RUBY TUESDAY, INC.
                            1996 STOCK INCENTIVE PLAN
 
                       (Restated as of September 30, 1999)
 
 
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                                TABLE OF CONTENTS
 
                                                                        Page
SECTION 1   DEFINITIONS...................................................1
      1.1   Definitions...................................................1
 
SECTION 2   THE STOCK INCENTIVE PLAN......................................4
      2.1   Purpose of the Plan...........................................4
      2.2   Stock Subject to the Plan.....................................4
      2.3   Administration of the Plan....................................4
      2.4   Eligibility and Limits........................................5
 
SECTION 3   TERMS OF STOCK INCENTIVES.....................................5
      3.1   Terms and Conditions of All Stock Incentives..................5
      3.2   Terms and Conditions of Options...............................7
            (a) Option Price..............................................7
            (b) Option Term...............................................8
            (c) Payment...................................................8
            (d) Conditions to the Exercise of an Option...................8
            (e) Termination of Incentive Stock Option.....................8
            (f) Special Provisions for Certain Substitute Options.........9
      3.3   Terms and Conditions of Stock Appreciation Rights.............9
            (a) Settlement................................................9
            (b) Conditions to Exercise....................................9
      3.4   Terms and Conditions of Stock Awards..........................9
      3.5   Terms and Conditions of Dividend Equivalent Rights...........10
            (a) Payment..................................................10
            (b) Conditions to Payment....................................10
      3.6   Terms and Conditions of Performance Unit Awards..............10
            (a) Payment..................................................11
            (b) Conditions to Payment....................................11
      3.7   Terms and Conditions of Phantom Shares.......................11
            (a) Payment..................................................11
            (b) Conditions to Payment....................................11
      3.8   Treatment of Awards Upon Termination of Service..............11
 
SECTION 4   RESTRICTIONS ON STOCK........................................12
      4.1   Escrow of Shares.............................................12
      4.2   Forfeiture of Shares.........................................12
      4.3   Restrictions on Transfer.....................................12
 
SECTION 5   GENERAL PROVISIONS...........................................12
      5.1   Withholding..................................................13
      5.2   Changes in Capitalization; Merger; Liquidation...............13
      5.3   Cash Awards..................................................14
      5.4   Compliance with Code.........................................14
      5.5   Right to Terminate Service...................................14
      5.6   Restrictions on Delivery and Sale of Shares; Legends.........14
      5.7   Non-alienation of Benefits...................................15
      5.8   Termination and Amendment of the Plan........................15
      5.9   Stockholder Approval.........................................15
      5.10  Choice of Law................................................15
      5.11  Effective Date of Plan.......................................15
 
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                               RUBY TUESDAY, INC.
                            1996 STOCK INCENTIVE PLAN
 
     Ruby Tuesday,  Inc.,  formerly known as Morrison  Incorporated,  originally
adopted the Morrison  Incorporated Stock Incentive Plan which, in 1996, was last
amended and restated as the Morrison  Restaurants Inc. 1996 Stock Incentive Plan
and  subsequently  renamed as the Ruby Tuesday,  Inc. 1996 Stock Incentive Plan.
The purpose of this  restatement  is to  incorporate  into one  document,  as of
September  30,  1999,  all  amendments  to the Ruby  Tuesday,  Inc.  1996  Stock
Incentive  Plan that have been  adopted  subsequent  to the last  amendment  and
restatement in 1996.
 
                              SECTION 1 DEFINITIONS
 
         1.1......Definitions. Whenever used herein, the masculine pronoun shall
be deemed to include  the  feminine,  and the  singular  to include  the plural,
unless the context clearly indicates  otherwise,  and the following  capitalized
words and phrases are used herein with the meaning thereafter ascribed:
 
                  (a)......"Board  of Directors" means the board of directors of
the Company.
 
                  (b)......"Cause"  has the  same  meaning  as  provided  in the
employment  agreement between the Participant and the Company or, if applicable,
any  affiliate of the Company on the date of  Termination  of Service,  or if no
such definition or employment agreement exists,  "Cause" means conduct amounting
to  (1)  fraud  or  dishonesty  against  the  Company  or  its  affiliates,  (2)
Participant's  willful  misconduct,  repeated  refusal to follow the  reasonable
directions  of the board of  directors  of the  Company  or its  affiliates,  or
knowing  violation  of  law in the  course  of  performance  of  the  duties  of
Participant's service with the Company or its affiliates,  (3) repeated absences
from work without a reasonable excuse, (4) repeated intoxication with alcohol or
drugs while on the  Company or  affiliates'  premises  during  regular  business
hours,  (5) a conviction  or plea of guilty or nolo  contendere to a felony or a
crime  involving  dishonesty,  or (6) a breach or  violation of the terms of any
agreement to which Participant and the Company or its affiliates are party.
 
                  (c)......"Change  in Control" means any event that pursuant to
the  Company's  Certificate  of  Incorporation,  as  amended  from time to time,
requires  the  affirmative  vote of the holders of not less than eighty  percent
(80%) of the Voting Stock (as defined therein); provided, however, that no event
shall  constitute  a Change in Control if approved  by the Board of  Directors a
majority of whom are present  directors and new  directors.  For purposes of the
preceding sentence, the term "present directors" means individuals who as of the
date this Plan is adopted were  members of the Board of  Directors  and the term
"new  directors"  means any director whose election by the Board of Directors in
the event of vacancy or whose  nomination for election was approved by a vote of
at least  three-fourths  of the  directors  then still in office who are present
directors and new directors;  provided that any director elected to the Board of
Directors  solely to avoid or settle a threatened  or actual proxy contest shall
in no event be deemed to be a new director.
 
                  (d)......"Code"  means the Internal  Revenue Code of 1986,  as
amended.
 
                  (e)......"Committee"  means  the  committee  appointed  by the
Board of Directors to administer the Plan pursuant to Plan Section 2.3.
 
                  (f)......"Company" means Ruby Tuesday, Inc., a Georgia
corporation, or its successor.
 
                  (g)......"Disability"  has the same meaning as provided in the
long-term disability plan or policy maintained or, if applicable,  most recently
maintained,  by the Company or, if applicable,  any affiliate of the Company for
the Participant.  If no long-term  disability plan or policy was ever maintained
on behalf of the Participant or, if the  determination of Disability  relates to
an Incentive  Stock Option,  Disability  shall mean that condition  described in
Code Section 22(e)(3),  as amended from time to time. In the event of a dispute,
the  determination  of  Disability  shall be made by the Board of Directors  and
shall be supported by advice of a physician  competent in the area to which such
Disability relates.
 
