AGREEMENT

Between

C. MONDAVI & SONS

And

UNITED FOOD AND COMMERCIAL WORKERS

INTERNATIONAL UNION, CLC DISTILLERY,

WINE AND ALLIED WORKERS DIVISION

LOCAL 186D

Modesto, California

January 1, 2011 through December 31, 2013

AGREEMENT

PARTIES TO CONTRACT

This Agreement entered into January 1, 2011 by and between the UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL UNION, CLC, DISTILLERY, WINE AND ALLIED WORKERS DIVISION, on behalf of its Local 186D hereinafter referred to as the Union and the EMPLOYER C. Mondavi & Sons, acting for its members hereinafter referred to as Employer.

W I T N E S S E T H

WHEREAS, pursuant to the intent and purpose of the parties hereto to promote and improve the industrial and economic relations between the Employer, its employees and the Union, and to establish and encourage the practice and procedure of collective bargaining between the parties hereto, it is mutually agreed as follows:

ARTICLE I –– UNION RECOGNITION

Paragraph 1. The Employer does hereby recognize the Union as the sole labor organization representing the Employer's employees and recognizes and agrees to treat and negotiate with the Union as the sole and exclusive bargaining agency for and on behalf of such employees in the plants of the Employer.

Paragraph 2. The term "employees" as used in this Agreement shall not include Office Employees, Chemists, Laboratory Technicians, Watchmen, Superintendents, Wine Makers, Assistant Wine Makers, Champagne Makers, including subcontractors and their employees as specified in paragraph 34, and members of other bona fide recognized collective bargaining units as covered by collective bargaining agreements with the Employer. Additionally, certain employees as specified in paragraph 34 are considered non-union and are not bound by the collective bargaining agreement including family members working as winery trainees.

Paragraph 3. Except in the case of bona fide emergencies, the training and instruction of collective bargaining unit employees, and research or pilot plant operations, all three in conformity with past practices, persons excluded from the bargaining unit shall not be permitted to perform any work normally performed by the employees in the bargaining unit, and which said employees now perform, except specified sub-contractors and their employees as specified in paragraph 34.

ARTICLE II –– UNION SECURITY

Paragraph 4. Union membership shall be a condition of employment. Each employee shall be required to become Union members following ninety (90) continuous working days of employment. During the crush period, July 15 through December 15, the time period for union membership will be 120 days. However, if there is any interruption during the first ninety (90) working days of employment, then application to the Union for membership shall be made after ninety (90) days worked from date of hire.

Until an employee achieves seniority, the grievance and arbitration provisions are not applicable.

Paragraph 5. All employees subject to the terms and provisions of this Agreement shall be required to pay the initiation fee, periodic dues and reinstatement fees established by the Union as a condition of good standing membership in the Union.

Paragraph 6. The Union shall be the sole judge of the good standing of its members. Any employee who fails to pay the required initiation fees, periodic dues and regularly authorized assessments as prescribed by the Union, shall be immediately discharged upon written notice from the Union to the Employer.

Paragraph 7. The Employer agrees to notify the Union in writing within five (5) working days after the hiring of any new employee, giving the employee's name and the classification to be filled by that employee. The Employer also agrees to furnish to the Union the names of all former employees who are rehired no more than seven (7) days after employment.

Upon completion of the probationary period, the Employer agrees to notify the Union in writing on the Monthly Dues Report of the employee's name, address, telephone number and Social Security number.

Paragraph 8. The Employer agrees to allow one (1) hour per week with pay to authorized shop stewards to conduct Union business. The parties understand and agree that in order for shop stewards to conduct Union business on work time, the steward shall first obtain permission from a salaried supervisor, as shall each employee involved.

Paragraph 9. A duly authorized Union Representative shall have access to the premises of the Employer upon proper notification to the Employer. One day notice required by union and all meetings, conversations will be held in the breakroom. Visits by union representatives outside the breakroom will only be permitted with company approval.

Paragraph 10. Bulletin Board. The Employer shall provide a bulletin board upon which notice concerning official Union business may be posted.

ARTICLE III –– CHECKOFF -- INITIATION FEES, DUES AND ASSESSMENTS

Paragraph 11. The Employer agrees to deduct from the payrolls all initiation fees, periodic dues, reinstatement fees, and assessments as required by the Union upon presentation of individual authorizations as required by law, signed by the employees directing the Employer to make such deductions. The Employer shall make such deductions from the employee's pay once in each month and remit same to the Union not later than the 10th day of the following month.

Paragraph 12. The Union will furnish the forms to be used for the authorization. The Employer will furnish the Union with a duplicate copy of all signed authorizations.

Paragraph 13. The Union will hold the Employer free and harmless against any and all claims, damages, suits or other forms of liability whatsoever that shall arise out of or by reason of action taken or not taken by the Employer for the purpose of complying with any of the provisions of the initiation fees, reinstatement fees, regularly authorized assessments, and monthly dues check-off.

Paragraph 14. Sick leave payments will not be the subject of monthly dues deduction. However, the Employer will indicate on the list all layoffs, leaves of absence and terminations.

Paragraph 15. Vacation pay is subject to a monthly dues deduction.

ARTICLE IV –– DISCRIMINATION AND COERCION

Paragraph 16. The Employer and the Union agree that there shall be no unlawful discrimination against any employee upon the basis of factors prohibited by federal or state law or regulation which is applicable to the plant involved. This shall not preclude the Employer or the Union from challenging the interpretation of any such law or regulations placed upon it by the agency administering it.

Paragraph 17. Employee Activity. It is mutually agreed that there shall be no restraint, coercion or interference by the Employer or by the Union against members of the bargaining unit in the exercise of their legal rights in a lawful manner.

ARTICLE V –– MANAGEMENT RIGHTS

Paragraph 18. The Union agrees that the authority to direct, select and increase the working force in accordance with this Agreement, and to determine the products to be manufactured, methods and processes are solely and exclusively the responsibility of the Employer, except as hereinafter limited by the grievance procedure.

ARTICLE VI –– PROBATIONARY PERIOD

Paragraph 19. All newly hired employees shall be deemed to be on probation during the first ninety (90) days worked within two hundred (200) calendar days of the date of hire. The employee may be dismissed by the Company at any time during such probationary period without the necessity of assigning any cause therefore. In the event the company feels an extension is necessary, the union will give consideration and not withhold unreasonable consideration.

