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                                                                   EXHIBIT 10.17

                           THIRD AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

          THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("Agreement"), dated
as of the 1st day of January, 2003, between MORTON'S RESTAURANT GROUP, INC.
("MRG"), a Delaware corporation, and ALLEN J. BERNSTEIN ("Bernstein"), an
individual.

          WHEREAS, MRG and Bernstein entered into the Second Amended and
Restated Employment Agreement dated as of February 28, 1995, as amended by the
First Amendment dated as of October 1, 1998 and the Second Amendment, dated as
of December 6, 2002 (in the aggregate, the "Second Amended and Restated
Employment Agreement"); and

          WHEREAS, MRG and Bernstein have agreed to amend and restate the Second
Amended and Restated Employment Agreement by this THIRD AMENDED AND RESTATED
EMPLOYMENT AGREEMENT.

          NOW, THEREFORE, in consideration of the mutual covenants and promises
herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

          1.   EMPLOYMENT.

               (a)  MRG hereby continues to employ Bernstein and Bernstein
hereby accepts such continued employment for a term beginning as of January 1,
2003 (the "Commencement Date") and continuing thereafter for a five (5) year
period; provided, that upon the second anniversary of the Commencement Date (the
"Second Anniversary"), the employment term shall continue thereafter such that
at any date following the Second Anniversary, the term of Bernstein's employment
shall be three (3) years (the period before or after the Second Anniversary
shall be referred to as the "Employment Period"), unless in any either case
sooner terminated as hereinafter provided.

               (b)  At any time during the Employment Period, MRG may send a
notice to Bernstein, terminating his employment ("MRG's Notice"). MRG's Notice
shall set forth the date of termination, which shall in no event be earlier than
(x) prior to the Second Anniversary, the number of months equal to the remaining
portion of the Employment Period or (y) on and after the Second Anniversary,
thirty-six (36) months. Following the delivery of MRG's Notice, MRG's
compensation obligation to Bernstein shall be as set forth in Section 7(f).

          2.   COMPENSATION; BENEFITS; EXPENSES; AND BONUS

               (a)  As compensation for the services to be rendered hereunder,
until December 31, 1999, MRG shall pay to Bernstein a base salary (as adjusted
hereafter pursuant to the next sentence hereof, the "Base Salary") at the rate
of $625,000 per annum, payable in equal installments at such times as shall be
agreed upon by MRG and Bernstein, but no less frequently than monthly. The
annual Base Salary for the Employment Year commencing January 1, 2000,

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shall increase at the rate of increase in the Consumer Price Index for Urban
Wage Earners and Clerical Workers, as complied by the U.S. Bureau of Labor
Statistics for the preceding year (the "CPI"). The Base Salary may be increased
at a faster rate than that of the CPI, at the discretion of the Board of
Directors, and depending upon the profitability and growth of MRG.

               (b)  Bernstein shall be eligible to participate in benefit
programs, if any, of MRG which are in effect for its executive personnel from
time to time, including but not limited to profit sharing, pension, insurance,
incentive or other supplemental or special compensation plans or arrangements,
and stock purchase programs, in each case in accordance with the terms of such
program.

               (c)  MRG recognizes that Bernstein, in rendering the services
hereunder, will be required to spend sums of money for the entertainment of
various persons and representatives of companies and organizations with whom MRG
is having, or would like to have business relations. MRG will advance and/or
reimburse reasonable travelling or other out-of-pocket expenses incurred or to
be incurred by Bernstein in rendering the services hereunder in behalf of MRG,
and MRG will advance such funds to Bernstein, or reimburse Bernstein upon
presentation of vouchers or other documents reasonably necessary to verify the
expenditures and sufficient, in form and substance, to satisfy Internal Revenue
Service ("IRS") requirement for any traveling or other expenses.

               (d)  MRG further recognizes the importance and value to MRG of
Bernstein's active membership in the Young Presidents Organization or similar
organization and Bernstein's attendance at its meetings and conferences. MRG
agrees to pay membership dues for Bernstein in the Young Presidents Organization
or similar organization and to pay all other reasonable expenses incurred by
Bernstein to attend meetings and conferences of the Young Presidents
Organization or similar organization upon presentation of vouchers or other
documents as required pursuant to paragraph (c) above.

               (e)  (i)     In addition to the Base Salary, Bernstein shall be
eligible to receive an annual bonus incentive payment ("Bonus"). At the
beginning of each fiscal year, the Board of Directors shall establish a
profitability target on which the Bonus will be based (the "Target"). In its
discretion, the Board of Directors may base the Target on net income, operating
income, or any other basis it considers most appropriate. The Bonus shall be
payable to Bernstein within thirty (30) days of receipt by MRG of the statement
of profits and losses for the preceding fiscal year, on a fully consolidated
basis, from its independent certified public accountant then regularly auditing
the books and records of MRG.

                    (ii)    The amount of the Bonus to be paid shall be based on
the rate by which MRG achieves the Target, on a fully consolidated basis. If MRG
attains less than 50% of the Target, no Bonus shall be payable. If MRG attains a
level of profitability between 50% and 150% of the Target, the bonuses amount
payable to Bernstein shall be 1.2% of his Base Salary for every 1.0% of the
Target achieved between 50% and 150%. If MRG attains 150% or more of the Target,
the Bonus shall be 120% of Bernstein's Base Salary.

