Document:

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                                                                     EXHIBIT 4.1

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                         MORTON'S RESTAURANT GROUP, INC.
               (formerly known as Quantum Restaurant Group, Inc.)

                                       and

                             EQUISERVE TRUST COMPANY
             (formerly known as The First National Bank of Boston),

                                  Rights Agent

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

                      Amended and Restated Rights Agreement

                           Dated as of March 22, 2001

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                                TABLE OF CONTENTS

Section                                                                     Page
-------                                                                     ----

1.      Certain Definitions....................................................1

2.      Appointment of Rights Agent............................................6

3.      Issue of Rights Certificates...........................................6

4.      Form of Rights Certificates............................................7

5.      Countersignature and Registration......................................8

6.      Transfer, Split Up, Combination and Exchange of Rights
        Certificates; Mutilated, Destroyed, Lost or Stolen Rights
        Certificates..........................................................9

7.      Exercise of Rights; Purchase Price; Expiration Date of Rights.........10

8.      Cancellation and Destruction of Rights Certificates...................11

9.      Reservation and Availability of Capital Stock.........................12

10.     Preferred Stock Record Date...........................................13

11.     Adjustment of Purchase Price, Number and Kind of Shares or
        Number of Rights......................................................14

12.     Certificate of Adjusted Purchase Price or Number of Shares............21

13.     Consolidation, Merger or Sale or Transfer of Assets or Earning
        Power.................................................................21

14.     Fractional Rights and Fractional Shares...............................25

15.     Rights of Action......................................................25

16.     Agreement of Rights Holders...........................................26

17.     Rights Certificate Holder Not Deemed a Stockholder....................26

18.     Concerning the Rights Agent...........................................27

19.     Merger or Consolidation or Change of Name of Rights Agent.............27

                                      -i-
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20.     Duties of Rights Agent................................................28

21.     Change of Rights Agent................................................29

22.     Issuance of New Rights Certificates...................................30

23.     Redemption and Termination............................................31

24.     Exchange..............................................................31

25.     Notice of Certain Events..............................................32

26.     Notices...............................................................33

27.     Supplements and Amendments............................................34

28.     Successors............................................................34

29.     Determinations and Actions by the Board of Directors, etc.............34

30.     Benefits of this Agreement............................................35

31.     Severability..........................................................35

32.     Governing Law.........................................................35

33.     Counterparts..........................................................35

34.     Descriptive Headings..................................................36

Exhibit A      -      Certificate of Designation of Series A Junior
                        Participating Preferred Stock                        A-1

Exhibit B      -      Form of Rights Certificate                             B-1

Exhibit C      -      Summary of Rights to Purchase Preferred Stock          C-1

                                      -ii-
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                      AMENDED AND RESTATED RIGHTS AGREEMENT

            AMENDED AND RESTATED RIGHTS AGREEMENT, dated as of March 22, 2001
(the "Agreement"), between Morton's Restaurant Group, Inc., a Delaware
corporation (formerly known as Quantum Restaurant Group, Inc.) (the "Company"),
and Equiserve Trust Company (formerly known as The First National Bank of
Boston) (the "Rights Agent").

                               W I T N E S S E T H

            WHEREAS, on December 15, 1994 (the "Rights Dividend Declaration
Date"), the Board of Directors of the Company authorized and declared a dividend
distribution of one Right for each share of Common Stock (as hereinafter
defined) of the Company outstanding at the close of business on January 3, 1995
(the "Record Date"), and has authorized the issuance of one Right (as such
number may hereinafter be adjusted pursuant to the provisions of Section 11
hereof) for each share of Common Stock of the Company issued (whether originally
issued or delivered from the Company's treasury) between the Record Date and the
earlier of the Distribution Date (as hereinafter defined) and the expiration or
redemption of the Rights and, in certain circumstances, after the Distribution
Date, each Right initially representing the right to purchase one one-hundredth
of a share of Series A Junior Participating Preferred Stock of the Company, upon
the terms and subject to the conditions hereinafter set forth (the "Rights");

            NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows:

            Section 1. Certain Definitions.

            For purposes of this Agreement, the following terms have the
meanings indicated:

            (a) "Acquiring Person" shall mean any Person who or which, together
with all Affiliates and Associates of such Person, shall become, after the date
hereof, the Beneficial Owner of 15% or more of the shares of Common Stock then
outstanding, but shall not include any Exempt Person; provided, however, that a
Person shall not become an Acquiring Person if such Person, together with its
Affiliates and Associates, shall become, after the date hereof, the Beneficial
Owner of 15% or more of the shares of Common Stock then outstanding, solely as a
result of a reduction in the number of shares of Common Stock outstanding due to
the repurchase of Common Stock by the Company, unless and until such time as
such Person or any Affiliate or Associate of such Person shall purchase or
otherwise become the Beneficial Owner of any additional shares of Common Stock
or any other Person (or Persons) who is (or collectively are) the Beneficial
Owner of any shares of Common Stock shall become an Affiliate or Associate of
such Person. Notwithstanding the foregoing, if the Board of Directors of the
Company determines in good faith that a Person who would otherwise be an
"Acquiring Person," as defined pursuant to the foregoing provisions of this
subparagraph (a), has become such inadvertently, and such Person divests as
promptly as practicable a sufficient number of shares of Common Stock so that
such Person would no longer be an "Acquiring Person," as defined pursuant to the
foregoing provisions of this subparagraph (a), then such Person shall not be
deemed to be an "Acquiring Person" for any purposes of this Agreement.
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            (b) "Act" shall mean the Securities Act of 1933, as amended.

            (c) "Affiliate" and "Associate" shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under
the Exchange Act.

            (d) A Person shall be deemed the "Beneficial Owner" of, and shall be
deemed to "beneficially own," any securities:

                  (i) which such Person or any of such Person's Affiliates or
Associates, directly or indirectly, has the right to acquire (whether such right
or obligation is exercisable immediately or only after the passage of time or
the occurrence of an event) pursuant to any agreement, arrangement or
understanding (whether or not in writing) or upon the exercise of conversion
rights, exchange rights, other rights, warrants or options, or otherwise;
provided, however, that a Person shall not be deemed the "Beneficial Owner" of,
or to "beneficially own," (A) securities tendered pursuant to a tender or
exchange offer made by such Person or any of such Person's Affiliates or
Associates until such tendered securities are accepted for purchase or exchange,
or (B) securities issuable upon exercise of Rights at any time prior to the
occurrence of a Triggering Event, or (C) securities issuable upon exercise of
Rights from and after the occurrence of a Triggering Event, which Rights were
acquired by such Person or any of such Person's Affiliates or Associates prior
to the Distribution Date or pursuant to Section 3(a) or Section 22 hereof (the
"Original Rights") or pursuant to Section 11(i) hereof in connection with an
adjustment made with respect to any Original Rights; or

                  (ii) which such Person or any of such Person's Affiliates or
Associates, directly or indirectly, has the right to vote or dispose of or has
"beneficial ownership" of (as determined pursuant to Rule 13d-3 of the General
Rules and Regulations under the Exchange Act), including pursuant to any
agreement, arrangement or understanding, whether or not in writing; provided,
however, that a Person shall not be deemed the "Beneficial Owner" of, or to
"beneficially own," any security under this subparagraph (ii) as a result of an
agreement, arrangement or understanding to vote such security if such agreement,
arrangement or understanding: (A) arises solely from a revocable proxy or
consent solicitation given in response to a public (i.e., not including a
solicitation exempted by Rule 14a-2(b)(2) of the General Rules and Regulations
under the Exchange Act) proxy or consent solicitation made pursuant to, and in
accordance with, the applicable provisions of the General Rules and Regulations
under the Exchange Act, and (B) is not also then reportable by such Person on
Schedule 13D under the Exchange Act (or any comparable or successor report); or

                  (iii) which are beneficially owned, directly or indirectly, by
any other Person (or any Affiliate or Associate thereof) with which such Person
(or any of such Person's Affiliates or Associates) has any agreement,
arrangement or understanding (whether or not in writing), for the purpose of
acquiring, holding, voting (except pursuant to a revocable proxy as described in
the proviso to subparagraph (ii) of this definition) or disposing of any voting
securities of the Company; provided, however, that nothing in this definition
shall cause a Person engaged in business as an underwriter of securities to be
the "Beneficial Owner" of, or to "beneficially own," any securities acquired
through such Person's participation in good faith in a firm commitment
underwriting until the expiration of forty days after the date of such
acquisition.

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            (e) "Business Day" shall mean any day other than a Saturday, Sunday
or a day on which banking institutions in the State of New York or the state in
which the principal office of the Rights Agent is located are authorized or
obligated by law or executive order to close.

            (f) "Close of Business" on any given date shall mean 5:00 P.M., New
York time on such date; provided, however, that if such date is not a Business
Day it shall mean 5:00 P.M., New York time on the next succeeding Business Day.

            (g) "Closing Price" of a security for any day shall mean the last
sales price, regular way, on such day or, in case no such sale takes place on
such day, the average of the closing bid and asked prices, regular way, on such
day, in either case as reported in the principal transaction reporting system
with respect to securities listed or admitted to trading on the New York Stock
Exchange, or if such security is not listed or admitted to trading on the New
York Stock Exchange, on the principal national securities exchange on which such
security is listed or admitted to trading, or, if such security is not listed or
admitted to trading on any national securities exchange but sales price
information is reported for such security as reported by NASDAQ/NMS or such
other self-regulatory organization or registered securities information
processor (as such terms are used under the Exchange Act) that then reports
information concerning such security, or, if sales price information is not so
reported, the average of the high bid and low asked prices in the
over-the-counter market on such day, as reported by NASDAQ/NMS or such other
entity, or, if on such day such security is not quoted by any such entity, the
average of the closing bid and asked prices as furnished by a professional
market maker making a market in such security selected by the Board of Directors
of the Company. If on such day no market maker is making a market in such
security, the fair value of such security on such day as determined in good
faith by the Board of Directors of the Company shall be used.

            (h) "Common Stock" shall mean the voting common stock, par value
$0.01 per share, of the Company, except that "Common Stock" when used with
reference to any stock issued by a Person other than the Company shall mean the
capital stock (or units of beneficial interest which represent the right to
participate in profits, losses, deductions and credits) of such Person with the
greatest voting power, or the equity securities or other equity interest having
power to control or direct the management, of such Person.

            (i) [Reserved.]

            (j) "Distribution Date" shall mean the earlier of (i) the Close of
Business on the tenth day after the Stock Acquisition Date (or, if the tenth day
after the Stock Acquisition Date occurs before the Record Date, the close of
business on the Record Date), or (ii) the close of business on the tenth
Business Day after the date that a tender or exchange offer by any Person (other
than an Exempt Person) is first published or sent or given within the meaning of
Rule 14d-2(a) of the General Rules and Regulations under the Exchange Act, if
upon consummation thereof, such Person would be an Acquiring Person
(irrespective of whether any shares are actually purchased pursuant to any such
offer).

            (k) "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended.

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            (l) "Exempt Person" shall mean the Company, any Subsidiary of the
Company, any employee benefit plan or employee stock plan of the Company or any
Subsidiary of the Company or any Person organized, appointed, or established by
the Company for or pursuant to the terms of any such plan.

            (m) "Expiration Date" shall mean the earlier of (i) the Final
Expiration Date, (ii) the time at which the Rights are redeemed as provided in
Section 23 hereof or (iii) the time at which all Rights then outstanding and
exercisable are exchanged pursuant to Section 24 hereof.

            (n) "Final Expiration Date" shall mean the close of business on
January 3, 2005.

            (o) "NASDAQ/NMS" shall mean the National Association of Securities
Dealers Automated Quotation National Market System.

            (p) "Original Rights" shall have the meaning set forth in the
definition of Beneficial Owner.

            (q) "Person" shall mean any individual, firm, corporation,
partnership, association, trust, unincorporated organization or other entity.

            (r) "Preferred Stock" shall mean shares of Series A Junior
Participating Preferred Stock, par value $.01 per share, of the Company having
the rights, powers and preferences set forth in the form of a Certificate of
Designations attached hereto as Exhibit A and, to the extent that there is not a
sufficient number of shares of Series A Junior Participating Preferred Stock
authorized to permit the full exercise of the Rights, any other series of
Preferred Stock, par value $.01 per share, of the Company designated for such
purpose containing terms substantially similar to the terms of the Series A
Junior Participating Preferred Stock.

            (s) "Rights Agent" shall mean the Person named as the "Rights Agent"
in the preamble of this Agreement until a successor Rights Agent shall have
become such pursuant to the applicable provisions hereof, and thereafter "Rights
Agent" shall mean such successor Rights Agent. If at any time there is more than
one Person appointed by the Company as Rights Agent pursuant to the applicable
provisions of this Agreement, "Rights Agent" shall mean and include each such
Person.

            (t) "Stock Acquisition Date" shall mean the first date of public
announcement (which, for purposes of this definition, shall include, without
limitation, a report filed pursuant to the Exchange Act) by the Company or an
Acquiring Person that an Acquiring Person has become such.

            (u) "Subsidiary" shall mean, with reference to any Person, any
corporation or other entity of which securities or other ownership interests
having ordinary voting power sufficient to elect at least a majority of the
directors of such corporation or other entity (or other persons performing
similar functions) is beneficially owned, directly or indirectly, by such
Person, or otherwise controlled by such Person.

                                       4
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            (v) "Trading Day" with respect to a security shall mean a day on
which the principal national securities exchange on which such security is
listed or admitted to trading is open for the transaction of business, or, if
such security is not listed or admitted to trading on any national securities
exchange but is quoted by NASDAQ/NMS, a day on which NASDAQ/NMS reports trades,
or, if such security is not so quoted, a Business Day.

            (w) "Triggering Event" shall mean any Section 11(a)(ii) Event or any
Section 13 Event.

            Any determination required by the definitions contained in this
Section 1 shall be made by the Board of Directors of the Company in its good
faith judgment, which determination shall be binding on the Rights Agent and the
holders of the Rights.

            Additionally, the following terms shall have the meaning specified
in the indicated section of the Agreement:

Terms                                                               Section
-----                                                               -------

Adjustment Fraction...............................................11(p)(iv)

Adjustment Shares.................................................11(a)(ii)

Agreement..........................................................Preamble

common stock value equivalents...................................11(a)(iii)

Company............................................................Preamble

current market price..................................................11(d)

Current Value....................................................11(a)(iii)

equivalent preferred stock............................................11(b)

Exchange Ratio........................................................24(a)

Principal Party.......................................................13(b)

Purchase Price.........................................................4(a)

Record Date........................................................Recitals

Redemption Price......................................................23(a)

Rights.............................................................Recitals

Rights Certificate.....................................................3(a)

Rights Dividend Declaration Date...................................Recitals

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Section 11(a)(ii) Event...........................................11(a)(ii)

Section 11(a)(ii) Trigger Date...................................11(a)(iii)

Section 13 Event......................................................13(a)

Spread...........................................................11(a)(iii)

Substitution Period..............................................11(a)(iii)

            Section 2. Appointment of Rights Agent.

            The Company hereby appoints the Rights Agent to act as agent for the
Company and the holders of the Rights (who, in accordance with Section 3 hereof,
shall prior to the Distribution Date also be the holders of the Common Stock) in
accordance with the terms and conditions hereof, and the Rights Agent hereby
accepts such appointment. The Company may from time to time appoint such
co-Rights Agents as it may deem necessary or desirable, upon ten (10) days'
prior written notice to the Rights Agent. The Rights Agent shall have no duty to
supervise, and shall in no event be liable for, the acts or omissions of any
such co-Rights Agent.

            Section 3. Issue of Rights Certificates.

            (a) Until the earlier of the Distribution Date or the Expiration
Date, (x) the Rights will be evidenced (subject to Section 3(b) below) by the
certificates for the Common Stock registered in the names of the holders of the
Common Stock (which certificates for Common Stock shall also be deemed to be
certificates for Rights) and not by separate certificates, and (y) each Right
will be transferable only in connection with the transfer of the underlying
share of Common Stock (including a transfer to the Company). As soon as
practicable after the Distribution Date, the Rights Agent will send to each
record holder of the Common Stock as of the close of business on the
Distribution Date, at the address of such holder shown on the records of the
Company, one or more rights certificates, in substantially the form of Exhibit B
hereto (the "Rights Certificates"), evidencing one Right for each share of
Common Stock so held, subject to adjustment as provided herein. In the event
that an adjustment in the number of Rights per share of Common Stock has been
made pursuant to Section 11(p) hereof, at the time of distribution of the Rights
Certificates, the Company shall make the necessary and appropriate rounding
adjustments (in accordance with Section 14(a) hereof) so that Rights
Certificates representing only whole numbers of Rights are distributed and cash
is paid in lieu of any fractional Rights. As of and after the Distribution Date,
the Rights will be evidenced solely by such Rights Certificate.

            (b) As promptly as practicable following the Record Date, the
Company will send a copy of a Summary of Rights to Purchase Preferred Stock, in
substantially the form attached hereto as Exhibit C, to each record holder of
the Common Stock as of the Close of Business on the Record Date, at the address
of such holder shown on the records of the Company. With respect to certificates
for the Common Stock outstanding as of the Record Date, until the Distribution
Date or the earlier surrender for transfer thereof or the Expiration Date, the
Rights associated with the shares of Common Stock represented by such
certificates will be

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evidenced by such certificates for Common Stock and the registered holders of
the Common Stock shall also be the registered holders of the associated Rights.
Until the earlier of the Distribution Date or the Expiration Date, the transfer
or exchange of any certificates representing shares of Common Stock outstanding
on the Record Date in respect of which Rights have been issued, shall also
constitute the transfer or exchange, as the case may be, of the Rights
associated with such shares of Common Stock.

            (c) Rights shall be issued in respect of all shares of Common Stock
which are issued after the Record Date but prior to the earlier of the
Distribution Date or the Expiration Date or, in certain circumstances provided
in Section 22 hereof, after the Distribution Date. Certificates representing
such shares of Common Stock (including, without limitation, certificates issued
upon transfer or exchange of Common Stock) shall also be deemed to be
certificates for Rights, and shall bear a legend to the following effect:

            "This certificate also evidences Rights that entitle the holder
            hereof to certain rights as set forth in a Rights Agreement between
            the Company and Equiserve Trust Company, as Rights Agent (the
            "Rights Agreement"), the terms of which are incorporated herein by
            reference and a copy of which is on file at the principal offices of
            the Company. Under certain circumstances, as set forth in the Rights
            Agreement, such Rights will be evidenced by separate certificates
            and will no longer be evidenced by this certificate. The Company
            will mail to the holder of this certificate a copy of the Rights
            Agreement, as in effect on the date of mailing, without charge
            promptly after receipt of a written request therefor. Under certain
            circumstances set forth in the Rights Agreement, Rights issued to,
            or beneficially owned by, any Person who is, was or becomes an
            Acquiring Person or any Affiliate or Associate thereof (as such
            terms are defined in the Rights Agreement), whether currently held
            by or on behalf of such Person or by any subsequent holder, may
            become null and void."

            With respect to such certificates containing the foregoing legend,
until the earlier of the Distribution Date or the Expiration Date, the Rights
associated with the Common Stock represented by such certificates shall, until
the Distribution Date, be evidenced by such certificates alone and registered
holders of Common Stock shall also be the registered holders of the associated
Rights, and the transfer or exchange of any of such certificates shall also
constitute the transfer or exchange, as the case may be, of the Rights
associated with the Common Stock represented by such certificates.

            Section 4. Form of Rights Certificates.

            (a) The Rights Certificates (and the forms of election to purchase
and of assignment and of certificates to be printed on the reverse thereof)
when, as and if issued, shall each be substantially in the form set forth in
Exhibit B hereto and may have such marks of identification or designation and
such legends, summaries or endorsements printed thereon as the Company may deem
appropriate and as are not inconsistent with the provisions of this

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Agreement, or as may be required to comply with any applicable law or with any
rule or regulation made pursuant thereto or with any rule or regulation of any
stock exchange on which the Rights may from time to time be listed, or to
conform to usage. Subject to the provisions of Section 11 and Section 22 hereof,
the Rights Certificates, whenever distributed, shall be dated as of the Record
Date and on their face shall entitle the holders thereof to purchase such number
of one one-hundredths of a share of Preferred Stock as shall be set forth
therein at the price set forth therein in accordance with Section 7(b) hereof
(such exercise price per one one-hundredth of a share, the "Purchase Price"),
but the amount and type of securities purchasable upon the exercise of each
Right and the Purchase Price thereof shall be subject to adjustment as provided
herein.

            (b) Notwithstanding any other provision of this Agreement, any
Rights Certificate issued pursuant to Section 3(a) or Section 22 hereof that
represents Rights beneficially owned by any Person known to be: (i) an Acquiring
Person or any Associate or Affiliate of an Acquiring Person, (ii) a transferee
of an Acquiring Person (or of any such Associate or Affiliate) who becomes a
transferee after the Acquiring Person becomes such, or (iii) a transferee of an
Acquiring Person (or of any such Associate or Affiliate) who becomes a
transferee prior to or concurrently with the Acquiring Person becoming such and
receives such Rights pursuant to either (A) a transfer (whether or not for
consideration) from the Acquiring Person (or its Affiliates or Associates) to
holders of equity interests in such Acquiring Person (or its Affiliates or
Associates) or to any Person with whom such Acquiring Person has any continuing
agreement, arrangement or understanding regarding the transferred Rights or (B)
a transfer which the Board of Directors of the Company has determined is part of
a plan, arrangement or understanding which has a primary purpose or effect of
avoidance of Section 7(e) hereof, and any Rights Certificate issued pursuant to
Section 6 or Section 11 hereof upon transfer, exchange, replacement or
adjustment of any other Rights Certificate referred to in this sentence, shall
contain (to the extent feasible) a legend to the following effect, modified as
applicable to apply to such Person:

            "The Rights represented by this Rights Certificate are or were
            beneficially owned by a Person who was or became an Acquiring Person
            or an Affiliate or Associate of an Acquiring Person (as such terms
            are defined in the Rights Agreement). Accordingly, this Rights
            Certificate and the Rights represented hereby may become null and
            void in the circumstances specified in Section 7(e) of such
            Agreement."

The provisions of Section 7(e) of this Agreement shall be operative whether or
not the foregoing legend is contained on any such Rights Certificate. The
Company shall give notice to the Rights Agent promptly after it becomes aware of
any Acquiring Person or any Associate or Affiliate thereof.

            Section 5. Countersignature and Registration.

            (a) The Rights Certificates shall be executed on behalf of the
Company by its Chief Executive Officer, its President or any Vice President,
either manually or by facsimile signature, and shall have affixed thereto the
Company's seal or a facsimile thereof which shall be attested to by the
Secretary or an Assistant Secretary of the Company, either manually or by

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<PAGE>

facsimile signature. The Rights Certificates shall be manually countersigned by
the Rights Agent and shall not be valid for any purpose unless so countersigned.
In case any officer of the Company who shall have signed any of the Rights
Certificates shall cease to be such officer of the Company before
countersignature by the Rights Agent and issuance and delivery by the Company,
such Rights Certificates, nevertheless, may be countersigned by the Rights Agent
and issued and delivered by the Company with the same force and effect as though
the person who signed such Rights Certificates had not ceased to be such officer
of the Company; and any Rights Certificates may be signed on behalf of the
Company by any person who, at the actual date of the execution of such Rights
Certificate, shall be a proper officer of the Company to sign such Rights
Certificate, although at the date of the execution of this Rights Agreement any
such person was not such an officer.

            (b) Following the Distribution Date, the Rights Agent will keep or
cause to be kept, at its office or offices designated as the appropriate place
for surrender of Rights Certificates upon exercise or transfer, books for
registration and transfer of the Rights Certificates issued hereunder. Such
books shall show the names and addresses of the respective holders of the Rights
Certificates, the number of Rights evidenced on its face by each of the Rights
Certificates and the certificate number and date of each of the Rights
Certificates.

            Section 6. Transfer, Split Up, Combination and Exchange of Rights
            Certificates; Mutilated, Destroyed, Lost or Stolen Rights
            Certificates.

            (a) Subject to the provisions of Sections 4(b), 7(e), 14 and 24
hereof, at any time after the close of business on the Distribution Date, and at
or prior to the close of business on the Expiration Date, any Rights Certificate
may be transferred, split up, combined or exchanged for another Rights
Certificate, entitling the registered holder to purchase a like number of one
one-hundredths of a share of Preferred Stock (or, following a Triggering Event,
Common Stock, other securities, cash or other assets, as the case may be) as the
Rights Certificate surrendered then entitled such holder (or former holder in
the case of a transfer) to purchase. Any registered holder desiring to transfer,
split up, combine or exchange any Rights Certificate shall make such request in
writing delivered to the Rights Agent, and shall surrender the Rights
Certificate to be transferred, split up, combined or exchanged at the office(s)
of the Rights Agent designated for such purpose. Neither the Rights Agent nor
the Company shall be obligated to take any action whatsoever with respect to the
transfer of any such surrendered Rights Certificate until the registered holder
shall have completed and signed the certificate contained in the form of
assignment on the reverse side of such Rights Certificate and shall have
provided such additional evidence of the identity of the Beneficial Owner (or
former Beneficial Owner) or Affiliates or Associates thereof as the Company
shall reasonably request. Thereupon the Rights Agent shall, subject to Sections
4(b), 7(e), 14 and 24 hereof, countersign and deliver to the Person entitled
thereto a Rights Certificate, as so requested. The Company may require payment
of a sum sufficient to cover any tax or governmental charge that may be imposed
in connection with any transfer, split up, combination or exchange of a Rights
Certificate.

            (b) Upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation of
a Rights Certificate, and, in case of loss, theft or destruction, of indemnity
or security reasonably satisfactory to them, and reimbursement to the Company
and the Rights Agent of all reasonable expenses incidental

                                       9
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thereto, and upon surrender to the Rights Agent and cancellation of the Rights
Certificate if mutilated, the Company will execute and deliver a new Rights
Certificate of like tenor to the Rights Agent for countersignature and delivery
to the registered owner in lieu of the Rights Certificate so lost, stolen,
destroyed or mutilated.

            Section 7. Exercise of Rights; Purchase Price; Expiration Date of
Rights.

            (a) Subject to Section 7(e) hereof, the registered holder of any
Rights Certificate may exercise the Rights evidenced thereby (except as
otherwise provided herein including, without limitation, the restrictions on
exercisability set forth in Sections 9(c), 11(a)(iii) and 23(a) hereof), in
whole or in part at any time after the Distribution Date upon surrender of the
Rights Certificate, with the form of election to purchase and the certificate on
the reverse side thereof duly executed, to the Rights Agent at the office or
offices of the Rights Agent designated for such purposes, together with payment
of the aggregate Purchase Price with respect to the total number of one
one-hundredths of a share of Preferred Stock (or other securities, cash or other
assets, as the case may be) as to which such surrendered rights are then
exercisable, at or prior to the Expiration Date.

            (b) The Purchase Price for each one one-hundredth of a share of
Preferred Stock pursuant to the exercise of a Right shall initially be $42 and
shall be subject to adjustment from time to time as provided in Sections 11 and
13(a) hereof and shall be payable in accordance with Section 7(c) below.

            (c) Upon receipt of a Rights Certificate representing exercisable
Rights, with the form of election to purchase and the certificate on the reverse
side thereof duly executed, accompanied by payment, with respect to each right
so exercised, of the Purchase Price per one one-hundredth of a share of
Preferred Stock (or other securities, cash or other assets, as the case may be)
to be purchased as set forth below and an amount equal to any applicable
transfer tax, the Rights Agent shall, subject to Section 20(k) hereof, thereupon
promptly (i) (A) requisition from any transfer agent of the shares of Preferred
Stock (or make available, if the Rights Agent is the transfer agent for such
shares) certificates for the total number of one one-hundredths of a share of
Preferred Stock to be purchased and the Company hereby authorizes its transfer
agent to comply with all such requests, or (B) if the Company, in its sole
discretion, shall have elected to deposit the total number of shares of
Preferred Stock issuable upon exercise of the Rights hereunder with a depositary
agent, requisition from the depositary agent depositary receipts representing
such number of one one-hundredths of a share of Preferred Stock as are to be
purchased (in which case certificates for the shares of Preferred Stock
represented by such receipts shall be deposited by the transfer agent with the
depositary agent) and the Company will direct the depositary agent to comply
with such request, (ii) requisition from the Company an amount of cash, if any,
to be paid in lieu of fractional shares in accordance with Section 14 hereof,
(iii) after receipt of such certificates or depositary receipts, cause the same
to be delivered to or upon the order of the registered holder of such Rights
Certificate, registered in such name or names as may be designated by such
holder and (iv) after receipt thereof, deliver such cash, if any, to or upon the
order of the registered holder of such Rights Certificate. The payment of the
Purchase Price (as such amount may be reduced pursuant to Section 11(a)(iii)
hereof) may be made by bank draft, certified bank check or money order payable
to the order of the Company. In the event that the Company is obligated to issue
other securities (including Common Stock) of

                                       10
<PAGE>

the Company, pay cash and/or distribute other property pursuant to Section 11(a)
hereof, the Company will make all arrangements necessary so that such other
securities, cash and/or other property are available for distribution by the
Rights Agent, if and when appropriate. The Company reserves the right to require
prior to the occurrence of a Triggering Event that upon exercise of Rights, a
number of Rights be exercised so that only whole shares of Preferred Stock would
be issued.

            (d) In case the registered holder of any Rights Certificate shall
exercise less than all the Rights evidenced thereby, a new Rights Certificate
evidencing Rights equivalent to the Rights remaining unexercised shall be issued
by the Rights Agent and delivered to, or upon the order of, the registered
holder of such Rights Certificate, registered in such name or names, as may be
designated by such holder, subject to the provisions of Section 14 hereof.

            (e) Notwithstanding anything in this Agreement on the contrary, from
and after the occurrence of a Section 11(a)(ii) Event, any Rights beneficially
owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring
Person, (ii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate) who becomes a transferee after the Acquiring Person becomes such, or
(iii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate) who becomes a transferee prior to or concurrently with the Acquiring
Person becoming such and receives such Rights pursuant to either (A) a transfer
(whether or not for consideration) from such Acquiring Person (or such Affiliate
or Associate) to holders of equity interests in such Acquiring Person (or such
Affiliate or Associate) or to any Person with whom such Acquiring Person (or
such Affiliate or Associate) has any continuing agreement, arrangement or
understanding regarding the transferred Rights or (B) a transfer which the Board
of Directors of the Company has determined is part of a plan, arrangement or
understanding which has as a primary purpose or effect the avoidance of this
Section 7(e), shall become null and void without any further action and no
holder of such Rights shall have any rights whatsoever with respect to such
Rights, whether under any provision of this Agreement or otherwise. The Company
shall use all reasonable efforts to ensure that the provisions of this Section
7(e) and Section 4(b) hereof are complied with, but shall have no liability to
any holder of Rights Certificates or other Person as a result of its failure to
make any determinations with respect to an Acquiring Person or any of the
respective Affiliates, Associates or transferees hereunder.

            (f) Notwithstanding anything in this Agreement to the contrary,
neither the Rights Agent nor the Company shall be obligated to undertake any
action with respect to a registered holder upon the occurrence of any purported
exercise as set forth in this Section 7 unless such registered holder shall have
(i) completed and signed the certificate contained in the form of election to
purchase set forth on the reverse side of the Rights Certificate surrendered for
such exercise, and (ii) provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
thereof as the Company shall reasonably request.

            Section 8. Cancellation and Destruction of Rights Certificates.

            All Rights Certificates surrendered for the purpose of exercise,
transfer, split up, combination or exchange shall, if surrendered to the Company
or any of its agents, be delivered

                                       11
<PAGE>

to the Rights Agent for cancellation or in cancelled form, or, if surrendered to
the Rights Agent, shall be cancelled by it, and no Rights Certificates shall be
issued in lieu thereof except as expressly permitted by any of the provisions of
this Agreement. The Company shall deliver to the Rights Agent for cancellation
and retirement, and the Rights Agent shall so cancel and retire, any other
Rights Certificate purchased or acquired by the Company otherwise than upon the
exercise thereof. The Rights Agent shall deliver all cancelled Rights
Certificates to the Company, or shall, at the written request of the Company,
destroy such cancelled Rights Certificates, and in such case shall deliver a
certificate of destruction thereof to the Company.

            Section 9. Reservation and Availability of Capital Stock.

            (a) The Company covenants and agrees that it will use its best
efforts to reserve and keep available out of its authorized and unissued shares
of Preferred Stock (and, following the occurrence of a Triggering Event, out of
its authorized and unissued shares of Common Stock and/or other securities), or
any authorized and issued shares held in its treasury, the number of shares of
Preferred Stock (and, following the occurrence of a Triggering Event, Common
Stock and/or other securities) that, as provided in this Agreement including
Section 11(a)(iii) hereof, will be sufficient to permit the exercise in full of
all outstanding Rights; provided, however, that the Company shall not be
required to reserve and keep available shares of Preferred Stock or other
securities sufficient to permit the exercise in full of all outstanding Rights
pursuant to the adjustments set forth in Sections 11(a)(ii), 11(a)(iii) or 13
hereof unless, and only to the extent that, the Rights become exercisable
pursuant to such adjustments.

            (b) So long as the shares of Preferred Stock (and, following the
occurrence of a Triggering Event, Common Stock and/or other securities) issuable
and deliverable upon the exercise of Rights may be listed on any national
securities exchange or quoted on any trading system, the Company shall use its
best efforts to cause, from and after such time as the Rights become
exercisable, all shares reserved for such issuance to be listed on such exchange
or quoted on such system upon official notice of issuance upon such exercise.