Paragraph 20. No new employees shall be qualified or eligible to receive any benefits of this Agreement, such as health and welfare contributions, pension contributions, leaves of absence, jury duty pay, holiday pay, funeral leave, sick pay, etc. until they have completed the probationary period.

ARTICLE VII –– MAINTENANCE TRAINEE PROGRAM

It is understood that the company has the right to train an employee for a maintenance position that is not considered a union position.

Paragraph 21. It is agreed that a maintenance trainee program may be established at each plant with the understanding that said Employer shall have the option of hiring skilled mechanics from outside sources.

PURPOSE:

To provide training to selected Charles Krug employees to progress through different training levels to acquire the skills and expertise to become a Maintenance Mechanic.

METHOD:

Through a scheduled uniform training program, trainees would progress from entry-level trainee (2B) to second level trainee (2A), to Maintenance Mechanic (2).

DURATION OF TRAINING

Each trainee would be on his own schedule within the framework of the training program. A trainee would be working in the entry level for 1 to 2 years, depending on his own aptitude and the results of training tests, supervisor and foreman reviews; a trainee who has been promoted to the second level would work at this level from 1 to 2 years depending on his aptitude and the result of training tests, supervisor and foreman review, and, upon completion of the training program (2 to 4 years), the trainee should have a full knowledge of the skills necessary to work independently with only job layouts from his foreman or supervisor. Nothing in this program shall prohibit management from discontinuing the maintenance program itself or the continuation of any particular individual within the program.

IMPLEMENTATION OF TRAINING PROGRAM:

The training consists of 3 parts.

1. On-the-job training.

2. Outside study of specific job skills.

3. Test and review at the completion of each phase.

The Head of the maintenance Department along with the Maintenance Supervisors and Foreman will be responsible for conducting the on-the-job training necessary to allow the trainee to meet the requirements for advancement.

The Head of the Maintenance Department will oversee any outside training or courses that are necessary to the program.

PROCEDURE:

As a new trainee position becomes available, a bid will be posted. However, nothing in the collective bargaining agreement nor this Training Program will prohibit the Employer from bidding skilled maintenance employees from outside sources.

Candidates for the training program will be interviewed and chosen based upon the general criteria by which we award all job bids: Ability, seniority, and fitness.

This will include but will not be limited to a consideration of an employee’s past work performance, attendance, tardiness record, experience, overall work record, relative frequency and seriousness of production errors or other tests administered by the Employer.

Trainee’s progress will be evaluated Management based upon on-the-job performance, Supervisors and Foreman’s reports, any test results, and fulfillment of outside training requirements. The trainees will be reviewed by Management every month.

Failure on the part of the trainee to pass any in-house tests, complete outside training requirements as needed and directed, or if at any time, at the Employer’s sole discretion, the trainee exhibits a skill level aptitude not suitable for further advancement, the trainee may be dismissed from the training program.

ARTICLE VIII –– HOURS OF WORK

Paragraph 22.

(a) Forty (40) hours shall constitute a week's work, Monday through Friday, to be worked in five (5) consecutive days. Eight (8) consecutive hours shall constitute a day's work in any twenty-four (24) hour period except for lunch not to exceed one (1) hour. All time worked in excess of eight (8) hours in a twenty-four (24) hour period shall be considered overtime. The regular overtime rate shall be one and one-half (1½) times the employee's hourly rate of pay. Wineries will be required to post the regularly scheduled lunch hour at the beginning of each work-week.

(b) By written agreement voluntarily executed by an Employer and the union a vote of 50% plus one of the affected employees is not necessary as long as the shift change exceeds 30 calendar days. Accordingly the Employer may substitute the provisions of this subparagraph (b) for the provisions of subparagraph (a) above. In such event, forty (40) hours shall constitute a week's work, which workweek shall include not more than four (4) consecutive working days of not more than ten (10) hours each, which shall be Monday to Thursday or Tuesday to Friday. The Employer shall not be required to pay overtime rates for the 9th and 10th hours worked during such workdays. If an employee on such four-day schedule is required or permitted to work more than ten (10) hours in any day, the overtime rate prescribed below shall apply for hours worked in excess of the 10th hour of that workday. Employees on such schedule who are required or permitted to work more than four (4) days in a week shall be paid time and one-half (1‑1/2) for the first eight (8) hours on such additional days and double (2) time in excess of eight (8) hours on those days. The regular overtime rate shall be one and one-half (1½) times the employee's hourly rate of pay. Wineries will be required to post the regularly scheduled lunch hour at the beginning of each workweek.

For employees on a four-day week, ten-hour days as provided in this subparagraph, fringe benefits will be paid as follows:

(i) Paid Holidays Under This Agreement. Holidays falling during an employee's four-day week will be paid at ten (10) hours per paid holiday. Holidays falling outside an employee's four-day week will be paid at eight (8) hours per paid holiday. Total holidays hours paid under the above criteria will not exceed 92 hours.

(ii) Paid Vacations Under This Agreement. In Article XIV convert all references to "days" to eight (8) hours of vacation, and convert all references to "weeks" to forty (40) hours of vacation. For purposes of Paragraph 43, the ten days therein will be converted to eighty (80) hours.

(iii) Paid Sick Leave Under This Agreement. Sick leave will be paid out at ten (10) hours per day, exclusive of days outside the employee's four-day week.

(iv) Jury Pay Under This Agreement. This will be paid at ten (10) hours per day for days the employee is scheduled to work within his/her four-day week.

(v) Funeral Leave Under This Agreement. This will be paid at ten (10) hours per day for three (3) business days which must be within the employee's scheduled four-day week.

(vi) Swing Shifts Under This Agreement. Swing shifts under this agreement with regard to the Bottling and Cellar Departments on (10) ten hour shift terminating between 8:01pm and 5:01am shall be considered swing shift.

(vii) Reporting Pay Under This Agreement. Any reference to four (4) hours in Paragraph 30 will be changed to five (5) hours, and any reference to eight (8) hours in Paragraph 30 will be changed to ten (10) hours.

Paragraph 23.

(a) All work performed on Saturday or Sunday will be paid at the rate of time and one-half (1½) the employee's hourly rate of pay, provided the employee has worked and/or been on paid vacation and/or paid holiday for forty (40) straight-time hours in the current workweek.

