Document:

CALIFORNIA               RESIDENTIAL PURCHASE AGREEMENT
ASSOCIATION                 (AND RECEIPT FOR DEPOSIT)
OF REALTORS(R)       For Use With Single Family Residential
                         Property--Attached or Detached

BROKER:  Phillips & Harris Land Brokers AGENT:  Phillips & Harris (707) 963-3644
Prepared using WINForms(TM) software.

Date: November 30, 1999, at St. Helena,  California,  Received From Chalone Wine
Group, Inc.  ("Buyer"),  A Deposit of  Ten-Thousand-and  00/100 Dollars $10,000,
toward  the  Purchase  Of  Property  Situated  in  Rutherford,  County  Of Napa,
California,   Described  As  1865  St.  Helena   Highway   (APN;   027-470-003),
("Property").

1.   FINANCING:  Obtaining the loans below is a contingency  of this  Agreement.
     Buyer  shall act  diligently  and in good  faith to obtain  the  designated
     loans.  Obtaining  deposit,  down  payment  and  closing  costs  is  not  a
     contingency.

     A.   BUYER  DEPOSIT  shall  be held  uncashed  until  Acceptance  and  then
          deposited  within 3 business days after Acceptance or [ ] ___________,
          [X]  with  Escrow  Holder,  [ ] into  Broker's  trust  account  or [ ]
          ___________,  by Personal  Check [ ]  Cashier's  Check [ ] Cash or [ ]
          ___________________________________________________ $10,000

     B.   INCREASED  DEPOSIT shall be deposited with ___________  within __ Days
          After Acceptance, or [ ] ___________ $___________

     C.   FIRST LOAN IN THE AMOUNT OF $_________________ NEW First Deed of Trust
          in favor of LENDER, encumbering the Property,  securing a note payable
          at maximum  interest of ___% fixed rate,  or ___%  initial  adjustable
          rate  with a maximum  interest  rate cap of ___%,  balance  due in ___
          years. Buyer shall pay loan fees/points not to exceed ___________.  If
          FHA/VA,  Seller shall pay ___% discount points, other fees not allowed
          to be paid by  Buyer,  not to  exceed  $___________,  and the  cost of
          lender required not otherwise  provided for in this Agreement,  not to
          exceed $___________.

     D.   ADDITIONAL FINANCING TERMS: __________________________ $______________
          ----------------------------------------------------------------------
          [ ] seller  financing,  (C.A.R.  Form  SFA-14);  [ ] junior or assumed
          financing, (C.A.R. Form PAA-14, paragraph 5.)

     E.   BALANCE OF PURCHASE PRICE (not  including cost of obtaining  loans and
          other closing  costs) to be deposited  with  $1,690,000  escrow holder
          sufficient time to close escrow.

     F.   TOTAL PURCHASE PRICE $1,700,000

     G.   LOAN CONTINGENCY shall remain in effect until the designated loans are
          funded (or [ ] _____) Days After Acceptance, by which time Buyer shall
          give  Seller  written  notice  of  Buyer's  election  to  cancel  this
          Agreement if Buyer is unable to obtain the designated  loans. If Buyer
          does not give Seller such notice,  the  contingency  of obtaining  the
          designated loans shall be removed by the method specified in paragraph
          16B.)

     H.   LOAN APPLICATIONS;  PREQUALIFIED:  For NEW financing, within 5 (or [ ]
          _____) Days After Acceptance, Buyer shall provide Seller a letter from
          lender or mortgage loan broker  stating  that,  based on the review of
          Buyer's written  application and credit report,  Buyer is prequalified
          for the NEW loan  indicated  above.  If Buyer  fails to  provide  such
          letter within that time, Seller may cancel this Agreement in writing.

     I.   [ ] APPRAISAL  CONTINGENCY:  (If checked) This Agreement is contingent
          upon Property  appraising at no less than the specified total purchase
          price. The Appraisal  contingency  shall remain in effect for the same
          period as specified for the Loan Contingency in paragraph 1G.

     J.   ALL CASH OFFER:  If this is an all cash offer,  Buyer shall,  within 5
          (or  [  ]  _____)  Days  After  Acceptance,   provide  Seller  written
          verification of sufficient funds to close this transaction. Seller may
          cancel this  Agreement  in writing  within 5 Days  After:  (1) time to
          provide verification  expires, if Buyer fails to provide verification;
          or (2) receipt of verification, if Seller reasonably disapproves it.

2.   ESCROW:  Close of Escrow shall occur X See Addendum  Days After  Acceptance
     (or [ ] on _____  (date)).  Buyer and Seller shall  deliver  signed  escrow
     instructions  consistent  with this  Agreement  [X]  within  90 Days  After
     Acceptance,  [ ] at least  _______  Days  before  Close of  Escrow,  or [ ]
     _________________.  Seller shall  deliver  possession  and occupancy of the
     Property  to Buyer at [ ] on the date of Close of  Escrow,  or [ ] no later
     than  __________  Days After date of Close of Escrow,  or [X] see  Contract
     Amendment #1. Property shall be vacant, unless otherwise agreed in writing.
     If transfer of title and  possession  do not occur at the same time,  Buyer
     and Seller are advised to (a) consult with their  insurance  advisors,  and
     (b) enter  into a written  occupancy  agreement.  Escrow  instructions  may
     include matters required to close this transaction which are not covered by
     this Agreement.  The omission from escrow  instructions of any provision in
     this Agreement shall not constitute a waiver of that provision.

3.   OCCUPANCY:  Buyer [X]  does,  [ ] does not,  intend to occupy  Property  as
     Buyer's primary residence.

4.   ALLOCATION OF COSTS: (Check boxes which apply. If needed, insert additional
     instructions in blank lines.)

        TRANSFER FEES:

     A. [X] Buyer [ ] Seller shall pay County transfer tax or transfer fee. ____
        -------------------------.

     B. [ ] Buyer [ ] Seller shall pay City transfer tax or transfer fee. ______
        -------------------------.

     C. [ ] Buyer [ ] Seller shall pay Homeowners' Association transfer fee. ___
        -------------------------.

        TITLE AND ESCROW COSTS:

     D. [X] Buyer [ ]  Seller  shall pay for  owner's  title  insurance  policy,
        issued by First American Title company.

     E. [X] Buyer [ ] Seller shall pay escrow fee. _______________ Escrow holder
        shall be First American Title.

        SEWER/SEPTIC/WELL COSTS:

     F. [ ] Buyer [ ] Seller shall pay for sewer connection,  if required by Law
        prior to Close of Escrow.

     G. [X] Buyer [ ] Seller shall pay to have septic or private sewage disposal
        system inspected. ___________________.

     H. [X] Buyer [ ] Seller shall pay to have wells  tested for water  quality,
        potabilty, productivity, and recovery rate. ____________________________

        OTHER COSTS:

     I. [ ]  Buyer  [X]  Seller  shall  pay  zone  disclosures  reports,  if any
        (paragraph 7). _____________________________________

     J. [X] Buyer [ ] Seller shall pay for Smoke  Detector  Installation  and/or
        Water Heater bracing. ___________________________ Seller, prior to close
        of escrow,  shall  provide  Buyer a written  statement of  compliance in
        accordance with state and local Law, unless exempt.

     K. [ ] Buyer [X] Seller  shall  pay the cost of  compliance  with any other
        minimum mandatory government retrofit standards and inspections required
        as a condition of closing escrow under any Law. ________________________

     L. [ ] Buyer [ ] Seller  shall  pay the cost of a  one-year  home  warranty
        plan,  issued  by   __________________,   with  the  following  optional
        coverage: ________________________. Policy cost not to exceed $0.00.

        PEST CONTROL REPORT:

     M. [X] Buyer [ ] Seller shall pay for the Pest Control  Report  ("Report"),
        which shall be prepared by Buyers Choice,  a registered  structural pest
        control company.

     N. [X]  Buyer  [ ]  Seller  shall  pay  for  work  recommended  to  correct
        conditions described in the Report as "Section 1,".

     O. [X]  Buyer  [ ]  Seller  shall  pay  for  work  recommended  to  correct
        conditions  described  in the Report as  "Section  2," if  requested  by
        Buyer.

        Buyer and Seller acknowledge receipt of copy of this page, which
                         constitutes Page 1 of 6 Pages.

           Buyer's Initials (TBS) Seller's Initials (BME)

THIS  FORM  HAS BEEN  APPROVED  BY THE  CALIFORNIA  ASSOCIATION  OF  REALTORS(R)
(C.A.R.).  NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY
PROVISION  IN ANY  SPECIFIC  TRANSACTION.  A REAL  ESTATE  BROKER IS THE  PERSON
QUALIFIED  TO ADVISE ON REAL  ESTATE  TRANSACTIONS. IF YOU  DESIRE  LEGAL OR TAX
ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL.

The copyright laws of the United States (17 U.S.  Code) forbid the  unauthorized
reproduction  of this form by any means,  including  facsimile  or  computerized
formats.

Copyright (C) 1997, CALIFORNIA ASSOCIATION OF REALTORS(R)

R I  Published and distribed by:
E N  REAL ESTATE BUSINESS SERVICES, INC.
B C  a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS(R)
G    525 South Virgil Avenue, Los Angeles, California 90020

                                                             OFFICE USE ONLY

                                                       Reviewed by Broker
                                                       or Designee _____________
                                                       Date ____________________

                    American Software Systems (714) 727-0444

             RESIDENTIAL PURCHASE AGREEMENT AND RECEIPT FOR DEPOSIT
                        (RPA-14 PAGE 1 OF 5) REVISED 5/97

<PAGE>

Property Address: 1865 St. Helena Highway, Rutherford (APN: 027-470-003)
                                                         Date: November 30, 1999

5.   PEST CONTROL TERMS:

     A.  The Report shall cover the main building and attached  structures  and,
         if checked [ ] detached garages and carports,  [ ] detached  decks, [ ]
         the following other structures on the Property: ___________________.

     B.  If  Property  is a  unit  in a  condominium,  planned  development,  or
         residential stock cooperative, the Report shall cover only the separate
         interest and any exclusive-use  areas being transferred,  and shall not
         cover common areas, unless otherwise agreed.

     C.  If inspection of inaccessible areas is recommended in the Report, Buyer
         has the option,  within 5 Days After  receipt of the Report,  either to
         accept and approve the Report by the method specified in paragraph 16B,
         or to request in writing that further  inspection  be made.  If further
         inspection  recommends  "Section 1" and/or "Section 2" corrective work,
         such  work,  and the cost of  inspection,  entry,  and  closing  of the
         inaccessible  areas, the cost of the inspection,  entry, and closing of
         those areas shall be paid for by Buyer.

     D.  If no infestation or infection by wood destroying pests or organisms is
         found,  the Report shall include a written Pest Control  Certification.
         Certification  shall  be  issued  prior  to  Close  of  Escrow,  unless
         otherwise agreed in writing.

     E.  Inspections,  corrective  work and Pest Control  Certification  in this
         paragraph  refers only to the  presence  or absence of wood  destroying
         pests  or  organisms,  and  does  not  include  the  condition  of roof
         coverings. Read paragraphs 9 and 12 concerning roof coverings.

     F.  Nothing in this  paragraph 5 shall relieve  Seller or the obligation to
         repair or replace shower pans and shower  enclosures  due to leaks,  if
         required by paragraph  9B(3).  Water test of shower pans on upper level
         units may not be  performed  unless  the owners of  property  below the
         shower consent.

6.   TRANSFER DISCLOSURE STATEMENT; SUBSEQUENT DISCLOSURES; MELLO-ROOS NOTICE:

     A.  Within 5 (or [ ] ___) Days  After  Acceptance,  unless  exempt,  a Real
         Estate  Transfer  Disclosure  Statement  ("TDS") shall be completed and
         delivered to Buyer, who shall sign and return a copy of it to Seller.

     B.  In the event Seller, prior to Close Of Escrow, becomes aware of adverse
         conditions   materially   affecting  the  Property,   or  any  material
         inaccuracy in disclosures,  information,  or representations previously
         provided  to Buyer  (including  those made in a TDS) of which  Buyer is
         otherwise  unaware,  Seller  shall  promptly  provide a  subsequent  or
         amended disclosure,  in writing,  covering those items except for those
         conditions and material  inaccuracies  disclosed in reports obtained by
         Buyer.

     C.  Seller  shall make a good faith  effort to obtain a  disclosure  notice
         from any  local  agencies  which  levy a  special  tax on the  Property
         pursuant to the Mello-Roos Community Facilities Act, and shall promptly
         deliver to Buyer any such notice made available by those agencies.

     D.  If the TDS,  the  Mello-Roos  disclosure  notice,  or a  subsequent  or
         amended  disclosure  is  delivered  to Buyer after the offer is signed,
         Buyer shall have the right to terminate  this  Agreement  within 3 days
         after  delivery in person,  or 5 days after  delivery by deposit in the
         mail, by giving  written  notice of  termination  to Seller or Seller's
         agent.

7.   DISCLOSURES:  Within the time  specified  in  paragraph  16,  Seller  shall
     provide  to Buyer  the  following  disclosures  and  information,  take the
     following actions,  and disclose material facts pertaining to the following
     conditions.  Buyer shall then,  within the time  specified in paragraph 16,
     investigate the disclosures and information,  and provide written notice to
     Seller of any item disapproved.

     A.  PROPERTY  DISCLOSURES:  Earthquake  Fault Zones,  Seismic  Hazard Zones
         (when available), Special Flood Hazard Areas, State Fire Responsibility
         Areas, Earthquake Guides,  Lead-Based Paint Disclosures,  Environmental
         Hazards Booklet, and Energy Efficiency Booklet (when published), or any
         other federal,  state, or locally  designated zone for which disclosure
         is required by Law.

     B.  CONDOMINIUM/COMMON  INTEREST  SUBDIVISION:  If  Property is a unit in a
         condominium, planned development, or other common interest subdivision,
         Seller shall request from the Homeowners' Association ("HOA"), and upon
         receipt  provide to Buyer, a statement  indicating any current  regular
         dues and  assessments;  known pending  regular or special  assessments,
         claims,  or  litigation  and the  location  and number of  parking  and
         storage  spaces;  copies of covenants,  conditions,  and  restrictions;
         articles of incorporation;  "by-laws",  other governing documents; most
         current financial  statement  distributed;  statement regarding limited
         enforceability  of  age  restrictions,   if  applicable;   current  HOA
         statement showing any unpaid assessments;  any other documents required
         by Law,  and the most  recent 12 months of HOA  minutes for regular and
         special meetings, if available.

     C.  NOTICE  OF  VIOLATION:  If prior to Close Of  Escrow,  Seller  receives
         notice  or is made  aware of any  notice  filed or issued  against  the
         Property,  of violations of city,  county,  state, or federal building,
         zoning,  fire, or health Laws, Seller shall immediately notify Buyer in
         writing.  Buyer  shall,  within the time  specified  in  paragraph  16,
         provide written notice to Seller of any items disapproved.

