Document:

RYAN'S FAMILY STEAK HOUSES, INC.

                      2002 STOCK OPTION PLAN

                    Effective as of May 1, 2002

                 RYAN'S FAMILY STEAK HOUSES, INC.

                      2002 STOCK OPTION PLAN

     1.  PURPOSE

     The  purpose  of the Ryan's Family Steak Houses,  Inc.  Stock
Option   Plan   (the  "Plan")  is  to  promote  the   growth   and
profitability of Ryan's Family Steak Houses, Inc. (the  "Company")
and  its  subsidiaries from time to time (the  "Subsidiaries")  by
increasing  the  personal participation of key  personnel  in  the
continued  growth  and financial success of the  Company  and  the
Subsidiaries  by  enabling the Company  and  the  Subsidiaries  to
attract and retain key personnel of outstanding competence and  by
providing  such  key personnel with an equity opportunity  in  the
Company.  This purpose will be achieved through the grant of stock
options ("Options") to purchase shares of the common stock of  the
Company.

     2.  ADMINISTRATION

     The  Plan shall be administered by the Compensation Committee
of   the   Company's   Board  of  Directors   (the   "Compensation
Committee");   provided,  however,  that,  if   the   Compensation
Committee includes members who are not "outside directors" (within
the  meaning  of  Section 162(m) of the Internal Revenue  Code  of
1986,   as  amended  (the  "Code"),  or  any  successor  provision
("Section  162(m)"))  or  "non-employee  directors"  (within   the
meaning  of  Rule 16b-3 promulgated under the Securities  Exchange
Act  of 1934 ("Rule 16b-3")) the Plan shall be administered  by  a
special  committee of the Board of Directors that  includes  those
members  of  the Company's Compensation Committee (not  less  than
two) who are "outside directors" and "non-employee directors." The
administering  committee  shall  be  referred  to  herein  as  the
"Committee." The Committee shall have complete authority  to:  (i)
interpret  all  terms and provisions of the Plan  consistent  with
law;  (ii) select from the group of those individuals eligible  to
participate in the Plan the key personnel to whom Options shall be
granted; (iii) within the limits established herein, determine the
number  of  shares to be subject to and the term  of  each  Option
granted  to  each of such personnel; (iv) prescribe  the  form  of
instrument(s)  evidencing Options granted under  this  Plan;   (v)
determine  the  time or times at which Options shall  be  granted;
(vi)  make  special  grants  of  Options  when  determined  to  be
appropriate;  (vii) provide, if appropriate, for the  exercise  of
Options  in  installments and/or subject to specified  conditions;
(viii)  determine the method of exercise of Options granted  under
the  Plan; (ix) determine any other terms and conditions to  which
Options shall be subject, so long as such terms and conditions are
not  inconsistent  with this Plan; (x) adopt,  amend  and  rescind
general   and  special  rules  and  regulations  for  the   Plan's
administration;  and (xi) make all other determinations  necessary
or advisable for the administration of this Plan.
     Any  action which the Committee is authorized to take may  be
taken without a meeting if all the members of the Committee sign a
written  document  authorizing such action  to  be  taken,  unless
different  provision is made by the Bylaws of the  Company  or  by
resolution of the Committee.
     The Committee may designate selected Board members or certain
employees  of  the  Company  to  assist  the  Committee   in   the
administration of the Plan and may grant authority to such persons
to execute documents including Options on behalf of the Committee;
subject  in each such case to the requirements of Rule  16b-3  and
Section 162(m).
     No  member  of  the  Board or Committee or  employee  of  the
Company assisting the Board or Committee pursuant to the preceding
paragraph  shall  be liable for any action taken or  determination
made in good faith.
     3.  ELIGIBILITY  AND  FACTORS TO BE  CONSIDERED  IN  GRANTING
OPTIONS

