Document:

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                               AGREEMENT OF LEASE

                   (1112 19th Street, N.W., Washington, D.C.)

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                                SMITH & WOLLENSKY

                                  July 8, 1998

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                                TABLE OF CONTENTS

TITLE                                                                       PAGE
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1.   Definitions ..........................................................    1
      A.    Definitions of Business Terms .................................    1
      B.    Additional Definitions ........................................    2
2.   Premises .............................................................    4
3.   Term; Commencement Date; Permits, etc. ...............................    4
      3.1   Commencement Date .............................................    4
      3.2   Renewal Option ................................................    5
      3.3   Declaration ...................................................    5
4.   Rent; Monthly Base Rent; Allowance and Abatement .....................    5
      4.1   Monthly Base Rent .............................................    5
      4.2   Rent Credit ...................................................    5
5.   Acceptance of the Premises ...........................................    6
6.   Percentage Rent ......................................................    6
      6.1   Calculation ...................................................    6
      6.2   Periodic Payment and Reporting ................................    6
      6.3   Records Maintenance ...........................................    7
      6.4   Audit Rights ..................................................    7
      6.5.  Radius Restriction ............................................    8
7.   Real Estate Taxes ....................................................    8
8.   Sale, Use or Other Taxes .............................................    9
9.   Personal Property Taxes ..............................................    9
10.  Late Charge; Interest ................................................    9
11.  Use of Premises; Continuous Operation ................................   10
      11.1  Use ...........................................................   10
      11.2  Continuous Operation ..........................................   10
12.  Additional Matters ...................................................   11
13.  Repairs by Tenant ....................................................   12
14.  Repairs  .............................................................   12
15.  Laws and Ordinances ..................................................   13
16.  No Landlord's Work; Tenant's Work; Alterations .......................   13
      16.1  Landlord's Work and Tenant's Work .............................   13
      16.2  Alterations by Tenant .........................................   13
17.  Ownership of Alterations and Equipment and Other Property;
     Removal of Tenant's Personal Property ................................   14

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      17.1  Landlord's Property ...........................................   14
      17.2  Removal .......................................................   14
18.  Damage or Destruction ................................................   15
      18.1  General Provisions ............................................   15
      18.2  Restoration by Tenant .........................................   15
      18.3  Termination Rights ............................................   16
19.  Condemnation .........................................................   16
20.  Defaults; Landlord's Remedies ........................................   16
      20.1  Events of Default .............................................   16
      20.2  Landlord's Remedies ...........................................   17
      20.3  Extent of Liabilities .........................................   18
      20.4  Tenant's Waiver ...............................................   19
      20.5  Landlord's Lien ...............................................   19
      20.6  Remedies Cumulative ...........................................   20
      20.7  Landlord's Default ............................................   20
21.  Utilities ............................................................   20
22.  Tenant's Insurance ...................................................   21
      22.1  Liability Insurance ...........................................   21
      22.2  Tenant's Casualty and Property Insurance ......................   21
      22.3  Policy Requirements ...........................................   21
      22.4  Additional Insurance ..........................................   22
      22.5  Effect of Tenant's Activities on Insurance ....................   22
23.  Tenant's Insurance ...................................................   22
24.  Waiver of Subrogation ................................................   22
25.  Assignment and Subletting ............................................   23
      25.1  General Provisions ............................................   23
26.  Signs ................................................................   26
27.  Rules and Regulations ................................................   26
28.  Landlord Access ......................................................   26
29.  Subordination ........................................................   26
30.  Estoppel Certificates; Financial Statements ..........................   27
      30.1  Estoppel Certificate ..........................................   27
      30.2  Financial Statements ..........................................   27
31.  Hold Over ............................................................   28
32.  Quiet Enjoyment ......................................................   28
33.  Prohibited Materials and Property ....................................   28
34.  Landlord's Successors ................................................   29
35.  Attorneys' Fees ......................................................   29

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36.  Notices ..............................................................   29
37.  Remedies Cumulative; No Waiver .......................................   30
38.  Final Agreement; Severability ........................................   31
39.  Time is of the Essence ...............................................   31
40.  Indemnity ............................................................   31
41.  Exculpation ..........................................................   31
42.  No Liability .........................................................   32
43.  No Partnership .......................................................   32
44.  Brokerage ............................................................   32
45.  Tenant's Authority ...................................................   32
47.  Landlord's Courtesy Account ..........................................   33
48.  Governing Law; Construction ..........................................   33
49.  Benefit and Burden; No Recording .....................................   33
50.  No Further Representations or Warranties .............................   33
50.  Waiver of Jury Trial; Tenant's Agent; Consent to Jurisdiction ........   34
      50.1  Waiver of Jury Trial ..........................................   34
      50.2  Consent to Jurisdiction .......................................   34

                                LIST OF EXHIBITS

            A.    Legal Description of Land

            B.    Declaration Confirming Commencement Date

            C.    Rules and Regulations

            D.    Work Agreement

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                               AGREEMENT OF LEASE

      THIS AGREEMENT OF LEASE (this "Lease") is made as of the 8th day of July,
1998, by and between (i) 1112 Nineteenth Street Associates, a District of
Columbia joint venture, and (ii) S & W D.C., L.L.C., a Delaware limited
liability company ("Tenant").

                                    AGREEMENT
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            1. DEFINITIONS. Except as otherwise expressly provided or unless the
context otherwise requires, the following terms shall have the meanings assigned
to them in this Paragraph:

                  A. DEFINITIONS OF BUSINESS TERMS

                        1. BASE RENT: Three Hundred Thirty-Three Thousand
Dollars ($333,000.00) PER ANNUM, payable in equal monthly installments of
Twenty-Seven Thousand Seven Hundred Fifty Dollars ($27,750.00).

                        2. BROKER: Equis Corporation.

                        3. BUILDING: The building located at 1112 19th Street,
N.W., Washington, D.C. located on the Land.

                        4. COMMENCEMENT DATE. Determined pursuant to
Paragraph 3.

                        5. PREMISES: The entire Building, containing
approximately 20,000 gross square feet of space, and the Land.

                        6. EFFECTIVE DATE: The date of execution hereof by both
Landlord and Tenant.

                        7. LAND: The Land upon which the Building is situated,
as more particularly described in EXHIBIT A hereto.

                        8. LANDLORD'S ADDRESS: 2175 K Street, N.W., Suite 100,
Washington, D.C. 20037, Attention: Mr. Thaddeus A. Lindner and Mr. Sergius
Gambal.

                        9. PERCENTAGE RENT: Four and one-half percent (4.5%) of
Gross Receipts in excess of (i) Eleven Million Dollars ($11,000,000.00) in any
Lease Year during the first fifteen and one-half (15 1/2 years) of the Term,
(ii) Fifteen Million Dollars ($15,000,000.00) in any Lease Year during the first
Renewal Term, and (iii) Twenty One Million Three Hundred Seventy Five Thousand
Dollars ($21,375,000.00) in any Lease Year during the second Renewal Term. In
each case, the Percentage Rent shall be determined, in arrears, in accordance
with Paragraph 6 below.
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                        10. SECURITY DEPOSIT: None.

                        11. TERM: Fifteen and one-half (15 1/2) years,
commencing on the Commencement Date and ending, in all events, fifteen and
one-half (15 1/2) years from the last day of the month in which the Commencement
Date occurs, unless extended pursuant to Paragraph 3.2 below or earlier
terminated pursuant to the provisions of this Lease.

                        12. GUARANTOR: The New York Restaurant Group, Inc., a
Delaware corporation.

                        13. GUARANTY: That certain Guaranty of even date
herewith from Guarantor in favor of Landlord guarantying full payment and
performance of Tenant's obligations under this Lease.

                  B. ADDITIONAL DEFINITIONS

                        1. ADDITIONAL RENT: Any and all amounts required to be
paid by Tenant pursuant to the provisions of this Lease (including, but not
limited to, the payments to be made pursuant to Paragraphs 6 through 10 and 23
hereof, but excluding Monthly Base Rent) and any charges or expenses paid or
incurred by Landlord on behalf of Tenant pursuant to this Lease.

                        2. ALTERATIONS: Any improvements, alterations, fixed
decorations or modifications, structural or otherwise, to the Premises,
including, but not limited to, the installation, substitution, alteration, or
modification of carpeting, partitions, fixtures, counters, doors,
air-conditioning ducts, plumbing, piping, lighting fixtures and wiring of any
kind, hardware, locks, ceilings, window and wall coverings and the like, but
specifically excluding Tenant's Property (as defined in Paragraph 1.B.11 below).

                        3. GROSS RECEIPTS: The entire amount of the actual
receipts, whether for cash or otherwise, of all sales of food, liquor,
merchandise, service or any other receipt whatsoever of all business conducted
in or from the Premises (including any sidewalk or other public areas that
Tenant is able to use or to obtain access) during the applicable period,
including, but not limited to, mail orders, telephone orders and/or other orders
in whatever manner received or filled, whether in whole or in part, at the
Premises, (including any sidewalk or other public areas that Tenant is able to
use or to obtain access) and including all deposits not refunded to purchasers,
orders taken, sales to employees, sales through vending machines or other
devices, and sales by any subtenant, concessionaire or licensee or otherwise in
or from the Premises, provided that nothing herein shall prevent Landlord from
requiring an additional or different Percentage Rent as a condition to approval
of any subtenant, concessionaire or licensee hereunder. No deduction shall be
allowed for uncollected or uncollectible accounts, any income or similar tax
based on income or any gross receipts tax. Gross Receipts shall not include any
(i) sales tax, use tax, or any other tax separately collected by Tenant or paid
to any duly constituted governmental authority, (ii) the exchange of merchandise
between the restaurants or stores of Tenant, if any, where such exchange of
goods or merchandise are made solely for the convenient operation of the
business of Tenant and not for the purpose of consummating a sale which had
theretofore been made at, in, from or upon the Premises and/or for the purpose
of depriving Landlord of the benefit of a sale which otherwise would be made at,
in, from or upon the Premises, (iii) the amount of returns to shippers or
manufacturers, (iv) the amount of any cash or

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credit refund made upon any sale where the merchandise sold, or some part
thereof, is thereafter returned by the purchaser and accepted by Tenant, but
only to the extent of such refund, if the selling price of such merchandise was
previously included in Gross Receipts, (v) sales of Tenant's store fixtures, and
(vi) the amount of any sales to employees or sales made pursuant to a customer
promotional program, except to the extent of amounts charged for the same (the
exclusions set forth in clauses (i) through (vi) are collectively referred to as
the "Exclusions"). Notwithstanding anything in the Lease (including this
Paragraph I B 3) to the contrary, the aggregate amount of the Exclusions shall
not exceed three (3) percent of Gross Receipts in any Lease Year.

                        4. GROUND LEASES: All ground and other underlying leases
from which Landlord's title to the Land and/or the Building is or may in the
future be derived. "Ground Lessors" shall denote those persons and entities
holding such ground or underlying leases.

                        5. HOLIDAYS: New Year's Day, Memorial Day, Independence
Day, Labor Day, Thanksgiving Day and Christmas Day.

                        6. LEASE YEAR: That period of twelve (12) consecutive
calendar months commencing on the first day of the calendar month in which the
Commencement Date occurs, and each consecutive twelve (12)-month period
thereafter.

                        7. MONTHLY BASE RENT: Equal monthly installments of
one-twelfth (1/12th) of the Base Rent.

                        8. REAL ESTATE TAXES: Taxes and assessments, general or
special, ordinary or extraordinary, foreseen or unforeseen, assessed, levied or
imposed upon the Building or the Land, or assessed, levied or imposed upon the
fixtures, machinery, equipment or systems in, upon or used in connection with
the operation of the Building or the Land under the current or any future
taxation or assessment system or modification of, supplement to, or substitute
for such system, and whether or not based on or measured by the receipts or
revenues from the Building or the Land (including all taxes and assessments for
public improvements or any other governmental purpose, charges of any business
improvement district, and any gross receipts or similar taxes). Real Estate
Taxes shall include the reasonable expenses (including, but not limited to,
reasonable attorneys' fees) incurred by Landlord in obtaining or attempting to
obtain a reduction of such taxes, rates or assessments. Real Estate Taxes shall
not include any estate, inheritance, succession, capital levy, corporate
franchise, transfer or income tax of Landlord. If there is any change by the
taxing body in the period for which any of the Real Estate Taxes are levied,
assessed or imposed, Landlord shall have the right, in its reasonable
discretion, to make appropriate adjustments with respect to computing increases
in Real Estate Taxes provided Tenant is not thereby unduly prejudiced.

                        9. RENT: All Base Rent and Additional Rent.

                        10. TENANT'S PERSONAL PROPERTY: All equipment,
machinery, improvements, furniture, furnishings and other property now or
hereafter installed or placed in or on the Premises by and at the sole expense
of Tenant or with Tenant's permission (other than any

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property of Landlord) with respect to which Tenant has not been granted any
credit or allowance by Landlord and which (a) is not used, or was not procured
for use, in connection with the operation, maintenance or protection of the
Premises, the Building or the Land, and (b) is removable without damage to the
Premises, the Building or the Land and (c) is not a replacement of any property
of Landlord, whether such replacement is made at Tenant's expense or otherwise.
Notwithstanding any other provision of this Lease, Tenant's Personal Property
shall not include any Alterations or any improvements or other property
installed or placed in or on the Premises as part of the Tenant Work, whether or
not any such property was purchased or installed at Tenant's expense. Tenant's
Personal Property shall include its furniture, equipment, logos and Removable
Trade Fixtures (as defined below). For purposes hereof, "Removable Trade
Fixtures" shall mean Tenant's (i) removable decor items and office equipment,
(ii) signs, sign posts and sign standards, and (iii) food and customer service
equipment (including, without limitation, walk-in refrigerators and freezers,
remote refrigeration system and exhaust systems and hoods).

                        11. TENANT WORK: The initial improvements to the
Building to be performed by Tenant, as more particularly described in EXHIBIT D
hereto.

                        12. WORK AGREEMENT: The Work Agreement between Landlord
and Tenant attached hereto as EXHIBIT D.

      2. PREMISES. For and in consideration of the Rent reserved and the mutual
covenants contained in this Lease, Landlord does hereby lease and demise unto
Tenant, and Tenant does hereby lease and accept from Landlord, the Premises for
the Term and upon the terms and conditions set forth in this Lease. Any
approximations of square footage contained in this Lease shall in no way affect
the payment of Rent under this Lease should any variance be found to exist
between said approximation and the actual square footage. Landlord represents to
Tenant that it owns the Premises

      3. TERM; COMMENCEMENT DATE; PERMITS, ETC.

            3.1 COMMENCEMENT DATE. The Commencement Date shall occur upon the
earlier to occur of: (i) the date Tenant opens a restaurant for business to the
public from the Premises or (ii) one-hundred eighty (180) days after Landlord
delivers to Tenant possession of the Premises free of other tenancies. The Term
shall commence upon the Commencement Date and shall expire on the date that is
fifteen and one-half (15 1/2) years following the day prior to the Commencement
Date, unless extended or earlier terminated pursuant to the provisions of this
Lease (such date as extended pursuant to Paragraph 3.2 below or earlier
termination is hereinafter referred to as the "Lease Expiration Date"). This
Lease shall otherwise become effective upon the Effective Date, except that all
payments of Base Rent and Additional Rent hereunder shall commence as of the
Commencement Date. If Landlord has not delivered the Premises to Tenant on or
before February 15, 1999, then this Lease shall not be void, voidable or, except
as set forth in the next sentence, subject to termination, nor shall Landlord be
liable to Tenant for any loss or damage resulting from any failure of Landlord
to deliver the Premises to Tenant on or before such date. If the Premises have
not been delivered before such date, Tenant shall have the right to terminate
this Lease any time after February 15, 1999 and before Tenant's receipt of a
Delivery Notice (as defined below). If Landlord has been unable to deliver the

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Premises by January 1, 2000, then either Landlord or Tenant may terminate this
Lease at any time upon written notice. For purposes of this Lease, a Delivery
Notice shall mean and refer to a written notice to Tenant setting a date within
thirty (30) days of such notice by which Landlord states that it shall deliver
the Premises to Tenant.

            3.2 RENEWAL OPTION. Tenant is granted the option to extend the Term
for two (2) extended terms of five (5) years each (each, a "Renewal Term"),
provided that (i) Tenant is not in default at the time of exercise of each
respective option or on the first day of such Renewal Term, and (ii) Tenant
gives Landlord written notice of its exercise of the option at least three
hundred sixty-five (365) days prior to the expiration of the Term or the first
Renewal Term, as the case may be. Each Renewal Term shall be upon the same
terms, conditions and rental, except that the Base Rent shall be increased to
(i) Five Hundred Forty Thousand Dollars ($540,000.00) per year during the first
Renewal Term, and (ii) Eight Hundred Thousand Dollars ($800,000.00) during the
second Renewal Term. In addition, for each Lease Year during each Renewal Term,
Tenant shall pay the Percentage Rent.

            3.3 DECLARATION. Landlord and Tenant agree to execute a Declaration,
in the form attached hereto as Exhibit B, to confirm the Commencement Date and
other matters set forth thereon. Failure to execute the Declaration shall
constitute a default under this Lease, but shall not affect the commencement or
expiration of the Term.

      4. RENT; MONTHLY BASE RENT; ALLOWANCE AND ABATEMENT.

            4.1 MONTHLY BASE RENT. The first payment of Monthly Base Rent shall
be due on the Effective date and thereafter shall be payable on the first day of
each and every month as and when due during the Term. If the Commencement Date
is a date other than the first day of a month, however, Rent for the period
commencing with and including the Commencement Date and ending on and including
the day prior to the first day of the following month shall be prorated at the
rate of one-thirtieth (1/30th) of the Monthly Base Rent per day. All payments of
Rent shall be payable to Landlord at Landlord's Address, in lawful money of the
United States, without previous notice or demand and without deduction, set-off
or counterclaim whatsoever. Landlord shall have the right to change the place
where Rent shall be paid by written notice to Tenant.

            4.2 RENT CREDIT. Landlord hereby agrees to provide Tenant with a
rent credit in the aggregate amount of Eighty-Two Thousand Five Hundred Dollars
($82,500.00) (the "Rent Credit"). The Rent Credit shall be amortized (and
realized by Tenant) without interest on a straight-line basis over the initial
two (2) Lease Years, such that beginning upon the Commencement Date the Monthly
Base Rent shall be reduced by Three Thousand Four Hundred Thirty-Seven and
50/100 Dollars ($3,437.50) during each month of such two (2)- Lease Year period
($3,427.50 x 24 months = $82,500.00). In addition to the Rent Credit, Landlord
hereby agrees to provide Tenant with an additional rent credit (the "Additional
Rent Credit"), in an amount not to exceed Twenty-Five Thousand and No/100
Dollars ($25,000.00) for any costs incurred by Tenant directly related to
upgrading the utility services to the Building, which Additional Rent Credit
shall be credited in the same manner and over the same time period as the Rent
Credit. Tenant shall provide written receipts to Landlord evidencing the amounts
paid by Tenant for such upgrading. Thereafter, Landlord shall deliver written
notice to Tenant

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confirming the amount of the Additional Rent Credit or questioning the amount or
nature of such costs for purposes of this Paragraph 4.2.

      5. ACCEPTANCE OF THE PREMISES. Taking possession of the Premises by Tenant
shall be conclusive evidence that Tenant: (a) accepts the Premises as suitable
for the purposes for which they are leased; (b) accepts the Premises and every
part and appurtenance thereof as being in a good and satisfactory condition; and
(c) accepts the Premises in "As Is" condition and waives any defects in the
Premises. Tenant shall not occupy or use the Premises prior to the Commencement
Date without Landlord's prior consent and unless all provisions of the Lease
shall be in full force and effect. Landlord shall not be liable to Tenant or any
of Tenant's agents, employees, licensees, servants, or invitees for any injury
or damage to person or property due to the condition or design of or any defect
in the Building or its mechanical systems and equipment which may exist or
occur. Tenant, for itself and its agents, employees, licensees, servants, and
invitees, expressly assumes all risks of injury or damage to person or property,
either proximate or remote, resulting from the condition of the Premises or any
part thereof. Notwithstanding anything to the contrary in this Lease, Landlord
represents to Tenant that, except as set forth in that certain letter report of
AMN Engineers dated February 1, 1994, Landlord has no actual knowledge of any
structural defects in the Building.

      6. PERCENTAGE RENT.

            6.1 CALCULATION. For each Lease Year or portion thereof during the
Term (including any Renewal Term), Tenant shall pay to Landlord, as "Percentage
Rent" hereunder, an amount equal to four and one-half percent (4.5%) of the
Gross Receipts in excess of (i) Eleven Million Dollars ($11,000,000.00)
attributable to such Lease Year during the initial fifteen and one half (15 1/2)
years of the Term, (ii) fifteen Million Six Hundred Thousand Dollars
($15,600,000.00) attributable to each Lease Year during the first Renewal Term,
and (iii) Twenty One Million Three Hundred Seventy Five Thousand Dollars
($21,375,000.00) attributable to each Lease Year during the second Renewal Term,
in each case payable monthly in arrears. Such Percentage Rent shall be in
addition to the Base Rent and other Additional Rent payable hereunder. Anything
contained in this Lease to the contrary notwithstanding, there shall be no
abatement, apportionment or suspension of the Percentage Rent payable hereunder.
Commencing with the first (1st) Lease Year of the Term, and continuing
throughout the remainder of the Term, the payment of Percentage Rent due under
this Lease shall be calculated annually in accordance with the provisions of
this Paragraph 6.1 and shall be payable as provided in Paragraph 6.2 below.

            6.2 PERIODIC PAYMENT AND REPORTING. Within sixty (60) days after the
expiration of each Lease Year, Tenant shall deliver to Landlord (i) a statement
certified without material qualification by the independent certified public
accountant regularly retained by Tenant, or a "Big Five" accounting firm or such
other accounting firm as may be approved by Landlord in its sole and absolute
discretion, setting forth the amount of Tenant's Gross Receipts for each such
Lease Year and (ii) payment of the Percentage Rate. If the accountants'
certification does not verify the amount of Gross Receipts for any Lease Year,
Tenant shall deliver to Landlord, together with the conflicting accountants'
certification, a written statement by the accountants who prepared such
certification explaining the discrepancy. Tenant shall

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require its subtenants, if any, to furnish similar statements to Tenant within
the same periods specified. For the last Lease Year, the statements of Gross
Receipts shall end with the expiration or termination of this Lease. All such
statements of Gross Receipts shall list as separate amounts (a) Gross Receipts
upon which Percentage Rent shall be computed and (b) other categories of
receipts not subject to Percentage Rent. If Tenant fails to timely deliver any
of the annual reports required by this Paragraph 6.2, Tenant shall pay Landlord,
a late charge fee in accordance with Paragraph 10 hereof.

            6.3 RECORDS MAINTENANCE. For the purpose of ascertaining the amount
payable as Percentage Rent, Tenant agrees to prepare and keep on the Premises
for a period of not less than three (3) years following the end of each Lease
Year adequate records which shall show inventories and receipts of food, liquor
and merchandise at the Premises, and daily receipts from all sales and other
transactions and any other persons conducting any business upon or from the
Premises, including subtenants, licensees or concessionaires. Tenant shall
record at the time of each sale or other transaction, all receipts from sales or
other transactions whether for cash or credit in a cash register or in cash
registers sealed in a manner approved by Landlord and having such other features
as shall be approved by Landlord. Tenant further agrees to keep on the Premises
for three (3) years following the end of each Lease Year adequate records in
keeping with Generally Accepted Accounting Principles ("GAAP") evidencing the
gross income, sales and tax returns with respect to such Lease Years and all
pertinent original sales records, which may include: (a) cash register tapes,
including tapes from temporary registers; (b) serially numbered sales slips; (c)
the originals of all mail orders at and to the Premises; (d) the original
records of all telephone orders at and to the Premises; (e) settlement report
sheets of transactions with subtenants, concessionaires and licensees; (f) the
original records showing that merchandise returned by customers was purchased at
the Premises by such customers; (g) memorandum receipts or other records of
merchandise taken out on approval; (h) such other sales records, if any, which
would normally be examined by an independent accountant pursuant to accepted
auditing standards in performing an audit of Tenant's sales; and (i) the records
specified in (a) through (h) above of any subtenants, assignees,
concessionaires, or licensees. Landlord and Landlord's authorized
representatives shall have the right to examine the foregoing records during
reasonable business hours.

            6.4 AUDIT RIGHTS. Landlord shall have the right to have an audit
made of Tenant's books and records pertaining to sales at the Premises. If any
statement required by Paragraph 6.2 above is found to differ by more than three
percent (3%) from the audited amount, Tenant shall pay for any and all costs and
fees of such audit and any deficiency in Percentage Rent within fifteen (15)
days after notice from Landlord, and if such audit proves such statements to be
correct, or such statements collectively do not vary by more than three percent
(3%) from the results of the audit, then the expenses of such audit shall be
borne by Landlord. In the event Landlord is unable to conduct a proper
examination and/or audit, in the reasonable judgment of Landlord's auditor due
to Tenant's failure or inability to produce adequate records, the parties agree
that Landlord shall have been deprived of an important right under this Lease
and, as a result thereof, will suffer damages in an amount which is not readily
ascertainable; therefore, in addition to, and not in lieu of, any other remedies
which Landlord has under this Lease, at law or in equity, shall have the right,
at its option, to collect, as liquidated damages (and not as a penalty), an
amount equal to fifteen percent (15%) of the greater of (i) Percentage

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Rent reported for the period or periods in question or (ii) the Base Rent
payable for the period or periods in question.

            6.5. RADIUS RESTRICTION.

                  6.5.1 Except as expressly provided in Paragraph 6.5.2 below,
during the Term, neither Tenant nor Tenant's management, or any person or entity
controlled by Tenant or controlling Tenant (including, without limitation, the
New York Restaurant Group, Inc.), or controlled by the same person or entity or
persons or entities who control Tenant (individually and collectively, the
"Tenant Affiliate"), shall own, operate or maintain, or have any significant
affiliation, investment or interest, directly or indirectly, through or with any
other person, partnership, corporation, agent or employee in any similar or
competing business as that being operated at the Premises, within a radius of
five (5) miles from the Premises (which distance shall be measured in a straight
line without reference to road mileage) (the "Restricted Area"). Tenant
acknowledges that Landlord's obtaining a fair and equitable rental for the
Premises under this Lease is dependent upon Tenant's concentrating its business
efforts within the geographical area in which the Premises are located so as to
maximize the Gross Receipts, and Tenant further acknowledges that any activity
by Tenant within such geographical area in operating or participating in the
operation of a similar or competing business shall necessarily have an adverse
effect on the volume of Gross Receipts by Tenant at the Premises to the
detriment of Landlord and will deprive Landlord of the fair rental to which the
parties have agreed. Accordingly, in the event that during the Term there is a
breach of the covenant set forth in the first sentence of this Paragraph 6.5,
then the Gross Receipts of any such other place of business shall be included in
the Gross Receipts made from the Premises to determine the Percentage Rent due
under this Lease, as fully as though such Gross Receipts had actually been made
from the Premises. In such event, all of the provisions of this Paragraph 6
shall be applicable to the Gross Receipts of, and all the books and records
pertaining to, such competing restaurants.

                  6.5.2 Notwithstanding anything to the contrary in Paragraph
6.5.1 above, a Tenant Affiliate shall have the right to open and operate an
Existing Restaurant Concept (as defined below) of Guarantor, other than a
Smith & Wollensky steakhouse, grill or similar concept or any other
restaurant with a theme that has been introduced into the Premises
(collectively, the "S & W Concept") in the Restricted Area. The term
"Existing Restaurant Concept" shall mean any of the following restaurant
concepts operated by Guarantor or its affiliates as of the date of this
Lease: The Manhattan Ocean Club, Cite, Maloney & Porcelli, and Park Avenue
Cafe, but expressly excluding the S & W Concept). Neither Tenant nor any
Tenant Affiliate shall open or operate any S & W Concept in the Restricted
Area (other than at the Premises) during the Term.

      7. REAL ESTATE TAXES. Base Year Real Estate Taxes are included as a
portion of Base Rent. "Base Year Real Estate Taxes" are hereby defined as the
lesser of (i) the Real Estate Taxes for the second Lease Year or (ii) Sixty
Thousand Dollars ($60,000.00). For the second Lease Year and each Lease Year
during the Term (including any Renewal Term), Tenant shall pay all real estate
taxes in excess of the Base Year Real Estate Taxes, calculated (if Landlord so
elects) on a semi-annual basis. Landlord shall provide Tenant with (i) copies of
all bills for Real Estate Taxes arising during the prior Lease Year or a part
thereof, (ii) determine the actual Real Estate Taxes for such Lease Year or a
part thereof, and (iii) provide to Tenant a statement of the

                                      -8-
<PAGE>

amount payable by Tenant on account of Real Estate Taxes for such period (but
Tenant shall not be relieved of any of its obligations hereunder in the event
Landlord's expense statement is not provided semi-annually). Within thirty (30)
days after the delivery of such statement, Tenant shall pay to Landlord any
excess of Real Estate Taxes, over the Base Year Real Estate Taxes, calculated
(if Landlord so elects) on a semi-annual basis. Tenant's liability for the final
payment of Real Estate Taxes shall survive the expiration or termination of the
Term. Landlord represents to Tenant that as of July 1, 1998, the real estate tax
assessment for the Premises is Two Million Seventy Six Thousand Eight Hundred
Dollars ($2,076,800) and the applicable real estate tax rate is Two Dollars and
Fifteen Cents ($2.15) per One Hundred Dollars ($100.00) of assessment.

      8. SALES, USE OR OTHER TAXES. If, during the Term (including any Renewal
Term), any governmental authority having jurisdiction levies, assesses or
imposes any tax on the Premises or any part thereof or the rents payable
hereunder, in the nature of a sales tax, a use tax (including a gross receipts
tax) or any other tax except (a) income taxes (including corporate franchise or
unincorporated business taxes); (b) estate or inheritance taxes; or (c) Real
Estate Taxes, Tenant shall pay the same to Landlord as Additional Rent at the
time of, and together with, the first payment of Monthly Base Rent due following
receipt by Tenant of written notice of the amount of such tax. If any such tax
is levied, assessed or imposed and the amount of the tax required to be paid by
Tenant is not ascertainable because the tax relates to more than the Premises or
the rents payable hereunder, then Tenant shall pay such share of the total taxes
that Landlord shall reasonably estimate.

      9. PERSONAL PROPERTY TAXES. Tenant shall pay, before delinquency, all
taxes, assessments, license fees and other charges that are levied or assessed
against Tenant's Personal Property installed or located in or on the Premises
and against the value of leasehold improvements that become payable during the
Term, any business and professional occupational license taxes or fees
applicable to Tenant. On demand by Landlord, Tenant shall furnish Landlord with
satisfactory evidence of these payments. If any of such taxes or fees are levied
against Landlord or Landlord's property, or if the assessed value of the Land or
the Building is increased by the inclusion of a value placed on Tenant's
Personal Property, and if Landlord pays the taxes on any of these items or the
taxes based on the increased assessment of these items, Tenant, on demand, shall
reimburse Landlord for the sum of the taxes levied against Landlord, or the
proportion of the taxes resulting from the increase in Landlord's assessment.

      10. LATE CHARGE; INTEREST. All payments of Monthly Base Rent, Percentage
Rent and Additional Rent shall be paid to Landlord, without notice or demand,
and without any setoff, deduction or counterclaim whatsoever. All payments of
Additional Rent due hereunder shall be paid with the installment of Monthly Base
Rent next due after such Additional Rent shall have accrued. Nothing contained
in Paragraphs 6 through 10 or elsewhere herein shall be construed at any time to
reduce the amount of Monthly Base Rent as increased each year. Notwithstanding
any dispute which may arise in connection with the computation or estimate of
the amount of Additional Rent due, Tenant shall be obligated to pay the amount
reasonably specified by Landlord, pending the resolution of any dispute. Any
installment of Monthly Base Rent, Percentage Rent or Additional Rent not paid
within five (5) days of the due date thereof shall be subject to a late charge
of five percent (5%) of such installment. In addition, such unpaid installment
shall bear interest until paid at the rate of the lower of (i) eighteen percent
(18%) per annum or (ii) the maximum rate of interest permitted by law. Tenant's
obligations to pay any

                                      -9-
<PAGE>

amounts of Monthly Base Rent, Percentage Rent and Additional Rent shall survive
the expiration or termination of this Lease.

      11. USE OF PREMISES; CONTINUOUS OPERATION

            11.1 USE. During the Term (including any Renewal Term), the
Premises shall be used and occupied by Tenant solely for the purpose of
operating a white table cloth restaurant and food service establishment,
similar to any of Tenant's existing restaurant concepts, serving liquor for
on-premises consumption, and for no other purpose whatsoever. In addition,
the Premises shall not be used for any illegal purpose or in violation of any
applicable law, or in any manner which could or might (i) create any nuisance
or trespass; (ii) violate any of the covenants, agreements, terms, provisions
and conditions of this Lease, or of any lien, covenant or encumbrance which
runs with the Land and thereby affects the Building; or (iii) impair the
appearance or reputation of the Building. Tenant shall have unlimited access
to the Premises for deliveries of goods and the removal of wastes. Tenant
shall have the right to inspect the Building to determine if it can be used
for rooftop patio dining. If Tenant determines that the Building is suitable
for such use, subject to the other provisions of this Lease, Tenant may, at
its expense and without liability to Landlord, perform any upgrades to the
Building necessary to allow and support such use. In connection with such
upgrades, Landlord, upon the written request of Tenant, shall reasonably
cooperate with Tenant in respect of any required filings, provided the same
do not cause Landlord to incur any expense nor create any liability for
Landlord.

            11.2 CONTINUOUS OPERATION.

                  (a) Tenant hereby covenants, warrants and represents that it
will occupy the Premises on the Commencement Date (or as soon thereafter as
Tenant shall have completed its Tenant Work). Tenant shall accept the Premises
in their "as is-where is" condition on the Effective Date. Tenant hereby further
covenants, warrants and represents that at all times during the Term hereof,
Tenant shall continuously and uninterruptedly operate a full-service, sit-down,
white table cloth restaurant from the Premises of the type described in
Paragraph 12.1. In no event shall Tenant be permitted to be open for business
beyond the hours of operating permitted pursuant to the laws of the District of
Columbia. If Tenant shall fail to (i) open for business within sixty (60) days
after the Commencement Date or (ii) remain open for business as herein provided
at the hours set forth herein, the same shall constitute a material breach of
this Lease giving rise to the remedies provided in this Lease and available at
law or in equity, and in addition Landlord shall be entitled, among its other
remedies, to (x) collect from Tenant an amount equal to all Monthly Base Rent
due under this Lease PLUS an additional amount (which shall constitute
Additional Rent under this Lease) of twelve percent (12%) of the Monthly Base
Rent per day for each and every day until the date Tenant fully utilizes the
Premises for Tenant's business pursuant to this Lease, (y) terminate this Lease
or exercise any of the remedies set forth in Paragraph 20 below, or (z) enjoin
the removal or discontinuance of Tenant's business from the Premises by seeking
injunctive relief or other appropriate remedy. The operating covenant set forth
herein shall not be violated on account of closings attributable to Holidays,
closings one (1) day a week, one (1) two (2) week vacation period each Lease
Year, any casualty or condemnation, strike, natural disaster, alterations or
refurbishings diligently prosecuted or other

                                      -10-
<PAGE>

events beyond Tenant's reasonable control (such events being referred to herein
as "Permitted Closings").

                  (b) Tenant shall not allow any objectionable odors to emanate
from the Premises. With respect to objectionable odors which emanate or are
dispelled from the Premises, Landlord shall have the right to require Tenant to
take all actions which Landlord deems appropriate to eliminate such odors,
including, without limitation, requiring Tenant to clean and maintain all of its
equipment in a first-class manner to assure that it is operating properly,
requiring Tenant to comply with operating techniques expected of similar
restaurant operations, requiring Tenant to install, repair or replace any
exhaust, ventilation, or air filtration systems within the Premises which
Landlord deems appropriate, and/or requiring Tenant to make any other capital
improvements within the Premises which Landlord reasonably deems appropriate.

                  (c) Tenant shall conduct no distress sales, such as `going out
of business', fire, or bankruptcy sales on the Premises or elsewhere in the
Building, and default by reason of Tenant's conducting such a sale shall
constitute a default under this Lease entitling Landlord to the remedies
provided in this Lease and available at law or in equity, including, but not
limited to, injunctive relief or other appropriate remedy.

      12. ADDITIONAL MATTERS. With regard to use and occupancy of the Premises,
Tenant will (i) keep the inside and outside of all glass in the doors and
windows of the Premises clean; (ii) keep all exterior store front surfaces of
Premises clean; (iii) keep the Premises clean at all times, including removal of
ice and snow; (iv) replace promptly, at its expense, any cracked or broken plate
or window glass of the Premises with glass of like kind and quality; (v)
maintain the Premises and any garbage or dumpster areas at its expense in a
clean, orderly and sanitary condition and free of insects, rodents, vermin and
other pests; (vi) remove all garbage, trash, rubbish or refuse from the Premises
at its expense on a regular basis; (vii) keep all mechanical apparatus free of
vibration and noise which may be transmitted beyond the Premises; (viii) comply
with all laws, ordinances, rules and regulations of governmental authorities and
all reasonable requirements and recommendations of Landlord's fire insurance
carrier now or hereafter in effect; (ix) procure and maintain, at its sole cost
and expense, any permits and license required in the transaction of Tenant's
business at the Premises or adjacent sidewalks; in connection with such
upgrades, Landlord, upon the written request of Tenant, shall reasonably
cooperate with Tenant in respect of any required filings, provided the same do
not cause Landlord to incur any expense nor create any liability for Landlord;
and (x) take such action as may be necessary to prevent water damage to the
Premises in the event of forecasted flooding, including, without limitation,
surrounding the perimeter of the Building with plastic and a sandbag barrier.
Tenant will not (I) place or maintain any merchandise or other articles in any
vestibule or entry of the Premises, on the sidewalks adjacent thereto or
elsewhere on the exterior of the Premises; (II) use or permit the use of any
objectionable advertising medium such as, without limitation, loud speakers,
phonographs, public address systems, sound amplifiers, radio or broadcasts
within the Building which is in any manner audible or visible outside of the
Premises; (III) permit undue accumulations of garbage, trash rubbish or other
refuse within or without the Premises; (IV) cause or permit objectionable odors
to emanate or be dispelled from the Premises onto the adjacent sidewalks; or (V)
solicit business on the adjacent sidewalks.

                                      -11-
<PAGE>

      13. REPAIRS BY TENANT. Tenant agrees to maintain the Premises and the
fixtures and systems therein (including, without limitation, all interior
structural elements of the Building) in good order, repair and condition, during
the Term at its sole cost and expense, and will, at the expiration or other
termination of the Term, surrender and deliver the same and all keys, locks and
other fixtures connected therewith (except only Tenant's Personal Property) in
the same good order, repair and condition as they are now in or shall be in at
the Commencement Date, except as repaired, rebuilt, restored, altered or added
to as permitted or required by this Lease, and ordinary wear and tear and damage
by casualty or condemnation excepted. Tenant shall be solely responsible for
keeping the Premises in good condition and repair throughout the Term,
including, but not limited to, making all required and necessary repairs and
replacements to the doors, light bulbs and fixtures (including tubes and
casings), windows, glass, ceiling, mechanical, electrical and plumbing equipment
of the Premises. The plumbing facilities shall not be used for any purpose other
than that for which they are constructed and no foreign substance of any kind
shall be thrown therein, and the expense of any breakage, stoppage or damage
resulting from a violation of this provision shall be Tenant's liability. Tenant
shall also initiate and carry out a program of regular maintenance and repair of
the Premises, including, but not limited to, (i) the painting or refinishing of
all areas of the interior and maintaining or replacing of all trade fixtures and
equipment, ceiling tile, flooring and other items of display used in the conduct
of Tenant's business, so as to impede, to the extent possible, deterioration by
ordinary wear and tear and to keep the same in attractive condition throughout
the Term and (ii) obtaining and maintaining, at Tenant's cost, service contracts
with reputable, licensed mechanical contractors reasonably acceptable to
Landlord to carry, out a program of regular maintenance and repair of the
heating, air-conditioning and ventilating systems, including, but not limited
to, the replacement of any filters. The HVAC service contract must include all
services suggested by the equipment manufacturer in the operating/maintenance
manual for the HVAC system, and must become effective as of the Commencement
Date. Within thirty (30) days prior to the expiration date hereof, Tenant shall
have the HVAC system checked and serviced to insure proper functioning and shall
furnish Landlord with satisfactory proof thereof. Tenant shall make all repairs
to the Premises necessitated by any act or omission of Tenant or its agents,
employees, or invitees. Tenant shall be responsible for the cleaning and
maintenance of all grease traps within the Premises. To this end, Tenant
covenants to enter into a grease trap cleaning contract reasonably acceptable to
Landlord on or prior to the Commencement Date, and to furnish Landlord with a
copy thereof. Tenant shall not place a load upon the floor of the Premises
contrary to the weight, method of installment and position approved by Landlord,
which approval shall not be unreasonably withheld, conditioned or delayed. No
equipment may be used or installed which will or may necessitate any changes,
replacements or additions to or require the use of the water system, plumbing
system, heating system, air conditioning system, security system or the
electrical system of the Premises without the prior written consent of Landlord
(except the provisions hereof shall not be applicable with respect to any Tenant
Work).

      14. REPAIRS. Tenant agrees to maintain the foundation and exterior
structural elements of the Building and the roof and roof system, in good order,
repair and condition. Tenant shall have the obligation to make, at its sole cost
and expense, any structural and other repairs and replacements to the Building.
Landlord shall have no duty to Tenant to maintain or to make any repairs or
improvements to the Premises or any part thereof. Landlord shall not be liable
for any damage caused to the person or property of Tenant, its agents,
employees, sublessees, contractors or invitees arising from the leaking of gas,
water, sewer or steam pipes, or

                                      -12-
<PAGE>

from electricity, or from any other cause whatsoever (other than the acts of
Landlord or its agents).

