, by advancing said sum to
Borrower on the date hereof pursuant to the provisions herein contained (the
"Term Loan"). The Term Loan shall be evidenced by a certain Promissory Note in
the original principal amount of $3,000,000.00, in form and content acceptable
to Lender, which shall be executed by Borrower and payable to the order of
Lender (together with any and all extensions, renewals and modifications
thereof, the "Term Note").&#160;&#160;In addition, subject to the terms and
provisions of this instrument, Lender also agrees to make available to Borrower
a revolving line of credit in the maximum principal amount of <font style="DISPLAY: inline; FONT-WEIGHT: bold">FIVE MILLION AND N0/100
($5,000,000.00) DOLLARS</font>, to be used for general corporate purposes,
including working capital needs of Borrower and its subsidiaries, by advancing
said sum to Borrower on a revolving basis from time to time at Borrower's
request pursuant to the provisions herein contained (the "Line of Credit;" the
Term Loan and the Line of Credit are sometimes hereinafter collectively referred
to as the "Loans").&#160;&#160;The Line of Credit shall be evidenced by a
certain Revolving Promissory Note in the maximum principal amount of
$5,000,000.00, in form and content acceptable to Lender, which shall be executed
by Borrower and payable to the order of Lender (together with any and all
extensions, renewals and modifications thereof, the "Revolving
Note").&#160;&#160;The Term Note and the Revolving Note are hereinafter
collectively referred to as the &#8220;Notes.&#8221;</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>J. Alexander's Restaurants, Inc., J.
Alexander's Restaurants of Kansas, Inc., J. Alexander's of Texas, Inc. and J.
Alexander's of Kansas, LLC (herein collectively called &#8220;Guarantors&#8221;), shall
unconditionally guarantee payment of the Loans, and all indebtedness now or
hereafter owing to Lender by Borrower, and shall execute instruments in such
form as may be reasonably required by Lender to accomplish such
guaranties.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="4">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">1.2</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Term.</font>&#160;&#160;The term of
the Loans shall be as set forth in the Notes and this Loan
Agreement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">1.3</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Interest.</font>&#160;&#160;The Loans
shall bear interest at annual rates as set forth in the Notes. Interest accruing
under the Notes shall be computed on the basis of a three hundred sixty (360)
day year. After default or maturity, interest and penalties shall accrue as set
forth in the Notes and this Loan Agreement. Notwithstanding anything herein to
the contrary, in no event shall the interest rate exceed the maximum rate
allowed by applicable law.&#160;&#160;The Applicable Margin, as such term is
used in the Notes, shall be determined in accordance with the following pricing
grid (with the Adjusted Debt to EBITDAR Ratio calculated in accordance with
<font style="DISPLAY: inline; TEXT-DECORATION: underline">Section 3.5(b)</font>
of this Loan Agreement):</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="TEXT-ALIGN: center">
      <div style="TEXT-ALIGN: center" align="center">
        <div style="TEXT-ALIGN: center" align="center">
          <div style="TEXT-ALIGN: center" align="center">
            <table cellpadding="0" cellspacing="0" width="69%" style="TEXT-ALIGN: center">
                <tr style="TEXT-ALIGN: center;">
                  <td valign="top" width="16%" style="BORDER-TOP: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Tier</font></div>
                  </td>
                  <td align="left" valign="top" width="62%" style="BORDER-TOP: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Adjusted
      Debt to EBITDAR Ratio</font></div>
                  </td>
                  <td align="left" valign="top" width="22%" style="BORDER-RIGHT: black 0.5pt solid; BORDER-TOP: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Applicable
      Margin</font></div>
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                </tr>
                <tr>
                  <td valign="top" width="16%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid; TEXT-ALIGN: center">
                    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">I</font></div>
                  </td>
                  <td align="left" valign="top" width="62%" style="PADDING-LEFT: 1pt; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; TEXT-INDENT: 0pt" align="left">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Less
      than or equal to 3.0 to 1.0</font></div>
                  </td>
                  <td align="left" valign="bottom" width="22%" style="BORDER-RIGHT: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">3.50%</font></div>
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                    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">II</font></div>
                  </td>
                  <td align="left" valign="top" width="62%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Greater
      than 3.0 to 1.0 and less than or equal to 4.5 to 1.0</font></div>
                  </td>
                  <td align="left" valign="bottom" width="22%" style="BORDER-RIGHT: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">4.00%</font></div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="16%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">III</font></div>
                  </td>
                  <td align="left" valign="top" width="62%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Greater
      than 4.5 to 1.0 and less than or equal to 6.0 to 1.0</font></div>
                  </td>
                  <td align="left" valign="top" width="22%" style="BORDER-RIGHT: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">4.25%</font></div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="16%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">IV</font></div>
                  </td>
                  <td align="left" valign="top" width="62%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Greater
      than 6.0 to 1.0</font></div>
                  </td>
                  <td align="left" valign="top" width="22%" style="BORDER-RIGHT: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">4.50%</font></div>
                  </td>
                </tr>
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          </div>
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Adjustments to the Applicable Margin
shall be made quarterly, effective two (2) business days after delivery by
Borrower to Lender of its financial covenant calculations for the applicable
fiscal quarter; <font style="DISPLAY: inline; TEXT-DECORATION: underline">provided</font>, <font style="DISPLAY: inline; TEXT-DECORATION: underline">however</font>, the
Applicable Margin shall be determined with reference to Tier IV until delivery
by Borrower of financial covenant calculations for the fiscal quarter ending
June 28, 2009.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">1.4</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Repayment
Schedule.</font>&#160;&#160;Payment of all obligations arising under the Loans
shall be made as set forth in the Notes and this Loan Agreement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">1.5</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Commitment Fees; Non-Use
Fee.&#160;&#160;</font> At closing hereunder, Borrower shall pay to Lender an
upfront commitment fee equal to 0.50% of the maximum principal amount to the
Loans, payable in full in cash at closing.&#160;&#160;On each anniversary of the
closing hereunder until the termination of the Line of Credit, Borrower shall
pay to Lender an annual commitment fee equal to 0.50% of the maximum principal
amount of the Line of Credit.&#160;&#160;Borrower shall pay to Lender an unused
fee equal to 0.25% per annum of the average, unused portion of the Line of
Credit until the termination of the Line of Credit, payable quarterly, in
arrears.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
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          <hr style="COLOR: black" noshade size="4">
        </div>
      </div>
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">1.6</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Place of
Payments</font>.&#160;&#160;All payments of principal and interest shall be made
at 211 Commerce Street, Suite 300, Nashville, Tennessee 37201, or at such other
place, or places, as Lender may direct by notice in writing to Borrower from
time to time.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold">1.7</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Prepayment.</font>&#160;<br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-STYLE: italic">Prepayment</font>. Prepayment of
principal due under the Loans made hereunder may be made at any time without
premium or other prepayment charge.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-STYLE: italic">Mandatory Prepayment</font>. In
addition to regularly scheduled payments of principal, Borrower will be required
to make prepayments of the Loans to the extent the following exceed an aggregate
amount of $100,000 in any calendar year (i) 100% of the net proceeds of any sale
or disposition of any assets of Borrower or Guarantors (net of amounts
reinvested in replacement assets within 180 days of receipt by Borrower or
required to pay taxes or other costs applicable to the disposition), other than
from the sale of inventory and gift cards in the ordinary course of business
(provided, however, at any time that the Adjusted Debt to EBITDAR Ratio is less
than 1.5 to 1.0, no prepayment under clause (i) is required); (ii) 50% of the
net proceeds of any sales or issuances of equity (other than proceeds from the
exercise of stock options) or debt securities of Borrower or Guarantors and/or
any other indebtedness for borrowed money incurred by Borrower or Guarantors
after the closing date (other than purchase money indebtedness); and (iii) 100%
of the net proceeds of insurance proceeds and condemnation awards of the
Borrower and Guarantors to the extent not reinvested in their business, and not
required by contract to be paid to another vendor or landlord.&#160;&#160;Such
prepayments shall be applied first to installments of principal of the Term Loan
on until the Term Loan is paid in full and second to the outstanding principal
balance of the Line of Credit (without a permanent reduction in the maximum
