Document:

Form of Employee Subscription Agreement of Morton's Holdings, LLC

 Exhibit 10.10 
  
 FORM OF EMPLOYEE SUBSCRIPTION AGREEMENT 
  
 This EMPLOYEE SUBSCRIPTION AGREEMENT (as amended, modified or supplemented from time to time, this
“Agreement”) is dated as of [DATE], by and between Morton’s Holdings, LLC, a Delaware limited liability company (the “LLC” or “Company”), and [NAME], a natural person (the
“Employee”). Capitalized terms used herein but not otherwise defined have the meaning set forth in Section 1 below. 
  
 WHEREAS, the Employee is an employee of the Company or one or more of its Subsidiaries; 
  
 WHEREAS, the parties desire to enter into an agreement regarding the grant by the Company to the Employee of the aggregate
number of the Common Units set forth on Schedule I attached hereto, upon terms and conditions set forth herein; 
  
 WHEREAS, the Common Units granted hereunder by the LLC are pursuant to compensation and incentive arrangements established by the LLC’s Board of
Advisors; 
  
 WHEREAS, the Employee acknowledges and agrees that
the provisions of this Agreement (including, without limitation, Section 5) are material to the LLC and its Subsidiaries and are essential to protect the value of the LLC’s business and assets and that the LLC would not have entered into
this Agreement without such provisions; and 
  
 WHEREAS, with
respect to Employees who are residents of the State of California, the terms of this Agreement shall be deemed modified to reflect the provisions of Appendix I attached hereto. 
  
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
  
 1. Definitions. As used herein, the following terms shall have the following meanings: 
  
 “Affiliate” means, as to any Person, any other Person that
directly or indirectly controls, or is under common control with, or is controlled by, such Person. As used in this definition, “control” (including, with its correlative meanings, “controlled by” and “under common control
with”) means possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise). Solely for
purposes of the definition of “Change in Control”, any Person who is a limited partner of Castle Harlan or any of its Affiliates shall be deemed to be an “Affiliate” of Castle Harlan hereunder. 
  
 “Board of Advisors” means the LLC’s Board of Advisors
(as defined in the LLC Agreement). 
  
 “Castle
Harlan” means Castle Harlan Partners III, L.P., a Delaware limited partnership. 
  
 “Change in Control” means either of the following: (i) a majority of the Board of Advisors shall be comprised of individuals other than designees of Castle Harlan or any of its Affiliates or
(ii) Castle Harlan and its Affiliates (including, without limitation, affiliated management companies and their respective executives and employees), in the aggregate, shall cease to own (beneficially or of record, directly or indirectly)
either (x) if no Qualified Public Offering of Common Units of the LLC (or its successor) has occurred, at least a majority of the voting power of all classes of units (other than the Preferred Units or other preferred units) of the LLC (or its
successor) or (y) if a Qualified Public Offering of Common Units of the LLC (or its successor) has occurred, at least 20% of the voting power of all classes of units (other than the Preferred Units or other preferred units) of the LLC (or its
successor). 
  
  

 “Common Unit” has the meaning set forth in the LLC Agreement. For purposes of this
Agreement, a Person will be deemed to be an owner of Common Units whenever such Person has the right (other than pursuant to this Agreement) to acquire directly or indirectly such Common Units (directly or upon conversion, exchange or exercise in
connection with a transfer of securities or otherwise, but disregarding any restrictions or limitations with respect to the exercise of such right, including whether or not such right to acquire has vested or is unvested), whether or not such
acquisition has actually been effected. Following any Conversion, all references herein to Common Units shall be deemed to be references to common stock (or other primary voting securities) of the Successor Entity or other appropriate references
representing such equity interests. 
  
 “Company”
has the meaning set forth in the introductory paragraph hereof. 
  
 “Company Group” means the LLC and its Subsidiaries, collectively. 
  
 “Conversion” means a substitution of the LLC or a change in the legal status of the LLC (including in connection with a Public Offering) from a limited liability company into a business corporation or
such other form of business organization (the “Successor Entity”) organized under the laws of State of Delaware or one of the other states or territories of the United States of America or the District of Columbia in such form and
manner (including, without limitation, by merger, reorganization, liquidation, transfer of Units or assets of the LLC or any Subsidiary of the LLC, or by any other means permissible under applicable law) and with such classes of stock or other
equity interests having such rights, preferences and other terms as may be approved by the Board of Advisors in accordance with the LLC Agreement. 
  
 “Distribution” means any dividend or other distribution by the LLC to Castle Harlan and/or its Affiliates, in their capacity as
Unitholders of the LLC, of any cash, cash equivalents or marketable securities. 
  
 “Effective Time” means July 25, 2002. 
  
 “Employee” has the meaning set forth in the introductory paragraph hereof. 
  
 “Employee Agreement” means any agreement, arrangement or understanding (including, without limitation, any subscription agreement,
employment agreement, letter or other agreement) between the Employee and the LLC (or any of its Subsidiaries). 
  
 “Employee Securities” means the Common Units acquired pursuant hereto by the Employee and will include Common Units issued with respect
to Employee Securities by way of a split, dividend, distribution, combination, exchange, conversion, or other recapitalization, merger, consolidation or reorganization. 
  
 “Grant Date” has the meaning set forth in Section 2(b) hereof. 
  
 “IRR” means the average annual rate of return, calculated on
the basis of monthly compounding, as reasonably determined by Castle Harlan in accordance with principles customarily used in the financial community in calculating internal rate of return on investment, with respect to the investment by Castle
Harlan (and its Affiliates) in the Units of the LLC based solely on the net proceeds (but only to the extent constituting cash, cash equivalents or marketable securities (as such marketable securities are valued in the reasonable judgment of Castle
Harlan)) received by Castle Harlan (and its Affiliates), in their capacity as Unitholders, on a fully diluted basis for or on account of any such Units as a result of the applicable Distribution and all prior Distributions, after deduction of the
proportionate share of any fees or expenses paid or payable by Castle Harlan (and its Affiliates) in respect of any transaction(s) that gave rise to such 

  

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Distributions. The IRR shall be calculated using the actual number of months elapsed between the date of the investments made by Castle Harlan (and its
Affiliates) in the LLC and the date of the applicable Distribution, and should Castle Harlan (and its Affiliates) have invested additional amounts in the LLC, or received amounts of distributions from the LLC, since the Effective Time, the
calculation of the IRR shall take into account such amounts as having been so invested or distributed, as the case may be, on the first day of the month in which Castle Harlan (and its Affiliates) makes such additional investment or receives such
distribution, as the case may be. For purposes of the foregoing calculation, the IRR shall be rounded down to 1 decimal place. (For the avoidance of doubt, in no event shall any management fees or other similar fees received by Castle Harlan (or its
Affiliates) be factored into the calculation of the IRR.) 
  
 “IRR Target” means an IRR of thirty percent (30%) per annum. 
  
 “Joinder Agreements” has the meaning set forth in Section 2(c) hereof. 
  
 “Joinders” has the meaning set forth in Section 2(c) hereof. 
  
 “Liquidation Event” means any of the following: (i) a
liquidation or dissolution of the Company, (ii) the sale or other disposition in one or the final of a series of related transactions of all or substantially all of the assets or businesses of the Company and its Subsidiaries to any Person (or
group of Persons) other than Castle Harlan (and/or its Affiliates), or (iii) a sale of equity, merger, acquisition, consolidation, combination, reorganization or other transaction involving or relating to the Company resulting in less than 10%
of the combined voting power of the surviving or resulting entity being owned by Castle Harlan (and/or its Affiliates). 
  
 “LLC” has the meaning set forth in the introductory paragraph hereof. 
  