      15. LAWS AND ORDINANCES. Tenant will obtain and maintain, at its sole cost
and expense, any and all certificates of occupancy for Tenant's use of the
Premises. It is expressly understood that if any future law, ordinance,
regulation, or order, or any change in the use of the Premises by Tenant,
requires a new certificate of occupancy for the Premises, Tenant will obtain
such permit at Tenant's own expense. Tenant will, at its own cost, promptly
comply with and carry out all orders, requirements or conditions now or
hereafter imposed upon Tenant or the Premises by the ordinances, laws, rules,
orders or regulations of the District of Columbia or the state in which the
Premises is located, whether required of Landlord or otherwise (it being
understood that, in all events, Tenant shall be responsible for complying with
all requirements of the Americans With Disabilities Act and all laws pertaining
to the collection, sorting, separation and recycling of trash). Tenant will
defend, indemnify and save Landlord harmless from all penalties, liabilities,
damages, costs, expenses, suits, claims and demands resulting from Tenant's
failure or negligence in this respect, unless caused by acts of Landlord or its
agents.

      16. NO LANDLORD'S WORK; TENANT'S WORK; ALTERATIONS

            16.1 LANDLORD'S WORK AND TENANT'S WORK. Tenant acknowledges that it
accepts the Premises in its "as-is" condition, and that Landlord is under no
obligation to make any improvements of any nature to the Premises. The parties
acknowledge that Tenant shall make certain initial improvements or "Tenant Work"
to the Premises in accordance with the terms and conditions set forth in the
Work Agreement attached hereto as EXHIBIT D.

            16.2 ALTERATIONS BY TENANT. Tenant will not make or permit any
Alterations to the Premises or to the Building without the prior written consent
of Landlord, which consent shall not be unreasonably withheld, conditioned or
delayed; provided that Tenant may make minor, non-structural interior
Alterations costing less than Twenty Five Thousand Dollars ($25,000.00) per year
without Landlord's consent. Notwithstanding anything to the contrary in this
Lease, Tenant shall not construct any additional structures or add any
additional floors to the Building (subject to the final three (3) sentences of
Paragraph 11.1 above). If Landlord consents to any Alterations, Landlord may
impose any conditions it deems appropriate, including, without limitation, the
approval of plans and specifications, supervision of the work by Landlord's
architect or contractor, and satisfactory evidence from Tenant of Tenant's
ability to pay for such Alterations. Alterations may be made only at Tenant's
expense by contractors or subcontractors reasonably approved in writing by
Landlord, and only after Tenant shall have obtained any necessary permits from
all applicable governmental and quasi-governmental authorities having
jurisdiction, and furnished copies of the permits to Landlord. All Alterations
must conform to all rules and regulations established from time to time by the
Board of Fire Underwriters having jurisdiction or similar body exercising
similar functions and to all laws, regulations and requirements of the District
of Columbia or any state government (including, but not limited to, all rules
and regulations applicable to historical properties and the provisions of the
Americans With Disabilities Act). Tenant shall obtain and deliver to Landlord
written, unconditional waivers of mechanic's and materialmen's liens against the
Building and the Land from all contractors, subcontractors and material
suppliers for all work performed and materials furnished in connection with the
Alterations on a timely basis. All agreements with contractors performing

                                      -13-
<PAGE>

Alterations shall limit their lien rights to the right to file a lien against
Tenant's leasehold interest in the Premises. Notwithstanding the foregoing, if
any mechanic's lien is filed against Landlord with respect to its interest in
the Building and/or the Land for work or materials done for or furnished to
Tenant, or claimed to have been done for or furnished to Tenant, the lien shall
be discharged by Tenant within thirty (30) days thereafter, solely at Tenant's
expense plus five percent (5%). If Tenant fails to discharge such lien Landlord
may do so and treat the cost thereof as Additional Rent; but such discharge by
Landlord shall not be deemed to waive the default of Tenant in not discharging
the same. Tenant will defend, indemnify and hold Landlord harmless from and
against any and all liabilities, costs (including reasonable attorneys' fees),
expenses, liens, suits, claims, demands or damage to persons or property which
may arise from the making of any Alterations. Except as expressly permitted
hereby, if any Alteration is made without the prior written consent of Landlord,
and Tenant fails to remove the same within twenty (20) days after written notice
from Landlord to Tenant, then Landlord may correct or remove the Alteration at
Tenant's expense, and all costs and expenses incurred by Landlord in connection
with the removal of any mechanic's lien or the correction or removal of the
Alternation plus five percent (5%) shall be payable as Additional Rent with the
next due payment of Monthly Base Rent.

      17. OWNERSHIP OF ALTERATIONS AND EQUIPMENT AND OTHER PROPERTY; REMOVAL OF
TENANT'S PERSONAL PROPERTY

            17.1 LANDLORD'S PROPERTY. Any Alterations and other property
installed or located in the Premises by or on behalf of either party shall
(except for Tenant's Personal Property) remain upon and be surrendered to
Landlord with the Premises as a part thereof upon the expiration or termination
of the Term; PROVIDED, HOWEVER, that if Tenant is not in default under this
Lease, Tenant shall have the right to remove, prior to the expiration of the
Term, Tenant's Personal Property, and provided further, that if Landlord shall
elect that any Tenant Work or any Alterations be removed at the expiration of
the Term, Tenant shall cause the same to be removed at Tenant's expense and
shall surrender the Premises to Landlord in the condition in which the Premises
were originally received from Landlord, except as repaired, rebuilt, restored,
altered or added to as permitted or required under this Lease and except for
ordinary wear and tear and damage by fire or condemnation, or shall reimburse
Landlord for the cost of doing so.

            17.2 REMOVAL. Provided Tenant is not in default under this Lease
Tenant shall have the right to remove all of Tenant's Personal Property from the
Premises at the expiration or termination of this Lease. Tenant shall repair any
and all damage occasioned by such removal. Any property belonging to Tenant or
any other person, which is left in the Premises after the date the Lease has
expired or is terminated for any reason, shall be deemed to have been abandoned.
In such event, Landlord shall have the right to declare itself owner of such
property and to dispose of it in whatever manner Landlord considers appropriate
without waiving its right to claim from Tenant all expenses and damage caused by
Tenant's failure to remove the property, and Tenant shall not have any right to
compensation or claim against Landlord as a result.

                                      -14-
<PAGE>

      18. DAMAGE OR DESTRUCTION.

            18.1 GENERAL PROVISIONS. If following any damage to the Premises by
fire or other insured casualty, restoration of the Premises is possible in
accordance with Landlord's reasonable estimate, within a period of twelve (12)
months from the date of the damage: (i) Landlord agrees to make all insurance
proceeds it may receive available for restoration of the Premises by Tenant
pursuant to the provisions set forth in Paragraph 18.2 hereof, up to the limit
of insurance proceeds received subject to any prior rights of any mortgagee to
such proceeds; and (ii) if the Premises are untenantable for Tenant's permitted
uses, in whole or in part, during such period of restoration by Landlord, the
Monthly Base Rent (but not Percentage Rent or Additional Rent) hereunder shall
be abated proportionately to the extent and for the period of such
untenantability; provided that, in all events, the abatement period shall expire
upon the earlier to occur of (w) expiration of such twelve (12) month period,
(x) such time as Tenant shall have substantially completed all of its
restoration obligations hereunder, (y) the date the Premises is otherwise
rendered tenantable, or (z) the date Tenant conducts business from the damaged
portion of the Premises.

            18.2 RESTORATION BY TENANT. All work necessary to restore and repair
the Premises following any damage or casualty shall be performed by Tenant
pursuant to the provisions of this Paragraph 18.2, including, without
limitation, reconstruction, repair or restoration of exterior portions of the
Building (such work being referred to herein as the "Restoration Work"). All
Restoration Work shall be subject to all of the provisions of the Work Agreement
regarding Tenant Work (including, without limitation, Landlord's right to
approve plans and specification and the general contractor and the right to
oversee the work). Landlord shall advance any insurance proceeds which it
receives to Tenant to pay for the Restoration Work in accordance with
disbursement procedures typically required by lenders in District of Columbia
when making construction loans. Such disbursement procedures shall include,
without limitation: (i) implementation of customary retainage requirements; (ii)
delivery of certificates from the architect and the general contractor for the
Restoration Work and any architect or inspector engaged by Landlord to monitor
the same confirming that the work for which disbursement is being requested has
been properly performed pursuant to approved plans and specifications; (iii)
delivery of date-down endorsements to Landlord's title insurance policy prior to
making any disbursement; and (iv) delivery of lien waivers from all parties
performing materials, labor, goods or other services in connection with the
Restoration Work prior to making any disbursement. Tenant shall commence the
Restoration Work as soon as possible following any casualty, and shall
diligently prosecute the same to completion. Tenant's failure to promptly
commence and diligently prosecute the Restoration Work (including any design
work necessary therefor) shall constitute an Event of Default hereunder.
Landlord shall have the right, at any time, but shall not be required to,
relieve Tenant of its obligation to perform the Restoration Work and to perform
such work itself. Landlord shall have no obligation to advance funds for
replacement or repair any of Tenant's Personal Property or any property required
to be insured by Tenant pursuant to the provisions hereof; upon completion of
the foregoing repair or reconstruction work, Tenant shall proceed with all due
diligence to repair, restore or replace all of Tenant Personal Property and such
other property as it is required to insure, and shall prosecute the same to
completion.

                                      -15-
<PAGE>

            18.3 TERMINATION RIGHTS. If restoration is not possible, in
accordance with Landlord's reasonable estimate, within a period of twelve (12)
months, Landlord, at its sole option, shall have the right to terminate this
Lease by giving written notice thereof to Tenant within sixty (60) days after
the occurrence of such damage, in which event this Lease and the tenancy
hereunder, shall terminate as of the date specified in such notice, which date
shall be no later than one hundred twenty (120) days after the occurrence of
such damage. Further, in the event at least sixty percent (60%) of the Building
is damaged during the last eighteen (18) months of the Term, Landlord may
terminate this Lease by written notice to Tenant. No compensation or claim or
diminution of rent will be allowed or paid by Landlord by reason of
inconvenience, annoyance or injury to business, arising from the necessity of
repairing the Premises or any portion of the Building, however the necessity may
occur, as determined in the sole discretion of Landlord.

      19. CONDEMNATION. If the Premises or any part thereof shall be taken or
threatened to be taken by any governmental or quasi-governmental authority
pursuant to the power of eminent domain, or by deed in lieu thereof, Tenant
agrees to make no claim for compensation in the proceedings (except as
specifically set forth below), and hereby assigns to Landlord any rights which
Tenant may have to any portion of any award made as a result of any such taking,
and this Lease shall terminate as to the portion of the Premises actually taken
by the condemning authority and Monthly Base Rent (but not Percentage Rent or
Additional Rent) shall be adjusted to such date. The foregoing notwithstanding,
Tenant shall be entitled to claim in the condemnation proceedings, such awards
as may be allowed for its relocation expenses and the unamortized value (over
the initial Term of this Lease) of the non-removable portions of the Tenant
Work, but only if such awards shall be made by the condemnation court in
addition to and stated separately from the award made by it for the Land and the
Building or part thereof so taken and does not reduce the amount of Landlord's
recovery. In no event shall Tenant be entitled to any award for the unexpired
portion of the Term of this Lease. If the nature, location or extent of any
proposed condemnation affecting the Building or the Land is such that Landlord
elects to demolish all or a portion of the Building, then Landlord may terminate
this Lease by giving at least sixty (60) days written notice of termination to
Tenant at any time after such condemnation and this Lease shall terminate on the
date specified in such notice. Monthly Base Rent shall be adjusted to such date.
In the event more than twenty percent (20%) of the Premises is taken in any
condemnation or similar proceeding, either Landlord or Tenant shall have the
right to terminate this Lease by written notice to the other given within thirty
(30) days after the taking. In the Lease is not so terminated, then this Lease
shall continue in full force and effect, except that the Base Rent payable
hereunder (but not the Percentage Rent, Percentage Rent or any Additional Rental
obligations of Tenant hereunder) shall be equitably adjusted based upon the
portion of the Premises so taken.

      20. DEFAULTS; LANDLORD'S REMEDIES.

            20.1 EVENTS OF DEFAULT. Any of the following occurrences or acts
shall constitute an event of default ("Event of Default") under this Lease:

                  (a) If Tenant shall fail to pay any Monthly Base Rent,
Percentage Rent or any Additional Rent within five (5) business days after
written notice from Landlord that the same is past due;

                                      -16-
<PAGE>

                  (b) Any default by Guarantor under the Guaranty.

                  (c) If the Premises shall become vacant, deserted or abandoned
for a period of at least five (5) consecutive days, except in connection with
any Permitted Closings; or

                  (d) If Tenant shall file a petition in bankruptcy or for
reorganization or for an arrangement pursuant to any federal or state bankruptcy
law or any similar federal or state law, or shall be adjudicated a bankrupt or
become insolvent or shall make an assignment for the benefit of creditors or
shall admit in writing its inability to pay its debts generally as they become
due; or

                  (e) If a petition or answer proposing the adjudication of
Tenant as a bankrupt or its reorganization pursuant to any federal or state
bankruptcy law or any similar federal or state law shall be filed in any court
and Tenant shall consent to or acquiesce in the filing thereof or such petition
or answer shall not be discharged or denied within sixty (60) days after the
filing thereof; or

                  (f) If a receiver, trustee or liquidator of Tenant of all or
substantially all of the assets of Tenant, or of the Premises or Tenant's estate
therein shall be appointed in any proceeding brought by Tenant, or if any such
receiver, trustee or liquidator shall be appointed in any proceeding brought
against Tenant and shall not be discharged within sixty (60) days after such
appointment; or

                  (g) If Tenant shall fail to maintain the insurance required
under Paragraph 22; or

                  (h) An assignment, sublease or other transfer or change in
restaurant concept in breach of Paragraph 25; or

                  (i) Tenant or a Tenant affiliate shall open or operate an S &
W Concept in the Restricted Area (other than at the Premises pursuant to this
Lease) during the Term.

                  (j) If Tenant shall fail to observe or perform any of the
covenants, conditions and agreements of this Lease other than those referred to
in Paragraph 20.1 (a) through (i) above, and such failure shall continue for a
period of thirty (30) days after written notice to Tenant of such failure;
provided, however, that if such failure is not reasonably capable of being cured
within such thirty (30)-day period, then so long as Tenant has commenced
curative action within such period and thereafter continues to diligently pursue
such curative action, such thirty (30)-day period shall be extended for the
period necessary to cure such default, but not more than ninety (90) days,
inclusive of the original thirty (30)-day period.

            20.2 LANDLORD'S REMEDIES. If an Event of Default shall have occurred
and is continuing Landlord shall have the following rights and remedies then or
at any time thereafter, the election of which, singly or one or more in
combination with each other, shall be at the sole option of Landlord:

                                      -17-
<PAGE>

                  (a) To make any payment required to be made by Tenant or to do
any act required to be done by Tenant, provided that the making of any such
payment or the expense of doing such act by Landlord shall constitute Additional
Rent hereunder due and payable together with interest and late charges with the
installment of Monthly Base Rent next due, but the making of such payment or the
doing of such act by Landlord shall not operate to cure such Event of Default or
to estop Landlord from the pursuit of any remedy to which Landlord would
otherwise be entitled.

                  (b) To terminate this Lease by written notice to Tenant,
whereupon this Lease shall end and all rights of Tenant (but not the liability
of Tenant) hereunder shall expire and terminate, any other notice to quit or
notice of Landlord's intention to re-enter the Premises being hereby expressly
waived by Tenant. Upon such termination by Landlord, Tenant will at once
surrender possession of the Premises to Landlord and remove all of Tenant's
Personal Property therefrom, and Landlord may forthwith re-enter and repossess
the Premises and remove all persons and effects therefrom, by summary
proceeding, ejectment or other legal action or by using such force as may be
permitted. Landlord shall be under no liability by reason of any such reentry,
repossession or removal.

                  (c) To enter upon and take possession of the Premises and
expel or remove Tenant and any other person who may be occupying the Premises or
any part thereof, without being liable for prosecution or any claim for any
damages or liability therefor and without terminating this Lease, and, if
Landlord so elects, make such Alterations and repairs as, in Landlord's absolute
discretion, may be necessary to relet the Premises or any part thereof, without
notice to Tenant, for such rent and such use, and for such period of time and
subject to such terms and conditions as Landlord may deem advisable, and receive
the rent therefor. Upon each such reletting, all rent received by Landlord from
such reletting shall be applied, first, to the payment of any obligations of
Tenant to Landlord hereunder, including interest thereon, other than any Rent;
second, to the payment of any costs and expenses of such reletting, including
brokerage fees, reasonable attorneys' fees and the costs of Alterations, and
repairs; third, to the payment of any Monthly Base Rent, Percentage Rent and
Additional Rent due and unpaid, together with interest and late charges; and the
residue, if any, shall be held by Landlord and applied in payment of future Rent
as the same may become due and payable hereunder. Tenant agrees to pay Landlord,
on demand, any deficiency that may arise by reason of such reletting. Landlord
shall not be liable for any failure to relet the Premises or any part thereof or
for any failure to collect any rent due upon any such reletting. Notwithstanding
any such reletting without termination, Landlord may at any time thereafter
elect to terminate this Lease for such prior default.

            20.3 EXTENT OF LIABILITIES. If Landlord terminates this Lease or
Tenant's right of possession of the Premises pursuant to Paragraph 20.2 hereof:

                  (a) Tenant shall remain liable for and shall pay on demand by
Landlord (i) the full amount of all Monthly Base Rent, Percentage Rent and
Additional Rent

                                      -18-
<PAGE>

which would have accrued until the date on which this Lease would have expired
had such termination not occurred, and any and all damages and expenses incurred
by Landlord in reentering and repossessing the Premises, in making good any
default of Tenant, in making any Alterations to the Premises, in protecting and
preserving the Premises, and in reletting the Premises, and any and all expenses
which Landlord may incur during the occupancy of any new tenant, LESS (ii) the
net proceeds of any reletting of the Premises which has occurred at the time of
the aforesaid demand by Landlord to Tenant. Tenant agrees to pay to Landlord the
difference between items (i) and (ii) above for the period through and including
the date on which this Lease would have expired if it had not been terminated.
Landlord shall be entitled to any excess with no credit to Tenant. Landlord may,
in its sole discretion, make demand on Tenant as aforesaid on any one or more
occasions, and any suit brought by Landlord to enforce collection of such
difference for any one month shall not prejudice Landlord's right to enforce the
collection of any difference for any subsequent month or months. In addition to
the foregoing, and without regard to whether this Lease has been terminated,
Tenant shall pay to Landlord all costs incurred by Landlord, including
reasonable attorneys' fees, with respect to any lawsuit or action instituted or
taken by Landlord to enforce the provisions of this Lease. Tenant's liability
shall survive the institution of summary proceedings and the issuance of any
warrant hereunder.

                  (b) If Landlord determines that it is impracticable or
extremely difficult to fix the actual damages, then, as an alternative to the
remedy set forth in subparagraph (a), Tenant will pay to Landlord on demand,
liquidated and agreed final damages for Tenant's default calculated in
accordance with this paragraph. Liquidated damages hereunder shall be an amount
equal to the excess, if any, of (i) all Monthly Base Rent, Percentage Rent and
Additional Rent payable under this Lease from the date of such demand for what
would be the then unexpired term of this Lease in the absence of such
termination, over (ii) the then fair market rental value of the Premises, as
reasonably determined by Landlord. If any law shall limit the amount agreed
upon, Landlord shall be entitled to the maximum amount allowable under such law.
Nothing herein shall be construed to affect or prejudice Landlord's right to
prove, and claim in full, unpaid rent accrued prior to termination of this
Lease.

                  (c) Tenant's liability for Percentage Rent for each month
following any termination of the Lease or Tenant's right to possession of the
Premises through the unexpired Term hereof shall be computed by dividing (i) the
total of all amounts which Tenant was liable to pay to Landlord as Percentage
Rent hereunder from the Commencement Date until the date upon which this Lease
or Tenant's right to possession of the Premises was terminated (or the day
Tenant ceased conducting business from the Premises, if such date is earlier) by
(ii) the number of months in the Term prior to such date.

            20.4 TENANT'S WAIVER. Tenant, on its own behalf and on behalf of all
persons claiming through or under Tenant, including, but not limited to, all
creditors, does hereby specifically waive any and all rights and privileges
which Tenant and all such persons might otherwise have under any present or
future law (a) to redeem the Premises, or (b) to the benefit of any law which
exempts property from liability for debt or for distress for rent.

            20.5 LANDLORD'S LIEN. Landlord shall have (in addition to all other
rights) a right of distress for rent and a lien on all Tenant Work and the
Tenant's Personal Property as security for all Monthly Base Rent, Percentage
Rent and Additional Rent payable under this

                                      -19-
<PAGE>

Lease. In order to perfect and enforce said lien, Landlord may, at any time
after default by Tenant in the payment of Rent or default of other obligations
to be performed or complied with by Tenant under this Lease, seize and take
possession of any and all of the Tenant Work and the Tenant's Personal Property.
If Tenant fails to redeem the property so seized, by payment of whatever sum may
be due Landlord under and by virtue of the provisions of this Lease, then and in
that event, Landlord shall have the right, after twenty (20) days written notice
to Tenant of its intention to do so, to sell Tenant's property so seized at
public or private sale and upon such terms and conditions as to Landlord may
appear advantageous, and after the payment of all proper charges incident to
such sale, apply the proceeds thereof to the payment of any balance due to
Landlord on account of Rent or other obligations of Tenant pursuant to this
Lease. In the event there shall then remain in the hands of Landlord any balance
realized from the sale of Tenant's property as aforesaid, the same shall be paid
over to Tenant. The exercise of the foregoing remedy by Landlord shall not
relieve or discharge Tenant from any deficiency owed to Landlord which Landlord
has the right to enforce pursuant to any other provision of this Lease. Upon
Tenant's written request, Landlord agrees to subordinate its Landlord's lien to
(i) any purchase money loan provided to purchase specific items of equipment or
furniture, (ii) the lien securing a working capital loan or similar line of
credit in favor of any bona-fide third-party lender, as long as such purchase
money or other lender enters into a landlord's subordination agreement
reasonably acceptable to Landlord (which agreement shall, in all events, require
the secured party to provide reasonable advance written notice to Landlord of
its intent to remove any of Tenant's property from the Premises and require the
secured party to promptly repair all damage to the Premises occasioned by the
removal of Tenant's property) and (iii) any lessor of specific equipment leased
to Tenant.

            20.6 REMEDIES CUMULATIVE. Pursuit of any of the foregoing remedies
shall not preclude Landlord from pursuing any other remedies herein or at law or
in equity provided, nor shall pursuit of any remedy by Landlord constitute a
forfeiture or waiver of any Monthly Base Rent or Additional Rent due hereunder
or of any damages accruing to Landlord by reason of Tenant's violation of any
provisions of this Lease.

            20.7 LANDLORD'S DEFAULT. Tenant agrees to provide written notice to
Landlord and any lender having a lien on the Building or Land (provided such
lender so requests of Tenant in writing) in the event Landlord breaches any of
its obligations hereunder. In the event Landlord (or Landlord's lender) shall
fail to cure any such breach within thirty (30) days after receipt of written
notice from Tenant (or if such breach is not reasonably capable of being cured
within thirty (30) days, such additional period as may reasonably be necessary
to cure the same with due diligence), THEN Landlord shall be in default
hereunder, and Tenant shall be entitled to bring an action for damages or
injunctive relief against Landlord.

      21. UTILITIES. Tenant shall procure, at its own cost and expense, all gas,
electricity, heat, telephone, cable television and other utility services it may
desire directly from the local utility provider. Tenant shall procure separate
metering for its electric and other utility usage. Tenant acknowledges that
Landlord shall have no obligation to furnish any utilities or services to Tenant
whatsoever. In no event shall Landlord have any obligation to Tenant should any
of such services be suspended reduced, eliminated or curtail and in no event
shall the Rent payable by Tenant hereunder be reduced, deferred or otherwise
affected on account thereof.

                                      -20-
<PAGE>

      22. TENANT'S INSURANCE.

            22.1 LIABILITY INSURANCE. Tenant, at Tenant's expense, shall carry
and keep in full force and effect at all times during the Term of this Lease for
the protection of Landlord and Tenant, public liability insurance and liquor
liability insurance, each with limits of at least Five Million Dollars and
No/100 ($5,000,000.00) in the aggregate and Two Million Dollars ($2,000,000.00)
for each occurrence.

            22.2 TENANT'S CASUALTY AND PROPERTY INSURANCE. Tenant, at Tenant's
expense, shall further carry a fire and extended "all risk" insurance policy
including extended coverage endorsement for the risks of water escape and
leakage from fire protective devices covering the entire Building and the
Premises and all of Tenant's Personal Property, in each case for not less than
the full replacement cost thereof. Tenant shall procure (i) fire and extended
coverage and casualty insurance covering the entire Building and the Premises,
all structural elements thereof and all systems therein (including portions
thereof installed as a part of the Tenant Work) for the full replacement costs
thereof, (ii) liability insurance, (iii) umbrella insurance, (iv) flood
insurance, and (v) such other insurance policies which Landlord determines are
necessary to afford all appropriate coverage for the Premises, all in amounts,
with deductibles and with companies reasonably acceptable to Landlord. Subject
to the requirements of any financing secured by the Land and/or the Building,
all proceeds of such insurance shall be used to repair or replace the building
and items so insured, unless this Lease is terminated pursuant to the provisions
of Paragraph 18 hereof. In the event Landlord's lender does not permit
disbursement of such insurance proceeds for repair, replacement or restoration,
neither Landlord nor Tenant shall have any obligation to rebuild, repair or
replace, except as otherwise expressly set forth in this Lease. All personal
property in the Premises, shall remain at Tenant's sole risk and Landlord shall
not assume any liability or be liable for any damage to or loss of such personal
property, arising from the bursting, overflowing or leaking of the roof or of
water, sewer or steam pipes, or from heating or plumbing fixtures or from the
handling of electric wires or fixtures or from any other cause whatsoever.

            22.3 POLICY REQUIREMENTS. The public liability and property damage
insurance policies and any other insurance policies carried by Tenant with
respect to the Premises shall (i) be issued in form reasonably acceptable to
Landlord and Landlord's lender by good and solvent insurance companies qualified
to do business in the jurisdiction in which the Building is located and
reasonably approved by Landlord; (ii) designate as additional insureds Landlord,
Tenant and mortgagees, as their interests may appear, with respect to the Land
or the Building, and any other parties in interest from time to time reasonably
designated in writing by notice from Landlord to Tenant; (iii) be written as
primary policy coverage and not contributing to or in excess of any coverage
which Landlord may carry; (iv) provide for thirty (30) days' prior written
notice to Landlord of any cancellation or other expiration of such policy or any
defaults thereunder; and (v) contain an express waiver of any right of
subrogation by the insurance company against Landlord and mortgagees with
respect to the Land or the Building, and the employees and agents of each of the
foregoing, as to property damage. Neither the issuance of any insurance policy
required hereunder nor the minimum limits specified herein with respect to
Tenant's insurance coverage shall be deemed to limit or restrict in any way
Tenant's liability arising under or out of this Lease. On or before the
Commencement Date and, thereafter, not less than thirty (30) days before the
expiration of the insurance policy in question, Tenant shall

                                      -21-
<PAGE>

deliver to Landlord a certificate of insurance issued by the insurer, as to each
policy of insurance required to be maintained by Tenant under this Lease.

            22.4 ADDITIONAL INSURANCE. Tenant shall replace any damaged glass
with glass of like kind and quality at Tenant's expense within seventy-two (72)
hours after the damage occurs from any cause whatsoever. Failure to replace any
damaged glass as herein provided shall constitute a default under this Lease.

            22.5 EFFECT OF TENANT'S ACTIVITIES ON INSURANCE. Tenant shall not
conduct or permit to be conducted any activity, or place any equipment in or
about the Land or the Building which will increase the rate of, or make void or
voidable, any fire or other insurance maintained by Landlord or any mortgagee on
the Building, the Land or the property kept thereon or therein, which will
conflict with the provisions of any such insurance policy or which will make it
impracticable for Landlord to obtain insurance covering any risks against which
Landlord reasonably deems it advisable to obtain insurance. In the event any
increases in the rates of such insurance are, in Landlord's reasonable judgment,
due to Tenant's presence in the Premises, to any activity conducted or property
installed or placed by Tenant on or about the Premises or to Alterations
installed by Tenant or at Tenant's request, Tenant shall reimburse Landlord for
the amount of such increases promptly upon demand therefor. Statements by the
applicable insurance company or insurance rating bureau that such increases are
due to any activity, property or improvements shall be conclusive for the
purposes of determining Tenant's liability hereunder.

      23. TENANT'S INSURANCE. Tenant's insurance under Section 22 is the primary
coverage for the Land, the Building and the Premises, and is not in addition to
(or to be affected by) any insurance which Landlord may elect to carry for its
own benefit.

      24. WAIVER OF SUBROGATION. In any case in which Tenant shall be obligated
to pay to Landlord any loss, cost, damage, liability or expense suffered or
incurred by Landlord, Landlord shall allow to Tenant as an offset against the
amount thereof the net proceeds of any insurance collected by Landlord for or on
account of such loss, cost, damage, liability or expense, or the net proceeds
which would have been collected if Landlord had procured the insurance required
of it hereunder, whether or not actually procured by Landlord. In any case in
which Landlord shall be obligated to pay to Tenant any loss, cost, damage,
liability or expense suffered or incurred by Tenant, Tenant shall allow to
Landlord as an offset against the amount thereof the net proceeds of any
insurance collected by Tenant for or on account of such loss, cost, damage,
liability or expense or the maximum amount which would have been collectible had
Tenant procured the insurance policies required of it pursuant to this Lease,
whether or not actually procured by Tenant. Landlord and Tenant agree that each
insurance policy described above, or otherwise covering the Premises or any part
thereof, or personal property, fixtures and equipment located thereon and
therein, shall contain a clause or endorsement pursuant to which the insurance
companies waive subrogation and consent to a waiver of right of recovery.
Landlord and Tenant further agree that each will not make any claim against or
seek to recover from the other for any loss, cost, damage, liability, expense or
peril covered by such insurance.

                                      -22-
<PAGE>

      25. ASSIGNMENT AND SUBLETTING.

            25.1 GENERAL PROVISIONS.

                  (a) Tenant shall not, directly or indirectly, voluntarily or
involuntarily (i) assign, mortgage, pledge, encumber or otherwise transfer this
Lease or any of its rights hereunder, (ii) sublet the Premises or any part
thereof, or permit the use of the Premises or any part thereof by any persons
other than Tenant or its employees, agents and invitees, (iii) permit the
assignment or other transfer of this Lease or any of Tenant's rights hereunder
by operation of law or otherwise, or (iv) change the restaurant concept in the
Premises from the S & W Concept, in each case without the prior written consent
of Landlord, which consent, subject to the other provisions of this Paragraph
25, shall not be unreasonably withheld, conditioned or delayed. Tenant shall
reimburse Landlord for its reasonable attorney's fees incurred in reviewing any
requested consent, whether or not consent is ultimately given.

                  (b) The consent by Landlord to any change in restaurant
concept or to assignment, subletting or transfer to any person is not to be
construed as a waiver or release of Tenant from any provision of this Lease nor
as a waiver of the necessity for such consent in a subsequent instance. In the
event of any change in restaurant concept at the Premises or assignment,
subletting or other transfer, Tenant shall remain fully liable as a principal
and not as a guarantor or surety under this Lease. Neither an assignment,
subletting or other transfer or change in restaurant concept at the Premises nor
the collection of rent by Landlord from any person other than Tenant, nor the
application of any such rent as provided in this Paragraph, shall be deemed a
waiver of any of the provisions of this Paragraph or release Tenant from its
obligation to comply with the provisions of this Lease, and Tenant shall remain
fully and primarily liable for all of Tenant's obligations under this Lease. If
this Lease is assigned, whether or not in violation of the provisions of this
Lease, Landlord may collect rent from the assignee. If the Premises or any part
thereof is sublet, Landlord may, upon an Event of Default by Tenant hereunder,
collect rent from the subtenant. In either event, Landlord may apply the amount
collected from the assignee or subtenant to Tenant's monetary obligations
hereunder. For purposes of this paragraph, a transfer or transfers of fifty
percent (50%) or more in interest of Tenant (whether interests in a limited
liability company, stock, partnership interest or other form of ownership or
control) by any person or persons having an interest in ownership or control of
Tenant, or the merger of Tenant into another organization after which merger
Tenant shall not be the surviving entity, shall be deemed an assignment of this
Lease for which the Landlord's consent must be obtained. The initial public
offering of Tenant's stock or the transfers of publicly traded shares of stock
in Tenant made in the ordinary course, and not as a part of any takeover
attempt, merger, consolidation, capital or similar transaction or other
transaction intended to effect a change in the operating control of Tenant,
shall not constitute a prohibited assignment or transfer for purposes of this
Paragraph 25. Any lawful levy or sale or execution or other legal process shall
be classified as an assignment within the meaning of this Lease, as shall be an
adjudication in bankruptcy, voluntary or involuntary, or an appointment of a
receiver by a state or Federal Court, or insolvency of Tenant, or the execution
of a deed or other instrument for the benefit of creditors. Any assignment,
subletting, transfer or change in restaurant concept at the Premises without
Landlord's prior written consent shall, at Landlord's option, be void and shall
constitute an Event of Default under this Lease entitling Landlord to terminate
this Lease and to exercise all other remedies available to Landlord under this
Lease or at law or in equity.

                                      -23-
<PAGE>

                  (c) Notwithstanding the provisions of subsection (a) of this
Paragraph, Landlord shall not unreasonably withhold, delay, or condition its
consent to a proposed assignment or subletting of the Premises or change in
restaurant concept at the Premises by Tenant provided all of the following
conditions, are satisfied in Landlord's reasonable discretion (the "Transfer
Conditions"):

                        (i) No Event of Default exists under this Lease and no
event exists which may become an Event of Default with the giving of notice or
the passage of time or both;

                        (ii) Landlord receives at least thirty (30) days' prior
written notice of Tenant's intention to assign, sublet, or transfer or change in
the restaurant concept at the Premises;

                        (iii) The proposed assignee or subtenant provides
Landlord with satisfactory and realistic annualized sales projections indicating
Gross Receipts at least equal to the highest annual Gross Receipts generated by
Tenant during the preceding three (3) Lease Years of the Term or, in the case of
a change in the restaurant concept at the Premises, the reasonably estimated
annual sales projections of Gross Receipts expected to be generated by Tenant
using the new restaurant concept at the Premises;

                        (iv) The proposed assignee or subtenant is experienced
in, and has a track record of, successful operation of "white table cloth"
restaurants (as such term is commonly understood in the District of Columbia
restaurant trade) similar to Tenant's business in the Premises (but not
necessarily limited to the same cuisine as the initial tenant), has a good
reputation in the restaurant industry, will maintain the same level of service
and usage, and is not an entity to which Landlord or an affiliate of Landlord
has made a prior decision not to lease space in its buildings or with which
Landlord has had adverse dealings;

                        (v) The proposed use of the Premises complies with the
provisions of Paragraph 11.1 and have a decor and physical layout that is
consistent with the aesthetics and first-class quality of the then-existing
Premises;

                        (vi) The proposed assignee or subtenant is not a party
by whom any suit or action could be defended on the grounds of sovereign or
diplomatic immunity;

                        (vii) The proposed subtenant or assignee has sufficient
financial strength to satisfy all of its rental and other obligations under this
Lease;

                        (viii) Tenant or the proposed assignee or subtenant
submits to Landlord sufficient information upon which Landlord can reasonably
base an informed judgment on the above criteria, including, in addition to such
other information as Landlord shall require, the name, business experience,
financial position (including, without limitation, its most recent audited
financial statements), and business references (including any landlords in other
locations) of the proposed subtenant or assignee, a description of the proposed
transaction which shall include any and all documents relating thereto, the
consideration to be delivered to Tenant for the assignment or sublease, and the
identity of any partners, members, or principals of subtenant or assignee who
may be involved in such a transaction, regardless of whether it is the intention
of

                                      -24-
<PAGE>

such parties to actively participate in the operation of the Premises, the
identity of any broker entitled to a commission in respect of such subletting or
assignment and the commission, if any, payable to such broker, and any other
information reasonably requested by Landlord; and

                        (ix) Tenant shall deliver a copy of any proposed
assignment or sublease with the notice referred to in subparagraph (ii) above
for approval by Landlord provided that: (a) any such assignment shall include an
assumption by the assignee, from and after the effective date of such
assignment, of the performance and observance of the covenants, conditions and
obligations to be performed and observed on the part of Tenant contained in this
Lease; (b) any such sublease shall specify that such sublease shall not be
further assigned nor the Premises further sublet except in strict accordance
with the provisions of this Lease and shall specify that the term of such
sublease shall not extend beyond one day prior to the expiration of this Lease;
and (c) any such sublease or assignment shall provide that Landlord shall be
entitled, in its sole discretion, to treat said agreement as void in the event
such sublessee or assignee has not obtained its liquor license(s) from the
governmental authorities responsible for liquor licenses within four (4) months
after such conditional transfer, notwithstanding Landlord shall have previously
granted its consent thereto; and

                        (x) Neither the proposed subtenant or assignee (as then
constituted), nor any "Affiliate") (as hereinafter defined) of such party has a
history of late payments, defaults, bankruptcies, court cases or other property
management problems (excluding problems attributable to any predecessor of such
assignee or subtenant that does not then control or have an ownership interest
in such party); and

                        (xi) The Guarantor signs and delivers to Landlord an
agreement in form and substance satisfactory to Landlord wherein such Guarantor
consents to the assignment, subletting or transfer or change in restaurant
concept at the Premises and reaffirms its obligations under the Guaranty. For
purposes hereof, an "Affiliate" shall mean an entity owned or controlled by, or
under common control with, whether directly or indirectly, the proposed assignee
or subtenant, or an entity in which the proposed assignee or subtenant controls
or has direct or indirect ownership interest. Landlord shall respond to any
consent for approval to any proposed assignment or subletting or change in
restaurant concept at the Premises within sixty (60) days following any request
therefor, accompanied by such additional information pertaining to the proposed
assignee or subtenant or the change in restaurant concept at the Premises as
Landlord may reasonably request. Notwithstanding any assignment, subletting or
transfer or change in restaurant concept at the Premises pursuant to this
paragraph, Tenant shall remain fully and primarily liable for the payment and
performance of, and compliance with, all of its obligations under this Lease
(including, without limitation, compliance with the prohibition set forth in
Paragraph 6.5.2 [last sentence]).

                  (d) Documentation. No permitted assignment or subletting by
Tenant shall be effective until there has been delivered to Landlord a fully
executed counterpart of the assignment or sublease which expressly provides that
(i) the assignee or subtenant may not further assign or sublet the assigned or
sublet space without Landlord's prior written consent (which, in the case of a
further assignment proposed by an assignee, shall not be unreasonably withheld,
subject to Landlord's rights under the provisions of this Paragraph), (ii) the
assignee or

                                      -25-
<PAGE>

subtenant will comply with all of the provisions of this Lease pertaining to
such sublet space, and Landlord may enforce the Lease provisions directly
against such assignee or subtenant, (iii) in the case of an assignment, the
assignee assumes all of Tenant's obligations under this Lease arising on or
after the date of the assignment, and (iv) in the case of a sublease, the
subtenant agrees to be and remain jointly and severally liable with Tenant for
the payment of rent pertaining to the sublet space in the amount set forth in
the sublease, and for the performance of all of the terms and provisions of this
Lease applicable to such sublet space. In addition to the foregoing, no sublease
by Tenant shall be effective until there has been delivered to Landlord a fully
executed counterpart of Landlord's consent to sublease form. The failure or
refusal of a subtenant or assignee to execute any such instrument shall not
release or discharge the subtenant or assignee from its liability as set forth
above. Notwithstanding the foregoing, however, no subtenant or assignee shall be
permitted to occupy the Premises unless and until such subtenant or assignee
provides Landlord with certificates evidencing that such subtenant or assignee
is carrying all insurance coverage required of such subtenant or assignee under
this Lease.

      26. SIGNS. Tenant shall have the right to install exterior and interior
signage of such size and color, design and location as may reasonably be
designated and approved by Landlord in writing. Such signage shall be installed
and at all times thereafter maintained in good condition and repair and shall be
in conformance with all governmental codes having jurisdiction thereof and
Landlord's reasonable requirements for the preparation of Tenant's signage. In
all events, Tenant's signs shall be subject to approval by the District of
Columbia. Tenant shall make all repairs required by reason of the installation,
maintenance and removal of its signage. Tenant shall be responsible for the
day-to-day maintenance, repair and replacement of all of its signs. Damage to
the signs by fire or other casualty shall be Tenant's responsibility to repair
or replace. At the expiration of Tenant's occupancy of the Premises, Tenant
shall be responsible for removing all signs and repairing any damage to the
Building occasioned thereby.

      27. RULES AND REGULATIONS. Tenant shall comply with the rules and
regulations set forth in Exhibit C attached hereto and with any reasonable
additions thereto and modifications thereof adopted from time to time by
Landlord, and each such rule or regulation shall be deemed to be a covenant of
this Lease to be performed and observed by Tenant.

      28. LANDLORD ACCESS. Landlord may enter the Premises at any time in case
of any emergency and at reasonable hours and upon reasonable notice to exhibit
the same to prospective purchasers, mortgagees or tenants, to inspect the
Premises to see that Tenant is complying with all its obligations hereunder, to
make repairs required of Landlord under the terms hereof or to make repairs to
any adjoining property of Landlord or any entity affiliated with Landlord.
Notwithstanding the foregoing, Landlord shall show the Premises to prospective
tenants only during the last twelve (12) months of the Term.

