Document:

EX-10.32 Demand Promissory Note

 

Exhibit 10.32

8% DEMAND PROMISSORY NOTE

Payable on Demand

			
	March 21, 2007
	 	$30,000

     For value received, ODIMO INCORPORATED (“Maker”) promises to pay to ALAN LIPTON or his assigns
(“Payee”), at 655 Ocean Blvd., Golden Beach, Florida 33160, the principal sum of THIRTY THOUSAND
DOLLARS ($30,000).

     1. Interest Rate. This Note shall bear interest from the date hereof at eight percent
(8%) per annum, provided however, that in the event of a default the interest rate shall be as more
fully set forth in paragraph 3 below. Interest shall be computed on the basis of a 360-day year for
the actual number of days elapsed.

     2. Payable on Demand. After the date hereof, the principal balance of this Note,
together with any interest earned, shall be due and payable in full from Maker, on demand by Payee.
Maker shall make all payments hereunder to Payee in lawful money of the United States and in
immediately available funds. The maturity of this note may be accelerated by Payee in the event
Maker is in breach or default of any of the terms, conditions or covenants of this Note.

     3. Default Rate of Interest. Upon acceleration of maturity, the entire unpaid
principal balance of this Note shall bear interest until paid or otherwise satisfied pursuant to
Section 5 hereof, at an augmented annual rate (the “Default Rate’’) from and after the stated or
accelerated maturity of this Note, or from and after failure to pay on the due date any sum payable
under this Note (and the expiration of any applicable grace period). The Default Rate shall equal
the lesser of (i) eighteen percent (18%) or (ii) the maximum interest rate permitted by applicable
state law, if any.

     4. Rights and Remedies of Payee. Payee shall only be entitled to pursue the rights
and remedies provided under this Section 4 of this Note. Payee’s delay in exercising or failure to
exercise any rights or remedies to which Payee may be entitled in the event of any default shall
not constitute a waiver of any subsequent default, whether of the same or a different nature, nor
shall any single or partial exercise of any right or remedy by Payee preclude any other or further
exercise of that or any other right or remedy. No waiver of any right or remedy by Payee shall be
effective unless made in writing and signed by Payee, nor shall any waiver on one occasion apply to
any future occasion, but shall be effective only with respect to the specific occasion addressed in
that signed writing.

     5. Attorney’s Fees. If this Note is placed in the hands of an attorney for collection
or is collected through any legal proceeding, Maker promises to pay Payee’s costs, disbursements
and attorney’s fees incurred in connection therewith, including those incurred for post judgment,
appellate, bankruptcy or administrative proceedings.

     6. Maximum Interest Rate. In no event shall any agreed or actual exaction charged,
reserved or taken as an advance or forbearance by Payee as consideration for or pursuant to this
Note exceed the limits imposed or provided by the law applicable from time to time to the
Indebtedness, (if any), for the use or detention of money or for forbearance in seeking its
collection; Payee hereby waives any right to demand such excess. In the event that the interest
provisions of this Note or any exactions provided for in this Note shall result at any time or for
any reason in an effective rate of interest that

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exceeds the limits of the applicable law, then
without further agreement or notice the interest obligation(s) shall be automatically reduced to
such limit and all sums received by Payee in excess of those lawfully collectible as interest shall
be applied against principal immediately upon Payee’s receipt thereof, with the same force and
effect as though the Maker had specifically designated such extra sums to be so applied to
principal and Payee had agreed to accept such extra payment(s) as a premium-free prepayment or
prepayments. During any time that the Indebtedness bears interest at the maximum lawful rate
(whether by application of this paragraph, the Default Rate provisions of this Note, or otherwise),
interest shall be computed on the basis of the actual number of days elapsed and the actual number
of days in the respective calendar year.

     7. Waivers. MAKER HEREBY WAIVES DEMAND, PRESENTMENT, PROTEST AND NOTICE OF DISHONOR,
WAIVES SUIT AGAINST OR JOINDER OF ANY OTHER PERSON, WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION
OR PROCEEDING BROUGHT IN CONNECTION WITH THE LOAN, WAIVES THE RIGHT TO INTERPOSE ANY SET-OFF OR
NON-COMPULSORY COUNTERCLAIM OR TO PLEAD LACHES OR ANY STATUTE OF LIMITATIONS AS A DEFENSE IN ANY
SUCH ACTION OR PROCEEDING, WAIVES ANY IMMUNITY OR EXEMPTION OF ANY PROPERTY FROM GARNISHMENT OR
LEVY OR EXECUTION OR SEIZURE OR ATTACHMENT PRIOR TO OR IN EXECUTION OF JUDGEMENT. MAKER ALSO WAIVES
ANY RIGHT TO CONSOLIDATE ANY ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED, WITH ANY OTHER ACTION IN
WHICH A JURY TRIAL HAS NOT BEEN WAIVED. THE PROVISIONS OF THIS PARAGRAPH HAVE BEEN FULLY
NEGOTIATED BY THE PARTIES. THE WAIVER CONTAINED HEREIN IS IRREVOCABLE, CONSTITUTES A KNOWING AND
VOLUNTARY WAIVER, AND SHALL BE SUBJECT TO NO EXCEPTIONS. PAYEE HAS IN NO WAY AGREED WITH OR
REPRESENTED TO MAKER OR ANY OTHER PARTY THAT THE PROVISIONS OF THIS PARAGRAPH WILL NOT BE FULLY
ENFORCED IN ALL INSTANCES.

