Document:

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                                                                   Exhibit 10.19

                                  RETAIL LEASE

                                     between

                               R & R LAND COMPANY,

                                   as "Lessor"

                                       and

                           DEAN & DELUCA MARKETS, LLC

                                   as "Lessee"

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                                TABLE OF CONTENTS

                                                                            PAGE

RECITALS.......................................................................1

1. PREMISES....................................................................1
2. TERM; POSSESSION............................................................1
   2.1 Initial Term............................................................1
   2.2 Extension Option........................................................2
3. RENT AND SECURITY DEPOSIT...................................................3
4. APPURTENANT RIGHTS IN COMMON AREA...........................................4
   4.1 Additional Rights Granted to Lessee.....................................4
   4.2 Parking And Access......................................................4
      (a) Available Parking....................................................4
      (b) Service Driveways....................................................5
   4.3 Restrictions on Development.............................................5
5. USE.........................................................................5
6. IMPROVEMENTS AND ALTERATIONS................................................5
7. ABANDONMENT.................................................................6
8. REPAIRS.....................................................................6
9. LIENS.......................................................................7
10. SUBORDINATION; NON-DISTURBANCE AND ATTORNMENT..............................7
11. COMPLIANCE WITH GOVERNMENTAL REGULATIONS...................................8
12. INDEMNIFICATION; EXCULPATION AND INSURANCE.................................8
   12.1 Lessee's Indemnification...............................................8
   12.2 Lessor's Indemnification...............................................8
   12.3 Exculpation............................................................9
   12.4 General................................................................9
   12.5 Fire and Casualty Insurance............................................9
   12.6 Insurable Interest in Trade Fixtures and Improvements.................10
   12.7 Waiver of Subrogation Rights..........................................10
   12.8 Survival..............................................................10
13. ADVERTISEMENTS AND SIGNS..................................................11
14. UTILITIES.................................................................11
15. ENTRY BY LESSOR...........................................................12
16. DESTRUCTION OF PREMISES...................................................12
   16.1 Lessor's Duty to Repair...............................................12
   16.2 Lessor's Right to Terminate...........................................12
   16.3 Lessee's Right to Terminate...........................................13
   16.4 Waiver of Statutory Provisions........................................13
17. EMINENT DOMAIN............................................................13
   17.1 Premises/Ingress and Egress...........................................13
   17.2 Restoration of Premises...............................................14

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18. ASSIGNMENT AND SUBLETTING.................................................14
19. INSOLVENCY OR BANKRUPTCY..................................................15
20. LESSOR'S REMEDIES.........................................................15
21. SURRENDER OF LEASE........................................................17
22. ATTORNEY'S FEES...........................................................17
23. NOTICE....................................................................17
24. WAIVER....................................................................17
25. HOLDING OVER..............................................................17
26. SUCCESSORS AND ASSIGNS....................................................17
27. TIME......................................................................17
28. LATE CHARGE...............................................................18
29. LESSOR'S RIGHT OF FIRST REFUSAL TO PURCHASE...............................18
30. QUIET ENJOYMENT...........................................................18
31. COVENANT OF TITLE.........................................................18
32. HAZARDOUS MATERIAL........................................................19
   32.1 Lessor's Representations, Warranties and Covenant.....................19
   32.2 Lessor's Indemnification Obligation...................................19
   32.3 Lessee's Covenant and Indemnification Obligation......................19
   32.4 Definition............................................................20
33. MEMORANDUM OF LEASE.......................................................21
34. BROKER'S REPRESENTATION...................................................21
35. FORCE MAJEURE.............................................................21
36. CONDITION OF PREMISES AT TERMINATION......................................21
37. CONSENTS AND APPROVALS....................................................22
38. AUTHORITY.................................................................22
   38.1 Lessor's Representations..............................................22
   38.2 Lessee's Representations..............................................22
39. ENTIRE AGREEMENT..........................................................22
40. LESSOR'S LIABILITY........................................................22
41. ESTOPPEL CERTIFICATES.....................................................22
42. MISCELLANEOUS.............................................................23

EXHIBIT A: Legal Description of the Land

EXHIBIT B: Plot Plan

EXHIBIT C: Existing Mortgages

EXHIBIT D: Memorandum of Lease

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                                  RETAIL LEASE

         THIS RETAIL LEASE ("Lease") is made and entered into this 18th day of
March, 1999, by and between R & R LAND, LLC, a California limited liability
company ("Lessor"), and DEAN & DELUCA MARKETS, LLC, a California limited
liability company, ("Lessee").

                                   RECITALS:

         A. Lessor is the owner of certain "Land" (defined below), upon which is
constructed the "Building" (defined below).

         B. Lessor desires to lease to Lessee and Lessee desire to lease from
Lessor the entire rentable area of the Building.

         NOW THEREFORE, in consideration of the foregoing and other good and
valuable consideration, which the parties hereby acknowledge, Lessor and Lessee
hereby agree as follows:

         1. PREMISES. Lessor hereby leases to Lessee, and Lessee hereby leases
from Lessor, upon the terms and subject to the conditions of this Lease, the
entire rentable area (the "Premises"), consisting of approximately 15,000
rentable square feet of retail space, in that building, and all appurtenances
thereto, including the bakery use permits as they currently exist, located in
St. Helena, County of Napa, State of California, known for U.S. Postal purposes
as 607 St. Helena Highway South, St. Helena, California (the "Building"), which
Building is located on the certain real property located in Napa County commonly
known as Assessors Parcel No. 027-150-01 and more fully described in EXHIBIT A
attached hereto (the "Land"). The location of the Building on the Land, the
"Common Areas," the "Adjacent Building" (as those terms are defined below),
entrances, exits, driveways, parking areas and service drives are depicted on
the drawing attached hereto as EXHIBIT B.

         2. TERM; POSSESSION.

            2.1 INITIAL TERM. The initial term of this Lease ("Initial Term")
shall commence on March 18, 1999, (the "Commencement Date") and, unless sooner
terminated, shall expire nine (9) years after the Commencement Date (the
"Expiration Date"). As used in this Lease, "Month" shall mean a calendar month,
except that if the Term begins on a day other than the first day of a calendar
month, the first "month" shall be the period from (and including) the
Commencement Date through (and including) the last day of the calendar month in
which the Commencement Date falls, and if the Term ends on a day other than the
last day of a calendar month, the last "month" shall be the period from (and
including) the first day of the calendar month in which the Term ends through
(and including) the day on which the Term ends. The term "Lease Year" shall mean
each twelve (12) month period from and after the Commencement Date and each
anniversary thereof. If the Commencement Date occurs on a date other than the
first day of a month, the first Lease Year shall include the partial month and
the next twelve (12) full calendar months.

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            2.2 EXTENSION OPTION. Provided that Dean & Deluca Markets, LLC has
not assigned this Lease, or sublet any or all of the Premises (it being intended
that all rights pursuant to this provision are and shall be personal to the
original Lessee under this Lease and shall not be transferable or exercisable
for the benefit of any transferee), and provided that Lessee is not in default
under this Lease, Lessee shall have options (each an "Extension Option") to
extend the Term for up to four (4) additional consecutive periods of three (3)
years and thereafter for up to two (2) additional consecutive periods of five
(5) years (each an "Extension Period"), by giving written notice to Lessor of
the exercise of any such Extension Option at least six (6) months, but not more
than twelve (12) months, prior to the expiration of the Initial Term or the
prior Extension Period, as the case may be. The exercise of any Extension Option
by Lessee shall be irrevocable and shall cover the entire Premises leased by
Lessee pursuant to this Lease. Upon such exercise, the Term of the Lease shall
automatically be extended for the applicable Extension Period without the
execution of any further instrument by the parties; provided that Lessor and
Lessee shall, if requested by either party, execute and acknowledge an
instrument confirming the exercise of the Extension Option. The failure of
Lessee to exercise any Extension Option, or the expiration or termination of the
Lease, shall terminate Lessee's right to exercise any subsequent Extension
Option and Lessee shall have no further right to renew or extend this Lease.

         Any extension of the Term shall be upon all the terms and conditions
set forth in this Lease and all Exhibits thereto, except that (i) Lessee shall
have no further option to extend the Term of the Lease, other than as
specifically set forth herein; and (ii) Rent for any such Extension Period shall
be equal to the then Fair Market Rent (as defined below) for the Premises for
the space and term involved, which shall be determined as set forth below.

              (a) "Fair Market Rent" shall mean the "fair market" Rent at the
time or times in question for the applicable space, based on the prevailing
rentals then being charged to tenants in other retail buildings in the general
vicinity of the Building of comparable size, location, quality and age as the
Building for leases with terms equal to the Extension Period, taking into
account the creditworthiness and financial strength of the tenant, the financial
guaranties provided by the tenant (if any), the value of market concessions
(including the value of construction, renovation, moving and other allowances or
rent credits), the desirability, location in the building, size and quality of
the space, tenant finish allowance and/or tenant improvements, included
services, operating expenses and tax and expense stops or other escalation
clauses, and brokerage commissions, for the space in the Building for which Fair
Market Rent is being determined and for comparable space in the buildings which
are being used for comparison. Fair Market Rent shall also reflect the then
prevailing rental structure for comparable retail buildings in the general
vicinity of the Property, so that if, for example, at the time Fair Market Rent
is being determined the prevailing rental structure for comparable space and for
comparable lease terms includes periodic rental adjustments or escalations, Fair
Market Rent shall reflect such rental structure.

              (b) Lessor and Lessee shall endeavor to agree upon the Fair Market
Rent. If they are unable to so agree within thirty (30) days after receipt by
Lessor of Lessee's notice of exercise of the Extension Option, Lessor and Lessee
shall mutually select a licensed real estate broker who is active in the leasing
of retail space in the general vicinity of the

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Property. Lessor shall submit Lessor's determination of Fair Market Rent and
Lessee shall submit Lessee's determination of Fair Market Rent to such broker,
at such time or times and in such manner as Lessor and Lessee shall agree (or as
directed by the broker if Lessor and Lessee do not promptly agree). The broker
shall select either Lessor's or Lessee's determination as the Fair Market Rent,
and such determination shall be binding on Lessor and Lessee. If Lessee's
determination is selected as the Fair Market Rent, then Lessor shall bear all of
the broker's cost and fees. If Lessor's determination is selected as the Fair
Market Rent, then Lessee shall bear all of the broker's cost and fees.

              (c) In the event the Fair Market Rent for any Extension Period has
not been determined at such time as Lessee is obligated to pay Rent for such
Extension Period, Lessee shall pay as Rent pending such determination, the Rent
in effect for such space immediately prior to the Extension Period; provided,
that upon the determination of the applicable Fair Market Rent, any shortage of
Rent paid, together with interest at the rate specified in the Lease, shall be
paid to Lessor by Lessee.

              (d) In no event shall the Rent during any Extension Period be less
than the Rent in effect immediately prior to such Extension Period.

              (e) The term of this Lease, whether consisting of the Initial Term
alone or the Initial Term as extended by any Extension Period (if any Extension
Option is exercised), is referred to in this Lease as the "Term."

         3. RENT AND SECURITY DEPOSIT. During the Initial Term, Lessee agrees to
pay to Lessor as monthly rent for the Premises the following amounts:

            LEASE YEARS:                               MONTHLY RENT
                1-3                                       $11,000
                4-6                                       $11,500
                7-9                                       $12,000

         The monthly rent for the Premises under either Subsections 3.1
is referred to herein as "Rent." Rent shall be payable in advance on the first
day of each and every calendar month during the Term, except that Rent for any
partial month at the beginning of the Term shall be paid on the Commencement
Date. Rent for any partial month at the beginning or end of the Term shall be
prorated based on the actual number of days in the month. Rent is payable in
lawful money of the United States of America, which Lessee agrees to pay to
Lessor, without deduction or offset, except as expressly provided herein, at
such place as may be designated from time to time by Lessor. Lessee shall also
pay to Lessor a sum equal to fifty percent (50%) of any real property taxes
levied upon the Land (after taking into account any abatement or refund of taxes
received by Lessor). Any such taxes during each succeeding taxable year shall be
payable in twelve equal monthly installments to the Lessor, payable the first of
each month commencing on the Commencement Date. The term "Additional Rent" shall
mean all payments required to be made

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by Lessee under this Lease for real property taxes, insurance, and Lessee's
"Proportionate Share" (as defined below). There shall be no security deposit.

         4. APPURTENANT RIGHTS IN COMMON AREA.

            4.1 ADDITIONAL RIGHTS GRANTED TO LESSEE. The following rights are
granted to Lessee as appurtenances to the Premises:

                (a) Lessee and Lessee's employees and customers shall have the
non-exclusive easement and right to use, in common with Lessor and all other
occupants of the "Property" (defined below) and all persons having business with
Lessor and such other occupants, without charge, the parking areas in the
Property owned by Lessor in which the Premises are located and all other areas
and facilities of the Property designed or intended for common use, including
without limitation "Common Areas" as defined below. The term "Common Areas"
means all areas and facilities outside the Premises and within the exterior
boundaries of the Property, but not including the Adjacent Building, that are
provided and designated by Lessor for the general use and convenience of Lessee
and of other tenants of the Property and their respective authorized
representatives and invitees. Common Areas shall include, at a minimum, all
pedestrian walkways, landscaped areas, sidewalks, service drives, parking areas,
entrances, exits, driveways and roads, substantially as depicted on EXHIBIT B.

                (b) Lessor shall maintain the parking areas, landscaping and
other Common Areas of the Property, for which Lessee shall reimburse Lessor
fifty percent (50%) of the reasonable costs thereof ("CAM Charges"), except for
those items expressly stated in this Lease as Lessor's responsibility.

            4.2 PARKING AND ACCESS.

                (a) AVAILABLE PARKING. Lessee shall have access, during the
Lease term, to the areas provided for the parking of automobiles upon the Land
and intended for common use, as depicted on EXHIBIT B. All parking spaces must
be maintained as non-exclusive "customer only" parking within a two hundred
(200) foot radius of the front entrances to the Premises, and such parking
spaces shall not be assigned for employee parking for this or any other tenant;
provided, with respect to existing tenants of the Property (and their assignees
and sublessees), Lessor shall only be required to use reasonable efforts to
enforce this provision. In addition, Lessor shall enter into agreement
("Reciprocal Parking Agreement") prior to the Commencement Date, in a form
reasonably acceptable to Lessee, with the owner of the adjacent legal parcel
("29 Joe's Parcel"), commonly known as 677 St. Helena Highway South (APN
027-150-015), which reciprocal parking Agreement shall provide for Reciprocal
Parking and access rights (on a non-exclusive, "first-come, first-served" basis)
for Lessee's customers and employees to park on the 29 Joe's Parcel and the
customer's and employees of the 29 Joe's Parcel to park in the parking areas of
the Common Area and which Reciprocal Parking Agreement shall remain in force
during the Term. Lessee agrees to pay its proportionate share of the reasonable
costs incurred to maintain and repair, but not construct, the parking area on
the 29 Joe's Parcel, which proportionate share shall be agreed between the
parties.

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                (b) SERVICE DRIVEWAYS. Lessor shall use reasonable efforts to
maintain the ingress and egress that exists on the day that this Lease is
executed, as shown on EXHIBIT B, from public streets to the front and rear
entrances of the Premises for the purpose of receiving and delivering fixtures,
merchandise and other property.

            4.3 DEVELOPMENT AND REPAIR OF COMMON AREAS. Lessor hereby reserves
the right to, at any time and from time to time, without liability to Lessee,
and without constituting an eviction, constructive or otherwise, or entitling
Lessee to any abatement of rent or to terminate this Lease or otherwise
releasing Lessee from any of Lessee's obligations under this Lease:

                (a) To make alterations, additions, repairs, improvements to or
in, all or any part of the Common Areas;

                (b) To install and maintain any and all signs on the exterior
and interior of the Building;

                (c) To reduce, increase, enclose or otherwise change at any time
and from time to time the size, number, location and nature of the Common Areas
(including the parking facilities) and other tenancies and premises in the
Property and to create additional rentable areas through the use or enclosure of
common areas, except as otherwise provided herein;

                (d) If any governmental authority promulgate or revises any Law
or imposes mandatory or voluntary controls or guidelines on Lessor or the
Property relating to the use or conservation of energy or utilities or the
reduction of automobile or other emissions or reduction or management of traffic
or parking on the Property (collectively "Controls"), to comply with such
Controls, whether mandatory or voluntary, or make any alterations to the Common
Areas or Property related thereto.

         5. USE. Lessee may use the Premises for a food market, delicatessen
(with table seating, but not waiter service), food or beverage-related education
and demonstration activities (for e.g., cooking demonstrations), olive oil,
vinegar and mustard processing, espresso bar, sales of foods and beverages of
any and all kinds, sales of kitchenware, food service center, bakery sales,
retail wine sales, Wine Tasting, all related or ancillary uses and for related
general office uses and all other uses ("Other Uses") permitted in accordance
with local zoning regulations, provided, that Lessee shall first notify Lessor
of such Other Uses and further provided that such Other Uses do not conflict
with any exclusive uses that Lessor has granted to another tenant of the
Property or any prospective tenant with whom Lessor is then negotiating to lease
space at the Property. Lessee shall not do, bring, keep or sell anything in or
about the Premises that will create an unreasonably dangerous condition at the
Property, or is prohibited by, or that will cause a cancellation of or an
increase in the premium for, any insurance policy covering the Premises, unless
Lessee agrees to pay any such increase.

         6. ALTERATIONS. Lessee may, at its own expense, and from time to time,
make such alterations, additions or changes, structural or otherwise, in and to
the Premises as it may

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deem necessary or desirable; provided, however, Lessee shall obtain Lessor's
prior written consent to drawings and specifications (including engineer's
calculations) for exterior or structural alterations, additions or changes; and
provided, further, that Lessor shall not withhold its consent to structural work
if the structural integrity of the building in which the Premises is located
will not be impaired by such work. Lessor agrees not to unreasonably withhold or
delay its consent. In no event, however, will Lessee increase the "footprint"
(which would not include changes to the total square footage of the Building
that do not change the footprint, such as adding a mezzanine floor) of the
Building beyond its existing square footage or reduce the footprint to less than
11,000 square feet without Lessor's consent, which may be withheld in Lessor's
sole discretion. The term "structural changes" as used herein shall not include
moving of non-load bearing partitions, relocation of building entry doors
(provided no new openings are made in exterior walls), minor plumbing and
electrical work, modification and rearrangement of fixtures or other minor
changes. Lessor, at Lessee's sole cost, shall cooperate with Lessee in securing
building and other permits or authorizations as may be required from time to
time for any work permitted hereunder, but shall not be required to make any
public appearance before any planning commission or other governmental
authority. Notwithstanding the foregoing, Lessee shall have the right to install
furnishings, counters, interior partitions and equipment (including without
limitation, electric fixtures or air handling units) that are not a permanent
part of the structure, whether the same shall be affixed or nailed to the
Premises or not, or by Lessee, which shall at all times be regarded as "Trade
Fixtures" and shall be separately assessed for real property tax purposes. Such
Trade Fixtures may be removed by the Lessee at any time prior to the termination
of this Lease or any renewals or extensions thereof at Lessee's own expense. If
Lessee removes any of such Trade Fixtures as herein designated, Lessee shall do
so in a way as not to injure the Building.

         7. ABANDONMENT. Lessee shall not vacate or abandon the Premises at any
time during the Term, except during a major renovation, and if Lessee shall
abandon, vacate or surrender such Premises, or be disposed by process of law, or
otherwise, any personal property belonging to Lessee and left on the Premises
shall be deemed to be abandoned if the same is not claimed thirty (30) days
after written notice, at the option of the Lessor, except such property as may
be mortgaged to Lessor.

         8. MAINTENANCE AND REPAIRS. By taking possession of the Premises Lessee
agrees that the Premises are then in a good and tenantable condition. During the
Term, Lessee shall, at its sole cost and expense, keep, repair and maintain the
Premises, including all windows (interior and exterior), plate glass and
glazing, plumbing and electrical systems located within the Premises, interior
walls (excepting the structural portion of the walls forming the perimeter of
the Premises), floors (except as covered by contractor's warranty, if any) and
all interior improvements within the Premises and any septic system that Lessee
installs for its own use, in a first class condition, and Lessee shall keep the
Premises in a clean, safe and orderly condition.