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          3.   DUTIES.

               (a)  MRG hereby employs Bernstein on the terms set forth in this
Agreement, and Bernstein hereby accepts such employment. Bernstein shall have
the title of Chairman of the Board of Directors and Chief Executive Officer of
MRG, and perform the general duties that the Board of Directors may from time to
time require of him in that capacity. Such duties will not require his full time
and attention but will require a majority of his business time. Bernstein shall
also serve, if elected or appointed, without additional compensation, as a
director and an officer of MRG and/or as a director and an officer of any and
all restaurant businesses (each, an "Operating Company", or collectively, the
"Operating Companies") wholly or partly owned by MRG. Bernstein shall not be
required to devote his exclusive services to MRG, but shall assist in the
development of the Operating Companies, and the determination and implementation
of policy pertaining to merchandising, production, distribution, promotion,
advertising and sales.

               (b)  In furtherance thereof, subject to the direction of the
Board of Directors of MRG and to the Bylaws of MRG, Bernstein shall have the
authority to (i) hire and dismiss or discharge any or all personnel; (ii)
execute checks drawn on, or withdrawals from the bank accounts of the Operating
Companies and MRG in a manner which is consistent with disbursement controls and
procedures established by the Board of Directors of MRG and the Operating
Companies; (iii) arrange for all necessary insurance; (iv) retain as the
accountants for MRG, such accounting firm as the Board of Directors may
determine, and also retain the services of other Certified Public Accountants to
perform accounting services to MRG, other than accounting services rendered in
connection with an audit or other investigation or review; and (v) take all
other actions consistent with his duties hereunder.

               (c)  In addition, during the term of this Agreement, Bernstein
shall seek out opportunities for MRG to receive fees, commissions or other
compensation through brokering, finding or managing restaurant businesses for
others.

          4.   EXTENT OF SERVICES. Bernstein may spend such time as is
reasonable and appropriate to perform services for, and the duties of a member
of the Board of Directors of, his own or other businesses so long as such
services and duties shall not interfere with Bernstein's performance of his
duties and responsibilities hereunder, in the reasonable judgment of the Board
of Directors.

          5.   WORKING FACILITIES. Bernstein shall be furnished with a private
office, stenographic help and services suitable to his position and adequate for
the performance of his duties. Additionally, MRG recognizes that it is essential
to Bernstein's performance of his duties hereunder, that he be provided with an
automobile and chauffeur. MRG agrees to provide for Bernstein's use, at MRG's
sole cost and expenses, an automobile and chauffeur. The automobile provided to
Bernstein hereunder shall be a luxury type and shall be a new automobile every
two (2) years.

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          6.   NON COMPETITION.

               (a)  Upon the termination of the Employment Period or at such
other times as MRG may request, Bernstein agrees to return to MRG all originals
and copies, whether generated by Bernstein or anyone else, of all documents,
files, lists, forms, contracts, notebooks, rolodexes, keys, credit cards, and
any other material which, during the Employment Period, came into, and continue
to be in, Bernstein's possession and relate to MRG, the Operating Companies,
their respective businesses or their potential acquisitions and investments.

               (b)  Bernstein acknowledges that the provisions of this Section 6
are essential to the continued goodwill and profitability of MRG and the
Operating Companies, and have provided a substantial inducement to MRG to enter
into this Agreement. Bernstein further acknowledges that the application or
operation thereof will not involve a substantial hardship upon his future
livelihood. Should any court determine that the provisions of this Section 6
shall be unenforceable in respect of scope, duration or geographic area, such
court shall be empowered to substitute, to the extent enforceable, provisions
similar hereto or other provisions so as to provide to MRG, to the fullest
extent permitted by applicable law, the benefits intended by this Section 6.

               (c)  The parties hereto intend to and hereby confer jurisdiction
to enforce the covenants contained in this Section 6 upon the courts of any
state within the geographic scope of such covenants. In the event that the
courts of any one or more of such states shall hold such covenants wholly
unenforceable by reason of the breadth of such scope or otherwise, it is the
intention of the parties hereto that such determination not bar or in any way
affect MRG's right to the relief provided in this Agreement in the courts of any
other state within the geographic scope of such covenants, as to breaches of
such covenants in such other respective jurisdictions, the above covenants as
they relate to each state being, for this purpose, severable into diverse and
independent covenants.

          7.   DEATH OR DISABILITY OF BERNSTEIN; OTHER TERMINATION.

               (a)  If Bernstein is unable to perform his duties by reason of
illness or incapacity (a "Disability") for a continuous period of more than six
(6) months, the compensation otherwise payable to him during the continued
period of such illness or incapacity after such six (6) months period shall be
at the annual rate of $226,500.00. Bernstein's full compensation shall be
reinstated upon his return to employment and the discharge of his full duties
hereunder. Notwithstanding anything herein to the contrary, if Bernstein shall
be absent from his employment by reason of illness or incapacity for a
continuous period of more than eighteen (18) months, this Agreement shall
terminate, except Bernstein's legal representatives shall be entitled to receive
the compensation herein provided to the last day of the eighteenth month of such
continuous period.

               (b)  If Bernstein dies during the term of this Agreement, this
Agreement shall terminate, except that Bernstein's legal representatives shall
be entitled to receive the compensation herein provided (including pursuant to
Section 7(f)) only to the last day of the month in which Bernstein's death
occurs.