           Participation in this Plan shall be determined  by  the
Committee  and  (other than grants pursuant to Section  5  hereof)
shall  be  limited to those key personnel, who may or may  not  be
officers or members of the Board of Directors, of the Company  and
the  Subsidiaries  who have the greatest impact on  the  Company's
long-term performance. In making any determination as to  the  key
personnel to whom Options shall be granted and as to the number of
shares  to  be  subject  thereto, the Committee  shall  take  into
account,  in  each  case,  the level  and  responsibility  of  the
position, performance, compensation, assessed potential  and  such
other  factors  as  the  Committee  shall  deem  relevant  to  the
accomplishment of the purposes of the Plan.
     Directors of the Company or any Subsidiary who are  not  also
employees  of  the Company or any Subsidiary are not  eligible  to
participate  in  this Plan, except pursuant to Section  5  of  the
Plan.   Options may be granted under this Plan only for  a  reason
connected with employment or directorship.

     4. STOCK SUBJECT TO PLAN

      The  stock  to be offered under this Plan, upon exercise  of
Options,  may  be  authorized but unissued common  shares,  shares
previously  issued  and thereafter acquired  by  the  Company  (if
permitted  by  applicable  law), or any combination  thereof.   An
aggregate  of  2,500,000  shares are reserved  for  the  grant  of
Options  under this Plan, any or all of which, at the  Committee's
discretion, may be intended to qualify as incentive stock  options
under  Section 422 of the Code.  The maximum number of  shares  of
the  Company's common stock that may be covered by Options granted
under  the  Plan in any fiscal year of the Company to  any  single
participant  is  100,000. Provided that the  adjustment  does  not
cause   compensation  payable  under  this  Plan   to   lose   its
deductibility under Section 162(m), the maximum number  of  shares
subject to the Plan shall be appropriately adjusted to reflect any
change in the capitalization of the Company resulting from a stock
dividend, stock split, or other adjustment contemplated by Section
15 of this Plan and occurring after the adoption of this Plan.
     If  an Option granted hereunder shall expire or terminate for
any  reason  without having been fully exercised, the  unpurchased
shares  subject thereto shall again be available for the  purposes
of this Plan.
     The  Committee  will maintain records showing the  cumulative
total  of  all  shares subject to Options outstanding  under  this
Plan.

     5.  OPTIONS  FOR  DIRECTORS  WHO  ARE  NEITHER  OFFICERS  NOR
EMPLOYEES

     The grant of Options under this Section 5 shall be limited to
those  directors  of the Company who, on the date  of  grant,  are
neither  officers nor employees of the Company or  any  Subsidiary
(each an "Eligible Director").
     On October 31 of each calendar year (or, if October 31 is not
a  business  day,  the immediately preceding  business  day)  (the
"Grant  Date"), each Eligible Director shall automatically receive
from the Company an option to acquire 5,000 shares of common stock
at  an  exercise price equal to the closing price  of  the  Common
stock  on  the Grant Date.  Each such Option shall be  exercisable
immediately  and  at  any time and from time  to  time  thereafter
(subject to Section 11 hereof) until and including the date  which
is the business day immediately preceding the tenth anniversary of
the  Grant  Date.  Notice of each such Option granted on  a  Grant
Date  shall be given to each Eligible Director within a reasonable
time after the Grant Date. The number of shares subject to Options
granted  under  this Section 5 shall not be subject to  adjustment
pursuant to Section 15., provided, however, that the Committee, in
its  sole  discretion,  may increase or decrease  such  number  of
shares from time to time.
     This  Section 5 may not be amended more frequently than  once
every  six  months,  other than to comport  with  changes  in  the
Internal Revenue Code or the rules and regulations thereunder.

