Document:

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                                                                   Exhibit 10.45

This Agreement dated as of the 20/th/ day of December, 2002, between DURKIN
WATER REALTY, LLC., having its principal place of business at 97 Old Route 6,
Carmel, NY 10512 and mailing address: PO Box 372, Brewster, NY 10509, as
Landlord, and GEERLINGS and WADE, INC., having its principal place of business
at 960 Turnpike Street, Canton, MA 02021, as Tenant.

Witnesseth: The Landlord hereby leases to the Tenant who hereby rents from the
Landlord, the following described premises, storefront premises on street level,
known and designated as Unit # 13 in the Carmel Business Center located on the
north side of US Route 6, and having an address of 97 Old Route 6, Carmel, New
York ("Demised Premises") for a term of three (3) years to commence from the 1st
day of February 1, 2003 and to end on the 31st day of January, 2006, to be used
and occupied only for an office and business premises of a wine retailer in the
business of selling wine through delivery and in store sales, and for no other
purpose, upon the conditions and covenants following:

1st. That Tenant shall pay to the Landlord the base annual rent as set forth in
the Schedule of Rents attached hereto and made a part hereof and such additional
rent as may be provided for herein, said rent and additional rent to be paid in
monthly installments, in advance, on the first day of each and every month of
the term aforesaid, in such amounts as set forth herein. All such rent and
additional rent as herein set forth shall be paid without offset, deduction
and/or prior demand.

2nd. That the Tenant shall take good care of the premises and shall, at the
Tenant's own cost and expense make all repairs to the interior of the demised
premises, except those of a structural nature and to the exterior thereof, if
caused by the acts or negligence of the Tenant, its servants, agents, employees
and/or business invitees, and at the end or other expiration of the term,
deliver up the demised premises in good order or condition, damages by the
elements and reasonable wear and tear, excepted.

3rd. The Tenant shall promptly execute and comply with all statutes, ordinances,
rules, orders, regulations and requirements of the Federal, State and Local
Governments and of any and all their Departments and Bureaus applicable to said
premises, for the correction, prevention, and abatement of nuisances or other
grievances, in, or connected with said premises during said term; and shall also
promptly comply with and execute all rules, orders and regulations of the New
York Board of Fire Underwriters, or any other similar body, and at Tenant' s own
cost and expense.

4th Tenant, its successors, heirs, executors or administrators shall not assign
this agreement, or underlet or underlease the demised premises, or any part
thereof, or make any alterations on or to the demised premises, without the
Landlord's consent in writing, which consent, the Landlord will not unreasonably
withhold; or occupy, or permit or suffer the same to be occupied for any
business or purpose deemed disreputable or extra-hazardous on account of fire,
under the penalty of damages and forfeiture, and in the event of a breach
thereof, the term herein shall immediately cease and determine at the option of
the Landlord as if it were the expiration of the original term.

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5th Tenant must give Landlord prompt notice of fire, accident, damage or
dangerous or defective condition. If the demised premises cannot be used because
of fire or other casualty, Tenant is not required to pay rent for the time the
demised premises are unusable. If part of the demised premises cannot be used,
Tenant must pay rent and additional rent for the usable part. Landlord shall
have the right to decide which part of the demised premises is reasonably
usable. Landlord need only repair the damaged structural parts of the demised
premises. Landlord is not required to repair or replace any equipment, fixtures,
furnishings or decorations unless originally installed by Landlord. Landlord is
not responsible for delays due to settling insurance claims, obtaining
estimates, labor and supply problems or any other cause not fully under
Landlord's control.

If the fire or other casualty is caused by an act or neglect of the Tenant,
Tenant's servants, agents, employees or business invitees, then all repairs will
be made at Tenant's expense and Tenant must pay the full rent without
adjustment. The cost of the repairs will be additional rent.

The Landlord's obligations to repair or replace the demised premises or any part
thereof shall be governed by the provisions of paragraphs 32nd, 33rd and 34th
hereof.

6th. Tenant agrees that Landlord and Landlord's agents and other representatives
shall have the right to enter into and upon the demised premises upon
twenty-four (24) hours notice, oral or written, to Tenant, or any part thereof,
at all reasonable hours for the purpose of examining the same, or making such
repairs or alterations therein as may be necessary for the safety and
preservation thereof.

7th. Tenant agrees to permit Landlord or Landlord's agents to show the demised
premises to persons wishing to hire or purchase the same; and Tenant further
agrees that on and after the sixth (6th) month next preceding the expiration of
the term hereby granted, Landlord or Landlord's agents shall have the right to
place notices on the front of said demised premises, or on any part thereof,
offering the demised premises "To Let" or "For Sale", and Tenant hereby agrees
to permit the same to remain thereon without hindrance or molestation.

8th. If the demised premises or any part thereof shall be deserted or become
vacant during said term, or if any default be made in the payment of the rent or
additional rent or any part thereof, or if any material default be made in the
performance of any of the covenants herein contained, Landlord or its
representatives may re-enter the demised premises by force, summary proceedings
or otherwise, and remove all persons therefrom, without being liable to
prosecution therefor, and Tenant hereby expressly waives the service of any
notice in writing of the Landlord's intention to re-enter, and Tenant shall pay
at the same time as the rent and additional rent becomes payable under the terms
hereof a sum equivalent to the base rent and additional rent reserved herein,
and the Landlord, shall use its best efforts to rent the demised premises on
behalf of the Tenant at market rates, reserving the right to rent the demised
premises for a longer period of time than fixed in the original lease without
releasing the Tenant from any liability, applying any moneys collected, first to
the expense of resuming or obtaining possession, second to restoring the demised
premises to a rentable condition, and then to the payment of the rent and
additional rent and all other charges due and to grow due to Landlord, any
surplus to be paid to

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the Tenant, who shall remain liable for any deficiency.

9th. Landlord may replace, at the expense of the Tenant less any insurance claim
proceeds, all broken glass in and immediately about the demised premises.
Landlord may insure and keep insured, all plate glass in the demised premises
for and in the name of the Landlord. Bills for the premiums therefor shall be
rendered by the Landlord to the Tenant at such times as Landlord may elect, and
shall be due from and payable by the Tenant, as additional rent, when rendered.

10th. Tenant shall neither encumber nor obstruct the side walk in front of
entrance to or halls and stairs of the demised premises or of the building of
which the demised premises form a part, nor allow the same to be obstructed or
encumbered in any manner.

11th. Intentionally Omitted.

12th. Tenant agrees that the Landlord is exempt from any and all liability for
any damage or injury to persons or property caused by or resulting from
electricity, gas, water, rain, ice or snow, or any leak or flow from or into any
part of the demised premises or of the building or other property of which the
demised premises form a part, or from any damage or injury resulting or arising
from any other cause or happening whatsoever unless said damage or injury be
caused by or be due to the negligence of the Landlord. Tenant agrees to fully
and unconditionally indemnify and hold the Landlord free and fully harmless from
any and all claims for damages defined hereunder in this paragraph.

13th. If material default be made in any of the covenants or conditions of this
Lease on the part of the Tenant to be performed, then it shall be lawful for the
Landlord to enter the demised premises and to repossess the same.

14th This Lease shall not be a lien against the demised premises or against the
premises of which the demised premises form a part in respect to any mortgages
that are now on or that hereafter may be placed against the said premises, and
that the recording of such mortgage or mortgages shall have preference and
precedence and be superior and prior in lien to this Lease, irrespective of the
date of recording and the Tenant agrees to execute without cost, on demand, any
such instrument which may be deemed reasonably necessary or desirable to further
effect the subordination of this Lease to any such mortgage or mortgages, and a
refusal to execute such instrument shall entitle the Landlord, or the Landlord's
assigns and legal representatives to the option of canceling this Lease without
incurring any expense or damage and the term hereby granted is expressly limited
accordingly.

15th. The Tenant has this day deposited with the Landlord the sum of $1,382.58
dollars as security for the full and faithful performance by the Tenant of all
of the terms, covenants and conditions of this Lease upon the Tenant's part to
be performed, which said sum shall be returned to the Tenant, without interest
thereon, withing 30 days after the time fixed as the expiration of the term
here, provided the Tenant has fully and faithfully carried out all of the said
terms, covenants and conditions on Tenant's part to be performed. In the event
of a bona fide sale, subject to this Lease, the Landlord shall have the right to
transfer the security to the vendee for

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the benefit of the Tenant and the Landlord shall be considered released from all
liability for the return of such security; and the Tenant agrees to look to the
new Landlord solely for the return of the said security, and it is agreed that
this shall apply to every transfer or assignment made of the security to a new
Landlord.

16th. The security deposited under this Lease shall not be mortgaged, assigned
or encumbered by the Tenant without the written consent of the Landlord.

17th. It is expressly understood and agreed that in case the demised premises
shall be deserted or vacated, or if default be made in the payment of the rent,
additional rent or any part thereof as herein specified, or if, without the
consent of the Landlord, the Tenant shall sell, assign or mortgage this Lease or
if default be made in the performance of any of the material covenants and
agreements in this Lease contained on the part of the Tenant to be kept and
performed, or if the Tenant shall fail to comply with any of the statutes
ordinances, rules, orders regulations and requirements of the Federal, State or
Local Governments or of any and all of their Departments and Bureaus, applicable
to said demised premises, or if the Tenant shall file or there be filed against
the Tenant a petition in bankruptcy or arrangement, or Tenant be adjudicated a
bankrupt or make an assignment for the benefit of creditors or take advantage of
any insolvency act, the Landlord may, if the Landlord so elects, at any time
thereafter terminate this Lease and the term hereof, on giving the Tenant thirty
(30) days' notice in writing of the Landlord's intentions to do, and this Lease
and the term hereof shall expire and come to an end on the date fixed in such
notice as if the said date were the date originally fixed in this Lease for the
expiration hereof. Such notice may be given by overnight or registered mail
addressed to the Tenant addressed to HUIB GEERLINGS, GEERLINGS and WADE, INC.,
960 Turnpike Street, Canton , MA 02021. The Tenant shall be given five (5)
business days after written notice to cure any of these defaults and prevent
termination of the Lease by the Landlord.

18th. Intentionally Omitted.

19th. Intentionally Omitted.

20th. The failure of the Landlord to insist upon a strict performance of any of
the terms, conditions and covenants herein, shall not be deemed a waiver of any
right or remedies that the Landlord may have, and shall not be deemed a waiver
of any subsequent breach or default in the terms, covenants and conditions
herein contained. This Lease may not be changed, modified, discharged or
terminated orally.

21st. Provided the Tenant is not in default in the payment of the rent,
additional rent or in violation of the terms covenants and conditions of this
Lease on its part to be performed, the Landlord does covenant that the Tenant
shall and may peacefully and quietly have hold and enjoy the demised premises
for the term aforesaid.

22nd. If after default in the payment of rent, additional rent or part thereof
as herein provided, or upon any material violation of any other provision of
this Lease, or upon the expiration of the

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term of this Lease, the Tenant moves out or is dispossessed and fails to remove
any trade fixtures or other property prior to such said default, removal,
expiration of the term of this Lease, or prior to the issuance of the final
order or execution of the warrant of possession, then and in that event, the
said fixtures and property shall be deemed abandoned by the Tenant and shall be
come the property of the Landlord.

23rd. In the event that the relation of the Landlord and Tenant may cease or
terminate by reason of the re-entry of the Landlord under the terms and
covenants contained in this Lease or by the ejectment of the Tenant by summary
proceedings or otherwise, or after the abandonment of the demised premises by
the Tenant, it is hereby agreed that the Tenant shall remain liable and shall
pay in monthly payment the rent, additional rent and any other charge herein
provided for which accrues subsequent to the re-entry by the Landlord, and the
Tenant expressly agrees to pay as damages for the breach of the covenants herein
contained, the difference between the aggregate of the rent, additional rent and
other charges herein provided, and the rent collected and received, if any, by
the Landlord during the remainder of the unexpired term, such difference or
deficiency between the aggregate of the said rent, additional rent and other
charges herein provided and the rent collected, if any, shall become due and
payable in monthly payments, during the remainder of the unexpired term, as the
amounts of such difference or deficiency shall from time to time be ascertained;
and it is mutually agreed between the Landlord and the Tenant that the
respective parties hereto shall and hereby do waive trial by jury in any action,
proceeding or counterclaim brought by either of the parties against the other on
any matters whatsoever arising out of or in any way connected with this Lease,
the Tenant's use or occupancy of the demised premises and/or any claim of injury
or damage. The Tenant expressly waives the right to raise any counterclaims
against the Landlord in any summary proceeding commenced by the Landlord against
the Tenant for the non-payment of rent or additional rent.

