<PAGE>   1
                                                                   EXHIBIT 10.16

                          FOURTH AMENDMENT TO SUBLEASE

        This Fourth Amendment to Sublease (the "Fourth Amendment") is made and
entered into as of the 1st day of February, 1996 by and between Hewson-Memphis
Partners, a California general partnership composed of W. Howard Lester, James
A. McMahan, Gary J. Hewson and Robert K. Earley (the "Landlord") and
Williams-Sonoma, Inc., a California corporation (the "Tenant"), and amends that
certain Sublease dated as of the 1st day of August, 1990 (the "Sublease"), that
certain First Amendment to Sublease dated as of the 22nd day of December, 1993
(the "First Amendment"), that certain Second Amendment to Sublease dated as of
September 1, 1994 (the "Second Amendment"), and that certain Third Amendment to
Sublease dated October 24, 1995 (the "Third Amendment") between Landlord and
Tenant (the Sublease, the First Amendment, the Second Amendment, and the Third
Amendment, collectively, the "Existing Sublease"), as follows:

        1. Exhibit C to the Existing Sublease is replaced in its entirety by
Exhibit C attached hereto.

        2. Exhibit C-1 to the Existing Sublease is replaced in its entirety by
Exhibit C-1 attached hereto.

        3. In all other respects, the Existing Sublease shall remain unmodified
and in full force and effect.



<PAGE>   2

        IN WITNESS WHEREOF, the parties hereto have executed this Fourth
Amendment to Sublease as of the day and year first above written.


WILLIAMS-SONOMA, INC., a                  HEWSON-MEMPHIS PARTNERS, a
California corporation                    California General Partnership

By: /s/ DENNIS CHANTLAND                  By: /s/ W. HOWARD LESTER
    -------------------------------           ----------------------------------
    Dennis Chantland,                         W. Howard Lester, General Partner
    Executive Vice President
    and Chief Administrative
    Officer                               By:
                                              ----------------------------------
                                              James A. McMahan, General Partner

                           TENANT

                                          By:
                                              ----------------------------------
                                              Gary J. Hewson, General Partner

                                          By:
                                              ----------------------------------
                                              Robert K. Earley, General Partner

                                                                        LANDLORD





                                      -2-

<PAGE>   3
                                                                     EXHIBIT "C"

WS2Bdgt/RENT8.WQ1

HEWSON-MEMPHIS PARTNERS/WILLIAMS-SONOMA, INC.