                  (h)......"Disposition"  means any conveyance,  sale, transfer,
assignment,  pledge or  hypothecation,  whether  outright or as security,  inter
vivos or testamentary, with or without consideration, voluntary or involuntary.
 
                  (i)......"Dividend Equivalent  Rights"  means  certain  rights
to receive cash payments as described in Plan Section 3.5.
 
                  (j)......"Fair  Market  Value" with regard to a date means the
closing price at which Stock shall have been sold on the last trading date prior
to that date as  reported  by a national  securities  exchange  selected  by the
Committee on which the shares of Stock are then actively traded and published in
The Wall Street  Journal;  provided that, for purposes of granting  awards other
than Incentive  Stock  Options,  Fair Market Value of the shares of Stock may be
determined by the Committee by reference to the average market value  determined
over a period certain or as of specified  dates, to a tender offer price for the
shares of Stock (if  settlement of an award is triggered by such an event) or to
any other reasonable measure of fair market value.
 
                  (k)......"Incentive  Stock  Option"  means an incentive  stock
option, as defined in Code Section 422, described in Plan Section 3.2.
 
                  (l)......"Non-Qualified  Stock  Option"  means a stock option,
other than an option qualifying as an Incentive Stock Option,  described in Plan
Section 3.2.
 
                  (m)......"Option"  means a  Non-Qualified  Stock  Option or an
Incentive Stock Option.
 
                  (n)......"Over  10% Owner" means an individual who at the time
an Incentive Stock Option is granted owns Stock  possessing more than 10% of the
total  combined   voting  power  of  the  Company  or  one  of  its  Parents  or
Subsidiaries,  determined  by applying  the  attribution  rules of Code  Section
424(d).
 
                  (o)......"Parent"   means  any  corporation  (other  than  the
Company) in an unbroken chain of  corporations  ending with the Company if, with
respect to Incentive Stock Options,  at the time of granting of the Option, each
of the corporations  other than the Company owns stock possessing 50% or more of
the total  combined  voting  power of all  classes  of stock in one of the other
corporations in the chain.
 
                  (p)......"Participant"  means an  individual  who  receives  a
Stock Incentive hereunder.
 
                  (q)......"Performance Unit Award" refers to a performance unit
award  described in Plan Section 3.6.
 
                  (r)......"Phantom  Shares"  refers to the rights  described in
Plan Section 3.7.
 
                  (s)......"Plan"  means  the  Ruby  Tuesday,  Inc.  1996  Stock
Incentive  Plan;  provided,  however,  that in the  event  that the  Company  is
replaced by a successor in interest,  the title of the Plan shall  thereafter be
the name of the  successor  in  interest  followed  by the  phrase  `1996  Stock
Incentive Plan'."
 
                  (t)......"Stock"  means the Company's  common stock,  $.01 par
value.
 
                  (u)......"Stock Appreciation Right" means a stock appreciation
right described in Plan Section 3.3.
 
                  (v)......"Stock  Award" means a stock award  described in Plan
Section 3.4.
 
                  (w)......"Stock   Incentive   Agreement"  means  an  agreement
between the Company and a Participant or other documentation evidencing an award
of a Stock Incentive.
 
                  (x)......"Stock  Incentive  Program"  means a written  program
established  by the  Committee  pursuant to which Stock  Incentives,  other than
Options or Stock  Appreciation  Rights, are awarded under the Plan under uniform
terms,  conditions  and  restrictions  set  forth in such  written  program  and
distributed among eligible officers, employees and directors.
 
                  (y)......"Stock  Incentives"  means,  collectively,   Dividend
Equivalent  Rights,  Incentive  Stock  Options,   Non-Qualified  Stock  Options,
Performance Unit Awards,  Phantom Shares,  Stock  Appreciation  Rights and Stock
Awards.
 
                  (z)......"Subsidiary"  means any  corporation  (other than the
Company) in an unbroken  chain of  corporations  beginning  with the Company if,
with  respect to  Incentive  Stock  Options,  at the time of the granting of the
Option, each of the corporations other than the last corporation in the unbroken
chain owns stock  possessing 50% or more of the total  combined  voting power of
all classes of stock in one of the other corporations in the chain.
 
                  (aa)....."Termination  of Service"  means the  termination  of
either  the  employee-employer  or  director  relationship,  as the case may be,
between a Participant and the Company and its affiliates, regardless of the fact
that severance or similar payments are made to the Participant,  for any reason,
including,  but  not  by  way  of  limitation,  a  termination  by  resignation,
discharge, death, Disability or retirement. The Committee shall, in its absolute
discretion,  determine  the effect of all  matters  and  questions  relating  to
Termination of Service, including, but not by way of limitation, the question of
whether a leave of absence  constitutes a Termination  of Service,  or whether a
Termination of Service is for Cause.
 
 
                       SECTION 2 THE STOCK INCENTIVE PLAN
 
         2.1......Purpose  of the  Plan.  The Plan is  intended  to (a)  provide
incentive to officers, employees and directors of the Company and its affiliates
to stimulate  their efforts  toward the continued  success of the Company and to
operate and manage the business in a manner that will provide for the  long-term
growth and  profitability  of the  Company;  (b)  encourage  stock  ownership by
officers,  employees and  directors by providing  them with a means to acquire a
proprietary  interest in the Company by acquiring  shares of Stock or to receive
compensation  which is based upon  appreciation  in the value of Stock;  and (c)
provide a means of obtaining and rewarding key personnel.
 
         2.2......Stock Subject to the Plan. Subject to adjustment in accordance
with Section 5.2,  6,000,000  shares of Stock (the  `Maximum  Plan  Shares') are
hereby reserved  exclusively for issuance  pursuant to Stock  Incentives.  At no
time shall the Company have  outstanding  Stock  Incentives  and shares of Stock
issued in respect of Stock Incentives in excess of the Maximum Plan Shares.  The
shares of Stock attributable to the nonvested, unpaid, unexercised,  unconverted
or  otherwise  unsettled  portion of any Stock  Incentive  that is  forfeited or
cancelled or expires or terminates for any reason without becoming vested, paid,
exercised,  converted or otherwise  settled in full shall again be available for
purposes of the Plan.  Notwithstanding  any other  provision  in the Plan,  five
percent (5%) of the shares of Stock reserved for issuance hereunder,  subject to
adjustment  in  accordance  with Section 5.2, may be granted  hereafter  without
regard to those  provisions  of the Plan that became  effective on September 30,
1999.
 