 “LLC Agreement” means that certain Second Amended and Restated Limited Liability Company Agreement of
Morton’s Holdings, LLC, dated as of October 29, 2002, by and among the parties thereto, as in effect from time to time. 
  
 “Performance Vesting Employee Securities” means the Employee Securities set forth opposite the term “Performance Vesting Employee
Securities” on Schedule I attached hereto. 
  
 “Person” means an individual, a partnership, a corporation, an association, a limited liability company, a joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity or any
department, agency or political subdivision thereof. 
  
 “Preferred Unit” has the meaning set forth in the LLC Agreement. Following any Conversion, all references herein to Preferred Units shall be deemed to be references to preferred stock of the Successor Entity or other
appropriate references representing such equity interests, in each case consistent in all material respects with such relative preferences and rights as those of the Preferred Units. 
  
 “Public Offering” means an initial public offering registered under the Securities Act of equity securities
of the LLC. 
  
 “Qualified Public Offering” means
an underwritten public offering registered under the Securities Act of equity securities of the LLC generating net cash proceeds (after deduction of underwriting commissions and discounts) of at least $20,000,000. 
  
 “SEC” means the Securities and Exchange Commission.

  

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 “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder. 
  
 “Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which (i) if a corporation, a majority of the total voting power of
shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership, association or other business entity, a majority of the partnership or other similar ownership interest thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company,
partnership, association or other business entity if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or control the managing director,
general partner or similar controlling Person of such limited liability company, partnership, association or other business entity. 
  
 “Successor Entity” has the meaning set forth in the definition of “Conversion”. 
  
 “Time Vesting Employee Securities” means the Employee
Securities set forth opposite the term “Time Vesting Employee Securities” on Schedule I attached hereto. 
  
 “Unit” has the meaning set forth in the LLC Agreement, and shall include any Units (including, without limitation, the Common Units and
Preferred Units) issued or issuable to, or owned by, the Unitholders on the date hereof and any other equity securities of the LLC acquired by, or issued or issuable to, the Unitholders on or after the date hereof. For purposes of this Agreement, a
Person will be deemed to be an owner of Units whenever such Person has the right (other than pursuant to the terms of this Agreement) to acquire directly or indirectly such Units (directly or upon conversion, exchange or exercise in connection with
a transfer of securities or otherwise, but, unless otherwise provided in this Agreement, disregarding any restrictions or limitations upon the exercise of such right, including whether or not such right to acquire has vested or is unvested), whether
or not such acquisition has actually been effected. 
  
 “Unitholder” has the meaning ascribed to such term under the Unitholders Agreement. 
  
 “Unitholders Agreement” means the Amended and Restated Unitholders Agreement of the Company, dated as of October 29, 2002, as in
effect from time to time. 
  
 “Unvested Common
Units” has the meaning set forth in Section 3(a) hereof. 
  
 “Vesting Employee Securities” means the Performance Vesting Employee Securities and Time Vesting Employee Securities, collectively. 
  
 “Vested Common Units” has the meaning set forth in Section 3(a) hereof. 
  
 2. Employee Securities. 
  
 (a) Subject to the terms and conditions set forth herein, the LLC shall grant
to the Employee the aggregate number of Common Units set forth on Schedule I attached hereto. One-half ( 1/2) of such Common Units shall be designated as Time Vesting Employee Securities and one-half ( 1/2) of such Common Units shall be designated as Performance Vesting Employee Securities, in each case as indicated on Schedule I attached hereto. 
  

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 (b) The date of grant shall be date listed in Schedule I attached hereto (the “Grant
Date”). On the Grant Date, the Employee shall execute and deliver to the LLC the Section 83(b) election form (as attached hereto as Exhibit A) necessary for the Employee to make an effective election with the Internal Revenue
Service under Section 83(b) of the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated thereunder. The LLC shall promptly, and in any event within 30 calendar days of the Grant Date, mail the
Section 83(b) election, as executed by the Employee, to the Internal Revenue Service on behalf of the Employee. 
  
 (c) Upon execution of this Agreement, the Employee shall execute and deliver a joinder to the LLC Agreement (as attached hereto as Exhibit B) and a
joinder to the Unitholders Agreement (as attached hereto as Exhibit C) (such joinders, collectively, the “Joinders” and the underlying LLC Agreement and the Unitholders Agreement, collectively, the “Joinder
Agreements”), to the extent the Employee is not already a party to the respective Joinder Agreements, whereupon, as applicable, the Employee shall become (x) a “Member” and an “Executive” under the LLC Agreement and
(y) a “Unitholder” and an “Executive” under the Unitholders Agreement; provided, that, notwithstanding the foregoing to the contrary, the Employee shall have the rights (economic, voting and otherwise) as a Member,
Unitholder or otherwise under the Joinder Agreements with respect to Employee Securities only at such time or times that the respective Employee Securities shall have vested pursuant to the provisions of this Agreement; provided, that any
rights to distributions and any rights to allocation of income or loss with respect to Employee Securities shall be unvested and retained by the Company during the period that the respective Employee Securities shall not have vested, and such rights
shall be paid or provided to the Employee if and when the Employee Securities vest, in proportion to the total Employee Securities that are vested from time to time. 
  
 (d) In connection with the grant of the Employee Securities, the Employee represents and warrants to the LLC that:

  
 (i) The Employee Securities granted or to be
granted to the Employee pursuant to this Agreement will be held for the Employee’s own account for investment purposes only and not with a view to, or intention of, the resale or distribution thereof in violation of the Securities Act, or any
applicable state securities laws. The Employee understands that (x) the Employee Securities have not have been registered under the Securities Act or any state securities laws and were issued in a private transaction in reliance upon specific
exemptions from such registration under Section 4(2) thereof, and (y) there is no existing public or other market for the Employee Securities. The Employee Securities will not be disposed of in contravention of the Securities Act or any
applicable state securities laws. 
  
 (ii) No
commission, fee or other remuneration is to be paid or given, directly or indirectly, to any Person acting on behalf of the Employee in connection with this Agreement or the transactions contemplated hereby. 
  
 (iii) The Employee is sophisticated in financial matters
and is able to evaluate the risks and benefits of holding the Employee Securities and has determined that such investment in the Employee Securities is suitable for the Employee, based upon the Employee’s financial situation and needs, as well
as the Employee’s other securities of the LLC. 
  
 (iv) The Employee is able to bear the economic risk of the Employee’s investment in the Employee Securities for an indefinite period of time and the Employee understands that the Employee Securities have not been registered under the
Securities Act and cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration is available. 
  
 (v) The Employee has had an opportunity to ask questions and receive answers concerning the terms and conditions of the offering of
Employee Securities and has had full access to such 

  

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other information concerning the LLC and its Subsidiaries as the Employee has requested. Without limiting the generality of the foregoing, the Employee
confirms that he has received and reviewed a copy of the LLC Agreement and the Unitholders Agreement. 
  
 (vi) This Agreement constitutes the legal, valid and binding obligation of the Employee, enforceable in accordance with its terms. The
execution, delivery and performance of this Agreement and the other agreements contemplated hereby by the Employee does not and will not conflict with, violate or cause a breach of any agreement, contract or instrument to which the Employee is a
party or by which the Employee is bound (including, without limitation, any non-compete, nonsolicitation or confidentiality agreement) or any judgment, order or decree to which the Employee is subject. The Employee agrees to notify the Board of
Advisors of any matter (including, but not limited to, any potential acquisition by the LLC or any of its Subsidiaries) that, to Employee’s knowledge, might reasonably be expected to violate or cause a breach of any such agreement. 