            (c) If necessary to permit the offer and issuance of securities
purchasable upon the exercise of Rights, the Company shall use its best efforts
to (i) prepare and file, as soon as practicable following the occurrence of a
Section 11(a)(ii) Event on which the consideration to be delivered by the
Company upon exercise of the Rights has been determined in accordance with
Section 11(a)(iii) hereof, or as soon as is required by law following the
Distribution Date, as the case may be, a registration statement on an
appropriate form under the Act, with respect to the securities purchasable upon
exercise of the Rights, (ii) cause such registration statement to become
effective as soon as practicable after such filing and (iii) cause such
registration statement to remain effective (with a prospectus at all times
meeting the requirements of the Act) until the earlier of (A) the date as of
which the Rights are no longer exercisable for such securities, and (B) the
Expiration Date. The Company will also take such action as may be appropriate
under, or to ensure compliance with, the securities or "blue sky" laws of the
various states in connection with the exercisability of the Rights. The Company
may temporarily suspend for a period of time not to exceed ninety (90) days
after the date set forth in clause (i) of the first sentence of this Section
9(c), the exercisability of the Rights in order to prepare and file such
registration statement and permit it to become effective. Upon any such
suspension, the Company shall issue a public announcement stating that the
exercisability of the Rights has been

                                       12
<PAGE>

temporarily suspended, as well as a public announcement at such time as the
suspension is no longer in effect. Notwithstanding any provision of this
Agreement to the contrary, the Rights shall not be exercisable in any
jurisdiction, unless the requisite qualification in such jurisdiction shall have
been obtained and until a registration statement (if required) has been declared
effective.

            (d) The Company covenants and agrees that it will take all such
action as may be necessary to ensure that all one one-hundredths of a share of
Preferred Stock (and, following the occurrence of a Triggering Event, Common
Stock and/or other securities) delivered upon exercise of Rights shall, at the
time of delivery of the certificate for such shares (subject to payment of the
Purchase Price), be duly and validly authorized and issued and fully paid and
non-assessable.

            (e) The Company further covenants and agrees that it will pay when
due and payable any and all federal and state transfer taxes and charges which
may be payable in respect of the issuance or delivery of the Rights Certificates
and of any certificates for one one-hundredths of a share of Preferred Stock
upon the exercise of Rights. The Company shall not, however, be required to pay
any transfer tax that may be payable in respect of any transfer or delivery of a
Rights Certificate to a Person other than, or the issuance or delivery of one
one-hundredths of a share of Preferred Stock in respect of a name other than
that of, the registered holder of the Rights Certificates evidencing Rights
surrendered for exercise or to issue or deliver any certificates for one
one-hundredths of a share of Preferred Stock in a name other than that of the
registered holder upon the exercise of any Rights until such tax shall have been
paid (any such tax being payable by the holder of such Rights Certificate at the
time of surrender) or until it has been established to the Company's
satisfaction that no such tax is due.

            Section 10. Preferred Stock Record Date.

            Each person in whose name any certificate for a number of one
one-hundredths of a share of Preferred Stock (or Common Stock and/or other
securities, as the case may be) is issued upon the exercise of Rights shall for
all purposes be deemed to have become the holder of record of such shares
(fractional or otherwise) of Preferred Stock (or Common Stock and/or other
securities, as the case may be) represented thereby on, and such certificate
shall be dated as of, the date upon which the Rights Certificate evidencing such
Rights was duly surrendered and payment of the Purchase Price (and all
applicable transfer taxes) was made; provided, however, that if the date of such
surrender and payment is a date upon which the Preferred Stock (or Common Stock
and/or other securities, as the case may be) transfer books of the Company are
closed, such Person shall be deemed to have become the record holder of such
shares (fractional or otherwise) on, and such certificate shall be dated, the
next succeeding Business Day on which the Preferred Stock transfer books of the
Company are open. Prior to the exercise of the Rights evidenced thereby, the
holder of a Rights Certificate, as such, shall not be entitled to any rights of
a stockholder of the Company with respect to shares for which the Rights shall
be exercisable, including, without limitation, the right to vote, to receive
dividends or other distributions or to exercise any preemptive rights, and shall
not be entitled to receive any notice of any proceedings of the Company, except
as provided herein.

                                       13
<PAGE>

            Section 11. Adjustment of Purchase Price, Number and Kind of Shares
            or Number of Rights.

            The Purchase Price, the number and kind of shares covered by each
Right and the number of Rights outstanding are subject to adjustment from time
to time as provided in this Section 11.

            (a) (i) In the event the Company shall at any time after the Rights
Dividend Declaration Date (A) declare a dividend on the Preferred Stock payable
in shares of Preferred Stock, (B) subdivide the outstanding Preferred Stock, (C)
combine the outstanding Preferred Stock into a smaller number of shares, or (D)
issue any shares of its capital stock in a reclassification of the Preferred
Stock (including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing or surviving corporation), except
as otherwise provided in this Section 11(a) and Section 7(e) hereof, the
Purchase Price in effect at the time of the record date for such dividend or of
the effective date of such subdivision, combination or reclassification, and the
number and kind of shares of Preferred Stock or capital stock, as the case may
be, issuable on such date, shall be proportionately adjusted so that the holder
of any Right exercised after such time shall be entitled to receive, upon
payment of the Purchase Price then in effect, the aggregate number and kind of
shares of Preferred Stock which, if such Right had been exercised immediately
prior to such date and at a time when the Preferred Stock transfer books of the
Company were open, he would have owned upon such exercise and been entitled to
receive by virtue of such dividend, subdivision, combination or
reclassification. If an event occurs which would require an adjustment under
both this Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided
for in this Section 11(a)(i) shall be in addition to, and shall be made prior
to, any adjustment required pursuant to Section 11(a)(ii) hereof.

                  (ii) Subject to Section 24 of this Agreement, in the event any
Person (other than an Exempt Person), alone or together with its Affiliates and
Associates, shall, at any time after the Rights Dividend Declaration Date,
become an Acquiring Person, unless the event causing such Person to become an
Acquiring Person is a transaction set forth in Section 13(a) hereof, then,
promptly following the occurrence of such event (a "Section 11(a)(ii) Event"),
each holder of a Right (except as provided below and in Section 7(e) hereof)
shall thereafter have the right to receive, upon exercise thereof at the then
current Purchase Price in accordance with the terms of this Agreement, in lieu
of a number of one one-hundredths of a share of Preferred Stock, such number of
shares of Common Stock of the Company as shall equal the result obtained by (x)
multiplying the then current Purchase Price by the number of one one-hundredths
of a share of Preferred Stock for which a Right was exercisable immediately
prior to the first occurrence of a Section 11(a)(ii) Event, and (y) dividing
that product (which, following such first occurrence, shall thereafter be
referred to as the "Purchase Price" for each Right and for all purposes of this
Agreement) by 50% of the current market price (determined pursuant to Section
11(d) hereof) per share of Common Stock on the date of such first occurrence
(such number of shares is herein called the "Adjustment Shares"); provided that
the Purchase Price and the number of Adjustment Shares shall be further adjusted
as provided in this Agreement to reflect any events occurring after the date of
such first occurrence; and provided, further, that if the transaction that would
otherwise give rise to the foregoing adjustment is also subject to the
provisions of Section 13 hereof, then only the provisions of Section 13 hereof
shall apply and no adjustment shall be made pursuant to this Section 11(a)(ii).

                                       14
<PAGE>

                  (iii) In the event that the number of shares of Common Stock
which are authorized by the Company's certificate of incorporation but not
outstanding or reserved for issuance for purposes other than upon exercise of
the Rights is not sufficient to permit the exercise in full of the Rights in
accordance with the foregoing subparagraph (ii) of this Section 11(a) and the
Rights shall become so exercisable, the Company shall, to the extent permitted
by applicable law and regulation: (A) determine the excess of (1) the value of
the Adjustment Shares issuable upon the exercise of a Right (computed using the
current market price used to determine the number of Adjustment Shares) (the
"Current Value") over (2) the Purchase Price (such excess is herein referred to
as, the "Spread"), and (B) with respect to each Right, make adequate provision
to substitute for the Adjustment Shares, upon the exercise of the Rights and
payment of the applicable Purchase Price, (1) cash, (2) a reduction in the
Purchase Price, (3) nonvoting common stock or other equity securities of the
Company (including, without limitation, shares, or units of shares, of preferred
stock which the Board of Directors of the Company has deemed to have the same
value as shares of Common Stock) (such other equity securities are herein
referred to as, "common stock value equivalents"), (4) debt securities of the
Company, (5) other assets or (6) any combination of the foregoing, having an
aggregate value equal to the Current Value, where such aggregate value has been
determined by the Board of Directors of the Company based upon the advice of a
nationally recognized investment banking firm selected by the Board of Directors
of the Company; provided, however, if the Company shall not have made adequate
provision to deliver value pursuant to clause (B) above within thirty (30) days
following the later of (x) the occurrence of a Section 11(a)(ii) Event and (y)
the date on which the Company's right of redemption pursuant to Section 23(a)
expires (the later of (x) and (y) being referred to herein as the "Section
11(a)(ii) Trigger Date"), then the Company shall be obligated to deliver, upon
the surrender for exercise of a Right and without requiring payment of the
Purchase Price, shares of Common Stock (to the extent available) and then, if
necessary, cash which shares and/or cash have an aggregate value equal to the
Spread. If the Board of Directors of the Company shall determine in good faith
that it is likely that sufficient additional shares of Common Stock could be
authorized for issuance upon exercise in full of the Rights, the thirty (30) day
period set forth above may be extended to the extent necessary, but not more
than ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that
the Company may seek stockholder approval for the authorization of such
additional shares (such period, as it may be extended, the "Substitution
Period"). To the extent that the Company determines that some action need be
taken pursuant to the first and/or second sentences of this Section 11(a)(iii),
the Company (x) shall provide, subject to Section 7(e) hereof, that such action
shall apply uniformly to all outstanding Rights, and (y) may suspend the
exercisability of the Rights until the expiration of the Substitution Period in
order to seek any authorization of additional shares and/or to decide the
appropriate form of distribution to be made pursuant to such first sentence and
to determine the value thereof. In the event of any such suspension, the Company
shall issue a public announcement stating that the exercisability of the Rights
has been temporarily suspended, as well as a public announcement at such time as
the suspension is no longer in effect. For purposes of this Section 11(a)(iii),
the value of the Common Stock shall be the current market price (as determined
pursuant to Section 11(d) hereof) per share of the Common Stock on the Section
11(a)(ii) Trigger Date and the value of any common stock equivalent shall be
deemed to have the same value as the Common Stock on such date. The Board of
Directors may, but shall not be required to, establish procedures to allocate
the right to receive Common Stock upon the exercise of Rights pursuant to this
Section 11(a)(iii).

                                       15
<PAGE>

            (b) In case the Company shall fix a record date for the issuance of
rights (other than the Rights), options or warrants to all holders of Preferred
Stock entitling them to subscribe for or purchase (for a period expiring within
forty-five (45) calendar days after such record date) Preferred Stock (or shares
having the same rights, privileges and preferences as the shares of Preferred
Stock ("equivalent preferred stock")) or securities convertible into Preferred
Stock or equivalent preferred stock at a price per share of Preferred Stock or
per share of equivalent preferred stock (or having a conversion price per share,
if a security convertible into Preferred Stock or equivalent preferred stock)
less than the current market price (as determined pursuant to Section 11(d)
hereof) per share of Preferred Stock on such record date, the Purchase Price to
be in effect after such record date shall be determined by multiplying the
Purchase Price in effect immediately prior to such record date by a fraction,
the numerator of which shall be the number of shares of Preferred Stock
outstanding on such record date, plus the number of shares of Preferred Stock
that the aggregate offering price of the total number of shares of Preferred
Stock and/or equivalent preferred stock so to be offered (or into which the
convertible securities so to be offered are initially convertible) would
purchase at such current market price and the denominator of which shall be the
number of shares of Preferred Stock outstanding on such record date, plus the
number of additional shares of Preferred Stock and/or equivalent preferred stock
to be offered for subscription or purchase (or into which the convertible
securities so to be offered are initially convertible). In case such
subscription price may be paid by delivery of consideration, part or all of
which may be in a form other than cash, the value of such consideration shall be
as determined in good faith by the Board of Directors of the Company, whose
determination shall be described in a statement filed with the Rights Agent and
shall be binding on the Rights Agent and the holders of the Rights. Shares of
Preferred Stock owned by or held for the account of the Company shall not be
deemed outstanding for the purpose of any such computation. Such adjustment
shall be made successively whenever such a record date is fixed, and in the
event that such rights or warrants are not so issued, the Purchase Price shall
be adjusted to be the Purchase Price which would then be in effect if such
record date had not been fixed.

            (c) In case the Company shall fix a record date for a distribution
to all holders of Preferred Stock (including any such distribution made in
connection with a consolidation or merger in which the Company is the surviving
corporation) of evidences of indebtedness, cash (other than a regular quarterly
cash dividend out of the earnings or retained earnings of the Company), assets
(other than a dividend payable in Preferred Stock, but including any dividend
payable in stock other than Preferred Stock) or subscription rights or warrants
(excluding those referred to in Section 11(b) hereof), the Purchase Price to be
in effect after such record date shall be determined by multiplying the Purchase
Price in effect immediately prior to such record date by a fraction, the
numerator of which shall be the current market price (as determined pursuant to
Section 11(d) hereof) per share of Preferred Stock on such record date, less the
fair market value (as determined in good faith by the Board of Directors of the
Company, whose determination shall be described in a statement filed with the
Rights Agent and shall be binding on the Rights Agent) of the portion of the
cash, assets or evidences of indebtedness so to be distributed or of such
subscription rights or warrants applicable to a share of Preferred Stock and the
denominator of which shall be such current market price (as determined pursuant
to Section 11(d) hereof) per share of Preferred Stock. Such adjustments shall be
made successively whenever such a record date is fixed, and in the event that
such distribution is not so made, the Purchase Price shall be

                                       16
<PAGE>

adjusted to be the Purchase Price which would have been in effect if such record
date had not been fixed.

            (d) (i) For the purpose of any computation hereunder, other than
computations made pursuant to Section 11(a)(iii) hereof, the "current market
price" per share of Common Stock on any date shall be deemed to be the average
of the daily closing prices per share of such Common Stock for the thirty (30)
consecutive Trading Days immediately prior to such date, and for purposes of
computations made pursuant to Section 11(a)(iii) hereof, the "current market
price" per share of Common Stock on any date shall be deemed to be the average
of the daily closing prices per share of such Common Stock for the ten (10)
consecutive Trading Days immediately following such date; provided, however,
that in the event that the current market price per share of the Common Stock is
determined during a period following the announcement by the issuer of such
Common Stock of (A) a dividend or distribution on such Common Stock payable in
shares of such Common Stock or securities convertible into shares of such Common
Stock (other than the dividend of the Rights), or (B) any subdivision,
combination or reclassification of such Common Stock, and prior to the
expiration of the requisite thirty (30) Trading Day or ten (10) Trading Day
period, as set forth above, after the ex-dividend date for such dividend or
distribution, or the record date for such subdivision, combination or
reclassification, then, and in each such case, the "current market price" shall
be properly adjusted to take into account ex-dividend trading. The closing price
for each day shall be the last sale price, regular way, or, in case no such sale
takes place on such a day, the average of the closing bid and asked prices,
regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to
trading on the New York Stock Exchange or, if the shares of Common Stock are not
listed or admitted to trading on the New York Stock Exchange, as reported in the
principal consolidated transaction reporting system with respect to securities
listed on the principal national securities exchange on which the shares of
Common Stock are listed or admitted to trading or, if the shares of Common Stock
are not listed or admitted to trading on any national securities exchange the
last quoted price or, if not so quoted, the average of the high bid and low
asked prices in the over-the-counter market, as reported by NASDAQ/NMS or such
other system then in use, or, if on any such date the shares of Common Stock are
not quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional market maker making a market in the Common
Stock selected by the Board of Directors of the Company. If on any such date no
market maker is making a market in the Common Stock, the fair value of such
shares on such date as determined in good faith by the Board of Directors of the
Company shall be used. If the Common Stock is not publicly held or not so listed
or traded, "current market price" per share shall mean the fair value per share
as determined in good faith by the Board of Directors of the Company, whose
determination shall be described in a statement filed with the Rights Agent and
shall be conclusive for all purposes.

                  (ii) For the purpose of any computation hereunder, the
"current market price" per share (or one one-hundredth of a share) of Preferred
Stock shall be determined in the same manner as set forth above for the Common
Stock in clause (i) of this Section 11(d). If the current market price per share
(or one one-hundredth of a share) of Preferred Stock cannot be determined in the
manner provided above or if the Preferred Stock is not publicly held or listed
or traded in a manner described in clause (i) of this Section 11(d), the
"current market price" per share of Preferred Stock shall be conclusively deemed
to be an amount equal to 100 (as such

                                       17
<PAGE>

number may be appropriately adjusted for such events as stock splits, stock
dividends and recapitalizations with respect to the Common Stock occurring after
the date of this Agreement) multiplied by the current market price per share of
the Common Stock. If neither the Common Stock nor the Preferred Stock is
publicly held or so listed or traded, current market price per share of the
Preferred Stock shall mean the fair value per share as determined in good faith
by the Board of Directors of the Company, whose determination shall be described
in a statement filed with the Rights Agent and shall be conclusive for all
purposes. For all purposes of this Agreement, the current market price of one
one-hundredth of a share of Preferred Stock shall be equal to the current market
price of one share of Preferred Stock divided by 100.

            (e) Anything herein to the contrary notwithstanding, no adjustment
in the Purchase Price shall be required unless such adjustment would require an
increase or decrease of at least one percent (1%) in the Purchase Price;
provided, however, that any adjustments which by reason of this Section 11(e)
are not required to be made shall be carried forward and taken into account in
any subsequent adjustment. All calculations under this Section 11 shall be made
to the nearest cent or to the nearest ten-thousandth of a share of Common Stock
or other share or one-millionth of a share of Preferred Stock, as the case may
be. Notwithstanding the first sentence of this Section 11(e), an adjustment
required by this Section 11 shall be made no later than the earlier of (i) three
(3) years from the date of the transaction which mandates such adjustments, or
(ii) the Expiration Date.

            (f) If as a result of an adjustment made pursuant to Section
11(a)(ii) or 13(a) hereof, the holder of any Right thereafter exercised shall
become entitled to receive in respect of such Right any shares of capital stock
other than Preferred Stock, thereafter the number of such other shares so
receivable upon exercise of any Right and the Purchase Price thereof shall be
subject to adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to the Preferred Stock
contained in Sections 11(a), (b), (c), (e), (f), (g), (h), (i), (j), (k) and
(m), and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to
the Preferred Stock shall apply on like terms to any such other shares.

            (g) All Rights originally issued by the Company subsequent to any
adjustment made to the Purchase Price hereunder shall evidence the right to
purchase, at the adjusted Purchase Price, the number of one one-hundredths of a
share of Preferred Stock purchasable from time to time hereunder upon exercise
of the Rights, all subject to further adjustment as provided herein.

            (h) Unless the Company shall have exercised its election as provided
in Section 11(i), upon each adjustment of the Purchase Price as a result of the
calculations made in Sections 11(b) and (c), each Right outstanding immediately
prior to the making of such adjustment shall thereafter evidence the right to
purchase, at the adjusted Purchase Price, that number of one one-hundredths of a
share of Preferred Stock (calculated to the nearest one- millionth) obtained by
(i) multiplying (x) the number of one one-hundredths of a share of Preferred
Stock covered by a Right immediately prior to this adjustment, by (y) the
Purchase Price in effect immediately prior to such adjustment of the Purchase
Price, and (ii) dividing the product so obtained by the Purchase Price in effect
immediately after such adjustment of the Purchase Price.

                                       18
<PAGE>

            (i) The Company may elect on or after the date of any adjustment of
the Purchase Price to adjust the number of Rights, in lieu of any adjustment in
the number of one one-hundredths of a share of Preferred Stock purchasable upon
the exercise of a Right. Each of the Rights outstanding after the adjustment in
the number of Rights shall be exercisable for the number of one one-hundredths
of a share of Preferred Stock for which a Right was exercisable immediately
prior to such adjustment. Each Right held of record prior to such adjustment of
the number of Rights shall become that number of Rights (calculated to the
nearest hundred-thousandth) obtained by dividing the Purchase Price in effect
immediately prior to such adjustment by the Purchase Price in effect immediately
after such adjustment. The Company shall make a public announcement of its
election to adjust the number of Rights, indicating the record date for the
adjustment, and, if known at the time, the amount of the adjustment to be made.
This record date may be the date on which the Purchase Price is adjusted or any
day thereafter, but, if the Rights Certificates have been issued, shall be at
least ten (10) days later than the date of the public announcement. If Rights
Certificates have been issued, upon each adjustment of the number of Rights
pursuant to this Section 11(i), the Company shall, as promptly as practicable,
cause to be distributed to holders of record of Rights Certificates on such
record date Rights Certificates evidencing, subject to Section 14 hereof, the
additional Rights to which such holders shall be entitled as a result of such
adjustment, or, at the option of the Company, shall cause to be distributed to
such holders of record in substitution and replacement for the Rights
Certificates held by such holders prior to the date of adjustment, and upon
surrender thereof, if required by the Company, new Rights Certificates
evidencing all the Rights to which such holders shall be entitled after such
adjustment. Rights Certificates so to be distributed shall be issued, executed
and countersigned in the manner provided for herein (and may bear, at the option
of the Company, the adjusted Purchase Price) and shall be registered in the
names of the holders of record of Rights Certificates on the record date
specified in the public announcement.

            (j) Irrespective of any adjustment or change in the Purchase Price
or the number of one one-hundredths of a share of Preferred Stock issuable upon
the exercise of the Rights, the Rights Certificates theretofore and thereafter
issued may continue to express the Purchase Price per one one-hundredth of a
share and the number of one one-hundredths of a share which were expressed in
the initial Rights Certificates issued hereunder.

            (k) Before taking any action that would cause an adjustment reducing
the Purchase Price below the then par value or stated value, if any, of the
number of one one-hundredths of a share of Preferred Stock or of the number of
shares of Common Stock or other securities issuable upon exercise of the Rights,
the Company shall take any corporate action which may, in the opinion of its
counsel, be necessary in order that the Company may validly and legally issue
fully paid and nonassessable such number of one one-hundredths of a share of
Preferred Stock or such number of shares of Common Stock or other securities at
such adjusted Purchase Price.

            (l) In any case in which this Section 11 shall require that an
adjustment in the Purchase Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event the issuance to the holder of any Right exercised after such record date
the number of one one-hundredths of a share of Preferred Stock and other capital
stock or securities of the Company, if any, issuable upon such exercise over and
above

                                       19
<PAGE>

the number of shares of Common Stock and other capital stock or securities of
the Company, if any, issuable upon such exercise on the basis of the Purchase
Price in effect prior to such adjustment; provided, however, that the Company
shall deliver to such holder a due bill or other appropriate instrument
evidencing such holder's right to receive such additional shares (fractional or
otherwise) or securities upon the occurrence of the event requiring such
adjustment.

            (m) Anything in this Section 11 to the contrary notwithstanding, the
Company shall be entitled to make such reductions in the Purchase Price, in
addition to those adjustments expressly required by this Section 11, as and to
the extent that in their good faith judgment the Board of Directors of the
Company shall determine to be advisable in order that any (i) consolidation or
subdivision of the Preferred Stock, (ii) issuance wholly for cash of any shares
of Preferred Stock at less than the current market price, (iii) issuance wholly
for cash of shares of Preferred Stock or securities which by their terms are
convertible into or exchangeable for shares of Preferred Stock, (iv) stock
dividends or (v) issuance of rights, options or warrants referred to in this
Section 11, hereafter made by the Company to holders of its Preferred Stock
shall not be taxable to such stockholders.

            (n) The Company covenants and agrees that it shall not, at any time
after the Distribution Date, (i) consolidate with any other Person (other than a
Subsidiary of the Company in a transaction which complies with Section 11(o)
hereof), (ii) merge with or into any other Person (other than a Subsidiary of
the Company in a transaction which complies with Section 11(o) hereof), or (iii)
sell or transfer (or permit any Subsidiary to sell or transfer), in one
transaction, or a series of related transactions, assets or earning power
aggregating more than 50% of the assets or earning power of the Company and its
Subsidiaries (taken as a whole) to any other Person or Persons (other than the
Company and/or any of its Subsidiaries in one or more transactions each of which
complies with Section 11(o) hereof), if (x) at the time of or immediately after
such consolidation, merger, sale or transfer there are any rights, warrants or
other instruments or securities outstanding or agreements in effect which would
substantially diminish or otherwise eliminate the benefits intended to be
afforded by the Rights or (y) prior to, simultaneously with or immediately after
such consolidation, merger, sale or transfer, the shareholders or other equity
owners of the Person who constitutes, or would constitute, the "Principal Party"
for purposes of Section 13(a) hereof shall have received a distribution of
Rights previously owned by such Person or any of its Affiliates or Associates,
or (z) the identity, form or nature of organization of the Principal Party
(including, without limitation, the selection of the Person that will be the
Principal Party as a result of the Company's entering into one or more
consolidations, mergers, sales, leases, transfers or transactions with more than
one party) would preclude or limit the exercise of Rights or otherwise diminish
substantially or eliminate the benefits intended to be afforded by the Rights.

            (o) The Company covenants and agrees that, after the Distribution
Date, it will not, except as permitted by Sections 23 or 26 hereof, take (or
permit any Subsidiary to take) any action if the purpose of such action is to,
or if at the time such action is taken it is reasonably foreseeable that such
action will, diminish substantially or otherwise eliminate the benefits intended
to be afforded by the Rights.

            (p) Anything in this Agreement to the contrary notwithstanding, in
the event that the Company shall at any time after the Rights Dividend
Declaration Date and prior to the

                                       20
<PAGE>

Distribution Date (i) declare a dividend on the outstanding shares of Common
Stock payable in shares of Common Stock, (ii) subdivide the outstanding shares
of Common Stock, (iii) combine the outstanding shares of Common Stock into a
smaller number of shares or (iv) otherwise reclassify the outstanding shares of
Common Stock, the number of Rights associated with each share of Common Stock
then outstanding, or issued or delivered thereafter but prior to the
Distribution Date, shall be proportionately adjusted so that the number of
Rights thereafter associated with each share of Common Stock following any such
event shall equal the result obtained by multiplying the number of Rights
associated with each share of Common Stock immediately prior to such event by a
fraction (the "Adjustment Fraction") the numerator of which shall be the total
number of shares of Common Stock outstanding immediately prior to the occurrence
of the event and the denominator of which shall be the total number of shares of
Common Stock outstanding immediately following the occurrence of such event. In
lieu of such adjustment in the number of Rights associated with one share of
Common Stock, the Company may elect to adjust the number of one one-hundredths
of a share of Preferred Stock purchasable upon the exercise of one Right and the
Purchase Price. If the Company makes such election, the number of Rights
associated with one share of Common Stock shall remain unchanged, and the number
of one one-hundredths of a share of Preferred Stock purchasable upon exercise of
one Right and the Purchase Price shall be proportionately adjusted so that (i)
the number of one one-hundredths of a share of Preferred Stock purchasable upon
exercise of a Right following such adjustment shall equal the product of the
number of one one-hundredths of a share of Preferred Stock purchasable upon
exercise of a Right immediately prior to such adjustment multiplied by the
Adjustment Fraction and (ii) the Purchase Price following such adjustment shall
equal the product of the Purchase Price immediately prior to such adjustment
multiplied by the Adjustment Fraction.

            Section 12. Certificate of Adjusted Purchase Price or Number of
            Shares.

            Whenever an adjustment is made as provided in Sections 11 and 13
hereof, the Company shall (a) promptly prepare a certificate setting forth such
adjustment and a brief statement of the facts accounting for such adjustment,
(b) promptly file with the Rights Agent, and with each transfer agent for the
Preferred Stock and the Common Stock, a copy of such certificate, and (c) mail a
brief summary thereof to each holder of a Rights Certificate (or, if prior to
the Distribution Date, to each holder of a certificate representing shares of
Common Stock) in accordance with Section 25 hereof. Notwithstanding the
foregoing sentence, the failure of the Company to give such notice shall not
affect the validity of or the force or effect of or the requirement for such
adjustment. The Rights Agent shall be fully protected in relying on any such
certificate and any adjustment to be made pursuant to Sections 11 and 13 of this
Agreement shall be effective as of the date of the event giving rise to such
adjustment.

            Section 13. Consolidation, Merger or Sale or Transfer of Assets or
            Earning Power.

            (a) In the event that, on or after the Stock Acquisition Date,
directly or indirectly, (x) the Company shall consolidate with, or merge with
and into, any other Person (other than a Subsidiary of the Company in a
transaction that complies with Section 11(o) hereof), and the Company shall not
be the continuing or surviving corporation of such consolidation or merger, or
any Person (other than a Subsidiary of the Company in a transaction

                                       21
<PAGE>

that complies with Section 11(o) hereof) shall consolidate with, or merge with
or into, the Company, and the Company shall be the continuing or surviving
corporation of such consolidation or merger, and, in connection with such
consolidation or merger, all or part of the outstanding shares of Common Stock
shall be changed into or exchanged for stock or other securities of the Company
or any other Person or cash or any other property, (y) the Company or one or
more of its Subsidiaries shall sell or otherwise transfer, in one transaction or
a series of related transactions, assets or earning power aggregating more than
50% of the assets or earning power of the Company and its Subsidiaries (taken as
a whole) to any other Person (other than a Subsidiary of the Company in a
transaction that complies with Section 11(o) hereof), or (z) there shall be
effected any reclassification of securities (including any reverse stock split),
or recapitalization, of the Company, or any merger or consolidation of the
Company with any of its Subsidiaries or any other transaction or series of
transactions (whether or not with or into or otherwise involving an Acquiring
Person), which has the effect, directly or indirectly, of increasing by more
than 1% the proportionate share of the outstanding shares of any class of equity
or convertible securities of the Company or any of its Subsidiaries of which,
directly or indirectly, any Acquiring Person or any Affiliate or Associate
thereof is the Beneficial Owner (each of clauses (x), (y) and (z) a "Section 13
Event"), then, and in each such case, proper provision shall be made so that:
(i) on and after the Distribution Date each holder of a Right, except as
provided in Section 7(e) hereof, shall thereafter have the right to receive,
upon the exercise thereof at the then current Purchase Price in accordance with
the terms of this Agreement, such number of validly authorized and issued, fully
paid, nonassessable and freely tradeable shares of Common Stock of the Principal
Party (as such term is hereinafter defined), not subject to any liens,
encumbrances, rights of first refusal or other adverse claims, as shall be equal
to the result obtained by (1) multiplying the then current Purchase Price by the
number of one one-hundredths of a share of Preferred Stock for which a Right was
exercisable immediately prior to the first occurrence of a Section 13 Event (or,
if a Section 11(a)(ii) Event has occurred prior to the first occurrence of a
Section 13 Event, multiplying the number of one one-hundredths of a Share of
Preferred Stock for which a Right was exercisable immediately prior to the first
occurrence of a Section 11(a)(ii) Event by the Purchase Price in effect
immediately prior to such first occurrence) and (2) dividing that product
(which, following the first occurrence of a Section 13 Event, shall be referred
to as the "Purchase Price" for each Right and for all purposes of this
Agreement) by 50% of the current market price (determined pursuant to Section
11(d)(i) hereof) per share of the Common Stock of such Principal Party on the
date of consummation of such Section 13 Event (or the fair market value on such
date of other securities or property of the Principal Party, as provided for
herein); provided that the Purchase Price and the number of shares of Common
Stock of such Principal Party issuable upon exercise of each Right shall be
further adjusted as provided in this Agreement to reflect any events occurring
after the date of the first occurrence of a Section 13 Event; (ii) such
Principal Party shall thereafter be liable for, and shall assume, by virtue of
such Section 13 Event, all the obligations and duties of the Company pursuant to
this Agreement; (iii) the term "Company" shall thereafter be deemed to refer to
such Principal Party, it being specifically intended that the provisions of
Section 11 hereof shall apply only to such Principal Party following the first
occurrence of a Section 13 Event; (iv) such Principal Party shall take such
steps (including, but not limited to, the reservation of a sufficient number of
shares of its Common Stock) in connection with the consummation of any such
transaction as may be necessary to assure that the provisions hereof shall
thereafter be applicable, as nearly as reasonably may be, in relation to its
shares of

                                       22
<PAGE>

Common Stock thereafter deliverable upon the exercise of the Rights; provided,
however, that upon the subsequent occurrence of any merger, consolidation, sale
of all or substantially all assets, recapitalization, reclassification of
shares, reorganization or other extraordinary transaction in respect of such
Principal Party, each holder of a Right shall thereupon be entitled to receive,
upon exercise of a Right and payment of the Purchase Price, such cash, shares,
rights, warrants and other property which such holder would have been entitled
to receive had he, at the time of such transaction, owned the shares of Common
Stock of the Principal Party purchasable upon the exercise of a Right, and such
Principal Party shall take steps (including, but not limited to, reservation of
shares of stock) as may be necessary to permit the subsequent exercise of the
Rights in accordance with the terms hereof for such cash, shares, rights,
warrants and other property; and (v) the provisions of Section 11(a)(ii) hereof
shall be of no effect following the first occurrence of any Section 13 Event.

            (b) "Principal Party" shall mean:

                  (i) in the case of any transaction described in clause (x) of
the first sentence of Section 13(a): (A) the Person that is the issuer of any
securities into which shares of Common Stock of the Company are converted in
such merger or consolidation, or, if there is more than one such issuer, the
issuer whose Common Stock has the greatest aggregate market value or (B) if no
securities are so issued, (x) the Person that is the other party to such merger
or consolidation and survives said merger or consolidation, or, if there is more
than one such Person, the Person whose Common Stock has the greatest aggregate
market value or (y) if the Person that is the other party to the merger or
consolidation does not survive the merger or consolidation, the Person that does
survive the merger or consolidation (including the Company if its survives);

                  (ii) in the case of any transaction described in clause (y) of
the first sentence of Section 13(a), the Person that is the party receiving the
greatest portion of the assets or earning power transferred pursuant to such
transaction or transactions, or, if each Person that is a party to such
transaction or transactions receives the same portion of the assets or earning
power so transferred or if the Person receiving the greatest portion of the
assets or earning power cannot be determined, whichever of such Persons as is
the issuer of Common Stock having the greatest market value of shares
outstanding; and

                  (iii) in the case of any transaction described in clause (z)
of the first sentence of Section 13(a), the Person whose proportionate share of
the outstanding shares of any class of equity or convertible securities of the
Company is thereby increased by more than 1% and, if there is more than one such
Person, the Person whose Common Stock has the greatest aggregate market value;
provided, however, that in any such case, if the Common Stock of such Person is
not at such time and has not been continuously over the preceding twelve (12)
month period registered under Section 12 of the Exchange Act, and if (1) such
Person is a direct or indirect Subsidiary of another Person the Common Stock of
which is and has been so registered, "Principal Party" shall refer to such other
Person; (2) such Person is a Subsidiary, directly or indirectly, of more than
one Person, the Common Stocks of two or more of which are and have been so
registered, "Principal Party" shall refer to whichever of such Persons is the
issuer of the Common Stock having the greatest aggregate market value; and (3)
such Person is owned, directly or indirectly, by a joint venture formed by two
or more Persons that are not owned

                                       23
<PAGE>

directly or indirectly by the same Person, the rules set forth in (1) and (2)
above shall apply to each of the chains of ownership having an interest in such
joint venture as if such party were a "Subsidiary" of both or all of such joint
venturers and the Principal Parties in each such chain shall bear the
obligations set forth in this Section 13 in the same ratio as their direct or
indirect interests in such Person bear to the total of such interests.