         2.3......Administration  of the Plan. The Plan shall be administered by
the  Committee.  The Committee  shall have full  authority in its  discretion to
determine the officers, employees and directors of the Company or its affiliates
to whom Stock  Incentives shall be granted and the terms and provisions of Stock
Incentives,  subject to the Plan.  Subject to the  provisions  of the Plan,  the
Committee  shall have full and  conclusive  authority to interpret  the Plan; to
prescribe,  amend and rescind  rules and  regulations  relating to the Plan;  to
determine the terms and provisions of the respective Stock Incentive  Agreements
or Stock Incentive  Programs and to make all other  determinations  necessary or
advisable  for  the  proper   administration   of  the  Plan.  The   Committee's
determinations  under  the  Plan  need  not be  uniform  and  may be  made by it
selectively among persons who receive, or are eligible to receive,  awards under
the Plan (whether or not such persons are similarly  situated).  The Committee's
decisions shall be final and binding on all Participants.
 
         As to any  matter  involving  a  Participant  who  is not a  "reporting
person"  for  purposes  of Section 16 of the  Securities  Exchange  Act of 1934,
Committee may delegate to any member of the Board of Directors or officer of the
Company the  administrative  authority to (a)  interpret  the  provisions of the
Participant's Stock Incentive Agreement and (b) determine the treatment of Stock
Incentives upon a Termination of Service, as contemplated by Plan Section 3.8.
 
         The  Committee  shall  consist of at least two  members of the Board of
Directors each of whom shall qualify as a "disinterested  person," as defined in
Rule 16b-3 as promulgated  under the  Securities  Exchange Act of 1934 and as an
"outside   director,"  within  the  meaning  of  Code  Section  162(m)  and  the
regulations promulgated thereunder. The Board of Directors may from time to time
remove members from or add members to the Committee.  Vacancies on the Committee
shall be filled by the Board of Directors.
 
         2.4......Eligibility  and Limits.  Effective  September 30, 1999, Stock
Incentives  may be granted only to  officers,  directors,  and  employees of the
Company or an affiliate;  provided,  however,  that directors of the Company who
are not also  employees  of either  the  Company  or an  affiliate  shall not be
eligible to receive  Stock  Incentives  under the Plan. In the case of Incentive
Stock  Options,  the aggregate  Fair Market Value  (determined as at the date an
Incentive  Stock Option is granted) of stock with respect to which stock options
intended to meet the requirements of Code Section 422 become exercisable for the
first  time by an  individual  during any  calendar  year under all plans of the
Company and its Parents and  Subsidiaries  shall not exceed  $100,000;  provided
further, that if the limitation is exceeded, the Incentive Stock Option(s) which
cause the  limitation  to be exceeded  shall be treated as  Non-Qualified  Stock
Option(s).  To the extent required under Code Section 162(m) and the regulations
issued thereunder for compensation to be treated as qualified  performance-based
compensation,  the  maximum  number  of shares of Stock  with  respect  to which
Options or Stock  Appreciation  Rights may be granted  during any single  fiscal
year of the Company to any  Participant who is a "covered  employee"  within the
meaning of Code Section  162(m) and the  regulations  promulgated  thereunder (a
"Covered Employee"), shall not exceed 250,000.
 
 
                       SECTION 3 TERMS OF STOCK INCENTIVES
 
         3.1......Terms and Conditions of All Stock Incentives.
                  --------------------------------------------
 
                  (a)......The  number  of  shares  of Stock as to which a Stock
Incentive  shall be granted  shall be  determined  by the  Committee in its sole
discretion,  subject to the  provisions of Section 2.2 as to the total number of
shares  available for grants under the Plan. If a Stock  Incentive  Agreement so
provides,  a  Participant  may be granted a new  Option to  purchase a number of
shares of Stock equal to the number of previously owned shares of Stock tendered
in  payment of the  Exercise  Price (as  defined  below) for each share of Stock
purchased pursuant to the terms of the Stock Incentive Agreement.
 
                  (b)......Each  Stock Incentive shall be evidenced  either by a
Stock Incentive Agreement in such form and containing such terms, conditions and
restrictions as the Committee may determine is appropriate or be made subject to
the terms of a Stock Incentive  Program,  containing such terms,  conditions and
restrictions as the Committee may determine is appropriate. Each Stock Incentive
Agreement or Stock  Incentive  Program shall be subject to the terms of the Plan
and any provision in a Stock Incentive Agreement or Stock Incentive Program that
is inconsistent with the Plan shall be null and void.
 
                  (c)......The  date a Stock  Incentive is granted  shall be the
date on which the Committee  has approved the terms and  conditions of the Stock
Incentive  Agreement or Stock Incentive Program and has determined the recipient
of the Stock  Incentive and the number of shares covered by the Stock  Incentive
and has taken all such other action necessary to complete the grant of the Stock
Incentive.
 
                  (d)......The  Committee  may  provide  in any Stock  Incentive
Agreement or pursuant to any Stock Incentive Program (or subsequent to the award
of a Stock  Incentive but prior to its expiration or  cancellation,  as the case
may be) that, in the event of a Change in Control,  the Stock Incentive shall or
may be cashed out on the basis of any price not greater  than the highest  price
paid for a share of Stock in any transaction reported by any national securities
exchange  selected  by the  Committee  on which  the  shares  of Stock  are then
actively traded during a specified period immediately preceding or including the
date of the  Change in  Control  or  offered  for a share of Stock in any tender
offer occurring during a specified period immediately preceding or including the
date the  tender  offer  commences;  provided  that,  in no case  shall any such
specified  period  exceed  one (1) year (the  "Change in  Control  Price").  For
purposes  of this  Subsection,  the  cash-out  of a  Stock  Incentive  shall  be
determined as follows:
 
                           (i)      Options  shall be cashed out on the basis of
the excess, if any, of the Change in Control  Price (but not more than  the Fair
Market  Value of the Stock on the date of the cash-out in the case of Incentive
Stock  Options) over the Exercise Price with or without  regard to whether the
Option may otherwise be exercisable only in part;
 
                           (ii)     Stock  Awards and Phantom  Shares shall be
cashed out in an amount equal to the Change in Control Price with or without
regard to any conditions or restrictions otherwise applicable to any such Stock
Incentive; and
 
                           (iii)    Stock  Appreciation  Rights,  Dividend
Equivalent  Rights and Performance Unit Awards  shall  be  cashed  out  with or
without  regard  to any conditions  or restrictions  otherwise applicable to any
such Stock Incentive and the amount of the cash out shall be  determined  by
reference to the number of shares of Stock that would be required to pay the
Participant in kind for the value of the Stock Incentive  as of the date of the
Change in Control  multiplied  by the Change in Control Price.
 