 
 (e) As an inducement to the LLC to grant the Employee Securities to the
Employee, and as a condition thereto, the Employee acknowledges and agrees that: 
  
 (i) neither the Employee’s ownership of any equity of the LLC, the grant of the Employee Securities to the Employee, nor any
provision contained herein shall entitle the Employee to remain in the employment of the Company or any of its Subsidiaries or affect the right of the Company or any of its Subsidiaries to terminate the Employee’s employment at any time for any
reason; and 
  
 (ii) the Company shall have no
duty or obligation to disclose to the Employee, and the Employee shall have no right to be advised of, any material information regarding the Company and its Subsidiaries at any time prior to, upon or in connection with the repurchase of Employee
Securities upon the termination of the Employee’s employment with the Company and its Subsidiaries or as otherwise provided hereunder. 
  
 (f) The Company and the Employee acknowledge and agree that this Agreement has been executed and delivered, and the Employee Securities have been granted
hereunder, in connection with and as a part of the compensation and incentive arrangements between the LLC and the Employee, which arrangements have been established by the Board of Advisors. 
  
 3. Vesting of Vesting Employee Securities. 
  
 (a) Date Hereof. None of the Vesting Employee Securities are vested as
of the date hereof. Vesting Employee Securities that have become vested in accordance with the terms of this Agreement are referred to herein as “Vested Common Units”, and all other Vesting Employee Securities are referred to herein
as “Unvested Common Units”. Notwithstanding anything to the contrary, the number of Vested Common Units shall not increase once the Employee ceases to be employed by the Company and/or any of its Subsidiaries. 
  

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 (b) Time Vesting Employee Securities. 
  
 (i) Except as otherwise provided in Section 3(b)(ii)
below, Time Vesting Employee Securities vest as of the following dates, if, as of each such date, the Employee is employed by the Company or any of its Subsidiaries: 
  

			
	             Date            

	  	 Cumulative Percentage of
 Time Vesting Employee
 Securities That Shall Vest

	 Third Anniversary of Grant Date
	  	40%
	 Fourth Anniversary of Grant Date
	  	70%
	 Fifth Anniversary of Grant Date
	  	100%

  
 (ii)
Acceleration of Vesting Upon a Change in Control. If the Employee is, and has been, continuously employed by the Company or any of its Subsidiaries from the date of this Agreement until a Change in Control, the portion of the Employee’s
outstanding Time Vesting Employee Securities that has not become vested at the date of such Change in Control shall immediately vest simultaneously with consummation of the Change in Control. 
  
 (c) Performance Vesting Employee Securities. 
  
 (i) Upon the occurrence of the earlier of (x) a Change
in Control or (y) a Liquidation Event (such earlier event, the “Final Test Event”) (after giving effect to any concurrent Distribution), subject to the ordering rule set forth in Section 3(c)(ii), the Performance Vesting Employee
Securities shall become vested to the extent that Castle Harlan (and its Affiliates) shall have achieved an IRR at least equal to the IRR Target as of the date of the consummation of the Final Test Event (after giving effect to any concurrent
Distribution), but only if the Employee is employed by the Company or any of its Subsidiaries on such date and has continuously been so employed from the date of this Agreement through such date (it being understood and agreed that, notwithstanding
anything to the contrary in this Agreement, in computing the IRR for purposes of this Section 3(c)(i), the value of the Units held by Castle Harlan (and its Affiliates), as such value is determined in the reasonable judgment of Castle Harlan
(taking into account all relevant factors determinative of value), shall be factored into the calculation of the IRR as if Castle Harlan (and its Affiliates) had received such value in cash on the date of consummation of the Final Test Event).

  
 (ii) The IRR shall be computed by first
assuming that the Performance Vesting Employee Securities, together with any and all other performance vesting employee securities that may have been issued by the Company, all on a pro rata basis, become vested on a unit-by-unit basis, such that
Performance Vesting Employee Securities become vested on a pro rata basis only with respect to that portion of the Performance Vesting Employee Securities that permit the IRR Target to be satisfied. 
  
 (iii) Upon the occurrence of the Final Test Event (after
giving effect to any concurrent Distribution), Performance Vesting Employee Securities that constitute Unvested Common Units shall be immediately forfeited without any action of the part of any Person. 
  
 4. Right to Repurchase Employee Securities Upon the Employee’s
Termination. Upon the termination of the Employee’s employment, (x) Vested Common Units are subject to repurchase in accordance with the terms of Section 11 of the Unitholders Agreement (it being understood and agreed that the
calculation of “fair market value” thereunder shall be determined in the sole discretion of the Board of Advisors) and (y) Unvested Common Units shall be immediately and automatically forfeited without any action on the part of any
Person. 
  
 5. Unitholder Agreement Covenants. The Employee
acknowledges that, upon execution and delivery of the Joinders, the Employee shall be subject to the terms of the Joinder Agreements. Without limiting the 

  

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foregoing, the Employee shall be subject to the terms of Section 9 of the Unitholders Agreement (including, without limitation, in respect of
nondisclosure of confidential information and non-disparagement). 
  
 6. Restrictions on Transfer. 
  
 (a) If
certificated, the Employee Securities will bear substantially the following legend: 
  
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED ON [DATE], AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES
LAWS, AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER AND COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER, CERTAIN REPURCHASE OPTIONS AND CERTAIN OTHER AGREEMENTS SET FORTH IN (I) THAT CERTAIN EMPLOYEE SUBSCRIPTION AGREEMENT, DATED AS OF [DATE], AS
AMENDED AND MODIFIED FROM TIME TO TIME, BY AND BETWEEN MORTON’S HOLDINGS, LLC (THE “COMPANY”) AND THE SIGNATORY THERETO, (II) THAT CERTAIN AMENDED AND RESTATED UNITHOLDERS AGREEMENT, DATED AS OF OCTOBER 29, 2002, AS AMENDED AND
MODIFIED FROM TIME TO TIME, BY AND AMONG THE COMPANY AND CERTAIN OTHER PARTIES THERETO, AND (III) THAT CERTAIN SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT OF THE COMPANY, DATED AS OF OCTOBER 29, 2002, AS AMENDED AND MODIFIED FROM
TIME TO TIME, BY AND AMONG THE PARTIES THERETO, AND THE COMPANY RESERVES THE RIGHT TO REFUSE THE TRANSFER OF SUCH SECURITIES UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED WITH RESPECT TO SUCH TRANSFER. A COPY OF SUCH CONDITIONS SHALL BE FURNISHED BY THE
COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT CHARGE.” 
  
 (b) The Employee understands that the Employee Securities have not have been registered under the Securities Act or any state securities laws and were issued in a private transaction in reliance upon specific
exemptions from such registration under Section 4(2) thereof and the Employee agrees that without registration (and subject to the terms of the Joinder Agreements), the Employee Securities may not be sold, pledged, hypothecated, or otherwise
transferred at any time whatsoever, except on delivery to the Company of an opinion of counsel satisfactory to the Board of Advisors that registration is not required for the transfer, or the submission to the Board of Advisors of other evidence
satisfactory to the Board of Advisors to the effect that any transfer will not be in violation of the Securities Act and applicable state securities laws or any rule or regulations promulgated thereunder. 
  
 (c) Each holder of Employee Securities acknowledges and agrees that the
Employee Securities are subject to additional restrictions and limitations contained in the Joinder Agreements and any transferee of Employee Securities shall hold such Employee Securities subject to the restrictions and limitations contained in
this Agreement (including, without limitation, the risk of forfeiture) as well as such additional restrictions and limitations contained in the Joinder Agreements. 
  
 7. Tax Matters. The Employee shall be solely responsible for, and shall indemnify, defend and hold harmless the
Company and its Subsidiaries (and their respective officers, directors, employees and members) for, any liability associated with federal, state or local income tax withholding and employment tax withholding in respect of the Employee or his
transferees (including all interest, penalties and additions to tax with respect thereto) resulting from, or arising with respect to, the issuance to the Employee (or transfer to 

  

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any such transferee) of any Common Units or other equity interests in the Company, whether acquired by purchase from the Company or otherwise, or the holding
by the Employee or his transferees of any such Common Units or other equity interests in the Company. 
  