(b) There shall be no pyramiding, duplication or compounding of any overtime, premiums or penalties required by the provisions of this Agreement. Where two or more rates, premiums or penalties or any combination thereof are applicable to any time worked, that single overtime, penalty or premium which produces the highest rate of pay for the employee shall be the rate paid.

Paragraph 24. Preference to overtime work following an eight (8) hour shift shall be given to the employee performing the job prior to the expiration of the shift. In the event additional employees are needed for overtime work within the same department, then preference shall be given to employees based on skill sets, safety record, attendance and performance standards. Seniority is a criteria only when the above issues are equal within that department.

Paragraph 25. Preference for overtime work on a Saturday, Sunday, or holiday shall first be given to employees working on that shift in the department scheduling overtime in accordance with the employees' based on skill sets, safety record, attendance and performance standards. Seniority is a criteria only when the above issues are equal within that department..The grade range will be determined by the job classification for work performed. Work not specified in the Cellar will be based on the GWWI rate. Duties in the Bottling area will be based on the rate for the job classification contained in the Wage Schedule.

Paragraph 26. Any statutory requirements regulating hours or conditions of work shall be observed by the Employer and the Union as if part of this Agreement. Overtime work for all employees shall be on a voluntary basis with right of refusal by seniority subject to the provisions of the Shift Preference Article herein, i.e., Article 14 of the Seniority provided, however, that where an insufficient number volunteer, junior seniority qualified employees may be assigned to said work and shall work overtime so assigned. In the interest of safety, the company has the right to mandate a seniority employee to work overtime if the alternative worker has worked over 60 hours in the given week that overtime is being requested.

(a) The parties hereby agree that the "equivalent" rule set forth in the third sentence of Section 554 of the California Labor Code shall not apply to Employers and employees covered by this collective bargaining agreement, and employees subject to this Agreement may work more than seven (7) consecutive days without the necessity of accumulating days of rest to receive the equivalent of one (1) day of rest in seven (7) in each calendar month.

ARTICLE IX –– WAGE SCHEDULE

Paragraph 27. All employees covered by this Agreement shall be compensated for their services at a minimum per Wage Schedule hereto attached.

Paragraph 28. All work on the Swing Shift by an employee assigned thereto shall be paid for at the rate of twenty cents (20¢) per hour above the regular rate and all work performed on the Graveyard Shift by an employee assigned thereto shall be paid for at the rate of twenty-five cents (25¢) per hour above the regular rate. The term Swing Shift shall mean any eight (8) hour shift terminating between the hours of 6:01 P.M. and 3:01 A.M. The term Graveyard Shift shall mean any eight (8) hour shift terminating between 3:01 A.M. and 12:01 P.M.

Paragraph 29. No employee shall suffer a reduction or diminution in wages presently being paid nor shall the employee's established conditions of employment be reduced because of the signing of this Agreement, subject to the specific provisions of the settlement or this Agreement.

ARTICLE X –– REPORTING AND CALL-IN TIME

Paragraph 30. All employees when reporting at the scheduled starting time, when requested by the Employer, shall be guaranteed a minimum of either four (4) hours' work or the equivalent in pay if the employee does not complete four (4) hours of work. It is further agreed and understood that employees who, when requested by the Employer, return to work after the meal break shall be guaranteed additional work or equivalent in pay to a total shift of eight (8) hours. Past practices of individual plants will prevail with regard to established meal hours. This Paragraph is to be applicable only to the Monday through Friday workweek and specifically excludes Saturday and Sunday and overtime assignments.

Paragraph 31. An employee who has previously completed that day's work and, after having left the premises, is called in for emergency work, shall be paid a minimum of four (4) hours' pay at the prevailing premium rate. An employee called in for such emergency work shall not be required to perform nonemergency work to fill out the four (4) hours.

Paragraph 32. When an employee is called to work by the Employer on a Saturday or on a Sunday, the employee shall be guaranteed a minimum of four (4) hours' work, or a minimum of four (4) hours' pay in lieu thereof, at the prevailing rate for said Saturday or Sunday work.

Paragraph 33.

1. The following situations may occur:

(a) Operations cannot commence or continue due to threats to employees or property or when recommended by civil authorities.

(b) There is a failure in the electricity, water, or gas supply or there is a different failure in the utilities or sewer system, or

2. If any of the above events occur the Reporting Pay provisions of Paragraphs 30 and 32 of this Agreement shall not be applicable to employees reporting for work, but not yet at work, if the Employer has less than three (3) hours' notice of the event. If the Employer has three (3) or more hours notice of the event, the Employer must use reasonable means to notify the employees that work will not commence, otherwise the provisions of Paragraphs 30 and 32 will apply to employees reporting for work.

3. If any of the above events occur, the Reporting Pay provisions of Paragraphs 30 and 32 of this Agreement are modified with respect to employees already at work, so that such employees are only guaranteed a maximum of four (4) hours' work on such day. However, employees who are requested to remain on Company premises above four (4) hours shall be paid for such time. Persons then returned to work shall not be subject to the above exemptions.

ARTICLE XI –– OUTSIDE CONTRACTING

Paragraph 34. Any ordinary maintenance, production and repair work which the employees in the bargaining unit normally perform shall not be contracted out to be performed by outside contractors except upon prior consultation with the Union; provided that the Employer will not subcontract normal maintenance, production and repair work when there are qualified personnel on layoff who have performed the work. It is understood and agreed that the Company has the right to purchase raw materials such as wine, high-proof, etc., to contract for the production of such items and to arrange for contract and franchise bottling and warehousing.

1) Nonunion Employees

With regard to paragraph 34, the parties agree that the following positions will be nonunion employees as follows:

Position # of Employees up to:

Maintenance 5

Cellar Master/Working Foreman 3

Master Operator 3

The fifth maintenance position gives the employee hired the option to be union or non-union.

The third Master Operator position gives the employee hired the option to be union or non-union.

Within the designated limits specified, the nonunion labor is allowed and is not subject to any terms, conditions or requirements of the collective bargaining agreement. Other departments are allowed subcontract labor consistent with past practice.

In the event of a work slowdown and none of the union maintenance employees have worked 2080 hours in a twelve month period, then the company agrees to reduce the number of hours of the non-union maintenance employees before the hours of the union maintenance employees.

In the event there is a work slowdown, the 2 nonunion cellar master positions will only be used as training/supervisory positions during this period.