      29. SUBORDINATION. This Lease is subject and subordinate to the lien of
any and all mortgages (which term "mortgages" shall include deeds of trust and
similar security instruments) and ground or other underlying leases which may
now or hereafter encumber or otherwise affect the Land, the Building, or both,
as well as the obligation to pay any and all renewals, extensions,
modifications, recastings or refinancing thereof; provided, however, that in the
event the mortgagee under any such mortgage, or ground lessor under any such
ground lease, shall require this Lease to be superior and paramount to such
mortgage or ground lease, Tenant agrees to

                                      -26-
<PAGE>

execute and deliver any documents required for such purpose within five (5) days
after delivery of such documents to Tenant. This paragraph shall be
self-operative and no further instruments of subordination need be required by
any mortgagee, trustee or Ground Lessor. Nevertheless, if requested by Landlord,
Tenant shall promptly execute any certificate or other document specified by
Landlord in confirmation of this subordination. Tenant hereby constitutes and
appoints Landlord as Tenant's attorney-in-fact to execute any such certificate
or document on behalf of Tenant if Tenant does not execute it within five (5)
days after receiving it. Tenant agrees that, if any proceedings are brought for
the foreclosure of any such mortgage, Tenant, if requested to do so by the
purchaser at the foreclosure sale, shall attorn to the purchaser, shall
recognize the purchaser as Landlord under this Lease, and shall make all
payments required hereunder to such new Landlord without deduction or setoff.
Tenant waives the provisions of any law or regulation, now or hereafter in
effect, which may give or purport to give Tenant any right to terminate or
otherwise adversely affect this Lease or the obligations of Tenant hereunder in
the event that any such foreclosure or termination or other proceeding is
prosecuted or completed. Anything contained herein to the contrary
notwithstanding, (i) Landlord shall procure for Tenant a subordination,
attornment and non-disturbance agreement signed by Landlord's current mortgagee
in such lender's usual and customary form within sixty (60) days of the
Commencement Date and (ii) Landlord shall endeavor in good faith to procure a
commercially reasonable non-disturbance agreement for Tenant from any future
mortgagee.

      30. ESTOPPEL CERTIFICATES; FINANCIAL STATEMENTS.

            30.1 ESTOPPEL CERTIFICATE. Tenant shall, without charge, at any time
and from time to time, within ten (10) business days after the request by
Landlord, any ground lessor, the holder of any indebtedness secured by the Land,
the Building or both, or any prospective purchaser of the Land, the Building or
both, or to any other person or entity designated by Landlord, execute,
acknowledge and deliver to such requesting party a written estoppel certificate
certifying, as of the date of such certificate: (a) that this Lease is
unmodified and in full force and effect (or if there has been a modification,
that the Lease is in full force and effect as modified and setting forth such
modifications); (b) the amounts of Monthly Base Rent, Percentage Rent and
Additional Rent currently due and payable by Tenant; (c) that Tenant has
accepted possession of the Premises; (d) to the best of Tenant's knowledge,
whether or not there are then existing any setoffs, charges, liens, claims or
defenses against the enforcement of any right hereunder (and, if so, specifying
the same in detail); (e) that Tenant has no knowledge of any then uncured
defaults by Landlord of its obligations under this Lease; (f) that Tenant is not
in default; and (g) to the best of Tenant's knowledge, any other factual
certifications requested. Any statement delivered pursuant to this paragraph may
be relied on by the requesting party. Tenant's failure to timely deliver the
estoppel certificate after request by Landlord immediately shall be deemed an
Event of Default without cure under this Lease.

            30.2 FINANCIAL STATEMENTS. Tenant covenants and agrees that at any
time, within thirty (30) days after notice and demand by Landlord, Tenant will
furnish (and, in the case of Guarantor, caused to be furnished) to Landlord
certified financial statements or annual reports of Tenant and Guarantor as of
the end of Tenant's and Guarantor's last calendar year and Tenant consents to
the delivery of same by Landlord to lenders or prospective lenders or purchasers
of all or part of the Building, the Land or both or of any interest therein.
Such financial statements shall (i) be prepared in accordance with generally
accepted accounting principles consistently

                                      -27-
<PAGE>

applied, (ii) provide reasonably detailed income and expense statements and net
worth determinations of Tenant, and (iii) be certified as true and correct by an
authorized officer of (a) Tenant or Tenant's regular certified public accounting
firm and (b) Guarantor or Guarantor's regular certified public accounting firm.

      31. HOLD-OVER. If Tenant fails to surrender the Premises on the day after
the expiration or termination of the Term, then Tenant shall, at Landlord's
election, become a Tenant at sufferance at a monthly rental equal to twice the
Monthly Base Rent for the last month of the Term. Tenant, as a tenant at
sufferance, shall be subject to all of the conditions and covenants of this
Lease (including payment of Percentage Rent and Additional Rent) as though the
tenancy had originally been a monthly tenancy. During any holdover period, each
party shall give to the other at least thirty (30) days' prior written notice to
quit the Premises, except in the event of a nonpayment of Monthly Base Rent,
Percentage Rent or of Additional Rent when due, or of the breach of any other
covenant by the Tenant, in either of which events Tenant shall not be entitled
to any notice to quit, the usual thirty (30) day's notice to quit being
expressly waived. The foregoing notwithstanding, in the event Tenant shall hold
over after expiration of the Term, Landlord, at its election or option (and in
lieu of accepting such holdover thereof), may re-enter and take possession of
the Premises forthwith, without process, or by any legal action or process in
force in the jurisdiction in which the Building is located. Further, in the
event of any such holdover to which Landlord objects, Tenant shall be liable to
Landlord and any other tenants with an interest in the Premises for any and all
damages incurred as a result of such holdover, and shall in addition pay to
Landlord the reasonable value of its use of the Premises, which is hereby agreed
to be two hundred percent (200%) the Rent under this Lease during the last month
of the Term.

      32. QUIET ENJOYMENT. Landlord covenants that it has the right to make this
Lease and that, if Tenant pays all of the Monthly Base Rent, Percentage Rent and
the Additional Rent, performs all of its obligations provided for hereunder and
observes all of the other provisions hereof on a timely basis, Tenant shall have
the right, during the Term and subject to the provisions of this Lease, to
quietly occupy and enjoy the Premises without hindrance by Landlord or its
successors and assigns, or anyone claiming by, through or under Landlord.

      33. PROHIBITED MATERIALS AND PROPERTY. Tenant shall not bring or permit to
be brought or kept in or on the Premises or elsewhere in the Building any
governmentally regulated quantities of inflammable, combustible, or explosive
fluid, material, chemical or substances (except for standard office or
restaurant supplies stored in proper containers). In addition to the foregoing,
Tenant shall keep the Premises free from governmentally regulated quantities of
pollutants, contaminants, toxic or hazardous waste, or any other substances, the
removal of which is required or the use or maintenance of which is restricted,
prohibited or penalized, by any Federal, state or local law, regulation or
ordinance relating to pollution or the protection of the environment
(collectively, "Hazardous Substances"), and if any Hazardous Substances are
brought or found upon the Premises Tenant shall cause the same to be immediately
removed, with proper disposal, and all required clean-up procedures shall be
diligently undertaken. If at any time during or after the Term hereof the
Premises is found to be contaminated or to contain any Hazardous Substances,
Tenant agrees to indemnify, defend and hold Landlord harmless from and against
any and all claims, actions, demands, liabilities, costs, expenses, damages and
obligations of any nature whatsoever, unless the presence of such substances is
attributable to

                                      -28-
<PAGE>

Landlord or its agents or employees or existed prior to the date of this Lease.
The foregoing indemnification shall survive the termination or expiration of the
Lease. In the event that prior to completion of the Tenant Work Tenant discovers
that the Building or Land contains asbestos or any other Hazardous Substances,
Landlord shall be responsible for the cost of abating the same, provided that
Landlord shall have the right to terminate the Lease in the event the abatement
costs are expected to exceed Twenty Five Thousand and No/100 Dollars
($25,000.00), unless Tenant and its parent company agrees to assume liability
for such additional costs. Tenant agrees, at its sole cost and expense, to
conduct such environmental tests and studies as may be necessary to determine
whether or not the Building or Land contains any asbestos or other Hazardous
Materials promptly following the Effective Date, and to promptly furnish
Landlord with copies of all of such reports.

      34. LANDLORD'S SUCCESSORS. Landlord (and any successor or affiliate of
Landlord) may freely sell, assign or otherwise transfer all or any portion of
its interest under this Lease or in the Building or the Land. In the event of
any such sale, assignment or other transfer, the party originally executing this
Lease as Landlord shall, and any successor or affiliate of such party shall
without further agreement between Landlord and Tenant (or between Landlord
and/or Tenant and the person who is the purchaser, assignee or other transferee
of Landlord), be relieved of any and all of its obligations under this Lease, in
which event Tenant shall thereafter be bound to such purchaser, assignee or
other transferee with the same effect as though the latter had been the original
Landlord hereunder.

      35. ATTORNEYS' FEES. If Tenant shall at any time be in default under this
Lease, and Landlord shall deem it necessary to engage attorneys to enforce its
rights under this Lease, then Landlord, if it is the prevailing party in any
litigation with Tenant, shall be reimbursed for the actual attorneys' fees and
court costs incurred in connection with Tenant's default under this Lease and
such enforcement actions.

      36. NOTICES. Any notice provided, required or permitted to be given by
either party to the other under this Lease must be in writing, and may be served
(i) by depositing the same in the United States mail, addressed to the party to
be notified, postage prepaid, and registered or certified, with return receipt
requested; (ii) by hand delivery with a receipt therefor; (iii) by nationally
recognized overnight delivery service, such as Federal Express, Purolator or
Emery; or (iv) by telecopy or facsimile service. For purposes of notices, the
addresses of the parties shall be as follows:

       If to Landlord:

              2145 K Street, N.W.
              Washington, D.C. 20037
              Attn: Mr. Thaddeus A. Lindner
                    Mr. Sergius Gambal

                                      -29-
<PAGE>

              with copies to:

              Mr. Russell C. Lindner
              The Forge Company
              2145 K Street, N.W.
              Washington, D.C. 20037

                    -and-

              Jerry R. O'Conor, Esquire
              Tucker, Flyer & Lewis, P.C.
              1615 L Street, N.W., Suite 400
              Washington, D.C. 20036-5612

If to Tenant:

              c/o The New York Restaurant Group, Inc.
              1114 First Avenue, 6th Floor
              New York, New York 10021
              Attn: Mr. James Dunn, President

              with a copies to:

              Joseph E. Porcelli, Esquire
              Maloney & Porcelli
              225 Broadway, Suite 2812
              New York, New York 10007-3065

                    -and-

              c/o The New York Restaurant Group, Inc.
              1114 First Avenue, 6th Floor
              New York, New York 10021
              Attn: Mr. Mark Levine

Either party may, by written notice to the other, designate a new address to
which such notices shall be directed. All notices shall be effective upon
receipt or refusal to accept receipt. If any mortgagee shall notify Tenant that
it is the holder of a mortgage affecting the Premises or any part thereof, no
notice, request or demand thereafter sent by Tenant to Landlord shall be
effective until a copy of same shall be sent to such mortgagee in the manner
prescribed in this Section at such address as such mortgagee shall designate.

      37. REMEDIES CUMULATIVE; NO WAIVER. All rights and remedies given herein
and/or by law or in equity to Landlord are separate, distinct and cumulative,
and none of them, whether exercised by Landlord or not, shall be deemed to be in
exclusion of any other. No failure of Landlord to exercise any power given
Landlord hereunder, and no custom or practice of the parties at variance with
the terms hereof shall constitute a waiver of Landlord's right to demand exact
compliance with the terms hereof. Receipt by Landlord of any Monthly Base Rent
or Additional Rent with knowledge of the breach of any provisions hereof shall
not constitute a

                                      -30-
<PAGE>

waiver of such breach and no waiver by Landlord of any provision hereof shall be
deemed to have been made unless made in writing.

      38. FINAL AGREEMENT; SEVERABILITY. This Lease, including all Exhibits
attached hereto, is intended by the parties as the final expression of their
agreement and as a complete and exclusive statement of the terms between the
parties having been incorporated herein. No course of prior dealings between the
parties or their affiliates shall be relevant or admissible to determine the
meaning of any of the terms of this Lease. No representations, understandings or
agreements have been made or relied upon in the making of this Lease other than
those specifically set forth herein. This Lease can only be modified by a
writing signed by all of the parties hereto or their duly authorized agents. If
any term, covenant or condition of this Lease or the application thereof to any
person or circumstance shall be held invalid or unenforceable, the remainder of
this Lease or the application of such term, covenant or condition to persons or
circumstances other than those as to which it is held invalid or unenforceable,
shall not be affected thereby and each term, covenant or condition of this Lease
shall be valid and enforced to the fullest extent permitted by law.

      39. TIME IS OF THE ESSENCE. Time is of the essence of the obligations of
Tenant contained in this Lease, subject to applicable notice and cure periods.

      40. INDEMNITY. Tenant agrees it will defend all actions against Landlord
(including any partners, employees or agents) and that it will indemnify and
save Landlord harmless from and against any and all liabilities, losses,
damages, causes of action, suits, claims, demands, judgments, costs and expenses
of any kind (including court costs and reasonable attorneys' fees) relating to
or arising from or in connection with: (i) the possession, use, occupancy,
management, repair, maintenance or control of the Premises or any portion
thereof; (ii) any act or omission of Tenant or Tenant's agents, sublessees,
contractors, employees or invitees; (iii) any default, violation or injury to
person or property or loss of life sustained in or about the Premises; (iv) any
violation or breach of this Lease by Tenant; or (v) any other matter arising
from Tenant's occupancy or use of the Premises or any act or omission of Tenant,
its agents, sublessees, contractors, employees or invitees. Landlord hereby
agrees to indemnify Tenant and hold Tenant harmless from and against any cost,
damage, liability or expense incurred by Tenant, except for consequential
damages, which (a) results from any willful misconduct or gross negligence of
Landlord or its agents within the Premises and is not covered by the insurance
required to carry by Tenant hereunder; or (b) arises on account of any Hazardous
Substances introduced by Landlord into the Building or otherwise existing as of
the date hereof.

      41. EXCULPATION. Notwithstanding any provision to the contrary contained
herein, Tenant shall look solely to the estate and property of Landlord in and
to the Land and the Building in the event of any claim against Landlord arising
out of or in connection with this Lease, the relationship of Landlord and
Tenant, or Tenant's use of the Premises, and Tenant agrees that the liability of
Landlord arising out of or in connection with this Lease, the relationship of
Landlord and Tenant, or Tenant's use of the Premises, shall be limited to such
estate and property of Landlord in and to the Land and the Building. No
properties or assets of Landlord other than the estate and property of Landlord
in the Land and the Building and no property owned by any partner or owner of
Landlord shall be subject to levy, execution or other enforcement proceedings or
other judicial process for the satisfaction of any judgment or for the

                                      -31-
<PAGE>
satisfaction of any other remedy of Tenant arising out of or in connection with
this Lease, the relationship of Landlord and Tenant or Tenant's use of the
Premises.

      42. NO LIABILITY. Landlord shall not be liable to Tenant, its employees,
agents, contractors, business invitees, licensees, customers, clients, family
members or guests for any damage, compensation or claim arising from (i) (any
accident or damage resulting from the use or operation (by Landlord, Tenant or
any other person or persons whatsoever) of elevators or heating,
air-conditioning, electrical, plumbing or other equipment, appliance or
apparatus, (ii) the termination of this Lease by reason of the destruction of
the Premises, (iii) any fire, explosion or other casualty, (iv) any robbery,
theft, mysterious disappearance or vandalism, (v) any dampness or leakage in any
portion of the Premises or Building from water, rain, snow, ice, drains, pipes
or plumbing, (vi) any falling plaster, tile or other building material, (vii)
any leakage, emanation or disturbance caused by steam, gas or electricity,
(viii) any latent defect in the Building, (ix) any personal injury arising from
the use, occupancy and condition of the Premises, or (x) any other cause
whatsoever; PROVIDED that if any of the foregoing is caused by the negligence of
Landlord or a willful act or failure to act on the part of Landlord, Landlord
shall be liable to Tenant for any actual damages suffered by Tenant as a direct
result of such gross negligence or willful misconduct, except to the extent the
risk of any such loss is allocated to Tenant's insurance pursuant to this
paragraph and Paragraph 22 above. In no event shall Landlord, or its agents or
employees, have any liability to Tenant for lost profits or any consequential
damages whatsoever, Tenant shall not be entitled to any abatement or diminution
of Rent as a result of any of the foregoing occurrences, nor shall the same
release Tenant from its obligations hereunder or constitute an eviction. It is
expressly understood and agreed that Tenant shall look to its insurance policies
and not to Landlord or its agents or employees for reimbursement for any damages
or losses incurred as a result of any of the foregoing occurrences, and that
said policies must contain waiver of subrogation clauses as herein provided.

      43. NO PARTNERSHIP. Nothing contained in this Lease shall be deemed or
construed to create a partnership or joint venture between Landlord and Tenant
or create any other relationship between the parties hereto other than that of
Landlord and Tenant.

      44. BROKERAGE. Landlord and Tenant each represents to the other that it
has not had dealings with any real estate broker, finder or other person, with
respect to this Lease in any manner other than Equis Corporation, whose
commissions shall be paid by Landlord pursuant to a separate agreement. Landlord
and Tenant each agree to indemnify and hold the other harmless from and against
any breach of the foregoing representation and all costs, expenses and
liabilities in connection therewith, including, without limitation, reasonable
attorneys' fees and expenses, arising out of any dealings Tenant had with any
broker, finder or other persons.

      45. TENANT'S AUTHORITY. Tenant shall, concurrently with the signing of
this Lease, furnish to Landlord certified copies of the resolutions of its board
of directors authorizing Tenant to enter into this Lease. Moreover, each
individual executing this Lease on behalf of Tenant hereby represents and
warrants that (i) he or she is duly authorized to execute and deliver this
Lease, (ii) Tenant is a duly organized corporation under the laws of the State
of Delaware, is qualified to do business in the District of Columbia, is in good
standing under the laws of the State of Delaware and the laws of the District of
Columbia, and has the power and authority to

                                      -32-
<PAGE>

enter into this Lease, and (iii) all corporate action requisite to authorize
Tenant to enter into this Lease has been duly taken.

      46. LANDLORD'S COURTESY ACCOUNT. Tenant shall provide Landlord (or its
designees) with a restaurant credit of Five Thousand Dollars ($5,000.00) for
each Lease Year or part thereof during the Term to be applied toward the
purchase of food and liquor.

      47. GOVERNING LAW; CONSTRUCTION. The provisions of this Lease shall be
governed and construed according to the internal laws of the District of
Columbia (without regard to its law relating to choice or conflicts of law).
Should any provision of this Lease require judicial interpretation, it is agreed
that the court interpreting or considering same shall not apply the presumption
that the provisions hereof shall be more strictly construed against a party by
reason of the rule or conclusion that a document should be construed more
strictly against the party who itself or through its agent prepared the same, it
being agreed that all parties hereto have participated in the preparation of
this Lease and that each party consulted legal counsel before the execution of
this Lease.

      48. BENEFIT AND BURDEN; NO RECORDING. Subject to the provisions of
Paragraphs 25 and 34 above, the provisions of this Lease shall be binding upon,
and shall inure to the benefit of, the parties hereto and each of their
respective representatives, successors and assigns. Neither this Lease nor any
memorandum or notice thereof shall be recorded by Tenant without the express,
prior written consent of Landlord, and any such recordation by Tenant in
violation of this paragraph shall be null and void and of no force or effect and
shall constitute an Event of Default.

      49. NO FURTHER REPRESENTATIONS OR WARRANTIES. This Lease as written,
contains all the terms of the agreement entered into between the parties as of
the date hereof, and Tenant expressly acknowledges that Landlord has made no
representations or warranties whatsoever, and held out no inducements to lease,
other than those expressly set forth in this Lease. Without limiting the
generality of the foregoing, Tenant acknowledges that it has not relied on (and
Landlord has not made) any representations or warranties (express or implied)
other than as expressly set forth in this Lease as to (i) the current or future
Real Estate Tax liability, assessment or valuation of the Premises; (ii) the
potential qualification of the Premises for any and all benefits conferred by
Federal, state or municipal laws, whether for subsidies, special real estate tax
treatment, insurance, financing or refinancing or any other benefits, whether
similar or dissimilar to those enumerated; (iii) the compliance of the Premises
with applicable zoning ordinances and the ability to obtain a change in the
zoning or a variance in respect to the Premises from any source, including, but
not limited to, the District of Columbia or the Federal government or any
institutional lender; (v) the present and future condition and operating state
of any and all machinery or equipment or personal property (if any) on the
Premises and the present or future structural and physical condition of the
Building or its suitability for rehabilitation or renovation; (vi) the presence
or absence of any laws, ordinances, rules or regulations issued by any
governmental authority, agency or board and any violations thereof; and (vii)
the layout, leases, rents, income, expenses or operation relating to, the
Premises or any part thereof. Landlord is not liable or bound in any manner by
any verbal or written statements pertaining to the Premises or the operation,
layout, expenses, condition or income, furnished by any real estate broker,
agent, employee, or other person, unless the same are specifically set forth in
this Lease.

                                      -33-
<PAGE>

      50. WAIVER OF JURY TRIAL; TENANT'S AGENT; CONSENT TO JURISDICTION

      50.1 WAIVER OF JURY TRIAL.

            TO INDUCE THE OTHER PARTY TO ENTER INTO THE LEASE, LANDLORD AND
TENANT EACH WAIVES ANY RIGHT TO A TRIAL BY JURY OF ANY OR ALL ISSUES ARISING IN
ANY ACTION OR PROCEEDING BETWEEN LANDLORD AND TENANT OR THEIR SUCCESSORS OR
ASSIGNS, UNDER OR CONNECTED WITH THIS LEASE OR ANY OF ITS PROVISIONS. THIS
WAIVER IS KNOWINGLY, INTENTIONALLY AND VOLUNTARILY MADE BY LANDLORD AND TENANT,
AND LANDLORD AND TENANT EACH ACKNOWLEDGES THAT NEITHER LANDLORD OR TENANT NOR
ANY PERSON ACTING ON BEHALF OF LANDLORD OR TENANT HAS MADE ANY REPRESENTATIONS
OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR
NULLIFY ITS EFFECT. LANDLORD AND TENANT EACH FURTHER ACKNOWLEDGES THAT IT HAS
BEEN REPRESENTED IN THE SIGNING OF THIS LEASE AND IN THE MAKING OF THIS WAIVER
BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD
THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. LANDLORD AND TENANT EACH
FURTHER ACKNOWLEDGES THAT IT HAS READ AND UNDERSTANDS THE MEANING AND
RAMIFICATIONS OF THIS WAIVER PROVISION.

            50.2 CONSENT TO JURISDICTION. LANDLORD AND TENANT EACH CONSENTS TO
AND SUBMITS TO IN PERSONAM JURISDICTION AND VENUE IN THE DISTRICT OF COLUMBIA,
AND IN THE FEDERAL DISTRICT COURTS WHICH ARE LOCATED IN THE DISTRICT OF
COLUMBIA. LANDLORD AND TENANT EACH ASSERTS THAT IT HAS PURPOSEFULLY AVAILED
ITSELF OF THE BENEFITS OF THE LAWS OF THE DISTRICT OF COLUMBIA AND WAIVES ANY
OBJECTION TO IN PERSONAM JURISDICTION ON THE GROUNDS OF MINIMUM CONTACTS, WAIVES
ANY OBJECTION TO VENUE, AND WAIVES ANY PLEA OF FORUM NON CONVENIENS, THIS
CONSENT TO AND SUBMISSION TO JURISDICTION IS WITH REGARD TO ANY ACTION RELATED
TO THIS LEASE. REGARDLESS OF WHETHER LANDLORD OR TENANT'S ACTIONS TOOK PLACE IN
THE DISTRICT OF COLUMBIA OR ELSEWHERE IN THE UNITED STATES, THIS SUBMISSION TO
JURISDICTION IS NONEXCLUSIVE, AND DOES NOT PRECLUDE THE OTHER PARTY FROM
OBTAINING JURISDICTION OVER TENANT OR LANDLORD IN ANY COURT OTHERWISE HAVING
JURISDICTION.

                                      -34-
<PAGE>

                                    EXHIBIT A

                           Legal Description of Land
<PAGE>

                                    EXHIBIT A

                Metes & Bounds Description - Lot 877, Square 117

      Part of Original Lot 28 and all of Original Lot 29, per plat recorded in
Book 4, page 1151 (said Lot 29 also being Lots 45, 46 and 47, per plat recorded
in Book 11, page 62), and part of Alley Closed, per plat recorded in Book 146,
page 86; all in Square 117 and all as found among the records of the Office of
the Surveyor for the District of Columbia, more particularly described, in one
piece, as follows:

      Beginning at the southeast corner of said Original Lot 29, said beginning
being a point on the west line of 19th Street, 110 feet wide, removed North,
126.0 feet from the intersection of said west line of 19th Street and the north
line of L Street, 90 feet wide, and leaving said beginning and running with the
south line of said Original Lot 29, West, 91.92 feet; thence leaving said south
line of Original Lot 29 and running with the the east line of said Alley Closed,
South, 14.50 feet; thence leaving said east line of Alley Closed and running
through said Alley Closed, West, 48.91 feet, to the west line of said Alley
Closed; thence with said west line of Alley Closed and the west lines of said
Original Lots 29 and 28, North, 84.50 feet; thence through said Original Lot 28,
East, 140.83 feet, to the west line of 19th Street, aforesaid; thence with said
west line of 19th Street, South, 70.0 feet, to the place of beginning,
containing 10,566 square feet, per the records of the Assessment and Taxation
Division of the D.C. Department of Finance and Revenue.
<PAGE>

                                    EXHIBIT B

                       Declaration by Landlord and Tenant

      Attached to and made part of the Agreement of Lease entered into by and
between (i) 1112 Nineteenth Street Associates, a District of Columbia joint
venture ("Landlord"), and (ii) S & W D.C., L.L.C., a Delaware limited liability
company ("Tenant").

      Landlord and Tenant do hereby declare that:

      1. The execution date of the Agreement of Lease is _______________, 1998.

      2. The Commencement Date of the Agreement of Lease is _______________.

      3. The Lease Expiration Date of the Agreement of Lease is _______________,
subject to any extension of the Term Pursuant to Paragraph 3.2 or the earlier
termination of the Agreement of Lease.

      4. The Lease is in full force and effect as of the date hereof, Landlord
has fulfilled all of its obligations under the Lease required to be fulfilled by
Landlord on or prior to such date, and Tenant has no right of set-off, deduction
or counterclaim against any rentals.

                                      LANDLORD:

                                      1112 Nineteenth Street Associates,
WITNESS                                a District of Columbia Joint Venture

____________________________          By:_____________________________________
                                         Thaddeus A. Lindner, Partner

WITNESS:

____________________________          By:_____________________________________
                                         Sergius Gambal, Partner
<PAGE>

                                      TENANT:

                                      S & W D.C.,, L.L.C.
ATTEST:                                a Delaware limited liability company

____________________________          By:_____________________________________
                   Secretary             Name:________________________________
                                         Title:_______________________________

[Corporate Seal]

                                      B-2
<PAGE>

                                    EXHIBIT C

                              Rules and Regulations

      1. No awnings or other projections shall be attached to the outside walls
of the Building except as permitted under the Tenant's lease. No drapes, blinds,
shades or screens shall be attached to or hung in, or used in connection with,
any window or door of the Premises, except as may be approved by Landlord in its
reasonable discretion.

      2. No sign, advertisement, notice or other lettering or material(s) shall
be exhibited, inscribed, painted or affixed by Tenant on any part of the outside
or inside of the Building without the written consent of Landlord, which shall
not be unreasonably withheld. In the event of the violation of the foregoing,
Landlord may remove same without any liability, and may charge the expense
incurred by such removal to Tenant.

      3. The water and wash closets and other plumbing fixtures shall not be
used for any purposes other than those for which they were constructed, and no
sweepings, rubbish, rags or other substances shall be thrown or placed therein.
All damages resulting from any misuse of the fixtures shall be borne by Tenant.

      4. Tenant shall not construct, maintain, use or operate within its
Premises or elsewhere within or on the outside of the Building, any electrical
device, wiring or apparatus in connection with a loud speaker system or other
sound system if the music system can be heard outside of the Premises. Tenant
shall not make or permit to be made any disturbing noises or disturb or
interfere with the occupants of neighboring Buildings or premises or those
having business with them, whether by the use of any musical instrument, radio,
tape recorder, whistling, singing or any other way. Tenant shall not throw
anything out of the doors or windows, off the balconies or down the corridors or
stairs.

      5. No bicycles, vehicles or animals, birds or pets of any kind shall be
brought into or kept in or about the Premises.

      6. No flammable, combustible, explosive, hazardous or toxic fluid,
chemical or substance shall be brought into or kept upon the Premises, other
than normal cleaning fluids in less than regulated amounts stored in lawful
containers and maintained and disposed of in compliance with all applicable
environmental laws.

      7. Upon the expiration or termination of the Lease, Tenant shall return to
Landlord all keys used in connection with the Premises, including any keys to
the Premises, to rooms and offices within the Premises, to storage rooms and
closets, to cabinets and other built-in furniture, and to toilet rooms whether
or not such keys were furnished by Landlord or procured by Tenant, and in the
event of the loss of any such keys, Tenant shall pay to Landlord the cost of
replacing the locks. On the expiration or termination of the Lease, Tenant shall
disclose to Landlord the combination of all locks for safes, safe cabinets and
vault doors, if any, remaining in the Premises.
<PAGE>

      8. Tenant shall not install or permit or allow the installation of a
television antenna, satellite dish or other roof device in the windows or upon
the exterior of the Building without the prior written consent of Landlord,
which shall not be unreasonably withheld.

                                      C-2
<PAGE>

                                   EXHIBIT D

                                 Work Agreement

      THIS WORK AGREEMENT (the "Work Agreement") is attached to and made a part
of the Agreement of Lease dated as of July 8, 1998 (the "Lease") by and between
(i) 1112 Nineteenth Street Associates, a District of Columbia joint venture
("Landlord"), and (ii) S & W D.C., L.L.C., a Delaware limited liability company
("Tenant"). Capitalized terms not defined in this Work Agreement have the same
meaning ascribed to them in the Lease.

      1. TENANT WORK; General Provisions. The parties hereto acknowledge that
Tenant intends and shall be obligated to construct, at its sole cost and
expense, certain improvements in and upon the Premises (such improvements being
referred to herein as "Tenant Work") in accordance with the provisions hereof.
It is specifically understood that Landlord shall have no design, permitting,
construction or other obligations of any kind or nature whatsoever (whether with
regard to the Land, the Building or the Building's mechanical, electrical,
plumbing or life/safety systems) in connection with the performance of any
Tenant Work.

      2. PLANS AND SPECIFICATIONS. Landlord and Tenant shall use reasonable
efforts to agree upon complete architectural drawings, construction plans and
specifications for the Tenant Work (hereinafter referred to as the "Plans and
Specifications"). Tenant shall furnish Landlord with preliminary plans and
specifications for the Tenant Work by August 10, 1998, which plans shall comply
with building codes of all applicable authorities or agencies having
jurisdiction. Landlord agrees that it will not unreasonably withhold or delay
approval of the preliminary plans and specifications (upon which approval, such
plans and specifications are to be referred to as the "Approved Plans and
Specifications"), provided the same are complete and consistent in all respects
(including design and materials) with plans for a first-class full service
restaurant. Landlord agrees to review Tenant's proposed plans promptly, and to
provide Tenant with any required changes within ten (10) business days after its
receipt of such proposed plans. Landlord and Tenant shall use reasonable efforts
to accommodate the interests of the other and to agree on final construction
plans and specifications. Any modifications to the Approved Plans and
Specifications required to comply with local building codes or other
governmental requirements shall be prepared at Tenant's expense, and any
additional cost of construction occasioned thereby shall be paid by Tenant.
During progress of construction, Tenant shall provide Landlord with one copy of
all shop drawings for Landlord's records, and copies of all field and job
progress reports from Tenant's architect(s). Neither Landlord's approval of the
Plans and Specifications, nor any other inspections or approvals of the
improvements on or about the Premises or plans for construction thereof by
Landlord's employees, agents or inspecting engineers, shall constitute a
warranty or representation as to the technical sufficiency, adequacy, safety or
compliance with laws of the plans, structures, any of their component parts, or
any other physical condition or feature pertaining to the improvements, it being
acknowledged by Tenant that Landlord has made such approvals solely as a
landlord in determining and protecting the value of its property for internal
purposes, and not as an expert in construction-related matters.

      3. PERMITS. Tenant, at its sole cost and expense, shall obtain or cause to
be obtained all building permits, licenses, other governmental approvals and
temporary and permanent certificates of occupancy which may be required to
permit the construction of the Tenant Work

<PAGE>

in accordance with the Approved Plans and Specifications and this Lease. Tenant
shall apply for all permits for the construction of the Tenant Work at the
earliest stage possible, shall diligently pursue procuring the same and shall at
all times apprise Landlord of the status of its application. Tenant shall
provide Landlord with copies of all correspondence and other inquiries it may
receive from the District of Columbia or other applicable authority in
connection with its permit application. Tenant further covenants to (i) use a
so-called "expeditor" reasonably acceptable to Landlord in its attempt to
procure a building permit and (ii) make such changes to the Plans and
Specifications as the District of Columbia or other applicable authority may
require as a condition of issuing the building permit, provided that such
changes do not result in increased hard costs to Tenant (exclusive of
architectural or engineering expenses and other soft costs) by more than Fifty
Thousand and No/100 Dollars ($50,000.00) or prevent Tenant, in its reasonable
opinion, from operating a first-class restaurant without undue hardship.
Landlord agrees to assist and cooperate with Tenant, at no out-of-pocket expense
to Landlord, in the obtaining of such permits, licenses, approvals and
certificates.

      4. CODE COMPLIANCE. As a part of the Tenant Work, Tenant shall upgrade the
Building and all components thereof and systems therein and make such
improvements thereto as may be necessary to ensure that, upon completion of the
Tenant Work, the Building complies with all applicable laws, ordinances, codes,
rules and regulations, including, without limitation, those relating in any way
to the Americans with Disabilities Act. Tenant's architect shall provide
Landlord with a written certification to the foregoing affect prior to
Landlord's approval of the proposed Plans and Specifications.

      5. REQUIRED CONSTRUCTION. Without limiting the generality or applicability
of any applicable provision of this Work Agreement or the Lease, Tenant agrees
that the following provisions shall apply to the performance of the Tenant Work:

                        (i) All work required to ensure the structural integrity
            of the Building shall be substantially complete before Tenant
            commences any improvements to the interior of the Building. In
            performing any Tenant Work which involve construction work upon the
            exterior of the Buildings, Tenant agrees that it shall, at its sole
            expense, restore all areas of the Building's exterior, including,
            without limitation all adjacent planting areas, sidewalks and
            parking areas, if any, affected by the Tenant Work, to their
            original condition; and

                        (ii) Tenant and its contractor performing any Tenant
            Work shall provide copies of warranties for the Tenant Work and the
            materials and equipment which are incorporated into the Building in
            connection therewith, as well as provide to Landlord copies of all
            operating and maintenance manuals for all equipment and materials
            incorporated into the Building as part of the Tenant Work. Without
            limitation, all aspects of Tenants Work shall be warranted to be
            free from defects in design and workmanship for a period of not less
            than one (1) year from substantial completion of construction.

      6. REIMBURSEMENTS. Tenant shall, upon demand, reimburse Landlord for all
reasonable out-of-pocket costs paid by Landlord to a licensed architect or
engineer for a scope of work to include reviewing proposed Plans and
Specifications and any changes thereto, reviewing

<PAGE>

construction contracts and similar documents, reviewing permit applications,
conducting and attending inspections and generally monitoring construction of
the Tenant Work.

      7. GENERAL CONTRACTOR. Landlord shall have the right to approve the
identity of the general contractor which will perform the Tenant Work. In all
events, all contractors (including the general contractor) and subcontractors
performing work on behalf of Tenant within the Premises shall be licensed to do
business in the District of Columbia and shall be bondable. Tenant's
construction contract shall indemnify Tenant and Landlord from damages, losses
and expenses associated with the acts and omissions of Tenant's contractor, its
agents, employees and subcontractors, and shall otherwise be subject to
Landlord's prior reasonable approval. All work is to be performed in accordance
with national and/or local building and fire codes and shall be performed in
accordance with all Occupational Safety and Health Administration (OSHA) safety
standards. Tenant agrees to comply (or to cause its contractors to comply) with
all applicable Federal, state and local laws, regulations and ordinances in the
performance of the Tenant Work, and to promptly rectify any violations of such
laws caused by the acts or omission of Tenant, its employees, agents and/or
contractors, and Tenant shall be responsible for any non-compliance by Tenant or
its agents, employees and contractors.

      8. INTENTIONALLY OMITTED.

      9. INSPECTIONS. Representatives of Landlord shall have the right to enter
the Premises during business hours for the purpose of inspecting the progress of
the Tenant Work and confirming that all Tenant Work is being performed in
accordance with the Approved Plans and Specifications. Tenant agrees to promptly
take all steps necessary to correct any defects in its construction of the
Tenant Work which are discovered by Landlord's architect or construction
supervisor in the course of any such inspections; PROVIDED, Landlord's failure
to require any corrections shall not constitute a warranty that the work
performed prior to the date of the inspection has been completed in accordance
with the Approved Plans and Specifications nor a waiver of the right to object
to any such defects at a later time. Tenant agrees to cooperate with Landlord to
facilitate such inspection, including without limitation: (a) notifying Landlord
and such construction manager of all scheduled construction meetings between
Tenant and its general contractor, which Tenant agrees to conduct on not less
than a weekly basis; (b) providing to Landlord copies of all governmental
inspection reports, promptly after the same have been received by Tenant; (c)
responding promptly to all Landlord requests for information, or other inquiries
regarding the progress of the Tenant Work; and (d) permitting Landlord's
representatives free and clear access to the Premises during any governmental
inspections of the Tenant Work. Tenant shall notify Landlord not less than three
(3) business days in advance of, and shall have the right to participate in, any
inspection of the work being performed by Tenant and its contractor in which a
punch list for such work is intended to be prepared, and shall further have the
right to require the inclusion of any BONA FIDE punch list items on such punch
list.

      10. MATERIALS. Tenant shall use only new materials (as specified in the
Approved Plans and Specifications, subject to minor deviations due to
unavailability of any specified materials), or historic materials which are in
good condition where required, in connection with the Tenant Work. All equipment
shall meet all applicable standards and bear Underwriters Laboratories labels.
<PAGE>

      11. CLEAN WORK SITE. Tenant's general contractor shall keep all
construction areas clean and free of trash and debris, and shall police the
activities of its contractors, subcontractors and their respective employees
with regard to keeping the Building clean. All construction debris shall be
removed from the Building daily. (No debris shall be stockpiled on the Premises
at any location at any time.) Tenant's contractor(s) shall not be permitted to
smoke on or about the Premises

      12. LIEN FREE CONSTRUCTION. All Tenant Work shall be paid for in full and
in a timely fashion by Tenant, and shall be performed in a lien-free,
first-class, and good and workmanlike manner, and in accordance with applicable
codes and requirements. The general contractor and each sub-contractor shall
sign and deliver to Landlord a Release of Liens when requested to do so by
Landlord.

      13. INSURANCE REQUIREMENTS. During the course of construction, Tenant
shall secure, pay for, and maintain, or cause its contractors and subcontractors
to secure, pay for, and maintain all of the insurance policies set forth below
(in addition to such insurance as may from time to time be required by the
District of Columbia and/or Federal laws, codes, regulations or authorities):

                        (i) With respect to the Tenant Work, Builder's Risk
            Insurance, naming Landlord as an additional insured and loss payee,
            in an amount not less than one hundred percent (100%) of the
            replacement cost of the Building, as determined by Landlord.

                        (ii) Worker's Compensation, as required by state law,
            and Employer's Liability Insurance with a limit of not less than
            $2,000,000 (or more if required by the laws of the District of
            Columbia) and any insurance required by any Employee Benefit Act or
            similar statute applicable where the work is to be performed, as
            will protect the contractor and subcontractors from any and all
            liability under the aforementioned act(s) or similar statute(s).

                        (iii) Comprehensive General Liability Insurance
            (including Contractor's Protective Liability) in an amount not less
            than $5,000,000 per occurrence whether involving personal injury
            liability (or death resulting therefrom) or property damage
            liability or a combination thereof (combined single limit coverage)
            with a minimum aggregate limit of $2,000,000. Such insurance shall
            insure such general contractor against any and all claims for
            personal injury, death, and damage to the property of others arising
            from its operations under its contract, whether such operations are
            performed by Tenant's contractors, subcontractors, or
            sub-subcontractors, or by anyone directly or indirectly employed by
            any of them.

                        (iv) Comprehensive Automotive Liability Insurance, for
            the ownership, maintenance, or operation of any automotive
            equipment, whether owned, leased, or otherwise held, including
            employer's non-ownership and hired car liability endorsements, in an
            amount not less than $2,000,000 per occurrence
<PAGE>

            and $2,000,000 aggregate, combined single limit bodily injury and
            property damage liability.

The insurance policies set forth in clauses (i) - (iv), above, shall insure such
general contractor against any and all claims for bodily injury, including death
resulting therefrom, and damage to the property of others arising from its
operations under its contract in connection with construction of the Premises,
whether performed by such general contractor, or its subcontractors, or
sub-subcontractors, or by anyone directly or indirectly employed by any of them.
The Tenant Work may not commence until all of the foregoing required insurance
has been obtained certificates of such insurance have been delivered to
Landlord. Tenant's insurance policies shall name the Landlord and Landlord's
mortgagee(s) as additional insureds, and shall provide that no change or
cancellation of such insurance coverage shall be undertaken without thirty (30)
days' prior written notice to Landlord. Landlord shall have the right to require
Tenant, and Tenant shall have the duty, to stop work in the Premises immediately
if any of the coverage Tenant is required to carry herein lapses during the
course of the work, in which event the Tenant Work may not be resumed until the
required insurance is obtained and satisfactory evidence of same is provided to
Landlord. The insurance required under this Section 13 shall be in addition to
any and all insurance required to be procured by the parties pursuant to the
terms of the Lease.

      14. CONSTRUCTION INDEMNITY. Tenant hereby agrees to indemnify, defend and
hold Landlord harmless from and against any and all losses, costs, claims,
damages, liabilities and expenses (including, without limitation, court costs
and attorneys' fees) of every kind and nature which are incurred by Landlord, in
whole or in part, whether directly or indirectly, in connection with or on
account of the construction by Tenant and its contractors and subcontractors of
the Tenant Work at the Premises.

