Document:

Unassociated Document

    EXHIBIT
      10.44

    [LOGO]    
      Constellation

     

    Constellation
      Brands, Inc.

    370
      Woodcliff Drive, 3rd Floor

    Fairport,
      New York  14450

    phone
      585-218-3600

    fax
      585-218-3601

    
      
        	 

      

    

     

    16
      February 2006

    

    

    Mr
      Stephen Millar

    CEO
&
      President

    Constellation
      Wines

    Reynell
      Road

    REYNELLA
      SA 5161

    

    Dear
      Steve

    

    This
      letter is to confirm our agreement with respect to the termination of your
      employment by Hardy Wine Company Limited (“Hardys”).

    

    
      	
              1.

            	
              As
                a result of the restructuring of the business of Constellation Brands,
                Inc. (“Constellation”), your position as Chief Executive Officer and
                President of Constellation Wines, a division of Constellation, will
                cease
                as of 28 February 2006. As a consequence, your contract of service
                with
                Hardys dated 11 June 1996, as varied by letter agreement with
                Constellation in May 2003 (“service contract”) is to be terminated in the
                manner set out in this letter.

            

    

    

    
      	
              2.

            	
              On
                1 March 2006, you will commence paid leave and remain on leave until
                9
                February 2007. This
                paid leave will have been earned as of 28 February 2006 and accrued
                for by
                Hardys.
                On
                9 February 2007,
                your employment by Hardys will cease and you will be paid all your
                entitlements under the service contract, together with an additional
                bonus
                of US$100,000 in recognition of your contribution to Constellation’s
                business, less all necessary tax withholdings, as set out on the
                attached
                sheet. Payment of your entitlements and
                special bonus
                is
                not contingent on future service requirements after 28 February
                2006.

            

    

    

    
      	 	
              These
                amounts are acknowledged to fully and finally discharge all Hardys’ and
                Constellation’s obligations to you under your service contract and at law,
                other than the indemnities to which you are entitled as an employee
                and
                officer of Hardys. Your obligations of non-competition and confidentiality
                to Hardys and Constellation will continue for 12 months after 9 February
                2007.

            

    

    

    
      	
              3.

            	
              Your
                entitlements to retirement benefits under the Hardy Wine Company
                Superannuation Plan will be provided in accordance with the terms
                of the
                Plan. You should make your own arrangements with the Trustee as to
                how
                those benefits are to be dealt
                with.

            

    

    

    
      	
              4.

            	
              You
                will not be eligible to receive future awards pursuant to Constellation’s
                Long-Term Stock Incentive Plan or Incentive Stock Option Plan. As
                the
                holder of existing options, you or your personal representative will
                have
                12 months to exercise such options after the sooner of 9 February
                2007 or
                the 

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      [LOGO]    
        Constellation

       

      Constellation
        Brands, Inc.

      370
        Woodcliff Drive, 3rd Floor

      Fairport,
        New York  14450

      phone
        585-218-3600

      fax
        585-218-3601

      
        	 

      

    

     

     

    
      
        
          
            	 	 date
                    of your death, as specified under the Long-Term Stock Incentive
                    Plan or
                    Incentive Stock Option Plan.

          

           

        

      

    

    
      	
              5.

            	
              During
                your period of leave you will have no specific duties but you will
                make
                yourself available at my request to provide counsel and guidance
                as a
                non-executive chairman of Constellation Wines in various wine-related
                projects that may be considered from time to
                time.

            

    

    

    
      	
              6.

            	
              The
                benefits and entitlements payable under the agreement evidenced by
                this
                letter will enure for the benefit of your heirs, executors, administrators
                and assigns.

            

    

    

    Please
      confirm that this letter and the attached sheet correctly record the above
      matters by signing and returning the duplicate of this letter.

    

    Yours
      sincerely

    
 

    /s/
      Robert Sands            

    Robert
      Sands

    President
      & Chief Operating Officer

    Constellation
      Brands, Inc.

     

     

    

      
        	
                Agreed.