      6. ALLOTMENT OF SHARES

     The  Committee may, in its sole discretion and subject to the
provisions  of  the  Plan, grant to eligible participants,  on  or
after the effective date hereof, Options to purchase shares of the
Company's common stock.  Options granted under this Plan  may,  at
the  discretion  of  the  Committee, be:  (i)  Options  which  are
intended  to qualify as incentive stock options under Section  422
of  the Code (or any successor provision); (ii) Options which  are
not  intended to so qualify under Section 422 of the Code (or  any
successor  provision); or (iii) both of the foregoing  if  granted
separately and not in tandem.  Each Option granted under this Plan
must  be clearly identified as to its status as an incentive stock
option or not.
     Options  may  be  allotted to participants in  such  amounts,
subject  to  the  limitations  specified  in  this  Plan,  as  the
Committee,  in  its  sole  discretion,  may  from  time  to   time
determine.
     In  the  case  of  Options intended  to  be  incentive  stock
options,  the aggregate fair market value (determined at the  time
of  the Options' respective grants) of the shares with respect  to
which  such  Options  are exercisable for  the  first  time  by  a
participant  hereunder during any calendar year (under  all  plans
taken into account pursuant to Section 422(d) of the Code (or  any
successor provision)) shall not exceed $100,000.
     Options  not  intended to qualify as incentive stock  options
under Section 422 of the Code (or any successor provision) may  be
granted to any Plan participant without regard to the Section  422
limitations.

     7. OPTION PRICE

     The  price  per share at which each Option granted under  the
Plan  may  be exercised shall be such price as shall be determined
by  the  Committee at the time of grant based on such criteria  as
may  be adopted by the Committee in good faith; provided, however,
in  no  case shall the exercise price per share be less  than  one
hundred  percent  (100%) of the fair market value  of  the  common
stock  at  the time such Option is granted (or 110% for owners  of
more than 10% of the total combined voting power of all classes of
stock  of  the Company or any Subsidiary). Other than  adjustments
pursuant to Section 15 of this Plan, the price per share at  which
an  Option granted under this Plan may be exercised shall  not  be
changed after the date of grant.
     If the Company's shares of common stock are:
                (1)   actively  traded on any national  securities
     exchange  or  NASDAQ system that reports their sales  prices,
     fair  market value shall be the closing price  per  share  on
     the date the Committee grants the Option;
               (2)  otherwise traded over the counter, fair market
     value  shall be the average of the final bid and asked prices
     for  the shares of the Company's common stock as reported for
     the date the Committee grants the Option; or
                (3)  not traded, the Committee shall consider  any
     factor  or  factors  which it believes  affects  fair  market
     value,  and shall determine fair market value without  regard
     to  any  restriction other than a restriction  which  by  its
     terms will never lapse.

     8. TERM OF OPTION

     The  term  of  each Option granted under the  Plan  shall  be
established by the Committee, but shall not exceed ten (10)  years
(or  five  (5)  years for owners of more than  10%  of  the  total
combined voting power of all classes of stock of the Company or of
a Subsidiary) from the date of the grant.

     9. TIME OF GRANTING OPTIONS

     The  date of grant of an Option under the Plan shall, for all
purposes,   be  the  date  on  which  the  Committee   makes   the
determination   of   granting  such   Option.    Notice   of   the
determination shall be given to each individual to whom an  Option
is  so  granted, within a reasonable time after the date  of  such
grant.

     10. NON-TRANSFERABILITY

     An  Option granted to a participant under this Plan shall not
be  transferable  by  him or her except by will  or  the  laws  of
descent  and distribution or, to the extent not inconsistent  with
the  applicable  provisions of the Code, pursuant  to  a  domestic
relations  order.   In the case of an Option  intended  to  be  an
incentive stock option, such Option shall not be transferable by a
participant  other  than  by  will or  the  laws  of  descent  and
distribution   and  during  the  optionee's  lifetime   shall   be
exercisable only by him or her.