B.   TITLE AND VESTING:

     A.  Within the time  specified in paragraph  16A, Buyer shall be provided a
         current preliminary (title) report (which is only an offer by the title
         insurer to issue a policy of title insurance, and may not contain every
         item  affecting  title).  Buyer  shall,  within the time  specified  in
         paragraph 16, provide written notice to Seller of any items  reasonably
         disapproved.

     B.  At Close Of Escrow,  Buyer shall receive a grant deed  conveying  title
         (or,  for  stock  cooperative,  an  assignment  of stock  certificate),
         including oil,  mineral and water rights if currently  owned by Seller.
         Title  shall be  subject  to all  encumbrances,  easements,  covenants,
         conditions, restrictions, rights, and other matters which are of record
         or disclosed to Buyer prior to Close Of Escrow,  unless  disapproved in
         writing by Buyer within the time  specified in paragraph  16.  However,
         title shall not be subject to any liens  against the  Property,  except
         for those  specified in the  Agreement.  Buyer shall  receive an ALTA-R
         owner's title insurance policy, if reasonably available.  If not, Buyer
         shall receive a standard  coverage  owner's  policy (e.g.  CLTA or ALTA
         with regional exceptions). Buyer shall pay for Lender's title insurance
         policy.  Title shall vest as designated in Buyer's escrow instructions.
         The title company,  at Buyer's request,  can provide  information about
         availability,   desirability   and  cost  of  various  title  insurance
         coverages.  THE MANNER OF TAKING TITLE MAY HAVE  SIGNIFICANT  LEGAL AND
         TAX CONSEQUENCES.

9.   NO WARRANTIES EXCEPT AS SPECIFIED:

     A.  EXCEPT AS SPECIFIED BELOW, AND ELSEWHERE IN THIS AGREEMENT, Property is
         sold "AS IS", in its present physical condition.

     B.  (IF  CHECKED)  SELLER  WARRANTS  THAT AT THE  TIME  POSSESSION  IS MADE
         AVAILABLE TO BUYER:

     [ ]     (1) Roof  shall be free of leaks  KNOWN   to Seller  or  DISCOVERED
             during escrow.

     [ ]     (2) Built-in appliances (including  free-standing  oven  and range,
             if included in sale), heating, air conditioning, electrical, water,
             sewer and pool/spa systems, if any, shall be repaired,  if KNOWN by
             Seller to be  inoperative  or  DISCOVERED  to be so during  escrow.
             (Septic/Well  systems  are  not  covered  in this  paragraph.  Read
             paragraphs 4G and H.)

     [ ]     (3) Plumbing systems,  shower  pans  and shower enclosures shall be
             free of leaks KNOWN to Seller or DISCOVERED during escrow.

     [ ]     (4) All fire,  safety,   and  structural  defects in  chimneys  and
             fireplaces  KNOWN to Seller or  DISCOVERED  during  escrow shall be
             repaired.

     [ ]     (5) All broken or cracked  glass,  torn existing  window  and  door
             screens,  and broken  seals  between  multi-pane  windows  shall be
             replaced.

     [ ]     (6) All debris and all personal property  not included in  the sale
             shall be removed.

     [X] (7) As Is

     C.  PROPERTY  MAINTENANCE:  Unless otherwise  agreed,  Property,  including
         pool,   spa,   landscaping   and  grounds,   is  to  be  maintained  in
         substantially the same condition as on the date of Acceptance.

     D.  PROPERTY  IMPROVEMENTS  may not (a) be built  according  to codes or in
         compliance with Law, or (b) have had permits issued.

     E.  INSPECTIONS AND DISCLOSURES:  Items  discovered in Buyer's  Inspections
         which  are not  covered  by  paragraph  9B,  shall be  governed  by the
         procedure  in  paragraphs  12  and  16.  Buyer  retains  the  right  to
         disapprove the condition of the Property based upon items discovered in
         Buyer's  Inspections.  Disclosures  in the TDS and items  discovered in
         Buyer's  inspections  do  NOT  eliminate  Seller's   obligations  under
         paragraph 9B,  unless  specifically  agreed in writing.  WHETHER OR NOT
         SELLER  WARRANTS  ANY ASPECT OF THE  PROPERTY,  SELLER IS  OBLIGATED TO
         DISCLOSE KNOWN MATERIAL FACTS AND TO MAKE OTHER DISCLOSURES REQUIRED BY
         LAW.

Buyer and Seller  acknowledge  receipt of copy of this page,  which  constitutes
Page 2 of 6 Pages.

Buyer's Initials (TBS)   Seller's Initials (BME)

                                                    OFFICE USE ONLY
                                                   Reviewed by Broker
                                                   or Designee _______
                                                   Date ________________
                                       _________________________________________

                                                                            LOGO

                                                                   EQUAL HOUSING
                                                                     OPPORTUNITY

  RESIDENTIAL PURCHASE AGREEMENT AND RECEIPT FOR DEPOSIT (RPA-14 PAGE 2 OF 5)
                                  REVISED 5/97

--------------------------------------------------------------------------------
BROKER: Phillips & Harris Land Brokers  AGENT: Phillips & Harris (707) 963-3644
                      Prepared using WINForms(TM) software

--------------------------------------------------------------------------------
<PAGE>

Property Address: 1865 St. Helena Highway,  Rutherford (APN: 027-470-027;  028 &
029) SFAP Date: November 30, 1999

10.  FIXTURES:  ALL  EXISTING  fixtures  and  fittings  that are attached to the
     Property, or for which special openings have been made, are INCLUDED IN THE
     PURCHASE PRICE (unless  excluded  below),  and shall be transerred  free of
     liens and "AS IS," unless specifically  warranted.  Fixtures shall include,
     but are not limited to, existing electrical, lighting, plumbing and heating
     fixtures, fireplace inserts, solar systems, built-in appliances, window and
     door screen, awnings, shutters, window coverings, attached floor coverings,
     television  antennas,  satellite  dishes  and  related  equipment,  private
     integrated telephone systems, air coolers/conditioners, pool/spa equipment,
     water softeners (if owned by Seller),  security  system/alarms (if owned by
     Seller),   garage  door   openers/remote   controls,   attached   fireplace
     equipment,  mailbox, in-ground landscape including trees/shrubs,  and
     ___________________________.

     FIXTURES EXCLUDED: __________________________.

11.  PERSONAL PROPERTY: The following items of personal property,  free of liens
     and "AS IS," unless  specifically  warranted  are  INCLUDED IN THE PURCHASE
     PRICE: ___________________________________________________________________.

12.  BUYER'S  INVESTIGATION  OF PROPERTY  CONDITION:  Buyer's  Acceptance of the
     condition of the Property is a contingency of this Agreement,  as specified
     in this paragraph and paragraph 16. Buyer shall have the right,  at Buyer's
     expense, to conduct inspections,  investigations, tests, surveys, and other
     studies  ("Inspections"),  including  the right to inspect  for  lead-based
     paint  and  other  lead  hazards.  No  Inspections  shall  be  made  by any
     governmental  building or zoning  inspector or government  employee without
     Seller's prior written consent, unless required by Law. Buyer shall, within
     the time specified in paragraph 16,  complete these  Inspections and notify
     Seller in writing of any items  reasonably  disapproved.  Seller shall make
     Property available for all Inspections. Buyer shall: keep Property free and
     clear of liens;  indemnify  and hold Seller  harmless  from all  liability,
     claims,  demands,  damages,  and costs; and repair all damages arising from
     Inspections.  Buyer shall carry,  or Buyer shall  require  anyone acting on
     Buyer's behalf to carry, policies of liability, worker's compensation,  and
     other applicable insurance,  defending and protecting Seller from liability
     for any injuries to persons or property  occurring  during any work done on
     the  Property  at Buyer's  direction,  prior to Close of Escrow.  Seller is
     advised  that  certain  protections  may be afforded  Seller by recording a
     notice of  non-responsibility  for work  done on the  Property  at  Buyer's
     direction.  At  Seller's  request  Buyer  shall  give  Seller,  at no cost,
     complete copies of all Inspection  reports obtained by Buyer concerning the
     Property.  Seller  shall have water,  gas, and  electricity  on for Buyer's
     Inspections, and through the date possession is made available to Buyer.

13.  FINAL WALK-THROUGH;  VERIFICATION OF CONDITION:  Buyer shall have the right
     to make a final  inspection  of the  Property  within 5 (or [ ] _____) Days
     prior to Close Of Escrow,  NOT AS A CONTINGENCY  OF THE SALE, but solely to
     confirm  that Repairs  have been  completed as agreed in writing,  and that
     Seller has complied with Seller's other obligations.

14.  PRORATIONS AND PROPERTY TAXES:  Unless otherwise  agreed in  writing,  real
     property  taxes and  assessments,  interest,  rents,  HOA regular  dues and
     regular  assessments,  premiums on insurance assumed by Buyer,  payments on
     bonds and  assessments  assumed by Buyer,  payments on Mello-Roos and other
     Special Assessment District bonds and assessments which are now a lien, and
     payments on HOA bonds and special assessments which have been imposed prior
     to Close Of Escrow,  shall be PAID CURRENT and prorated  between  Buyer and
     Seller as of Close Of Escrow, except: ____________________________________.
     Prorated payments on Mello-Roos and other Special Assessment District bonds
     and assessments and HOA special assessments that are now a lien but not yet
     due,  shall be assumed by Buyer WITHOUT  CREDIT toward the purchase  price.
     Property will be reassessed upon change of ownership.  Any supplemental tax
     bills shall be paid as follows:  (1) For periods after Close Of Escrow,  by
     Buyer; and, (2) For periods prior to Close Of Escrow, by Seller.  TAX BILLS
     ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED  DIRECTLY  BETWEEN  BUYER AND
     SELLER.

15.  SALE OF BUYER'S PROPERTY:

     A.   This  Agreement is NOT contingent  upon the sale of Buyer's  property,
          unless paragraph 15B is checked.

OR   B.   [ ] (If checked)  This  Agreement IS CONTINGENT on the Close Of Escrow
          of Buyer's property, described as (address) __________________________
          ("Buyer's  Property"), which is (if  checked) [ ] listed for sale with
          ___________________________ Company, and/or (if checked) [ ] in Escrow
          No.   ________________________________   with  _______________________
          Escrow Holder,  scheduled to Close Escrow on _________  (date).  Buyer
          shall deliver to Seller,  within 5 Days After Seller's request, a copy
          of the contract for the sale of Buyer's Property, escrow instructions,
          and all amendments and modifications thereto. If Buyer's Property does
          not  close  escrow by the date  specified  for Close Of Escrow in this
          paragraph,  then either  Seller or Buyer may cancel this  Agreement in
          writing.

          (Check ONLY 1 or 2; do NOT check both.) After Acceptance:

          [ ] (1) Seller  SHALL have the right to continue to offer the Property
          for sale. If Seller accepts another  written offer,  Seller shall give
          Buyer written notice to (a) remove this  contingency  in writing,  (b)
          provide written  verification  of sufficient  funds to close escrow on
          this sale  without the sale of Buyer's  Property,  and (c) comply with
          the following additional requirement(s) ______________________________
          ______________________________________________________________________
          If Buyer fails to  complete  those  actions  within ____ hours or ____
          Days After receipt of such notice, Seller may cancel this Agreement in
          writing.

          [ ] (2)  Seller  shall  not have the  right to  continue  to offer the
          Property for sale, except for back-up offers.

16.  TIME   PERIODS;   INSPECTIONS;   SATISFACTION/REMOVAL   OF   CONTINGENCIES;
     DISAPPROVAL/CANCELLATION RIGHTS:

     A.   TIME PERIODS:  This following time periods shall apply, unless changed
          by mutual written agreement:

          (1)  SELLER HAS: 5 (or [ ]___) Days After Acceptance (a) to deliver to
               Buyer all reports,  disclosures, and information for which Seller
               is  responsible  under  paragraphs 4G, 4H, 4M, and 7A; and (b) to
               request and 2 Days After receipt to provide to Buyer all reports,
               disclosures,  and  information  for which  Seller is  responsible
               under paragraph 7B and 8.

          (2)  BUYER HAS: (a) 10 (or [X] 60) Days After  Acceptance  to complete
               all Inspections (including,  if applicable,  inspections for wood
               destroying  pests or organisms under  paragraph 4M and lead-based
               paint and lead hazards under  paragraph 12),  investigations  and
               review of  reports  and  other  applicable  information,  with an
               additional 7 Days to complete geologic  inspections.  WITHIN THIS
               TIME, Buyer must either disapprove in writing any items which are
               unacceptable to Buyer or remove the  contingency  associated with
               such  disapproval  right,  by the  active or passive  method,  as
               specified  below; (b) 5 (or _____) Days After receipt of (i) each
               of the items in  paragraph  16A(1);  and (ii)  notice of code and
               legal  violations  under  paragraph  7C, to either  disapprove in
               writing any items which are  unacceptable to Buyer, or remove the
               contingency  associated with such disapproved right by the active
               or passive method as specified below.

          (3)  SELLER'S  RESPONSE TO BUYER'S  DISAPPROVALS:  Seller shall have 5
               (or [ ] _____) Days After  receipt of Buyer's  written  notice of
               items  reasonably  disapproved  to respond in writing.  If Seller
               refuses or is unable to make  repairs to, or  correct,  any items
               reasonably  disapproved  by Buyer,  or if Seller does not respond
               within  the time  period  specified,  Buyer  shall have 5 (or [ ]
               _____)  Days After  receipt of  Seller's  response,  or after the
               expiration  of the time for Seller to respond,  whichever  occurs
               first, to cancel this Agreement in writing.

     B.   ACTIVE OR PASSIVE REMOVAL OF BUYER'S CONTINGENCIES:

          (1)  [X] ACTIVE  METHOD  (APPLIES IF CHECKED):  If Buyer does not give
               Seller written notice of items reasonably disapproved, removal of
               contingencies,   or   cancellation,   within  the  time   periods
               specified,  Seller shall have the right to cancel this  Agreement
               by giving written notice to Buyer.

          (2)  PASSIVE  METHOD  (Applies  UNLESS Active  Method is checked):  If
               Buyer does not give  Seller  written  notice of items  reasonably
               disapproved,  or of  removal  of  contingencies  or  cancellation
               within the time periods specified,  Buyer shall be deemed to have
               removed the contingency associated with the disapproval right, or
               waived the  contingency and the right to take those actions or to
               cancel.

     C.   EFFECT OF  CONTINGENCY  REMOVAL:  If Buyer removes any  contingency or
          cancellation  right by the active or passive  method,  as  applicable,
          Buyer  shall  conclusively  be  deemed  to  have:  (1)  Completed  all
          Inspections,   investigations,   and  review  of  reports   and  other
          applicable  information and disclosures pertaining to that contingency
          or cancellation  right;  (2) Elected to proceed with the  transaction;
          and,  (3)  Assumed  all  liability,  responsibility,  and  expense for
          repairs or corrections  pertaining to that contingency or cancellation
          right,  or for  inability  to  obtain  financing  if  the  contingency
          pertains to  financing,  except for items  which  Seller has agreed in
          writing to repair or correct.