         Lessor shall provide, without reimbursement from Lessee, (i)
electrical and plumbing to the exterior wall of the Premises in a manner meeting
all Applicable Laws (including, all current codes) for the existing usage and
electrical and plumbing demands; (ii) all maintenance, replacement and repair to
the foundation, roof, parapets, flashing, gutters,

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downspouts, floor slab, outer walls and structural portions of the Building
which shall be necessary to maintain the Premises in a safe, dry and tenantable
condition and in good order and repair and the parking lot (repaving and
restriping only), curbs, and sidewalks; (iii) all maintenance, replacement and
repair of underground utility installations and underground electrical conduit
and wire; including, but not limited to, repairs, maintenance and replacements
which are occasioned by settlement of the Premises, or a portion thereof, or
caused by soil conditions which are not due to change in use of the Premises by
Lessee; and (iv) any repair, maintenance or restoration required as a result of
the act or neglect of Lessor or its agents, employees, contractors, members or
partners (collectively, "Representatives") or resulting from the failure of
Lessor to perform in a timely manner its obligations under this Lease.

         Notwithstanding the foregoing, Lessee shall pay the cost of repairs for
any damage occasioned by Lessee's use of the Premises or Property or any act or
omission of Lessee or Lessee's representatives or visitors, to the extent (if
any) not covered by Lessor's insurance. Lessee shall be also responsible for
maintaining those portions of the roof and structure of the Building to the
extent of any replacements or improvements made by Lessee. Lessee shall also be
responsible for installing and maintaining any improvements to the electrical
and plumbing (including septic systems) facilities to the Premises to the extent
that such improvements are necessary due to Lessee's needs in the Premises.

         Lessee hereby waives all rights under and benefits of Subsection (1) of
Civil Code Section 1932 and Sections 1941 and 1942 of the California Civil Code
and under any similar law, statute or ordinance now or hereafter in effect.

         9. LIENS. Lessee shall keep the Premises free from any liens arising
out of work performed, materials furnished, or obligations incurred by Lessee.
If Lessee elects to make improvements or additions to the Premises at its own
expense, at least ten (10) days prior to the commencement of any construction
involving expenditures for labor and materials in excess of $5,000.00, Lessee
shall notify Lessor, in writing, of its intention to commence such construction
and the scheduled date for the commencement of such construction. Lessor shall
have the right to enter the Premises to post and keep posted any and all notices
of non-responsibility, or other matters provided or permitted by law for the
Lessor's protection, in connection with any such construction work.

         10. SUBORDINATION; NON-DISTURBANCE AND ATTORNMENT.

             10.1. Upon written request by Lessor, this Lease shall be
subordinate to the lien of any first mortgage or deed of trust in any amount
whatsoever now or hereafter placed on or against the land or improvements or
either thereof, of which the Premises are a part, or on or against the Lessor's
interest or estate therein (collectively, "Encumbrance"), without the necessity
of the execution and delivery of any further instruments to effectuate such
subordination; provided, however, that such subordination shall only be
effective and be on the express condition that the holder of the Encumbrance
executes and delivers to Lessee a Non-Disturbance Agreement in a form Reasonably
acceptable to Lessee ("Non-Disturbance Agreement"), stating that this Lease
shall survive the termination of the Encumbrance by lapse of

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time, foreclosure or otherwise so long as Lessee is not in default under this
Lease and that the holder of the Encumbrance will honor the rights of first
refusal granted to Lessee pursuant to this Lease. If any mortgagee, trustee, or
ground lessor shall elect to have this lease prior to the lien of its mortgage,
deed of trust, or ground lease, and gives the Lessee written notice thereof,
this Lease shall be deemed prior to such mortgage, deed of trust, or ground
lease, whether it is dated prior or subsequent to the date of the mortgage, deed
of trust or ground lease, or the recording thereof.

             10.2 Within five (5) days from request, the Lessee agrees to
execute and deliver without charge such further instruments evidencing the
subordination of this Lease to such ground or underlying leases and to the lien
of any such mortgages or deeds of trust as the Lessor may reasonably request;
provided that a Non-Disturbance Agreement is executed contemporaneously
therewith.

             10.3 In the event of foreclosure or the exercise of the power of
sale under any mortgage or deed of trust covering the Premises, the Lessee
agrees to attorn to the purchaser upon any such foreclosure or sale and
recognize such purchaser as the Lessor under this Lease, subject to such
purchaser assuming the remaining obligations of Lessor under the Lease.

         11. COMPLIANCE WITH GOVERNMENTAL REGULATIONS. Lessee shall observe
and comply with all requirements, rules, orders and regulations of the federal,
state and municipal governments or other duly constituted public authority
affecting the Premises ("Applicable Laws"), including the making of
nonstructural alterations, insofar as they are due to Lessee's occupancy;
provided, however, that in the event such Applicable Laws shall either (a)
require the removal of asbestos or other Hazardous Material not placed on the
Premises by Lessee, (b) require structural changes, including but not limited
to, the erection of fire escapes or exits, or (c) require nonstructural changes
required of retail and/or commercial properties generally irrespective of the
nature of the current tenancy, unless such changes were triggered by a
remodeling or renovation of the Premises by Lessee (in which case Lessee shall
be solely responsible for the changes), then the same shall be complied with by
Lessor at its sole expense.

         12. INDEMNIFICATION; EXCULPATION AND INSURANCE.

             12.1 LESSEE'S INDEMNIFICATION. During the Term, Lessee shall
indemnify, defend (with counsel reasonably acceptable to Lessor), and save
Lessor and its Representatives, harmless against all loss, liability, penalties,
claims or demands of whatsoever nature, including reasonable attorneys' fees and
costs, arising from any occurrence in the Premises (including construction of
Lessee's tenant improvements or Alterations), except to the extent resulting, in
whole or in part, directly or indirectly from the default or negligence of
Lessor and its Representative. Lessee will carry liability insurance with a
deductible amount and company reasonably satisfactory to the Lessor in the sum
of $2,000,000.00 in favor of Lessee and Lessor agrees to deliver a duplicate
policy to the Lessor naming Lessor as an additional insured. Lessee shall also
carry such worker's compensation insurance as is required by law.

             12.2 LESSOR'S INDEMNIFICATION. During the Term, Lessor shall
indemnify, defend (with counsel reasonably acceptable to Lessee), and save
Lessee, its Representatives and

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sublessees, harmless against all loss, liability, penalties, claims or demands
of whatsoever nature, including reasonable attorneys' fees and costs, arising
from any occurrence in any area of the Property other than the Premises, except
those which shall result, in whole or in part, directly or indirectly from the
default or negligence of Lessee, its Representatives, assignees or sublessees.
Lessor will carry liability insurance with a deductible amount and company
reasonably satisfactory to the Lessee in the sum of $2,000,000.00 and Lessor
agrees to deliver a duplicate policy to the Lessee naming Lessee as an
additional insured.

             12.3 EXCULPATION. Lessor shall not be liable for injury or damage
to the person or goods, wares, merchandise or other property of Lessee, Lessee's
employees, contractors, invitees, customers, or any other person in or about the
Premises, whether such damage or injury is caused by or results from fire,
steam, electricity, gas, water or rain, or from the breakage, leakage,
obstruction or other defects of pipes, fire sprinklers, wires, appliances,
plumbing, air conditioning or lighting fixtures, or from any other cause,
whether the such injury or damage results from conditions arising upon the
Premises, or from other sources or places, and regardless of whether the cause
of such damage or injury or the means of repairing the same is accessible or
not, except that Lessor shall remain liable for any damages arising from any act
or neglect of Lessor, or its Representatives or Lessor's breach of this Lease.

             12.4 GENERAL. All insurance policies required under this Lease
shall:

                  (a) be issued by insurance companies authorized to do business
in the State of California, with a financial rating of at least an A VII as
rated in the most recent edition of Best's Key Rating Guide;

                  (b) be issued as a primary policy;

                  (c) contain an endorsement requiring thirty (30) days' written
notice from the insurance company to both parties before cancellation or change
in the coverage, scope, or amount of any policy; and

                  (d) The parties shall increase the amount of liability
insurance carried pursuant to Subsections 12.1 and 12.2 from time to time to the
extent necessary to maintain commercially reasonable amounts of insurance and in
any event no less than that carried by similar first-class properties.

             12.5 FIRE AND CASUALTY INSURANCE. Lessor shall maintain in effect
during the Term a policy or policies of insurance on the Building with
responsible insurers, on an "all risk" or "special form" basis, insuring the
Building, but not the Alterations or tenant improvements, in an amount equal to
100% of the replacement cost thereof, excluding land, foundations, footings and
underground installations. Lessee shall pay fifty percent (50%) of such
insurance. Lessor may carry such insurance under a blanket policy, provided that
such policy provides coverage equivalent to a separate policy. Lessor may, but
shall not be obligated to, carry insurance against additional perils and/or in
greater amounts (for example, earthquake or flood insurance), but Lessee shall
not be required to pay its 50% share thereof unless it has consented to such
additional insurance. If

                                       9
<PAGE>

Lessee refuses to consent to such additional insurance, it shall not be entitled
to the incremental benefit of such additional insurance.

         Lessee shall at all times maintain in effect with respect to its Trade
Fixtures, Alterations, tenant improvements and personal property, commercial
property insurance providing coverage, on an "all risk" or "special form" basis,
in an amount equal to the full replacement cost of the covered property. Lessee
may carry such insurance under a blanket policy, provided that such policy
provides coverage equivalent to a separate policy.

             12.6 INSURABLE INTEREST IN TRADE FIXTURES AND IMPROVEMENTS. Lessor
hereby expressly acknowledges that Lessee shall have the sole insurable interest
in the Trade Fixtures, leasehold improvements and Alterations installed in the
Premises by Lessee, or at Lessee's direction, or at Lessee's expense, and that,
in the event of any damage to or destruction of the Premises, Lessee shall be
entitled to retain all insurance proceeds collected by Lessee with respect to
such Trade Fixtures, leasehold improvements and Alterations.

             12.7 WAIVER OF SUBROGATION RIGHTS. The parties release each other
and their respective authorized representatives, from any claims for damage to
any person or to the Premises and the Building and other improvements in which
the Premises are located and to the fixtures, personal property, Lessee's
improvements and alterations of either Lessor or Lessee in or on the Premises
and the Building and other improvements in which the Premises are located that
are caused by or result from any risk insured against under any insurance
policies required under this Lease or actually carried by the parties and in
force at the time of any such damage; provided, however, this waiver shall only
extend to the limits of the insurance actually carried by the parties.

             Each party shall cause each insurance policy contained by it to
provide that the insurance company waives all right of recovery by way of
subrogation against either party in connection with any damage covered by any
policy. Neither party shall be liable to the other for any damage caused by fire
or any of the risks insured against under any insurance policy required by this
Lease. If any insurance policy cannot be obtained which contains a waiver of
subrogation or is obtainable only by the payment of an additional premium charge
above that charge by insurance companies issuing policies without waiver of
subrogation, the party undertaking to obtain the insurance shall notify the
other party of this fact. The other party shall have a period of ten (10) days
after receiving notice either to place the insurance with a company that is
reasonably satisfactory to the other party and that will carry the insurance
with a waiver of subrogation, or to agree to pay the additional premium of such
if such a policy is obtainable at additional cost. If the party in whose favor a
waiver of subrogation is desired refuses to pay the additional premium charge,
the other party is relieved of the obligation to obtain a waiver of subrogation
rights with respect to the particular insurance involved.

             12.8 SURVIVAL. The indemnifications set forth in this Section shall
survive the expiration, cancellation or termination of this Lease.

                                       10

<PAGE>

         13. ADVERTISEMENTS AND SIGNS. Lessee shall have the right, at Lessee's
expense, to install, mount, and erect, and repair and replace, its name sign in
Lessee's standard lettering and such other signage as it may desire on the
external facades of the Premises (including without limitation any projecting
sign, marquee or awning on the Building), to the maximum extent permitted by
applicable codes. Lessee shall also have the right, at Lessee's expense, to
install, mount, and erect, and repair and replace such other signage in the
Common Area in front of the Premises (from the dripline of the Building to the
highway right of way) as Lessee in its reasonable business judgment determines
is necessary or desirable in the operation of its business, provided that Lessee
complies with all Applicable Laws and Lessee obtains Lessor's consent thereto,
which shall not be unreasonably withheld. Lessor shall cooperate with Lessee in
attempting to obtain maximum building signage rights. Subject to existing
signage, Lessor shall not permit any other signs, billboards or posters to be
displayed on any portion of the Property, nor shall Lessor erect, or allow any
other tenant of the Property to erect, a pylon, monument or directional sign
(collectively, "Freestanding Sign") without the consent of Lessee, which consent
shall not be unreasonably withheld. Lessee shall have the right to first (1st)
position on any Freestanding Sign erected on any portion of the Property after
the Commencement Date, including without limitation the Freestanding Sign or
signs identified on EXHIBIT B, if any. If Lessee elects to participate in a
Freestanding Sign for the Property, then such Freestanding Sign shall be placed
at a location mutually acceptable to Lessor and Lessee. Lessee will pay its
share of the sign structure costs based upon the square footage of Lessee's sign
as a percentage of total square footage of signage on the Freestanding Sign.
Each user will bear the entire expense of the cost and installation of its
individual sign panel on any pylon sign. Lessee's sign panel shall be wired
directly to the Premises, if practicable. Subject to the approval of the
appropriate governmental agencies, Lessee shall be permitted to illuminate its
signs (and its panels on any pylon signs), from dusk to dawn on a daily basis.

         14. UTILITIES. Lessor covenants and agrees that, as of the Commencement
Date, the Premises shall be serviced with gas, electric, telephone, water,
septic and other utilities. Lessor agrees, at its sole cost and expense, to
cause the necessary mains, conduits and other facilities to be provided to make
water, sewer, gas, telephone and electricity available to the Premises from and
after the Commencement Date, including the payment of impact or tap fees and
meter installation charges. Lessor shall also allow Lessee to connect its
wastewater system to the additional leach field. Lessor further agrees, at its
sole cost and expense, to expand the septic field to accommodate the current
permitted flows from the bakery of two hundred (200) gallons per day. After
installation, Lessee shall pay all charges for consumption of utility services
furnished to the Premises during the Term. Lessor agrees to use reasonable
efforts to maintain, and if possible, increase, the amount of water provided to
the Premises.

         In the event of an interruption in or failure or inability to provide
any services or utilities to the Premises or Building for any reason (a "Service
Failure"), such Service Failure shall not, regardless of its duration, impose
upon Lessor any liability whatsoever, constitute an eviction of Lessee,
constructive or otherwise, entitle Lessee to an abatement of Rent or to
terminate this Lease or otherwise release Lessee from any of Lessee's
obligations under this Lease. Lessee hereby waives any benefits of any
applicable existing or future Law, including the

                                       11

<PAGE>

provisions of California Civil Code Section 1932(1), permitting the termination
of this Lease due to such interruption, failure or inability.

         15. ENTRY BY LESSOR. Lessee shall permit Lessor and its Representatives
to enter into and upon the Premises at all reasonable times upon reasonable
notice (except in the case of an emergency) for the purpose of inspecting the
Premises to determine if the Premises are in good condition and whether Lessee
is complying with its obligations under the Lease, or for the purposes of
maintaining the Building, including the erection and maintenance of such
scaffolding, canopies, fences and props as may be required, for the purpose of
showing the Premises for sale or in connection with any financing, or for the
purpose of posting notices of non-responsibility for alterations, additions, or
repairs, without any rebate of rent and without any liability to Lessee for any
loss of occupation or quiet enjoyment of the Premises thereby occasioned; and
shall permit Lessor, at any time within six (6) months prior to the expiration
of this Lease, to place upon the Premises any usual or ordinary "to let" or "to
lease" signs, provided that such signs are tasteful and in keeping with the
first-class nature of Lessee's business. Lessor shall use reasonable efforts to
conduct its activities under this Section in a manner that will minimize
inconvenience to Lessee.

         16. DESTRUCTION OF PREMISES.

             16.1 LESSOR'S DUTY TO REPAIR. If all or a substantial portion of
the Premises are rendered untenantable or inaccessible by damage to all or any
part of the Premises or Common Area from fire or other casualty then, unless
either party is entitled to and elects to terminate this Lease pursuant to
Sections 16.2 or 16.3, Lessor shall, at its expense, use reasonable efforts to
repair and restore the Premises to substantially its former condition as
permitted by then applicable Laws; provided, however, that in no event shall
Lessor have any obligation for repair or restoration beyond the extent of
insurance proceeds received by Lessor for such repair or restoration and not
required to be paid to any mortgagee. Lessor shall have no obligation to repair
or replace any of Lessee's personal property, Trade Fixtures or Alterations.

             If Lessor is required or elects to repair damage to the Premises,
this Lease shall continue in effect but the Rent and Additional Rent from the
date of the casualty through the date of substantial completion of the repair
shall be abated with regard to any portion of the Premises that Lessee is
prevented from using by reason of such damage or its repair. The amount and
period of rental abatement shall be mutually determined by the parties in the
exercise of their good faith reasonable judgment. In no event shall Lessor be
liable to Lessee by reason of any injury to or interference with Lessee's
business or property arising from fire or other casualty or by reason of any
repairs to any part of the Property necessitated by such casualty.

             16.2 LESSOR'S RIGHT TO TERMINATE. Lessor may elect to terminate
this Lease, effective as of the date of the casualty, under the following
circumstances:

                  (a) Where, in the reasonable judgment of Lessor, the damage
cannot be substantially repaired and restored under Applicable Law within one
(1) year from the date of the casualty;
                                       12

<PAGE>

                  (b) Where the Premises are damaged or destroyed to the extent
that the cost to repair and restore the Premises exceeds the amount of available
insurance proceeds (or that would have been available if Lessor had carried the
insurance required under the Lease);

                  (c) Where the Premises are damaged or destroyed to the extent
that, in the reasonable judgment of the Lessor, the cost to repair and restore
the Premises would exceed twenty-five percent (25%) of the full replacement cost
of the Building, whether or not the Premises are at all damaged or destroyed; or

                  (d) If the fire or casualty occurs in the last year of the
Term, unless Lessee has extended, or agrees in advance to extend, the Term
pursuant to its Extension Options.

                  If any of the circumstances described in subparagraphs (a),
(b), (c) or (d) of this subsection occur or arise, Lessor must notify Lessee in
writing of that fact within one hundred and twenty (120) days after the date of
the casualty and in such notice Lessor must also advise Lessee whether Lessor
has elected to terminate this Lease as of the date of the casualty.

             16.3 LESSEE'S RIGHT TO TERMINATE. If all or a substantial part of
the Premises are rendered untenantable or inaccessible by damage to all or any
part of the Premises from fire or other casualty, and Lessor does not elect to
terminate as provided above, then Lessee may elect to terminate this Lease if
Lessor's estimate of the time required to complete Lessor's repair obligations
under this Lease is greater than one (1) year, in which event Lessee may elect
to terminate this Lease by giving Lessor notice of such election to terminate
within thirty (30) days after Lessor's notice to Lessee pursuant to Section 16.2
(Lessor's Right to Terminate).

             16.4 WAIVER OF STATUTORY PROVISIONS. Lessor and Lessee each hereby
waive the provisions of California Civil Code Sections 1932(2), 1933(4) and any
other applicable existing or future law, ordinance or regulation with respect to
damage or destruction of leased premises or with respect to the termination of a
lease agreement in the event of such damage or destruction under any
circumstances other than as provided in Sections 16.2 and 16.3 above.

         17. CONDEMNATION.

             17.1 EFFECT ON THE LEASE. Condemnation shall mean (i) a permanent
taking (or a temporary taking extending beyond the end of the Term) pursuant to
the exercise of power of condemnation or eminent domain by any public or quasi
public authority, private corporation or individual having such power
("Condemnor"), whether by legal proceedings or otherwise, or (ii) a voluntary
sale or transfer by Lessor to any such authority, whether under threat of
condemnation or while legal proceedings for condemnation are pending.