                  (e)......Any Stock Incentive may be granted in connection with
all or any portion of a previously or contemporaneously granted Stock Incentive.
Exercise or vesting of a Stock  Incentive  granted in  connection  with  another
Stock  Incentive  may  result in a pro rata  surrender  or  cancellation  of any
related  Stock  Incentive,  as  specified  in  the  applicable  Stock  Incentive
Agreement or Stock Incentive Program.
 
                  (f)......Stock   Incentives   shall  not  be  transferable  or
assignable  except by will or by the laws of descent and  distribution and shall
be exercisable,  during the Participant's lifetime, only by the Participant;  in
the event of the Disability of the Participant,  by the legal  representative of
the  Participant;  or in the  event  of the  death  of the  participant,  by the
personal   representative  of  the  Participant's   estate  or  if  no  personal
representative has been appointed, by the successor in interest determined under
the Participant's will.
 
         3.2......Terms and Conditions of Options. Each Option granted under the
Plan shall be evidenced by a Stock Incentive  Agreement.  At the time any Option
is  granted,  the  Committee  shall  determine  whether  the  Option is to be an
Incentive Stock Option or a Non-Qualified  Stock Option, and the Option shall be
clearly  identified  as  to  its  status  as  an  Incentive  Stock  Option  or a
Non-Qualified Stock Option. At the time any Incentive Stock Option is exercised,
the Company shall be entitled to place a legend on the certificates representing
the shares of Stock purchased pursuant to the Option to clearly identify them as
shares of Stock  purchased  upon  exercise  of an  Incentive  Stock  Option.  An
Incentive  Stock  Option  may only be  granted  within  ten (10)  years from the
earlier of the date the Plan, as amended and restated, is adopted or approved by
the Company's stockholders.
 
                  (a)      Option Price.
                           ------------
 
                           (i)      Subject to adjustment in accordance  with
Section 5.2 and the other  provisions of this  Section 3.2, the  exercise  price
(the "Exercise  Price") per share of Stock purchasable under any Option shall be
as set forth in the applicable Stock Incentive  Agreement.  With respect to each
grant of an Option to a  Participant,  the Exercise Price per share shall not be
less  than  its  Fair   Market   Value  on  the  date  the  Option  is  granted.
Notwithstanding the immediately  preceding sentence,  with respect to each grant
of an Incentive  Stock  Option to a  Participant  who is an Over 10% Owner,  the
Exercise Price per share shall not be less than 110% of its Fair Market Value on
the date the Option is granted.
 
                           (ii)     For purposes of this Section  3.2(a),  the
Fair Market Value of the Stock shall be determined (1) as of the date all of the
material  terms of an Option are  determinable,  or (2) if the Option is awarded
pursuant  to a  formula  under  a  then  existing  program  established  by  the
Committee,  as of a date no  earlier  than the later of sixty (60) days prior to
the date all of the material terms of the Option are  determinable or sixty (60)
days following the date the program is established.
 
                           (iii)    Notwithstanding  any other provision of this
Section 3.2(a),  the Committee may continue to maintain the existing  Management
Stock Option Program as in effect on September 30, 1999 or in any modified form;
provided,  however,  that no such modified form shall contain pricing terms more
favorable than those as in effect under the  Management  Stock Option Program on
September 30, 1999.
 
                           (iv)     Notwithstanding  any other provision  in the
Plan, following the grant of an Option, no amendment shall be made to reduce the
price of the Option,  except an adjustment as described in Section 5.2,  without
the prior approval of the stockholders of the Company.
 
                  (a) Option  Term.  The term of an Option shall be as specified
in  the  applicable  Stock  Incentive  Agreement;  provided,  however  that  any
Incentive  Stock Option  granted to a  Participant  who is not an Over 10% Owner
shall not be  exercisable  after the expiration of ten (10) years after the date
the Option is granted  and any  Incentive  Stock  Option  granted to an Over 10%
Owner shall not be exercisable  after the expiration of five (5) years after the
date the Option is granted.
 
                  (b)......Payment.  Payment  for all shares of Stock  purchased
pursuant to exercise of an Option shall be made in any form or manner authorized
by the  Committee in the Stock  Incentive  Agreement  or by  amendment  thereto,
including,  but not  limited  to,  cash or,  if the  Stock  Incentive  Agreement
provides,  (i) by  delivery  to the Company of a number of shares of Stock which
have been owned by the  holder for at least six (6) months  prior to the date of
exercise  having an aggregate  Fair Market Value of not less than the product of
the Exercise Price multiplied by the number of shares the Participant intends to
purchase upon exercise of the Option on the date of delivery; (ii) in a cashless
exercise  through  a  broker;  or (iii) by  having a number  of  shares of Stock
withheld,  the  Fair  Market  Value  of  which  as of the  date of  exercise  is
sufficient to satisfy the Exercise Price. In its discretion,  the Committee also
may authorize (at the time an Option is granted or thereafter) Company financing
to assist the  Participant  as to payment of the Exercise Price on such terms as
may be offered by the Committee in its discretion.  Payment shall be made at the
time that the Option or any part  thereof is  exercised,  and no shares shall be
issued or delivered  upon exercise of an option until full payment has been made
by the  Participant.  The holder of an Option,  as such,  shall have none of the
rights of a stockholder.
 
                  (c)......Conditions  to the Exercise of an Option. Each Option
granted under the Plan shall be exercisable  by whom, at such time or times,  or
upon  the  occurrence  of such  event or  events,  and in such  amounts,  as the
Committee shall specify in the Stock  Incentive  Agreement;  provided,  however,
that  subsequent to the grant of an Option,  the  Committee,  at any time before
complete  termination of such Option,  may accelerate the time or times at which
such Option may be exercised in whole or in part, including, without limitation,
upon a Change in Control and may permit the Participant or any other  designated
person to exercise the Option,  or any portion  thereof,  for all or part of the
remaining  Option term  notwithstanding  any  provision  of the Stock  Incentive
Agreement to the contrary.
 
