Exhibit 10.70

May 11,  2004

     
Farm Credit Services of America, PCA
  US Bank National Association
 
   
Farm Credit Services of Minnesota Valley, PCA, DBA PCS Commercial Finance Group
  Cöoperatieve Centrale Raiffeisen- Boerenleenbank B.A., “Rabobank
International”, New York Branch
 
   
Farm Credit West, FLCA
  Comerica Bank

    Re: Amendment No, 1 to Amended and Restated Intercreditor and Collateral
Agency Agreement dated as of April 19, 2002

Ladies and Gentlemen:

          Reference is made to that certain Amended and Restated Intercreditor
and Collateral Agency Agreement, dated as of April 19, 2002, among the
Noteholders named in Schedule I thereto (collectively, together with their
successors and assigns, the “Noteholders”), the Facility Lenders named in
Schedule II thereto (collectively, the “Facility Lenders”; together with the
Noteholders, collectively hereinafter referred to as the Secured Parties),
Cöoperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank International”,
New York Branch, as administrative agent for the Facility Lenders, and
Cöoperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank International”,
New York Branch, as collateral agent for the Agent and the Secured Parties (the
“Collateral Agent”) and acknowledged and agreed to by The Chalone Wine Group,
Ltd., a California corporation (the “Company”), Edna Valley Vineyard, a
California general partnership, SHW Equity Co,, Canoe Ridge Vineyard, LLC, Canoe
Ridge Winery, Inc., and Staton Hills Winery Company Limited, a Washington
corporation (as amended, restated, supplemented or otherwise modified through
the date hereof, the “Intercreditor Agreement”; capitalized terms used herein
and not otherwise defined shall have the meaning provided in the Intercreditor
Agreement).

          The parties wish to enter into this letter to amend the Intercreditor
Agreement to add as Collateral thereunder a parcel of real property owned by the
Company described on Exhibit A to that certain Deed of Trust dated as of the
date hereof from the Company to North American Title Company, as Trustee, for
the benefit of Cöoperatieve Centrale Raiffeisen - Boerenleenbank B.A., “Rabobank
International”, New York Branch. The parties hereto acknowledge and agree that
Exhibit B to the Intercreditor Agreement is hereby deleted in its entirety and
replaced with Exhibit B attached hereto.

          The parties acknowledge that concurrently herewith (a) the Company and
the Noteholders are entering into a Second Amendment to Amended and Restated
Note Purchase Agreement dated as of May 11, 2004, and (b) the Company, the
Agent, Rabobank International as issuing fender and swingline lender and the
Facility Lenders are entering into an Amended and Restated Credit Agreement
dated as of May 11, 2004 and in connection therewith the Company, each

 

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Farm Credit Services of America, et al.
May —, 2004
Page 2

Subsidiary Guarantor, and the Collateral Agent are entering into an amendment
and restatement of the Security Agreements. The parties hereto hereby consent to
such amendments and the transactions contemplated thereby.

          In consideration of the foregoing amendment, each of the Collateral
Agent and each Secured Party hereby represents and warrants that, both before
and giving effect to such amendment, the representations and warranties of such
party set forth in Section 3.2 of the Intercreditor Agreement are true and
correct as if made on the date hereof, except any such representation or
warranty which speaks to a specific date.

          Notwithstanding anything contained in the foregoing to the contrary,
the amendment made pursuant hereto will not in any way operate as an amendment
or modification of the Intercreditor Agreement except as expressly provided
herein.

          This letter agreement may be executed in counterparts and each such
counterpart shall be one and the same agreement. The parties agree that
facsimile signatures shall be deemed to be original signatures for the purposes
of this letter agreement.

          This letter agreement shall be governed and construed in accordance
with the laws of the State of New York, without giving effect to any conflicts
of laws principles.