ARTICLE XII –– SEVERANCE PAY

Paragraph 35. In the event of:

1. A permanent plant shutdown, or a permanent departmental shutdown, resulting in the permanent termination of an employee,

2. The installation of new machinery or equipment, which permanently displaces an employee, and the employee is permanently thereby terminated, severance pay shall be paid to each such permanently terminated employee in accordance with the following:

a. A service year shall be a year in which an employee shall have worked 1,500 or more straight-time hours.

b. An employee who has completed three (3) service years, in each of which said three (3) years the employee has worked 1,500 or more straight-time hours, shall receive three (3) days' pay at his regular rate of pay on the date of termination.

c. An employee who has completed four (4) service years, in which each of said four (4) years the employee has worked 1,500 or more straight-time hours, shall receive six (6) days' pay at the employee's regular rate of pay on the date of termination.

d. For each additional service year, as defined, the employee shall receive an additional three (3) days' pay at the employee's regular rate of pay on the date of termination to a maximum of twenty five (25) days' pay.

ARTICLE XIII –– HOLIDAYS

Paragraph 36. The following holidays shall be observed under this Agreement: New Year's Day, President’s Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Friday after Thanksgiving Day, last business day before Christmas, Christmas Day and New Year's Eve Day. Sunday holidays shall be observed on the Monday following and Saturday holidays shall be observed on the preceding Friday. These substituted days shall be the respective holidays and all incidents of holiday pay shall apply thereto.

Paragraph 37. The above holidays shall be paid for at regular rates of eight (8) hours, plus shift differential, if any, provided that an employee must work the employee's full regularly scheduled shift preceding and following the holiday. For the purposes of holiday pay employees on paid sick leave, funeral leave, jury duty and vacation will be considered as having worked. Where an employee is required to be absent from work the day before and/or the day after the holiday due to a mandatory court appearance as a subpoenaed witness in a case in which the employee is not a party, the employee shall not be disqualified from holiday pay on that account, provided that the time limits and reporting conditions as set forth in Article XIX, Paragraphs 62, 63, and 64 shall apply, and that the employee furnishes proof of said mandatory appearance. Holiday pay not to exceed 92 hours.

Paragraph 38. When a Saturday holiday is required to be observed and paid for on Friday, and work is performed on the Saturday, or when a Sunday paid holiday is required to be observed on Monday, and work is performed on the Sunday, all such work shall be paid at time and one-half (1‑1/2) the employee's regular hourly rate of pay.

Paragraph 39. In case of layoffs of employees with seniority, they must have worked and/or been on paid vacation one (1) working day within the four (4) working days immediately before the holiday, and they must have worked and/or been on paid vacation one (1) working day within the four (4) working days immediately following the holiday.

Paragraph 40. All work performed on the above holidays shall be paid for at time and one-half (1‑1/2) the employee's regular hourly rate of pay.

ARTICLE XIV –– VACATIONS

Paragraph 41. When Taken. Vacations are to be taken during the service year immediately following the year in which earned, except in case of termination, and are not cumulative from year to year.

Paragraph 42. How Earned. No employee shall lose vacation credits for loss of time caused by absence due to jury duty for which the Employer has given the employee jury duty pay under Article XIX of this Agreement.

Paragraph 43. Vacation Time Earned. The Employer agrees that vacation with regular pay shall be granted to employees within the bargaining unit who work 1,200 or more hours during the employee's service year. To obtain vacation credit for a month's employment, an employee must have worked not less than ten (10) days within a calendar month; provided, however, that the 1200‑hour eligibility requirement will be waived for an employee in the year that the employee retires or is permanently disabled. Vacation shall be paid as follows:

Months Of Employment Within Service Year	1st Year	2nd Year And After	After 6 Years	After 13 Years	After 20 Years

6 & 7 mo.	2½ days	5 days	7 days	10 days	13 days

8 mo.	3 days	6 days	10 days	13 days	17 days

9 mo.	3½ days	7 days	11 days	14 days	19 days

10 mo.	4 days	8 days	12 days	16 days	21 days

11 mo.	4½ days	9 days	14 days	18 days	23 days

12 mo.	5 days	10 days	15 days	20 days	25 days

(1) An employee is eligible for three (3) weeks' vacation after completing six (6) years of seniority, to be given during the seventh (7th) year of seniority.

(2) In the case of a plant having a simultaneous vacation shutdown during which two (2) weeks' vacation may be given to all eligible employees, the third (3rd) week of vacation must be given during the seventh (7th) year and prior to the next cut-off date.

(3) An employee is eligible for four (4) weeks' vacation after completing thirteen (13) years of seniority, to be given during the fourteenth (14th) year of seniority.

(4) In the case of a plant having a simultaneous vacation shutdown during which two (2) weeks' vacation may be given to all eligible employees, the fourth (4th) week of vacation must be given during the fourteenth (14th) year and prior to the next cut-off date.

(5) An employee is eligible for five (5) weeks' vacation after completing twenty (20) years of seniority, to be given during the twenty-first (21st) year of seniority.

(6) In the case of a plant having a simultaneous vacation shutdown during which two (2) weeks' vacation may be given to all eligible employees, the fifth (5th) week of vacation must be given during the twenty-first (21st) year and prior to the next cut-off date.

Paragraph 44. Rate of Pay.

A. Regular Pay: The average hourly basic rate of the employee in the twelve (12) months immediately preceding the expiration of the service year, adjusted to the current contract rates at the time of taking vacation.

B. Day's Pay: The sum obtained by multiplying the average hourly basic rate times eight (8) hours plus any shift differential provided the employee has worked a minimum of twenty-six (26) weeks out of the employee's service year on shifts other than the day shift, and provided further that if the employee works on a regular rotating shift, the employee shall receive one-third (1/3) the combined shift differentials added to the rate of the employee's vacation pay.

C. In the event employees are on vacation on or after the anniversary date of the Agreement and wage increases are obtained, these employees shall receive the increases for the period of their vacation on or after the effective date of the increases.

Paragraph 45. Scheduling.

A. Vacations will be scheduled at the Employer's preference and in accordance with plant seniority ratings both as far as possible without disturbing production requirements. Final decision shall rest with the Employer provided employees are given thirty (30) days' advance notice of vacation commencement dates.