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               (c)  In addition to MRG's rights set forth in clauses (a) and (b)
above, subject to clause (d) below, this Agreement shall terminate in the event:

                    (i)     A licensed physician shall determine that Bernstein
is a "drug dependent person" (as defined in the New York Mental Hygiene Law or
any successor statute); or

                    (ii)    Bernstein shall be declared to be incompetent
pursuant to the New York Mental Hygiene Law or any successor or similar statute,
or a conservator of his property shall have been appointed pursuant to the New
York Mental Hygiene Law or any successor or similar statute; or

                    (iii)   Bernstein is convicted in a court of law of theft,
embezzlement, fraud or other felony or of any other crime that constitutes a
felony in the jurisdiction involved; or

                    (iv)    Bernstein wilfully breaches a substantial provision
of this Agreement or commits any act not approved by the Board of Directors of
MRG involving any material conflict of interest which substantially adversely
affects MRG or any Operating Company.

               (d)  In the event of a termination pursuant to Section 7(c)(iv)
above, MRG shall deliver to Bernstein a notice setting fourth a reasonably
detailed description of the breached provision or unauthorized conduct
constituting the basis for termination, and this Agreement shall not terminate
unless Bernstein fails to cure same within 20 days after receipt of notice, or,
if Bernstein cannot reasonably be expected to effect a cure within such 20 days
period, if Bernstein fails to commence such cure within such 20 day period and
diligently proceed to effect same within 90 days after the aforesaid notice. In
the event of a termination pursuant to Section 7(c)(i)-(iii) above, MRG shall
deliver to Bernstein a notice stating which of the ground(s) it alleges for
termination of this Agreement, together with a reasonably detailed description
of such ground(s).

               (e)  Bernstein's obligations under this Agreement shall terminate
at Bernstein's option, in the event (i) Bernstein is assigned any duties or
responsibilities inconsistent with his positions as President and Chief
Executive Officer of MRG (including status, offices, titles and reporting
requirements), or (ii) MRG fails to pay any sum of money to Bernstein when the
same becomes due and payable and such failure continues for thirty (30) days
after such sum of money is due; provided, however, if the failure to pay any
such sums of money, in the judgment of the Board of Directors, reasonably
exercised, is due to the fact that MRG has not received all or any substantial
part of the Annual Overhead Fee payable to MRG by each Operating Company,
because such fee is being subordinated to debt interest payments required to be
made by such Operating Company or Companies, Bernstein's obligations hereunder
shall not terminate, unless such non-payment exceeds one-sixth (1/6) of
Bernstein's then Base Salary or continues for more than 60 days from the date
such sum becomes due and payable.

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               (f)  In the event (i) this Agreement terminates pursuant to
Section 7(e) or (ii) MRG has delivered MRG's Notice (the date of such
termination or delivery being the "Measuring Date"), MRG covenants and agrees to
pay and be liable for, on the days originally fixed herein for the payments
thereof, and for a period of (x) prior to the Second Anniversary, the number of
months equal to the remaining portion of the Employment Period or (y) on and
after the Second Anniversary, thirty-six (36) months following the Measuring
Date, Bernstein's compensation (except Bonus shall be due only for the calendar
year during which the Measuring Date occurs, and prorated, on an annualized
basis for that year), reimbursement to Bernstein of the costs and expenses for
the automobile and chauffeur as set forth in Section 5 at the cost thereof as of
the Measuring Date, membership dues and other reasonable expenses for Bernstein
to attend meetings and conferences of the Young President's Organization and
other expenses under the terms of this Agreement as they become due, together
with all reasonable expenses which Bernstein may then or thereafter incur for
legal expenses and all other reasonable costs paid or incurred by Bernstein for
enforcing the payment of such amounts. As an alternative, at the election of
Bernstein made within thirty days of the Measuring Date, provided that such
election shall only be applicable with respect to the delivery of MRG's Notice
until the Second Anniversary, MRG shall pay to him as damages such a sum as at
the time of such termination represents the number of months from (x) or (y)
above, as applicable, multiplied by $67,800, together with all reasonable
expenses which Bernstein may then or thereafter incur for legal expenses and all
other reasonable costs paid or incurred by Bernstein for enforcing payment of
such amounts. Bernstein agrees to use his best efforts to seek alternative
employment as an executive earning a salary reasonably comparable with that
being paid to Bernstein by MRG, upon any such termination. Upon and after
Bernstein's acquisition of such alternative employment, (i) MRG's only
obligation hereunder shall be the payment to Bernstein of $50,600 per month, or
part thereof, until the number of months from (x) or (y) above, as applicable,
following the Measuring Date, if Bernstein has not made the election referred to
in the second preceding sentence, or (ii) if Bernstein has made such election,
he shall repay to MRG an amount equal to the product of $17,366 multiplied by
"X", where X equals the difference between number of months from (x) or (y)
above, as applicable, and the number of months between the Measuring Date and
the date Bernstein commences such new employment.

          8.   INSURANCE.

               (a)  MRG in its discretion at any time after the execution of
this Agreement, may apply for and procure as owner and for its own benefit,
insurance on the life of Bernstein, in such amounts and in such form or forms as
MRG may choose. Bernstein shall have no interest whatsoever in any such policy
or policies, but he shall, at the request of MRG, submit to such medical
examinations, supply such information, and execute such documents as may be
required by the insurance company or companies to whom MRG has applied for such
insurance.