                  (d)......Termination  of Incentive Stock Option.  With respect
to an Incentive  Stock Option,  in the event of the  Termination of Service of a
Participant,  the Option or portion  thereof  held by the  Participant  which is
unexercised shall expire,  terminate, and become unexercisable no later than the
expiration  of three  (3)  months  after  the date of  Termination  of  Service;
provided,  however, that in the case of a holder whose Termination of Service is
due to death or Disability, one (1) year shall be substituted for such three (3)
month period. For purposes of this Subsection (e), Termination of Service of the
Participant  shall not be deemed to have occurred if the Participant is employed
by another  corporation  (or a parent or  subsidiary  corporation  of such other
corporation)  which has assumed the Incentive Stock Option of the Participant in
a transaction to which Code Section 424(a) is applicable.
 
                  (e)......Special  Provisions for Certain  Substitute  Options.
Notwithstanding  anything to the contrary in this Section 3.2, any Option issued
in  substitution  for an option  previously  issued  by  another  entity,  which
substitution  occurs in  connection  with a  transaction  to which Code  Section
424(a) is  applicable,  may provide for an exercise price computed in accordance
with such Code Section and the regulations thereunder and may contain such other
terms and  conditions as the  Committee  may prescribe to cause such  substitute
Option to contain as nearly as possible the same terms and conditions (including
the applicable  vesting and  termination  provisions) as those  contained in the
previously issued option being replaced thereby.
 
         3.3......Terms and Conditions of Stock Appreciation  Rights. Each Stock
Appreciation  Right  granted  under  the  Plan  shall  be  evidenced  by a Stock
Incentive  Agreement.  A Stock  Appreciation  Right may be granted in connection
with all or any  portion of a  previously  or  contemporaneously  granted  Stock
Incentive or not in  connection  with a Stock  Incentive.  A Stock  Appreciation
Right shall entitle the Participant to receive the excess of (a) the Fair Market
Value of a specified or  determinable  number of shares of the Stock at the time
of payment or exercise  over (b) a specified  price (i) which,  in the case of a
Stock Appreciation Right granted in connection with an Option, shall be not less
than the Exercise Price for that number of shares and (ii) which, in the case of
a Stock  Appreciation  Right  that is  granted  to a  Participant  who is then a
Covered  Employee,  shall not be less than the Fair Market Value of the Stock at
the time of the award. A Stock  Appreciation  Right granted in connection with a
Stock  Incentive  may only be  exercised  to the extent that the  related  Stock
Incentive has not been exercised,  paid or otherwise settled.  The exercise of a
Stock  Appreciation  Right granted in connection  with a Stock  Incentive  shall
result in a pro rata surrender or cancellation of any related Stock Incentive to
the extent the Stock Appreciation Right has been exercised.
 
                  (a)......Settlement.  Upon settlement of a Stock  Appreciation
Right,  the Company shall pay to the  Participant  the  appreciation  in cash or
shares  of Stock  (valued  at the  aggregate  Fair  Market  Value on the date of
payment or exercise)  as provided in the Stock  Incentive  Agreement  or, in the
absence of such provision, as the Committee may determine.
 
                  (b)......Conditions to Exercise. Each Stock Appreciation Right
granted under the Plan shall be exercisable or payable at such time or times, or
upon  the  occurrence  of such  event or  events,  and in such  amounts,  as the
Committee shall specify in the Stock  Incentive  Agreement;  provided,  however,
that subsequent to the grant of a Stock  Appreciation  Right, the Committee,  at
any time before  complete  termination  of such Stock  Appreciation  Right,  may
accelerate  the time or times at which  such  Stock  Appreciation  Right  may be
exercised or paid in whole or in part.
 
         3.4      Terms and Conditions of Stock Awards.
                  ------------------------------------
 
                  (a)  .....The  number of shares  of Stock  subject  to a Stock
Award and  restrictions  or conditions on such shares,  if any,  shall be as the
Committee determines, and the certificate for such shares shall bear evidence of
any restrictions or conditions. Subsequent to the date of the grant of the Stock
Award,  the  Committee  shall have the power to permit,  in its  discretion,  an
acceleration of the expiration of an applicable  restriction period with respect
to  any  part  or all  of  the  shares  awarded  to a  Participant.  Subject  to
Subsections (b) and (c) below, the Committee may require a cash payment from the
Participant  in an amount no greater than the aggregate Fair Market Value of the
shares of Stock  awarded  determined  at the date of grant in  exchange  for the
grant of a Stock Award or may grant a Stock Award without the  requirement  of a
cash payment.
 
                  (b)......Any Stock Award containing  forfeitability provisions
shall vest over a period of no less than three (3) years.
 
         .........(c)......Any  Stock Award that does not contain forfeitability
provisions  shall be  granted  only in lieu of  salary or cash  bonus  otherwise
payable to a  Participant  and may be granted at up to a fifteen  percent  (15%)
discount to the Fair  Market  Value of the Stock as of the date of grant only if
the Stock is subject to material restrictions on transferability.
 
         3.4 Terms and  Conditions  of Dividend  Equivalent  Rights.  A Dividend
Equivalent  Right shall  entitle the  Participant  to receive  payments from the
Company in an amount  determined  by reference to any cash  dividends  paid on a
specified number of shares of Stock to Company stockholders of record during the
period such rights are effective. The Committee may impose such restrictions and
conditions on any Dividend  Equivalent  Right as the Committee in its discretion
shall  determine,  including  the date any such right  shall  terminate  and may
reserve the right to terminate, amend or suspend any such right at any time.
 
                  (a)......Payment.  Payment in respect of a Dividend Equivalent
Right may be made by the  Company  in cash or shares  of Stock  (valued  at Fair
Market  Value  on the  date of  payment)  as  provided  in the  Stock  Incentive
Agreement or, in the absence of such provision, as the Committee may determine.
 