<TABLE>
<CAPTION>
    PH                     PH
     1                     II
LSE YR                 LSE YR                    TOTAL
------                 ------                  ---------
<S>      <C>          <C>        <C>          <C>
   1      1,198,233       0              --    1,198,233
   2      1,162,232       0              --    1,162,232
   3      1,307,232       0              --    1,307,232
   4      1,347,072       0              --    1,347,072
   5      1,349,976       1       1,358,241    2,708,217
   6      1,345,812       2       1,237,460    2,583,272
   7      1,377,300       3       1,225,385    2,602,685
   8      1,384,508       4       1,279,411    2,663,919
   9      1,378,608       5       1,323,183    2,701,791
  10      1,370,636       6       1,319,603    2,690,239
  11      1,375,592       7       1,299,221    2,674,813
  12      1,371,920       8       1,303,587    2,675,507
  13      1,375,144       9       1,291,251    2,666,395
  14      1,369,220      10       1,301,660    2,670,880
  15      1,364,672      11       1,287,917    2,652,589
  16       XXX% FMV      12        XXX% FMV    T-B-D
  17        " "          13         " "        T-B-D
  18        " "          14         " "        T-B-D
  19        " "          15         " "        T-B-D
  20        " "          16         " "        T-B-D
  21       XXX% FMV      17        XXX% FMV    T-B-D
  22        " "          18         " "        T-B-D
  23        " "          19         " "        T-B-D
  24        " "          20         " "        T-B-D
  25        " "          21         " "        T-B-D
</TABLE>
<PAGE>   4
<TABLE>
<CAPTION>
                                             TOTAL 1990                                      TOTAL 1994      CUMULATIVE
    DATE        INTEREST      PRINCIPAL     DEBT SERVICE       INTEREST        PRINCIPAL    DEBT SERVICE    DEBT SERVICE
-----------    ----------     ----------    ------------      ----------     ------------   ------------    ------------
<S>            <C>            <C>            <C>              <C>            <C>            <C>             <C>
  01-Feb-96    265,216.00                    265,216.00       261,562.50     2,675,000.00   2,956,562.50    3,221,776.50
  01-May-96    265,216.00                    265,216.00       221,308.13                      221,308.13      486,524.13
  01-Aug-96    265,216.00     185,000.00     450,216.00       221,308.13       225,000.00     446,308.13      896,524.13
  01-Nov-96    260,424.50                    260,424.50       216,240.00                      216,240.00      476,664.50
  01-Feb-97    260,424.50                    260,424.50       216,240.00                      216,240.00      476,664.50
  01-May-97    260,424.50                    260,424.50       216,240.00                      216,240.00      476,664.50
  01-Aug-97    260,424.50     200,000.00     460,424.50       216,240.00       245,000.00     461,240.00      921,664.50
  01-Nov-97    255,244.50                    255,244.50       210,721.38                      210,721.38      465,065.88
  01-Feb-98    255,244.50                    255,244.50       210,721.38                      210,721.38      465,065.88
  01-May-98    255,244.50                    255,244.50       210,721.38                      210,721.38      465,065.88
  01-Aug-98    255,244.50     220,000.00     475,244.50       210,721.38       255,000.00     465,721.38      940,965.88
  01-Nov-98    249,546.50                    249,546.50       204,977.50                      204,977.50      454,524.00
  01-Feb-99    249,546.50                    249,546.50       204,977.50                      204,977.50      454,524.00
  01-May-99    249,546.50                    249,546.50       204,977.50                      204,977.50      454,524.00
  01-Aug-99    249,546.50     250,000.00     499,546.50       204,977.50       280,000.00     484,977.50      984,524.00
  01-Nov-99    243,071.50                    243,071.50       198,670.50                      198,670.50      441,742.00
01-Feb-2000    243,071.50                    243,071.50       198,670.50                      198,670.50      441,742.00
01-May-2000    243,071.50                    243,071.50       198,670.50                      198,670.50      441,742.00
01-Aug-2000    243,071.50     270,000.00     513,071.50       198,670.50       295,000.00     493,670.50    1,006,742.00
01-Nov-2000    236,078.50                    236,078.50       192,025.63                      192,025.63      428,104.13
01-Feb-2001    236,078.50                    236,078.50       192,025.63                      192,025.63      428,104.13
01-May-2001    236,078.50                    236,078.50       192,025.63                      192,025.63      428,104.13
01-Aug-2001    236,078.50     290,000.00     526,078.50       192,025.63       315,000.00     507,025.63    1,033,104.13
01-Nov-2001    228,567.50                    228,567.50       184,930.25                      184,930.25      413,497.75
01-Feb-2002    228,567.50                    228,567.50       184,930.25                      184,930.25      413,497.75
01-Aug-2002    228,567.50     325,000.00     553,567.50       184,930.25       340,000.00     524,930.25    1,078,497.75
01-Nov-2002    220,150.00                    220,150.00       177,271.75                      177,271.75      397,421.75
01-Feb-2003    220,150.00                    220,150.00       177,271.75                      177,271.75      397,421.75
01-May-2003    220,150.00                    220,150.00       177,271.75                      177,271.75      397,421.75
01-Aug-2003    220,150.00     355,000.00     575,150.00       177,271.75       370,000.00     547,271.75    1,122,421.75
01-Nov-2003    210,955.50                    210,955.50       168,937.50                      168,937.50      379,893.00
01-Feb-2004    210,955.50                    210,955.50       168,937.50                      168,937.50      379,893.00
01-May-2004    210,955.50                    210,955.50       168,937.50                      168,937.50      379,893.00
01-Aug-2004    210,955.50     395,000.00     605,955.50       168,937.50       395,000.00     563,937.50    1,169.893.00
01-Nov-2004    200,725.00                    200,725.00       160,040.13                      160,040.13      360,765.13
01-Feb-2005    200,725.00                    200,725.00       160,040.13                      160,040.13      360,765.13
01-May-2005    200,725.00                    200,725.00       160,040.13                      160,040.13      360,765.13
01-Aug-2005    200,725.00     430,000.00     630,725.00       160,040.13       430,000.00     590,040.13    1,220,765.13
01-Nov-2005    189,588.00                    189,588.00       150,354.38                      150,354.38      339,942.38
01-Feb-2006    189,588.00                    189,588.00       150,354.38                      150,354.38      339,942.38
01-May-2006    189,588.00                    189,588.00       150,354.38                      150,354.38      339,942.38
01-Aug-2006    189,588.00     470,000.00     659,588.00       150,354.38       455,000.00     605,354.38    1,264,942,38
01-Nov-2006    177,415.00                    177.415.00       140,105.50                      140,105.50      317,520.50
01-Feb-2007    177,415.00                    177.415.00       140,105.50                      140,105.50      317,520.50
01-May-2007    177,415.00                    177.415.00       140,105.50                      140,105.50      317,520.50
01-Aug-2007    177,415.00     515,000.00     692.415.00       140,105.50       500,000.00     640,105.50    1,332,520.50
01-Nov-2007    164,076.50                    164,076.50       128,843.00                      128,843.00      292,919.50
01-Feb-2008    164,076.50                    164,076.50       128,843.00                      128,843.00      292,919.50
01-May-2008    164,076.50                    164,076.50       128,843.00                      128,843.00      292,919.50
</TABLE>