24th. Intentionally Omitted.

25th. This lease and the obligation of the Tenant to pay rent hereunder and
perform all of the other covenants and agreements hereunder on the part of the
Tenant to be performed shall in no way be affected, altered, or excused because
the Landlord is unable 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 repairs, additions, alterations or decorations or is unable to supply
or is delayed in supplying any equipment or fixtures if Landlord is prevented or
delayed from doing so by reason of governmental preemption in connection with a
national emergency, or in connection with any rule, order or regulation of any
department or subdivision thereof of any governmental agency or by reason of the
condition of supply and demand which have been or are affected by war or other
emergency, or by reason of an "Act of God".

26th. No diminution or abatement of rent, additional rent or other charges as
herein provided, shall be claimed or allowed for inconvenience or discomfort
arising from the making of repairs or improvements to the building of which the
demised premises form a part or to the property surrounding the same as long as
the Tenant can use demised premises for its intended use. In respect to the
various "services," if any, herein expressly or impliedly agreed to be furnished
by the Landlord to the Tenant, it is agreed that there shall be no diminution or
abatement of the rent,

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additional rent or such other charge as herein provided for interruption or
curtailment of such "service." No such interruption or curtailment of such
"services" shall be deemed a constructive eviction. The Landlord shall not be
required to furnish, and the Tenant shall not be entitled to receive, any of
such "services" during any period wherein the Tenant shall be in default in
respect to the payment of rent, additional rent or such other charges as herein
provided, or any part or portion thereof.

27th. Landlord shall not be liable for the failure to give possession of the
demised premises to the Tenant upon the commencement date of the term hereof by
reason of the fact that the demised premises are not ready for occupancy or
because a prior Tenant or any other person is wrongfully holding over or in
wrongful possession, or for any other reason. The base rent, additional rent and
such other charges as herein provided shall not commence until possession is
given or is available, but the term herein shall not be extended thereby.

28th. The Landlord agrees to keep the building of which the demised premises
form a part, during the entire term of this lease and any renewal thereof,
insured to the full insurable value of said building, against loss or damage by
fire or other related casualty. All payments on account of any loss shall be
paid to the Landlord and be applied in accordance with the provisions contained
in paragraph 33rd hereof. As further consideration for the granting of this
lease, the Tenant covenants and agrees to pay to the Landlord, as additional
rent and in addition to all other rents, during the demised term and any renewal
thereof, SIX AND FIVE HUNDRED THIRTY THOUSANDS (6.530%) percent of the basic
insurance premium applicable to the entire building of which the demised
premises form a part. In addition thereto, if by reason of the use of the
demised premises by the Tenant, the rates for insurance against loss by fire or
other related casualty are increased as compared with the basic insurance
premium, the Tenant agrees to pay as additional rent ONE HUNDRED (100%) percent
of any excess premiums caused thereby, such additional rent to become due
immediately upon effecting the insurance by the Landlord and payable with the
next succeeding installment of rent.

29th. The Tenant covenants to provide and keep in force during the term of this
lease, for the benefit of the Landlord, general liability policies of insurance
in standard forms, naming and protecting the Landlord against any liability
whatsoever, occasioned by accident or disaster on or immediately about the
demised premises or any appurtenances thereto. Such policies are to be written
by good and solvent insurance companies rated no less than "A" by A. M. Best &
Co. or any similar rating organization and satisfactory to the Landlord in the
single limit amount of $1.0 million for each accident and $500,000.00 in respect
to damages in personal property and an umbrella amount of $10 million. Copies of
such policies shall be delivered to the Landlord, prior to the time that the
tenant shall take possession of the demised premises.

The policies herein provided for shall contain the following endorsements;

a) That such policies may not be canceled or amended with respect to the
Landlord or any of its designees, except upon thirty (30) days prior written
notice to the Landlord or such designee sent by certified or registered mail;

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b) That the Tenant shall be solely responsible for the payment of all premiums
under such policies and that the Landlord or its designee shall have no
obligation for the payment thereof;

c) That in the event of payment of any loss covered by such policies, the loss
occasioned by the Landlord shall be paid first by the insurance company; and

d) An express waiver of any right of subrogation by the insurance company
against the Landlord. Tenant hereby expressly waiving any such right of
subrogation for any reason or occurrence whatsoever.

30th. a) The Landlord covenants and agrees that it will make prompt and timely
payment of any and all real estate taxes or assessments levied against the
demised premises, including water, sewer, fire and ambulance district charges,
except that Landlord may withhold such payments and thereafter take such steps
or proceedings as it may deem advisable or necessary to contest taxes or
assessments against the property. As further consideration for the granting of
this lease, the Tenant covenants that it will during the demised term or any
renewal thereof, pay to the Landlord as additional rent and in addition to all
other rents or charges above specified, SIX AND FIVE HUNDRED THIRTY THOUSANDS
(6.530%) percent of all real estate taxes and assessments, general and special,
ordinary and extraordinary, by virtue of or under any present and future law or
requirement of any governmental authority, and all municipal and other
governmental charges which are or may thereafter be or become a lien on the
demised premises, which may become due or payable or which may be levied,
assessed or imposed at any time after the Tenant shall take possession of the
demised premises and until the expiration of the term or any renewal thereof.

b) Upon receipt of each paid bill or copy of such paid bill for real estate
taxes assessed against the demised premises, the Landlord shall advise Tenant of
the amount thereof payable by Tenant and Tenant shall pay said amount to
Landlord upon demand. Landlord shall provide copies of the invoices upon request
by Tenant. If the term of this lease shall terminate at a time other than the
last day of a lease year, except in the case of a termination pursuant to any
provisions of this lease, a proper apportionment shall be made.

c) Permission is granted to the Tenant herein to institute any action or
proceeding on its part to determine the correctness of the assessment levied
against the premises of which the demised premises are a part at its sole cost
and expense without any indemnification therefor by the Landlord.

31st. Landlord shall operate, manage, equip, police, light, repair and maintain
the common areas of the building of which the demised premises form a part for
their intended purposes in such a manner as Landlord shall, it its sole
discretion, deem appropriate, and may from time to time change the size,
location, nature and use of any common area, and make installations therein and
move and remove the same. The Tenant shall pay to Landlord, as additional rent
SIX AND FIVE HUNDRED THIRTY THOUSANDS (6.530%) percent of all costs and expenses
of every kind and nature as may be paid or incurred by Landlord during the term
of this lease

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including, but not limited to, appropriate and reasonable reserves in operating,
managing, equipping, cleaning, lighting, repairing, replacing, and maintaining
the common areas, parking areas, common facilities and related services,
including the affording of protection against fire; snow plowing, sanding,
lighting and striping the parking areas; the costs and expenses of planting,
replanting and replacing flowers and landscaping; water and sewer charges,
worker's compensation insurance; wages, unemployment taxes; social security
taxes; fees for required licenses and permits; supplies for the operation and
maintenance of the common areas; reasonable depreciation of equipment used in
the operation, repair and maintenance of the common areas and common facilities
and related services, and administrative costs equal to fifteen (15%) of the
total costs paid or incurred by Landlord, all as determined in accordance with
generally accepted accounting principals and allocated to any particular lease
year on the accrual method of accounting, but there shall be excluded therefrom
depreciation of the original cost of constructing, erecting and installing the
building of which the demised premises form a part, the common areas, the common
facilities and related services.

32nd. Wherever it is provided herein that the Tenant shall pay as additional
rent its proportionate cost of items payable by the Landlord, the annual charge
therefor payable by the Tenant shall be payable in monthly installments on the
first day of each calendar month of the demised term, in advance, in an amount,
for the first lease year of the demised term, as estimated by the Landlord and
for each subsequent year, based upon the actual cost thereof as paid by the
Landlord during the prior year. Within sixty (60) days after the Landlord shall
receive an actual bill or statement for each of the items payable by the Tenant
to the Landlord, and with respect to the Common Charges provided for in Article
31st hereof, no later than March 15 of any year during the demised term, the
Landlord shall furnish to the Tenant a copy thereof, and thereupon there shall
be an adjustment between the Landlord and the Tenant. For the purposes of the
first year of the term herein demised, the Tenant's share of the basic insurance
premium as provided in paragraph 28th herein is estimated to be $588.00; the
Tenant's share of the basic real estate taxes and sewer charges as provided in
paragraph 30th herein, in the aggregate, are herein estimated to be $3,476.00
and the Tenant's share of the basic common charges as provided in paragraph 31st
herein, are estimated to be $980.00 for a total of $5,044.00 ($420.33 per
month).

33rd. If the demised premises and/or the building in which they are located
should be damaged or destroyed during the term hereof by any casualty insurable
under the standard fire and extended coverage insurance policies, the Landlord
shall, subject to any unavoidable delay, repair and/or rebuild the same
substantially to the condition in which the same were immediately prior to such
damage or destruction, unless the Landlord shall elect not to rebuild as
hereinafter provided in paragraphs 34th and 35th in this lease. The Landlord's
obligation under this paragraph shall be limited to the lesser of either (a) the
scope of the work to be done by the Landlord in order to restore the premises
and/or buildings to the condition aforesaid, or (b) the proceeds of any such
insurance policy if the Landlord keeps the building and the demised premises
insured against loss or damage by such fire and extended coverage insurance to
the extent of at least eighty (80%) percent of the insurable value of the
building if reasonably obtainable from responsible insurance companies licensed
to do business in the state where the demised premises is located.

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34th. If the demised premises should be damaged or destroyed to the extent of
fifty (50%) percent or more of the then monetary value thereof, by any cause, or
should be damaged or destroyed as a result of a risk which is not covered by the
fire and extended coverage insurance then carried by the Landlord thereon, then
and in any of said events, the Landlord may either terminate this lease or elect
to repair or restore the damage or destruction to the demised premises, in which
latter event the Landlord shall repair and/or rebuild the same as provided in
paragraph 33rd of this lease. If such destruction or damage occurs and this
lease is not so terminated by the Landlord, this lease shall remain in full
force and effect, and the parties waive the provisions of any law to the
contrary. The Landlord's obligation under this paragraph shall in no event
exceed the scope of the work to be done by the Landlord in the original
construction of said building and the demised premises. If the demised premise
is not usable for Tenant's intended use for more than sixty (60) days after
damage occurs, then Landlord shall suspend the collection of rent or additional
rent until the Tenant can use the demised premises again. If the Landlord does
not rebuild the demised premises within six (6) months of damage, then this
lease shall be deemed terminated as of the date of the happening of the damage
or destruction, and the rent shall be ratably apportioned and any prepaid
minimum rent refunded.

35th. If, during the demised term of this lease or of any renewal term, the
demised premises are so damaged or destroyed so that Landlord determines not to
rebuild the same, Landlord shall not be obliged to restore the demised premises
and, in such event, any notice given to the Tenant not later than sixty (60)
days after such damage or destruction, this lease shall be deemed terminated as
of the date of the happening of the damage or destruction, and the rent shall be
ratably apportioned and any prepaid minimum rent refunded.

36th. a) If more than twenty (20%) percent of the area of the demised premises
shall be taken under power of eminent domain, the Landlord or Tenant, may, by
written notice to the other, terminate this lease, such termination to be
effective on the date set forth in said notice.

b) If this lease is terminated as provided in this paragraph, the rent shall be
paid up to the day that possession is so taken by the public authority and the
Landlord shall make an equitable refund of any rent and additional rent paid by
the Tenant in advance and not yet earned.

c) Each party agrees to execute and deliver to the other all instruments
necessary or desirable in connection with the provisions hereof.

d) Notwithstanding anything herein contained, permission is granted to the
Tenant to prosecute its own claim for damages arising by reason of said
condemnation proceedings.