                  (b)......Conditions to Payment. Each Dividend Equivalent Right
granted  under the Plan  shall be  payable  at such  time or times,  or upon the
occurrence of such event or events, and in such amounts,  as the Committee shall
specify in the Stock Incentive  Agreement or Stock Incentive Program;  provided,
however,  that  subsequent  to the grant of a  Dividend  Equivalent  Right,  the
Committee,  at any time before complete  termination of such Dividend Equivalent
Right, may accelerate the time or times at which such Dividend  Equivalent Right
may be paid in whole or in part.
 
         3.5......Terms and Conditions of Performance Unit Awards. A Performance
Unit Award shall entitle the Participant to receive,  at a future date,  payment
of an amount equal to all or a portion of the value of a number of units (stated
in terms of a designated  dollar amount per unit) granted by the Committee,  all
as the  Committee  shall  specify  in the  Stock  Incentive  Agreement  or Stock
Incentive  Program.  At the time of the grant,  the Committee must determine the
base value of each  unit,  the number of units  subject  to a  Performance  Unit
Award, the performance  factors  applicable to the determination of the ultimate
payment  value of the  Performance  Unit Award and the period over which Company
performance  shall be measured.  The Committee may provide for an alternate base
value for each unit under certain specified conditions.
 
                  (a)......Payment.  Payment  in  respect  of  Performance  Unit
Awards  may be made by the  Company  in cash or shares of Stock  (valued at Fair
Market  Value  on the  date of  payment)  as  provided  in the  Stock  Incentive
Agreement or Stock Incentive  Program or, in the absence of such  provision,  as
the Committee may determine.
 
                  (b)......Conditions  to Payment.  Each  Performance Unit Award
granted  under the Plan  shall be  payable  at such  time or times,  or upon the
occurrence of such event or events, and in such amounts,  as the Committee shall
specify in the Stock Incentive  Agreement or Stock Incentive Program;  provided,
however,  that  subsequent  to  the  grant  of a  Performance  Unit  Award,  the
Committee,  at any time before  complete  termination of such  Performance  Unit
Award, may accelerate the time or times at which such Performance Unit Award may
be paid in whole or in part.
 
         3.6......Terms  and Conditions of Phantom Shares.  Phantom Shares shall
entitle the Participant to receive, at a future date, payment of an amount equal
to all or a portion of the Fair  Market  Value of a number of shares of Stock at
the end of a certain  period,  all as the  Committee  shall specify in the Stock
Incentive  Agreement or Stock Incentive  Program.  At the time of the grant, the
Committee  shall  determine  the  factors  which will  govern the portion of the
rights  so  payable,   including,  at  the  discretion  of  the  Committee,  any
performance criteria that must be satisfied as a condition to payment.
 
                  (a)......Payment.  Payment in respect of Phantom Shares may be
made by the Company in cash or shares of Stock  (valued at Fair Market  Value on
the date of  payment)  as provided  in the Stock  Incentive  Agreement  or Stock
Incentive  Program or, in the absence of such  provision,  as the  Committee may
determine.
 
                  (b)......Conditions  to Payment.  Each Phantom  Share  granted
under the Plan shall be payable at such time or times, or upon the occurrence of
such event or events, and in such amounts, as the Committee shall specify in the
Stock Incentive Agreement or Stock Incentive Program;  provided,  however,  that
subsequent to the grant of a Phantom Share,  the  Committee,  at any time before
complete  termination of such Phantom Share, may accelerate the time or times at
which such Phantom Share may be paid in whole or in part.
 
                  3.7......Treatment  of Awards  Upon  Termination  of  Service.
Except as otherwise  provided by Plan Section 3.2(e),  any award under this Plan
to a  Participant  who  suffers  a  Termination  of  Service  may be  cancelled,
accelerated,  paid or continued, as provided in the Stock Incentive Agreement or
Stock Incentive  Program or, in the absence of such provision,  as the Committee
may  determine;  provided  that, a  Participant  who continues in the service of
Morrison Fresh Cooking, Inc. or Morrison Health Care, Inc. immediately following
a spin-off  of either  such  Subsidiary  shall not be deemed to have  incurred a
Termination  of Service  solely by reason of the  spin-off.  The  portion of any
award  exercisable in the event of continuation or the amount of any payment due
under a  continued  award  may be  adjusted  by the  Committee  to  reflect  the
Participant's  period of service from the date of grant  through the date of the
Participant's  Termination  of Service or such  other  factors as the  Committee
determines are relevant to its decision to continue the award.
 
 
                         SECTION 4 RESTRICTIONS ON STOCK
 
         4.1......Escrow of Shares. Any certificates  representing the shares of
Stock issued under the Plan shall be issued in the  Participant's  name, but, if
the Stock Incentive Agreement or Stock Incentive Program so provides, the shares
of  Stock  shall  be  held  by a  custodian  designated  by the  Committee  (the
"Custodian").  Each  applicable  Stock  Incentive  Agreement or Stock  Incentive
Program providing for transfer of shares of Stock to the Custodian shall appoint
the Custodian as the attorney-in-fact for the Participant for the term specified
in the applicable  Stock Incentive  Agreement or Stock Incentive  Program,  with
full power and authority in the Participant's name, place and stead to transfer,
assign and convey to the Company any shares of Stock held by the  Custodian  for
such Participant,  if the Participant forfeits the shares under the terms of the
applicable  Stock  Incentive  Agreement or Stock Incentive  Program.  During the
period  that the  Custodian  holds  the  shares  subject  to this  Section,  the
Participant  shall  be  entitled  to  all  rights,  except  as  provided  in the
applicable Stock Incentive  Agreement or Stock Incentive Program,  applicable to
shares of Stock not so held.  Any dividends  declared on shares of Stock held by
the  Custodian  shall,  as the  Committee  may provide in the  applicable  Stock
Incentive  Agreement  or  Stock  Incentive  Program,  be  paid  directly  to the
Participant  or, in the  alternative,  be  retained by the  Custodian  until the
expiration of the term specified in the applicable Stock Incentive  Agreement or
Stock Incentive Program and shall then be delivered, together with any proceeds,
with the shares of Stock to the Participant or to the Company, as applicable.
 
         4.2......Forfeiture of Shares. Notwithstanding any vesting schedule set
forth in any Stock Incentive  Agreement or Stock Incentive Program, in the event
that the  Participant  violates a  noncompetition  agreement as set forth in the
Stock Incentive  Agreement or Stock Incentive Program,  all Stock Incentives and
shares of Stock  issued to the holder  pursuant to the Plan shall be  forfeited;
provided, however, that the Company shall return to the holder the lesser of any
consideration  paid by the  Participant  in  exchange  for  Stock  issued to the
Participant  pursuant  to the Plan or the then  Fair  Market  Value of the Stock
forfeited hereunder.
 
