Document:

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                                                                   EXHIBIT 10.14

                                PROGRAM AGREEMENT

      THIS PROGRAM AGREEMENT ("AGREEMENT") is dated as of November 11, 2004
("COMMENCEMENT DATE") and entered into by and between GE CAPITAL FRANCHISE
FINANCE CORPORATION, a Delaware corporation, with offices at 17207 N. Perimeter
Drive, Scottsdale, Arizona 85255 ("GE"), and O'CHARLEY'S INC., a Tennessee
corporation, with offices at 3038 Sidco Drive, Nashville, Tennessee 37204
("FRANCHISOR").

                                   WITNESSETH:

      WHEREAS, Franchisor will be engaging in the business of franchising the
right to operate restaurants under the O'Charley's operating system
(individually, a "RESTAURANT" and collectively, the "RESTAURANTS") to
franchisees located within the continental United States of America
("FRANCHISEES"); and

      WHEREAS, GE and Franchisor desire to create a financing program for
qualified Franchisees to fund (i) the acquisition, construction and installation
of the land, building and equipment for new Restaurants and (ii) the acquisition
of existing Restaurants from Franchisor; and

      WHEREAS, GE is engaged in the business of providing construction loans
combined with permanent loans, and permanent loans (without construction loans)
for newly constructed restaurants or existing restaurants.

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, GE and Franchisor, intending to be
legally bound, hereby agree as follows:

1.    The Program.

      (a)   Pursuant to the terms and conditions set forth in this Agreement, GE
shall provide a financing program ("PROGRAM") in a maximum aggregate amount to
be advanced of $75,000,000 to certain qualified Franchisees under which, among
other things, GE will finance (i) the acquisition, construction and installation
of the land, building and equipment for new Restaurants, or (ii) the acquisition
from Franchisor of the land, building and equipment for existing Restaurants
(collectively, "ELIGIBLE TRANSACTIONS"). GE may, in its sole judgment and
discretion, finance transactions with Franchisees which financings shall not be
a part of the Program and shall not be subject to the terms and provisions of
this Agreement.

      (b)   Subject to the terms and conditions set forth herein and on the
schedule attached hereto as Exhibit A and incorporated herein by this reference,
as such Exhibits may be amended from time to time by GE and Franchisor, GE shall
make available financing (each a "PROGRAM FINANCING") to qualified Franchisees
with respect to each Restaurant which is the subject of an Eligible Transaction
in an amount equal to the lesser of (i) eighty percent (80%) of the total
acquisition and construction costs relating to such Restaurant, or (ii)
$2,500,000. Each Program Financing may consist of real estate loans and/or
equipment loans and shall have the business terms described on Exhibit A
attached hereto.

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2.    Approval Process.

      (a)   GE will require the following with respect to applications for each
Program Financing (any of which may be waived by GE in its sole discretion):

            (i) a fully completed Loan Application ("APPLICATION") in
      substantially the same form and substance as set forth in Exhibit B
      attached hereto, which Application shall set forth the location of the
      Restaurant(s) for which the Program Financing relates, and an election for
      the loan to accrue interest at either the fixed at closing rate or the
      variable rate with option to fix;

            (ii) with respect to any Eligible Transaction consisting of an
      acquisition of a Restaurant or the real estate relating thereto, a copy of
      the Purchase and Sale Agreement and Letter of Intent, together with a
      detailed breakdown of the acquisition costs;

            (iii) for each Restaurant, a three (3) year financial projection;

            (iv) for new Franchisees, an owner's background summary or resume;

            (v) for existing Franchisees, financial statements and tax returns
      for the last two (2) fiscal years preceding the submission of the
      Application for the Franchisee and for all affiliated restaurant and
      franchise companies;

            (vi) for each Restaurant for which a Program Financing is sought as
      well as any and all other entities or franchises either partially or fully
      owned by the applying Franchisee, (x) monthly financial statements for the
      twelve (12) months preceding the submission of the Application and (y) a
      summary of all of the Franchisee's debt and lease obligations;

            (vii) personal financial statements and the last two (2) years tax
      returns for each of the principals of the Franchisee who will be
      guarantors of the corresponding Program Financing; and

            (viii) such additional information as GE may reasonably request.

      The foregoing items (i) through (viii) shall hereinafter be referred to
collectively as the "APPLICATION PACKAGE".

      (b)   Upon submission of a completed Application Package to GE by a
Franchisee, GE shall review the creditworthiness of each Franchisee and, if such
Franchisee satisfies GE's criteria for Program Financing, in GE's sole
discretion, GE shall forward the Application Package, GE's financial analysis
and a "Program Agreement Addendum," the form of which is attached hereto as
Exhibit C, to Franchisor for review by Franchisor. If Franchisor, in its sole
discretion, then approves the Franchisee for Program Financing, Franchisor
shall, within ten (10) business days after receipt by Franchisor of the
Application Package from GE, forward to GE an executed copy of the Program
Agreement Addendum. GE shall then provide Program Financing to such Franchisee
upon the terms, provisions and conditions contained herein and, to the extent
such terms, provisions and conditions are not set forth herein, as GE determines
in GE's ordinary course of business. If Franchisor disapproves of a proposed
Program Financing, GE shall be under no obligation to Franchisor or to the
prospective Franchisee or any related Franchisee to

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further consider the proposed Program Financing or any additional proposed
Program Financing by such Franchisee or any related Franchisee.

      (c)   GE will use its best efforts to complete its review of each
completed Application Package within ten (10) business days after receipt
thereof at GE's offices in Scottsdale, Arizona (Attn: Mike Record) or such other
processing locations as GE designates. If GE rejects an Application Package, GE
shall notify Franchisor within five (5) business days thereafter, and GE shall
review with the Franchisee the reason(s) it did not qualify for the Program
Financing. If GE rejects a proposed Program Financing, GE shall be under no
obligation to Franchisor or to the prospective Franchisee or any related
Franchisee to further consider the proposed Program Financing or any additional
proposed Program Financing by such Franchisee or any related Franchisee. GE, in
its sole discretion, may limit the maximum amount which may be advanced to a
particular Franchisee and to such Franchisee's affiliates to $7,500,000 in total
borrowings.

3.    Program Financing Processing. GE will use reasonable efforts to fund the
Program Financing within ten (10) business days after receipt by GE of all
executed "FINANCING DOCUMENTS". The term "FINANCING DOCUMENTS" shall include the
following:

      (a)   a promissory note in the amount of the Program Financing executed by
            the Franchisee;

      (b)   a loan agreement executed by the Franchisee with respect to any real
            estate loan which is the subject of the Program Financing;

      (c)   a first priority deed of trust or mortgage executed by the
            Franchisee in the fee simple or leasehold interest in any real
            property being financed ("MORTGAGE");

      (d)   a loan and security agreement executed by the Franchisee covering
            all furniture, fixtures, equipment and leasehold improvements which
            are located at or used in connection with the Restaurant which is
            the subject of the Program Financing and granting GE a first
            priority security interest with respect thereto ("SECURITY
            AGREEMENT");

      (e)   an environmental indemnity agreement executed by the Franchisee in
            favor of GE with respect to any real property being financed;

      (f)   a disbursement agreement executed by the Franchisee and the
            applicable title company with respect to the disbursement of the
            proceeds the real estate loan to fund construction costs;

      (g)   Uniform Commercial Code financing statements and such other related
            documents, executed by the Franchisee if applicable, as GE may deem
            necessary or desirable to perfect its security interest in the
            property which is the subject of the Security Agreement and
            Mortgage, each in form and substance satisfactory to GE ("UCC
            FINANCING STATEMENTS");

      (h)   personal guaranties executed by all individuals named as the
            Franchisee, or all principals of any entities named as the
            Franchisee (other than Franchisor), of all obligations owing to GE
            under the Program Financing ("GUARANTIES"); provided, however, store
            level managers owning less than 10% of the ownership interests in
            the Franchisee shall not be required to personally guarantee a
            Program

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            Financing if GE determines that the Franchisee and/or any guarantors
            of the Program Financing (other than Franchisor) have sufficient
            restaurant operating experience;

      (i)   evidence reasonably acceptable to GE that GE has been named as an
            additional insured on all insurance policies maintained by the
            Franchisee or Franchisor, if applicable, on or covering any
            Restaurant for which the Program Financing is made;

      (j)   a landlord's waiver or estoppel certificate if necessary, in form
            and substance satisfactory to GE, executed by the landlord of each
            Restaurant for which the Program Financing is made ("LANDLORD'S
            WAIVER");

      (k)   satisfactory proof that title to the related land or property on
            which the Restaurant is located is owned by the Franchisee, or, if
            the property on which the Restaurant is to be located is leased, a
            copy of the executed lease between the landlord and Franchisee
            (which lease shall be in form and substance acceptable to GE and its
            outside counsel, including having a lease term equal to or exceeding
            the loan term);

      (l)   satisfactory proof that Franchisor has entered or will be entering
            into a franchise agreement with Franchisee with respect to the
            Restaurant, which franchise agreement will have a term of at least
            15 years with at least one option to renew;

      (m)   a Program Agreement Addendum in the form attached hereto as Exhibit
            C, executed by Franchisor acknowledging the Restaurant's inclusion
            into the Program;

      (n)   search results of all applicable recording offices, and releases or
            evidence acceptable to GE that appropriate releases will be
            provided, indicating that upon completion of the applicable Program
            Financing and filing of the UCC Financing Statements, GE will obtain
            a first priority security interest in all collateral described in
            the Security Agreement and Mortgage; and

      (o)   such additional information as GE shall reasonably request.

4.    Limited Guaranty.

      (a)   Defined terms:

            "DEBT SERVICE PAYMENTS" means all debt service payments due to GE
      with respect to each Defaulted Program Financing prior to the payment by
      Franchisor of the Ultimate Net Losses with respect to such Defaulted
      Program Financing.

            "DEFAULTED PROGRAM FINANCING" shall have the meaning given such term
      in Section 5 below.

            "NET REPURCHASE AMOUNT" shall mean, relative to a single Defaulted
      Program Financing, the sum of (x) the outstanding principal sum owed to GE
      under such Defaulted Program Financing ("Principal"), (y) the accrued and
      unpaid interest owed to

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      GE under the Defaulted Program Financing (including any interest accruing
      at a default rate of interest), and (z) all reasonable third-party costs
      and expenses incurred by GE as a result of such Defaulted Program
      Financing, including without limitation management expenses and attorneys'
      fees and expenses. To the extent that Franchisor makes Debt Service
      Payments to GE with respect to a single Defaulted Program Financing as
      contemplated and required by Sections 4(b) and 5(c), the "Net Repurchase
      Amount" shall not include the principal and interest paid by Franchisor.