     11. EXERCISE OF OPTIONS

     Subject  to  the provisions of this Plan, an  Option  may  be
exercisable at such time or times after the date of grant thereof,
on such schedule, and upon such conditions as may be determined by
the  Committee  at the time of grant, and an Option granted  under
Section  5  hereof  shall be exercisable in  accordance  with  the
provisions  of  Section  5  hereof.  The  Committee  may,  in  its
discretion, temporarily suspend the exercise of Options from  time
to time for a period not to exceed thirty (30) days.
     Exercisability  of  Incentive  Stock  Options.   Any   Option
granted  under  this  Plan  which is intended  to  qualify  as  an
incentive  stock  option under Section 422 of  the  Code  (or  any
successor provision) (other than an Option granted to a person who
was  an  executive  officer of the Company (as designated  by  the
Board  of  Directors) at the time of the grant of  the  Option  (a
"Grant-Date  Officer")) shall terminate in full  (whether  or  not
previously exercisable) prior to the expiration of its term on the
date  the  optionee ceases to be a director of the Company  or  an
employee  of the Company or any Subsidiary of the Company,  unless
the  optionee shall (a) die while a director of the Company or  an
employee  of  the Company or such Subsidiary, in  which  case  the
participant's  personal  representative  or  representatives   may
exercise all or part of the previously unexercised portion of  the
Option  at any time within one year after the participant's  death
(but no later than the fixed term of the Option) for the number of
shares for which the Option could have been exercised at the  time
the  participant died,  (b) become permanently or totally disabled
within  the  meaning  of Section 22(e)(3)  of  the  Code  (or  any
successor  provision)  while  a director  of  the  Company  or  an
employee  of  the  Company  or a Subsidiary,  in  which  case  the
participant or his or her personal representative may exercise the
previously  unexercised portion of the Option at any  time  within
one   year   after  termination  of  his  or  her  employment   or
directorship (but no later than the fixed term of the Option)  for
the  number  of  shares  for  which the  Option  could  have  been
exercised  at  the  time  the participant terminated  his  or  her
employment  because of becoming permanently or  totally  disabled,
(c)  resign  with the consent of the Company or have  his  or  her
directorship  with the Company or employment with the  Company  or
any Subsidiary terminated by the Company or any Subsidiary for any
reason other than because of an "Immediate Termination Event"  (as
defined  below),  in which case the participant may  exercise  the
previously  unexercised portion of the Option at any  time  within
three  months  after the participant's resignation or  termination
(but no later than the fixed term of the Option) for the number of
shares for which the Option could have been exercised  immediately
prior  to  such  resignation or termination, (d) retire  with  the
consent of the Company after the optionee has reached his  or  her
55th  birthday  and   has at least 10 years of  service  with  the
Company  or  any  Subsidiary, in which case  the  participant  may
exercise the previously unexercised portion of such Option at  any
time  prior to the expiration of its fixed term for the number  of
shares  for which the Option could have been exercised immediately
prior  to such retirement, or (e) retire with the consent  of  the
Company  in  any circumstance not covered by the preceding  clause
(d),  in  which  case the participant may exercise the  previously
unexercised  portion of such Option at any time within  two  years
after  the  participant's retirement (but no later than the  fixed
term of the Option)  for the number of shares for which the Option
could have been exercised immediately prior to such retirement.
     Exercisability  of Stock Options other than  Incentive  Stock
Options.  Any Option granted under this Plan which is not intended
to  qualify as an incentive stock option under Section 422 of  the
Code (or any successor provision) (other than an Option granted to
a  Grant-Date  Officer) shall terminate in full  (whether  or  not
previously exercisable) prior to the expiration of its term on the
date  the  optionee ceases to be a director of the Company  or  an
employee  of the Company or any Subsidiary of the Company,  unless
the  optionee shall (a) die while a director of the Company or  an