     8. Governing Law and Venue. This Note shall be governed by, and construed and
enforced in accordance with, the laws of the State of Florida Maker agrees that, at Payee’s
option, Miami, Florida shall be the proper venue for any and all legal proceedings arising out of
this Note.

     9. Severability. Any provision of this Note which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction only, be ineffective only to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof or affecting
the validity or enforceability of such provision in any other jurisdiction.

     10. Time of Essence. Time shall be of the essence with respect to the terms of this
Note.

     11. Binding Effect. All of the terms of this Note shall be binding upon Maker and
Maker’s successors and assigns, jointly and severally.

     12. Miscellaneous. The term “Payee” shall be deemed to include any subsequent
holder(s) of this Note. Whenever used in this Note and unless the context otherwise requires,
words in the singular include the plural, words in the plural include the singular, and pronouns of
any gender include
the other genders. Captions and paragraph headings in this Note are for convenience only and
shall not affect its interpretation.

     13. Notice. Any notice to Maker provided for in this note shall be given and deemed
sufficiently served if such notice is sent by certified mail, hand delivery, Federal Express or
other reputable courier service, addressed to Maker at the address stated below, or to such other
addresses as Maker may designate by notice to the Payee. Any notice to the Payee shall be given
and deemed sufficiently served if such notice is sent by certified mail, hand delivery, Federal
Express or other

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reputable courier service, to the Payee at the address stated in the first
paragraph of this Note, or at such other address as may have been designated by notice to Maker.

     14. Documentary Tax. The Note is being executed and held outside the State of Florida
and no documentary stamp taxes are due on the original principal indebtedness evidenced by this
Note. In the event that state documentary stamp taxes are required to be paid to the State of
Florida or other state, the Maker agrees to hold Payee harmless from and against any and all of the
costs involved in paying additional documentary stamps and any penalties or interest required to be
paid thereon, and the Maker agrees to pay Payee the full amount paid by Payee as documentary
stamps, penalties, costs and/or interest, if any.

     IN WITNESS WHEREOF the Maker has hereunto set its hand and seal the day and year first
aforementioned.

     IN WITNESS WHEREOF, the undersigned has caused this promissory note to be duly executed as of
the date first written below.

	 	 	 	 	 
	Dated: March 21, 2007 	ODIMO INCORPORATED,

a Delaware corporation

 	 
	 	By:  	/s/ Amerisa Kornblum
 	 
	 	 	Name:  	Amerisa Kornblum 	 
	 	 	Title:  	President 	 
	 

3Ex-10.(y)

 

EXHIBIT (10)(y)

THIRD AMENDMENT TO

J. ALEXANDER’S CORPORATION

EMPLOYEE STOCK OWNERSHIP PLAN

(as amended and restated as of January 1, 1997)

     WHEREAS, effective as of January 1, 1992, Volunteer Capital Corporation (which subsequently
changed its name to J. Alexander’s Corporation), a Tennessee corporation (the “Company”),
established the Volunteer Capital Corporation Employee Stock Ownership Plan (the “Plan”) to enable
its eligible employees to share in the growth and prosperity of the Company; and

     WHEREAS, the name of the Plan was subsequently changed to be J. Alexander’s Corporation
Employee Stock Ownership Plan; and

     WHEREAS, the Company restated the Plan, effective January 1, 1997 (the “1997 Restatement”),
and has amended the 1997 Restatement twice to make changes required as a result of Federal tax
legislation; and

     WHEREAS, the Company desires to amend the 1997 Restatement again (i) to lower the mandatory
cash-out limit from $5,000 to $1,000 and (ii) to update the Plan’s claims procedures in accordance
with regulations promulgated by the U.S. Department of Labor.