         4.3......Restrictions  on Transfer.  The Participant shall not have the
right to make or permit to exist any  Disposition  of the shares of Stock issued
pursuant  to the Plan except as  provided  in the Plan or the  applicable  Stock
Incentive Agreement or Stock Incentive Program. Any Disposition of the shares of
Stock issued under the Plan by the  Participant  not made in accordance with the
Plan or the applicable  Stock  Incentive  Agreement or Stock  Incentive  Program
shall be void. The Company shall not  recognize,  or have the duty to recognize,
any Disposition  not made in accordance  with the Plan and the applicable  Stock
Incentive  Agreement or Stock Incentive  Program,  and the shares so transferred
shall  continue  to be  bound by the Plan  and the  applicable  Stock  Incentive
Agreement or Stock Incentive Program.
 
 
                          SECTION 5 GENERAL PROVISIONS
 
         5.1......Withholding.   The   Company   shall   deduct  from  all  cash
distributions under the Plan any taxes required to be withheld by federal, state
or local  government.  Whenever the Company  proposes or is required to issue or
transfer  shares of Stock under the Plan or upon the vesting of any Stock Award,
the  Company  shall  have the right to  require  the  recipient  to remit to the
Company an amount sufficient to satisfy any federal, state and local withholding
tax  requirements  prior to the delivery of any certificate or certificates  for
such  shares or the  vesting  of such Stock  Award.  A  Participant  may pay the
withholding  tax in cash, or, if the  applicable  Stock  Incentive  Agreement or
Stock Incentive Program provides,  a Participant may elect to have the number of
shares of Stock he is to receive  reduced by, or with  respect to a Stock Award,
tender back to the Company,  the smallest number of whole shares of Stock which,
when multiplied by the Fair Market Value of the shares of Stock determined as of
the Tax Date (defined below), is sufficient to satisfy federal, state and local,
if any,  withholding taxes arising from exercise or payment of a Stock Incentive
(a "Withholding  Election").  A Participant may make a Withholding Election only
if both of the following conditions are met:
 
                  (a)......The  Withholding Election must be made on or prior to
the date on which the amount of tax required to be withheld is  determined  (the
"Tax Date") by  executing  and  delivering  to the Company a properly  completed
notice of Withholding Election as prescribed by the Committee; and
 
                  (b)......Any  Withholding  Election made will be  irrevocable;
however, the Committee may in its sole discretion  disapprove and give no effect
to the Withholding Election.
 
         5.2......Changes in Capitalization; Merger; Liquidation.
                  ----------------------------------------------
 
                  (a)......The  number of shares of Stock reserved for the grant
of Options, Dividend Equivalent Rights, Performance Unit Awards, Phantom Shares,
Stock  Appreciation  Rights  and  Stock  Awards;  the  number of shares of Stock
reserved  for  issuance  upon the exercise or payment,  as  applicable,  of each
outstanding Option,  Dividend Equivalent Right,  Performance Unit Award, Phantom
Share and Stock Appreciation Right and upon vesting or grant, as applicable,  of
each  Stock  Award;  the  Exercise  Price  of each  outstanding  Option  and the
specified  number  of  shares  of  Stock  to  which  each  outstanding  Dividend
Equivalent Right,  Phantom Share and Stock  Appreciation Right pertains shall be
proportionately  adjusted  for any  increase or decrease in the number of issued
shares of Stock  resulting  from a subdivision  or  combination of shares or the
payment  of an  ordinary  stock  dividend  in  shares  of  Stock to  holders  of
outstanding  shares of Stock or any other  increase or decrease in the number of
shares of Stock  outstanding  effected  without receipt of  consideration by the
Company.
 
                  (b)......In   the   event   of  any   merger,   consolidation,
extraordinary dividend (including a spin-off), reorganization or other change in
the  corporate  structure of the Company or its Stock or tender offer for shares
of Stock, the Committee, in its sole discretion,  may make such adjustments with
respect  to  awards  and  take  such  other  action  as it  deems  necessary  or
appropriate  to  reflect  or in  anticipation  of  such  merger,  consolidation,
extraordinary dividend,  reorganization,  other change in corporate structure or
tender offer, including, without limitation, the substitution of new awards, the
termination or adjustment of outstanding  awards,  the acceleration of awards or
the removal of restrictions on outstanding  awards.  Any adjustment  pursuant to
this Section 5.2 may provide, in the Committee's discretion, for the elimination
without payment  therefor of any fractional  shares that might otherwise  become
subject to any Stock Incentive.
 
                  (c)......The  existence  of the Plan and the Stock  Incentives
granted  pursuant  to the Plan shall not affect in any way the right or power of
the   Company   to  make  or   authorize   any   adjustment,   reclassification,
reorganization or other change in its capital or business structure,  any merger
or consolidation of the Company,  any issue of debt or equity  securities having
preferences or priorities as to the Stock or the rights thereof, the dissolution
or  liquidation  of the Company,  any sale or transfer of all or any part of its
business or assets, or any other corporate act or proceeding.
 
         5.3......Cash  Awards.  The  Committee  may,  at  any  time  and in its
discretion,  grant to any holder of a Stock  Incentive the right to receive,  at
such times and in such amounts as determined by the Committee in its discretion,
a cash amount which is intended to reimburse such person for all or a portion of
the  federal,  state and  local  income  taxes  imposed  upon  such  person as a
consequence  of the  receipt of the Stock  Incentive  or the  exercise of rights
thereunder.
 
         5.4......Compliance  with  Code.  All  Incentive  Stock  Options  to be
granted  hereunder  are  intended  to comply  with  Code  Section  422,  and all
provisions of the Plan and all Incentive Stock Options  granted  hereunder shall
be construed in such manner as to effectuate that intent.
 
         5.5......Right  to  Terminate  Service.  Nothing  in the Plan or in any
Stock  Incentive  Agreement  or Stock  Incentive  Program  shall confer upon any
Participant  the right to  continue as an  employee,  officer or director of the
Company or any of its  affiliates  or affect the right of the  Company or any of
its affiliates to terminate the Participant's service at any time.
 