employee  of  the Company or such Subsidiary, in  which  case  the
participant's  personal  representative  or  representatives   may
exercise all or part of the previously unexercised portion of  the
Option at any time within two years after the participant's  death
(but no later than the fixed term of the Option) for the number of
shares for which the Option could have been exercised at the  time
the  participant died, (b) become permanently or totally  disabled
within  the  meaning  of Section 22(e)(3)  of  the  Code  (or  any
successor  provision)  while  a director  of  the  Company  or  an
employee  of  the  Company  or a Subsidiary,  in  which  case  the
participant or his or her personal representative may exercise the
previously  unexercised portion of the Option at any  time  within
two   years  after  termination  of  his  or  her  employment   or
directorship (but no later than the fixed term of the Option)  for
the  number  of  shares  for  which the  Option  could  have  been
exercised  at  the  time  the participant terminated  his  or  her
employment  because of becoming permanently or  totally  disabled,
(c)  resign  with the consent of the Company or have  his  or  her
directorship  with the Company or employment with the  Company  or
any Subsidiary terminated by the Company or any Subsidiary for any
reason other than because of an "Immediate Termination Event"  (as
defined  below),  in which case the participant may  exercise  the
previously  unexercised portion of the Option at any  time  within
three  months  after the participant's resignation or  termination
(but no later than the fixed term of the Option) for the number of
shares for which the Option could have been exercised  immediately
prior  to  such  resignation or termination, (d) retire  with  the
consent of the Company after the optionee has reached his  or  her
55th  birthday  and   has at least 10 years of  service  with  the
Company  or  any  Subsidiary, in which case  the  participant  may
exercise the previously unexercised portion of such Option at  any
time  prior to the expiration of its fixed term for the number  of
shares  for which the Option could have been exercised immediately
prior  to such retirement, or (e) retire with the consent  of  the
Company  in  any circumstance not covered by the preceding  clause
(d),  in  which  case the participant may exercise the  previously
unexercised  portion of such Option at any time within  two  years
after  the  participant's retirement (but no later than the  fixed
term of the Option)  for the number of shares for which the Option
could have been exercised immediately prior to such retirement.
     Options  to  Grant-Date Officers. In the case  of  an  Option
granted   to  a  Grant-Date  Officer,  the  termination  of   such
participant's  employment for a reason  other  than  an  Immediate
Termination Event (as defined below) shall not affect the term  of
the  Option  and  the Option shall be exercisable  by  the  option
holder  or  his  or her personal representative for its  remaining
term notwithstanding such termination of employment.
     Immediate Termination Event. An "Immediate Termination Event"
means termination of employment or directorship by reason of:  (i)
failure  to  pass a drug test administered by the Company  or  any
Subsidiary; (ii) obvious intoxication on the job or possession  of
any  alcoholic  substance on the premises of the  Company  or  any
Subsidiary;  (iii) misuse of Company or Subsidiary  assets  (which
shall  include  but  not  be  limited to  cash,  inventory  and/or
equipment);   (iv)  gross  misconduct  in  connection   with   the
performance  of  job duties for the Company or any Subsidiary;  or
(v) conviction of a felony or entry of a guilty or nolo contendere
plea  to  a  felony  offense  by the individual.   Notwithstanding
anything  to  the  contrary herein, if a participant  to  whom  an
Option  shall have been granted shall have his or her directorship
with  the  Company or employment with the Company or a  Subsidiary
terminated because of an Immediate Termination Event, all  options
held  by such participant shall terminate in full (whether or  not
previously exercisable) prior to their term on the date  that  the
participant  ceased  to  be  an  employee  of  the  Company  or  a
Subsidiary or a director of the Company.
     No  Exercise After Fixed Term of Option.  In no event may  an
Option be exercised after the expiration of its fixed term.