     NOW, THEREFORE, in consideration of the premises, effective as of January 1, 2006 (except for
such other dates as may be noted for certain provisions), the Company hereby amends the 1997
Restatement of the Plan in the following respects:

     1. Effective for distributions on or after March 28, 2005, the first paragraph of Section
4.3(b) is amended to provide as follows:

     (b) After termination of employment with Employer and with all Affiliated Companies
(other than for disability, normal retirement, early retirement, delayed retirement, or
death), but no later than the end of the Plan Year following the Plan Year in which such
termination occurs, the Participant shall be entitled to receive a “cash out” of such
Participant’s “vested benefit” as determined pursuant to Section 6.8 provided that corporate
officers of the Company may receive the cash out referred to in this Section 4.3(b) only if
such “vested benefit” is not greater than $10,000. Distribution to a corporate officer of
the Company of a vested benefit greater than $10,000 shall occur at the time provided in the
last paragraph of this Section 4.3(b). Such cash out of the vested benefit shall not be
made in the absence of written consent thereto by the Participant if the vested benefit (as
determined pursuant to Section 6.8) is greater than $1,000. If the vested benefit is not
greater than $1,000, the Participant shall receive a mandatory distribution of the vested
benefit in a lump sum, regardless of whether the Participant consents to such distribution,
during the Plan Year following the Plan Year in which termination of employment occurs. For
the sole purpose of determining whether the

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vested benefit is not greater than $1,000 or $10,000, as the case may be, Company Stock
in the Participant’s Company Stock Sub-Account shall be valued at its market value on the
first trading date of the Plan Year during which the distribution is scheduled to occur. A
Participant having a vested benefit of zero shall be deemed to have been cashed out
hereunder on the date of his termination of employment. Upon such a deemed payment, the
Participant’s nonvested Account balance shall become a Forfeiture upon the date of the cash
out. Such Forfeiture shall then be allocated to the Accounts of other Participants as
provided in Section 5.2.

     2. Effective for distributions on or after March 28, 2005, Section 6.1(a) is amended to
provide as follows:

     (a) Retirement. Distribution shall occur no later than the end of the Plan
Year following the Plan Year in which a Participant retires on or after his Early Retirement
Date (subject to the right of the Participant as provided in Section 6.1(f) to delay the
distribution until his Normal Retirement Date if the value of the vested benefit is greater
than $1,000). If a Participant retires on or after his Normal Retirement Date, distribution
shall occur no later than the end of the 60-day period after the close of the Plan Year in
which the Participant retired regardless of whether the Participant consents to the timing
of the distribution.

     3. Effective for distributions on or after March 28, 2005, Section 6.1(b) is amended to
provide as follows:

     (b) Death or Disability. Distribution shall occur no later than the end of the
Plan Year following the close of the Plan Year in which occurs a Participant’s Disability
Benefit Date (subject to the consent requirements of Section 6.1(f)), and distribution shall
occur no later than the end of the Plan Year following the close of the Plan Year in which a
Participant terminates employment with the Employer (or a Former Participant’s employment
with an Affiliated Company) by reason of his death (regardless of whether the Beneficiary
consents to the timing of such distribution). If the Participant dies before the date
distributions begin, distribution of the Participant’s Account balance must be completed by
December 31 of the calendar year containing the fifth (5th) anniversary of the
Participant’s death.

     4. Effective for distributions on or after March 28, 2005, Section 6.1(c) is amended to
provide as follows

                  (c) Other Termination. If the Participant’s employment with Employer and with all
Affiliated Companies is terminated other than for disability, normal retirement, early retirement,
delayed retirement or death, distribution shall occur at the time provided in Section 4.3(b) for a
“cash out” of such Participant’s benefits, subject to the right of the Participant (as provided in
Sections 4.3(b) and 6.1(f)) to delay the distribution until his Normal Retirement Date if the
present value of his vested benefit is greater than $1,000.

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     5. Effective for distributions on or after March 28, 2005, Section 6.1(f) is amended to
provide as follows:

     (f) Option to Delay. Except for a distribution on account of a Participant’s
death, no distribution whose value exceeds $1,000 shall be made prior to the Participant’s
Normal Retirement Date without the written consent of the Participant.

     3. Effective for distributions on or after March 28, 2005, the last paragraph of Section 6.1
is amended to provide as follows:

     The Plan shall give written notice to a Participant or Beneficiary, eligible for a
distribution of benefits pursuant to this Section 6.1. Such notice shall be given to an
eligible Participant or Beneficiary no less than 30 days but no more than 90 days prior to
the proposed date of distribution. Distribution of such benefits in excess of $1,000 during
this period shall comply with the written consent requirement of Section 6.1(f). However,
if the distribution is one to which Sections 401(a)(11) and 417 of the Code do not apply,
such distribution may commence less than 30 days after such notice provided that the
Committee clearly informs the Participant or Beneficiary that he has a right to a period of
at least 30 days after receiving such notice to consider the decision of whether or not to
elect a distribution and that the Participant or Beneficiary, after receiving such notice,
affirmatively elects a distribution.