      15. AS-BUILT SPECIFICATIONS. Upon substantial completion of the Tenant
Work, Tenant agrees to provide Landlord with two (2) complete sets of "As-Built"
plans and specifications for the Premises and all ancillary improvements
constructed by Tenant.

      16. SUPPLEMENTAL REMEDIES. In the event of any violation of this Work
Agreement which continues for a period of five (5) days after written notice
from Landlord to Tenant identifying the violation with reasonable specificity
(except that no such notice of default shall be required for a failure to obtain
any required insurance). Landlord shall have the right, in addition to any other
remedies provided for in this Lease due to such default by Tenant, to cause
Tenant and Tenant's contractor to stop all Tenant Work, and Landlord may, in
such event, seek any and all appropriate legal and equitable relief in order to
enforce the provisions of this Work Agreement.
<PAGE>

      IN WITNESS WHEREOF, the parties have executed this Work Agreement as of
the date and year first set forth above.

                                       LANDLORD:

                                       1112 Nineteenth Street Associates,
WITNESS:                                 a District of Columbia Joint Venture

/s/ [ILLEGIBLE]                        By: /s/ Thaddeus A. Lindner
-------------------------------            -------------------------------------
                                           Thaddeus A. Lindner, Partner

WITNESS:

/s/ [ILLEGIBLE]                        By: /s/ Sergius Gambal
-------------------------------            -------------------------------------
                                           Sergius Gambal, Partner

                                       TENANT:

                                       S & W D.C., L.L.C.
ATTEST:                                  a Delaware limited liability company
                                       By: New York Restaurant Group, Inc.,
                                           Manager

/s/ [ILLEGIBLE]                        By: /s/ Jim Dunn
-------------------------------            -------------------------------------
                      Secretary            Name: Jim Dunn
                                                 -------------------------------
                                           Title: PRESIDENT
                                                  ------------------------------

[Corporate Seal]
<PAGE>

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

                                 FIRST AMENDMENT
                                       TO
                               AGREEMENT OF LEASE

                   (1112 19th Street, N.W., Washington, D.C.)

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

                                SMITH & WOLLENSKY

                                  July 8, 1998
<PAGE>

                              --------------------
                                 FIRST AMENDMENT
                                       TO
                               AGREEMENT OF LEASE
                              --------------------

      This First Amendment to Agreement of Lease (this "First Amendment") is
made as of this 8th day of July, 1998, by and between (i) 1112 Nineteenth Street
Associates, a District of Columbia joint venture ("Landlord"), and (ii) S & W
D.C., L.L.C., a Delaware limited liability company ("Tenant").

                                    RECITALS

      A. Landlord and Tenant are parties to that certain Agreement of Lease
dated July 8, 1998 (the "Lease") pertaining to the Premises (as defined in the
Lease) at 1112 19th Street, N.W., Washington, D.C.

      B. The parties wish to set forth herein their understanding with respect
to leasehold financing.

                                    AGREEMENT

      NOW, THEREFORE in consideration of One ($1.00) Dollar and other good and
valuable consideration, the parties agree as follows:

            1. SCOPE OF AMENDMENT. The parties hereby amend the Lease, but only
as herein expressly set forth. Except as herein expressly amended, the Lease
shall remain in full force and effect in accordance with its terms.

            2. MORTGAGABILITY PROVISIONS. The Lease shall be amended by adding
thereto a new paragraph 68 entitled "Mortgage of Leasehold", which shall read as
follows:

                  "68(a) Notwithstanding the provisions of Section 25 of this
                  Lease, Tenant shall have the right to encumber this Lease by a
                  mortgage, deed of trust, or similar security instrument,
                  subject to this paragraph and the other provisions of this
                  Lease. All such instruments are hereinafter referred to as
                  "Leasehold Mortgages" and the holder of any such Leasehold
                  Mortgage shall be referred to as "Lender".

                  (b) Upon written notice to Landlord that Tenant has entered
                  into a Leasehold Mortgage, Landlord agrees to the following:

                        (i) Landlord shall not accept any surrender of this
                        Lease, nor any material modification of this Lease,
                        without Lender's consent, which consent of Lender, if it
                        is to obtain the benefit of this paragraph, shall not be
                        unreasonably withheld, conditioned or delayed.
<PAGE>

                        (ii) Landlord shall permit Lender to make any payments
                        or do any other act required of Tenant to prevent the
                        termination of this Lease. Any such acts by Lender shall
                        be effective to the same extent as if the same would
                        have been performed by Tenant.

                        (c) Should any event of default by Tenant under this
                        Lease occur, Lender shall have sixty (60) days from
                        receipt by Tenant of notice of default in which to
                        remedy such default, so long as Lender shall (i)
                        additionally cure any default or monetary obligations of
                        Tenant within such sixty (60)-day period, (ii) continue
                        to pay and perform the current obligations of Tenant
                        under this Lease, and (iii) commence foreclosure
                        proceedings within such sixty (60)-day period and
                        diligently prosecute the same to conclusion.

                        (d) Any event of non-monetary default which Lender
                        cannot practicably remedy shall be deemed remedied if,
                        within sixty (60) days of receipt by Tenant of a notice
                        of default, Lender shall (i) commence foreclosure
                        proceedings, (ii) diligently prosecute such proceedings
                        to conclusion, (iii) fully cure any monetary defaults,
                        (iv) pay all current monetary obligations, and (v)
                        immediately, upon gaining possession of the Premises,
                        perform all acts necessary to cure such non-monetary
                        defaults.

                        (e) Foreclosure of the Leasehold Mortgage or any sale
                        thereunder shall not require the consent of Landlord and
                        such foreclosure proceeding shall not constitute a
                        breach of any provision under the Lease, it being
                        understood and agreed by the parties that the foregoing
                        shall not be construed to be a waiver of any rights of
                        Lender under this Lease.

                        (f) Should Landlord terminate this Lease by reason of
                        any default of Tenant, Landlord shall, upon written
                        request by Lender received within twenty-one (21) days
                        after such termination, execute and deliver to Lender a
                        new lease of the Premises for the remainder of the Term
                        of the Lease under the same terms and conditions as are
                        contained in this Lease, except that, as a condition
                        precedent to the effectiveness of any such new lease,
                        Lender shall cure any and all defaults under this Lease
                        (determined as if this Lease had not been terminated)
                        and shall pay any and all of Landlord's reasonable legal
                        fees incurred in connection with Tenant's default under
                        this Lease and, if applicable, the new lease requested
                        by Lender.

                                      -2-
<PAGE>

                        (g) Tenant and, if Lender succeeds to Tenant's interest
                        under this Lease or if Lender exercises any rights under
                        this Paragraph 68, Lender shall promptly reimburse
                        Landlord for any reasonable legal fees that Landlord
                        incurs as a result of the existence, operation or
                        enforcement of any Leasehold Mortgage.

      IN WITNESS WHEREOF, the parties, pursuant to due authority, have executed
this First Amendment to Agreement of Lease under seal as of the day and year
first hereinabove written.

                                       LANDLORD:
                                       --------

                                       1112 Nineteenth Street Associates,
WITNESS:                                 a District of Columbia Joint Venture

/s/ [ILLEGIBLE]                        By: /s/ Thaddeus A. Lindner
-------------------------------            -------------------------------------
                                           Thaddeus A. Lindner, Partner

WITNESS:

/s/ [ILLEGIBLE]                        By: /s/ Sergius Gambal
-------------------------------            -------------------------------------
                                           Sergius Gambal, Partner

                                       TENANT:
                                       ------

                                       S & W D.C., L.L.C.
ATTEST:                                  a Delaware limited liability company

                                       By: New York Restaurant Group, Inc.,
                                             Manager

/s/ [ILLEGIBLE]                        By: /s/ James Dunn
-------------------------------            -------------------------------------
                      Secretary            Name: James Dunn
                                                 -------------------------------
                                           Title: President
                                                  ------------------------------

       [Corporate Seal]

Guarantor has reviewed this
First Amendment to Agreement of
Lease and hereby consents to the
same.

The New York Restaurant Group, Inc.,
a Delaware corporation

By: /s/ James Dunn
    --------------------------------
    James Dunn, President

                                      -3-
<PAGE>

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

                                SECOND AMENDMENT
                                       TO
                               AGREEMENT OF LEASE

                   (1112 19th Street, N.W., Washington, D.C.)

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

                                SMITH & WOLLENSKY

                                 April 29, 1999
<PAGE>

                              --------------------
                                SECOND AMENDMENT
                                       TO
                               AGREEMENT OF LEASE
                              --------------------

      This Second Amendment to Agreement of Lease (this "Second Amendment") is
made as of this 29th day of April, 1999, by and between (i) 1112 Nineteenth
Street Associates, a District of Columbia joint venture ("Landlord"), and (ii) S
& W D.C., L.L.C., a Delaware limited liability company ("Tenant").

                                    RECITALS

      A. Landlord and Tenant are parties to that certain Agreement of Lease
dated July 8, 1998, as amended by that certain First Amendment to Agreement of
Lease dated July 8, 1998 (together referred to as the "Lease") pertaining to the
Premises (as defined in the Lease) at 1112 19th Street, N.W., Washington, D.C.

      B. The parties wish to set forth herein their understandings with respect
to certain matters relating to development of a sidewalk cafe at the Premises.

                                    AGREEMENT

      NOW, THEREFORE, in consideration of One ($1.00) Dollar and other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties agree as follows:

            1. SCOPE OF AMENDMENT. The parties hereby amend the Lease, but
only as herein expressly set forth. Except as herein expressly amended, the
Lease shall remain in full force and effect in accordance with its terms.
Except as otherwise defined in this Second Amendment, all capitalized terms
shall have the meanings ascribed to them in the Lease.

            2. SIDEWALK CAFE DEVELOPMENT DOCUMENTS. Tenant has
requested that Landlord execute and deliver that certain (i) Application For
Public Space Permit (the "Application") and (ii) Covenant For Use of Special
Material (the "Covenant"), and any associated documents that Landlord may
elect to execute (collectively, the "Development Documents"), copies of which
are attached as Exhibits A-1 and A-2 respectively, for the convenience and
substantial benefit of, and solely as an accommodation to, Tenant. Landlord
has agreed to do so provided Landlord's lender approves the same and this
Second Amendment, and Tenant executes and delivers this Second Amendment.

            3. TENANT'S OBLIGATIONS. Tenant expressly covenants, acknowledges
and agrees that (i) it shall be responsible for and shall perform any and all
obligations of "Applicant" under the Application and "Owner" under the Covenant,
and (ii) Landlord shall have no liability for payment or responsibility for
performance under the Development Documents.
<PAGE>

            4. DEFAULT. Tenant expressly acknowledges and agrees that (i)
Tenant's default under the Application and/or the Covenant shall constitute an
immediate Event of Default under the Lease, entitling Landlord to exercise all
rights and remedies available to Landlord at law or in equity or under the Lease
(as modified by this Second Amendment); and (ii) any and all amounts due from
Tenant under the Development Documents or any of them shall constitute
Additional Rent under the Lease.

            5. INSURANCE. Concurrent with Tenant's execution and delivery of
this Second Amendment, Tenant shall provide Landlord and its lender with
insurance, which satisfies all of the insurance requirements of the Lease,
protecting Landlord, its lender, and Tenant from any liability occurring in or
on the contemplated sidewalk cafe and the public space affected by the
Development Documents.

            6. INDEMNITY. In addition to all obligations of Tenant and all
rights and remedies available to Landlord under the Lease, and to induce
Landlord to execute and deliver the Development Documents, Tenant expressly
acknowledges, covenants and agrees it will defend all actions against Landlord
(including any partners, employees or agents) and that it will indemnify and
save Landlord harmless from and against any and all liabilities, losses,
damages, causes of action, suits, claims, demands, judgments, costs and expenses
of any kind or nature (including court costs and reasonable attorneys' fees)
relating to or arising from or in connection with the Development Documents or
any of them, including, without limitation, any of the foregoing arising from or
in connection with: (i) the possession, use, occupancy, management, repair,
maintenance or control of the Premises or any portion thereof or the public
space affected by the Development Documents or any of them; (ii) any act or
omission of Tenant or Tenant's agents, sublessees, contractors, employees, or
invitees under the Development Documents or any of them; (iii) any violation or
injury to person or property or loss of life sustained in or about the Premises
or the public space affected by the Development Documents or any of them; (iv)
any violation, breach of, or default under the Development Documents or any of
them or this Lease by Tenant; and (v) any other matter arising from Tenant's
occupancy or use of the Premises or the public space affected by the Development
Documents or any of them or any act or omission of Tenant, its agents,
sublessees, contractors, employees or invitees in connection therewith.

                                      -2-
<PAGE>

      IN WITNESS WHEREOF, the parties, pursuant to due authority, have executed
this Second Amendment to Agreement of Lease under seal as of the day and year
first hereinabove written.

                                       LANDLORD:

                                       1112 Nineteenth Street Associates,
WITNESS:                                 a District of Columbia Joint Venture

/s/ [ILLEGIBLE]                        By: /s/ Thaddeus A. Lindner
-------------------------------            -------------------------------------
                                           Thaddeus A. Lindner, Partner

WITNESS:

/s/ [ILLEGIBLE]                        By: /s/ Sergius Gambal
-------------------------------            -------------------------------------
                                           Sergius Gambal, Partner

                                       TENANT:

                                       S & W D.C., L.L.C.
ATTEST:                                  a Delaware limited liability company

                                       By: New York Restaurant Group, Inc.,
                                             Manager

/s/ [ILLEGIBLE]                        By: /s/ James Dunn
-------------------------------            -------------------------------------
                      Secretary            James Dunn, President

       [Corporate Seal]

Guarantor has reviewed this Second
Amendment to Agreement of Lease and
hereby consents to the same and
acknowledges that the Guaranty dated
July 8, 1998 guarantees all of Tenant's
payment and performance obligations
under the Lease as modified by this
Second Amendment to Agreement of Lease.

The New York Restaurant Group, Inc.,
  a Delaware corporation

By: /s/ James Dunn
    --------------------------------
    James Dunn, President

                                      -3-
<PAGE>

                      -------------------------------------
                                   EXHIBIT A-1
                                       TO
                                SECOND AMENDMENT
                                       TO
                               AGREEMENT OF LEASE
                                  (APPLICATION)
                      -------------------------------------

<PAGE>

                 DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS
                  BUILDING AND LAND REGULATION ADMINISTRATION;
                     PERMIT PROCESSING DIVISION (727-7039)

[GRAPHIC] GOVERNMENT
          OF THE
          DISTRICT OF COLUMBIA

                      APPLICATION FOR PUBLIC SPACE PERMITS
              (PRINT IN INK OR TYPE: DO NOT WRITE IN SHADED AREAS)

<TABLE>
<CAPTION>
=================================================================================================================
(A) ALL APPLICANTS MUST COMPLETE ITEMS 1 THRU 18                                        1. Date of Application
================================================================================---------------------------------
<S>                                            <C>       <C>          <C>               <C>
2. Address of Premise for which Public Space   3. Lot:   4. Square:   5. Type of        6. Previous Permit Number
   Work is Proposed                                                     Application:      If Renewal:
                                                                       |X| New
   1112 - 19th Street, N.W.                       877       117        |_| Renewal
-----------------------------------------------------------------------------------------------------------------
7. Owner of Premise:                           8. Owner's Address:                      9. Phone
   1112 - 19th Street                             1050 Thomas Jefferson St. N.W.
   Associates Joint Venture                       Suite 100, Washington, DC 20007
-----------------------------------------------------------------------------------------------------------------
10. Authorized Agent (If applicable):   11. Firm's Name:      12. Address:              13. Phone

-----------------------------------------------------------------------------------------------------------------
14. Check all proposed work; indicate the specific street of work and the names of boundary streets, and specify
    the length and width of the work area.

=================================================================================================================
                                   Located on the following      Between          And       Length of    Width of
Check          Proposed Work          Street (or Alley)       (Street Name)  (Street Name)  Work (ft)    Work (ft)
=================================================================================================================
        A. Temporary Use for:
           1. Crane
-----------------------------------------------------------------------------------------------------------------
           2. Truck: |_| Dump |_| Concrete
              |_| Construction Equipment
-----------------------------------------------------------------------------------------------------------------
           3. Dumpster

-----------------------------------------------------------------------------------------------------------------
           4. Hoists/Scaffolds

-----------------------------------------------------------------------------------------------------------------
           5. Use of Sidewalk for:
              (                          )
-----------------------------------------------------------------------------------------------------------------
           6. Use of Roadway for:
              (                          )
-----------------------------------------------------------------------------------------------------------------
        B. Excavation for:
           (                             )
-----------------------------------------------------------------------------------------------------------------
        C. Sheeting and Shoring

-----------------------------------------------------------------------------------------------------------------
        D. Driveway Construction

-----------------------------------------------------------------------------------------------------------------
        E. Sidewalk Construction

-----------------------------------------------------------------------------------------------------------------
        F. Curb and Gutter Construction

-----------------------------------------------------------------------------------------------------------------
        G. Alley Construction

-----------------------------------------------------------------------------------------------------------------
        H. Grading |_| Street |_| Alley
-----------------------------------------------------------------------------------------------------------------
           |_| Trees
        I.              |_| Planter Boxes
           |_| Hedges
-----------------------------------------------------------------------------------------------------------------
        J. |_| Fence |_| Wall
-----------------------------------------------------------------------------------------------------------------
        K. Other (Specify):

=================================================================================================================
15. Description of Proposed Work:                                                       16. Start Date:

                                                                                        -------------------------
                                                                                        17. End Date:

-----------------------------------------------------------------------------------------------------------------
16. APPLICANT'S SIGNATURE: I have read and I understand the conditions set forth on this application. I further
                           understand that penalties are provided for furnishing false information.

    AGENT'S SIGNATURE: /s/ [ILLEGIBLE]                                                  Date: 5 May 1999
                      ---------------------------------------------------------

    OWNER'S SIGNATURE:                                                                   Date:
                      ---------------------------------------------------------
=================================================================================================================
</TABLE>

COMPLETE Page 4 If Trees, Rental of Public Space, Fuel Oil Tanks, & Parking Lot.

<PAGE>
                                     Page 2

             CONDITIONS OF ALL PUBLIC SPACE APPLICATIONS AND PERMITS

      The applicant, or the applicants authorized agent, in affixing his or its
signature hereto and in accepting any permit issued on the basis of this
application, agrees that the applicant, and any person, firm or corporation
employed by the applicant, when working on or occupying public space as
authorized by the said permit, whether such work or occupancy is on, or above
the surface of such space, will comply with the following conditions:

      (1) That the performance of such work or the occupancy of such space shall
be strictly in accordance with the conditions set forth herein and on both sides
of the permit authorizing such work or occupancy of public space.

      (2) That the performance of such work or the occupancy of such space as
authorized by the said permit shall be in full compliance with all applicable
laws and regulations of the District of Columbia.

      (3) That the applicant, at the risk and expense, guarantees that the
public space occupied by the applicant or required for the performance of the
work authorized by the said permit, at all times will be kept in a safe
condition, and where the work aforesaid results in any excavation in any street,
alley, sidewalk, or other public space, the applicant will insure that such
excavation is kept in a safe condition until such street, alley, sidewalk, or
other public space has been repaired or resurfaced by the District of Columbia.
The repair or resurfacing of the street, alley, sidewalk or other public space
made necessary by the excavation, will be performed by the District of Columbia
at the expense of the applicant.

      (4) That the applicant guarantees that if, in the opinion of the Director
of the Department of Transportation or his representative, any work performed
in, or occupancy of, public space by him or on his behalf, in any manner becomes
dangerous to, or interferes unnecessarily with, pedestrian or vehicular traffic,
the applicant will take such action as, in the opinion of the said Director or
his representative is necessary to remove such dangerous condition or
unnecessary interference with traffic.

      (5) That the applicant will save harmless, indemnify and keep indemnified
the District of Columbia, its officers and employees, from all claims, suits,
charges, counsel fees, and judgments to which the said District, its officers
and employees may be subject, on account of injury to persons or damage to
property, including property of the District of Columbia, due to negligence of
the applicant, or occasioned by work not authorized by said permit, or resulting
from failure to observe and comply with terms and conditions of this
application.

      (6) That the applicant agrees that the backfilling of any excavation made
by him or on his behalf will be performed in the manner prescribed below and
should any settlement or sinking resulting from backfilling occur within two (2)
years after the District of Columbia, at the applicant's expense, has repaired
or resurfaced the surface of the public space in which excavation was made, the
applicant nevertheless will save harmless, indemnify and keep indemnified the
District of Columbia from any injury, loss, cost, or damage occasioned by a
physical change in such repaired or resurfaced public space.

      Should repairs become necessary over said excavation during the
aforementioned period due to settlement, of said excavation occasioned by
improper excavation work or backfilling, the necessary re-excavation and repair
shall be done by the District of Columbia and the cost thereof shall be charged
to the applicant.

      (7) That the applicant agrees that all portions of the street excavated
will be put in as good condition as before the excavation was made and that such
excavation will be backfilled within twenty-four (24) hours after approval by
the District, (if required) of the construction, connections or repairs
installed or made therein, such backfilling not to extend more than two inches
(2") above the adjoining pavement or surface and to be thoroughly compacted in
such manner as to avoid any sinking or settlement either of the backfill or of
any pavement laid thereon for a period of two (2) years after the area over such
excavation has been repaired or resurfaced by the District.

      (8) That the applicant agrees that on each day any work is to be performed
under the authority of this permit, he will notify the Office of Coordinator of
Underground Construction, prior to the commencement of such work, of all
locations at which any of the said work is to be performed, and whether such
work is new work or work already in progress.

      SPECIAL ATTENTION. -- In addition to the requirements of Standard
Specifications of the Department of Transportation regarding work on Saturdays,
Sundays, or legal holidays, the permittee is advised that no work shall be
performed under the permit on Saturdays, Sundays, or legal holidays except with
the consent of the Department of Transportation.

 CONDITIONS OF EXCAVATION IN PUBLIC SPACE AND TREATMENT OF TREES IN PUBLIC SPACE

      (1) No cut will be made in a roadway or alley unless material to complete
the job is on hand or immediately available, that work will be carried to
completion in the shortest possible time, and that there will be no interference
with traffic unless such interference is specifically Authorized by the Director
of the Department of Transportation or his representative.

      (2) A clear, safe pedestrian passageway not less than 6 feet wide, in line
with any existing sidewalk will be provided at all times unless otherwise
authorized by the Director of the Department of Transportation or his
representative.

      (3) The applicant will not cut or injure trees, or pile earth or other
material within 3 feet of trees unless such trees are properly protected in a
manner approved by the Director of the Department of Transportation or his
representative.

      (4) No existing underground construction will be interfered with.

      (5) All pipes and conduits except as otherwise specified in Section 408-2
of D.C. Plumbing Code, will be laid not less than 30 inches below any roadway,
not less than 24 inches below grade on other public space, except that street
light conduits may be laid not less than 18 inches below any approved grade,
unless otherwise authorized.

      (6) Surface (lawns, grass, shrubs, sidewalks, etc.) will be restored upon
completion of work.

<PAGE>
                                     Page 3

                CONDITIONS OF TREATMENT OF TREES IN PUBLIC SPACE

      (1) All material, equipment, surplus excavated material, debris, etc.,
will be removed from public space as soon as possible, consistent with working
hours and conditions, within three working days following the completion of the
work authorized by the permit.

      (2) In the event the District of Columbia, as a consequence of any failure
of the applicant to maintain the public space in a safe condition, is required
to repair said public space, such repair by the District of Columbia shall be at
the applicant's expense and the applicant agrees to reimburse the District of
Columbia for all costs of such repair and shall not be relieved of
responsibility for maintaining said public space in safe condition, by reason of
any such repair.

   CONDITION OF ERECTING OR REPAIRING RETAINING WALLS, FENCES, COPINGS, LEADS
           AND STEPS, PLANT HEDGES, OR PAVED PARKING IN PUBLIC SPACE:

      The fence, wall, copings, leads, steps, or hedges will not obstruct
entrance to any accessible parking area required by the Zoning Regulations of
the District of Columbia.

                    CONDITIONS OF GRADING STREETS OR ALLEYS:

      (1) All trees, stumps and underbrush are to be removed from the sub-grade.

      (2) The alley or street when graded will be left in a safe, smooth, and
well-drained condition so that no water will be impounded.

      (3) Notify Grading Engineer of the Street Division at least ten (10) days
prior to starting this grading work. Notify the Chief Inspector of Street
Division twenty-four (24) hours in advance of starting the work. The permit will
be delivered on the job by the inspector.

     CONDITIONS OF CONSTRUCTING SIDEWALK, CURB & GUTTER, ALLEY OR DRIVEWAY:

      (1) The work will be done at the whole risk and cost of the property
owner, in accordance with Standard Specifications of the District of Columbia,
and under the supervision of the Department of Transportation, Street Division,
and will conform to line and grade furnished by the said Department, and the
owner will assume responsibility for all damages to persons or property
occurring as a consequence of the use of public space.

      (2) The permit is to be delivered by a District representative, to the
applicant or his agent at the site of the work, and, until so delivered, no
operations thereunder, other than the necessary grading of the sidewalk may be
performed by the applicant or his agent. The applicant or his agent will notify
the engineer of Streets not less than twenty-four hours prior to the scheduled
commencement of the work authorized by the permit of the time when construction
operations are to commence, in order that the District representative may
deliver the said permit.

                CONDITION OF CONSTRUCTING OR REPAIRING DRIVEWAY:

      In the event the District of Columbia, as a consequence of any failure of
the applicant to maintain the public space comprising applicant's driveway in a
safe condition, is required to repair said public space, such repair by the
District of Columbia shall be at the applicant's expense and the applicant
agrees to reimburse the District of Columbia for all costs of such repair and
shall not be relieved of responsibility for maintaining said public space in
safe condition, by reasons of any such repair.

             CONDITIONS OF RENTAL OF PUBLIC SPACE AND SIDEWALK CAFE:

      (1) The applicant understands that the rental of public space is temporary
and that no right, title, or interest in such public space is conveyed by the
permit.

      (2) The Director of Department of Transportation may, by written notice,
require the permittee to vacate all or part of the rented public space at any
time. Upon demand to vacate such public space, the permittee will promptly
remove any personal property on the rented space, or reimburse the District for
the cost of moving such property.

      (3) The permittee shall have no recourse against the District of Columbia,
the United States, the officers or agents of District of Columbia, the officers
or agents of the United States for any loss or damage occasioned by the
permittee being required to vacate all or any part of the surface space which he
had been granted permission to use.

      (4) All provisions of Article 43 of the D.C. Police Regulations will be
strictly adhered to.

      (5) Plans, permits and letters of approval from the Public Space Committee
must be kept on the rented public premises at all times.

<PAGE>
                                     Page 4

                                    ----------------------------------------
                                    H.P.A. No.:      O.G. No.:     S.L. No.:

(DO NOT WRITE IN SHADED AREAS)      ----------------------------------------

<TABLE>
<CAPTION>
=============================================================================================================
(B) TREES (COMPLETE ITEMS 19 THRU 22)
=============================================================================================================
<S>                                   <C>                        <C>                     <C>
19. Type of Work:                     20. Number of Trees:       21.  Type of Trees:     22. Name of Trees:
    |_| New Building  |_| Removal                                     |_| Curb
    |_| Driveway      |_| Planting                                    |_| Parking
    |_| Trimming
=============================================================================================================
(C) RENTAL OF PUBLIC SPACE. SIDEWALK CAFE, PARKING LOT, FUEL OIL TANK
    (COMPLETE ITEMS 23 THRU 29)
=============================================================================================================
23. Insurance Company's Name:               24. Policy or Certificate Number:            25. Expiration Date

-------------------------------------------------------------------------------------------------------------
26. Type of Sidewalk Cafe:  27. Length of Rental Period:  28. Hours of Weekday Use:  29. Hours of Weekend Use
    |_| Enclosed                                              From _____ to _____        From _____ to _____
    |_| Unenclosed
=============================================================================================================
(D) APPROVALS (OFFICIAL USE ONLY)
=============================================================================================================
|_| PERMIT CONTROL                                          DPW - PUBLIC SPACE WIDTHS/RESTRICTIONS
-------------------------------------------------------------------------------------------------------------
1. Fine Arts by: __________________ Date: _________
2. Land Mark by: __________________ Date: _________    Street Name: _________________________________________
3. PADC by: _______________________ Date: _________    Street Width: ________________________________________
4. WMATA by: ______________________ Date: _________    Road Width: __________________________________________
                                                       Sidewalk Width: ______________________________________
5. Control by: ____________________ Date: _________    Parking: _____________________________________________
                                                       Restrictions: ________________________________________
-------------------------------------------------------------------------------------------------------------
  |_| DPW WATER/SEWER          |_| ZONING                             |_| STREETSCAPE
-------------------------------------------------------------------------------------------------------------
Approved by:      Date:       District:       By:      Date:         Approved by:          Date:

-------------------------------------------------------------------------------------------------------------
                                                                     PUBLIC SPACE APPROVAL STAMP
Restrictions of Permit:                                      ------------------------------------------------

                                                                           Deposit Number:
                                                             ------------------------------------------------

=============================================================================================================
(E) FINAL APPROVAL FOR PERMIT ISSUANCE (OFFICIAL USE ONLY)
=============================================================================================================
      Permit Type                   Approved by    Approval    Deposit Amount    Permit Number    Expiration
                                                     Date            ($)                              Date
-------------------------------------------------------------------------------------------------------------
Temporary Occupancy

-------------------------------------------------------------------------------------------------------------
Excavation, Sweeping and Storing

-------------------------------------------------------------------------------------------------------------
Construct Sidewalks,
Curbs, Gutter Alley
-------------------------------------------------------------------------------------------------------------
Walls, Fences, Copings
Landscapes, Plant
Hedges, Paved Parking
-------------------------------------------------------------------------------------------------------------
Trees

-------------------------------------------------------------------------------------------------------------
Driveway Construction

-------------------------------------------------------------------------------------------------------------
Sidewalk Gate

-------------------------------------------------------------------------------------------------------------
Other

-------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                      -------------------------------------
                                   EXHIBIT A-2
                                       TO
                                SECOND AMENDMENT
                                       TO
                               AGREEMENT OF LEASE
                                   (COVENANT)
                      -------------------------------------

<PAGE>

                     GOVERNMENT OF THE DISTRICT OF COLUMBIA
                 DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS
                                WASHINGTON, D.C.

                    COVENANT FOR USE OF SPECIAL MATERIAL ON
                          THE SIDEWALK AND/OR PARKING

KNOW ALL PERSONS BY THESE PRESENTS:

      WHEREAS, 1112 Nineteenth Street Associates are the Owner(s) of the
following described property in Washington, D.C. located at the following street
address: 1112 19th Street N.W. Washington, D.C.; Lot 877, Square 117, hereafter
referred to as "said property"; and

      WHEREAS, the Owner(s) of said property(ies) has applied to the District
for the issuance of a public space permit in accordance with the provisions of
24 DCMR Chapter 1, Section 100.1 ET SEQ, (1985) as amended; and

      WHEREAS, the Owner(s) of said property(ies) has requested that the
District authorize the use of nonstandard paving materials for paving of the
public parking, sidewalks, and (other public space), hereinafter referred to as
"abutting public spaces," as described in Exhibit A attached hereto; and

      WHEREAS, the Owner(s) of said property(ies) has submitted a proposal,
hereinafter referred to as "the paving proposal: attached hereto as Exhibit B,
for the use of nonstandard materials for paving said abutting public space; and

      WHEREAS, the rules and regulations of the District of Columbia authorize
the Mayor, or his agent, designee, or representative to impose such conditions
on the issuance of said permit as the Mayor may require, 24 DCMR Chapter 1,
Section 100.1 ET SEQ, (1985), as amended; and

      WHEREAS, the District has reviewed and accepted said proposal (as
amended); and

      WHEREAS, the Owner(s) of said property(ies) desires to meet the conditions
and requests of the District by complying with all of the terms and conditions
of said permit.

      NOW, THEREFORE, in consideration of the foregoing and in consideration of
the issuance of the permit for construction, the Owner(s), for themselves, their
heirs, successors and assignee does hereby declare that said property
shall be held transferred, sold and conveyed subject to the restrictions hereto
set forth to wit:

1.    That no right, title, or interest of the public as thereby acquired,
      waived or abridged.

2.    That the Owner(s) shall pave the abutting public space in accordance with
      the requirements set forth in the permit conditions and in accordance with
      the paving proposal attached hereto as Exhibit B.

3.    That the District has the legal right to authorize work and/or issue
      permits for cuts to be made in the said paving and will do so without the
      permission of, or notice to, the property owner.

4.    That, without prior notice from the District of Columbia, the Owner(s)
      shall maintain and repair the abutting public space until such time, and
      upon such conditions as the District may require to extinguish said
      covenant;

5.    That the Owner(s) shall maintain and keep abutting public space to a clean
      and safe condition at all times, without the need of prior notice by the
      District.

6.    That repair(s) of aforesaid public space undertaken by the Owner(s) shall
      be made pursuant to a permit issued by the District of Columbia. Repairs
      shall be made by and at the expense and risk of the Owner(s).

7.    That whenever the Mayor finds that said paving is in such condition as to
      be immediately dangerous to persons or property, upon notice so to do, the
      Owner(s) will make the pavement safe and secure within 72 hours of the
      date said notice is served. That in a case where the public safety
      requires immediate action, the Mayor may use such materials, equipment,
      workmen and assistants as may be necessary, to make the paving safe and
      secure.

8.    That the Owner(s) agrees to stockpile the original paving material at a
      minimum of ten percent of the total paved area and to retain this
      percentage of stockpiled materials on site for all future repairs.

DPW-90-300
(4/3/90)
<PAGE>
                                                                               2

9.    That if the District must authorize or perform excavations in said public
      space for the purpose of maintaining, repairing, or installing utilities
      in said abutting public space, or for any other public purpose, the
      Owner(s) agrees to supply the District with such quantities of stockpiled
      materials as are needed to complete repairs. The Owner(s) shall supply
      said stockpiled materials within 72 hours of the District's request
      therefore.

10.   The Owner(s) hereby relieves the District of all duty to repair or
      maintain said abutting public space until such time, and upon such
      condition as the District agrees to extinguish these covenants.

11.   That upon the failure of the Owner(s) to repair or maintain said abutting
      public space in a safe condition, or the failure of the Owner(s) to supply
      stockpiled materials for utility cut repairs, the District has the right
      to cause temporary or permanent repairs using asphalt or standard paving
      materials.

12.   That the Owner(s) shall reimburse the District for any expense the
      District occurs in making any repairs to abutting public spaces.

13.   That the Owner(s) shall indemnify and save harmless the District and all
      of its officers, agents, and servants against any and all claims or
      liability from whatever sources whatsoever, arising from, [ILLEGIBLE] on
      or, as a result of any act, occurrence, or default of the Owner(s) as
      designing, constructing, paving, [ILLEGIBLE] or repairing said
      abutting public space.

14.   That the District shall have the right to extinguish this Covenant at any
      time and repave said abutting public space using District standard
      materials.

15.   That the written consent of the District shall be required prior to the
      extinguishment of any of the covenants described herein in a document
      recordable at the office of the Recorder of Deeds for the District of
      Columbia and recorded at no expense to the District. Such consent to
      extinguishment shall be given at such time as the District shall issue a
      permit enabling the Owners to replace the nonstandard paving materials
      with District standard materials. The cost of repaving said abutting
      public space with standard District paving materials shall be borne by the
      Owner(s).

16.   That the covenants contained herein shall be deemed real covenants and
      shall run with the land and shall bind the Owner(s) and their heirs,
      successors and assigns.

17.   That the District shall have the right to specifically enforce this
      Declaration.

                           [SIGNATURE PAGE TO FOLLOW]

<PAGE>

                        (SIGNATURE PAGE - JOINT VENTURE]

      IN WITNESS WHEREOF, the undersigned joint venture, the owner of Lot(s)____
in Square(s) ___________, has caused these presents to be executed in its
name, and does hereby constitute and appoint ___________ as its true and lawful
attorney-in-fact for itself and in its name to appear before any officer
authorized by law to take and certify acknowledgements and then and there to
acknowledge and deliver these presents as its act and deed.

                                         1112 19th Street Associates
                                         ---------------------------------------
                                         Joint Venture
Witness:

/s/ L.A. Johnson                      By: Thaddeus A. Lindner, by [ILLEGIBLE]
-------------------------------           --------------------------------------
                                          Title
Corporate Seal (if applicable)

Witness:

/s/ L.A. Johnson                      By: Sergius Gambal, by [ILLEGIBLE]
-------------------------------           --------------------------------------
                                          Title
Corporate Seal (if applicable)

         DISTRICT OF COLUMBIA,
         as:

      I, L. A. Johnson, a Notary Public, in and for the District of Columbia, do
hereby, certify that Russel C. Lindner as agent for Thaddeus A. Lindner and
Sergius Gambal being personally well-known to me as the authorized
representative(s) of 1112 19th Street Associates, a joint venture, a party to
the foregoing attached Covenant bearing the date of the _______ day of
_________________, 19 _____, and the owner of Lot(s) __________ in Square(s)
___________, appeared before me and acknowledged said Declaration to be the
joint venture's act and deed.

      Given under my hand and seal this 5th day of May, 1999.

                                         /s/ L. A. Johnson
                                         ---------------------------------------
                                         Notary Public

My Commission Expires: 11/30/99

                                                      L. A. Johnson
                                           Notary Public, District of Columbia
                                         My Commission Expires November 30, 1999

<PAGE>

                     (SIGNATURE PAGE - DISTRICT OF COLUMBIA)

      IN WITNESS WHEREOF, the Mayor of the District of Columbia, having first
considered and approved the foregoing Covenants, has directed the execution
thereof in the name of said District of Columbia, by the Secretary of the
District of Columbia, who has hereto set his hand and affixed the seal of the
District of Columbia hereto under authority of the Act of Congress entitled
"An Act to Relieve the Commissioners of the District of Columbia of Certain
Ministerial Duties" approved February 11, 1932.

                                        DISTRICT OF COLUMBIA
                                        (a municipal corporation)

WITNESS:                            By:
                                        ----------------------------------------
                                        Secretary,
                                        District of Columbia
(CORPORATE SEAL)

DISTRICT OF COLUMBIA, as:

      I, ____________________________, a Notary Public in and for the
District of Columbia, do hereby certify that
_____________________________________, who is personally well-known to me as
the person named as Secretary of the District of Columbia in the foregoing
Covenant bearing date on the _______ day of _________________, 19 ____, and
hereunto annexed, personally appeared before me in said District and, as
Secretary aforesaid, and by virtue of the authority in him vested,
acknowledged the same to be the act and deed of the Mayor of the District of
Columbia.

      Given under my hand and seal this _______ day of _______________, 19 ____.

                                         ---------------------------------------
                                         Notary Public

My Commission Expires: ___________________________________

APPROVED:

-------------------------------------
Deputy Corporation Counsel

<PAGE>

                              PUBLIC SPACE COVENANT

                               Table of Exhibits

1. Exhibit A - Metes and bounds description of the area to be paved.

2. Exhibit B - A written description of the materials to be used, total square
               footage to be paved, and any details pertinent to the execution
               of the pavement proposal.

<PAGE>

                                    GUARANTY

      THIS GUARANTY is made and entered into as of the 8th day of July, 1998, by
The New York Restaurant Group, Inc., a Delaware corporation ("Guarantor"), to
and for the benefit of 1112 Nineteenth Street Associates, a D.C. joint venture,
and its successors and assigns ("Landlord").

                                   BACKGROUND

      A. Concurrently with the execution of this Guaranty, Landlord and S & W
D.C., L.L.C., a Delaware limited liability company ("Tenant") have entered into
that certain Agreement of Lease of even date herewith (the "Lease"), regarding
certain premises located in 1112 19th Street, N.W., Washington, D.C. (the
"Premises") and more fully described in the Lease.

      B. Guarantor owns all of the interests in stock of Tenant and therefore
has a direct financial interest in Tenant.

      C. The parties recognize that Landlord agreed to the Lease solely because
Guarantor agreed to guaranty the timely payment and performance of all of the
obligations of Tenant and its successors and assigns under the Lease, and that
such guaranty was and is a material inducement to the execution and delivery of
the Lease by Landlord.

      D. Guarantor warrants and acknowledges that because of its financial
interest in Tenant and in the benefits and advantages which will result from the
Lease, it is and will be significantly benefited by the Lease.

                                    AGREEMENT

      NOW, THEREFORE, in consideration of the foregoing and as an inducement for
the granting, execution and delivery of the Lease, the sum of Ten Dollars
($10.00), and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Guarantor hereby unconditionally and
irrevocably guarantees, promises and agrees as follows:

      1. GUARANTY OF PAYMENT AND PERFORMANCE.

            (a) Guarantor hereby guaranties to Landlord, absolutely,
unconditionally and irrevocably, (a) the full and prompt payment of all sums
which may at any time become due under the Lease, including, but not limited to,
Base Rent, Percentage Rent and Additional Rent, and all other sums and charges
(collectively referred to as "Tenant's Monetary Obligations") which the Tenant
is obligated to pay to or on behalf of Landlord or to pay to third parties under
the provisions of the Lease, and (b) the full and timely performance and
observance of all of the covenants, terms, conditions and agreements provided in
the Lease to be performed and observed

<PAGE>

by Tenant (collectively referred to as "Tenant's Non-Monetary Obligations").
Guarantor hereby covenants and agrees to and with Landlord that if at any time
Tenant shall fail to make payment when due of any of Tenant's Monetary
Obligations, or if at any time Tenant shall fail to perform and observe when and
as required any of the Tenant's Non-Monetary Obligations, Guarantor shall
forthwith pay the Tenant's Monetary Obligations to Landlord and any arrears
thereof, and shall forthwith faithfully and punctually perform and fulfill all
of the Tenant's Non-Monetary Obligations and, in addition thereto, shall
forthwith pay to Landlord all reasonable attorneys' fees and disbursements
incurred by Landlord or caused by any such default or the enforcement of this
Guaranty.

            (b) Guarantor covenants that, within one hundred twenty (120) days
after the end of each calendar year, it shall furnish Landlord current,
certified financial statements satisfying the requirements of Paragraph 30.2 of
the Lease.