37th. a) If any mechanic's or other liens or order for the payments of money or
any notice of intention to file a lien shall be filed against the demised
premises, or the building or improvement of which said premises form a part, by
reason of or arising out of any labor or material furnished or alleged to have
been furnished or to be furnished to or for the demised premises or any occupant
thereof; at the instance and request of the Tenant, its agents, servants and/or
employees, or for or by reason of any change, alteration or addition or the cost
or expense thereof, or any contract relating thereto, or against the interest of
the Landlord, the Tenant shall cause the same

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to be canceled and discharged of record by bond or otherwise as allowed by law
at the expense of the Tenant within five (5) business days after the filing
thereof, and the Tenant shall also defend on behalf of Landlord, at Tenant's
sole cost and expense, any action, suit or proceeding which may be brought
thereon or for the enforcement of such lien, liens or orders, and Tenant will
pay any damages and satisfy and discharge any judgment entered thereon and save
harmless Landlord from any claim or damage resulting therefrom.

b) Nothing herein contained shall be construed as a consent on the part of the
Landlord to subject the estate of the Landlord to liability under the applicable
Mechanic's Lien Law, it being expressly understood that the Landlord's estate
shall not be subject to such liability.

38th. If any term, covenant or condition of this lease or the application
thereof to any person or circumstance shall, to any extent, be invalid or
unenforceable, the remainder of this lease, or the application of such term,
covenant or condition to persons or circumstances other than those as to which
it is held invalid or unenforceable, shall not be affected thereby and each
term, covenant and condition of this lease shall be valid and be enforced to the
fullest extent permitted by law.

39th. The Tenant covenants and agrees that it will maintain for Tenant's use
only covered receptacles for garbage and other refuse and will cause the said
garbage and other refuse to be removed at its sole cost and expense.

40th. Notwithstanding anything herein contained in paragraph 3rd to the
contrary, the Landlord represents to its knowledge that there are no violations
against the said building filed either by the Department of Labor of the State
of New York and/or the Building Department of the Town of Carmel, County of
Putnam. The Landlord further agrees that in the event there are any pre-existing
violations against the said building by either of the said municipal departments
then the Landlord agrees to remove the said violations. Nothing herein, however,
is intended to require the Landlord to remove any violations occasioned by the
use and occupancy of the demised premises by the Tenant herein named.

41st. The use of "reasonable hours" in paragraph 6/th/ of this lease is intended
to mean those hours when the premises herein demised are open for business by
the Tenant.

42nd. Wherever herein there is a requirement upon the Tenant to correct any
violations, it is understood and agreed between the parties hereto that such
requirement shall be deemed to be a requirement wherein such violation has been
caused by the Tenant, its agents or servants, either by omission or commission.

43rd. Intentionally Omitted

44th. Non-exclusive permission is granted to the Tenant, its agents, servants,
employees and business invitees to use the parking area surrounding the building
of which the demised premises forms a part, jointly with all of the other
Tenants of the building, for the purpose of parking motor vehicles in connection
with the business to be operated by the Tenant, provided that none of the
parking of the said motor vehicles shall be in violation of the Zoning
Ordinances of the

<PAGE>

Town of Carmel, County of Putnam and State of New York, the
Vehicle and Traffic Law of the State of New York, nor shall it interfere with
parking of motor vehicles by the other Tenants of the building of which the
demised premises form a part, their agents, servants, employees and invitees.

45th. a) Landlord agrees to provide and maintain the necessary mains and
conduits in order that water, sewer, gas (if any) and electricity may be
furnished to the demised premises. The Landlord shall not be required to furnish
to the Tenant any gas, heat, electricity, light, power, air conditioning,
telephone or any other facilities or services of any kind whatsoever and the
Tenant shall pay for and indemnify and hold harmless the Landlord against any
liability on account of charges for water, gas, heat, light, power, air
conditioning, telephone or other communication, service or other utility used,
rendered or supplied to, upon or in connection with the demised premises.
Landlord shall not be liable in the event of any interruption in the supply of
any such utilities to the demised premises. The Tenant agrees that it will not
install, without the consent of the Landlord in writing, any equipment which
will exceed the capacity of the utility lines leading into the demised premises
and that if any equipment so installed or to be installed shall require
additional utility facilities to be brought into the premises, the same shall be
installed at Tenant's expense in accordance with the plans and specifications to
be approved in writing by the Landlord. The Landlord agrees to furnish to the
Tenant cold water for domestic use only.

b) The sole obligation of the Landlord herein shall be to furnish the premises
"AS IS" subject to the representations on the Specifications Sheet attached
hereto.

c) In the event there shall be installed by the Landlord at the demised premises
heating, ventilating, air conditioning and/or hot water equipment servicing the
demised premises only, all of which is herein collectively called "equipment",
then the Tenant, during the entire term hereof or any renewals thereof, shall
maintain, keep in good order and repair and replace, if required, at its own
cost and expense, such equipment installed in the demised premises and at the
expiration of said term, return the same to the Landlord in good order and
repair, ordinary wear and tear and natural deterioration due to the elements,
excepted. In furtherance of the Tenant's obligation of repair as herein
provided, the Tenant shall obtain and maintain during the entire term of this
lease and any renewals or extensions thereof, maintenance and service agreements
on each of the items of equipment located at the demised premises, copies of
which shall be filed with the Landlord.

46th. The Landlord represents that the water and sewer services are in good
working order.

47th. a) If the Tenant refuses or neglects to repair the demised premises
properly as required hereunder and to the reasonable satisfaction of Landlord as
soon as reasonably possible after written demand, Landlord may make such
repairs. If the Tenant refuses or neglects to perform any work required to be
performed by Tenant in accordance with any of the provisions of this lease, the
Landlord shall have the right (but shall not be obligated) to perform by its own
contractors or sub-contractors on behalf of and for the account of the Tenant,
any of Tenant's work which the Landlord determines should be so performed. In
such event, such work shall be paid for by Tenant promptly upon receipt of a
bill therefor stating the cost of such repair to the Landlord, plus fifteen
(15%) percent of such cost for overhead and supervision. The amount due

<PAGE>

to Landlord shall bear interest at the rate of prime plus one (1%) percent the
from date of completion of such work or repairs by the Landlord, and shall be
deemed to be additional rent hereunder.

b) In the event the Tenant shall notify the Landlord that there are items to be
repaired by the Landlord as required hereunder, said notification shall be in
writing addressed to the Landlord and mailed certified mail, return receipt
requested, specifying in detail the item(s) to be repaired. If the Landlord
fails or refuses to correct or repair the same within fifteen (15) business days
after receipt, the Tenant shall have the same rights and remedies of the
Landlord as herein above specifically set forth in the immediately preceding
sub-paragraph of this paragraph 47th. Notwithstanding the foregoing, the
Landlord shall have the right to dispute the said item of repair by mailing a
notice to the Tenant to such effect by certified mail, return receipt requested,
within such fifteen (15) business day period and upon receipt of such notice
disputing the repair, the said Tenant shall not have the right to perform the
Landlord's repair until such time as the dispute is resolved.

48th. Wherever herein stated there is reference to a termination of this lease,
which termination shall be occasioned by any act other than a breach of any of
the terms, covenants and conditions of this lease, and/or event requiring an
apportionment of rent, it is understood and agreed that the security herein
deposited shall be refunded to the Tenant in accordance with provision 15th of
this lease.

49th. The term Tenant as used herein, shall mean the Tenant, its agents,
servants, employees.

50th. Any sign to be installed upon the subject premises shall be furnished and
installed upon the subject premises at the sole cost and expense of the Tenant
and shall be installed only after Tenant has complied with all of the rules,
regulations, laws and ordinances of the Town of Carmel, County of Putnam and the
form and appearance of the sign has been approved by the Landlord. It is the
intent of this paragraph that all of the signs to be used by all Tenants of the
building of which the demised premises form a part be similar in style and
material.

51st. a) The Tenant may make any alteration, repairs or additions necessary for
the proper conduct of its business provided that such alterations, repairs
and/or additions do not injure the structure of the building or render it unfit
for general use. No alterations or additions shall be made by the Tenant to the
exterior of the building of which the demised premises form a part. No
alterations and/or additions to the demised premises shall be commenced prior to
the time that the Landlord has approved the plans therefor, which approval will
not be unreasonably withheld and the Tenant has complied with all of the rules
and regulations of the Town of Carmel, Putnam County, NY. The Tenant agrees that
the demised premises will be restored to its present state, if the Landlord so
demands, a reasonable time before the expiration of the term of this lease.

        b) The Tenant shall promptly comply with all orders, ordinances and laws
of all municipal, state and federal authorities, boards and commissions with
respect to the demised premises or the sidewalks, roadways, street or alleys
thereabout, under all rules and regulations as they in substances now or
hereafter exist, and the Tenant shall promptly execute any and all such orders

<PAGE>

involving alterations of or additions to the demised premises. The Tenant shall
also carry out all orders, rules, regulations and recommendations of the New
York Board of Fire Underwriters or any similar organization, no matter when
made.

c) The Tenant shall be solely responsible for obtaining, at its sole cost and
expense, any and all permits, licenses or other approvals required by the Tenant
for the orderly operation of its business, including but not limited to the
alteration, repair and/or addition to the demised premises as herein above
provided. The Landlord agrees to cooperate with the Tenant in obtaining the same
and agrees to execute, on request, all documents reasonable and necessary to
obtain such permits, licenses or approvals.

d) Landlord agrees to construct as soon as practicable a directory sign in
conformance with the Zoning Code of the Town of Carmel. Upon erection of the
sign, Landlord agrees to place Tenant's name and business description at the top
position of the sign.

52nd. The Tenant has fully inspected the demised premises and is familiar with
its physical condition and state of repair and is entering into this lease based
upon Tenant's own inspections and investigations thereof and not upon any of
Landlord's information, data, statements, representations or promises ( written
or oral ) in respect to said to the demised premises or the building of which
the demised premises form a part, except for those contained herein and those,
if any, contained in some written communication to the Tenant, signed by the
Landlord. Except as otherwise stated herein, the Tenant agrees to accept
possession of the demised premises in the same "AS IS" condition and state of
repair as it exists on the date hereof. This instrument contains the full
understanding of the parties hereto and may not be changed, modified, discharged
or terminated orally.

53rd  If the Tenant shall at any time be in default hereunder, or if the
Landlord shall institute an action or summary proceeding against the Tenant
based upon such default, or if the Tenant shall commence an action for a
declaratory judgment against the Landlord, and in which said action it shall be
determined that the Tenant's position cannot be upheld, then and in any such
event, the Tenant will reimburse the Landlord for the expense of attorneys' fees
and disbursements thereby incurred by the Landlord, so far as the same are
reasonable in amount. Also, so long as the Tenant shall be a Tenant hereunder
the amount of such expenses shall be deemed to be "additional rent" hereunder
and shall be due from the Tenant to the Landlord on the first day of the month
following the incurring of such respective expenses.

54th. Anything contained in this lease to the contrary notwithstanding, Tenant
agrees that it shall look solely to the estate and property of Landlord in the
land and building of which the Demised Premises forms a part for the collection
of any judgment (or other judicial process) requiring the payment of money by
Landlord in the event of any default or breach by Landlord with respect to any
of the terms or provisions of this lease to be observed and/or performed by
Landlord, subject, however, to the prior rights of any ground and underlying
lessors or the holder of any mortgage covering the said land and buildings or
any interest therein. No other assets of the Landlord shall be subject to levy,
execution or other judicial process for the satisfaction of Tenants claim. In
the event Landlord conveys or transfers its interest in the subject premises or
in

<PAGE>

this lease, except as collateral security for a loan, upon such conveyance or
transfer, Landlord (and in the case of any subsequent conveyances or transfers,
the then grantor or transferor) shall be entirely relieved from all liability
with respect to the performance of any covenants and obligations on the part of
Landlord to be performed hereunder from and after the date of such conveyance or
transfer, provided that any amounts then due and payable to Tenant by Landlord
(or by the then grantor or transferor) or any other obligation then to be
performed by Landlord (or by the then grantor or transferor) for Tenant under
any provisions of this lease, shall either be paid or performed by Landlord (or
by the then grantor or transferor) or such payment or performance assumed by the
grantee or transferee; it being intended hereby that the covenants and
obligations on the part of Landlord to be performed hereunder shall be binding
on Landlord, its successors and assigns, only during and in respect of their
respective periods of ownership of an interest in the said premises or in this
lease. This provision shall not be deemed, construed or interpreted to be an
agreement, express or implied, between Landlord and Tenant that Landlord's
interest hereunder and the said premises shall be subject to impressment of an
equitable lien or otherwise.

