# FIFTH AMENDMENT TO THERUBY TUESDAY, INC. STOCK INCENTIVEAND DEFERRED
COMPENSATION PLAN FOR DIRECTORS

THIS
FIFTH AMENDMENT is made this 6th day of July, 2005, by Ruby Tuesday, Inc., a
corporation duly 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. Stock Incentive and Deferred Compensation
Plan for Directors, which is currently maintained under an amended and restated indenture
which became effective as of September 28, 1994 (the Plan); and

WHEREAS,
the Company desires to amend the Plan to modify each Participants Target Ownership
Level; to provide that each Participant must attain his or her Target Ownership Level to
remove transfer restrictions on shares issued upon exercise of Annual Options; to decrease
the number of shares of Company stock subject to an Annual Option; to eliminate all
deferrals of Retainer Compensation to purchase Company stock; and to make other changes as
required by the American Jobs Creation Act of 2004; and

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 as of the date first set
forth above, except as otherwise provided herein, as follows:

1.    
          By adding, effective October 5, 2005, a new Section 1.1(p-1), as follows:

(p-1)       
          Ownership Level Measurement Date means the date of each
          annual shareholders meeting.

2.    
          By adding a new Section 1.1(r-1), as follows:

(r-1)       
          Plan Year means the calendar year.

3.    
          By deleting, effective October 5, 2005, Section 1.1(z) in its entirety and
          substituting therefor the following:

| | (z)       
               Target Ownership Level means the number of shares of Stock
               owned by the Participant with a Fair Market Value at least equal to $250,000 as
               of an Ownership Level Measurement Date. For purposes of this Section 1.1(z),
               Fair Market Value, as defined by Section 1.1(m), shall be modified to mean the
               highest closing price of the Stock for any day during the thirty (30) day period
               ending on the Ownership Level Measurement Date. For purposes of this Section
               1.1(z), a Participant shall be considered to own shares of Stock (i)
               if the Participant has any legal or beneficial interest in the shares of Stock;
               or (ii) if a legal or beneficial interest in the shares of Stock is held by the
               Participants spouse or any child under age 21.
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4.    
          By deleting, effective October 5, 2005, Section 3A.1 in its entirety and
          substituting therefor the following:

| | 3A.1
Grants of Annual Options. Each Participant who is a director and who is not an
employee of the Company shall be granted an Annual Option as of the date of each annual
meeting of the shareholders, if such Participant is elected or re-elected as a director of
the Company at that meeting or otherwise continues to serve as a director of the Company
immediately following that meeting. In the event the number of Maximum Plan Shares,
reduced by the number of such Maximum Plan Shares previously issued or issuable under the
Plan, is insufficient to fund all of the Annual Options to be granted as of any annual
meeting of the shareholders of the Company, then no Annual Options with respect to that
meeting or any subsequent meeting shall be granted unless and until the Plan is amended to
increase the number of Maximum Plan Shares; provided, further, that no Annual Options
shall be granted with respect to annual meetings that take place prior to the effective
date of any such amendment.
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5.    
          By deleting, effective October 5, 2005, the first sentence of the head language
          of Section 3A.2 and substituting therefor the following:

| | An
Annual Option shall represent the right to purchase 8,000 shares of Stock at a per share
exercise price equal to the Fair Market Value of a share of Stock on the date of grant,
which is the date of the annual meeting of the shareholders of the Company for which the
award is made.
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6.    
          By adding, effective October 5, 2005, new Section 3A.4 as follows:

| | 3A.4
Restrictions on Transfer of Annual Option Shares. A Participant may not assign or
transfer, except by will or the laws of descent and distribution, any shares of Stock
attributable to the exercise of an Annual Option granted on or after October 5, 2005,
unless and until the Participant attains the Target Ownership Level as of the Ownership
Level Measurement Date coincident with the grant date of the Annual Option to which the
shares of Stock are attributable or any subsequent Target Ownership Effective Date. If a
Participant attains the Target Ownership Level but then falls below the Target Ownership
Level as of any subsequent Ownership Level Measurement Date, shares of Stock attributable
to the exercise of the Annual Option granted on that date and each subsequent Ownership
Level Measurement Date shall be subject to the transfer restrictions contemplated by this
Section 3A.4 unless and until the Participant again attains the Target Ownership Level.
Transfer restrictions imposed under this Section 3A.4 shall remain in effect until the
earlier of (i) the date they may be removed pursuant to the preceding provisions of this
Section 3A.4 or (ii) the Participants death. Certificates reflecting shares of Stock
issued upon the exercise of any Annual Option shall bear an appropriate legend reflecting
these transfer restrictions, to the extent applicable, as determined by the provisions of
this Section.
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7.    
          By deleting, effective January 1, 2005, Section 4.1 in its entirety and
          substituting therefor the following:

| | 4.1
Deferral to Deferred Compensation Accounts. Each Participant may elect to defer his
or her Nonretainer Compensation and/or Retainer Compensation, each in twenty-five percent
(25%) increments to his or her Deferred Compensation Account. An election to defer
Compensation hereunder shall be in writing and shall be made prior to the first day of
each Plan Year for which such Compensation shall be earned; provided, however, that in the
case of the first year a Participant becomes eligible to defer Compensation hereunder,
such election must be made no later than thirty (30) days following the date the
Participant becomes eligible to participate in the Plan.
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8.    
          By deleting, effective January 1, 2005, the first sentence of Section 4.2 and
          substituting therefor the following:

A
Participant may not revoke or modify an election made pursuant to Plan Section 4.1.

9.    
          By deleting, effective January 1, 2005, Section 5.4 in its entirety and
          substituting therefor the following:

| | 5.4
Distribution of Accounts. Amounts credited to a Participants Deferred
Compensation Account shall be distributed in either a single lump sum or annual
installments (not to exceed five (5)), as designated by the Participant or the Prior
Participant in his or her initial election under the Plan, Prior Plan or Old Plan, as
applicable. A Participants one-time election pursuant to this Plan Section 5.4 must
be made no later than thirty (30) days following the date of the Participants
election pursuant to Plan Section 4.1. A Participant may not revoke or modify an election
made pursuant to this Plan Section 5.4. Distribution of a Deferred Compensation Account
shall be made (in the case of a lump sum payment) or commence (in the case of installment
payments) upon the January 15 or July 15 immediately following the Participants or
the Prior Participants seventieth (70th) birthday, or, if earlier, the
January 15 or July 15 immediately following the date the Participant ceases to be a member
of the Board of Directors. However, if the Participant or Prior Participant so elects in
his or her one-time election under the Plan, Prior Plan or Old Plan, as applicable, the
distribution (in the case of a lump sum payment) or the commencement of the distribution
(in the case of installment payments) of the Participants or Prior
Participants Deferred Compensation Account shall occur on any subsequent January 15
or July 15 in the designated calendar year as the Participant elected in his or her
one-time election. If a Participant elects to have his or her Deferred Compensation
Account distributed in installments, the amount of the first installment shall be a
fraction of the value of the Participants Deferred Compensation Account, the
numerator of which is one and the denominator of which is the total number of installments
elected, and the amount of each subsequent installment shall be a fraction of the value
(including income credited pursuant to Plan Section 5.3) on the date preceding each
subsequent payment, the numerator of which is one and the denominator of which is the
total number of installments elected minus the number of installments previously paid. For
purposes of this Plan Section 5.4, a Participant shall not be considered to have ceased to
be a member of the Board of Directors for any period of time following the effective date
of the Distribution during which the Participant continuously serves as a member of the
board of directors of the Company, MFCI or MHCI.
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9.    
          By adding a new Section 6.7, as follows:

| | 6.7
Cessation of Future Activity. Notwithstanding any other provision of this Section
6, a Participant shall not be able to elect to direct that his or her Retainer
Compensation be paid to purchase shares of Stock pursuant to Plan Section 6.1 nor will a
Participant be granted any Option to purchase a number of shares of Stock pursuant to Plan
Section 6.3 effective for fiscal quarters of the Company beginning on or after August 31,
2005.
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10.    
          By adding, effective January 1, 2005, the following language to the end of
          Section 7.5:

| | No
termination, modification or amendment of the Plan shall accelerate any distribution made
under Section 5.4 of the Plan.
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Except
as specifically amended hereby, the Plan shall remain in full force and effect as prior to
the adoption of this Fifth Amendment.

IN
WITNESS WHEREOF, the Company has caused this Fifth Amendment to be executed on the day and
year first above written.

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[CORPORATE SEAL]

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