            (c) The Company shall not consummate any Section 13 Event unless
each Principal Party (or Person that may become a Principal Party as a result of
such Section 13 Event) shall have a sufficient number of authorized shares of
its Common Stock which have not been issued or reserved for issuance to permit
the exercise in full of the Rights in accordance with this Section 13 and unless
prior thereto the Company and each such Principal Party shall have executed and
delivered to the Rights Agent a supplemental agreement providing for the terms
set forth in paragraphs (a) and (b) of this Section 13 and further providing
that, as soon as practicable after the date of such Section 13 Event, the
Principal Party at its own expense will:

                  (i) prepare and file a registration statement under the Act,
with respect to the Rights and the securities purchasable upon exercise of the
Rights on an appropriate form, and will use its best efforts to cause such
registration statement to (A) become effective as soon as practicable after such
filing and (B) remain effective (with a prospectus at all times meeting the
requirements of the Act) until the Expiration Date;

                  (ii) deliver to holders of the Rights historical financial
statements of the Principal Party and each of its Affiliates which comply in all
respects with the requirements for registration on Form 10 (or any successor
form) under the Exchange Act;

                  (iii) use its best efforts, if the Common Stock of the
Principal Party shall become listed on a national securities exchange, to list
(or continue the listing of) the Rights and the securities purchasable upon
exercise of the Rights on such securities exchange and, if the Common Stock of
the Principal Party shall not be listed on a national securities exchange, to
cause the Rights and the securities purchasable upon exercise of the Rights to
be reported by NASDAQ/NMS or such other system then in use; and

                  (iv) use its best efforts to qualify or register the Rights
and securities purchasable upon exercise of the Rights under the "blue sky" laws
of such jurisdictions as may be necessary or appropriate; and

                  (v) obtain waivers of any rights of first refusal or
preemptive rights in respect of the shares of Common Stock of the Principal
Party subject to purchase upon exercise of outstanding Rights.

            The provisions of this Section 13 shall similarly apply to
successive mergers or consolidations or sales or transfers. In the event that a
Section 13 Event shall occur at any time after the occurrence of a Section
11(a)(ii) Event, the Rights which have not theretofore been exercised shall
thereafter become exercisable in the manner described in Section 13(a).

                                       24
<PAGE>

            Section 14. Fractional Rights and Fractional Shares.

            (a) The Company shall not be required to issue fractions of Rights,
except prior to the Distribution Date as provided in Section 11(p) hereof, or to
distribute Rights Certificates which evidence fractional Rights. In lieu of such
fractional Rights, there shall be paid to the registered holders of the Rights
Certificates with regard to which such fractional Rights would otherwise be
issuable, an amount in cash equal to the same fraction of the Closing Price of
one Right for the Trading Day immediately prior to the date on which such
fractional Rights would have been otherwise issuable.

            (b) The Company shall not be required to issue fractions of shares
of Preferred Stock (other than, except as provided in Section 7(c) hereof,
fractions that are integral multiples of one one-hundredth of a share of
Preferred Stock) upon exercise of the Rights or to distribute certificates or
scrip evidencing fractional shares of Preferred Stock (other than, except as
provided in Section 7(c) hereof, fractions that are integral multiples of one
one-hundredth of a share of Preferred Stock). Fractions of shares of Preferred
Stock in integral multiples of one one-hundredth of a share of Preferred Stock
may, at the election of the Company in its sole discretion, be evidenced by
depositary receipts, pursuant to an appropriate agreement between the Company
and a depositary selected by it, provided that such agreement shall provide that
the holders of such depositary receipts shall have all the rights, privileges
and preferences to which they are entitled as beneficial owners of the shares of
Preferred Stock represented by such depositary receipts. In lieu of fractional
shares of Preferred Stock that are not integral multiples of one one-hundredth
of a share of Preferred Stock, the Company may pay to the registered holders of
Rights Certificates at the time such Rights are exercised as herein provided an
amount in cash equal to the same fraction of one one-hundredth of the Closing
Price of a share of Preferred Stock for the Trading Day immediately prior to the
date of such exercise.

            (c) Following the occurrence of a Triggering Event, the Company
shall not be required to issue fractions of shares of Common Stock upon exercise
of the Rights or to distribute certificates which evidence fractional shares of
Common Stock. In lieu of fractional shares of Common Stock, the Company may pay
to the registered holders of Rights Certificates at the time such rights are
exercised as herein provided an amount in cash equal to the same fraction of the
current market value of one (1) share of Common Stock for the Trading Day
immediately prior to the date of such exercise.

            (d) The holder of a Right by the acceptance of the Right expressly
waives his right to receive any fractional Rights or any fractional shares upon
exercise of a Right except as permitted by this Section 14.

            Section 15. Rights of Action.

            All rights of action in respect of this Agreement, other than rights
of action vested in the Rights Agent pursuant to Section 18 hereof, are vested
in the respective registered holders of the Rights Certificates (and, prior to
the Distribution Date, the registered holders of the Common Stock) and, where
applicable, the Company; and any registered holder of any Rights Certificate
(or, prior to the Distribution Date, of the Common Stock), without the consent
of the Rights Agent or of the holder of any other Rights Certificate (or, prior
to the Distribution Date,

                                       25
<PAGE>

of the Common Stock), may, on his own behalf and for his own benefit, enforce,
and may institute and maintain any suit, action or proceeding against the
Company to enforce, or otherwise act in respect of, his right to exercise the
Rights evidenced by such Rights Certificate in the manner provided in such
Rights Certificate and in this Agreement. Without limiting the foregoing or any
remedies available to the holders of Rights, it is specifically acknowledged
that the holders of Rights would not have an adequate remedy at law for any
breach of this Agreement and shall be entitled to specific performance of the
obligations hereunder and injunctive relief against actual or threatened
violations of the obligations hereunder of any Person subject to this Agreement.

            Section 16. Agreement of Rights Holders.

            Every holder of a Right by accepting the same consents and agrees
with the Company and the Rights Agent and with every other holder of a Right
that:

            (a) prior to the Distribution Date, the Rights will not be evidenced
by Rights Certificates and will be transferable only in connection with the
transfer of Common Stock;

            (b) after the Distribution Date, the Rights Certificates will be
transferable only on the registry books of the Rights Agent if surrendered at
the principal office or offices of the Rights Agent designated for such
purposes, duly endorsed or accompanied by a proper instrument of transfer and
with the form of assignment set forth on the reverse side thereof and the
certificate contained therein duly completed and fully executed;

            (c) subject to Sections 6(a) and 7(f) hereof, the Company and the
Rights Agent may deem and treat the Person in whose name a Rights Certificate
(or, prior to the Distribution Date, the associated Common Stock certificate) is
registered as the absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Rights Certificate
or the associated Common Stock certificate made by anyone other than the Company
or the Rights Agent) for all purposes whatsoever, and neither the Company nor
the Rights Agent, subject to the last sentence of Section 7(e) hereof, shall be
required to be affected by any notice to the contrary; and

            (d) notwithstanding anything in this Agreement to the contrary,
neither the Company nor the Rights Agent shall have any liability to any holder
of a Right or other Person as a result of its inability to perform any of its
obligations under this Agreement by reason of any preliminary or permanent
injunction or other order, decree or ruling issued by a court of competent
jurisdiction or by a governmental, regulatory or administrative agency or
commission, or any statute, rule, regulation or executive order promulgated or
enacted by any governmental authority, prohibiting or otherwise restraining
performance of such obligation; provided, however, the Company must use its best
efforts to have any such order, decree or ruling lifted or otherwise overturned
as soon as possible.

            Section 17. Rights Certificate Holder Not Deemed a Stockholder.

            No holder, as such, of any Rights Certificate shall be entitled to
vote, receive dividends or be deemed for any purposes the holder of the number
of one one-hundredths of a share of Preferred Stock or any other securities of
the Company which may at any time be

                                       26
<PAGE>

issuable on the exercise of the Rights represented thereby, nor shall anything
contained herein or in any Rights Certificate be construed to confer upon the
holder of any Rights Certificate, as such, any of the rights of a stockholder of
the Company or any right to vote for the election of directors or upon any
matter submitted to stockholders at any meeting thereof, or to give or withhold
consent to any corporate action, or to receive notice of meetings or other
actions affecting stockholders (except as provided in Section 25 hereof), or to
receive dividends or subscription rights, or otherwise, until the Right or
Rights evidenced by such Rights Certificate shall have been exercised in
accordance with the provisions hereof.

            Section 18. Concerning the Rights Agent.

            (a) The Company agrees to pay to the Rights Agent reasonable
compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, its reasonable expenses and counsel fees and
disbursements and other disbursements incurred in the administration and
execution of this Agreement and the exercise and performance of its duties
hereunder. The Company also agrees to indemnify the Rights Agent for, and to
hold it harmless against, any loss, liability, or expenses, incurred without
negligence, bad faith or willful misconduct on the part of the Rights Agent, for
anything done or omitted by the Rights Agent in connection with the acceptance
and administration of this Agreement, including the costs and expenses of
defending against any claim of liability in the premises.

            (b) The Rights Agent shall be protected and shall incur no liability
for or in respect of any action taken, suffered or omitted by it in connection
with its administration of this Agreement in reliance upon any Rights
Certificate or certificate for Common Stock or for other securities of the
Company, instrument of assignment or transfer, power of attorney, endorsement,
affidavit, letter, notice, direction, consent, certificate, statement, or other
paper or document believed by it to be genuine and to be signed, executed and,
where necessary, guaranteed, verified or acknowledged, by the proper Person or
Persons.

            Section 19. Merger or Consolidation or Change of Name of Rights
Agent.

            (a) Any corporation into which the Rights Agent or any successor
Rights Agent may be merged or with which it may be consolidated, or any
corporation resulting from any merger or consolidation to which the Rights Agent
or any successor Rights Agent shall be a party, or any corporation succeeding to
the corporate trust or stock transfer business of the Rights Agent or any
successor Rights Agent, shall be the successor to the Rights Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto; provided, however, that such corporation
would be eligible for appointment as a successor Rights Agent under the
provisions of Section 21 hereof. In case at the time such successor Rights Agent
shall succeed to the agency created by this Agreement, any of the Rights
Certificates shall have been countersigned but not delivered, any such successor
Rights Agent may adopt the countersignature of a predecessor Rights Agent and
deliver such Rights Certificates so countersigned; and in case at that time any
of the Rights Certificates shall not have been countersigned, any successor
Rights Agent may countersign such Rights Certificates either in the name of the
predecessor or in the name of the successor Rights Agent; and in all such cases
such Rights Certificates shall have the full force provided in the Rights
Certificates and in this Agreement.

                                       27
<PAGE>

            (b) In case at any time the name of the Rights Agent shall be
changed and at such time any of the Rights Certificates shall have been
countersigned but not delivered, the Rights Agent may adopt the countersignature
under its prior name and deliver Rights Certificates so countersigned; and in
case at that time any of the Rights Certificates shall not have been
countersigned, the Rights Agent may countersign such Rights Certificates either
in its prior name or in its changed name; and in all such cases such Rights
Certificates shall have the full force provided in the Rights Certificates and
in this Agreement.

            Section 20. Duties of Rights Agent.

            The Rights Agent undertakes the duties and obligations imposed by
this Agreement upon the following terms and conditions, by all of which the
Company and the holders of Rights Certificates, by their acceptance thereof,
shall be bound:

            (a) The Rights Agent may consult with legal counsel (who may be
legal counsel for the Company), and the opinion of such counsel shall be full
and complete authorization and protection to the Rights Agent as to any action
taken or omitted by it in good faith and in accordance with such opinion.

            (b) Whenever in the performance of its duties under this Agreement
the Rights Agent shall deem it necessary or desirable that any fact or matter
(including, without limitation, the identity of any Acquiring Person and the
determination of "current market price") be proved or established by the Company
prior to taking or suffering any action hereunder, such fact or matter (unless
other evidence in respect thereof be herein specifically prescribed) may be
deemed to be conclusively proved and established by a certificate signed by the
Chief Executive Officer, the President, any Vice President, the Treasurer, any
Assistant Treasurer, the Secretary or any Assistant Secretary of the Company and
delivered to the Rights Agent; and such certificate shall be full authorization
to the Rights Agent for any action taken or suffered in good faith by it under
the provisions of this Agreement in reliance upon such certificate.

            (c) The Rights Agent shall be liable hereunder only for its own
negligence, bad faith or willful misconduct.

            (d) The Rights Agent shall not be liable for or by reason of the
statements of fact or recitals contained in this Agreement or in the Rights
Certificates or be required to verify the same (except as to its
countersignature on such Rights Certificates), but all such statements and
recitals are and shall be deemed to have been made by the Company only.

            (e) The Rights Agent shall not be under any responsibility in
respect of the validity of this Agreement or the execution and delivery hereof
(except the due execution hereof by the Rights Agent) or in respect of the
validity or execution of any Rights Certificate (except its countersignature
thereof); nor shall it be responsible for any adjustment required under the
provisions of Section 11 or Section 13 hereof or responsible for the manner,
method or amount of any such adjustment or the ascertaining of the existence of
facts that would require any such adjustment (except with respect to the
exercise of Rights evidenced by Rights Certificates after receipt of the
certificate described in Section 12 hereof setting forth any such adjustment);
nor shall it by any act hereunder be deemed to make any representation or
warranty as to the

                                       28
<PAGE>

authorization or reservation of any shares of Preferred Stock or Common Stock to
be issued pursuant to this Agreement or any Rights Certificates or as to whether
any shares of Preferred Stock or Common Stock will, when so issued, be validly
authorized and issued, fully paid and nonassessable.

            (f) The Company agrees that it will perform, execute, acknowledge
and deliver or cause to be performed, executed, acknowledged and delivered all
such further and other acts, instruments and assurances as may reasonably be
required by the Rights Agent for the carrying out or performing by the Rights
Agent of the provisions of this Agreement.

            (g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from the
Chief Executive Officer, the President, any Vice President, the Secretary, any
Assistant Secretary, the Treasurer or any Assistant Treasurer of the Company,
and to apply to such officers for advice or instructions in connection with its
duties, and it shall not be liable for any action taken or suffered to be taken
by it in good faith in accordance with instructions of any such officer.

            (h) The Rights Agent and any stockholder, director, officer or
employee of the Rights Agent may buy, sell or deal in any of the Rights or other
securities of the Company or become pecuniarily interested in any transaction in
which the Company may be interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though it were not Rights Agent
under this Agreement. Nothing herein shall preclude the Rights Agent from acting
in any other capacity for the Company or for any other legal entity.

            (i) The Rights Agent may execute and exercise any of the rights or
powers hereby vested in it or perform any duty hereunder either itself or by or
through its attorneys or agents, and the Rights Agent shall not be answerable or
accountable for any act, omission, default, neglect or misconduct of any such
attorneys or agents or for any loss to the Company resulting from any such act,
omission, default, neglect or misconduct; provided, however, reasonable care was
exercised in the selection and continued employment thereof.

            (j) No provision of this Agreement shall require the Rights Agent to
expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder or in the exercise of its rights if
there shall be reasonable grounds for believing that repayment of such funds or
adequate indemnification against such risk or liability is not reasonably
assured to it.

            (k) If, with respect to any Rights Certificate surrendered to the
Rights Agent for exercise or transfer, the certificate attached to the form of
assignment or form of election to purchase, as the case may be, has not been
completed, the Rights Agent shall not take any further action with respect to
such requested exercise or transfer without first consulting with the Company.

            Section 21. Change of Rights Agent.

            The Rights Agent or any successor Rights Agent may resign and be
discharged from its duties under this Agreement upon thirty (30) days' notice in
writing mailed to the Company, and to the transfer agent of the Common Stock by
registered or certified mail, and to

                                       29
<PAGE>

the holders of the Rights Certificates by first-class mail. The Company may
remove the Rights Agent or any successor Rights Agent (with or without cause)
upon thirty (30) days' notice in writing, mailed to the Rights Agent or
successor Rights Agent, as the case may be, and to the transfer agent of the
Common Stock and the Preferred Stock, by registered or certified mail, and to
the holders of the Rights Certificates by first-class mail. If the Rights Agent
shall resign or be removed or shall otherwise become incapable of acting, the
Company shall appoint a successor to the Rights Agent. If the Company shall fail
to make such appointment within a period of thirty (30) days after giving notice
of such removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the holder of a
Rights Certificate (who shall, with such notice, submit his Rights Certificate
for inspection by the Company), then the incumbent Rights Agent or any
registered holder of any Rights Certificate may apply to any court of competent
jurisdiction for the appointment of a new Rights Agent. Any successor Rights
Agent, whether appointed by the Company or by such a court, shall be (a) a
corporation organized and doing business under the laws of the United States or
of any other state of the United States in good standing, which is authorized
under such laws to exercise corporate trust or stock transfer powers and is
subject to supervision or examination by federal or state authority and which
has at the time of its appointment as Rights Agent a combined capital and
surplus of at least $100,000,000 or (b) an Affiliate of a corporation described
in clause (a) of this sentence. After appointment, the successor Rights Agent
shall be vested with the same powers, rights, duties and responsibilities as if
it had been originally named as Rights Agent without further act or deed; but
the predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not later
than the effective date of any such appointment, the Company shall file notice
thereof in writing with the predecessor Rights Agent and each transfer agent of
the Common Stock and the Preferred Stock, and mail a notice thereof in writing
to the registered holders of the Rights Certificates. Failure to give any notice
provided for in this Section 21, however, or any defect therein, shall not
affect the legality or validity of the resignation or removal of the Rights
Agent or the appointment of the successor Rights Agent, as the case may be.

            Section 22. Issuance of New Rights Certificates.

            Notwithstanding any of the provisions of this Agreement or of the
Rights to the contrary, the Company may, at its option, issue New Rights
Certificates evidencing Rights in such form as may be approved by its Board of
Directors to reflect any adjustment or change in the Purchase Price and the
number or kind or class of shares or other securities or property purchasable
under the Rights Certificates made in accordance with the provisions of this
Agreement. In addition, in connection with the issuance or sale of shares of
Common Stock following the Distribution Date and prior to the redemption or
expiration of the Rights, the Company (a) shall, with respect to shares of
Common Stock so issued or sold pursuant to the exercise of stock options or
under any employee plan or arrangement granted or awarded on or prior to the
Distribution Date, or upon the exercise, conversion or exchange of securities
hereinafter issued by the Company on or prior to the Distribution Date, and (b)
may, in any other case, if deemed necessary or appropriate by the Board of
Directors of the Company, issue Rights Certificates representing the appropriate
number of Rights in connection with such issuance or sale; provided, however,
that (i) no such Rights Certificate shall be issued if, and to the extent that,
the Company shall be advised by counsel that such issuance would create a
significant risk

                                       30
<PAGE>

of material adverse tax consequences to the Company or the Person to whom such
Rights Certificate would be issued, and (ii) no such Rights Certificate shall be
issued if, and to the extent that, appropriate adjustment shall otherwise have
been made in lieu of the issuance thereof.

            Section 23. Redemption and Termination.

            (a) The Board of Directors of the Company may, at its option, at any
time prior to the earlier of (i) the occurrence of a Section 11(a)(ii) Event or
(ii) the Close of Business on the Final Expiration Date, cause the Company to
redeem all but not less than all of the then outstanding Rights at a redemption
price of $0.01 per Right, as such amount may be appropriately adjusted, if
necessary, to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such redemption price being hereinafter
referred to as the "Redemption Price"). Notwithstanding anything contained in
this Agreement to the contrary, the Rights shall not be exercisable after the
first occurrence of a Section 11(a)(ii) Event until such time as the Company's
right of redemption hereunder has expired. The Company may, at its option, pay
the Redemption Price in cash, shares of Common Stock (based on the "current
market price", as defined in Section 11(d)(i) hereof, of the Common Stock at the
time of redemption) or any other form of its consideration deemed appropriate by
the Board of Directors.

            (b) Immediately upon the action of the Board of Directors of the
Company ordering the redemption of the Rights, and without any further action
and without any notice, the right to exercise the Rights will terminate and the
only right thereafter of the holders of Rights shall be to receive the
Redemption Price for each Right so held, without any interest thereon. Promptly
after the effectiveness of the action of the Board of Directors ordering the
redemption of the Rights, the Company shall give notice of such redemption to
the Rights Agent and the holders of the then outstanding Rights by mailing such
notice to all such holders at each holder's last address as it appears upon the
registry books of the Rights Agent or, prior to the Distribution Date, on the
registry books of the Transfer Agent for the Common Stock. Any notice which is
mailed in the manner herein provided shall be deemed given, whether or not the
holder receives the notice. Each such notice of redemption will state the method
by which the payment of the Redemption Price will be made. The failure to give
notice required by this Section 23(b) or any defect therein shall not affect the
legality or validity of the action taken by the Company.

            Section 24. Exchange.

            (a) The Board of Directors of the Company may, at its option, at any
time and from time to time after the first occurrence of a Section 11(a)(ii)
Event, exchange all of the then outstanding and exercisable Rights (which shall
not include Rights that have become void pursuant to the provisions of Section
7(e) hereof) for shares of Common Stock or common stock value equivalents or any
combination thereof, at an exchange ratio of one share of Common Stock, or such
number of common stock value equivalents or units representing fractions thereof
as would be deemed to have the same value as one share of Common Stock, per
Right, appropriately adjusted, if necessary, to reflect any stock split, stock
dividend or similar transaction occurring after the Rights Dividend Declaration
Date (such exchange ratio being hereinafter referred to as the "Exchange
Ratio"). Notwithstanding the foregoing, the Board of Directors may not effect
such exchange at any time after any Person (other than an Exempt

                                       31
<PAGE>

Person), together with all Affiliates and Associates of such Person, becomes the
Beneficial Owner of 50% or more of the shares of Common Stock then outstanding.

            (b) Immediately upon the effectiveness of the action of the Board of
Directors of the Company ordering the exchange of any Rights pursuant to and in
accordance with subsection (a) of this Section 24 (which action may be
conditioned on the occurrence of one or more events or on the existence of one
or more facts or may be effective at some future time) and without any further
action and without any notice, the right to exercise such Rights shall terminate
and the only right thereafter of a holder of such Rights shall be to receive
that number of shares of Common Stock and/or common stock value equivalents
equal to the number of such Rights held by such holder multiplied by the
Exchange Ratio. The Company shall promptly give public notice of any such
exchange; provided, however, that the failure to give, or any defect in, such
notice shall not affect the validity of such exchange. The Company promptly
shall mail a notice of any such exchange to all of the holders of such Rights at
their last addresses as they appear upon the registry books of the Rights Agent.
Any notice which is mailed in the manner herein provided shall be deemed given,
whether or not the holder receives the notice. Each such notice of exchange will
state the method by which the exchange of the shares of Common Stock and/or
common stock value equivalents for Rights will be effected and, in the event of
any partial exchange, the number of Rights that will be exchanged. Any partial
exchange shall be affected as nearly pro rata as possible based on the number of
Rights (other than Rights which have become void pursuant to the provisions of
Section 7(e) hereof) held by each holder of Rights.

            (c) In the event that the number of shares of Common Stock that is
authorized by the Company's certificate of incorporation but not outstanding or
reserved for issuance for purposes other than upon exercise of the Rights is not
sufficient to permit an exchange of Rights as contemplated in accordance with
this Section 24, the Company may, at its option, take all such action as may be
necessary to authorize additional shares of Rights or Common Stock respectively,
or both, for issuance upon exchange of the Rights.

            (d) The Company shall not be required to issue fractions of shares
of Common Stock or to distribute certificates or scrip evidencing fractional
shares of Common Stock. In lieu of such fractional shares of Common Stock, the
Company shall pay to the registered holders of Rights with regard to which such
fractional shares of Common Stock would otherwise be issuable an amount in cash
equal to the same fraction of the value of a whole share of Common Stock. For
purposes of this Section 24, the value of a whole share of Common Stock shall be
the Closing Price per share of Common Stock for the Trading Day immediately
prior to the date of exchange pursuant to this Section 24, and the value of any
common stock value equivalent shall be deemed to have the same value as the
Voting Common Stock on such date.

            Section 25. Notice of Certain Events.

            (a) In case the Company shall propose, at any time after the
Distribution Date, (i) to pay any dividend payable in stock of any class to the
holders of Preferred Stock or to make any other distribution to the holders of
Preferred Stock (other than a regular quarterly cash dividend out of earnings or
retained earnings of the Company), (ii) to offer to the holders of

                                       32
<PAGE>

Preferred Stock rights or warrants to subscribe for or to purchase any
additional shares of Preferred Stock or shares of stock of any class or any
other securities, rights or options, (iii) to effect any reclassification of its
Preferred Stock (other than a reclassification involving only the subdivision of
outstanding shares of Preferred Stock), (iv) to effect any consolidation or
merger into or with any other Person (other than a Subsidiary of the Company in
a transaction which complies with Section 11(o) hereof), or to effect any sale,
lease or other transfer), in one transaction or a series of related transactions
of more than 50% of the assets or earning power of the Company to Persons (other
than the Company and/or any of its Subsidiaries in one or more transactions each
of which complies (and all of which together comply) with Section 11(o) hereof)
or (v) to effect the liquidation, dissolution or winding up of the Company,
then, in each such case, the Company shall give to each holder of a Rights
Certificate, to the extent feasible and in accordance with Section 26 hereof, a
notice of such proposed action, which shall specify the record date for the
purposes of such stock dividend, distribution of rights or warrants, or the date
on which such reclassification, consolidation, merger, sale, transfer,
liquidation, dissolution, or winding up is to take place and the date of
participation therein by the holders of the shares of Preferred Stock, if any
such date is to be fixed, and such notice shall be so given in the case of any
action covered by clause (i) or (ii) above at least ten (10) days prior to the
record date for determining holders of the shares of Preferred Stock for
purposes of such action, and in the case of any such other action, at least ten
(10) days prior to the date of participation therein by the holders of the
shares of Preferred Stock, whichever shall be the earlier. The failure to give
notice required by this Section 25 or any defect therein shall not affect the
legality or validity of the action taken by the Company or the vote upon any
such action.

            (b) In case any of the events set forth in Section 11(a)(ii) hereof
shall occur, then, in any such case, the Company shall as soon as practicable
thereafter give to each holder of a Rights Certificate, to the extent feasible
and in accordance with Section 26 hereof, a notice of the occurrence of such
event, which shall specify the event and the consequences of the event to
holders of Rights under Section 11(a)(ii) hereof, and (ii) all references in the
preceding paragraph to Preferred Stock shall be deemed thereafter to refer to
Common Stock and/or if appropriate, other securities.

            Section 26. Notices.

            Notices or demands authorized by this Agreement to be given or made
by the Rights Agent or by the holder of any Rights Certificate to or on the
Company shall be sufficiently given or made if sent by first-class mail, postage
prepaid, addressed (until another address is filed in writing with the Rights
Agent) as follows:

                             Morton's Restaurant Group, Inc.
                             3333 New Hyde Park Road
                             Suite 210
                             New Hyde Park, New York  11042

            Subject to the provisions of Section 21, any notice or demand
authorized by this Agreement to be given or made by the Company or by the holder
of any Rights Certificate to or on the Rights Agent shall be sufficiently given
or made if sent by first-class mail, postage prepaid, addressed (until another
address is filed in writing with the Company) as follows:

                                       33
<PAGE>

                             Equiserve Trust Company
                             150 Royall Street
                             Canton, Massachusetts  02021
                             Attention:  Shareholder Services Division

            Notices or demands authorized by this Agreement to be given or made
by the Company or the Rights Agent to the holder of any Rights Certificate (or,
if prior to the Distribution Date, to the holder of certificates representing
shares of Common Stock) shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed to such holder at the address of
such holder as shown on the registry books of the Transfer Agent.

            Section 27. Supplements and Amendments.

            For so long as the Rights are redeemable, subject to the penultimate
sentence of this Section 27, the Company may, in its sole and absolute
discretion, and the Rights Agent shall, if the Company so directs, supplement or
amend any provision of this Agreement in any respect without the approval of any
holders of certificates representing shares of Common Stock, whether or not such
supplement or amendment is adverse to any holders of Rights. At any time when
the Rights are no longer redeemable, subject to the penultimate sentence of this
Section 27, the Company may, and the Rights Agent shall, if the Company so
directs, supplement or amend this Agreement without the approval of any holders
of Rights Certificates in order to cure any ambiguity or to correct or
supplement any provision contained herein which may be defective or inconsistent
with any other provision contained herein; provided that no such supplement or
amendment may (a) adversely affect the interests of the holders of Rights
Certificates as such (other than an Acquiring Person or an Affiliate or
Associate of an Acquiring Person), (b) cause this Agreement again to become
amendable other than in accordance with this sentence, or (c) cause the Rights
again to become redeemable. Upon the delivery of a certificate from an
appropriate officer of the Company which states that the proposed supplement or
amendment is in compliance with the terms of this Section 27, the Rights Agent
shall execute such supplement or amendment. Notwithstanding anything contained
in this Agreement to the contrary, no supplement or amendment shall be made
which decreases the Redemption Price or shortens the Final Expiration Date.
Prior to the Distribution Date, the interests of the holders of Rights shall be
deemed coincident with the interests of the holders of Common Stock.

            Section 28. Successors.

            All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Rights Agent shall bind and inure to the benefit
of their respective successors and assigns hereunder.

            Section 29. Determinations and Actions by the Board of Directors,
etc.

            For all purposes of this Agreement, any calculation of the number of
shares of Common Stock outstanding at any particular time, including for
purposes of determining the particular percentage of such outstanding shares of
Common Stock of which any Person is the Beneficial Owner, shall be made in
accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules
and Regulations under the Exchange Act. The Board of Directors of the Company
shall have the exclusive power and authority to administer this Agreement and to

                                       34
<PAGE>

exercise all rights and powers specifically granted to the Board of Directors of
the Company or to the Company, or as may be necessary or advisable in the
administration of this Agreement, including, without limitation, the right and
power to (i) interpret the provisions of this Agreement, and (ii) make all
determinations deemed necessary or advisable for the administration of this
Agreement (including, but not limited to, a determination to redeem or not
redeem the Rights, or to amend this Agreement and a determination of whether
there is an Acquiring Person). All such actions, calculations, interpretations
and determinations (including, for purposes of clause (y) below, all omissions
with respect to the foregoing) which are done or made by the Board of Directors
of the Company in good faith, shall (x) be final, conclusive and binding on the
Company, the Rights Agent, the holders of the Rights and all other parties, and
(y) not subject any member of the Board of Directors to any liability to the
holders of the Rights or to any other Person.

            Section 30. Benefits of this Agreement.

            Nothing in this Agreement shall be construed to give to any Person
other than the Company, the Rights Agent and the registered holders of the
Rights Certificates (and, prior to the Distribution Date, registered holders of
the Common Stock) any legal or equitable right, remedy or claim under this
Agreement; but this Agreement shall be for the sole and exclusive benefit of the
Company, the Rights Agent and the registered holders of the Rights Certificates
(and, prior to the Distribution Date, registered holders of the Common Stock).

            Section 31. Severability.

            If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction or other authority to be invalid, void
or unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated; provided, however, that
notwithstanding anything in this Agreement to the contrary, if any such term,
provision, covenant or restriction is held by such court or authority to be
invalid, void or unenforceable and the Board of Directors of the Company
determines in its good faith judgment that severing the invalid language from
this Agreement would adversely affect the purpose or effect of this Agreement,
the right of redemption set forth in Section 23 hereof shall be reinstated and
shall not expire until the close of business on the tenth day following the date
of such determination by the Board of Directors of the Company.

            Section 32. Governing Law.

            This Agreement, each Right and each Rights Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of
Delaware, and for all purposes shall be governed by and construed in accordance
with the laws of such State applicable to contracts made and to be performed
entirely within such State.

            Section 33. Counterparts.

            This Agreement may be executed in any number of counterparts and
each of such counterparts for all purposes shall be deemed to be an original,
and all such counterparts shall together constitute but one and the same
instrument.

                                       35
<PAGE>

            Section 34. Descriptive Headings.

            Descriptive headings of the several Sections of this Agreement are
inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

                                       36
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.

Attest:                                       MORTON'S RESTAURANT GROUP, INC.

[Seal]

By: /s/ Tammy A. Cavanaugh                    By:  /s/ Thomas J. Baldwin
    -----------------------------                  -----------------------------
Name:   Tammy A. Cavanaugh                    Name:  Thomas J. Baldwin
Title:  Assistant to CEO                      Title: EVP & CFO

                                              EQUISERVE TRUST COMPANY,
Attest:                                       as Rights Agent

[Seal]

By: /s/ Michael Medeiros                      By: /s/ Carol Mulvey-Eori
    -----------------------------                 ------------------------------
Name:  Michael Medeiros                       Name:  Carol Mulvey-Eori
Title: Account Manager                        Title: Managing Director

                                       37
<PAGE>

                                                                       Exhibit A

                           CERTIFICATE OF DESIGNATIONS

                                       of

                  SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

                                       of

                         QUANTUM RESTAURANT GROUP, INC.