principal amount of the Line of Credit).</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-STYLE: italic">Excess Cash Flow
Recapture</font>.&#160;&#160;An annual additional principal payment on the Term
Loan is to be made by Borrower based on fiscal year-end Fixed Charge Coverage
Ratio beginning with the fiscal year ending January 2, 2011.&#160;&#160;The
additional required principal payments shall be equal to 65% of the excess of
the numerator of the Fixed Charge Coverage Ratio over 105% the denominator of
the ratio.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">1.8</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Disbursement of
Loans.</font>&#160;&#160;Funds shall be disbursed by Lender under the Notes for
the purposes provided herein (with the Term Loan disbursed in full at closing
and the Line of Credit disbursed on a revolving basis from time to time at
Borrower's request), subject to and in accordance with the conditions and
requirements contained herein, as follows:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;<br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Lender
shall not be obligated to disburse any portion of the Loans other than closing
costs of the Loans approved by Lender, unless and until, at Lender&#8217;s option, the
following conditions precedent shall have been satisfied:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 108pt"></font>(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Lender
shall have received all of the Loan Documents and Security Instruments, as
hereinafter defined, in form reasonably satisfactory to
Lender.</font></div>
    </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 108pt"></font>(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Borrower
and Guarantors shall provide to Lender certified resolutions appropriately
authorizing the transactions contemplated herein and designating an authorized
officer or other agent of Borrower to execute all Loan Documents to which
Borrower is a party.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 108pt"></font>(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Lender
shall have received financing statements in form acceptable to Lender to be
filed with the Secretary of State of Tennessee, and such other locations as
Lender may reasonably require, perfecting Bank&#8217;s security interest in the
Collateral (as hereinafter defined), and any waivers or releases reasonably
required by Lender.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 108pt"></font>(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Lender
shall have received a copy of certified articles of organization and
certificates of existence of Borrower and Guarantors from the Tennessee
Secretary of State and/or such other jurisdictions as Lender may reasonably
require, together with copies of the bylaws of Borrower and each corporate
Guarantor.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 108pt"></font>(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;UCC-11
searches issued by the Secretary of State of Tennessee and such other
jurisdictions as Lender may reasonably require.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 108pt"></font>(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Borrower
shall be in material compliance with all covenants, warranties and
representations to which Borrower is obligated under this Loan
Agreement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 108pt"></font>(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;No
Event of Default shall then be in existence hereunder.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 108pt"></font>(viii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Borrower
shall have furnished to Lender a detailed list of all of the corporate entities
owned by Borrower, with evidence of any indebtedness currently outstanding with
Borrower and/or Guarantors.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 108pt"></font>(ix)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Borrower
shall have furnished to Lender any and all releases regarding any outstanding
indebtedness owed to any lender that is to be paid off, or that said lender(s)
shall be required to release any lien on an encumbrance they may have on any and
all of the assets of Borrower or Guarantors, except for Permitted Encumbrances
(as hereinafter defined).</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 108pt"></font>(x)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Within
ten (10) days of the date hereof (and not as a condition to the initial funding
of the Loans), Borrower and Guarantors shall furnish to Lender negative pledges
on all real property owned by Borrower and Guarantors not currently pledged to
GE Capital, in which Borrower and Guarantors agree not to pledge the properties
therein described to any lender or any other entity without Lender&#8217;s written
permission; <font style="DISPLAY: inline; TEXT-DECORATION: underline">provided</font>, <font style="DISPLAY: inline; TEXT-DECORATION: underline">however</font>, Borrower and
Guarantors shall be permitted to sell up to two (2) restaurant properties during
the term of the Loans, so long as the net proceeds are applied in accordance
with <font style="DISPLAY: inline; TEXT-DECORATION: underline">Section
1.7(b)</font> of this Agreement.&#160;&#160;Additionally, Borrower and
Guarantors shall provide to Lender an affirmative statement that no other entity
shall be granted a negative pledge on said property without first obtaining
Lender&#8217;s written permission, all of which shall be set forth in this Loan
Agreement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Interest shall accrue on sums advanced
only from the date of disbursement of such sums.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">1.9</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Collateral.&#160;&#160;</font>As
collateral for the Secured Obligations, as hereinafter defined, including the
Loans, Borrower shall execute and deliver, or cause to be executed and
delivered, the following prior to or at closing hereunder:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Lender,
shall receive a first priority (except for Permitted Encumbrances) perfected
security interest in substantially all existing and after-acquired personal
property of Borrower and Guarantors, including all inventory, accounts,
equipment, fixtures, chattel paper, patents, trademarks, copyrights, documents,
instruments, deposit accounts (provided, deposit account control agreements
shall not be required), cash and cash equivalents, investment property
(excluding equity interests of non-guarantor subsidiaries), general intangibles,
letter of credit rights, commercial tort claims, insurance policies and other
personal property of the Borrower and Guarantors (the
&#8220;Collateral&#8221;).&#160;&#160;The Collateral will be free and clear of other liens,
claims and encumbrances, except Permitted Encumbrances.&#160;&#160;As used
herein "Permitted Encumbrances" shall mean (i) liens in favor of Lender, (ii)
liens securing purchase money indebtedness or capital lease obligations, and
(iii) liens for taxes not yet delinquent or being contested in good
faith.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Assignment
and Security Agreement, assigning and granting a security interest to Lender in
all items therein described and other rights and matters as provided therein
arising from or with respect to the Collateral, together with Financing
Statements to evidence and perfect such assignment and security interest, all of
which shall be in form and substance reasonably satisfactory to Lender in all
respects, and which shall be first priority encumbrances upon the property,
rights and interests which are the subject of such Assignment and Security
Agreement and Financing Statements (subject to Permitted
Encumbrances).</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Guaranties
of the Guarantors, in form and substance reasonably satisfactory to Lender
executed by the Guarantors.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>The foregoing instruments and
documents, and any other instruments and documents now or hereafter securing the
Secured Obligations, are herein sometimes collectively called the &#8220;Security
Instruments.&#8221; The Security Instruments, together with the Notes, this Loan
Agreement, and any other instruments and documents now or hereafter evidencing,
securing or regulating the Loans or Secured Obligations are herein sometimes
collectively called the &#8220;Loan Documents.&#8221;</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Without limiting any of the provisions
thereof, the Security Instruments shall secure the following (the &#8220;Secured
Obligations&#8221;):</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
full&#160;&#160;and&#160;&#160;timely&#160;&#160;payment&#160;&#160;of&#160;&#160;the&#160;&#160;indebtedness
evidenced by the Notes, together with interest thereon, and all extensions,
modifications and renewals thereof.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
full and prompt performance of all the obligations of Borrower to Lender under
the Loan Documents.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
full and prompt payment of all costs and expenses of whatever kind or nature
incident to the collection of any indebtedness evidenced by the Notes, the
enforcement or protection of the Security Instruments, or the exercise by Lender
or any rights or remedies of Lender with respect to any indebtedness evidenced
by the Notes, including but not limited to reasonable attorney fees incurred by
Lender in connection therewith, all of which Borrower agrees to pay upon
demand.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
full and prompt payment and performance of any and all other indebtedness and
obligations of Borrower to Lender, whether direct, indirect, contingent or
matured, and whether incurred as endorser, guarantor, maker, surety or
otherwise, whether now existing or hereafter arising.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">1.10</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Further Documents and
Actions</font>.&#160;&#160;Borrower, and any other necessary parties, shall
execute such instruments as Lender may reasonably require from time to time
(which shall be in such form and substance as Lender may reasonably require),
and shall take such other actions as Lender may reasonably require from time to
time, to assure the full realization by Lender of the security of all the
Collateral.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">II.