               (b)  MRG shall, for so long as Bernstein is employed by it, pay
for the benefit of Bernstein the premiums on the life insurance policies
insuring the life of Bernstein described on Schedule "B" annexed hereto. Upon
Bernstein's request, MRG shall provide him with proof showing the payment of
such premiums within ten (10) days of their due dates.

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               (c)  MRG shall, for so long as Bernstein is employed by it, pay
for the benefit of Bernstein the premium on the medical policies presently being
provided to executive employees of MRG, or policies substantially similar to
same.

               (d)  Upon the termination of Bernstein's employment, Bernstein
shall have the option, within thirty (30) days thereafter, to acquire MRG's
interest in the policy or policies that may be procured by MRG pursuant to
subparagraph (a) above, to the extent permitted by such policy or policies, upon
payment to MRG of such policy's or policies' then cash surrender value. If
Bernstein exercises such option, MRG will take whatever reasonable steps are
necessary to assign all the rights in the entire policy or policies to
Bernstein, to the extent permitted by such policy or policies, and to deliver
physical possession of the policy or policies to Bernstein. If Bernstein shall
fail to exercise such option, MRG may cancel the policy or policies and take
down their cash surrender value, and neither Bernstein nor any person claiming
through Bernstein shall have any rights whatsoever in any part of the policy or
policies or their values.

               (e)  MRG shall, for so long as Bernstein is employed by it,
procure and maintain a disability insurance policy (the "Disability Policy").
The Disability Policy will provide that during the period commencing after the
sixth month of a Disability of Bernstein and terminating when Bernstein reaches
the age of 65, Bernstein shall be provided with benefits equal to approximately
$325,000 per annum. Any benefits received by Bernstein pursuant to this Section
8(e) shall be in addition to, and not exclusive of, any compensation to be paid
to Bernstein pursuant to Section 7(a) hereof.

          9.   SURVIVAL OF OBLIGATIONS. Notwithstanding the expiration of the
term of this Agreement or any termination of this Agreement, any duty or
obligation which has been incurred and which has not been fully observed,
performed and/or discharged, and any right, unconditional or conditional, which
has been created and has not been fully enjoyed, enforced, and/or satisfied,
shall survive such expiration or termination until such duty or obligation has
been fully observed, performed and/or discharged and such right has been
enforced, enjoyed and/or satisfied.

          10.  REMEDIES, LEGAL FEES AND RIGHT OF OFFSET.

               (a)  The parties recognize that irreparable damage will result in
the event that the provisions of Section 6 hereof shall not be specifically
enforced. If any dispute arises concerning action in violation of any such
provision, the parties hereto agree that an injunction be issued restraining
such action pending determination of such controversy and that no bond or other
security shall be required in connection therewith. If any dispute arises
concerning the right or obligation of any party hereto, such right or obligation
shall be enforceable by a decree of specific performance. Such remedies shall,
however, not be exclusive of and shall be in addition to any other remedies
which the parties may have, including injunctive relief and actions for damages.

               (b)  In the event that any action, suit or other proceeding in
law or in equity is brought to enforce the covenants contained in Section 6
hereof, or to obtain money damages for the breach thereof , and such action
results in the award of a judgment for money

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damages or in the granting of any injunction or restraining order in favor of
MRG, all expenses (including reasonable attorneys' fees) of MRG in such action,
suit or other proceeding shall be paid promptly by Bernstein.

               (c)  MRG shall have the right to set off and apply against any
amount due and payable to Bernstein hereunder any other amount then due and
owing by Bernstein to MRG or any subsidiary or affiliate thereof, whether
arising under this Agreement or otherwise.

          11.  NOTICES. All notices hereunder shall be in writing and shall be
mailed, delivered by hand or telecopied. All such notices shall be deemed to
have been given or delivered three days after the date mailed in any general or
branch United States Post Office enclosed in a registered postpaid envelope
addressed to the address of the respective parties stated below, on the date of
the by hand delivery if delivered, or on the date of receipt, if telecopied. The
notices shall be addressed as follows:

          If to Bernstein:

                               ALLEN J. BERNSTEIN
                       c/o Morton's Restaurant Group, Inc.
                             3333 New Hyde Park Road
                                    Suite 210
                          New Hyde Park, New York 11042

with a copy to:

                    Salamon, Gruber, Newman & Blaymore, P.C.
                               97 Powerhouse Road
                       Roslyn Heights, New York 11577-2016
                          Attention: David Gruber, Esq.

          If to MRG:

                         MORTON'S RESTAURANT GROUP, INC.
                             c/o Castle Harlan, Inc.
                              150 East 58th Street
                                   37th Floor
                            New York, New York 10155
                          Attention: David B. Pittaway

with a copy to:

                            Schulte Roth & Zabel LLP
                                919 Third Avenue
                            New York, New York 10022
                        Attention: Marc Weingarten, Esq.

or to such other address as a party hereto may notify the other pursuant to this
Section 11.

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          12.  WAIVER. Failure to insist upon strict compliance with any of the
terms, covenants or conditions hereof shall not be deemed a waiver of such term,
covenant or condition, nor shall any waiver or relinquishment of any right or
power hereunder at any one time or more times be deemed a waiver or
relinquishment of such right or power at any other time or times.