 8. Notices. All notices, demands and other communications to be given or delivered under or by reason of provisions under this Agreement
(a) shall be in writing, (b) must be delivered via a nationally-recognized overnight delivery service (delivery charges prepaid) or via facsimile along with written confirmation, and (c) shall be effective only upon actual receipt by
the recipient at the addresses or facsimile numbers indicated below: 
  
 To the LLC: 
  
 Morton’s Holdings, LLC 
 c/o Castle Harlan Partners III, L.P. 
 150 East 58th Street 
 New York, NY 10155 
 Facsimile:  (212) 207-8042 
 Attention:  David B. Pittaway 
                    Justin B. Wender 
  
 and 
  
 Morton’s Restaurant Group, Inc. 
 3333 New Hyde Park Road 
 New Hyde Park, NY 11042 
 Facsimile:  (516) 627-1898 
 Attention:  Thomas J. Baldwin 
  
 with copies (which shall not constitute notice) to: 
  
 Castle Harlan Partners III, L.P. 
 150 East 58th Street 
 New York, NY 10155 
 Facsimile:  (212) 207-8042 
 Attention:  David B. Pittaway 
                    Justin B. Wender

  
 and 
  
 Schulte Roth & Zabel LLP 
 919 Third Avenue 
 New York, NY 10022 
 Facsimile:  (212) 593-5955 
 Attention: Marc Weingarten, Esq. 
  
 To the Employee: 
  
 At the address set forth on the signature page hereto. 
  
 or such other address, facsimile number or to the attention of such other Person as the recipient party shall have specified by prior
written notice to the sending party. 
  

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 9. Miscellaneous. 
  
 (a) Transfers in Violation of Agreement. Any transfer or attempted transfer of any Employee Securities in violation
of any provision of this Agreement or any of the Joinder Agreements shall be null and void, and the LLC shall not record such transfer on its books or treat any purported transferee of such Employee Securities as the owner of such securities for any
purpose. 
  
 (b) Severability. Whenever possible, each
provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule
in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained herein, and to the fullest extent permitted by law a suitable and equitable provision will be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose
of such invalid, illegal or unenforceable provision. 
  
 (c)
Complete Agreement. This Agreement, the Joinders and the Joinder Agreements embody the complete agreement and understanding among the parties hereto with respect to the subject matter hereof and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, that may have related to the subject matter hereof in any way. 
  
 (d) Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement. 
  
 (e)
Successors and Assigns. Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by the LLC and its successors and assigns and the Employee and any subsequent holders of Employee Securities
and the respective successors and assigns of each of them, so long as they hold Employee Securities; provided, that the rights and obligations of the Employee under this Agreement shall not be assignable except in connection with a transfer
of Employee Securities that is permitted hereunder and under the Joinder Agreements. 
  
 (f) Governing Law. All questions concerning the construction, validity and interpretation of this Agreement and the exhibits hereto will be governed by and construed in accordance with the domestic laws of the
State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of
New York; provided, that any questions requiring interpretation of the laws governing limited liability companies shall be governed by the Delaware Limited Liability Company Act. 
  
 (g) Jurisdiction and Venue. ALL JUDICIAL PROCEEDINGS BROUGHT BY OR AGAINST THE LLC OR THE EMPLOYEE WITH RESPECT TO
THIS AGREEMENT, ANY OTHER AGREEMENT CONTEMPLATED HEREBY OR ANY TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY SHALL BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF DELAWARE OR IN THE CITY OF NEW YORK IN THE STATE OF
NEW YORK. BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE LLC AND THE EMPLOYEE ACCEPT FOR ITSELF AND HIMSELF AND IN CONNECTION WITH ITS OR HIS RESPECTIVE PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS,
AND IRREVOCABLY AGREE TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT. THE LLC AND THE EMPLOYEE HEREBY WAIVE ANY CLAIM THAT SUCH JURISDICTION IS AN INCONVENIENT FORUM OR AN IMPROPER FORUM BASED ON LACK OF VENUE.

  
 (h) Waiver of Jury Trial. THE LLC AND THE EMPLOYEE
HEREBY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION IN ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT OR THE VALIDITY, 

  

 10 

 
PROTECTION, INTERPRETATION OR ENFORCEMENT THEREOF. THE LLC AND THE EMPLOYEE AGREE THAT THIS SECTION IS A SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT AND
WOULD NOT ENTER INTO THIS AGREEMENT IF THIS SECTION WERE NOT PART OF THIS AGREEMENT. 
  
 (i) Remedies. Each of the parties to this Agreement will be entitled to enforce its rights under this Agreement specifically, to recover damages and costs (including, without limitation, reasonable
attorneys’ fees) caused by any breach of any provision of this Agreement and to exercise all other rights existing in its favor. The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the
provisions of this Agreement and that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to
enforce or prevent any violations of the provisions of this Agreement. 
  
 (j) Survival of Representations and Warranties. All representations and warranties contained herein or made in writing by any party in connection herewith shall survive the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby indefinitely. 
  
 (k) Amendment and Waiver. The terms and provisions of this Agreement (including the Schedules, Exhibits and Appendices hereto) may be modified or amended (and any term or provision may be waived) at any time and from time to time
with the written consent of the Company and the Employee; provided, that the Company may at any time and from time to time modify, amend or waive any term or provision of this Agreement (including the Schedules, Exhibits and Appendices
hereto) without the consent of the Employee (or any other Person) so long as such modification, amendment or waiver does not materially and adversely affect the Employee. 
  
 (l) Third-Party Beneficiaries. Certain provisions of this Agreement are entered into for the benefit of and shall be
enforceable by the Investor Unitholders (as defined under the Unitholders Agreement). 
  
 (m) Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement. 
  
 (n) Inconsistency Between Agreement and Either Joinder Agreement. If
there is any inconsistency between this Agreement, on the one hand, and either Joinder Agreement, on the other hand, then the relevant provisions of the applicable Joinder Agreement shall govern to the extent of such inconsistency, except that the
provisions of Section 4 of this Agreement and the provisions of Appendix I attached to this Agreement shall in any event govern. 
  
 * * * * * 
  

 11 

 IN WITNESS WHEREOF, the parties hereto have executed this Employee Subscription Agreement as of the date
first written above. 
  

			
	 MORTON’S HOLDINGS, LLC

		
	 By:
	 	  

	 	 	 Name:      [NAME]

	 	 	 Title:        [TITLE]

		
	 Sign:
	 	  

	 Print Name:        [NAME]

	 Address:             [ADDRESS1]

	                             [ADDRESS2]

	
	 Social Security Number: [SS#]

 SCHEDULE I 
  

Employee Securities Granted to 
 Name of
Employee: [NAME] 
  

				
	 Number of Common Units granted as Time Vesting Employee Securities:
	  	[HALF	]
		
	 Number of Common Units granted as Performance Vesting Employee Securities:
	  	[HALF	]
		
	 Total:
	  	[UNITS	]
		
	 Grant Date: [DATE]
	  	 	 

 APPENDIX I 
  

Addendum to Employee Subscription Agreement for California Residents 
  
 This Addendum is intended to comply with Section 25102(o) of the California Corporations Code and any rules or
regulations promulgated thereunder by the California Department of Corporations. Any provision of the Employee Subscription Agreement which is otherwise inconsistent with this Addendum or Section 25102(o) of the California Securities Code
shall, without further act or amendment by the Company, be reformed to comply with Section 25102(o) of the California Securities Code. The sale of the Common Units that are the subject of this Addendum if not yet qualified with the California
Department of Corporations and not yet exempt from such qualification, is subject to such qualification, and the issuance of the Common Units prior to the qualification is unlawful unless such sale is exempt. The rights of the parties exercising
this agreement are expressly conditioned on such exemption being available. 
  