REPRESENTATIONS AND WARRANTIES</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Borrower represents and warrants to
Lender as follows:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Neither this Loan Agreement, nor any document, financial statement, report,
notice, schedule, certificate, statement or other writing which has, or shall
be, furnished to Lender by or on behalf of Borrower hereunder contains any
untrue statement of a material fact, or omits to state a fact material to this
Loan Agreement, or the Loans to be made hereunder.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Borrower
has full power and authority to consummate the transactions contemplated
hereby.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Borrower
and each Guarantor has, and shall have, the authority and capacity to execute
and deliver the Loan Documents to which it is a party.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As
of the date hereof, there is no default, under any instrument or document to
which Borrower or any Guarantor is a party, which default is reasonably likely
to cause a material adverse effect upon Borrower and Guarantors' financial
condition taken as a whole (a "Material Adverse Effect"). Neither the execution
nor delivery of this Loan Agreement, or any of the Loan Documents, nor
compliance with their terms and provisions, will conflict with or be in
violation of any applicable law, regulation, ordinance, court order, injunction,
writ, or decree which conflict is reasonably likely to result in a Material
Adverse Effect.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As
of the date hereof and except as disclosed in Borrower's SEC filings, there is
no pending or, to Borrower&#8217;s knowledge, threatened judicial, administrative, or
arbitrational action or proceeding affecting Borrower, or any Guarantor before
any court, governmental agency, or arbitrator which relates in any adverse
manner to any of the transactions contemplated by this Loan Agreement, or which
if adversely determined, is reasonably likely to result in a Material Adverse
Effect.&#160;&#160;Neither Borrower, nor any Guarantor has any material
contingent liability not disclosed in the financial information heretofore
furnished to Lender.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
funds disbursed under the Loans to be made hereunder shall be used for no
purpose other than as stated above.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
financial statements which have been heretofore delivered to Lender by or on
behalf of Borrower and Guarantors, and all financial statements which shall be
delivered hereunder by Borrower or Guarantors, or such parties, to Lender,
during the term of this Loan Agreement, and until payment of the Loans made
hereunder, have been and shall be prepared in accordance with general accepted
accounting principles, consistently applied ("GAAP"), and fairly present, and
shall fairly present, in all material respects, the financial condition and
results of operations of the Borrower as of and for the periods
represented.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Borrower
is a Tennessee corporation, validly existing, and in good standing under the
laws of the State of Tennessee and has the power to own its properties, to carry
on its business as now conducted, and to enter into and perform its obligations
under this Loan Agreement and the other Loan Documents.&#160;&#160;Borrower is
duly qualified to do business and in good standing in any other state in which a
failure to be so qualified could reasonably be expected to have a Material
Adverse Effect. The parties executing the Loan Documents on behalf of Borrower
are duly authorized to act on its behalf.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Guarantors
are validly existing and in good standing under the laws of the states of their
organization and have the power to guarantee the indebtedness contemplated
hereby, to carry on business as now conducted, and to enter into and perform
obligations under this instrument and the other Loan
Documents.&#160;&#160;Guarantors are duly qualified to do business and in good
standing in any other state in which a failure to be so qualified could
reasonably be expected to have a Material Adverse Effect. The parties executing
the Loan Documents on behalf of Guarantors are duly authorized to act on behalf
of Guarantors.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Borrower&#8217;s
principal office and chief place of business is located at 3401 West End Avenue,
Suite 260, Nashville, Tennessee 37203.&#160;&#160;Borrower will give Lender
thirty (30) days notice of any change in its principal office or chief place of
business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">III.
COVENANTS OF BORROWER</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.1</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Loan
Documents.&#160;&#160;</font>Borrower and Guarantors shall execute and deliver,
or cause to be executed and delivered, to Lender for the Loans to be made
hereunder, prior to disbursement thereof, all of the Loan Documents, including
but not limited to this Loan Agreement, the Notes and Security Instruments, all
in form and substance reasonably satisfactory to Lender in all
respects.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.2</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Additional
Documentation.</font>&#160;&#160;Borrower shall deliver to Lender charters,
bylaws, certifications, affidavits, good standing certificates, resolutions,
opinions of counsel, and such other documentation as may be reasonably necessary
in Lender&#8217;s judgment, to authorize the execution and delivery of any of the Loan
Documents or to carry out the provisions of this Loan Agreement.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.3</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Liens.</font>&#160;&#160;&#160;&#160;Borrower
shall for the term of this Loan Agreement, and until payment of the Loans made
hereunder, keep the Collateral free and clear of any and all liens except
Permitted Encumbrances and shall pay all taxes (if any) which may be charged
against any part or all of the Collateral, prior to the time such become
delinquent. However, Borrower shall not be required to pay any such lien claim,
tax or assessment deemed by Borrower to be excessive or invalid, or which may be
otherwise contested by Borrower, for so long as Borrower shall in good faith
object to or otherwise contest the validity of the same by appropriate legal
proceeding, and provided further that Borrower, upon demand by Lender, as
protection and indemnity against loss or damage resulting therefrom, shall
deposit, either in cash, bond, or other collateral acceptable to Lender, an
amount sufficient in Lender&#8217;s reasonable judgment to cover the claim for such
unpaid amounts, together with any costs or penalties which may thereafter
accrue. Borrower shall pay, in any event, any such items prior to any judicial
or nonjudicial sale to enforce any such lien.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.4</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Financial Statements and Other
Information.</font>&#160;&#160;Borrower shall provide Lender with quarterly
consolidated financial statements and a quarterly loan covenant compliance
report within 45 days from the end of the first three (3) fiscal quarters of
each fiscal year.&#160;&#160;Borrower shall also provide Lender with an annual
audited financial statement and a loan covenant compliance report within 120
days of Borrower&#8217;s fiscal year-end.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.5</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Financial
Covenants.</font>&#160;&#160;Financial covenants will be calculated on a
trailing four quarters basis (except as set forth below) and will consist
of:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Fixed
Charge Coverage Ratio. Borrower shall maintain a Fixed Charge Coverage Ratio of
not less than 1.05 to 1.0.&#160;&#160;Fixed Charge Coverage Ratio shall be
measured as of the end of each of Borrower's fiscal quarters beginning June 28,
2009, and shall be calculated as of June 28, 2009 for the then-ending two (2)
fiscal quarters, as of September 27, 2009, for the then-ending three (3) fiscal
quarters, and as of the end of each fiscal quarter thereafter for the
then-ending four (4) fiscal quarters. Fixed Charge Coverage Ratio shall be
defined as the ratio of (A) the sum of net income (excluding the effect of any
extraordinary or non-recurring gains or losses including any asset impairment
charges, changes in valuation allowance for deferred tax assets and non-cash
deferred income tax benefits and expenses and up to $500,000 (in the aggregate
for the term of the Loans) in uninsured losses) plus depreciation and
amortization plus interest expense plus scheduled monthly rent payments plus
non-cash FASB 123R items (i.e. stock based compensation) minus the greater of i)
actual total store maintenance capital expenditures (excluding major remodeling
or image enhancements), or ii) the total number of Borrower&#8217;s stores operating
for at least 18 months as of the date of determination multiplied by $40,000, to
(B) the sum of interest expense during such period plus scheduled monthly rent
payments made during such period plus scheduled payments of long term debt made
during such period plus scheduled payments of capital leases made during such
period, all determined in accordance with GAAP.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 108pt"></font>In the event of a full repayment of
the Term Loan on or before the delivery of Borrower's loan covenant compliance
report with respect to a particular fiscal quarter, all payments of long term
debt related to the Term Loan will be excluded from the denominator of the Fixed
Charge Coverage Ratio for such fiscal quarter covenant testing and thereafter.
Any voluntary or mandatory partial pre-payments of the Term Loan or Line of
Credit by Borrower, however, will not reduce (or be included in) scheduled
payments of long term debt for purposes of calculating the Fixed Charge Coverage
Ratio covenant testing.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Adjusted
Debt to EBITDAR Ratio.&#160;&#160;Borrower shall maintain an Adjusted Debt to
EBITDAR Ratio of not more than (i) 6.0 to 1.0 for the fiscal quarters ending
June 28, 2009, and September 27, 2009, (ii) 5.0 to 1.0 for the fiscal quarter
ending January 3, 2010, and (iii) 4.5 to 1.0 as of the end of each fiscal
quarter thereafter.&#160;&#160;Adjusted Debt to EBITDAR shall be measured at
quarter-end based on then-ending four (4) fiscal quarters. Maximum Adjusted Debt
to EBITDAR is defined as the ratio of (A) total funded debt (defined as the
principal portion of indebtedness for borrowed money) minus invested funds plus
rent payments multiplied by 7, to (B) EBITDAR. Invested funds is defined as
short term, liquid investments such as money markets with maturities of less
than one year in length, and cash and cash equivalents; provided that
investments into any joint venture or any endeavor not consistent with
Borrower&#8217;s core restaurant operating business without the consent of Lender
shall be excluded. EBITDAR shall be defined as the sum of net income for such
period&#160;&#160;(excluding the effect of any extraordinary or non-recurring
gains or losses including any asset impairment charges, and up to $500,000 (in
the aggregate for the term of the Loans) in uninsured losses) plus an amount
which, in the determination of net income for such period has been deducted for
(i) interest expense for such period; (ii) total federal, state foreign or other
income taxes for such period; (iii) all depreciation and amortization for such
period; (iv) scheduled monthly rent payments made during such period; and
non-cash FASB 123R items, (i.e., stock based compensation), all as determined
with GAAP.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.6</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Notice of
Claims.</font>&#160;&#160;Borrower shall promptly notify Lender of any
litigation exceeding $500,000 by any third party which may arise with respect to
the Collateral, whether or not covered by insurance.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.7</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Insurance.</font>&#160;&#160;If such
insurance is obtainable, Borrower shall furnish to Lender insurance policies
with companies, and coverage and amounts, reasonably satisfactory to Lender
insuring the Collateral against loss or damage by fire and other casualty, and
such other risks as may be reasonably requested by Lender, said policies to
insure the full replacement cost of such Collateral. Each such policy shall be
maintained in full force and effect until the Loans have been paid in
full.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.8</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Ownership of
Collateral.</font>&#160;&#160;Except as set forth herein and the other Loan
Documents, Borrower shall at all times until final payment of the Loans be the
true and lawful owner of all the Collateral.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.9</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Assignments and
Participations.</font>&#160;&#160;Lender will have the right at any time to sell
and assign interests in the loans in accordance with customary terms, including
prior consent of the Borrower (not to be unreasonably withheld), which consent
shall not be required if any Event of Default exists.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.10</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Capital
Expenditures.</font>&#160;&#160;Borrower agrees to avoid any expansion capital
expenditures for new restaurants until the Term Loan is repaid in
full.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.11</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Deposit
Accounts.</font>&#160;&#160;Beginning ninety (90) days after the date hereof,
Borrower agrees to maintain its primary depository accounts, treasury management
accounts and merchant card services with Lender, as long as such accounts and
merchant card services reasonably meet Borrower's needs and can be provided on
terms no less favorable than those currently available to Borrower.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="4">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.12</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Dividends.</font>&#160;&#160;Borrower
shall be prohibited from issuing or declaring dividends until the Loans are
fully repaid or expired.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">V.