          13.  SEVERABILITY. The invalidity or unenforceability of any
provisions hereof shall in no way affect the validity or enforceability of any
other provision.

          14.  MODIFICATION. This Agreement cannot be changed, modified or
discharged orally, but only if consented to in writing by both parties.

          15.  ASSIGNMENT. This Agreement is a personal contract and, except as
specifically set forth herein, the rights and interests of Bernstein herein may
not be sold, transferred, assigned, pledged or hypothecated. In the event of any
attempted assignment or transfer of rights hereunder contrary to the provisions
hereof, MRG shall have no further liability for payments hereunder.

          16.  BENEFIT. Except as otherwise herein expressly provided, this
Agreement shall inure to the benefit of and be binding upon MRG, its successors
and assigns, including but not limited to any corporation which may acquire all
or substantially all of MRG's assets and business or with or into which MRG may
be consolidated or merged, and Bernstein, his heirs, executors, administrators
and legal representatives, provided that the obligation of Bernstein hereunder
may not be delegated.

          17.  APPLICABLE LAW. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York applicable to contracts
made and to be performed entirely within such State.

          18.  INDEMNITY. MRG shall indemnify Bernstein and hold him harmless
for any acts or decisions made by him in good faith while performing services
for MRG as an officer of MRG and shall include him under any insurance policy
now in force or hereinafter obtained during the term of this Agreement, covering
the other officers and directors of MRG against lawsuits; provided, however, MRG
shall be under no obligation to obtain any such coverage. To the extent
permitted under the Delaware General Corporation Law, MRG will pay reasonable
all expenses, including attorneys' fee, actually and necessarily incurred by
Bernstein in connection with the defense of such act, suit or proceeding and in
connection with any appeal thereon including the cost of court settlements.

          19.  WITHHOLDING OF TAXES. MRG may withhold from any amounts or
benefits payable under this Agreement all federal, state, city and other taxes
as shall be required pursuant to any law or governmental regulation or ruling.

          20.  CONTRACT HEADINGS. All headings of the Articles of this Agreement
have been inserted for convenience of reference only, are not to be considered a
part of this Agreement, and shall in no way affect the interpretation of any of
the provisions of this Agreement.

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          21.  PRIOR AGREEMENT. Effective upon the Commencement Date, the Second
Amended and Restated Employment Agreement shall terminate and be of no further
force or effect.

          22.  ENTIRE AGREEMENT. The foregoing contains the entire agreement of
the parties.

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          IN WITNESS WHEREOF, the parties have signed this Agreement the day and
year first above written.

                                        /s/ Allen J. Bernstein
                                        -------------------------------------
                                        ALLEN J. BERNSTEIN

Attest:                                 MORTON'S RESTAURANT GROUP, INC.

/s/ Roger J. Drake                      By: /s/ Thomas J. Baldwin
----------------------------------          ---------------------------------
Roger J. Drake                          Name: Thomas J. Baldwin
Vice President of Communications        Title: Executive Vice President
                                               Chief Financial Officer<Page>

                                                                   EXHIBIT 10.18

                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

     AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated as of the 1st day of
January, 2003, between MORTON'S RESTAURANT GROUP, INC., a Delaware corporation
("Morton's" or "Company") and Thomas J. Baldwin ("Baldwin"), an individual.

     WHEREAS, Morton's and Baldwin entered into an Employment Agreement dated as
of March 1, 2001, as amended by an Amendment dated as of December 6, 2002 (the
"Employment Agreement");

     WHEREAS, Morton's and Baldwin have agreed to amend and restate the
Employment Agreement by this Amended And Restated Employment Agreement; and

     WHEREAS, Morton's has employed, and wishes to continue to employ, Baldwin
as Chief Financial Officer and Executive Vice President of Morton's and various
of its affiliates and subsidiaries (in the aggregate, the "Morton's Subs" and
individually a "Morton's Sub").

     NOW, THEREFORE, in consideration of the mutual covenants and promises
herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     1.   EMPLOYMENT.

          (a)  Morton's hereby continues to employ Baldwin and Baldwin hereby
accepts such continued employment for a term beginning as January 1, 2003 (the
"Commencement Date") and continuing thereafter for a three (3) year period;
provided, that upon the first anniversary of the Commencement Date (the "First
Anniversary"), the employment term shall continue thereafter such that at any
date following the First Anniversary, the term of Baldwin's employment shall be
two (2) years (the period before or after the First Anniversary shall be
referred to as the "Employment Period"), unless in any either case sooner
terminated as hereinafter provided.

          (b)  At any time during the Employment Period, Morton's may send a
notice to Baldwin, terminating his employment ("Morton's Notice"). Morton's
Notice shall set forth the date of termination, which shall in no event be
earlier than (x) prior to the First Anniversary, the number of months equal to
the remaining portion of the Employment Period or (y) on and after the First
Anniversary, twenty-four (24) months. Following the delivery of Morton's Notice,
Morton's compensation obligation to Baldwin shall be as set forth in Section
7(f).