     4. Section 8.3 is amended to provide as follows:

     8.3 Claims and Review Procedures. The Committee shall establish reasonable
procedures concerning the filing of claims for benefits hereunder, and shall administer such
procedures uniformly. If a claim is wholly or partially denied, the Committee shall furnish
the claimant, within a reasonable period of time, but not later than 90 days after receipt
of the claim by the Committee, a notice of such denial (unless the Committee determines that
special circumstances require an extension of time for processing the claim), setting forth
at least the following information in language calculated to be understood by the claimant:

	 	(a)	 	the specific reason or reasons for the denial;
	 
	 	(b)	 	specific reference to pertinent Plan provisions on which the
denial is based;
	 
	 	(c)	 	a description of any additional material or information
necessary for the claimant to perfect the claim and an explanation of why such
material or information is necessary; and
	 
	 	(d)	 	an explanation of the claims review procedure in the Plan,
including the applicable time limits and the Participant’s right to bring a
civil action under ERISA.

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     If special circumstances require an extension of time for processing the initial claim,
a written notice of the extension, which provides the reason for the extension and the date
by which a decision is expected to be rendered, shall be furnished to the Participant before
the end of the initial 90 days. In no event shall such extension exceed a period of 90 days
after the end of the initial period.

     In the event a claim for benefits is denied, or if the Participant has had no response
to such claim within 90 days of its submission (subject to extension as provided above), in
which case the claim for benefits shall be deemed to have been denied, the Participant or
his duly authorized representative, may request in writing to the Committee a review of such
adverse benefit determination. Such written request must be made not more than 60 days
following the receipt of written notice of the adverse benefit decision (or 60 days from the
date such claim is deemed to be denied). In pursuing such appeal, the Participant or his
duly authorized representative:

	 	(a)	 	shall be permitted to submit written comments, records or other
information relating to the claim; and
	 
	 	(b)	 	shall be provided, upon request and free of charge, reasonable
access to, and copies of, all documents, records and other information relevant
to the claim (i.e., relied upon in making the benefit determination, or
submitted, considered or generated in the course of making the benefit
determination).

     The review on appeal of the initial adverse benefit decision shall be conducted by the
Committee. The review shall take into account all information submitted by the Participant
relating to the claim, regardless of whether such information was submitted or considered in
the initial decision. The decision on review shall be made within a reasonable period of
time, but not later than 60 days following receipt of the request for review (subject to
extension for an additional period of 60 days if required by special circumstances). If an
extension of time is required due to special circumstances, the Committee shall notify the
Participant in writing, prior to the expiration of the time limit specified in the preceding
sentence, of the extension, the special circumstances requiring the extension and the date
by which the Committee expects to make the benefit decision. In no event shall such an
extension exceed a period of 60 days after the end of the initial period. If the benefit
decision or review is not furnished to the Participant within the time limit specified, the
claim shall be deemed denied on review.

     The decision on review shall be made in writing, shall be written in a manner
calculated to be understood by the claimant, and shall include the following:

	 	(a)	 	the specific reason or reasons for the denial;

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	 	(b)	 	specific reference to the pertinent Plan provisions on which
the denial was based;
	 
	 	(c)	 	a statement that the Participant is entitled to receive, upon
request and free of charge, reasonable access to and copies of all materials
and required information relevant to the claim; and
	 
	 	(d)	 	a statement of the Participant’s right to bring an action under
ERISA.

     Any decision by the Committee pursuant to the claims procedure described in this
Section 8.3 shall be conclusive and binding on all persons and shall be subject to judicial
review only when it is shown by clear and convincing evidence that the Committee acted in an
arbitrary and capricious manner.

     IN WITNESS WHEREOF, J. Alexander’s Corporation has caused this Third Amendment to the 1997
Restatement of the Plan to be executed this 26th day of April, 2006, effective as of January 1,
2006 (except for such other dates as may be noted herein) by its duly authorized officers.

	 	 	 	 	 	 	 	 	 
	 	 	J. ALEXANDER’S CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	/s/ J. Michael Moore	 	 
	 	 	 	 	 	 
	 	 	Title: 	Vice President of Human Resources	 	 
	 

	 	 	 	 	 

ATTEST:

 

/s/ Ruth Ann
Tidwell

5

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