Buyer and Seller  acknowledge  receipt of copy of this page,  which  constitutes
Page 3 of 6 Pages.

Buyer's Initials (TBS)   Seller's Initials (BME)

                                                             OFFICE USE ONLY

                                                       Reviewed by Broker
                                                       or Designee _____________
                                                       Date ____________________

                    American Software Systems (714) 727-0444

             RESIDENTIAL PURCHASE AGREEMENT AND RECEIPT FOR DEPOSIT
                       (RPA-14 PAGE 3 OF 5) REVISED 5/97

--------------------------------------------------------------------------------
BROKER: Phillips & Harris Land Brokers  AGENT: Phillips & Harris (707) 963-3644
                      Prepared using WINForms(TM) software
--------------------------------------------------------------------------------

<PAGE>

Property Address: 1865 St. Helena Highway, Rutherford (APN: 027-470-003)
                                                         Date: November 30, 1999

     D.  CANCELLATION  OF  SALE/ESCROW;  RETURN OF DEPOSITS:  If Buyer or Seller
         gives written NOTICE OF CANCELLATION  pursuant to rights duly exercised
         under  the terms of this  Agreement,  Buyer  and  Seller  agree to sign
         mutual instructions to cancel the sale and escrow and release deposits,
         less fees and costs, to the party entitled to the funds. Fees and costs
         may be  payable to service  providers  and  vendors  for  services  and
         products provided during escrow.  Release of funds will require mutual,
         signed  release  instructions  from  both  Buyer and  Seller,  judicial
         decision,  or  arbitration  award.  A party may be  subject  to a civil
         penalty of up to $1,000 for  refusal to sign such  instructions,  if no
         good faith dispute exists as to who is entitled to the deposited  funds
         (Civil Code s.s.1057.3).

17.  REPAIRS:  Repairs under this Agreement shall be completed prior to Close Of
     Escrow,  unless  otherwise  agreed  in  writing.  Work to be  performed  at
     Seller's  expense may be  performed by Seller or through  others,  provided
     that work complies with applicable  laws,  including  governmental  permit,
     inspection,  and  approval  requirements.  Repairs  shall be performed in a
     skillful manner with materials of quality comparable to existing materials.
     It is understood  that exact  restoration  of appearance or cosmetic  items
     following all Repairs may not be possible.

18.  WITHHOLDING  TAXES:  Seller and Buyer  agree to  execute  and  deliver  any
     instrument,  affidavit,  statement,  or insruction  reasonably necessary to
     comply with state and federal withholding Laws, if required.  (For example,
     C.A.R. FIRPTA and California compliance Forms AS-14 and AB-11.)

19.  KEYS:  At the time  possession  is made  available  to Buyer,  Seller shall
     provide  keys  and/or  means to  operate  all  Property  locks,  mailboxes,
     security  systems,  alarms,  and garage door openers.  If the Property is a
     unit in a conominium or subdivision, Buyer may be required to pay a deposit
     to the HOA to obtain keys to accessible HOA facilities.

20.  LIQUIDATED  DAMAGES:  If Buyer fails to complete this purchase by reason of
     any default of Buyer, Seller shall retain, as liquidated damages for breach
     of  contract,  the deposit  actually  paid.  However,  if the Property is a
     dwelling  with no more than  four  units,  one of which  Buyer  intends  to
     occupy,  then the amount  retained shall be no more than 3% of the purchase
     price.  Any excess shall be returned to Buyer.  Buyer and Seller shall also
     sign a separate  liquidated  damages  provision for any increased  deposit.
     (C.A.R. Form RID-11 shall fulfill this requirement.)

                                      Buyer's Initials TBS Seller's Initials BME

21.  DISPUTE RESOLUTION:

     A.  MEDIATION:  Buyer and  Seller  agree to  mediate  any  dispute or claim
         arising  between  them  out  of  this   Agreement,   or  any  resulting
         transaction,  before resorting to arbitration or court action,  subject
         to paragraphs 21C and D below. Mediation fees, if any, shall be divided
         equality among the parties  involved.  If any party commences an action
         based on a dispute or claim to which this  paragraph  applies,  without
         first  attempting to resolve the matter  through  mediation,  then that
         party shall not be entitled to recover  attorney's  fees,  even if they
         would  otherwise be  available  to that party in any such action.  THIS
         MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS
         INITIALED.

     B.  ARBITRATION  OF  DISPUTES:  Buyer and Seller  agree that any dispute or
         claim in Law or equity  arising  between them out of this  Agreement or
         any  resulting  transaction,  which is not settled  through  mediation,
         shall  be  decided  by  neutral,   binding  arbitration,   subject   to
         paragraphs 21C and D below.  The arbitrator shall be a retired judge or
         justice,  unless the parties mutually agree to a different  arbitrator,
         who shall render an award in  accordance  with  substantive  California
         Law. In all other  respects,  the  arbitration  shall be  conducted  in
         accordance  with  Part  III,  Title 9 of the  California  Code of Civil
         Procedure. Judgment  upon the award of the arbitrator(s) may be entered
         in any court having  jurisdiction.  The parties shall have the right to
         discovery in accordance with Code of Civil Prodecure s.s.1283.05.

         "NOTICE:  BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY
         DISPUTE  ARISING OUT OF THE MATTERS  INCLUDED  IN THE  'ARBITRATION  OF
         DISPUTES'  PROVISION  DECIDED BY NEUTRAL  ARBITRATION  AS  PROVIDED  BY
         CALIFORNIA  LAW AND YOU ARE GIVING UP ANY  RIGHTS YOU MIGHT  POSSESS TO
         HAVE THE DISPUTE  LITIGATED IN A COURT OR JURY TRIAL.  BY INITIALING IN
         THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND
         APPEAL,   UNLESS  THOSE  RIGHTS  ARE   SPECIFICALLY   INCLUDED  IN  THE
         'ARBITRATION  OF  DISPUTES'  PROVISION.  IF YOU  REFUSE  TO  SUBMIT  TO
         ARBITRATION  AFTER AGREEING TO THIS PROVISION,  YOU MAY BE COMPELLED TO
         ARBITRATE   UNDER  THE  AUTHORITY  OF  THE  CALIFORNIA  CODE  OF  CIVIL
         PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY."

         "WE  HAVE  READ AND  UNDERSTAND  THE  FOREGOING  AND  AGREE TO  SUBMIT
         DISPUTES  ARISING OUT OF THE MATTERS  INCLUDED IN THE  'ARBITRATION OF
         DISPUTES' PROVISION TO NEUTRAL ARBITRATION."

                                      Buyer's Initials TBS Seller's Initials BME

     C.  EXCLUSIONS FROM MEDIATION AND  ARBITRATION:  The following  matters are
         excluded from  Mediation and  Arbitration  hereunder: (a) A judicial or
         non-judicial  foreclosure  or other action or  proceeding  to enforce a
         deed of trust,  mortgage,  or installment land sale contract as defined
         in Civil Code s.s.2985; (b) An unlawful detainer action; (c) The filing
         or enforcement of a mechanic's lien; (d) Any matter which is within the
         jurisdiction of a probate, small claims or bankruptcy court; and (e) An
         action for bodily  injury or  wrongful  death,  or for latent or patent
         defects  to  which  Code of Civil  Procedure  s.s.337.1  or  s.s.337.15
         applies.  The  filing of a court  action to enable the  recording  of a
         notice  of  pending  action,  for  order or  attachment,  receivership,
         injunction,  or other  provisional  remedies,  shall not  constitute  a
         violation of the mediation and arbitration provisions.

     D.  BROKERS:  Buyer and seller agree to mediate and  arbitrate  disputes or
         claims  involving  either  or both  Brokers,  provided  either  or both
         Brokers shall have agreed to such mediation or  arbitration,  prior to,
         or within a reasonable  time after the dispute or claim is presented to
         Brokers.  Any  election  by either or both  Brokers to  participate  in
         mediation  or  arbitration  shall not  result in Brokers  being  deemed
         parties to the purchase and sale Agreement.

22. DEFINITIONS: As used in this Agreement:

     A.  "Acceptance"  means  the time  the  offer  or  final  counter  offer is
         accepted by the other party,  in  accordance  with  paragraph 30 of the
         Ageement or the terms of the final counter offer.

     B.  "Agreement" means the terms and conditions of this Residential Purchase
         Agreement and any counter offer.

     C.  "Days" means calendar days, unless otherwise required by Law.

     D.  "Days After ..." means the specified  number of calendar days after the
         occurrence of the event  specified,  not counting the  calendar date on
         which the specified event occurs.

     E.  "Close of Escrow"  means the date the grant deed, or other  evidence of
         transfer of title, is recorded.

     F.  "Law" means any law, code,  statute,  ordinance,  regulation,  or rule,
         which is  adopted  by a  controlling  city,  county,  state or  federal
         legislative or judicial body or agency.

     G.  "Repairs"   means   any   repairs,   alterations,    replacements,   or
         modifications, (including pest control work) of the Property.

     H.  "Pest  Control  Certification"  means  a  written  statement  made by a
         registered  structural  pest  control  company  that  on  the  date  of
         inspection or re-inspection, the Property is "free" or is "now free" of
         "evidence of active infestation in the visible and accessible areas."

     I.  Singular and Plural terms each include the other, when appropriate.

23. MULTIPLE LISTING SERVICE ("MLS"): Brokers are authorized to report the terms
    of this  transaction to any MLS, to be published and disseminated to persons
    authorized to use the information on terms approved by the MLS.

Buyer and Seller  acknowledge  receipt of copy of this page,  which  constitutes
Page 4 of 6 Pages.

        Buyer's Initials (TBS)   Seller's Initials (BME)  (______)

        American Software Systems (714) 727-0444          --OFFICE USE ONLY--
                                                          Reviewed by BROKER
RESIDENTIAL PURCHASE AGREEMENT AND RECEIPT FOR DEPOSIT    Or Designee ________
         (RPA-14 PAGE 4 OF 5) REVISED 5/97                Date _______________
                                                          --------------------

 BROKER: Phillips & Harris Land Brokers AGENT: Phillips & Harris (707) 963-3644
                     Prepared using WINForms(TM) software.

<PAGE>

Property Address:  1865 St. Helena Highway,  Rutherford (APN: 027-470-027; 028 &
029  Date: November 30, 1999

24.  EQUAL HOUSING OPPORTUNITY: The Property is sold in compliance with federal,
     state, and local anti-discrimination Laws.

25.  ATTORNEY'S FEES: In any action,  proceeding,  or arbitration  between Buyer
     and Seller arising out of this  Agreement,  the prevailing  Buyer or Seller
     shall  be  entitled  to  reasonable  attorney's  fees  and  costs  from the
     non-prevailing Buyer or Seller, except as provided in paragraph 21A.

26.  SELECTION OF SERVICE PROVIDERS;   If Brokers give Buyer or Seller referrals
     to persons, vendors, or service or product providers ("Providers"), Brokers
     do not  guarantee  the  performance  of any of those  Providers.  Buyer and
     Seller may select ANY Providers of their own choosing.

27.  TIME OF ESSENCE;  ENTIRE  CONTRACT;  CHANGES:  Time is of the essence.  All
     understandings between the parties are incorporated in this Agreement.  Its
     terms are  intended  by the  parties as a final,  complete,  and  exclusive
     expression of their agreement with respect to its subject  matter,  and may
     not be contradicted  by evidence of any prior agreement or  contemporaneous
     oral  agreement.  This  Agreement  may not be extended, amended,  modified,
     altered, or changed, except in writing signed by Buyer and Seller.

28.  OTHER TERMS AND CONDITIONS, including ATTACHED SUPPLEMENTS:

        [ ] Buyer Inspection Advisory (C.A.R. Form BIA-14)

        [ ] Purchase Agreement Addendum (C.A.R. Form PAA-14, paragraph_________)

        See Contract Addendum #1.

29.  AGENCY   CONFIRMATION:   The  following  agency  relationships  are  hereby
     confirmed for this transaction:

     Listing  Agent:  Phillips & Harris  Land  Brokers  (Print Firm Name) is the
     agent of (check one):

     [ ] the Seller exclusively; or [X] both the Buyer and Seller.

     Selling  Agent:  ___________________  (Print  Firm  Name)  (if not  same as
     Listing Agent) is the agent of (check one):

     [ ] the Buyer exclusively;  or [ ] the Seller exclusively;  or [ ] both the
     Buyer and Seller.

     Real  Estate  Brokers are not parties to the  Agreement  between  Buyer and
     Seller.

30.  OFFER:  This is an offer to  purchase  the  Property on the above terms and
     conditions. All paragraphs with spaces for initials by Buyer and Seller are
     incorporated  in this  Agreement  only if initialed  by all parties.  If at
     least one but not all parties  initial,  a counter offer is required  until
     agreement is reached. Unless Acceptance of Offer is signed by Seller, and a
     signed copy  delivered in person,  by mail,  or facsimile,  and  personally
     received  by  Buyer,  or by  Phillips  &  Harris  (707)  963-3644,  who  is
     authorized  to receive it,  by  December 1, 1999 (date),  at  5:00 PM,  the
     offer shall be deemed revoked and the deposit shall be returned.  Buyer has
     read and  acknowledges  receipt  of a copy of the offer  and  agrees to the
     above confirmation of agency  relationships.  If this offer is accepted and
     Buyer  subsequently  defaults,  Buyer may be  responsible  for  payment  of
     Brokers'  compensation.  This Agreement and any  supplement,  addendum,  or
     modification, including any photocopy or facsimile, may be signed in two or
     more counterparts, all of which shall constitute one and the same writing.

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

Buyer and Seller  acknowledge  and agree that  Brokers:  (a) Do not decide  what
price  Buyer  should  pay or Seller  should  accept;  (b) Do not  guarantee  the
condition of the Property; (c) Shall not be responsible for defects that are not
known to Broker(s)  and are not visually  observable  in  reasonably  accessible
areas of the Property; (d) Do not guarantee the performance or Repairs of others
who have provided  services or products to Buyer or Seller;  (e) Cannot identify
Property boundary lines; (f) Cannot verify inspection reports or representations
of others;  (g) Cannot  provide legal or tax advice;  (h) Will not provide other
advice or  information  that exceeds the  knowledge,  education  and  experience
required to obtain a real estate license.  Buyer and Seller agree that they will
seek legal,  tax,  insurance,  and other  desired  assistance  from  appropriate
professionals.