             Pursuant to Section 151 of the General Corporation Law
                            of the State of Delaware

            QUANTUM RESTAURANT GROUP, INC., a corporation organized and existing
under the General Corporation Law of the State of Delaware, in accordance with
the provisions of Section 103 thereof, DOES HEREBY CERTIFY:

            That pursuant to the authority vested in the Board of Directors in
accordance with the provisions of the Amended and Restated Certificate of
Incorporation of the Corporation, the Board of Directors on December 15, 1994,
adopted the following resolution creating a series of 200,000 (two hundred
thousand) shares of Preferred Stock designated as "Series A Junior Participating
Preferred Stock":

            RESOLVED, that pursuant to the authority vested in the Board of
Directors of this Corporation in accordance with the provisions of the Amended
and Restated Certificate of Incorporation, a series of Preferred Stock, par
value $.01 per share, of the Corporation be and hereby is created, and that the
designation and number of shares thereof and the voting and other powers,
preferences and relative, participating, optional or other rights of the shares
of such series and the qualifications, limitations and restrictions thereof are
as follows:

            Series A Junior Participating Preferred Stock

            1. Designation and Amount. There shall be a series of Preferred
Stock that shall be designated as "Series A Junior Participating Preferred
Stock," and the number of shares constituting such series shall be 200,000. Such
number of shares may be increased or decreased by resolution of the Board of
Directors; provided, however, that no decrease shall reduce the number of shares
of Series A Junior Participating Preferred Stock to less than the number of
shares then issued and outstanding plus the number of shares issuable upon
exercise of outstanding rights, options or warrants or upon conversion of
outstanding securities issued by the Corporation.

                                      A-1
<PAGE>

            2. Dividends and Distributions.

                  (A) Subject to the prior and superior rights of the holders of
any shares of any series of Preferred Stock ranking prior and superior to the
shares of Series A Junior Participating Preferred Stock with respect to
dividends, the holders of shares of Series A Junior Participating Preferred
Stock, in preference to the holders of shares of any class or series of stock of
the Corporation ranking junior to the Series A Preferred Stock, shall be
entitled to receive, when, as and if declared by the Board of Directors out of
funds legally available for the purpose, quarterly dividends payable in cash on
the 15th day of January, April, July and October in each year (each such date
being referred to herein as a "Quarterly Dividend Payment Date"), commencing on
the first Quarterly Dividend Payment Date after the first issuance of a share or
fraction of a share of Series A Junior Participating Preferred Stock, in an
amount per share (rounded to the nearest cent) equal to the greater of (a) $0.25
or (b) the Adjustment Number (as defined below) times the aggregate per share
amount of all cash dividends, and the Adjustment Number times the aggregate per
share amount (payable in kind) of all non-cash dividends or other distributions
other than a dividend payable in shares of Common Stock or a subdivision of the
outstanding shares of Common Stock (by reclassification or otherwise), declared
on the voting Common Stock, par value $.01 per share, of the Corporation (the
"Common Stock") since the immediately preceding Quarterly Dividend Payment Date,
or, with respect to the first Quarterly Dividend Payment Date, since the first
issuance of any share or fraction of a share of Series A Junior Participating
Preferred Stock. The "Adjustment Number" shall initially be 100. In the event
the Corporation shall at any time after December 15, 1994 (the "Rights
Declaration Date") (i) declare any dividend on Common Stock payable in shares of
Common Stock, (ii) subdivide the outstanding Common Stock or (iii) combine the
outstanding Common Stock into a smaller number of shares, then in each such case
the Adjustment Number in effect immediately prior to such event shall be
adjusted by multiplying such Adjustment Number by a fraction the numerator of
which is the number of shares of Common Stock outstanding immediately after such
event and the denominator of which is the number of shares of Common Stock that
were outstanding immediately prior to such event.

                  (B) The Corporation shall declare a dividend or distribution
on the Series A Junior Participating Preferred Stock as provided in paragraph
(A) above immediately after it declares a dividend or distribution on the Common
Stock (other than a dividend payable in shares of Common Stock); provided that,
in the event no dividend or distribution shall have been declared on the Common
Stock during the period between any Quarterly Dividend Payment Date and the next
subsequent Quarterly Dividend Payment Date, a dividend of $0.25 per share on the
Series A Junior Participating Preferred Stock shall nevertheless be payable on
such subsequent Quarterly Dividend Payment Date.

                  (C) Dividends shall begin to accrue and be cumulative on
outstanding shares of Series A Junior Participating Preferred Stock from the
Quarterly Dividend Payment Date next preceding the date of issue of such shares
of Series A Junior Participating Preferred Stock, unless the date of issue of
such shares is prior to the record date for the first Quarterly Dividend Payment
Date, in which case dividends on such shares shall begin to accrue from the date
of issue of such shares, or unless the date of issue is a Quarterly Dividend
Payment Date or is a date after the record date for the determination of holders
of shares of Series A Junior Participating Preferred Stock entitled to receive a
quarterly dividend and before such Quarterly

                                      A-2
<PAGE>

Dividend Payment Date, in either of which events such dividends shall begin to
accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but
unpaid dividends shall not bear interest. Dividends paid on the shares of Series
A Junior Participating Preferred Stock in an amount less than the total amount
of such dividends at the time accrued and payable on such shares shall be
allocated pro rata on a share-by-share basis among all such shares at the time
outstanding. The Board of Directors may fix a record date for the determination
of holders of shares of Series A Junior Participating Preferred Stock entitled
to receive payment of a dividend or distribution declared thereon, which record
date shall be no more than 30 days prior to the date fixed for the payment
thereof.

            3. Voting Rights. The holders of shares of Series A Junior
Participating Preferred Stock shall have the following voting rights:

                  (A) Each share of Series A Junior Participating Preferred
Stock shall entitle the holder thereof to a number of votes equal to the
Adjustment Number on all matters submitted to a vote of the stockholders of the
Corporation.

                  (B) Except as otherwise provided herein or by law, the holders
of shares of Series A Junior Participating Preferred Stock and the holders of
shares of Common Stock shall vote together as one class on all matters submitted
to a vote of stockholders of the Corporation.

                  (C) (i) If at any time dividends on any Series A Junior
Participating Preferred Stock shall be in arrears in an amount equal to six
quarterly dividends thereon, the occurrence of such contingency shall mark the
beginning of a period (herein called a "default period") that shall extend until
such time when all accrued and unpaid dividends for all previous quarterly
dividend periods and for the current quarterly dividend period on all shares of
Series A Junior Participating Preferred Stock then outstanding shall have been
declared and paid or set apart for payment. During each default period, any
provision of the Amended and Restated Certificate of Incorporation to the
contrary notwithstanding, all holders of Preferred Stock (including holders of
the Series A Junior Participating Preferred Stock) upon which these or like
voting rights have been conferred and are exercisable (the "Voting Preferred
Stock") with dividends in arrears in an amount equal to six quarterly dividends
thereon, voting as a class, irrespective of series, shall have the right to
elect two Directors.

                        (ii) During any default period, such voting right of the
holders of Series A Junior Participating Preferred Stock may be exercised
initially at a special meeting called pursuant to subparagraph (iii) of this
Section 3(C) or at any annual meeting of stockholders, and thereafter at annual
meetings of stockholders, provided that neither such voting right nor the right
of the holders of any other series of Voting Preferred Stock, if any, to
increase, in certain cases, the authorized number of Directors shall be
exercised unless holders of ten percent in number of shares of Voting Preferred
Stock outstanding shall be present in person or by proxy. The absence of a
quorum of the holders of Common Stock or any other class of stock shall not
affect the exercise by the holders of Voting Preferred Stock of such voting
right. At any meeting at which the holders of Voting Preferred Stock shall
exercise such voting right initially during an existing default period, they
shall have the right, voting as a class, to elect Directors to fill such
vacancies, if any, in the Board of Directors as may then exist up to two

                                      A-3
<PAGE>

Directors or, if such right is exercised at an annual meeting, to elect two
Directors. If the number that may be so elected at any special meeting does not
amount to the required number, the holders of the Voting Preferred Stock shall
have the right to make such increase in the number of Directors as shall be
necessary to permit the election by them of the required number. After the
holders of the Voting Preferred Stock shall have exercised their right to elect
Directors in any default period and during the continuance of such period, the
number of Directors shall not be increased or decreased except by vote of the
holders of Voting Preferred Stock as herein provided or pursuant to the rights
of any equity securities ranking senior to or pari passu with the Series A
Junior Participating Preferred Stock.

                        (iii) Unless the holders of Voting Preferred Stock
shall, during an existing default period, have previously exercised their right
to elect Directors, the Board of Directors may order the calling of a special
meeting of the holders of Voting Preferred Stock, which meeting shall thereupon
be called by the Chief Executive Officer, the President, a Vice President or the
Secretary of the Corporation. Notice of such meeting and of any annual meeting
at which holders of Voting Preferred Stock are entitled to vote pursuant to this
paragraph (C)(iii) shall be given to each holder of record of Voting Preferred
Stock by mailing a copy of such notice to him at his last address as the same
appears on the books of the Corporation. Such meeting shall be called for a time
not earlier than 20 days and not later than 60 days after such order or request
or, in default of the calling of such meeting within 60 days after such order or
request, any provision of the Amended and Restated Certificate of Incorporation
to the contrary notwithstanding, such meeting may be called on similar notice by
any stockholder or stockholders owning in the aggregate not less than ten
percent of the total number of shares of Voting Preferred Stock outstanding.
Notwithstanding the provisions of this paragraph (C)(iii), no such special
meeting shall be called during the period within 60 days immediately preceding
the date fixed for the next annual meeting of the stockholders.

                        (iv) In any default period, the holders of Common Stock,
and other classes of stock of the Corporation if applicable, shall continue to
be entitled to elect the whole number of Directors until the holders of Voting
Preferred Stock shall have exercised their right to elect two Directors voting
as a class, after the exercise of which right (x) the Directors so elected by
the holders of Voting Preferred Stock shall continue in office until their
successors shall have been elected by such holders or until the expiration of
the default period, and (y) any vacancy in the Board of Directors may (except as
provided in paragraph (C)(ii) of this Section 3) be filled by vote of a majority
of the remaining Directors theretofore elected by the holders of the class of
stock which elected the Director whose office shall have become vacant.
References in this paragraph (C) to Directors elected by the holders of a
particular class of stock shall include Directors elected by such Directors to
fill vacancies as provided in clause (y) of the foregoing sentence.

                        (v) Immediately upon the expiration of a default period,
(x) the right of the holders of Voting Preferred Stock as a class to elect
Directors shall cease, (y) the term of any Directors elected by the holders of
Voting Preferred Stock as a class shall terminate and (z) the number of
Directors shall be such number as may be provided for in the Amended and
Restated Certificate of Incorporation or By-Laws irrespective of any increase
made pursuant to the provisions of paragraph (C)(ii) of this Section 3 (such
number being subject, however, to change thereafter in any manner provided by
law or in the Amended and Restated Certificate of

                                      A-4
<PAGE>

Incorporation or By-Laws). Any vacancies in the Board of Directors effected by
the provisions of clauses (y) and (z) in the preceding sentence may be filled by
a majority of the remaining Directors.

                  (D) Except as set forth herein, holders of Series A Junior
Participating Preferred Stock shall have no special voting rights and their
consent shall not be required (except to the extent they are entitled to vote
with holders of Common Stock and Non-voting Common Stock as set forth herein)
for taking any corporation action.

            4. Certain Restrictions.

                  (A) Whenever quarterly dividends or other dividends or
distributions payable on the Series A Junior Participating Preferred Stock as
provided in Section 2 are in arrears, thereafter and until all accrued and
unpaid dividends and distributions, whether or not declared, on shares of Series
A Junior Participating Preferred Stock outstanding shall have been paid in full,
the Corporation shall not

                        (i) declare or pay dividends on, make any other
      distributions on, or redeem or purchase or otherwise acquire for
      consideration any shares of stock ranking junior (either as to dividends
      or upon liquidation, dissolution or winding up) to the Series A Junior
      Participating Preferred Stock;

                        (ii) declare or pay dividends on or make any other
      distributions on any shares of stock ranking on a parity (either as to
      dividends or upon liquidation, dissolution or winding up) with the Series
      A Junior Participating Preferred Stock, except dividends paid ratably on
      the Series A Junior Participating Preferred Stock and all such parity
      stock on which dividends are payable or in arrears in proportion to the
      total amounts to which the holders of all such shares are entitled;

                        (iii) redeem or purchase or otherwise acquire for
      consideration shares of any stock ranking on a parity (either as to
      dividends or upon liquidation, dissolution or winding up) with the Series
      A Junior Participating Preferred Stock, provided that the Corporation may
      at any time redeem, purchase or otherwise acquire shares of any such
      parity stock in exchange for shares of any stock of the Corporation
      ranking junior (both as to dividends and upon dissolution, liquidation or
      winding up) to the Series A Junior Participating Preferred Stock; or

                        (iv) purchase or otherwise acquire for consideration any
      shares of Series A Junior Participating Preferred Stock, or any shares of
      stock ranking on a parity with the Series A Junior Participating Preferred
      Stock, except in accordance with a purchase offer made in writing or by
      publication (as determined by the Board of Directors) to all holders of
      such shares upon such terms as the Board of Directors, after consideration
      of the respective annual dividend rates and other relative rights and
      preferences of the respective series and classes, shall determine in good
      faith will result in fair and equitable treatment among the respective
      series or classes.

                  (B) The Corporation shall not permit any subsidiary of the
Corporation to purchase or otherwise acquire for consideration any shares of
stock of the Corporation unless

                                      A-5
<PAGE>

the Corporation could, under paragraph (A) of this Section 4, purchase or
otherwise acquire such shares at such time and in such manner.

            5. Reacquired Shares. Any shares of Series A Junior Participating
Preferred Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever shall be retired and cancelled promptly after the acquisition
thereof. All such shares shall upon their cancellation become authorized but
unissued shares of Preferred Stock and may be reissued as part of a new series
of Preferred Stock to be created by resolution or resolutions of the Board of
Directors, subject to any conditions and restrictions on issuance set forth
herein.

            6. Liquidation, Dissolution or Winding Up.

                  (A) Upon any liquidation (voluntary or otherwise), dissolution
or winding up of the Corporation, no distribution shall be made to the holders
of shares of stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series A Junior Participating Preferred Stock,
unless, prior thereto, the holders of shares of Series A Junior Participating
Preferred Stock shall have received $100.00 per share, plus an amount equal to
accrued and unpaid dividends and distributions thereon, whether or not declared,
to the date of such payment (the "Series A Liquidation Preference"). Following
the payment of the full amount of the Series A Liquidation Preference, no
additional distributions shall be made to the holders of shares of Series A
Junior Participating Preferred Stock unless, prior thereto, the holders of
shares of Common Stock and the holders of shares of the non-voting common stock,
par value $.01 per share (the "Non-voting Common Stock") shall have received an
amount per share (the "Common Adjustment") equal to the quotient obtained by
dividing (i) the Series A Liquidation Preference by (ii) the Adjustment Number.
Following the payment of the full amount of the Series A Liquidation Preference
and the Common Adjustment in respect of all outstanding shares of Series A
Junior Participating Preferred Stock, Common Stock and Non-voting Common Stock,
respectively, holders of Series A Junior Participating Preferred Stock and
holders of shares of Common Stock and Non-voting Common Stock shall receive
their ratable and proportionate share of the remaining assets to be distributed
in the ratio of the Adjustment Number to 1 with respect to such Preferred Stock
and Common Stock or Non-voting Common Stock, as the case may be, on a per share
basis, respectively.

                  (B) In the event, however, that there are not sufficient
assets available to permit payment in full of the Series A Liquidation
Preference and the liquidation preferences of all other series of Preferred
Stock, if any, that rank on a parity with the Series A Junior Participating
Preferred Stock, then such remaining assets shall be distributed ratably to the
holders of such parity shares in proportion to their respective liquidation
preferences. In the event, however, that there are not sufficient assets
available to permit payment in full of the Common Adjustment, then such
remaining assets shall be distributed ratably to the holders of Common Stock and
Non-voting Common Stock on a per share basis.

            7. Consolidation Merger, etc. In case the Corporation shall enter
into any consolidation, merger, combination or other transaction in which the
shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case the shares of
Series A Junior Participating Preferred Stock shall at the same time be
similarly exchanged or changed in an amount per share equal to the Adjustment
Number

                                      A-6
<PAGE>

times the aggregate amount of stock, securities, cash and/or any other property
(payable in kind), as the case may be, into which or for which each share of
Common Stock is changed or exchanged.

            8. No Redemption. The shares of Series A Junior Participating
Preferred Stock shall not be redeemable.

            9. Ranking. The Series A Junior Participating Preferred Stock shall
rank junior to all other series of the Corporation's Preferred Stock as to the
payment of dividends and the distribution of assets, unless the terms of any
such series shall provide otherwise.

            10. Amendment. At any time that any shares of Series A Junior
Participating Preferred Stock are outstanding, the Certificate of Incorporation
of the Corporation shall not be amended in any manner which would materially
alter or change the powers, preferences or special rights of the Series A Junior
Participating Preferred Stock so as to affect them adversely without the
affirmative vote of the holders of a majority or more of the outstanding shares
of Series A Junior Participating Preferred Stock, voting separately as a class.

            11. Fractional Shares. Series A Junior Participating Preferred Stock
may be issued in fractions of a share that shall entitle the holder, in
proportion to such holder's fractional shares, to exercise voting rights,
receive dividends, participate in distributions and to have the benefit of all
other rights of holders of Series A Junior Participating Preferred Stock.

            IN WITNESS WHEREOF, the undersigned has executed and subscribed this
Certificate and does affirm the foregoing as true under the penalties of perjury
this 23rd day of December, 1994.

                                                   /s/ Thomas J. Baldwin
                                                   -----------------------------
                                                   Senior Vice President -
                                                        Finance

                                      A-7
<PAGE>

                                                                       Exhibit B

Certificate No. _______                                           _______ Rights

                               Rights Certificate

            NOT EXERCISABLE AFTER JANUARY 3, 2005 OR EARLIER IF REDEEMED BY THE
COMPANY. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT
$.01 PER RIGHT ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN
CIRCUMSTANCES RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON (AS SUCH TERM IS
DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY
BECOME NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR
WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN
AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS
REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN
SECTION 7(e) OF SUCH AGREEMENT.](1)

                               Rights Certificate

                         MORTON'S RESTAURANT GROUP, INC.

            This certifies that ___________________________________, or
registered assigns, is the registered owner of the number of Rights set forth
above, each of which entitles the owner thereof, subject to the terms provisions
and conditions of the Rights Agreement, originally dated as of December 15, 1994
(as from time to time amended or supplemented, the "Rights Agreement"), between
Morton's Restaurant Group, Inc., a Delaware corporation (the "Company") and
Equiserve Trust Company (the "Rights Agent"), to purchase from the Company at
any time prior to 5:00 P.M. (New York time) on January 3, 2005 at the office or
offices of the Rights Agent designated for such purpose, or its successors as
Rights Agent, one fully paid, non-assessable one one-hundredth of a share of
Series A Junior Participating Preferred Stock, par value $.01 per share (the
"Preferred Stock") of the Company, at a purchase price of $42 per share (the
"Purchase Price"), upon presentation and surrender of this Rights Certificate
with the Form of Election to Purchase and related certificate duly executed. The
Purchase Price may be paid by bank draft, certified bank check or money order
payable to the order of the Company.

            Any capitalized but undefined term in this Rights Certificate shall
have the meaning assigned to such term in the Rights Agreement.

      Upon the occurrence of a Section 11(a)(ii) Event, if the Rights evidenced
by this Rights Certificate are beneficially owned by (a) an Acquiring Person or
an Affiliate or Associate of an Acquiring Person, (b) a transferee of an
Acquiring Person (or of any such Affiliate or Associate) who becomes a
transferee after the Acquiring Person becomes such, or (c) under certain
circumstances specified in the Rights Agreement, a transferee of an Acquiring
Person (or of any such Affiliate or Associate)

--------
(1)   The portion of the legend in brackets shall be inserted only if
      applicable, shall be modified to apply to an Acquiring Person, and shall
      replace the preceding sentence.

                                      B-1
<PAGE>

who becomes a transferee prior to or concurrently with the Acquiring Person
becoming such, such Rights shall become null and void, and no holder hereof
shall have any right with respect to such Rights from and after the occurrence
of such Section 11(a)(ii) Event.

            This Rights Certificate is subject to all of the terms, provisions
and conditions of the Rights Agreement, which terms, provisions and conditions
are hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Rights Certificates, which
limitations of rights include the temporary suspension of the exercisability of
such Rights Agreement. Copies of the Rights Agreement are on file at the office
of the Rights Agent and are also available upon written request to the Company.

            This Rights Certificate, with or without other Rights Certificates,
upon surrender at the office or offices of the Rights Agent designated for such
purpose, may be exchanged for another Rights Certificate or Rights Certificates
of like tenor and date evidencing Rights entitling the holder to purchase a like
aggregate number of Rights equal to the aggregate number of Rights evidenced by
the Rights Certificate or Rights Certificates surrendered. If this Rights
Certificate shall be exercised in part, the registered holder shall be entitled
to receive, upon surrender hereof, another Rights Certificate or Rights
Certificates for the number of whole Rights not exercised.

            Subject to the provisions of the Rights Agreement, each Right
evidenced by this Certificate may be redeemed by the Company at its option at a
redemption price of $.01 per Right at any time prior to the earlier of (i) the
occurrence of a Section 11(a)(ii) Event, and (ii) the Close of Business on the
Final Expiration Date.

            No fractional shares of Preferred Stock will be issued upon the
exercise of any Right or Rights evidenced hereby, but in lieu thereof a cash
payment will be made, as provided in the Rights Agreement.

            No holder of this Rights Certificate, as such, shall be entitled to
vote or receive dividends or be deemed for any purpose the holder of shares of
Preferred Stock or of any other securities of the Company which may at any time
be issuable on the exercise hereof, nor shall anything contained in the Rights
Agreement or herein be construed to confer upon the holder hereof, as such, any
of the rights of a stockholder of the Company or any right to vote for the
election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporation action, or to
receive notice of meeting or other actions affecting stockholders (except as
provided in the Rights Agreement), or to receive dividends or subscription
rights, or otherwise, until the Right or Rights evidenced by this Rights
Certificate shall have been exercised as provided in the Rights Agreement.

            The Rights Certificate shall not be valid or obligatory for any
purpose until it shall have been countersigned by the Rights Agent.

                                      B-2
<PAGE>

            WITNESS the facsimile signature of the proper officers of the
Company and its corporate seal.

Dated as of ___________________, 20__.

[Seal]

ATTEST                                         MORTON'S RESTAURANT GROUP, INC.

_________________________________              By: _____________________________

Countersigned:

EQUISERVE TRUST COMPANY,
     as Rights Agent

By: _____________________________

                                      B-3
<PAGE>

                  [Form of Reverse Side of Rights Certificate]

                               FORM OF ASSIGNMENT

                (To be executed by the registered holder if such
               holder desires to transfer the Rights Certificate.)

            FOR VALUE RECEIVED _________________________________________________
hereby sells, assigns and transfers unto _______________________________________
________________________________________________________________________________
                  (Please print name and address of transferee)

this Rights Certificate, together with all right, title and interest therein,
and does hereby irrevocably constitute and appoint ____________________
Attorney, to transfer the within Rights Certificate on the books of the
within-named Company with full power of substitution.

Dated:  _________________, 20__

Signature Guaranteed:                           ________________________________
                                                Signature

                                                (Signature must correspond to
                                                name as written upon the face of
                                                this Rights Certificate in every
                                                particular, without alteration
                                                or enlargement or any change
                                                whatsoever)

            Signatures must be guaranteed by a financial institution which is a
member of the Securities Transfer Agents Medallion Program, the Stock Exchange
Medallion Program or the New York Stock Exchange, Inc. Medallion Signature
Program.

                                      B-4
<PAGE>

________________________________________________________________________________
                            (To be completed if true)

The undersigned hereby represents, for the benefit of all holders of Rights and
shares of Common Stock, that the Beneficial Owner of the Rights evidenced by
this Rights Certificate is not, and, to the knowledge of the undersigned, has
never been, an Acquiring Person or an Affiliate or Associate thereof (as defined
in the Rights Agreement).

                                               _________________________________
                                               Signature

________________________________________________________________________________

                                     Notice

            In the event the certification set forth above is not completed in
connection with a purported assignment, the Company will deem the Beneficial
Owner of the Rights evidenced by the enclosed Rights Certificates to be an
Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights
Agreement) or transferee of any of the foregoing and accordingly will deem the
Rights evidenced by such Rights Certificate to be void and not transferable or
exercisable.

                                      B-5
<PAGE>

                   [To be attached to each Rights Certificate]

                          FORM OF ELECTION TO PURCHASE
                      (To be executed if holder desires to
                       exercise Rights represented by the
                              Rights Certificate.)

            To: MORTON'S RESTAURANT GROUP, INC.

            The undersigned hereby irrevocably elects to exercise ______________
Rights represented by this Rights Certificate to purchase the shares of
Preferred Stock issuable upon the exercise of the Rights (or such other
securities of the Company or of any other Person which may be issuable upon the
exercise of the Rights) and requests that certificates for such shares be issued
in the name of and delivered to:

Social security or tax payer identification number:

________________________________________________________________________________

Name and address:

________________________________________________________________________________

________________________________________________________________________________

            If such number of Rights shall not be all the Rights evidenced by
this Rights Certificate, a new Rights Certificate for the balance of such Rights
shall be registered in the name of and delivered to:

Social security or tax payer identification number:

________________________________________________________________________________

                                      B-6
<PAGE>

Name and address:

________________________________________________________________________________

________________________________________________________________________________

Dated: _________________, 20__

Signature Guaranteed:                           ________________________________
                                                Signature

                                                (Signature must correspond to
                                                name as written upon the face of
                                                this Rights Certificate in every
                                                particular, without alteration
                                                or enlargement or any change
                                                whatsoever)

            Signatures must be guaranteed by a financial institution which is a
member of the Securities Transfer Agents Medallion Program, the Stock Exchange
Medallion Program or the New York Stock Exchange, Inc. Medallion Signature
Program.

                                      B-7
<PAGE>

________________________________________________________________________________
                            (To be completed if true)

The undersigned hereby represents, for the benefit of all holders of Rights and
shares of Common Stock, that the Beneficial Owner of the Rights evidenced by
this Rights Certificate is not, and, to the knowledge of the undersigned, has
never been, an Acquiring Person or an Affiliate or Associate thereof (as defined
in the Rights Agreement).

                                               _________________________________
                                               Signature

________________________________________________________________________________

                                     Notice

            In the event the certification set forth above is not completed in
connection with a purported assignment, the Company will deem the Beneficial
Owner of the Rights evidenced by the enclosed Rights Certificate to be an
Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights
Agreement) or a transferee of any of the foregoing and accordingly will deem the
Rights evidenced by such Rights Certificate to be void and not transferable or
exercisable.

                                      B-8
<PAGE>

                                                                       Exhibit C

                  SUMMARY OF RIGHTS TO PURCHASE PREFERRED STOCK

Distribution and            On December 15, 1994, the Board of Directors of
Transfer of Rights;         Morton's Restaurant Group, Inc. (then known as
Certificates:               Quantum Restaurant Rights Group, Inc.)
                            (the "Company") declared a dividend of one Right for
                            each share of the Company's voting common stock
                            ("Common Stock") outstanding to stockholders of
                            record at the close of business on January 3, 1995.
                            Prior to the Distribution Date referred to below,
                            the Rights will be evidenced by and traded with the
                            Common Stock and will not be exercisable. After the
                            Distribution Date, the Company will mail Rights
                            Certificates to stockholders and the Rights will
                            become transferable apart from the Common Stock.

Distribution Date:          Rights will separate from the Common Stock and
                            become exercisable following the earlier of (i) the
                            tenth day after the "Flip-in" trigger referred to
                            below or (ii) the tenth business day after any
                            person commences a tender or exchange offer that
                            would result in such person holding a total of 15%
                            or more of the Common Stock.

Exercise of Rights:         After the Distribution Date, each Right will entitle
                            the holder to purchase, for a Purchase Price of $42,
                            one one-hundredth of a share of Series A Junior
                            Participating Preferred Stock, par value $.01 per
                            share (the "Preferred Stock").

"Flip-in" Trigger:          If any person acquires 15% or more of the
                            outstanding Common Stock (such person being an
                            "Acquiring Person"), then promptly thereafter each
                            Right (other than Rights owned by such Acquiring
                            Person or transferees thereof, which Rights become
                            void) automatically becomes a right to buy, at the
                            Purchase Price, in lieu of one one-hundredth of a
                            share of Preferred Stock, that number of shares of
                            Common Stock (or, in certain circumstances, cash,
                            property or other securities, including nonvoting
                            common stock, of the Company), having a market value
                            of twice the Purchase Price.

Exchange Option:            If a "Flip-in" trigger has occurred, and prior to
                            the acquisition by any Acquiring Person of 50% of
                            the Common Stock, the Board may, in lieu of allowing
                            the Rights to be exercised, require each outstanding
                            Right to be exchanged for one share of Common Stock.

                                      C-1
<PAGE>

"Flip-over" Trigger:        After a person becomes an Acquiring Person, the
                            Company may not consolidate or merge or sell 50% or
                            more of its assets or earning power to any person or
                            entity unless proper provision is made so that each
                            Right would thereafter become a right to buy, at the
                            Purchase Price, the number of shares of Common Stock
                            (or similar equity interest) of such person or
                            entity having a market value of twice the Purchase
                            Price.

Redemption:                 The Company may redeem the Rights in whole, but not
                            in part, at a price of $.01 per Right, payable, at
                            the option of the Company, in cash, shares of Common
                            Stock or such other consideration as the Board of
                            Directors may determine. The redemption period will
                            expire when an Acquiring Person has become such.
                            Immediately upon the effectiveness of the action of
                            the Board of Directors ordering redemption of the
                            Rights, the Rights will terminate and the only right
                            of the holders of Rights will be to receive the $.01
                            redemption price.

Power to Amend:             The Board may amend the Plan in any respect (with
                            the exception of the ten year term and the
                            Redemption Price) until the Rights are no longer
                            redeemable. Thereafter, the Board may amend the Plan
                            only to a limited extent and under limited
                            circumstances.

Expiration:                 The Rights will expire ten years from the date of
                            their issuance.

                                      C-2<PAGE>
                                                                    Exhibit 10.1

                         STANDARD FORM OF STORE LEASE

                    [The Real Estate Board of New York, Inc.]

Agreement of Lease, made as of the 31st day of August 1983, between HOLROD
ASSOCIATES, a New York Limited partnership, having an office at 643 Madison
Avenue, New York, New York 10022 party of the first part, hereinafter referred
to as OWNER and THURSDAY'S SUPPER PUB, INC., a New York limited partnership,
having an office at 57 West 58th Street, New York party of the second part,
hereinafter referred to as TENANT.

Witnesseth: Owner hereby leases to Tenant and Tenant hereby hires from Owner the
premises described in Article 40 hereof (hereinafter called the "demised
premises") and shown on Exhibit A annexed hereto and made a part hereof in the
building known as 57 West 58th Street, in the Borough of Manhattan, City of New
York, for the term of twenty (20) years (or until such term shall sooner cease
and expire as hereinafter provided) to commence on the first (1st) day of
September nineteen hundred and eighty-three, and to end on the thirty-first
(31st) day of August two thousand and three both dates inclusive, at an annual
rental (herein called "Fixed Minimum Rent") of TWO HUNDRED TWENTY-FIVE
($225,000) DOLLARS subject to adjustment as hereinafter provided in Article 43
of this lease

which Tenant agrees to pay in lawful money of the United States which shall be
legal tender in payment of all debts and dues, public and private, at the time
of payment, in equal monthly installments in advance on the first day of each
month during said term, at the office of Owner or such other place as Owner may
designate, without any set off or deduction whatsoever.

      The parties hereto, for themselves, their heirs, distributees, executors,
administrators, legal representatives, successors and assigns, hereby covenant
as follows:

Rent:       1. Tenant shall pay the rent as above and as hereinafter provided.

Occupancy:  2. Tenant shall use and occupy demised premises for the use and
                purposes set forth in Article 41 of this lease,

and for no other purpose. Tenant shall at all times conduct its business in a
high grade and reputable manner, shall not violate Article 37 hereof, and shall
keep show windows and signs in a neat and clean condition.

Alterations:

3. Tenant shall make no changes in or to the demised premises of any nature
without Owner's prior written consent. Subject to the prior written consent
of Owner, (WHICH CONSENT SHALL NOT BE UNREASONABLY WITHHELD OR DELAYED) and
to the provisions of this article, Tenant at Tenant's expense, may make
alterations, installations, additions or improvements which are
non-structural and which do not affect utility services or plumbing and
electrical lines, in or to the interior of the demised premises by using
contractors or mechanics first approved by Owner (WHICH APPROVAL SHALL NOT BE
UNREASONABLY WITHHELD OR DELAYED) Tenant shall, before making any
alterations, additions, installations or improvements, at its expense, (WITH
OWNER'S COOPERATION, IF OWNER PREVIOUSLY APPROVED SAID ALTERATIONS,
ADDITIONS, INSTALLATIONS OR IMPROVEMENTS) obtain all permits, approvals and
certificates required by any governmental or quasi-governmental bodies (upon
completion) certificates of final approval thereof and shall deliver promptly
duplicates of all such permits, approvals and certificates to Owner and
Tenant agrees to carry and will cause Tenant's contractors and
sub-contractors to carry such workman's compensation, general liability,
personal and property damage insurance as Owner may require. If any
mechanic's lien is filed against the demised premises, or the building of
which the same forms a part, for work claimed to have done for, or materials
furnished to, Tenant, whether or not done pursuant to this article, the same
shall be discharged by Tenant within ten days thereafter, at Tenant's
expense, by filing the bond required by law. All fixtures and all paneling,
partitions, railings and like installations, installed in the premises at any
time, either by Tenant or by Owner in Tenant's behalf, shall, upon
installation become the property of Owner and shall remain upon and be
surrendered with the demised premises unless Owner shall inform Tenant when
such installations are approved by Owner that Owner elects to relinquish
Owner's rights thereto and to have them removed by Tenant, in which event,
the same shall be removed from the premises by Tenant prior to the expiration
of the lease, at Tenant's expense. Nothing in this article shall be construed
to give Owner title to or to prevent Tenant's removal of trade fixtures owned
by Tenant moveable office furniture and equipment, but upon removal of any
such from the premises or upon removal of other installations as may be
required by Owner, Tenant shall immediately and at its expense, repair and
store the premises to the condition existing prior to installation and repair
any damage to the demised premises or the building due to such removal. All
property permitted or required to be removed by Tenant at the end of the term
remaining in the premises after Tenant's removal shall be deemed abandoned
and may, at the election of Owner, either be retained as Owner's property or
may be removed from the premises by Owner at Tenant's expense.