             If the Premises are totally taken by Condemnation, this Lease shall
terminate as of the date of that Condemnation. If a portion but not all of the
Premises is taken by Condemnation, this Lease shall remain in effect; provided,
however, that if the portion of the Premises remaining after the Condemnation is
not reasonably suitable for Lessee's continued use, then upon notice to Lessor
within thirty (30) days after Lessor notifies Lessee of the Condemnation, Lessee
may terminate this Lease effective as of the date of the Condemnation. If

                                       13

<PAGE>

twenty-five percent (25%) of the Property or of the land on which the Building
is situated or of the designated parking areas or of the floor area in the
Building is taken by Condemnation, or if as a result of condemnation the
Building is no longer reasonably suited for use as a retail building, whether or
not any portion of the Premises is taken, Lessor may elect to terminate this
Lease, effective as of the date of Condemnation, by notice to Lessee within
thirty (30) days after the date of Condemnation. If all or a portion of the
Premises is temporarily taken by a Condemnor for a period not extending beyond
the Term, this Lease shall remain in full force and effect.

             17.2 RESTORATION OF PREMISES. If this Lease is not terminated as
provided in Section 17.1, Lessor shall, at it expense, diligently proceed to
repair and restore the Premises to substantially its former condition (to the
extent permitted by then applicable Laws) and/or repair and restore the Building
to an architecturally complete retail building; provided, however, that Lessor's
obligations to so repair and restore shall be limited to the amount of any award
received by Lessor for the Condemnation and not required to be paid to any
mortgagee. In no event shall Lessor have any obligation to repair or replace any
improvements in the Premises beyond the amount of any reward received by Lessor
for such repair or to repair or replace any of Lessee's personal property, Trade
Fixtures or Alterations. If any portion of the Premises is taken in a
Condemnation or is rendered untenantable by repairs necessitated by the
Condemnation, and this Lease is not terminated, the Rent and Additional Rent
shall be proportionately reduced as of the date of the Condemnation based upon
the percentage of rentable square feet in the Premises so taken or rendered
permanently untenantable. In addition, if this Lease remains in full force and
effect following a Condemnation and Lessor proceeds to repair and restore the
Premises, the Rent and Additional Rent payable under the Lease shall be abated
during the period of such repair or restoration to the extent such repairs
prevent Lessee's use of the Premises.

                  Lessor and Lessee each hereby waive the provisions of
California Code of Civil Procedure Section 1265.130 and any other applicable
existing or future Law allowing either party to petition for a termination of
this Lease upon a partial taking of the Premises and/or the Property.

             18. ASSIGNMENT AND SUBLETTING. Lessee shall not assign this Lease,
or any interest therein, and shall not sublet the Premises or any part thereof,
or any right or privilege appurtenant thereto, or suffer any other person (the
Representatives of Lessee excepted), including any corporation or other person
or entity resulting from a merger or consolidation with Lessee, or to any person
or entity which acquires substantially all the assets of Lessee as a going
concern to occupy or use the Premises, or any portion thereof, without the prior
written consent of Lessor, which shall not be unreasonably withheld; provided,
however, Lessor's consent shall not be required with respect an assignment or
sublet to any corporation or other person or entity which controls, is
controlled by, or is under common control with Lessee (collectively, an
"Affiliate"). A consent to one assignment, subletting, occupation or use by any
other person, shall not be deemed to be a consent to any subsequent assignment,
subletting, occupation or use by another persons. Any such assignment or
subletting without such consent shall be void. This lease shall not, nor shall
any interest therein, be assignable, as to the interest of Lessee, by operation
of law, without the written consent of Lessor.

                                       14

<PAGE>

             19. INSOLVENCY OR BANKRUPTCY. Lessee shall be in default under this
Lease if (a) a petition of bankruptcy or reorganization is filed by Lessee or
against Lessee and is not dismissed within ninety (90) days after such filing
and Lessee becomes bankrupt, (b) Lessee makes a general assignment for the
benefit of creditors, (c) in any proceeding based upon the insolvency of Lessee,
a receiver or trustee of all of the property of Lessee is appointed and is not
discharged within ninety (90) days after such appointment, or (d) a writ of
attachment or execution is levied against all or substantially all of Lessee's
assets and is not discharged within thirty (30) days after Lessee receives
notice thereof; provided, however, neither bankruptcy, insolvency,
reorganization, an assignment for the benefit of creditors nor the appointment
of a receiver or trustee shall affect this Lease or permit its termination so
long as the covenants on the part of Lessee to be performed shall be performed
by Lessee, or someone claiming under it.

             20. DEFAULTS AND REMEDIES.

                 20.1 Events of Default. The occurrence of any of the following
shall constitute an "Event of Default" by Lessee:

                 (a) Lessee fails to make any payment of rent when due, or any
amount required to replenish the security deposit as provided in Section 3
above, if payment in full is not received by Lessee within three (3) days after
written notice that it is due.

                 (b) Lessee abandons the Premises.

                 (c) Lessee fails timely to deliver any subordination document,
estoppel certificate or financial statement requested by Lessee within the
applicable time period specified in Section 41 below.

                 (d) Lessee violates the restrictions on Transfer set forth in
Section 18 - ASSIGNMENT AND SUBLETTING.

                 (e) Lessee ceases doing business as a going concern; makes an
assignment for the benefit of creditors; is adjudicated an insolvent, files a
petition (or files an answer admitting the material allegations of a petition)
seeking relief under any state or federal bankruptcy or other statute, law or
regulation affecting creditors' rights; all or substantially all of Lessee's
assets are subject to judicial seizure or attachment and are not released within
30 days, or Lessee consents to or acquiesces in the appointment of a trustee,
receiver or liquidator for Lessee or for all or any substantial part of Lessee's
assets.

                 (f) Lessee fails, within ninety (90) days after the
commencement of any proceedings against Lessee seeking relief under any state or
federal bankruptcy or other statute, law or regulation affecting creditors'
rights, to have such proceedings dismissed, or Lessee fails, within ninety (90)
days after an appointment, without Lessee's consent or acquiescence, of any
trustee, receiver or liquidator for Lessee or for all or any substantial part of
Lessee's assets, to have such appointment vacated.

                                       15
<PAGE>

                 (g) Lessee fails to perform or comply with any provision of
this Lease other than those described in (a) through (f) above, and does not
fully cure such failure within fifteen (15) days after notice to Lessee or, if
such failure cannot be cured within such fifteen (15)-day period, Lessee fails
within such fifteen (15)-day period to commence, and thereafter diligently
proceed with, all actions necessary to cure such failure as soon as reasonably
possible but in all events within ninety (90) days of such notice; provided,
however, that if Lessee in Lessee's reasonable judgment determines that such
failure cannot or will not be cured by Lessee within such ninety (90) days, then
such failure shall constitute an Event of Default immediately upon such notice
to Lessee.

                 20.2 Remedies If Lessee is in default under any provision of
this Lease, Lessor shall have the following remedies, which shall not be
exclusive but shall be cumulative and shall be in addition to any other remedies
now or hereafter allowed by law:

                      (a) Lessor may terminate Lessee's right to possession of
the Premises at any time by written notice to Lessee. Lessee expressly
acknowledges that in the absence of such written notice from Lessor, no other
act of Lessor, including re-entry into the Premises, efforts to relet the
Premises, reletting the Premises for Lessee's account, storage of Lessee's
personal property and Trade Fixtures, acceptance of keys to the Premises from
Lessee or exercise of any other rights and remedies under this Section, shall
constitute an acceptance of Lessee's surrender of the premises or constitute a
termination of this Lease or of Lessee's right to possession of the Premises.
Upon such termination in writing of Lessee's right to possession of the
Premises, as herein provided, this Lease shall terminate and Lessor shall be
entitled to recover damages from Lessee as provided in California Civil Code
Section 1951.2 and any other applicable existing or future Law providing for
recovery of damages for such breach, including the worth at the time of award of
the amount by which rent which would be payable by Lessee hereunder for the
remainder of the Term after the date of the award of damages, including
Additional Rent as reasonably estimated by Lessor, exceeds the amount of such
rental loss as Lessee proves could have been reasonably avoided, discounted at
the discount rate published by the Federal reserve Bank of San Francisco for
member banks at the time of the award plus one percent (1%).

                      (b) Lessor shall have the remedy described in California
Civil Code Section 1951.4 (Lessor may continue this Lease in effect after
Lessee's breach and abandonment and recover rent as it becomes due, if Lessee
has the right to sublet or assign, subject only to reasonable limitations).

                      (c) Lessor may cure the default at Lessee's expense. If
Lessor pays any sum or incurs any expense in curing the default, Lessee shall
reimburse Lessor upon demand for the amount of such payment or expense with
interest at the rate of fifteen percent (15%) per annum from the date the sum is
paid or the expense is incurred until Lessor is reimbursed by Lessee.

                      (d) Lessor may remove all Lessee's property from the
Premises, and such property may be stored by Lessor in a public warehouse or
elsewhere at the sole cost and for the account of Lessee. If Lessor does not
elect to store any or all or Lessee's property left in the Premises, Lessee may
consider such property in any manner deemed appropriate by Lessor. Any proceeds
realized by Lessor on the disposal of any such property shall be applied first
to offset all

                                       16
<PAGE>

expenses of storage and sale, then credited against Lessee's outstanding
obligations to Lessor under this Lease, and any balance remaining after
satisfaction of all obligations of Lessee under this Lease shall be delivered to
Lessee.

         21. SURRENDER OF LEASE. The voluntary or other surrender of this Lease
by Lessee, or a mutual cancellation thereof, shall not work a merger, and shall,
at the option of Lessor, terminate all or any existing sublease or subtenancies,
or may, at the option of Lessor, operate as an assignment to him of any or all
such subleases or subtenancies.

         22. ATTORNEY'S FEES. In the event of any litigation or arbitration
regarding any rights and obligations under this Lease, the prevailing party
shall be entitled to recover reasonable attorneys' fees and court costs in
addition to any other relief which may be granted. The "prevailing party" shall
be determined by the court or arbitrator before whom the action was brought
based upon an assessment of which party's major arguments or positions taken in
the suit or proceeding could fairly be said to have prevailed over the other
party's major arguments or positions on major disputed issues in the court's or
arbitrator's opinion.

         23. NOTICE. Any notice, demand, request, consent or approval that
either party desires or is required to give to the other party under this Lease
shall be in writing and shall be served personally, delivered by messenger or
courier service, or sent by U.S. certified mail, return receipt requested,
postage prepaid, addressed to the other party at the party's address for notices
provided in writing to the other party from time to time. The initial address
for notices shall be the addresses set forth in the signature block to this
Lease. Notices will be effective upon receipt (or refusal of delivery or
receipt). Either party may change its address for notices hereunder by a notice
to the other party complying with this Section. If Lessee sublets the Premises,
notices from Lessor shall be effective on the subtenant when given to Lessee
pursuant to this Section

         24. WAIVER. No provisions of this Lease shall be deemed waived by
either party unless such waiver is in a writing signed by the waiving party. The
waiver of any breach of any provision of this Lease shall not be deemed a waiver
of such provision or of any subsequent breach of the same or any other provision
of this Lease. No delay or omission in the exercise of any right or remedy upon
any default shall impair such right or remedy or be construed as a waiver.
Either party's consent to or approval of any act requiring consent or approval
shall not be deemed to waive or render unnecessary such consent to or approval
of any subsequent act.

         25. HOLDING OVER. Any holding over after the expiration of the said
term, with the consent of Lessor, shall be construed to be a tenancy from month
to month, at 125% of the current rent and on the terms and conditions herein
specified, so far as applicable.

         26. SUCCESSORS AND ASSIGNS. The covenants and conditions herein
contained shall, subject to the provisions as to assignment, apply to and bind
the heirs, successors, executors, administrators and assigns of all of the
parties hereto; and all of the parties hereto shall be jointly and severally
liable hereunder.

         27. TIME. Time is of the essence of this Lease.

                                       17

<PAGE>

         28. LATE CHARGE. If any payment of Rent is not received by Lessor
within five (5) days after it is due, Lessee shall pay to Lessor on demand as a
late charge an additional amount equal to five percent (5%) of the overdue
payment. Lessee acknowledges that late payment of Rent will cause Lessor to
incur costs which are difficult to ascertain, and the parties agree that the
foregoing amount is a reasonable estimate of Lessor's expenses resulting from
late payments and are not intended as a penalty. A late charge shall not be
imposed more than once on any particular installment not paid when due, but
imposition of a late charge on any payment not made when due does not eliminate
or supersede late charges imposed on other payments not made when due or
preclude imposition of a late charge on other installments or payments not made
when due or waive any other default by Lessee.

         29. LESSOR'S RIGHT OF FIRST REFUSAL TO PURCHASE. Lessee hereby grants
to Lessor a continuing Right of First Refusal to purchase Lessee's leasehold
interest in this Lease ("Leasehold Interest"), which shall continue during the
Initial Term or Extension Period, as the case may be. Lessee shall not, at any
time prior to the expiration of the Term of this Lease, or any extension
thereof, sell the Leasehold Interest, except to an Affiliate of Lessee, without
first giving written notice thereof to Lessor, which notice shall clearly state
that Lessor has five (5) business days to respond and which notice is
hereinafter referred to as "Notice of Sale." Provided that Lessor is not in
default under this Lease which remains uncured after the expiration of the
applicable cure period at the time it receives the Notice of Sale, for a period
of five (5) business days after receipt by Lessor of the Notice of Sale, Lessor
shall have the right to give written notice to Lessee of Lessor's exercise of
Lessor's right to purchase the Leasehold Interest, on the same terms, price and
conditions as set forth in the Notice of Sale. In the event that Lessor does not
exercise the purchase right herein granted within such five (5) day period,
there shall be a conclusive presumption that Lessor has elected not to exercise
Lessor's right hereunder, and Lessee may sell the Leasehold Interest, on the
same terms set forth in the Notice of Sale; provided, however, that if (a)
Lessee proposes to sell the Leasehold Interest, at a purchase price that is less
than ninety-five percent (95%) of the purchase price proposed to Lessor, or upon
other terms which are substantially more favorable to the prospective purchaser,
Lessee shall first re-offer such space to Lessor at such lower purchase price
and/or more favorable terms or (b) Lessee proposes to sell the Leasehold
Interest, more than six (6) months after Lessor's receipt of the Notice of Sale,
Lessee shall first re-offer such space to Lessor, all in accordance with the
provisions of this Section. The right under this Section is a continuing right
and must be reoffered to Lessor each time this provision is triggered, whether
or not Lessor has exercised its rights hereunder with respect to previous
offers.

         30. QUIET ENJOYMENT. Lessor covenants, represents and warrants that it
has full right and power to execute and perform this Lease and to grant the
estate demised herein and that Lessee, on payment of the rent and performance of
the covenants and agreements hereof, shall peaceably and quietly have, hold and
enjoy the Premises and all rights, easements, appurtenances and privileges
belonging or in any way pertaining thereto during the Lease Term without
molestation or hindrance of any person whomsoever.

         31. COVENANT OF TITLE. Lessor further covenants, represents and
warrants that it is seized of an indefeasible estate in fee simple and has good
and marketable title to the Land

                                       18

<PAGE>

described in EXHIBIT A, free and clear of any liens, encumbrances, restrictions
and violations (or claims or notices hereof), except the lien of the mortgage or
mortgages specifically identified on the attached EXHIBIT C and public utility
easements and covenants and restrictions of record not impairing Lessee's
Intended Use of the Premises, and taxes not yet due and payable.

         32. HAZARDOUS MATERIAL.

             32.1 LESSOR'S REPRESENTATIONS, WARRANTIES AND COVENANT. Lessor
represents that to the best of its knowledge, except as set forth in either of
the ________________________________ and __________________________________
Environmental Reports for the Property, or as previously disclosed to Lessee,
there are no "Hazardous Materials" (as defined below) existing on the Property
as of the Commencement Date. Lessor's representations to Lessee under this
Section shall survive the cancellation or termination of this Lease.

             32.2 LESSOR'S INDEMNIFICATION OBLIGATION. Lessor hereby agrees to
indemnify, defend, and hold harmless Lessee, its Representatives, assignees and
Sublessees, and Lessee's guarantor, if any, from and against any penalty, loss,
liability, claim or expenses including, without limitation, engineering and
attorneys fees, arising out of a breach of the representations and warranties in
Section 32.1 above, except to the extent such condition was caused by the breach
of Lessee's covenant below. Lessor's representations and indemnity to Lessee
under this Section shall survive the cancellation or termination of this Lease.

             32.3 LESSEE'S COVENANT AND INDEMNIFICATION OBLIGATION.

                  (a) LESSEE'S COVENANTS. No Hazardous Materials shall be
Handled by Lessee at or about the Premises or Property without Lessor's prior
written consent, which consent may be granted, denied, or conditioned upon
compliance with Lessor's requirements, all in Lessor's absolute discretion.
Notwithstanding the foregoing, normal quantities and use of those Hazardous
Materials customarily used in the conduct of retail and general office
activities, such as copier fluids and cleaning supplies ("Permitted Hazardous
Materials"), may be used and stored at the Premises without Lessor's prior
written consent, provided that Lessee's activities at or about the Premises and
Property and the Handling by Lessee of all Hazardous Materials shall comply at
all times with all Environmental Requirements. At the expiration or termination
of the Lease, Lessee shall promptly remove from the Premises and Property all
Hazardous Materials Handled by Lessee at the Premises or the Property. Lessee
shall keep Lessor fully and promptly informed of all Handling by Lessee of
Hazardous Materials other than Permitted Hazardous Materials. Lessee shall be
responsible and liable for the compliance with all of the provisions of this
Section by all of Lessee's Representatives and Visitors, and all of Lessee's
obligations under this Section (including its indemnification obligations under
paragraph (e) below) shall survive the expiration or termination of this Lease.

                  (b) COMPLIANCE. Lessee shall at Lessee's expense promptly take
all actions required by any governmental agency or entity in connection with or
as a result of the Handling by Lessee of Hazardous Materials at or about the
Premises or Property, including

                                       19

<PAGE>

inspection and testing, performing all cleanup, removal and remediation work
required with respect to those Hazardous Materials, complying with all closure
requirements and post-closure monitoring, and filing all required reports or
plans. All of the foregoing work and all Handling by Lessee of all Hazardous
Materials shall be performed in a good, safe and workmanlike manner by
consultants qualified and licensed to undertake such work and in a manner that
will not interfere with any other tenant's quiet enjoyment of the Property or
Lessor's use, operation, leasing and sale of the Property. Lessee shall deliver
to Lessor prior to delivery to any governmental agency, or promptly after
receipt from any such agency, copies of all permits, manifests, closure or
remedial action plans, notices, and all other documents relating to the Handling
by Lessee of Hazardous Materials at or about the Premises or Property. If any
lien attaches to the Premises or the Property in connection with or as a result
of the Handling by Lessee of Hazardous Materials, and Lessee does not cause the
same to be released, by payment, bonding or otherwise, within ten (10) days
after the attachment thereof, Lessor shall have the right but not the obligation
to cause the same to be released and any sums expended by Lessor (plus Lessor's
administrative costs) in connection therewith shall be payable by Lessee on
demand.

                  (c) LESSOR'S RIGHTS. Lessor shall have the right, but not the
obligation, to enter the Premises at any reasonable time (i) to confirm Lessee's
compliance with the provisions of this Section, and (ii) to perform Lessee's
obligations under this Section if Lessee has failed to do so after reasonable
notice to Lessee. Lessor shall also have the right to engage qualified Hazardous
Materials consultants to inspect the Premises and review the Handling by Lessee
of Hazardous Materials, including review of all permits, reports, plans, and
other documents regarding same. Lessee shall pay to Lessor on demand the costs
of Lessor's consultants' fees and all costs incurred by Lessor in performing
Lessee's obligations under this Section. Lessor shall use reasonable efforts to
minimize any interference with Lessee's business caused by Lessor's entry into
the Premises, but Lessor shall not be responsible for any interference caused
thereby.