      2. NATURE OF GUARANTY. This Guaranty is an absolute and unconditional
guaranty of payment (and not merely of collection) and of performance of Tenant,
its successors and assigns under or pursuant to the Lease. The liabilities of
Guarantor are primary, irrevocable and co-extensive with that of Tenant and also
joint and several with that of Tenant and one another, and this Guaranty shall
be enforceable against Guarantor without the necessity of any suit or proceeding
on Landlord's part of any kind or nature whatsoever against Tenant and without
the necessity of any notice of non-payment, non-performance or non-observance or
of any notice of acceptance of this Guaranty or of any other notice or demand to
which Guarantor might otherwise be entitled, all of which Guarantor hereby
expressly waives. Guarantor hereby expressly agrees that the validity of this
Guaranty and the obligations of Guarantor hereunder shall in no way be
terminated, affected, diminished or impaired by reason of (a) the assertion of,
or the failure to assert by Landlord, against Tenant any of the rights or
remedies reserved to Landlord pursuant to the terms, covenants and conditions of
the Lease, or (b) any non-liability of Tenant under the Lease, whether by
insolvency, discharge in bankruptcy, or any other defect or defense which may
now or hereafter exist in favor of Tenant.

      3. CONTINUING GUARANTY. This Guaranty shall be a continuing guaranty, and
it is expressly agreed that the liability of Guarantor hereunder shall in no way
be affected, modified or diminished by reason of (a) any assignment, renewal,
modification, amendment, extension or waiver of the Lease or any of the terms,
covenants and conditions thereof, even if the effect of such assignment,
renewal, modification, amendment, extension or waiver shall be to increase the
obligations of Guarantor hereunder, or (b) any extension of time that may be
granted by Landlord to Tenant, or (c) any consent, release, indulgence or other
action, inaction or omission under or in respect of the Lease, or (d) any
dealings or transactions or matter or thing occurring between Landlord and
Tenant, or (e) any bankruptcy, insolvency, reorganization, liquidation,
arrangement, assignment for the benefit of creditors, receivership, trusteeship
or similar proceeding affecting Tenant, or (f) any obligation under the Lease
being or becoming unenforceable, whether or not notice of any of the events
described in this paragraph 3 is given to Guarantor.

      4. BANKRUPTCY. Should Landlord be obligated by any bankruptcy or other law
to repay to Tenant or to Guarantor or to any trustee, receiver or other
representative of either of

                                       -2-
<PAGE>

them, any amounts previously paid, this Guaranty shall be reinstated in the
amount of such repayments. Landlord shall not be required to litigate or
otherwise dispute any obligation to make such repayments if it in good faith
believes that any such obligation exists.

      5. NO WAIVER. No delay on the part of Landlord in exercising any right,
power or privilege under this Guaranty or failure to exercise the same shall
operate as a waiver of or otherwise affect any such right, power or privilege,
nor shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

      6. MODIFICATION. No waiver or modification of any provision of this
Guaranty nor any termination of this Guaranty shall be effective unless in
writing and signed by Landlord; nor shall any such waiver be applicable except
in the specific instance for which it is given.

      7. REMEDIES. All of Landlord's rights and remedies under the Lease and
under this Guaranty, now or hereafter existing at law or in equity or by statute
or otherwise, are intended to be distinct, separate and cumulative and no
exercise or partial exercise of any such right or remedy therein or herein
mentioned is intended to be in exclusion of or a waiver of any of the others.

      8. NO SUBROGATION. No payment or performance by Guarantor pursuant to any
provision hereof or otherwise shall entitle Guarantor, by subrogation or
otherwise, to the rights of Landlord to any payment by Tenant or out of the
property of Tenant, except after payment of all sums and fulfillment of all
covenants, terms, conditions or agreements to be paid or performed by Tenant and
its successors or assigns under the Lease.

      9. ESTOPPEL. Guarantor agrees that it will, at any time and from time to
time, within ten (10) days following written request by Landlord, execute,
acknowledge and deliver to Landlord a statement certifying that this Guaranty is
unmodified and in full force and effect (or if there have been modifications,
that the same is in full force and effect as modified and stating such
modification). Guarantor agrees that such certificate may be relied on by anyone
holding or proposing to acquire any interest in the "Premises", the "Building"
or the "Land" (as those terms are defined in the Lease) from or through Landlord
or by the holder of any mortgage or prospective holder of any mortgage or of any
interest therein.

      10. SPECIFIC PERFORMANCE. Guarantor covenants, warrants and agrees with
Landlord, and is hereby irrevocably estopped from denying, that the subject
matter of this Guaranty is unique, that any failure to perform the covenants,
agreements, conditions and obligations under this Guaranty shall cause
irreparable injury and damage to Landlord, and that, accordingly, in addition to
and without limiting, reducing, altering, or otherwise affecting any of the
rights of Landlord at law or in equity to seek damages or other relief, Landlord
shall have the right to obtain from any court of competent jurisdiction an order
or decree compelling specific performance by Guarantor of this Guaranty and of
all the obligations, undertakings, conditions, agreements, covenants and other
provision of this Guaranty.

                                      -3-
<PAGE>

      11. SEVERABILITY. If any provision of this Guaranty shall be declared to
be unenforceable in whole or in part by a court of competent jurisdiction, that
part of this Guaranty found to be unenforceable shall be deemed stricken and
severed and the remaining provisions and portions shall continue in full force
and effect.

      12. SUCCESSORS AND ASSIGNS. Guarantor agrees that this Guaranty shall
inure to the benefit of and may be enforced by Landlord and its successors and
assigns, and shall be binding upon and enforceable against Guarantor and its
legal representatives, successors and assigns.

      13. GOVERNING LAW. This Guaranty, the rights and obligations of the
parties hereto, and any claims or disputes relating thereto, shall be governed
by and construed in accordance with the internal laws of the District of
Columbia (and without regard to any conflicts-of-law principles). Should any
provision of this Guaranty require judicial interpretation, it is agreed that
the court interpreting or considering same shall not apply the presumption that
the provisions hereof shall be more strictly construed against a party by reason
of the rule or conclusion that a document should be construed more strictly
against the party who itself or through its agent prepared the same, it being
agreed that all parties hereto have participated in the preparation of this
Guaranty and that each party consulted legal counsel before the execution of
this Guaranty.

      14. LANDLORD'S SIGNATURE NOT NECESSARY. This Guaranty may be enforced by
Landlord without the necessity of its signature appearing hereon.

      15. NOTICES. Any notice provided, required or permitted to be given by
either party to the other under this Guaranty must be in writing, and may be
served (i) by depositing the same in the United States mail, addressed to the
party to be notified, postage prepaid, and registered or certified, with return
receipt requested; (ii) by hand-delivery with a receipt therefor; (iii) by
nationally recognized overnight delivery service, such as Federal Express,
Purolator or Emery; or (iv) by telecopy or facsimile service. For purposes of
notices, the addresses of the parties shall be as follows:

      If to Landlord:

             2145 K Street, N.W.
             Washington, D.C. 20037
             Attn: Mr. Thaddeus A. Lindner
                   Mr. Sergius Gambal
             Facsimile: (202) 778-1656

             with copies to:

             Mr. Russell C. Lindner
             The Forge Company
             2145 K Street, N.W.
             Washington, D.C. 20037
             Facsimile: (202) 778-1656

                                      -4-
<PAGE>

                   -and-

             Jerry R. O'Conor, Esquire
             Tucker, Flyer & Lewis, P.C.
             1615 L Street, N.W., Suite 400
             Washington, D.C. 20036-5612
             Facsimile: (202) 429-3231

If to Guarantor:

             The New York Restaurant Group, Inc.
             1114 First Avenue, 6th Floor
             New York, New York 10021
             Attn: Mr. James Dunn, President
             Facsimile: (212) 758-6027

             with copies to:

             Joseph E. Porcelli, Esquire
             Maloney & Porcelli
             225 Broadway, Suite 2812
             New York, New York 10007-3065
             Facsimile: (212) 227-8795

                   -and-

             The New York Restaurant Group, Inc.
             1114 First Avenue, 6th Floor
             New York, New York 10021
             Attn: Mr. Mark Levine
             Facsimile: (212) 758-6027

Either party may, by written notice to the other, designate a new address to
which such notices shall be directed. All notices shall be effective upon
receipt or refusal to accept receipt. If any mortgagee shall notify Tenant that
it is the holder of a mortgage affecting the Premises or any part thereof, no
notice, request or demand thereafter sent by Tenant to Landlord shall be
effective until a copy of same shall be sent to such mortgagee in the manner
prescribed in this Section at such address as such mortgagee shall designate.

      16. GUARANTOR'S AUTHORITY. Guarantor shall, concurrently with the signing
of this Guaranty, furnish to Landlord certified copies of the resolutions of its
board of directors authorizing Guarantor to enter into this Guaranty. Moreover,
each individual executing this Guaranty on behalf of Guarantor hereby represents
and warrants that (i) he or she is duly authorized to execute and deliver this
Guaranty, (ii) Guarantor is a duly organized corporation under the laws of the
State of Delaware, is qualified to do business in the District of Columbia, is
in good standing under the laws of the State of Delaware and the laws of the
District of

                                      -5-
<PAGE>

Columbia, and has the power and authority to enter into this Lease, and (iii)
all corporate action requisite to authorize Guarantor to enter into this
Guaranty has been duly taken.

      17. REMEDIES CUMULATIVE; NO WAIVER. All rights and remedies given herein
and/or by law or in equity to Landlord are separate, distinct and cumulative,
and none of them, whether exercised by Landlord or not, shall be deemed to be in
exclusion of any other. No failure of Landlord to exercise any power given
Landlord hereunder, and no custom or practice of the parties at variance with
the terms hereof shall constitute a waiver of Landlord's right to demand exact
compliance with the terms hereof. Receipt by Landlord of any Base Rent,
Percentage Rent, or Additional Rent with knowledge of the breach of any
provisions hereof shall not constitute a waiver of such breach and no waiver by
Landlord of any provision hereof shall be deemed to have been made unless made
in writing.

      18.1 WAIVER OF JURY TRIAL, ETC. TO INDUCE LANDLORD TO ENTER INTO THE
GUARANTY, GUARANTOR WAIVES ANY RIGHT TO A TRIAL BY JURY OF ANY OR ALL ISSUES
ARISING IN ANY ACTION OR PROCEEDING BETWEEN GUARANTOR AND LANDLORD OR ITS
SUCCESSORS OR ASSIGNS, UNDER OR IN CONNECTION WITH THE LEASE, THIS GUARANTY OR
ANY OF ITS PROVISIONS OR ANY OTHER DOCUMENTS RELATING THERETO. IT IS AGREED AND
UNDERSTOOD THAT ANY ACTION, SUIT OR PROCEEDING PERTAINING TO THIS GUARANTY OR
THE LEASE SHALL BE TRIED ONLY BY A COURT AND NOT BY A JURY, AND THIS WAIVER
CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH
ACTIONS, SUITS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT
PARTIES TO THIS GUARANTY OR THE LEASE. GUARANTOR ACKNOWLEDGES THAT THE PARTIES
WISH TO STREAMLINE AND MINIMIZE THE COST OF THE DISPUTE RESOLUTION PROCESS BY
AGREEING TO WAIVE THE RIGHT TO A JURY TRIAL. THIS WAIVER IS KNOWINGLY,
INTENTIONALLY AND VOLUNTARILY MADE BY GUARANTOR, AND GUARANTOR ACKNOWLEDGES THAT
NEITHER LANDLORD NOR ANY PERSON ACTING ON BEHALF OF LANDLORD HAS MADE ANY
REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO
MODIFY OR NULLIFY ITS EFFECT. GUARANTOR FURTHER ACKNOWLEDGES THAT IT HAS BEEN
REPRESENTED IN THE SIGNING OF THIS GUARANTY AND IN THE MAKING OF THIS WAIVER BY
INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS
DISCUSSED THIS WAIVER WITH COUNSEL. GUARANTOR ACKNOWLEDGES AND AGREES THAT THIS
PROVISION IS A SPECIFIC AND MATERIAL ASPECT OF THE AGREEMENT BETWEEN THE PARTIES
AND THAT LANDLORD WOULD NOT ENTER INTO THE LEASE WITH THE TENANT IF THIS
GUARANTY WERE NOT EXECUTED AND DELIVERED.

      18.2 CONSENT TO JURISDICTION. LANDLORD AND GUARANTOR EACH CONSENTS TO AND
SUBMITS TO IN PERSONAM JURISDICTION AND VENUE IN THE DISTRICT OF COLUMBIA, AND
IN THE FEDERAL DISTRICT COURTS WHICH ARE LOCATED IN THE DISTRICT OF COLUMBIA.
LANDLORD AND GUARANTOR EACH ASSERTS THAT IT HAS PURPOSEFULLY AVAILED ITSELF OF
THE BENEFITS OF THE LAWS OF THE DISTRICT OF COLUMBIA AND WAIVES ANY OBJECTION TO
IN

                                      -6-

<PAGE>

PERSONAM JURISDICTION ON THE GROUNDS OF MINIMUM CONTACTS, WAIVES ANY OBJECTION
TO VENUE, AND WAIVES ANY PLEA OF FORUM NON CONVENIENS, THIS CONSENT TO AND
SUBMISSION TO JURISDICTION IS WITH REGARD TO ANY ACTION RELATED TO THIS LEASE.
REGARDLESS OF WHETHER LANDLORD OR GUARANTOR'S ACTIONS TOOK PLACE IN THE DISTRICT
OF COLUMBIA OR ELSEWHERE IN THE UNITED STATES, THIS SUBMISSION TO JURISDICTION
IS NONEXCLUSIVE, AND DOES NOT PRECLUDE THE OTHER PARTY FROM OBTAINING
JURISDICTION OVER GUARANTOR OR LANDLORD IN ANY COURT OTHERWISE HAVING
JURISDICTION.

      IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the day and
year first above written.

                                         GUARANTOR:

ATTEST:                                  The New York Restaurant Group, Inc.,
                                         a Delaware corporation

/s/ Mark Levine                          By: /s/ James Dunn
-------------------------------------        -----------------------------------
                            Secretary    Name: James Dunn
                                               ---------------------------------
                                         Title: President
                                                --------------------------------

                                     - 7 -<PAGE>

                                                                    Exhibit 10.9

                               PENNSYLVANIA PLAZA

                 601 PENNSYLVANIA AVENUE, N.W., NORTH BUILDING,
                                WASHINGTON, D.C.

                                 LEASE AGREEMENT

                                 BY AND BETWEEN

                          PENNSYLVANIA PLAZA ASSOCIATES

                                       AND

                             M.O.C. OF MIAMI, L.L.C.
<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE 1
      DEFINITIONS ...........................................................  1

ARTICLE 2
      PREMISES ..............................................................  2

ARTICLE 3
      LEASE TERM ............................................................  2

ARTICLE 4
      BASE RENT .............................................................  3

ARTICLE 5
      REAL ESTATE TAXES .....................................................  5

ARTICLE 6
      USE OF PREMISES .......................................................  7

ARTICLE 7
      ASSIGNMENT AND SUBLETTING ............................................. 11

ARTICLE 8
      MAINTENANCE AND REPAIRS ............................................... 14

ARTICLE 9
      ALTERATIONS ........................................................... 16

ARTICLE 10
      SIGNS ................................................................. 19

ARTICLE 11
      [OMITTED] ............................................................. 19

ARTICLE 12
      [OMITTED] ............................................................. 19

ARTICLE 13
      ENTRY BY LANDLORD ..................................................... 20

                                       ii
<PAGE>

ARTICLE 14
      INSURANCE ............................................................. 20

ARTICLE 15
      SERVICES AND UTILITIES ................................................ 22

ARTICLE 16
      LIABILITY OF LANDLORD ................................................. 25

ARTICLE 17
      RULES ................................................................. 27

ARTICLE 18
      DAMAGE OR DESTRUCTION ................................................. 27

ARTICLE 19
      CONDEMNATION .......................................................... 29

ARTICLE 20
      DEFAULT ............................................................... 29

ARTICLE 21
      BANKRUPTCY ............................................................ 34

ARTICLE 22
      SUBORDINATION ......................................................... 36

ARTICLE 23
      HOLDING OVER .......................................................... 38

ARTICLE 24
      COVENANTS OF LANDLORD ................................................. 38

ARTICLE 25
      [OMITTED] ............................................................. 39

ARTICLE 26
      GENERAL PROVISIONS .................................................... 39

ARTICLE 27
      OPTIONS TO EXTEND ..................................................... 45

                                      iii
<PAGE>

EXHIBIT A - Premises
EXHIBIT B - Outdoor Seating Area
EXHIBIT C - Rules
EXHIBIT D - Certificate Affirming the Lease Commencement Date
EXHIBIT E - Signage Exhibit
EXHIBIT F - Guaranty

                                       iv
<PAGE>

                             TABLE OF DEFINED TERMS
Term                                                                     Section
----                                                                     -------
ADA ............................................................            6.12
Adjustment Index ...............................................          4.2(a)
Affiliate ......................................................             7.5
Alterations ....................................................             9.1
Bankruptcy Code ................................................            21.1
Beginning Index ................................................          4.2(a)
Building .......................................................          1.1(a)
Condemned ......................................................            19.1
Control ........................................................             7.5
Default Rate ...................................................            20.6
Event of Bankruptcy ............................................            21.1
Event of Default ...............................................            20.1
Force Majeure ..................................................           26.60
Guarantor ......................................................          1.1(k)
Index ..........................................................          4.2(a)
Insolvency Laws ................................................            21.1
Invitees .......................................................             8.1
Land ...........................................................          2.1(b)
Landlord .......................................................    Introduction
Laws ...........................................................             6.1
Lease ..........................................................    Introduction
Lease Commencement Date ........................................             3.2
Lease Term .....................................................          1.1(f)
Lease Year .....................................................             3.3
Minimum Hours of Operation .... ................................          1.1(b)
Mortgages ......................................................            22.1
Notices ........................................................            26.6
Permitted Person ...............................................           26.27
Premises .......................................................          1.1(b)
Real Estate Taxes ..............................................          5.1(b)
Rent ...........................................................           26.18
Subject Space ..................................................          7.1(a)
Tenant .........................................................    Introduction
Tenant Address for Notice ......................................          1.1(g)
Tenant's Proportionate Share ...................................          1.1(e)
Tenant's Trade Names ...........................................          1.1(h)
Transferee .....................................................          7.1(a)
Transfer Notice ................................................          7.1(a)
Transfers ......................................................  7.1(a) and 7.5
Trustee ........................................................         21.1(a)

                                       v
<PAGE>

                                 LEASE AGREEMENT

      THIS LEASE AGREEMENT (this "Lease") is dated as of April 7, 1999, by and
between PENNSYLVANIA PLAZA ASSOCIATES, a District of Columbia limited
partnership ("Landlord"), and M.O.C. OF MIAMI, L.L.C., a Delaware limited
liability company ("Tenant").

                                    ARTICLE 1
                                   DEFINITIONS

      1.1 (a) Building: an office building located at 601 Pennsylvania Avenue,
N.W., North Building, Washington, D.C. 20004.

            (b) Premises: The Premises is illustrated on Exhibit A attached
hereto.

            (c) Base Rent: (i) Two Hundred Twenty Thousand Dollars ($220,000)
per Lease Year for the first (1st) through fifth (5th) Lease Years; and (ii) Two
Hundred Forty-Five Thousand Dollars ($245,000) per Lease Year for the sixth
(6th) through tenth (10th) Lease Years.

            (d) [Omitted.]

            (e) Tenant's Proportionate Share: 3.76%.

            (f) Lease Term: one hundred twenty (120) months.

            (g) Tenant Address for Notices: 601 Pennsylvania Avenue, N.W., North
Building, Washington, D.C. 20004, with a copy to 1114 First Avenue, New York,
New York 10021, Facsimile No.: (212) 758-6027.

            (h) Tenant's Trade Names: Manhattan Ocean Club and/or any other
trade name used to identify first-class, high quality, "white tablecloth"
restaurants operated by The New York Restaurant Group, Inc. as of the Lease
Commencement Date or at any time in the future so long as the standards of
operation of such future restaurants are consistent with the operations of the
Manhattan Ocean Club as of the date first written above.

            (i) [Omitted.]

            (j) Minimum Hours of Operation: Monday through Friday, 11 a.m. -
2:30 p.m. and 5:30 p.m. - 10:00 p.m., and Saturday, 5:30 p.m. - 10:00 p.m.

            (k) Guarantor: The New York Restaurant Group, Inc., a Delaware
corporation
<PAGE>

                                    ARTICLE 2
                                    PREMISES

      2.1 Landlord hereby leases to Tenant, and Tenant hereby leases from
Landlord, the Premises, for the term and upon the terms, conditions and
covenants set forth herein. The Premises are outlined on Exhibit A, which is
attached hereto for locational purposes only. Tenant's rights to the Premises do
not include the right to use, or access to, the janitorial closet or the fan,
electrical, mechanical or telephone rooms on the floors of the Building. The
term "Land" as used in this Lease shall mean the land upon which the Building
stands and the land surrounding the Building which is designated from time to
time by Landlord as appurtenant to or servicing the Building.

                                    ARTICLE 3
                                   LEASE TERM

      3.1 The terms and provisions of this Lease shall be effective as of the
date of this Lease except for the provisions of this Lease relating to the
payment of Base Rent and monthly additional rent pursuant to Article 5 below.
The term of this Lease shall be the Lease Term. The Lease Term shall commence on
the Lease Commencement Date (as defined in Section 3.2) and shall continue for
the period set forth in Section 1.1 (f), unless this Lease is sooner terminated
as hereinafter provided. If the Lease Commencement Date is not the first day of
a month, then the Lease Term shall be the period set forth in Section 1.1(f)
plus the partial month in which the Lease Commencement Date occurs. The Lease
Term shall also include any renewal or extension of the term of this Lease.

      3.2 The "Lease Commencement Date" shall be the earlier of (a) September 1,
1999, or (b) the date upon which Tenant commences conduct of its business in the
Premises. As of the date of this Lease, it is anticipated that the Premises will
be delivered to Tenant on or about April 9, 1999; provided, however, if Landlord
does not deliver possession of the Premises to Tenant by such date, Landlord
shall not have any liability whatsoever to Tenant or otherwise, and this Lease
shall not be rendered void or voidable as a result thereof. Landlord will
deliver the Premises to Tenant on or promptly following its receipt of
possession of the Premises free of all rights of the current tenant thereof.
Promptly after the Lease Commencement Date has occurred, Landlord and Tenant
shall execute a certificate substantially in the form of Exhibit D hereto
confirming the Lease Commencement Date and the date upon which the Lease Term
expires.

      3.3 As used in this Lease, the term "Lease Year" shall mean a period of
twelve (12) consecutive months, the first such Lease Year to commence on the
Lease Commencement Date, and each successive twelve (12) month period
thereafter; provided, however, if the Lease Commencement Date is not the first
day of a calendar month, then the second Lease Year shall commence on the first
day of the month following the month in which the first anniversary of the Lease
Commencement Date occurs.

                                       2
<PAGE>

                                    ARTICLE 4
                                    BASE RENT

      4.1 During the Lease Term, Tenant shall pay the Base Rent specified in
Section 1.1(c). The Base Rent shall be due and payable in equal monthly
installments, without notice, demand, setoff or deduction, in advance on the
first day of each month during each Lease Year. On or before the Lease
Commencement Date, Tenant shall pay to Landlord an amount equal to one (1)
monthly installment of the Base Rent payable during the first Lease Year, which
amount shall be credited toward the monthly installment of the Base Rent payable
for the first full calendar month of the Lease Term. If the Lease Commencement
Date is not the first day of a month, then the Base Rent from the Lease
Commencement Date until the first day of the following month shall be prorated
on a per diem basis, and Tenant shall pay such prorated installment of the Base
Rent on the Lease Commencement Date. If any rental payment date (including the
Lease Commencement Date) falls on a day other than the first day of a calendar
month or if any rental payment is for a period which is shorter than one (1)
calendar month, the rent for any fractional month shall accrue on a daily basis
at a rate which is equal to the daily rate of rent applicable to the subject
calendar month. All other payments or adjustments required to be made under the
terms of this Lease that require proration on a time-basis shall be prorated on
the same basis.

      4.2 Commencing on the first (1st) day of the second (2nd) Lease Year and
on the first (1st) day of every Lease Year thereafter, the Base Rent specified
in Subsection 1.1(c) shall be adjusted to reflect increases in the cost of
living in the following manner:

            (a) As used herein, the term "Index" shall mean the Revised Consumer
Price Index for Urban Wage Earners and Clerical Workers (revised CPI-W), All
Items, Baltimore, MD - Washington, D.C., VA, WV CMSA, November, 1996=100, issued
by the Bureau of Labor Statistics of the United States Department of Labor. As
used herein, the term "Adjustment Index" shall mean the Index which is published
for the bimonthly period that includes the month immediately preceding the Lease
Year for which an adjustment is to be made pursuant to this Section 4.2. As used
herein, the term "Beginning Index" shall mean the Index published for the
bimonthly period that includes the month immediately preceding the month in
which the first (1st) day of the first (1st) Lease Year occurs. On the first day
of the second (2nd) Lease Year and on the first day of each Lease Year
thereafter during the Lease Term, the Adjustment Index for the subject Lease
Year shall be compared with the Beginning Index. If the Adjustment Index for the
subject Lease Year has increased over the Beginning Index, then the percentage
increase of the Adjustment Index for the subject Lease Year over the Beginning
Index shall be determined, and shall be that percentage which is equal to the
product of 100 and a fraction, the numerator of which is the Adjustment Index
minus the Beginning Index, and the denominator of which is the Beginning Index.

            (b) The Base Rent payable with respect to the subject Lease Year
shall be equal to the sum of (i) the applicable Base Rent for such Lease Year
(i.e., the Base Rent set forth in Subsection 1.1(c)(i) for the second (2nd)
through the fifth (5th) Lease Years and the Base Rent set forth in Subsection
1.1(c)(ii) for the sixth (6th) through the tenth (10th) Lease Years), plus (ii)
the

                                       3
<PAGE>

product of (x) the applicable Base Rent for such Lease Year as set forth in
Section 1.1(c) above, multiplied by (y) the resulting percentage determined in
Subsection 4.2(a) above.

            (c) Notwithstanding anything to the contrary set forth above or
elsewhere in this Lease, in no event shall the Base Rent payable during any
Lease Year be less than the Base Rent payable during the immediately preceding
Lease Year. Further, in no event shall the Base Rent (on a square foot basis)
payable with respect to any Lease Year exceed the product of (i) the Base Rent
(on a square foot basis) specified in Subsection 1.1(c)(i) with respect to the
second (2nd) through fifth (5th) Lease Years and specified in Subsection
1.1(c)(ii) with respect to the sixth (6th) through tenth (10th) Lease Years,
multiplied by (ii) 1.04 raised to a power, which power shall be equal to the
number of years (including fractions thereof) lapsed between the Lease
Commencement Date and the first day of the subject Lease Year.

            (d) In the event the Index ceases to use November, 1996=100 as the
basis of calculation or if a change is made either in the method used by the
federal government to determine the Index or in the items used to calculate the
Index, then the Index shall be converted (the "Conversion") to a figure that
would have been calculated (or as close to such figure as shall be practical)
had the manner of calculating the Index in effect as of the date of this Lease
not been altered. The Conversion shall be effectuated pursuant to the conversion
index or factor published by the federal government and the revised Index shall
be deemed to replace the original Index. For purposes of this Subsection, it
shall be deemed a change in the method in which the Index is calculated if the
federal government adjusts the method in which the Index is determined in an
attempt to more accurately reflect changes in the cost-of-living. If the Index
is discontinued or unavailable during the Lease Term or a conversion index or
factor is not published by the federal government, then the Index shall be
replaced by Landlord in order to obtain substantially the same result as would
be obtained if the Index had not been so discontinued or unavailable.

            (e) Promptly after the adjustment in the Base Rent is determined for
each Lease Year, Landlord shall submit to Tenant a statement setting forth the
amount of such adjustment and the computations by which it was determined. Since
the actual increase in the Base Rent may not be determined until after the start
of a new Lease Year, until the actual increase in the Base Rent is determined,
Tenant shall make estimated monthly payments of Base Rent in an amount equal to
the monthly installments of Base Rent payable for the prior Lease Year. Promptly
after receipt of a statement from Landlord setting forth the actual increase in
the monthly installments of Base Rent for the subject Lease Year, the difference
between the monthly payments paid by Tenant and the actual amount of Base Rent
determined to be owing for such months shall be determined. If the payments of
Base Rent made by Tenant to date for the subject Lease Year are less than the
actual amount determined to be owing, the deficiency shall be paid by Tenant
together with the next monthly installment of Base Rent due.

      4.3 All sums payable by Tenant under this Lease shall be paid to Landlord,
without setoff or deduction, in legal tender of the United States by wire
transfer or by check drawn on a U.S. bank (subject to collection), at the
address to which notices to Landlord are to be given or to such other

                                       4
<PAGE>

party or such other address as Landlord may designate in writing. Landlord shall
have the right to apply payments received from Tenant pursuant to this Lease,
regardless of Tenant's designation of such payments, to satisfy any obligations
of Tenant hereunder, in such order and amounts as Landlord may elect in its sole
discretion. Landlord's acceptance of rent after it shall have become due and
payable shall not excuse a delay upon any subsequent occasion or constitute a
waiver of any of Landlord's rights.

                                    ARTICLE 5
                                REAL ESTATE TAXES

      5.1 (a) In addition to paying Base Rent, Tenant shall pay to Landlord as
additional rent Tenant's Proportionate Share of Real Estate Taxes (as defined in
Section 5.1(b) below) for each calendar year falling entirely or partly within
the Lease Term.

            (b) As used in this Lease, the term "Real Estate Taxes" shall mean
and include: (1) all federal, state and local governmental or municipal taxes,
fees, charges or other impositions of every kind and nature, whether general,
special, ordinary or extraordinary (including, without limitation, real estate
taxes, general and special assessments, transit taxes, leasehold taxes, or taxes
based upon the receipt of rent, including gross receipts or sales taxes
applicable to the receipt of rent unless required to be paid by Tenant, personal
property taxes imposed upon the furniture, machinery, equipment, apparatus,
systems, equipment, appurtenances and other personal property used in connection
with the Building and/or the Land, and so-called business improvement district
or "BID" taxes, assessments or charges), which are imposed upon or payable by
Landlord or assessed against the Building and/or the Land because of or in
connection with the ownership, management, maintenance or operation of the
Building and/or the Land, without regard to any fiscal year used by any
governmental authority which is different from a calendar year; (2) any and all
other present or future taxes or governmental charges that are imposed upon
Landlord or assessed against the Building and/or the Land which are in the
nature of or in substitution for any of the above-referenced items included in
the definition of Real Estate Taxes, including any tax levied on or measured by
the rents payable by tenants of the Building; and (3) all reasonable costs and
expenses incurred or paid in reviewing, protesting, seeking a reduction of, or
otherwise addressing a challenge of Real Estate Taxes. Real Estate Taxes shall
not include (i) any income, franchise, corporate, personal property, capital
levy, capital stock, gross receipts, excess profits, transfer, mortgage,
revenue, estate, inheritance, gift, devolution or succession tax payable by
Landlord, or (ii) any special assessments resulting, in whole or in part, from
capital improvements to any part of the Building other than the Premises. Under
no circumstances shall Tenant initiate or participate in any protest, appeal or
challenge related to the imposition of Real Estate Taxes. Further, under no
circumstances shall Tenant provide any information related to this Lease or the
terms and conditions hereof to any third party who initiates or participates in
any protest, appeal or challenge related to the imposition of Real Estate Taxes.

                                       5
<PAGE>

      5.2 (a) Tenant shall make estimated monthly payments to Landlord in an
amount equal to Tenant's Proportionate Share of the amount of Real Estate Taxes
that are reasonably expected by Landlord to be incurred during each calendar
year. From time to time, Landlord will submit a statement (each, an "Estimate
Statement") to Tenant setting forth Landlord's reasonable estimate of such Real
Estate Taxes and Tenant's Proportionate Share thereof made in good faith on the
basis of available information. Tenant shall pay to Landlord on the first day of
each month following receipt of such Estimate Statement, until Tenant's receipt
of the succeeding Estimate Statement, an amount equal to one-twelfth (1/12) of
such share (estimated on an annual basis without proration pursuant to Section
5.3). From time to time during any calendar year, Landlord may revise Landlord's
estimates of Real Estate Taxes and adjust Tenant's monthly payments made
pursuant to the foregoing to reflect Landlord's revised estimate.

            (b) Following the end of each calendar year, Landlord shall deliver
to Tenant a statement (each, a "Year-End Statement") showing (i) the Real Estate
Taxes for the subject calendar year and Tenant's Proportionate Share thereof,
and (ii) the aggregate amount of payments made by Tenant on account of increases
in Real Estate Taxes for such year. If such Year-End Statement indicates that
the aggregate amount of payments made by Tenant on account of increases in Real
Estate Taxes for the subject calendar year exceed Tenant's actual liability for
the same, then Landlord shall, provided Tenant is not in default beyond the
expiration of any cure periods, pay to Tenant an amount equal to the net
overpayment. If such Year-End Statement indicates that the aggregate amount of
payments made by Tenant on account of the subject calendar year is less than
Tenant's actual liability for the same, then Tenant shall pay the amount of such
difference to Landlord within thirty (30) days of receipt of the applicable
Year-End Statement or, if the Lease Term has expired or been earlier terminated,
Tenant shall pay such difference to Landlord upon demand. If such Year-End
Statement indicates that the aggregate amount of payments made by Tenant on the
count of the subject calendar year is more than Tenant's actual liability for
the same, then Landlord shall credit the amount of such difference to the Base
Rent payment(s) next due. If Real Estate Taxes for any period during the Lease
Term (including any extension or renewal thereof) are increased after payment
thereof by Landlord for any reason, including, without limitation, error or
reassessment by applicable governmental authorities, Tenant shall pay to
Landlord upon demand Tenant's Proportionate Share of such increase.

            (c) Within forty-five (45) days after Tenant's receipt of a Year-End
Statement, if Tenant disputes the amount of Tenant's obligations set forth
therein, an independent certified public accountant (which accountant is a
member of a nationally recognized accounting firm and which shall not be paid on
a contingency fee basis), designated by Tenant and approved by Landlord acting
in a reasonable manner, may, after reasonable notice to Landlord and at
reasonable times, inspect Landlord's records for Real Estate Taxes for the
subject calendar year. If Tenant still disputes any matter set forth in the
subject Year-End Statement after such inspection, a certification as to the
proper amount owing by Tenant with respect to Real Estate Taxes for the subject
calendar year shall be made at Tenant's expense by an independent certified
public accountant mutually acceptable to Landlord and Tenant (the "Final
Audit"), and the Final Audit shall be final and conclusive. If the Final Audit
shows that Landlord shall have overstated in the subject Year End Statement
Tenant's

                                       6
<PAGE>

obligation for Real Estate Taxes for the calendar year in question, Landlord
shall credit such overpayment against the next monthly rental payment due
hereunder. If the Final Audit shows that Landlord shall have understated
Tenant's obligation, then Tenant shall pay the amount of any such deficiency to
Landlord with the next monthly rental payment due hereunder. If Tenant does not
have an independent certified public accountant review Landlord's records for
Real Estate Taxes for the subject calendar year within forty-five (45) days
after Tenant's receipt of the Year-End Statement for the same, such Year-End
Statement shall be binding and conclusive upon Tenant.

      5.3 If the Lease Term commences or expires on a day other than the first
day or the last day of a calendar year, respectively, then Tenant's liability
for Tenant's Proportionate Share of Real Estate Taxes incurred during such
calendar year shall be apportioned by multiplying the amount of Tenant's
liability therefor for the full calendar year by a fraction, the numerator of
which is the number of days during such calendar year falling within the Lease
Term, and the denominator of which is 365.

                                    ARTICLE 6
                                 USE OF PREMISES

      6.1 Tenant shall use the Premises solely for the purpose of operating a
first-class, high quality, "white tablecloth" restaurant, and for no other use
or purpose whatsoever; provided, however, Tenant may sell promotional items
customarily sold in other restaurants operated by The New York Restaurant Group,
Inc. so long as such items are consistent with the character of a first-class,
high quality "white tablecloth" restaurant, and so long as such sales are wholly
incidental to Tenant's operation of its restaurant in the Premises, provided
that Tenant may not use more than two hundred (200) rentable square feet of open
space in the Premises for the sale of such items. In connection therewith,
Tenant shall (x) maintain a decor and physical layout that is consistent with
the first-class, high quality of the Building; (y) serve food of high quality
and attractive appearance; and (z) maintain a high standard of cleanliness and
hygiene throughout the Premises. Tenant shall operate its business in the
Premises under any of Tenant's Trade Names, and under no other name or
designation. Tenant shall, at its expense, procure all governmental licenses and
permits, including, but not limited to a liquor license, required for the
conduct of Tenant's business in the Premises and shall at all times comply with
the requirements of each such license or permit. Tenant shall not use, or suffer
or permit any person or entity to use, the Premises for any unlawful purpose or
in any manner that will constitute waste, nuisance or unreasonable annoyance to
Landlord or any other tenant of the Building. Tenant shall not, nor shall Tenant
permit any other person or entity to, generate, use, store, or dispose of any
materials posing a health or environmental hazard in or about the Premises.
Tenant shall not do anything or suffer anything to be done in or about the
Premises which will in any way conflict with any law, statute, ordinance, rule,
regulation or requirement of any governmental or quasi-governmental entity
having or asserting jurisdiction which is now in force or which may hereafter be
enacted (collectively, "Laws"), including, without limitation, those concerning
the use, occupancy and condition of the Premises and all improvements,
machinery, equipment and furnishings therein. Landlord represents, to its
knowledge, that there are no Laws which would prohibit the use of the Premises
as a first-class "white tablecloth" restaurant. At its sole cost and expense,
Tenant

                                       7
<PAGE>

shall promptly comply with all Laws. Tenant shall obtain the initial certificate
of occupancy for the Premises and shall deliver a copy thereof to Landlord
within ten (10) days after Tenant's receipt of the same. Any amended or
substitute certificate of occupancy necessitated by Tenant's use of the Premises
or any Alterations made by Tenant in the Premises shall be obtained by Tenant at
Tenant's sole expense. Tenant shall not at any time use or occupy or allow any
other person or entity to use or occupy the Premises or do or permit anything to
be done or kept in the Premises or perform any other action in any manner which:
(i) violates any agreement relating to the Building of which Tenant is aware or
any certificate of occupancy in force for the Premises or the Building; (ii)
causes or is likely to cause damage to the Premises or the Building or any
equipment, facilities or other systems located therein; (iii) results in
repeated demonstrations, bomb threats or other events which require evacuation
of the Building or otherwise unreasonably disrupt the use, occupancy or quiet
enjoyment of the Building by other tenants and occupants; or (iv) interferes
with the transmission or reception of microwave, television, radio or other
communications signals by antennae located on the roof of the Building or
elsewhere in the Building. Subject to the terms of Article 9 below, Landlord
shall not unreasonably withhold its consent to the same. In the event any such
contractor, servicemen, workmen, material or equipment materially disturbs labor
harmony with the work force or trades engaged in performing other work, labor or
services in or about the Building, Tenant shall discontinue use of the same
immediately upon its receipt of notice from Landlord.

      6.2 Tenant shall open for business with the public as promptly as
reasonably possible following the Lease Commencement Date, and shall thereafter
be open every Monday through Saturday for at least the Minimum Hours of
Operation; provided, however, Tenant shall have the right to close the
restaurant during Federal and District of Columbia holidays and for vacation
periods for a maximum of fourteen (14) days each calendar year. Tenant shall
continuously conduct its business in the whole of the Premises in a dignified
and reputable manner in keeping with the highest standards of practice among
quality "white tablecloth" restaurants. Tenant shall not use any portion of the
Premises as a warehouse, nor for the storage of merchandise or supplies in
excess of inventory necessary to keep the restaurant operated at the Premises
continuously stocked in a manner consistent with Tenant's normal and customary
business operations.

      6.3 Tenant shall not burn trash or store or permit accumulations of any
trash, garbage, rubbish or other refuse inside or outside of the Premises except
in compactors or other receptacles approved by Landlord. Tenant shall store in a
refrigerated compartment located in the Premises all trash, garbage, rubbish and
other refuse generated within the Premises. Tenant shall comply with all
reasonable rules and regulations established from time to time by Landlord and
delivered to Tenant with respect to the storage and disposal of waste generated
within the Premises. At least once a day no later than 7:00 a.m. (or more
frequently, and at such times directed by Landlord, if Landlord determines that
more frequent removal is required), Tenant shall cause, at its sole expense, all
of the aforementioned waste to be removed from the Premises via the corridors
and entryways designated by Landlord for such purpose. Tenant shall be
responsible for maintaining all of its trash receptacles, including the areas
surrounding such receptacles, and keeping the same reasonably neat, and clean,
vermin free and in good repair at all times. At least weekly, Tenant shall
power-wash the path of travel from the Premises to the trucks of Tenant's trash
removal company.

                                       8
<PAGE>

      6.4 Tenant shall not load or permit the loading or unloading of
merchandise, supplies or other property nor ship or receive outside the loading
dock entrance on 6th Street, N.W., nor permit the parking or standing outside of
said area of trucks, trailers or other vehicles or equipment engaged in such
loading or unloading in a manner to unreasonably interfere with the use of any
area of the Building, the common areas or any public alleys or streets.

      6.5 Equipment belonging to Tenant which causes noise or vibration that may
be transmitted to the structure of the Building to such a degree as to be
objectionable to Landlord or reasonably objectionable to any tenant in the
Building shall be installed and maintained by Tenant, at Tenant's expense, on
vibration eliminators or other devices sufficient to reduce such noise and
vibration to a level reasonably satisfactory to Landlord. Tenant shall not use
or operate or permit the use or operation of any coin or token operated vending
machine or similar device for the sale of any goods, wares, merchandise, food,
beverages or services, including, but not limited to, pay lockers, pay toilets,
scales, gaming machines, amusement devices and machines for the sale of
beverages, foods, candy, cigarettes or other commodities, except for a pay
telephone.