              
	 
	
                /s/
                  S B Millar            

              
	
                S
                  B
                  Millar

              
	
                Date: 
                  17 February 2006

              

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      [LOGO]    
        Constellation

       

      Constellation
        Brands, Inc.

      370
        Woodcliff Drive, 3rd Floor

      Fairport,
        New York  14450

      phone
        585-218-3600

      fax
        585-218-3601

       

      
        	 

      

       

      
        Summary

      

       

      
        
          	 	
                  Millar

                
	 	 
	
                  3
                    Months Notice (package)

                	
                  $286,528

                
	
                  Package
                    24/18 months

                	
                  $2,292,224

                
	
                  Bonus
                    for 24/18 months

                	
                  $1,103,232

                
	
                  Special Bonus

                	
                  $135,135

                
	 	
                  $3,817,119

                
	 	 

        

      

       

       

      
        
          	
                  09-Feb-07

                	 	 	
                  Salary
                    Package

                	 
	
                  S
                    B
                    Millar

                	
                  101

                	 	
                  Base

                	
                  919,360
                    

                
	
                  DOB

                	
                  18-Nov-43
                    

                	 	
                  Super

                	
                  183,872
                    

                
	
                  Age

                	
                  63.2
                    

                	 	
                  Car

                	
                  40,000
                    

                
	
                  Hired

                	
                  01-Sep-91
                    

                	 	
                  Wine

                	
                  2,380
                    

                
	
                  Service

                	
                  15.4
                    

                	 	
                  Phone

                	
                  500
                    

                
	 	 	 	 	
                  1,146,112
                    

                
	 	 	 	 	
                

        

      

       

      
        
          	
                  Bonus
                    @ FY06 salary base @ Target 60%

                	
                  551,616
                    

                
	 	 
	 	
                  09-Feb-07
                    

                
	
                  Tax-free
                    part bona fide redundancy - $6,491+$3246 * completed years. Tax
                    0%

                	
                  55,181
                    

                
	
                  Lowrate
                    Threshhold - ETP > 55 years. Tax 16.5%

                	
                  129,751
                    

                
	 	
                  184,932
                    

                
	 	
                

        

      

       

      
        
          	
                  Reasonable
                    Benefit Limit

                	
                  Lump
                    Sum

                	
                  848,946
                    

                
	 	
                  Pension

                	
                  1,297,886
                    

                

        

      

       

      
        Payment
          as at 9th February 07 with accrued leave paid on a fortnightly
          basis

        
          
            
              	
                      Entitlements
                        as at

                    	
                      09-Feb-07
                        

                    	 	 	 	 	 	 	 	 	 
	 	 	
                      Hours

                    	 	
                      Fortnightly
                        Pays

                    	 	
                      Gross

                    	 	
                      Tax

                    	 	
                      Net

                    
	
                      Annual
                        Leave

                    	 	
                      1104.0
                        

                    	 	 	 	 	 	 	 	 
	
                      Long
                        Service Leave

                    	 	
                      800.0
                        

                    	 	 	 	 	 	 	 	 
	
                      Public
                        Holidays

                    	 	
                      80.0
                        

                    	 	
                      24.8

                    	 	
                      876,878
                        

                    	 	
                      (409,795)

                    	 	
                      467,083
                        

                    
	 	 	 	 	 	 	 	 	 	 	 
	
                      Leave
                        Taken

                    	 	
                      1984.0
                        

                    	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                      Eligible
                        Termination Payments as at

                    	
                      09-Feb-07
                        

                    	 	 	 	 	 	 	 	 	 
	
                      3
                        months pay in lieu of notice - Package

                    	 	
                      286,528
                        

                    	 	
                      tax
                        free

                    	 	
                      55,181
                        

                    	 	
                      -
                        

                    	 	
                      55,181
                        

                    
	 	 	 	 	
                      low
                        tax rate 16.5%

                    	 	
                      129,751
                        

                    	 	
                      (21,409)

                    	 	
                      108,342
                        

                    
	 	 	 	 	