             32.4 DEFINITION.

                  (a) "Hazardous Materials" shall mean any substance: (A) that
now or in the future is regulated or governed by, requires investigation or
remediation under, or is defined as a hazardous waste, hazardous substance,
pollutant or contaminant under any governmental statute, code, ordinance,
regulation, rule or order, and any amendment thereto, including the
Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C.
ss.9601 eT Seq., and the Resource Conservation and Recovery Act, 42 U.S.C.
ss.6901 ET seq., or (B) that is toxic, explosive, corrosive, flammable,
radioactive, carcinogenic, dangerous or otherwise hazardous, including gasoline,
diesel fuel, petroleum hydrocarbons, polychlorinated biphenyls (PCBs), asbestos,
radon and urea formaldehyde foam insulation.

                  (b) "Environmental Requirements" shall mean all present and
future Laws, orders, permits, licenses, approvals, authorizations and other
requirements of any kind applicable to Hazardous Materials.

                  (c) "Handled by Lessee" and "Handling by Lessee" shall mean
and refer to any installation, handling, generation, storage, use, disposal,
discharge, release, abatement,

                                       20

<PAGE>

removal, transportation, or any other activity of any type by Lessee or its
agents, employees, contractors, licensees, assignees, sublessees, transferees or
representatives (collectively, "Representatives") or its guests, customers,
invitees, or visitors (collectively, "Visitors"), at or about the Premises in
connection with or involving Hazardous Materials.

                  (d) "Environmental Losses" shall mean all costs and expenses
of any kind, damages, including foreseeable and unforeseeable consequential
damages, fines and penalties incurred in connection with any violation of and
compliance with Environmental Requirements and all losses of any kind
attributable to the diminution of value, loss of use or adverse effects on
marketability or use of any portion of the Premises or Property.

        33. MEMORANDUM OF LEASE.

        The parties hereto have simultaneously with the execution and delivery
of this Lease, executed and delivered a Memorandum of Lease substantially in the
form attached as EXHIBIT D to this Lease, which Lessor shall, at its sole
expense, cause to be recorded within five (5) days following delivery of this
Lease and returned to Lessee by Lessor within five (5) days thereafter.

             34. BROKER'S REPRESENTATION. Each party represents that it dealt
with no broker or brokers in connection with the negotiation, execution and
delivery of this Lease. Lessor and Lessee shall, and do hereby, indemnify,
defend, and save the other harmless from and against any losses, damages,
penalties, claims or demands of whatsoever nature arising from a breach of its
foregoing representation including, without limitation, reasonable attorneys'
fees and expenses. The representations and indemnifications set forth in this
Section shall survive the cancellation or termination of this Lease.

             35. FORCE MAJEURE. Lessor and Lessee shall be excused for the
period of any delay in performance of any obligations hereunder (except payment
of Rent) by reason of the wrongful or negligent acts or omissions of the other
party, or their Representatives, or by reason of labor disputes, civil
disturbance, war, war-like operations, invasions, rebellion, hostilities,
military or usurped power, sabotage, governmental regulations or controls, fires
or other casualty, or acts of God (referred to collectively herein as "Force
Majeure).

             36. CONDITION OF PREMISES AT TERMINATION. At the expiration or
earlier termination of the Term, Lessee shall surrender the Premises, together
with all improvements installed by Lessee then a part thereof, in good order and
condition, except for the following: (a) ordinary wear and tear, (b) repairs
required to be made by Lessor, and (c) loss or damage by fire, the elements or
other casualty. All furniture and Trade Fixtures installed in the Premises at
the expense of Lessee, or other occupant, shall remain the property of Lessee,
or such other occupant; provided, however, Lessee shall have the option, during
the Term, to relinquish its property rights in such Trade Fixtures (including,
but not limited to, air conditioning machinery and lighting fixtures, if owned
by Lessee), which option shall be exercised by written notice of such
relinquishment to Lessor and, from and after the exercise of said option, the
property specified in said notice shall be the property of Lessor.

                                       21

<PAGE>

             37. CONSENTS AND APPROVALS. Unless another consent standard is
specifically provided under the terms of this Lease, whenever consent,
satisfaction or approval of either party is required under this Lease, such
consent, satisfaction or approval shall not be unreasonably withheld,
conditioned or delayed. If and to the extent that any written request for
consent, satisfaction or approval is not reasonably disapproved in writing
(including a statement of the reasons for disapproval with reasonable
particularity) within fifteen (15) days or such other time specifically set
forth in the particular provision of the Lease, the consent, satisfaction or
approval shall be deemed to have been given.

             38. AUTHORITY.

                 38.1 LESSOR'S REPRESENTATIONS. Each of the persons executing
this Lease on behalf of Lessor warrants and represents that Lessor is a duly
organized and validly existing limited liability company, that Lessor has full
right and authority to enter into this Lease and that the persons signing on
behalf of Lessor are authorized to do so and have the power to bind Lessor to
this Lease. Lessor shall provide Lessee upon request with evidence reasonably
satisfactory to Lessee confirming the foregoing representations.

                 38.2 LESSEE'S REPRESENTATIONS. Each of the persons executing
this Lease on behalf of Lessee warrants and represents that Lessee is a duly
organized and validly existing limited liability company, that Lessee has full
right and authority to enter into this Lease and that the persons signing on
behalf of Lessee are authorized to do so and have the power to bind Lessee to
this Lease. Lessee shall provide Lessor upon request with evidence reasonably
satisfactory to Lessor confirming the foregoing representations.

             39. ENTIRE AGREEMENT. This Lease, including the Exhibits and any
Addenda attached hereto, and the documents referred to herein, if any,
constitute the entire agreement between Lessor and Lessee with respect to the
leasing of space by Lessee at the Property, and supersede all prior or
contemporaneous agreements, understandings, proposals and other representations
by or between Lessor and Lessee, whether written or oral.

             40. LESSOR'S LIABILITY. The liability of Lessor for its obligations
under this Lease is limited solely to the assets of Lessor, including without
limitation Lessor's interest in the Property, and no personal liability shall at
any time be asserted or enforceable against Lessor's partners on account of any
of Lessor's obligations or actions under this Lease.

             41. ESTOPPEL CERTIFICATES. Either Lessor or Lessee may request that
the other party execute and deliver, within ten (10) days after written request
therefor, in a form provided by or satisfactory to the requesting party, a
certificate stating that this Lease is in full force and effect, describing any
amendments or modifications hereto, acknowledging that this Lease is subordinate
or prior, as the case may be, to any Encumbrance and stating any other
information that the requesting party may reasonably request, including the
Term, the monthly Rent, the date to which Rent has been paid, any claims or
offsets, the amount of any prepaid rent, and whether either party hereto is in
default under the terms of the Lease. Lessee irrevocably constitutes, appoints
and authorizes Lessor as Lessee's special attorney-in-fact for such purpose to
complete, execute and

                                       22

<PAGE>

deliver such certificate if Lessee fails timely to execute and deliver such
certificate as provided above. Lessor irrevocably constitutes, appoints and
authorizes Lessee as Lessor's special attorney-in-fact for such purpose to
complete, execute and deliver such certificate if Lessor fails timely to execute
and deliver such certificate as provided above. Any person or entity purchasing,
acquiring an interest in or extending financing with respect to the Property
shall be entitled to rely upon any such certificate.

             42. MISCELLANEOUS. This Lease may not be amended or modified except
by a writing signed by Lessor and Lessee. The determination that any provisions
hereof may be void, invalid, illegal or unenforceable shall not impair any other
provisions hereof and all such other provisions of this Lease shall remain in
full force and effect. The unenforceability, invalidity or illegality of any
provision of this Lease under particular circumstances shall not render
unenforceable, invalid or illegal other provisions of this Lease, or the same
provisions under other circumstances. This Lease shall be construed and
interpreted in accordance with the laws of the State of California. The
provisions of this Lease shall be construed in accordance with the fair meaning
of the language used and shall not be strictly construed against either party.
The captions contained in this Lease are for purposes of convenience only and
are not to be used to interpret or construe this Lease. When required by the
context of this Lease, the singular includes the plural. Wherever the term
"including" is used in this Lease, it shall be interpreted as meaning
"including, but not limited to" the matter or matters thereafter enumerated.

                            [Signature Page Follows]

                                       23

<PAGE>

         IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease the day
and year first above written.

                                         LESSOR:

                                         R & R LAND, LLC, a California limited
                                         liability company,

                                         By:
                                            ------------------------
                                            Pat Roney, Manager

                                         ADDRESS FOR NOTICES:

                                         999 Adams Street, Suite 302
                                         St. Helena, California  94574

                                         LESSEE:

                                         DEAN & DELUCA MARKETS, LLC, a
                                         California limited liability company

                                         By:
                                            -------------------------
                                            Pat Roney, Manager

                                         ADDRESS FOR NOTICES:

                                         607 St. Helena Highway South
                                         St. Helena, California  94574

                                       24

<PAGE>

                                    EXHIBIT A

                        ATTACHED TO AND FORMING A PART OF
                                  RETAIL LEASE
                           DATED AS OF MARCH 18, 1999
                                     BETWEEN
                           R & R LAND, LLC, AS LESSOR,
                                       AND
                 DEAN & DELUCA MARKETS, LLC, AS LESSEE ("LEASE")

                          LEGAL DESCRIPTION OF THE LAND

                                (TO BE ATTACHED)

                                       25

<PAGE>

                                    EXHIBIT B

                        ATTACHED TO AND FORMING A PART OF
                                  RETAIL LEASE
                           DATED AS OF MARCH 18, 1999
                                     BETWEEN
                           R & R LAND, LLC, AS LESSOR,
                                       AND
                 DEAN & DELUCA MARKETS, LLC, AS LESSEE ("LEASE")

                                    PLOT PLAN

                          (PARTIES TO DRAFT AND ATTACH)

Needs to show:

1. Land and layout of Structures, identifying the "Premises" and the "Adjacent
Building"

2. Parking

3. Driveways, entrances, sidewalks and exits

4. Existing signage

                                       26

<PAGE>

                                    EXHIBIT C

                        ATTACHED TO AND FORMING A PART OF
                                  RETAIL LEASE
                           DATED AS OF MARCH 18, 1999
                                     BETWEEN
                           R & R LAND, LLC, AS LESSOR,
                                       AND
                 DEAN & DELUCA MARKETS, LLC, AS LESSEE ("LEASE")

                               EXISTING MORTGAGES

                                      None.

                                       27

<PAGE>

                                    EXHIBIT D

                        ATTACHED TO AND FORMING A PART OF
                                  RETAIL LEASE
                           DATED AS OF MARCH 18, 1999
                                     BETWEEN
                           R & R LAND, LLC, AS LESSOR,
                                       AND
                 DEAN & DELUCA MARKETS, LLC, AS LESSEE ("LEASE")

                               MEMORANDUM OF LEASE

Recording Requested By

When Recorded Mail To
Michael P. Burns
Farella Braun & Martel LLP
235 Montgomery Street
San Francisco, CA  94104

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

                               MEMORANDUM OF LEASE

                  The Lease term is less than thirty-five (35) years and no
transfer tax is due.

         THIS MEMORANDUM OF LEASE is made and entered into as of this ________
day of _______, 1999, by and between R & R Land, LLC, a California limited
liability company ("Lessor"), and Dean & Deluca Markets, LLC, a California
limited liability company ("Lessee").

         In consideration of and upon all of the terms, conditions, and
covenants set forth in that certain unrecorded Retail Lease of even date
herewith between Lessor and Lessee (hereinafter, the "Lease"), Lessor hereby
leases to Lessee, and Lessee hereby leases from Lessor, the "Premises" (as
described in the Lease), which Premises are located on the real property
described in EXHIBIT A attached hereto and made a part hereof. The Lease and all
its terms and provisions, are by this reference incorporated herein and made a
part hereof.

         The Lease includes a right of first refusal to purchase the "Leasehold
Interest (as defined in Paragraph 29 of the Lease).

         This Memorandum of Lease is executed for the sole purpose of giving
notice of the existence and contents of the Lease to all interested parties, and
shall in no way modify or affect the terms of such Lease or the obligations of
the parties thereunder.

                                       28

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Memorandum of Lease
as of the date first above written.

LESSOR:                                        LESSEE:
<TABLE>
<S>                                            <C>

R & R LAND, LLC                                DEAN & DELUCA MARKETS, LLC
a California limited liability company         a California limited liability company

By: /s/ Leslie G. Rudd                         By:  /s/ Patrick Roney
  ----------------------------------                ----------------------------
Print Name:  Leslie G. Rudd                    Print Name:  Patrick Roney
           -------------------------                       ---------------------
Its:                                            Its:
    --------------------------------                ----------------------------

</TABLE>

                                       29

<PAGE>

                                    EXHIBIT A

                        Legal Description of the Premises

All that real property situated in the State of California, County of Napa, and
described as follows:<PAGE>

                                                                   Exhibit 10.20

                             OFFICE LEASE AGREEMENT

                                     between

                          R & R LAND, LLC a California
                            limited liability company
                                  as "LANDLORD"

                                       and

                           DEAN & DELUCA BRANDS, Inc.
                             a Delaware Corporation
                                   as "TENANT"

<PAGE>

                                                 TABLE OF CONTENTS

SECTION                                                                    PAGE

1. PREMISES...................................................................1
2. TERM; POSSESSION...........................................................1
3. RENT 1
4. SECURITY DEPOSIT...........................................................2
5. USE AND COMPLIANCE WITH LAWS...............................................2
6. TENANT IMPROVEMENTS & ALTERATIONS..........................................4
7. MAINTENANCE AND REPAIRS....................................................4
8. TENANT'S TAXES.............................................................5
9. UTILITIES AND SERVICES.....................................................6
10. EXCULPATION AND INDEMNIFICATION...........................................6
11. INSURANCE.................................................................7
12. DAMAGE OR DESTRUCTION.....................................................9
13. CONDEMNATION.............................................................10
14. ASSIGNMENT AND SUBLETTING................................................12
15. DEFAULT AND REMEDIES.....................................................14
16. LATE CHARGE AND INTEREST.................................................16
17. WAIVER...................................................................16
18. ENTRY, INSPECTION AND CLOSURE............................................16
19. SURRENDER AND HOLDING OVER...............................................17
20. ENCUMBRANCES.............................................................18
21. ESTOPPEL CERTIFICATES AND FINANCIAL STATEMENTS...........................18
22. NOTICES..................................................................19
23. ATTORNEYS'FEES...........................................................19
24. QUIET POSSESSION.........................................................20
25. SECURITY MEASURES........................................................20
26. FORCE MAJEURE............................................................20
27. RULES AND REGULATIONS....................................................20
28. LANDLORD'S LIABILITY.....................................................21
29. CONSENTS AND APPROVALS...................................................21
30. WAIVER OF RIGHT TO JURY TRIAL............................................21
31. BROKERS..................................................................21
32. RELOCATION OF PREMISES...................................................22
33. ENTIRE AGREEMENT.........................................................22
34. MISCELLANEOUS............................................................22
35. AUTHORITY................................................................23

<PAGE>

                             INDEX OF DEFINED TERMS

Additional Rent.....................................3
Award..............................................14
Base Operating Costs................................1
Base Taxes..........................................2
Broker.............................................25
Building............................................1
Building Rules.....................................24
Building Systems....................................5
Business Days.......................................9
Business Hours......................................9
Claims.............................................10
Commencement Date...................................1
Condemnation.......................................14
Condemnor..........................................14
Controls............................................8
Date of Condemnation...............................14
Encumbrance........................................21
Environmental Losses................................6
Environmental Requirements..........................5
Event of Default...................................17
Expiration Date.....................................1
Fees...............................................23
Handled by Tenant...................................6
Handling by Tenant..................................6
Hazardous Materials.................................5
HVAC................................................5
Interest Rate......................................20
Landlord............................................1
Laws................................................2
Mortgagee..........................................22
Operating Costs.....................................2
Parking Facility....................................1
Permitted Hazardous Materials.......................6
Premises............................................1
Project.............................................1
Property............................................1
Property Manager...................................11
Proposed Transferee................................16
Rent................................................4
Rental Tax..........................................8
Representatives.....................................6
Service Failure.....................................9
Taxes...............................................3
Tenant..............................................1
Tenant's Share......................................3
Tenant's Taxes......................................8
Term................................................1
Trade Fixtures......................................7
Transfer...........................................15
Transferee.........................................16
Visitors............................................6

                                       ii

<PAGE>

<TABLE>

<S>                                    <C>

                                       BASIC LEASE INFORMATION

LEASE DATE:                            For identification purposes only, the date of this Lease is
                                       July 1, 1999

LANDLORD:                              R & R LAND, LLC
                                       a California limited liability company

TENANT:                                DEAN & DELUCA BRANDS, Inc.
                                       a Delaware Corporation

BUILDING ADDRESS:                      607 St. Helena Highway South,
                                       Napa, California  94574

RENTABLE AREA OF BUILDING:
                                       2,500 square feet

PREMISES:                              Floor:                     First
                                       Suite Number:              517A
                                       Rentable Area:             2,500 square feet

TERM:                                  36 full calendar months (plus any partial month at the beginning of
                                       the Term)

COMMENCEMENT DATE:                     July 1, 1999

EXPIRATION DATE:                       Three (3) years after the Commencement Date with earlier 60 day
                                       termination rights

BASE RENT:                             $3,000 per month

LANDLORD'S ADDRESS FOR PAYMENT OF
RENT:                                  R & R Land, LLC
                                       999 Adams Street, Suite 302
                                       St. Helena, California  94574

BUSINESS HOURS:                        9:00 a.m. to 5:00 p.m.,  Monday through Friday, excluding
                                       holidays

LANDLORD'S ADDRESS
FOR NOTICES:                           R & R Land, LLC
                                       999 Adams Street, Suite 302
                                       St. Helena, California  94574

</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                    <C>

TENANT'S ADDRESS                       Dean & DeLuca  Brands, Inc
FOR NOTICES:                           560 Broadway
                                       New York, NY 10012

PROPERTY MANAGER:                      Pat Roney

ADDITIONAL PROVISIONS:                 35.  EXTENSION OPTION

</TABLE>

EXHIBITS:
Exhibit A:         The Premises
Exhibit B:         Building Rules
Exhibit C:         Additional Provisions

         The Basic Lease Information set forth above is part of the Lease. In
the event of any conflict between any provision in the Basic Lease Information
and the Lease, the Lease shall control.

                                       ii

<PAGE>

         THIS LEASE is made as of the Lease Date set forth in the Basic Lease
Information, by and between the Landlord identified in the Basic Lease
Information ("LANDLORD"), and the Tenant identified in the Basic Lease
Information ("TENANT"). Landlord and Tenant hereby agree as follows:

1. PREMISES. Landlord hereby leases to Tenant, and Tenant hereby leases from
Landlord, upon the terms and subject to the conditions of this Lease, the office
space identified in the Basic Lease Information as the Premises (the
"PREMISES"), in the Building located at the address specified in the Basic Lease
Information (the "BUILDING"). The approximate configuration and location of the
Premises is shown on EXHIBIT A. Landlord and Tenant agree that the rentable area
of the Premises for all purposes under this Lease shall be the Rentable Area
specified in the Basic Lease Information. The Building, together with the
parking facilities serving the Building (the "PARKING FACILITY"), and the
parcel(s) of land on which the Building and the Parking Facility are situated
are collectively referred to herein as the Property (the "PROPERTY").

2. TERM; POSSESSION. The term of this Lease (the "TERM") shall commence on the
Commencement Date as described below and, unless sooner terminated, shall expire
on the Expiration Date set forth in the Basic Lease Information (the "EXPIRATION
DATE"). The "COMMENCEMENT DATE" shall be the date as specified in the Basic
Lease Information; provided, however, that Landlord shall not be liable for any
claims, damages or liabilities if the Premises are not ready for occupancy by
the Commencement Date.