     12. METHOD OF EXERCISE

     Each Option granted under this Plan shall be deemed exercised
when  the  holder: (a) shall indicate the decision  to  do  so  in
writing  delivered to the Company; (b) shall tender to the Company
payment  in  full  in cash, or in shares of the  Company's  common
stock,  of the exercise price for the shares for which the  Option
is  exercised; (c) shall tender to the Company payment in full  in
cash, or in shares of the Company's common stock, of the amount of
all  federal  and  state  withholding or  other  employment  taxes
applicable to the taxable income, if any, of the holder  resulting
from   such  exercise;  and  (d)  shall  comply  with  such  other
reasonable requirements as the Committee may establish.
     No  person,  estate or other entity shall  have  any  of  the
rights  of  a shareholder with reference to shares subject  to  an
Option until a certificate or certificates for the shares has been
delivered.
     An  Option granted under this Plan may be exercised  for  any
lesser number of shares than the full amount for which it could be
exercised.  Such a partial exercise of an Option shall not  affect
the  right  to exercise the Option from time to time in accordance
with this Plan for the remaining shares subject to the Option.  An
optionee must exercise Options in 100 share increments, unless the
optionee  is exercising Options upon or after termination  of  the
optionee's employment with the Company or a Subsidiary.

     13. CANCELLATION AND REPLACEMENT OF OPTIONS

     The  Committee may, at any time or from time to time,  permit
the  voluntary  surrender by the holder of any outstanding  Option
under  this  Plan  where such surrender is  conditioned  upon  the
granting to such holder of new Option(s) for such number of shares
as  the Committee shall determine, or may require such a voluntary
surrender  as a condition precedent to the grant of new  Option(s)
to such holder.
     The Committee shall determine the terms and conditions of new
Options, including the prices at and periods during which they may
be  exercised, in accordance with the provisions of this Plan, all
or  any  of which may differ from the terms and conditions of  the
Options  surrendered.  Any such new Option(s) shall be subject  to
all  the  relevant provisions of this Plan.  In no event, however,
shall  a  cancellation and regrant be used to effect a "repricing"
that would result in a decrease in the per-share exercise price of
an Option granted under this Plan.
     The  shares subject to any Option(s) so surrendered shall  no
longer be charged against the limitation provided in Section 4  of
this Plan and may again become shares subject to the Plan.
     Except as may be otherwise required under Section 162(m) with
respect to "covered employees" (as defined in Section 162(m)), the
granting  of  new  Option(s) in connection with the  surrender  of
outstanding Option(s) under this Plan shall be considered for  the
purposes  of  the Plan as the grant of new Option(s)  and  not  an
alteration,  amendment  or modification of  the  Plan  or  of  the
Option(s) being surrendered.

     14. TERMINATION OF OPTIONS

     An  Option  granted  under  this  Plan  shall  be  considered
terminated  in whole or in part to the extent that, in  accordance
with  the  provisions of this Plan, it can no longer be  exercised
for  any  shares  originally subject to the  Option.   The  shares
subject to any Option, or portion thereof, which terminates  shall
no longer be charged against the limitation provided in Section  4
of this Plan and may again become shares subject to the Plan.

     15. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION

     In  the  event of a stock dividend, recapitalization, merger,
reorganization, consolidation, stock split, stock consolidation or
any  other  change in the characteristics of the shares of  common
stock,  the shares available for purposes of this Plan or  subject
to   Options   outstanding  hereunder  shall  be   correspondingly
increased,  diminished  or changed, so that  by  exercise  of  any
outstanding  Option the participant shall receive, without  change
in   aggregate  purchase  price,  securities,  as  so   increased,
diminished   or  changed,  (and  other  property,  if  applicable)
comparable to the securities (and property, if applicable)  he  or
she  would  have received if he or she had exercised  his  or  her
Option  prior to such event and had continued to hold  the  common
stock  so  purchased until affected by such event;  provided  with
respect  to  incentive  stock options  that,  in  the  case  of  a
corporate merger, consolidation, acquisition of property or stock,
separation,  reorganization  or liquidation,  the  excess  of  the
aggregate  fair market value of the shares subject to  any  Option
immediately after such event over the aggregate exercise price  of
such  shares  is  not more than the excess of the  aggregate  fair
market  value  of  all  shares subject to the  Option  immediately
before  such  event  over  the aggregate exercise  price  of  such
shares.  The Committee, in its discretion, may elect not  to  make
adjustments  pursuant to this Section 15. to the extent  necessary
to  ensure that compensation payable under this Plan does not lose
its deductibility on account of Section 162(m).
     Adjustments  under  this  Section  shall  be  made   by   the
Committee,  whose  determination as to what adjustments  shall  be
made,  and  the  extent  thereof,  shall  be  final,  binding  and
conclusive.