 In addition to those provisions set forth in the Employee Subscription Agreement, Common Units issued to employees resident in California (the “California Employees”) will be subject to the following
provisions: 
  

	 	1.	California Employees will receive financial statements annually. This does not apply to key employees whose duties in connection with the Company assure them access to equivalent
information; 

  

	 	2.	The Company will obtain security holder approval of the plan or agreement within 12 months before or after the plan or agreement is adopted; 

  

	 	3.	Notwithstanding Section 4 of the Employee Subscription Agreement and Section 11 of the Unitholders Agreement, upon termination of a California Employee’s employment,
the right to repurchase must be exercised for cash or cancellation of purchase money indebtedness for the securities within 90 days of termination of employment, and the right terminates if at any time the Company’s securities become publicly
traded; and 

  

	 	4.	Notwithstanding anything to the contrary in the Employee Subscription Agreement, the Common Units granted to California Employees will carry equal voting rights on all matters where
such vote is permitted by applicable law. 

 EXHIBIT A 
 ELECTION TO INCLUDE EMPLOYEE SECURITIES 
  
 IN GROSS INCOME PURSUANT TO 
  
 SECTION 83(b) OF THE
INTERNAL REVENUE CODE 
  
 TO BE FILED WITHIN 30 DAYS OF
ISSUANCE DATE 
  
 On [DATE] (the “Issuance Date”),
the undersigned acquired certain limited liability company membership interests in the form of common units (“Executive Securities”) in Morton’s Holdings, LLC, a Delaware limited liability company (the “Company”), for $0.
The Employee Securities are subject to two (2) forms of vesting: (i) vesting over time and (ii) vesting subject to certain Company performance targets; provided that, in each case, the undersigned is employed as of each applicable
vesting date. Hence, the Employee Securities are subject to a substantial risk of forfeiture and are non-transferable. 
  
 Therefore, pursuant to Internal Revenue Code of 1986, as amended (the “Code”) §83(b) and Treasury Regulation §1.83-2 promulgated
thereunder, the undersigned hereby makes an election, with respect to the Employee Securities, to report as taxable income for the calendar year [YEAR] the excess (if any) of the value of the Employee Securities on the Issuance Date over the
purchase price thereof. 
  
 The following information is supplied
in accordance with Treasury Regulation §1.83-2(e): 
  
 1.
The name, address and social security number of the undersigned: 
  

			
	Name:	 	[NAME]
	Address:	 	[ADDRESS1]
	 	 	[ADDRESS2]
	SSN:	 	[SS#]

  
 2. A description of
the property with respect to which the election is being made: [UNITS] Common Units of the Company, which are membership interests in the Company entitling the undersigned to, among other things, a certain percentage of the Company’s profits,
losses and distributions. 
  
 3. The date on which the
Common Units were transferred: the Issuance Date. The taxable year for which such election is made: [YEAR]. 
  
 4. The restrictions to which the property is subject: As set forth in that certain Employee Subscription Agreement (the “Employee Subscription
Agreement”), dated as of the Issuance Date, by and between the Company and the undersigned (which agreement shall control in the event of any inconsistency with this paragraph 4): (a) 50% of the Common Units shall vest as follows if the
undersigned is employed with the Company or any of its subsidiaries as of such date (subject to accelerated vesting upon a “change in control” of the Company): 
  
 Third Anniversary of Issuance Date 40% 
 Fourth Anniversary of Issuance Date 70% 
 Fifth Anniversary of Issuance Date 100% 

 
 (b) 50% of the Common Units shall vest upon certain events if Castle
Harlan Partners III, L.P. (an investor in the Company) achieves an internal rate of return of at least 30% per annum and the undersigned is employed with the Company or any of its subsidiaries as of such date. 
  
 The Employee Securities are also subject to the Second Amended and
Restated Limited Liability Company Agreement of the Company dated as of October 29, 2002, as amended from time to time (the “LLC Agreement”) and the Amended and Restated Unitholders Agreement of the Company, dated as of
October 29, 2002, as in effect from time to time (the “Unitholders Agreement”): 

 Upon a termination of employment, Unvested Common Units are forfeited. Vested Common Units are subject to repurchase
at fair market value pursuant to the Unitholders Agreement. 
  
 5. The fair market value on the Issuance Date of the property with respect to which the election is being made, determined without regard to any lapse restrictions: 
 $[VALUE]. 
  
 6. The
amount paid or to be paid for such property: $0. 
  
 7.
Amount Reportable as Taxable Income: The amount from Paragraph 5 minus the amount from Paragraph 6. 
  
 *    *    *    *    * 
  
 A copy of this election is being furnished to the Company pursuant to Treasury Regulation §1.83-2(e)(7). A copy of this election will be submitted
with the [YEAR] federal income tax return of the undersigned pursuant to Treasury Regulation §1.83-2(c). 
  
  

					
	 Dated:
	 	[DATE]
			
	 	 	 Sign
	 	  

	 	 	 Print Name:
	 	 [NAME]

 EXHIBIT B 
  

FORM OF JOINDER 
 TO 
 SECOND AMENDED AND RESTATED 
 LIMITED
LIABILITY COMPANY AGREEMENT 
  
 THIS JOINDER to the Second
Amended and Restated Limited Liability Company Agreement, dated as of October 29, 2002, by and among Morton’s Holdings, LLC, a Delaware limited liability company (the “LLC”), and Members of the LLC (as amended, modified or
supplemented from time to time, the “Agreement”), is made and entered into as of [DATE] by and between the LLC and [NAME] (“Holder”). Capitalized terms used herein but not otherwise defined shall have the meanings
set forth in the Agreement. 
  
 WHEREAS, Holder has acquired
certain Units and the Agreement and the LLC requires Holder, as a Unitholder, to become a party to the Agreement, and Holder agrees to do so in accordance with the terms hereof; 
  
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties to this Joinder hereby agree as follows: 
  
 1. Agreement to be Bound. Holder hereby agrees that upon execution of this Joinder, it shall become a party to the Agreement and shall be fully
bound by, and subject to, all of the covenants, terms and conditions of the Agreement as though an original party thereto and shall be deemed a Unitholder for all purposes thereof. In addition, Holder hereby agrees that all Units held by Holder
shall be deemed Units for all purposes of the Agreement. 
  
 2.
Successors and Assigns. Except as otherwise provided herein, this Joinder shall bind and inure to the benefit of and be enforceable by the LLC and its successors and assigns and Holder and any subsequent holders of Units and the respective
successors and assigns of each of them, so long as they hold any Units. 
  
 3. Counterparts. This Joinder may be executed in separate counterparts each of which shall be an original and all of which taken together shall constitute one and the same agreement. 
  
 4. Notices. For purposes of Section 10.5 of the Agreement,
all notices, demands or other communications to the Holder shall be directed to: 
  
  

			
	Name:	 	[NAME]
		
	Address:	 	[ADDRESS1]
	 	 	[ADDRESS2]

  
 5. Governing
Law. All issues and questions concerning the application, construction, validity, interpretation and enforcement of this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware and the Act, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. 
  