         Notwithstanding the foregoing, Lessor or Tenant may terminate this
Lease for any reason, in their sole discretion, by giving notice sixty (60) days
prior to such termination during the original term of this lease, whether or not
the other party is in default under any provision of this Lease.

3. RENT.

   3.1 BASE RENT. Tenant agrees to pay to Landlord the Base Rent set forth in
the Basic Lease Information, without prior notice or demand, on the first day of
each and every calendar month during the Term, except that Base Rent for the
first full calendar month in which Base Rent is payable shall be paid upon
Tenant's execution of this Lease and Base Rent for any partial month at the
beginning of the Term shall be paid on the Commencement Date. Base Rent for any
partial month at the beginning or end of the Term shall be prorated based on the
actual number of days in the month.

   If the Basic Lease Information provides for any change in Base Rent by
reference to years or months (without specifying particular dates), the change
will take effect on the applicable annual or monthly anniversary of the
Commencement Date (which won't necessarily be the first day of a calendar
month).

   3.2 PAYMENT OF RENT. All amounts payable or reimbursable by Tenant under
this Lease, including late charges and interest (collectively, "RENT"), shall
constitute rent and shall be payable and recoverable as rent in the manner
provided in this Lease. All sums payable to Landlord on demand under the terms
of this Lease shall be payable within ten (10) days after notice from

                                       1

<PAGE>

Landlord of the amounts due. All rent shall be paid without offset, recoupment
or deduction in lawful money of the United States of America to Landlord at
Landlord's Address for Payment of Rent as set forth in the Basic Lease
Information, or to such other person or at such other place as Landlord may from
time to time designate.

4. SECURITY DEPOSIT. Tenant shall not be required to provide Landlord any
security deposit for this Lease.

5. USE AND COMPLIANCE WITH LAWS.

   5.1 USE. The Premises shall be used and occupied for general business office
purposes and for no other use or purpose. Tenant shall comply with all present
and future Laws relating to Tenant's use or occupancy of the Premises (and make
any repairs, alterations or improvements as required to comply with all such
Laws), and shall observe the "Building Rules" (as defined in Section 27 - RULES
AND REGULATIONS). Tenant shall not do, bring, keep or sell anything in or about
the Premises that is prohibited by, or that will cause a cancellation of or an
increase in the existing premium for, any insurance policy covering the Property
or any part thereof. Tenant shall not permit the Premises to be occupied or used
in any manner that will constitute waste or a nuisance, or disturb the quiet
enjoyment of or otherwise annoy other tenants in the Building. Without limiting
the foregoing, the Premises shall not be used for educational activities,
practice of medicine or any of the healing arts, providing social services, for
any governmental use (including embassy or consulate use), or for personnel
agency, customer service office, studios for radio, television or other media,
travel agency or reservation center operations or uses. Tenant shall not,
without the prior consent of Landlord, (i) bring into the Building or the
Premises anything that may cause substantial noise, odor or vibration, overload
the floors in the Premises or the Building or any of the heating, ventilating
and air-conditioning ("HVAC"), mechanical, elevator, plumbing, electrical, fire
protection, life safety, security or other systems in the Building ("BUILDING
SYSTEMS"), or jeopardize the structural integrity of the Building or any part
thereof; (ii) connect to the utility systems of the Building any apparatus,
machinery or other equipment other than typical office equipment; or (iii)
connect to any electrical circuit in the Premises any equipment or other load
with aggregate electrical power requirements in excess of 80% of the rated
capacity of the circuit.

   5.2 HAZARDOUS MATERIALS.

        (a) DEFINITIONS.

            (1) "HAZARDOUS MATERIALS" shall mean any substance: (A) that now or
in the future is regulated or governed by, requires investigation or remediation
under, or is defined as a hazardous waste, hazardous substance, pollutant or
contaminant under any governmental statute, code, ordinance, regulation, rule or
order, and any amendment thereto, including the Comprehensive Environmental
Response Compensation and Liability Act, 42 U.S.C. ss.9601 eT Seq., and the
Resource Conservation and Recovery Act, 42 U.S.C. ss.6901 ET seq., or (B) that
is toxic, explosive, corrosive, flammable, radioactive, carcinogenic, dangerous
or otherwise hazardous, including gasoline, diesel fuel, petroleum hydrocarbons,
polychlorinated biphenyls (PCBs), asbestos, radon and urea formaldehyde foam
insulation.

                                       2

<PAGE>

            (2) "ENVIRONMENTAL REQUIREMENTS" shall mean all present and future
Laws, orders, permits, licenses, approvals, authorizations and other
requirements of any kind applicable to Hazardous Materials.

            (3) "HANDLED BY TENANT" and "HANDLING BY TENANT" shall mean and
refer to any installation, handling, generation, storage, use, disposal,
discharge, release, abatement, removal, transportation, or any other activity of
any type by Tenant or its agents, employees, contractors, licensees, assignees,
sublessees, transferees or representatives (collectively, "REPRESENTATIVES") or
its guests, customers, invitees, or visitors (collectively, "VISITORS"), at or
about the Premises in connection with or involving Hazardous Materials.

            (4) "ENVIRONMENTAL LOSSES" shall mean all costs and expenses of any
kind, damages, including foreseeable and unforeseeable consequential damages,
fines and penalties incurred in connection with any violation of and compliance
with Environmental Requirements and all losses of any kind attributable to the
diminution of value, loss of use or adverse effects on marketability or use of
any portion of the Premises or Property.

                (b) TENANT'S COVENANTS. No Hazardous Materials shall be Handled
by Tenant at or about the Premises or Property without Landlord's prior written
consent, which consent may be granted, denied, or conditioned upon compliance
with Landlord's requirements, all in Landlord's absolute discretion.
Notwithstanding the foregoing, normal quantities and use of those Hazardous
Materials customarily used in the conduct of general office activities, such as
copier fluids and cleaning supplies ("PERMITTED HAZARDOUS MATERIALS"), may be
used and stored at the Premises without Landlord's prior written consent,
provided that Tenant's activities at or about the Premises and Property and the
Handling by Tenant of all Hazardous Materials shall comply at all times with all
Environmental Requirements. At the expiration or termination of the Lease,
Tenant shall promptly remove from the Premises and Property all Hazardous
Materials Handled by Tenant at the Premises or the Property. Tenant shall keep
Landlord fully and promptly informed of all Handling by Tenant of Hazardous
Materials other than Permitted Hazardous Materials. Tenant shall be responsible
and liable for the compliance with all of the provisions of this Section by all
of Tenant's Representatives and Visitors, and all of Tenant's obligations under
this Section (including its indemnification obligations under paragraph (e)
below) shall survive the expiration or termination of this Lease.

                (c) COMPLIANCE. Tenant shall at Tenant's expense promptly take
all actions required by any governmental agency or entity in connection with or
as a result of the Handling by Tenant of Hazardous Materials at or about the
Premises or Property, including inspection and testing, performing all cleanup,
removal and remediation work required with respect to those Hazardous Materials,
complying with all closure requirements and post-closure monitoring, and filing
all required reports or plans. All of the foregoing work and all Handling by
Tenant of all Hazardous Materials shall be performed in a good, safe and
workmanlike manner by consultants qualified and licensed to undertake such work
and in a manner that will not interfere with any other tenant's quiet enjoyment
of the Property or Landlord's use, operation, leasing and sale of the Property.
Tenant shall deliver to Landlord prior to delivery to any governmental agency,
or promptly after receipt from any such agency, copies of all permits,
manifests, closure or remedial

                                       3

<PAGE>

action plans, notices, and all other documents relating to the Handling by
Tenant of Hazardous Materials at or about the Premises or Property. If any lien
attaches to the Premises or the Property in connection with or as a result of
the Handling by Tenant of Hazardous Materials, and Tenant does not cause the
same to be released, by payment, bonding or otherwise, within ten (10) days
after the attachment thereof, Landlord shall have the right but not the
obligation to cause the same to be released and any sums expended by Landlord
(plus Landlord's administrative costs) in connection therewith shall be payable
by Tenant on demand.

                (d) LANDLORD'S RIGHTS. Landlord shall have the right, but not
the obligation, to enter the Premises at any reasonable time (i) to confirm
Tenant's compliance with the provisions of this Section 5.2, and (ii) to perform
Tenant's obligations under this Section if Tenant has failed to do so after
reasonable notice to Tenant. Landlord shall also have the right to engage
qualified Hazardous Materials consultants to inspect the Premises and review the
Handling by Tenant of Hazardous Materials, including review of all permits,
reports, plans, and other documents regarding same. Tenant shall pay to Landlord
on demand the costs of Landlord's consultants' fees and all costs incurred by
Landlord in performing Tenant's obligations under this Section. Landlord shall
use reasonable efforts to minimize any interference with Tenant's business
caused by Landlord's entry into the Premises, but Landlord shall not be
responsible for any interference caused thereby.

                (e) TENANT'S INDEMNIFICATION. Tenant agrees to indemnify,
defend, protect and hold harmless Landlord and its partners or members and its
or their partners, members, directors, officers, shareholders, employees and
agents from all Environmental Losses and all other claims, actions, losses,
damages, liabilities, costs and expenses of every kind, including reasonable
attorneys', experts' and consultants' fees and costs, incurred at any time and
arising from or in connection with the Handling by Tenant of Hazardous Materials
at or about the Property or Tenant's failure to comply in full with all
Environmental Requirements with respect to the Premises.

6. ALTERATIONS. Subject to the provisions of Section 5 - USE AND COMPLIANCE WITH
LAWS, Tenant may install and maintain furnishings, equipment, movable
partitions, business equipment and other trade fixtures ("TRADE FIXTURES") in
the Premises, provided that the Trade Fixtures do not become an integral part of
the Premises or the Building. Tenant shall promptly repair any damage to the
Premises or the Building caused by any installation or removal of such Trade
Fixtures.

7. MAINTENANCE AND REPAIRS.

   7.1 By taking possession of the Premises Tenant agrees that the Premises are
then in a good and tenantable condition. During the Term, Tenant at Tenant's
expense but under the direction of Landlord, shall repair and maintain the
Premises, including the interior walls, floor coverings, ceiling (ceiling tiles
and grid), Tenant Improvements, Alterations, fire extinguishers, outlets and
fixtures, and any appliances (including dishwashers, hot water heaters and
garbage disposers) in the Premises, in a first class condition, and keep the
Premises in a clean, safe and orderly condition.

   7.2 Landlord shall maintain or cause to be maintained in reasonably good
order, condition and repair, the structural portions of the roof, foundations,
floors and exterior walls of the

                                       4

<PAGE>

Building, the Building Systems, and the public and common areas of the Property,
such as elevators, stairs, corridors and restrooms; provided, however, that
Tenant shall pay the cost of repairs for any damage occasioned by Tenant's use
of the Premises or the Property or any act or omission of Tenant or Tenant's
Representatives or Visitors, to the extent (if any) not covered by Landlord's
property insurance. Landlord shall be under no obligation to inspect the
Premises. Tenant shall promptly report in writing to Landlord any defective
condition known to Tenant which Landlord is required to repair. As a material
part of the consideration for this Lease, Tenant hereby waives any benefits of
any applicable existing or future Law, including the provisions of California
Civil Code Sections 1932(1), 1941 and 1942, that allows a tenant to make repairs
at its landlord's expense.

   7.3 Landlord hereby reserves the right, at any time and from time to time,
without liability to Tenant, and without constituting an eviction, constructive
or otherwise, or entitling Tenant to any abatement of rent or to terminate this
Lease or otherwise releasing Tenant from any of Tenant's obligations under this
Lease:

        (a) To make alterations, additions, repairs, improvements to or in or to
decrease the size of area of, all or any part of the Building, the fixtures and
equipment therein, and the Building Systems;

        (b) To change the Building's name or street address;

        (c) To install and maintain any and all signs on the exterior and
interior of the Building;

        (d) To reduce, increase, enclose or otherwise change at any time and
from time to time the size, number, location, lay-out and nature of the common
areas (including the Parking Facility) and other tenancies and premises in the
Property and to create additional rentable areas through use or enclosure of
common areas; and

        (e) If any governmental authority promulgates or revises any Law or
imposes mandatory or voluntary controls or guidelines on Landlord or the
Property relating to the use or conservation of energy or utilities or the
reduction of automobile or other emissions or reduction or management of traffic
or parking on the Property (collectively "CONTROLS"), to comply with such
Controls, whether mandatory or voluntary, or make any alterations to the
Property related thereto.

8. TENANT'S TAXES. "TENANT'S TAXES" shall mean (a) all taxes, assessments,
license fees and other governmental charges or impositions levied or assessed
against or with respect to Tenant's personal property or Trade Fixtures in the
Premises, whether any such imposition is levied directly against Tenant or
levied against Landlord or the Property, (b) all rental, excise, sales or
transaction privilege taxes arising out of this Lease (excluding, however, state
and federal personal or corporate income taxes measured by the income of
Landlord from all sources) imposed by any taxing authority upon Landlord or upon
Landlord's receipt of any rent payable by Tenant pursuant to the terms of this
Lease ("RENTAL TAX"), and (c) any increase in Taxes attributable to inclusion of
a value placed on Tenant's personal property, Trade Fixtures or Alterations.
Tenant shall pay any Rental Tax to Landlord in addition to and at the same time
as Base Rent is payable under this

                                       5

<PAGE>

Lease, and shall pay all other Tenant's Taxes before delinquency (and, at
Landlord's request, shall furnish Landlord satisfactory evidence thereof). If
Landlord pays Tenant's Taxes or any portion thereof, Tenant shall reimburse
Landlord upon demand for the amount of such payment, together with interest at
the Interest Rate from the date of Landlord's payment to the date of Tenant's
reimbursement.

9. UTILITIES AND SERVICES.

   9.1 UTILITIES. Lessor covenants and agrees that, as of the Commencement
Date, the Premises shall be serviced with gas, electric, telephone, water,
septic and other utilities. Lessor agrees, at its sole cost and expense, to
cause the necessary mains, conduits and other facilities to be provided to make
water, sewer, gas, telephone and electricity available to the Premises from and
after the Commencement Date, including the payment of impact or tap fees and
meter installation charges. After installation, Lessee shall pay all charges for
consumption of utility services furnished to the Premises during the Term.
Lessor agrees to use reasonable efforts to maintain, and if possible, increase,
the amount of water provided to the Premises.

   9.2 INTERRUPTION OF SERVICES. In the event of an interruption in or
failure or inability to provide any services or utilities to the Premises or
Building for any reason (a "SERVICE FAILURE"), such Service Failure shall not,
regardless of its duration, impose upon Landlord any liability whatsoever,
constitute an eviction of Tenant, constructive or otherwise, entitle Tenant to
an abatement of rent or to terminate this Lease or otherwise release Tenant from
any of Tenant's obligations under this Lease. Tenant hereby waives any benefits
of any applicable existing or future Law, including the provisions of California
Civil Code Section 1932(1), permitting the termination of this Lease due to such
interruption, failure or inability.

10. EXCULPATION AND INDEMNIFICATION.

   10.1 LANDLORD'S INDEMNIFICATION OF TENANT. Landlord shall indemnify,
protect, defend and hold Tenant harmless from and against any claims, actions,
liabilities, damages, costs or expenses, including reasonable attorneys' fees
and costs incurred in defending against the same ("CLAIMS") asserted by any
third party against Tenant for loss, injury or damage, to the extent such loss,
injury or damage is caused by the willful misconduct or negligent acts or
omissions of Landlord or its authorized representatives.

   10.2 TENANT'S INDEMNIFICATION OF LANDLORD. Tenant shall indemnify,
protect, defend and hold Landlord and Landlord's authorized representatives
harmless from and against Claims arising from (a) the acts or omissions of
Tenant or Tenant's Representatives or Visitors in or about the Property, or (b)
any construction or other work undertaken by Tenant on the Premises (including
any design defects), or (c) any breach or default under this Lease by Tenant, or
(d) any loss, injury or damage, howsoever and by whomsoever caused, to any
person or property, occurring in or about the Premises during the Term,
excepting only Claims described in this clause (d) to the extent they are caused
by the willful misconduct or negligent acts or omissions of Landlord or its
authorized representatives.

                                       6

<PAGE>

   10.3 DAMAGE TO TENANT AND TENANT'S PROPERTY. Landlord shall not be liable
to Tenant for any loss, injury or other damage to Tenant or to Tenant's property
in or about the Premises or the Property from any cause (including defects in
the Property or in any equipment in the Property; fire, explosion or other
casualty; bursting, rupture, leakage or overflow of any plumbing or other pipes
or lines, sprinklers, tanks, drains, drinking fountains or washstands in, above,
or about the Premises or the Property; or acts of other tenants in the
Property). Tenant hereby waives all claims against Landlord for any such loss,
injury or damage and the cost and expense of defending against claims relating
thereto, including any loss, injury or damage caused by Landlord's negligence
(active or passive) or willful misconduct. Notwithstanding any other provision
of this Lease to the contrary, in no event shall Landlord be liable to Tenant
for any punitive or consequential damages or damages for loss of business by
Tenant.

   10.4 SURVIVAL. The obligations of the parties under this Section 10 shall
survive the expiration or termination of this Lease.

11. INSURANCE.

   11.1 TENANT'S INSURANCE.

        (a) LIABILITY INSURANCE. Tenant shall maintain in full force throughout
the Term, commercial general liability insurance providing coverage on an
occurrence form basis with limits of not less than Two Million Dollars
($2,000,000.00) each occurrence for bodily injury and property damage combined,
Two Million Dollars ($2,000,000.00) annual general aggregate, and Two Million
Dollars ($2,000,000.00) products and completed operations annual aggregate.
Tenant's liability insurance policy or policies shall: (i) include premises and
operations liability coverage, products and completed operations liability
coverage, broad form property damage coverage including completed operations,
blanket contractual liability coverage including, to the maximum extent
possible, coverage for the indemnification obligations of Tenant under this
Lease, and personal and advertising injury coverage; (ii) provide that the
insurance company has the duty to defend all insureds under the policy; (iii)
provide that defense costs are paid in addition to and do not deplete any of the
policy limits; (iv) cover liabilities arising out of or incurred in connection
with Tenant's use or occupancy of the Premises or the Property; (v) extend
coverage to cover liability for the actions of Tenant's Representatives and
Visitors; and (vi) designate separate limits for the Property. Each policy of
liability insurance required by this Section shall: (1) contain a cross
liability endorsement or separation of insureds clause; (2) provide that any
waiver of subrogation rights or release prior to a loss does not void coverage;
(3) provide that it is primary to and not contributing with, any policy of
insurance carried by Landlord covering the same loss; (4) provide that any
failure to comply with the reporting provisions by Tenant shall not affect
coverage provided to Landlord, its partners, property managers and Mortgagees;
and (5) name Landlord, its partners, the Property Manager identified in the
Basic Lease Information (the "PROPERTY MANAGER"), and such other parties in
interest as Landlord may from time to time reasonably designate to Tenant in
writing, as additional insureds. Such additional insureds shall be provided at
least the same extent of coverage as is provided to Tenant under such policies
with respect to liability arising out of the ownership, maintenance or use of
the Premises. All endorsements effecting such additional insured status shall be
at least as broad as additional insured endorsement form number CG 20 11 11 85
or CG 20 11 11 01 96 promulgated by the Insurance Services Office.

                                       7

<PAGE>

        (b) PROPERTY INSURANCE. Tenant shall at all times maintain in effect
with respect to any Alterations and Tenant's Trade Fixtures and personal
property, commercial property insurance providing coverage, on an "all risk" or
"special form" basis, in an amount equal to at least 90% of the full replacement
cost of the covered property. Tenant may carry such insurance under a blanket
policy, provided that such policy provides coverage equivalent to a separate
policy. During the Term, the proceeds from any such policies of insurance shall
be used for the repair or replacement of the Alterations, Trade Fixtures and
personal property so insured. Landlord shall be provided coverage under such
insurance to the extent of its insurable interest and, if requested by Landlord,
both Landlord and Tenant shall sign all documents reasonably necessary or proper
in connection with the settlement of any claim or loss under such insurance.
Landlord will have no obligation to carry insurance on any Alterations or on
Tenant's Trade Fixtures or personal property.

        (c) REQUIREMENTS FOR ALL POLICIES. Each policy of insurance required
under this Section 11.1 shall: (i) be in a form, and written by an insurer,
reasonably acceptable to Landlord, (ii) be maintained at Tenant's sole cost and
expense, and (iii) require at least thirty (30) days' written notice to Landlord
prior to any cancellation, nonrenewal or modification of insurance coverage.
Insurance companies issuing such policies shall have rating classifications of
"A" or better and financial size category ratings of "VII" or better according
to the latest edition of the A.M. Best Key Rating Guide. All insurance companies
issuing such policies shall be admitted carriers licensed to do business in the
state where the Property is located. Any deductible amount under such insurance
shall not exceed $5,000. Tenant shall provide to Landlord, upon request,
evidence that the insurance required to be carried by Tenant pursuant to this
Section, including any endorsement effecting the additional insured status, is
in full force and effect and that premiums therefor have been paid.

        (d) UPDATING COVERAGE. Tenant shall increase the amounts of insurance as
required by any Mortgagee, and, not more frequently than once every three (3)
years, as recommended by Landlord's insurance broker, if, in the opinion of
either of them, the amount of insurance then required under this Lease is not
adequate. Any limits set forth in this Lease on the amount or type of coverage
required by Tenant's insurance shall not limit the liability of Tenant under
this Lease.

        (e) CERTIFICATES OF INSURANCE. Prior to occupancy of the Premises by
Tenant, and not less than thirty (30) days prior to expiration of any policy
thereafter, Tenant shall furnish to Landlord a certificate of insurance
reflecting that the insurance required by this Section is in force, accompanied
by an endorsement showing the required additional insureds satisfactory to
Landlord in substance and form. Notwithstanding the requirements of this
paragraph, Tenant shall at Landlord's request provide to Landlord a certified
copy of each insurance policy required to be in force at any time pursuant to
the requirements of this Lease or its Exhibits.

   11.2 LANDLORD'S INSURANCE. During the Term, to the extent such coverages are
available at a commercially reasonable cost, Landlord shall maintain in effect
insurance on the Building with responsible insurers, on an "all risk" or
"special form" basis, insuring the Building and the Tenant Improvements in an
amount equal to at least 90% of the replacement cost thereof, excluding land,

                                       8

<PAGE>

foundations, footings and underground installations. Landlord may, but shall not
be obligated to, carry insurance against additional perils and/or in greater
amounts.

   11.3 MUTUAL WAIVER OF RIGHT OF RECOVERY & WAIVER OF SUBROGATION. Landlord
and Tenant each hereby waive any right of recovery against each other and the
partners, managers, members, shareholders, officers, directors and authorized
representatives of each other for any loss or damage that is covered by any
policy of property insurance maintained by either party (or required by this
Lease to be maintained) with respect to the Premises or the Property or any
operation therein, regardless of cause, including negligence (active or passive)
of the party benefiting from the waiver. If any such policy of insurance
relating to this Lease or to the Premises or the Property does not permit the
foregoing waiver or if the coverage under any such policy would be invalidated
as a result of such waiver, the party maintaining such policy shall obtain from
the insurer under such policy a waiver of all right of recovery by way of
subrogation against either party in connection with any claim, loss or damage
covered by such policy.

12. DAMAGE OR DESTRUCTION.

   12.1 LANDLORD'S DUTY TO REPAIR.

        (a) If all or a substantial part of the Premises are rendered
untenantable or inaccessible by damage to all or any part of the Property from
fire or other casualty then, unless either party is entitled to and elects to
terminate this Lease pursuant to Sections 12.2 - LANDLORD'S RIGHT TO TERMINATE
and 12.3 - TENANT'S RIGHT TO TERMINATE, Landlord shall, at its expense, use
reasonable efforts to repair and restore the Premises and/or the Property, as
the case may be, to substantially their former condition to the extent permitted
by then applicable Laws; provided, however, that in no event shall Landlord have
any obligation for repair or restoration beyond the extent of insurance proceeds
received by Landlord for such repair or restoration, or for any of Tenant's
personal property, Trade Fixtures or Alterations.

        (b) If Landlord is required or elects to repair damage to the Premises
and/or the Property, this Lease shall continue in effect, but Tenant's Base Rent
and Additional Rent shall be abated with regard to any portion of the Premises
that Tenant is prevented from using by reason of such damage or its repair from
the date of the casualty until substantial completion of Landlord's repair of
the affected portion of the Premises as required under this Lease. In no event
shall Landlord be liable to Tenant by reason of any injury to or interference
with Tenant's business or property arising from fire or other casualty or by
reason of any repairs to any part of the Property necessitated by such casualty.

   12.2 LANDLORD'S RIGHT TO TERMINATE. Landlord may elect to terminate this
Lease following damage by fire or other casualty under the following
circumstances:

        (a) If, in the reasonable judgment of Landlord, the Premises and the
Property cannot be substantially repaired and restored under applicable Laws
within one (1) year from the date of the casualty;

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<PAGE>

        (b) If, in the reasonable judgment of Landlord, adequate proceeds are
not, for any reason, made available to Landlord from Landlord's insurance
policies (and/or from Landlord's funds made available for such purpose, at
Landlord's sole option) to make the required repairs;

        (c) If the Building is damaged or destroyed to the extent that, in the
reasonable judgment of Landlord, the cost to repair and restore the Building
would exceed twenty-five percent (25%) of the full replacement cost of the
Building, whether or not the Premises are at all damaged or destroyed; or

        (d) If the fire or other casualty occurs during the last year of the
Term.

If any of the circumstances described in subparagraphs (a), (b), (c) or (d) of
    this Section 12.2 occur or arise, Landlord shall give Tenant notice within
    one hundred and twenty (120) days after the date of the casualty, specifying
    whether Landlord elects to terminate this Lease as provided above and, if
    not, Landlord's estimate of the time required to complete Landlord's repair
    obligations under this Lease.

   12.3 TENANT'S RIGHT TO TERMINATE. If all or a substantial part of the
Premises are rendered untenantable or inaccessible by damage to all or any part
of the Property from fire or other casualty, and Landlord does not elect to
terminate as provided above, then Tenant may elect to terminate this Lease if
Landlord's estimate of the time required to complete Landlord's repair
obligations under this Lease is greater than one (1) year, in which event Tenant
may elect to terminate this Lease by giving Landlord notice of such election to
terminate within thirty (30) days after Landlord's notice to Tenant pursuant to
Section 12.2 - LANDLORD'S RIGHT TO TERMINATE.

   12.4 WAIVER. Landlord and Tenant each hereby waive the provisions of
California Civil Code Sections 1932(2), 1933(4) and any other applicable
existing or future Law permitting the termination of a lease agreement in the
event of damage or destruction under any circumstances other than as provided in
Sections 12.2 - LANDLORD'S RIGHT TO TERMINATE and 12.3 - TENANT'S RIGHT TO
TERMINATE.

13. CONDEMNATION.

    13.1 DEFINITIONS.

         (a) "AWARD" shall mean all compensation, sums, or anything of value
awarded, paid or received on a total or partial Condemnation.

         (b) "CONDEMNATION" shall mean (i) a permanent taking (or a temporary
taking for a period extending beyond the end of the Term) pursuant to the
exercise of the power of condemnation or eminent domain by any public or
quasi-public authority, private corporation or individual having such power
("CONDEMNOR"), whether by legal proceedings or otherwise, or (ii) a voluntary
sale or transfer by Landlord to any such authority, either under threat of
condemnation or while legal proceedings for condemnation are pending.

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<PAGE>

         (c) "DATE OF CONDEMNATION" shall mean the earlier of the date that
title to the property taken is vested in the Condemnor or the date the Condemnor
has the right to possession of the property being condemned.

   13.2 EFFECT ON LEASE.

        (a) If the Premises are totally taken by Condemnation, this Lease shall
terminate as of the Date of Condemnation. If a portion but not all of the
Premises is taken by Condemnation, this Lease shall remain in effect; provided,
however, that if the portion of the Premises remaining after the Condemnation
will be unsuitable for Tenant's continued use, then upon notice to Landlord
within thirty (30) days after Landlord notifies Tenant of the Condemnation,
Tenant may terminate this Lease effective as of the Date of Condemnation.

        (b) If twenty-five percent (25%) or more of the Project or of the
parcel(s) of land on which the Building is situated or of the Parking Facility
or of the floor area in the Building is taken by Condemnation, or if as a result
of any Condemnation the Building is no longer reasonably suitable for use as an
office building, whether or not any portion of the Premises is taken, Landlord
may elect to terminate this Lease, effective as of the Date of Condemnation, by
notice to Tenant within thirty (30) days after the Date of Condemnation.

        (c) If all or a portion of the Premises is temporarily taken by a
Condemnor for a period not extending beyond the end of the Term, this Lease
shall remain in full force and effect.

   13.3 RESTORATION. If this Lease is not terminated as provided in Section
13.2 - EFFECT ON LEASE, Landlord, at its expense, shall diligently proceed to
repair and restore the Premises to substantially its former condition (to the
extent permitted by then applicable Laws) and/or repair and restore the Building
to an architecturally complete office building; provided, however, that
Landlord's obligations to so repair and restore shall be limited to the amount
of any Award received by Landlord and not required to be paid to any Mortgagee
(as defined in Section 20.2 below). In no event shall Landlord have any
obligation to repair or replace any improvements in the Premises beyond the
amount of any Award received by Landlord for such repair or to repair or replace
any of Tenant's personal property, Trade Fixtures, or Alterations.

   13.4 ABATEMENT AND REDUCTION OF RENT. If any portion of the Premises is
taken in a Condemnation or is rendered permanently untenantable by repairs
necessitated by the Condemnation, and this Lease is not terminated, the Base
Rent and Additional Rent payable under this Lease shall be proportionally
reduced as of the Date of Condemnation based upon the percentage of rentable
square feet in the Premises so taken or rendered permanently untenantable. In
addition, if this Lease remains in effect following a Condemnation and Landlord
proceeds to repair and restore the Premises, the Base Rent and Additional Rent
payable under this Lease shall be abated during the period of such repair or
restoration to the extent such repairs prevent Tenant's use of the Premises.

   13.5 AWARDS. Any Award made shall be paid to Landlord, and Tenant hereby
assigns to Landlord, and waives all interest in or claim to, any such Award,
including any claim for the value of the unexpired Term; provided, however, that
Tenant shall be entitled to receive, or to prosecute a

                                       11

<PAGE>

separate claim for, an Award for a temporary taking of the Premises or a portion
thereof by a Condemnor where this Lease is not terminated (to the extent such
Award relates to the unexpired Term), or an Award or portion thereof separately
designated for relocation expenses or the interruption of or damage to Tenant's
business or as compensation for Tenant's personal property, Trade Fixtures or
Alterations.

   13.6 WAIVER. Landlord and Tenant each hereby waive the provisions of
California Code of Civil Procedure Section 1265.130 and any other applicable
existing or future Law allowing either party to petition for a termination of
this Lease upon a partial taking of the Premises and/or the Property.

14. ASSIGNMENT AND SUBLETTING.

   14.1 LANDLORD'S CONSENT REQUIRED. Tenant shall not assign this Lease or any
interest therein, or sublet or license or permit the use or occupancy of the
Premises or any part thereof by or for the benefit of anyone other than Tenant,
or in any other manner transfer all or any part of Tenant's interest under this
Lease (each and all a "TRANSFER"), without the prior written consent of
Landlord, which consent (subject to the other provisions of this Section 14)
shall not be unreasonably withheld. If Tenant is a business entity, any direct
or indirect transfer of fifty percent (50%) or more of the ownership interest of
the entity (whether in a single transaction or in the aggregate through more
than one transaction) shall be deemed a Transfer. Notwithstanding any provision
in this Lease to the contrary, Tenant shall not mortgage, pledge, hypothecate or
otherwise encumber this Lease or all or any part of Tenant's interest under this
Lease.

   14.2 REASONABLE CONSENT.

        (a) Prior to any proposed Transfer, Tenant shall submit in writing to
Landlord (i) the name and legal composition of the proposed assignee, subtenant,
user or other transferee (each a "PROPOSED TRANSFEREE"); (ii) the nature of the
business proposed to be carried on in the Premises; (iii) a current balance
sheet, income statements for the last two years and such other reasonable
financial and other information concerning the Proposed Transferee as Landlord
may request; and (iv) a copy of the proposed assignment, sublease or other
agreement governing the proposed Transfer. Within fifteen (15) Business Days
after Landlord receives all such information it shall notify Tenant whether it
approves or disapproves such Transfer or if it elects to proceed under Section
14.7 - LANDLORD'S RIGHT TO SPACE.

        (b) Tenant acknowledges and agrees that, among other circumstances for
which Landlord could reasonably withhold consent to a proposed Transfer, it
shall be reasonable for Landlord to withhold consent where (i) the Proposed
Transferee does not intend itself to occupy the entire portion of the Premises
assigned or sublet, (ii) Landlord reasonably disapproves of the Proposed
Transferee's business operating ability or history, reputation or
creditworthiness or the character of the business to be conducted by the
Proposed Transferee at the Premises, (iii) the Proposed Transferee is a
governmental agency or unit or an existing tenant in the Project, (iv) the
proposed Transfer would violate any "exclusive" rights of any tenants in the
Project, (v) Landlord or Landlord's agent has shown space in the Building to the
Proposed Transferee or responded to any inquiries from the Proposed Transferee
or the Proposed Transferee's agent concerning

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<PAGE>

availability of space in the Building, at any time within the preceding nine
months, or (vi) Landlord otherwise determines that the proposed Transfer would
have the effect of decreasing the value of the Building or increasing the
expenses associated with operating, maintaining and repairing the Property. In
no event may Tenant publicly offer or advertise all or any portion of the
Premises for assignment or sublease at a rental less than that then sought by
Landlord for a direct lease (non-sublease) of comparable space in the Project.

         14.3 EXCESS CONSIDERATION. If Landlord consents to the Transfer,
Tenant shall pay to Landlord as additional rent, within ten (10) days after
receipt by Tenant, any consideration paid by any transferee (the "TRANSFEREE")
for the Transfer, including, in the case of a sublease, the excess of the rent
and other consideration payable by the subtenant over the amount of Base Rent
and Additional Rent payable hereunder applicable to the subleased space.

         14.4 NO RELEASE OF TENANT. No consent by Landlord to any Transfer
shall relieve Tenant of any obligation to be performed by Tenant under this
Lease, whether occurring before or after such consent, assignment, subletting or
other Transfer. Each Transferee shall be jointly and severally liable with
Tenant (and Tenant shall be jointly and severally liable with each Transferee)
for the payment of rent (or, in the case of a sublease, rent in the amount set
forth in the sublease) and for the performance of all other terms and provisions
of this Lease. The consent by Landlord to any Transfer shall not relieve Tenant
or any such Transferee from the obligation to obtain Landlord's express prior
written consent to any subsequent Transfer by Tenant or any Transferee. The
acceptance of rent by Landlord from any other person (whether or not such person
is an occupant of the Premises) shall not be deemed to be a waiver by Landlord
of any provision of this Lease or to be a consent to any Transfer.

         14.5 EXPENSES AND ATTORNEYS' FEES. Tenant shall pay to Landlord on
demand all costs and expenses (including reasonable attorneys' fees) incurred by
Landlord in connection with reviewing or consenting to any proposed Transfer
(including any request for consent to, or any waiver of Landlord's rights in
connection with, any security interest in any of Tenant's property at the
Premises).

         14.6 EFFECTIVENESS OF TRANSFER. Prior to the date on which any
permitted Transfer (whether or not requiring Landlord's consent) becomes
effective, Tenant shall deliver to Landlord a counterpart of the fully executed
Transfer document and Landlord's standard form of Consent to Assignment or
Consent to Sublease executed by Tenant and the Transferee in which each of
Tenant and the Transferee confirms its obligations pursuant to this Lease.
Failure or refusal of a Transferee to execute any such instrument shall not
release or discharge the Transferee from liability as provided herein. The
voluntary, involuntary or other surrender of this Lease by Tenant, or a mutual
cancellation by Landlord and Tenant, shall not work a merger, and any such
surrender or cancellation shall, at the option of Landlord, either terminate all
or any existing subleases or operate as an assignment to Landlord of any or all
of such subleases.

         14.7 LANDLORD'S RIGHT TO SPACE. Notwithstanding any of the above
provisions of this Section to the contrary, if Tenant notifies Landlord that it
desires to enter into a Transfer, Landlord, in lieu of consenting to such
Transfer, may elect (x) in the case of an assignment or a sublease of the entire
Premises, to terminate this Lease, or (y) in the case of a sublease of less than
the entire

                                       13

<PAGE>

Premises, to terminate this Lease as it relates to the space proposed to be
subleased by Tenant. In such event, this Lease will terminate (or the space
proposed to be subleased will be removed from the Premises subject to this Lease
and the Base Rent and Tenant's Share under this Lease shall be proportionately
reduced) on the date the Transfer was proposed to be effective, and Landlord may
lease such space to any party, including the prospective Transferee identified
by Tenant.

   14.8 ASSIGNMENT OF SUBLEASE RENTS. Tenant hereby absolutely and
irrevocably assigns to Landlord any and all rights to receive rent and other
consideration from any sublease and agrees that Landlord, as assignee or as
attorney-in-fact for Tenant for purposes hereof, or a receiver for Tenant
appointed on Landlord's application may (but shall not be obligated to) collect
such rents and other consideration and apply the same toward Tenant's
obligations to Landlord under this Lease; provided, however, that Landlord
grants to Tenant at all times prior to occurrence of any breach or default by
Tenant a revocable license to collect such rents (which license shall
automatically and without notice be and be deemed to have been revoked and
terminated immediately upon any Event of Default).

15. DEFAULT AND REMEDIES.

   15.1 EVENTS OF DEFAULT. The occurrence of any of the following shall
constitute an "EVENT OF DEFAULT" by Tenant:

        (a) Tenant fails to make any payment of rent when due, or any amount
required to replenish the security deposit as provided in Section 4 above, if
payment in full is not received by Landlord within three (3) days after written
notice that it is due.

        (b) Tenant abandons the Premises.

        (c) Tenant fails timely to deliver any subordination document, estoppel
certificate or financial statement requested by Landlord within the applicable
time period specified in Sections 20 ENCUMBRANCES - and 21 - ESTOPPEL
CERTIFICATES AND FINANCIAL STATEMENTS - below.

        (d) Tenant violates the restrictions on Transfer set forth in Section 14
- ASSIGNMENT AND SUBLETTING.

        (e) Tenant ceases doing business as a going concern; makes an assignment
for the benefit of creditors; is adjudicated an insolvent, files a petition (or
files an answer admitting the material allegations of a petition) seeking relief
under any state or federal bankruptcy or other statute, law or regulation
affecting creditors' rights; all or substantially all of Tenant's assets are
subject to judicial seizure or attachment and are not released within 30 days,
or Tenant consents to or acquiesces in the appointment of a trustee, receiver or
liquidator for Tenant or for all or any substantial part of Tenant's assets.

        (f) Tenant fails, within ninety (90) days after the commencement of any
proceedings against Tenant seeking relief under any state or federal bankruptcy
or other statute, law or regulation affecting creditors' rights, to have such
proceedings dismissed, or Tenant fails, within ninety (90) days after an
appointment, without Tenant's consent or acquiescence, of any trustee,

                                       14

<PAGE>

receiver or liquidator for Tenant or for all or any substantial part of Tenant's
assets, to have such appointment vacated.

        (g) Tenant fails to perform or comply with any provision of this Lease
other than those described in (a) through (f) above, and does not fully cure
such failure within fifteen (15) days after notice to Tenant or, if such failure
cannot be cured within such fifteen (15)-day period, Tenant fails within such
fifteen (15)-day period to commence, and thereafter diligently proceed with, all
actions necessary to cure such failure as soon as reasonably possible but in all
events within ninety (90) days of such notice; provided, however, that if
Landlord in Landlord's reasonable judgment determines that such failure cannot
or will not be cured by Tenant within such ninety (90) days, then such failure
shall constitute an Event of Default immediately upon such notice to Tenant.

   15.2 REMEDIES. Upon the occurrence of an Event of Default, Landlord shall
have the following remedies, which shall not be exclusive but shall be
cumulative and shall be in addition to any other remedies now or hereafter
allowed by law:

        (a) Landlord may terminate Tenant's right to possession of the Premises
at any time by written notice to Tenant. Tenant expressly acknowledges that in
the absence of such written notice from Landlord, no other act of Landlord,
including re-entry into the Premises, efforts to relet the Premises, reletting
of the Premises for Tenant's account, storage of Tenant's personal property and
Trade Fixtures, acceptance of keys to the Premises from Tenant or exercise of
any other rights and remedies under this Section, shall constitute an acceptance
of Tenant's surrender of the Premises or constitute a termination of this Lease
or of Tenant's right to possession of the Premises. Upon such termination in
writing of Tenant's right to possession of the Premises, as herein provided,
this Lease shall terminate and Landlord shall be entitled to recover damages
from Tenant as provided in California Civil Code Section 1951.2 and any other
applicable existing or future Law providing for recovery of damages for such
breach, including the worth at the time of award of the amount by which the rent
which would be payable by Tenant hereunder for the remainder of the Term after
the date of the award of damages, including Additional Rent as reasonably
estimated by Landlord, exceeds the amount of such rental loss as Tenant proves
could have been reasonably avoided, discounted at the discount rate published by
the Federal Reserve Bank of San Francisco for member banks at the time of the
award plus one percent (1%).

        (b) Landlord shall have the remedy described in California Civil Code
Section 1951.4 (Landlord may continue this Lease in effect after Tenant's breach
and abandonment and recover rent as it becomes due, if Tenant has the right to
sublet or assign, subject only to reasonable limitations).

        (c) Landlord may cure the Event of Default at Tenant's expense. If
Landlord pays any sum or incurs any expense in curing the Event of Default,
Tenant shall reimburse Landlord upon demand for the amount of such payment or
expense with interest at the Interest Rate from the date the sum is paid or the
expense is incurred until Landlord is reimbursed by Tenant.

                                       15

<PAGE>

        (d) Landlord may remove all Tenant's property from the Premises, and
such property may be stored by Landlord in a public warehouse or elsewhere at
the sole cost and for the account of Tenant. If Landlord does not elect to store
any or all of Tenant's property left in the Premises, Landlord may consider such
property to be abandoned by Tenant, and Landlord may thereupon dispose of such
property in any manner deemed appropriate by Landlord. Any proceeds realized by
Landlord on the disposal of any such property shall be applied first to offset
all expenses of storage and sale, then credited against Tenant's outstanding
obligations to Landlord under this Lease, and any balance remaining after
satisfaction of all obligations of Tenant under this Lease shall be delivered to
Tenant.

16. LATE CHARGE AND INTEREST.

   16.1 LATE CHARGE. If any payment of rent is not received by Landlord when
due, Tenant shall pay to Landlord on demand as a late charge an additional
amount equal to five percent (5%) of the overdue payment. A late charge shall
not be imposed more than once on any particular installment not paid when due,
but imposition of a late charge on any payment not made when due does not
eliminate or supersede late charges imposed on other (prior) payments not made
when due or preclude imposition of a late charge on other installments or
payments not made when due.

   16.2 INTEREST. In addition to the late charges referred to above, which are
intended to defray Landlord's costs resulting from late payments, any payment
from Tenant to Landlord not paid when due shall at Landlord's option bear
interest from the date due until paid to Landlord by Tenant at the rate of
fifteen percent (15%) per annum or the maximum lawful rate that Landlord may
charge to Tenant under applicable laws, whichever is less (the "INTEREST RATE").
Acceptance of any late charge and/or interest shall not constitute a waiver of
Tenant's default with respect to the overdue sum or prevent Landlord from
exercising any of its other rights and remedies under this Lease.

17. WAIVER. No provisions of this Lease shall be deemed waived by Landlord
unless such waiver is in a writing signed by Landlord. The waiver by Landlord of
any breach of any provision of this Lease shall not be deemed a waiver of such
provision or of any subsequent breach of the same or any other provision of this
Lease. No delay or omission in the exercise of any right or remedy of Landlord
upon any default by Tenant shall impair such right or remedy or be construed as
a waiver. Landlord's acceptance of any payments of rent due under this Lease
shall not be deemed a waiver of any default by Tenant under this Lease
(including Tenant's recurrent failure to timely pay rent) other than Tenant's
nonpayment of the accepted sums, and no endorsement or statement on any check or
payment or in any letter or document accompanying any check or payment shall be
deemed an accord and satisfaction. Landlord's consent to or approval of any act
by Tenant requiring Landlord's consent or approval shall not be deemed to waive
or render unnecessary Landlord's consent to or approval of any subsequent act by
Tenant.

18. ENTRY, INSPECTION AND CLOSURE. Upon reasonable oral or written notice to
Tenant (and without notice in emergencies), Landlord and its authorized
representatives may enter the Premises at all reasonable times to: (a) determine
whether the Premises are in good condition, (b) determine whether Tenant is
complying with its obligations under this Lease, (c) perform any maintenance or
repair of the Premises or the Building that Landlord has the right or obligation
to

                                       16

<PAGE>

perform, (d) install or repair improvements for other tenants where access to
the Premises is required for such installation or repair, (e) serve, post or
keep posted any notices required or allowed under the provisions of this Lease,
(f) show the Premises to prospective brokers, agents, buyers, transferees,
Mortgagees or tenants, or (g) do any other act or thing necessary for the safety
or preservation of the Premises or the Building. When reasonably necessary
Landlord may temporarily close entrances, doors, corridors, elevators or other
facilities in the Building without liability to Tenant by reason of such
closure. Landlord shall conduct its activities under this Section in a manner
that will minimize inconvenience to Tenant without incurring additional expense
to Landlord. In no event shall Tenant be entitled to an abatement of rent on
account of any entry by Landlord, and Landlord shall not be liable in any manner
for any inconvenience, loss of business or other damage to Tenant or other
persons arising out of Landlord's entry on the Premises in accordance with this
Section. No action by Landlord pursuant to this paragraph shall constitute an
eviction of Tenant, constructive or otherwise, entitle Tenant to an abatement of
rent or to terminate this Lease or otherwise release Tenant from any of Tenant's
obligations under this Lease.

19. SURRENDER AND HOLDING OVER.

   19.1 SURRENDER. Upon the expiration or termination of this Lease, Tenant
shall surrender the Premises and all Tenant Improvements and Alterations to
Landlord broom-clean and in their original condition, except for reasonable wear
and tear, damage from casualty or condemnation and any changes resulting from
approved Alterations; provided, however, that prior to the expiration or
termination of this Lease Tenant shall remove all telephone and other cabling
installed in the Building by Tenant and remove from the Premises all Tenant's
personal property and any Trade Fixtures and all Alterations that Landlord has
elected to require Tenant to remove as provided in Section 6.1 - TENANT
IMPROVEMENTS & ALTERATIONS, and repair any damage caused by such removal. If
such removal is not completed before the expiration or termination of the Term,
Landlord shall have the right (but no obligation) to remove the same, and Tenant
shall pay Landlord on demand for all costs of removal and storage thereof and
for the rental value of the Premises for the period from the end of the Term
through the end of the time reasonably required for such removal. Landlord shall
also have the right to retain or dispose of all or any portion of such property
if Tenant does not pay all such costs and retrieve the property within ten (10)
days after notice from Landlord (in which event title to all such property
described in Landlord's notice shall be transferred to and vest in Landlord).
Tenant waives all Claims against Landlord for any damage or loss to Tenant
resulting from Landlord's removal, storage, retention, or disposition of any
such property. Upon expiration or termination of this Lease or of Tenant's
possession, whichever is earliest, Tenant shall surrender all keys to the
Premises or any other part of the Building and shall deliver to Landlord all
keys for or make known to Landlord the combination of locks on all safes,
cabinets and vaults that may be located in the Premises. Tenant's obligations
under this Section shall survive the expiration or termination of this Lease.

   19.2 HOLDING OVER. If Tenant (directly or through any Transferee or other
successor-in-interest of Tenant) remains in possession of the Premises after the
expiration or termination of this Lease, Tenant's continued possession shall be
on the basis of a tenancy at the sufferance of Landlord. No act or omission by
Landlord, other than its specific written consent, shall constitute permission
for Tenant to continue in possession of the Premises, and if such consent is
given or declared to have been given by a court judgment, Landlord may terminate
Tenant's holdover

                                       17

<PAGE>

tenancy at any time upon seven (7) days written notice. In such event, Tenant
shall continue to comply with or perform all the terms and obligations of Tenant
under this Lease, except that the monthly Base Rent during Tenant's holding over
shall be twice the Base Rent payable in the last full month prior to the
termination hereof. Acceptance by Landlord of rent after such termination shall
not constitute a renewal or extension of this Lease; and nothing contained in
this provision shall be deemed to waive Landlord's right of re-entry or any
other right hereunder or at law. Tenant shall indemnify, defend and hold
Landlord harmless from and against all Claims arising or resulting directly or
indirectly from Tenant's failure to timely surrender the Premises, including (i)
any rent payable by or any loss, cost, or damages claimed by any prospective
tenant of the Premises, and (ii) Landlord's damages as a result of such
prospective tenant rescinding or refusing to enter into the prospective lease of
the Premises by reason of such failure to timely surrender the Premises.

20. ENCUMBRANCES.

   20.1 SUBORDINATION. This Lease is expressly made subject and subordinate to
any mortgage, deed of trust, ground lease, underlying lease or like encumbrance
affecting any part of the Property or any interest of Landlord therein which is
now existing or hereafter executed or recorded ("ENCUMBRANCE"); provided,
however, that such subordination shall only be effective, as to future
Encumbrances, if the holder of the Encumbrance agrees that this Lease shall
survive the termination of the Encumbrance by lapse of time, foreclosure or
otherwise so long as Tenant is not in default under this Lease. Provided the
conditions of the preceding sentence are satisfied, Tenant shall execute and
deliver to Landlord, within ten (10) days after written request therefor by
Landlord and in a form reasonably requested by Landlord, any additional
documents evidencing the subordination of this Lease with respect to any such
Encumbrance and the nondisturbance agreement of the holder of any such
Encumbrance. If the interest of Landlord in the Property is transferred pursuant
to or in lieu of proceedings for enforcement of any Encumbrance, Tenant shall
immediately and automatically attorn to the new owner, and this Lease shall
continue in full force and effect as a direct lease between the transferee and
Tenant on the terms and conditions set forth in this Lease.

   20.2 MORTGAGEE PROTECTION. Tenant agrees to give any holder of any
Encumbrance covering any part of the Property ("MORTGAGEE"), by registered mail,
a copy of any notice of default served upon Landlord, provided that prior to
such notice Tenant has been notified in writing (by way of notice of assignment
of rents and leases, or otherwise) of the address of such Mortgagee. If Landlord
shall have failed to cure such default within thirty (30) days from the
effective date of such notice of default, then the Mortgagee shall have an
additional thirty (30) days within which to cure such default or if such default
cannot be cured within that time, then such additional time as may be necessary
to cure such default (including the time necessary to foreclose or otherwise
terminate its Encumbrance, if necessary to effect such cure), and this Lease
shall not be terminated so long as such remedies are being diligently pursued.

21. ESTOPPEL CERTIFICATES AND FINANCIAL STATEMENTS.

   21.1 ESTOPPEL CERTIFICATES. Within ten (10) days after written request
therefor, Tenant shall execute and deliver to Landlord, in a form provided by or
satisfactory to Landlord, a

                                       18

<PAGE>

certificate stating that this Lease is in full force and effect, describing any
amendments or modifications hereto, acknowledging that this Lease is subordinate
or prior, as the case may be, to any Encumbrance and stating any other
information Landlord may reasonably request, including the Term, the monthly
Base Rent, the date to which Rent has been paid, the amount of any security
deposit or prepaid rent, whether either party hereto is in default under the
terms of the Lease, and whether Landlord has completed its construction
obligations hereunder (if any). Tenant irrevocably constitutes, appoints and
authorizes Landlord as Tenant's special attorney-in-fact for such purpose to
complete, execute and deliver such certificate if Tenant fails timely to execute
and deliver such certificate as provided above. Any person or entity purchasing,
acquiring an interest in or extending financing with respect to the Property
shall be entitled to rely upon any such certificate. If Tenant fails to deliver
such certificate within ten (10) days after Landlord's second written request
therefor, Tenant shall be liable to Landlord for any damages incurred by
Landlord including any profits or other benefits from any financing of the
Property or any interest therein which are lost or made unavailable as a result,
directly or indirectly, of Tenant's failure or refusal to timely execute or
deliver such estoppel certificate.

   21.2 FINANCIAL STATEMENTS. Within ten (10) days after written request
therefor, but not more than once a year, Tenant shall deliver to Landlord a copy
of the financial statements (including at least a year end balance sheet and a
statement of profit and loss) of Tenant (and of each guarantor of Tenant's
obligations under this Lease) for each of the three most recently completed
years, prepared in accordance with generally accepted accounting principles
(and, if such is Tenant's normal practice, audited by an independent certified
public accountant), all then available subsequent interim statements, and such
other financial information as may reasonably be requested by Landlord or
required by any Mortgagee.

22. NOTICES. Any notice, demand, request, consent or approval that either party
desires or is required to give to the other party under this Lease shall be in
writing and shall be served personally, delivered by messenger or courier
service, or sent by U.S. certified mail, return receipt requested, postage
prepaid, addressed to the other party at the party's address for notices set
forth in the Basic Lease Information. Any notice required pursuant to any Laws
may be incorporated into, given concurrently with or given separately from any
notice required under this Lease. Notices shall be deemed to have been given and
be effective on the earlier of (a) receipt (or refusal of delivery or receipt);
or (b) one (1) day after acceptance by the independent service for delivery, if
sent by independent messenger or courier service, or three (3) days after
mailing if sent by mail in accordance with this Section. Either party may change
its address for notices hereunder, effective fifteen (15) days after notice to
the other party complying with this Section. If Tenant sublets the Premises,
notices from Landlord shall be effective on the subtenant when given to Tenant
pursuant to this Section.

23. ATTORNEYS' FEES. In the event of any dispute between Landlord and Tenant in
any way related to this Lease, and whether involving contract and/or tort
claims, the non-prevailing party shall pay to the prevailing party all
reasonable attorneys' fees and costs and expenses of any type, without
restriction by statute, court rule or otherwise, incurred by the prevailing
party in connection with any action or proceeding (including any appeal and the
enforcement of any judgment or award), whether or not the dispute is litigated
or prosecuted to final judgment (collectively, "FEES"). The "prevailing party"
shall be determined based upon an assessment of

                                       19
<PAGE>

which party's major arguments or positions taken in the action or proceeding
could fairly be said to have prevailed (whether by compromise, settlement,
abandonment by the other party of its claim or defense, final decision, after
any appeals, or otherwise) over the other party's major arguments or positions
on major disputed issues. Any Fees incurred in enforcing a judgment shall be
recoverable separately from any other amount included in the judgment and shall
survive and not be merged in the judgment. The Fees shall be deemed an "actual
pecuniary loss" within the meaning of Bankruptcy Code Section 365(b)(1)(B), and
notwithstanding the foregoing, all Fees incurred by either party in any
bankruptcy case filed by or against the other party, from and after the order
for relief until this Lease is rejected or assumed in such bankruptcy case, will
be "obligations of the debtor" as that phrase is used in Bankruptcy Code Section
365(d)(3).

24. QUIET POSSESSION. Subject to Tenant's full and timely performance of all of
Tenant's obligations under this Lease and subject to the terms of this Lease,
including Section 20 - ENCUMBRANCES, Tenant shall have the quiet possession of
the Premises throughout the Term as against any persons or entities lawfully
claiming by, through or under Landlord.

25. SECURITY MEASURES. Landlord may, but shall be under no obligation to,
implement security measures for the Property, such as the registration or search
of all persons entering or leaving the Building, requiring identification for
access to the Building, evacuation of the Building for cause, suspected cause,
or for drill purposes, the issuance of magnetic pass cards or keys for Building
access and other actions that Landlord deems necessary or appropriate to prevent
any threat of property loss or damage, bodily injury or business interruption;
provided, however, that such measures shall be implemented in a way as not to
inconvenience tenants of the Building unreasonably. Landlord shall at all times
have the right to change, alter or reduce any such security services or
measures. Tenant shall cooperate and comply with, and cause Tenant's
Representatives and Visitors to cooperate and comply with, such security
measures. Landlord, its agents and employees shall have no liability to Tenant
or its Representatives or Visitors for the implementation or exercise of, or the
failure to implement or exercise, any such security measures or for any
resulting disturbance of Tenant's use or enjoyment of the Premises.

26. FORCE MAJEURE. If Landlord is delayed, interrupted or prevented from
performing any of its obligations under this Lease, including its obligations
under the Construction Rider (if any), and such delay, interruption or
prevention is due to fire, act of God, governmental act or failure to act, labor
dispute, unavailability of materials or any cause outside the reasonable control
of Landlord, then the time for performance of the affected obligations of
Landlord shall be extended for a period equivalent to the period of such delay,
interruption or prevention.

27. RULES AND REGULATIONS. Tenant shall be bound by and shall comply with the
rules and regulations attached to and made a part of this Lease as EXHIBIT C to
the extent those rules and regulations are not in conflict with the terms of
this Lease, as well as any reasonable rules and regulations hereafter adopted by
Landlord for all tenants of the Building, upon notice to Tenant thereof
(collectively, the "BUILDING RULES"). Landlord shall not be responsible to
Tenant or to any other person for any violation of, or failure to observe, the
Building Rules by any other tenant or other person.

                                       20

<PAGE>

28. LANDLORD'S LIABILITY. The term "Landlord," as used in this Lease, shall mean
only the owner or owners of the Building at the time in question. In the event
of any conveyance of title to the Building, then from and after the date of such
conveyance, the transferor Landlord shall be relieved of all liability with
respect to Landlord's obligations to be performed under this Lease after the
date of such conveyance. Notwithstanding any other term or provision of this
Lease, the liability of Landlord for its obligations under this Lease is limited
solely to Landlord's interest in the Building as the same may from time to time
be encumbered, and no personal liability shall at any time be asserted or
enforceable against any other assets of Landlord or against Landlord's partners
or members or its or their respective partners, shareholders, members,
directors, officers or managers on account of any of Landlord's obligations or
actions under this Lease.

29. CONSENTS AND APPROVALS.

   29.1 DETERMINATION IN GOOD FAITH. Wherever the consent, approval, judgment or
determination of Landlord is required or permitted under this Lease, Landlord
may exercise its good faith business judgment in granting or withholding such
consent or approval or in making such judgment or determination without
reference to any extrinsic standard of reasonableness, unless the specific
provision contained in this Lease providing for such consent, approval, judgment
or determination specifies that Landlord's consent or approval is not to be
unreasonably withheld, or that such judgment or determination is to be
reasonable, or otherwise specifies the standards under which Landlord may
withhold its consent. If it is determined that Landlord failed to give its
consent where it was required to do so under this Lease, Tenant shall be
entitled to injunctive relief but shall not to be entitled to monetary damages
or to terminate this Lease for such failure.

   29.2 NO LIABILITY IMPOSED ON LANDLORD. The review and/or approval by Landlord
of any item or matter to be reviewed or approved by Landlord under the terms of
this Lease or any Exhibits or Addenda hereto shall not impose upon Landlord any
liability for the accuracy or sufficiency of any such item or matter or the
quality or suitability of such item for its intended use. Any such review or
approval is for the sole purpose of protecting Landlord's interest in the
Property, and no third parties, including Tenant or the Representatives and
Visitors of Tenant or any person or entity claiming by, through or under Tenant,
shall have any rights as a consequence thereof.