     16.  COMPLIANCE  WITH SECURITIES AND EXCHANGE COMMISSION  AND
OTHER REQUIREMENTS

     No  certificate(s) for shares shall be executed and delivered
upon exercise of an Option until the Company shall have taken such
action,  if any, as is then required to comply with the provisions
of the Securities Act of 1933, as amended, the Securities Exchange
Act  of  1934,  as amended, the South Carolina Uniform  Securities
Act,  as  amended, any other applicable state blue sky law(s)  and
the  requirements of any exchange or NASDAQ system  on  which  the
common stock of the Company may, at the time, be listed.
     In  the  case  of the exercise of an Option by  a  person  or
estate  acquiring the right to exercise the Option by  bequest  or
inheritance, the Committee may require reasonable evidence  as  to
the  ownership  of  the Option and may require  such  consent  and
releases of taxing authorities as it may deem advisable.

     17. NO RIGHT TO EMPLOYMENT

     Neither  the adoption of the Plan nor its operation, nor  any
document describing or referring to the Plan, or any part thereof,
shall  confer  upon any participant under this Plan any  right  to
continue  in  the employ or as a director of the  Company  or  any
Subsidiary, or shall in any way affect the right and power of  the
Company   or  any  Subsidiary  to  terminate  the  employment   or
directorship of any participant in this Plan at any time  with  or
without  assigning a reason therefore, to the same extent  as  the
Company  or Subsidiary might have done if this Plan had  not  been
adopted.

     18. AMENDMENT AND TERMINATION

     The  Committee  may at any time suspend, amend  or  terminate
this Plan.  The Committee may make such modifications of the terms
and  conditions  of a holder's Option as it shall deem  advisable.
No  Option  may be granted during any suspension of  the  Plan  or
after  such termination.  Notwithstanding the foregoing provisions
of  this  Section, no amendment, suspension or termination  shall,
without  the consent of the holder of an Option, alter  or  impair
any  rights  or  obligations under any Option theretofore  granted
under the Plan.
     In  addition  to Committee approval of an amendment,  if  the
amendment would: (i) materially increase the benefits accruing  to
participants;  (ii)  increase the number  of  securities  issuable
under this Plan (other than an increase merely reflecting a change
in  capitalization such as a stock dividend or stock split); (iii)
change the class of employees eligible to receive Options; or (iv)
otherwise materially modify the requirements for eligibility, then
such  amendment shall be approved by a majority of the  shares  of
the Company's capital stock present and voting either in person or
by  proxy,  and entitled to vote, at a meeting duly  held  of  the
stockholders of the Company.

     19. USE OF PROCEEDS

     The  proceeds received by the Company from the sale of shares
pursuant  to  Options granted under the Plan  shall  be  used  for
general corporate purposes as determined by the Board.

     20. INDEMNIFICATION OF COMMITTEE

     In  addition to such other rights of indemnification as  they
may  have  as  members of the Board, the members of the  Committee
shall,  to the fullest extent permitted by law, be indemnified  by
the  Company against the reasonable expenses, including attorney's
fees,  actually  and necessarily incurred in connection  with  the
defense of any action, suit, investigation or other proceeding, or
in  connection with any appeal therein, to which they  or  any  of
them  may  be a party by reason of any action taken or failure  to
act  under  or  in connection with the Plan or any Option  granted
thereunder,  and  against all amounts paid by them  in  settlement
thereof (provided such settlement is approved by independent legal
counsel  selected by the Company) or paid by them in  satisfaction
of  a  judgment in any such action, suit or proceeding, except  in
relation  to  matters  as to which it shall be  adjudged  in  such
action,  suit  or proceeding that such Board member (or  Committee
member,   as  applicable)  is  liable  for  gross  negligence   or
misconduct in the performance of his or her duties; provided  that
within  60  days  after institution of any such  action,  suit  or
proceeding  the Board member (or Committee member, as  applicable)
shall  in  writing offer the Company the opportunity, at  its  own
expense, to handle and defend the same.