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

BUYER _Thomas B._Selfridge__    BUYER __________________________

31.  BROKER  COMPENSATION:  Seller  agrees to pay  compensation  for services as
     follows:

to  Phillips  & Harris  Land  Brokers,  Broker,  and  5%___________________,  to
______________________________,  Broker, payable: (a) On recordation of the deed
or other  evidence  of title;  or (b) If  completion  of sales is  prevented  by
default  of Seller,  upon  Seller's  default;  or (c) If  completion  of sale is
prevented  by default of Buyer,  only if and when Seller  collects  damages from
Buyer,  by suit or  otherwise,  and then in an amount  equal to  one-half of the
damages  recovered,  but not to  exceed  the  above  compensation,  after  first
deducting  title and escrow  expenses  and the expenses of  collection,  if any.
Seller hereby  irrevocably  assigns to Brokers such  compensation  from Seller's
proceeds,  and  irrevocably  instructs  Escrow Holder to disburse those funds to
Brokers at close of escrow.  Commission  instructions  can be amended or revoked
only with the  consent of  Brokers.  In any action,  proceeding  or  arbitration
relating  to the payment of such  compensation,  the  prevailing  party shall be
entitled  to  reasonable  attorney's  fees and  costs,  except  as  provided  in
paragraph 21A.

32.  ACCEPTANCE  OF  OFFER:  Seller  warrants  that  Seller is the owner of this
     Property or has the authority to execute this Agreement. Seller accepts the
     above offer, agrees to sell the Property on the above terms and conditions,
     and agrees to the above  confirmation of agency  relationships.  Seller has
     read and acknowledges  receipt of a copy of this Agreement,  and authorizes
     Broker to deliver a signed copy to Buyer.

If checked: [X] SUBJECT TO ATTACHED COUNTER OFFER, DATED 12/8/99.

SELLER Barbara M. Eisele_______________________________________ Date 12/8/99____

SELLER ________________________________________________________ Date ___________

(___/___)  (Initials)  ACKNOWLEDGMENT  OF  RECEIPT:  Buyer or  authorized  agent
acknowledges receipt of signed Acceptance on (date) _________, at ____AM/PM.

Agency  relationships  are  configured  as above.  Real  Estate  Brokers are not
parties to the  Agreement  between  Buyer and  Seller.  Receipt  for  deposit is
acknowledged.

Real  Estate  Broker  (Selling  Firm  Name)  Phillips & Harris  Land  Brokers By
_____________  Date November 30, 1999 Address 1224 Adams Street,  St. Helena, CA
94574-____. Telephone (707) 963-3644 Fax (707) 963-4471.

Agency relationships are confirmed as above. Real Estate Brokers are not parties
to the Agreement between Buyer and Seller.

Real  Estate  Broker  (Listing  Firm  Name)  Phillips & Harris  Land  Brokers By
_____________ Date ______

Address 1224 Adams Street,  St. Helena, CA 94574-____.  Telephone (707) 963-3644
Fax (707) 963-4471.

This form is  available  for use by the entire real estate  industry.  It is not
intended  to  identify  the user as a  REALTOR(R).  REALTOR(R)  is a  registered
collective  membership  mark which may be used only by  members of the  NATIONAL
ASSOCIATION OF REALTORS(R) who subscribe to its Code of Ethics.

OFFICIAL USE ONLY
------------------
Reviewed by Broker
or Designee_______
Date______________
------------------

American Software Systems (714) 727-0444

RESIDENTIAL  PURCHASE  AGREEMENT  AND RECEIPT FOR DEPOSIT  (RPA-14  PAGE 5 OF 5)
REVISED 5/97

BROKER:  Phillips & Harris Land Brokers AGENT:  Phillips & Harris (707) 963-3644
Prepared using WINForms(TM) software.

<PAGE>

                              DISCLOSURE REGARDING
                        REAL ESTATE AGENCY RELATIONSHIPS
                         (As required by the Civil Code)
          CALIFORNIA ASSOCIATION OF REALTORS(R) (C.A.R.) STANDARD FORM
                   PREPARED BY PHILLIPS & HARRIS LAND BROKERS

When you enter into a  discussion  with a real  estate  agent  regarding  a real
estate  transaction,  you should from the outset  understand what type of agency
relationship  or  representation  you  wish  to  have  with  the  agent  in  the
transaction.

                                 SELLER'S AGENT

A Seller's agent under a listing agreement with the Seller acts as the agent for
the Seller only. A Seller's  agent or a subagent of that agent has the following
affirmative obligations:

To the Seller:

         A fiduciary  duty of utmost care,  integrity,  honesty,  and loyalty in
dealings with the Seller.

To the Buyer and the Seller:

         (a)  Diligent  exercise of  reasonable skill and care in performance of
              the agent's duties.

         (b)  A duty of honest and fair dealing and good faith.

         (c)  A duty  to  disclose  all  facts  known  to the  agent  materially
              affecting the value or  desirability  of the property that are not
              known to, or within the diligent attention and observation of, the
              parties.

An agent is not obligated to reveal to either party any confidential information
obtained from the other party that does not involve the  affirmative  duties set
forth above.

                                 BUYER'S AGENT

A selling agent can, with a Buyer's consent, agree to act as agent for the Buyer
only.  In these  situations,  the agent is not the  Seller's  agent,  even if by
agreement the agent may receive  compensation for services  rendered,  either in
full or in part  from the  Seller.  An  agent  acting  only for a Buyer  has the
following affirmative obligations:

To the Buyer:

        A fiduciary  duty of utmost  care,  integrity,  honesty,  and loyalty in
dealings with the Buyer.

To the Buyer and the Seller:

         (a) Diligent  exercise of reasonable  skill and care in  performance of
             the agent's duties.

         (b) A duty of honest and fair dealing and good faith.

         (c) A  duty  to  disclose  all  facts  known  to the  agent  materially
             affecting  the value of  desirability  of the property that are not
             known to, or within the diligent  attention and  observation of the
             parties.

An agent is not obligated to reveal to either party any confidential information
obtained from the other party that does not involve the  affirmative  duties set
forth above.

                     AGENT REPRESENTING BOTH SELLER & BUYER

A real estate  agent,  either acting  directly or through one or more  associate
licensees,  can  legally  be the  agent of both the  Seller  and the  Buyer in a
transaction,  but only with the knowledge and consent of both the Seller and the
Buyer.

In a dual agency situation,  the agent has the following affirmative obligations
to both the Seller and the Buyer:

         (a) A fiduciary duty of utmost care, integrity,  honesty and loyalty in
             the dealings with either Seller or the Buyer.

         (b) Other  duties to the Seller and the Buyer as stated  above in their
             respective sections.

     In  representing  both  Seller and Buyer,  the agent may not,  without  the
     express  permission of the  respective  party,  disclose to the other party
     that the Seller will accept a price less than the listing price or that the
     Buyer will pay a price greater than the price offered.

The above  duties of the agent in a real  estate  transaction  do not  relieve a
Seller or Buyer from the responsibility to protect his or her own interests. You
should carefully read all agreements to assure that they adequately express your
understanding of the  transaction.  A real estate agent is a person qualified to
advise about real estate. If legal or tax advice is desired, consult a competent
professional.

Throughout  your  real  property  transaction  you may  receive  more  than  one
disclosure  form,   depending  upon  the  number  of  agents  assisting  in  the
transaction.  The law requires  each agent with whom you have more than a casual
relationship  to present  you with this  disclosure  form.  You should  read its
contents each time it is presented to you,  considering the relationship between
you and the real estate agent in your specific transaction.

This  disclosure  form includes the  provisions of Sections  2079.13 to 2079.24,
inclusive, of the Civil Code set forth on the reverse hereof. Read it carefully.

WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS DISCLOSURE.

BUYER/SELLER___s/s Thomas Selfridge__   Date Nov. 30, 1999      Time _11:15 AM__

BUYER/SELLER___s/s Barbara M. Eisele_   Date______________      Time  _____AM/PM

AGENT ______________________________  By ________________  Date ________________
      (Please Print)                    (Associate Licensee
                                        or Broker-Signature

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

This Disclosure form must be provided in a listing, sale, exchange,  installment
land contract,  or lease over one year, if the transaction  involves one-to-four
dwelling residential property, including a mobile home, as follows:

         (a) From a  Listing  Agent  to a  Seller:  Prior to  entering  into the
             listing.

         (b) From an Agent  selling a  property  he/she  has  listed to a Buyer:
             Prior to the Buyer's execution of the offer.

         (c) From a Selling Agent to a Buyer: Prior to the Buyer's  execution of
             the offer.

         (d) From a  Selling  Agent (in a  cooperating  real  estate  firm) to a
             Seller: Prior to presentation of the offer to the Seller.

It is not  necessary  or  required  to  confirm an agency  relationship  using a
separate Confirmation form if the agency confirmation portion of the Real Estate
Purchase Contract is properly completed in full.  However, it is still necessary
to use this Disclosure form.

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

THIS  STANDARDIZED  DOCUMENT HAS BEEN APPROVED BY THE CALIFORNIA  ASSOCIATION OF
REALTORS(R)  (C.A.R.) IN FORM ONLY. NO REPRESENTATION IS MADE AS TO THE APPROVAL
OF THE FORM OF ANY  SUPPLEMENTS  NOT CURRENTLY  PUBLISHED BY C.A.R. OR THE LEGAL
VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. IT SHOULD NOT
BE USED WITH EXTENSIVE RIDERS OR ADDITIONS.

A REAL  ESTATE  BROKER  IS  THE  PERSON  QUALIFIED  TO  ADVISE  ON  REAL  ESTATE
TRANSACTIONS.  IF  YOU  DESIRE  LEGAL  OR TAX  ADVICE,  CONSULT  AN  APPROPRIATE
PROFESSIONAL.

This form is available  for use by the entire real estate  industry.  The use of
this form is not intended to identify the user as a REALTOR(R),  REALTOR(R) is a
registered  collective  membership mark which may be used only by members of the
NATIONAL ASSOCIATION OF REALTORS(R) who subscribe to its Code of Ethics.

The copyright laws of the United States (17 U.S.  Code) forbid the  unauthorized
reproductin  of this  form by any  means  including  facsimile  or  computerized
formats.

Copyright(C) 1987 - 1995, CALIFORNIA ASSOCIATION OF REALTORS(R)
525 South Virgil Avenue, Los Angeles, California 90020
REVISED 10/95

---------------OFFICE USE ONLY.----------------
Reviewed by Broker or Designee ________________
         Date ______________________
-----------------------------------------------

                                   FORM AD-14

<PAGE>

[LOGO] CALIFORNIA                                 COUNTER OFFER NO. 1
       ASSOCIATION                    (For use by Seller or Buyer. May be used
       OF REALTORS(R)                        for Multiple Counter Offer.)

        THIS IS INTENDED TO BE A LEGALLY BINDING AGREEMENT -- READ IT CAREFULLY.
          CALIFORNIA ASSOCIATION OF REALTORS(R) (C.A.R.) STANDARD FORM

--------------------------------------------------------------------------------
  BROKER: Phillips & Harris Land Brokers AGENT: Phillips & Harris (707) 963-3644
                      Prepared using WINForms(TM) software
--------------------------------------------------------------------------------

This is a counter offer to the [X] Offer, [ ] Counter Offer, [ ] Other ________,
dated December 08, 1999, regarding (property address):  1865 St. Helena Highway,
Rutherford (APN:  027-470-003) between Chalone Wine Group,  "Buyer'" and Barbara
Eisele, Et Al, "Seller."

1.   TERMS:  The  terms and  conditions  of the above  referenced  document  are
     accepted subject to the following:

     A.  Paragraphs in the purchase  contract  (offer) which require initials by
         all parties,  but are not initialized by all parties, are excluded from
         the final  agreement  unless  specifically  referenced for inclusion in
         paragraph 1C of this or another Counter Offer.

     B.  Unless otherwise specified in writing,  down payment and loan amount(s)
         will be adjusted in the same proportion as in the original offer.

     C.  Price shall be $1,900,000.

         Original Contract:

         Page 1 #2 Escrow to close  within 60 days from the date of  acceptance.

         Page 3 #16 2. Buyer  shall  have 45 days  from  date of  acceptance  to
         complete all inspections.

         Contract Addendum #1:

         #2 Escrow - Escrow  shall  close  within  15 days  after  contingencies
         are  removed  in writing  for both this  property  and 1877 St.  Helena
         Highway and shall be contingent upon a simultaneous closing.

         Possession:  This contract  includes a Tenancy in the house,  rent free
         for  Barbara  Eisele for up to 2 years  time from close of escrow,  for
         Seller to find a suitable replacement property. Further agreement shall
         follow regarding  Tenancy and shall be contingent upon Buyer and Seller
         mutually agreeing upon the terms within 5 days of receipt.

         Buyer and Seller agree to keep price, terms and conditions of this sale
         confidential until close of escrow.

     D.  The following  attached  supplements  are  incorporated in this Counter
         Offer:

         [ ] -----------------------           [ ] -----------------------------
         [ ] -----------------------           [ ] -----------------------------

2.   [ ] (If  Checked:)  MULTIPLE  COUNTER  OFFER:  Seller  is  making a Counter
     Offer(s) to another  prospective  buyer(s) on terms which may or may not be
     the same as in this Counter  Offer.  Acceptance  of this  Counter  Offer by
     Buyer shall not be binding unless and until it is subsequently re-signed by
     Seller in paragraph 7 below and returned to Buyer or Buyer's  agent.  Prior
     to the  completion of all of these  events,  Buyer and Seller shall have no
     duties or obligations for the purchase or sale of the Property.

3.   RIGHT TO ACCEPT  OTHER  OFFERS:  Seller  reserves  the right to continue to
     offer the  Property  for sale or for other  transaction,  and to accept any
     other offer at any time prior to communication of acceptance,  as described
     in  paragraph  4.  Seller's  acceptance  of another  offer prior to Buyer's
     acceptance  and  communication  of  acceptance  of this Counter Offer shall
     revoke this Counter Offer.

4.   EXPIRATION: Unless acceptance of this Counter Offer is signed by the person
     receiving  it, and  communication  of  acceptance  is made by  delivering a
     signed  copy in  person,  by mail,  or by  facsimile  which  is  personally
     received,  to the person  making this Counter Offer or to Phillips & Harris
     (707)  963-3644,  by 5:00 PM on the third  calendar  day after this Counter
     Offer is written (or, if checked,  [X] date:  _____December 10, 1999 _____,
     time___5:00PM  AM/PM),  this Counter Offer shall be deemed  revoked and the
     deposit  shall be returned to Buyer.  This Counter Offer may be executed in
     counterparts.

     As the person(s) making this Counter Offer on the terms above, receipt of a
     copy is acknowledged.

     /s/ Barbara M. Eisele                   Date: Dec. 8, 1999  Time: 3:30 PM

     _____________________________________   Date: ____________  Time: ____AM/PM

5.   ACCEPTANCE: I/WE accept the above Counter Offer (if checked: [ ] SUBJECT TO
     THE ATTACHED COUNTER OFFER) and acknowledge receipt of a copy.