55th All notices or demands by either party to the other, other than a
statement, bill, or notice and demand for the payment of rent or additional rent
shall be given by certified mail, return receipt requested, addressed, if to the
Landlord, to the address set forth above or to such other address as the
Landlord shall designate, from time to time, by written notice, and if to the
Tenant, to Geerlings and Wade, Inc., 960 Turnpike Street, Canton, MA 02021. All
such notices shall be deemed served on the date of mailing and shall be deemed
received four (4) business days thereafter.

56th Provided the Tenant is not in default hereunder, the Tenant shall have the
right to renew this lease for one (1) additional term of three (3) years to
commence on the 1st day of February, 2006 and to end on the 31st day of January,
2009, upon the terms contained herein, except for the payment of rent, which
shall become due and payable, as follows:

Year                                Annual Rent                Monthly Rent
-----                               ------------               ------------
First Renewal Year                  $18,130.00                    $1,510.83
Second Renewal Year                 $18,673.90                    $1,556.16
Third (final) Renewal Year          $19,234.12                    $1,602.84

Notice of the Tenant's election to renew this lease as herein provided for shall
be made in writing and delivered to the Landlord no later than 60 days before
the expiration of this lease term to be effective.

IN WITNESS WHEREOF, the parties have duly executed this agreement on the date
first above written.

<PAGE>

GEERLINGS and WADE, INC.

BY:  __/s/ David Pearce______________________

DURKIN WATER REALTY, LLC

BY:  __/s/ Raymond C. Durkin____________________

<PAGE>

SCHEDULE & PAYMENT OF RENT

The Tenant shall pay the annual and monthly rent during the term herein demised
as set forth below:

YEAR                       ANNUAL RENT               MONTHLY RENT
-----                      -----------               ------------
First                      $16,591.00                $1,382.58
Second                     $17,089.00                $1,424.08
Third Final Year           $17,602.00                $1,466.84

Notwithstanding anything to the contrary herein contained, it is hereby mutually
agreed that the said premises are leased for an aggregate rental of FIFTY-ONE
THOUSAND TWO HUNDRED EIGHTY-TWO AND NO/100 ($51,282.00) dollars for the entire
term, payable at the time of the making of this lease, and that the provisions
herein contained for the payment of said rent in installments are for the
convenience of the Tenant only, and that, upon default in payment of the rent in
installments as herein allowed, then the whole of the rent hereby reserved for
the whole of the said term and then remaining unpaid shall at once become due
and payable, without any notice or demand.

GEERLINGS and WADE, INC.

BY:  _____/s/ David Pearce ___________________

DURKIN WATER REALTY, LLC

BY:  ______/s/ Raymond C. Durkin __________________

SPEC SHEET

<PAGE>

OFFICE SPACE
fully sheet rocked walls
primed and finish painted off white
pre-wired for future alarm system
1 phone jack
drop ceiling
2 - 4 foot fluorescent light fixtures
full HV/AC system with 1 thermostat
Glass storefront with 3 foot door
1 fire extinguisher

REAR AREA
2 outlets
1 light switch
sheet rocked and taped walls
walls primed to the 10 foot height
finished concrete floor
1 handicapped bathroom including sink, toilet, 2 switches and 1 outlet
1 utility room including hot water heater, HV/AC unit, and 200 amp. 3 phase
electrical panel
1 exit sign/emergency light
2 - 8 foot hanging fluorescent lights
3 - 3 foot pass doors
1 - 12 foot insulated garage door

Landlord represents that the mechanical system, i.e. HVAC Unit, electrical,
wiring for the phone jack, lighting system, hot water heater, toilet and sink
all are in good working order as they presently exist on the premises.

IT IS UNDERSTOOD AND AGREED that Tenant takes the premises in its present state
of completion and any further work to finish the space such as finishing the
drop ceiling to meet the rear wall, installing a rear demising wall with door,
additional HVAC ducts, lighting and tile floor shall be considered Tenant's work
and may be done to Tenant's own specifications.

Notwithstanding anything to the contrary contained herein the following rider
shall control

<PAGE>

over the printed form.

Tenant shall have until April 1, 2003 to obtain any and all necessary licenses
and permits from the appropriate authorities to operate a wine store license at
the demised premise, (the "Licenses"). If Tenant is unable to obtain said
Licenses by this date, Tenant may request and, upon a showing that all required
License have been applied for and diligently pursued, shall be granted a thirty
(30) day extension. If for any reason Tenant is unable to obtain the Licenses
within the above period(s), the Tenant may terminate this Lease, in which event
neither party shall have any further obligation to the other, except as provided
below, and Tenant shall forfeit its Deposit as a termination fee.
Notwithstanding any provisions hereof, Tenant's obligation to pay rent hereunder
shall commence on the Rent Commencement Date (February 1, 2003).

Tenant shall also have the right, at its sole discretion and for no reason, to
terminate this lease one year after commencement, January 31, 2004 ("Early
Termination"), by giving notice in writing to Landlord within thirty (30) days
of Early Termination. In the event Tenant elects to exercise its right of Early
Termination, the Tenant shall have no further obligation to pay rent, additional
rent or other consideration except as provided below. Upon Early Termination,
the Tenant shall pay Landlord three (3) months of Rent and Additional Rent of
($1,229) on January 31, 2004.

GEERLINGS and WADE, INC.

BY:  ____/s/ David Pearce ___________________

DURKIN WATER REALTY, LLC

BY:  ____/s/ Raymond C. Durkin ___________________<PAGE>

                                                                   Exhibit 10.46

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

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

                             GEERLINGS & WADE, INC.

                                CREDIT AGREEMENT

                          Dated as of February 24, 2003

                                      with

                              THE PARTIES LISTED ON
                                SCHEDULE 1 HERETO

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

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

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                 Page
<S>                                                                              <C>
1.   Definitions; Certain Rules of Construction ................................    1
2.   Revolving Credit Facility .................................................    5
    2.1.  Revolving Loan .......................................................    5
    2.2.  Maximum Amount of Credit .............................................    5
    2.3.  Borrowing Requests ...................................................    5
    2.4.  Notes ................................................................    5
    2.5.  Use of Proceeds ......................................................    5
3.   Interest; Commitment Fees, etc. ...........................................    6
    3.1.  Interest .............................................................    6
    3.2.  Unused Line Fee ......................................................    6
    3.3.  Default Rate .........................................................    6
    3.4.  Computations of Interest .............................................    6
    3.5.  Warrants .............................................................    6
4.   Payment ...................................................................    7
    4.1.  Payment at Maturity ..................................................    7
    4.2.  Mandatory Prepayments ................................................    7
    4.3.  Voluntary Prepayments of Loan ........................................    7
    4.4.  Reborrowing ..........................................................    7
    4.5.  Cash Collection System ...............................................    7
5.   Conditions to Extending Credit ............................................    7
    5.1.  Officer's Certificate ................................................    7
    5.2.  Notes ................................................................    7
    5.3.  Security Agreement ...................................................    8
    5.4.  Perfection of Security ...............................................    8
    5.5.  Lenders' Expenses ....................................................    8
    5.6.  Insurance ............................................................    8
    5.7.  Compliance ...........................................................    8
    5.8.  Proper Proceedings ...................................................    8
    5.9.  Legality, etc. .......................................................    8
    5.10.  General .............................................................    9
6.   General Covenants .........................................................    9
    6.1.  Conduct of Business ..................................................    9
    6.2.  Payment of Taxes and Other Amounts ...................................    9
    6.3.  Compliance with Laws .................................................    9
    6.4.  Insurance ............................................................    9
              6.4.1.  Property Insurance .......................................    9
              6.4.2.  Liability Insurance ......................................    9
    6.5.  Financial Statements and Reports .....................................    9
              6.5.1.  Annual Reports ...........................................   10
              6.5.2.  Quarterly Reports ........................................   10
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<S>                                                                              <C>
              6.5.3.  Monthly Calculations .....................................   10
              6.5.4.  Notice of Litigation, Defaults, etc. .....................   10
              6.5.5.  Other Information ........................................   11
    6.6.  Current Ratio ........................................................   11
    6.7.  Quick Ratio ..........................................................   11
    6.8.  EBIT .................................................................   12
    6.9.  Capital Expenditures .................................................   12
    6.10. Indebtedness and Liens ...............................................   12
    6.11. Distributions ........................................................   13
    6.12. Investments and Acquisitions .........................................   13
    6.13. Merger; Sale of Assets; Share Issuance ...............................   13
    6.14. Sales and Leasebacks .................................................   13
    6.15. Transactions with Affiliates .........................................   13
    6.16. Management Fees ......................................................   14
7.   Representations and Warranties ............................................   14
    7.1.  Organization and Business ............................................   14
    7.2.  Financial Statements and Other Information ...........................   14
    7.3.  Litigation ...........................................................   14
    7.4.  No Legal Obstacle to Agreements ......................................   14
    7.5.  Taxes ................................................................   15
8.   Defaults ..................................................................   15
    8.1.  Events of Default ....................................................   15
              8.1.1.  Payment ..................................................   15
              8.1.2.  Covenant Compliance ......................................   15
              8.1.3.  Representations and Warranties ...........................   15
              8.1.4.  Cross-Default ............................................   16
              8.1.5.  Judgments ................................................   16
              8.1.6.  Material Adverse Change ..................................   16
              8.1.7.  Change in Control ........................................   16
              8.1.8.  Bankruptcy ...............................................   16
    8.2.  Certain Actions Following an Event of Default ........................   17
              8.2.1.  No Obligation to Extend Credit; Acceleration .............   17
              8.2.2.  Exercise of Rights .......................................   17
              8.2.3.  Bankruptcy Default .......................................   17
              8.2.4.  Setoff ...................................................   17
              8.2.5.  Cumulative Remedies ......................................   17
    8.3.  Waivers ..............................................................   17
9.   Expense Indemnity .........................................................   18
    9.1.  Expenses .............................................................   18
    9.2.  General Indemnity ....................................................   18
10.  Successors and Assigns ....................................................   18
11.  Notices ...................................................................   19
12.  Course of Dealing, Amendments and Waivers .................................   20
13.  Venue; Service of Process; Certain Waivers ................................   20
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<S>                                                                              <C>
14.  WAIVER OF JURY TRIAL ......................................................   20
15.  General ...................................................................   21
</TABLE>

                                     -iii-

<PAGE>

                                    SCHEDULES

1.     Commitment Amounts

2.     Tranche I Percentages

3.     Tranche II Percentages

4.     Fee Percentages

5.     Warrants

                                    EXHIBITS

2.4  -    Form of Note

5.1  -    Officer's Certificate and Borrowing Request

5.3  -    Security Agreement

6.10 -    Existing Indebtedness and Liens

7.1  -    Subsidiaries

                                      -i-

<PAGE>

                             GEERLINGS & WADE, INC.

                                CREDIT AGREEMENT

     This Agreement, dated as of February 24, 2003, is among Geerlings & Wade,
Inc., a Massachusetts corporation (the "Company"), and John M. Connors, Jr.,
James C. Curvey, John J. Remondi, Gordon Romer and Robert L. Webb (each a
"Lender", and collectively the "Lenders"). The parties agree as follows:

1.   Definitions; Certain Rules of Construction. Except as the context otherwise
explicitly requires, (a) the capitalized term "Section" refers to sections of
this Agreement, (b) the capitalized term "Exhibit" refers to exhibits to this
Agreement, (c) references to "$" and "Dollars" are to United States dollars, (d)
the word "including" shall be construed as "including without limitation", (e)
accounting terms not otherwise defined herein have the meaning provided under
GAAP, (f) references to a particular statute or regulation include all rules and
regulations thereunder and any successor statute, regulation or rules, in each
case as from time to time in effect, and (g) references to a particular Person
include such Person's successors and assigns to the extent not prohibited by
this Agreement and the other Credit Documents. References to "the date hereof"
mean the date first set forth above.