                                  Exhibit C-1















<PAGE>   5
<TABLE>
<CAPTION>
                                             TOTAL 1990                                     TOTAL 1994      CUMULATIVE
  DATE         INTEREST       PRINCIPAL     DEBT SERVICE    INTEREST       PRINCIPAL       DEBT SERVICE    DEBT SERVICE
-----------  -------------  -------------  -------------  -------------  -------------    -------------   -------------
<S>          <C>            <C>            <C>            <C>            <C>              <C>             <C>
01-Aug-2008     164,076.50     565,000.00     729,076.50     128,843.00     530,000.00       658,843.00    1,387,919.50
01-Nov-2008     149,443.00                    149,443.00     116,904.75                      116,904.75      266,347.75
01-Feb-2009     149,443.00                    149,443.00     116,904.75                      116,904.75      266,347.75
01-May-2009     149,443.00                    149,443.00     116,904.75                      116,904.75      266,347.75
01-Aug-2009     149,443.00     625,000.00     774,443.00     116,904.75     580,000.00       696,904.75    1,471,347.75
01-Nov-2009     133,255.50                    133,255.50     103,840.25                      103,840.25      237,095.75
01-Feb-2010     133,255.50                    133,255.50     103,840.25                      103,840.25      237,095.75
01-May-2010     133,255.50                    133,255.50     103,840.25                      103,840.25      237,095.75
01-Aug-2010     133,255.50     680,000.00     813,255.50     103,840.25     620,000.00       723,840.25    1,537,095.75
01-Nov-2010     115,643.50                    115,643.50      89,874.75                       89,874.75      205,518.25
01-Feb-2011     115,643.50                    115,643.50      89,874.75                       89,874.75      205,518.25
01-May-2011     115,643.50                    115,643.50      89,874.75                       89,874.75      205,518.25
01-Aug-2011     115,643.50     755,000.00     870,643.50      89,874.75     680,000.00       769,874.75    1,640,518.25
01-Nov-2011      96,089.00                     96,089.00      74,557.75                       74,557.75      170,646.75
01-Feb-2012      96,089.00                     96,089.00      74,557.75                       74,557.75      170,646.75
01-May-2012      96,089.00                     96,089.00      74,557.75                       74,557.75      170,646.75
01-Aug-2012      96,089.00     825,000.00     921,089.00      74,557.75     730,000.00       804,557.75    1,725,646.75
01-Nov-2012      74,721.50                     74,721.50      58,114.50                       58,114.50      132,836.00
01-Feb-2013      74,721.50                     74,721.50      58,114.50                       58,114.50      132,836.00
01-May-2013      74,721.50                     74,721.50      58,114.50                       58,114.50      132,836.00
01-Aug-2013      74,721.50     865,000.00     939,721.50      58,114.50     795,000.00       853,114.50    1,792,836.00
01-Nov-2013      52,318.00                     52,318.00      40,207.13                       40,207.13       92,525.13
01-Feb-2014      52,318.00                     52,318.00      40,207.13                       40,207.13       92,525.13
01-May-2014      52,318.00                     52,318.00      40,207.13                       40,207.13       92,525.13
01-Aug-2014      52,318.00     955,000.00   1,007,318.00      40,207.13     855,000.00       895,207.13    1,902,525.13
01-Nov-2014      27,583.50                     27,583.50      20,948.25                       20,948.25       48,531.75
01-Feb-2015      27,583.50                     27,583.50      20,948.25                       20,948.25       48,531.75
01-May-2015      27,583.50                     27,583.50      20,948.25                       20,948.25       48,531.75
01-Aug-2015      27,583.50   1,065,000.00   1,092,583.50      20,948.25      930,000.00      950,948.25    2,043,531.75
             ----------------------------------------------------------------------------------------------------------
             13,935,236.00  10,240,000.00  24,175,236.00  11,274,438.25   12,500,000.00   23,774,438.25   47,949,674.25
</TABLE>












                                       2