                                       -1-
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     2.   COMPENSATION; BENEFITS; EXPENSES; AND BONUS

          (a)  As compensation for the services to be rendered hereunder, until
December 31, 2001, Morton's shall pay to Baldwin a base salary (as adjusted
thereafter pursuant to the next sentence hereof, the "Base Salary") at the rate
of $266,000 per annum, payable in equal installments at such times as shall be
agreed upon by Morton's and Baldwin, but no less frequently than monthly. The
annual Base Salary for the calendar year commencing January 1, 2002 and for each
calendar year thereafter shall increase at no less than the rate of increase in
the Consumer Price Index for Urban Wage Earners and Clerical Workers, as
compiled by the U.S. Bureau of Labor Statistics for the preceding year (the
"CPI"). The Base Salary may be increased at a faster rate than that of the CPI,
at the discretion of the Board of Directors.

          (b)  Baldwin shall be eligible to participate in benefit programs, if
any, of Morton's which are in effect for its executive personnel from time to
time, including but not limited to profit sharing, pension, insurance, incentive
or other supplemental or special compensation plans or arrangements, and stock
purchase programs, in each case in accordance with the terms of such program.

          (c)  Morton's recognizes that Baldwin, in rendering the services
hereunder, will be required to spend sums of money for the entertainment of
various persons and representatives of companies and organizations with whom
Morton's is having, or would like to have business relations, and otherwise in
performance of his duties hereunder. Morton's will advance and/or reimburse
reasonable traveling or other out-of-pocket expenses incurred or to be incurred
by Baldwin in rendering the services hereunder on behalf of Morton's, and
Morton's will advance such funds to Baldwin, or reimburse Baldwin upon
presentation of vouchers or other documents reasonably necessary to verify the
expenditures and sufficient, in form and substance, to satisfy Internal Revenue
Service ("IRS") requirements for any traveling or other expenses.

          (d)  Morton's recognizes Baldwin's need for an automobile for business
purposes and to facilitate the performance of Baldwin's duties hereunder.
Therefore, Morton's shall pay to Baldwin a monthly automobile allowance to be
used by Baldwin towards the purchase or lease of an automobile, (the make and
model of which shall be selected by Baldwin), and all costs related to the
operation and maintenance of such automobile.

          (e)  Morton's may elect to pay annual bonuses. The decision to pay any
bonuses and the actual payment of such bonuses, if any, shall be at the sole
discretion of the Company.

     3.   DUTIES.

          Baldwin shall have the title and perform the duties of Executive
Vice-President and Chief Financial Officer of Morton's. He shall have charge of
such books and papers as properly belong to his office. He shall report to the
Chairman of the Board of Directors. Baldwin shall also serve, if elected or
appointed, to other offices of the Company and as a director of the Company

                                       -2-
<Page>

and/or as a director and an officer of any and all Morton's Subs.

     4.   EXTENT OF SERVICES; VACATIONS.

          (a)  Baldwin shall devote substantially all his full professional
time, energies, skills and attention to the performance of his duties and
responsibilities hereunder. However, the Company acknowledges that Baldwin
presently does and may hereafter serve as a director of and advisor/consultant
to other business entities and nothing contained herein shall prevent him from
so serving provided such service does not conflict or materially interfere with
his obligations to the Company hereunder.

          (b)  Baldwin shall be entitled to take periodic vacations consistent
with past practices and with his duties hereunder.

     5.   WORKING FACILITIES. Baldwin shall be furnished with a private office,
secretarial help and services, consistent with past practices and suitable to
his position and adequate for the performance of his duties.

     6.   CONFIDENTIALITY, ETC.

          Upon the termination of the Employment Period or at such other time as
Morton's may request, Baldwin agrees to return to the Company all originals and
copies, whether generated by Baldwin or anyone else, of all material documents,
files, lists, forms, contracts, notebooks, rolodexes, keys, credit cards, and
any other material which, during the Employment Period, came into, and continue
to be in, Baldwin's possession and relate to Morton's, the Morton's Subs, their
respective businesses or their potential acquisitions and investments.

     7.   DEATH OR DISABILITY OF BALDWIN; OTHER TERMINATION.

          (a)  If Baldwin is unable to perform his duties by reason of illness
or incapacity (a "Disability") for a continuous period of more than six (6)
months, the compensation otherwise payable to him during the continued period of
such illness or incapacity after such six (6) month period shall be at the
annual rate of $88,666.66. Baldwin's full compensation shall be reinstated upon
his return to employment and the discharge of his full duties hereunder.
Notwithstanding anything herein to the contrary, if Baldwin shall be absent from
his employment by reason of illness or incapacity for a continuous period of
more than eighteen (18) months, this Agreement shall terminate, except Baldwin's
legal representatives shall be entitled to receive the compensation herein
provided to the last day of the eighteenth month of such continuous period.

          (b)  If Baldwin dies during the term of this Agreement, this Agreement
shall terminate, except that Baldwin's legal representatives shall be entitled
to receive the compensation herein provided only to the last day of the month in
which Baldwin's death occurs.

                                       -3-
<Page>

          (c)  In addition to Morton's rights set forth in clauses (a) and (b)
above, subject to clause (d) below, this Agreement shall terminate in the event:

               (i)     A licensed physician shall determine that Baldwin is a
"drug dependent person" (as defined in the New York Mental Hygiene Law or any
successor statute); or

               (ii)    Baldwin shall be declared to be incompetent pursuant to
the New York Mental Hygiene Law or any successor or similar statute, or a
conservator of his property shall have been appointed pursuant to the New York
Mental Hygiene Law or any successor or similar statute; or

               (iii)   Baldwin is convicted in a court of law of theft,
embezzlement, fraud or other felony or of any other crime that constitutes a
felony in the jurisdiction involved; or

               (iv)    Baldwin willfully breaches a substantial provision of
this Agreement or commits any act not approved by the Board of Directors of the
Company involving any material conflict of interest which substantially
adversely affects the Company or any Morton's Sub.