     "Affiliate" means as to any Person, any other Person (other than a
Subsidiary) which, directly or indirectly, is in control of, is controlled by,
or is under common control with, such Person. For purposes of this definition,
"control" of a Person means the power, directly or indirectly, either to (a)
vote 10% or more of the securities having ordinary voting power for the election
of directors (or persons performing similar functions) of such Person or (b)
direct or cause the direction of the management and policies of such Person,
whether by contract or otherwise: provided, that with respect to any Person, the
term "Affiliate" shall include each officer, director, employee and general
partner of such Person, the Members of the Immediate Family of each such
officer, director, employee and general partner and each Affiliate of each of
the foregoing.

     "Banking Day" means any day (other than Saturday or Sunday) on which banks
are open to conduct business in Boston, Massachusetts.

     "Bankruptcy Code" means Title 11 of the United States Code (or any
successor statute) and the rules and regulations thereunder, all as from time to
time in effect.

     "Base Rate" means, on any date, the greater of (a) the rate of interest
announced by Citibank, N.A. as its prime rate plus three percent (3.0%) or (b)
six percent (6.00%).

     "Borrowing Request" is defined in Section 2.3.

     "Capital Expenditures" means, for any fiscal quarter, the sum (without
duplication) of all expenditures (whether paid in cash or accrued as
liabilities) during such fiscal quarter that are or should be treated as capital
expenditures under GAAP.

                                       -1-

<PAGE>

     "Change of Control" means (a) a majority of the board of directors of the
Company shall be neither (i) directors of the Company as of the date hereof nor
(ii) nominated, appointed or approved by directors of the Company as of the date
hereof nor (iii) nominated, appointed or approved by directors described in
clause (ii) above; (b) any Person, together with "affiliates" and "associates"
of such Person within the meaning of Rule 12b-2 of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), or any "group" including such Person
under sections 13(d) and 14(d) of the Exchange Act shall acquire after the date
hereof (i) beneficial ownership within the meaning of Rule 13d-3 of the Exchange
Act of 33% or more of either the voting stock or total equity capital of the
Company or (ii) direct or indirect control of the Company through a shareholder,
voting or similar agreement or arrangement; or (c) the Company shall initiate
any action to dissolve, liquidate or otherwise terminate its existence.

     "Closing Date" means the date on which any extension of credit is made
pursuant to Section 2.

     "Closing Price" means the closing price of the Company's common stock, par
value $.01 per share, as quoted on the Nasdaq SmallCap Market on the Initial
Closing Date.

     "Common Stock" means the Company's common stock, par value $.01 per share.

     "Connors" means John M. Connors, Jr., a Lender hereunder.

     "Company" is defined in the Preamble.

     "Credit Documents" means:

                    (a) this Agreement, the Security Agreement and the Notes,
               each as from time to time in effect; and

                    (b) any other present or future agreement or instrument from
               time to time entered into by the Lenders, on one hand, and the
               Company on the other hand, relating to, amending or modifying
               this Agreement or any other Credit Document referred to above or
               which is stated to be a Credit Document, each as from time to
               time in effect.

     "Credit Obligations" means all present and future liabilities, obligations
and indebtedness of the Company under or in connection with this Agreement, the
Notes or any other Credit Document, including obligations in respect of
principal, interest, amounts provided for in Section 3.2 and other fees,
charges, indemnities and expenses from time to time owing hereunder or under any
other Credit Document.

     "Curvey" means James C. Curvey, a Lender hereunder.

     "Default" means any Event of Default and any event or condition which with
the passage of time or giving of notice, or both, would become an Event of
Default.

                                       -2-

<PAGE>

     "EBIT" means, for any period, the total of:

            (a)  Net Income;

     plus   (b)  all amounts deducted in computing such Net Income in respect
of:

                    (i)    interest expense, and

                    (ii)   taxes based upon or measured by net income;

     minus  (c)  all amounts included in such Net Income in respect of non-cash
income.

     "End Date" is defined in Section 3.2.

     "Event of Default" is defined in Section 8.1.

     "Final Maturity Date" means March 31, 2004.

     "GAAP" means generally accepted accounting principles as from time to time
in effect, including the statements and interpretations of the United States
Financial Accounting Standards Board, consistently followed.

     "Indemnified Party" is defined in Section 9.2.

     "Initial Closing Date" means February 24, 2003.

     "Lender" and "Lenders" are defined in the Preamble, and for the avoidance
of doubt includes both the Tranche I Only Lenders and the Tranche II Lenders.

     "Loan" is defined in Section 2.4.

     "Majority of Lenders" means, as of any date of determination, the Lenders
holding an aggregate of 51% or more of all amounts outstanding under the Loan.

     "Margin Stock" means "margin stock" within the meaning of Regulations T, U
or X of the Board of Governors of the Federal Reserve System.

     "Material Adverse Change" means a material adverse change in the business,
operations, assets, financial condition, income or prospects of the Company.

     "Maximum Amount of Credit" is defined in Section 2.2.

     "Members of the Immediate Family" means, with respect to any individual,
each spouse, sibling or child of such individual, each trust created solely for
the benefit of one or more of the aforementioned Persons and each custodian or
guardian of any property of one or more of the aforementioned Persons in his
capacity as such custodian or guardian.

                                       -3-

<PAGE>

     "Net Income" means, for any period, the net income (or loss) of the
Company, determined in accordance with GAAP on a consolidated basis; provided,
however, that Net Income shall not include extraordinary and non-recurring gains
and losses as determined in accordance with GAAP.

     "Notes" is defined in Section 2.4.

     "Payment Date" means the last Banking Day in each March, June, September
and December.

     "Person" means any present or future natural person or any corporation,
association, partnership, joint venture, limited liability company, business
trust, trust, organization, business, individual or government or any
governmental agency or political subdivision thereof.

     "Remondi" means John J. Remondi, a Lender hereunder.

     "Romer" means Gordon Romer, a Lender hereunder.

     "SEC" is defined in Section 6.5.1.

     "Security Agreement" is defined in Section 5.3.

     "Subsidiary" means any Person of which the Company (or other specified
Person) shall at the time, directly or indirectly through one or more of its
Subsidiaries, (a) own more than 50% of the outstanding capital stock (or other
shares of beneficial interest) entitled to vote generally, (b) hold more than
50% of the partnership, joint venture or similar interests or (c) be a general
partner or joint venturer.

     "Tranche I" is defined in Section 2.1.

     "Tranche II" is defined in Section 2.1.

     "Tranche I Only Lenders" means Connors and Romer.

     "Tranche II Lenders" means Curvey, Remondi and Webb.

     "Unused Line" is defined in Section 3.2.

     "Unused Line Fee" is defined in Section 3.2.

     "Warrant Agreement" means the Warrant Agreement dated as of the Initial
Closing Date by and among the Company and the Lenders.

     "Warrants" means the warrants issued to the Lenders pursuant to the Warrant
Agreement.

     "Webb" means Robert L. Webb, a Lender hereunder.

                                       -4-

<PAGE>

2.   Revolving Credit Facility.

     2.1.   Revolving Loan. Subject to all the terms and conditions of this
Agreement and so long as no Default exists, from time to time on and after the
Initial Closing Date and prior to the Final Maturity Date, each Tranche I Only
Lender and each Tranche II Lender will make loans to the Company up to the
amount set forth opposite his name on Schedule 1 hereto and in such amounts as
may be requested by the Company in accordance with Section 2.3; provided,
however, that the Lenders agree, and the Company acknowledges, that (a) for any
portion of the Loan up to or equal to $500,000 of the Maximum Amount of Credit
("Tranche I"), the Lenders shall make loans to the Company, on a pro rata basis
as set forth on Schedule 2 hereto, upon the Company's request in accordance with
Section 2.3 and (b) for any amount of the Loan in excess of $500,000 ("Tranche
II"), the Tranche II Lenders shall make loans to the Company, on a pro rata
basis as set forth on Schedule 3 hereto, upon the Company's request in
accordance with Section 2.3. The Company acknowledges and agrees that each
Lender's obligation hereunder to loan such amounts to the Company is several and
not joint. The sum of the aggregate principal amount of loans made under this
Section 2.1 at any one time outstanding shall in no event exceed the Maximum
Amount of Credit.

     2.2.   Maximum Amount of Credit. The term "Maximum Amount of Credit" means,
on any date, the lesser of (a) $800,000 or (b) the amount (in an integral
multiple of $10,000) to which the then applicable amount set forth in clause (a)
above shall have been irrevocably reduced from time to time by notice from the
Company to the Lenders.

     2.3.   Borrowing Requests. The Company may from time to time request a loan
under Section 2.1 by providing to each applicable Lender a written notice at
least five (5) Banking Days prior to the requested Closing Date. Such notice
must specify the aggregate amount of the requested revolving loan (which shall
be not less than $100,000 and an integral multiple of $10,000), set forth each
applicable Lender's pro rata share of the requested revolving loan determined in
accordance with Schedule 2 or Schedule 3 hereto, as applicable, and be in
substantially the form of Exhibit 5.1 (a "Borrowing Request"). Each such loan
will be made by depositing the amount thereof to the general account of the
Company at Citizens Bank, or such other account at any bank of which the Company
has provided notice to each Lender.

     2.4.   Notes. The aggregate principal amount of the loans outstanding from
time to time under this Section 2 is referred to as the "Loan". The Company
shall keep a record of the Loan and shall include a copy of such record in each
Borrowing Request delivered to the applicable Lenders pursuant to Section 2.3.
The Company's obligations to pay the Loan shall be evidenced by the Company's
notes in substantially the form of Exhibit 2.4 (the "Notes"), payable to the
Lenders.

     2.5.   Use of Proceeds. The proceeds of the sale by the Company of the
Notes hereunder shall be used for general corporate purposes and to pay closing
costs.

                                       -5-

<PAGE>

3.   Interest; Commitment Fees, etc.

     3.1.   Interest. The Loan shall accrue and bear interest at a rate per
annum which shall at all times equal the Base Rate. The Company will pay the
accrued and unpaid interest on the Loan on each Payment Date and on any stated
or accelerated maturity of the Loan to each Lender on the basis of the principal
amount owing to such Lender as of such date.

     3.2.   Unused Line Fee. Until the full performance and irrevocable payment
in full of the Loan and the termination date of this Agreement (the "End Date"),
the Company shall pay to the Lenders, on a pro rata basis as set forth on
Schedule 4 hereto, an unused line fee (the "Unused Line Fee") in an amount equal
to 1.5% of the difference derived by subtracting (a) the daily average amount of
the balances under the Loan outstanding during the preceding month, from (b) the
Maximum Amount of Credit (the "Unused Line"); provided; however; that if the
Unused Line is equal to or less than $300,000 for a given month, only the
Tranche II Lenders shall be entitled to receive the Unused Line Fee, and in such
event the Company shall pay to the Tranche II Lenders the Unused Line Fee on a
pro rata basis as set forth on Schedule 3 hereto. The Unused Line Fee shall be
payable monthly in arrears on the first day of each successive calendar month
(starting with the month in which the Initial Closing Date occurs). The Unused
Line Fee shall be prorated for the month in which the Initial Closing Date
occurs and the month in which the End Date occurs.

     3.3.   Default Rate. Notwithstanding any provision contained in this
Agreement or any other Credit Document to the contrary, for each day during any
period that there shall have occurred and be continuing any Event of Default,
the interest rate on the unpaid principal amount of the Loan shall be increased
to a rate per annum (the "Default Rate") which is equal to the Base Rate plus
two percent (2.00%).

     3.4.   Computations of Interest. For purposes of this Agreement, interest
(and any amount expressed as interest) shall be computed on the basis of the
actual number of days elapsed in a 360-day year.

     3.5.   Warrants. As additional consideration for the extensions of credit
hereunder and as more fully described in the Warrant Agreement, the Company
shall issue and deliver to the Lenders, on a pro rata basis as set forth on
Schedule 5 hereto, on the Initial Closing Date, Warrants to purchase an
aggregate amount of shares of Common Stock equal to (a) the Maximum Amount of
Credit multiplied by ten percent (10%) and (b) divided by the Closing Price. The
Warrants shall be exercisable at a price per share equal to 1.25 multiplied by
the Closing Price and shall bear an expiration date of ten (10) years from the
Initial Closing Date. The Warrants shall be subject to various rights in favor
of the holders thereof as set forth in the Warrant Agreement.