            "ULTIMATE NET LOSS" shall mean, relative to a single Defaulted
      Program Financing, the Net Repurchase Amount in connection with such
      Defaulted Program Financing, minus any proceeds received by GE as a result
      of collection actions with respect to the Defaulted Program Financing,
      including any secured creditor sale and/or remarketing of the collateral
      for the Defaulted Program Financing and any net proceeds received by GE
      from any guarantor of the Defaulted Program Financing (other than
      Franchisor), which proceeds reduce the total amount due to GE in
      connection with such Defaulted Program Financing.

      (b)   As consideration to GE for making Program Financings available to
qualified Franchisees, but subject to the limitations set forth herein
(including, without limitation, those set forth in Section 5), Franchisor hereby
guaranties the payment to GE, within ten (10) business days after demand by GE,
of (i) all Net Repurchase Amounts if the then sum of the original funded
principal amount of all Program Financings funded by GE is less than
$10,000,000.00, (ii) all Ultimate Net Losses suffered by GE in connection with
all Program Financings for which Franchisor did not pay the applicable Net
Repurchase Amount, and (iii) all Debt Service Payments. Notwithstanding anything
to the contrary contained in this Agreement, in no event shall Franchisor be
responsible for paying any amounts due with respect to loans from GE (or its
affiliates) to a Franchisee (or its affiliates) which are not part of the
Program, notwithstanding that such loans may be cross-collateralized or
cross-defaulted with loans which are part of the Program.

      (c)   Notwithstanding anything to the contrary set forth herein,
Franchisor's aggregate liability under this Agreement for Ultimate Net Losses
and Debt Service Payments shall be limited to an amount equal to the lesser of
the product of twenty percent (20%) multiplied by the aggregate funded principal
amount of all Program Financings funded by GE and $15,000,000.00 ("MAXIMUM
LIABILITY"); provided however, the Maximum Liability shall be reduced by an
amount equal to the sum of (i) twenty percent (20%) of the funded principal
amount of any Program Financing for which Franchisor has paid the applicable Net
Repurchase Amount after the occurrence of a Default but before demand for
payment of Debt Service Payments by GE or establishment by GE of an Ultimate Net
Loss, (ii) the aggregate amount of Debt Service Payments paid by Franchisor
pursuant to Section 5 below, (iii) the aggregate amount of Ultimate Net Losses
on all Program Financings paid by Franchisor pursuant to Section 5 below, and
(iv) twenty percent (20%) of the funded principal amount of any Program
Financing for which Franchisor no longer has any liability under this Agreement
as contemplated by Section 4(d) below. The Maximum Liability shall not reduce
with the amortization of any Program Financing. Furthermore, Franchisor's
obligations under this Agreement to pay Net Repurchase Amounts shall not be
subject to the Maximum Liability cap.

      (d)   Notwithstanding anything to the contrary set forth herein, in the
event that all of the following conditions are satisfied with respect to a
particular Franchisee and provided no default by Franchisor shall have occurred
and be continuing under this Agreement as of the

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Burn-Off Date (as hereinafter defined) corresponding to such Franchisee,
Franchisor shall no longer have any liability under this Agreement with respect
to any Program Financing provided to such Franchisee if the Burn-Off Date
corresponding to such Franchisee shall have passed:

            (i)   Prior to the Burn-Off Date corresponding to such Franchisee,
      such Franchisee shall not have been in default with respect to any of its
      obligations to GE and no debt service payments shall have been made by
      Franchisor to GE with respect to such Franchisee (provided that the
      foregoing shall not include debt service payments made by such Franchisee
      from the proceeds of any working capital loan from Franchisor permitted
      under the Financing Documents); and

            (ii)  Prior to the Burn-Off Date corresponding to such Franchisee,
      such Franchisee shall have been in full compliance with all fixed charge
      coverage ratio and effective funded debt to EBITDAR covenants set forth in
      its Financing Documents.

      As used herein, the term "Burn-Off Date" shall mean:

            (i)   If the particular Franchisee has one Restaurant which is
      subject to Program Financing, the third anniversary of the opening of such
      Restaurant;

            (ii)  If the particular Franchisee has two Restaurants which are
      subject to Program Financing, the later to occur of (x) the second
      anniversary of the opening of such Franchisee's second Restaurant, and (y)
      the third anniversary of the opening of such Franchisee's first
      Restaurant; and

            (iii) If the Franchisee has three Restaurants which are subject to
      Program Financing, the later to occur of (x) the eighteen month
      anniversary of the opening of such Franchisee's third Restaurant, and (y)
      the third anniversary of the opening of such Franchisee's first
      Restaurant.

      (e)   The provisions of this Section 4 shall survive the expiration or
earlier termination of this Agreement.

5.    Procedure with Respect to Defaulted Program Financings.

      (a)   Defined terms:

            "DEFAULT" shall mean the occurrence of a default by a Franchisee
      under, or a failure by the Franchisee to comply with, any of the terms and
      provisions of the Franchisee's Financing Documents; provided, however,
      that a default by a Franchisee under such Franchisee's Financing Documents
      which results solely because of a default with respect to documents or
      agreements between such Franchisee (or its affiliates) and GE (or its
      affiliates) relating to a loan which is not part of the Program, shall not
      be a "Default" for purposes of this Agreement;

            "DEFAULTED PROGRAM FINANCING" shall mean any Program Financing for
      which a Default has occurred and either (x) such default remains uncured
      beyond the expiration of any Standstill Period or (y) Franchisor has
      waived its right to cure such default and have consented in writing to
      acceleration of such Program Financing or the taking by GE of other
      collection actions under such Program Financing; and

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            "STANDSTILL PERIOD" shall mean, as to a particular Program
      Financing, a thirty (30) day period commencing upon the giving of notice
      to Franchisor by GE that a Default has occurred under the Financing
      Documents for such Program Financing, provided that there shall be no
      Standstill Period if a Default has occurred under such Program Financing
      during the six (6) month period prior to the occurrence of such Default.

      (b)   Upon the occurrence of a Default, GE shall notify Franchisor of such
Default and a Standstill Period shall commence unless another Default by the
applicable Franchisee has occurred during the prior six (6) month period. GE
will not accelerate or take any other collection action against a defaulting
Franchisee as a result of a Default prior to the expiration of any applicable
Standstill Period unless Franchisor in writing consents to the taking of such
action. Franchisor shall have the right, but not the obligation, to cure the
Default on the Franchisee's behalf prior to the expiration of the Standstill
Period (without reduction of Franchisor's liability hereunder) or to repurchase
from GE the Program Financing for which the Default has occurred for an amount
which would be equal to the Net Repurchase Amount for such Program Financing.

      (c)   In the event that, prior to the expiration of the applicable
Standstill Period, Franchisor does not cure any Default or repurchase from GE
the Program Financing for which the Default has occurred, such Program Financing
shall automatically and without further action constitute a Defaulted Program
Financing, and GE shall have the right, in its sole discretion, to: (i) demand
payment by Franchisor to GE of the Net Repurchase Amount due with respect to
such Defaulted Program Financing if the then sum of the original funded
principal amount of all Program Financings funded by GE is less than
$10,000,000; (ii) demand payment by Franchisor to GE of the Debt Service
Payments due with respect to such Defaulted Program Financing (subject to
Franchisor's outstanding contingent liability under the Program); (iii) commence
collection actions against the defaulting Franchisee in order to establish an
Ultimate Net Loss; or (iv) enter into alternative arrangements with the
defaulting Franchisee, which may be in the form of interest only payments,
extension of payment dates, or other payment modifications determined by GE in
its sole discretion. No delay by GE in making an election under the preceding
sentence shall constitute a waiver of its rights hereunder. In the event that GE
has the right to demand payment of the Net Repurchase Amount due with respect to
a Defaulted Program Financing and does so demand such payment, Franchisor shall
pay such Net Repurchase Amount to GE, in immediately available funds, within ten
(10) business days after demand. In the event that GE demands payment of the
Debt Service Payments due with respect to a Defaulted Program Financing, (i)
Franchisor shall pay all such outstanding Debt Service Payments to GE, in
immediately available funds, within ten (10) business days after demand, and
(ii) thereafter on a going forward basis until Franchisor has paid the Ultimate
Net Loss with respect to such Defaulted Program Financing, Franchisor shall pay
such Debt Service Payments on a monthly basis (to the extent they have not been
paid by the applicable Franchisee) in immediately available funds, within ten
(10) business days after the date when due under the applicable Financing
Documents without GE being required to first make demand therefor (provided that
GE shall notify Franchisor to the extent such Debt Service Payments have been
made by the Franchisee and shall refund such Debt Service Payments to Franchisor
to the extent GE has received duplicate payments from Franchisee and
Franchisor). In the event that GE elects either to establish an Ultimate Net
Loss or to enter into alternative arrangements with the defaulting Franchisee,
Franchisor shall not be released from its obligations hereunder, and within ten
(10) business days after demand therefor by GE, Franchisor shall pay to GE the
Net Repurchase Amount (if otherwise required to do so under this Agreement), the
outstanding Debt Service Payments (and the going forward Debt Service Payments
as contemplated by the preceding sentence) or Ultimate Net Loss, as

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applicable, in connection with such Defaulted Program Financing. No Ultimate Net
Loss shall be established with respect to a Defaulted Program Financing for
which Franchisor has paid GE the Net Repurchase Amount.

      (d)   Upon establishment of an Ultimate Net Loss with respect to a
Defaulted Program Financing, GE shall notify Franchisor of the amount of such
Ultimate Net Loss, and Franchisor shall, within ten (10) business days after
such notice, pay such amount to GE in immediately available funds. In the event
that GE has been unable to establish an Ultimate Net Loss within eighteen (18)
months after the notice of Default with respect to a Defaulted Program Financing
and such inability is not the result of either a bankruptcy proceeding involving
the applicable Franchisor or an environmental condition affecting the
collateral, the Ultimate Net Loss for such Defaulted Program Financing shall be
equal to Zero Dollars ($0.00). To the extent that the Ultimate Net Loss
established with respect to a Defaulted Program Financing is less than the
amount of Debt Service Payments made by Franchisor with respect to such
Defaulted Program Financing (and not refunded to Franchisor as contemplated by
Section 5(c)), then GE shall refund the difference to Franchisor within ten (10)
business days after establishment of such Ultimate Net Loss.

      (e)   GE shall use its customary collection practices to collect amounts
due under Defaulted Program Financings, including any accelerated balance due
thereunder, to the same degree as if exercising remedies under defaulted loans
which are not part of the Program, including commencing legal proceedings,
accepting partial payments where appropriate, or extending or rewriting the
Program Financing, and, in each instant, consistent with good business judgment.