          (d)  In the event of a termination pursuant to Section 7(c)(iv) above,
Morton's shall deliver to Baldwin a notice setting forth a reasonably detailed
description of the breached provision or unauthorized conduct constituting the
basis for termination, and this Agreement shall not terminate unless Baldwin
fails to cure same within 20 days after receipt of notice, or, if Baldwin cannot
reasonably be expected to effect a cure within such 20 day period, if Baldwin
fails to commence such cure within such 20 day period and diligently proceed to
effect same within 90 days after the aforesaid notice. In the event of a
termination pursuant to Section 7(c)(i) - (iii) above, Morton's shall deliver to
Baldwin a notice stating which of the ground(s) it alleges for termination of
this Agreement, together with a reasonably detailed description of such
ground(s).

          (e)  Baldwin's obligations under this Agreement shall terminate at
Baldwin's option for any one of the following events ("Good Reason"): (i)
Baldwin is assigned any duties or responsibilities inconsistent with his
position as Executive Vice-President and Chief Financial Officer of Morton's
(including status, offices, titles and reporting requirements), (ii) Morton's
fails to pay any sum of money to Baldwin when the same becomes due and payable
and such failure continues for thirty (30) days after such sum of money is due
or (iii) Morton's moves its corporate headquarters to a location more than fifty
(50) miles from its location on the date hereof and requires Baldwin to work at
such new location without his consent.

          (f)  Subject to clause (g) below, in the event (i) this Agreement
terminates pursuant to Section 7(e) or (ii) Morton's has delivered Morton's
Notice (the date of such termination or delivery being the "Measuring Date"),
Morton's covenants and agrees to pay in a lump sum in cash within ten (10) days
after the Measuring Date as damages the product of (x) prior to the First
Anniversary, a number equal to the number of years and any fractions thereof
remaining in the Employment Period or (y) on and after the First Anniversary,
two (2), multiplied by $346,332. Baldwin agrees to use his best efforts to seek
alternative employment as an executive earning a salary

                                       -4-
<Page>

reasonably comparable with that being paid to Baldwin by Morton's, upon any such
termination. Upon Baldwin's acquisition of such alternative employment, he shall
repay to Morton's an amount equal to the product of $7,392 multiplied by "X",
where X equals the difference between (x) prior to the First Anniversary, a
number equal to the number of months remaining in the Employment Period or (y)
on and after the First Anniversary, twenty-four (24), and the number of months
between the Measuring Date and the date Baldwin commences such new employment.
Morton's shall also pay to Baldwin all reasonable expenses which Baldwin may
then or thereafter incur for legal expenses and all other reasonable costs paid
or incurred by Baldwin for enforcing payment of such amounts.

          (g)  Notwithstanding any provision of this Agreement to the contrary,
to the extent any amounts payable to Baldwin whether pursuant to this Agreement
or under any other employment agreement, employment arrangement or similar plan,
contract or program of severance (collectively, the "Total Severance Benefits"),
would constitute "Parachute Payments" (as defined in Section 280G(b)(2) of the
Internal Revenue Code of 1986, as amended), the Total Severance Benefits payable
to Baldwin shall be reduced to the extent necessary such that the Total
Severance Benefits no longer constitute Parachute Payments. Baldwin may elect,
in his sole discretion, which of the Total Severance Benefits shall be
eliminated or reduced (as long as after such election the Total Severance
Benefits no longer constitute Parachute Payments). For purposes of this Section
7(g), the determination of whether payments to Baldwin would constitute
Parachute Payments shall be made by Baldwin, in good faith.

     8.   INSURANCE.

          (a)  Morton's in its discretion at any time after the execution of
this Agreement, may apply for and procure as owner and for its own benefit,
insurance on the life of Baldwin, in such amounts and in such form or forms as
Morton's may choose. Baldwin shall have no interest whatsoever in any such
policy or policies, but he shall, at the request of Morton's, submit to such
medical examinations, supply such information, and execute such documents as may
be required by the insurance company or companies to whom Morton's has applied
for such insurance.

          (b)  Morton's shall, for so long as Baldwin is employed by it, pay for
the benefit of Baldwin the premium on the medical, dental, life and disability
policies presently being provided to him, or policies substantially similar to
same.

          (c)  Upon the termination of Baldwin's employment, Baldwin shall have
the option, within thirty (30) days thereafter, to acquire Morton's interest in
the policy or policies that may be procured by Morton's pursuant to subparagraph
(a) above, to the extent permitted by such policy or policies, upon payment to
Morton's of such policy's or policies' then cash surrender value. If Baldwin
exercises such option, Morton's will take whatever reasonable steps are
necessary to assign all the rights in the entire policy or policies to Baldwin,
to the extent permitted by such policy or policies, and to deliver physical
possession of the policy or policies to Baldwin. If Baldwin shall fail to
exercise such option, Morton's may cancel the policy or policies and take down
their cash surrender value, and neither Baldwin nor any person claiming through
Baldwin shall have any rights

                                       -5-
<Page>

whatsoever in any part of the policy or policies or their values.