     /s/ Thomas B. Selfridge                 Date: 12-9-99       Time: 12:55 PM

     _____________________________________   Date: ____________  Time: ____AM/PM

6.   ACKNOWLEDGEMENT OF RECEIPT:  Receipt of signed acceptance on (date) 2/9/99,
     at  12:55  AM/PM,  by the  maker of the  Counter  Offer,  or  other  person
     designated in paragraph 4, is acknowledged. (____/____) (Initials)

--------------------------------------------------------------------------------
7.   MULTIPLE  COUNTER  OFFER  SIGNATURE  LINE:  (Paragraph  7  applies  only if
     paragraph 2 is checked.) By signing  below,  Seller  accepts this  Multiple
     Counter Offer,  and  creates a binding  contract.  (NOTE TO SELLER:  Do NOT
     sign in this paragraph  until after Buyer signs the acceptance in paragraph
     5, and returns to Seller for re-signing.)

     _____________________________________   Date: ____________  Time: ____AM/PM

     _____________________________________   Date: ____________  Time: ____AM/PM

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

THIS  STANDARDIZED  DOCUMENT HAS BEEN APPROVED BY THE CALIFORNIA  ASSOCIATION OF
REALTORS(R)  (C.A.R.) IN FORM ONLY. NO REPRESENTATION IS MADE AS TO THE APPROVAL
OF THE FORM OF ANY  SUPPLEMENTS  NOT CURRENTLY  PUBLISHED BY C.A.R. OR THE LEGAL
VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. IT SHOULD NOT
BE USED WITH EXTENSIVE RIDERS OR ADDITIONS.

A REAL  ESTATE  BROKER  IS  THE  PERSON  QUALIFIED  TO  ADVISE  ON  REAL  ESTATE
TRANSACTIONS.  IF  YOU  DESIRE  LEGAL  OR TAX  ADVICE,  CONSULT  AN  APPROPRIATE
PROFESSIONAL.

This form is available  for use by the entire real estate  industry.  The use of
this form is not intended to identify the user as a REALTOR(R).  REALTOR(R) is a
registered  collective  membership mark which may be used only by members of the
NATIONAL ASSOCIATION OF REALTORS(R) who subscribe to its Code of Ethics.

The copyright laws of the United States (17 U.S.  Code) forbid the  unauthorized
reproduction  of this form by any means,  including  facsimile  or  computerized
formats.

Copyright(C) 1991-1996 CALIFORNIA ASSOCIATION OF REALTORS(R)

REBS INC

Published and distributed by:
REAL ESTATE BUSINESS SERVICES, INC.
a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS(R)
525 South Virgil Avenue, Los Angeles, California 90020

                                       ____________OFFICE USE ONLY______________
                                          Reviewed by Broker or Designee _______
                                                Date ________________
                                       -----------------------------------------

                                                                            LOGO

                                                                   EQUAL HOUSING
                                                                     OPPORTUNITY

                    American Software Systems (714) 727-0444
                       COUNTER OFFER (CO-14) REVISED 9/95CALIFORNIA               RESIDENTIAL PURCHASE AGREEMENT
ASSOCIATION                 (AND RECEIPT FOR DEPOSIT)
OF REALTORS(R)       For Use With Single Family Residential
                         Property--Attached or Detached

BROKER:  Phillips & Harris Land Brokers AGENT:  Phillips & Harris (707) 963-3644
Prepared using WINForms(TM) software.

Date: November 30, 1999, at St. Helena,  California,  Received From Chalone Wine
Group,  Inc.  ("Buyer"),  A Deposit of  One-Hundred-Thousand-and  00/100 Dollars
$100,000,   toward  the   Purchase   Price  of   Thirteen-Million-Eight-Hundred-
Thousand-and  00/100 Dollars  $13,800,000,  For Purchase Of Property Situated in
Rutherford,  County Of Napa,  California,  Described As 1877 St. Helena  Highway
(APN; 027-470-027; 028 & 029) SFAP, ("Property").

1.   FINANCING:  Obtaining the loans below is a contingency  of this  Agreement.
     Buyer  shall act  diligently  and in good  faith to obtain  the  designated
     loans.  Obtaining  deposit,  down  payment  and  closing  costs  is  not  a
     contingency.

     A.   BUYER'S  DEPOSIT  shall be held  uncashed  until Acceptance  and  then
          deposited  within 3 business days after Acceptance or [ ] ___________,
          [X]  with  Escrow  Holder,  [ ] into  Broker's  trust  account  or [ ]
          ___________,  by Personal  Check [ ]  Cashier's  Check [ ] Cash or [ ]
          ___________________________________________________ $100,000

     B.   INCREASED  DEPOSIT shall be deposited with ___________  within __ Days
          After Acceptance, or [ ] ___________ $___________

     C.   FIRST LOAN IN THE AMOUNT OF $_________________ NEW First Deed of Trust
          in favor of LENDER, encumbering the Property,  securing a note payable
          at maximum  interest of ___% fixed rate,  or ___%  initial  adjustable
          rate  with a maximum  interest  rate cap of ___%,  balance  due in ___
          years. Buyer shall pay loan fees/points not to exceed ___________.  If
          FHA/VA,  Seller  shall pay ___%  discount  points,  or other  fees not
          allowed to be paid by Buyer, not to exceed $___________,  and the cost
          of  lender  required  repairs  not  otherwise  provided  for  in  this
          Agreement, not to exceed $___________.

     D.   ADDITIONAL FINANCING TERMS: __________________________ $______________
          ______________________________________________________________________
          [ ] seller  financing,  (C.A.R.  Form  SFA-14);  [ ] junior or assumed
          financing, (C.A.R. Form PAA-14, paragraph 5.)

     E.   BALANCE OF PURCHASE PRICE (not  including costs of obtaining loans and
          other closing  costs) to be deposited with  $13,700,000  escrow holder
          sufficient time to close escrow.

     F.   TOTAL PURCHASE PRICE $13,800,000

     G.   LOAN CONTINGENCY shall remain in effect until the designated loans are
          funded (or [ ] _____) Days After Acceptance, by which time Buyer shall
          give  Seller  written  notice  of  Buyer's  election  to  cancel  this
          Agreement if Buyer is unable to obtain the designated  loans. If Buyer
          does not give Seller such notice,  the  contingency  of obtaining  the
          designated loans shall be removed by the method specified in paragraph
          16B.)

     H.   LOAN APPLICATIONS; PREQUALIFICATION: For NEW  financing,  within 5 (or
          [ ] _____) Days After Acceptance,  Buyer shall provide Seller a letter
          from lender or mortgage loan broker stating that,  based on the review
          of  Buyer's   written   application   and  credit  report,   Buyer  is
          prequalified  for the NEW loan  indicated  above.  If  Buyer  fails to
          provide such letter within that time, Seller may cancel this Agreement
          in writing.

     I.   [ ] APPRAISAL  CONTINGENCY:  (If checked) This Agreement is contingent
          upon Property  appraising at no less than the specified total purchase
          price. The Appraisal  contingency  shall remain in effect for the same
          period as specified for the Loan Contingency in paragraph 1G.

     J.   ALL CASH OFFER:  If this is an all cash offer,  Buyer shall,  within 5
          (or  [ ]  _____)  Days  After   Acceptance,   provide  Seller  written
          verification   of sufficient funds to close this transaction.   Seller
          may cancel this Agreement in writing within 5 Days After:  (1) time to
          provide verification  expires, if Buyer fails to provide verification;
          or (2) receipt of verification, if Seller reasonably disapproves it.

2.   ESCROW:  Close of Escrow shall occur (See Addendum  Days  After  Acceptance
     (or [ ] on _____  (date)).  Buyer and Seller shall  deliver  signed  escrow
     instructions  consistent  with this  Agreement  [X]  within  90 Days  After
     Acceptance,  [ ] at  least _______ Days  before  Close  of  Escrow,  or [ ]
     _________________.  Seller shall  deliver  possession  and occupancy of the
     Property to Buyer at 12:00 PM [X] on the date of Close of Escrow, or [ ] no
     later  than __________ Days   After  date  of  Close  of  Escrow,   or  [ ]
     _________________.  Property shall be vacant,  unless  otherwise  agreed in
     writing. If transfer of title and possession do not occur at the same time,
     Buyer and Seller are advised to (a) consult with their insurance  advisors,
     and (b) enter into a written occupancy  agreement.  Escrow instructions may
     include matters required to close this transaction which are not covered by
     this Agreement.  The omission from escrow  instructions of any provision in
     this Agreement shall not constitute a waiver of that provision.

3.   OCCUPANCY:  Buyer [X]  does,  [ ] does not,  intend to occupy  Property  as
     Buyer's primary residence.

4.   ALLOCATION OF COSTS: (Check boxes which apply. If needed, insert additional
     instructions in blank lines.)

        TRANSFER FEES:

     A. [ ] Buyer [X] Seller shall pay County transfer tax or transfer fee. ____
        _________________________.

     B. [ ] Buyer [ ] Seller shall pay City transfer tax or transfer fee. ______
        _________________________.

     C. [ ] Buyer [ ] Seller shall pay Homeowners' Association transfer fee. ___
        _________________________.

        TITLE AND ESCROW COSTS:

     D. [X] Buyer [ ]  Seller  shall pay for  owner's  title  insurance  policy,
        issued by First American Title company.

     E. [X] Buyer [ ] Seller shall pay escrow fee. _______________ Escrow holder
        shall be First American Title.

        SEWER/SEPTIC/WELL COSTS:

     F. [ ] Buyer [ ] Seller shall pay for sewer connection,  if required by Law
        prior to Close of Escrow.

     G. [X] Buyer [ ] Seller shall pay to have septic or private sewage disposal
        system inspected. ___________________.

     H. [X] Buyer [ ] Seller shall pay to have wells  tested for water  quality,
        potabilty, productivity, and recovery rate. ____________________________

        OTHER COSTS:

     I. [ ]  Buyer  [X]  Seller  shall  pay  zone  disclosures  reports,  if any
        (paragraph 7). _____________________________________

     J. [ ] Buyer [X] Seller shall pay for Smoke  Detector  Installation  and/or
        Water Heater bracing. ___________________________ Seller, prior to close
        of escrow,  shall  provide  Buyer a written  statement of  compliance in
        accordance with state and local Law, unless exempt.

     K. [ ] Buyer [ ] Seller  shall  pay the cost of  compliance  with any other
        minimum mandatory government retrofit standards and inspections required
        as a condition of closing escrow under any Law. ________________________

     L. [ ] Buyer [ ] Seller  shall  pay the cost of a  one-year  home  warranty
        plan,  issued  by   __________________,   with  the  following  optional
        coverage: ________________________. Policy cost not to exceed $0.00.

        PEST CONTROL REPORT:

     M. [X] Buyer [ ] Seller shall pay for the Pest Control  Report  ("Report"),
        which shall be prepared by Buyers Choice,  a registered  structural pest
        control company.

     N. [X]  Buyer  [ ]  Seller  shall  pay  for  work  recommended  to  correct
        conditions described in the Report as "Section 1,".

     O. [X]  Buyer  [ ]  Seller  shall  pay  for  work  recommended  to  correct
        conditions  described  in the Report as  "Section  2," if  requested  by
        Buyer.

           Buyer and Seller acknowledge receipt of copy of this page,
                      which constitutes Page 1 of 6 Pages.

           Buyer's Initials (TBS) Seller's Initials (AN)

THIS  FORM  HAS BEEN  APPROVED  BY THE  CALIFORNIA  ASSOCIATION  OF  REALTORS(R)
(C.A.R.).  NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY
PROVISION  IN ANY  SPECIFIC  TRANSACTION.  A REAL  ESTATE  BROKER IS THE  PERSON
QUALIFIED  TO ADVISE ON REAL  ESTATE  TRANSACTIONS. IF YOU  DESIRE  LEGAL OR TAX
ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL.

The copyright laws of the United States (17 U.S.  Code) forbid the  unauthorized
reproduction  of this form by any means,  including  facsimile  or  computerized
formats.

Copyright (C) 1997, CALIFORNIA ASSOCIATION OF REALTORS(R)

R I  Published and distribed by:
E N  REAL ESTATE BUSINESS SERVICES, INC.
B C  a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS(R)
G    525 South Virgil Avenue, Los Angeles, California 90020

                                                             OFFICE USE ONLY

                                                       Reviewed by Broker
                                                       or Designee _____________
                                                       Date ____________________

                    American Software Systems (714) 727-0444

             RESIDENTIAL PURCHASE AGREEMENT AND RECEIPT FOR DEPOSIT
                        (RPA-14 PAGE 1 OF 5) REVISED 5/97

<PAGE>

Property Address: 1877 St. Helena Highway,  Rutherford (APN: 027-470-027;  028 &
029) SFAP Date: November 30, 1999

5.   PEST CONTROL TERMS:

     A.   The Report shall cover the main building and attached  structures and,
          if checked [ ] detached garages and carports, [ ] detached  decks, [ ]
          the following other structures on the Property: ___________________.

     B.   If  Property  is a unit  in a  condominium,  planned  development,  or
          residential  stock  cooperative,  the  Report  shall  cover  only  the
          separate interest and any exclusive-use  areas being transferred,  and
          shall not cover common areas, unless otherwise agreed.

     C.   If  inspection of  inaccessible  areas is  recommended  in the Report,
          Buyer has the  option,  within 5 Days  After  receipt  of the  Report,
          either to accept and  approve  the Report by the method  specified  in
          paragraph  16B, or to request in writing  that further  inspection  be
          made. If further inspection  recommends "Section 1" and/or "Section 2"
          corrective  work,  such work, and the cost of inspection,  entry,  and
          closing of the inaccessible areas, the cost of the inspection,  entry,
          and closing of those areas shall be paid for by Buyer.

     D.   If no infestation or infection by wood  destroying  pests or organisms
          is  found,   the  Report   shall   include  a  written   Pest  Control
          Certification. Certification shall be issued prior to Close of Escrow,
          unless otherwise agreed in writing.

     E.   Inspections,  corrective work and Pest Control  Certification  in this
          paragraph  refers only to the  presence or absence of wood  destroying
          pests or  organisms,  and  does  not  include  the  condition  of roof
          coverings. Read paragraphs 9 and 12 concerning roof coverings.

     F.   Nothing in this  paragraph 5 shall relieve Seller of the obligation to
          repair or replace shower pans  and shower  enclosures due to leaks, if
          required by paragraph 9B(3).  Water test of shower pans on upper level
          units may not be  performed  unless the owners of  property  below the
          shower consent.

6.   TRANSFER DISCLOSURE STATEMENT; SUBSEQUENT DISCLOSURES; MELLO-ROOS NOTICE:

N/A  A.   Within 5 (or [ ] ___) Days After  Acceptance,  unless  exempt,  a Real
          Estate Transfer  Disclosure  Statement  ("TDS") shall be completed and
          delivered to Buyer, who shall sign and return a copy of it to Seller.

     B.   In the  event  Seller,  prior  to Close Of  Escrow,  becomes  aware of
          adverse conditions  materially affecting the Property, or any material
          inaccuracy in disclosures,  information, or representations previously
          provided  to Buyer  (including  those made in a TDS) of which Buyer is
          otherwise  unaware,  Seller shall  promptly  provide a  subsequent  or
          amended disclosure,  in writing, covering those items except for those
          conditions and material inaccuracies  disclosed in reports obtained by
          Buyer.