      (f)   Franchisor agrees to reasonably cooperate with GE in connection with
GE's collection efforts, including, without limitation (i) if Franchisor deems
it appropriate in its sole judgment, Franchisor shall have the right to assume
the operation of the Restaurant(s) of the defaulting Franchisee and the
defaulting Franchisee's obligations to GE, (ii) if Franchisor deems it
appropriate in its sole judgment, Franchisor may obtain a qualified replacement
franchisee acceptable to GE to assume the Defaulted Program Financing and pay
all arrears (notwithstanding any assumed Program Financing, Franchisor shall not
be relieved of its obligations to make any payments hereunder with respect to
such assumed Program Financing if a replacement Franchisee subsequently defaults
with respect to the Program Financing), and (iii) if any of the Restaurants are
acquired by GE from a defaulting Franchisee, whether by foreclosure or deed in
lieu of foreclosure, to assist GE in the remarketing of the Restaurants to the
next available Franchisee acceptable to GE and Franchisor.

      (g)   Upon the payment by Franchisor to GE of the full Net Repurchase
Amount under a Program Financing for which a Default has occurred, GE shall, if
requested by Franchisor, assign to Franchisor GE's interest in the Financing
Documents relating to such Program Financing. In addition to such assignment, GE
shall, with respect to any personalty involved in such assignment, deliver
assignments to Franchisor of any UCC financing statements in which GE is
identified as the secured party. If Franchisor elects to have a Defaulted
Program Financing for which it has paid the Net Repurchase Amount assigned to it
(whether at the time the Program Financing becomes a Defaulted Program Financing
or thereafter) and prior thereto, GE has commenced an action against the
Franchisee, so long as no claims have been asserted against GE in such action,
GE and Franchisor, as appropriate, shall amend the pleadings to substitute
Franchisor for GE and continue the action with counsel of Franchisor's choosing.

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Notwithstanding the change of counsel, if a claim has been made against GE in
such action, GE may continue to designate counsel to represent its interest in
such action at GE's sole expense.

6.    Program Administration. GE and Franchisor shall each designate at its
principal executive offices a "PROGRAM ADMINISTRATOR" and a "PROGRAM
RELATIONSHIP MANAGER" to administer and implement the Program. The primary
responsibilities of the Program Administrators shall be to assist in the timely
processing of Application Packages and to communicate with each other in order
to facilitate the resolution of underwriting and closing issues as the same may
arise. The primary responsibilities of the Program Relationship Managers shall
be to (i) facilitate the implementation of the Program in coordination with the
Program Administrators, (ii) develop marketing strategies to solicit indentified
Franchisees who are eligible for the Program, and (iii) to facilitate
communications between the parties regarding Program issues and the resolutions
thereof. The parties shall each provide the other with the name and telephone
number of the Program Administrator and the Program Coordinator. The Program
Coordinators and Program Relationship Managers shall be available to assist with
the administration and implementation of the Program.

7.    Independent Contractor Relationship. Neither Franchisor nor GE, nor any
officer, director, employee or other personnel of any of them, are agents of the
other. It is the intention of Franchisor and GE that the relationship of
Franchisor and GE to each other shall be that of an independent contractor.
Neither Franchisor nor GE nor any officer, director, employee or other person
associated with either of them shall use the name of the other party except in
connection with the Program or represent by his or her conduct or otherwise that
he or she is an agent or employee of the other party or authorized to speak for
or on behalf of the other party unless such action has previously been
authorized in writing by such party.

8.    Representations, Warranties and Covenants.

      (a) To induce GE to enter into this Agreement and provide financing to
Franchisees pursuant to the Program, Franchisor represents and warrants to, and
agrees and covenants with GE, knowing and intending that GE rely thereon, as
follows:

            (i) Franchisor is a corporation duly authorized, validly existing
and in good standing under and pursuant to the laws of the State of Tennessee.
Franchisor is duly qualified and authorized to conduct business and is in good
standing as a foreign corporation in all jurisdictions where such qualification
is necessary. Franchisor has all requisite power and authority to own its
properties, carry on its business as now being or as proposed to be conducted,
execute and deliver this Agreement and perform all its obligations under this
Agreement and under each document and instrument executed and delivered by it
pursuant hereto.

            (ii) Franchisor has the full corporate power, authority and legal
right to enter into, and has taken all corporate action necessary to authorize
the execution, delivery and performance of this Agreement and all other
documents and instruments otherwise required or contemplated hereunder and
thereunder and for the consummation of all transactions herein contemplated. The
execution of this Agreement and all such other documents and instruments and the
performance by Franchisor of its obligations hereunder and thereunder have been
duly authorized by all requisite corporate action on the part of Franchisor and
do not and will not (i) violate or conflict with any provision of the charter or
by-laws of Franchisor, (ii) conflict with, result in a breach of, constitute a
default of accelerate any payment pursuant, to the provisions of any instrument,
document or agreement to which Franchisor is a party or by which any of its

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properties are bound, or (iii) violate any law, rule or regulation applicable to
Franchisor or any order, writ, injunction or decree of any court, governmental
authority or arbitrator applicable to Franchisor.

            (iii) No authorization, approval or consent of, and no filing or
registration with, any court, governmental authority or third party is or will
be required in connection with the execution, delivery or performance of this
Agreement by Franchisor or the validity or enforceability hereof or any other
document or instrument required or contemplated hereby. There is no claim,
action, litigation, proceeding before any court, governmental body or agency
pending or, to the best of Franchisor's knowledge, threatened, against
Franchisor which would materially adversely affect Franchisor's obligations.

            (iv) This Agreement constitutes the legal, valid and binding
obligation of Franchisor, fully enforceable against Franchisor in accordance
with its terms.

            (v) Franchisor hereby covenants and agrees that, so long as there is
any outstanding Program Financing under this Agreement, Franchisor shall
immediately notify GE of the institution of any litigation that, if adversely
determined, could materially adversely affect Franchisor's obligations
hereunder.

      (b) To induce Franchisor to enter into this Agreement and to encourage its
Franchisees to obtain financing pursuant to the Program, GE represents and
warrants to, and agrees and covenants with Franchisor, knowing and intending
that Franchisor rely thereon, as follows:

            (i) GE is a corporation duly organized, validly existing and in good
standing under and pursuant to the laws of the State of Delaware. GE is duly
qualified and authorized to conduct business and is in good standing as a
foreign corporation in all jurisdictions where such qualification is necessary.
GE has all requisite power and authority to own its properties, carry on its
business as now being or as proposed to be conducted, execute and deliver this
Agreement and perform all its obligations under this Agreement and under each
document and instrument executed and delivered by it pursuant hereto.

            (ii) GE has the full corporate power, authority and legal right to
enter into, and has taken all corporate action necessary to authorize the
execution, delivery and performance of this Agreement and all other documents
and instruments otherwise required and contemplated hereunder and thereunder and
for the consummation of all transactions herein contemplated. The execution of
this Agreement and all such other documents and instruments and the performance
by GE of its obligations hereunder and thereunder have been duly authorized by
all requisite corporate action of the part of GE and do not and will not (i)
violate or conflict with any provision or the charter or by-laws of GE, (ii)
conflict with, result in the breach of, constitute a default or accelerate any
payment pursuant to the provisions of any instrument, document or agreement to
which GE is a party or by which any of its properties are bound or (iii) violate
any law, rule or regulation applicable to GE or any order, writ, injunction or
decree of any court, governmental authority or arbitrator applicable to GE.

            (iii) No authorization, approval or consent of, and no filing or
registration with, any court, governmental authority or third party is or will
be required in connection with the execution, delivery or performance of this
Agreement by GE or the validity or enforceability hereof or any other document
or instrument required or contemplated hereby. There is no claim, action,
litigation, proceeding before any court, governmental body or agency pending or,
to the

                                       10

<PAGE>

best of GE's knowledge, threatened, against GE which would materially adversely
affect GE's obligations.

            (iv) This Agreement constitutes the legal, valid and binding
obligation of GE, fully enforceable against GE in accordance with its terms.

9.    Notices of Franchisee Defaults. Franchisor hereby covenants and agrees
that Franchisor shall notify GE of a default under the franchise agreement
relating to any Restaurant in the Program within 30 days of such default;
provided that Franchisor shall not be obligated to notify GE of any defaults
that have been cured before such 30 day period expires or any non-monetary
defaults of which Franchisor does not have actual knowledge.

10.   Damages Limitation. In no event shall GE or Franchisor be liable to the
other under this Agreement or any other documents executed in connection
herewith, or otherwise, for any lost profits or any special, indirect,
incidental, punitive, exemplary or consequential damages for any reason
whatsoever. Except as provided above, nothing contained herein is intended to
limit any party's right to recover damages from the other for breach of this
Agreement to any extent permitted by applicable law.

11.   Term of Agreement; Termination. This Agreement shall terminate on May 31,
2006, unless GE and Franchisor mutually agree to extend such date (such date, as
may be extended, being hereinafter referred to as the "Outside Date").
Notwithstanding the foregoing, (a) each of the parties shall have the right to
terminate this Agreement prior to the Outside Date upon 90 days prior written
notice to the other, and (b) GE shall have the right to terminate this Agreement
prior to the Outside Date upon 30 days prior written notice to Franchisor if
there has been a material adverse change in the financial condition of
Franchisor from the financial condition of Franchisor on the Commencement Date.
Franchisor understands and acknowledges that any Application Packages received
by GE on or after the date of termination shall not be subject to this Agreement
and shall be subject to GE's standard underwriting guidelines and business terms
as GE determines in GE's sole discretion. Notwithstanding the termination of
this Agreement, the applicable provisions of this Agreement shall remain in full
force and effect with respect to (x) any outstanding Program Financing, (y)
Franchisor's obligation to make payments to, or purchases from, GE pursuant to
the terms of this Agreement, and (z) any obligations of GE or Franchisor with
respect any Program Financing entered into with a Franchisee prior to the
termination of this Agreement.