     21. EFFECTIVE DATE OF THE PLAN

     This  Plan  shall  be effective as of May 1,  2002,  subject,
however,  to  approval by the requisite shareholder  vote  at  the
annual  meeting of shareholders of the Company held or to be  held
on or about May 1, 2002.

     22. SECTION 162(m)

     This  Plan  and  its operation are intended  to  satisfy  the
requirements  of  Section 162(m) with respect  to  permitting  the
deductibility  of  compensation for  those  participants  who  are
"covered employees" for purposes of Section 162(m).  In the  event
that  any  provision of this Plan or an Option granted under  this
Plan  does not so satisfy Section 162(m), that provision shall  be
deemed amended to the extent necessary to satisfy Section 162(m).

     23. DURATION OF THE PLAN

     Unless  previously  terminated by the  Committee,  this  Plan
shall terminate at the close of business on April 30, 2012, and no
Option  shall be granted under it thereafter, but such termination
shall not affect any option theretofore granted under the Plan.May 29, 1992

Mr. Eddie Ervin
Family Steak Houses of Florida, Inc.
2113 Florida Blvd.
Neptune Beach, FL  32266

Dear Eddie:

This letter is to serve as an amendment to the franchise
agreement between Ryan's Family Steak Houses, Inc.
("Ryan's") and Family Steak Houses of Florida, Inc.
("Family").  Please review and sign on the last page if
everything is in order.  If you wish to discuss any
specifics, please contact either Charlie Way or myself.  As
always, we look forward to working with you to make Family
and Ryan's the best organizations possible.

With regard to the adjustment of the monthly royalty fee,
both parties agree to the following:

1.   At the beginning of the fiscal month of May (May 7,
     1992) and the acceptance of the terms of this letter, Family
     is authorized to begin the reduction described below in its
     monthly royalty fee payments to Ryan's for sales after May
     7, 1992.  All payments for sales prior to that date will
     still be effective at the five percent rate.

2.   In order for any and all reductions to remain in place
     during the terms of the franchise agreements, Family must
     exclusively purchase those food products approved by Ryan's.
     Any deviation from the approved list must have prior written
     authorization by Ryan's Vice President of Purchasing.  A
     failure to follow this procedure will result in an immediate
     return to the five percent royalty fee.

3.   Based upon the above terms, the applicable royalty fee
     for the fiscal 52 or 53 week period commencing with May 7,
     1992 shall be four and three-quarters percent (4 _%).

4.   As long as the products used by Family continue to be
     approved by Ryan's, there will be a further one-quarter
     percent reduction each succeeding 52 or 53 week period until
     a four percent royalty fee is reached.  From that point, a
     four percent royalty fee will be applicable during the term
     of the franchise agreement.

5.   The five percent royalty fee will be immediately
     reinstated if the product usage and/or approval process is
     not strictly followed by Family as noted in item number 2
     above.

With regard to the number of restaurants that are required
to be opened by fiscal year's end, Ryan's agrees to revise
the current franchise agreement as follows:

                             Cumulative Number of
                             Restaurants Required
     End of Fiscal Year       to be in Operation

          1991                        28
          1992                        28
          1993                        28
          1994                        30
          1995                        32
          1996                        34
          1997                        37
          1998                        40
          1999                        43
          2000                        46
          2001 and subsequent years   50

This revision in the opening schedule is agreed to in order
to allow Family to meet its current and future financial
requirements.  Also, this revision should also allow Family
to remodel its existing restaurants, as well as allow Family
to concentrate its efforts on operations.

Except as herein modified, the franchise agreement currently
in effect between Ryan's and Family shall continue in full
force and effect in accordance with its term and conditions.

After reviewing the above terms, please sign and return.  We
look forward to continuing the excellent relationships that
we have had in the past and assisting you in all means
possible.

Sincerely,

Alvin A. McCall, Jr.
Chairman

Accepted and Agreed:

Family Steak Houses of Florida, Inc.

By:  _______________________________
     Eddie Ervin, Chairman

By:  _______________________________
     Jim Osborn, President

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