 6. Jurisdiction and Venue. ALL JUDICIAL PROCEEDINGS BROUGHT BY OR
AGAINST THE LLC OR THE HOLDER WITH RESPECT TO THIS AGREEMENT, ANY OTHER AGREEMENT CONTEMPLATED 

 
HEREBY OR ANY TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY SHALL BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF DELAWARE.
BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE LLC AND THE HOLDER ACCEPT FOR ITSELF, HIMSELF AND HERSELF AND IN CONNECTION WITH ITS, HIS OR HER RESPECTIVE PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID
COURTS, AND IRREVOCABLY AGREE TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT. THE LLC AND THE HOLDER HEREBY WAIVE ANY CLAIM THAT SUCH JURISDICTION IS AN INCONVENIENT FORUM OR AN IMPROPER FORUM BASED ON LACK OF VENUE.

  
 7. Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT
HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION IN ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT OR THE VALIDITY, PROTECTION, INTERPRETATION, COLLECTION OR ENFORCEMENT
THEREOF. 
  
 8. Descriptive Headings. The descriptive
headings of this Joinder are inserted for convenience only and do not constitute a part of this Joinder. 
  
 *    *    *    *    * 

 IN WITNESS WHEREOF, the parties hereto have executed this Joinder as of the date first above written.

  

			
	MORTON’S HOLDINGS, LLC
		
	By:	 	  

	Name:	 	[NAME]
	Title:	 	 [TITLE]

			
	
	 Sign:

	Print Name:	 	[NAME]

 EXHIBIT C 
  

FORM OF JOINDER 
 TO 
 AMENDED AND RESTATED 
 UNITHOLDERS AGREEMENT

  
 THIS JOINDER to the Amended and Restated Unitholders
Agreement, dated as of October 29, 2002, by and among Morton’s Holdings, LLC, a Delaware limited liability company (the “LLC”), and certain Unitholders of the LLC (the “Agreement”), is made and entered
into as of [DATE] by and between the LLC and [NAME] (“Holder”). Capitalized terms used herein but not otherwise defined shall have the meanings set forth in the Agreement. 
  
 WHEREAS, Holder has acquired certain Units and the Agreement and the LLC
requires Holder, as a Unitholder, to become a party to the Agreement, and Holder agrees to do so in accordance with the terms hereof; 
  
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties to this Joinder hereby agree as follows: 
  
 1. Agreement to be Bound. Holder hereby agrees that upon execution of this Joinder, it shall become a party to the Agreement and shall be fully bound by, and subject to, all of the covenants, terms and
conditions of the Agreement as though an original party thereto and shall be deemed a Unitholder for all purposes thereof. In addition, Holder hereby agrees that all Units held by Holder shall be deemed Units for all purposes of the Agreement.

  
 2. Successors and Assigns. Except as otherwise provided
herein, this Joinder shall bind and inure to the benefit of and be enforceable by the LLC and its successors and assigns and Holder and any subsequent holders of Units and the respective successors and assigns of each of them, so long as they hold
any Units. 
  
 3. Counterparts. This Joinder may be
executed in separate counterparts each of which shall be an original and all of which taken together shall constitute one and the same agreement. 
  
 4. Notices. For purposes of Section 20 of the Agreement, all notices, demands or other communications to the Holder shall be directed
to: 
  

			
	Name:	 	[NAME]
		
	Address:	 	[ADDRESS1]
	 	 	[ADDRESS2]

  
 5. Governing
Law. All issues and questions concerning the application, construction, validity, interpretation and enforcement of this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware and the Act, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. 
  
 6. Jurisdiction and Venue. ALL JUDICIAL PROCEEDINGS BROUGHT BY OR
AGAINST THE LLC OR THE HOLDER WITH RESPECT TO THIS AGREEMENT, ANY OTHER AGREEMENT CONTEMPLATED HEREBY OR ANY TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY SHALL BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF
DELAWARE. BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE LLC AND THE HOLDER ACCEPT FOR ITSELF, HIMSELF AND HERSELF AND IN CONNECTION WITH ITS, HIS OR HER RESPECTIVE PROPERTIES. 

 
GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS, AND IRREVOCABLY AGREE TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN
CONNECTION WITH THIS AGREEMENT. THE LLC AND THE HOLDER HEREBY WAIVE ANY CLAIM THAT SUCH JURISDICTION IS AN INCONVENIENT FORUM OR AN IMPROPER FORUM BASED ON LACK OF VENUE. 
  
 7. Waiver of Jury Trial. THE LLC AND THE HOLDER HEREBY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY
JURY IN ANY LITIGATION IN ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT OR THE VALIDITY, PROTECTION, INTERPRETATION OR ENFORCEMENT THEREOF. THE LLC AND THE HOLDER AGREE THAT THIS SECTION IS A SPECIFIC AND MATERIAL
ASPECT OF THIS AGREEMENT AND WOULD NOT ENTER INTO THIS AGREEMENT IF THIS SECTION WERE NOT PART OF THIS AGREEMENT. 
  
 8. Descriptive Headings. The descriptive headings of this Joinder are inserted for convenience only and do not constitute a part of this Joinder.

  
 *    *    *    *    * 

 IN WITNESS WHEREOF, the parties hereto have executed this Joinder as of the date first above written.

  

			
	 MORTON’S HOLDINGS, LLC

		
	By:	 	  

	Name:	 	[NAME]
	Title:	 	[TITLE]
	 	 	 

			
	
	 Sign:

	Print Name:	 	[NAME]Equity Incentive Plan

 Exhibit 10.11 
  
 2006 MORTON’S RESTAURANT GROUP, INC. 
  
 STOCK INCENTIVE PLAN 
  

	1.	Purpose of the Plan 

  
 The purpose of the Plan is to motivate key employees, directors or consultants of the Company and its Affiliates to use their best efforts on behalf of
the Company and its Affiliates and to retain such employees, directors or consultants. 
  

	2.	Definitions 

  
 The following capitalized terms used in the Plan have the respective meanings set forth in this Section: 
  

	 	(a)	Act:    The Securities Exchange Act of 1934, as amended, or any successor thereto. 

  

	 	(b)	Affiliate:    With respect to the Company, any entity directly or indirectly controlling, controlled by, or under common control with, the Company or any
other entity designated by the Board in which the Company or an Affiliate has an interest. 

  

	 	(c)	Award:    An Option, Stock Appreciation Right or Other Stock-Based Award granted pursuant to the Plan. 

  

	 	(d)	Beneficial Owner:    Beneficial Owner within the meaning of Rule 13d-3 and 13d-5 of the General Rules and Regulations under the Act.

  

	 	(e)	Board:    The Board of Directors of the Company. 

  

	 	(f)	Change of Control:    The occurrence of either of the following events: 

  

	 	    	(i) any Person becomes the Beneficial Owner, directly or indirectly, of securities representing a majority of the combined voting power of the Company’s then outstanding
securities generally entitled to vote for the election of members of the Board or (ii) as a result of a cash tender offer, merger or other business combination, sale of assets or contested election, or any combination of the foregoing
transactions, the individuals who were members of the Board as of the Effective Date (the “Incumbent Directors”) cease to constitute at least a majority of the Board of the Company or of any successor to the Company; provided that any
person becoming a director after the Effective Date and whose election or nomination for election by the shareholders of the Company was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent
Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to the election or removal of directors (“Election Contest”)
or other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest,
shall be deemed an Incumbent Director. 

  

	 	(g)	Code:    The Internal Revenue Code of 1986, as amended, or any successor thereto. 

  

	 	(h)	Committee:    The Compensation Committee of the Board. 

  

	 	(i)	Company:    Morton’s Restaurant Group, Inc., a Delaware corporation. 

  

	 	(j)	Effective Date:    The date the Board approves the Plan, or such later date as is designated by the Board, subject to approval of the stockholders of the
Company. 