12.   Notices.

      Any notice required under this Agreement shall be deemed sufficient if
sent by (a) the United States mail, registered or certified mail, postage
prepaid, return receipt requested, addressed to the addresses set forth at the
beginning of this Agreement or to such other address as directed by the parties
during the term of this Agreement, or (b) personal delivery, or (c) nationally
recognized overnight courier. Any such notice shall be deemed to have been given
if sent by mail, on the third business day after the day duly deposited in the
mail, or in the case of personal delivery, on the day actually received or in
the case of overnight courier, on the day after duly delivered to the courier.
All notices shall be sent to the addresses and to the attention of the person
set forth below, or to such other address as either party may notify to the
other in writing from time to time:

                                       11

<PAGE>

      As to GE:         GE CAPITAL FRANCHISE FINANCE CORPORATION
                        17207 N. Perimeter Drive
                        Scottsdale, AZ 85255
                        Attention: Mike Record

      As to Franchisor: O'CHARLEY'S INC.
                        3038 Sidco Drive
                        Nashville, TN 37204
                        Attention: Zeb Hastings

13.   Assignment. Neither party may assign or transfer, or attempt to assign or
transfer, all or any part of this Agreement except in connection with the sale
of all or a substantial part of the assets of the assigning party, in which sale
the assignee agrees to assume all of the obligations of the assignor, provided
that, notwithstanding any such arrangement and assignment and assumption, the
party assigning shall continue to be liable to the same extent as if such
assignment had not occurred. Notwithstanding the foregoing, GE may assign its
rights under the Financing Documents and grant a security interest therein or in
the Restaurants and/or the improvements in connection with any Program
Financing. This Agreement is binding upon and shall inure to the benefit of the
parties and their respective successors and permitted assigns.

14.   Entire Agreement. This Agreement, including the Exhibits hereto,
constitutes the entire agreement of the parties with respect to the subject
matter hereof and supersedes all prior agreements and understandings between the
parties with respect to such matter. Neither GE nor Franchisor shall be bound
by, nor shall they be deemed to have made, any representation, warranty or
covenant, except as contained herein. Any amendment or modification of this
Agreement must be in writing and signed by both parties hereto.

15.   Governing Law and Waiver of Trial by Jury. This Agreement shall be deemed
fully executed and performed in the State of Arizona and shall be governed by
and construed and enforced in accordance with the laws of the State of Arizona,
without giving effect to the conflicts of law principles thereof. TO THE EXTENT
PERMITTED BY LAW, THE PARTIES WAIVE TRIAL BY JURY IN ANY ACTION HEREUNDER.

16.   Broker or Finder. GE and Franchisor represent to each other that no person
or persons assisted in or brought about the negotiation and execution of this
Agreement in the capacity of broker, agent or finder and that no broker, agent
or finder has acted on its behalf in connection with the transactions
contemplated hereunder.

17.   Confidentiality. During the existence of this Agreement and for a period
of three years thereafter, GE and Franchisor shall treat as confidential the
terms, conditions and provisions of this Agreement, the name of each Franchisee
and the financial information of each Franchisee whether or not GE enters into a
Program Financing with such Franchisee, the financial terms of the Program
Financing, and such other information as designated by GE or Franchisor as
confidential, and GE and Franchisor shall not use such information except in
connection with the purposes of this Agreement.

18.   No Third Party Beneficiaries. This Agreement is entered into solely for
the benefit of GE and Franchisor and their respective successors and permitted
assigns and no other person, firm,

                                       12

<PAGE>

entity or corporation (including, without limitation, any Franchisee) shall have
any right, benefit or interest under or because of the existence of this
Agreement.

19.   Indemnification. Each of Franchisor and GE agrees to indemnify and hold
harmless the other and their respective affiliates, parent, subsidiaries,
employees, officers, directors, agents, representatives, attorneys and
consultants and their respective successors and assigns (each an "Idemnified
Party") from and against any and all claims, losses, liabilities, demands and
expenses whatsoever incurred by an Indemnified Party (including, without
limitation, reasonable attorney's fees and costs) arising out of, or as a result
of (a) the breach of any representation, warranty or covenant made by Franchisor
or GE, as the case may be, hereunder, (b) any material misrepresentation and/or
false or misleading statement made by Franchisor or GE, or their respective
agents or employees, as the case may be, to Franchisees with respect to the
Program or any Program Financing or in connection with obtaining and delivering
Application Packages or the execution of any Financing Document, or (c) the
violation by Franchisor or GE, as the case may be, of any federal or state law,
rule or regulation, including, in the case of Franchisor, any law, rule or
regulation regarding franchising which affects GE's ability to enforce the
Financing Documents. The indemnity obligations under this Agreement or any
document executed in connection herewith shall survive the termination of this
Agreement. In addition, payment of any loss under this Section shall not relieve
Franchisor of its other obligations under this Agreement, including, without
limitation, pursuant to Section 5 hereof.

20.   Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which taken together shall
constitute one and the same instrument.

                                       13

<PAGE>

      IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed and delivered on the day and year first above written.

WINTESS/ATTEST:                     GE CAPITAL FRANCHISE FINANCE
                                    CORPORATION, a Delaware corporation

_____________________               By: /s/ Mike Record                 (SEAL)
                                        --------------------------------
                                        Name: Mike Record
                                              --------------------------
                                        Title: Sr. Vice President
                                               -------------------------

                                    O'CHARLEY'S INC., a Tennessee corporation

_____________________               By: /s/ Gregory L. Burns            (SEAL)
                                        --------------------------------
                                        Name: Gregory L. Burns
                                              --------------------------
                                        Title: Chairman and Chief
                                               Executive Officer
                                               -------------------------
<PAGE>

                                    EXHIBIT A

                    GE CAPITAL RESTAURANT PROGRAM TERM SHEET

We are pleased to submit the following financing proposal. THIS PROPOSAL IS
SUBJECT TO REVIEW AND APPROVAL BY GE CAPITAL FRANCHISE FINANCE CORPORATION ("GE
CAPITAL"). FINAL TERMS AND CONDITIONS WILL BE SUBJECT TO MUTUALLY SATISFACTORY
DOCUMENTATION.

GE Capital may provide qualified franchisees of O'Charley's Inc. ("OCI") with a
Financing Program ("Program") on the following terms and conditions:

LOAN PURPOSE:     To provide loans to eligible franchisees to fund (i) the
                  acquisition, construction and installation of the land,
                  building and equipment of new OCI restaurant facilities or
                  (ii) the acquisition from OCI of existing restaurant
                  facilities, for the following franchise brand:

                        -     O'Charley's

                  Eligible Program loans will include construction loans
                  combined with permanent loans, and permanent loans (without
                  construction loans) for newly constructed restaurants or
                  existing restaurants acquired from OCI.

ELIGIBILITY:      To qualify for the Program, franchisees must meet the
                  following criteria:

                  -     Approved franchisee applicant or existing franchisee as
                        confirmed by OCI

                  -     Franchisee in good standing with OCI as confirmed by OCI

                  -     Current with all advertising/supplier co-ops

                  -     No bankruptcies

                  -     Satisfactory personal and corporate credit rating

                  -     Financial requirements, as outlined in Program summary
                        sheet, are achieved.

                  -     Franchise Agreement term equal to or exceeding loan term

                  -     Lease term equal to or exceeding loan term

                  -     OCI approved cost breakdown submitted for each request

                  -     Proforma income statement provided for each new store.

COVENANTS:        CORPORATE FIXED CHARGE COVERAGE RATIO

                  For the twelve month period immediately preceding the second
                  anniversary of a restaurant opening, a borrower and its
                  affiliates must meet a minimum of a 1.15X FCCR on a
                  consolidated basis. For the twelve month period immediately
                  preceding the third anniversary of a restaurant opening and
                  for each twelve month period thereafter, a borrower and its
                  affiliates must meet a

<PAGE>

                  minimum of a 1.20X FCCR on a consolidated basis. If the
                  applicable FCCR is not met on or after the third year, the
                  borrower must pay down the loan balances to an amount that
                  would meet the FCCR requirement for the prior year. The FCCR
                  calculations will exclude any O'Charley's restaurant that has
                  been open for less than two years. All FCCR calculations will
                  be done on a post-compensation/distribution basis.

                  EFFECTIVE FUNDED DEBT TO EBITDAR RATIO

                  For the twelve month period ending on the second anniversary
                  of a restaurant opening, a borrower and its affiliates must
                  maintain, on a consolidated basis, an Effective Funded Debt to
                  EBITDAR ratio not to exceed 8:1. For the twelve month period
                  ending on the third anniversary of a restaurant opening, a
                  borrower and its affiliates must maintain, on a consolidated
                  basis, an Effective Funded Debt to EBITDAR ratio not to exceed
                  7:1. For the twelve month period ending on the fourth
                  anniversary of a restaurant opening, and for each twelve month
                  period thereafter, a borrower and its affiliates must
                  maintain, on a consolidated basis, an Effective Funded Debt to
                  EBITDAR ratio not to exceed 6.5:1.

                  "Effective Funded Debt" means (a) senior debt plus (b)
                  operating lease expense divided by .11.

PROGRAM SIZE:     Not to exceed $75,000,000

LOAN ADVANCE:     GE Capital will advance 80% of the total eligible Program
                  costs, up to $2,500,000 per location. Loans will be funded in
                  draws subsequent to OCI's approval of the eligible loan amount
                  and subject to satisfactory documentation.

INTEREST RATE:    A borrower will have the option to choose a Variable Rate with
                  an Option to Fix or a Fixed Rate to be determined at the time
                  the loan closes. A borrower must make this choice at the time
                  the loan application is submitted to GE Capital. The rates
                  will be determined as follows:

                  REAL ESTATE LOANS:

                  Fixed At Closing: 335 basis points over the Ten (10) Year U.S.
                  Dollar Interest Rate Swap.

                  Variable with the Option to Fix: 350 basis points over the 30
                  Day LIBOR rate with the option to fix at 335 basis points over
                  the Ten (10) Year U.S. Dollar Interest Rate Swap.

                  EQUIPMENT LOANS:

                  Fixed At Closing: 335 basis points over the Five (5) Year U.S.
                  Dollar Interest Rate Swap.

                                        2

<PAGE>

                  Variable with the Option to Fix: 350 basis points over the 30
                  Day LIBOR rate with the option to fix at 335 basis points over
                  the Five (5) Year U.S. Dollar Interest Rate Swap.

TERM:             REAL ESTATE LOANS: Fifteen (15) years, fully amortizing

                  EQUIPMENT LOANS: Seven (7) years, fully amortizing

REPAYMENT:        Level monthly debt service payments of principal and interest
                  in arrears. Payments for Variable Rate loans will be adjusted
                  every twelve (12) months based on remaining outstanding
                  principal, remaining loan term, and the then current Variable
                  rate.