     C.   Seller shall make a good faith  effort to obtain a  disclosure  notice
          from any  local  agencies  which  levy a special  tax on the  Property
          pursuant  to  the  Mello-Roos  Community  Facilities  Act,  and  shall
          promptly  deliver to Buyer any such  notice  made  available  by those
          agencies.

     D.   If the TDS, the  Mello-Roos  disclosure  notice,  or a  subsequent  or
          amended  disclosure  is  delivered to Buyer after the offer is signed,
          Buyer shall have the right to terminate this  Agreement  within 3 days
          after  delivery in person,  or 5 days after delivery by deposit in the
          mail, by giving  written  notice of  termination to Seller or Seller's
          agent.

7.   DISCLOSURES:  Within the time  specified  in  paragraph  16,  Seller  shall
     provide  to Buyer  the  following  disclosures  and  information,  take the
     following actions,  and disclose material facts pertaining to the following
     conditions.  Buyer shall then,  within the time  specified in paragraph 16,
     investigate the disclosures and information,  and provide written notice to
     Seller of any item disapproved.

     A.   PROPERTY  DISCLOSURES:  Earthquake  Fault Zones,  Seismic Hazard Zones
          (when   available),   Special   Flood   Hazard   Areas,   State   Fire
          Responsibility Areas, Earthquake Guides, Lead-Based Paint Disclosures,
          Environmental  Hazards Booklet,  and Energy  Efficiency  Booklet (when
          published),  or any other federal,  state, or locally  designated zone
          for which disclosure is required by Law.

     B.   CONDOMINIUM/COMMON  INTEREST  SUBDIVISION:  If Property is a unit in a
          condominium,   planned   development,   or   other   common   interest
          subdivision,  Seller shall  request from the  Homeowners'  Association
          ("HOA"), and upon receipt provide to Buyer, a statement indicating any
          current regular dues and assessments; known pending regular or special
          assessments,  claims,  or  litigation  and the  location and number of
          parking and  storage  spaces;  copies of  covenants,  conditions,  and
          restrictions;  articles of incorporation;  "by-laws",  other governing
          documents;  most current financial  statement  distributed;  statement
          regarding limited  enforceability of age restrictions,  if applicable;
          current  HOA  statement  showing  any  unpaid  assessments;  any other
          documents  required  by Law,  and the most  recent  12  months  of HOA
          minutes for regular and special meetings, if available.

     C.   NOTICE OF  VIOLATION:  If prior to Close Of  Escrow,  Seller  receives
          notice or is made  aware of any  notice  filed or issued  against  the
          Property,  of violations of city, county,  state, or federal building,
          zoning, fire, or health Laws, Seller shall immediately notify Buyer in
          writing.  Buyer shall,  within the time  specified  in  paragraph  16,
          provide written notice to Seller of any items disapproved.

8.   TITLE AND VESTING:

     A.   Within the time  specified in paragraph 16A, Buyer shall be provided a
          current  preliminary  (title)  report  (which  is only an offer by the
          title  insurer  to issue a  policy  of  title  insurance,  and may not
          contain  every item  affecting  title).  Buyer shall,  within the time
          specified in paragraph  16,  provide  written  notice to Seller of any
          items reasonably disapproved.

     B.   At Close Of Escrow,  Buyer shall receive a grant deed conveying  title
          (or,  for stock  cooperative,  an  assignment  of stock  certificate),
          including oil,  mineral and water rights if currently owned by Seller.
          Title  shall be subject  to all  encumbrances,  easements,  covenants,
          conditions,  restrictions,  rights,  and  other  matters  which are of
          record  or  disclosed  to  Buyer  prior to  Close  Of  Escrow,  unless
          disapproved in writing by Buyer within the time specified in paragraph
          16.  However,  title  shall not be  subject to any liens  against  the
          Property,  except for those  specified in the  Agreement.  Buyer shall
          receive  an ALTA-R  owner's  title  insurance  policy,  if  reasonably
          available.  If not,  Buyer shall receive a standard  coverage  owner's
          policy (e.g. CLTA or ALTA with regional  exceptions).  Buyer shall pay
          for Lender's title insurance policy. Title shall vest as designated in
          Buyer's escrow  instructions.  The title company,  at Buyer's request,
          can provide information about  availability,  desirability and cost of
          various title insurance coverages. THE MANNER OF TAKING TITLE MAY HAVE
          SIGNIFICANT LEGAL AND TAX CONSEQUENCES.

9.   NO WARRANTIES EXCEPT AS SPECIFIED:

     A.   EXCEPT AS SPECIFIED BELOW,  AND ELSEWHERE IN THIS AGREEMENT,  Property
          is sold "AS IS", in its present physical condition.

     B.   (IF  CHECKED)  SELLER  WARRANTS  THAT AT THE TIME  POSSESSION  IS MADE
          AVAILABLE TO BUYER:

     [X] (1) Roof shall be free of leaks  KNOWN to Seller or  DISCOVERED  during
             escrow.

     [X] (2) Built-in  appliances  (including  free-standing  oven and range, if
             included in sale),  heating, air conditioning,  electrical,  water,
             sewer and pool/spa systems, if any, shall be repaired,  if KNOWN by
             Seller to be  inoperative  or  DISCOVERED  to be so during  escrow.
             (Septic/Well  systems  are  not  covered  in this  paragraph.  Read
             paragraphs 4G and H.)

     [X] (3) Plumbing  systems,  shower pans and shower enclosures shall be free
             of leaks KNOWN to Seller or DISCOVERED during escrow.

     [X] (4) All fire, safety, and structural defects in chimneys and fireplaces
             KNOWN to Seller or DISCOVERED during escrow shall be repaired.

     [ ] (5) All broken or cracked glass, torn existing window and door screens,
             and broken seals between multi-pane windows shall be replaced.

     [X] (6) All debris and all personal property not included in the sale shall
             be removed.

     [ ] (7) __________________________________________________________________

     C.   PROPERTY  MAINTENANCE:  Unless otherwise agreed,  Property,  including
          pool,  spa,   landscaping   and  grounds,   is  to  be  maintained  in
          substantially the same condition as on the date of Acceptance.

     D.   PROPERTY  IMPROVEMENTS  may not (a) be built  according to codes or in
          compliance with Law, or (b) have had permits issued.

     E.   INSPECTIONS AND DISCLOSURES:  Items discovered in Buyer's  Inspections
          which are not  covered  by  paragraph  9B,  shall be  governed  by the
          procedure  in  paragraphs  12 and  16.  Buyer  retains  the  right  to
          disapprove the condition of the Property  based upon items  discovered
          in Buyer's Inspections. Disclosures in the TDS and items discovered in
          Buyer's  inspections  do  NOT  eliminate  Seller's  obligations  under
          paragraph 9B, unless  specifically  agreed in writing.  WHETHER OR NOT
          SELLER  WARRANTS  ANY ASPECT OF THE  PROPERTY,  SELLER IS OBLIGATED TO
          DISCLOSE KNOWN MATERIAL FACTS AND TO MAKE OTHER  DISCLOSURES  REQUIRED
          BY LAW.

Buyer and Seller  acknowledge  receipt of copy of this page,  which  constitutes
Page 2 of 6 Pages.

Buyer's Initials (TBS)   Seller's Initials (AN)

                                                             OFFICE USE ONLY

                                                       Reviewed by Broker
                                                       or Designee _____________
                                                       Date ____________________

             RESIDENTIAL PURCHASE AGREEMENT AND RECEIPT FOR DEPOSIT
                       (RPA-14 PAGE 2 OF 5) REVISED 5/97

--------------------------------------------------------------------------------
BROKER: Phillips & Harris Land Brokers  AGENT: Phillips & Harris (707) 963-3644
                      Prepared using WINForms(TM) software
--------------------------------------------------------------------------------

<PAGE>

Property Address: 1877 St. Helena Highway,  Rutherford (APN: 027-470-027;  028 &
029) SFAP Date: November 30, 1999

10.  FIXTURES:  ALL  EXISTING  fixtures  and  fittings  that are attached to the
     Property, or for which special openings have been made, are INCLUDED IN THE
     PURCHASE PRICE (unless  excluded  below),  and shall be transerred  free of
     liens and "AS IS," unless specifically  warranted.  Fixtures shall include,
     but are not limited to, existing electrical, lighting, plumbing and heating
     fixtures, fireplace inserts, solar systems, built-in appliances, window and
     door  screens,  awnings,   shutters,   window  coverings,   attached  floor
     coverings,  television  antennas,  satellite dishes and related  equipment,
     private integrated  telephone systems, air  coolers/conditioners,  pool/spa
     equipment, water softeners (if owned by Seller), security system/alarms (if
     owned by Seller), garage door  openers/remote controls,  attached fireplace
     equipment,  mailbox, in-ground landscape including trees/shrubs,  and Light
     Fixtures in Dining Room (3).

     FIXTURES EXCLUDED: __________________________.

11.  PERSONAL PROPERTY: The following items of personal property,  free of liens
     and "AS IS," unless  specifically  warranted  are  INCLUDED IN THE PURCHASE
     PRICE: ___________________________________________________________________.

12.  BUYER'S  INVESTIGATION  OF PROPERTY  CONDITION:  Buyer's  Acceptance of the
     condition of the Property is a contingency of this Agreement,  as specified
     in this paragraph and paragraph 16. Buyer shall have the right,  at Buyer's
     expense, to conduct inspections,  investigations, tests, surveys, and other
     studies  ("Inspections"),  including  the right to inspect  for  lead-based
     paint  and  other  lead  hazards.  No  Inspections  shall  be  made  by any
     governmental  building or zoning  inspector or government  employee without
     Seller's prior written consent, unless required by Law. Buyer shall, within
     the time specified in paragraph 16,  complete these  Inspections and notify
     Seller in writing of any items  reasonably  disapproved.  Seller shall make
     Property available for all Inspections. Buyer shall: keep Property free and
     clear of liens;  indemnify  and hold Seller  harmless  from all  liability,
     claims,  demands,  damages,  and costs; and repair all damages arising from
     Inspections.  Buyer shall carry,  or Buyer shall  require  anyone acting on
     Buyer's behalf to carry, policies of liability, worker's compensation,  and
     other applicable insurance,  defending and protecting Seller from liability
     for any injuries to persons or property  occurring  during any work done on
     the  Property  at Buyer's  direction,  prior to Close of Escrow.  Seller is
     advised  that  certain  protections  may be afforded  Seller by recording a
     notice of  non-responsibility  for work  done on the  Property  at  Buyer's
     direction.  At  Seller's  request  Buyer  shall  give  Seller,  at no cost,
     complete copies of all Inspection  reports obtained by Buyer concerning the
     Property.  Seller  shall have water,  gas, and  electricity  on for Buyer's
     Inspections, and through the date possession is made available to Buyer.

13.  FINAL WALK-THROUGH;  VERIFICATION OF CONDITION:  Buyer shall have the right
     to make a final  inspection  of the  Property  within 5 (or [ ] _____) Days
     prior to Close Of Escrow,  NOT AS A CONTINGENCY  OF THE SALE, but solely to
     confirm  that Repairs  have been  completed as agreed in writing,  and that
     Seller has complied with Seller's other obligations.

14.  PROPRATIONS AND PROPERTY TAXES:  Unless otherwise  agreed in writing,  real
     property  taxes and  assessments,  interest,  rents,  HOA regular  dues and
     regular  assessments,  premiums on insurance assumed by Buyer,  payments on
     bonds and  assessments  assumed by Buyer,  payments on Mello-Roos and other
     Special Assessment District bonds and assessments which are now a lien, and
     payments on HOA bonds and special assessments which have been imposed prior
     to Close Of Escrow,  shall be PAID CURRENT and prorated  between  Buyer and
     Seller as of Close Of Escrow, except: ____________________________________.
     Prorated payments on Mello-Roos and other Special Assessment District bonds
     and assessments and HOA special assessments that are now a lien but not yet
     due,  shall be assumed by Buyer WITHOUT  CREDIT toward the purchase  price.
     Property will be reassessed upon change of ownership.  Any supplemental tax
     bills shall be paid as follows:  (1) For periods after Close Of Escrow,  by
     Buyer; and, (2) For periods prior to Close Of Escrow, by Seller.  TAX BILLS
     ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED  DIRECTLY  BETWEEN  BUYER AND
     SELLER.

15.  SALE OF BUYER'S PROPERTY:

     A.   This  Agreement is NOT contingent  upon the sale of Buyer's  property,
          unless paragraph 15B is checked.

OR   B.   [ ] (If checked)  This  Agreement IS CONTINGENT on the Close Of Escrow
          of Buyer's property, described as (address) __________________________
          ("Buyer's Property"), which is (if  checked)  [ ] listed for sale with
          ___________________________ Company, and/or (if checked) [ ] in Escrow
          No.   ________________________________   with  _______________________
          Escrow Holder,  scheduled to Close Escrow on _________  (date).  Buyer
          shall deliver to Seller,  within 5 Days After Seller's request, a copy
          of the contract for the sale of Buyer's Property, escrow instructions,
          and all amendments and modifications thereto. If Buyer's Property does
          not  close  escrow by the date  specified  for Close Of Escrow in this
          paragraph,  then either  Seller or Buyer may cancel this  Agreement in
          writing.

          (Check ONLY 1 or 2; do NOT check both.) After Acceptance:

          [ ] (1) Seller  SHALL have the right to continue to offer the Property
          for sale. If Seller accepts another  written offer,  Seller shall give
          Buyer written notice to (a) remove this  contingency  in writing,  (b)
          provide written  verification  of sufficient  funds to close escrow on
          this sale  without the sale of Buyer's  Property,  and (c) comply with
          the following additional requirement(s) ______________________________
          _____________________________________________________________________.
          If Buyer fails to  complete  those  actions  within ____ hours or ____
          Days After receipt of such notice, Seller may cancel this Agreement in
          writing.

          [ ] (2)  Seller  shall  not have the  right to  continue  to offer the
          Property for sale, except for back-up offers.

16.  TIME   PERIODS;   INSPECTIONS;   SATISFACTION/REMOVAL   OF   CONTINGENCIES;
     DISAPPROVAL/CANCELLATION RIGHTS:

     A.   TIME PERIODS:  This following time periods shall apply, unless changed
          by mutual written agreement:

          (1)  SELLER HAS: 5 (or [X] 10) Days After Acceptance (a) to deliver to
               Buyer all reports,  disclosures, and information for which Seller
               is  responsible  under  paragraphs 4G, 4H, 4M, and 7A; and (b) to
               request and 2 Days After receipt to provide to Buyer all reports,
               disclosures,  and  information  for which  Seller is  responsible
               under paragraph 7B and 8.