EVENTS OF DEFAULT</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Each of the following shall constitute
an Event of Default hereunder:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;If
Borrower shall fail to pay any installment under the Loans within five (5) days
of when due; or</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;If
Borrower shall fail to pay sums due under the Loans at maturity; or</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;If
Borrower or any of the Guarantors shall fail to keep and perform any other
covenant or provision contained in this Loan Agreement, or in any of the Loan
Documents, or if at any time any representation or warranty made by Borrower or
any of the Guarantors, herein or otherwise in connection with the Loans made
hereunder, shall be materially incorrect, and such failure shall continue
unremedied for a period of thirty (30) days following the earlier of the date an
executive officer of Borrower first has actual knowledge of such breach or
failure, or the date Borrower is given written notice from Lender to Borrower
specifying such breach or failure. If such failure cannot be cured by Borrower
with reasonable diligence within such thirty (30) day period, then such period
shall be extended to a total of forty-five (45) days provided that within such
thirty (30) day period Borrower shall commence to cure such breach or failure
and shall continue to proceed thereafter with reasonable diligence;
or</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;If
Borrower or any of the Guarantors (i) shall generally not pay or shall be unable
to pay its or their debts as such debts become due; or (ii) shall make a general
assignment for the benefit of creditors or petition or apply to any tribunal for
the appointment of a custodian, receiver or trustee for such party, the
Collateral or a substantial part of such party&#8217;s assets; or (iii) shall commence
any proceeding under bankruptcy, reorganization, arrangement, readjustment of
debt, dissolution or liquidation law or statute of any jurisdiction, whether now
or hereafter in effect; or (iv) shall have had any petition or application filed
or commenced against it or them in which an order for relief is entered or an
adjudication or appointment is made; or (v) shall indicate, by any act or
omission, such party&#8217;s consent to, approval of or acquiescence in any such
petition, application, proceeding, or order for relief or the appointment of a
custodian, receiver or trustee for such party, the Collateral or a substantial
part of such party&#8217;s assets; or (vi) shall suffer any custodianship,
receivership or trusteeship to continue undischarged for a period of thirty (30)
days or more; or</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;If
Borrower or any of the Guarantors shall be liquidated or dissolved (provided,
however, any Guarantor may be liquidated, dissolved or merged into another
Guarantor or Borrower); or</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;If
there is a default in any other material indebtedness or obligations now or
hereafter owing by Borrower or Guarantors, to Lender.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="4">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>In any such event, Lender may, in
addition to all&#160;&#160;remedies available to Lender under the terms of any
of the Loan Documents, or otherwise by applicable law, take any or all of the
following actions, concurrently or successively: (i) declare the indebtedness
evidenced by the Notes delivered pursuant to this Loan Agreement to be
immediately due and payable without presentment, demand, or other notice, all of
which are expressly waived, unless notice is specifically provided herein, or
elsewhere in the Loan Documents, (ii) terminate the obligation of Lender to
extend credit of any kind hereunder, whereupon the obligation of Lender to make
additional advances hereunder shall terminate, (iii) acquire possession of the
Collateral.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Borrower shall be liable to Lender for
all sums paid or expended by Lender in connection with the Collateral or
otherwise in connection with this Loan Agreement, and all payments made or
liabilities incurred by Lender hereunder, of any kind whatsoever, shall be
payable upon demand, and all of the foregoing, shall be deemed to constitute
advances under this Loan Agreement, and the Notes, and shall be additional
indebtedness secured by the Security Instruments.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">VI.
GENERAL PROVISIONS</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">6.1</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Setoff.</font>&#160;&#160;&#160;&#160;In
addition to all rights of setoff, Lender shall have upon the occurrence of an
Event of Default hereunder the right to appropriate and apply to the payment of
the Loans outstanding hereunder, any and all balances, credits, deposits,
accounts, money, or other property of Borrower or Guarantors then or thereafter
held by or deposited with Lender.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">6.2</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Attorney Fees and
Costs.</font>&#160;&#160;Borrower shall be liable to Lender for all sums
reasonably paid or incurred by Lender in connection with this Loan Agreement,
the Loans made hereunder, the Collateral, whether paid or incurred by reason of
any default hereunder, or in any of the Loan Documents, or otherwise, and such
shall include, but shall not be limited to, the payment of all reasonable
attorneys&#8217; fees so paid or incurred. All such sums shall be payable by Borrower
to Lender upon demand, and all of the foregoing shall constitute advances under
this Loan Agreement. Borrower shall further pay to Lender all costs and expenses
incurred by Lender, including, but not limited to, reasonable attorneys&#8217; fees,
in the preparation and consummation of this Loan Agreement, and the Loans made
hereunder.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">6.3</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Remedies
Cumulative.</font>&#160;&#160;All remedies provided for in this Loan Agreement,
or in any of the Loan Documents, shall be cumulative, and shall be in addition
to all other remedies available to Lender by applicable law.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">6.4</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Inspection.</font>&#160;&#160;&#160;Upon
reasonable prior notice, Lender, its representatives and designees, shall have
reasonable access to the books and records of Borrower with respect to the
Collateral, and shall be entitled to copies of such records upon request.
Borrower shall make such books and records available to Lender upon reasonable
request. Upon reasonable prior notice, Lender shall be entitled to access to the
Collateral for the purpose of inspecting the same, and in order to otherwise
carry out the provisions of this Loan Agreement, or of any of the Loan
Documents.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">6.5</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">No Waiver.</font>&#160;&#160;The
failure of Lender to exercise any right or remedy granted under this Loan
Agreement, any of the Loan Documents, or by applicable law, shall not be a
waiver of Lender&#8217;s right or rights to exercise any such right or remedy upon any
subsequent default.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="4">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">6.6</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Captions.</font>&#160;&#160;Captions
used herein are for convenience only, and shall not be construed as limiting the
construction of the provisions of this Loan Agreement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">6.7</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Notice.</font>&#160;&#160;Any and all
notices permitted or required under this Loan Agreement, or any of the Loan
Documents, shall be deemed given if hand-delivered, or mailed by United States
registered or certified mail, postage prepaid, return receipt requested, to the
following addresses:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
      <div>&#160;</div>
      <div align="center">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">If to Borrower, as
      follows:</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">J. Alexander&#8217;s
      Corporation</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Attn:&#160;&#160;R.