Repairs:

4. Owner shall maintain and repair the public portions of the building, both
exterior and interior except that if Owner allows Tenant to erect on the outside
of the building a sign or signs, or a hoist, lift or sidewalk elevator for the
exclusive use of Tenant. Tenant shall maintain such exterior installations in
good appearance and shall cause the same to be operated in a good and
workmanlike manner and shall make all repairs thereto necessary to keep same in
good order and condition, at Tenant's own cost and expense, and shall cause the
same to be covered by the insurance provided for hereafter in Article 8. Tenant
shall, throughout the term of this lease, take good care of the demised premises
and the fixtures and appurtenances therein, and the sidewalks adjacent thereto,
and it its sole cost and expense, make all non-structural repairs thereto
(except such repairs as are necessitated by Owner's improper actions) and when
needed to preserve them in good working order and condition, reasonable wear and
tear, obsolescence and damage from the elements, fire or other casualty,
excepted. If the demised premises be or become infested with vermin, Tenant
shall at Tenant's expense, cause the same to be exterminated from time to time
to the satisfaction of Owner. Except as specifically provide in Article 9 or
elsewhere in this lease, there shall be no allowance to the Tenant for the
diminuation of rental value and no liability on the part of Owner by reason of
inconvenience, annoyance or injury to business arising from Owner, Tenant or
others making or failing to make any repairs, alterations, additions or
improvements in or to any portion of the building or the demised premises or in
and to the fixtures, appurtenances or equipment thereof. The provisions of this
article 4 with respect to the making of repairs shall not apply in the case of
fire or other casualty which are dealt with in article 9 hereof.

Window Cleaning:

5. Tenant will not clean nor require, permit, suffer or allow any window in the
demised premises to be cleaned from the outside in violation of Section 202 of
the New York State Labor Law or any other applicable law or of the Rules of the
Board of Standards and Appeals, or of any other Board or body having or
asserting jurisdiction.

Requirements of Law, Fire Insurance:

6. Prior to the commencement of the lease term, if Tenant is then in possession,
and at all times thereafter, Tenant at Tenant's sole cost and expense, shall
promptly comply with all present and future laws, orders and regulations of all
state, federal, municipal and local governments, departments, commissions and
boards and any direction of any public officer pursuant to law, and all orders,

<PAGE>

rules and regulations of the New York Board of Fire Underwriters or the
Insurance Services Office, or any similar body which shall impose any violation,
order or duty upon Owner or Tenant with respect to the demised premises, and
with respect to the portion of the sidewalk adjacent to the premises, if the
premises are on the street level, whether or not arising out of Tenant's use or
manner of use thereof, or with respect to the building if arising out of
Tenant's use or manner of use thereof, or with respect to the building if
arising out of Tenant's use or manner of use of the premises or the building
(including the use permitted under the lease). Except as provided in Article 29
hereof, nothing herein shall require Tenant to make structure repairs or
alterations unless Tenant has by its manner of use of the demised premises or
method of operation therein, violated any such laws, ordinances, orders, rules,
regulations or requirements with respect thereto. Tenant shall not do or permit
any act or thing to be done in or to the demised premises which is contrary to
law, or which will invalidate or be in conflict with public liability, fire or
other policies or insurance at any time carried by or for the benefit of Owner.
Tenant shall pay all costs, expenses, fines, penalties or damages, which may be
imposed upon Owner by reason of Tenant's failure to comply with the provisions
of this article. If the fire insurance rate shall, at the beginning of the lease
or at any time thereafter, be higher than it otherwise would be, then Tenant
shall reimburse Owner, as additional rent hereunder, for that portion of all
fire insurance premiums thereafter paid by Owner which shall have been charged
because of such failure by Tenant, to comply with the terms of this article. In
any action or proceeding wherein Owner and Tenant are parties, a schedule or
"make-up" of rate for the building or demised premises issued by a body making
fire insurance rates applicable to said premises shall be conclusive evidence of
the facts therein stated and of the several items and charges in the fire
insurance rate then applicable to said premises.

Tenant's Liability Insurance Property Loss, Damage, Indemnity:

8. Owner or its agents shall not be liable for any damage to property of Tenant
or of others entrusted to employees of the building, nor for loss of or damage
to any property of Tenant by theft or otherwise, nor for any injury or damage to
persons or property resulting from any cause of whatsoever nature, unless caused
by or due to the negligence of Owner, its agents, servants or employees. Owner
or its agents will not be liable for any such damage caused by other tenants or
person in, upon or about said building or caused by operations in construction
of any private, public or quasi public work. Tenant agrees, at Tenant's sole
cost and expense, to maintain general public liability insurance in standard
form in favor of Owner and Tenant against claims for bodily injury or death or
property damage occurring in or upon the demised premises, effective from the
date Tenant enters into possession and during the term of this lease. Such
insurance shall be in an amount and with carriers acceptable to the Owner. Such
policy or policies shall be delivered to the Owner. On Tenant's default in
obtaining or delivering any such policy or policies or failure to pay the
charges therefor, Owner may secure or pay the charges for any such policy or
policies and charge the Tenant as additional rent therefor. Tenant shall
indemnify and save harmless Owner against and from all liabilities, obligations,
damages, penalties, claims, costs and expenses for which Owner shall not be
reimbursed by insurance, including reasonable attorneys fees, paid, suffered or
incurred as a result of any breach by Tenant, Tenant's agents, contractors,
employees, invitees, or licensees, of any covenant on condition of this lease,
or the carelessness, negligence or improper conduct of the Tenant, Tenant's
agents, contractors, employees, invitees or licensees. Tenant's liability under
this lease extends to the acts and omissions of any subtenant, and any agent,
contractor, employee, invitee or licensee of any sub-tenant. In case any action
or proceeding is brought against Owner by reason of any such claim, Tenant, upon
written notice from Owner, will, at Tenant's expense, resist or defend such
action or proceeding by Counsel approved by Owner in writing, such approval not
to be unreasonably withheld.

Destruction, Fire and Other Casualty:

9. (a) If the demised premises or any part thereof shall be damaged by fire
or other casualty, Tenant shall give immediate notice thereof to Owner and
this lease shall continue in full force and effect except as hereinafter set
forth. (b) If the demised premises are partially damaged or rendered
partially unusable by fire or other casualty, the damages thereto shall be
repaired by and at the expense of Owner and the rent, until such repair shall
be substantially completed, shall be apportioned from the day following the
casualty according to the part of the premises which is usable. (c) If the
demised premises are totally damaged or rendered wholly unusable by fire or
other casualty or if Tenant is denied access to all of the demised premises,
then the rent shall be proportionately paid up to the time of the casualty
and thenceforth shall cease until the date when the premises shall have been
repaired and restored by Owner or until Tenant shall have regained access to
any part of the demised premises, subject to Owner's right to elect not to
restore the same as hereinafter provided. (d) If the demised premises are
rendered wholly unusable or (whether or not the demised premises are damaged
in whole or in part) if the building shall be so damaged the Owner shall
decide to demolish it or to rebuild it, then, in any of such events,
Owner may elect to terminate this lease by written notice to Tenant
given within 90 days after such fire or casualty specifying a date
for the expiration of the lease, which date shall not be more than 60 days
after the giving of such notice, and upon the date specified such notice the
term of this lease shall expire as fully and completely as if such date
were the date set forth above for the termination of this lease and
Tenant shall forthwith quit, surrender and vacate the premises
without prejudice however, to Owner's rights and remedies against
Tenant under the lease provisions in effect prior to such termination,
and any rent owing shall be paid up to such date and any payments of
rent made by Tenant which were on account of any period subsequent to
such date shall be returned to Tenant. Unless Owner shall serve a
termination notice as provided for herein Owner shall make the
repairs and restorations under the conditions of (b) and (c) hereof,
with all reasonable expedition subject to delays due to adjustment of
insurance claims, labor troubles and causes beyond Owner's control.
After any such casualty, Tenant shall cooperate with Owner's
restoration by removing from the premises as promptly as reasonably
possible, all of Tenant's salvageable inventory and movable
equipment, furniture, and other property. Tenant's liability for the rent
shall resume five (5) days after written notice from Owner that the premises
are substantially ready for Tenant's occupancy. (e) Nothing contained
hereinabove shall relieve Tenant from liability that may exist as a result of
damage from fire or other casualty. Notwithstanding the foregoing, each party
shall look first to any insurance in its favor before making any claim against
the other party for recovery for loss or damage resulting from fire or other
casualty, and to the extent that such insurance is in force and collectible
and to the extent permitted by law, Owner and Tenant each hereby releases and
waives all right of recovery against the other or any one claiming through or
under each of them by way of subrogation or otherwise. The foregoing release
and waiver shall be in force only if both releasors' insurance policies contain
a clause providing that such a release or waiver shall not invalidate the
insurance and also, provided that such a policy can be obtained without
additional premiums or, if such policy may only be obtained after payment of
an additional premium if Tenant acknowledges that Owner will not carry
insurance on Tenant's furniture and/or furnishings or any fixtures or
equipment, improvements, or appurtenances removable by Tenant and agrees that
Owner will not be obligated to repair any damage thereto or replace the same.
(f) Tenant hereby waives the provisions of Section 227 of the Real Property Law
and agrees that the provisions of this article shall govern and control in lieu
thereof.

Eminent Domain:

10. If the whole or any part of the demised premises shall be acquired or
condemned by Eminent Domain for any public or quasi public use or purpose,
then and in that event, the term of this lease shall cease and terminate from
the date of title vesting in such proceeding and Tenant shall have no claim
for the value of any unexpired term of said lease.

Assignment, Mortgage, Etc.:

11. Tenant, for itself, its heirs, distributes, executors, administrators,
legal representatives, successors and assigns expressly covenants that it
shall not assign, mortgage or encumber this agreement, nor underlet, or
suffer or permit the demised premises or any part thereof to be used by
others, without the prior written consent of Owner in each instance. If this
lease be assigned, or if the demised premises or any part thereof be underlet
or occupied by anybody other than Tenant, Owner may, after default by Tenant,
collect rent from the assignee, under-tenant or occupant, and apply the net
amount collected to the rent herein reserved, but no such assignment,
underletting, occupancy or collection shall be deemed a waiver of the
covenant, or the acceptance of the assignee, under tenant or occupant as
tenant, or a release of Tenant from the further performance by Tenant of
covenants on the part of Tenant herein contained. The consent by Owner to an
assignment or underletting shall not in any wise be construed to relieve
Tenant from obtaining the express consent in writing of Owner to any further
assignment or underletting.

Electric Current:

[GRAPHIC OMITTED] Rider to be added if necessary.

12. Rates and conditions in respect to submer[ILLEGIBLE] or rent inclusion, as
the case may be, to be added in[ILLEGIBLE] RIDER attached hereto. Tenant
covenants and agrees that at all times its use of electric current shall not
exceed the capacity of existing feeders to the building or the risers or wiring
installation and Tenant may not use any electrical equipment which, in Owner's
opinion, reasonably exercised, will overload such installations or interfere
with the use thereof by other tenants of the building. The change at any time of
the character of electric service shall in no wise make Owner liable or
responsible to Tenant, for any loss, damages or expenses which Tenant may
sustain.

Access to Premises:

13. Owner or Owner's agents shall have the right (but shall not be obligated) to
enter the demised premises in any emergency at any time, and, at other
reasonable times, to examine the same and to make such repairs, replacements and
improvements as Owner may deem necessary and reasonably desirable to any portion
of the building or which Owner may elect to perform, in the premises, following
Tenant's failure to make repairs or perform any work which Tenant is obligated
to

<PAGE>

perform under this lease, or for the purpose of complying with laws, regulations
and other directions of governmental authorities. Tenant shall permit Owner to
use and maintain and replace pipes and conduits in and through the demised
premises and to erect new pipes and conduits. Owner may, during the progress
of any work in the demised premises, take all necessary materials and
equipment into said premises without the same constituting an eviction nor
shall the Tenant be entitled to any abatement of rent while such work is in
progress nor to any damages by reason of loss or interruption of business or
otherwise. Throughout the term hereof Owner shall have the right to enter the
demised premises at reasonable hours for the purpose of showing the same to
prospective purchasers or mortgagees of the building, and during the last six
months of the term for the purpose of showing the same to prospective
tenants. If the Tenant is not present to open and permit an entry into the
premises, Owner or Owner's agents may enter the same whenever such entry may
be necessary or permissible by master key or forcibly and provided reasonable
care is exercised to safeguard Tenant's property and such entry shall not
render Owner or its agents liable therefor, nor in any event shall the
obligations of Tenant hereunder be affected. Owner shall have the right at
any time, without the same constituting an eviction and without incurring
liability to Tenant therefor to change the arrangement and/or location of
public entrances, passageways, doors, doorways, corridors, elevators, stairs,
toilets, or other public parts of the building and to change the name, number
or designation by which the building may be known.

Vault, Vault Space, Area:

14. No Vaults, vault space or area, whether or not enclosed or covered, not
within the property line of the building is leased hereunder, anything contained
in or indicated on any sketch, blue print or plan, or anything contained
elsewhere in this lease to the contrary notwithstanding. Owner makes no
representation as to the location of the property line of the building. All
vaults and vault space and all such areas not within the property line of the
building, which Tenant may be permitted to use and/or occupy, is to be used
and/or occupied under a revocable license, and if any such license be revoked,
or if the amount of such space or area be diminished or required by any federal,
state or municipal authority or public utility, Owner shall not be subject to
any liability nor shall Tenant be entitled to any compensation or diminution or
abatement of rent, nor shall such revocation, diminution or requisition be
deemed constructive or actual eviction. Any tax, fee or charge of municipal
authorities for such vault or area shall be paid by Tenant.

Occupancy:

15. Tenant will not at any time use or occupy the demised premises in violation
of, Articles 2 or 37 hereof, or of, the certificate of occupancy issued for the
building of which the demised premises are a part. Tenant has inspected the
premises and accepts them as is, subject to the riders annexed hereto with
respect to Owner's work, if any. In any event, Owner makes no representation as
to the condition of the premises and Tenant agrees to accept the same subject to
violations whether or not of record.

Bankruptcy:

16. (a) Anything elsewhere in this lease to the contrary notwithstanding, this
lease may be cancelled by Landlord by the sending of a written notice to Tenant
within a reasonable time after the happening of any one or more of the following
events; (1) the commencement of a case in bankruptcy or under the laws of any
state naming Tenant as the debtor; or (2) the making by Tenant of an assignment
or any other arrangement for the benefit of creditors under any state statute.
Neither Tenant nor any person claiming through or under Tenant, or by reason of
any statute or order of court, shall thereafter be entitled to possession of the
premises demised but shall forthwith quit and surrender the premises. If this
lease shall be assigned in accordance with its terms, the provisions of this
Article 16 shall be applicable only to the party then owning Tenant's interest
in this lease.

(b) It is stipulated and agreed that in the event of the termination of this
lease pursuant to (a) hereof, Owner shall forthwith, notwithstanding any other
provisions of this lease, to the contrary, be entitled to recover from Tenant as
and for liquidated damages an amount equal to the difference between the rent
reserved hereunder for the unexpired portion of the term demised and the fair
and reasonable rental value of the demised premises for the same period. In the
computation of such damages the difference between any installment of rent
becoming due hereunder after the date of termination and the fair and reasonable
rental value of the demised premises for the period for which such installment
was payable shall be discounted to the date of termination at the rate of four
per cent (4%) per annum. If such premises or any part thereof be re-let by the
Owner for the unexpired term of said lease, or any part thereof, before
presentation of proof of such liquidated damages to any court, commission or
tribunal, the amount of rent reserved upon such re-letting shall be deemed to be
the fair and reasonable rental value for the part or the whole of the premises
so re-let during the term of the re-letting. Nothing herein contained shall
limit or prejudice the right of the Owner to prove for and obtain as liquidated
damages by reason of such termination, an amount equal to the maximum allowed by
any statute or rule of law in effect at the time when, and governing the
proceedings in which, such damages are to be proved, whether or not such amount
be greater, equal to, or less than the amount of the difference referred to
above.

Default:

17. (1) If Tenant defaults in fulfilling any of the covenants of this lease
other than the covenants for the payment of rent or additional rent; or if
the demised premises become deserted; or if any execution or attachment shall
be issued against Tenant or any of Tenant's property whereupon the demised
premises shall be taken or occupied by someone other than Tenant; or if this
lease be rejected under Section 365 of Title 11 of the U.S. Code (Bankruptcy
Code); then, in any one or more of such events, upon Owner serving a written
(10) days notice upon Tenant specifying the nature of said default and upon
the expiration of said (10) days, if Tenant shall have failed to comply with
or remedy such default, or if the said default or omission complained of
shall be of a nature that the same cannot be completely cured or remedied
within said (10) day period, and if Tenant shall not have diligently
commenced curing such default within such (10) day period, and shall not
thereafter with reasonable diligence and in good faith proceed to remedy or
cure such default, then Owner may serve a written six (6) days notice of
cancellation of this lease upon Tenant, and upon the expiration of said six
(6) days, this lease and the term thereunder shall end and expire as fully
and completely as if the expiration of such six (6) day period were the day
herein definitely fixed for the end and expiration of this lease and the term
thereof and Tenant shall then quit and surrender the demised premises to
Owner but Tenant shall remain liable as hereinafter provided.

(2) If the notice provided for in (1) hereof shall have been given, and the
term shall expire as aforesaid: or if Tenant shall make default in the
payment of the rent reserved herein or any item of additional rent herein
mentioned or any part of either or in making any other payment herein
required after 5 days' written notice that such payment is due then and in
any of such events Owner may without notice, re-enter the demised premises
either by force or otherwise, and dispossess Tenant by summary proceedings or
otherwise and the legal representative of Tenant or other occupant of demised
premises and remove their effects and hold the premises as if this lease had
not been made, and Tenant hereby waives the service of notice of intention to
re-enter or to institute legal proceedings to that end.  * after 5 days
written notice that such payment is due

Remedies of Owner and Waiver of Redemption:

18. In case of any such default, re-entry, expiration and/or dispossess by
summary proceedings or otherwise, (a) the rent, and additional rent, shall
become due thereupon and be paid up to the time of such re-entry, dispossess
and/or expiration, (b) Owner may re-let the premises or any part or parts
thereof, either in the name of Owner or otherwise, for a term or terms, which
may at Owner's option be less than or exceed the period which would otherwise
have constituted the balance of the term of this lease and may grant
concessions or free rent or charge a higher rental than that in this lease,
and/or (c) Tenant or the legal representatives of Tenant shall also pay Owner
as liquidated damages for the failure of Tenant to observe and perform said
Tenant's covenants herein contained, any deficiency between the rent hereby
reserved and or covenanted to be paid and the net amount, if any, of the
rents collected on account of the subsequent lease or leases of the demised
premises for each month of the period which would otherwise have constituted
the balance of the term of this lease. The failure of Owner to re-let the
premises or any part or parts thereof shall not release or affect Tenant's
liability for damages. In computing such liquidated damages there shall be
added to the said deficiency such expenses as Owner may incur in connection
with re-letting, such as legal expenses, reasonable attorneys' fees,
brokerage, advertising and for keeping the demised premises in good order or
for preparing the same for re-letting. Any such liquidated damages shall be
paid in monthly installments by Tenant on the rent day specified in this
lease. Owner, in putting the demised premises in good order or preparing the
same for re-rental may, at Owner's option, make such alterations, repairs,
replacements, and, or decorations in the demised premises as Owner, in
Owner's sole judgement, considers advisable and necessary for the purpose of
re-letting the demised premises, and the making of such alterations, repairs,
replacements, and or decorations shall not operate or be construed to release
Tenant from liability. Owner shall in no event be liable in any way
whatsoever for failure to re-let the demised premises, or in the event that
the demised premises are re-let, for failure to collect the rent thereof
under such re-letting, and in no event shall Tenant be entitled to receive
any excess, if any, of such net rent collected over the sums payable by
Tenant to Owner hereunder. In the event of a breach or threatened breach by
Tenant or any of the covenants or provisions hereof, Owner shall have the
right of injunction and the right to invoke any remedy allowed at law or in
equity as if re-entry, summary proceedings and other remedies were not herein
provided for. Mention in this lease of any particular remedy, shall not
preclude Owner from any other remedy, in law or in equity. Tenant hereby
expressly waives any and all rights of redemption granted by or under any
present or future laws.

<PAGE>

Fees and Expenses:

19. If Tenant shall default in the observance or performance of any term or
covenant on Tenant's part to be observed or performed under or by virtue of
any of the terms or provisions in any article of this lease, then, unless
otherwise provided elsewhere in this lease, Owner may immediately or at any
time thereafter and without notice perform the obligation of Tenant
thereunder, and if Owner, in connection therewith or in connection with any
default by Tenant in the covenant to pay rent hereunder, makes any
expenditures or incurs any obligations for the payment of money, including
but not limited to reasonable attorney's fees, in instituting, prosecuting or
defending any actions or proceeding, such sums so paid or obligations
incurred with interest and costs shall be deemed to be additional rent
hereunder and shall be paid by Tenant to Owner within five (5) days of
rendition of any bill or statement to Tenant therefor, and if Tenant's lease
term shall have expired at the time of making of such expenditures or
incurring of such obligations, such sums shall be recoverable by Owner as
damages.

No Representations by Owner:

20. Neither Owner nor Owner's agents have made any representations or
promises with respect to the physical condition of the building, the land
upon which it is erected or the demised premises, the rents, leases, expenses
of operation, or any other matter or thing affecting or related to the
premises except as herein expressly set forth and no rights, easements or
licenses are acquired by Tenant by implication or otherwise except as
expressly set forth in the provisions of this lease. Tenant has inspected the
building and the demised premises and is thoroughly acquainted with their
condition, and agrees to take the same "as is" and acknowledges that the
taking of possession of the demised premises by Tenant shall be conclusive
evidence that the said premises and the building of which the same form a
part were in good and satisfactory condition at the time such possession was
so taken, except as to latent defects. All understandings and agreements
heretofore made between the parties hereto are merged in this contract, which
alone fully and completely expresses the agreement between Owner and Tenant
and any executory agreement hereafter made shall be ineffective to change,
modify, discharge or effect an abandonment of it in whole or in part, unless
such executory agreement is in writing and signed by the party against whom
enforcement of the change, modification, discharge or abandonment is sought.

End of Term:

21. Upon the expiration or other termination of the term of this lease,
Tenant shall quit and surrender to Owner the demised premises, broom clean,
in good order and condition, ordinary wear (and damage by fire or other
casualty, which are to be governed by Article 9 hereof) excepted, and Tenant
shall remove all its property. Tenant's obligation to observe or perform this
covenant shall survive the expiration or other termination of this lease. If
the last day of the term of this lease or any renewal thereof, falls on
Sunday, this lease shall expire at noon on the preceding Saturday unless it
be a legal holiday in which case it shall expire at noon on the preceding
business day.

Quiet Enjoyment:

22. Owner covenants and agrees with Tenant that upon Tenant paying the rent
and additional rent and observing and performing all the terms, covenants and
conditions, on Tenant's part to be observed and performed, Tenant may
peaceably and quietly enjoy the premises hereby demised, subject,
nevertheless, to the terms and conditions of this lease including, but not
limited to, Article 33 hereof and to the ground leases, underlying leases and
mortgages hereinbefore mentioned.

Failure to Give Possession:

23. If Owner is unable to give possession of the demised premises on the date
of the commencement of the term hereof, because of the holding-over or
retention of possession of any tenant, undertenant or occupants, or if the
premises are located in a building being constructed, because such building
has not been sufficiently completed to make the premises ready for occupancy
or because of the fact that a certificate of occupancy has not been procured
or for any other reason, Owner shall not be subject to any liability for
failure to give possession on said date and the validity of the lease shall
not be impaired under such circumstances, nor shall the same be construed in
any wise to extend the term of this lease, but the rent payable hereunder
shall be abated (provided Tenant is not responsible for the inability to
obtain possession) until after Owner shall have given Tenant written notice
that the premises are substantially ready for Tenant's occupancy. If
permission is given to Tenant to enter into the possession of the demised
premises or to occupy premises other than the demised premises prior to the
date specified as the commencement of the term of this lease. Tenant
covenants and agrees that such occupancy shall be deemed to be under all the
terms, covenants, conditions and provisions of this lease, except as to the
covenant to pay rent. The provisions of this article are intended to
constitute "an express provision to the contrary" within the meaning of
Section 223-a of the New York Real Property Law.

No Waiver:

24. The failure of Owner to seek redress for violation of, or to insist upon
the strict performance of any covenant or condition of this lease or of any
of the Rules or Regulations set forth or hereafter adopted by Owner, shall
not prevent a subsequent act which would have originally constituted a
violation from having all the force and effect of an original violation. The
receipt by Owner of rent with knowledge of the breach of any covenant of this
lease shall not be deemed a waiver of such breach and no provision of this
lease shall be deemed to have been waived by Owner unless such waiver be in
writing signed by Owner. No payment by Tenant or receipt by Owner of a lesser
amount than the monthly rent herein stipulated shall be deemed to be other
than on account of the earliest stipulated rent, nor shall any endorsement or
statement of any check or any letter accompanying any check or payment as
rent be deemed an accord and satisfaction, and Owner may accept such check or
payment without prejudice to Owner's right to recover the balance of such
rent or pursue any other remedy in this lease provided. No act or thing done
by Owner or Owner's agents during the term hereby demised shall be deemed in
acceptance of a surrender of said premises and no agreement to accept such
surrender shall be valid unless in writing signed by Owner. No employee of
Owner or Owner's agent shall have any power to accept the keys of said
premises prior to the termination of the lease and the delivery of keys to
any such agent or employee shall not operate as a termination of the lease or
a surrender of the premises.

Waiver of Trial by Jury:

25. It is mutually agreed by and between Owner and Tenant that the respective
parties hereto shall and they hereby do waive trial by jury in any action,
proceeding or counterclaim brought by either of the parties hereto against
the other (except for personal injury or property damage) on any matters
whatsoever arising out of or in any way connected with this lease, the
relationship of Owner and Tenant. Tenant's use of or occupancy of said
premises, and any emergency statutory or any other statutory remedy. It is
further mutually agreed that in the event Owner commences any summary
proceeding for possession of the premises, Tenant will not interpose any
counterclaim of whatever nature or description in any such proceeding.

Inability to Perform:

26. This lease and the obligation of Tenant to pay rent hereunder and perform
all of the other covenant and agreements hereunder on part of Tenant to be
performed shall in no wise be affected, impaired or excused because Owner is
unable to fulfill any of its obligations under this lease or to supply or is
delayed in supplying any service expressly or impliedly to be supplied or is
unable to make, or is delayed in making any repair, additions, alterations or
decorations or is unable to supply or is delayed in supplying any equipment
or fixtures if Owner is prevented or delayed from so doing by reason of
strike or labor troubles, government preemption in connection with a National
Emergency or by reason of any rule, order or regulation of any department or
subdivision thereof of any government agency or by reason of the conditions
of supply and demand which have been or are affected by war or other
emergency, or when, in the judgement of Owner, temporary interruption of such
services is necessary by reason of accident, mechanical breakdown, or to make
repairs, alterations or improvements.

Bills and Notices

27. Except as otherwise in this lease provided, a bill, statement, notice or
communication which Owner may desire or be required to give to Tenant, shall
be deemed sufficiently given or rendered if, in writing, delivered to Tenant
or sent by registered or certified mail addressed to Tenant at c/o TWTF
Restaurant Group, 401 East 63rd Street, New York, New York 10021 and the time of
the rendition of such bill or statement and of the giving of such notice or
communication shall be deemed to be the time when the same is delivered to
Tenant or mailed, as herein provided. Any notice by Tenant to Owner must be
served by registered or certified mail addressed to Owner at the address
first hereinabove given or at such other address as Owner shall designate by
written notice.

Water Charges:

28. If there is not currently a water meter in the demised premise which
measures all of Tenant's consumption of water in the Building then and in
that event, Tenant shall, as part of Tenant's Work (hereinafter defined) and
at Tenant's sole cost and expense install such Throughout the duration of
Tenant's occupancy Tenant shall keep said meter and installation equipment in
good working order and repair at Tenant's own cost and expense. Tenant agrees
to pay for water consumed, as shown on said meter as and when bills are
rendered. Tenant covenants and agrees to pay the sewer rent, charge or any
other tax, rent, levy or charge which now or hereafter is assessed, imposed
or a lien upon the demised premises or the realty of which they art part
pursuant to law, order or regulation made or issued in connection with the
use, consumption, maintenance or supply of water, water system or sewage or
sewage connection or system.

Sprinklers:

29. Anything elsewhere in this lease to the contrary notwithstanding, if the
New York Board of Fire Underwriters or the Insurance Services Office or any
bureau, department or official of the federal, state or city government
require or recommend the installation of a sprinkler system or that any
changes, modifications, alterations, or additional sprinkler heads or other
equipment be made or supplied in an existing sprinkler system by reason of
Tenant's business, or the location of partitions, trade fixtures, or other
contents of the demised premises, or for any other reason, or if any such
sprinkler system installations, changes, modifications, alterations,
additional sprinkler heads or other such equipment, become necessary to
prevent the imposition of a penalty or charge against the full allowance for
a sprinkler system in the fire insurance rate set by any said Exchange or by
any fire insurance company. Tenant shall, at Tenant's expense, promptly make
such sprinkler system installations, changes, modifications, alterations, and
supply additional sprinkler heads or other equipment as

<PAGE>

required whether the work involved shall be structural or non-structural in
nature. Tenant shall pay to Owner as additional rent 36% of the contract
price for sprinkler supervisory service on the first day of each month during
the term of this lease.

Heat, Cleaning:

30. As long as this lease is in full force and effect. Owner shall, if and
insofar as existing facilities permit furnish heat to the demised premises,
during the hours that the demised premises are open to the public.

Tenant shall at Tenant's expense, keep demised premises clean and in order,
to the satisfaction to Owner, and if demised premises are situated on the
street floor, Tenant shall, at Tenant's own expense, make all repairs and
replacements to the sidewalks and curbs adjacent thereto, and keep said
sidewalks and curbs free from snow, ice, dirt and rubbish. Tenant shall
independently, contracting for the removal of Tenant's refuse and rubbish and
the removal of such refuse and rubbish shall be subject to such rules and
regulations as, in the judgement of Owner, are necessary for the proper
operation of the building.

Security:

31. If, as and when Tenant deposits any money with Owner as security for the
faithful performance and observance by Tenant of the terms, provisions and
conditions of this lease, the same shall be held by Owner in accordance with
the terms and provisions of this Article. It is agreed that in the event
Tenant defaults in respect of any of the terms, provisions and conditions of
this lease, including, but not limited to, the payment of rent and additional
rent. Owner may use, apply or retain the whole or any part of the security so
deposited to the extent required for the payment of any rent and additional
rent or any other sum as to which Tenant is in default or for any sum which
Owner may expend or may be required to expend by reason of Tenant's default
in respect of any of the terms, covenants and conditions of this lease,
including but not limited to, any damages or deficiency in the re-letting of
the premises, whether such damages or deficiency accrued before or after
summary proceedings or other re-entry by Owner. In the event that Tenant
shall fully and faithfully comply with all of the terms, provisions,
covenants and conditions of this lease, the security shall be returned to
Tenant after the date fixed as the end of the lease and after delivery of
entire possession of the demised premises to Owner. In the event of the sale
of the land and building or leasing of the building, of which the demised
premises form a part, Owner shall have the right to transfer the security to
the vendor or lessee and Owner shall thereupon be released by Tenant from all
liability for the return of such security, and Tenant agrees to look to the
new Owner solely for the return of said security; and it is agreed that the
provisions hereof shall apply to every transfer or assignment made of the
security to a new Owner. Tenant further covenants that it will not assign or
encumber or attempt to assign or encumber the monies deposited herein as
security and that neither Owner nor its successors or assigns shall be bound
by any such assignment, encumbrance, attempted assignment or attempted
encumbrance.

Caption:

32. The Captions are inserted only as a matter of convenience and for
reference and in no way define, limit or describe the scope of this lease nor
the intent of any provision thereof.

Definitions:

33. The term "Owner" as used in this lease means only the Owner, or the
mortgages in possession, for the time being of the land and building (or the
Owner of a lease of the building or of the land and building) of which the
demised premises form a part, so that in the event of any sale or sales of
said land and building or of said lease, or in the event of the lease of said
building, or of the land and building, the said Owner shall be and hereby is
entirely freed and relieved of all covenants and obligations of Owner
hereunder, and it shall be deemed and construed without further agreement
between the parties or their successors in interest, or between the parties
and the purchaser, as any such sale, or the said lessee of the building, or
of the land and building, that the purchaser or the lessee of the building
has assumed and agreed to carry out any and all covenants and obligations of
Owner hereunder. The words "re-enter" and "re-entry" as used in this lease
are not restricted to their technical legal meaning. The term "business days"
as used in this lease shall exclude Saturdays (except such portion thereof as
is covered by specific hours in Article 30 hereof), Sundays and all days
designated as holidays by the applicable building service union employees
service contract or by the applicable Operating Engineers contract with
respect to HVAC service.

Adjacent Excavation - Sharing

34. If an excavation shall be made upon land adjacent to the demised
premises, or shall be authorized to be made. Tenant shall afford to the
person causing or authorized to cause such excavation, license to enter upon
the demised premises for the purpose of doing such work as said person shall
deem necessary to preserve the wall or the building of which demised premises
form a part from injury or damage and to support the same by proper
foundations without any claim for damages or indemnity against Owner, or
diminution or abatement or rent.

Rules and Regulations:

35. Tenant and Tenant's servants, employees, agents, visitors, and licensees
shall observe faithfully, and comply strictly with the Rules and Regulations
and such other and further reasonable Rules and Regulations as Owner or
Owner's agents may from time to time adopt. Notice of any additional rules or
regulations shall be given in such manner as Owner may elect. In case Tenant
disputes the reasonableness of any additional Rule or Regulation hereafter
made or adopted by Owner or Owner's agents, the parties hereto agree to
submit the question of reasonableness of such Rule or Regulation for decision
to the New York office of the American Arbitration Association, whose
determination shall be final and conclusive upon the parties hereto. The
right to dispute the reasonableness of any additional Rule or Regulation upon
Tenants part shall be deemed waived unless the same shall be asserted by
service of a notice, in writing upon Owner within ten (10) days after the
giving of notice thereof. Nothing in this lease contained shall be construed
to impose upon Owner any duty or obligation to enforce the Rules and
Regulation or terms, covenants or conditions in any other lease, as against
any other tenant and Owner shall not be liable to Tenant for violation of the
same by any other tenant, its servants, employees, agents, visitors or
licensees.

Glass:

36. Tenant shall replace, at the expense of Tenant, any and all plate and
other glass damaged or broken from any cause whatsoever in and about the
demised premises. Tenant shall insure, and keep insured, at Tenant's expense,
all plate and other glass in the demised premises for and in the name of
Owner.

Pornographic Uses Prohibited:

37. Tenant agrees that the value of the demised premises and the reputation
of the Owner will be seriously injured if the premises are used for any
obscene or pornographic purposes of any sort of commercial sex establishment.
Tenant agrees that Tenant will not bring or permit any obscene or
pornographic material on the premises, and shall not permit or conduct any
obscene, nude, or semi-nude live performances on the premises, nor permit use
of the premises for nude modeling, rap sessions, or as a so-called rubber
goods shops, or as a sex club of any sort, or as a "massage parlor." Tenant
agrees further that Tenant will not permit any of these uses by any sublessee
or assignee of the premises. This Article shall directly bind any successors
in interest to the Tenant. Tenant agrees that if at any time Tenant violates
any of the provisions of this Article, such violation shall be deemed a
breach of a substantial obligation of the terms of this lease and
objectionable conduct. Pornographic material is defined for purposes of this
Article as any written or pictorial matter with prurient appeal or any
objects of instrument that are primarily concerned with lewd or prurient
sexual activity. Obscene material defined here as it is in Penal Law
Section 235.00.

Estoppel Certificate:

38. Tenant, at any time, and from time to time, upon at least 10 days' prior
notice by Owner, shall execute, acknowledge and deliver to Owner, and or to
any other person, firm or corporation specified by Owner, a statement
certifying that this lease is unmodified and in full force and effect (or, if
there have been modifications, that the same is in full force and effect as
modified and stating the modifications), stating the dates which the rent and
additional rent have been paid, and stating whether or not there exists any
defaults by Owner under this lease, and, if so, specifying each such default.

Successors and Assigns:

39. The covenants, conditions and agreements contained in this lease shall
bind and inure to the benefit of Owner and Tenant and their respective heirs,
distributees, executors, administrators, successors, and except as otherwise
provided in this lease, their assigns.

      In Witness Whereof, Owner and Tenant have respectively signed and sealed
this lease as of the day and year first above written.

                                                                     [CORP SEAL]

Witness for Owner:                   HOLROD ASSOCIATES

                                     By:
-------------------------------         ------------------------------[L.S.]

Witness for Tenant                   THURSDAY'S SUPPER PUB, INC. [L.S.]

                                     By:
-------------------------------         ------------------------------

                                                                     [CORP SEAL]

<PAGE>

                        RIDER ANNEXED TO AND FORMING PART OF
                        AGREEMENT OF LEASE DATED AS OF AUGUST 31,
                        1983 BETWEEN HOLROD ASSOCIATES, AS OWNER,
                        AND THURSDAY'S SUPPER PUB, INC., AS
                        TENANT, RESPECTING SPACE AT 57 WEST 58th
                        STREET, NEW YORK, NEW YORK
                        -----------------------------------------

      40. The demised premises shall consist of the portions of the basement,
first floor and second floor of the Building shown and designated on the plan
annexed hereto as Exhibit A and made a part hereof.

      41. (a) Tenant shall use and occupy the demised premises for the following
purpose and no other purpose: the operation of a first-class restaurant serving:
(i) a full range of food items for consumption on the demised premises only; and
(ii) alcoholic beverages for consumption on the demised premises only. Tenant
warrants and covenants that the entire demised premises shall be open for
business not less than five days per week, including holidays and Saturdays,
fifty-two weeks per year, serving food items and alcoholic beverages during all
usual and customary business hours during which competitive restaurants in the
general vicinity of the demised premises (which do not serve breakfast) are open
for business each day (but not more than five days per week) except when
prevented from doing so by strikes, fires, casualties or other causes beyond
Tenant's reasonable control. Tenant agrees to operate the aforesaid restaurant
on the demised premises during the entire term of this lease and agrees to
conduct its activities and any such use in a manner consistent with the
character and setting of the Building as a first-class residence.

            (b) Tenant agrees not to cause, suffer or permit any cooking or like
odors to emanate from the demised premises. Tenant agrees to provide and
maintain, at its own expense, an adequate ventilating system for this purpose.
Owner will permit Tenant to use any existing exhaust ducts serving the demised
premises, but Owner makes no representation to Tenant with respect to the
existence, adequacy or condition of any such ducts. Tenant agrees to keep such
ventilating system (and all other fixtures) in good order and repair at all
times, to provide approved grease filters and other devices to prevent the
accumulation of grease and other foreign substances in such system, and to cause
the ducts thereof to be cleaned as often as may be required to keep the same
free from grease and other foreign substances. Tenant agrees, at its own cost
and expense, to use all reasonable diligence in accordance with the best
prevailing accepted methods to prevent and exterminate vermin, rats, flies and
other insects in the demised premises. If Tenant shall fail so to do after five
(5) days notice to that effect, or shall fail to adopt and employ proper methods
therefor, Owner may, in addition to any of its other rights and/or remedies,
take such steps as it, in its sole discretion, determines are reasonably
necessary or desirable to effect such purpose; and any amounts expended by Owner
therefor plus ten percent thereof shall be repayable to it by Tenant upon demand
in accordance with statements thereof or bills or invoices therefor rendered by
Owner to Tenant and the amount of such statement, bill or invoice shall be
deemed to be and shall be paid as additional rent.

<PAGE>

            Tenant agrees not to cause, suffer or permit: (i) any undesirable
vibrations, noises or other undesirable effects that were not previously extant
to exist in or emanate from the demised premises or any equipment or
installation therein into other portions of the Building; (ii) the demised
premises or any use thereof to constitute a nuisance or otherwise unreasonably
to interfere with or disturb in any manner the safety, comfort or enjoyment of
the Building by the other tenants and occupants thereof.

            (c) Tenant shall do all things that may be required to maintain
harmonious relations with any unions representing any employees of Owner or its
underlying lessor or any other employees at the Building.

            (d) Tenant, at its own cost and expense, agrees diligently to make
application for and to obtain any necessary licenses and permits in any wise
required in respect of the demised premises and/or in order that the demised
premises may be used for the purposes set forth in this Article and shall cause
all such licenses and permits to be and remain in full force and effect and not
to be violated throughout the term of this lease, including, without limitation,
the sale and consumption of liquor, beer and wine in the demised premises, and
will in good faith exercise its best efforts to obtain, and will diligently
prosecute the application therefor.

            Tenant shall cause all such licenses and permits to be and remain in
full force and effect throughout the term of this lease and the suspension,
revocation or cancellation of any such license or permit without reinstatement
by Tenant after a period of 30 days shall constitute a default under this lease
(unless Tenant shall commence reinstatement proceedings within such 30 day
period and shall diligently and continuously prosecute same to successful
completion).

      Tenant represents that: (i) none of its officers, directors or
shareholders have ever been denied any license by the State Liquor Authority,
and that they have not ever had any such license suspended or revoked; and (ii)
it knows of no reason why it would not be able to obtain any licenses required
to be obtained by Tenant so that the demised premises could be used for the
purposes set forth in this Article.

            (e) Tenant, at its sole expense, shall comply with the rules,
regulations and orders of insurance companies, the Board of Fire Underwriters
and all governmental and quasi-governmental departments, agencies and other
entities in respect of the demised premises and/or said use or occupancy thereof
including, without limitation, rules, orders and regulations of the State Liquor
Authority and the Alcoholic Beverage Control Board, and shall indemnify and save
harmless Owner, Owner's agents and employees, of and from any claim, violation,
crime, penalty or offense arising out of the violation or alleged violation of
any law, ordinance, rule or regulation of the Board of Health, New York State
Liquor Authority or any other state or municipal Department or Agency having
jurisdiction over the demised premises or the operation by Tenant of its
business therein.

                                      -2-
<PAGE>

      42. (a) (1) Owner hereby consents, subject nevertheless to the provisions
of this Article and Article 3 hereof, to the making by Tenant at the
commencement of the term of this lease of certain permanent leasehold
improvements and other non-structural alterations to the demised premises and to
the performance of such work (hereinafter collectively "Tenant's Work") in
accordance with the provisions of this Article; and Tenant hereby agrees to
perform and (subject to strikes, material shortages, acts of God and similar
events beyond Tenant's control) to complete Tenant's Work before January 31,
1984 and that Tenant's Work shall include the creation and installation of a
first-class restaurant within the demised premises.

                  (2) Promptly after the date hereof and prior to Tenant
undertaking any work in or alterations to the demised premises, Tenant agrees to
submit to Owner for its approval (which shall not be unreasonably withheld or
delayed) two sets of complete working drawings, plans and specifications
(collectively "Tenant's Plans"), including, but not limited to all mechanical,
electrical, air conditioning and other utility systems and facilities, for the
proposed Tenant's Work, prepared by an architect and/or engineer duly licensed
as such in the State of New York. Promptly following Owner's receipt of Tenant's
Plans Owner shall review or cause to be reviewed Tenant's Plans and shall
thereupon return to Tenant one set of the same with Owner's approval or
disapproval noted thereon, and if the same shall be disapproved in any respect
Owner shall state the reason for such disapproval. In case of any such
disapproval Tenant shall, promptly after receipt thereof, cause its architect or
engineer to make such changes to Tenant's Plans as Owner shall require and
thereupon resubmit the same to Owner for its approval. Following the approval of
Tenant's Plans, as aforesaid, the same shall be final and shall not be changed
by Tenant without the prior approval of Owner (which shall not be unreasonably
withheld or delayed) except as may be required by law, and Tenant shall give
prior notice to Owner of any such changes as may be required by law and shall
promptly furnish Owner with copies of all such required changes in Tenant's
Plans. Owner's approval of Tenant's Plans or of any revisions thereto do not and
shall not constitute an opinion or agreement by Owner that the same are
structurally sufficient or that Tenant's Plans are in compliance with law, nor
shall such approval impose any present or future liability on Owner or waive any
of Owner's rights hereunder. Tenant acknowledges and agrees that Owner's
approval of Tenant's Plans shall be conditioned upon Tenant employing licensed
persons and firms (where required by law) and such labor for the performance of
Tenant's Work as will not cause any jurisdictional or other labor disputes in
the Building. In any event, all contractors and subcontractors Tenant proposes
to employ shall be bondable and shall be subject to Owner's prior approval.

            (b) (1) Promptly following Owner's approval of Tenant's Plans,
Tenant shall (with Owner's cooperation) secure or cause to be secured, at
Tenant's sole cost and expense, all necessary approvals of Tenant's Plans from
all governmental authorities having jurisdiction thereover and Tenant shall also
secure or cause to be secured all permits and licenses necessary to perform
Tenant's Work and shall furnish Owner with copies of Tenant's Plans as approved
by such governmental authorities and copies of such permits and licenses. If
required, Owner shall

                                      -3-
<PAGE>

join in such applications to governmental bodies as are necessary to obtain the
aforesaid licenses, approvals or permits, provided Tenant pays all costs and
expenses incurred in connection therewith and first indemnifies Owner and its
partners (in an agreement satisfactory to Owner in form and content) of, from
and against any and all liability, damage, expense or any other matter or thing
in any way relating to any such application and/or any proposed alteration.

                  (2) Promptly after having secured the approvals from Owner and
from the governmental authorities required under subdivision (1) of this
paragraph (b), Tenant shall enter into a construction contract which includes,
among other terms, indemnification, insurance, bonding and retainage provisions
reasonably satisfactory to Owner, and which otherwise is in compliance with the
terms of this lease, with a general contractor previously approved by Owner
(which approval shall not be unreasonably withheld or delayed) and Tenant shall
furnish Owner with a copy of such executed contract.

                  (3) Concurrently with the execution and delivery of this lease
by Tenant to Owner, Tenant shall deliver to Owner a personal and irrevocable
guaranty of the performance by Tenant and Tenant's agents, employees,
independent contractors and subcontractors of their responsibility to remove all
liens, of the prompt payment by Tenant for all work, labor and materials
employed in connection with Tenant's Work and of the prompt, expeditious and
workmanlike completion of Tenant's Work executed by Alan Stillman, residing at
322 East 57th Street, New York, New York, that is in the form annexed hereto as
Exhibit B and made a part hereof.

      Any default by Tenant under the terms and provisions of this Article or
under Article 3 hereof shall be and be deemed to be a default by Alan Stillman
under the terms and provisions of said guaranty and any default by Alan Stillman
under the terms and provisions of said guaranty shall be and be deemed to be a
default by Tenant under the terms and provisions of this lease.

                  (4) Prior to commencing any work pursuant to any provisions of
this lease, Tenant shall, in addition to the other items set forth in this
paragraph or elsewhere in this Lease, furnish to Owner:

                  (i) a certificate evidencing that Tenant (or Tenant's
            contractor) has procured worker's compensation insurance covering
            all persons employed in connection with Tenant's Work who might
            assert claims for death or bodily injury against Owner, Tenant or
            such contractor.

                  (ii) such additional personal and bodily injury, property
            damage and other insurance (in addition to the insurance required to
            be carried by Tenant pursuant to the provisions of Article 52
            hereof) as Owner may reasonably require because of the nature of
            Tenant's Work.

                                      -4-
<PAGE>

            (c) Following compliance by Tenant with its obligation under the
foregoing paragraph (b), Tenant shall promptly commence or cause to be commenced
Tenant's Work and shall complete or cause the same to be completed with
reasonable diligence and in any event (subject to strikes, material shortages,
acts of God and similar events beyond Tenant's control) before January 31, 1984,
substantially in accordance with Tenant's Plans (as approved), in a first-class,
good and workmanlike manner, and in accordance with all applicable laws,
ordinances and regulations of all governmental and insurance authorities and
with all requirements of the Board of Fire Underwriters governing the same. All
of Tenant's Work shall be performed in a manner so as to cause as little
inconvenience and disturbance as is reasonably possible to other tenants or
contractors in the Building. Tenant shall cause all construction work to be
performed in a reasonable manner; any heavy pounding or demolition work to be
performed by Tenant as part of Tenant's Work shall be performed at such times as
Owner shall specify. At all times during the progress of Tenant's Work Tenant
shall permit Owner, its architect and other representatives of Owner access to
the demised premises for the purpose of inspecting the same, verifying
conformance of Tenant's Work with Tenant's Plans and otherwise viewing the
progress of Tenant's Work.

            (d) Tenant's Work shall not entail any structural changes to the
demised premises or to the Building nor shall it impair the structural soundness
of the demised premises or the Building. All of Tenant's Work shall be performed
within the demised premises and shall not interfere with or impair the use of
other portions of the Building or the services available therein, including,
without limitation, the plumbing, heating, ventilating, air conditioning and
electrical systems, by Owner or other occupants of the Building or guests
therein. All reasonable architects', engineers' or attorneys' fees incurred by
Owner in respect of this Article and any fees, costs or expenses incurred by
Owner in respect of Tenant's default under this Article shall be paid by Tenant
on demand. If Tenant shall at any time claim that Owner unreasonably withheld
its approval to any submissions under this Article or Article 3 hereof contrary
to the terms and provisions of said Articles, that question shall be determined
by arbitration and if Tenant prevails, Owner's sole liability or obligation
shall be to approve same.

            (e) (1) Tenant shall pay its contractors, laborers, subcontractors,
materialmen and suppliers in accordance with their respective agreements with
Tenant, and shall not cause or suffer any liens, mortgages, chattel liens, or
other title retention or security agreements to be placed on the demised
premises, any part thereof or any fixtures attached thereto. Nothing contained
in this Article or elsewhere in this lease shall be construed in any way as
constituting any consent or authorization to Tenant to subject the land or the
Building or any part of the Building or any improvements or other personal
property therein or the interest or estate of Owner or of the lessor under any
underlying lease to any lien or charge in respect of Tenant's Work. All
contracts or agreements made by Tenant with any third party or parties in
connection with Tenant's Work (or any other alterations by Tenant which Owner
may at any time approve) shall, to the fullest extent permitted by law,
expressly provide that said third party or parties shall

                                      -5-
<PAGE>

look solely to Tenant for any and all payments to be made pursuant to such
contract or agreement and that neither Owner nor the lessor under any underlying
lease shall have any responsibility or liability for the payment thereof.

                  (2) Promptly following the completion of Tenant's Work, Tenant
shall obtain and submit to Owner copies of: (i) all final governmental and fire
underwriters' approvals or certificates evidencing the completion thereof in
compliance with all governmental and fire underwriters' requirements; (ii) the
final Certificate for Payment issued by Tenant's architect certifying that, on
the basis of an on-site inspection, Tenant's Work has been fully completed and
that the entire balance of the contract sum due the general contractor, as noted
in said final Certificate for Payment, is due and payable; (iii) the general
contractor's affidavit to the effect that all work and materials covered by the
final Application for Payment has been completed and/or installed substantially
in accordance with Tenant's Plans, or such changes thereto which Owner may have
previously approved and that the general contractor and all laborers,
materialmen and subcontractors employed by the general contractor have been paid
in full and have no claim or claims for money or otherwise against the general
contractor or Tenant, which affidavit shall be accompanied by lien releases or
such other data establishing payment or satisfaction of all obligations as Owner
may reasonably request; and (iv) Tenant's affidavit to the effect that Tenant
paid not less than $250,000 for Tenant's Work.

            (f) Nothing contained in this Article shall limit or qualify the
terms, covenants, agreements, provisions and conditions of Article 3 hereof,
except as expressly and specifically set forth in this Article. The terms,
covenants, agreements, provisions and conditions of this Article are in addition
to the terms, covenants, agreements, provisions and conditions contained in
Article 3 hereof.

      43. (a) (1) In addition to and not in limitation of any other provision of
this lease, it is expressly understood, acknowledged and agreed that: (i)
commencing on January 1, 1985 and annually thereafter (said date and each
anniversary thereof being herein called an "Adjustment Date") until and
including December 31, 1993 the Fixed Minimum Rent reserved hereunder shall
automatically be increased by an amount equal to fifty percent (50%) of the
product derived by multiplying the Fixed Minimum Rent reserved hereunder on the
day immediately preceding the Adjustment Date by the percentage increase, if
any, in the Consumer Price Index for the month preceding each such Adjustment
Date over the Consumer Price Index for the month immediately preceding the
preceding Adjustment Date or, in the case of the first Adjustment Date (when
there is no preceding Adjustment Date), over the Consumer Price Index for the
month of August, 1983; (ii) the Fixed Minimum Rent reserved under this lease
beginning on January 1, 1994 shall be and be deemed to be the fair market rental
value of the demised premises (the "Fair Market Rent") as the same shall be
determined in accordance with the terms and provisions of paragraph (c) of this
Article; provided, however, that if the Fair Market Rent does not exceed the sum
of the Fixed Minimum Rent as adjusted on January 1, 1993 plus the amount equal
to seventy-five (75%) of the product derived by multiplying the Fixed Minimum
Rent in effect on January 1, 1993

                                      -6-
<PAGE>

by the percentage increase, if any, in the Consumer Price Index for the month of
December, 1993 over the Consumer Price Index for the month of December, 1992
(the "1994 Rent") by more than ten (10%) percent thereof, then the Fixed Minimum
Rent reserved hereunder beginning on January 1, 1994 shall equal the 1994 Rent;
and (iii) commencing on January 1, 1995 and annually thereafter for the
remainder of the term of this lease (said date and each anniversary thereof
being herein called a "Change Date"), the Fixed Minimum Rent reserved hereunder
shall automatically be increased by an amount equal to seventy-five percent
(75%) of the product derived by multiplying the Fixed Minimum Rent reserved
hereunder on the day immediately preceding the Change Date by the percentage
increase, if any, in the Consumer Price Index for the month preceding each such
Change Date over the Consumer Price Index for the month immediately preceding
the preceding Change Date or, in the case of the first Change Date (when there
is no preceding Change Date), over the Consumer Price Index for the month of
December, 1993.

                  (2) As used in this Article, "Consumer Price Index" shall mean
the Consumer Price Index for all Urban Consumers published by the Bureau of
Labor Statistics of the United States Department of Labor for the New York
Northeastern New Jersey Area, all items (1967=100), or any successor thereto.
In the event that the Consumer Price Index is converted to a different standard
reference base or otherwise revised in the terms or number of kind or items
contained therein or otherwise, the determination of the increased Fixed Minimum
Rent shall be made with the use of such conversion factor, formula or table for
converting the Consumer Price Index as may be published by the Bureau of Labor
Statistics or, if said Bureau shall not publish the same, then with the use of
such conversion factor, formula or table as may be published by Prentice-Hall,
Inc. or any other nationally recognized publisher or similar statistical
information, or if a conversion factor, formula or table is unavailable, Owner
shall use any other method to adjust the Consumer Price Index, or any successor
thereto, to the figure that would have been arrived at had the manner of
computing the Consumer Price Index not been altered. If the Consumer Price Index
ceases to be published on a monthly basis, then the shortest period for which
the Consumer Price Index is published which includes the relevant months shall
be used. If the Consumer Price Index ceases to be published, and there is no
successor thereto, such other index as Owner and Tenant shall agree upon in
writing shall be substituted for, the Consumer Price Index. If Owner and Tenant
cannot agree on an index within sixty (60) days after the Consumer Price Index
ceases to be published then the index to be used in its stead shall be
established by arbitration.

                  (3) In no event shall the Fixed Minimum Rent, as originally
provided to be paid under this lease or as thereafter increased pursuant to
adjustments under this paragraph or otherwise, be reduced for any reason
whatsoever.

                  (4) Any delay or failure of Owner in computing or billing for
the adjustments of Fixed Minimum Rent hereinabove set forth shall not constitute
a waiver of or in any way impair the continuing obligation of Tenant to pay such
adjustments hereunder from and after the date the same become effective in
accordance with the terms of this lease and for the period in this lease set
forth.

                                      -7-
<PAGE>

            (b) Notwithstanding anything hereinbefore to the contrary contained:
(i) Tenant's obligation to pay Fixed Minimum Rent shall not commence until
November 1, 1983 (the rent that would have been due for the months of September
and October, 1983 being hereinafter sometimes referred to as the "Waived Rent");
and (ii) Tenant shall be entitled to defer payment of the Fixed Minimum Rent
reserved under this lease for November and December, 1983, and January, l984,
(the "Deferred Rent") such that the Deferred Rent shall become due and payable
in twelve (12) equal monthly installments beginning on February 1, 1984 and on
the first day of each month thereafter until and including January 1, 1985
provided, however, that: (x) if Tenant shall have defaulted beyond any
applicable grace or cure period in the performance of any of its obligations
hereunder, including without limitation, its obligations under Article 42
hereof, respecting Tenant's Work, then the Waived Rent shall become immediately
due and payable and the provision in this paragraph contained respecting the
deferral of rent shall not apply; and/or (y) if the demised premises are open to
the public at any time prior to January 31, 1984 (the "Opening Date"), then and
under such circumstances, notwithstanding anything in this paragraph (b) to the
contrary, Fixed Minimum Rent shall be due and payable from and after the Opening
Date.

            (c) (1) If Owner and Tenant are unable, on or before November 15,
1993 to: (i) reach agreement as to the Fair Market Rent; and (ii) mutually
execute and deliver a supplementary agreement, in form and content reasonably
satisfactory to Owner's attorneys, specifying the Fair Market Rent, then such
rent shall be determined as in this paragraph (c) provided. In no case, however,
shall the Fair Market Rent be less than the 1994 Rent.

                  (2) In the event that the Fair Market Rent is to be determined
in accordance with the provisions of this subdivision, the following procedure
shall be utilized: Tenant shall appoint a disinterested person with at least ten
(10) years professional service as a licensed real estate broker in the State of
New York who has been involved in the appraisal and rental of retail restaurant
space in the Borough of Manhattan for not less than five (5) years to serve as
an appraiser on its behalf and shall give notice thereof to Owner on or before
November 15, 1993. Owner shall, within fifteen (15) days after receiving said
notice appoint a second disinterested person having qualifications similar to
those of the appraiser appointed by Tenant to serve as appraiser on its behalf
and shall give written notice thereof to Tenant. If either Owner or Tenant fails
or neglects to timely appoint an appraiser, pursuant to the foregoing, then and
in such event the other party shall select a person to serve as the appraiser
not so selected by the first party, and upon such selection, such appraiser
shall be deemed to have been selected by the first party. The appraisers thus
appointed shall appoint a third disinterested person, who shall be a real estate
broker licensed as such in the State of New York actively engaged in the rental,
sale and appraisal of restaurant space in the Borough of Manhattan for not less
than ten (10) years. If the appraisers thus appointed by Owner and Tenant shall
fail to appoint such third disinterested appraiser (who is amenable to serving
as such) within fifteen (15) days after the appointment of two appraisers, then
either Owner or Tenant may,

                                      -8-
<PAGE>

by application to the president of The Real Estate Board of New York, Inc. seek
the appointment of such third disinterested person. Upon such appointment, such
person shall be the third appraiser as if appointed by the original two
appraisers. Each appraiser shall, after the appointment of the third appraiser,
render in writing to Owner and Tenant its own independent appraisal of what the
annual fair market rental value of the demised premises would be were the same
then ready to be leased and dedicated as a first class restaurant free of all
liens and encumbrances of any kind for the remainder of the term together with
an affidavit that his appraisal is an independently determined bona fide
estimate. The sum of the amounts specified in each of the three appraisals shall
be divided by three and the quotient of such division shall be the annual Fair
Market Rent. Said quotient shall conclusively be and be deemed to be the Fair
Market Rent and shall be binding on Owner and Tenant. The cost and expense of
each of the appraisers appointed (or which should have been appointed) by Owner
and Tenant shall be borne by Owner and Tenant respectively and the cost and
expense of the third appraiser shall be shared equally by Owner and Tenant,
unless this lease expressly provides otherwise. Owner and Tenant agree to sign
all documents and to do all other things necessary to submit the question of the
amount of the Fair Market Rent to the appraisers and further agree to, and
hereby do, waive any and all rights they or either of them may at any time have
to revoke their agreement under this Article.

                  (3) If, for any reason whatsoever, the Fair Market Rent shall
not have been determined on or before January 1, 1994, then in that event,
pending the determination of the Fair Market Rent, Tenant shall pay rent in an
amount equal to the 1994 Rent (as the same shall be determined in accordance
with the terms and provisions of item (ii) of subdivision (1) of paragraph (a)
of this Article without regard to subdivisions (1) and (2) of this paragraph
(c)), without prejudice to the rights of Owner to claim a deficiency in the rent
so paid following the determination of the Fair Market Rent, and such deficiency
shall be paid by Tenant to Owner on the date when the next succeeding
installment of Fixed Minimum Rent shall become due following the rendition by
Owner to Tenant of a written statement setting forth such deficiency.

      44. (a) For the purposes of this Article, the following quoted words,
terms, or phrases shall have the meaning in this paragraph (a) ascribed to them:
(1) "Base Tax Year" shall mean the calendar year 1983; (2) "Building" shall mean
the building in which the premises hereby demised are located and the land upon
which such building is situated; and (3) "Tenant's Percentage" shall mean
eighteen percent (18%); except, however, if the Building is converted to
condominium ownership then, and in that event, from and after the date of such
conversion, Tenant's Percentage shall mean thirty-six percent (36%).

            (b) (1) In the event that the real estate taxes payable with respect
to the Building for any fiscal tax year (July 1 through June 30) in which this
lease shall be in effect (or a portion of such fiscal tax year, on a pro rata
basis when appropriate), shall be greater than the amount of such taxes (on a
pro rata basis, when appropriate) due and payable during the Base Tax Year,
whether by reason of an increase in either the tax

                                      -9-
<PAGE>

rate or the assessed valuation, or both, or by reason of the levy, assessment or
imposition of any tax on real estate as such, ordinary or extraordinary, not now
levied, assessed or imposed, or for any other reason, Tenant shall pay and does
covenant to pay to Owner upon being billed therefor, as additional rent, an
amount equal to Tenant's Percentage of the increase in the amount of such tax or
installment over the corresponding tax or installment for the Base Tax Year.
Tenant shall also pay and does covenant to pay to Owner, as additional rent,
upon being billed therefor, an amount equal to Tenant's Percentage of any
assessment or installment thereof for public betterments or improvements which
may be levied upon or in respect of the Building. Owner may take the benefit of
the provisions of any statute or ordinance permitting any such assessment to be
paid over a period of time and in such event Tenant shall be obligated to pay
Tenant's Percentage of the installments of any such assessments which shall
become due and payable during the term of this lease. Upon request, Owner shall
furnish Tenant with a copy of the real estate tax bill for any fiscal tax year
in which Tenant is hereunder required to pay additional rent.

                  Notwithstanding the foregoing, if at any time during the term
of this lease the Building is converted to condominium ownership or the retail
and commercial areas of the Building (the "Lower Unit") are assessed separately
from the residential portions of the Building, then from and after such separate
assessment, Tenant shall pay Tenant's Percentage of any increase in the amount
of real estate taxes payable with respect to the Lower Unit for any fiscal tax
year over the amount of such taxes due and payable with respect to the Lower
Unit during the Base Tax Year. For the purposes of the foregoing calculation,
the amount of real estate taxes payable with respect to the Lower Unit during
the Base Tax Year shall be deemed to equal the product of: (i) the amount of
real estate taxes payable with respect to the entire Building during the Base
Tax Year; and (ii) the fraction, the numerator of which is the amount of real
estate taxes payable with respect to the Lower Unit during the first full fiscal
tax year in which the Lower Unit is separately assessed and the denominator of
which is the amount of real estate taxes payable with respect to the Lower Unit
and all other units in the Building during the first full fiscal year in which
the Lower Unit is separately assessed.

                  (2) Notwithstanding anything in subdivision (1) of this
paragraph (b) to the contrary, it is understood and agreed that if Owner shall
receive a refund of any portion of real estate taxes in respect of which Tenant
shall have paid additional rent under subdivision (1) of this paragraph (b),
then and under such circumstances and if this lease shall then be in full force
and effect without default on the part of Tenant beyond any applicable grace and
cure period, Tenant shall be entitled to a credit against future payments of
additional rent under subdivision (1) of this paragraph (b) in an amount equal
to Tenant's Percentage of such refund, after first deducting from such total
refund all fees, costs and expenses incurred by Owner in collecting same. If at
the expiration of the term of this lease any credit to which Tenant might be
entitled pursuant to the preceding sentence shall not have been used as a credit
as in such sentence provided, then and under such circumstances and subsequent
to Tenant properly vacating the demised premises as

                                      -10-
<PAGE>

herein provided and as long as Tenant is not otherwise in default hereunder
beyond any applicable grace or cure period, Tenant shall be entitled to a
payment equal to the amount of any such remaining credit. If the taxes for the
Base Tax Year shall be reduced by certiorari proceedings or otherwise, Owner
shall be entitled to recalculate the additional rent in respect of any fiscal
tax year after the Base Tax Year that would have been payable by Tenant
hereunder in accordance with subdivision (1) of this paragraph (b) had such
reduction occurred or been known at or prior to the time additional rent for
any such fiscal tax year was being originally calculated, and Tenant agrees to
pay any additional rent resulting from such recalculation.

            (c) If this lease shall commence on a date other than the beginning
of a fiscal tax year or shall end on a date other than the end of a fiscal tax
year, then the additional rent payable under this Article for such years shall
be prorated. Tenant's obligation to pay such additional rent shall survive the
expiration or sooner termination of the term of this lease. For the nonpayment
of any additional rent Owner shall have the same remedies, rights and privileges
that Owner has for the non-payment of the Fixed Minimum Rent reserved hereunder.
Receipt and acceptance by Owner of any installment of Fixed Minimum Rent
reserved under this lease or any of the additional rent that may be required to
be paid by Tenant under this lease, shall not be or be deemed to be a waiver of
any other additional rent or Fixed Minimum Rent then or thereafter due and no
delay in determining the amount of any additional rent due pursuant to this
Article or otherwise shall be or be deemed to be a waiver of Owner's rights
thereto.

            (d) (1) Owner, at its option, shall be entitled to charge, receive
and collect from Tenant and Tenant agrees to pay to Owner on the first day of
each month during each fiscal tax year an amount equal to 1/12th of 110% of the
additional rent (considered as an annualized figure) hereunder required to be
paid by Tenant to Owner for the preceding fiscal tax year, it being further
understood and agreed that if the precise amount of additional rent required to
be paid by Tenant for such fiscal tax year shall ultimately be determined to be
in excess of the amount theretofore paid by Tenant hereunder, Tenant shall
forthwith pay to Owner the amount of such excess, and if such determination
shall be that Tenant paid more than the precise amount of additional rent
required to be paid by Tenant for such fiscal tax year, the amount of such
excess shall be credited to future payments of additional rent required to be
paid by Tenant hereunder or, if the term hereof shall have ended and no
additional rent shall be due or owing, then subsequent to Tenant properly
vacating the demised premises as herein provided and as long as Tenant is not
otherwise in default hereunder beyond any applicable grace or cure period, such
excess shall be paid to Tenant.