  

	 	(k)	 Fair Market Value:    On any day, with respect to Shares which are (i) listed on a United States securities exchange, the last sales
price of such Shares on such day on the largest United States securities exchange on which such Shares shall have traded on such day, or if such day is not a day on which a United States securities exchange is open for trading, on the immediately
preceding day on which such securities exchange was so open, (ii) not listed on a United States securities 

  

 1 

	 	 
exchange but is included in the NASDAQ National Market System, the last sales price of such Shares on such day, or if such day is not a trading day, on the
immediately preceding trading day, or (iii) neither listed on a United States securities exchange nor included in the NASDAQ National Market System, the fair market value of such Shares as determined by the Board in its sole discretion.

  

	 	(l)	Group:    A “person”, as such term is used for purposes of Section 13(d) or 14(d) of the Act (or any successor section thereto).

  

	 	(m)	ISO:    An Option that is also an incentive stock option pursuant to Section 7(d) of the Plan. 

  

	 	(n)	Option:    A stock option granted pursuant to Section 7 of the Plan. 

  

	 	(o)	Option Price:    The purchase price per Share of an Option, as determined pursuant to Section 7(a) of the Plan. 

  

	 	(p)	Other Stock-Based Awards:    Awards granted pursuant to Section 9 of the Plan. 

  

	 	(q)	Participant:    An employee, director or consultant who is selected by the Committee to participate in the Plan. 

  

	 	(r)	Person:    A “person”, as such term is used for purposes of Section 13(d) or 14(d) of the Act (or any successor section thereto).

  

	 	(s)	Plan:    The 2006 Morton’s Restaurant Group, Inc. Stock Incentive Plan. 

  

	 	(t)	Shares:    Shares of common stock of the Company. 

  

	 	(u)	Stock Appreciation Right:    A stock appreciation right granted pursuant to Section 8 of the Plan. 

  

	3.	Shares Subject to the Plan 

  
 The total number of Shares which may be issued under the Plan is 1,789,000. The Shares may consist, in whole or in part, of authorized and unissued
Shares, treasury Shares. The issuance of Shares or the payment of cash upon the exercise of an Award shall reduce the total number of Shares available under the Plan, as applicable. Shares which are subject to Awards which terminate or lapse may be
granted again under the Plan. 
  

	4.	Administration 

  
 The Plan shall be administered by the Committee, which may delegate its duties and powers in whole or in part as it determines; provided, however that the
Board may, in its sole discretion, take any action designated to the Committee under this Plan as it may deem necessary. Awards may, in the discretion of the Committee, be made under the Plan in assumption of, or in substitution for, outstanding
awards previously granted by the Company or its affiliates or a company acquired by the Company or with which the Company combines. The number of Shares underlying such substitute awards shall be counted against the aggregate number of Shares
available for Awards under the Plan. The Committee is authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, and to make any other determinations that it deems necessary or desirable for the
administration of the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems necessary or desirable. Any decision of the Committee in the
interpretation and administration of the Plan, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned (including, but not limited to, Participants and their
beneficiaries or successors). The Committee shall have the full power and authority to establish the terms and conditions of any Award consistent with the provisions of the Plan and to waive any such terms and conditions at any time (including,
without limitation, accelerating or waiving any vesting conditions). The Committee shall require payment of any amount it may determine to be necessary to withhold for federal, state, local or other taxes as a result of the exercise, grant 

  

 2 

 
or payment of an Award. Unless the Committee specifies otherwise, the Participant may elect to pay the statutory minimum withholding taxes by
(a) delivery in Shares or (b) having Shares withheld by the Company from any Shares that would have otherwise been received by the Participant. 
  

	5.	Limitations 

  
 No Award may be granted under the Plan after the tenth anniversary of the Effective Date, but Awards theretofore granted may extend beyond that date.

  

	6.	Award Agreement 

  
 Each Award granted under the Plan shall be evidenced by a written agreement and shall contain such terms and conditions as the Committee shall deem
appropriate. The provisions of separate Award agreements need not be identical. 
  

	7.	Terms and Conditions of Options 

  
 Options granted under the Plan shall be, as determined by the Committee, non-qualified or incentive stock options for federal income purposes, as
evidenced by the related Award agreements, and shall be subject to the foregoing and the following terms and conditions and to such other terms and conditions, not inconsistent therewith, as the Committee shall determine: 
  

	 	(a)	Option Price.    The Option Price per Share shall be determined by the Committee, but shall not be less than 100% of the Fair Market Value of the Shares
on the date an Option is granted. 

  

	 	(b)	Exercisability.    Options granted under the Plan shall be exercisable at such time and upon such terms and conditions as may be determined by the
Committee, but in no event shall an Option be exercisable more than ten years after the date it is granted. 

  

	 	(c)	Exercise of Options.    Except as otherwise provided in the Plan or in an Award agreement, an Option may be exercised for all, or from time to time any
part, of the Shares for which it is then exercisable. For purposes of Section 7 of the Plan, the exercise date of an Option shall be the later of the date a notice of exercise is received by the Company and, if applicable, the date payment is
received by the Company pursuant to clauses (i), (ii) or (iii) in the following sentence. The purchase price for the Shares as to which an Option is exercised shall be paid to the Company in full at the time of exercise at the election of
the Participant (i) in cash or its equivalent (e.g., by check), (ii) to the extent permitted by the Committee, in Shares having a Fair Market Value equal to the aggregate Option Price for the Shares being purchased and satisfying such
other requirements as may be imposed by the Committee; provided, that such Shares have been held by the Participant for no less than six months (or such other period as established from time to time by the Committee or generally accepted
accounting principles) or (iii) partly in cash and, to the extent permitted by the Committee, partly in such Shares. No Participant shall have any rights of a stockholder with respect to Shares subject to an Option until the Participant
has given written notice of exercise of the Option, paid in full for such Shares and, if applicable, has satisfied any other conditions imposed by the Committee pursuant to the Plan. 

  

	 	(d)	 ISOs.    The Committee may grant Options under the Plan that are intended to be ISOs. Such ISOs shall comply with the requirements of
Section 422 of the Code (or any successor section thereto). No ISO may be granted to any Participant who at the time of such grant, owns more than ten percent of the total combined voting power of all classes of stock of the Company or of any
subsidiary, unless (i) the Option Price for such ISO is at least 110% of the Fair Market Value of a Share on the date the ISO is granted and (ii) the date on which such ISO terminates is a date not later than the day preceding the fifth
anniversary of the date on which the ISO is granted. Any Participant who disposes of Shares acquired upon the exercise of an ISO either (i) within two 

  

 3 

	 	 
years after the date of grant of such ISO or (ii) within one year after the transfer of such Shares to the Participant, shall notify the Company of such
disposition and of the amount realized upon such disposition. All Options granted under the Plan are intended to be nonqualified stock options, unless the applicable Award agreement expressly states that the Option is intended to be an ISO. If an
Option is intended to be an ISO, and if for any reason such Option (or portion thereof) shall not qualify as an ISO, then, to the extent of such nonqualification, such Option (or portion thereof) shall be regarded as a nonqualified stock option
granted under the Plan; provided that such Option (or portion thereof) otherwise complies with the Plan’s requirements relating to nonqualified stock options. In no event shall any member of the Committee, the Company or any of its
Affiliates (or their respective employees, officers or directors) have any liability to any Participant (or any other Person) due to the failure of an Option to qualify for any reason as an ISO. 

  

	8.	Terms and Conditions of Stock Appreciation Rights 

  

	 	(a)	Grants.    The Committee also may grant (i) a Stock Appreciation Right independent of an Option or (ii) a Stock Appreciation Right in connection
with an Option, or a portion thereof. A Stock Appreciation Right granted pursuant to clause (ii) of the preceding sentence (A) may be granted at the time the related Option is granted or at any time prior to the exercise or cancellation of
the related Option, (B) shall cover the same Shares covered by an Option (or such lesser number of Shares as the Committee may determine) and (C) shall be subject to the same terms and conditions as such Option except for such additional
limitations as are contemplated by this Section 8 (or such additional limitations as may be included in an Award agreement). 