      Gregory Lewis</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">3401 West End
      Avenue, Suite 260</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Nashville, Tennessee
      37203</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">with a copy
      to:</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Bass, Berry &amp;
      Sims PLC</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Attn:&#160;&#160;Felix
      R. Dowsley, III</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">315 Deaderick
      Street, Suite 2700</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Nashville,
      TN&#160;&#160;37238</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">and in the case of
      Lender:</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Pinnacle National
      Bank</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Attn:&#160;&#160;William
      W. DeCamp, Senior Vice President</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">211 Commerce Street,
      Suite 300</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Nashville, Tennessee
      37201</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">with a copy
      to:&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Gullett, Sanford,
      Robinson &amp; Martin PLLC</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Attn:&#160;&#160;George
      V. Crawford, Jr</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">315 Deaderick
      Street, Suite 1100</font></td>
            </tr>
            <tr>
              <td width="29%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td width="71%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Nashville,
      TN&#160;&#160;37238</font></td>
            </tr>
        </table>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">or to
such other address, or addresses, as either party may request in writing to the
other from time to time. No notice to or demand on Borrower hereunder, in itself
shall entitle Borrower to any other or further notice or demand in similar or
other circumstances, or shall constitute a waiver of the rights of Lender to any
other or further action in any circumstances without notice or
demand.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">6.8</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Interest.</font>&#160;&#160;Notwithstanding
anything herein to the contrary, in no event shall interest charged under the
Loans hereunder exceed the maximum rate allowed by applicable law. Interest
shall be calculated on the basis of a three hundred sixty (360) day
year.</font></div>
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Liability.</font>&#160;&#160;Except to the extent caused by Lender's negligence
or willful misconduct, Borrower shall indemnify and hold harmless Lender from
and against any and all liability, loss, and damage incurred by Lender in
connection with this Loan Agreement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">6.10</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Successors and
Assigns.</font>&#160;&#160;&#160;&#160;This Loan Agreement shall be binding upon
the parties hereto, and their respective successors and assigns. However, no
rights of Borrower hereunder may be assigned without the express prior written
consent of Lender.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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invalidity or unenforceability of any provision hereof shall not affect the
validity or enforceability of the remaining provisions.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">6.12&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Entire
Agreement, Amendment.</font>&#160;&#160;This Loan Agreement, and the Loan
Documents executed pursuant hereto shall constitute the entire agreement of the
parties. Any additional provisions contained in the Loan Documents not contained
herein shall be supplemental and in addition to the provisions hereof. This Loan
Agreement may be modified or amended only by an instrument in writing executed
by all parties hereto.</font></div>
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construction and validity of this Loan Agreement, and the Loans made hereunder,
shall be governed by the law of the State of Tennessee, except to the extent
that such may be pre-empted by applicable law or regulation of the United States
of America governing the charging or receiving of interest.</font></div>
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Number.</font>&#160;&#160;Time is of the essence with respect to this Loan
Agreement, and all provisions and obligations hereof. As used herein, the
singular shall refer to the plural, the plural to the singular, and the use of
any gender shall be applicable to all genders.</font></div>
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Assurances.</font>&#160;&#160;Borrower shall execute and deliver such additional
instruments and documents and take such further actions, as may be reasonably
requested by Lender from time to time to further evidence or perfect the rights
of and obligations owing to Lender hereunder and to correct any errors or
mistakes in the transactions evidenced hereby.</font></div>
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Loan Agreement may be executed in one or more counterparts, each of which shall
be deemed an original and all of which, taken together, shall constitute one and
the same instrument.</font></div>
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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parties have executed this Loan Agreement as of the date first above
written.</font></div>
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            <td width="32%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
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              <td width="68%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">LENDER:</font></font></td>
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              <td width="68%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
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      William W. DeCamp</font></td>
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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>exh_102.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
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    <title>Unassociated Document</title>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="Markspot">EXHIBIT 10.2</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PROMISSORY
NOTE</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
      <div>&#160;</div>
      <div align="center">
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            <tr>
              <td valign="top" width="50%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$3,000,000.00&#160;
      </font></td>
              <td valign="top" width="50%">
                <div style="TEXT-ALIGN: right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">May 22,
      2009</font></div>
                <div style="TEXT-ALIGN: right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Nashville,
      Tennessee</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">FOR VALUE RECEIVED</font>, the
undersigned, <font style="DISPLAY: inline; FONT-WEIGHT: bold">J. ALEXANDER&#8217;S
CORPORATION</font>, a Tennessee corporation (&#8220;Borrower&#8221;), promises to pay to the
order of <font style="DISPLAY: inline; FONT-WEIGHT: bold">PINNACLE NATIONAL
BANK</font> (&#8220;Lender&#8221;), in lawful currency of the United States of America, at
its principal office in Nashville, Tennessee, or at such other place as the
holder from time to time may designate in writing, the principal sum of <font style="DISPLAY: inline; FONT-WEIGHT: bold">THREE MILLION AND NO/100
($3,000,000.00) DOLLARS</font>, together with interest thereon computed on the
unpaid principal balance from the date of disbursement hereunder at an annual
rate equal to LIBOR (as hereinafter defined) plus the Applicable Margin, as
defined in the Loan Agreement (as hereinafter defined).&#160;&#160;As used
herein, &#8220;LIBOR&#8221; shall mean the London Interbank Offered Rate for one (1) month
as published in <font style="DISPLAY: inline; TEXT-DECORATION: underline">The
Wall Street Journal</font>, which is the British Bankers&#8217; Association average of
interbank offered rates for dollar deposits in the London market on the date of
this instrument, or if such date is not a publication date, on the next
preceding publication date; provided, however, in no event shall the interest
payable hereunder be less than 4.60% per annum. The interest rate shall be
automatically adjusted on the tenth (10<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">th</font>) day of
each month after execution hereof until the Maturity Date, as hereinafter
defined, unless earlier accelerated, to the interest rate so calculated and in
effect on such date, or the next preceding date for which the LIBOR rate is
published, if no rate is published on such date.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
shall be calculated on the basis of a three hundred sixty (360) day
year.&#160;&#160;Principal and interest shall be payable as
follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Commencing
on June 22, 2009, and for the next six (6) months on the 22<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">nd</font> day for
each month, interest only shall due and payable on the outstanding principal
balance.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Commencing
on December 22, 2009 and for the next fifty three (53) months, principal
payments of $55,555.56 plus interest shall be due and payable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
entire unpaid principal and all accrued interest and other charges shall be due
and payable on May 22, 2014 (the &#8220;Maturity Date&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
indebtedness evidenced hereby, and all extensions, modifications and renewals
thereof, is secured by an Assignment and Security Agreement of even date
herewith, and certain additional security documents (the &#8220;Security
Instruments&#8221;).</font></div>
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of the principal sum and, to the extent permitted by law, any accrued interest,
shall bear, after default or maturity, interest at the lesser of (i) the highest
lawful rate then in effect pursuant to applicable law, or (ii) the rate that is
four percentage points (4%) in excess of the LIBOR, as it varies from time to
time.</font></div>
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shall be advanced hereunder subject to, and in accordance with, the conditions
and other requirements contained in the Loan Agreement of even date herewith
executed between Borrower and Lender (the &#8220;Loan Agreement&#8221;).</font></div>
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under this Note may be prepaid at any time without premium or other prepayment
charge.&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">It is
understood, however, that there are certain mandatory prepayment provisions
which apply to this Note and are set forth in the Loan
Agreement.</font></font></div>
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occurrence of an Event of Default (as defined in the Loan Agreement), then at
the election of the legal holder hereof, at any time thereafter made and without
demand or notice, the owner and holder of this Note shall have the right to
declare all sums unpaid hereon at once due and payable. In the event of such
Event of Default, and the same is placed in the hands of an attorney for
collection, or a suit is filed hereon, or if the proceedings are held in
bankruptcy, receivership, or the reorganization of Borrower, or any guarantor or
surety of Borrower, or other legal or judicial proceedings for the collection
hereof, Borrower agrees to pay in addition to the owner and holder of this Note,
all costs of collection, including reasonable attorneys&#8217; fees.</font></div>
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expressly waives presentment for payment, notice of nonpayment, protest, notice
of protest, bringing of suit, and diligence in taking any action to claim the
amounts owing hereunder and is and shall be jointly and severally, directly and
primarily, liable for the amount of all sums owing and to be owing hereon and
agrees that this Note, or any payment hereunder, may be extended from time to
time without affecting such liability.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
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the existence of an Event of Default, Lender or other owner and holder hereof is
expressly authorized to apply all payments made on this Note to the payment of
such part of any delinquency as it may elect.</font></div>
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remedies of the Lender as provided herein, in the Loan Agreement or the Security
Instruments, or any other instruments evidencing or securing this Note, shall be
cumulative and concurrent, and may be pursued singularly, successively or
together, at the sole discretion of the Lender, and may be exercised as often as
occasion therefore shall arise.&#160;&#160;No act or omission of the Lender,