B. Employees who, at the convenience of the Employer, forego their vacation shall receive any new rates that might be established and in effect at the time of taking the vacation.

C. Employees shall not be required to split their vacations and shall be permitted to take their vacations in consecutive weeks, provided that the requirements of management are not thereby impeded or interfered with. Management will not arbitrarily deny consecutive vacation weeks. Senior employees shall have preference so far as practical.

D. Where there is a department shutdown or plant shutdown of only two (2) weeks, employees entitled to longer vacations may take the balance of their vacation at their convenience in increments of one week, or less in the event of a layoff, with management's prior agreement, provided, further, that production requirements shall not be thereby impeded. No employee shall be required to take more than two (2) weeks of his/her vacation during a plant shutdown situation.

Paragraph 46. Holiday During Vacation. When a paid holiday under the terms of this Agreement occurs during an employee's vacation, the employee shall receive an extra day's vacation or pay in lieu thereof, at the option of the Employer.

Paragraph 47. Termination. Employees whose employment is terminated for any cause and who are paid their prorated share of vacation pay shall start a new vacation service year on the date of reemployment.

Paragraph 48. Layoff. Employees who are laid off before qualifying for vacation pay, and who are re-employed within the current service year, shall retain their anniversary date and receive credit for all time worked during such service year.

Paragraph 49. Service Year Defined. The twelve (12) months following the date of employment and every twelve (12) months thereafter. An employee's date of employment shall always be considered the anniversary date when computing vacation benefits unless a new anniversary date is acquired as provided above in Paragraph 47.

ARTICLE XV –– HEALTH AND WELFARE MAJOR MEDICAL AND DENTAL

Paragraph 50. Effective the first qualifying month after contract ratification in 2011, the Employer will make a premium payment of $422.27 per month per eligible or covered employee who has worked or been paid for at least forty (40) straight-time hours in the previous month. Such payments will not be made on behalf of probationary employees.

Paragraph 51. Employee contributions will be consistent with current contributions until H&W insurance rates adjust in May, 2011. Any increases in H&W premiums in May 2011 will be split 50/50 by the Company and the employees with a maximum increase for the company of $20/employee. The UFCW Health Plan will be used to determine the increase for consideration. The maximum Company contribution beginning May 2011 will be $442.27/mo/employee. If there is no increase in H&W premiums on or around May 2011, then the Company’s portion will be no more than $422.27/employee.

May 2012 there is also a $20 cap for the company if H&W costs rise, still split 50/50 up to the cap. May 2013 there is a $20 cap for the company if H&W increases.

A maximum of 20% of the current bargaining unit can opt out of H&W coverage (4 employees) with proof of alternate medical insurance coverage. The Company’s contribution for an opted-out-of-coverage-employee is limited to $150 per month per such employee to be paid directly to the employee.

The cost of vision care and any and all increases in the cost of vision care will be paid for entirely by the employee for each and all years of the contract.

The employees shall make up the difference between the Employer contribution and the rate required by the UFCW National Health and Welfare Fund by payroll deduction taken by the Employer from the employees' paychecks.

Paragraph 52.

For persons hired before April 1, 1989 and who retire on or after August 1, 1995 and their spouses, medical coverage will be the same as for active employees; said retirees will co-pay the same amount per month for coverage as do active employees. Said coverage will be provided during the term of this Agreement or until the covered person becomes eligible for Medicare or reaches age 65, whichever is earlier.

Persons hired on or after April 1, 1989 are not eligible for retiree medical coverage.

Paragraph 53. Effective May 2005, the company’s retiree contributions will be the same as the company’s contribution for active employees.

Paragraph 54. During the term of this Agreement, the Employer can opt out of the UFCW National Health and Welfare Fund with the Union's consent thereby ceasing all of the Employer's obligations as to the UFCW National Health and Welfare Fund, including, but not limited to, the obligations to pay contributions as set forth above in Paragraphs 50, 51, 52 and 53; however, the Employer must give the appropriate local union at least four (4) month's notice of its intent to opt out of the Fund and must provide to the appropriate local union the schedule of benefits of the new plan proposed by the individual Employer.

Paragraph 55. The Employer may require written medical verification of illness or injury and the employee's inability to work due to such illness or injury. The verification must include the anticipated date of return to work of the employee.

Paragraph 56. Until May, 2011, a premium payment of $48.58 per month per eligible or covered employee who has worked or been paid for at least forty (40) straight-time hours in the previous month shall be made to the Delta Dental Plan of California for benefits as provided; in addition, $19.53 per month per eligible or covered employee will be paid by the employees. Such payments will not be made on behalf of probationary employees.

Effective for coverage on or after May 1, 2011 (first payable in May, 2011), if the premium for covered employees increases, any increase in the premium per eligible or covered employee will be paid first out of the Delta Dental stabilization fund, if possible and permitted by Delta Dental. If the increase is greater than what Delta Dental will allow to be paid out of the stabilization fund, the Employer will pay 50% of the increase (up to $2.50 per month) per eligible or covered employee as a partial offset against the increase in the premium. The remainder of the increase (at least 50% of the increase) will be paid by the employees. The company will split any reduction (rate under $50.21) currently in place, starting with new Contract year.

Effective for coverage on or after May 1, 2012 (first payable in May, 2012), if the premium for covered employees increases, any increase in the premium per eligible or covered employee will be paid out of the Delta Dental stabilization fund if possible and permitted by Delta Dental. If the increase is greater than what Delta Dental will allow to be paid out of the stabilization fund, the Employer will pay 50% of the increase (up to $2.50 per month) per eligible or covered employee as a partial offset against the increase in the premium. The remainder of the increase (at least 50% of the increase) will be paid by the employees.

Effective for coverage on or after May 1, 2013 (first payable in May, 2013), if the premium for covered employees increases, any increase in the premium per eligible or covered employee will be paid out of the Delta Dental stabilization fund if possible and permitted by Delta Dental. If the increase is greater than what Delta Dental will allow to be paid out of the stabilization fund, the Employer will pay 50% of the increase (up to $2.50 per month) per eligible or covered employee as a partial offset against the increase in the premium. The remainder of the increase (at least 50% of the increase) will be paid by the employees.

In the event the Employer contribution is not sufficient to provide the scheduled benefits, the employees shall make up the difference between the Employer contribution and the rate required by the medical plan and\or the Delta Dental Plan of California by payroll deduction taken by the Employer from the employees' paychecks, and the Employer shall remit the full amount of contribution required by the Plan.