PREPAYMENT:       Prepayment of the loans in full will be allowed with the
                  payment, if applicable, of fees and breakage costs as
                  described below. Except as set forth below, no partial
                  prepayments will be allowed. A borrower must provide GE
                  Capital thirty (30) days prior written notice of the date of
                  prepayment:

                  REAL ESTATE LOANS:

<TABLE>
<CAPTION>
Number of Months                          Applicable Percentage
Remaining In Term                           Of Amount Prepaid
-----------------                         ---------------------
<S>                                       <C>
  180-169                                         3.0%
  168-157                                         2.0%
  156-145                                         1.0%
  Thereafter                                      0.0%
</TABLE>

                  EQUIPMENT LOANS:

<TABLE>
<CAPTION>
Number of Months                       Applicable Percentage
Remaining In Term                        Of Amount Prepaid
-----------------                      ---------------------
<S>                                    <C>
  84 - 73                                       3.0%
  72 - 61                                       2.0%
  60 - 49                                       1.0%
  Thereafter                                    0.0%
</TABLE>

                  In addition to the above prepayment fees and in the event the
                  Fixed At Closing rate is in effect, or the Variable Rate is
                  converted to a Fixed rate, A borrower may be subject to a
                  breakage fee to offset any adverse impact to GE Capital of any
                  decline in interest rates.

                  A borrower may make a partial prepayment, and will not be
                  subject to any prepayment or breakage fees, if such prepayment
                  is made in order to bring the borrower into compliance with
                  the applicable FCCR requirement.

                                        3

<PAGE>

FEES:             REAL ESTATE LOANS:      1.0% of the loan balance for each
                                          transaction

                  EQUIPMENT LOANS:        1.0% of the loan balance for each
                                          transaction

DOCUMENTATION:    OCI and GE Capital will mutually agree on documentation to be
                  used for the Program. OCI will execute a Program Agreement
                  Addendum for each Program loan for the purpose of approving
                  the subject loan's inclusion in the Program.

SECURITY:         A first deed of trust or mortgage in the fee simple or
                  leasehold interest in any real property being financed and a
                  first security interest in the equipment being financed. A
                  borrower will be required to sign the following documents:
                  Deed of Trust/Mortgage, Assignment of Rents and Leases,
                  promissory notes, security agreements, personal guarantees and
                  UCC-1 financing statements.

PERSONAL
GUARANTEE:        All principals of a borrower will personally guarantee each
                  loan to such borrower; provided, however, store level managers
                  owning less than 10% of the ownership interests in the
                  borrower shall not be required to personally guarantee a loan
                  if GE Capital determines that the borrower and/or any
                  guarantors of the loan (other than OCI) have sufficient
                  restaurant operating experience.

RECOURSE:         In consideration for GE Capital providing the Program, (i) OCI
                  shall provide an Ultimate Net Loss guarantee to GE Capital in
                  an amount equal to the lesser of twenty percent (20%) of the
                  sum of the original funded principal balances of all Program
                  loans and fifteen million dollars ($15,000,000), and (ii) OCI
                  shall purchase defaulted Program loans from GE Capital, as
                  contemplated below, if the then sum of the original funded
                  principal balances of all Program loans is less than
                  $10,000,000. For each defaulted loan, "Ultimate Net Loss" is
                  defined as the sum of the outstanding loan principal, accrued
                  interest at the default rate and any third party expenses
                  associated with GE Capital's handling of the subject defaulted
                  loan, less all net proceeds received from the remarketing of
                  the collateral and all net proceeds received from any
                  guarantor other than OCI. To the extent that OCI makes any
                  debt service payments with respect to a defaulted loan as
                  contemplated by the next paragraph, the outstanding loan
                  principal and accrued interest shall not include the principal
                  and interest paid by OCI. OCI's liability under the Program
                  will not reduce with the amortization of loans under the
                  Program.

                  GE Capital shall give OCI written notice of default by any
                  franchisee covered by a Program Agreement Addendum. In the
                  event that a Program loan shall have continued in default for
                  thirty (30) days after notice to OCI, GE Capital shall have
                  the

                                        4

<PAGE>

                  right, but not the obligation, to demand: (i) if the then sum
                  of the original funded principal balances of all Program loans
                  is less than $10,000,000, that OCI purchase such defaulted
                  loan from GE Capital by paying GE Capital an amount equal to
                  the sum of the outstanding loan principal and accrued interest
                  at the default rate on such defaulted loan; or (ii) that OCI
                  pay GE Capital all outstanding debt service payments due with
                  respect to such defaulted loan and all future debt service
                  payments as and when due under the loan documents until such
                  time as the Ultimate Net Loss has been established, up to an
                  amount equal to OCI's then outstanding contingent liability
                  under its Ultimate Net Loss guarantee. In lieu of accelerating
                  a defaulted loan and requesting OCI to purchase such loan (if
                  the then sum of the original funded principal balances of all
                  Program loans is less than $10,000,000) or make such debt
                  service payments, GE Capital may elect to extend alternative
                  arrangements (e.g. interest only payments or extended terms)
                  to the defaulted franchisee. Provided, however, by extending
                  an alternative arrangement, GE Capital will not release OCI
                  from its obligations under the Program. If the subject loan
                  remains in default GE Capital will retain its right to request
                  OCI to: (i) purchase the subject loan if the then sum of the
                  original funded principal balances of all Program loans is
                  less than $10,000,000; or (ii) pay such debt service payments
                  to the extent OCI still has outstanding contingent liability
                  under its Ultimate Net Loss guarantee. OCI shall have the
                  right to purchase from GE any Program loan that goes into
                  default by paying GE an amount equal to the sum of the
                  outstanding loan principal and accrued interest at the default
                  rate on such defaulted loan.

                  GE Capital will be responsible for the establishment of the
                  Ultimate Net Loss on a defaulted Program loan, provided that
                  no Ultimate Net Loss will be established with respect to a
                  defaulted Program loan which is purchased by OCI from GE
                  Capital. GE Capital will notify OCI when the Ultimate Net Loss
                  is established. To the extent that OCI still has outstanding
                  contingent liability under its Ultimate Net Loss guarantee,
                  OCI will pay GE Capital the Ultimate Net Loss. If the amount
                  previously paid by OCI to GE Capital on the defaulted account
                  exceeds the Ultimate Net Loss or exceeds the remaining amount
                  of OCI's contingent liability under its Ultimate Net Loss
                  guarantee, GE Capital will reimburse such difference to OCI.

                  If GE Capital has been unable to establish an Ultimate Net
                  Loss on a defaulted Program loan within 18 months of notice of
                  default and such inability is not the result of either a
                  bankruptcy proceeding involving the applicable borrower or an
                  environmental condition affecting the collateral, the Ultimate
                  Net Loss will be deemed to be $0 and GE Capital will return to
                  OCI any funds which it had previously paid to GE Capital

                                        5

<PAGE>

                  because of the default of the subject loan (provided that this
                  sentence shall not apply with respect to a defaulted Program
                  loan which is purchased by OCI from GE Capital).

                  OCI's contingent liability under its Ultimate Net Loss
                  guarantee will be reduced by (i) the aggregate amount of debt
                  service payments and Ultimate Net Losses paid by OCI to GE
                  Capital, (ii) 20% of the funded principal amount of any
                  defaulted Program loan for which OCI has paid GE an amount
                  equal to the sum of the outstanding loan principal and accrued
                  interest at the default rate on such defaulted loan, and (iii)
                  20% of the funded principal amount of any Program loan which
                  has been removed from the pool as contemplated by the next
                  paragraph. OCI's requirement to pay GE Capital debt service
                  payments on defaulted Program loans and to pay GE Capital the
                  Ultimate Net Loss on defaulted Program loans will be limited
                  to the amount of OCI's contingent liability outstanding under
                  its Ultimate Net Loss guarantee at the time of GE Capital's
                  request for such payments. OCI's requirement to purchase
                  defaulted Program loans from GE Capital (if the then sum of
                  the original funded principal balances of all Program loans is
                  less than $10,000,000) shall not be subject to the contingent
                  liability cap for the Ultimate Net Loss guarantee.

                  If a borrower has one store in the Program, the corresponding
                  Program loan will be removed from the pool and OCI will not
                  have any liability with respect to such loan when the third
                  anniversary of the store opening occurs. If a borrower has two
                  stores in the Program, the corresponding Program loans will be
                  removed from the pool and OCI will not have any liability with
                  respect to such loans as of the later to occur of (i) the
                  second anniversary of the opening of the second store or (ii)
                  the third anniversary of the opening of the first store. If a
                  borrower has three stores in the Program, the corresponding
                  Program loans will be removed from the pool and OCI will not
                  have any liability with respect to such loans as of the later
                  to occur of (i) the 18 month anniversary of the opening of the
                  third store or (ii) the third anniversary of the opening of
                  the first store. In each case, removal of a Program loan from
                  the pool and OCI's release of liability with respect to such
                  Program loan shall be subject to satisfaction of the following
                  conditions:

                        -     During the time that the particular borrower has
                              had loans the pool, such borrower shall not have
                              been in default with respect to any of its
                              obligations to GE Capital and no debt service
                              payments shall have been made by OCI to GE Capital
                              with respect to such borrower's loans (provided
                              that the foregoing shall not include debt service
                              payments made by such

                                        6

<PAGE>

                              borrower from the proceeds of any working capital
                              loan from OCI permitted under the Program).

                        -     During the time that the particular borrower has
                              had loans the pool, such borrower shall have been
                              in compliance with the FCCR and Effective Funded
                              Debt to EBITDAR covenants.

MAXIMUM
BORROWINGS:       GE Capital will have the option of limiting a borrower's or
                  borrowing group's exposure under the Program to (i) $2,500,000
                  per location and (ii) $7,500,000 in total borrowings.

FRANCHISEE
DEFAULTS:         OCI will notify GE Capital of a default under the franchise
                  agreement relating to any restaurant in the Program within 30
                  days of the default; provided that OCI shall not be obligated
                  to notify GE Capital of any defaults that have been cured
                  before such 30 day period expires or any non-monetary defaults
                  of which OCI does not have actual knowledge. The borrower will
                  consent to such notification and any default under the
                  franchise agreement which is not cured within the applicable
                  grace period (if any) will be an event of default under the
                  corresponding Program loan.

PROGRAM
TERMINATION:      Either OCI or GE Capital, subject to 90 days prior written
                  notice, can terminate the Program with respect to loans not
                  yet committed to by GE Capital. Also, if there has been a
                  material adverse change in the financial condition of OCI from
                  the financial condition of OCI on the commencement date of the
                  Program, GE Capital can terminate the Program with respect to
                  loans not yet committed to by GE Capital on 30 days prior
                  written notice. Regardless of any termination, OCI's guarantee
                  will remain in place as to all committed or originated loans
                  until such time as those loans are paid in full. If the
                  Program is not otherwise terminated, the Program shall
                  terminate on May 31, 2006 at which time the Program may be
                  extended or a new Program may be established upon the consent
                  of OCI and GE Capital. All loans will be subject to approval
                  at GE Capital's sole discretion.