                                       -6-

<PAGE>

4.   Payment.

     4.1. Payment at Maturity. On the Final Maturity Date, the Company will pay
to the Lenders an amount equal to the Loan, together with all accrued and unpaid
interest thereon and all other Credit Obligations then outstanding.

     4.2. Mandatory Prepayments. If the Company or any of its Subsidiaries (a)
sells any of its material assets or other properties (other than in the ordinary
course of business and other than sales of assets that are promptly replaced),
(b) receives any property damage insurance award which is not used to repair or
replace the property covered thereby, (c) receives any cash proceeds in
connection with any issuance after the Initial Closing Date of any shares of its
capital stock, other equity interests or options, warrants or other purchase
rights to acquire such capital stock or (d) receives any cash proceeds from the
incurrence by the Company or any of its Subsidiaries after the Initial Closing
Date of indebtedness other than indebtedness permitted under Section 6.10(a) and
indebtedness between the Company and any of its Subsidiaries, then not later
than ten (10) calendar days following such sale, award, issuance or incurrence,
as applicable, the Company shall apply 100% of the proceeds of any such sale,
award, issuance or incurrence, net of expenses incurred in relation thereto, to
the prepayment of the Notes on a pro rata basis.

     4.3. Voluntary Prepayments of Loan. The Company may from time to time
prepay all or any portion of the Loan (in a minimum amount of $50,000 and an
integral multiple of $5,000), without premium; provided, however, that the
Company may not prepay any portion of any Note that has been outstanding for
less than three months as of the proposed prepayment date.

     4.4. Reborrowing. The amounts of the Loan prepaid may be reborrowed in
accordance with Section 2, subject to the limitations thereof.

     4.5. Cash Collection System. If requested by a Majority of Lenders, the
Company will put into place a cash collection system reasonably satisfactory to
such Lenders.

5.   Conditions to Extending Credit. The obligation of the Lenders to make any
extension of credit pursuant to Section 2 shall be subject to the satisfaction,
on or before the Closing Date therefor, of the following conditions:

     5.1. Officer's Certificate. The representations and warranties contained in
Section 7 shall be true and correct on and as of the Closing Date with the same
force and effect as though originally made on and as of such date; no Default
shall exist on the Closing Date prior to or immediately after giving effect to
the requested extension of credit; as of the Closing Date, no Material Adverse
Change shall have occurred; and the Company shall have furnished to the Lender
on the Closing Date a certificate to these effects, in substantially the form of
Exhibit 5.1.

     5.2. Notes. On the Initial Closing Date, the Company shall have executed
the Notes and delivered each Note to the Lender in whose name it has been
executed.

                                       -7-

<PAGE>

     5.3. Security Agreement. The Company shall have duly authorized, executed
and delivered to the Lenders a Security Agreement substantially in the form of
Exhibit 5.3 (the "Security Agreement").

     5.4. Perfection of Security. The Company shall have duly authorized,
executed, acknowledged, delivered, filed, registered and recorded such security
agreements, notices, financing statements and other instruments as the Lenders
may have reasonably requested in order to perfect the liens purported or
required to be created pursuant to the Credit Documents and shall have paid all
filing or recording fees or taxes required to be paid in connection therewith,
including any recording, mortgage, documentary, transfer or intangible taxes.

     5.5. Lenders' Expenses. On the Initial Closing Date, the Company shall have
paid the reasonable expenses and legal fees of the Lenders, not to exceed
$15,000 in the aggregate, incurred in connection with the negotiation of this
Agreement and the other Credit Documents and the transactions contemplated
hereby and thereby.

     5.6. Insurance. The Company shall have provided to the Lenders copies of
all insurance policies, and original certificates therefor confirming that such
policies are in effect and that the premiums due and owing with respect thereto
have been paid in full, evidencing that the Company has adequately insured its
and its Subsidiaries' properties, business and assets in all material respects
against losses, damages and hazards as are customarily insured against by
businesses engaging in activities similar to those of the Company and its
Subsidiaries or owning assets or properties similar to those of the Company and
its Subsidiaries; maintains general public liability insurance at all times
against liability on account of damage to persons and property having such
limits, deductibles, exclusions and co-insurance and other provisions as are
customary for a business engaged in activities similar to those of the Company
and its Subsidiaries; and maintains insurance under all applicable workers'
compensation laws.

     5.7. Compliance. The Company and its Subsidiaries shall each (a) be in
compliance in all material respects, with all, and not in violation in any
material respect of any, applicable federal, state, foreign and local laws,
statutes and regulations and (b) not be the subject of any governmental
investigation, evaluation or any remedial action which could reasonably be
expected to have or result in a Material Adverse Change.

     5.8. Proper Proceedings. This Agreement, each other Credit Document and the
Warrant Agreement and the transactions contemplated hereby and thereby shall
have been authorized by all necessary proceedings of the Company. All necessary
consents, approvals and authorizations of any governmental or administrative
agency or any other Person of any of the transactions contemplated hereby, by
the Warrant Agreement or by any Credit Document shall have been obtained and
shall be in full force and effect.

     5.9. Legality, etc. The making of the requested extension of credit shall
not (a) subject the Lenders to any penalty or special tax or (b) be prohibited
by any law or governmental order or regulation applicable to the Lenders.

                                       -8-

<PAGE>

     5.10.  General. All instruments and legal and corporate proceedings, in
connection with the transactions contemplated by this Agreement, the Warrant
Agreement and each Credit Document shall be satisfactory in form and substance
to the Lenders, and the Lenders shall have received copies of all documents,
including records of corporate proceedings, which the Lenders may have
reasonably requested in connection therewith, such documents where appropriate
to be certified by proper corporate or governmental authorities.

6.   General Covenants. The Company covenants that, until all of the Credit
Obligations shall have been paid in full and until each Lender's commitment to
extend credit under this Agreement and any other Credit Document shall have been
terminated, the Company will comply with the following provisions:

     6.1.   Conduct of Business. The Company shall engage only in the business
of retail sales of wine and wine-related merchandise and activities reasonably
related thereto.

     6.2.   Payment of Taxes and Other Amounts. The Company will pay (a) all
taxes, assessments and governmental charges imposed upon it or upon its property
and (b) all accounts payable in conformity with customary trade terms, in each
case unless the validity or amount thereof is being contested in good faith by
appropriate proceedings, and the Company has established adequate reserves in
accordance with GAAP.

     6.3.   Compliance with Laws. The Company will comply with all applicable
laws, rules, regulations and orders, and duly observe all valid requirements of
governmental authorities, except where failure so to comply would not result,
and would not create a material risk of resulting, in a Material Adverse Change.
The Company will not own any Margin Stock.

     6.4.   Insurance.

            6.4.1.  Property Insurance. The Company shall keep its, and its
     Subsidiaries', properties, business and assets which are of an insurable
     character insured by financially sound and reputable insurers against
     losses, damages and hazards insured against by extended coverage to the
     extent, in amounts and with deductibles at least as favorable as those
     generally maintained by businesses of similar size engaged in similar
     activities.

            6.4.2.  Liability Insurance. The Company shall maintain with
     financially sound and reputable insurers insurance against liability for
     hazards, risks and liability to persons and property to the extent, in
     amounts and with deductibles at least as favorable as those generally
     maintained by businesses of similar size engaged in similar activities;
     provided, however, that it may effect workers' compensation insurance or
     similar coverage with respect to operations in any particular state or
     other jurisdiction through an insurance fund operated by such state or
     jurisdiction or by meeting the self-insurance requirements of such state or
     jurisdiction.

     6.5.   Financial Statements and Reports.

                                       -9-

<PAGE>

            6.5.1.  Annual Reports. The Company shall furnish to each Lender,
     within three (3) Banking Days after its filing with the Securities and
     Exchange Commission (the "SEC"), its Annual Report on Form 10-K for each
     fiscal year of the Company containing the consolidated balance sheet of the
     Company as of the end of such fiscal year, the consolidated statements of
     income, of changes in shareholders' equity and of cash flows of the Company
     for such fiscal year and comparative figures for the immediately preceding
     fiscal year, accompanied by a certificate of the Company to the effect that
     the Company has no knowledge of any Default as of the date of such
     certificate, or if the Company has such knowledge, specifying such Default
     and the nature thereof, and what action the Company has taken, is taking or
     proposes to take with respect thereto.

            6.5.2.  Quarterly Reports. The Company shall furnish to each Lender,
     within three (3) Banking Days after its filing with the SEC, its Quarterly
     Report on Form 10-Q for each fiscal quarter of the Company (except for the
     fourth fiscal quarter) containing the internally prepared consolidated
     balance sheet of the Company as of the end of such fiscal quarter, the
     consolidated statements of income, of changes in shareholders' equity and
     of cash flows of the Company for such fiscal quarter and for the portion of
     the fiscal year then ended and comparative figures for the same period in
     the preceding fiscal year, accompanied by:

                    (a)  A certificate of the Company to the effect that such
            financial statements have been prepared in accordance with GAAP and
            present fairly, in all material respects, the financial position of
            the Company at the dates thereof and the results of its operations
            for the periods covered thereby, subject only to normal year-end
            audit adjustments and the addition of footnotes, and

                    (b)  A certificate of the Company to the effect that the
            Company has no knowledge of any Default as of the date of such
            certificate, or if the Company has such knowledge, specifying such
            Default and the nature thereof and what action the Company has
            taken, is taking or proposes to take with respect thereto.

            6.5.3.  Monthly Calculations. The Company shall furnish to each
     Lender, within twenty-eight (28) calendar days after the last calendar day
     of each month, calculations showing, as of the last day of such month
     ended, the Company's compliance with Sections 6.6, 6.7 and 6.8.

            6.5.4.  Notice of Litigation, Defaults, etc. The Company shall
     promptly furnish to each Lender notice of any litigation or any
     administrative or arbitration proceeding (a) which creates a reasonable
     risk of resulting, after giving effect to any applicable insurance, in the
     payment by the Company of more than $100,000 or (b) which results, or
     creates a reasonable risk of resulting, in a Material Adverse Change.
     Promptly upon acquiring knowledge thereof, the Company shall notify each
     Lender of the existence of any Default or Material Adverse Change,
     specifying the nature thereof and what action the Company has taken, is
     taking or proposes to take with respect thereto.

                                      -10-

<PAGE>

            6.5.5.  Other Information. From time to time at reasonable intervals
     upon written request of any Lender, the Company shall furnish to each
     Lender such other information regarding the business, assets, financial
     condition, income or prospects of the Company as such Lender may reasonably
     request, including copies of all tax returns, licenses, agreements, leases
     and instruments to which the Company is party. Each Lender and its
     authorized representatives shall have the right during normal business
     hours upon reasonable notice and at reasonable intervals (a) to examine the
     books and records of the Company for the purpose of ascertaining compliance
     with or obtaining enforcement of this Agreement or any other Credit
     Document and (b) to inspect the inventory of the Company and its
     Subsidiaries and perform any valuation thereupon.

     6.6.   Current Ratio. The Company's current ratio (current assets over
current liabilities), calculated in accordance with GAAP, shall not be less than
the following amounts at the following monthly intervals:

            Month Ending                      Ratio
            ------------                      -----
            February 28, 2003                  2.29
            March 31, 2003                     2.29
            April 30, 2003                     2.30
            May 31, 2003                       2.31
            June 30, 2003                      2.36
            July 31, 2003                      2.38
            August 31, 2003                    2.38
            September 30, 2003                 2.38
            October 31, 2003                   2.34
            November 30, 2003                  2.49
            December 31, 2003                  2.60
            January 31, 2004                   2.74
            February 29, 2004                  2.83

     6.7.  Quick Ratio. The Company's quick ratio (current assets less inventory
over current liabilities), calculated in accordance with GAAP, shall not be less
than the following amounts at the following monthly intervals:

            Month Ending                      Ratio
            ------------                      -----
            February 28, 2003                  0.94
            March 31, 2003                     0.94
            April 30, 2003                     1.18
            May 31, 2003                       1.18
            June 30, 2003                      1.18
            July 31, 2003                      0.95
            August 31, 2003                    0.95
            September 30, 2003                 0.95
            October 31, 2003                   0.96

                                      -11-

<PAGE>

            November 30, 2003                  1.07
            December 31, 2003                  1.18
            January 31, 2004                   1.33
            February 29, 2004                  1.33

     6.8.   EBIT. The Company's EBIT, calculated in accordance with GAAP, shall
not be less than the following amounts at the following intervals measured
monthly on a trailing three-month basis:

            Period Ending                      Amount
            -------------                      ------
            February 28, 2003                  ($115,376)
            March 31, 2003                     ($450,000)
            April 30, 2003                     ($289,697)
            May 31, 2003                       ($ 47,569)
            June 30, 2003                      ($200,000)
            July 31, 2003                       ($73,937)
            August 31, 2003                    $  72,054
            September 30, 2003                 $ 200,000
            October 31, 2003                    ($33,085)
            November 30, 2003                  $  41,535
            December 31, 2003                  $ 400,000
            January 31, 2004                   $ 436,981
            February 29, 2004                  $ 317,403

     6.9.   Capital Expenditures. The aggregate amount of Capital Expenditures
for any fiscal quarter of the Company ending on or after December 31, 2002 shall
not exceed $100,000.