         5.6......Restrictions  on Delivery  and Sale of Shares;  Legends.  Each
Stock  Incentive is subject to the condition  that if at any time the Committee,
in  its  discretion,   shall   determine  that  the  listing,   registration  or
qualification  of the shares covered by such Stock Incentive upon any securities
exchange  or under any state or  federal  law is  necessary  or  desirable  as a
condition of or in connection  with the granting of such Stock  Incentive or the
purchase  or delivery of shares  thereunder,  the  delivery of any or all shares
pursuant to such Stock  Incentive may be withheld unless and until such listing,
registration  or  qualification  shall  have been  effected.  If a  registration
statement is not in effect under the  Securities  Act of 1933 or any  applicable
state  securities  laws  with  respect  to the  shares of Stock  purchasable  or
otherwise deliverable under Stock Incentives then outstanding, the Committee may
require, as a condition of exercise of any Option or as a condition to any other
delivery of Stock pursuant to a Stock  Incentive,  that the Participant or other
recipient of a Stock Incentive represent,  in writing,  that the shares received
pursuant to the Stock Incentive are being acquired for investment and not with a
view to  distribution  and agree that the shares  will not be disposed of except
pursuant to an effective registration  statement,  unless the Company shall have
received  an  opinion  of  counsel  that such  disposition  is exempt  from such
requirement under the Securities Act of 1933 and any applicable state securities
laws.  The Company may include on  certificates  representing  shares  delivered
pursuant  to  a  Stock  Incentive  such  legends   referring  to  the  foregoing
representations  or restrictions or any other applicable  restrictions on resale
as the Company, in its discretion, shall deem appropriate.
 
         5.7......Non-alienation   of  Benefits.   Other  than  as  specifically
provided  with regard to the death of a  Participant,  no benefit under the Plan
shall be subject  in any manner to  anticipation,  alienation,  sale,  transfer,
assignment,  pledge,  encumbrance  or charge;  and any attempt to do so shall be
void.  No such benefit  shall,  prior to receipt by the  Participant,  be in any
manner liable for or subject to the debts, contracts,  liabilities,  engagements
or torts of the Participant.
 
         5.8......Termination  and Amendment of the Plan. The Board of Directors
may, at any time,  amend or  terminate  the Plan without  stockholder  approval;
provided,  however  that the Board of  Directors  shall  condition  any material
amendment  on  the  approval  of  the  stockholders  of  the  Company.  No  such
termination or amendment  without the consent of the holder of a Stock Incentive
shall adversely affect the rights of the Participant under such Stock Incentive.
 
         5.9......Stockholder Approval. The Plan, as amended and restated, shall
be submitted to the stockholders of the Company for their approval within twelve
(12)  months  before or after its  adoption by the Board of  Directors.  If such
approval is not obtained,  any Stock Incentive granted under the Plan as amended
and restated shall be void.
 
         5.10.....Choice of Law.  The laws of the State of Georgia shall  govern
the Plan, to the extent not preempted by federal law.
 
         5.11.....Effective  Date of Plan.  The Plan,  as amended and  restated,
shall become effective upon the date the Plan is approved by the stockholders of
the Company.
 
 
                           RUBY TUESDAY, INC.
 
                           By:__________________________________________________
 
                           Title:_______________________________________________
Attest:
 
------------------------------
Secretary
 
         [CORPORATE SEAL]
 
 
 
 
 
 
                             FIRST AMENDMENT TO THE
                          RESTATED (SEPTEMBER 30, 1999)
                  RUBY TUESDAY, INC. 1996 STOCK INCENTIVE PLAN
 
 
         THIS FIRST  AMENDMENT is made as of October 5, 2000,  by RUBY  TUESDAY,
INC.,  a  corporation  organized  and  existing  under  the laws of the State of
Georgia (hereinafter called the "Company").
 
 
                              W I T N E S S E T H:
 
 
         WHEREAS,  the  Company  maintains  the Ruby  Tuesday,  Inc.  1996 Stock
Incentive Plan (the "Plan"), restated as of September 30, 1999.
 
         WHEREAS,  as a result of the  two-for-one  stock split  effected by the
Company as of May 19,  2000,  the total  number of shares  reserved for issuance
pursuant to the Plan is now 12,000,000.
 
         WHEREAS, the Company wishes to amend the Plan primarily to increase the
per  employee  limit on the  number of shares of stock  that may be  subject  to
options or stock  appreciation  rights granted to a single  employee  during any
fiscal year of the Company.
 
         WHEREAS,  the Board of Directors  of the Company has duly  approved and
authorized this amendment to the Plan.
 
         NOW, THEREFORE,  the Company does hereby amend the Plan, effective upon
approval of the Company's  shareholders at the Company's fiscal year 2000 Annual
Meeting of  Shareholders,  by deleting  the last  sentence of Section 2.4 in its
entirety and by substituting therefor the following:
 
         "To the extent  required under Code Section 162(m) and the  regulations
         issued   thereunder  for   compensation  to  be  treated  as  qualified
         performance-based  compensation,  the maximum number of shares of Stock
         with  respect to which  Options  and Stock  Appreciation  Rights may be
         granted during any fiscal year of the Company to any Participant who is
         an employee (a "Covered  Employee") may not exceed 750,000,  subject to
         adjustment in accordance with Section 5.2. In applying this limitation,
         if an Option  or Stock  Appreciation  Right,  or any  portion  thereof,
         granted to an employee is cancelled  or repriced  for any reason,  then
         the shares of Stock  attributable  to such  cancellation  or  repricing
         either shall continue to be counted as an outstanding grant or shall be
         counted  as a new  grant,  as the  case  may be,  against  the  Covered
         Employee's individual limit for the applicable fiscal year."
 
         The adoption of the First  Amendment is  conditioned  upon, and subject
to, the approval of the First Amendment by the stockholders of the Company
 
                  Except as specifically  provided herein, the Plan shall remain
in full force and effect as prior to this First Amendment.
 
         IN WITNESS  WHEREOF,  the Company has caused this First Amendment to be
executed on the day and year first above written.
 
                                 RUBY TUESDAY, INC.
 
                                 By:  ______________________________________
                                 Samuel E. Beall, III
                                 Chairman and Chief Executive Officer
 
Attest:
 
By: _______________________________
         Daniel T. Cronk
Secretary
 
         [CORPORATE SEAL]
 
 
</TEXT>
</DOCUMENT>