ARTICLE XVI –– WORKERS' COMPENSATION SUPPLEMENT

Paragraph 57. In the event any employee is injured while at work and is required to leave work the employee shall be paid his full wages for the day of injury, provided the employee requires medical attention as the result of the injury, and upon the advice of the attending physician is unable to return to work.

When it is necessary, during the first year after injury, for post-medical treatment due to occupational injury or illness, the Employer will compensate the employee for loss of time not to exceed two (2) hours for treatment based on the following conditions:

(a) Where the Company has medical facilities, these will be utilized.

(b) That the Employer has the right to implement reasonable controls to the use thereof.

The Company will have the ability to “consider” QIW’s for Permanent Modified positions in accordance with legal guidelines. This will entail the following:

The pay rate will conform to the guidelines as specified by law.
A separate classification will be created for each QIW that specifies the responsibilities of the position.
Any legal requirements regarding this subject will prevail over any contractual language to the contrary.

Workers Compensation Supplement- In the event of a compensable injury, the Employer will provide medical coverage up to six months from the date of injury until the employee is determined available to return in some capacity or until the employee has been determined to be a QIW.

ARTICLE XVII –– SICK LEAVE

Paragraph 58. In the case of a nonindustrial illness or nonindustrial injury, sick leave with pay up to a total of forty (40) straight-time hours at the rate of a full day's pay at straight-time earnings, Saturday and Sunday excluded, will be allowed during the contract years, January 1, 2011 – December 31, 2013, to all employees who have a minimum of one (1) year's continuous service with the Employer and a minimum of twelve hundred (1,200) straight-time hours worked during the year. Sick leave will be accumulated at the rate of forty (40) hours per year of service to a maximum of one hundred and twenty (120) hours in reserve at any one time. Any unused portion of sick leave from the immediately preceding contract may be carried over to the first year of the current contract, but in no event shall the total allowable sick leave exceed one hundred and twenty (120) hours in reserve at one time. Employees entitled to State Disability Benefits shall have their weekly benefits supplemented by their Employer from any available sick leave or vacation(at option of employee) in an amount equal to 100% of their normal straight-time earnings less any statutory deductions. Sick leave is applicable only in case of a bona fide illness and shall not be paid for if not taken.

Paragraph 59. After 3 days of sick pay, per year, the company has the option to ask for a physician, surgeon, dentist or chiropractor certificate verifying the illness. If not presented to Company, the first day of illness will not be paid.

ARTICLE XVIII –– PENSION PLAN

Paragraph 60.

Parties acknowledge withdrawal from the UFCW Pension Plan effective December 31, 2007. Company will replace the UFCW current plan with a company sponsored defined contribution 401K. Company will provide a match up to 3% of employee salary contribution effective January 1, 2008.

ARTICLE XIX –– JURY DUTY

Paragraph 61. An employee required to serve on a jury and who misses work shall be paid the difference between the employee's straight-time earnings and the amount paid the employee for jury duty up to a maximum of twenty (20) days, provided (i) the employee gives the Employer five (5) working days' notice that he/she must report for jury duty or such notice as the employee has if the Court gives the employee shorter notice, and (ii) the employee furnishes proof of such jury duty, and (iii) the hours of jury duty occur during the employee's regularly scheduled shift or as otherwise provided herein.

Paragraph 62. If a first-shift employee, sometimes known as a day-shift employee, is released from jury duty four (4) hours or less after the normal starting time of his/her shift, or by 12:00 noon, whichever is earlier, the employee shall be required to report for work within one (1) hour after his/her release from jury duty. If a day shift employee is released from jury duty more than four (4) hours after the normal starting time of his/her shift, or after 12:00 noon, the employee shall not be required to work his/her scheduled shift on that day.

Paragraph 63. If a second or afternoon shift employee is released by the court at or before 12:00 noon, the employee shall be required to work the employee's scheduled shift. If a second or afternoon shift employee is released by the court after 12:00 noon, the employee shall not be required to work the employee's scheduled shift on that day. If the employee is released by the court at or before 12:00 noon, the employee must notify the Employer by telephone that the employee has been released and will be reporting to work. Said notification must occur as soon as possible

Paragraph 64. A third or graveyard shift employee shall not be required to work the employee's scheduled shift immediately prior to the employee's first morning of jury duty. If a third or graveyard shift employee is released by the court seven (7) hours or more prior to the start of his/her scheduled shift, the employee shall be required to work his/her scheduled shift that night. If a third or graveyard shift employee is released by the court less than seven (7) hours prior to the start of his/ ADVANCE her scheduled shift, the employee shall not be required to work his/her scheduled shift that night. If a graveyard shift employee works his/her full shift, and on the same day is required to serve on jury duty for four (4) hours or more, the employee will be excused from work for the graveyard shift of the following day, if scheduled and will be paid his/her regular straight-time hourly rate of pay for said excused time off.

ARTICLE XX –– FUNERAL LEAVE

Paragraph 65. In the event of the death of an employee's father, mother, grandparent, father-in-law, mother-in-law, sister, brother (including half-sister and half-brother), legal guardian, spouse, child, legally adopted child, step-child, or grandchild, an employee shall be given three (3) consecutive business days' (excluding Saturday, Sunday and holidays) leave, one of which will be the day of the funeral, with regular straight-time pay the employee would have received if the employee was or would have been scheduled such days. Attendance at the funeral is required. Proof of death and relationship may be required by the Company.

In addition to the number of guaranteed days of paid funeral leave, employees may take unpaid funeral leave, on a case by case basis if approved by the company, when special circumstances exist, such as the employee has to travel a long distance.

Employees on approved leave of absence to care for members of their immediate family, in the event of death of said family member during such leave of absence, shall receive the benefits set forth hereinabove provided that the employee returns to work. If funeral leave is obtained by misrepresentation, it shall subject the employee to immediate discharge.