     6.10.  Indebtedness and Liens. Neither the Company nor any of its
Subsidiaries will:

            (a)   create, incur or otherwise become or remain liable with
     respect to, any indebtedness for borrowed money, evidenced by notes or
     other instruments or for the deferred purchase price of goods or services,
     other than (i) the Credit Obligations, (ii) the Company's presently
     existing indebtedness (including committed lease facilities) listed on
     Exhibit 6.10, (iii) purchase money indebtedness and capitalized leases
     incurred in the ordinary course of business not exceeding $20,000 in the
     aggregate at any one time outstanding, (iv) unsecured indebtedness incurred
     in the ordinary course of business not exceeding $5,000 in the aggregate
     and (v) trade accounts payable in the ordinary course of business.

            (b)   create or incur or permit to exist any consensual lien,
     charge, mortgage, pledge or other security interest of any kind upon any of
     its property or assets of any character, whether now owned or hereafter
     acquired, other than (i) liens securing the Credit Obligations, (ii)
     purchase money liens and capitalized leases incurred in the ordinary course
     of business not exceeding $20,000, (iii) deposits or pledges made in

                                      -12-

<PAGE>

     connection with, or to secure payment of, indemnity, performance or similar
     bonds in the ordinary course of business, and (iv) presently existing liens
     listed on Exhibit 6.10; provided, however, that the Company shall undertake
     to terminate all security interests listed on Exhibit 6.10 granted in favor
     of Citizens Bank in the Company's property as soon as reasonably
     practicable following the Initial Closing Date.

     6.11.  Distributions. Neither the Company nor any of its Subsidiaries shall
pay any direct or indirect dividend or other distribution of any kind in respect
of, or purchase or redeem, any of its shares of capital stock (other than
distributions to the Company from any of its Subsidiaries).

     6.12.  Investments and Acquisitions. Neither the Company nor any of its
Subsidiaries shall make any investments in capital stock, partnership interests
or loans, or purchase or otherwise acquire any business or material assets
unrelated to the business of selling wine at retail in the United States.

     6.13.  Merger; Sale of Assets; Share Issuance. Neither the Company nor any
of its Subsidiaries shall become a party to any merger or consolidation, or in a
single transaction or series of related transactions sell, lease or otherwise
dispose of a material amount of its assets (except that wholly owned
Subsidiaries of the Company may be merged or liquidated into the Company or one
or more of its wholly owned Subsidiaries), or in the case of the Company's
Subsidiaries, issue any capital stock or rights to acquire capital stock.

     6.14.  Sales and Leasebacks. The Company shall not, and shall not permit
any of its Subsidiaries to, enter into any arrangement with any Person providing
for the leasing by the Company or any Subsidiary of real or personal property
which has been or is to be sold or transferred by the Company or such Subsidiary
to such Person or to any other Person to whom funds have been or are to be
advanced by such Person on the security of such property or rental obligations
of the Company or such Subsidiary.

     6.15.  Transactions with Affiliates. The Company shall not, and shall not
permit any of its Subsidiaries to, enter into any transaction (including,
without limitation, any purchase, sale, lease or exchange of property or the
rendering of any service) with any Affiliate unless such transaction is (a)
otherwise permitted under this Agreement; (b) in the ordinary course of the
Company's or such Subsidiary's business; and (c) upon fair and reasonable terms
no less favorable to the Company or such Subsidiary, as the case may be, than it
would obtain in a comparable arm's length transaction with a Person which is not
an Affiliate; provided, however, that the foregoing restriction shall not
prohibit (i) transactions pursuant to this Agreement; (ii) any employment
agreement entered into by the Company or any of its Subsidiaries in the ordinary
course of business; (iii) any issuance of securities in connection with (x) the
Warrant Agreement or (y) employment arrangements, stock options and stock
ownership plans of the Company entered into in the ordinary course of business;
and (iv) transactions between the Company and its Subsidiaries.

                                      -13-

<PAGE>

     6.16.  Management Fees. The Company shall not, and shall not permit any of
its Subsidiaries to, pay any management fee.

7.   Representations and Warranties. In order to induce the Lenders to extend
credit to the Company hereunder, the Company represents and warrants that:

     7.1.   Organization and Business. The Company is a duly organized and
validly existing corporation, in good standing under the laws of The
Commonwealth of Massachusetts, with all power and authority necessary (a) to
enter into and perform this Agreement and each other Credit Document to which it
is party, and (b) to own its properties and carry on the business now conducted
or proposed to be conducted by it. The Company has taken all corporate action
required to execute, deliver and perform this Agreement and each other Credit
Document to which it is party. Copies of the restated articles of organization
and the amended and restated by-laws of the Company have been previously
delivered to the Lenders and are correct and complete. The Company has no
Subsidiaries, except as set forth in Exhibit 7.1, which Subsidiaries are each
duly organized, validly existing and in good standing under the laws of the
jurisdiction of their respective incorporation.

     7.2.   Financial Statements and Other Information. The Company has
previously furnished to the Lenders copies of the consolidated balance sheet of
the Company as of December 31, 2002, and the related consolidated statement of
earnings, stockholders' equity and cash flows for the fiscal year of the Company
then ended, accompanied by the preliminary review of the Company's accountants.
The financial statements (including the notes thereto) referred to in the
preceding sentence have been prepared in accordance with GAAP and fairly present
in all material respects the financial condition of the Persons covered thereby
at the dates thereof and the results of their operations for the periods covered
thereby, subject to the case of interim statements only to normal year-end audit
adjustments and the addition of footnotes.

     7.3.   Litigation. No litigation, at law or in equity, or any proceeding
before any federal, state, provincial or municipal court, board or other
governmental or administrative agency or any arbitrator is pending or to the
knowledge of the Company threatened which may reasonably involve any material
risk of any final judgment or liability not adequately covered by insurance or
which is otherwise reasonably likely to result in any Material Adverse Change.
Other than as disclosed in the financial statements, no judgment, decree, or
order of any federal, state, provincial or municipal court, board or other
governmental or administrative agency or arbitrator has been issued against the
Company which has resulted, or creates a material risk of resulting, in any
Material Adverse Change.

     7.4.   No Legal Obstacle to Agreements. Neither the execution and delivery
of this Agreement or any other Credit Document, nor the making of any borrowings
hereunder, nor the consummation of any transaction referred to in or
contemplated by this Agreement or any other Credit Document, nor the fulfillment
of the terms hereof or thereof or of any other agreement, instrument, deed or
lease referred to in this Agreement or any other Credit Document, has
constituted or resulted in or will constitute or result in:

                                      -14-

<PAGE>

                 (a) any breach or termination of the provisions of any
            agreement, instrument, deed or lease to which the Company is a party
            or by which it is bound, or of the charter or by-laws of the
            Company;

                 (b) the violation of any law, statute, judgment, decree or
            governmental order, rule or regulation applicable to the Company;

                 (c) the creation under any agreement, instrument, deed or lease
            of any lien upon any of the assets of the Company; or

                 (d) any redemption, retirement or other repurchase obligation
            of the Company under any charter, bylaw, agreement, instrument, deed
            or lease.

No approval, authorization or other action by, or declaration to or filing with,
any governmental or administrative authority or any other Person is required to
be obtained or made by the Company in connection with the execution, delivery
and performance of this Agreement or any other Credit Document, the transactions
contemplated hereby or thereby or the making of any borrowing by the Company
hereunder.

     7.5.   Taxes. The Company has filed (or obtained extensions to file)
required tax returns and paid taxes due except such taxes as are being contested
in good faith and as to which adequate reserves have been set aside in
conformity with GAAP.

8.   Defaults.

     8.1.   Events of Default. The following events are herein referred to as
"Events of Default":

            8.1.1.  Payment. The Company shall fail to make any payment in
     respect of: (a) interest or any fee on or in respect of any of the Credit
     Obligations owed by it as the same shall become due and payable, and such
     failure shall continue for a period of three (3) Banking Days, or (b)
     principal of any of the Credit Obligations owed by it as the same shall
     become due, whether at maturity or by acceleration or otherwise.

            8.1.2.  Covenant Compliance. The Company shall fail to perform or
     observe any of the other provisions of the Credit Documents required to be
     performed or complied with by it and such failure continues for a period of
     ten (10) calendar days after written notice thereof is given by any Lender
     to the Company.

            8.1.3.  Representations and Warranties. Any representation or
     warranty of or with respect to the Company in, pursuant to or in connection
     with this Agreement or any other Credit Document, or in any certificate,
     notice, financial statement or other report furnished to any Lender in
     connection therewith, shall be materially false on the date as of which it
     was made.

                                      -15-

<PAGE>

       8.1.4. Cross-Default. A default shall exist under any instrument or
agreement of the Company under which indebtedness of $100,000 or more is
outstanding and, by reason of such default, the holder or holders of such
indebtedness would be permitted under the terms of such instrument or agreement
to accelerate the maturity of such indebtedness.

       8.1.5. Judgments. A final judgment (a) which, with other outstanding
final judgments against the Company, exceeds an aggregate of $100,000 in excess
of applicable insurance coverage shall be rendered against the Company, or (b)
which grants injunctive relief that results, or creates a material risk of
resulting, in a Material Adverse Change and in either case if (i) within sixty
(60) calendar days after entry thereof, such judgment shall not have been
discharged or execution thereof stayed pending appeal or (ii) within sixty (60)
calendar days after the expiration of any such stay, such judgment shall not
have been discharged.

       8.1.6. Material Adverse Change. A Material Adverse Change occurs or
threatens to occur that jeopardizes the Company's ability to discharge its
obligations to any Lender under this Agreement, the Notes or any other Credit
Document.

       8.1.7. Change in Control. There shall have occurred a Change of Control.

       8.1.8. Bankruptcy. The Company shall:

              (a) commence a voluntary case under the Bankruptcy Code or
       authorize, by appropriate proceedings of its board of directors or other
       governing body, the commencement of such a voluntary case;

              (b) have filed against it a petition commencing an involuntary
       case under the Bankruptcy Code which shall not have been dismissed within
       sixty (60) calendar days after the date on which such petition is filed;
       or file an answer or other pleading within such 60-day period admitting
       or failing to deny the material allegations of such a petition or
       seeking, consenting to or acquiescing in the relief therein provided;

              (c) have entered against it an order for relief in any involuntary
       case commenced under the Bankruptcy Code;

              (d) seek relief as a debtor under any applicable law, other than
       the Bankruptcy Code, of any jurisdiction relating to the liquidation or
       reorganization of debtors or to the modification or alteration of the
       rights of creditors, or consent to or acquiesce in such relief;

              (e) have entered against it an order by a court of competent
       jurisdiction (i) finding it to be bankrupt or insolvent, (ii) ordering or
       approving its liquidation, reorganization or any modification or
       alteration of the rights of its creditors or

                                      -16-

<PAGE>

              (iii) assuming custody of, or appointing a receiver or other
              custodian for, all or a substantial portion of its property; or

                     (f) make an assignment for the benefit of, or enter into a
              composition with, its creditors, or appoint, or consent to the
              appointment of, or suffer to exist a receiver or other custodian
              for, all or a substantial portion of its property.