30. WAIVER OF RIGHT TO JURY TRIAL. Landlord and Tenant waive their respective
rights to trial by jury of any contract or tort claim, counterclaim,
cross-complaint, or cause of action in any action, proceeding, or hearing
brought by either party against the other on any matter arising out of or in any
way connected with this Lease, the relationship of Landlord and Tenant, or
Tenant's use or occupancy of the Premises, including any claim of injury or
damage or the enforcement of any remedy under any current or future law,
statute, regulation, code, or ordinance.

31. BROKERS. Tenant warrants and represents to Landlord that in the negotiating
or making of this Lease neither Tenant nor anyone acting on Tenant's behalf has
dealt with any broker or finder ("BROKER") who might be entitled to a fee or
commission for this Lease. Tenant shall indemnify and hold Landlord harmless
from any claim or claims, including costs, expenses and attorney's fees incurred
by Landlord asserted by any other broker or finder for a fee or commission based
upon any dealings with or statements made by Tenant or Tenant's Representatives.

                                       21

<PAGE>

32. RELOCATION OF PREMISES. For the purpose of maintaining an economical and
proper distribution of tenants acceptable to Landlord throughout the Project,
Landlord shall have the right from time to time during the Term to relocate the
Premises within the Project, provided that (a) the rentable and usable area of
the new Premises is of equivalent size to the existing Premises, subject to a
variation of up to ten percent (10%), (b) Landlord shall pay the cost of
providing tenant improvements in the new Premises, which shall be substantially
comparable in layout to those in the existing Premises, and (c) Landlord shall
pay reasonable costs (to the extent such costs are submitted in writing to
Landlord and approved in writing by Landlord prior to such move) of moving
Tenant's Trade Fixtures and personal property to the new Premises. Landlord
shall deliver to Tenant written notice of Landlord's election to relocate the
Premises, specifying the new location and the amount of rent payable therefor,
at least sixty (60) days prior to the date the relocation is to be effective.

33. ENTIRE AGREEMENT. This Lease, including the Exhibits and any Addenda
attached hereto, and the documents referred to herein, if any, constitute the
entire agreement between Landlord and Tenant with respect to the leasing of
space by Tenant in the Building, and supersede all prior or contemporaneous
agreements, understandings, proposals and other representations by or between
Landlord and Tenant, whether written or oral, all of which are merged herein.
Neither Landlord nor Landlord's agents have made any representations or
warranties with respect to the Premises, the Building, the Project or this Lease
except as expressly set forth herein, and no rights, easements or licenses shall
be acquired by Tenant by implication or otherwise unless expressly set forth
herein. The submission of this Lease for examination does not constitute an
option for the Premises and this Lease shall become effective as a binding
agreement only upon execution and delivery thereof by Landlord to Tenant.

34. MISCELLANEOUS. This Lease may not be amended or modified except by a writing
signed by Landlord and Tenant. Subject to Section 14 - ASSIGNMENT AND SUBLETTING
and Section 28 - LANDLORD'S LIABILITY, this Lease shall be binding on and shall
inure to the benefit of the parties and their respective successors, assigns and
legal representatives. The determination that any provisions hereof may be void,
invalid, illegal or unenforceable shall not impair any other provisions hereof
and all such other provisions of this Lease shall remain in full force and
effect. The unenforceability, invalidity or illegality of any provision of this
Lease under particular circumstances shall not render unenforceable, invalid or
illegal other provisions of this Lease, or the same provisions under other
circumstances. This Lease shall be construed and interpreted in accordance with
the laws (excluding conflict of laws principles) of the State in which the
Building is located. The provisions of this Lease shall be construed in
accordance with the fair meaning of the language used and shall not be strictly
construed against either party, even if such party drafted the provision in
question. When required by the context of this Lease, the singular includes the
plural. Wherever the term "including" is used in this Lease, it shall be
interpreted as meaning "including, but not limited to" the matter or matters
thereafter enumerated. The captions contained in this Lease are for purposes of
convenience only and are not to be used to interpret or construe this Lease. If
more than one person or entity is identified as Tenant hereunder, the
obligations of each and all of them under this Lease shall be joint and several.
Time is of the essence with respect to this Lease, except as to the conditions
relating to the delivery of possession of the Premises to Tenant. Neither
Landlord nor Tenant shall record this Lease.

                                       22

<PAGE>

35. AUTHORITY. If Tenant is a corporation, partnership, limited liability
company or other form of business entity, each of the persons executing this
Lease on behalf of Tenant warrants and represents that Tenant is a duly
organized and validly existing entity, that Tenant has full right and authority
to enter into this Lease and that the persons signing on behalf of Tenant are
authorized to do so and have the power to bind Tenant to this Lease. Tenant
shall provide Landlord upon request with evidence reasonably satisfactory to
Landlord confirming the foregoing representations.

         IN WITNESS WHEREOF, Landlord and Tenant have entered into this Lease as
of the date first above written.

<TABLE>
<CAPTION>

TENANT:                                       LANDLORD:

<S>                                           <C>

  DEAN & DELUCA BRANDS, INC.                  R & R LAND, LLC,
                                              a California limited liability company
By: /s/ Dane J. Neller
   -------------------------
   Name:  Dane Neller
   Title: CEO                                 By: /s/ Patrick Roney
                                                 ----------------------------
                                                 Name:  Patrick Roney
                                                 Title: Manager

</TABLE>

<PAGE>

                                    EXHIBIT A

                        ATTACHED TO AND FORMING A PART OF
                                 LEASE AGREEMENT
DATED AS OF
                                  JULY 1, 1999
                                     BETWEEN
                          R & R LAND, LLC, AS LANDLORD,
                                       AND
           DEAN & DELUCA BRANDS, INC.BRANDS Inc., AS TENANT ("LEASE")

                                  THE PREMISES

                                                          INITIALS:

                                                          Landlord ______
                                                          Tenant ______

                                Exhibit A, Page 1

<PAGE>

                                    EXHIBIT B

                        ATTACHED TO AND FORMING A PART OF
                                 LEASE AGREEMENT

DATED AS OF
                                  JULY 1, 1999
                                     BETWEEN
                          R & R LAND, LLC, AS LANDLORD,
                                       AND
           DEAN & DELUCA BRANDS, INC.BRANDS Inc., AS TENANT ("LEASE")

                                 BUILDING RULES

         The following Building Rules are additional provisions of the foregoing
Lease to which they are attached. The capitalized terms used herein have the
same meanings as these terms are given in the Lease.

         1. USE OF COMMON AREAS. Tenant will not obstruct the sidewalks, halls,
passages, exits, entrances, elevators or stairways of the Building ("COMMON
AREAS"), and Tenant will not use the Common Areas for any purpose other than
ingress and egress to and from the Premises. The Common Areas, except for the
sidewalks, are not open to the general public and Landlord reserves the right to
control and prevent access to the Common Areas of any person whose presence, in
Landlord's opinion, would be prejudicial to the safety, reputation and interests
of the Building and its tenants.

         2. NO ACCESS TO ROOF. Tenant has no right of access to the roof of the
Building and will not install, repair or replace any antenna, aerial, aerial
wires, fan, air-conditioner or other device on the roof of the Building, without
the prior written consent of Landlord. Any such device installed without such
written consent is subject to removal at Tenant's expense without notice at any
time. In any event Tenant will be liable for any damages or repairs incurred or
required as a result of its installation, use, repair, maintenance or removal of
such devices on the roof and agrees to indemnify and hold harmless Landlord from
any liability, loss, damage, cost or expense, including reasonable attorneys'
fees, arising from any activities of Tenant or of Tenant's Representatives on
the roof of the Building.

         3. SIGNAGE. No sign, placard, picture, name, advertisement or notice
visible from the exterior of the Premises will be inscribed, painted, affixed or
otherwise displayed by Tenant on or in any part of the Building without the
prior written consent of Landlord. Landlord reserves the right to adopt and
furnish Tenant with general guidelines relating to signs in or on the Building.
All approved signage will be inscribed, painted or affixed at Tenant's expense
by a person approved by Landlord, which approval will not be unreasonably
withheld.

         4. PROHIBITED USES. The Premises will not be used for manufacturing,
for the storage of merchandise held for sale to the general public, for lodging
or for the sale of goods to the

                                Exhibit B, Page 1

<PAGE>

general public. Tenant will not permit any food preparation on the Premises
except that Tenant may use Underwriters' Laboratory approved equipment for
brewing coffee, tea, hot chocolate and similar beverages so long as such use is
in accordance with all applicable federal, state and city laws, codes,
ordinances, rules and regulations.

         5. JANITORIAL SERVICES. Tenant will not employ any person for the
purpose of cleaning the Premises or permit any person to enter the Building for
such purpose other than Landlord's janitorial service, except with Landlord's
prior written consent. Tenant will not necessitate, and will be liable for the
cost of, any undue amount of janitorial labor by reason of Tenant's carelessness
in or indifference to the preservation of good order and cleanliness in the
Premises. Janitorial service will not be furnished to areas in the Premises on
nights when such areas are occupied after 9:30 p.m., unless such service is
extended by written agreement to a later hour in specifically designated areas
of the Premises.

         6. KEYS AND LOCKS. Landlord will furnish Tenant, free of charge, two
keys to each door or lock in the Premises. Landlord may make a reasonable charge
for any additional or replacement keys. Tenant will not duplicate any keys,
alter any locks or install any new or additional lock or bolt on any door of its
Premises or on any other part of the Building without the prior written consent
of Landlord and, in any event, Tenant will provide Landlord with a key for any
such lock. On the termination of the Lease, Tenant will deliver to Landlord all
keys to any locks or doors in the Building which have been obtained by Tenant.

         7. FREIGHT. Upon not less than twenty-four hours prior notice to
Landlord, which notice may be oral, an elevator will be made available for
Tenant's use for transportation of freight, subject to such scheduling as
Landlord in its discretion deems appropriate. Tenant shall not transport freight
in loads exceeding the weight limitations of such elevator. Landlord reserves
the right to prescribe the weight, size and position of all equipment,
materials, furniture or other property brought into the Building, and no
property will be received in the Building or carried up or down the freight
elevator or stairs except during such hours and along such routes and by such
persons as may be designated by Landlord. Landlord reserves the right to require
that heavy objects will stand on wood strips of such length and thickness as is
necessary to properly distribute the weight. Landlord will not be responsible
for loss of or damage to any such property from any cause, and Tenant will be
liable for all damage or injuries caused by moving or maintaining such property.

         8. NUISANCES AND DANGEROUS SUBSTANCES. Tenant will not conduct itself
or permit Tenant's Representatives or Visitors to conduct themselves, in the
Premises or anywhere on or in the Property in a manner which is offensive or
unduly annoying to any other Tenant or Landlord's property managers. Tenant will
not install or operate any phonograph, radio receiver, musical instrument, or
television or other similar device in any part of the Common Areas and shall not
operate any such device installed in the Premises in such manner as to disturb
or annoy other tenants of the Building. Tenant will not use or keep in the
Premises or the Property any kerosene, gasoline or other combustible fluid or
material other than limited quantities thereof reasonably necessary for the
maintenance of office equipment, or, without Landlord's prior written approval,
use any method of heating or air conditioning other than that supplied by
Landlord. Tenant will not use or keep any foul or noxious gas or substance in
the Premises or

                                Exhibit B, Page 2

<PAGE>

permit or suffer the Premises to be occupied or used in a manner offensive or
objectionable to Landlord or other occupants of the Building by reason of noise,
odors or vibrations, or interfere in any way with other tenants or those having
business therein. Tenant will not bring or keep any animals in or about the
Premises or the Property.

         9. BUILDING NAME AND ADDRESS. Without Landlord's prior written consent,
Tenant will not use the name of the Building in connection with or in promoting
or advertising Tenant's business except as Tenant's address.

         10. WINDOW COVERINGS. No curtains, draperies, blinds, shutters, shades,
awnings, screens or other coverings, window ventilators, hangings, decorations
or similar equipment shall be attached to, hung or placed in, or used in or with
any window of the Building without the prior written consent of Landlord, and
Landlord shall have the right to control all lighting within the Premises that
may be visible from the exterior of the Building.

         11. FLOOR COVERINGS. Tenant will not lay or otherwise affix linoleum,
tile, carpet or any other floor covering to the floor of the Premises in any
manner except as approved in writing by Landlord. Tenant will be liable for the
cost of repair of any damage resulting from the violation of this rule or the
removal of any floor covering by Tenant or its contractors, employees or
invitees.

         12. WIRING AND CABLING INSTALLATIONS. Landlord will direct Tenant's
electricians and other vendors as to where and how data, telephone, and
electrical wires and cables are to be installed. No boring or cutting for wires
or cables will be allowed without the prior written consent of Landlord. The
location of burglar alarms, smoke detectors, telephones, call boxes and other
office equipment affixed to the Premises shall be subject to the written
approval of Landlord.

         13. OFFICE CLOSING PROCEDURES. Tenant will see that the doors of the
Premises are closed and locked and that all water faucets, water apparatus and
utilities are shut off before Tenant or its employees leave the Premises, so as
to prevent waste or damage. Tenant will be liable for all damage or injuries
sustained by other tenants or occupants of the Building or Landlord resulting
from Tenant's carelessness in this regard or violation of this rule. Tenant will
keep the doors to the Building corridors closed at all times except for ingress
and egress.

         14. PLUMBING FACILITIES. The toilet rooms, toilets, urinals, wash bowls
and other apparatus shall not be used for any purpose other than that for which
they were constructed and no foreign substance of any kind whatsoever shall be
disposed of therein. Tenant will be liable for any breakage, stoppage or damage
resulting from the violation of this rule by Tenant, its employees or invitees.

         15. USE OF HAND TRUCKS. Tenant will not use or permit to be used in the
Premises or in the Common Areas any hand trucks, carts or dollies except those
equipped with rubber tires and side guards or such other equipment as Landlord
may approve.

                                Exhibit B, Page 3

<PAGE>

         16. REFUSE. Tenant shall store all Tenant's trash and garbage within
the Premises or in other facilities designated By Landlord for such purpose.
Tenant shall not place in any trash box or receptacle any material which cannot
be disposed of in the ordinary and customary manner of removing and disposing of
trash and garbage in the city in which the Building is located without being in
violation of any law or ordinance governing such disposal. All trash and garbage
removal shall be made in accordance with directions issued from time to time by
Landlord, only through such Common Areas provided for such purposes and at such
times as Landlord may designate. Tenant shall comply with the requirements of
any recycling program adopted by Landlord for the Building.

         17. SOLICITING. Canvassing, peddling, soliciting and distribution of
handbills or any other written materials in the Building are prohibited, and
Tenant will cooperate to prevent the same.

         18. PARKING. Tenant will use, and cause Tenant's Representatives and
Visitors to use, any parking spaces to which Tenant is entitled under the Lease
in a manner consistent with Landlord's directional signs and markings in the
Parking Facility. Specifically, but without limitation, Tenant will not park, or
permit Tenant's Representatives or Visitors to park, in a manner that impedes
access to and from the Building or the Parking Facility or that violates space
reservations for handicapped drivers registered as such with the California
Department of Motor Vehicles. Landlord may use such reasonable means as may be
necessary to enforce the directional signs and markings in the Parking Facility,
including but not limited to towing services, and Landlord will not be liable
for any damage to vehicles towed as a result of non-compliance with such parking
regulations.

         19. FIRE, SECURITY AND SAFETY REGULATIONS. Tenant will comply with all
safety, security, fire protection and evacuation measures and procedures
established by Landlord or any governmental agency.

         20. RESPONSIBILITY FOR THEFT. Tenant assumes any and all responsibility
for protecting the Premises from theft, robbery and pilferage, which includes
keeping doors locked and other means of entry to the Premises closed.

         21. SALES AND AUCTIONS. Tenant will not conduct or permit to be
conducted any sale by auction in, upon or from the Premises or elsewhere in the
Property, whether said auction be voluntary, involuntary, pursuant to any
assignment for the payment of creditors or pursuant to any bankruptcy or other
insolvency proceeding.

         22. WAIVER OF RULES. Landlord may waive any one or more of these
Building Rules for the benefit of any particular tenant or tenants, but no such
waiver by Landlord will be construed as a waiver of such Building Rules in favor
of any other tenant or tenants nor prevent Landlord from thereafter enforcing
these Building Rules against any or all of the tenants of the Building.

         23. EFFECT ON LEASE. These Building Rules are in addition to, and shall
not be construed to in any way modify or amend, in whole or in part, the terms,
covenants, agreements

                                Exhibit B, Page 4

<PAGE>

and conditions of the Lease. Violation of these Building Rules constitutes a
failure to fully perform the provisions of the Lease, as referred to in Section
15.1 - "EVENTS OF DEFAULT".

         24. NON-DISCRIMINATORY ENFORCEMENT. Subject to the provisions of the
Lease (and the provisions of other leases with respect to other tenants),
Landlord shall use reasonable efforts to enforce these Building Rules in a
non-discriminatory manner, but in no event shall Landlord have any liability for
any failure or refusal to do so (and Tenant's sole and exclusive remedy for any
such failure or refusal shall be injunctive relief preventing Landlord from
enforcing any of the Building Rules against Tenant in a manner that
discriminates against Tenant).

         25. ADDITIONAL AND AMENDED RULES. Landlord reserves the right to
rescind or amend these Building Rules and/or adopt any other and reasonable
rules and regulations as in its judgment may from time to time be needed for the
safety, care and cleanliness of the Building and for the preservation of good
order therein.

                                                             INITIALS:

                                                             Landlord ______
                                                             Tenant ______

                                Exhibit B, Page 5

<PAGE>

                                    EXHIBIT C

                        ATTACHED TO AND FORMING A PART OF
                                 LEASE AGREEMENT

DATED AS OF
                                  JULY 1, 1999
                                     BETWEEN
                          R & R LAND, LLC, AS LANDLORD,
                                       AND
           DEAN & DELUCA BRANDS, INC.BRANDS Inc., AS TENANT ("LEASE")

                           ADDITIONAL PROVISIONS RIDER

35. EXTENSION OPTION.

    Provided that Dean & Deluca Brands, Inc has not assigned this Lease or
sublet any or all of the Premises (it being intended that all rights pursuant to
this provision are and shall be personal to the original Tenant under this Lease
and shall not be transferable or exercisable for the benefit of any Transferee),
and provided Tenant is not in default under this Lease at the time of exercise
or at any time thereafter until the beginning of any such extension of the Term,
Tenant shall have the option (the "EXTENSION OPTION") to extend the Term for
three (3) additional consecutive period[s] of three (3) years (each an
"EXTENSION PERIOD"), by giving written notice to Landlord of the exercise of any
such Extension Option at least six (6) months, but not more than twelve (12)
months, prior to the expiration of the initial Term or the prior Extension
Period, as the case may be. The exercise of any Extension Option by Tenant shall
be irrevocable and shall cover the entire Premises leased by Tenant pursuant to
this Lease. Upon such exercise, the term of the Lease shall automatically be
extended for the applicable Extension Period without the execution of any
further instrument by the parties; provided that Landlord and Tenant shall, if
requested by either party, execute and acknowledge an instrument confirming the
exercise of the Extension Option. Any Extension Option shall terminate if not
exercised precisely in the manner provided herein. Any extension of the Term
shall be upon all the terms and conditions set forth in this Lease and all
Exhibits thereto, except that: (i) Tenant shall have no further option to extend
the Term of the Lease, other than as specifically set forth herein; (ii)
Landlord shall not be obligated to contribute funds toward the cost of any
remodeling, renovation, alteration or improvement work in the Premises; and
(iii) Base Rent for any such Extension Period shall be an additional five
hundred dollars ($500.00) per month per Extension Period.

                EXTENSION PERIOD                     BASE RENT
                First Extension                      $3,500 per month

                                Exhibit C, Page 6

<PAGE>

                Second Extension                     $4,000 per month
                Third Extension                      $4,500 per month

         The term of this Lease, whether consisting of the initial Term alone or
the Initial Term as extended by any Extension Period (if any Extension Option is
exercised), is referred to in this Lease as the "Term."

                                                           INITIALS:

                                                           Landlord ______
                                                           Tenant ______

                                Exhibit C, Page 7

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