                      Balance
                        31.5%

                    	 	
                      101,596
                        

                    	 	
                      (32,003)

                    	 	
                      69,593
                        

                    
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                      Redundancy
                        - 24 Months Package

                    	 	
                      2,292,224
                        

                    	 	
                      31.5%

                    	 	
                      2,292,224
                        

                    	 	
                      (722,051)

                    	 	
                      1,570,173
                        

                    
	 	 	 	 	 	 	 	 	 	 	 
	
                      Redundancy
                        - Bonus calculation 2 years

                    	 	
                      1,103,232
                        

                    	 	
                      31.5%

                    	 	
                      1,103,232
                        

                    	 	
                      (347,518)

                    	 	
                      755,714
                        

                    
	
                      Special
                        Bonus

                    	
                      USD
                        100,000

                    	
                      @74
                        cents

                    	 	 	 	
                      135,135
                        

                    	 	
                      (42,568)

                    	 	
                      92,568
                        

                    
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
                      3,817,119

                    	 	
                      (1,165,548)

                    	 	
                      2,651,571Unassociated Document

    Exhibit
      10.46

    

    Description
      of Compensation Arrangements for Certain Executive Officers

    

    Following
      is a description of the compensation arrangements for each of the Named
      Executive Officers (as defined in Item 402(a)(3) of Regulation S-K) of
      Constellation Brands, Inc. The Company’s Named Executive Officers are (1)
      Richard Sands, (2) Robert Sands, (3) Stephen B. Millar, (4) Alexander L. Berk,
      and (5) Thomas S. Summer. Specific compensation information for each of these
      individuals for the fiscal year ended February 28, 2006 (“FY 2006”) will be
      disclosed in the Company’s proxy statement for its 2006 annual meeting and other
      specific compensation information is disclosed from time to time as required
      by
      Form 8-K.

    

    Generally,
      the compensation for these executive officers consists of base salary, annual
      cash bonus compensation, long-term incentive compensation, the right to
      participate in various benefit plans sponsored by the Company or a subsidiary
      of
      the Company, and perquisites. Each of the Named Executive Officers, other than
      Messrs. Millar and Berk, is an “at-will” employee of the Company and serves at
      the pleasure of the Board of Directors. Mr. Berk is employed pursuant to an
      employment contract, which is filed through incorporation by reference as
      Exhibits 10.2 and 10.3 to this Form 10-K for FY 2006 (the “Form 10-K”). As
      previously announced, Mr. Millar retired from his position of Chief Executive
      Officer, Constellation Wines, effective February 28, 2006, and his role as
      an
      executive officer. While he has retired from this position, he has retained
      an
      employment relationship with the Company and his employment contract is filed
      with or through incorporation by reference as Exhibits 10.41 through 10.44
      to
      the Form 10-K. Mr. Summer’s original offer letter also is filed through
      incorporation by reference as Exhibit 10.38 to the Form 10-K. 

    

    In
      the
      course of the employment relationship with each of the Company’s executive
      officers, including each Named Executive Officer, the Company communicates
      to
      the executive officers the amount of base salary, target bonus opportunity,
      and
      long-term incentive compensation approved by the Human Resources Committee
      of
      the Board of Directors, which compensation is subject to change in the
      discretion of the Human Resources Committee. The following are the base salaries
      (on an annual basis) of the Company’s Named Executive Officers*
      for FY
      2006 and the fiscal year ending February 28, 2007 (“FY 2007”):

     

    
      
        	
                Name
                  and Title

              	
                FY
                  2006 Base Salary

              	
                FY
                  2007 Base Salary

              
	 	 	 
	
                Richard
                  Sands,

                Chairman
                  of the Board and Chief Executive Officer

              	
                $1,000,000            

              	
                $1,040,000            

              
	 	 	 
	
                Robert
                  Sands,

                President
                  and Chief Operating Officer

              	
                $820,000            

              	
                $852,800            

              
	 	 	 