      6.6 Subject to the provisions of Article 10, Tenant shall not install any
exterior signs, lighting, shades or awnings or any interior or exterior
decorations, carpeting or other floor covering or painting or make any changes
to Tenant's store front or the interior or exterior appearance of the Premises
without Landlord's prior written consent, not to be unreasonably withheld or
delayed, it being understood and agreed that all such items covered by this
Section 6.6 shall always be consistent with first-class "white tablecloth"
restaurant operations and with the first-class nature of the Building.

      6.7 Tenant shall keep the inside and outside of its storefront, walkways
adjacent to the Premises, the exterior canopy (including all supports thereof)
and glass in the doors and windows of the Premises clean and in good repair,
promptly replacing any glass that is cracked or broken. Tenant will not place or
maintain any articles of any kind against any glass in the doors and windows of
the Premises, in the vestibule or entry of the Premises, on the walkways
adjacent thereto or elsewhere on the exterior thereof.

      6.8 The Premises, including Tenant's display windows and signs, shall be
kept in a first-class neat and clean condition, sanitary, in good order and free
of insects, rodents, vermin and other pests by Tenant, at Tenant's expense.
Tenant shall perform such repair and cleaning work as shall be necessary to
maintain the Premises in good order and in keeping with the general standards of
maintenance and good appearance of the Building. Tenant shall maintain service
contracts upon any mechanical, electrical and fire prevention systems installed
in or servicing the Premises, with contractors reasonably approved by Landlord,
and shall deliver to Landlord copies of any such service contracts. Tenant will
not cause or permit objectionable odors of any kind to emanate from the
Premises.

      6.9 Tenant shall, at its expense, clean and maintain on a regular basis
the Building flue and the roof exhaust fan to which the exhaust system in the
Premises is connected, and shall comply

                                       9
<PAGE>

with such reasonable rules adopted by Landlord with respect to cleaning the
same. Tenant also shall maintain the exhaust system in the Premises. All grease
traps and the hood fire suppression system in the Premises shall be maintained
and cleaned by Tenant, at Tenant's expense, on a regular basis sufficient to
keep the same operating efficiently and safely.

      6.10 Tenant shall not permit the use of any portion of the Premises for
gaming, the sale of lottery tickets or similar items, for solicitations or
demonstrations, or for any similar activities; provided, however, Tenant shall
be permitted to use the Premises for wine tasting events, cooking demonstrations
and other similar restaurant promotions consistent with the character of a
first-class, high quality, "white tablecloth" restaurant.

      6.11 Tenant shall pay when due any business, rent or other taxes or fees
that are now or hereafter levied, assessed or imposed upon Tenant's use or
occupancy of the Premises, the conduct of Tenant's business in the Premises or
Tenant's equipment, fixtures, furnishings, inventory or personal property. If
any such tax or fee is enacted or altered so that such tax or fee is levied
against Landlord or so that Landlord is responsible for collection or payment
thereof, then Tenant shall promptly pay to Landlord as additional rent the
amount of such tax or fee upon demand.

      6.12 To the extent any non-compliance of the common areas of the Building
with Title III of the Americans With Disabilities Act ("ADA") is principally the
result of the use or occupancy of the Premises or any action or inaction of
Tenant or any Invitee, then Tenant shall be obligated, at Tenant's sole cost, to
promptly take all compliance measures necessary to satisfy the requirements of
ADA. Notwithstanding the foregoing, Landlord reserves the right, at its
election, to take the above-referenced compliance measures and, in the event
Landlord so elects, Tenant shall reimburse Landlord upon demand for all costs
incurred in connection therewith. Tenant at its sole cost and expense shall be
solely responsible for taking any and all measures which are required to comply
with the ADA concerning the Premises (including entry doors and related items)
and the business conducted therein. Any alterations made or constructed by
Tenant for the purpose of complying with the ADA or which otherwise require
compliance with the ADA shall be done in accordance with this Lease, provided
that Landlord's consent to such Alterations shall not constitute either
Landlord's assumption, in whole or in part, of Tenant's responsibility for
compliance with the ADA, or representation or confirmation by Landlord that such
alterations comply with the provisions of the ADA.

      6.13 Tenant shall have the right to use the area immediately adjacent to
the entrance to the Premises designated on Exhibit B (the "Outdoor Seating
Area") under a license for food and beverage service, subject to the terms and
conditions of this Lease, and all applicable Laws. All provisions of this Lease
governing Tenant's obligations with respect to the Premises and Tenant's use and
occupancy thereof shall apply to the Outdoor Seating Area unless such provision
shall be specifically excluded or alternative provisions applicable to only the
Premises or the Outdoor Seating Area, shall be included. In no event shall the
square footage of the Outdoor Seating Area be included in the square footage of
the Premises for purposes of calculating Base Rent, Additional Rent or any other
sums due hereunder. All landscaping and furnishings, and any change,
replacements or additions

                                       10
<PAGE>

thereto, located or used on or affixed to the Outdoor Seating Area shall be
subject to Landlord's prior written approval in each instance, which approval
shall not be unreasonably withheld so long as such improvements are not
inconsistent with a first-class "white tablecloth" restaurant operation or with
the first-class nature of the Building. It is understood and agreed that all
such landscaping and furnishings installed on the Outdoor Seating Area shall be
at the sole cost and expense of Tenant. It further is understood and agreed that
Tenant shall clean and maintain the Outdoor Seating Area on a daily basis. In
the event the Outdoor Seating Area is not cleaned and maintained in a manner
consistent with a first-class office building, Landlord shall have the right to
terminate immediately Tenant's license to use the Outdoor Seating Area in
addition to all other rights and remedies available to Landlord hereunder.
Landlord shall cooperate with Tenant, at no cost or expense to Landlord, in
connection with any filings or governmental approvals required for the use of
the Outdoor Seating Area and obtaining a liquor license for the Premises.

      6.14 Exclusive Uses. Provided (i) Tenant is not in default (beyond the
expiration of any applicable notice and cure period) under this Lease, and (ii)
Tenant continues to use and operate the Premises as a "white tablecloth"
restaurant which either primarily serves fish or is known as a "chophouse" (or
both) (individually or collectively, an "Exclusive Use"), then Landlord agrees
that it will not, during the Lease Term, lease any other space in the Building
for an Exclusive Use. For purposes of this paragraph, Manhattan Ocean Club is a
restaurant that primarily serves fish and Maloney & Parcelli is a "chophouse."

                                    ARTICLE 7
                            ASSIGNMENT AND SUBLETTING

      7.1 (a) Except as otherwise provided in Sections 7.5 and 7.6 hereof,
Tenant shall not, without the prior consent of Landlord, assign, mortgage,
pledge, hypothecate, encumber or permit any lien to attach to, or otherwise
transfer this Lease or any interest of Tenant under this Lease, sublet the
Premises or any part thereof, or permit the use or occupancy of the Premises or
any part thereof by any person or entity other than Tenant and its employees
(all of the foregoing are hereinafter sometimes referred to collectively as
"Transfers" and any person or entity to whom any Transfer is made or sought to
be made is hereinafter sometimes referred to as a "Transferee"). No Transfer may
be effected by operation of Law without Landlord's prior consent to the same.
Notwithstanding anything to the contrary set forth in this Lease, Tenant may not
sublease any portion of the Premises comprising less than the entire Premises.
If Tenant shall desire to make any Transfer, Tenant shall notify Landlord in
writing, which notice (the "Transfer Notice") shall include: (i) the proposed
effective date of the Transfer, which shall not be less than forty-five (45)
days nor more than one hundred eighty (180) days after the date of delivery of
the Transfer Notice; (ii) a description of the portion of the Premises to be
transferred (the "Subject Space"); (iii) all of the terms of the proposed
Transfer and the consideration therefor; (iv) the name and address of the
proposed Transferee; (v) a copy of all existing and/or proposed documentation
pertaining to the proposed Transfer, including all existing operative documents
to be executed to evidence such Transfer and all agreements incidental or
related to such Transfer; (vi) current financial statements of the proposed
Transferee

                                       11
<PAGE>

certified by an officer, partner or owner thereof; (vii) any other information
reasonably required by Landlord, which will enable Landlord to determine the
financial responsibility, character and reputation of the proposed Transferee,
nature of such Transferee's business, and proposed use of the Subject Space; and
(viii) such other information as Landlord may reasonably require. Landlord's
right to approve any proposed Transfer shall include the right to approve, which
approval shall not be unreasonably withheld or delayed, all documents
(including, but not limited to, the sublease or assignment instrument) and other
information required to be delivered to Landlord with respect to the same in
accordance with the foregoing. Any Transfer made without Landlord's prior
consent shall, at Landlord's option, be null, void and of no effect, and shall,
at Landlord's option, constitute an Event of Default.

            (b) Subject to the provisions of this Article 7 set forth below,
Landlord shall not unreasonably withhold its consent to any proposed assignment
of Tenant's interest in this Lease or a sublease of any portion of the Premises.
Landlord and Tenant hereby agree that it shall be reasonable under this Lease
for Landlord to withhold consent to any proposed assignment of Tenant's interest
in this Lease or a proposed sublease of the Premises if one or more of the
following apply; provided, however, the following shall not limit other
reasonable grounds for withholding consent:

                  (i) The Transferee is of a character or reputation or engaged
in a business which is not consistent with the quality of the Building;

                  (ii) The Transferee will use the Subject Space for purposes
other than as expressly permitted under this Lease, except that the Transferee
may use a different trade name that has been approved by Landlord;

                  (iii) The Transfer will result in more than the number
occupants within the Subject Space permitted under the certificate of occupancy
and/or all applicable Laws;

                  (iv) The Transferee is not a party of reasonable financial
worth and/or financial stability in light of the responsibilities involved under
the Lease with respect to an assignment and under the proposed sublease with
respect to a sublease as of the date consent is requested;

                  (v) The Transferee is a governmental or quasi-governmental
entity or agency or instrumentality thereof or any other persons or entity
enjoying sovereign or diplomatic immunity;

                  (vi) The proposed Transfer would cause Landlord to be in
violation of another lease or agreement to which Landlord is a party, or would
give an occupant of the Building a right to terminate its lease or to reduce the
amount of rent payable by it for its premises;

                  (vii) Subject to Section 27.1, the terms of the proposed
Transfer will allow the Transferee to exercise a right of renewal, right of
expansion, right of first offer, or other similar right held by Tenant; or

                                       12
<PAGE>

                  (viii) Either the proposed Transferee, or any person or entity
which directly or indirectly, controls, is controlled by, or is under common
control with, the proposed Transferee, (x) occupies space in or is a tenant of
the Building at the time of Landlord's receipt of Tenant's request for consent,
or at any time thereafter until Landlord's consent is granted or withheld, (y)
is negotiating with Landlord to lease space in the Building at such time, or (z)
has negotiated with Landlord during the twelve (12)-month period immediately
preceding Landlord's receipt of Tenant's request for consent.

If Landlord consents to any Transfer, Tenant may, within one hundred twenty
(120) days after receiving Landlord's consent but not later than the expiration
of said one hundred twenty (120) day period, enter into such Transfer upon the
same terms and conditions as are set forth in the Transfer Notice furnished by
Tenant to Landlord, provided that if there are any changes in the terms and
conditions for the subject Transfer from those specified in the Transfer Notice
or any other document or other information delivered to Landlord for the same,
Tenant shall again submit the Transfer to Landlord for its approval and all
other action under this Article 7. Notwithstanding the terms of this Article 7,
if consent to any Transfer is required by the holder of any Mortgage (as defined
in Section 22.1 below), no Transfer shall be permitted without the prior written
consent of such holder(s).

            (c) Landlord's acceptance or collection of rent from any Transferee
shall not be construed as Landlord's consent to or acceptance of the subject
Transferee or Transfer, nor shall Landlord's consent to any Transfer, or
Landlord's acceptance or collection of rent from any Transferee be construed (i)
as a waiver or release of Tenant or any other party from liability for the
performance of any obligation to be performed under this Lease by Tenant, or
(ii) as relieving Tenant or any Transferee from the obligation of obtaining
Landlord's prior consent to any subsequent Transfer. Tenant hereby assigns to
Landlord any rent due from any Transferee as security for Tenant's performance
of its obligations pursuant to this Lease. Following the occurrence of an Event
of Default, Tenant authorizes each such Transferee to pay such rent directly to
Landlord if such Transferee receives notice from Landlord specifying that such
rent shall be paid directly to Landlord. Each sublease, license or other
agreement for occupancy of any portion of the Premises shall provide that, at
Landlord's election, the subtenant, licensee or other party thereto shall attorn
to Landlord or enter into a direct lease with Landlord on the same terms as
contained in the subject sublease, license or other agreement in the event this
Lease is terminated by reason of an Event of Default or any other reason. All
restrictions and obligations imposed pursuant to this Lease on Tenant shall be
deemed to extend to each Transferee, and Tenant shall cause such persons or
entities to comply with all such restrictions and obligations. Tenant shall pay
or reimburse to Landlord upon demand all costs and expenses (including
attorneys' fees) incurred by or on behalf of Landlord in connection with
Tenant's request for Landlord's consent to a Transfer.

      7.2 [Intentionally Omitted.]

      7.3 [Intentionally Omitted.]

                                       13
<PAGE>

      7.4 If Landlord consents to a Transfer, (i) the terms and conditions of
this Lease shall in no way be deemed to have been waived or modified, (ii) such
consent shall not be deemed consent to any further Transfer by either Tenant or
a Transferee, (iii) Tenant shall deliver to Landlord, promptly after execution,
an original executed copy of all documentation pertaining to the Transfer in
form satisfactory to Landlord, (iv) no Transfer relating to this Lease or
agreement entered into with respect thereto, whether with or without Landlord's
consent, shall relieve Tenant or any guarantor of the Lease from liability under
this Lease, and (v) such Transfer shall at all times be subject and subordinate
to the terms of this Lease.

      7.5 For purposes of this Lease, the term "Transfer" shall also include (i)
the merger, consolidation or other reorganization of Tenant, (ii) a transfer of
fifty percent (50%) or more of the beneficial or controlling interest in Tenant,
whether such transfer occurs at one time, or in a series of transactions, and
whether of stock, partnership interests, membership interests or otherwise,
provided that the transfer of stock in a public offering of the capital stock of
Tenant shall not be deemed a Transfer, and (iii) the sale, mortgage,
hypothecation or pledge of more than an aggregate of fifty percent (50%) of the
value of the assets of Tenant. Notwithstanding anything to the contrary
contained in this Article 7, an assignment of Tenant's interest in the Lease or
subletting of all or a portion of the Premises to an entity which is controlled
by, controls, or is under common control with, Tenant (each, an "Affiliate"),
shall not be deemed a Transfer, provided (A) Tenant notifies Landlord of any
such assignment or sublease and promptly supplies Landlord with all documents
and other information requested by Landlord regarding such assignment or
sublease, (B) such assignment or sublease is not a subterfuge by Tenant to avoid
its obligations under this Lease, and (C) Tenant is not in default under this
Lease upon the effective date of such assignment or sublease. "Control," as such
term is used above, shall mean the ownership, directly or indirectly, of at
least fifty-one percent (51%) of the voting interests of, or possession of the
right to vote, in the ordinary direction of its affairs, of at least fifty-one
percent (51%) of the voting interest in, a person or entity.

      7.6 Notwithstanding anything to the contrary set forth above in this
Article, Tenant may convey to an institutional lender a security interest in all
assets of Tenant including Tenant's interest in this Lease, provided that such
institutional lender shall enter into a written agreement with Landlord, on
terms and conditions reasonably acceptable to Landlord, which agreement shall
set forth the rights and obligations of the lender with respect to this Lease
and Tenant's furniture, fixtures and equipment, and shall include the terms of
Section 20.8(b).

                                    ARTICLE 8
                             MAINTENANCE AND REPAIRS

      8.1 Tenant shall keep and maintain (i) the Premises, (ii) all
improvements, fixtures, systems and equipment located therein, (iii) all
improvements, fixtures, systems and equipment installed outside the Premises by
or on behalf of Tenant for the use or benefit of the Premises (including,
without limitation, all HVAC, electrical, life-safety, fire protection or other
systems or equipment installed by or on behalf of Tenant), (iv) all plate glass
located in the Premises, (v) the store front

                                       14
<PAGE>

(including metal framing and glass) of the Premises, and (vi) all canopies and
sidewalks in front of or adjacent to the Premises, all in clean, safe and
sanitary condition, shall take good care thereof and make all repairs thereto,
and shall suffer no waste or injury thereto. Notwithstanding the foregoing,
Landlord reserves the right, following notice (which notice may be written or
oral) to Tenant, to maintain (a) all or any of the improvements, fixtures,
systems and equipment installed outside the Premises by or on behalf of Tenant
for the use or benefit of the Premises, following Tenant's failure to timely and
properly maintain the same, (b) all plate glass located in the Premises, (c) the
store front of the Premises, and/or (d) any or all sidewalks located in front of
or adjacent to the Premises. In the event Landlord so elects, Tenant shall
reimburse Landlord for all costs and expenses incurred by Landlord in connection
therewith, within ten (10) days after Tenant's receipt of Landlord's request for
the same. At the expiration or earlier termination of the Lease Term, Tenant
shall surrender the Premises in the same order and condition in which they were
on the Lease Commencement Date, or on the respective date of delivery of
possession with respect to any space in the Building subsequently leased by
Tenant, ordinary wear and tear excepted. Except as otherwise provided in Article
18, all injury, breakage and damage to the Premises and to any other part of the
Building (including the systems and equipment thereof) or the Land caused by any
neglect, act or omission of Tenant, of any other person or entity claiming by,
through or under Tenant, or of any invitee, agent, employee, subtenant,
licensee, assignee, contractor or invitee of any such other person or entity or
of Tenant (collectively, "Invitees") shall be repaired by and at Tenant's
expense, subject to Landlord's approval of all matters relative to the
performance of such repairs, except that Landlord shall have the right at
Landlord's option to make any such repair and to charge Tenant for all costs and
expenses incurred in connection therewith, plus a percentage of such costs to be
uniformly established for the Building for Landlord's overhead and general
conditions. Notwithstanding the foregoing, it is understood and agreed that
Tenant shall not be obligated to repair any injury, breakage or damage to the
Premises or any other part of the Building caused by the neglect, act or
omission of Landlord or any of Landlord's employees, agents or contractors.

      8.2 Tenant also shall be responsible for maintaining any HVAC units,
refrigerators, freezers or other similar equipment (including all grease traps
located in or serving the Premises) in compliance with any legal requirements
now or hereafter regulating the use of the same, and Tenant shall furnish
Landlord upon request with proof that (i) such equipment is not defective, (ii)
such equipment has been properly installed, and (iii) Tenant is complying with
all legally-required inspections and maintenance procedures relative thereto. In
the event the repair, modification or removal of such equipment is at any time
required by Law, Landlord shall be permitted (but not obligated) to perform such
repair, modification or removal at Tenant's expense, if Tenant fails to do so
within a reasonable time after notice.

      8.3 Landlord shall keep and maintain in good order and repair the
base-building structure and systems of the Building, including the roof,
exterior walls (but excluding the storefront of the Premises, all doors to the
Premises and all plate glass in the Premises), elevators, electrical, plumbing
and HVAC systems serving the common areas of the Building (but excluding any
supplemental HVAC or other systems or equipment installed by or on behalf of
Tenant), and the ground floor lobby

                                       15
<PAGE>

and other common areas of the Building. Tenant shall maintain the kitchen
exhaust riser servicing the Premises.

                                    ARTICLE 9
                                   ALTERATIONS

      9.1 Landlord is under no obligation to make any structural or other
alterations, decorations, additions, installations, improvements or other
changes (collectively "Alterations") in or to the Premises except as otherwise
expressly provided in this Lease. Tenant shall accept the Premises on the Lease
Commencement Date in its "as-is" condition, with the exception of all furniture,
fixtures and equipment located in the Premises as of the date of this Lease. All
furniture, fixtures and equipment in the Premises as of the date of this Lease
are owned by the tenant of the Premises existing as of the date of this Lease
and may be removed by, or under the direction of, such tenant prior to the Lease
Commencement Date.

      9.2 (a) Tenant shall not make or permit any other person or entity to make
any Alterations in or to the Premises without Landlord's prior consent.
Landlord's consent shall not be unreasonably withheld with respect to any
proposed Alterations, provided that Landlord may, in its sole and absolute
discretion, withhold its consent to any Alterations that: (i) may affect the
structure of the Building; (ii) may affect the mechanical, electrical, plumbing,
HVAC, life-safety, fire protection or any other system in the Building; (iii)
may be visible from the exterior of the Premises or the Building if such
proposed Alterations would not be consistent with first-class "white tablecloth"
restaurant operations or with the first-class nature of the Building; (iv) may
violate any Law; (v) may materially increase the cost of operating the Building;
(vi) may materially reduce the value or utility of the Building; or (vii) may
materially affect any service required to be furnished by Landlord to Tenant or
any other tenant or occupant of the Building.

            (b) Any Alteration made by or on behalf of Tenant shall be made: (i)
in a good, workmanlike, first-class and prompt manner; (ii) using only new
materials selected by Tenant and approved by Landlord, which approval shall not
be unreasonably withheld, (iii) by an experienced, reputable contractor selected
by Tenant and approved by Landlord, which approval shall not be unreasonably
withheld, provided that all Alterations which may affect any of those matters
identified in Subsections 9.2(a)(i) through (iii) shall, at Landlord's election,
be performed by Landlord's designated contractors or subcontractors, at Tenant's
expense; (iv) in accordance with plans and specifications approved by Landlord,
which approval shall not be unreasonably withheld; (v) in accordance with all
applicable Laws; (vi) in accordance with the requirements and standards of the
American Insurance Association and in accordance with the requirements of any
insurance company insuring the Building or portion thereof; (vii) after having
obtained any required consent of the holder of any Mortgage (as defined in
Section 22.1); (viii) after Tenant has obtained public liability, worker's
compensation, Builder's All-Risk, Completed Operations Coverage, and such other
insurance policies reasonably required by Landlord, all in forms, amounts and
issued by companies approved by Landlord consistent with the nature of the
Alterations to be undertaken, which policies shall cover

                                       16
<PAGE>

every person who will perform work with respect to the Alterations, in such
detail as is reasonably satisfactory to Landlord; (ix) only after Tenant has
obtained and delivered to Landlord unconditional waivers (in form reasonably
satisfactory to Landlord) of mechanics' and materialmen's liens against the
Premises and the Building from all proposed contractors, subcontractors,
laborers and material suppliers for the subject Alterations; (x) after Tenant
has delivered to Landlord a detailed breakdown by trade, of the total amount of
costs to be incurred in connection with the design and construction of the
Alterations; (xi) in accordance with all reasonable rules made by Landlord with
respect to the use of elevators and loading docks, storage of materials,
coordination of work with contractors, subcontractors and workmen of Landlord
and other tenants of the Building, times for performance of work, and any other
matters in connection with the construction of the Alterations; and (xii) after
Tenant has delivered to Landlord a lien and completion bond for the Alterations
naming Landlord as a co-obligee, or some alterative form of security reasonably
satisfactory to Landlord in an amount sufficient to ensure the lien-free
completion of the Alterations.

            (c) Tenant and its architect shall be responsible to verify, in the
field, the conditions of the Building, and Landlord shall have no responsibility
in connection therewith. Notwithstanding that any plans and specifications for
Alterations are reviewed by Landlord or any of its agents, and notwithstanding
any advice or assistance which may be rendered to Tenant or any of its agents by
Landlord or any of its agents, Landlord shall have no liability whatsoever in
connection therewith and shall not be responsible for any omissions or errors
contained in plans and specifications for Alterations. If Tenant fails to comply
with the terms of this Article in connection with the construction of
Alterations, Landlord may cause the cessation of construction of the same until
such time as Tenant complies with the terms of this Article. Further, in the
event the subject matter of non-compliance may affect any structural aspect of
the Building, the exterior appearance of the Premises or the Building, or the
mechanical, electrical, plumbing, HVAC or any other system of the Building,
Landlord may, at Tenant's expense, take such action as Landlord deems necessary
to address the subject matter without incurring any liability on Landlord's
part. Upon completion of any Alterations, Tenant shall, at its expense, deliver
to Landlord (1) two sets of mylar reproducible "as-built" drawings and a CAD
disk for such Alterations, (2) certifications executed by Tenant's architects,
engineers and contractors for such Alterations, which certifications shall
certify, to the best of their knowledge, that the "record-set" of as-built
drawings for such Alterations are true and correct, and (3) copies of all
permits, other governmental approvals, warranties, guaranties and operating
manuals relating to the Alterations. In the event Tenant orders any Alterations
or repair work directly from Landlord or from any contractor selected by
Landlord, the charges for such work shall be deemed additional rent, payable
upon demand, either periodically during the construction or upon the substantial
completion of such work, at Landlord's option. Whether or not Tenant orders any
work directly from Landlord, Tenant shall reimburse Landlord upon demand for all
actual and reasonable costs and expenses incurred by Landlord in connection with
Alterations proposed to be made by Tenant to compensate Landlord for services
relative to the coordination of the construction of the subject work with other
activities in the Building.

            (d) If Landlord gives its consent to the making of any Alteration,
then such consent shall not be deemed to constitute Landlord's consent to
subject its interest in the Premises,

                                       17
<PAGE>

the Building or the Land to any mechanic's or materialman's lien which may be
filed in connection therewith. Tenant has no right, authority or power to cause
or permit any lien or encumbrance of any kind whatsoever, whether created by act
of Tenant, operation of Law or otherwise, to attach to or be placed upon the
Premises, the Building and/or the Land, and any and all liens and encumbrances
created by Tenant shall attach to Tenant's interest only. Landlord shall have
the right at all times to post and keep posted on the Premises any notice which
it deems necessary for protection from such liens. Tenant covenants and agrees
not to suffer or permit any lien of mechanics or materialmen or others to be
placed against the Premises, the Building or the Land with respect to work or
services claimed to have been performed for or materials claimed to have been
furnished to Tenant or the Premises, and, in case of any such lien attaching or
notice of any such lien, Tenant covenants and agrees to cause the same to be
immediately released and removed of record at Tenant's expense. In the event
such lien is not released and removed within sixty (60) days after notice of
such lien is delivered by Landlord to Tenant, Landlord, at its sole option, may
take all action necessary to release and remove such lien (without any duty to
investigate the validity thereof) and all sums, costs and expenses (including
attorneys' fees), incurred or paid by Landlord in connection with such lien
shall be deemed additional rent under this Lease and shall be paid by Tenant to
Landlord upon demand, it being expressly agreed that such discharge by Landlord
shall not be deemed to waive or release Tenant's default in failing to discharge
such lien.

      9.3 If any Alteration is made without Landlord's prior consent, then
following notice (which notice may be written or oral) and Tenant's failure to
promptly correct such Alteration, Landlord shall have the right at Tenant's
expense to remove and correct such Alteration and restore the Premises and the
Building to their condition immediately prior thereto or to require Tenant to do
the same. Tenant shall reimburse Landlord upon demand for all costs and expenses
incurred by Landlord in connection with the same. All Alterations made by either
party shall remain upon and be surrendered with the Premises as a part thereof
at the expiration or earlier termination of the Lease Term; provided, however,
that (i) if Tenant is not then in default under this Lease, then Tenant shall
have the right to remove, prior to the expiration or earlier termination of the
Lease Term, all movable furniture, furnishings and equipment installed in the
Premises solely at Tenant's expense, and (ii) Tenant shall, at its expense,
remove all Alterations which Landlord designates in writing for removal at the
time Landlord approves installation of such Alteration. Landlord shall have the
right to repair at Tenant's expense all damage and injury to the Premises or the
Building caused by such removal or to require Tenant to immediately do the same
and repair all damage to the Premises and the Building caused by such removal.
If any of the furniture, furnishing or equipment referenced above is not removed
by Tenant prior to the expiration or earlier termination of the Lease Term,
then, at Landlord's election, the same shall become Landlord's property and
shall be surrendered with the Premises.

      9.4 Landlord shall have the right, in a reasonable manner, to prescribe
the weight and position of safes and other heavy equipment and fixtures, which,
if considered necessary by the Landlord, shall be installed in such manner as
Landlord directs in order to distribute their weight adequately. Any
reinforcement of the floors in the Premises required by Landlord to accommodate
the weight of equipment, fixtures or other property which Tenant desires to
install in the Premises

                                       18
<PAGE>

shall be performed, at Tenant's expense, in accordance with the terms of this
Lease. Any and all damage to the Premises or the Building (including the
Building's systems and equipment) caused by moving the property of Tenant into
or out of the Building, or due to the same being in or upon the Building, shall
be repaired at the sole cost of Tenant (whether repaired by Landlord or Tenant
in accordance with the terms set forth below). Tenant shall reimburse Landlord
upon demand for all actual and reasonable costs and expenses incurred by
Landlord in connection with such repairs. Any such damage to the Premises shall
be repaired by Tenant and any such damage to any other portion of the Building
(including the Building's systems and equipment) shall be repaired by Landlord
or, at Landlord's election, by Tenant. No furniture, equipment or other bulky
matter of any description will be received into the Building or carried in the
elevators except as reasonably approved by Landlord, and all such furniture,
equipment and other bulky matter shall be delivered only through the designated
delivery entrance of the Building and the designated freight elevator. All
moving of furniture, equipment and other materials shall be under the
supervision of Landlord, who shall not, however, be responsible for any damage
to or charges for moving the same.

                                   ARTICLE 10
                                      SIGNS

      10.1 No sign, advertisement or notice shall be painted, affixed or
otherwise displayed by Tenant on any part of the exterior or interior of the
Building except in conformance with the requirements of this Article 10;
provided, however, that Tenant may, at its sole expense, install signs in the
interior of the Premises so long as such signs are in keeping with the quality,
design and style of the Building and such signs are not visible from the
exterior of the Premises. Tenant shall not use, install or display any sign,
decoration, fitting or other item visible from the exterior of the Premises
without Landlord's prior approval, which approval may be granted or withheld in
Landlord's sole and absolute discretion. Notwithstanding the foregoing, (i)
Landlord hereby approves the exterior signage, canopy and awning described in
Exhibit E attached hereto; and (ii) Tenant shall have the right to make
modifications to such pre-approved signage, subject to Landlord's prior
reasonable approval, as long as such modifications are consistent with
first-class "white tablecloth" operations and the first-class nature of the
Building. Tenant shall obtain all necessary governmental approvals and permits
for its signage and shall comply with all Laws applicable to such signage. If
any sign or other item visible from the exterior of the Premises is displayed
without Landlord's approval, then Landlord shall have the right to remove such
item at Tenant's expense or to require Tenant to immediately do the same.

                                   ARTICLE 11
                                    [OMITTED]

                                   ARTICLE 12
                                    [OMITTED]

                                       19
<PAGE>

                                   ARTICLE 13
                                ENTRY BY LANDLORD

      13.1 Landlord reserves the right, and Tenant shall permit Landlord and its
designees, to enter the Premises, at reasonable times following reasonable prior
notice delivered to Tenant (except in the event of an emergency, in which
circumstance Landlord or its designees may enter the Premises at any time
without prior notice), to: (i) inspect them; (ii) show the Premises to
prospective purchasers, mortgagees or ground or underlying lessors and tenants;
(iii) make such alterations, improvements, additions and/or repairs as Landlord
may deem necessary or as may be required to comply with applicable Laws; (iv)
perform services required of Landlord in connection with this Lease; (v) take
possession due to any breach of this Lease in the manner provided herein; and
(vi) perform any covenant or obligation of Tenant under this Lease which Tenant
fails to perform. Landlord may make any such entries without the abatement of
rent and may take such reasonable steps required to accomplish these stated
purposes. Except as otherwise provided in the last sentence of Section 16.1,
Tenant hereby waives any claims for damages or for any inconveniences to or
interferences with Tenant's business, lost profits, any loss of occupancy or
quiet enjoyment of the Premises or any other losses occasioned thereby. For each
of the above purposes, Tenant shall insure that Landlord shall at all times have
keys with which to unlock all doors in the Premises. In an emergency, Landlord
shall have the right to use any means that Landlord may deem proper to open
doors in and to the Premises. Any entry into the Premises by Landlord in the
manner hereinabove described shall not be deemed to be a forcible or unlawful
entry into, or a detainer of, the Premises, or an actual or constructive
eviction of Tenant from any portion of the Premises.

                                   ARTICLE 14
                                    INSURANCE

      14.1 Tenant shall not conduct or permit any activity or place any item in
or about the Premises or the Building which may conflict with, invalidate or
increase the premium for any insurance carried by Landlord in connection with
the Building. If any increase in the premium for such insurance is due to any
such activity or item, then (whether or not Landlord has consented to such
activity or item) Tenant shall pay as additional rent hereunder the amount of
such increase upon demand. The statement of any insurance company or insurance
rating organization (or other organization exercising similar functions in
connection with the prevention of fires or the correction of hazardous
conditions) that such an increase is due to any such activity or item shall be
conclusive evidence thereof.

      14.2 Throughout the Lease Term, Landlord shall insure the Building (or
shall cause the Building to be insured) against loss due to fire and other
casualties covered by broad form property insurance policies, in such amounts as
Landlord may from time to time determine.

      14.3 Throughout the Lease Term, Tenant shall obtain and maintain the
following coverages in the following amounts:

                                       20
<PAGE>

            (a) Commercial general liability insurance, including (i) liquor
liability coverage, (ii) contractual liability coverage insuring the obligations
assumed by Tenant under this Lease (including those set forth in Section 16.3
below), premises and operations coverage, (iii) broad form property damage
coverage (including vandalism and malicious mischief coverage), and (iv)
independent contractors coverage. Such insurance coverage must contain an
endorsement for personal injury, covering the insured and the Premises against
claims for bodily injury, death, personal injury and property damage. The limits
of liability for the above described insurance coverage shall not be less than:

            Bodily Injury, Death and         $5,000,000 each occurrence
            Property Damage Liability        $5,000,000 annual aggregate

            Personal Injury Liability        $5,000,000 each occurrence
                                             $5,000,000 annual aggregate

            (b) Physical damage insurance covering (i) all furniture, trade
fixtures, equipment, merchandise and all other items of personal property on the
Premises used or installed by, for, or at the expense of Tenant, and (ii) all
improvements, alterations and additions to the Premises. Such insurance shall be
written on an "all risks" of physical loss or damage basis, for the full
replacement cost value new without deduction for depreciation of the covered
items and in amounts that meet any co-insurance clauses of the policies of
insurance and shall include a vandalism and malicious mischief endorsement and
sprinkler leakage coverage.

            (c) Loss of income and extra expense insurance in such amounts as
will reimburse Tenant for direct or indirect loss of earnings attributable to
all perils commonly insured against by prudent tenants or attributable to
prevention of access to the Premises or the Building as a result of such perils.

            (d) Worker's compensation insurance covering all of Tenant's
employees in such form and amount as is required by Law.

            (e) Employer's liability insurance for a limit of liability
insurance not less than Three Million Dollars ($3,000,000).

            (f) Plate glass insurance covering all plate glass in the Premises;
provided, however, Tenant shall have the right to self-insure for plate glass
damage or breakage.

            (g) Such other types of insurance coverage in such amounts as may
hereafter reasonably be required by Landlord.

      14.4 The minimum limits of policies of insurance required of Tenant under
this Lease shall in no event limit the liability of Tenant under this Lease.
Each of the policies of insurance required to be obtained by Tenant under this
Lease (other than that identified in Subsection 14.3(d) above)

                                       21
<PAGE>

shall: (i) name Landlord, each party holding an interest in Landlord, each
Mortgagee, and all other persons or entities designated by Landlord, as
additional insureds; (ii) be issued by an insurance company having a rating of
not less than A-X in Best's Insurance Guide or which is otherwise acceptable to
Landlord, and licensed to do business in Washington, D.C.; (iii) be primary
insurance as to all claims thereunder and provide that any insurance carried by
Landlord is excess and is non-contributing with the subject insurance coverage;
and (iv) contain a cross-liability endorsement or severability of interest
clause acceptable to Landlord. No such policy shall contain any deductible
provision of more than $10,000 except as approved by Landlord, which approval
shall not be unreasonably withheld. Each such policy shall initially be for a
term of one (1) year and shall contain an endorsement prohibiting cancellation,
modification or reduction of coverage without first giving Landlord and each
Mortgagee at least thirty (30) days' prior notice of such proposed action. All
premiums and charges for the insurance required to be obtained by Tenant under
this Lease shall be paid by Tenant. If Tenant fails to obtain or maintain such
insurance coverage in accordance with the term of this Lease or Tenant fails to
pay premiums for the same when due, Landlord, following written notice and
Tenant's failure to cure as provided pursuant to Section 20.1(b), may obtain
such insurance coverage or pay such premiums, and all costs incurred and amounts
paid by Landlord in connection therewith shall be reimbursed by Tenant to
Landlord on demand. Tenant shall deliver certificates of all such insurance
coverages and receipts evidencing payment therefor (and, upon request, copies of
all required insurance policies, including endorsements and declarations) to
Landlord on or before the Lease Commencement Date and at least annually
thereafter.

                                   ARTICLE 15
                             SERVICES AND UTILITIES

      15.1 Tenant shall be responsible for obtaining or performing, and paying
the costs and charges incurred as a result of, services and utilities supplied
or installed specifically and exclusively for the benefit of the Premises,
including, but not limited to, the following:

                  (1) maintenance of a separate electrical meter for the
Premises, which meter shall be installed at Tenant's expense, in order to permit
separate metering of Tenant's electricity service. The charges for electrical
service provided to the Premises measured by Tenant's separate electric meter
shall be paid by Tenant directly to the power company;

                  (2) maintenance of a separate water meter for the Premises,
which meter shall be installed at Tenant's expense, in order to permit the
separate metering of Tenant's water service. The charges for water service
provided to the Premises measured by Tenant's separate water meter shall be paid
by Tenant directly to the water company. In the event installation of a separate
water meter for the Premises is not possible, then Tenant shall be responsible
for maintenance of a separate water submeter for the Premises, which submeter
shall be installed at Tenant's expense, and Tenant shall make payment to
Landlord for its water usage, as additional rent, within fifteen (15) days of
its receipt of a bill therefor from Landlord;

                                       22
<PAGE>

                  (3) maintenance of a separate gas meter for the Premises,
which meter shall be installed at Tenant's expense, in order to permit separate
metering of Tenant's gas service. The charges for gas service provided to the
Premises measured by Tenant's separate gas meter shall be paid by Tenant
directly to the gas company. In the event installation of a separate gas meter
for the Premises is not possible, then Tenant shall be, responsible for
maintenance of a separate gas submeter for the Premises, which submeter shall be
installed at Tenant's expense, and Tenant shall make payment to Landlord for its
gas usage, as additional rent, within fifteen (15) days of its receipt of a bill
therefor from Landlord;

                  (4) During the Lease Term, Landlord shall furnish condenser
water to the existing supplementary air conditioning, heating and ventilation
system installed in the Premises as of the date of this Lease (the
"Supplementary System"), sufficient for operation of the Supplementary System.
Subject to the terms of this Lease, Landlord shall make such condenser water
available at all times. Tenant shall pay to Landlord, as additional rent, an
hourly charge (the "Condenser Water Charge") for furnishing condenser water to
the Supplementary System. Landlord shall read the elapsed time meter for the
Supplementary System (which meter shall measure only the time of operation of
the compressor(s) of the Supplementary System) from time to time and bill Tenant
an amount equal to the product obtained by multiplying (i) the then-applicable
Condenser Water Charge, by (ii) the number of hours of operation of the
compressor(s) of the Supplementary System since the prior reading of such meter.
Such billing shall be paid by Tenant within thirty (30) days after Tenant's
receipt thereof. If more than one compressor is included in the Supplementary
System, the elapsed time for the same shall be metered, and the amount payable
by Tenant pursuant to this Subsection 4 shall be computed separately with
respect to each such compressor. Notwithstanding anything to the contrary
contained in this Lease, Tenant shall, at its sole cost and expense, maintain
and repair the Supplementary System in good working order and condition at all
times during the Lease Term (including the making and maintaining of
replacements, if any) and shall surrender the same to Landlord in good and
proper working order and condition upon the expiration or earlier termination of
this Lease.

                  (5) operation, maintenance, repair and replacement of the
heating, ventilating and air-conditioning system for the Premises, and the
electrical, life-safety, fire protection and plumbing systems for the Premises;

                  (6) installation, operation and maintenance of any security
system installed by or on behalf of Tenant in or for the benefit of the
Premises;

                  (7) cleaning and char services for the Premises, including
interior and exterior window cleaning;

                  (8) removal of all garbage, trash and refuse generated in the
Premises via the corridors and entrances designated for such purpose by
Landlord;

                                       23
<PAGE>

                  (9) maintenance and cleaning of all sidewalks adjacent to the
Premises and entryways to the Premises;

                  (10) maintenance, cleaning and inspections of kitchen and
exhaust equipment (including fans on the roof of the Building servicing the
Premises), provided that Landlord shall maintain the kitchen exhaust riser
servicing the Premises in accordance with Section 8.3;

                  (11) installation and maintenance of restroom facilities as
may be required by applicable codes and regulations of governmental and
quasi-governmental authorities having jurisdiction, including appropriate and
necessary plumbing and equipment to connect the facilities in the Premises to
the wet stacks of the Building; and

                  (12) jet-washing of all sewer lines serving the Premises at
least once every six (6) months (or more frequently if Landlord determines that
more frequent cleaning is required).

      15.2 [Omitted.]

      15.3 The parties agree to comply with all mandatory energy, water or other
utility conservation controls and requirements imposed or instituted by
governmental or quasi-governmental authorities having jurisdiction, including,
without limitation, controls on the permitted range of temperature settings and
requirements necessitating curtailment of the volume of energy, water or other
utility consumption or the hours of operation of the Building. Any terms or
conditions of this Lease that conflict or interfere with compliance with such
controls or requirements shall be suspended for the duration of such controls or
requirements. It is further agreed that compliance with such controls or
requirements shall not be considered an eviction, actual or constructive, of
Tenant from the Premises and shall not entitle Tenant to terminate this Lease or
to an abatement of any rent payable hereunder.