     9.   SURVIVAL OF OBLIGATIONS. Notwithstanding the expiration of the term of
this Agreement or any termination of this Agreement, any duty or obligation
which has been incurred and which has not been fully observed, performed and/or
discharged, and any right, unconditional or conditional, which has been created
and has not been fully enjoyed, enforced, and/or satisfied, shall survive such
expiration or termination until such duty or obligation has been fully observed,
performed and/or discharged and such right has been enforced, enjoyed and/or
satisfied.

     10.  REMEDIES, ETC.

          The parties recognize that irreparable damage may result in the event
that the provisions of Section 6 hereof shall not be specifically enforced. If
any dispute arises concerning action in violation of any such provision, the
parties hereto agree that an injunction be issued restraining such action
pending determination of such controversy and that no bond or other security
shall be required in connection therewith. If any dispute arises concerning the
right or obligation of any party hereto, such right or obligation shall be
enforceable by a decree of specific performance. Such remedies shall, however,
not be exclusive of and shall be in addition to any other remedies which the
parties may have, including injunctive relief and actions for damages.

     11.  NOTICES. All notices hereunder shall be in writing and shall be
mailed, delivered by hand or telecopied. All such notices shall be deemed to
have been given or delivered three days after the date mailed in any general or
branch United States Post Office enclosed in a registered postpaid envelope
addressed to the address of the respective parties stated below, on the date of
the by hand delivery if so delivered, or on the date of receipt, if telecopied.
The notices shall be addressed as follows:

     If to Baldwin:

     Thomas J. Baldwin
     214 Old Norwalk Road
     New Canaan, CT 06840

     with a copy to:

     Salamon, Gruber, Newman & Blaymore, P.C.
     97 Powerhouse Road
     Roslyn Heights, New York 11577-2016
     Attention: David Gruber, Esq.

                                       -6-
<Page>

     If to Morton's:

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

     with a copy to:

     Schulte Roth & Zabel LLP
     919 Third Avenue, 19th Floor
     New York, NY  10022
     Attn:  Marc Weingarten, Esq.

or to such other address as a party hereto may notify the other pursuant to this
Section 11.

     12.  WAIVER. Failure to insist upon strict compliance with any of the
terms, covenants or conditions hereof shall not be deemed a waiver of such term,
covenant or condition, nor shall any waiver or relinquishment of any right or
power hereunder at any one time or more times be deemed a waiver or
relinquishment of such right or power at any other time or times.

     13.  SEVERABILITY. The invalidity or unenforceability of any provisions
hereof shall in no way affect the validity or enforceability of any other
provision.

     14.  MODIFICATION. This Agreement cannot be changed, modified or discharged
orally, but only if consented to in writing by both parties.

     15.  ASSIGNMENT. This Agreement is a personal contract and, except as
specifically set forth herein, the rights and interests of Baldwin herein may
not be sold, transferred, assigned, pledged or hypothecated. In the event of any
attempted assignment or transfer of rights hereunder contrary to the provisions
hereof, Morton's shall have no further liability for payments hereunder.

     16.  BENEFIT. Except as otherwise herein expressly provided, this Agreement
shall inure to the benefit of and be binding upon Morton's, its successors and
assigns, including but not limited to any corporation which may acquire all or
substantially all of Morton's assets and business or with or into which Morton's
may be consolidated or merged, and Baldwin, his heirs, executors, administrators
and legal representatives, provided that the obligation of Baldwin hereunder may
not be delegated.

     17.  APPLICABLE LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed entirely within such State.

     18.  INDEMNITY. Morton's shall indemnify Baldwin and hold him harmless for
any acts or

                                       -7-
<Page>

decisions made by him in good faith while performing services for Morton's as an
officer of Morton's and shall include him under any insurance policy now in
force or hereinafter obtained during the term of this Agreement, covering the
other officers and directors of Morton's against lawsuits; provided, however,
Morton's shall be under no obligation to obtain any such coverage. To the extent
permitted under the Delaware General Corporation Law, Morton's will pay all
reasonable expenses, including attorneys' fees, actually and necessarily
incurred by Baldwin in connection with the defense of such act, suit or
proceeding and in connection with any appeal thereon including the cost of court
settlements.

     19.  WITHHOLDING OF TAXES. Morton's may withhold from any amounts or
benefits payable under this Agreement all federal, state, city and other taxes
as shall be required pursuant to any law or governmental regulation or ruling.

     20.  CONTRACT HEADINGS. All headings of the Articles of this Agreement have
been inserted for convenience of reference only, are not to be considered a part
of this Agreement, and shall in no way affect the interpretation of any of the
provisions of this Agreement.

     21.  ENTIRE AGREEMENT. The foregoing contains the entire agreement of the
parties.

                                       -8-
<Page>

     IN WITNESS WHEREOF, the parties have signed this Agreement as of the day
and year first above written.

                                        /s/ Thomas J. Baldwin
                                        ----------------------------------
                                        Thomas J. Baldwin

Attest:                                 MORTON'S RESTAURANT GROUP, INC.

/s/ Roger J. Drake
--------------------------------        By: /s/ Allen J. Bernstein
Roger J. Drake                              ------------------------------
Vice President of Communications            Name: Allen J. Bernstein
                                            Title: Chairman of the Board
                                                   President
                                                   Chief Executive Officer

                                       -9-

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