Document:

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                                                                   EXHIBIT 10.11

November 3, 1999

Mr. Daniel Lee
2919 Reiger Court
Las Vegas, NV 89117

Dear Dan:

Further to our discussion, we are thrilled to have you join the team! We promise
you and Susie will also have a lot of fun. The terms of our offer are as
follows:

Title:              Chief Financial Officer

Reporting to:       CEO

Base Salary:        An annual salary of $180,000 to be paid bi-weekly. This
                    position is classified as exempt and, as such, is not
                    eligible for overtime pay.

Performance Bonus:  An annual bonus of up to $50,000 based on the achievement of
                    mutually agreed upon objectives for each calendar year. Such
                    bonus to be paid quarterly after your first full quarter of
                    employment and paid in the last pay period of the month
                    following. This bonus will be guaranteed for the first year.

Reviews:            Performance and reviews will "normally" or "generally" be
                    held on a semi-annual basis, but they may be conducted more
                    frequently or less frequently, depending upon the business
                    needs.

Stock Options:      Options issued under the Company's Stock Option Plan to
                    acquire 600,000 common shares at a price to be set by the
                    board. These shares will vest over 48 months in accordance
                    with the vesting schedule in your Stock Option Letter
                    Agreement. This will be provided in a separate document.

Vacation:           4 weeks with one extra day added after each year worked.
<PAGE>

Benefits Plan:      You will be eligible for the Company's competitive benefits
                    plan immediately. This plan will include medical, dental,
                    vision, and life insurance. The Company will pay all
                    premiums, including cost of one dependent (additional
                    dependents are covered at 50%). Short-term disability and
                    long-term disability will be a 100% employee paid
                    contributory benefit. These benefits will be described to
                    you at the time you begin your employment. However, if you
                    have any questions about your benefits prior to that time,
                    we will be happy to answer them.

401(k) Plan:        The Company provides a 401(k) plan with company matching.
                    The details of the plan will be provided in a separate
                    document.

At Will:            You should also understand that HomeGrocer.com employs its
                    employees on an at will basis. This means that your
                    employment is voluntary and for no set period. If you accept
                    employment with the Company, you will be free to resign at
                    any time, without cause. Likewise, the company will be free
                    to terminate your employment at any time, with or without
                    cause. If the Company terminates your employment during your
                    first year, your option vesting will be prorated for the
                    number of months you were employed.

Expenses:           The Company will reimburse any reasonable expenses incurred
                    by the employee in the course of carrying out business for
                    the Company.

Moving:             You agree to relocate to the Seattle region within six
                    months. The Company will reimburse all reasonable expenses
                    incurred by you and your family relating to the move to the
                    Seattle region including, but not limited to, temporary
                    accommodation, movers, realty fees, transfer taxes and two
                    house hunting trips. To assist with moving the Company will
                    allow you to have your entire first year's bonus paid up
                    front. If you leave the employment of the Company before
                    your first year is served you would have to repay the
                    unearned portion.

Please sign this letter and return one copy to me. Welcome aboard!

Yours very truly,
HomeGrocer.com, Inc.

/s/: Mary Alice Taylor
     -----------------
Mary Alice Taylor
Chairman and CEO

                                      -2-
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By accepting this offer you agree to: this is a full time position and you will
make every effort necessary to perform adequately the duties that are assigned
to you. As a pre-condition of this offer you agree to execute the Company's
"Employee Non-Disclosure and Invention Agreement."

Agreed to and accepted:

/s/: Daniel Lee
     ----------
Daniel Lee

                                      -3-<PAGE>

                                                                   EXHIBIT 10.12

August 31, 1999

Mr. David Pace
5432 Edgehollow Place
Dallas, TX 75287

Dear David:

Further to our discussion this evening, we are thrilled to have you join the
team! We promise you and Patti will also have a lot of fun. The terms of our
offer are as follows:

Title:              Vice-President, Human Resources

Reporting to:       CEO

Base Salary:        An annual salary of $175,000 to be paid bi-weekly. This
                    position is classified as exempt and, as such is not
                    eligible for overtime pay.

Performance Bonus:  An annual bonus of up to $50,000 based on the achievement of
                    mutually agreed upon objectives for each calendar year. Such
                    bonus to be paid quarterly after your first full quarter of
                    employment and paid in the last pay period of the month
                    following. This bonus is guaranteed for the first year.

Reviews:            Performance and reviews will "normally' or "generally" be
                    held on a semi-annual basis and salary reviews on an annual
                    basis, but they may be conducted more frequently or less
                    frequently, depending upon the business needs.

Stock Options:      Options issued under the Company's Stock Option Plan to
                    acquire 200,000 common shares at the fair market price,
                    currently $0.90 per share, on the day the board approves
                    this option grant. These shares will vest over 48 months in
                    accordance with the vesting schedule in you Stock Option
                    Letter Agreement. This will be provided in a separate
                    document.

Vacation:           4 weeks with one extra day added after each year worked.
<PAGE>

Benefits Plan:      You will be eligible for the Company's competitive benefits
                    plan the first of the month following 30 days employment.
                    This plan will include medical, dental, vision, and life
                    insurance. The Company will pay all premiums, including cost
                    of one dependent (additional dependents covered at 50%).
                    Short-term disability and long-term disability will be a
                    100% employee paid contributory benefit. These benefits will
                    be described to you at the time that you begin your
                    employment. However, if you have any questions about your
                    benefits prior to that time, we will be happy to answer
                    them.

401(k) Plan:        The Company provides a 401(k) plan with company matching.
                    The details of the plan will be provided in a separate
                    document.

At Will:            You should also understand that HomeGrocer.com employs its
                    employees on an at will basis. This means that your
                    employment is voluntary and for no set period. If you accept
                    employment with the Company, you will be free to resign at
                    any time, without cause. Likewise, the company will be free
                    to terminate your employment at any time, with or without
                    cause. Notwithstanding the above, the Company guarantees an
                    additional 12 months if terminated at any point during the
                    first year of employment.

Expenses:           The Company will reimburse any reasonable expenses incurred
                    by the employee in the course of carrying out business for
                    the Company.

Moving:             You agree to relocate to the Seattle region within six
                    months. The Company will reimburse all reasonable expenses
                    incurred by you and your family relating to the move to the
                    Seattle region including, but not limited to, temporary
                    accommodation, movers, realty fees, transfer taxes and two
                    house hunting trips. To assist with moving the Company will
                    allow you to have your entire first year's bonus paid up
                    front. If you leave the employment of the Company before
                    your first year is served you would have to repay the
                    unearned portion.

We would like you to start as soon as possible but no later than September 21st.
Please sign this letter and return one copy to me. Welcome aboard!

                                      -2-
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Yours very truly,
HomeGrocer.com, Inc.

/s/: Terry Drayton
     --------------
Terry Drayton
Co-Founder & President

By accepting this offer you agree to: this is a full time position and you will
make every effort necessary to perform adequately the duties that are assigned
to you. As a pre-condition of this offer you agree to execute the Company's
"Employee Non-Disclosure and Invention Agreement."

Agreed to and accepted:

/s/: David Pace
     ----------
David Pace

                                      -3-

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