including specifically any failure to exercise any right, remedy, or recourse,
shall be deemed to be a waiver or release of the same, such waiver or release to
be effected only through a written document executed by the Lender and then only
to the extent specifically recited therein.&#160;&#160;A waiver or release with
reference to any one event shall not be construed as continuing, as a bar to, or
as a waiver or release of, any subsequent right, remedy or recourse as to a
subsequent event.&#160;&#160;Notwithstanding anything herein to the contrary, in
no event shall interest payable hereunder be in excess of the maximum rate
allowed by applicable law. In the event any sums payable hereunder are
determined to be in excess of the maximum allowable rate, amounts in excess of
such maximum rate shall be deemed payments of principal.</font></div>
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of the essence of this Note. Where used herein, the singular shall refer to the
plural, the plural to the singular, and the masculine and feminine shall refer
to any gender.&#160;&#160;If Borrower is composed of more than one person or
entity, &#8220;Borrower&#8221; as used herein shall refer to any and all persons or entities
constituting Borrower, as the circumstances may require.</font></div>
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shall be governed by and construed under the laws of the State of Tennessee,
except as such may be pre empted by applicable law or regulation of the United
States of America governing the charging or receiving of interest.</font></div>
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provisions hereof shall be binding upon the parties, their successors and
assigns. The provisions hereof are severable such that the invalidity or
unenforceability of any provision hereof shall not affect the validity or
enforceability of the remaining provisions.</font></div>
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Page Follows]</font></div>
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instrument has been executed on the day and year first above
written.</font></div>
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Lewis</font></font></div>
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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>4
<FILENAME>exh_103.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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  <head>
    <title>Unassociated Document</title>
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10.3</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REVOLVING
PROMISSORY NOTE</font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><br><br>
        <div>
          <div align="left">
            <table cellpadding="0" cellspacing="0" width="100%">
                <tr>
                  <td valign="top" width="50%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$5,000,000.00</font></div>
                    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">May
      22, 2009</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Nashville,
      Tennessee</font></div>
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                </tr>
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          </div>
        </div>&#160;<br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">FOR VALUE RECEIVED,</font> the
undersigned, <font style="DISPLAY: inline; FONT-WEIGHT: bold">J. ALEXANDER&#8217;S
CORPORATION</font>, a Tennessee corporation
(&#8220;Borrower&#8221;),&#160;&#160;promises&#160;&#160;to
pay&#160;&#160;&#160;to&#160;&#160;the&#160;&#160;order&#160;&#160;of&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">PINNACLE NATIONAL BANK</font>
(&#8220;Lender&#8221;), in lawful currency of the United States of America, at its principal
office in Nashville, Tennessee, or at such other place as the holder from time
to time may designate in writing, the principal sum of <font style="DISPLAY: inline; FONT-WEIGHT: bold">FIVE MILLION AND NO/100
($5,000,000.00) DOLLARS</font>, or so much thereof as may be outstanding
hereunder from time to time, together with interest thereon computed on the
unpaid principal balance from the date of disbursement hereunder at an annual
rate equal to LIBOR (as hereinafter defined) plus the Applicable Margin, as
defined in the Loan Agreement (as hereinafter defined).&#160;&#160;As used
herein, &#8220;LIBOR&#8221; shall mean the London Interbank Offered Rate for one (1) month
as published in <font style="DISPLAY: inline; TEXT-DECORATION: underline">The
Wall Street Journal</font>, which is the British Bankers&#8217; Association average of
interbank offered rates for dollar deposits in the London market on the date of
this instrument, or if such date is not a publication date, on the next
preceding publication date; provided, however, in no event shall the interest
payable hereunder be less than 4.60% per annum. The interest rate shall be
automatically adjusted on the tenth (10<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">th</font>) day of
each month after execution hereof until the Maturity Date, as hereinafter
defined, unless earlier accelerated, to the interest rate so calculated and in
effect on such date, or the next preceding date for which the LIBOR rate is
published, if no rate is published on such date.</font></div>
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shall be calculated on the basis of a three hundred sixty (360) day
year.&#160;&#160;Principal and inter<a name="Markspot">est shall be payable as
follows:</a></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Commencing
on the 22<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">nd</font> day of
June, 2009, and on the same day of each succeeding month thereafter through
April 22, 2012, monthly payments of interest only shall be due and
payable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
entire unpaid principal and all accrued interest and other charges shall be due
and payable on May 22, 2012 (the &#8220;Maturity Date&#8221;).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
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indebtedness evidenced hereby, and all extensions, modifications and renewals
thereof, is secured by an Assignment and Security Agreement of even date
herewith, and certain additional security documents (the &#8220;Security
Instruments&#8221;).</font></div>
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of the principal sum and, to the extent permitted by law, any accrued interest,
shall bear, after default or maturity, interest at the lesser of (i) the highest
lawful rate then in effect pursuant to applicable law, or (ii) the rate that is
four percentage points (4%) in excess of the LIBOR, as it varies from time to
time.</font></div>
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shall be advanced hereunder subject to, and in accordance with, the conditions
and other requirements contained in the Loan Agreement of even date herewith
executed between Borrower and Lender (the &#8220;Loan Agreement&#8221;).</font></div>
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under this Note may be prepaid at any time without premium or other prepayment
charge<font style="DISPLAY: inline; FONT-WEIGHT: bold">.&#160;&#160;It is
understood, however, that there are certain mandatory prepayment provisions
which apply to this Note and are set forth in the Loan
Agreement.</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon the
occurrence of an Event of Default (as defined in the Loan Agreement), then at
the election of the legal holder hereof, at any time thereafter made and without
demand or notice, the owner and holder of this Note shall have the right to
declare all sums unpaid hereon at once due and payable. In the event of such
Event of Default, and the same is placed in the hands of an attorney for
collection, or a suit is filed hereon, or if the proceedings are held in
bankruptcy, receivership, or the reorganization of Borrower, or any guarantor or
surety of Borrower, or other legal or judicial proceedings for the collection
hereof, Borrower agrees to pay in addition to the owner and holder of this Note,
all costs of collection, including reasonable attorneys&#8217; fees.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Borrower
expressly waives presentment for payment, notice of nonpayment, protest, notice
of protest, bringing of suit, and diligence in taking any action to claim the
amounts owing hereunder and are and shall be jointly and severally, directly and
primarily, liable for the amount of all sums owing and to be owing hereon and
agree that this Note, or any payment hereunder, may be extended from time to
time without affecting such liability.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
the existence of an Event of Default, Lender or other owner and holder hereof is
expressly authorized to apply all payments made on this Note to the payment of
such part of any delinquency as it may elect.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
remedies of the Lender as provided herein, or any other instruments evidencing
or securing this Note, shall be cumulative and concurrent, and may be pursued
singularly, successively or together, at the sole discretion of the Lender, and
may be exercised as often as occasion therefor shall arise. No act or omission
of the Lender, including specifically any failure to exercise any right, remedy,
or recourse, shall be deemed to be a waiver or release of the same, such waiver
or release to be effected only through a written document executed by the Lender
and then only to the extent specifically recited therein. A waiver or release
with reference to any one event shall not be construed as continuing, as a bar
to, or as a waiver or release of, any subsequent right, remedy or recourse as to
a subsequent event. Notwithstanding anything herein to the contrary, in no event
shall interest payable hereunder be in excess of the maximum rate allowed by
applicable law. In the event any sums payable hereunder are determined to be in
excess of the maximum allowable rate, amounts in excess of such maximum rate
shall be deemed payments of principal.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Time is
of the essence of this Note.&#160;&#160;Where used herein, the singular shall
refer to the plural, the plural to the singular, and the masculine and feminine
shall refer to any gender. If Borrower is composed of more than one person or
entity, &#8220;Borrower&#8221; as used herein shall refer to any and all persons or entities
constituting Borrower, as the circumstances may require.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify">&#160;</div>
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shall be governed by and construed under the laws of the State of Tennessee,
except as such may be pre empted by applicable law or regulation of the United
States of America governing the charging or receiving of interest.</font></div>
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provisions hereof shall be binding upon the parties, their successors and
assigns. The provisions hereof are severable such that the invalidity or
unenforceability of any provision hereof shall not affect the validity or
enforceability of the remaining provisions.</font></div>
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instrument has been executed on the day and year first above
written.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 180pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>BORROWER:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 180pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">J. ALEXANDER&#8217;S
CORPORATION</font>,</font></div>
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Lewis</font></font></div>
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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>5
<FILENAME>exh_104.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
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  <head>
    <title>Unassociated Document</title>
    <!--Licensed to: GlobeNewswire, Inc.-->
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    <!--Copyright 1995 - 2008 EDGARfilings, Ltd., an IEC company. All rights reserved-->
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  <div id="lockwidth" style="width: 640px">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
10.4</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">STOCK
PURCHASE AGREEMENT</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>STOCK PURCHASE AGREEMENT (the
&#8220;Agreement&#8221;) dated as of May 22, 2009, among Solidus Company, L.P., a Tennessee
limited partnership (&#8220;Solidus&#8221;), and E.&#160;Townes Duncan (&#8220;Duncan&#8221;)
(collectively, the &#8220;Sellers&#8221; and each a &#8220;Seller&#8221;) on the one hand, and
J.&#160;Alexander&#8217;s Corporation, a Tennessee corporation (the &#8220;Company&#8221;), on the
other hand.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Sellers wish to sell to the
Company, and the Company wishes to purchase from each Seller, subject to the
terms and conditions hereof, the number of authorized and issued shares of
Common Stock, $.05 par value, of the Company (the &#8220;Common Stock&#8221;) set forth
opposite such Seller&#8217;s name on <font style="DISPLAY: inline; TEXT-DECORATION: underline">Schedule 1</font> hereto
(the &#8220;Shares&#8221;), which is a total of 808,000 shares.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>In consideration of the foregoing and
the agreements made herein, the parties hereto agree as follows:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ARTICLE
I</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">STOCK
PURCHASE</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>1.1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Purchase and
Sale</font>.&#160;&#160;Upon the terms herein set forth, the Sellers hereby
sell, free and clear of all liens, claims, restrictions, security interests or
encumbrances, the Shares to the Company, and the Company hereby acquires the
Shares for a purchase price of $ 3.60 per share equaling an aggregate purchase
price of $2,908,800 (the &#8220;Purchase Price&#8221;), payable to the Sellers in
immediately available funds (the &#8220;Stock Purchase&#8221;).</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ARTICLE
II</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">DELIVERIES</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>2.1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Sellers&#8217;
Deliveries</font>.&#160;&#160;The Sellers shall deliver contemporaneously
herewith:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Certificates
representing the Shares, duly endorsed (or accompanied by duly executed stock
powers), for transfer to the Company.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(B)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Evidence
reasonably satisfactory to the Company that all liens, claims, restrictions,
security interests or encumbrances of any kind on the Shares have been released
(or are being released upon the delivery of the Purchase Price) and any
financing statements relating thereto are authorized to be
terminated.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(C)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Evidence
reasonably satisfactory to the Company that all requisite resolutions or
approvals of or on behalf of the Sellers (or the partners of Solidus)
authorizing and approving the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been made or
given.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>2.2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Company
Delivery</font>.&#160;&#160;At the Closing, the Company will deliver to Sellers
the Purchase Price by wire transfer to the account designated by the
Sellers.</font></div><br>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ARTICLE
III</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REPRESENTATIONS
AND WARRANTIES OF SELLERS</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Sellers, jointly and severally, to
induce the Company to enter into and consummate the transactions contemplated
hereby, hereby represent and warrant as follows:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>3.1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Ownership</font>.&#160;&#160;The
Sellers are the sole record owners of the Shares and such Shares are free and
clear of all liens, security interests, pledges, proxy restrictions,
encumbrances or other interests of any kind whatsoever (other than a pledge to
Pinnacle Financial Partners, N.A. (&#8220;Pinnacle&#8221;) which is being released and
terminated simultaneously herewith).&#160;&#160;Except as noted in the preceding
sentence, the Sellers have not granted any interests or rights to any third
party with respect to the Shares, and there are no agreements or arrangements
obligating them to grant any such interest or rights to any third
party.&#160;&#160;Upon the delivery of the certificates for the Shares or the
delivery of the shares by DWAC transfer to Computershare as the transfer agent
for the Company&#8217;s common stock, the Company will obtain good, valid and
marketable title to the Shares free and clear of all liens, claims and
encumbrances whatsoever.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>3.2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Binding
Agreement</font>.&#160;&#160;The Sellers have all requisite power and authority
to enter into this Agreement and perform their obligations
hereunder.&#160;&#160;The execution, delivery and performance of this Agreement
by Solidus has been duly and validly authorized by all necessary partnership
action on the part of Solidus, including, without limitation, any required
approval of limited partners.&#160;&#160;This Agreement constitutes a valid and
binding agreement of the Sellers enforceable against each of them in accordance
with its terms, and no consent of any federal, state or other local authority or
any other person or entity that has not been obtained is required to be obtained
by the Sellers in connection with the consummation of the transactions
contemplated by this Agreement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>3.3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">No
Conflicts</font>.&#160;&#160;The execution and delivery of this Agreement, the
consummation of the transactions contemplated hereby and the fulfillment of and
compliance with the terms and conditions hereof do not and will not with the
passing of time or giving of notice of conflict with, result in a breach of, or
right to cancel or constitute a default under, any agreement or instrument to
which either of the Sellers is a party, by which they are bound or to which the
Sellers or the Shares are subject.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ARTICLE
IV</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REPRESENTATIONS
AND WARRANTIES OF THE COMPANY</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>4.1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Existence and
Qualification</font>.&#160;&#160;The Company is a corporation validly existing
and in good standing under the laws of the State of Tennessee.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font size="2">4.2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Authority</font>.&#160;&#160;The
Company has all requisite corporate power and authority to enter into this
Agreement and to perform its obligations hereunder.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="4">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ARTICLE
V</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">COVENANTS
AND AGREEMENTS</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>5.1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Orderly
Market</font>.&#160;&#160;Sellers hereby covenant and agree as
follows:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;For
a period beginning on the date of this Agreement and ending on the second
anniversary date hereof, the Sellers will not, without the prior consent of the
Company&#8217;s Board of Directors specifically expressed in a resolution adopted by a
majority of the directors of the Company who are not agents, affiliates,
employees, directors or designees of a Seller, sell, transfer, or otherwise
dispose of Remaining Voting Securities in excess of the following number of
shares of Common Stock (adjusted for any stock splits) in the aggregate during
the time periods set forth below, except to any affiliate, subsidiary or entity
under the direct or indirect control of, or under common control with, the
Seller:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Dates</font></div>
            </td>
            <td valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Number
      of shares of Common Stock</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">date
      of this Agreement through December 31, 2009</font></div>
            </td>
            <td valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">100,000</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">calendar
      2010</font></div>
            </td>
            <td valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">200,000</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">January
      1, 2011 to second anniversary hereof</font></div>
            </td>
            <td valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">100,000</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(B)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;For
purposes of this subsection:&#160;&#160;&#8220;Seller&#8221; means E.&#160;Townes Duncan and
Solidus Company, L.P., its or his successors, affiliates, subsidiaries, and
other corporations, entities and persons under its or his direct or indirect
control or under common control or acting on its or his behalf or in concert
with it or him, and, as to an individual, his executors, heirs and
beneficiaries; and &#8220;Remaining Voting Securities&#8221; means common stock and any
other securities owned by Seller entitled to vote generally for the election of
the Company&#8217;s directors and not otherwise purchased by the Company pursuant to
the Stock Purchase.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>5.2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Further
Action</font>.&#160;&#160;Each of the parties hereto shall execute such
documents and take such action as may be reasonably requested by another party,
as may be required by the terms and provisions of the Agreement to carry out the
provisions and purposes of this Agreement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ARTICLE
VI</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">GENERAL
PROVISIONS</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>6.1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Assignment</font>.&#160;&#160;This
Agreement may not be assigned by any party hereto, except this Agreement will
inure to the benefit of any successor-in-interest of the Company or purchaser of
all or substantially all the Company&#8217;s assets and will bind any persons that may
be a &#8220;Seller&#8221; under Section 5.1.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>6.2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Counterparts</font>.&#160;&#160;This
Agreement may be executed in counterparts and each such counterpart shall be
deemed to be an original instrument.</font></div><br>
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</font></div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="4">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>6.3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Entire
Agreement</font>.&#160;&#160;This Agreement, including the exhibits and other
documents referred to herein or delivered pursuant hereto, contains the entire
understanding of the parties with respect to its subject matter. This Agreement
supersedes all prior agreements and understandings between the parties with
respect to its subject matter.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>6.4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Choice of
Law</font>.&#160;&#160;This Agreement shall be governed by and construed in
accordance with the laws of the State of Tennessee.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>6.5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">No Third Party
Beneficiaries</font>.&#160;&#160;The parties do not intend to confer any benefit
hereunder on any person or entity other than the parties hereto.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>6.6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Injunctions</font>.&#160;&#160;It
is agreed that each party shall be entitled to an injunction or injunctions to
prevent breaches of this Agreement and to specifically enforce the terms and
provisions thereof in any action instituted in any court of the United States or
any state thereof having subject mailer jurisdiction, in addition to any other
remedy to which such party may be entitled, at law or in equity.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>6.7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Survival</font>.&#160;&#160;All
provisions of this Agreement shall survive the Closing hereunder and shall
remain applicable for five years; provided that the representations and
warranties in <font style="DISPLAY: inline; TEXT-DECORATION: underline">Section
3.1</font> shall survive indefinitely.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">[Signature
Page Follows]</font></div><br>
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</font></div>
      </div>
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          <hr style="COLOR: black" noshade size="4">
        </div>
      </div>
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</font></div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">IN WITNESS WHEREOF</font>, the
parties have executed this Agreement and caused the same to be duly delivered on
their behalf as of the day and year first written above.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SOLIDUS
COMPANY, L.P.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -27pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;Its
General Partner, Solidus General Partner, LLC</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By: <font style="DISPLAY: inline; TEXT-DECORATION: underline">/s/ E. Townes
Duncan</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 234pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name: E.
Townes Duncan</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 234pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Its:
Chief Executive Officer</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">E.
TOWNES DUNCAN</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">/s/ E. Townes
Duncan</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">E. Townes
Duncan</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">J.
ALEXANDER&#8217;S CORPORATION</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:<font style="DISPLAY: inline; TEXT-DECORATION: underline"> /s/ R. Gregory
Lewis</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 234pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name: R.
Gregory Lewis</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 234pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Its: Vice
President and Chief Financial Officer</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
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</font></div>
      </div>
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1</font></font></div>
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      <div>
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              </td>
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              </td>
              <td valign="top" width="31%">
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline">Represented by Cert.
  No(s).</font></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="24%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="top" width="28%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="top" width="31%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Solidus
      Company, L.P.</font></div>
              </td>
              <td valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">800,000</font></div>
              </td>
              <td valign="top" width="31%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">61406</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="24%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="top" width="28%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="top" width="31%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">E.
      Townes Duncan</font></div>
              </td>
              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">8,000</font></div>
              </td>
              <td align="left" valign="top" width="31%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Street
      name at Charles
Schwab</font></div>
              </td>
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1</font></div>
        </div>
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>6
<FILENAME>exh_991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
99.1</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
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                <div style="DISPLAY: block; TEXT-INDENT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline">FOR IMMEDIATE RELEASE</font></font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              </td>
              <td align="left" valign="top" width="40%">
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Contact:&#160;&#160;R.
      Gregory Lewis</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(615)
      269-1900</font></div>
              </td>
            </tr>
        </table>
      </div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">J.
ALEXANDER&#8217;S ANNOUNCES NEW CREDIT FACILITIES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AND
STOCK REPURCHASE FROM SOLIDUS</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Nashville, TN, May 22, 2009 &#8211;
J.&#160;Alexander&#8217;s Corporation (NASDAQ: JAX) announced today that it had
successfully closed new senior secured credit facilities with Pinnacle National
Bank and repurchased 808,000 shares of its common stock from Solidus Company,
L.P. and an affiliate at a price of $3.60 per share, using proceeds of a term
loan under the credit facilities.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The new credit facilities consist of a
three-year $5,000,000 revolving line of credit, which may be used for general
corporate purposes, and a $3,000,000 term loan, which funded the stock
repurchase.&#160;&#160;The revolving line of credit replaces the Company&#8217;s
previous line of credit.&#160;&#160;The credit facilities will be secured by
liens on certain personal property of the Company and its subsidiaries,
subsidiary guaranties and a negative pledge on certain real
property.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Amounts borrowed will bear interest at
an annual rate of 30-day LIBOR plus an initial margin of 450 basis points, with
a minimum interest rate of 4.6%.&#160;&#160;Scheduled term loan payments are
interest only for six months and monthly payments of principal plus interest
over the remainder of the five-year term.&#160;&#160;The credit facilities are
subject to other customary terms and covenants.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Lonnie J. Stout II, Chairman, President
and Chief Executive Officer of the Company, said &#8220;We are extremely pleased to
complete our new credit facilities on favorable terms.&#160;&#160;The three-year
term of the revolving credit facility will provide financial flexibility to the
Company.&#160;&#160;The stock repurchase price represents a negotiated price
that is approximately 14% below the closing market price on May 21, 2009, and
approximately 62% below the Company&#8217;s net book value per share before the
transaction.&#160;&#160;We believe the transaction will increase significantly
the long-term value to other shareholders of the Company.&#160;&#160;In
addition, we are pleased that Solidus has agreed to maintain a position in our
stock and to limit potential future dispositions.&#8221;&#160;&#160;The stock purchase
was approved by the board of directors and by the Audit Committee of the board
of directors, which is comprised solely of independent directors.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>E. Townes Duncan, Chief Executive
Officer of Solidus&#8217;s general partner, commented, &#8220;Solidus continues to remain a
supporter of J.&#160;Alexander&#8217;s.&#160;&#160;Solidus determined to liquidate a
portion of its investment in J.&#160;Alexander&#8217;s in order to reduce indebtedness
and pursue investment opportunities available in both public and private
ventures in the current climate.&#160;&#160;While Solidus&#8217;s position in the
Company is reduced to approximately 8% of the Company&#8217;s outstanding stock, I am
glad to remain a member of the Board of Directors of J.&#160;Alexander&#8217;s with a
commitment to the Company&#8217;s future success.&#8221;&#160;&#160;Solidus has agreed to
limitations on its ability to sell its remaining shares of common stock, with
dispositions limited to 100,000 shares in the remainder of 2009, 200,000 shares
during 2010, and 100,000 shares during the first five months of
2011.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Cary Street Partners LLC, an investment
banking and wealth management firm, rendered an opinion as to the fairness from
a financial point of view of the purchase price to the Company and to the
shareholders of J.&#160;Alexander&#8217;s other than Solidus and its
affiliate.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>J.&#160;Alexander&#8217;s Corporation
operates 33 J. Alexander&#8217;s restaurants in thirteen states: Alabama, Arizona,
Colorado, Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, Michigan,
Ohio, Tennessee and Texas.&#160;&#160;J. Alexander&#8217;s is an upscale, contemporary
American restaurant known for its wood-fired cuisine.&#160;&#160;The Company&#8217;s
menu features a wide selection of American classics, including steaks, prime rib
of beef and fresh seafood, as well as a large assortment of interesting salads,
sandwiches and desserts.&#160;&#160;J. Alexander&#8217;s also has a full-service bar
that features an outstanding selection of wines by the glass and
bottle.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>J. Alexander&#8217;s Corporation is
headquartered in Nashville, Tennessee.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>This press release contains
forward-looking statements that involve risks and
uncertainties.&#160;&#160;Actual results, performance or developments could
differ materially from those expressed or implied by those forward-looking
statements as a result of known or unknown risks, uncertainties and other
factors.&#160;&#160;These risks, uncertainties and factors include the Company&#8217;s
ability to maintain satisfactory guest count levels and maintain or
increase&#160;&#160;sales and operating margins in its restaurants under
recessionary economic conditions, which may continue indefinitely and which
could worsen; conditions in the U.S. credit markets and the availability of bank
financing on acceptable terms; changes in business or economic conditions,
including rising food costs and product shortages as well as
mandated&#160;&#160;increases in the minimum wage the Company is required to
pay; the effect of higher gasoline prices or commodity prices, unemployment and
other economic factors on consumer demand; availability of qualified employees;
increased cost of utilities, insurance and other restaurant operating expenses;
potential fluctuations of quarterly operating results due to seasonality and
other factors; the effect of hurricanes and other weather disturbances which are
beyond the control of the Company; the number and timing of new restaurant
openings and the Company&#8217;s ability to operate them profitably; competition
within the casual dining industry, which is very intense; competition by the
Company&#8217;s new restaurants with its existing restaurants in the same vicinity;
changes in consumer spending, consumer tastes, and consumer attitudes toward
nutrition and health; expenses incurred if the Company is the subject of claims
or litigation or increased governmental regulation; changes in accounting
standards, which may affect the Company&#8217;s reported results of operations; and
expenses the Company may incur in order to comply with changing corporate
governance and public disclosure requirements of the Securities and Exchange
Commission and The NASDAQ Stock Market LLC.&#160;&#160;These as well as other
factors are discussed in detail in the Company&#8217;s filings made with the
Securities and Exchange Commission and other communications.</font></div>
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