[signature page follows]

 

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  Very truly yours,  

  Cöoperatieve Centrale Raiffeisen-Boerenleenbank
B.A., “Rabobank International”, New York
Branch, As Agent
 
   

  By: /s/ John J. McHugh                                      
 
   

  Name: John J. McHugh

 
   

  Its:  Executive Director  
 
  By: /s/ Rebecca O. Morrow                                      
 
   

  Name: Rebecca O. Morrow
 
   

  Its:  Executive Director  
 
   

  Cöoperatieve Centrale Raiffeisen-Boerenleenbank
B.A., “Rabobank International”, New York
Branch, As Collateral Agent
 
   

  By: /s/ John J. McHugh                                      
 
   

  Name: John J. McHugh

 
   

  Its:  Executive Director
 
   

  By: /s/ Rebecca O. Morrow                                      
 
   

  Name: Rebecca O. Morrow

 
   

  Its:  Executive Director

 

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      ACKNOWLEDGED AND AGREED TO THIS 11th  DAY OF MAY, 2004:
 
   
 
    Farm Credit Services Of America, PCA
 
   
By:
  /s/ Bruce P. Rouse

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Name:
  Bruce P. Rouse
Its:
  Vice President
 
    Farm Credit Services of Minnesota Valley, PCA, DBA FCS Commercial Finance
Group
 
   
By:
  /s/ James M. Grafing

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Name:
  James M. Grafing
Its:
  SVP Syndicated Finance
 
    Cöoperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank
International”, New York Branch, as a Facility Lender
 
   
By:
  /s/ John J. McHugh

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Name:
  John J. McHugh
Its:
  Executive Director
 
   
By:
  /s/ Rebecca O. Morrow

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Name:
  Rebecca O. Morrow
Its:
  Executive Director
 
    Farm Credit West, FLCA
 
   
By:
  /s/ Mark Littlefield

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Name:
  Mark Littlefield
Its:
  Senior Vice President
 
    U.S. Bank National Association
 
   
By:
  /s/ Alan V. Schuler

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Name:
  Alan V. Schuler
Its:
  Vice President

 

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      Comerica Bank
 
   
By:
  /s/ Misako Noda

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Name:
  Misako Noda
Its:
  Vice President

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ACKNOWLEDGED AND AGREED TO THIS 11th DAY OF MAY, 2004:

      THE CHALONE WINE GROUP, LTD.
 
   
By:
  /s/ Shawn Blom

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Title:
  VP and CFO
 
    EDNA VALLEY VINEYARD
 
   
By:
  The Chalone Wine Group
Managing General Partner  
By:
  /s/ Shawn Blom

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Title:
  VP and CFO
 
    SHW EQUITY CO.
 
   
By:
  /s/ Shawn Blom

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Title:
  VP and CFO
 
    CANOE RIDGE VINEYARD LLC
 
   
By:
  /s/ Shawn Blom

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Title:
  VP and CFO
 
    CANOE RIDGE WINERY, INC.
 
   
By:
  /s/ Shawn Blom

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Title:
  VP and CFO
 
    STATON HILLS WINERY COMPANY LIMITED
 
   
By:
  /s/ Shawn Blom

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Title:
  VP and CFO

 

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Exhibit B
to
Intercreditor Agreement

Real Property

     Real Property

     All of the Mortgaged Property (as defined in the subject Deed of Trust)
described in each Deed of Trust in each of the following locations:

     Deeds of Trusts executed by the Company and/or various Subsidiary
Guarantors for real properties bearing the following APN designations in the
States of California and Washington:

APN

047-272-012

047-272-011

047-272-016

047-272-018

027-470-030

127-011-001

053-070-037

417-181-053

417-201-001

417-181-029

417-181-030

417-181-036

417-181-052

417-201-002

36-07-19-51-2701

36-07-19-51-2702

36-07-19-51-2601

36-07-19-51-2602

1-2554-400-0004-001

 

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1-3055-200-0001-001

1-2554-400-0003-000

191221-41002

191211-42001

191221-13001

191221-14001

191221-31013

027-470-007