                                        7

<PAGE>

                              PROGRAM SUMMARY SHEET

Financed amount:              Maximum of 80% of acceptable costs

Personal Guarantee            Personal Guarantee of all principals of a
                              borrower; provided, however, store level managers
                              owning less than 10% of the ownership interests in
                              the borrower shall not be required to personally
                              guarantee a loan if GE Capital determines that the
                              borrower and/or any guarantors of the loan (other
                              than OCI) have sufficient restaurant operating
                              experience.

O'Charley's UNL Guarantee:    The lesser of 20% of the original balance of the
                              sum of all Program loans and $15,000,000.

Real Estate Loan:             Fully amortizing over 15 years

Equipment Loan:               Fully amortizing over 7 years.

Franchise Agreement:          15 years with at least one option to renew

O'Charley's (or 3rd           GE will take a leasehold mortgage, subject to
party) owns land:             acceptable review of the Lease Agreement by GE
                              Capital outside counsel, and if applicable,
                              receipt of a satisfactory estoppel certificate
                              from the 3rd party.

Franchisee Leases             GE will require a satisfactory landlord's waiver
the premises:                 from the landlord.

FCCR:                         1.15X 2nd year and 1.20X ongoing from and after
                              3rd year. Tested on a trailing twelve month basis.

Additional Covenant:          Effective Funded Debt to EBIDTAR ratio of less
                              than 8:1 2nd year, 7:1 3rd year and 6.5:1 ongoing
                              from and after 4th year. Tested on a trailing
                              twelve month basis.

Other Debt & Payments:        Shareholder, Mezzanine and OCI debt to be deeply
                              subordinated to GE Capital. OCI debt can be
                              secured by lien which is deeply subordinated to GE
                              Capital.

Management Fees:              Deeply subordinated to GE Capital.

Credit Enhancement Fees:      Deeply subordinated to GE Capital.

                                        8

<PAGE>

                                    EXHIBIT B

                                LOAN APPLICATION

                                 [see attached]
<PAGE>

                                      LOAN
                                   APPLICATION
                                     PROCESS

                                                GE COMMERICAL FINANCE

                                                FRANCHISE FINANCE

                                                IMAGINATION AT WORK [GE LOGO]

<PAGE>

[GE LOGO] GE FRANCHISE FINANCE                                      LOAN PROCESS

Welcome to GE Franchise Finance. All of us at GE thank you for choosing us as
your lending partner.

We want you to know that we will process and service your loan with the same
level and enthusiasm with which we won your business. Our objective is to
approve and fund your loan as quickly as possible. To do this, we need your help
and cooperation.

                                PROCESS OVERVIEW

<TABLE>
<CAPTION>
                                                                     Approx 15 - 20 business            Approx 15 - 45 business
                                                                     days after receipt of              days after approval
                                                                     complete package                   (depending on the type of
                                                                                                        transaction)

      PRE-APPLICATION                  APPLICATION                         DEAL REVIEW                     CLOSING/FUNDING
<S>                           <C>                                    <C>                                 <C>
- Identify Site               - Application Materials                - GEFF Review application to        - Loan Documents Issued
                                (See Loan Application Checklist        determine if complete
- Gather Information            on the next page and/or proposal                                         - Promissory Note
  (See Loan Application         for a complete list of items         - Customer contact:                 - Security Agreement
  Checklist)                    required)                              introduction/questions            - Landlord Waiver/
                                                                       and answers regarding deal.         Estoppel (if applicable)
- Contact GE Account Rep      - Complete Application                   May request additional            - Title/Survey (RE only)
  for a Financing Proposal                                             information at this time          - Mortgage doc's (RE only)
                              - Submit required items/documents        if necessary                      - Environmental (RE only)
                                with signed Financing Proposal                                           - Signed Lease Agreement
                                to GEFF                              - Transaction reviewed by           - UCC Searches
                                                                       GEFF Risk Department
                                                                                                         - Loan Documents Executed
                                                                     - Credit decision
                                                                                                         - Initial Funding
</TABLE>
<PAGE>

[GE LOGO] GE FRANCHISE FINANCE                        LOAN APPLICATION CHECKLIST

To ensure GE Franchise Finance provides a credit decision in a timely fashion
please carefully follow all instructions throughout the application package and
Financing Proposal letter. Completed application packages must include the
following items listed under the Application Materials section. If any of the
following items are missing, the application will be deemed incomplete and will
not be processed until all the required items are submitted to GE Franchise
Finance.

<TABLE>
<CAPTION>
                                                                      Included with   Previously
Application Materials:                                                    Package     Submitted     Comments
----------------------                                                -------------   ----------    --------
<S>                                                                   <C>             <C>           <C>
Signed Financing Proposal with Deposit Check
Completed Business Loan Application Form
Business Financial Statements for existing operations:
   - Last 2 years fiscal year end financial statements
     (units & corporate)
   - Year-to-date financial statements w/comparable prior year
     (units & corp.)
   - Last 2 years financial statements for all affiliated
     companies & properties (if your ownership exceeds 50%
     in those entities)

Authorization to Release Information, signed by each guarantor
  (included in application)

Personal Financial Statement for each guarantor (included in
  application)
Pro-forma Income Statement for 1st year [illegible]

Information Required for Acquisitions
-------------------------------------
Letter of Intent or Purchase and Sale Agreement
Business Financial Statements for operations being refinance
  or acquired
   - Last 2 years fiscal year end financial statements
     (unit level) as available
   - Year-to-date financial statements w/comparable prior
     year (unit level) as available

Information Not Required to Begin Underwriting but Prior to Approval
--------------------------------------------------------------------
Last 2 years Personnel Tax Returns for the guarantors (including
  schedules, attachments and K1's) Must be a signed copy
Copy of leases on the locations being financed as available
Owner's background/resume/biography (for new customers)
Site Information and Demographics (for new locations only)
Other Items as requested in the Financing Proposal
Include income statements and balance sheets. If financial
  statements are not audited or reviewed please provide last two
  years tax returns, must be signed.
</TABLE>

* Include income statements and balance sheets. If financial statements are not
  audited or reviewed, please provide last two years tax returns, must be
  signed.
<PAGE>

[GE LOGO]

GE FRANCHISE FINANCE

                                                       BUSINESS LOAN APPLICATION

                               CREDIT APPLICATION

Note: Please print or type all information. Use additional sheets if necessary.

Borrower's Name (Exact Legal Business Name) ____________________________________

Mailing Address ________________________________________________________________

City _____________________ State _____________________ Zip _____________________

Telephone ( ) _____________ Mobile Phone ( ) _____________ Fax ( ) _____________

E-Mail Address _________________ Number of stores operated _____________________

Entity Type (circle one): Sub-S  C-Corp  LLC  Partnership  Sole Proprietor
Other____

                                    OWNERSHIP STRUCTURE

                                          Guarantor
                              Ownership %   [Y/N]

1. Name    ___________________ _________ ( ) Y ( ) N Telephone ( ) _____________

   Address _____________________________             Social Security # _________

2. Name    ___________________ _________ ( ) Y ( ) N Telephone ( ) _____________

   Address _____________________________             Social Security # _________

3. Name    ___________________ _________ ( ) Y ( ) N Telephone ( ) _____________

   Address _____________________________             Social Security # _________

4. Name    ___________________ _________ ( ) Y ( ) N Telephone ( ) _____________

   Address _____________________________             Social Security # _________

Do any of the aforementioned owners have an ownership interest in other
companies?*
(If yes, please provide name(s) of those companies.)

Owner #:             Name(s) of companies:

1. [ ] Yes [ ] No    ___________________________________________________________

2. [ ] Yes [ ] No    ___________________________________________________________

3. [ ] Yes [ ] No    ___________________________________________________________

4. [ ] Yes [ ] No    ___________________________________________________________

*The Patriot Act of 2001, requires lenders such as GE Franchise Finance to
understand completely the people and entities to which they lend money. As part
of this, GE must exercise adequate due diligence on the borrowing entity,
guarantors and any companies affiliated with the borrowing entity or guarantors.
<PAGE>

             OUTLINE OF LOAN REQUEST - FOR ACQUISITION/REFINANCING

* If this information has previously been provided please proceed to the
Authorization to Release.

For new store development, please proceed to the next page.

<TABLE>
<S>                                                             <C>                      <C>                             <C>
                                                                                          OTHER (NON-FINANCABLE COSTS,
REAL ESTATE                                                                                 UNLESS OTHERWISE NOTED)

Number of Fee* Sites being purchased/refinanced                 ________________         Working Capital                 ___________

Number of Ground Lease** Sites being purchased/refinanced       ________________         Training Expenses               ___________

Purchase amount of Real Estate (Fee Sites + Ground Lease Sites) ________________         Deposits                        ___________

FURNITURE, FIXTURES & EQUIPMENT                                                          Legal Expenses                  ___________

Total number of Sites being purchased/refinanced                ________________         Closing Costs                   ___________

Franchise Fees/Transfer Fees                                    ________________         Total Acquisition/
                                                                                         Refinance Amount:               ___________
Purchase amount of FF&E and Business Value                      ________________

Total (Franchise Fee's + Purchase amount of FF&E and
Business Value)                                                 ________________
</TABLE>

* The company will own land, building and equipment at these locations

** The company will own building and equipment at these locations

                            LOAN/EQUITY INFORMATION

<TABLE>
<CAPTION>
                                                                        Equity Source          Amount
                                                                        -------------          ------
<S>                                      <C>                    <C>                         <C>
Loan Amount - Real Estate                _______________        Name:  _______________      _______________

Loan Amount - Equipment                  _______________        Name:  _______________      _______________

Equity                                   _______________        Name:  _______________      _______________

Soft Costs/Non-Financable Costs          _______________        Name:  _______________      _______________
</TABLE>

                                SITE INFORMATION

PLEASE PROVIDE ADDRESSES AND STORE OPENING DATES OF ALL RESTAURANTS BEING
ACQUIRED/REFINANCED: IF YOU HAVE MORE THAN 9 LOCATIONS, PLEASE ATTACH A FULL
LIST OF THE ADDRESSES, PROPERTY TYPES AND STORE OPENING DATES ON A SEPARATE
PIECE OF PAPER.