      15.4 Tenant agrees that Landlord shall not have any liability to Tenant
whatsoever (by abatement of rent or otherwise), for failure to furnish or delay
in furnishing any of the utilities or services required to be furnished by
Landlord hereunder, or for any diminution in the quality or quantity thereof,
when such failure or delay or diminution is occasioned, in whole or in part, by
repairs, replacements or improvements, by any strike, lockout or other labor
trouble, by inability to secure electricity, gas, water or other fuel at the
Building, by any accident or casualty whatsoever, by act or default of Tenant or
other parties, or by any other cause beyond Landlord's reasonable control; and
such failures or delays or diminution shall never be deemed to constitute an
eviction or disturbance of Tenant's use and possession of the Premises or
relieve Tenant from paying rent or performing any of its obligations under this
Lease. Furthermore, Landlord shall not be liable under any circumstances for a
loss of, or injury to, property or for injury to, or interference with, Tenant's
business, including, without limitation, loss of profits, however occurring,
through or in connection with or incidental to a failure to furnish any of the
services or utilities as set forth in this Article. Any such failure or
inability to furnish the utilities or services required hereunder shall not be
considered an eviction, actual or constructive, of Tenant from the Premises and
shall not entitle Tenant to

                                       24
<PAGE>

terminate this Lease or to abate or receive a refund of any rent or other amount
payable under this Lease. Notwithstanding the foregoing terms of this Section,
in the event services required to be provided by Landlord to the Premises
pursuant to this Lease are not provided for a reason within Landlord's
reasonable control and such failure causes the Premises to be untenantable,
Tenant shall deliver written notice thereof to Landlord specifying the subject
failure to provide services (the "Service Failure Notice"). If Landlord has not
cured the subject matter within ten (10) business days after its receipt of the
Service Failure Notice, then Tenant's obligations to pay Base Rent and Tenant's
Proportionate Share of Real Estate Taxes shall abate beginning on the eleventh
(11th) business day following Landlord's receipt of the Service Failure Notice
through the date upon which Landlord restores the subject service to the
Premises, provided Tenant does not conduct business operations in the Premises
at any time during such abatement period. The above-described rent abatement
shall be Tenant's sole and exclusive remedy at law and in equity for Landlord's
failure to provide the subject service.

                                   ARTICLE 16
                              LIABILITY OF LANDLORD

      16.1 Landlord, its partners, members, employees, agents and independent
contractors shall not be liable to Tenant, any Invitee (as defined in Section
8.1 above) or any other person or entity for any damage (including indirect and
consequential damage), injury, loss or claim (including claims for the
interruption of or loss to business) based on or arising out of any cause
whatsoever (except as otherwise expressly provided in this Section), including
without limitation the following: repair to any portion of the Premises, the
Building or the Land; interruption in the use of the Premises or any equipment
therein; any accident or damage resulting from any use or operation (by
Landlord, Tenant or any other person or entity) of elevators or heating,
cooling, electrical, sewerage, plumbing or other equipment or apparatus;
termination of this Lease by reason of damage to the Premises or the Building;
robbery, theft, vandalism, mysterious disappearance, fire or any other casualty;
actions of any other tenant of the Building or of any other person or entity;
failure or inability of Landlord to furnish any utility or service specified in
this Lease; or leakage in any part of the Premises or the Building, or from
water, rain, ice or snow that may leak into, or flow from, any part of the
Premises or the Building, or from drains, pipes or plumbing fixtures in the
Premises or the Building. Any property stored or placed by Tenant or Invitees in
or about the Premises or the Building shall be at the sole risk of Tenant, and
Landlord shall not in any manner be liable for any loss or damage thereto or
theft thereof. If any employee of Landlord receives any package or article
delivered for Tenant, then such employee shall be acting as Tenant's agent for
such purpose and not as Landlord's agent. Notwithstanding the foregoing
provisions of this Section, Landlord shall not be released from liability to
Tenant for any damage caused by Landlord's willful misconduct or gross
negligence, to the extent such damage is not covered by insurance carried by
Tenant or required to be carried by Tenant; provided, however, that in no event
shall Landlord have any liability to Tenant, any Invitee or other person or
entity for (i) lost revenues or profits, or (ii) indirect or consequential
damages.

      16.2 [Omitted.]

                                       25
<PAGE>

      16.3 Tenant shall indemnify, protect, defend and hold harmless Landlord,
its partners, members, employees, agents and independent contractors from and
against all costs, damages, claims, liabilities and expenses (including
attorneys' fees) suffered by or claimed against Landlord or any of its partners,
members, employees, agents or independent contractors, directly or indirectly,
based on or arising out of (a) Tenant's use and occupancy of the Premises or the
business conducted therein, (b) the condition of the Premises or any occurrence
or happening in the Premises from any cause whatsoever, (c) any act or omission
of Tenant or any Invitee, (d) any default by Tenant in the observance or
performance of any of the terms, covenants or conditions of this Lease on
Tenant's part to be observed or performed, including failure to surrender the
Premises upon the expiration or earlier termination of the Lease Term, or (e)
any entry by Tenant or any Invitee in the Building or upon the Land prior to the
Lease Commencement Date. Notwithstanding the foregoing, Tenant's indemnification
obligations set forth above shall not extend to any matter resulting solely from
the gross negligence or willful misconduct of Landlord or any of its partners,
members, employees, agents or independent contractors.

      16.4 If any landlord hereunder transfers the Building or such landlord's
interest therein, then such landlord shall not be liable for any obligation or
liability under the Lease based on or arising out of any event or condition
occurring on or after the date of such transfer, and Tenant agrees to look
solely to the transferee for the performance of Landlord's obligations hereunder
to the extent arising after the date of such transfer. Within fifteen (15) days
after the transferee's request, Tenant shall attorn to such transferee and
execute, acknowledge and deliver any requisite or appropriate document submitted
to Tenant confirming such attornment. Notwithstanding the foregoing, Tenant
acknowledges that Landlord may assign its interest in this Lease to a mortgage
lender as additional security and agrees that such assignment shall not release
Landlord from its obligations hereunder and that Tenant shall continue to look
to Landlord for the performance of its obligations hereunder.

      16.5 Tenant shall not have the right to offset or deduct the amount
allegedly owed to Tenant pursuant to any claim against Landlord from any rent or
other sum payable to Landlord. Tenant's sole remedy for recovering upon such
claim shall be to institute an independent action against Landlord.

      16.6 Notwithstanding anything to the contrary set forth in this Lease, if
Tenant or any Invitee is awarded a judgment or other remedy against Landlord,
then recourse for satisfaction of the same shall be limited to execution against
Landlord's interest in the Building and the Land. No other asset of Landlord,
any partner, member or other person or entity holding an interest in Landlord or
any other person or entity shall be available to satisfy, or be subject to, such
judgment or other remedy, nor shall any such partner, member, person or entity
be held to have any personal liability for satisfaction of any claim or judgment
against Landlord or any partner or member of Landlord. Tenant hereby agrees that
it shall not assert any claim against or seek recovery from a partner, member or
any other person or entity holding an interest in Landlord for performance of
any obligations of Landlord under this Lease or any judgement or other remedy to
which Tenant may be entitled against Landlord. In any claim made by Tenant
against Landlord alleging that Landlord has acted unreasonably where Landlord
had an obligation to act reasonably, Tenant shall have no right

                                       26
<PAGE>

to recover damages from Landlord and Tenant's sole and exclusive recourse
against Landlord shall be an action seeking specific performance of Landlord's
obligation to act reasonably.

                                   ARTICLE 17
                                      RULES

      17.1 Tenant and its Invitees shall at all times abide by, observe and
comply strictly with the rules set forth in Exhibit C. Nothing contained in this
Lease shall be construed as imposing upon Landlord any duty to enforce such
rules or any condition or covenant contained in any other lease against any
other tenant, and Landlord shall not be liable to Tenant for the violation of
such rules by any other tenant or its employees, agents, assignees, subtenants,
licensees or invitees.

                                   ARTICLE 18
                              DAMAGE OR DESTRUCTION

      18.1 If the Premises or the Building are totally or partially damaged or
destroyed by fire or other casualty thereby rendering the Premises totally or
partially inaccessible or unusable, then Landlord shall diligently (subject to
reasonable delays for insurance adjustment or other matters beyond Landlord's
reasonable control and subject to all other terms of this Article 18), repair
and restore the Premises (excluding tenant improvements) and the Building to
substantially the same condition they were in prior to such damage or
destruction, except for (a) modifications required by Laws, (b) modifications
required by the holder of any Mortgage, and (c) any modifications to the common
areas of the Building deemed desirable by Landlord provided access to the
Premises shall not be materially impaired. Further, and notwithstanding anything
to the contrary set forth in this Article 18, Landlord may elect to terminate
this Lease by delivering notice to Tenant if one or more of the following
conditions is present: (i) in Landlord's reasonable judgment, repairs and
restoration cannot be completed within one hundred eighty (180) days after the
occurrence of the subject damage or destruction (taking into account the time
needed for effecting a satisfactory settlement with any insurance company
involved, removal of debris, preparation of plans and specifications, and
issuance of all approvals and permits required by governmental or
quasi-governmental authorities having jurisdiction), when such repairs are made
without the payment of overtime or other premiums; (ii) the cost to repair the
subject damage exceeds twenty-five percent (25%) of the replacement value of the
Building, whether or not the Premises are damaged or destroyed; (iii) the holder
of any Mortgage fails or refuses to make the insurance proceeds available for
repair and restoration of the subject damage or destruction, or any underling
lessor of the Building or the Land shall terminate its lease; (iv) the costs to
repair the subject damage is not fully covered, except for deductible amounts,
by insurance policies carried by Landlord; (v) the Premises and/or the Building
is damaged or destroyed to any substantial extent during the last twenty-four
(24) months of the Lease Term; or (vi) any applicable Law does not permit repair
or restoration of the subject damage. In the event Landlord's so elects to
terminate this Lease, (1) this Lease shall terminate as of the date set forth in
Landlord's notice delivered to Tenant, (2) Tenant shall pay the Base Rent,
Tenant's Proportionate Share of Real

                                       27
<PAGE>

Estate Taxes and any other amounts due hereunder, apportioned up to such date of
damage, and (3) Landlord and Tenant shall thereafter be freed and discharged of
all further obligations hereunder, except as provided in provisions of this
Lease which by their terms survive the expiration or earlier termination of the
Lease Term.

      18.2 If Landlord determines, in its sole but reasonable judgment, that the
repairs and restoration cannot be substantially completed within one hundred
eighty (180) days after the date of such damage or destruction, Landlord shall
promptly notify Tenant of such determination. For a period of thirty (30) days
after receipt of such determination, Tenant shall have the right to terminate
this Lease by providing notice to Landlord. If Tenant does not elect to
terminate this Lease within such thirty (30) day period, and provided Landlord
has not elected to terminate this Lease pursuant to Section 18.1 above, Landlord
shall proceed to repair and restore the Premises and the Building.
Notwithstanding the foregoing, Tenant shall not have the right to terminate this
Lease if the act or omission of Tenant or any of its Invitees shall have caused
the damage or destruction.

      18.3 If this Lease is terminated pursuant to Section 18.1 or 18.2 above,
then all rent shall be apportioned (based on the portion of the Premises which
is usable after such damage or destruction, it being agreed that all rent
allocable to the portion of the Premises which is not usable after such damage
or destruction shall be abated through the date of termination) and paid to the
date of damage. If this Lease is not terminated as a result of such damage or
destruction, then until the substantial completion of such repair and
restoration of the Premises which Landlord is obligated to perform, Tenant shall
be required to pay the Base Rent and Tenant's Proportionate Share of Real Estate
Taxes only for the portion of the Premises that is usable while such repair and
restoration are being made. Landlord shall bear the expenses of repairing and
restoring the Premises and the Building; provided, however, that Landlord shall
not be required to repair or restore any Alteration or other tenant improvement
installed in the Premises or any of Tenant's trade fixtures, furniture,
furnishings, equipment or personal property; and provided further that if such
damage or destruction was caused by the act or omission of Tenant or any
Invitee, then Tenant shall pay the amount by which such expenses exceed the
insurance proceeds, if any, actually received by Landlord on account of such
damage or destruction.

      18.4 The provisions of this Lease, including this Article 18, constitute
an express agreement between Landlord and Tenant with respect to any and all
damage to, or destruction of, all or any part of the Premises or the Building,
and any statute or regulation of any governmental or quasi-governmental
authority having jurisdiction with respect to any rights or obligations
concerning damage or destruction in the absence of an express agreement between
the parties, and any other statute or regulation now or hereafter in effect,
shall have no application to this Lease with respect to any damage or
destruction to all or any portion of the Premises and/or the Building.

                                       28
<PAGE>

                                   ARTICLE 19
                                  CONDEMNATION

      19.1 If the entire Premises shall be permanently taken or condemned by any
governmental or quasi-governmental authority for any public or quasi-public use
or purpose or sold under threat of such a taking or condemnation (collectively,
"condemned"), then this Lease shall terminate on the date title thereto vests in
such authority and rent shall be apportioned as of such date and Tenant shall
have no claim against Landlord with respect thereto. If only a portion of the
Premises is condemned, then this Lease shall continue in full force and effect
as to the part of the Premises not condemned, except that as of the date title
vests in such authority Tenant shall not be required to pay the Base Rent and
Tenant's Proportionate Share of Real Estate Taxes with respect to the part of
the Premises condemned. Notwithstanding anything herein to the contrary, if
twenty-five percent (25%) or more of the Land or the Building is condemned or if
such other portion of the Land or the Building is condemned and in the
reasonable opinion of Landlord the Building cannot be operated in an
economically viable manner, then whether or not any portion of the Premises is
condemned Landlord shall have the right to terminate this Lease as of the date
title vests in such authority.

      19.2 All awards, damages and other compensation paid by such authority on
account of such condemnation (partial or total) shall belong to Landlord, and
Tenant assigns to Landlord all rights to such awards, damages and compensation.
Tenant shall not make any claim against Landlord or the authority for any
portion of such award, damages or compensation attributable to damage to the
Premises, value of the unexpired portion of the Lease Term, loss of profits or
goodwill, leasehold improvements or severance damages. Nothing contained herein,
however, shall prevent Tenant from pursuing a separate claim against the
authority for the value of furnishings and trade fixtures installed in the
Premises at Tenant's expense and for relocation expenses, provided that such
claim shall in no way diminish the award, damages or compensation payable to or
recoverable by Landlord in connection with such condemnation.

                                   ARTICLE 20
                                     DEFAULT

      20.1 Each of the following events shall constitute, and is hereinafter
referred to as, an "Event of Default":

            (a) Tenant's failure to pay any Base Rent, additional rent or any
other sum which it is obligated to pay pursuant to this Lease, when and as due
and payable hereunder; provided, however, no Event of Default shall be deemed to
have occurred unless the subject default continues for a period of five (5)
business days after Landlord delivers notice thereof to Tenant; provided,
however, that no Event of Default shall be deemed to have occurred with respect
to the first such default in any calendar year unless the subject default
continues for a period of twenty (20) days after Landlord delivers notice
thereof to Tenant;

                                       29
<PAGE>

            (b) Tenant's failure to observe and perform any other provision,
term or covenant of this Lease to be observed or performed by Tenant; provided,
however, no Event of Default shall be deemed to have occurred unless the subject
default continues for a period of thirty (30) days after Landlord delivers
notice thereof to Tenant, provided that if (i) the nature of the subject default
is such that the same cannot reasonably be cured within such thirty (30) day
period, and (ii) Tenant begins to cure the subject default promptly after its
receipt of the corresponding notice from Landlord and is pursuing such cure in
good faith and with diligence and continuity, then Tenant shall have such
additional time, up to an additional thirty (30) days, as may be reasonably
necessary to cure the default;

            (c) Tenant (i) fails to occupy and assume possession of the Premises
within fifteen (15) business days after the Lease Commencement Date, or (ii)
thereafter vacates or abandons the Premises for more than three (3) consecutive
business days, except for those periods when Tenant is permitted to close the
restaurant at the Premises pursuant to Section 6.2.

      20.2 If there shall be an Event of Default, including an Event of Default
prior to the Lease Commencement Date, then Landlord shall have the right, at its
sole option, to terminate this Lease. In addition, with or without terminating
this Lease, Landlord may, without notice to Tenant, re-enter, terminate Tenant's
right of possession and take possession of the Premises. The provisions of this
Article shall operate as a notice to quit, any other notice to quit or of
Landlord's intention to re-enter the Premises being hereby expressly waived by
Tenant. If necessary, Landlord may proceed to recover possession of the Premises
under and by virtue of the Laws of the District of Columbia, or by such other
proceedings, including re-entry and possession, as may be applicable. If
Landlord elects to terminate this Lease and/or elects to terminate Tenant's
right of possession, then everything contained in this Lease to be done and
performed by Landlord shall cease, without prejudice, however, to Landlord's
right to recover from Tenant all rent and other sums accrued through the later
of termination or Landlord's recovery of possession. If Landlord is entitled, or
if Tenant is required, pursuant to any provision of this Lease to take any
action upon the expiration or earlier termination of the Lease Term, then
Landlord shall be entitled and Tenant shall be required, to take such action
also upon the termination of this Lease in accordance with the foregoing. No
re-entry, repossession, repairs, alterations, additions or reletting of the
Premises by Landlord shall be construed as an eviction or ouster of Tenant or an
election on Landlord's part to terminate this Lease, unless notice of such
intention is given to Tenant, nor shall any such re-entry, repossession,
repairs, alterations, additions or reletting operate to release Tenant in whole
or in part from any of Tenant's obligations hereunder. Notwithstanding that
Landlord may have relet the Premises or any portion thereof without terminating
this Lease, Landlord may at any time thereafter elect to terminate this Lease
for any previous Event of Default. Whether or not this Lease and/or Tenant's
right of possession is terminated, Landlord may, but shall not be obligated to,
relet the Premises or any part thereof, alone or together with other premises,
for such rent and upon such terms and conditions (which may include concessions
or free rent and alterations of the Premises) as Landlord, in its sole
discretion, may determine, but Landlord shall not be liable for, nor shall
Tenant's obligations be diminished by reason of, Landlord's failure to relet the
Premises or collect any rent due upon such reletting. Whether or not this Lease
is terminated, Tenant nevertheless shall remain liable for any Base Rent and
monthly

                                       30
<PAGE>

additional rent and other sums and damages which may be due or sustained prior
to the Event of Default, and all costs, fees and expenses (including without
limitation attorneys' fees, brokerage fees and expenses incurred in placing the
Premises in first-class rentable condition, advertising expense and any
concessions or allowances granted by Landlord in connection with the reletting
of the Premises or any portion thereof) incurred by Landlord in pursuit of its
remedies and in renting the Premises to others from time to time. All of such
costs and expenses shall be payable upon demand, together with interest at the
Default Rate accruing from the date same were incurred by Landlord until paid to
Landlord. Tenant shall also be liable for damages which shall include, without
limitation, damages with respect to the Base Rent and monthly additional rent
payable by Tenant under this Lease for the balance of the Lease Term. At
Landlord's election, the damages payable by Tenant with respect to the Base Rent
and monthly additional rent payable by Tenant under this Lease for the balance
of the Lease Term shall be either:

            (a) an amount equal to the Base Rent and monthly additional rent
which would have become due during the period commencing on the date upon which
the subject Event of Default occurred through the remainder of the Lease Term,
less the amount of rental, if any, which Landlord receives during such period
from others to whom the Premises may be rented (other than any additional rent
payable as a result of any failure of such other person to perform any of its
obligations), which damages shall be computed and payable in monthly
installments, in advance, on the first day of each calendar month following the
subject Event of Default and continuing until the date on which the Lease Term
would have expired but for the subject Event of Default. Separate suits may be
brought to collect any such damages for any month(s), and such suits shall not
in any manner prejudice Landlord's right to collect any such damages for any
subsequent month(s), or Landlord may defer any such suit until after the
expiration of the Lease Term, in which event the cause of action shall be deemed
not to have accrued until the expiration of the Lease Term; or

            (b) an amount equal to the present value (as of the date of the
termination of this Lease) of the difference between (i) the Base Rent and
monthly additional rent which would have become due during the period commencing
on the date upon which the subject Event of Default occurred through the
remainder of the Lease Term, and (ii) the fair market rental value of the
Premises for the same period (net of all expenses (including attorneys' fees,
brokers' commissions, advertising expenses, expenses incurred in placing the
Premises in first-class rentable condition, and any concessions or allowances
granted by Landlord in connection with the reletting of the Premises or a
portion thereof) and all vacancy periods projected by Landlord to be incurred in
connection with the reletting of the Premises), as determined by Landlord in its
sole and absolute discretion, which damages shall be payable to Landlord in one
lump sum on demand. For purpose of this Subsection, present value shall be
computed by discounting at a rate equal to one (1) whole percentage point above
the discount rate in effect at the Federal Reserve Bank of New York on the date
Landlord elects to obtain payment under this Subsection.

As used in this Section, "monthly additional rent" shall mean Tenant's
obligation for payment of Tenant's Proportionate Share of Real Estate Taxes.
Tenant waives any right of redemption, re-entry

                                       31
<PAGE>

or restoration of the operation of this Lease under any present or future Law,
including any such right which Tenant would otherwise have if Tenant shall be
dispossessed for any cause.

      20.3 [Intentionally Deleted.]

      20.4 Landlord's rights and remedies set forth in this Lease are cumulative
and in addition to Landlord's other rights and remedies at law or in equity,
including those available as a result of any anticipatory breach of this Lease.
Landlord's exercise of any such right or remedy shall not prevent the concurrent
or subsequent exercise of any other right or remedy. Landlord's delay or failure
to exercise or enforce any of Landlord's rights or remedies or Tenant's
obligations shall not constitute a waiver of any such rights, remedies or
obligations. Landlord shall not be deemed to have waived any default unless such
waiver expressly is set forth in an instrument signed by Landlord. If Landlord
waives in writing any default, then such waiver shall not be construed as a
waiver of any term, covenant or condition set forth in this Lease except as to
the specific circumstances described in such waiver. Neither Tenant's payment of
a lesser amount than the sum due hereunder nor any endorsement or statement on
any check or letter accompanying such payment shall be deemed an accord and
satisfaction, and Landlord may accept the same without prejudice to Landlord's
right to recover the balance of such sum or to pursue any other remedy available
to Landlord. Landlord's re-entry and acceptance of keys shall not be considered
an acceptance of a surrender of this Lease. Receipt and acceptance by Landlord
of any rent due to Landlord hereunder with knowledge of the existence of any
default or condition which, if left uncured, will constitute a default by Tenant
hereunder, shall not be deemed a waiver of such default.

      20.5 If more than one natural person and/or entity shall execute this
Lease as Tenant, then the liability hereunder of each such person or entity
shall be joint and several. Similarly, if Tenant is a general partnership or
other entity the partners or members of which are subject to personal liability,
then the liability of each such partner or member hereunder shall be joint and
several.

      20.6 If Tenant fails to make any payment to any third party or to observe
or perform any term, condition or provision of this Lease required to be
observed or performed by Tenant, then following notice (which may be written or
oral) to Tenant, Landlord may, but shall not be required to, make the subject
payment or cause the observance or performance of the subject matter. Landlord's
taking such action shall not be considered a cure of such failure by Tenant or
prevent Landlord from pursuing any remedy to which it is otherwise entitled in
connection with such failure. If Landlord elects to make the subject payment or
cause the observance or performance of the subject matter, then all amounts paid
by Landlord and all expenses incurred by Landlord in connection therewith, plus
interest thereon at a rate per annum (the "Default Rate") which is five (5)
whole percentage points higher than the prime rate announced from time to time
by Chase Manhattan Bank (or its legal successor), from the date paid or incurred
to the date of payment thereof by Tenant, shall constitute additional rent and
shall be paid by Tenant upon its receipt of Landlord's demand for the same.

                                       32
<PAGE>

      20.7 Tenant hereby acknowledges that late payment by Tenant to Landlord of
rent or other sums due hereunder will cause Landlord to incur costs not
contemplated by this Lease, the exact amount of which is extremely difficult to
ascertain. Such costs include, but are not limited to, processing and accounting
charges, and late charges which may be imposed upon Landlord by the terms of a
Mortgage. Accordingly, if any installment of rent or any other sum due from
Tenant hereunder shall not be received by Landlord or Landlord's designee within
five (5) days after said amount is due, then Tenant shall pay to Landlord a late
charge equal to five percent (5.0%) of the subject amount. Acceptance of such
late charge by Landlord shall in no event constitute a waiver of Tenant's
default with respect to the subject overdue amount, nor prevent Landlord from
exercising any of the other rights and remedies granted hereunder. The late
charge shall be deemed additional rent and the right to require it shall be in
addition to all of Landlord's other rights and remedies hereunder or at law and
shall not be construed as liquidated damages or as limiting Landlord's remedies
in any manner. In addition to the late charge described above, any rent or other
amounts payable by Tenant hereunder which are not received by Landlord when due
shall thereafter bear interest at the Default Rate until paid.

      20.8 (a) Subject to the subordination provisions set forth in Section
20.8(b) below, Tenant grants to Landlord a lien upon and a security interest in,
as security for the performance of Tenant's obligations under this Lease,
Tenant's existing or hereafter acquired personal property, inventory, furniture,
fixtures, equipment and other assets (excluding business records), and all
products and proceeds thereof, which are located in the Premises or used in
connection with the business to be conducted in the Premises. Such lien shall be
in addition to all rights of distraint available under applicable Law. Within
fifteen (15) days after Landlord's request, Tenant shall execute, acknowledge
and deliver to Landlord financing statements and any other document submitted to
Tenant evidencing or establishing such lien and security interest. If Tenant
fails to so timely execute and deliver any such document requested by Landlord,
Tenant hereby appoints Landlord as its attorney-in-fact, irrevocably, to
execute, deliver and/or file any such document at Tenant's sole cost and
expense, said power of attorney being coupled with an interest. During any
period Tenant is in default under this Lease, Tenant shall not sell, transfer or
remove from the Premises any of the above-referenced personal property,
inventory, furniture, fixtures, equipment or other assets. All exemption Laws
are hereby waived by Tenant in favor of the above-referenced lien and security
interest benefitting Landlord. Landlord shall have, in addition to all of its
rights under this Lease, all of the rights and remedies of a secured party under
the Uniform Commercial Code of the District of Columbia.

            (b) Subject to the terms set forth below in this Section, Landlord
shall subordinate the lien and security interest granted by Tenant pursuant to
Section 20.8(a) to a first position lien and security interest granted by Tenant
in its personal property and equipment located in the Premises (the "Secured
Property") as security for bona fide indebtedness incurred by Tenant for the
purpose of financing the purchase of the same. Any lender to whom Tenant shall
grant such lien and security interest is hereinafter referred to as the "Secured
Lender". In the event the Premises are abandoned or Landlord recovers possession
of the Premises by any means, the Secured Lender shall have the right to remove
the Secured Property from the Premises within fifteen (15) days after its
receipt of

                                       33
<PAGE>

notice of such abandonment or recovery of possession by Landlord. After said
period, all property remaining in the Premises shall be deemed abandoned and
Landlord shall be entitled to use, sell or otherwise dispose of the same as
Landlord determines in its sole discretion. Any other removal of the Secured
Property from the Premises by the Secured Lender shall take place only after the
delivery of at least fifteen (15) days prior written notice to Landlord. The
Secured Lender shall not cause or permit any disturbance or interference with
other occupants' quiet enjoyment of their space in the Building. In connection
with any foreclosure of its security interest in the Secured Property, the
Secured Lender shall provide Landlord with reasonable advance written notice of
all hearings and sale proceedings in connection therewith, and otherwise as
required by law. The Secured Lender shall indemnify, protect, defend and hold
harmless Landlord, its partners, members, employees, agents and independent
contractors from and against all costs, damages, losses, claims, liabilities and
expenses (including attorneys' fees) incurred or suffered by or claimed against
Landlord or any of its partners, members, employees, agents or independent
contractors, directly or indirectly, based on or arising out of any act or
omission of the Secured Lender or any of its employees, contractors or agents
relative to the Secured Property. All damage to the Premises and any other
portion of the Building which results directly or indirectly from the removal of
all or any of the Secured Property from the Premises by the Secured Lender shall
be repaired by the Secured Lender, at its sole cost and expense, within five (5)
days after the occurrence of the subject damage. If the Secured Lender shall
fail to repair any such damage within such five (5) day period, Landlord may do
so and the Secured Lender shall reimburse Landlord for all costs and expenses
incurred by Landlord in connection therewith. The Secured Lender shall not
permit any condition in the Premises resulting from the removal of all or any of
the Secured Property to be in an unsafe condition or in any condition that could
cause continuing damage. The Secured Lender shall reimburse Landlord on demand
for all costs and expenses incurred by Lender in connection with the removal of
all or any of the Secured Property. The Secured Lender shall advise Landlord in
writing promptly after the obligations secured by the Secured Property have been
satisfied, discharged or released. As a condition to Landlord's subordination of
its lien and security interest described above in this Section to the lien and
security interest granted by Tenant to the Secured Lender, the Secured Lender
shall provide to Landlord its written agreement to the terms and conditions of
this Section.

      20.9 The obligations of Tenant under this Article 20 shall survive the
expiration or earlier termination of the Lease Term.

                                   ARTICLE 21
                                   BANKRUPTCY

      21.1 As used in this Lease, each of the following events shall constitute,
and is hereafter referred to as, an "Event of Bankruptcy": (a) Tenant's or
Guarantor's becoming insolvent, as that term is defined in Title 11 of the
United States Code (the "Bankruptcy Code"), or under the insolvency, bankruptcy,
reorganization or other similar Laws of any state (the "Insolvency Laws"); (b)
the entry by a court of a decree or order for relief in respect of Tenant or
Guarantor in an involuntary case or proceeding under the Bankruptcy Code or any
Insolvency Laws; (c) the entry by a court of a decree

                                       34
<PAGE>

or order adjudging Tenant or Guarantor a bankrupt or insolvent, or approving a
petition seeking reorganization, arrangement, adjustment or composition of or in
respect of Tenant or Guarantor under the Bankruptcy Code or any Insolvency Laws;
(d) appointment of a receiver, liquidator, trustee, custodian or other similar
official with respect to Tenant or Guarantor, or with respect to any property of
Tenant or Guarantor, or the institution of a foreclosure or attachment action
upon any property of Tenant or Guarantor; (e) filing of a voluntary petition by
Tenant or Guarantor under the provisions of the Bankruptcy Code or Insolvency
Laws; (f) filing of an involuntary petition against Tenant or Guarantor as the
subject debtor under the Bankruptcy Code or Insolvency Laws, which either (i) is
not dismissed within sixty (60) days of filing, or (ii) results in the issuance
of an order for relief against the debtor; or (g) Tenant's or Guarantor's making
or consenting to an assignment for the benefit of creditors or a composition of
creditors.

      21.2 (a) Without limiting any provision of Article 20 above or this
Article 21, if pursuant to the Bankruptcy Code Tenant or Tenant's trustee in
bankruptcy ("Trustee") is permitted to assume this Lease or to assign this Lease
in disregard of the terms of Article 7 above, Tenant agrees that prior to any
such assumption or assignment, Tenant shall (1) cure all defaults under this
Lease, (2) compensate Landlord for monetary damages incurred as a result of such
defaults, (3) provide adequate assurance of future performance on the part of
Tenant as debtor in possession or of the assignee of Tenant, and (4) comply with
all other requirements of the Bankruptcy Code. This Lease may be terminated by
Landlord if the foregoing criteria for assumption or assignment are not met, or
if Tenant, Trustee or such assignee defaults under this Lease after such
assumption or assignment.

            (b) If Tenant's interest in this Lease is assumed but not assigned,
adequate assurance of future performance, as used in this Section 21.2, shall
include, without limitation, satisfaction of all of the following minimum
criteria: (A) Tenant's gross receipts in the ordinary course of business during
the thirty (30) day period immediately preceding the initiation of the case
under the Bankruptcy Code must be greater than two (2) times the next monthly
installment of the Base Rent and additional rent; (B) both the average and
median of Tenant's monthly gross receipts in the ordinary course of business
during the six (6) month period immediately preceding the initiation of the case
under the Bankruptcy Code must be greater than two (2) times the next monthly
installment of the Base Rent and additional rent; (C) Tenant must pay its
estimated pro rata share of the cost of all services performed or provided by
Landlord (whether directly or through agents or contractors and whether or not
previously included as part of the Base Rent) in advance of the performance or
provision of such services; and (D) Tenant's business shall be conducted in the
Premises in a first-class manner, and that no liquidating sale, auction or other
non-first-class business operation shall be conducted in the Premises.

            (c) In all circumstances, adequate assurance of future performance,
as used in this Section 21.2, shall include, without limitation, satisfaction of
all of the following minimum criteria: (i) Tenant, Trustee or the transferee of
Tenant's interest in this Lease shall agree that the use of the Premises as
stated in this Lease shall remain unchanged and that no prohibited use shall be
permitted; (ii) the assumption or assignment of this Lease shall not violate or
affect the rights of other tenants in the Building; (iii) Tenant, Trustee, or
the transferee of Tenant's interest in the Lease shall deposit

                                       35
<PAGE>

with Landlord, cash in an amount equal to the Base Rent and additional rent paid
or payable under this Lease for the preceding six (6) month period, which amount
shall be held by Landlord, without interest, for the balance of the Lease Term
as security for the full and faithful performance of all of the obligations
under this Lease on the part of Tenant to be performed; (iv) if Tenant receives
or is to receive any valuable consideration for an assignment of its interest in
this Lease, such consideration, after deducting therefrom expenses reasonably
incurred by Tenant for the subject assumption or assignment, shall be and become
the sole and exclusive property of Landlord and shall be paid over to Landlord
directly by the transferee of Tenant's interest in this Lease on the date the
subject assumption or assignment is intended to become effective; (v) Tenant,
Trustee or the transferee of Tenant's interest in this Lease shall have and
shall continue to have unencumbered assets, after the payment of all secured
obligations and administrative expenses with respect to Tenant only, to ensure
Landlord that sufficient funds will be available to fulfill the obligations of
Tenant under this Lease; and (vi) all assurances of future performance specified
in the Bankruptcy Code must be provided.

      21.3 If Tenant's interest in this Lease shall be assigned to any person or
entity who shall have made a bona fide offer to accept an assignment of this
Lease on terms acceptable to the court having competent jurisdiction over
Tenant's estate, then notice of such proposed assignment, setting forth (x) the
name and address of such person, (y) all of the terms and conditions of such
offer, and (z) the adequate assurance to be provided Landlord to assure such
person's or entity's future performance under this Lease, including, without
limitation, the assurances referred to in Title 11 U.S.C. ss.365(b)(3), as may
be amended, shall be given to Landlord by Tenant no later than fifteen (15) days
after receipt by Tenant of such offer, but in any event no later than thirty
(30) days prior to the date that Tenant shall make application to the
above-referenced court for authority and approval to enter into such assignment.

                                   ARTICLE 22
                                  SUBORDINATION

      22.1 This Lease is subject and subordinate to the lien, provisions,
operation and effect of all mortgages, deeds of trust, underlying leases or
other security instruments which may now or hereafter encumber the Building
and/or the Land or any interest therein, and to all renewals, extensions,
replacements, consolidations, amendments, modifications, recastings or
refinancings thereof (collectively "Mortgages"), said subordination and the
provisions of this Section shall be self-operative and no further instrument of
subordination shall be required. Upon Landlord's request, Tenant shall execute
and deliver a certification or other requisite or appropriate document
confirming the subordination described above. The holder of any Mortgage shall
have the right (subject to any required approval of the holders of any superior
Mortgage) at any time to declare this Lease to be superior to the lien,
provisions, operation and effect of such Mortgage and Tenant shall execute,
acknowledge and deliver all documents required by such holder in confirmation
thereof.

                                       36
<PAGE>

      22.2 Tenant waives the provisions of any Law now or hereafter in effect
which may give or purport to give Tenant any right to terminate or otherwise
adversely affect this Lease or Tenant's obligations in the event any foreclosure
proceeding is prosecuted or completed or in the event the Land, the Building or
Landlord's interest therein is sold at a foreclosure sale or by deed in lieu of
foreclosure. If this Lease is not extinguished upon such sale or by the
purchaser following such sale or by the transferee in the event of a transfer by
deed in lieu of foreclosure, then, at the request of such purchaser or
transferee, Tenant shall attorn to such purchaser or transferee and shall
recognize such purchaser or transferee as the landlord under this Lease. Upon
such attornment such purchaser shall not be (a) bound by any payment of the Base
Rent or additional rent more than one (1) month in advance, (b) bound by any
amendment of this Lease made without the consent of the holder of each Mortgage
existing as of the date of such amendment, (c) liable for damages for any
breach, act or omission of any prior landlord, or (d) subject to any offsets or
defenses which Tenant might have against any prior landlord; provided, however,
that after succeeding to Landlord's interest, such purchaser shall perform in
accordance with the terms of this Lease all obligations of Landlord arising
after the date such purchaser acquires title to the Building. Within fifteen
(15) days after the request of such purchaser, Tenant shall execute, acknowledge
and deliver any requisite or appropriate document submitted to Tenant confirming
such attornment.

      22.3 (a) After Tenant receives notice from any person, firm or other
entity that it holds a Mortgage encumbering the Building and/or the Land or any
interest therein, no notice from Tenant to Landlord alleging any default by
Landlord shall be effective unless and until a copy of the same is given to such
holder, provided that Tenant shall have been furnished with the name and address
of such holder. Any such holder shall have thirty (30) days after its receipt of
notice from Tenant of a default by Landlord under this Lease to cure such
default before Tenant may exercise any remedy hereunder. The curing of any of
Landlord's defaults by such holder shall be treated as performance by Landlord.

            (b) In the event any lender providing construction, permanent or
other refinancing for the Building requires, as a condition of such financing,
that modifications to this Lease be obtained, and provided that such
modifications (i) do not adversely affect in a material manner Tenant's use of
the Premises as herein permitted; and (ii) do not increase the rent and other
sums to be paid by Tenant hereunder, Landlord may submit to Tenant an amendment
to this Lease incorporating such required changes, and Tenant hereby covenants
and agrees to execute, acknowledge and deliver such amendment to Landlord within
fifteen (15) days of Tenant's receipt thereof.

      22.4 Landlord hereby represents to Tenant that owns a fee simple interest
to the Land as of the date of this Lease. Landlord further represents to Tenant
that the only Mortgage that exists as of the date of this Lease is held by
Bankers Trust Company. Following its receipt of Tenant's request, Landlord
agrees to utilize its reasonable efforts to obtain from the holder of any
current or future Mortgage a nondisturbance agreement on such holder's standard
form. In the event that on or before the date which is 60 days following
execution of this Lease by all parties (the "Outside SNDA Date"), Landlord has
not provided to Tenant a non-disturbance agreement from

                                       37
<PAGE>

Bankers Trust in accordance with the foregoing. Tenant shall have the right to
terminate this Lease by providing written notice to Landlord within ten (10)
days after the Outside SNDA Date. If Tenant fails to deliver such notice, or
Landlord delivers the Bankers Trust Company' non-disturbance agreement, on or
prior to the expiration of such ten (10) day period, then Tenant's right to
terminate the Lease shall be null and void.

                                   ARTICLE 23
                                  HOLDING OVER

      23.1 If Tenant does not immediately surrender the Premises to Landlord
upon the expiration or earlier termination of the Lease Term, Landlord and
Tenant agree that Tenant's occupancy of the Premises after the expiration or
earlier termination of the Lease Term shall be upon all the terms and provisions
set forth in this Lease except that Tenant shall pay a use and occupancy charge
for the Premises during its period of holdover in an amount equal to the higher
of (a) the then fair market rent for the Premises, or (b) double the Base Rent,
additional rent and all other sums payable during the last year of the Lease
Term. Such amounts shall be computed on a monthly basis and shall be due and
payable on the first day of such holdover period and on the first day of each
calendar month thereafter during such holdover period until the Premises have
been vacated. If Tenant fails to surrender the Premises upon the expiration or
earlier termination of the Lease Term, in addition to any other liabilities to
Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold
Landlord harmless from and against all losses, costs (including attorneys'
fees), claims, damages and liabilities resulting from such failure, including,
without limitation, any claims made by any succeeding tenant founded upon such
failure to surrender and any lost profits to Landlord resulting therefrom.
Nothing contained in this Article shall (i) be construed as consent by Landlord
to any holding over by Tenant, (ii) be deemed to permit Tenant to retain
possession of the Premises after the expiration or earlier termination of the
Lease Term, or (iii) limit in any manner Landlord's right to regain possession
of the Premises through eviction or otherwise, or any other rights or remedies
of Landlord, including, without limitation, the right to collect damages. No
acceptance by Landlord of payments from Tenant after the expiration or earlier
termination of the Lease Term shall be deemed to be other than on account of the
amount to be paid by Tenant in accordance with the terms of this Article. The
terms of this Article shall survive the expiration or earlier termination of the
Lease Term.

                                   ARTICLE 24
                              COVENANTS OF LANDLORD

      24.1 Landlord covenants that if Tenant shall observe and perform timely
all of the terms, covenants, conditions, provisions and agreements herein
contained on the part of Tenant to be observed and performed, then subject to
the provisions of this Lease Tenant shall during the Lease Term peaceably and
quietly occupy and enjoy the Premises without hindrance by Landlord or any party
claiming through or under Landlord.

                                       38
<PAGE>

      24.2 Landlord reserves the following rights: (a) to change the street
address and name of the Building; (b) make alterations or changes to, and to
change the location or elements of, the common areas of the Building and the
Land; (c) to erect, use and maintain pipes and conduits in and through the
Premises; (d) to grant to anyone the exclusive right to conduct any particular
business in the Building not inconsistent with Tenant's permitted use of the
Premises; (e) to resubdivide the Land and/or combine the Land with other lands;
(f) if Tenant vacates the Premises prior to the expiration of the Lease Term, to
make alterations to or otherwise prepare the Premises for reoccupancy without
relieving Tenant of its obligations to pay all Base Rent, additional rent and
other sums due under this Lease through the expiration of the Lease Term; and
(g) if any excavation or other substructure work shall be made or authorized to
be made upon land adjacent to the Building or the Land, to enter the Premises
for the purpose of doing such work as is required to preserve the walls of the
Building and to preserve the Land from injury or damage and to support such
walls and the Land. Landlord may exercise any or all of the foregoing rights
without being deemed to be guilty of an eviction, actual or constructive, or a
disturbance of Tenant's business or use or occupancy of the Premises. With
respect to pipes and conduits described in Subsection (c) above and erected by
Landlord following the Lease Commencement Date, Landlord shall use its
commercially reasonable efforts to erect the same in such locations as to
minimize disruption to Tenant's business operations in the Premises. With
respect to any excavation or other substructural work described in Subsection
(g) above and performed by Landlord, Landlord agrees to use its commercially
reasonable efforts to perform the same in a manner as to minimize disruption to
Tenant's business operations in the Premises.