	
                Alexander
                  L. Berk,

                Chief
                  Executive Officer, Constellation Beers and Spirits

              	
                $584,768            

              	
                $608,159            

              
	 	 	 
	
                Thomas
                  S. Summer,

                Executive
                  Vice President and Chief Financial Officer

              	
                $441,334            

              	
                $487,675            

              

      

    

    ___________________________

    *
      The
      Company has previously announced that the remaining Named Executive Officer,
      Stephen Millar, retired from his position of Chief Executive Officer,
      Constellation Wines, effective February 28, 2006. While he has retained an
      employment relationship with the Company, no action was taken with respect
      to
      his FY 2007 base salary. As previously reported, Mr. Millar’s base salary in FY
      2006 was $726,294. Since Mr. Millar is paid in Australian dollars, this amount
      was converted into United States dollars at a conversion rate of Australia
      A$1 =
      US$ 0.79.

    

    

    The
      annual cash bonus compensation for each of the Named Executive Officers is
      determined by the Human Resources Committee pursuant to the Company’s Annual
      Management Incentive Plan. Pursuant to that Plan, the Committee would award
      cash
      bonuses to participants in the event the Company attains one or more pre-set
      performance targets. The Annual Management Incentive Plan and the 2006 Fiscal
      Year Award Program thereunder are filed through incorporation by reference
      as
      Exhibits 10.19 through 10.22 to the Form 10-K.

    

    Long-term
      incentive awards in the form of options are another element of compensation
      that
      the Human Resources Committee makes available to employees, including Named
      Executive Officers. Long-term incentive awards in the form of, among others,
      stock options, stock appreciation rights and restricted stock are available
      for
      grant under the Company’s Long-Term Stock Incentive Plan and the Company’s
      Incentive Stock Option Plan. These plans and the form of Terms and Conditions
      Memorandum provided to recipients of options under each of these plans are
      filed
      with or through incorporation by reference as Exhibits 10.4 through 10.11 and
      10.14 through 10.18 to the Form 10-K.

    

    Named
      Executive Officers also are eligible to participate in the Company’s 1989
      Employee Stock Purchase Plan, an Internal Revenue Code Section 423 plan which
      allows employees to purchase shares of Company Class A Common Stock at a
      discount through salary deductions. This plan is filed through incorporation
      by
      reference as Exhibit 99.1 to the Form 10-K.

    

    Named
      Executive Officers who are resident in the United States are eligible to
      participate in the Company’s 401(k) and Profit Sharing Plan, an Internal Revenue
      Code Section 401(k) plan, under which the Company can make to each participant
      a
      matching contribution and a profit sharing contribution. That plan is generally
      available to salaried employees. 

    

    In
      addition, those Named Executive Officers who are resident in the United States
      also are eligible to participate in the Company’s Supplemental Executive
      Retirement Plan and the Company’s 2005 Supplemental Executive Retirement Plan.
      Mr. Millar, who is a resident of Australia, is eligible to participate in the
      Hardy Wine Company Superannuation Plan. These three plans are filed through
      incorporation by reference as Exhibits 10.25 through 10.29 and 10.45 to the
      Form
      10-K. 

    

    The
      current executive officers, including those who are Named Executive Officers,
      also receive customary employee benefits, such as the ability to participate
      in
      the Company’s health insurance program, long-term and short-term disability
      insurance programs, Paid Time Off (vacation/sick leave), and life insurance
      programs. In addition, the current executive officers, including those who
      are
      Named Executive Officers, also have the ability to receive an expanded annual
      physical health review on a voluntary basis.

    

    Mr.
      Berk
      has use of a Company automobile and a club membership. The Company’s current
      executive officers, including those who are Named Executive Officers, are
      permitted to make personal use of the corporate aircraft. They also receive
      complimentary wine and spirits products, are eligible to participate in a
      matching contribution program of the Company whereby they can direct a portion
      of the Company’s charitable contributions not in excess of $5,000, and also
      receive miscellaneous nominal benefits. During FY 2006, Mr. Millar had use
      of a
      Company automobile and received air transportation services and telephone
      services.

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