<TABLE>
<CAPTION>
                                          Property Type
                                           (Fee, Ground
   Address of location(s):              Lease, FF&E only)            Store opening date
   ------------------------             -----------------            ------------------
<S>                                     <C>                       <C>
1.____________________________          __________________        ________________________

2.____________________________          __________________        ________________________

3.____________________________          __________________        ________________________

4.____________________________          __________________        ________________________

5.____________________________          __________________        ________________________

6.____________________________          __________________        ________________________

7.____________________________          __________________        ________________________

8.____________________________          __________________        ________________________

9.____________________________          __________________        ________________________
</TABLE>
<PAGE>

              OUTLINE OF LOAN REQUEST - FOR NEW STORE DEVELOPMENT

                              CAPITAL EXPENDITURE BUDGET

<TABLE>
<CAPTION>
                                                                OTHER: (NON-FINANCABLE COSTS,
REAL ESTATE                            BUDGETED AMOUNT             UNLESS OTHERWISE NOTED)         BUDGETED AMOUNT
-----------                            ---------------          -----------------------------      ---------------
<S>                                    <C>                      <C>                                <C>
Land                                   ________________         Working Capital                    ________________

Building                               ________________         Training Expenses                  ________________

Site Work                              ________________         Deposits                           ________________

Architectural/Engineering/Permitting   ________________         Legal Expenses                     ________________

Other: ______________________________  ________________         Closing Costs                      ________________

Total                                  ________________         Other: ______________________      ________________

                                                                Total Project Cost:                ________________
</TABLE>

<TABLE>
<CAPTION>
FURNITURE, FIXTURES & EQUIPMENT
-------------------------------
<S>                                      <C>
Franchise Fee                            ________________

POS                                      ________________

Signage                                  ________________

Equipment                                ________________

Smallwares                               ________________

Business License                         ________________

Other: ____________                      ________________

Total                                    ________________
</TABLE>

                            LOAN/EQUITY INFORMATION

<TABLE>
<CAPTION>
       Loan Information                                      Equity Source              Amount
       ----------------                                      -------------              ------
<S>                                 <C>               <C>                          <C>
Loan Amount - Real Estate           _____________     Name: __________________     ________________

Loan Amount - Equipment             _____________     Name: __________________     ________________

Equity                              _____________     Name: __________________     ________________

Soft Costs/Non-Financable Costs     _____________     Name: __________________     ________________
</TABLE>

                                SITE INFORMATION

If you have information from third party sources, i.e. realtor, etc. please
include with the application and skip this section.

Address of location(s):

GENERATORS

How does the location generate sales?

For example: lunchtime office workers, drive home from work, schools, catering,
shopping center/strip mall.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
<PAGE>
[GE LOGO]

GE FRANCHISE FINANCE

                      AUTHORIZATION TO RELEASE INFORMATION

      ______________________ ("Applicant") has applied to GE Capital Franchise
      Finance Corporation ("GE") for equipment and/or real estate financing.

      As such, each of the undersigned (each, a "Principal" and collectively,
      the "Principals") hereby authorizes its bank(s), creditor(s) and
      supplier(s) to release to GE all information requested by GE regarding any
      depository, loan and/or other credit account of the Principals, the
      Applicant and/or its affiliates including, without limitation, financial
      information. This Authorization to Release Information shall also serve as
      an authorization for GE to obtain a personal credit report on each
      Principal and business credit reports on the Applicant and its affiliates.
      The following is a listing of all of applicable affiliates of the
      Applicant (please print legal name and any dba):

      ________________________________          ________________________________

      ________________________________          ________________________________

      Additionally, during the term of any loan from GE to Applicant, including
      any extensions or renewals thereof, the undersigned hereby authorizes GE
      to obtain from the Applicant's franchisor any information, including
      without limitation, financial information and information regarding the
      status of the franchise agreement(s) between Applicant and its franchisor.

      Each Principal releases its bank(s), creditor(s), supplier(s) and
      franchisor from any and all liability with respect to the release of any
      such information requested hereunder.

      A facsimile signature of this Authorization to Release Information shall
      be deemed an original signature.

      By: _______________________________      Date: ___________________________

      Printed Name: _____________________

      By: _______________________________      Date: ___________________________

      Printed Name: _____________________
<PAGE>
[GE LOGO]

GE FRANCHISE FINANCE

                                  CONFIDENTIAL
                               FINANCIAL STATEMENT
                             AS OF: _______________
                                        DATE

    If you have a personal financial statement already prepared, please sign
                  this form and attach your existing statement.

                                  [ILLEGIBLE]

                          [SCHEDULES ON REVERSE SIDE]
<PAGE>
SCHEDULES

                                  [ILLEGIBLE]
<PAGE>

              For Existing Operations and/or stores being purchased

      Lease Schedule Summary [Please list all capital lease amounts below]

<TABLE>
<CAPTION>
                 Type (Ground Lease Lease Inception  Original  Renewal  If Yes, when does   Monthly Lease      Purchase
Collateral Store   or Leasehold)         Date       Lease Term Option  final option expires    Payment       Option (Y/N)
---------------- ------------------ --------------- ---------- ------- -------------------- -------------    ------------
<S>              <C>                <C>             <C>        <C>     <C>                  <C>              <C>
                                                               Yes No
--------------------------------------------------------------------------------------------------------------------------------
                                                               Yes No
--------------------------------------------------------------------------------------------------------------------------------
                                                               Yes No
--------------------------------------------------------------------------------------------------------------------------------
                                                               Yes No
--------------------------------------------------------------------------------------------------------------------------------
                                                               Yes No
--------------------------------------------------------------------------------------------------------------------------------
                                                               Yes No
--------------------------------------------------------------------------------------------------------------------------------
                                                               Yes No
</TABLE>

      Debt Schedule Summary (Please include any subordinated debt,
          shareholder loans, intercompany notes and operating leases)

<TABLE>
<CAPTION>
                      Type                                                Original
Collateral Store  [ILLEGIBLE]  Lender   Original Amount  Original Term   Amortization  Commencement Date  Payment  Interest Rate
----------------  -----------  ------   ---------------  -------------  -------------  -----------------  -------  ---------------
<S>                 <C>        <C>      <C>              <C>            <C>            <C>                <C>      <C>

----------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

FINANCIAL SOLUTIONS

         FOR YOUR BUSINESS NEEDS.

         -        REFINANCE              [PICTURE] UNRIVALED ACCESS TO CAPITAL

         -        ACQUISITION            [PICTURE] EASE OF USE

         -        NEW CONSTRUCTION       [PICTURE] FLEXIBILITY

         -        REIMAGE

[GE LOGO] GE FRANCHISE FINANCE

<PAGE>

GE FRANCHISE FINANCE                                               DECISION DATE

Thank you for giving GE Franchise Franchise the opportunity to earn your
business. Please sign this page to complete your application.

In the Loan Application Package, please review the checklist of items required
from you, which will enable us to underwrite your transaction. With that in
mind, please provide us with the date that you need a final credit decision from
GE in the space below.

PLEASE NOTE THAT THE PROCESSING AND DECISION ON YOUR LOAN PACKAGE COULD BE
DELAYED UNLESS ALL OF THE ITEMS DETAILED IN THE LOAN APPLICATION CHECKLIST ARE
PROVIDED TO GE.

With your cooperation, we will work hard to fulfill your expectations!

                       /        /2004                                /     /2004
-------------------------------------    ---------------------------------------
Your Desired Decision Date                        Your Signature & Date

We will notify you by phone of the credit decision as soon as it is reached. If
you would like someone else to receive the credit decision, please indicate that
individual's name & contact number here.

Name: ____________________________       Tel: _____________________________

<PAGE>
                                    EXHIBIT C

                           PROGRAM AGREEMENT ADDENDUM
                         "STORE FINANCING PROGRAM" - US

      ADDENDUM to that certain Program Support Agreement ("Agreement") between
      O'Charley's Inc. (O'Charley's), and GE Capital Franchise Finance
      Corporation (GE Capital) dated _______________________, 2004.

      O'Charley's and GE Capital agree that the following loan shall be covered
      by the provisions of the Agreement:

Primary Contact: _______________________________________________________________

Borrower Name: _________________________________________________________________

Borrower Address: ______________________________________________________________
                  ______________________________________________________________

Telephone Number: ______________________________________________________________

Fax: ___________________________________________________________________________

Email: _________________________________________________________________________

Federal Tax ID Number: _________________________________________________________

Guarantors: ____________________________________________________________________

Address: _______________________________________________________________________
         _______________________________________________________________________

Telephone Number: ______________________________________________________________

Guarantors: ____________________________________________________________________

Address: _______________________________________________________________________
         _______________________________________________________________________

Telephone Number: ______________________________________________________________

Guarantors: ____________________________________________________________________

Address: _______________________________________________________________________
         _______________________________________________________________________

Telephone Number: ______________________________________________________________

Guarantors: ____________________________________________________________________

Address: _______________________________________________________________________
         _______________________________________________________________________

Telephone Number: ______________________________________________________________

Location (O'Charley's store number(s)): ________________________________

Address of collateral unit:

<PAGE>

      Street: _____________________________________________
      City: _______________________________________________
      State: ______________________________________________
      Zip Code: ___________________________________________

_____ Store to be constructed _____ Existing store

Mortgage Loan Amount: $________________________________________

Mortgage Loan Term: ___ months

Equipment Loan Amount: $_______________________________________

Equipment Loan Term: ___ months

O'CHARLEY'S INC.                             GE CAPITAL FRANCHISE
                                             FINANCE CORPORATION

By: ____________________________             By: _______________________________
Name: __________________________             Name: _____________________________
Title: _________________________             Title: ____________________________

                                        2<PAGE>

                                                                   Exhibit 10.23

                           [AMERICAN HEALTHWAYS LOGO]

                      NON-QUALIFIED STOCK OPTION AGREEMENT

      THIS STOCK OPTION AGREEMENT is made and entered into this <<DAY1ST>> day
of <<MONTH>>, <<YEAR>>, by and between AMERICAN HEALTHWAYS, INC., a Delaware
corporation (the "Corporation") including its subsidiary corporations, and
<<FIRST_NAME>> <<LAST_NAME>> (the "Colleague").

      WHEREAS, the Corporation desires to afford the Colleague an opportunity to
purchase shares of Common Stock, $.001 par value per share ("Common Stock") of
the Corporation, in accordance with the provisions of the American Healthways,
Inc. 1996 Employee Stock Incentive Plan, as amended (the "Plan").

      NOW, THEREFORE, In consideration of the mutual covenants set forth in this
Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

      1. GRANT OF OPTION. Corporation hereby grants to Colleague the option (the
"Option"), exercisable in whole or in part to purchase <<TOTALSHARES>> shares of
the Corporation's Common Stock, for a price of <<AMOUNTPERSHARE>> per share.