                                   ARTICLE 25
                                    [OMITTED]

                                   ARTICLE 26
                               GENERAL PROVISIONS

      26.1 Tenant acknowledges that neither Landlord nor any broker, agent or
employee of Landlord has made any representations or promises with respect to
the Premises or the Building except as herein expressly set forth, and no right,
privilege, easement or license is being acquired by Tenant except as herein
expressly set forth. Landlord acknowledges that neither Tenant nor any broker,
agent or employee of Tenant has made any representations or promises with
respect to the Premises or the Building except as herein expressly set forth.

      26.2 Nothing contained in this Lease shall be construed as creating a
partnership, joint venture or any other relationship between Landlord and Tenant
other than that of landlord and tenant.

      26.3 Landlord and Tenant each represents and warrants to the other that in
connection with this Lease neither has employed or dealt with any broker, agent
or finder. Landlord shall indemnify and hold Tenant harmless from and against
any and all claims for a commission, fee or other

                                       39
<PAGE>

compensation by any person or entity who shall claim to have dealt with Landlord
in connection with this Lease and for any and all costs incurred by Tenant in
connection with such claims, including, without limitation, attorneys' fees.
Tenant shall indemnify and hold Landlord harmless from and against any and all
claims for a commission, fee or other compensation by any person or entity who
shall claim to have dealt with Tenant in connection with this Lease and for any
and all costs incurred by Landlord in connection with such claims, including,
without limitation, attorneys' fees. The provisions of this Section 26.3 shall
survive the expiration or earlier termination of the Lease Term.

      26.4 Within fifteen (15) days after receipt of Landlord's request, Tenant,
each assignee of Tenant's interest in the Lease, and each subtenant or other
occupant of all or any portion of the Premises shall execute, acknowledge and
deliver to Landlord and/or any other person or entity designated by Landlord, an
estoppel certificate: (a) attaching a copy of this Lease and certifying that
this Lease is unmodified and in full force and effect (or if there have been
modifications, that this Lease is in full force and effect as modified and
attaching thereto and stating the modifications); (b) stating the dates to which
the rent and any other charges have been paid; (c) stating whether or not
Landlord is in default in the performance of any obligation of Landlord
contained in this Lease, and if so, specifying the nature of such default; (d)
stating the address to which notices are to be sent to Tenant; (e) stating
whether there exists any defenses or offsets which Tenant may have to preclude
enforcement of the terms of the Lease by Landlord and, if so, specifying the
nature of such defenses and offsets; (f) confirming that this Lease is subject
and subordinate to all Mortgages; (g) stating the amount of any security deposit
delivered by Tenant to Landlord; and (h) certifying to such other matters as
Landlord may request. Any such statement may be relied upon by any owner of the
Building and/or the Land, any prospective purchaser of the Building and/or the
Land, any holder or prospective holder of a Mortgage, or any other person or
entity designated by Landlord. Tenant acknowledges that time is of the essence
to the delivery of such statements and that Tenant's delay, failure or refusal
to deliver such statements shall be an Event of Default under this Lease and may
cause substantial damages resulting from, for example, delays in obtaining
financing secured by the Building. Upon request, Tenant agrees to furnish
Landlord with current financial statements for Tenant and for Guarantor.

      26.5 LANDLORD AND TENANT WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING,
CLAIM OR COUNTERCLAIM BROUGHT IN CONNECTION WITH ANY MATTER ARISING OUT OF OR IN
ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT
HEREUNDER, TENANT'S USE OR OCCUPANCY OF THE PREMISES OR ANY CLAIM OF INJURY OR
DAMAGE. TENANT CONSENTS TO SERVICE OF PROCESS AND ANY PLEADING RELATING TO ANY
SUCH ACTION UPON TENANTS REGISTERED AGENT IN THE DISTRICT OF COLUMBIA. AS OF THE
DATE OF THIS LEASE, THE NAME AND ADDRESS OF TENANT'S REGISTERED AGENT IN THE
DISTRICT OF COLUMBIA IS: CT CORPORATION SYSTEM. TENANT SHALL NOTIFY LANDLORD OF
ANY CHANGE IN ITS REGISTERED AGENT OR THE ADDRESS OF ITS REGISTERED AGENT IN THE
DISTRICT OF COLUMBIA PRIOR TO THE EFFECTIVE DATE OF ANY SUCH CHANGE. LANDLORD
AND TENANT WAIVE ANY OBJECTION TO THE VENUE OF ANY ACTION FILED IN ANY COURT
SITUATED IN THE

                                       40
<PAGE>

JURISDICTION IN WHICH THE BUILDING IS LOCATED AND WAIVE ANY RIGHT UNDER THE
DOCTRINE OF FORUM NON CONVENIENS OR OTHERWISE, TO TRANSFER ANY SUCH ACTION FILED
IN ANY SUCH COURT TO ANY OTHER COURT.

      26.6 All notices, demands, approvals, consents, statements or other
communications (collectively, "Notices") given or required to be given by either
party to the other hereunder shall be in writing and shall be deemed duly given
when sent by (i) personal delivery; (ii) overnight courier service (provided a
receipt will be obtained); (iii) by certified mail, return receipt requested,
postage prepaid; or (iv) facsimile (provided that proof of complete transmission
of such facsimile is obtained); and sent to the following addresses: (i) if to
Landlord, at c/o Lawrence Ruben Company, Inc., 600 Madison Avenue, 20th Floor,
New York, New York 10022-1654, Attention Mr. Richard G. Ruben, Facsimile No.:
(212)319-5627, with a copy to Rudnick, Wolfe, Epstien & Zeidman, 1201 New York
Avenue, N.W., Penthouse, Washington, D.C. 20005, Attention Frederick L. Klein,
Esq., Facsimile No.: (202) 712-7222; or (y); (ii) if to Tenant, at the Tenant
Address for Notices, with a copy to Tenant at 1114 First Avenue, New York, New
York 10021, Facsimile No.: (212) 758-6027, and with a copy to Maloney &
Porcelli, 225 Broadway, New York, New York 10007, Facsimile No.: (212) 227-8795.
Any Notice delivered in accordance with the foregoing by personal delivery shall
be deemed received on the date sent if transmitted during normal business hours
or when delivery is attempted during normal business hours if rejected. Any
Notice delivered by overnight courier service in connection with the foregoing
shall be deemed received on the first business day following the date sent. Any
Notice delivered by certified mail in accordance with the foregoing shall be
deemed received on the third (3rd) business following the date mailed. Any
Notice delivered by facsimile in accordance with the foregoing shall be deemed
received on the date sent if transmitted during normal business hours, or on the
first business day following the date transmitted if transmitted other than
during normal business hours. Either party may change its address for the giving
of Notices by Notice given in accordance with this Section. If Landlord or the
holder of any Mortgage notifies Tenant that a copy of each Notice to Landlord
shall be sent to such holder at a specified address, then Tenant shall send (in
the manner specified in this Section and at the same time such Notice is sent to
Landlord) a copy of each such Notice to such holder, and no such Notice shall be
considered duly sent to Landlord unless such copy is so sent to such holder.

      26.7 Each provision of this Lease shall be valid and enforceable to the
fullest extent permitted by Law. If any provision of this Lease or the
application thereof to any person or circumstance shall to any extent be invalid
or unenforceable, then such provision shall be deemed to be replaced by the
valid and enforceable provision most substantively similar to such invalid or
unenforceable provision, and the remainder of this Lease and the application of
such provision to persons or circumstances other than those as to which it is
invalid or unenforceable shall not be affected thereby.

      26.8 Whenever the context of this Lease requires, the singular shall
include the plural, and the masculine, feminine and neuter gender shall include
the others.

                                       41
<PAGE>

      26.9 The provisions of this Lease shall be binding upon and inure to the
benefit of the parties and each of their respective representatives, successors
and assigns, subject to the provisions herein restricting Transfers (as defined
in Section 7.1 above).

      26.10 This Lease contains the entire agreement of the parties hereto with
respect to the subject matter hereof, and supersedes all prior agreements,
negotiations, letters of intent, proposals, representations, warranties,
understandings and discussions between the parties hereto with respect to the
subject matter hereof. All exhibits attached to this Lease are incorporated
herein by this reference. Any representation, inducement, warranty,
understanding or agreement that is not contained in this Lease shall be of no
force or effect. This Lease may be modified or changed in any manner only by an
instrument duly signed by both parties.

      26.11 This Lease shall be governed by and construed in accordance with the
Laws of the District of Columbia, without regard to the application of choice of
law principles.

      26.12 Article and section headings are used for convenience only and shall
not be considered when construing this Lease.

      26.13 The submission of an unsigned copy of this document to Tenant shall
not constitute an offer or option to lease the Premises. This Lease shall become
effective and binding only upon execution and delivery by both Landlord and
Tenant.

      26.14 Subject to the cure periods expressly stated in the Lease, time is
of the essence of each provision of this Lease.

      26.15 This Lease may be executed in multiple counterparts, each of which
shall be deemed an original and all of which together constitute one and the
same document. Faxed signatures shall have the same binding effect as original
signatures.

      26.16 Neither this Lease nor any memorandum, affidavit or other writing
with respect thereto shall be recorded by Tenant or by anyone acting through,
under or on behalf of Tenant, except, that upon the request of either party, the
parties agree to execute, in recordable form, a short-form memorandum of this
Lease, provided that such memorandum shall not contain any of the specific
rental terms set forth herein. Such memorandum may be recorded in the land
records of the District of Columbia, and the party desiring such recordation
shall pay all recordation costs, taxes and fees payable in connection therewith.

      26.17 The square footage figure for the Premises set forth in Section 1.1
hereof has been conclusively accepted and agreed upon by Landlord and Tenant. No
remeasurement of the Premises shall result in any modification of this Lease or
any rent payable hereunder.

      26.18 Except as otherwise provided in this Lease, any additional rent or
other sum owed by Tenant to Landlord, and any cost, expense, damage or liability
incurred by Landlord for which Tenant

                                       42
<PAGE>

is liable, shall be paid by Tenant no later than twenty (20) days after the date
Landlord notifies Tenant of the amount thereof. All amounts payable by Tenant to
Landlord pursuant to this Lease, other than Base Rent and a security deposit,
shall be considered "additional rent". The Base Rent and additional rent are
herein collectively referred to as "rent".

      26.19 Except as expressly provided to the contrary in this Lease, Tenant's
liabilities existing as of the expiration or earlier termination of the Lease
Term shall survive such expiration or earlier termination.

      26.20 If either Landlord or Tenant is in any way delayed or prevented from
performing any of its obligations under this Lease (other than Tenant's
obligation to make any monetary payment due hereunder) due to fire, other
casualty, act of God, governmental act or failure to act, strike, labor dispute,
inability to procure services or materials, or any other cause beyond such
party's reasonable control (whether similar or dissimilar to the foregoing
events) ("Force Majeure"), then the time for performance of such obligation
shall be excused for the period of such delay or prevention and extended for a
period equal to the period of such delay or prevention.

      26.21 The person executing and delivering this Lease on Tenant's behalf
warrants that such person is duly authorized to so act. Simultaneously with the
execution of this Lease, Tenant shall deliver to Landlord certified copies of
any corporate or other resolution or consent necessary to evidence the due
execution of this Lease on Tenant's behalf.

      26.22 Tenant shall not use the name of the Building for any purpose other
than the address of the business to be conducted by Tenant in the Premises, or
do or permit to be done anything in connection with Tenant's business or
advertising which, in the reasonable judgment of Landlord, may reflect
unfavorably on Landlord or the Building or confuse or mislead the public as to
any apparent connection or relationship between Landlord, the Building and
Tenant.

      26.23 There shall be no presumption that this Lease be construed more
strictly against the party who itself or through its agent prepared it, it being
agreed that all parties hereto have participated in the preparation of this
Lease and that each party was represented by legal counsel in connection with
the Lease or had the opportunity to consult legal counsel before execution of
this Lease.

      26.24 No custom or practice that may evolve between the parties in the
administration of the terms of this Lease shall be construed to waive Landlord's
right to insist on Tenant's strict performance of the terms of this Lease.

      26.25 Upon the expiration or earlier termination of the Lease Term, Tenant
shall deliver to Landlord all keys and security cards to the Premises and the
Building in its possessions or in the possession of its employees or anyone
claiming by or through Tenant, whether such keys were furnished by Landlord or
otherwise procured, and Tenant shall inform Landlord of the combination of each
lock, safe and vault, if any, in the Premises.

                                       43
<PAGE>

      26.26 This Lease shall be construed as though the covenants herein between
Landlord and Tenant are independent and not dependent, and Tenant hereby
expressly waives the benefit of any statute to the contrary. Tenant agrees that
if Landlord fails to perform its obligations set forth herein, Tenant shall not
be entitled to make any repairs or perform any acts hereunder at Landlord's
expense or to any setoff of rent or other amounts owing by Tenant hereunder
against Landlord; provided, however, that the foregoing shall in no way impair
the right of Tenant to commence a separate action against Landlord for any
violation by Landlord of the provisions hereof so long as notice is first given
to Landlord and any holder of a Mortgage of whose address Tenant has theretofore
been notified, and an opportunity is granted to Landlord and such holder to
correct such violations as provided above.

      26.27 Tenant and Landlord shall each keep this Lease, and the terms and
conditions hereof and of any dispute hereunder, strictly confidential and shall
not disclose same to any person or entity other than a "Permitted Person" (as
defined below) on a need-to-know basis. The term "Permitted Person" as used in
this Section shall mean the officers, directors, partners, members and other
principals of Tenant and Landlord, the employees of Tenant and Landlord who are
involved in lease administration, certified public accountants of Tenant and
Landlord, lenders and attorneys who have responsibilities related to this Lease,
or any person or entity to whom disclosure is required by applicable
governmental authority. Prior to disclosing same to any Permitted Person, the
disclosing party shall instruct such Permitted Person to abide by this
confidentiality provision.

      26.28 Tenant and the person executing and delivering this Lease on
Tenant's behalf each represent and warrant to Landlord that (i) such person is
duly authorized to so act; (ii) Tenant is a limited liability company duly
organized under the Laws of the Delaware; (iii) Tenant is qualified to do
business in the jurisdiction in which the Building is located; (iv) Tenant is in
good standing under the Laws of the state of its organization and the Laws of
the jurisdiction in which the Building is located; (v) Tenant has the power and
authority to enter into this Lease; and (vi) all action required to authorize
Tenant and such person to enter into this Lease has been duly taken. Landlord
and the person executing and delivering this Lease on Landlord's behalf each
represent and warrant to Tenant that (a) such person is duly authorized to so
act; (b) Landlord is a limited partnership organized under the Laws of the
District of Columbia; (c) Landlord is qualified to do business in the
jurisdiction in which the Building is located; (d) Landlord is in good standing
under the Laws of the state of its organization and the Laws of the jurisdiction
in which the Building is located; (e) Landlord has the power and authority to
enter into this Lease; and (f) all action required to authorize Landlord and
such person to enter into this Lease has been duly taken.

      26.29 Concurrently with its execution of this Lease, Tenant shall cause
Guarantor to execute and deliver to Landlord a guaranty of Tenant's obligations
under this Lease in the form of Exhibit F attached hereto.

                                       44
<PAGE>

                                   ARTICLE 27
                                OPTIONS TO EXTEND

      27.1 Option Right. Subject to the terms and conditions set forth in this
Section 27.1, Tenant shall have two (2) options to extend the Lease Term (the
"Options to Extend") for a period of sixty (60) months each (the "Option
Terms"), which options shall, if at all, be exercisable by Tenant's delivery of
notice to Landlord in accordance with Section 27.3 below. Notwithstanding
anything to the contrary contained herein, an Option to Extend shall be
exercisable by Tenant only if (x) Tenant has not subleased twenty percent (20%)
or more of the Premises prior to the commencement of the subject Option Term,
(y) Tenant is not in default under this Lease (which default remains uncured
after the expiration of any applicable grace or cure periods) at any time during
the period beginning on the date of delivery of such notice through the
commencement of the subject Option Term, and (z) this Lease is not terminated
prior to the commencement of the subject Option Term. The Options to Extend
shall be personal to the original named Tenant under this Lease, shall be
nontransferable and shall be exercisable by Tenant only with respect to the
entire Premises; provided, however, an assignee of Tenant's interest in this
Lease which is approved by Landlord pursuant to Article 7 and which operates
"white tablecloth" restaurants nationally may exercise an Option to Extend
provided it is then the Tenant under this Lease. Upon the proper exercise of an
Option to Extend, the then-current Lease Term shall be extended for the subject
Option Term. If Tenant fails to timely and properly exercise an Option to Extend
in accordance with this Section 27.1, such Option to Extend and all future
Options to Extend, if any, shall be of no further force or effect. During each
Option Term, all the terms, conditions, covenants and agreements set forth in
this Lease shall continue to apply and be binding upon Landlord and Tenant,
except that: (1) the Base Rent payable during the subject Option Term shall be
equal to the Option Rent (as defined below) for the same; (2) in no event shall
Tenant have the right to extend the Lease Term beyond the expiration of second
Option Term; and (3) no concessions provided to Tenant by Landlord with respect
to any portion of the Premises previously leased by Tenant shall apply to
Tenant's lease of the Premises during an Option Term.

      27.2 Option Rent. The Base Rent payable by Tenant for the Premises during
an Option Term (the "Option Rent") shall be equal to the greater of (A) the Base
Rent that would have been payable by Tenant under this Lease if the rent payable
hereunder had continued to increase using the same formula in effect immediately
prior to commencement of the subject Option Term, and (B) the product of (x)
ninety-five percent (95%) of the "Market Rental Rate" (as hereinafter defined),
multiplied by (y) the number of rentable square feet in the Premises. The term
"Market Rental Rate" as used herein shall mean the annual rate of rent,
including all escalations, at which tenants, as of the commencement of the
subject Option Term, are leasing non-sublease, non-encumbered retail space
comparable in size, location and quality (including quality of improvements) to
the then-current Premises, for a period equal to the subject Option Term
commencing on or about the commencement of the subject Option Term, which
comparable space is located in the Building and in "Comparable Office Buildings"
(as defined below). The Market Rental Rate may include, among other
then-prevailing components of rent, a fixed annual rent (such as Base Rent),
rental payments based on a share of Building real estate taxes, and periodic
increases in rent; provided that in calculating the

                                       45
<PAGE>

Market Rental Rate, the only concession offered such other tenants which shall
be taken into consideration shall be rental abatement concessions, other than
rent abatement given such tenants to allow time for the construction of
improvements in such comparable space. The term "Comparable Office Buildings" as
used in this Lease, shall mean multi-tenanted, multi-story, first-class office
buildings which (i) are comparable to the Building in terms of quality, level of
services, amenities, age and appearance; (ii) are located between Pennsylvania
Avenue and F Street, N.W., and between 6th Street and 14th Street, N.W., in
Washington, D.C.; and (iii) have law firms, accounting firms, other professional
services organizations and private corporations as their primary office tenants
and include first class "white tablecloth" restaurants as retail tenants.

      27.3 Exercise of Option. The right set forth in this Article 27 shall be
exercised by Tenant, if at all, by delivering notice to Landlord not more than
twenty-one (21) months nor less than eighteen (18) months prior to the last day
of the then-current Lease Term. After its receipt of such notice from Tenant,
Landlord shall deliver notice (the "Option Rent Notice") to Tenant not less than
sixteen (16) months prior to the last day of the then-current Lease Term,
setting forth the Option Rent which shall be payable during the subject Option
Term. If the subject Option Rent is to be determined in accordance with clause
(B) of Section 27.2 above and Tenant wishes to object to such determination,
Tenant shall, within ten (10) days after Tenant's receipt of the Option Rent
Notice, deliver to Landlord notice of its objection to the Option Rent as
determined by Landlord. If Tenant fails to timely deliver its notice of
objection to the Option Rent as determined by Landlord, the Option Rent for the
subject Option Term shall be as set forth in the Option Rent Notice delivered by
Landlord. In the event Tenant timely and properly objects to the Option Rent set
forth in the Option Rent Notice, Landlord and Tenant shall attempt to agree upon
the subject Option Rent using their good faith efforts. If Landlord and Tenant
fail to reach agreement by that date which occurs thirty (30) days following
Landlord's receipt of Tenant's notice of objection to the Option Rent set forth
in the Option Rent Notice (the "Tenant Outside Agreement Date"), then the
subject Option Rent shall be determined in accordance with the terms of Section
27.4 below. In the event Landlord fails to timely generate an Option Rent
Notice, then Tenant may commence such negotiations by providing the initial
notice, in which event Landlord shall have thirty (30) days ("Landlord's Review
Period") after its receipt of Tenant's notice of the subject Option Rent within
which to accept such Option Rent for the subject Option Term or to object
thereto in writing. In the event Landlord so objects or fails to respond to
Tenant within Landlord's Review Period, Landlord and Tenant shall attempt to
agree upon the subject Option Rent using their good faith efforts. If Landlord
and Tenant fail to reach agreement by that date which occurs fifteen (15) days
following Landlord's Review Period (the "Landlord Outside Agreement Date"), then
the subject Option Rent shall be determined in accordance with the terms of
Section 27.4 below.

      27.4 Determination of Option Rent. Landlord and Tenant shall each make a
separate determination of the subject Option Rent and deliver notice thereof to
the other within ten (10) business days after the Tenant Outside Agreement Date
or the Landlord Outside Agreement Date, as the case may be. In the event the
subject Option Rent submitted by Landlord is less than or equal to one hundred
five percent (105%) of the subject Option Rent submitted by Tenant, the subject
Option Rent shall be the average of the two such determinations. In all other
cases, such

                                       46
<PAGE>

determinations shall be submitted for final determination in accordance with
this Section 27.4 below. The failure of Tenant to make a determination and
submittal of the Option Rent within such ten (10) business day period shall
conclusively be deemed Tenant's approval of the subject Option Rent as
determined by Landlord.

            (A) Landlord and Tenant shall each appoint one real estate broker
from an established brokerage firm in Washington, D.C., with not less than ten
(10) licensed office leasing brokers, which appointed broker shall have been
active over the ten (10) year period ending on the date of such appointment in
the leasing of retail space in commercial properties in Washington, D.C.,
provided that such broker shall not have been engaged or employed by the party
appointing the same within such ten (10) year period (not including the
engagement or compensation of a broker by Landlord in such broker's capacity as
an outside tenant broker). The determination of the brokers shall be limited
solely to the selection of either Landlord's or Tenant's submitted Option Rent
for the subject Option Term, taking into account the requirements of this
Article 27. Each such broker shall be appointed within fifteen (15) days after
the subject Tenant Outside Agreement Date or the subject Landlord Outside
Agreement Date, as the case may be.

            (B) The two (2) brokers so appointed shall, within ten (10) days of
the date of the appointment of the last appointed broker, agree upon and appoint
a third broker who shall be qualified under the same criteria set forth above
for qualification of the initial two (2) brokers.

            (C) The three (3) brokers shall, within thirty (30) days of the
appointment of the third broker, reach a decision as to whether the parties
shall use Landlord's or Tenant's submitted subject Option Rent and shall notify
Landlord and Tenant thereof.

            (D) The decision of the majority of the three (3) brokers shall be
binding upon Landlord and Tenant.

            (E) If either Landlord or Tenant fails to appoint a broker within
fifteen (15) days after the subject Tenant Outside Agreement Date or the subject
Landlord Outside Agreement Date, as the case may be, the broker appointed by the
other shall reach a decision, notify Landlord and Tenant thereof, and such
broker's decision shall be binding upon Landlord and Tenant.

            (F) If the two (2) brokers timely appointed by Landlord and Tenant
fail to timely agree upon and appoint a third broker, then the appointment of
the third broker shall be submitted to arbitration under the provisions of the
American Arbitration Association, but subject to the instructions set forth in
this Article 27

            (G) Landlord and Tenant shall each pay the cost of the broker
appointed by it and one-half (1/2) of the cost of the third broker.

                                       47
<PAGE>

      27.5 If Tenant timely and properly exercises an Option to Extend in
accordance with this Article 27, Landlord and Tenant shall execute an amendment
to this Lease evidencing the extension of the then-current Lease Term promptly
following the determination of the subject Option Rent.

                                       48
<PAGE>

      IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease under
seal as of the day and year first above written.

WITNESS:                          LANDLORD:

                                  PENNSYLVANIA PLAZA ASSOCIATES,
                                  a District of Columbia limited partnership

                                  By: Yorkington Limited Partnership
                                      Its General Partner

                                      By: Lawrich Capital Corporation
                                          Its general partner

        /s/ ILLEGIBLE                     By: /s/ Harvey E. Rothenberg (SEAL)
-----------------------------                 -------------------------
                                              Print Name: Harvey E. Rothenberg
                                              Title: Vice - pres.

WITNESS:                          TENANT:

                                  M.O.C. OF MIAMI, L.L.C.,
                                  a Delaware Limited Liability Company

        /s/ ILLEGIBLE             By: /s/ James Dunn                    (SEAL)
-----------------------------         ----------------------------------
                                      Print Name: JAMES DUNN
                                      Title: PRESIDENT

<PAGE>

                                   EXHIBIT A

                                    PREMISES

                            TO BE ADDED BY LANDLORD

                             Exhibit A-1 -- Page 1

<PAGE>

                                   EXHIBIT B

                              OUTDOOR SEATING AREA

                    This Exhibit and Exhibit E are the same.

                              Exhibit B -- Page 1

<PAGE>

                               [GRAPHIC OMITTED]

EXHIBIT B AND EXHIBIT E

<PAGE>

                                   EXHIBIT C

                                     RULES

            1. Tenant shall not obstruct or encumber or use for any purpose
other than ingress and egress to and from the Premises any sidewalk, entrance,
alley, passage, court, elevator, vestibule, stairway, corridor, hall or other
part of the Building not exclusively occupied by Tenant. Landlord shall have the
right to control and operate the public portions of the Building and the
facilities furnished for common use of the tenants, in such manner as Landlord
deems best for the benefit of the tenants generally. Tenant shall not permit the
visit to the Premises of persons in such numbers or under such conditions as to
interfere with the use and enjoyment of the entrances, corridors, elevators and
other public portions or facilities of the Building by other tenants. Tenant
shall coordinate in advance with Landlord's property management department all
deliveries to the Building so that arrangements can be made to minimize such
interference.

            2. Tenant shall not attach, hang or use in connection with any
window or door of the Premises any drape, blind, shade or screen, without
Landlord's prior consent. All awnings, projections, curtains, blinds, shades,
screens and other fixtures shall be of a quality, type, design and color, and
attached in a manner, approved in writing by Landlord.

            3. Tenant shall not place any showcase, mat or other article in any
part of the exterior of the Premises.

            4. Tenant shall not use the water and wash closets and other
plumbing fixtures for any purpose other than those for which they were
constructed, and Tenant shall not place any debris, rubbish, rag or other
substance therein.

            5. Tenant shall not construct, maintain, use or operate within the
Premises any electrical device, wiring or apparatus in connection with a loud
speaker system or other sound system without Landlord's prior consent. Tenant
shall not construct, maintain, use or operate any such loud speaker or sound
system outside of the Premises.

            6. Tenant shall not bring any bicycle, vehicle, animal, bird or pet
of any kind into the Building. Tenant shall not cause or permit any unusual or
objectionable odor to be produced upon or permeate from the Premises.

            7. Tenant shall not make any unseemly or disturbing noise or disturb
or interfere with occupants of the Building.

            8. Tenant shall not place additional locks or bolts of any kind on
any of the doors or windows, and shall not make any change in any existing lock
or locking mechanism therein,

                              Exhibit C -- Page 1
<PAGE>

without Landlord's prior approval. Tenant shall keep doors leading to a corridor
or main hall closed during business hours except as such doors may be used for
ingress or egress. Tenant shall, upon the termination of its tenancy, restore to
Landlord all keys of stores, offices, storage and toilet rooms either furnished
to, or otherwise procured by, Tenant, and in the event of the loss of any keys
so furnished, Tenant shall pay the replacement cost thereof. Tenant's key system
shall be separate from that for the rest of the Building.

            9. Landlord reserves the right to exclude from the Building at all
times any person who does not properly identify himself to the Building
management or watchman on duty. Landlord may require all persons admitted to or
leaving the Building to register.

            10. Tenant shall not use the Premises for lodging or sleeping or for
any immoral or illegal purpose.

            11. Tenant shall not request Landlord's employees to perform any
work or do anything outside of such employees' regular duties without Landlord's
prior consent. Tenant's special requirements will be considered only upon
application to Landlord, and any such special requirements shall be billed to
Tenant in accordance with the schedule of charges maintained by Landlord from
time to time or as is agreed upon in writing in advance by Landlord and Tenant.
Tenant shall not employ any of Landlord's employees for any purpose whatsoever
without Landlord's prior consent.

            12. Canvassing, soliciting and peddling in or around the Building
are prohibited and Tenant shall cooperate to prevent the same.

            13. There shall not be used in any space, or in the common areas of
the Building, either by any tenant or by jobbers or others in the delivery or
receipt of merchandise, any hand trucks, except those equipped with rubber tires
and side guards. Tenant shall be responsible for any loss or damage resulting
from any deliveries made to and any pick-ups from Tenant.

            14. Blinds (whether installed by Landlord or Tenant) which are
visible from the exterior of the Building, shall be cleaned by Tenant at least
once a year, without notice from Landlord, at Tenant's own expense.

            15. Tenant shall comply with any and all requirements relating to
the segregation of glass, paper, metal or other materials in Tenant's refuse
implemented pursuant to the terms of the Solid Waste Management and
Multi-Material Recycling Act of 1988.

            16. Landlord may, upon request of Tenant, waive Tenant's compliance
with any of the rules, provided that (a) no waiver shall be effective unless
signed by Landlord, (b) no waiver shall relieve Tenant from the obligation to
comply with such rule in the future unless otherwise agreed in writing by
Landlord, (c) no waiver granted to any tenant shall relieve any other tenant
from the obligation of complying with these rules and regulations, and (d) no
waiver shall relieve Tenant from any liability for any loss or damage resulting
from Tenant's failure to comply with any rule.

                              Exhibit C -- Page 2
<PAGE>

                                    EXHIBIT D

                CERTIFICATE AFFIRMING THE LEASE COMMENCEMENT DATE

            This Certificate is being provided pursuant to Section 3.2 of that
certain Lease Agreement dated as of April 7, 1999 (the "Lease"), between
PENNSYLVANIA PLAZA ASSOCIATES ("Landlord") and M.O.C. OF MIAMI, L.L.C.
("Tenant"). The parties to the Lease desire to confirm the following:

            1. The Lease Commencement Date is ___________________, 1999.

            2. The initial term of the Lease shall expire on _______________,
2009.

            Attached to this Certificate is evidence of payment of premiums for
all insurance required pursuant to Section 14.3 of the Lease.

WITNESS:                              LANDLORD:

                                      PENNSYLVANIA PLAZA ASSOCIATES,
                                      a District of Columbia limited partnership

                                      By: Yorkington Limited Partnership
                                          Its General Partner

                                           By: Lawrich Capital Corporation
                                               Its general partner

______________________________                 By:_______________________ (SEAL)
                                               Print Name:______________________
                                               Title: __________________________

WITNESS:                              TENANT:

                                      M.O.C. OF MIAMI, L.L.C.,
                                      a Delaware limited liability company

______________________________        By:_______________________________________
                                      Print Name:_______________________________
                                      Title: ___________________________________

                              Exhibit D -- Page 1
<PAGE>

                                    EXHIBIT E

                                    SIGNAGE

                    This Exhibit and Exhibit B are the same.

                               Exhibit E - Page 1
<PAGE>

                                   EXHIBIT F

                               GUARANTY OF LEASE

      THIS GUARANTY OF LEASE (this "Guaranty") is made as of April 7, 1999, by
THE NEW YORK RESTAURANT GROUP, INC., a Delaware corporation ("Guarantor"),
having an address at 1114 First Avenue, New York, New York 10021, to
PENNSYLVANIA PLAZA ASSOCIATES ("Landlord"), having an address at 600 Madison
Avenue, 20th Floor, New York, New York 10022.

      WHEREAS, Landlord has leased to M.O.C. OF MIAMI, L.L.C., a Delaware
limited liability company ("Tenant"), certain space (the "Premises") located in
the building known as Pennsylvania Plaza, which is located at 601 Pennsylvania
Avenue, N.W., North Building, Washington, D.C. 20004, pursuant to that certain
Lease Agreement by and between Landlord and Tenant dated as of April 7, 1999
(the "Lease");

      WHEREAS, Guarantor is materially benefitted by the Lease, and Guarantor's
executing this Guaranty is a material inducement to Landlord to enter into the
Lease.

      NOW THEREFORE, in consideration of the premises, and of other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Guarantor agrees with Landlord as follows:

      I. Guarantor unconditionally and irrevocably guarantees that all sums
stated in the Lease to be payable by Tenant for the period beginning on the
Lease Commencement Date (as defined in the Lease) and ending on the last day of
the twenty-fourth (24th) full calendar month following the date on which Tenant
has opened for business at the Premises in accordance with the requirements of
Section 6.1 of the Lease (the "Guaranty Period"), shall be promptly paid in full
when due in accordance with the Lease and that Tenant shall perform and observe
its covenants thereunder. During the Guaranty Period, if any such sum or
covenant is not timely paid, performed or observed, then Guarantor shall,
promptly after notice thereof and prior to the expiration of any applicable
grace period specified in the Lease, pay the same regardless of (a) any defense
or right of offset or counterclaim which Tenant or Guarantor may have or assert
against Landlord, (b) whether Landlord shall have taken any steps to enforce any
rights against Tenant or any other person, (c) termination of the Lease as a
result of Tenant's default, or (d) any other condition or contingency. Guarantor
shall also pay all expenses of collecting such sum or any part thereof or of
otherwise enforcing this Guaranty, including without limitation reasonable
attorneys' fees. This Guaranty is irrevocable, unconditional and absolute.

      2. Guarantor's obligations and covenants under this Guaranty shall in no
way be affected or impaired by reason of the happening from time to time of any
of the following, whether or not Guarantor has been notified thereof or
consented thereto: (i) Landlord's waiver of the performance

                              Exhibit F -- Page 1

<PAGE>

or observance by Tenant, Guarantor or any other party of any covenant or
condition contained in the Lease or this Guaranty; (ii) any extension, in whole
or in part, of the time for payment by Tenant or Guarantor of any sums owing or
payable under the Lease or this Guaranty, or of any other sums or obligations
under or arising out of or on account of the Lease or this Guaranty, or the
renewal of the Lease or this Guaranty; (iii) any assignment of the Lease or
subletting of the Premises or any part thereof; (iv) any modification or
amendment (whether material or otherwise) of any of the obligations of Tenant or
Guarantor under the Lease or this Guaranty; (v) the doing or the omission of any
act referred to in the Lease or this Guaranty (including the giving of any
consent referred to in the Lease or this Guaranty); (vi) Landlord's failure or
delay to exercise any right or remedy available to Landlord or any action on the
part of Landlord granting indulgence or extension in any form whatsoever; (vii)
the voluntary or involuntary liquidation, dissolution, sale of any or all of the
assets, marshaling of assets and liabilities, receivership, conservatorship,
insolvency, bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition or readjustment of, or other similar proceeding
affecting, Tenant or Guarantor or any of Tenant's or Guarantor's assets; or
(viii) the release of Tenant or Guarantor from the performance or observation of
any covenant or condition contained in the Lease or this Guaranty by operation
of law.

      3. To the extent not prohibited by law, Guarantor hereby expressly waives
(a) any right Guarantor may now or hereafter have to any hearing prior to the
attachment of any real or personal property to satisfy Guarantor's obligations
hereunder, and (b) the benefits of any present or future constitution, statute
or rule of law which exempts property from liability for debt. Guarantor
expressly waives any right Guarantor may now or hereafter have against Tenant
(and/or any other guarantor of Tenant's obligations under the Lease) with
respect to this Guaranty (including, without limitation, any right of
subrogation, reimbursement, exoneration, contribution, indemnification or
similar right, and any right to participate in any claim, right or remedy of
Landlord against Tenant or any security which Landlord now or hereafter has with
respect to the Lease), whether such right arises under an express or implied
contract, by operation of law, or otherwise. Guarantor shall be deemed not to be
a "creditor" (as defined in Section 101 of the Bankruptcy Code (as defined in
the Lease)) of Tenant by reason of the existence of this Guaranty in the event
that Tenant becomes a debtor in any proceeding under the Bankruptcy Code.

      4. If the Lease is rejected or disaffirmed by Tenant or Tenant's trustee
in bankruptcy pursuant to bankruptcy law or any other law affecting creditors'
rights, then Guarantor shall, and does hereby (without the necessity of any
further agreement or act) assume all obligations and liabilities of Tenant under
the Lease during the Guaranty Period to the same extent as if (a) Guarantor were
originally named Tenant under the Lease, and (b) there had been no such
rejection or disaffirmance. Guarantor shall upon Landlord's request promptly
confirm in writing such assumption.

      5. Notice of acceptance of this Guaranty and notice of any obligations or
liabilities contracted or incurred by Tenant are hereby waived by Guarantor.
Guarantor hereby waives presentment, notice of dishonor, protest and notice of
non-payment or non-performance.

                               Exhibit F -- Page 2

<PAGE>

      6. This Guaranty shall be construed in accordance with the laws of the
jurisdiction in which the Premises are located. Guarantor consents to personal
jurisdiction in any court in the District of Columbia and waives any objection
to the venue of any action filed in any such court.

      7. This Guaranty may not be modified or amended except by a written
agreement duly executed by Guarantor and Landlord.

      8. Guarantor's liability shall be primary and joint and several with that
of Tenant. Landlord may proceed against Guarantor under this Guaranty without
initiating or exhausting any remedy against Tenant, and may proceed against
Tenant and Guarantor separately or concurrently. If more than one natural person
and/or entity shall constitute Guarantor, then the liability of each such person
and/or entity shall be joint and several.

      9. Within fifteen (15) days after Landlord's written request, Guarantor
shall execute and deliver to Landlord a written statement certifying any matter
concerning this Guaranty or the Lease as Landlord may request.

      10. Any notice which Landlord may elect to send shall be binding upon
Guarantor if mailed to Guarantor at the address set forth above or Guarantor's
last address known to Landlord, by United States certified or registered mail,
return receipt requested.

      11. This Guaranty shall be binding upon, and inure to the benefit of, the
parties hereto and their respective heirs, personal representatives, successors
and assigns.

      12. Notwithstanding anything to the contrary contained herein, provided
that as of the last day of the Guaranty Period (i) no Event of Default (as
defined in the Lease) remains outstanding and uncured, and (ii) no event exists,
which event with notice and/or the passage of time, would constitute an Event of
Default if not cured within the applicable cure period, if any, this Guaranty
shall terminate automatically on the first calendar day following the last day
of the Guaranty Period. Notwithstanding the foregoing, in the event that either
of the conditions specified in the immediately preceding sentence are not
satisfied on the last day of the Guaranty Period, this Guaranty shall remain in
full force and effect until Landlord has collected from Guarantor all sums that
are due and payable pursuant to Paragraph 1 of this Guaranty, whereupon this
Guaranty shall terminate.

                               Exhibit F -- Page 3

<PAGE>

      IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed
under seal as of the date first above written.

WITNESS:                                GUARANTOR:

                                        THE NEW YORK RESTAURANT GROUP, INC., a
                                        Delaware corporation

        /s/ ILLEGIBLE                   By: /s/ James Dunn                (SEAL)
-----------------------------------         ------------------------------
                                            Print Name: JAMES DUNN
                                            Title: PRESIDENT

                               Exhibit F -- Page 4

<PAGE>

                          PENNSYLVANIA PLAZA ASSOCIATES
                        c/o Lawrence Ruben Company, Inc.
                               600 Madison Avenue
                            New York, New York 10022
                               Tel: (212) 980-0910
                               Fax: (212) 319-5627

                                  April 7, 1999

The New York Restaurant Group, Inc.
1114 First Avenue
New York, NY 10021
Attn: Jim Dunn

      Re:  Lease at 601 Pennsylvania Avenue, N.W., North Building,
           Washington, D.C.

Dear Jim:

      In connection with the execution and delivery of that certain Lease
Agreement (the "Lease") for restaurant space at 601 Pennsylvania Avenue, N.W.,
North Building, Pennsylvania Plaza Associates ("Landlord") and M.O.C. of Miami,
LLC ("Tenant") have agreed that Tenant shall have the right to terminate the
Lease by written notice to Landlord not later than 5:00 p.m. on April 16, 1999
in the event Tenant reasonably determines that the costs associated with
repairing and/or replacing the electrical, mechanical, or HVAC systems in the
demised premises will exceed $75,000 in the aggregate.

      If Tenant desires to exercise the aforesaid right of termination, it shall
provide to Landlord, together with its termination notice, copies of any and all
reports and studies commissioned by Tenant in connection therewith. Landlord
shall have the right, at its sole option and notwithstanding anything set forth
above, to reinstate the Lease in full by written notice to Tenant within five
days after Landlord's receipt of Tenant's termination notice, and in such event,
Landlord shall either (i) perform the work necessary to repair and/or replace
the aforesaid systems (with the costs to be paid by Tenant, up to the first
$75,000, and the remaining costs to be paid by Landlord), or (ii) pay the costs
associated with repairing and/or replacing the aforesaid systems, but only to
the extent such costs actually exceed $75,000 in the aggregate.

<PAGE>

      Please countersign this letter to evidence your agreement with the
foregoing.

                                        Sincerely,

                                        PENNSYLVANIA PLAZA ASSOCIATES

                                        By: /s/ Harvey E. Rothenberg
                                            ------------------------------

AGREED:

M.O.C. OF MIAMI, L.L.C.

By: /s/ James Dunn
    -----------------------------

                                      -2-

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