          (2)  BUYER HAS: (a) 10 (or [X] 60) Days After  Acceptance  to complete
               all Inspections (including,  if applicable,  Inspections for wood
               destroying  pests or organisms under  paragraph 4M and lead-based
               paint and lead hazards under  paragraph 12),  investigations  and
               review of  reports  and  other  applicable  information,  with an
               additional 7 Days to complete geologic  Inspections.  WITHIN THIS
               TIME, Buyer must either disapprove in writing any items which are
               unacceptable to Buyer or remove the  contingency  associated with
               such  disapproval  right,  by the  active or passive  method,  as
               specified  below; (b) 5 (or _____) Days After receipt of (i) each
               of the items in  paragraph  16A(1);  and (ii)  notice of code and
               legal  violations  under  paragraph  7C, to either  disapprove in
               writing any items which are  unacceptable to Buyer, or remove the
               contingency  associated with such disapproved right by the active
               or passive method as specified below.

          (3)  SELLER'S  RESPONSE TO BUYER'S  DISAPPROVALS:  Seller shall have 5
               (or [ ] _____) Days After  receipt of Buyer's  written  notice of
               items  reasonably  disapproved  to respond in writing.  If Seller
               refuses or is unable to make  repairs to, or  correct,  any items
               reasonably  disapproved  by Buyer,  or if Seller does not respond
               within  the time  period  specified,  Buyer  shall have 5 (or [ ]
               _____)  Days After  receipt of  Seller's  response,  or after the
               expiration  of the time for Seller to respond,  whichever  occurs
               first, to cancel this Agreement in writing.

     B.   ACTIVE OR PASSIVE REMOVAL OF BUYER'S CONTINGENCIES:

          (1)  [X] ACTIVE  METHOD  (APPLIES IF CHECKED):  If Buyer does not give
               Seller written notice of items reasonably disapproved, removal of
               contingencies,   or   cancellation,   within  the  time   periods
               specified,  Seller shall have the right to cancel this  Agreement
               by giving written notice to Buyer.

          (2)  PASSIVE  METHOD  (Applies  UNLESS Active  Method is checked):  If
               Buyer does not give  Seller  written  notice of items  reasonably
               disapproved,  or of  removal  of  contingencies  or  cancellation
               within the time periods specified,  Buyer shall be deemed to have
               removed the contingency associated with the disapproval right, or
               waived the  contingency and the right to take those actions or to
               cancel.

     C.   EFFECT OF  CONTINGENCY  REMOVAL:  If Buyer removes any  contingency or
          cancellation  right by the active or passive  method,  as  applicable,
          Buyer  shall  conclusively  be  deemed  to  have:  (1)  Completed  all
          Inspections,   investigations,   and  review  of  reports   and  other
          applicable  information and disclosures pertaining to that contingency
          or cancellation  right;  (2) Elected to proceed with the  transaction;
          and,  (3)  Assumed  all  liability,  responsibility,  and  expense for
          repairs or corrections  pertaining to that contingency or cancellation
          right,  or for  inability  to  obtain  financing  if  the  contingency
          pertains to  financing,  except for items  which  Seller has agreed in
          writing to repair or correct.

Buyer and Seller  acknowledge  receipt of copy of this page,  which  constitutes
Page 3 of 6 Pages.

Buyer's Initials (TBS)   Seller's Initials (AN)

                                                             OFFICE USE ONLY

                                                       Reviewed by Broker
                                                       or Designee _____________
                                                       Date ____________________

                    American Software Systems (714) 727-0444

             RESIDENTIAL PURCHASE AGREEMENT AND RECEIPT FOR DEPOSIT
                       (RPA-14 PAGE 3 OF 5) REVISED 5/97

--------------------------------------------------------------------------------
BROKER: Phillips & Harris Land Brokers  AGENT: Phillips & Harris (707) 963-3644
                      Prepared using WINForms(TM) software
--------------------------------------------------------------------------------

<PAGE>

Property Address: 1877 St. Helena Highway, Rutherford (APN: 027-470-027; 028 &
                  029) FAP
                                                         Date: November 30, 1999

     D.  CANCELLATION  OF  SALE/ESCROW;  RETURN OF DEPOSITS:  If Buyer or Seller
         gives written NOTICE OF CANCELLATION  pursuant to rights duly exercised
         under  the terms of this  Agreement,  Buyer  and  Seller  agree to sign
         mutual instructions to cancel the sale and escrow and release deposits,
         less fees and costs, to the party entitled to the funds. Fees and costs
         may be  payable to service  providers  and  vendors  for  services  and
         products provided during escrow.  Release of funds will require mutual,
         signed  release  instructions  from  both  Buyer and  Seller,  judicial
         decision,  or  arbitration  award.  A party may be  subject  to a civil
         penalty of up to $1,000 for  refusal to sign such  instructions,  if no
         good faith dispute exists as to who is entitled to the deposited  funds
         (Civil Code s.s.1057.3).

17.  REPAIRS:  Repairs under this Agreement shall be completed prior to Close Of
     Escrow,  unless  otherwise  agreed  in  writing.  Work to be  performed  at
     Seller's  expense may be  performed by Seller or through  others,  provided
     that work complies with applicable  laws,  including  governmental  permit,
     inspection,  and  approval  requirements.  Repairs  shall be performed in a
     skillful manner with materials of quality comparable to existing materials.
     It is understood  that exact  restoration  of appearance or cosmetic  items
     folowing all Repairs may not be possible.

18.  WITHHOLDING  TAXES:  Seller and Buyer  agree to  execute  and  deliver  any
     instrument,  affidavit,  statement,  or insruction  reasonably necessary to
     comply with state and federal withholding Laws, if required.  (For example,
     C.A.R. FIRPTA and California compliance Forms AS-14 and AB-11.)

19.  KEYS:  At the time  possession  is made  available  to Buyer,  Seller shall
     provide  keys  and/or  means to  operate  all  Property  locks,  mailboxes,
     security  systems,  alarms,  and garage door openers.  If the Property is a
     unit in a conominium or subdivision, Buyer may be required to pay a deposit
     to the HOA to obtain keys to accessible HOA facilities.

20.  LIQUIDATED  DAMAGES:  If Buyer fails to complete this purchase by reason of
     any default of Buyer, Seller shall retain, as liquidated damages for breach
     of  contract,  the deposit  actually  paid.  However,  if the Property is a
     dwelling  with no more than  four  units,  one of which  Buyer  intends  to
     occupy,  then the amount  retained shall be no more than 3% of the purchase
     price.  Any excess shall be returned to Buyer.  Buyer and Seller shall also
     sign a separate  liquidated  damages  provision for any increased  deposit.
     (C.A.R. Form RID-11 shall fulfill this requirement.)

                                       Buyer's Initials TBS Seller's Initials AN

21.  DISPUTE RESOLUTION:

     A.  MEDIATION:  Buyer and  Seller  agree to  mediate  any  dispute or claim
         arising  between  them  out  of  this   Agreement,   or  any  resulting
         transaction,  before resorting to arbitration or court action,  subject
         to paragraphs 21C and D below. Mediation fees, if any, shall be divided
         equally  among the parties  involved.  If any party commences an action
         based on a dispute or claim to which this  paragraph  applies,  without
         first  attempting to resolve the matter  through  mediation,  then that
         party shall not be entitled to recover  attorney's  fees,  even if they
         would  otherwise be  available  to that party in any such action.  THIS
         MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS
         INITIALED.

     B.  ARBITRATION  OF  DISPUTES:  Buyer and Seller  agree that any dispute or
         claim in Law or equity  arising  between them out ot this  Agreement or
         any  resulting  transaction,  which is not settled  through  mediation,
         shall  be  decided  by  neutral,   binding   arbitration,   subject  to
         paragraphs 21C and D below.  The arbitrator shall be a retired judge or
         justice,  unless the parties  mutualy agree to a different  arbitrator,
         who shall render an award in  accordance  with  substantive  California
         Law. In all other  respects,  the  arbitration  shall be  conducted  in
         accordance  with  Part  III,  Title 9 of the  California  Code of Civil
         Procedure. Judgment  upon the award of the arbitrator(s) may be entered
         in any court having  jurisdiction.  The parties shall have the right to
         discovery in accordance with Code of Civil Prodecure s.s.1283.05.

         "NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY
         DISPUTE  ARISING OUT OF THE MATTERS  INCLUDED IN THE  'ARBITRATION  OF
         DISPUTES'  PROVISION  DECIDED BY NEUTRAL  ARBITRATION  AS  PROVIDED BY
         CALIFORNIA  LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT  POSSESS TO
         HAVE THE DISPUTE  LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN
         THE SPACE BELOW YOU ARE GIVING UP YOUR  JUDICIAL  RIGHTS TO  DISCOVERY
         AND APEAL,  UNLESS  THOSE  RIGHTS  ARE  SPECIFICALLY  INCLUDED  IN THE
         'ARBITRATION  OF  DISPUTES'  PROVISION.  IF YOU  REFUSE  TO  SUBMIT TO
         ARBITRATION AFTER AGREEING TO THIS PROVISION,  YOU MAY BE COMPELLED TO
         ARBITRATE  UNDER   THE  AUTHORITY  OF  THE  CALIFORNIA  CODE  OF CIVIL
         PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY."

         "WE  HAVE  READ AND  UNDERSTAND  THE  FOREGOING  AND  AGREE TO  SUBMIT
         DISPUTES  ARISING OUT OF THE MATTERS  INCLUDED IN THE  'ARBITRATION OF
         DISPUTES' PROVISION TO NEUTRAL ARBITRATION."

                                       Buyer's Initials TBS Seller's Initials AN

     C.  EXCLUSIONS FROM MEDIATION AND  ARBITRATION:  The following  matters are
         excluded from  Mediation and  Arbitratin  hereunder:

         (a)  A  judicial  or  non-judicial   foreclosure  or  other  action  or
         proceeding to enforce a deed of trust,  mortgage,  or installment  land
         sale  contract  as  defined  in Civil Code  s.s.2985;  (b) An  unlawful
         detainer  action;  (c) The filing or enforcement of a mechanic's  lien;
         (d) Any matter  which is within the  jurisdiction  of a probate,  small
         claims or  bankruptcy  court;  and (e) An action for  bodily  injury or
         wrongful  death, or for latent or patent defects to which Code of Civil
         Procedure s.s.337.1 or s.s 337.15 applies. The filing of a court action
         to enable the  recording  of a notice of pending  action,  for order of
         attachment,  receivership,  injunction,  or other provisional remedies,
         shall not  constitute  a violation  of the  mediation  and  arbitration
         provisions.

     D.  BROKERS:  Buyer and Seller agree to mediate and  arbitrate  disputes or
         claims  involving  either  or both  Brokers,  provided  either  or both
         Brokers shall have agreed to such mediation or  arbitration,  prior to,
         or within a reasonable  time after the dispute or claim is presented to
         Brokers.  Any  election  by either or both  Brokers to  participate  in
         mediation  or  arbitration  shall not  result in Brokers  being  deemed
         parties to the purchase and sale Agreement.

22. DEFINITIONS: As used in this Agreement:

     A.  "Acceptance"  means  the time  the  offer  or  final  counter  offer is
         accepted by the other party,  in  accordance  with  paragraph 30 of the
         Agreement or the terms of the final counter offer.

     B.  "Agreement" means the terms and conditions of this Residential Purchase
         Agreement and any counter offer.

     C.  "Days" means calendar days, unless otherwise required by Law.

     D.  "Days After ..." means the specified  number of calendar days after the
         occurrence of the event  specified,  not counting the calendar  date on
         which the specified event occurs.

     E.  "Close of Escrow"  means the date the grant deed, or other  evidence of
         transfer of title, is recorded.

     F.  "Law" means any law, code,  statute,  ordinance,  regulation,  or rule,
         which is  adopted  by a  controlling  city,  county,  state or  federal
         legislative or judicial body or agency.

     G.  "Repairs"   means   any   repairs,   alteratons,    replacements,    or
         modifications, (including pest control work) of the Property.

     H.  "Pest  Control  Certification"  means  a  written  statement  made by a
         registered  structural  pest  control  company  that  on  the  date  of
         inspection or re-inspection, the Property is "free" or is "now free" of
         "evidence of active infestation in the visible and accessible areas."

     I.  Singular and Plural terms each include the other, when appropriate.

23. MULTIPLE LISTING SERVICE ("MLS"): Brokers are authorized to report the terms
    of this  transaction to any MLS, to be published and disseminated to persons
    authorized to use the information on terms approved by the MLS.

Buyer and Seller  acknowledge  receipt of copy of this page,  which  constitutes
Page 4 of 6 Pages.

Buyer's Initials (TBS)   Seller's Initials (AN)

                                                             OFFICE USE ONLY

                                                       Reviewed by Broker
                                                       or Designee _____________
                                                       Date ____________________

                    American Software Systems (714) 727-0444

             RESIDENTIAL PURCHASE AGREEMENT AND RECEIPT FOR DEPOSIT
                       (RPA-14 PAGE 4 OF 5) REVISED 5/97

--------------------------------------------------------------------------------
BROKER: Phillips & Harris Land Brokers  AGENT: Phillips & Harris (707) 963-3644
                      Prepared using WINForms(TM) software.
--------------------------------------------------------------------------------

<PAGE>

Property Address: 1877 St. Helena Highway, Rutherford (APN: 027-470-027;028 &
                  029) FAP
                                                         Date: November 30, 1999

24.  EQUAL HOUSING OPPORTUNITY: The Property is sold in compliance with federal,
     state, and local anti-discrimination Laws.

25.  ATTORNEY'S FEES: In any action,  proceeding,  or arbitration  between Buyer
     and Seller arising out of this  Agreement,  the prevailing  Buyer or Seller
     shall  be  entitled  to  reasonable  attorney's  fees  and  costs  from the
     non-prevailing Buyer or Seller, except as provided in paragraph 21A.

26.  SELECTION OF SERVICE PROVIDERS:  If Brokers give  Buyer or Seller referrals
     to persons, vendors, or service or product providers ("Providers"), Brokers
     do not  guarantee  the  performance  of any of those  Providers.  Buyer and
     Seller may select ANY Providers of their own choosing.

27.  TIME OF ESSENCE;  ENTIRE  CONTRACT;  CHANGES:  Time is of the essence.  All
     understandings between the parties are incorporated in this Agreement.  Its
     terms are  intended  by the  parties as a final,  complete,  and  exclusive
     expression of their agreement with respect to its subject  matter,  and may
     not be contradicted  by evidence of any prior agreement or  contemporaneous
     oral  agreement. This  Agreement  may not be extended,  amended,  modified,
     altered, or changed, except in writing signed by Buyer and Seller.

28.  OTHER TERMS AND CONDITIONS, including ATTACHED SUPPLEMENTS:

        [ ] Buyer Inspection Advisory (C.A.R. Form BIA-14)

        [ ] Purchase Agreement Addendum (C.A.R. Form PAA-14, paragraph_________)

        See Contract Addendum #1.

