Common use of Block Clause in Contracts

Block. o During the term of this Agreement, FV will purchase an annually decreasing share of the total production of the vineyard. From the 2005 harvest, FV will purchase approximately: 65% of the tons of the foregoing varieties (expected to total 614 tons); from the 2006 harvest, 58% (expected to total 587 tons); from the 2007 harvest, 43% (expected to total 553 tons); from the 2008 harvest, 24% (expected to total 273 tons); from the 2009 harvest, 15% (expected to total 176 tons). Prior to 15 February each year during the term of this Agreement, TW will provide FV its reasonable estimate of the vineyard’s total yield in the upcoming harvest, by block. Then, the parties will agree on the tonnage to be made available to FV. TW and FV will then agree on the blocks to be designated as the source of grapes for TW during the upcoming harvest, on or before 1 March of each year during the term of this Agreement. FV may notify TW of the blocks of the vineyard from which it does not wish to receive grapes, provided that the blocks so identified do not account for more than 15% of the total, estimated tonnage yield of the vineyard. TW will then designate, from the remaining blocks, those from which the grapes sold hereunder will be obtained. Notwithstanding the reasonable, professional, good-faith estimates of TW hereunder, it is understood and agreed by FV that the actual, ultimate yield is based on the vagaries of viticulture, weather, and other matters beyond the control of the parties, so the final tonnage resulting from the designated blocks may be more, or fewer, than is estimated by TW. If, for any reason, TW has grapes in excess of its requirements derived from the blocks that are not designated for FV, TW may offer such grapes to FV on the same terms and conditions as are set forth herein, and vice versa. Notwithstanding the foregoing, in the event that FV accepts grapes from any of the excluded blocks, the price therefor shall be reduced by 10%, and the provision in paragraph 4, below, that prices shall not drop below the base price, shall not apply with respect to any such purchases by FV. Initials / Contract Number: TW / FV

Block. o During the term of this Agreement, FV will purchase an annually decreasing share of the total production of the vineyard. From the 2005 harvest, FV will purchase approximately: 65% of the tons of the foregoing varieties (expected to total 614 tons); from the 2006 harvest, 58% (expected to total 587 tons); from the 2007 harvest, 43% (expected to total 553 tons); from the 2008 harvest, 24% (expected to total 273 tons); from the 2009 harvest, 15% (expected to total 176 tons). Prior to 15 February each year during the term of this Agreement, TW Franciscan Vineyards, Inc. (“FV”) will provide FV Triple Wines LLC (“TW”) its reasonable estimate of the vineyard’s total yield in the upcoming harvest, by block. Then, the parties will agree on the tonnage to be made available to TW, recognizing always that FV’s requirements for grapes from the vineyard are paramount. TW and FV will then agree on the blocks to be designated as the source of grapes for TW during the upcoming harvest, on or before 1 March of each year during the term of this Agreement. FV TW may notify TW FV of the blocks of the vineyard from which it does not wish to receive grapes, provided that the blocks so identified do not account for more than 1525% of the total, estimated tonnage yield of the vineyard. TW FV will then designate, from the remaining blocks, those from which the grapes sold hereunder will be obtained. Notwithstanding the reasonable, professional, good-faith estimates of TW FV hereunder, it is understood and agreed by FV TW that the actual, ultimate yield is based on the vagaries of viticulture, weather, and other matters beyond the control of the parties, so the final tonnage resulting from the designated blocks may be more, or fewer, than is estimated by TWFV. If, for any reason, TW FV has grapes in excess of its requirements derived from the blocks that are not designated for FVTW, TW FV may offer such grapes to FV TW on the same terms and conditions as are set forth herein, and vice versa. Notwithstanding the foregoing, in In the event that FV accepts grapes from any the parties agree that TW shall purchase more than 50% of the excluded blockstons of grapes estimated to be produced in any year, the price therefor percentage of excludable blocks hereunder shall be reduced by 10to 15%, and the provision in paragraph 4, below, that prices shall not drop below the base price, shall not apply with respect to any such purchases by FV. Initials / Contract Number: TW / FV.

Block. o ¨ During the term of this Agreement, FV will purchase an annually decreasing share of the total production of the vineyard. From the 2005 harvest, FV will purchase approximately: 65% of the tons of the foregoing varieties (expected to total 614 tons); from the 2006 harvest, 58% (expected to total 587 tons); from the 2007 harvest, 43% (expected to total 553 tons); from the 2008 harvest, 24% (expected to total 273 tons); from the 2009 harvest, 15% (expected to total 176 tons). Prior to 15 February each year during the term of this Agreement, TW will provide FV its reasonable estimate of the vineyard’s total yield in the upcoming harvest, by block. Then, the parties will agree on the tonnage to be made available to FV. TW and FV will then agree on the blocks to be designated as the source of grapes for TW during the upcoming harvest, on or before 1 March of each year during the term of this Agreement. FV may notify TW of the blocks of the vineyard from which it does not wish to receive grapes, provided that the blocks so identified do not account for more than 15% of the total, estimated tonnage yield of the vineyard. TW will then designate, from the remaining blocks, those from which the grapes sold hereunder will be obtained. Notwithstanding the reasonable, professional, good-faith estimates of TW hereunder, it is understood and agreed by FV that the actual, ultimate yield is based on the vagaries of viticulture, weather, and other matters beyond the control of the parties, so the final tonnage resulting from the designated blocks may be more, or fewer, than is estimated by TW. If, for any reason, TW has grapes in excess of its requirements derived from the blocks that are not designated for FV, TW may offer such grapes to FV on the same terms and conditions as are set forth herein, and vice versa. Notwithstanding the foregoing, in the event that FV accepts grapes from any of the excluded blocks, the price therefor shall be reduced by 10%, and the provision in paragraph 4, below, that prices shall not drop below the base price, shall not apply with respect to any such purchases by FV. Initials / Contract Number: TW / FV

Block. o During the term of this Agreement, FV will purchase an annually decreasing share of the total production of the vineyard. From the 2005 harvest, FV will purchase approximately: 65% of the tons of the foregoing varieties (expected to total 614 tons); from the 2006 harvest, 58% (expected to total 587 tons); from the 2007 harvest, 43% (expected to total 553 tons); from the 2008 harvest, 24% (expected to total 273 tons); from the 2009 harvest, 15% (expected to total 176 tons). Prior to 15 February each year during the term of this Agreement, TW Franciscan Vineyards, Inc. (“FV”) will provide FV Triple Wines LLC (“TW”) its reasonable estimate of the vineyard’s total yield in the upcoming harvest, by block. Then, the parties will agree on the tonnage to be made available to TW, recognizing that the following priorities for grapes from the vineyard shall be observed: (a) First, FV shall have priority over TW for up to 125% of FV’s requirements for grapes for Estancia’s reserve Pinot Noir program, then (b) TW shall have priority of FV for up to 125% of TW’s requirements for grapes for its Chalone Santa Lucia Highlands appelated Pinot Noir program, and, finally (c) FV shall have priority over TW for all remaining grapes. TW and FV will then agree on the blocks to be designated as the source of grapes for TW during the upcoming harvest, on or before 1 March of each year during the term of this Agreement. FV TW may notify TW FV of the blocks of the vineyard from which it does not wish to receive grapes, provided that the blocks so identified do not account for more than 1525% of the total, estimated tonnage yield of the vineyard. TW FV will then designate, from the remaining blocks, those from which the grapes sold hereunder will be obtained. Notwithstanding the reasonable, professional, good-faith estimates of TW FV hereunder, it is understood and agreed by FV TW that the actual, ultimate yield is based on the vagaries of viticulture, weather, and other matters beyond the control of the parties, so the final tonnage resulting from the designated blocks may be more, or fewer, than is estimated by TWFV. If, for any reason, TW FV has grapes in excess of its requirements derived from the blocks that are not designated for FVTW, TW FV may offer such grapes to FV TW on the same terms and conditions as are set forth herein, and vice versa. Notwithstanding the foregoing, in In the event that FV accepts grapes from any the parties agree that TW shall purchase more than 50% of the excluded blockstons of grapes estimated to be produced in any year, the price therefor percentage of excludable blocks hereunder shall be reduced by 10to 15%, and the provision in paragraph 4, below, that prices shall not drop below the base price, shall not apply with respect to any such purchases by FV. Initials / Contract Number: TW FV / FVTW