       8.2.   Certain Actions Following an Event of Default. If any one or more
Events of Default shall occur and be continuing, then in each and every such
case:

              8.2.1. No Obligation to Extend Credit; Acceleration. Upon notice
       by a Majority of Lenders to the Company, the obligations of the Lenders
       to make any extension of credit hereunder shall automatically terminate
       and the Credit Obligations shall become immediately due and payable.

              8.2.2. Exercise of Rights. Any of the Lenders may proceed to
       protect and enforce their rights by suit in equity, action at law and/or
       other appropriate proceeding, either for specific performance of any
       covenant or condition contained in this Agreement or any other Credit
       Document.

              8.2.3. Bankruptcy Default. Upon the occurrence of an Event of
       Default under Section 8.1.8, the unpaid balance of the Credit Obligations
       shall automatically become immediately due and payable.

              8.2.4. Setoff. Each Lender may offset and apply toward the payment
       of such balance or part thereof (and/or toward the curing of any Event of
       Default) any indebtedness from such Lender to the Company, regardless of
       the adequacy of any security for the Credit Obligations, and the Lenders
       shall have no duty to determine the adequacy of any such security in
       connection with any such offset.

              8.2.5. Cumulative Remedies. To the extent not prohibited by
       applicable law that cannot be waived, all of the Lenders' rights
       hereunder and under each other Credit Document shall be cumulative.

       8.3.   Waivers. The Company hereby waives to the extent not prohibited by
applicable law:

                     (a) all presentments, demands for performance, notices of
              nonperformance (except to the extent required by the provisions of
              this Agreement or any other Credit Document), protests, notices of
              protest and notices of dishonor;

                     (b) any requirement of diligence or promptness on the part
              of any Lender in the enforcement of its rights under this
              Agreement, the Notes or any other Credit Document; and

                                      -17-

<PAGE>

                     (c) any and all notices of every kind and description which
              may be required to be given by any statute or rule of law.

9.     Expense Indemnity.

       9.1.   Expenses. The Company will pay: (a) all transfer and documentary
stamp and similar taxes at any time payable in respect of this Agreement or the
Loan and (b) all other reasonable expenses incurred by the Lenders in connection
with the enforcement of any rights hereunder or under any other Credit Document
upon the occurrence and during the continuance of a Default, including costs of
collection and reasonable attorneys' fees and expenses.

       9.2.   General Indemnity. The Company shall indemnify each Lender and
each such Lender's employees, agents, attorneys, accountants and consultants
(each Lender and each of such employees, agents, attorneys, accountants and
consultants is referred to as an "Indemnified Party") and hold each of them
harmless from and against any and all claims, damages, liabilities and
reasonable expenses (including reasonable fees and disbursements of counsel with
whom any Indemnified Party may consult in connection therewith and all
reasonable expenses of litigation or preparation therefor) which any Indemnified
Party may incur or which may be asserted against any Indemnified Party in
connection with (a) the Indemnified Party's compliance with or contest of any
subpoena or other process issued against it in any proceeding involving the
Company or any of its Subsidiaries or their affiliates, (b) any litigation or
investigation involving the Company, any of its Subsidiaries or their
affiliates, or any officer, director or employee thereof, (c) the existence or
exercise of any security rights with respect to the collateral under the Credit
Documents, or (d) this Agreement, any other Credit Document or any transaction
contemplated hereby or thereby; provided, however, that the foregoing indemnity
shall not apply to litigation commenced by the Company against a Lender that
seeks enforcement of any of the rights of the Company hereunder or under any
other Credit Document and is determined adversely to such Lender in a final
nonappealable judgment or to the extent such claims, damages, liabilities and
expenses result from the Indemnified Party's own gross negligence or willful
misconduct.

10.    Successors and Assigns. Any reference in this Agreement to any of the
parties hereto shall be deemed to include the successors and assigns of such
party, and all covenants and agreements by or on behalf of the Company or each
Lender that are contained in this Agreement shall bind and inure to the benefit
of their respective successors and assigns; provided, however, that the Company
may not assign its rights or obligations under this Agreement under any
circumstances and each Lender may assign its rights or obligations under this
Agreement only as follows: each Lender may from time to time grant
participations in its pro rata share of the Loan and its Note, or assign all or
part of its pro rata share of the Loan and its Note, upon such terms as such
Lender may determine, to affiliates of such Lender, to any other Lender or, with
the consent of the Company which shall not be unreasonably withheld, to banks or
financial institutions.

                                      -18-

<PAGE>

11.    Notices. Except as otherwise specified in this Agreement, any notice
required to be given pursuant to this Agreement shall be given in writing. Any
notice, demand or other communication in connection with this Agreement shall be
deemed to be given if given in writing (including telex, telecopy (confirmed by
telephone or writing) or similar teletransmission) addressed as provided below
(or to the addressee at such other address as the addressee shall have specified
by notice actually received by the addressor), and if either (a) actually
delivered in fully legible form to such address (evidenced in the case of a
telex by receipt of the correct answer back) or (b) in the case of a letter,
five (5) calendar days shall have elapsed after the same shall have been
deposited in the United States mails, with first-class postage prepaid and
registered or certified.

       If to the Company, to it at the following address:

              GEERLINGS & WADE, INC.
              960 Turnpike Street
              Canton, MA 02021
              Attn: Chief Executive Officer
              T: 781-821-4152
              F: 781-830-6941

       If to the Lenders, to each Lender at its respective address:

              John M. Connors, Jr.
              71 Sears Road
              Brookline, MA  02445
              T: 617-232-9408

              James C. Curvey
              Le Jardin, 250 Boylston Street
              Boston, MA  02116

              John J. Remondi
              300 Boylston Street, Suite 507
              Boston, MA  02116
              T: 617-542-8663

              Gordon Romer
              10 Hillcrest Road
              Tiburon, CA  94920
              T: 415-435-9561
              F: 415-435-9571

                                      -19-

<PAGE>

              Robert L. Webb
              52 Pine Ridge Road
              Westford, MA  01886
              T: 978-692-4595

12.    Course of Dealing, Amendments and Waivers. No course of dealing between
the Lenders and the Company or any affiliate of the Company shall operate as a
waiver of any of the Lenders' rights under this Agreement or any other Credit
Document or with respect to the Credit Obligations. No delay or omission on the
part of any Lender in exercising any right under this Agreement or any other
Credit Document or with respect to the Credit Obligations shall operate as a
waiver of such right or any other right hereunder or thereunder. A waiver on any
one occasion shall not be construed as a bar to or waiver of any right or remedy
on any future occasion. No waiver, consent or amendment with respect to this
Agreement or any other Credit Document shall be binding unless it is in writing
and signed by at least a Majority of the Lenders.

13.    Venue; Service of Process; Certain Waivers. Each of the Company and each
Lender:

                     (a) Irrevocably submits to the nonexclusive jurisdiction of
              the state courts of The Commonwealth of Massachusetts and to the
              nonexclusive jurisdiction of the United States District Court for
              the District of Massachusetts for the purpose of any suit, action
              or other proceeding arising out of or based upon this Agreement or
              any other Credit Document or the subject matter hereof or thereof;

                     (b) Waives to the extent not prohibited by applicable law
              that cannot be waived, and agrees not to assert, by way of motion,
              as a defense or otherwise, in any such proceeding brought in any
              of the above-named courts, any claim that it is not subject
              personally to the jurisdiction of such court, that its property is
              exempt or immune from attachment or execution, that such
              proceeding is brought in an inconvenient forum, that the venue of
              such proceeding is improper, or that this Agreement or any other
              Credit Document, or the subject matter hereof or thereof, may not
              be enforced in or by such court;

                     (c) Consents to service of process in any such proceeding
              in any manner at the time permitted by Chapter 223A of the General
              Laws of The Commonwealth of Massachusetts and agrees that service
              of process by registered or certified mail, return receipt
              requested, at its address specified in or pursuant to Section 11
              is reasonably calculated to give actual notice; and

                     (d) Waives to the extent not prohibited by applicable law
              that cannot be waived any right it may have to claim or recover in
              any such proceeding any special, exemplary, punitive or
              consequential damages.

14.    WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT
CANNOT BE WAIVED, EACH OF THE COMPANY AND

                                      -20-

<PAGE>

EACH LENDER WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF,
DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF
ANY ISSUE, CLAIM OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT OR THE SUBJECT MATTER HEREOF OR THEREOF OR ANY CREDIT OBLIGATION OR IN
ANY WAY CONNECTED WITH THE DEALINGS OF THE LENDERS OR THE COMPANY IN CONNECTION
WITH ANY OF THE ABOVE, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING
AND WHETHER IN CONTRACT, TORT OR OTHERWISE. Any of the Lenders or the Company
may file an original counterpart or a copy of this Agreement with any court as
written evidence of the consent of the Company and the Lenders to the waiver of
their rights to trial by jury.

15.    General. All covenants, agreements, representations and warranties made
in this Agreement or any other Credit Document or in certificates delivered
pursuant hereto or thereto shall be deemed to have been material and relied on
by the Lenders, notwithstanding any investigation made by the Lenders, and shall
survive the execution and delivery to the Lenders hereof and thereof. The
invalidity or unenforceability of any provision hereof shall not affect the
validity or enforceability of any other provision hereof, and any invalid or
unenforceable provision shall be modified so as to be enforced to the maximum
extent of its validity or enforceability. The headings in this Agreement are for
convenience of reference only and shall not limit, alter or otherwise affect the
meaning hereof. This Agreement and the other Credit Documents constitute the
entire understanding of the parties with respect to the subject matter hereof
and thereof and supersede all prior and current understandings and agreements,
whether written or oral. This Agreement may be executed in any number of
counterparts which together shall constitute one instrument. This Agreement
shall be governed by and construed in accordance with the laws (other than the
conflict of laws rules) of The Commonwealth of Massachusetts.

               [The Remainder Of This Page Is Intentionally Blank]

                                      -21-

<PAGE>

       Each of the undersigned has caused this Agreement to be executed and
delivered by its duly authorized officer as an agreement under seal as of the
date first above written.

                                        THE COMPANY:

                                        GEERLINGS & WADE, INC.

                                        By /s/ Huib E. Geerlings
                                          ----------------------------------
                                          Name: Huib E. Geerlings
                                          Title: Chief Executive Officer

                                        THE LENDERS:

                                        /s/ John M. Connors, Jr.
                                        ------------------------------------
                                        John M. Connors, Jr.

                                        /s/ James C. Curvey
                                        ------------------------------------
                                        James C. Curvey

                                        /s/ John J. Remondi
                                        ------------------------------------
                                        John J. Remondi

                                        /s/ Gordon Romer
                                        ------------------------------------
                                        Gordon Romer

                                        /s/ Robert L. Webb
                                        ------------------------------------
                                        Robert L. Webb

<PAGE>

                          SCHEDULE 1-Commitment Amounts

Tranche I Only Lenders             Commitment Amount

John M. Connors, Jr.               $100,000
Gordon Romer                       $100,000

Tranche II Lenders                 Commitment Amount

James C. Curvey                    $200,000
John J. Remondi                    $200,000
Robert L. Webb                     $200,000

<PAGE>

                        SCHEDULE 2-Tranche I Percentages

Lenders                            Tranche I Commitment Percentage

John M. Connors, Jr.               20%
James C. Curvey                    20%
John J. Remondi                    20%
Gordon Romer                       20%
Robert L. Webb                     20%

<PAGE>

                        SCHEDULE 3-Tranche II Percentages

Tranche II Lenders                 Tranche II Commitment Percentage

James C. Curvey                    33.33%
John J. Remondi                    33.33%
Robert L. Webb                     33.33%

<PAGE>

                           SCHEDULE 4-Fee Percentages

Lenders                        Percentage

John M. Connors, Jr.           12.5%
James C. Curvey                25.0%
John J. Remondi                25.0%
Gordon Romer                   12.5%
Robert L. Webb                 25.0%

<PAGE>

                               SCHEDULE 5-Warrants

Lender Name                      Warrants            Number

John M. Connors, Jr.              5,263              W-1
James C. Curvey                  10,526              W-2
John J. Remondi                  10,526              W-3
Gordon Romer                      5,263              W-4
Robert L. Webb                   10,526              W-5

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