      2. OPTION PLAN. This Option is granted as a non-qualified stock option
under the Plan, and is not intended to qualify as an incentive stock option, as
that term is used in Section 422 of the Internal Revenue Code of 1986, as
amended (the "Code"). This means that, at the time Colleague exercises all or
any portion of this Option, Colleague will have taxable income equal to any
positive difference between the market value of the Common Stock at the date of
the exercise and the option exercise price paid for the Common Stock under this
Option as shown in Section 1 of this Agreement.

      This Option is subject to the terms and conditions set forth in the Plan.
In the event any of the provisions in this Agreement conflict with or are
inconsistent with the provisions of the Plan, the provisions of the Plan shall
be controlling.

      3. TIMING OF EXERCISE. Colleague may exercise this Option with respect to
the percentage of shares set forth below from and after the dates specified
below:

<TABLE>
<CAPTION>
PERCENTAGE VESTED                    DATE OF VESTING                       OPTIONS EXERCISABLE
<S>                                  <C>                                   <C>
       100%                          <<MoDayYrPlus4>>                        <<TotalShares>>
</TABLE>

This Option will expire ten (10) years from the date of grant of this Option.

<PAGE>

      4. MANNER OF EXERCISE. This Option shall be exercised by the Colleague (or
other party entitled to exercise the Option under Section 5 of this Agreement)
by delivering written notice to the Corporation stating the number of shares of
Common Stock to be purchased, the person or persons in whose name the shares are
to be registered and each such person's address and social security number. Such
notice shall not be effective unless accompanied by the full purchase price for
all shares so purchased. The purchase price shall be payable in cash and shall
be calculated as the number of shares to be purchased times the option exercise
price per share as shown in Section 1 of this Agreement. Payment in currency or
by certified check, cashier's check or postal money order shall be considered
payment in cash. The Corporation shall have the right to require the Colleague
to remit to the Corporation an amount sufficient to satisfy any federal, state
and local withholding tax requirements prior to the delivery of any certificate
for such shares.

      5. NONTRANSFERABILITY OF OPTION. This Option shall not be transferable by
the Colleague otherwise than by will or by the laws of descent and distribution,
and is exercisable during Colleague's lifetime only by the Colleague. The terms
of this Option shall be binding on the executors, administrators, heirs and
successors of the Colleague.

      6. TERMINATION OF EMPLOYMENT.

            (a) TERMINATION BY DEATH. If the Colleague's employment by the
Corporation terminates by reason of death, this Option may thereafter be
exercised, to the extent the Option was exercisable at the time of death, by the
legal representative of the estate or by the legatee of the Colleague under the
will of the Colleague, for a period of one year from the date of such death or
until the expiration of the stated term of the Option, whichever period is the
shorter.

            (b) TERMINATION BY REASON OF DISABILITY. If the Colleague's
employment by the Corporation terminates by reason of Disability (as that term
is defined under the Corporation's long-term disability insurance policy), this
Option may thereafter be exercised by the Colleague, to the extent it was
exercisable at the time of termination, for a period of three years from the
date of such termination of employment or until the expiration of the stated
term of the Option, whichever period is shorter, provided, however, that if the
Colleague dies within such three-year period, the Option shall thereafter be
exercisable to the extent to which it was exercisable at the time of death for a
period of twelve months from the date of such death or until the expiration of
the stated term of the Option, whichever period is shorter.

            (c) RETIREMENT. If the Colleague's employment by the Corporation
terminates by reason of retirement as defined in the Plan, the shares subject to
the Option granted hereunder not previously exercisable and vested shall become
fully exercisable and vested upon the date of such termination of employment and
this option may be exercised for a period of one year from the date of such
termination of employment or until the expiration of the stated term of the
Option, whichever period is shorter.

            (d) OTHER TERMINATION. If the Colleague's employment by the
Corporation is involuntarily terminated for any reason other than Death,
Disability, or Retirement, or if the

                                       2

<PAGE>

Colleague voluntarily terminates employment, this Option shall thereupon
terminate, except that this Option may be exercised by the Colleague, to the
extent otherwise then exercisable, for a period of three months from the date of
such termination of employment or the expiration of the Option's term, whichever
period is the shorter if the involuntary termination is without Cause. If the
Colleague's employment by the Company is terminated for Cause, this Option shall
immediately terminate.

      7. RESTRICTIONS ON PURCHASE AND SALE OF SHARES. The Corporation shall be
obligated to sell or issue shares pursuant to the exercise of this Option only
in the event that the shares are at that time effectively registered or
otherwise exempt from registration under the Securities Act of 1933, as amended
("the 1933 Act"). In the event that the shares are not registered under the 1933
Act, the Colleague hereby agrees that, as a further condition to the exercise of
this Option, the Colleague (or his successor under Section 5 of this Agreement),
if the Corporation so requests, will execute an agreement in form satisfactory
to the Corporation in which the Colleague represents that he or she is
purchasing the shares for investment purposes, and not with a view to resale or
distribution. The Colleague further agrees that if the shares of Common Stock to
be issued upon the exercise of this Option are not subject to an effective
registration statement filed with the Securities and Exchange Commission
pursuant to the requirements of the 1933 Act, such shares shall bear an
appropriate restrictive legend.

      8. ADJUSTMENT. In the event of any merger, reorganization, consolidation,
recapitalization, extraordinary cash dividend, stock dividend, stock split or
other change in corporate structure affecting the Common Stock, the number of
shares of Common Stock of the Corporation subject to this Option and the price
per share of such shares may be adjusted by the Corporation as may be determined
by the Compensation Committee of the Corporation's Board of Directors (the
"Committee") pursuant to the Plan.

      9. CHANGE IN CONTROL. Upon a Change in Control, and if and to the extent
so determined by the Committee or the Board upon a Potential Change in Control,
the shares subject to the Option granted hereunder not previously exercisable
and vested shall become fully exercisable and vested.

      10. NO RIGHTS UNTIL EXERCISE. The Colleague shall have no rights hereunder
as a stockholder with respect to any shares subject to this Option until the
date of the issuance of a stock certificate to him or her for such shares upon
due exercise of this Option.

      11. CONFIDENTIALITY, NON-SOLICITATION AND NON-COMPETE. It is the interest
of all Colleagues to protect and preserve the assets of the Corporation. In this
regard, in consideration for granting this Option and as conditions of
Colleagues' ability to exercise this option, Colleague acknowledges and agrees
that:

            (a) CONFIDENTIALITY. In the course of Colleague's employment,
Colleague will have access to trade secrets and other confidential information
of the Corporation and its clients. Accordingly, Colleague agrees that, without
the prior written consent of the Corporation, Colleague will not, other than in
the normal conduct of the Corporation's business affairs, divulge, furnish,
publish or use for personal benefit or for the direct or indirect benefit of any

                                       3

<PAGE>

other person or business entity, whether or not for monetary gain, any trade
secrets or confidential or proprietary information of the Corporation or its
clients, including without limitation, any information relating to any business
methods, marketing and business plans, financial data, systems, customers,
suppliers, policies, procedures, techniques or research developed for the
benefit of the Corporation or its clients. Proprietary information includes, but
is not limited to, information developed by the Colleague for the Corporation
while employed by the Corporation. The obligations of the Colleague under this
paragraph will continue after the Colleague has left the employment of the
Corporation. Colleague agrees that upon leaving the employment of the
Corporation, Colleague will return to the Corporation all property and
confidential information in the Colleague's possession and agrees not to copy or
otherwise record in any way such information.

            (b) NON-SOLICITATION. While employed by the Corporation and for a
period of two years thereafter, Colleague shall not, upon Colleague's own behalf
or on behalf of any other person or entity, directly or indirectly,

            - hire or solicit to leave the employ of the Corporation any person
      employed by or under contract as an independent contractor to the
      Corporation; or

            - contact, solicit, entice away, or divert any disease management
      business from any person or entity who is a client or with whom the
      Corporation was engaged in discussions as a potential client within one
      year prior to the date of termination of Colleague.

            (c) While employed by Corporation and continuing during the period
while any amounts are being paid to Colleague and for a period of 18 months
thereafter, Colleague will not own or be employed by or assist anyone else in
the conduct of any business (i) which is in competition with any business
conducted by the Corporation or (ii) which Colleague knows the Corporation was
actively evaluating for possible entry, in either case in the United States or
in any other jurisdiction in which the Corporation is engaged in business or has
been engaged in business during Colleague's employment by the Corporation, or in
such jurisdictions where Colleague knows the Corporation is actively pursuing
business opportunities at the time of Colleague's termination of employment with
the Corporation; provided that ownership of five percent (5%) or less of the
voting stock of any public corporation shall not constitute a violation hereof.

      In the event Colleague breaches any provisions of this Section 11, this
Option shall immediately expire and may not be exercised, and the Corporation
shall be entitled to seek other appropriate remedies it may have available to
limit its damages from such breach

      12. AMENDMENT. The Committee may amend the terms of this Option,
prospectively or retroactively, but, subject to Section 8 above, no such
amendment shall impair the rights of the Colleague hereunder without the
Colleague's consent.

                                       4

<PAGE>

      13. NOTICES. All notices required to be given under this Option shall be
deemed to be received if delivered or mailed as provided for herein, to the
parties at the following addresses, or to such other address as either party may
provide in writing from time to time.

      To the Corporation:

                                             American Healthways, Inc.
                                             3841 Green Hills Village Drive
                                             Nashville, Tennessee 37215

      To the Colleague:                      ___________________________________
      (colleague name and address)           ___________________________________
                                             ___________________________________

      14. SEVERABILITY. If any provision of this Agreement is, or becomes, or is
deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any
person or the award of the Option, or would disqualify the Plan or the Option
under any laws deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Option, such provision shall
be stricken as to such jurisdiction, person or Option, and the remainder of the
Plan and Option shall remain in full force and effect.

      15. GOVERNING LAW. The validity, construction and effect of this Agreement
shall be determined in accordance with the laws of the State of Delaware without
giving effect to conflicts of laws principles.

      16. RESOLUTION OF DISPUTES. Any dispute or disagreement which may arise
under, or as a result of, or in any way related to, the interpretation,
construction or application of this Agreement shall be determined by the
Committee. Any determination made hereunder shall be final, binding and
conclusive on the Optionee and the Corporation for all purposes.

                                       5

<PAGE>

      IN WITNESS WHEREOF, the parties have caused the Stock Option Agreement to
be duly executed as of the day and year first above written.

                                                    AMERICAN HEALTHWAYS, INC.:

                                                    Name: Ben R. Leedle, Jr.
                                                    Title: Chairman & CEO

                                                    COLLEAGUE:

                                                    ____________________________

                                       6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]