29.  AGENCY   CONFIRMATION:   The  following  agency  relationships  are  hereby
     confirmed for this transaction:

     Listing  Agent:  Phillips & Harris  Land  Brokers  (Print Firm Name) is the
     agent of (check one):

     [ ] the Seller exclusively; or [X] both the Buyer and Seller.

     Selling  Agent:  ___________________  (Print  Firm  Name)  (if not  same as
     Listing Agent) is the agent of (check one):

     [ ] the Buyer exclusively;  or [ ] the Seller exclusively;  or [ ] both the
     Buyer and Seller.

     Real  Estate  Brokers are not parties to the  Agreement  between  Buyer and
     Seller.

30. OFFER:  This is an offer to  purchase  the  Property  on the above terms and
    conditions.  All paragraphs with spaces for initials by Buyer and Seller are
    incorporated in this Agreement only if initialed by all parties. If at least
    one but not all parties initial, a counter offer is required until agreement
    is reached.  Unless  Acceptance  of Offer is signed by Seller,  and a signed
    copy delivered in person, by mail, or facsimile,  and personally received by
    Buyer, or by Phillips & Harris (707) 963-3644,  who is authorized to receive
    it,  by  December  1, 1999  (date),  at 5:00 PM,  the offer  shall be deemed
    revoked and the deposit shall be returned.  Buyer has read and  acknowledges
    receipt  of a copy of the offer and  agrees  to the  above  confirmation  of
    agency  relationships.  If this  offer is  accepted  and Buyer  subsequently
    defaults,  Buyer may be  responsible  for payment of Brokers'  compensation.
    This Agreement and any supplement, addendum, or modification,  including any
    photocopy or facsimile,  may be signed in two or more  counterparts,  all of
    which shall constitute one and the same writing.

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

Buyer and Seller  acknowledge  and agree that  Brokers:  (a) Do not decide  what
price  Buyer  should  pay or Seller  should  accept;  (b) Do not  guarantee  the
condition of the Property; (c) Shall not be responsible for defects that are not
known to Broker(s)  and are not visually  observable  in  reasonably  accessible
areas of the Property; (d) Do not guarantee the performance or Repairs of others
who have provided  services or products to Buyer or Seller;  (e) Cannot identify
Property boundary lines; (f) Cannot verify inspection reports or representations
of others;  (g) Cannot  provide legal or tax advice;  (h) Will not provide other
advice or  information  that exceeds the  knowledge,  education  and  experience
required to obtain a real estate license.  Buyer and Seller agree that they will
seek legal,  tax,  insurance,  and other  desired  assistance  from  appropriate
professionals.

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

BUYER /s/ Thomas B. Selfridge   BUYER __________________________

31.  BROKER  COMPENSATION:  Seller  agrees to pay  compensation  for services as
     follows:

Per  Listing  Agreement,  to  Phillips  &  Harris  Land  Brokers,   Broker,  and
_____________________,  to ______________________________,  Broker, payable: (a)
On recordation of the deed or other  eividence of title; or (b) If completion of
sale  if  prevented  by default  of Seller,  upon  Seller's  default;  or (c) If
completion  of sale is  prevented  by default of Buyer,  only if and when Seller
collects  damages from Buyer, by suit or otherwise,  and then in an amount equal
to one-half of the damages recovered,  but not to exceed the above compensation,
after first  deducting title and escrow expenses and the expenses of collection,
if any.  Seller hereby  irrevocably  assigns to Brokers such  compensation  from
Seller's  proceeds,  and irrevocably  instructs  Excrow Holder to disburse those
funds to Brokers at close of escrow.  Commission  instructions can be amended or
revoked  only  with  the  consent  of  Brokers.  In any  action,  proceeding  or
arbitration  relating to the payment of such compensation,  the prevailing party
shall be entitled to reasonable attorney's fees and costs, except as provided in
paragraph 21A.

32.  ACCEPTANCE  OF  OFFER:  Seller  warrants  that  Seller is the owner of this
     Property or has the authority to execute this Agreement. Seller accepts the
     above offer, agrees to sell the property on the above terms and conditions,
     and agrees to the above  confirmation of agency  relationships.  Seller has
     read and acknowledges  receipt of a copy of this Agreement,  and authorizes
     Broker to deliver a signed copy to Buyer.

If checked: [X] SUBJECT TO ATTACHED COUNTER OFFER, DATED 12/3/99.

SELLER Ann M. Nordby for Rock River Trust Company, Trustee. Date 12/3/99

SELLER ________________________________________________________ Date _______

(___/___)  (Initials)  ACKNOWLEDGMENT  OF  RECEIPT:  Buyer or  authorized  agent
acknowledges receipt of signed Acceptance on (date) _________, at ____AM/PM.

Agency  relationships  are  confirmed  as above.  Real  Estate  Brokers are  not
parties to the  Agreement  between  Buyer and  Seller.  Receipt  for  deposit is
acknowledged.

Real  Estate  Broker  (Selling  Firm  Name)  Phillips & Harris  Land  Brokers By
_____________  Date November 30, 1999

Address 1224 Adams Street,  St. Helena, CA 94574-____.  Telephone (707) 963-3644
Fax (707) 963-4471.

Agency relationships are confirmed as above. Real Estate Brokers are not parties
to the Agreement between Buyer and Seller.

Real  Estate  Broker  (Listing  Firm  Name)  Phillips & Harris  Land  Brokers By
_____________ Date ______

Address 1224 Adams Street,  St. Helena, CA 94574-____.  Telephone (707) 963-3644
Fax (707) 963-4471.

This form is  available  for use by the entire real estate  industry.  It is not
intended  to  identify  the user as a  REALTOR(R).  REALTOR(R)  is a  registered
collective  membership  mark which may be used only by  members of the  NATIONAL
ASSOCIATION OF REALTORS(R) who subscribe to its Code of Ethics.

                                                             OFFICE USE ONLY

                                                       Reviewed by Broker
                                                       or Designee _____________
                                                       Date ____________________

                    American Software Systems (714) 727-0444

             RESIDENTIAL PURCHASE AGREEMENT AND RECEIPT FOR DEPOSIT
                       (RPA-14 PAGE 5 OF 5) REVISED 5/97

--------------------------------------------------------------------------------
BROKER: Phillips & Harris Land Brokers  AGENT: Phillips & Harris (707) 963-3644
                      Prepared using WINForms(TM) software.
--------------------------------------------------------------------------------

<PAGE>

[LOGO] CALIFORNIA                                 COUNTER OFFER NO. 1
       ASSOCIATION                    (For use by Seller or Buyer. May be used
       OF REALTORS(R)                        for Multiple Counter Offer.)

        THIS IS INTENDED TO BE A LEGALLY BINDING AGREEMENT -- READ IT CAREFULLY.
          CALIFORNIA ASSOCIATION OF REALTORS(R) (C.A.R.) STANDARD FORM

--------------------------------------------------------------------------------
 BROKER: Phillips & Harris Land Brokers AGENT: Phillips & Harris (707) 963-3644
                      Prepared using WINForms(TM) software

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

This is a counter offer to the [X] Offer, [ ] Counter Offer, [ ] Other ________,
dated December 03, 1999, regarding (property address):  1877 St. Helena Highway,
Rutherford (APN:  027-470-027;  028 & 028) between Chalone Wine Group,  "Buyer,"
and William A. Hewitt Trust, "Seller."

1.   TERMS:  The  terms and  conditions  of the above  referenced  document  are
     accepted subject to the following:

     A.  Paragraphs in the purchase  contract  (offer) which require initials by
         all parties,  but are not initialized by all parties, are excluded from
         the final  agreement  unless  specifically  referenced for inclusion in
         paragraph 1C of this or another Counter Offer.

     B.  Unless otherwise specified in writing,  down payment and loan amount(s)
         will be adjusted in the same proportion as in the original offer.

     C.  Price shall be $14,500,000.

         Page 1 #2.  Escrow  closing  within 60 days of  acceptance.
         Page 3 #16. Buyer shall have 50 days for inspections.
         Page 3 #10. Three (3) dining room light fixtures excluded.

         Contract Addendum #1:

         #2 Escrow - Escrow shall close within 10 days after written  removal of
         contingencies.

         #16A.2  Time  Periods:  Buyer  shall  have 50 days from  acceptance  to
         investigate  all  aspects of the subject  property at Buyer's  expense.
         Buyer shall  approve of  property's  suitability  for Buyer's  needs at
         Buyer's sole and absolute  discretion and remove all  contingencies  in
         writing  within 50 days of acceptance or this contact shall become null
         & void and  Buyer's  deposit  returned.  Buyer  shall  have  access  to
         vineyard for necessary tests including but not limited to investigation
         of soils.

         Other Terms & Conditions:

         #1. This offer is  contingent  upon  Chalone Wine Group,  Inc.  (Buyer)
         securing a contract to puchase 1865 St. Helena  Highway  within 10 days
         of acceptance of this offer and this contingency  removed in writing or
         this contact shall become null and void and Chalone Wine Group,  Inc.'s
         deposit returned.

         #2. If new  agreement is not reached  with  Beaulieu  Vineyards,  Buyer
         agrees to sign the  assignment as called for in the grape contract with
         BV Winery.

         New Condition:

         Buyer and Seller  agree to keep  price,  terms and  conditions  of sale
         confidential  until  close of  escrow.  Buyer  shall  have the right to
         inform  their  Board of  Directors  and other  legal  and  professional
         advisors.

     D.  The following  attached  supplements  are  incorporated in this Counter
         Offer:

         [ ] -----------------------           [ ] -----------------------------
         [ ] -----------------------           [ ] -----------------------------

2.   [ ] (If  Checked:)  MULTIPLE  COUNTER  OFFER:  Seller  is  making a Counter
     Offer(s) to another  prospective  buyer(s) on terms which may or may not be
     the same as in this Counter  Offer.  Acceptance  of this  Counter  Offer by
     Buyer shall not be binding unless and until it is subsequently re-signed by
     Seller in paragraph 7 below and returned to Buyer or Buyer's  agent.  Prior
     to the  completion of all of these  events,  Buyer and Seller shall have no
     duties or obligations for the purchase or sale of the Property.

3.   RIGHT TO ACCEPT  OTHER  OFFERS:  Seller  reserves  the right to continue to
     offer the  Property  for sale or for other  transaction,  and to accept any
     other offer at any time prior to communication of acceptance,  as described
     in  paragraph  4.  Seller's  acceptance  of another  offer prior to Buyer's
     acceptance  and  communication  of  acceptance  of this Counter Offer shall
     revoke this Counter Offer.

4.   EXPIRATION: Unless acceptance of this Counter Offer is signed by the person
     receiving  it, and  communication  of  acceptance  is made by  delivering a
     signed  copy in  person,  by mail,  or by  facsimile  which  is  personally
     received,  to the person  making this Counter Offer or to Phillips & Harris
     (707)  963-3644,  by 5:00 PM on the third  calendar  day after this Counter
     Offer is written (or, if checked,  [X] date:  December 07, 1999,  time 5:00
     PM),  this Couner  Offer shall be deemed  revoked and the deposit  shall be
     returned to Buyer. This Counter Offer may be executed in counterparts.

     As the person(s) making this Counter Offer on the terms above, receipt of a
     copy is acknowledged.

     /s/ Ann M. Nordby for Rock River        Date: 12/3/99       Time: 12:06 PM
         Trust Company, Trustee
     _____________________________________   Date: ____________  Time: ____AM/PM

5.   ACCEPTANCE: I/WE accept the above Counter Offer (if checked: [ ] SUBJECT TO
     THE ATTACHED COUNTER OFFER) and acknowledge receipt of a copy.

     /s/ Thomas B. Selfridge                 Date: Dec 3, 1999   Time: 11:30 PM

     _____________________________________   Date: ____________  Time: ____AM/PM

6.   ACKNOWLEDGEMENT  OF  RECEIPT:   Receipt  of  signed  acceptance  on  (date)
     ____________,  at _____ AM/PM,  by the maker of the Counter Offer, or other
     person designated in paragraph 4, is acknowledged. (____/____) (initials)

--------------------------------------------------------------------------------
7.   MULTIPLE  COUNTER  OFFER  SIGNATURE  LINE:  (Paragraph  7  applies  only if
     paragraph 2 is checked.) By signing  below,  Seller  accepts this  Multiple
     Counter Offer,  and creates a brinding  contract.  (NOTE TO SELLER:  Do NOT
     sign in this paragraph  until after Buyer signs the acceptance in paragraph
     5, and returns to Seller for re-signing.)

     _____________________________________   Date: ____________  Time: ____AM/PM

     _____________________________________   Date: ____________  Time: ____AM/PM

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

THIS  STANDARDIZED  DOCUMENT HAS BEEN APPROVED BY THE CALIFORNIA  ASSOCIATION OF
REALTORS(R)  (C.A.R.) IN FORM ONLY. NO REPRESENTATION IS MADE AS TO THE APPROVAL
OF THE FORM OF ANY  SUPPLEMENTS  NOT CURRENTLY  PUBLISHED BY C.A.R. OR THE LEGAL
VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. IT SHOULD NOT
BE USED WITH EXTENSIVE RIDERS OR ADDITIONS.

A REAL  ESTATE  BROKER  IS  THE  PERSON  QUALIFIED  TO  ADVISE  ON  REAL  ESTATE
TRANSACTIONS.  IF  YOU  DESIRE  LEGAL  OR TAX  ADVICE,  CONSULT  AN  APPROPRIATE
PROFESSIONAL.

This form is available  for use by the entire real estate  industry.  The use of
this form is not intended to identify the user as a REALTOR(R).  REALTOR(R) is a
registered  collective  membership mark which may be used only by members of the
NATIONAL ASSOCIATION OF REALTORS(R) who subscribe to its Code of Ethics.

The copyright laws of the United States (17 U.S.  Code) forbid the  unauthorized
reproduction  of this form by any means,  including  facsimile  or  computerized
formats.

Copyright(C) 1991-1996 CALIFORNIA ASSOCIATION OF REALTORS(R)

REBS INC

Published and distributed by:
REAL ESTATE BUSINESS SERVICES, INC.
a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS(R)
525 South Virgil Avenue, Los Angeles, California 90020

                                       ____________OFFICE USE ONLY______________
                                          Reviewed by Broker or Designee _______
                                                Date ________________
                                       -----------------------------------------

                                                                            LOGO

                                                                   EQUAL HOUSING
                                                                     OPPORTUNITY

                    American Software Systems (714) 727-0444
                       COUNTER OFFER (CO-14) REVISED 9/95

<PAGE>

                   ADDENDUM TO REAL ESTATE PURCHASE CONTRACT

The date for acceptance of the Real Estate Purchase  Contract dated November 30,
1999 for the purchase of the  property at 1877 St.  Helena  Highway  wherein the
Chalone  Wine  Group is the Buyer and the  Hewitt  Trust is the Seller is hereby
extended from December 1, 1999 at five P.M. ti December 7, 1999 at noon.

All other terms and conditions remain the same.

Buyer:                                            Dated:

Thomas B. Selfridge                               12-1-99
--------------------                              ------------

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