REVOLVING NOTE
 
$2,750,000.00
November 16, 2006
 
Minneapolis, Minnesota

 
FOR VALUE RECEIVED, the undersigned, MENDOCINO BREWING COMPANY, INC., a
California corporation and RELETA BREWING COMPANY LLC, a Delaware limited
liability company (the "Borrowers"), JOINTLY AND SEVERALLY promise to pay to the
order of MARQUETTE BUSINESS CREDIT, INC., a Minnesota corporation (the "Lender),
on the Termination Date, or other due date or dates determined under the Loan
Agreement hereinafter referred to, the principal sum of TWO MILLION SEVEN
HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($2,750,000.00), or if less, the then
aggregate unpaid principal amount of the Revolving Loans (as such term is
defined in the Loan Agreement) as may be borrowed by the Borrowers under the
Loan Agreement. All Revolving Loans and all payments of principal thereon shall
be recorded by the holder in its records which records shall be conclusive
evidence of the subject matter thereof, absent manifest error.
 
The Borrowers further promise to pay to the order of the Lender interest on the
aggregate unpaid principal amount hereof from time to time outstanding from the
date hereof until paid in full at the rates per annum which shall be determined
in accordance with the provisions of the Loan Agreement. Accrued interest shall
be payable on the dates specified in the Loan Agreement.
 
All payments of principal and interest under this Note shall be made in lawful
money of the United States of America in immediately available funds at the
Lender's office at 1660 S. Hwy 100, Suite 146, Minneapolis, Minnesota
55416-1524, or at such other place as may be designated by the Lender to the
Borrowers in writing.
 
This Note is a promissory note of the type referred to in Section 3.5 of, and
evidences indebtedness incurred under, that certain Loan and Security Agreement
dated as of November 16, 2006 (together with all schedules and exhibits attached
thereto, herein, as it may be amended, modified or supplemented from time to
time, called the "Loan Agreement") among the Borrowers and the Lender, to which
Loan Agreement reference is made for a statement of the terms and provisions
thereof, including those under which the Borrowers are permitted and required to
make prepayments and repayments of principal of such indebtedness and under
which such indebtedness may be declared to be immediately due and payable.
Capitalized terms used but not otherwise defined herein shall have the meanings
given in the Loan Agreement.
 
All parties hereto, whether as makers, endorsers or otherwise, severally waive
presentment, demand, protest and notice of dishonor in connection with this
Note.
 
This Note is made under and governed by the internal laws of the State of
Minnesota.
 

       
MENDOCINO BREWING COMPANY, 
a California corporation
 
   
   
  By:       Its:      

 

       
RELETA BREWING COMPANY LLC,
a Delaware limited liability company
 
   
   
  By:       Its:      

 
 

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ACKNOWLEDGMENT
 
State of California
County of _________________
 
On November ____, 2006 before me, _________________________, the
_____________________ of MENDOCINO BREWING COMPANY, INC., a California
corporation personally appeared _____________________________ personally known
to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
 
WITNESS my hand and official seal.
 

 
Signature _______________________________
 
(Seal)
 
ACKNOWLEDGMENT
 
State of California
County of _________________
 
On November ____, 2006 before me, ________________________, the
_____________________ of RELETA BREWING COMPANY LLC, a New York limited
liability company, personally appeared ______________________________ personally
known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
 
WITNESS my hand and official seal.

 
Signature _______________________________
 
(Seal)
 
 
 

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