                  (2) Additionally, any time that it becomes evident to Owner
that monthly payments under this paragraph (d) will be insufficient to satisfy
Tenant's additional rental obligations under this lease, Owner, on notice to
Tenant may appropriately increase the monthly payments hereunder and Tenant
agrees to pay same.

                                      -11-
<PAGE>

      45. Tenant acknowledges and represents to Owner that it has inspected and
examined, or caused to be inspected and examined, the Building and the demised
premises and that it is fully familiar and satisfied with the physical condition
thereof, and Tenant does hereby agree to accept the same in their existing
condition and state of repair "as is", and Owner shall have no obligation to do
any work or make any installation or alteration of any kind to the Building or
the demised premises to prepare the same for Tenant's occupancy or otherwise.
Nor shall Owner at any time during the term of this lease have any obligation to
make any repairs within the demised premises, and all such repairs of any kind
or nature shall be made by Tenant at its sole cost and expense; but nothing in
this sentence shall alter any express obligations of Owner as same may be
elsewhere set forth in this lease.

      46. Anything contained in Article 30 hereof to the contrary
notwithstanding, Tenant agrees to keep and cause to be kept closed all windows
in the demised premises and at all times to cooperate fully with Owner and to
otherwise abide by all reasonable regulations and requirements which Owner may
prescribe to permit the proper functioning and protection of the heating system
of the Building. Owner reserves the right to stop such system when necessary by
reason of accident or emergency or for repairs, alterations, replacements or
improvements which in the reasonable judgment of Owner are desirable or
necessary to be made and until said repairs, alterations, replacements or
improvements shall have been completed, Owner shall have no responsibility or
liability for failure to supply heat during said period, or when prevented from
so doing by any cause beyond Owner's control or by any laws, orders, rules,
requirements or regulations of any governmental authority having jurisdiction
thereover and Tenant shall not be entitled to any diminution or abatement of
rent by reason of the stoppage of such heat for any of the aforesaid reasons or
for any other reason whatsoever nor shall the same in any wise affect the
obligation of Tenant to perform and fulfill its covenants and agreements under
this lease. Tenant shall furnish air conditioning for the demised premises at
its sole cost and expense and Owner shall have no obligation or liability with
respect thereto to any extent whatsoever.

      47. Tenant shall purchase and receive gas and electricity for the demised
premises directly from the public utility company serving the Building, and
Tenant shall pay directly to such utility company all charges for Tenant's gas
and electricity consumption as measured by separate meter(s). Unless meter(s)
are already installed, same shall be installed by and at the expense of Tenant.
Owner shall permit Owner's pipes, conduits and electrical conductors, to the
extent available and suitably and safely capable, to be used for the purpose of
supplying gas and electricity to the demised premises. Owner shall not in any
way be liable or responsible to Tenant for any loss, damage or expense which
Tenant may sustain or incur if during the term of this lease, either the quality
or type of gas or electricity is changed or is no longer available for Tenant's
requirements. Tenant represents that it has inspected and is satisfied with the
gas service and electrical power now available within and for the demised
premises.

                                      -12-
<PAGE>

      48. Whenever Owner is required or desires to send any notice or other
communication to Tenant under or pursuant to this lease, it is understood and
agreed that such notice or communication, if sent by Owner's attorneys or any
other of Owner's agents (of whose agency Owner shall have advised Tenant in
writing), shall, for all purposes, be deemed to have been sent by Owner. A copy
of all such notices shall be sent to Tenant's attorney provided Owner shall have
received written notice of said attorney's name and address. No notice or other
communication to Owner under or pursuant to this lease shall be effective unless
a copy thereof is sent by registered or certified mail to Owner's attorney
(provided Tenant shall receive written notice of said attorney's name and
address). Until further notice, for the purposes hereof Owner's attorney is:
Kramer, Levin, Nessen, Kamin & Frankel, 919 Third Avenue, New York, New York
10022, attn: Michael Paul Korotkin, Esq.

      49. (a) Anything contained in Article 11 hereof to the contrary
notwithstanding, Owner agrees that it will not unreasonably withhold or delay
its consent to an assignment of this lease made in connection with a bona fide
sale by Tenant of the restaurant business operated in the demised premises,
provided proof shall have been furnished to Owner, in form reasonably
satisfactory to Owner, that: (i) the proposed purchaser is an established
restaurant operator; (ii) such sale shall have been duly approved by all
licensing authorities whose approval is a legal prerequisite to such sale and/or
the operation of a first class restaurant in the demised premises by the
assignee; and (iii) the proposed purchaser will agree (in a writing reasonably
satisfactory to Owner's counsel) to operate a first class restaurant serving a
full range of food items and alcoholic beverages for the balance of the term of
this lease.

            (b) (1) The granting of Owner's consent to an assignment of this
lease pursuant to paragraph (a) of this Article and the effectiveness of any
such assignment shall be conditioned upon Tenant delivering or causing to be
delivered to Owner: (i) a duly executed and acknowledged assignment of this
lease, in form reasonably satisfactory to Owner, by the terms of which Tenant
shall assign to the assignee its entire interest in this lease, together with
all prepaid rents hereunder; (ii) a duly executed and acknowledged assumption
agreement executed by the assignee, in form reasonably satisfactory to Owner, by
the terms of which the assignee shall: (x) expressly assume and agree to
perform, directly for the benefit of Owner, all of the terms, convenants and
conditions of this lease on the part of the Tenant to be performed; (y) consent
to all of the provisions of this lease; and (z) acknowledge and agree that the
demised premises shall be used and occupied for the purposes set forth in
Article 41 hereof and for no other purpose; (iii) affidavits from Tenant and the
assignee stating that the lease is in full force and effect without default of
any kind on the part of Owner (or setting forth any claimed default) and setting
forth the amount of the Fixed Minimum Rent in effect on the day before and the
day after the effective date of such assignment; and (iv) a clean,
unconditional, irrevocable, transferable commercial letter of credit in form
reasonably acceptable to Owner, issued by a bank in The City of New York,
acceptable to Owner, in the amount of $100,000 to be held by Owner in accordance
with the terms and provisions of Article 31 hereof as security for the faithful
per-

                                      -13-
<PAGE>

formance and observance by Tenant of the terms, provisions and conditions of
this lease. Said letter of credit shall provide for payment thereunder upon
presentation by Owner or any partner or officer of Owner, or any successor in
interest to Owner, to such bank of a sight draft and shall also provide for the
continuance of such credit for a period of at least one year from the date of
issuance. Tenant agrees to deliver to Owner, at least thirty (30) days prior to
the date on which said letter of credit expires, an extension of said letter of
credit or a new or substitute letter of credit from year to year, which
extended, new or substitute letter of credit shall be alike in substance and
issued by a bank acceptable to Owner. If Tenant fails to deliver any such
extended, new or substitute letter of credit as aforesaid, such failure will be
a default under this lease and Owner may elect to draw on the letter of credit
then in effect and hold the proceeds thereof (less any and all reasonable costs
incurred by Owner in drawing on or cashing said letter of credit) in accordance
with the provisions of Article 31 hereof and pursue any and all other rights and
remedies under this lease or at law, in equity or otherwise. In the event that
any default beyond any applicable grace or cure period occurs as provided in
this lease, Owner may draw on said letter of credit, and the unexpended proceeds
of said letter of credit (less any and all reasonable costs incurred by Owner in
drawing on or cashing said letter of credit), if any, shall then be held as
security as provided in Article 31 hereof. If Owner at any time utilizes any
portion of the security in respect or by reason of a default by Tenant, Tenant
shall, within ten (10) days after demand, restore and pay Owner the amount so
utilized.

                  (2) Upon the granting of Owner's consent to an assignment of
this lease pursuant to paragraph (a) of this Article and the delivery to Owner
of the items referred to in subdivision (1) of paragraph (b) of this Article and
provided Tenant is not in default hereunder, Owner shall, on the effective date
of the aforesaid assignment, deliver to Tenant a certificate stating that to the
best of Owner's knowledge Tenant is not in default hereunder. From and after the
effective date of the assignment and provided Tenant has complied with each and
every one of its obligations under Article 42 hereof and completed Tenant's
Work, the assignor shall be released from liability under this lease except with
respect to its obligations under this Article, and Articles 57 and 62 hereof.

            (c) If there is an assignment of this lease at any time prior to the
fulfillment by Tenant of every one of its obligations under Article 42 hereof
then, in addition to the other terms and conditions in this Article and in
Article 11 hereof set forth, as a further condition to the effectiveness of such
assignment, Owner shall be paid (prior to the date on which it is contemplated
that such assignment is to become effective) an amount equal to forty (40%)
percent of the total consideration (less the bona fide and reasonable brokerage
commission and legal fees paid by Tenant in connection with such assignment) to
be paid by the assignee in connection with such assignment to the extent that
said consideration exceeds $300,000 plus the New Business Loss Factor. The New
Business Loss Factor shall be equal to the lesser of: (i) $100,000 or (ii) the
product of (a) $25,000; and (b) the number of months in which Owner has received
the total amount of Fixed Minimum Rent and additional rent due

                                      -14-
<PAGE>

hereunder. The effectiveness of any such assignment shall be further conditioned
upon the delivery to Owner prior to the effective date of such assignment of
certifications by Tenant and the assignee (in the form of affidavits) stating
the total consideration paid and payable to Tenant in respect of the assignment.

            (d) The term "assignment" as used in this lease: (i) shall include
any dissolution, merger, consolidation or other reorganization of any corporate
Tenant, or any pledge of its capital stock, or any sale or transfer of a
controlling interest in its capital stock; (ii) shall not include an assignment
to a corporation in which Alan Stillman, his wife or children (or a trust of
which they are the sole beneficiaries) have a controlling interest; (iii) shall,
if Tenant is a partnership, include any change in the general partner in such
partnership; (iv) shall, if Tenant is a partnership, include any change in the
limited partners in such partnership that results in Alan Stillman, his wife or
children (or a trust of which they are the sole beneficiaries) having less than
a 25% interest in such partnership; and (v) shall not include an assignment to a
partnership in which Alan Stillman (or a corporation in which Alan Stillman, his
wife or children have the controlling interest) is the sole general partner and
in which he or said corporation has a 25% or larger interest. The term
"controlling interest", as used herein, shall mean the direct ownership of stock
possessing, and of the right to exercise, fifty (50%) percent of the total
combined voting power of all classes of stock of such corporation, issued,
outstanding and entitled to vote for the election of directors. No consent to an
assignment shall relieve Tenant from the requirement that it obtain consent to
each subsequent purported assignment. If a dispute arises as to whether Owner
has withheld its consent hereunder unreasonably, that question shall be
submitted to arbitration and if Tenant prevails, Owner's sole liability will be
to grant such consent.

            (e) Tenant acknowledges and agrees that if there is an assignment of
this lease (except an assignment to Alan Stillman individually) before July 1,
1988: (i) then from and after the effective date of such assignment the Fixed
Minimum Rent shall be the greater of: (x) the then applicable Fixed Minimum
Rent; and (y) the Fair Market Rent as the same shall have been determined by
agreement between Owner and Tenant prior to the date that is thirty (30)
business days before the effective date of the assignment or in accordance with
the procedure set forth in subdivision (2) of paragraph (c) of Article 43 hereof
provided, however, that if the Fair Market Rent does not exceed the then Fixed
Minimum Rent by more than ten percent (10%) thereof, the Fixed Minimum Rent then
in effect, subject to the adjustments set forth in subdivision (i) of paragraph
(a) of Article 43 hereof, will remain in effect without regard to the Fair
Market Rent; and (ii) the date "January 1, 1985" and the words "of August, 1983"
appearing in item (i) of subdivision (1) of paragraph (a) of Article 43 of this
lease will be altered to read "the first day of the month immediately preceeding
the date that this lease is assigned" and "that is twelve (12) months prior to
the month in which this lease is assigned" respectively.

            (f) (1) Owner and Tenant agree that concurrently, with the execution
and delivery of this lease a memorandum of

                                      -15-
<PAGE>

this lease (the "Memorandum of Lease") in the form annexed hereto as Exhibit C
and made a part hereof shall be executed by the parties hereto and delivered to
Owner's attorneys to be held in escrow pursuant to the escrow agreement annexed
hereto as Exhibit D and made a part hereof.

                  (2) Notwithstanding any provision of this lease to the
contrary, in connection with the initial assignment of this lease pursuant to
paragraph (a) of this Article in connection with a bona fide sale by Tenant of
its entire business, Owner agrees to the recordation of the Memorandum of Lease
and the placement thereon of a leasehold mortgage solely for the purpose of
better-securing the purchase-money obligation which is owing to Tenant in
connection with such sale of the business provided that: (i) Tenant is not in
default hereunder beyond any applicable grace or cure period and has complied
with all of its obligations under this Article; (ii) Tenant is the payee of a
note given by the purchaser to Tenant as part of the consideration for said sale
and seeks to record the Memorandum of Lease in connection with a leasehold
mortgage given solely to secure said note; (iii) the Memorandum of Lease shall
be forever subject and subordinate to any and all declarations of condominium
affecting the Building or any part thereof which includes the demised premises;
and (iv) all costs and expenses (including any taxes, recording or filing costs
and reasonable attorney's fees) incurred by Owner in connection with the
Memorandum of Lease shall be borne and paid for by Tenant.

                  (3) The term "leasehold mortgage" as used in this subdivision
refers exclusively to the type of mortgage contemplated and sanctioned in
subdivision (2) of this paragraph. The holder of a leasehold mortgage is
hereinafter referred to as a "leasehold mortgagee". If, before any default shall
have occurred under this lease, Owner shall receive a notice specifying the name
and address of a leasehold mortgagee, thereafter Owner shall, when notifying
Tenant of a default hereunder, notify such leasehold mortgagee of the same at
the address set forth in the notice received from such leasehold mortgagee.
Owner shall accept performance by any such leasehold mortgagee (within the
applicable grace or cure period) of any covenant, condition, or agreement on
Tenant's part to be performed hereunder if, at the time of such performance,
Owner shall be furnished with evidence reasonably satisfactory to Owner that the
party tendering such performance is a leasehold mortgagee. No modification of
this lease shall be effective as against a leasehold mortgagee unless said
leasehold mortgagee consents in writing thereto, which consent shall not be
unreasonably withheld or delayed. If this lease shall be cancelled or
terminated, Owner shall give notice thereof to any leasehold mortgagee who shall
have notified Owner of its name and address prior to such cancellation or
termination. Owner shall, if request is received from a leasehold mortgagee
within twenty (20) days after notice is given to such leasehold mortgagee that
this lease is cancelled or terminated, enter into a lease (the "New Lease") with
said leasehold mortgagee for the remainder of the term of this lease upon the
covenants, terms, conditions, limitations and agreements herein contained
provided that: (i) not more than one leasehold mortgagee requests to so enter
into a lease with Owner; (ii) said leasehold mortgagee shall have cured any and
all defaults which would then exist under this lease which could be cured with
the

                                      -16-
<PAGE>

payment of money or the performance of work or both including, without
limitation, defaults in the payment of all Fixed Minimum Rent and additional
rent to the end of the first month after the commencement date of the New Lease
were this lease still in full force and effect; (iii) said leasehold mortgagee
shall have paid to Owner all of the costs and expenses, including without
limitation, reasonable legal fees and disbursements, incurred by Owner in
connection with the cancellation or termination of this lease and the
preparation, execution and delivery of the New Lease; and (iv) nothing contained
herein or in the New Lease shall or shall be deemed to impose any obligation on
Owner to deliver possession of the demised premises to any leasehold mortgagee.

            (g) Except as expressly modified by this Article all of the terms
and provisions of Article 11 hereof shall remain unchanged and in full force and
effect.

      50. Anything contained in this lease to the contrary notwithstanding, it
is specifically agreed that there shall be no personal liability on Owner or on
any disclosed or undisclosed principal of Owner or on any limited or general
partner, officer, director or shareholder of Owner in respect of any of the
terms, covenants and provisions of this lease; in the event of a breach or
default by Owner in any of its obligations under this lease, Tenant agrees to
look solely to the equity of Owner in the Building for the satisfaction of
Tenant's remedies or for the collection of any judgment (or other judicial award
to Tenant) requiring the payment of money by Owner, and no other assets or
property of Owner and no assets or property of any partner (limited or general),
officer, director, shareholder or principal (disclosed or undisclosed) of Owner
shall be subject to levy, execution or other procedure for the satisfaction of
same.

      51. This lease and all rights of the Tenant hereunder are subject and
subordinate to any and all mortgages or deeds of trust now affecting the demised
premises or the real property of which the demised premises forms a part, and to
any institutional renewals, modifications, consolidations, replacements or
extensions of any mortgages as well as to any declaration of condominium or
institutional mortgages or deeds of trust which may hereafter affect the demised
premises or the Building. This Article is self-operative and no further
instrument of subordination is required. Tenant shall, however, within five (5)
days following request therefor execute, acknowledge and deliver to Owner an
instrument evidencing or confirming this subordination and, if Tenant shall fail
to do so, Owner is hereby irrevocably authorized (as attorney-in-fact, coupled
with an interest) to execute, acknowledge and deliver any such instrument for
and on behalf of and in the name of Tenant.

      Without limiting or otherwise affecting the above and/or other
subordination provisions of this lease, Owner shall use its best efforts to
obtain a written agreement, in form and substance reasonably satisfactory to the
holder of a mortgage or deed of trust now or hereafter affecting the demised
premises to which this lease is or shall be subordinate, from the holder of said
mortgage or deed of trust to the effect that as long as Tenant is not in default
under the provisions of this lease, notwithstanding any default in such mortgage
and any foreclosure thereof, the enforcement by the holder thereof of any rights
thereunder or otherwise, this lease shall remain in full force and effect and
Tenant shall be permitted to remain in possession of the demised

                                      -17-
<PAGE>

premises through the term of this lease, subject to the rights of Owner
contained in this lease in the event of any default of Tenant hereunder,
provided Tenant executes such instrument to confirm its obligations hereunder
and Tenant agrees to enter into any such agreement so obtained by Owner and to
attorn to any such mortgagee or a purchaser at a foreclosure sale. In the event
Owner is unsuccessful in obtaining such agreement from the holders of
institutional mortgages or deeds of trust which may hereafter affect the demised
premises or the Building, Tenant may, at its sole cost and expense, seek to
obtain the same. In the event Owner is successful in obtaining such agreement
from the holders of non-institutional mortgages or deeds of trust which may
hereafter affect the demised premises or the Building then this lease and all of
Tenant's rights hereunder shall be subject and subordinate to such mortgages or
deeds of trust but if Owner is unsuccessful in obtaining such agreement from the
holders of non-institutional mortgages or deeds of trust which may hereafter
affect the demised premises or the Building then this lease shall not be
subordinate to such non-institutional mortgages or deeds of trust. For the
purpose of this Article institutional refers to: savings banks, savings and loan
associations, commercial banks or trust companies (whether acting individually
or in a fiduciary capacity), insurance companies (whether acting individually or
in a fiduciary capacity) organized and existing under the laws of the United
States, any state thereof or a foreign state, real estate investment trusts
(that are publicly held or controlled), religious, educational or eleemonsynary
institutions having a net worth of $100,000,000.00 or more, employee benefit,
pension or retirement plans or funds having a net worth of $100,000,000.00 or
more, any combination of the foregoing or any other institution which at the
time in question is generally regarded in the financial community as an
institutional lender.

      Owner confirms that on the date as of which this lease has been executed,
Owner is the fee title owner of the Building.

      52. (a) Tenant shall provide and keep in force for the benefit of Owner
and Tenant jointly, as their respective interests may appear, insurance covering
all personal property, trade fixtures, equipment and contents owned by Tenant
and located in the demised premises, against loss or damage by fire, casualty,
and all risks comprehended within the so-called extended coverage endorsements
on fire policies (as such endorsements may from time to time be customarily
written for properties of the same or similar type) to the extent of the full
replacement cost thereof.

            (b) Tenant shall provide and keep in force for the benefit of Owner
and Tenant, comprehensive general public liability insurance protecting Owner
and Tenant, as their respective interests may appear, against any and all
liability (including, without limitation, loss or liability under the Dram Shop
Act) in amounts of not less than $3,000,000.00 in respect of injuries or death
to any one person, $5,000,000.00 in respect of any one accident or disaster, and
in the amount of not less than $2,000,000.00 in respect of destruction or damage
to property, and such policies shall cover the entire demised premises as well
as the sidewalks in front thereof and adjacent thereto.

                                      -18-
<PAGE>

            (c) Tenant shall provide and keep in force workmen's compensation
and disability insurance subject to statutory limits covering all of Tenant's
employees.

            (d) Tenant shall provide and keep in force for the benefit of Owner
and Tenant such other insurance as Owner may, from time to time, reasonably
require.

            (e) At least twenty (20) days prior to the expiration of each such
policy, Tenant shall pay the premiums for renewal insurance and within such
period shall deliver to Owner the original policy with the endorsement thereon
marked "PAID" and/or duplicate receipts evidencing payment thereof. All such
policies shall be written by insurers licensed to do business in the State of
New York, shall be in form reasonably acceptable to Owner and shall contain
agreements by the insurers that such policies shall not be cancelled or
materially altered, except upon ten (10) days prior written notice to Owner.

            (f) Tenant shall pay all premiums and charges for all of such
policies, and if Tenant shall fail to make any such payment when due, or carry
any such policy, Owner may, but shall not be obligated to make such payment, or
carry such policy and the amounts paid by Owner, with interest thereon from the
date of payment, shall become due and payable by Tenant as additional rent with
the next succeeding installment of Fixed Minimum Rent which shall become due
after such payment by Owner; but payment by Owner of any such premiums or the
carrying by Owner of any such policy shall not be deemed to waive or release the
default of Tenant with respect thereto, or the right of Owner to take such
action as may be permissible hereunder as in the case of default in the payment
of Fixed Minimum Rent.

            (g) Tenant and Owner shall cooperate in connection with the
collection of any insurance proceeds that may be due, including the execution,
acknowledgment and delivery by Tenant to Owner of such proofs of loss and other
instruments which may be required for the purpose of obtaining the recovery of
any such insurance proceeds. In the event that either party hereto is paid by
its insurance carrier for any work paid for by the other party hereto, the
amount so received (less the cost of collection thereof) shall be paid to the
party incurring the expense of the work, but in no event shall such payment
exceed the sum actually paid for such work.

      53. All cleaning and janitorial services in respect of the demised
premises, its windows and the sidewalks adjoining the demised premises shall be
done by (and shall be the sole responsibility of) Tenant at its sole expense.

      54. Tenant shall give prompt notice to Owner of any fire, accident, loss,
damage, dangerous or defective condition in, to or of the demised premises or
any part thereof or the fixtures or other property of Owner therein. Such notice
shall not, however, be deemed or construed to impose upon Owner any obligation
to perform any work to be performed by Tenant under this lease.

      55. (a) (1) Tenant acknowledges that Tenant has been informed by Owner
that the Building and the respective apartments

                                      -19-
<PAGE>

and commercial space therein are or may be undergoing substantial renovation,
repairs and rehabilitation during the term hereof and that such renovation,
repairs and rehabilitation may result in certain inconveniences or disturbances
to Tenant and other occupants of the Building. Tenant agrees that the
performance of any of such work shall not constitute or be deemed to be a
constructive eviction or be grounds for a termination of this lease or the term
hereof, nor shall the same in any way affect the obligations of Tenant under
this lease, including, without limitation, the obligation to pay the rents
reserved herein, or give Tenant the right to claim damages from Owner or Owner's
agents or contractors. Owner reserves the right to make any changes to the
Building, and Tenant agrees it shall at no time raise any objection thereto or
make any claim by reason thereof. Owner shall use reasonable efforts to minimize
any interruption of Tenant's business caused by such work.

                  (2) Notwithstanding the provisions of subdivision (1) of this
paragraph, if Owner commences exterior renovation work on the 58th Street side
of the Building which requires a sidewalk bridge or scaffolding in front of the
main entrance to the demised premises and said scaffolding is not removed at or
prior to the Opening Date and causes Tenant to defer the Opening Date then,
provided Tenant shall have completed Tenant's Work and otherwise complied with
and fulfilled each and every one of its obligations under Article 42 hereof,
Tenant shall not be required to pay Fixed Minimum Rent until such sidewalk
bridge or scaffolding is removed from in front of said main entrance.

            (b) Neither Owner nor Owner's agents shall incur any liability to
Tenant for failure to abate any nuisance or noise created or permitted by any
other occupant of the Building, and no act or thing done by any other occupant
shall constitute or be deemed to be a constructive eviction, in whole or in
part, or shall in any way affect the obligations of Tenant under this lease,
including, but not limited to, the obligation to pay the rents reserved herein.

      56. Owner's right to enter the demised premises to perform work, make
repairs and to install and maintain pipes and conduits therein (which right is
hereby confirmed without imposing any duties or obligations on Owner to so enter
the demised premises, perform work, make repairs or install or maintain pipes
and conduits) shall be subject to the following conditions except in emergencies
(when such right shall be unconditional and unrestricted):

            (a) any pipes or conduits so installed shall, where practicable, be
concealed under floors, behind walls or in ceilings or closets, provided that if
such concealment adds to the cost of the installation, the additional cost shall
be borne or paid for by Tenant on demand;

            (b) Owner shall give Tenant prior oral notice of its intent to enter
the demised premises;

            (c) Owner shall perform all work, make all repairs and install all
pipes and conduits that it is otherwise obligated to perform, make or install in
a manner designed to minimize

                                      -20-
<PAGE>

interference with Tenant's permitted business operations (although Owner shall
not thereby be required to incur any additional cost or expense whatsoever
unless Tenant requests Owner to do so and, promptly upon demand, pays or
reimburses Owner for all of such costs and expenses); and

            (d) any work, repairs and installations Owner elects to make shall
not materially reduce the usable floor area of the demised premises.

      57. Tenant represents and warrants to Owner that no broker was consulted
by Tenant in connection herewith nor had any part in bringing about this lease
transaction. Tenant agrees to hold harmless and indemnify Owner from and against
any and all liabilities and expenses, including (without limitation) legal fees,
in connection with any claim for commissions, compensation or otherwise in
connection with the bringing about of this lease transaction and/or the
consummation thereof, which may be made by any person, firm or corporation
claiming to have dealt with Tenant.

      58. In such cases where this lease expressly provides for the settlement
of a dispute or question by arbitration, and only in such cases, the same shall
be settled by arbitration in the Borough of Manhattan, City and State of New
York, in accordance with the rules then obtaining of the American Arbitration
Association, governing commercial arbitration. In the event that the American
Arbitration Association shall not be then in existence, the party desiring
arbitration shall appoint a disinterested person as arbitrator on its behalf and
give notice thereof to the other party who shall, within fifteen (15) days
thereafter, appoint a second disinterested person as arbitrator on its behalf
and give written notice thereof to the first party. The arbitrators thus
appointed shall appoint a third disinterested person, who shall be an attorney
at law admitted to the practice of his or her profession for not less than ten
(10) years. If the arbitrators thus appointed shall fail to appoint such third
disinterested person, then either party may, by application to the Presiding
Justice of the Appellate Division of the Supreme Court of the State of New York
for the First Judicial Department, seek to appoint such third disinterested
person. Upon such appointment, such person shall be the third arbitrator as if
appointed by the original two arbitrators. The decision of the majority of the
arbitrators shall be conclusive and binding on all parties and judgment upon the
award may be entered in any court having jurisdiction. If a party who shall have
the right pursuant to the foregoing, to appoint an arbitrator, fails or neglects
to do so, then and in such event the other party shall select the arbitrators
not so selected by the first party, and upon such selection, such arbitrator
shall be deemed to have been selected by the first party. The expenses of
arbitration shall be shared equally by Owner and Tenant, but each party shall
pay and be separately responsible for its own counsel and witness fees. Owner
and Tenant agree to sign all documents and to do all other things necessary to
submit any such matter to arbitration and further agree to, and hereby do, waive
any and all rights they or either of them may at any time have to revoke their
agreement hereunder to submit to arbitration and to abide by the decision
rendered thereunder and agree that a judgment or order may be entered in any
court of competent jurisdiction based on an arbitration award (including the
granting of injunctive relief).

                                      -21-
<PAGE>

      The arbitrators shall have the right to retain and consult expert and
competent authorities skilled in the matters under arbitration, but any such
consultation shall be made in the presence of both parties, with full right on
their part to cross-examine such experts and authorities. The arbitrators shall
render their decision and award not later than sixty (60) days after the
appointment of the third arbitrator. Their decision and award shall be in
writing and counterpart copies thereof shall be delivered to each of the
parties. In rendering their decision and award, the arbitrators shall have no
power to modify or in any manner alter or reform any of the provisions of this
lease, and the jurisdiction of the arbitrators is limited accordingly.

      59. Supplementing Article 3 hereof, it is agreed that (except as otherwise
set forth in Article 42 hereof with respect to Tenant's Work) Tenant may make
non-structural interior alterations to the demised premises provided such
alterations: (i) cost less than $25,000 in the aggregate during any calendar
year during the term hereof; (ii) do not in any wise or manner adversely affect
the operating systems or facilities of the Building; (iii) are otherwise
performed in compliance with all provisions of this lease relating to
alterations by Tenant; (iv) Tenant is not otherwise in default under this lease
and at least twenty days prior to commencing any work pursuant to this Article,
Tenant sends Owner written notice thereof together with such additional
information as would be reasonably calculated to fully apprise Owner as to the
nature, extent and other details of such proposed alteration.

      60. Supplementing Article 9 hereof, it is agreed that if the demised
premises are totally damaged or rendered wholly unusable by fire or other
casualty and are not substantially repaired within one year after such fire or
other casualty then either Owner or Tenant shall have the right, exercisable
within thirty (30) days after the first anniversary of such fire or other
casualty, to terminate this lease as of the date ten (10) days after written
notice of such election is given to the other party.

      61. Article 10 hereof is hereby supplemented to add the following:

            "Tenant may, if permitted by law, make a separate claim with the
      condemning authority for the value of such of its trade fixtures and
      business machines and equipment as are not nor ever were Owner's property
      and which are taken in condemnation, provided such claim: (i) is entirely
      and totally subordinate to any and all claims by Owner and/or
      groundlessees or mortgagees; and (ii) in no wise or manner, to any extent
      whatsoever, adversely affects the claim or claims by Owner and/or such
      groundlesses or mortgagees."

      62. Neither the submission of this lease form to Tenant nor the execution
of this lease by Tenant shall constitute an offer by Owner to lease the demised
premises to anyone nor to restate, modify, or amend that certain lease (the "Pub
Lease") dated as of May 19, 1976 by and between Owner, as landlord, and Tenant.
This lease shall not be or become binding upon Owner to any extent or for any
purpose unless and until it is executed by

                                      -22-
<PAGE>

Owner and a fully executed copy thereof is delivered to Tenant. If this lease
shall be fully executed and delivered as aforesaid, then, and in that event,
this lease shall be and be deemed to be a modification and amendment of the Pub
Lease as a result of which the Pub Lease shall be restated so that the
relationship between the parties and the tenancy in respect of the demised
premises shall be governed solely by this instrument and the Pub Lease shall
have no further force or effect except that neither the execution and delivery
of this lease nor anything contained herein or otherwise shall operate to
discharge Tenant of any of its obligations to Owner under the Pub Lease and/or
in respect of the demised premises with respect to time periods before September
1, 1983.

      63. If any provision of this lease shall be held invalid or unenforceable,
such invalidity or unenforceability shall affect only such provision and shall
not in any manner affect or render invalid or unenforceable any other provision
of this lease, and this lease shall be enforced as if any such invalid or
unenforceable provision were not contained herein.

      64. If there shall be any conflict between any provision contained in this
Rider and the printed provisions of this lease, the provisions of this Rider
shall prevail.

                                      -23-
<PAGE>

                                [GRAPHIC OMITTED]

                                   EXHIBIT A

<PAGE>

                                [GRAPHIC OMITTED]

                                      -2-
<PAGE>

                                    GUARANTY

      In consideration of, and as an inducement for the granting, execution and
delivery of that certain lease, dated as of August 31, 1983 ("Lease"), by Holrod
Associates, as Owner ("Owner") to Thursday's Supper Pub, Inc., as Tenant
("Tenant"), affecting portions of the basement, first floor and second floor at
57 West 58th Street, New York, New York, and in further consideration of the sum
of One ($1.00) dollar and other good and valuable consideration paid by Owner to
the undersigned, the receipt and sufficiency of which are hereby acknowledged,
the undersigned, Alan Stillman residing at 322 East 57th Street, New York, New
York ("Guarantor"), hereby absolutely and unconditionally guarantees to Owner,
its successors and assigns the full and prompt payment of all charges for work,
labor, services and materials of whatever nature or kind that are payable by
Tenant or its successors and assigns under the Lease in connection with Tenant's
Work (as the same is defined in the Lease) or otherwise and hereby further
guarantees Tenant's full and timely performance and observance of all the
covenants, terms, conditions and agreements respecting Tenant's Work to be
performed and observed by Tenant and its successors and assigns as set forth in
the Lease or otherwise as well as full and timely completion of Tenant's Work.

      Guarantor hereby covenants, agrees and warrants to, with and for the
benefit of Owner that it shall remove and discharge, by bonding, payment or
otherwise, any lien, encumbrance or charge upon the premises demised in the
Lease or the building or real property of which the same forms a part caused by
any act or alleged act of commission or omission on the part of Tenant, or any
of its agents or contractors, or in any manner related to Tenant's Work within
ten (10) days of the creation or imposition of the same. Further, should any
such lien, encumbrance or charge be bonded and should Owner or its agents be
thereafter named as a party in any action or proceeding in respect of such bond
or claim, Guarantor hereby agrees to forever indemnify and save harmless Owner,
its partners and their agents in respect thereof and to pay all costs and
expenses (including legal fees) of Owner related thereto.