ARTICLE XXI –– LEAVES OF ABSENCE

Paragraph 66. Leaves of absence may be obtained from the Employer not to exceed twelve (12) months for illness or physical incapacity and for a period not to exceed sixty (60) days for valid personal reasons. Employees qualifying for either the federal Family and Medical Leave Act or the California Family Rights Act will be placed on family or medical leave with health care benefit premiums paid pursuant to applicable statute for the first twelve (12) weeks of such leave. The Employer requires that the request for leaves of absence be submitted on a form provided for the purpose. If found to have been obtained by fraud or misrepresentation, the employee shall lose all seniority rights and be subject to dismissal. The acceptance of other employment during said leave of absence shall be grounds for discharge. After absence from work for any reason (including lay-off) for sixty (60) or more days, the Employer may require the returning employee to submit to a physical examination and/or a drug/alcohol test. Any leave of absence granted pursuant to this section runs concurrent with any other leave to which the employee may otherwise be entitled.

Paragraph 67. Requests for extension of leaves of absence must be made by the employee and be approved by the Employer or the Employer's designated representative five (5) days in advance of the termination date of the leave, unless a satisfactory reason is given. Leaves of absence may be extended if circumstances warrant. When a leave of absence or extension is granted, the Union shall be notified thereof.

Paragraph 68. The employee must notify the employee's Employer or the Employer's designated representative of the available date of return to work at least five (5) days prior to the termination of the leave of absence.

ARTICLE XXII –– MILITARY DUTY AND REEMPLOYMENT RIGHTS

Paragraph 69. The Employer shall comply with then prevailing federal and/or state law with respect to military duty and reemployment rights.

ARTICLE XXIII –– DISCIPLINE

Paragraph 70. The Employer shall not discharge any employee without just cause. Prior to any proposed discharge, where feasible and practicable the Employer shall notify the steward and/or a Union officer to be present when formal charges are made against an employee.

Paragraph 71. In order that the union representative may have sufficient time to investigate the charges, the employee shall not be discharged but may be suspended for two (2) business days. Written and telephone notice of such suspension will be furnished to the Local Union. If, after such two (2) days, the matter cannot be satisfactorily settled, the employee may be considered discharged. In the event the employee is found at fault, the time required to investigate the charges will be unpaid.

Paragraph 72. If the Union considers such discharge to be unjust, the matter shall be handled in the manner more fully set forth in Article XXIV hereof, provided the grievance is filed in writing with the Employer and the Union within five (5) business days after such discharge becomes effective.

Paragraph 73. In the event such discharge is determined to have been unwarranted, the employee shall be reinstated in good standing, without prejudice or loss of seniority rights, and shall receive full pay for the time lost, less the amount of earnings elsewhere during the period of time between the employee's discharge or suspension and the date that the employee is put back on the Employer's payroll. Nothing herein shall interfere with the arbitrator's authority to determine upon the facts that a temporary disciplinary layoff without pay might have been justified, rather than a discharge.

Paragraph 74. In the event any employee is discharged, such employee shall receive full pay due the employee, including prorated vacation earned as set forth in Article XIV, less any monies due the Union on Check-off.

Paragraph 75. Complaints as to minor infractions shall be removed from an employee's personnel file immediately upon the completion of a twelve (12) month period with no recorded complaint.

With regard to violations of unexcused absences and chronic absenteeism and tardiness, a written warning will not be used after the lapse of twelve (12) months from date of issuance of such warning in the case of employees who work six (6) months or more in their anniversary year. In the case of employees who work less than six (6) months in their anniversary year, a written warning will not be used after the lapse of 260 days worked or two (2) years, whichever is sooner, from the date of issuance of such warning. Ten (10) days worked in a calendar month would constitute one (1) month in determining the number of months worked during an employee's anniversary year.

Paragraph 76. Disciplinary action as outlined in Schedule A shall be binding on the parties with respect to the offenses and procedures set forth in Schedule A which is made a part of this Agreement. Schedule A shall not be construed to be all inclusive and the Employer shall have the right to discipline, for just cause, for other infractions not specifically designated in Schedule A.

SCHEDULE A

(

W-Warning S-Suspension D-Discharge

It is recognized that there may be degrees of safety violations, but generally, such violations are of a serious nature because of danger to the employee or to other employees, or danger to the property of the Employer. Therefore, violations of CAL-OSHA or published safety rules are not subject to Schedule A, but rather, appropriate discipline will be imposed on a case-by-case basis.

ARTICLE XXIV –– GRIEVANCE AND ARBITRATION PROCEDURE

Paragraph 77.

A. Grievances are defined as disputes about the interpretation or application of this Agreement and alleged violations of the Agreement.

B. Grievances shall be presented to the Employer in writing (specifying contract section violated, detailed description of the alleged grievance and relief sought) within seven (7) calendar days from the date of occurrence. If such notice is not given to the Employer within seven (7) calendar days of the occurrence of the facts upon which such complaint is based, then it shall be deemed waived and abandoned and shall not thereafter form the basis of a grievance between the parties hereto.

C. The grievance shall first be taken up with the immediate supervisor of the grievant. The supervisor will have two (2) business days to return the grievance with an answer to the steward. The steward will have two (2) business days to refer the grievance to the department head. The department head shall have two (2) business days to return the grievance with an answer to the steward. The steward will have two (2) business days to refer the grievance to upper management. Upper management shall have five (5) business days to answer and return the grievance to the union office. While the time limits in this Paragraph 77C should be met by both sides, failure to do so will not constitute a waiver or default of the party's position in the grievance.

D. If the grievance procedure fails to settle the grievance, then within thirty (30) days, the grievance may be submitted to arbitration.

Paragraph 78. – (Not Used)

Paragraph 79. Arbitration.

A. Arbitration may be demanded by serving notice thereof on the Chief Local Executive of the Employer in the plant concerned and upon the General President of the International Union. Before arbitration, both parties agree to use Greg Lim, FMCS as the Standing Mediator, to find agreement regarding the dispute.

Failure of the Union to request arbitration within six (6) months of the filing of the grievance or within thirty (30) days of the waiving or the holding of the labor-management hearing (whichever is earlier) shall constitute a waiver and abandonment of the grievance.

B. Within ten (10) days from the receipt of such notice, the Employer and the Union shall select a mutually satisfactory arbitrator to hear and determine the dispute. If after ten (10) days from the receipt of notice the parties cannot agree upon the selection of an arbitrator, then the arbitrator shall be selected from a panel of not less than seven (7) names supplied by the Federal Mediation and Conciliation Service.