  

	 	(b)	Terms.    The exercise price per Share of a Stock Appreciation Right shall be an amount determined by the Committee but in no event shall such amount be
less than the greater of the Fair Market Value of a Share on the date the Stock Appreciation Right is granted or, in the case of a Stock Appreciation Right granted in conjunction with an Option, or a portion thereof, the Option Price of the related
Option. Each Stock Appreciation Right granted independent of an Option shall entitle a Participant upon exercise to an amount equal to (i) the excess of (A) the Fair Market Value on the exercise date of one Share over (B) the exercise
price per Share, times (ii) the number of Shares covered by the Stock Appreciation Right. Each Stock Appreciation Right granted in conjunction with an Option, or a portion thereof, shall entitle a Participant to surrender to the Company the
unexercised Option, or any portion thereof, and to receive from the Company in exchange therefor an amount equal to (i) the excess of (A) the Fair Market Value on the exercise date of one Share over (B) the Option Price per Share,
times (ii) the number of Shares covered by the Option, or portion thereof, which is surrendered. The date a notice of exercise is received by the Company shall be the exercise date. Payment shall be made in Shares or in cash, or partly in
Shares and partly in cash (any such Shares valued at such Fair Market Value), all as shall be determined by the Committee. Stock Appreciation Rights may be exercised from time to time upon actual receipt by the Company of written notice of exercise
stating the number of Shares with respect to which the Stock Appreciation Right is being exercised. No fractional Shares will be issued in payment for Stock Appreciation Rights, but instead cash will be paid for a fraction or, if the Committee
should so determine, the number of Shares will be rounded downward to the next whole Share. 

  

	 	(c)	Limitations.    The Committee may impose, in its discretion, such conditions upon the exercisability or transferability of Stock Appreciation Rights as it
may deem fit. 

  

	9.	Other Stock-Based Awards 

  
 The Committee, in its sole discretion, may grant Awards of Shares, Awards of restricted Shares, restricted stock units and Awards that are valued in whole
or in part by reference to, or are otherwise based on the Fair Market Value of, Shares (“Other Stock-Based Awards”). Such Other Stock-Based Awards shall be in 

  

 4 

 
such form, and dependent on such conditions, as the Committee shall determine, including, without limitation, the right to receive one or more Shares (or the
equivalent cash value of such Shares) upon the completion of a specified period of service, the occurrence of an event and/or the attainment of performance objectives. Other Stock-Based Awards may be granted alone or in addition to any other Awards
granted under the Plan. Subject to the provisions of the Plan, the Committee shall determine (a) the number of Shares to be awarded under (or otherwise related to) such Other Stock-Based Awards, (b) whether such Other Stock-Based Awards
shall be settled in cash, Shares or a combination of cash and Shares (c) and all other terms and conditions of such Awards (including, without limitation, the vesting provisions thereof and provisions ensuring that all Shares so awarded and
issued shall be fully paid and non-assessable). 
  

	10.	Adjustments Upon Certain Events 

  
 Notwithstanding any other provisions in the Plan to the contrary, the following provisions shall apply to all Awards granted under the Plan: 

 

	 	(a)	Generally.    In the event of any change in the outstanding Shares after the Effective Date by reason of any Share dividend or split, reorganization,
recapitalization, merger, consolidation, spin-off, combination, combination or transaction or exchange of Shares or other corporate exchange, or any distribution to shareholders of Shares other than regular cash dividends or any transaction similar
to the foregoing, the Committee in its sole discretion and without liability to any person may make such substitution or adjustment, if any, as it deems to be equitable, as to (i) the number or kind of Shares or other securities issued or
reserved for issuance pursuant to the Plan or pursuant to outstanding Awards, (ii) the Option Price or exercise price of any stock appreciation right and/or (iii) any other affected terms of such Awards. 

  

	 	(b)	Change of Control.    In the event of a Change of Control after the Effective Date, the Committee may, in its sole discretion, provide for (i) the
termination of an Award upon the consummation of the Change of Control, but only if such Award has vested and been paid out or the Participant has been permitted to exercise the Award in full for a period of not less than 20 days prior to the Change
of Control, (ii) acceleration of all or any portion of an Award, (iii) the payment of any amount (in cash or, in the discretion of the Committee, in the form of consideration paid to shareholders of the Company in connection with such
Change of Control) in exchange for the cancellation of such Award which, in the case of Options and Stock Appreciation Rights, may equal the excess, if any, of the Fair Market Value of the Shares subject to such Options or Stock Appreciation Rights
over the aggregate exercise price or grant price of such Options or Stock Appreciation Rights, and/or (iv) issuance of substitute Awards that will substantially preserve the otherwise applicable terms of any affected Awards previously granted
hereunder. 

  

	11.	No Right to Employment or Awards 

  
 The granting of an Award under the Plan shall impose no obligation on the Company or any Subsidiary to continue the employment or service or consulting
relationship of a Participant and shall not lessen or affect the Company’s or Subsidiary’s right to terminate the employment or service or consulting relationship of such Participant. No Participant or other Person shall have any claim to
be granted any Award, and there is no obligation for uniformity of treatment of Participants, or holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee’s determinations and interpretations with respect thereto
need not be the same with respect to each Participant (whether or not such Participants are similarly situated). 
  

	12.	Successors and Assigns 

  
 The Plan shall be binding on all successors and assigns of the Company and a Participant, including without limitation, the estate of such Participant and
the executor, administrator or trustee of such estate, or any receiver or trustee in bankruptcy or representative of the Participant’s creditors. 
  

 5 

	13.	Nontransferability of Awards 

  
 Unless otherwise determined by the Committee, an Award shall not be transferable or assignable by the Participant otherwise than by will or by the laws of
descent and distribution. An Award exercisable after the death of a Participant may be exercised by the legatees, personal representatives or distributees of the Participant. 
  

	14.	Listing And Qualification Of Shares 

  
 The Plan, the grant and exercise of Awards thereunder, and the obligation of the Company to sell and deliver shares under such Awards, shall be subject to
all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required. The Company, in its discretion, may postpone the issuance or delivery of shares upon any exercise of an
Award until completion of any stock exchange listing, or other qualification of such shares under any state or federal law, rule or regulation as the Company may consider appropriate, and may require any Participant, beneficiary or legal
representative to make such representations and furnish such information as it may consider appropriate in connection with the issuance or delivery of the shares in compliance with applicable laws, rules and regulations. 
  

	15.	No Liability Of Board Members 

  
 No member of the Board shall be personally liable by reason of any contract or other instrument executed by such member or on his behalf in his capacity
as a member of the Board nor for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless each employee, officer or director of the Company to whom any duty or power relating to the administration or
interpretation of the Plan may be allocated or delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Board) arising out of any act or omission to act in
connection with the Plan unless arising out of such person’s own fraud or bad faith. 
  

	16.	Amendments or Termination 

  
 The Board may amend, alter or discontinue the Plan, but no amendment, alteration or discontinuation shall be made which, (a) without the approval of
the shareholders of the Company, would (except as is provided in Section 10 of the Plan), increase the total number of Shares reserved for the purposes of the Plan or (b) without the consent of a Participant, would diminish any of the
rights of the Participant under any Award theretofore granted to such Participant under the Plan; provided, however, that the Committee may amend the Plan in such manner as it deems necessary to permit the granting of Awards meeting
the requirements of the Code or other applicable laws. 
  

	17.	Choice of Law 

  
 The Plan shall be governed by and construed in accordance with the laws of the State of New York without regard to conflicts of laws. 
  

	18.	Effectiveness of the Plan 

  
 The Plan shall be effective as of the Effective Date. 
  

 6

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