      Guarantor hereby further covenants, agrees and warrants to, with and for
the benefit of Owner that if default shall at any time be made by Tenant or its
permitted successors or assigns, in the payment by Tenant, its agents,
employees, independent contractors or subcontractors or its successors or
assigns of any charges payable by Tenant, Tenant's agents, employees or
independent contractors for work, labor, services or materials in connection
with Tenant's Work or otherwise, or if Tenant or its successors or assigns
should in any wise or manner default in the performance and observance of any of
the covenants, terms, conditions and agreements respecting Tenant's Work
contained in the Lease or otherwise, or if Tenant, its agents, employees,
independent contractors or subcontractors do not complete Tenant's Work in a
prompt, diligent, expeditious and workmanlike manner pursuant to the terms and
provisions of the Lease or otherwise, Guarantor, in each and every instance,
shall and will forthwith pay such charges together with any penalty or interest
due thereon to the party or parties to whom the same are owed or due and
payable, and shall and will forthwith faithfully perform and fulfill all of such
covenants, terms, conditions and agreements and shall and will take any and all
actions necessary to complete promptly Tenant's Work in accordance with the
terms and provisions of the Lease.

      Guarantor represents and warrants to and for the benefit of Owner that it:
(i) is the exclusive stockholder of Tenant; and (ii) that the execution,
delivery and performance of this Guaranty does not and will not violate any term
or provision of any indenture, agreement or other instrument to which Guarantor
is a party, or by which Guarantor or any of its assets or property may be bound,
or be in conflict with, result in a breach of or con-

                                   EXHIBIT B

<PAGE>

stitute (with due notice or lapse of time or both) a default under any such
indenture, agreement or other instrument, or result in the creation or
imposition of any lien, charge or encumbrance of or to any extent or any nature
whatsoever upon any of the assets or property of Guarantor.

      Guarantor hereby confirms its understanding that any default by Tenant
under the terms and provisions of Articles 3 or 42 of the Lease shall be and be
deemed to be a default by Guarantor hereunder and that a default by Guarantor
hereunder shall be and be deemed to be a default under the terms and provisions
of the Lease.

      This Guaranty is an irrevocable, absolute and unconditional guaranty of
payment and of performance. It shall be enforceable against Guarantor by Owner
and Owner's general partners, assignees and nominees without the necessity of
any suit or proceedings on Owner or a third party's part of any kind or nature
whatsoever against Guarantor, Tenant or the latter's successors or assigns, and
without the necessity of any notice of non-payment, non-performance or
non-observance being given by any party to Guarantor or Tenant or the latter's
successors or assigns or of any notice of acceptance of this Guaranty or of any
other notice or demand to which Guarantor might otherwise be entitled, all of
which Guarantor hereby expressly waives; and Guarantor hereby expressly agrees
that the validity of this Guaranty and the obligations of Guarantor hereunder
shall in no wise be terminated, affected, diminished or impaired by reason of
the assertion or the failure to assert by Owner against Tenant, or against
Tenant's successors or assigns, any of the rights or remedies reserved to Owner
pursuant to the provisions of the Lease or otherwise available to Owner.

      In addition to and not in limitation of any provision hereof, Guarantor
confirms its intent, agreement and understanding to be primarily obligated under
those portions of the Lease respecting Tenant's Work, as if it had agreed to and
executed the same as tenant and as if it had contracted with Tenant and Owner to
complete Tenant's Work and to assume all of Tenant's and Tenant's agents,
employees and independent contractor's obligations with respect to the same.

      This Guaranty shall be a continuing guaranty, and the liability of
Guarantor hereunder shall in no way be affected, modified, impaired or
diminished by reason of any assignment, renewal, modification or extension of
the Lease or by reason of any modification or waiver of or change in any of the
terms, covenants, conditions or provisions of the Lease by Owner and Tenant or
Tenant's successors or assigns, or by reason of any extension of time that may
be granted by Owner to Tenant or its successors or assigns, or by reason of any
dealings or transactions or matter or thing of any kind or nature occurring
between Owner and Tenant or Tenant's successors or assigns, or by reason of any
bankruptcy, insolvency, reorganization, arrangement, assignment for the benefit
of creditors, receivership or trusteeship affecting Tenant or Tenant's
successors or assigns, whether or not notice thereof is given to Guarantor. The
terms and provisions of this Guaranty shall remain in full force and effect and
be binding on Guarantor and its heirs, distributees, executors, administrators,
and legal representatives unless and until Tenant complies with each and every
one of its obligations under subdivision 2 of Paragraph (e) of Article 42 of the
Lease.

      All of Owner's rights and remedies under the Lease and/or under this
Guaranty are intended to be distinct, separate and cumulative and no such right
or remedy therein or herein mentioned is intended to be in exclusion of or a
waiver of any of the others. This Guaranty and/or any of the provisions hereof
cannot be modified, waived or terminated unless such modification, waiver or
termination is in writing, signed by Owner.

                                      -2-
<PAGE>

Guarantor agrees that whenever at any time or from time to time Guarantor
shall make any payment to Owner or any third party or parties or perform or
fulfill any covenant, term, condition or agreement hereunder on account of the
liability of Guarantor hereunder, Guarantor will notify Owner in the manner set
forth for notices to Owner in the Lease that such payment or performance, as
the case may be, was made for such purpose. No such payment or performance by
Guarantor pursuant to any provision hereof shall entitle Guarantor by
subrogation or otherwise to any of the rights of Owner under the Lease.

      Guarantor agrees that it will, at any time and from time to time, within
five (5) days following written request by Owner and without charge therefor,
execute, acknowledge and deliver to Owner a statement certifying that this
Guaranty is unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as modified and stating
such modification). Guarantor agrees that such certificate may be relied on by
anyone holding or proposing to acquire any interest in the building of which the
premises demised in the Lease form a part from or through Owner or by any
mortgagee or prospective mortgagee of said building or of any interest therein.

      As a further inducement to Owner to make and enter into the Lease and in
consideration thereof, Guarantor covenants and agrees that in any action or
proceeding brought on, under or by virtue of this Guaranty, Guarantor shall and
does hereby waive trial by jury. This Guaranty shall be enforced and construed
in accordance with the internal laws of the State of New York and shall be
binding upon and inure to the benefit of Owner and Guarantor and their
respective heirs, distributees, executors, administrators, legal
representatives, successors and assigns.

Dated:   New York, New York
         As of August __, 1983

                                          --------------------------------------
                                                      Alan Stillman

STATE OF NEW YORK )
                  :   ss.:
COUNTY OF NEW YORK)

      On this    day of October, 1983, before me personally came Alan Stillman,
to me known and known to me to be the individual described in and who executed
the foregoing Guaranty, and he duly acknowledged to me that he executed the
same.

                                          --------------------------------------
                                                      Notary Public

                                      -3-
<PAGE>

                               MEMORANDUM OF LEASE

Name and Address                       Holrod Associates, a New York
of Landlord:                             limited partnership
                                       645 Madison Avenue
                                       New York, New York 10022

Name and Address                       Thursday's Supper Pub, Inc.
of Tenant:                             57 West 58th Street
                                       New York, New York 10019

Date of Lease:                         As of August 31, 1983

Description of Premises:               Portions of the basement, first floor and
                                       second floor of the building (all as are
                                       more particularly described in the Lease
                                       (hereinafter defined)), in the building
                                       commonly known as 57 West 58th Street New
                                       York, New York as more particularly
                                       described on Exhibit A annexed hereto and
                                       forming part hereof.

Memorandum Only:                       This Memorandum of Lease is intended
                                       solely to summarize certain provisions of
                                       that certain lease (the "Lease"), dated
                                       as of August 31, 1983, between the
                                       parties hereto covering premises therein
                                       demised, for filing purposes only in
                                       compliance with the terms and provisions
                                       of Section 291-C of Article 9 of the Real
                                       Property Law of the State of New York.
                                       This Memorandum of Lease is not intended
                                       to and shall not be construed to change,
                                       vary, modify, amend, supplement,
                                       interpret or otherwise alter the Lease or
                                       any of the terms, covenants, conditions
                                       or provisions thereof. In the event of
                                       any inconsistencies between the
                                       provisions of the Lease and this
                                       Memorandum of Lease, the provisions of
                                       the Lease shall be prevail.

Other Provisions:                      Notice is hereby given that the Lease
                                       contains additional terms, covenants,
                                       conditions and provisions not set forth
                                       in this Memorandum of Lease.

      IN WITNESS WHEREOF, the parties have duly executed this Memorandum of
Lease this ___ day of October, 1983.

                                       HOLROD ASSOCIATES

                                       By:______________________________________

                                       THURSDAY'S SUPPER PUB, INC.

                                       By:______________________________________

<PAGE>

                                    EXHIBIT A

Section 5 Block 1274 on the Tax Map of New York County.

ALL that certain lot, piece or parcel of land, situate, lying and, being in the
Borough of Manhattan, City, County and State of New York, bounded and described
as follows:

      BEGINNING at the corner formed by the intersection of the northerly side
      of 58th Street with the easterly side of Avenue of the Americas; running

      Thence easterly along the northerly side of 58th Street, 100 feet;

      Thence northerly parallel with Avenue of the Americas, 100 feet 5 inches
      to the center line of the block;

      Thence westerly along said center line of the block and parallel with 58th
      Street, 100 feet to the easterly side of Avenue of Americas; and

      Thence southerly along the easterly side of Avenue of the Americas 100
      feet 5 inches to the point or place of BEGINNING.

      Excepting and reserving to Seller all Excess Zoning Rights (as defined in
      the Agreement to which this Exhibit A is annexed).

      Said premises being known and by the street numbers 57-59 West 58th Street
      and 1420-1428 Avenue of the Americas, New York, New York.

<PAGE>

STATE OF NEW YORK  )
                   ) ss.:
COUNTY OF NEW YORK )

      On the __ day of October, 1983, before me personally came Alan Stillman,
to me known, who, being by me duly sworn, did depose and say that he resides at
322 East 57th Street, New York, New York; that he is the President of Thursday's
Supper Pub, Inc., the corporation described in and which executed the foregoing
instrument as Tenant; and that he acknowledged that he executed the same by
order of the board of directors of said corporation.

                                          --------------------------------------
                                                      Notary Public

STATE OF NEW YORK  )
                   ) ss.:
COUNTY OF NEW YORK )

      On the ___ day of October, 1983, before me personally came Ronald A.
Nicholson, to me known, who, being by me duly sworn, did depose and say that he
is a general partner of Holrod Associates, the New York limited partnership
described in and which executed the foregoing instrument as Landlord; and that
he had authority to sign the same and acknowledged that he executed the same as
the act and deed of said limited partnership.

                                          --------------------------------------
                                                      Notary Public

<PAGE>

                                       October ___, 1983

Kramer, Levin, Nessen,
  Kamin & Frankel
919 Third Avenue
New York, New York 10022

Gentlemen:

      Reference is made to that certain lease (the "lease") dated May 19, 1976,
between Holrod Associates, as Landlord, and Thursday's Supper Pub, Inc., as
Tenant, respecting space on the first and second floor and in the basement, as
more particularly described in the lease, (the "premises") of the building
commonly known as 57 West 58th Street, New York, New York, as amended, modified,
supplemented and restated by instrument dated as of August 31, 1983 (the
"Restatement") (the lease and the Restatement are hereinafter collectively
referred to as the "Lease") and specifically to paragraph (f) of Article 49 of
the Restatement.

      In connection with paragraph (f) of Article 49 of the Restatement
delivered herewith are the following documents (collectively, the "Escrowed
Documents"):

            1. A Memorandum of Lease in form sufficient for recording (the
"Memorandum");

            2. A New York City Real Property Transfer Tax Return with respect to
the Restatement ("Transfer Tax Return"); and

                                    EXHIBIT D

<PAGE>

Kramer, Levin, Nessen
  Kamin & Frankel
Page Two
October __, 1983

            3. An affidavit with respect to the exemption of the Lease from the
New York State Real Property Transfer Gains Tax ("Gains Tax Return").

      The Escrowed Documents are being deposited in escrow with you to be held
on the following terms and conditions:

      (i) you shall continue to hold the Escrowed Documents in escrow until you
receive written notice from the undersigned that an initial assignment of the
Lease has become or is becoming effective in accordance with the terms and
provisions of Article 49 of the Restatement in connection with the bona fide
sale by Tenant of the restaurant business operated in the premises. Upon receipt
of the aforesaid notice, you are to deliver the Escrowed Documents to Tenant;

      (ii) if not previously released from escrow, you shall destroy the
Escrowed Documents: (a) if you receive written notice from the undersigned that
the Lease has been terminated in accordance with its terms or cancelled by the
mutual agreement of the undersigned; (b) on September 1, 2003 when the term of
this escrow shall expire and come to an end (if not previously terminated) and
your obligations to the undersigned hereunder or otherwise shall be and be
deemed to be fully discharged;

      (iii) in the event of any dispute as to the disposition of the Escrowed
Documents, you may deposit the same in a court of competent jurisdiction;

      (iv) your sole duties hereunder are as indicated herein and upon the
disposition of the Escrowed Documents as herein provided, you shall be deemed to
have performed your duties and shall be automatically discharged from any
further obligation in connection therewith. In no event shall you be entitled to
receive a fee for acting as escrow agent hereunder;

<PAGE>

Kramer, Levin, Nessen
  Kamin & Frankel
Page Three
October __, 1983

      (v) in the performance of your duties hereunder, you shall not incur any
liability except for willful malfeasance and shall not be liable or responsible
for anything done or omitted to be done hereunder in good faith as herein
provided, except for willful malfeasance. You shall be fully protected in
relying upon any notice, certificate or oral communication believed by you to be
genuine and purported to be signed or given by any person or persons purporting
to have authority to act on behalf of any party hereto;

      (vi) you or any successor escrow agent, as the case may be, may resign
your duties and be discharged from all further duties or obligations hereunder
at any time upon giving three days' prior notice to the undersigned. The
undersigned will thereupon jointly designate a successor escrow agent hereunder
within said three-day period to whom the Escrowed Documents shall be delivered.
In default of such a joint designation of a successor escrow agent, you shall
retain the Escrowed Documents as custodian thereof until otherwise directed by
the undersigned, without further liability or responsibility;

      (vii) you shall have the continuing right to represent the Landlord in
connection with the transaction(s) contemplated by this letter and the Lease and
shall also have the right to represent the Landlord in any dispute between the
undersigned with respect to the Escrowed Documents or otherwise;

      (viii) the undersigned jointly and severally agree to forever indemnify
and hold you harmless of, from and against any and all costs, claims, losses,
suits and demands incurred, resulting from or arising in connection with this
letter or the matters or things contemplated hereby or resulting herefrom; and

      (ix) you have executed this letter in your capacity as escrow agent solely
to evidence your agreement to act as escrow agent.

<PAGE>

Kramer, Levin, Nessen
  Kamin & Frankel
Page Four
October __, 1983

      The undersigned acknowledge that at the time the Escrowed Documents are
released from escrow the Transfer Tax Return and/or gains Tax Return may have to
be modified in order to effect recordation of the Memorandum and/or that
additional documentation may be required in order to effect such recordation.
Accordingly, the undersigned hereby agree to execute such affidavits,
governmental forms or other documents as may then be required by the appropriate
governmental authorities to effect recordation of the Memorandum. All costs and
expenses (including, without limitation, attorneys' fees and any and all taxes,
recording fees or imposts of any kind) incurred in connection with the
recordation of the Memorandum shall be borne by Tenant.

      Tenant hereby agrees to forever indemnify and hold Landlord fully harmless
from and against any and all costs, claims, losses, suits, taxes, imposts and
demands incurred, resulting from or arising in connection with this letter, the
Memorandum, the recordation of the Memorandum or the matters or things
contemplated hereby or resulting herefrom.

      All references herein to Landlord or Tenant shall refer to the parties
hereto and their respective successors.

      This Agreement, which shall be construed in accordance with the internal
laws of the State of New York, may not be modified or terminated orally but only
in writing executed by the parties to be bound.

                                        HOLROD ASSOCIATES

                                        By:
                                            -----------------------------------

                                        THURSDAY'S SUPPER CLUB, INC.

                                        By:
                                            -----------------------------------

ACCEPTED AND AGREE TO:

KRAMER, LEVIN, NESSEN, KAMIN
 & FRANKEL.

By:
   -----------------------------------

<PAGE>

                                ACKNOWLEDGEMENTS

Corporate Owner
State of New York,       ss.:
  County of

      On this          day of          , 19    , before me personally came
                                        to be known, who being by me duly sworn,
did depose and say that he resides in

that he is the                            of
the corporation described in and which executed the foregoing instrument, as
OWNER; that he knows the seal of said corporation; that the seal affixed to
said instrument is such corporate seal; that it was so affixed by order of the
Board of Directors of said corporation, and that he signed his name thereto by
like order.

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

Individual Owner
State of New York,       ss.:
  County of

      On this          day of          , 19    , before me personally came
                                        to be known and known to me to be the
individual described in and who, as OWNER, executed the foregoing instrument and
acknowledged to me that            he         executed the same.

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

Corporate Tenant
State of New York,       ss.:
  County of

      On this          day of          , 19    , before me personally came
                                        to me known, who being by me duly sworn,
did depose and say that he resides in

that he is the                            of
the corporation described in and which executed the foregoing instrument, as
TENANT; that he knows the seal of said corporation; that the seal affixed to
said instrument is such corporate seal; that it was so affixed by order of the
Board of Directors of said corporation, and that he signed his name thereto by
like order.

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

Individual Tenant
State of New York,       ss.:
  County of

      On this          day of          , 19    , before me personally came
                                        to be known and known to me to be the
individual described in and who, as TENANT, executed the foregoing instrument
and acknowledged to me that            he         executed the same.

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

                      RULES AND REGULATIONS ATTACHED TO AND
                               MADE A PART OF THIS
                      LEASE IN ACCORDANCE WITH ARTICLE 35.

      1. The sidewalks, entrances, driveways, passages, courts, elevators,
vestibules, stairways, corridors or halls shall not be obstructed or encumbered
by any Tenant or used for any purpose other than for ingress to and egress from
the demised premises and for delivery of merchandise and equipment in a prompt
and efficient manner using elevators and passageways designated for such
delivery by Owner. There shall not be used in any space, or in the public hall
of the building, either by any Tenant or by jobbers or others in the delivery or
receipt of merchandise, any hand trucks, except those equipped with rubber tires
and sideguards.

      2. If the premises are situated on the ground floor of the building,
Tenant thereof shall further, at Tenant's expense, keep the sidewalks and curb
in front of said premises clean and free from ice, snow, etc.

      3. The water and wash closets and plumbing fixtures shall not be used for
any purposes other than those for which they were designed or constructed.

      4. Tenant shall not use, keep or permit to be used or kept any foul or
noxious gas or substance in the demised premises, or permit or suffer the
demised premises to be occupied or used in a manner offensive or objectionable
to Owner or other occupants of building by reason of noise, odors and or
vibrations or interfere in any with other Tenants or those having business
therein.

      5. No sign, advertisement, notice or other letting shall be exhibited,
inscribed, painted or affixed by any Tenant on any part of the outside of the
demised premises or the building or on the inside of the demised premises if the
same is visible from the outside of the premises without the prior written
consent of Owner, except that the name of Tenant may appear on the entrance door
of the premises. In the event of the violation of the foregoing by any Tenant,
Owner may remove same without any liability, and may charge the expense incurred
by such removal to Tenant or Tenants violating this rule. Signs on interior
doors and directory tablet shall be inscribed, painted or affixed for each
Tenant by Owner at the expense of such Tenant and shall be of a size, color and
style acceptable to Owner.

      6. No Tenant shall mark, paint, drill into, or in any way deface any part
of the demised premises or the building of which they form a part. No boring,
cutting or stringing of wires shall be permitted, except with the prior written
consent of Owner, and as Owner may direct. No Tenant shall lay linoleum, or
other similar floor covering, so that the same shall come in direct contact with
the floor of the demised premises, and, if linoleum or other similar floor
covering is desired to be used an interlining of builder's deadening felt shall
be first affixed to the floor, by a paste or other material, soluble in water,
the use of cement or other similar adhesive material being expressly prohibited.

      7. Freight, furniture, business equipment, merchandise and bulky matter of
any description shall be delivered to and removed from the premises only on the
freight elevators and through the service entrances and corridors, and only
during hours and in a manner approved by Owner. Owner reserves the right to
inspect all freight to be brought into the building and to exclude from the
building all freight which violates any of these Rules and Regulations of the
lease of which these Rules and Regulations are a part.

      8. Owner reserves the right to exclude from the building between the hours
of 6 P.M. and 8 A.M. and at all hours on Sundays, and holidays all persons who
do not present a pass to the building signed by Owner. Owner will furnish passes
to persons for whom any Tenant requests same in writing. Each Tenant shall be
responsible for all persons for whom he requests such pass and shall be liable
to Owner for all acts of such person.

      9. Owner shall have the right to prohibit any advertising by any Tenant
which, in Owner's opinion, tends to impair the reputation of Owner or its
desirability as a building for stores or offices, and upon written notice from
Owner, Tenant shall refrain from or discontinue such advertising.

      10. Tenant shall not bring or permit to be brought or kept in or on the
demised premises, any inflammable, combustible, or explosive fluid, material,
chemical or substance, or cause or permit any odors or cooking or other
processes, or any unusual or other objectionable odors to permeate in or emanate
from the demised premises.

      11. Tenant shall not place a load on any floor of the demised premises
exceeding the floor load per square foot area which it was designed to carry and
which is allowed by law. Owner reserves the right to prescribe the weight and
position of all safes, business machines and mechanical equipment. Such
installations shall be placed and maintained by Tenant at Tenant's expense in
setting sufficient in Owner's judgement to absorb and prevent vibration, noise
and annoyance.

                                    GUARANTY

      The undersigned Guarantor guarantees to Owner, Owner's successors and
assigns, the full performance and observance of all the agreements to be
performed and observed by Tenant in the attached Lease, including the "Rules and
Regulations" as therein provided, without requiring any notice to Guarantor of
nonpayment or, nonperformance, or proof, or notice of demand, to hold the
undersigned responsible under this guaranty, all of which the undersigned hereby
expressly waives and expressly agrees that the legality of this agreement and
the agreements of the Guarantor under this agreement shall not be ended, or
changed by reason of the claims to Owner against Tenant of any of the rights or
remedies given to Owner as agreed in the attached Lease. The Guarantor further
agrees that this guaranty shall remain and continue in full force and effect as
to any renewal, change or extension of the Lease. As a further inducement to
Owner to make the Lease Owner and Guarantor agree that in any action or
proceeding brought by either Owner or the Guarantor against the other on any
matters concerning the Lease or of this guaranty that Owner and the undersigned
shall and do waive trial by jury.

Address
Premises
================================================================================

HOLROD ASSOCIATES

                                       TO

THURSDAY'S SUPPER PUB, INC.

================================================================================

                                STANDARD FORM OF

                               [SEAL] STORE [SEAL]
                                      LEASE

                    The Real Estate Board of New York, Inc.

                    (c) Copyright 1979. All rights Reserved.
                  Reproduction in whole or in part prohibited.

================================================================================

Dated                                     19

Rent Per Year

Rent Per Month

Term
From
To

Drawn by                                Checked by
        --------------------------------           -----------------------------

Entered by                              Approved by
        --------------------------------           -----------------------------

================================================================================

<PAGE>

                             SUPPLEMENTAL AGREEMENT
                                       AND
                            FIRST AMENDMENT TO LEASE

            AGREEMENT dated as of May 3, 1993 between HOLROD ASSOCIATES, as
Owner ("Owner"), and MANHATTAN OCEAN CLUB ASSOCIATES, as Tenant ("Tenant").

                                    WITNESS:

            WHEREAS:

            (i) Owner and Tenant are parties to that certain lease (the "Lease")
dated as of August 31, 1983 covering space more particularly described therein,
located in the building at 57 West 58th Street, New York, New York;

            (ii) Pursuant to Article 43 of the Lease, the Fixed Minimum Rent (as
that tern is defined in the Lease) in the Lease reserved is to increase on
January 1, 1994 to the Fair Market Rent (as that term is defined in the Lease);
and

            (iii) Owner and Tenant wish to set forth herein their agreement as
to what the Fair Market Rent and, accordingly, the Fixed Minimum Rent is to be
on January 1, 1994;

            NOW, THEREFORE, in consideration of Ten ($10) Dollars and other good
and valuable consideration, the receipt whereof is hereby acknowledged, Owner
and Tenant hereby agree that:

<PAGE>

            1. The Fixed Minimum Rent of January 1, 1994 shall, notwithstanding
anything set forth in the Lease to the contrary, be $302,800 per annum.

            2. The number "seventy-five (75%) percent" appearing in Article
43(a) (1) (iii) of the Lease is hereby deleted therefrom and the number "one
hundred (100%) percent" shall hereby be deemed inserted in its place and stead.

            3. Tenant and Owner hereby represent and agree that except as
expressly herein modified all of the terms of the Lease remain in full force and
effect.

            4. Tenant and Owner acknowledge that the within lease has been
assigned to Manhattan Ocean Club Associates as of the 1st day of January, 1984.
Owner hereby specifically consents to such assignment.

            IN WITNESS WHEREOF, Owner and Tenant have executed this Supplemental
Agreement and First Amendment to Lease as of the date first set forth above.

                                     OWNER

                                     HOLROD ASSOCIATES

                                     By: /s/ [ILLEGIBLE]
                                         ---------------------------------------
CONSENTED TO:

THURSDAYS' SUPPER PUB, INC.          TENANT: MANHATTAN OCEAN CLUB ASSOCIATES

                                 By: THURSDAYS' SUPPER PUB, INC., General
                                       Partner

By: /s/ [ILLEGIBLE]                  By: /s/ [ILLEGIBLE]
    -------------------------            ---------------------------------------
<PAGE>

                           SECOND AMENDMENT TO LEASE

            AGREEMENT dated as of April 1, 1995 between HOLROD ASSOCIATES, as
Owner ("Owner"), and MANHATTAN OCEAN CLUB ASSOCIATES, successor in interest to
Thursday's Supper Pub, Inc., as Tenant ("Tenant").

                                  WITNESSETH:

            WHEREAS:

            (i) Owner and Tenant are parties to that certain lease (the
"Original Lease") dated as of August 31, 1983 covering space more particularly
described therein, located in the building at 57 West 58th Street, New York, New
York, as amended by a Supplemental Agreement and First Amendment to Lease (the
"First Amendment") dated as of May 3, 1993 (the Original Lease and the First
Amendment are hereinafter sometimes collectively referred to as the "Lease");

            (ii) Tenant has requested that the Lease be amended to extend the
term thereof for an additional ten (10) year period;

            (iii) Owner is willing to grant Tenant the extension it requested
only on the condition, among others, that the Fixed Minimum Rent (as that term
is defined in the Original lease) reserved under the Lease shall, from and after
January 1, 1996 increase by $25,000.00 per annum, it being understood that such
increase shall be in addition to, but not factored into, the calculation of
future increases in Fixed Minimum Rent pursuant to Article 43. (a) (i) of the
Original Lease.

            NOW, THEREFORE, in consideration of Ten ($10) Dollars and other good
and valuable consideration, the receipt whereof is hereby acknowledged, Owner
and Tenant hereby agree that;

            1. The term of the Lease is hereby extended for ten (10) years so
that the expiration date of the term thereof is August 31, 2013. The portion of
the term occurring after August 31, 2003 is hereinafter sometimes referred to as
the "Extension Period". Tenant hereby acknowledges and agrees that
notwithstanding anything to the contrary set forth in the Lease or otherwise,
Tenant has no right to renew the Lease or further extend the term thereof beyond
August 31, 2013.

            2. Notwithstanding anything to the contrary set forth in the Lease
or otherwise, in addition to the Fixed Minimum Rent reserved under the Lease (as
the same may be increased from time to time pursuant to the provisions of
Article 43. (a) (1) of the Original Lease), from and after January 1, 1996 and
continuing

<PAGE>

through and including August 31, 2003 Tenant shall pay to Owner, as a component
of Fixed Minimum Rent that is hereinafter referred to as "Fixed Supplemental
Rent", $25,000.00 per annum, such amount being paid to Owner by Tenant in equal
monthly installments at such times as Fixed Minimum Rent is due and payable
under the Lease. Fixed Supplemental Rent shall not be subject to increase,
pursuant to Article 43. (a) (i) of the Original Lease.

            3. The Lease is hereby amended by adding after Article 64, a new
Article 65 that reads as follows:

                  "A. The Fixed Minimum Rent during the Extension Period shall
      initially equal the fair market rental value (the "FMR") of the demised
      premises (as that term is defined in the Original Lease) but shall be
      increased annually pursuant to Paragraph C of this Article. If, prior to
      June 1, 2003 Owner and Tenant cannot agree on the FMR for the Extension
      Period and execute an agreement in form and content satisfactory to Owner
      confirming the FMR, same shall be determined in accordance with the terms
      and provisions of Paragraph B of this Article.

                  B. In the event that the FMR is to be determined in accordance
      with the provisions of this Paragraph, the following procedure shall be
      Utilized: Tenant shall appoint a disinterested person with at least ten
      (10) years professional service as a licensed real estate broker in the
      State of New York who has been involved in the appraisal and rental of
      retail restaurant space in the Borough of Manhattan for not less than five
      (5) years to serve as an appraiser on its behalf and shall give notice
      thereof to Owner on or before June 1, 2003. Owner shall, within fifteen
      (15) days after receiving said notice appoint a second disinterested
      person having qualifications similar to those required of the appraiser
      appointed by Tenant to serve as appraiser on its behalf and shall give
      written notice thereof to Tenant. If either Owner or Tenant fails or
      neglects to timely appoint an appraiser pursuant to the foregoing, then in
      such event the other party shall select a person to serve as the appraiser
      not so selected by the first party, and upon such selection, such
      appraiser shall be deemed to have been selected by the first party. The
      appraisers thus appointed shall appoint a third disinterested person, who
      shall be a real estate broker licensed as such in the State of New York
      actively engaged in the rental, sale and appraisal of restaurant space in
      the Borough of Manhattan for not less than ten (10) years. If the
      appraisers thus appointed by Owner and Tenant shall fail to appoint such
      third disinterested appraiser (who is amenable to serving as such) within
      fifteen (15) days after

                                      -2-
<PAGE>

      the appointment of two appraisers, then either Owner or Tenant may, by
      application to the president of The Real Estate Board of New York, Inc.
      seek the appointment of such third disinterested person. Upon such
      appointment, such person shall be the third appraiser as if appointed by
      the original two appraisers. Each appraiser shall, after the appointment
      of the third appraiser, render in writing to Owner and Tenant its own
      independent appraisal of what the annual fair market rental value of the
      demised premises would be were the same then ready to be leased and
      dedicated as a first class restaurant free of all liens and encumbrances
      of any kind for the Extension Period together with an affidavit that his
      appraisal is an independently determined bona fide estimate. The sum of
      the amounts specified in each of the three appraisals shall be divided by
      three and the quotient of such division shall be the annual FMR except
      that in no event and under no circumstances shall the FMR be less than the
      Fixed Minimum Rent payable under the Lease for the month of August, 2003
      (considered on an annualized basis). Said quotient shall be binding on
      Owner and Tenant. The cost and expense of each of the appraisers appointed
      (or which should have been appointed) by Owner and Tenant shall be borne
      by Owner and Tenant respectively and the cost and expense of the third
      appraiser shall be shared equally by Owner and Tenant. Owner and Tenant
      agree to sign all documents and to do all other things necessary to submit
      the question of the amount of the FMR to the appraisers and further agree
      to, and hereby do, waive any and all rights they or either of them may at
      any time have to revoke their agreement under this Article. If, for any
      reason whatsoever, the FMR has not been determined by September 1, 2003,
      Tenant shall pay on that day and on the first day of each month thereafter
      until the Fixed Minimum Rent has been determined, on account of the Fixed
      Minimum Rent then due, 105% of the Fixed Minimum Rent payable on August 1,
      2003. Once the Fixed Minimum Rent has been finally determined, Tenant
      shall immediately pay any deficiency to Owner or Owner shall credit any
      overpayment to Tenant.

                  C. In addition to and not in limitation of any other provision
      of this lease, it is expressly understood, acknowledged and agreed that on
      each Adjustment Date (as such term is defined in Article 43(a) (1) of the
      Original Lease) during the Extension Period, the Fixed Minimum Rent
      reserved hereunder shall automatically be increased by an amount equal to
      the product derived by multiplying the Fixed Minimum Rent reserved
      hereunder on the day immediately preceding the Adjustment Date by the
      percentage increase, if any, in the Consumer Price Index (as such term is
      defined in Article 13(a)(2) of the Original Lease) for the month

                                      -3-
<PAGE>

      preceding each such Adjustment Date over the Consumer Price Index for the
      month immediately preceding the preceding Adjustment Date.

                  D. In no event shall the Fixed Minimum Rent, as originally
      provided to be paid under this lease or as thereafter increased pursuant
      to adjustments under this Paragraph or otherwise, be reduced for any
      reason whatsoever. Any delay or failure of Owner in computing or billing
      for the adjustments of Fixed Minimum Rent hereinabove set forth shall not
      constitute a waiver of or in any way impair the continuing obligation of
      Tenant to pay such adjustments hereunder from and after the date the same
      become effective in accordance with the terms of this lease and for the
      period in this lease set forth."

            4. Except as expressly amended hereby, the Lease, as written, shall
remain in full force through and including August 31, 2013. Tenant hereby
represents and warrants to and for the benefit of Owner that the Lease as
amended hereby is in full force and effect without any default by Owner and that
Tenant is in possession of the demised premises and has no claims against Owner
under or in connection with the Lease nor any offsets against the rents payable
thereunder.

            IN WITNESS WHEREOF, Owner and Tenant have executed this Second
Amendment to Lease as of the date first set forth above.

                                     OWNER:

                                     HOLROD ASSOCIATES

                                     By:_______________________________________

                                     TENANT:

                                     MANHATTAN OCEAN CLUB
                                     ASSOCIATES, successor to
                                     Thursday' a Supper Pub., Inc.

                                     By:_______________________________________

CONSENTED TO;
THURSDAY'S SUPPER PUB, INC.

By:________________________________

                                      -4-

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