C. The arbitrator shall have no power to add to, or subtract from, or modify any of the terms of this Agreement, nor shall he substitute his discretion for that of the Employer or the Union, nor shall he exercise any responsibility or function of the Employer or the Union. The arbitrator shall have authority to interpret wage rates and the application thereof, but he shall have no authority to create new wage rates.

D. The decision of the arbitrator shall be final and binding on all the parties involved in such controversy or grievance and shall conclusively determine the dispute.

E. Each party shall bear the cost of presenting its own case. The fees and expenses of the arbitrator and accommodations shall be borne by the non-prevailing party. If the arbitration is cancelled, the cancellation fee shall be borne by the party canceling the arbitration.

Paragraph 80. International Union Involvement. In the event the International Union regards a grievance to be of sufficient importance, such grievance may be instituted and processed by the International Union, with the requirements regarding the initial filing, the labor-management step, and the arbitration step must be followed. Time limits may be extended by mutual agreement between the International Union and the Employer.

Paragraph 81. Time Limits. Time limits set forth herein shall equally bind each party to this Agreement. Any time limit may be extended for a fixed period of time if mutually agreeable to the Union and Company. Any agreed upon time extension shall be noted and signed by the Company and Union representatives on the grievance form.

ARTICLE XXV –– NO STRIKE/NO LOCKOUT

Paragraph 82. The parties have agreed that there shall be no economic action taken by the Union with the Employer during the life of the Agreement. For the purposes of this section, “economic action” shall be defined as sympathy strikes, slowdowns, picketing or any adverse actions initiated, ratified, or participated in by the Union and its Members. It is the intent of the parties that during the life of the contract there shall be no interruptions or interference with the Employer’s normal sales, production or shipping operations at any of the Employer’s locations.

ARTICLE XXVI –– ___ALCOHOL AND DRUG TESTING

Paragraph 83. The C. Mondavi & Sons Drug and Alcohol Testing Program, attached hereto, is adopted and made a part of this Agreement as though fully set forth herein.

ARTICLE XXVII –– TERMINATION OF CONTRACT

Paragraph 84. This Agreement shall become effective as of January 1, 2011, and shall remain in full force and effect until midnight, December 31, 2013, and from year to year thereafter, unless either party gives at least sixty (60) days' notice in writing to the other party prior to any annual expiration date of its desire to amend, terminate, or otherwise modify this Agreement.

Paragraph 85. This Agreement shall inure to the benefit of and shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto.

ARTICLE XXVIII –– GENDER

Paragraph 86. Whenever the masculine gender is used in this Agreement, it shall include the female and wherever the female gender is used in this Agreement, it shall include the male.IN WITNESS WHEREOF, this contract, signed and executed this ____ day of ________________, 2011

WAGE SCHEDULE

HOURLY RATES

	1/1/2010	1/1/2011	1/1/2012	1/1/2013
Classifications
1. Maintenance Specialist	$30.75	$31.37	$32.00	$32.64
2. Skilled Maintenance Mechanic	$22.14	$22.58	$23.03	$23.49
A. Second Level-Trainee	$22.14	$22.58	$23.03	$23.49
B. Entry Level-Trainee	$19.69	$20.08	$20.48	$20.89
3. Master Operator.	$22.06	$22.50	$22.95	$23.41
4. Master Barrel Operator	$22.06	$22.50	$22.95	$23.41
5. Processing Operator - B: Skilled Employee operating any two of the following: Hoist/crusher, centrifuge, bottling/pasteurizer, presses, filters, filter presses, DE filters, or refrigeration.	$19.99	$20.39	$20.80	$21.22
6. Checker Warehouse	$16.61	$16.94	$17.28	$17.63
7. Lift Truck Operator-Checker, Clamp Lift Operator, with responsibility for checking and/or loading, and order assembly	$18.77	$19.15	$19.53	$19.92
8. Lift Truck Operator to and from line supply	$17.94	$18.30	$18.67	$19.04
8A. Barrel Lift Operator	$19.07	$19.45	$19.84	$20.24
9. Machine Operator-Filler, CRC (if the filler position is independent of the labeler position 9A Machine Operator – Filler & Labeler Combined	$16.61 $19.28	$16.94 $19.67	$17.28 $20.06	$17.63 $20.46

To qualify for machine operator rate, the operator shall be responsible for the complete operation including the adjusting of said machine. Attendants who merely start, stop and keep machine supplied shall not be so classified. Present operators shall not be reduced in pay because of this description.

Classifications	1/2/2010	1/1/2011	1/1/2012	1/1/2013
10. General Winery Worker I	$14.76	$15.06	$15.36	$15.67
10A. General Winery Worker II Cellar	$11.06	$11.28	$11.51	$11.74
10B. General Winery Worker II – Bottling – Case Handler, Stack and Dump	$9.27	$9.46	$9.65	$9.84
11. Machine Attendant Labeler (If a labeler position is independent of the filler position.	$15.37	$15.68	$15.99	$16.31
12. General Light Work - Case Packer repack, decanter, Inspectors	$9.27	$9.46	$9.65	$9.84

If any bargaining unit employees are asked to work as Dumper/Inspectors, they will be paid no less than the current GWWI cellar rate for 30 days, after that they will be paid no less than the current GWWII cellar rate for the remainder of the time working in this position. However, if an employee paid at the GWII cellar rate is asked to work as a dumper/inspector, then said employee will stay in the GWII cellar pay grade for no more than 90 days at which time the employee will revert to the rate of the position worked.

New employees receive 80% of wage for the first 520 straight time hours then 90% for the second 520 straight time hours

Under this schedule, employees will stay at their specified rates regardless of changes in their job duties, unless there are significant changes in such responsibilities for a minimum of one month.

1) Future rates increases are as follows:

Effective January 1, 2011 2%

Effective January 1, 2012 2%

Effective January 1, 2013 2%

Subject to the next paragraph, rate changes for individuals who are upgraded for “crush” will be effective immediately upon being so assigned and will continue for the entire period that the individuals are in those positions.

Training for a new position will be at a rate of 80% of the contract rate for the first 520 hours and 90% of the contract rate for the second 520 hours. However, current/experienced employees who choose to train for “upgraded” positions will not take a pay cut based on the 80/90% training rate. The training time required of current employees will be governed by the time it takes them to be able to perform the duties of the job on a “stand alone” basis. Any employee who bids for and receives a lesser position will receive the lower rate for that position immediately.

2) Following are job descriptions for the following new positions: