EXECUTIVE
      EMPLOYMENT AGREEMENT

                   

                


        

         

      

    

    EXECUTIVE
EMPLOYMENT AGREEMENT (this "Agreement") is effective as of 1st day of
January, 2007, between Mendocino Brewing Company, Inc., 1601, Airport Road,
Ukiah, CA 95482 ("Company") and Mr.Yashpal Singh ("Executive")

     

    WITNESSETH

    


    WHEREAS,
Executive possesses professional qualifications, experience and detailed
knowledge of the company's business; and

    


    WHEREAS,
company recognizes Executive's importance to the growth and success of Company
and desires to assure Executives contributions and to compensate him in a manner
which it has determined will reinforce and encourage his continued attention and
dedication; and

    


    WHEREAS
Company is desirous of extending the employment agreement entered as of May 1,
1999 with the Executive; and

    


    WHEREAS
Executive is desirous of committing himself to continue to serve Company on the
terms herein provided; and

    


    NOW,
THEREFORE, in consideration of forgoing and of the respective covenants and
agreements of the parties herein contained, the parties hereto hereby agree as
follows:

     

    1)    EMPLOYMENT

    
      	
               
      

            	
              a)

            	
              Company hereby continues to
      employ Executive for the further period commencing on January 1, 2007 for
      a period of four years, unless such employment is sooner terminated as
      provided in this Agreement.

            


    

    
      	
               
      

            	
              b)

            	
              Executive
      hereby accepts employment under this Agreement and agrees to devote all
      his best efforts and his full time and attention exclusively to the
      business and affairs of Company. During the term of this Agreement,
      Executive shall report to, and shall perform such duties and
      responsibilities as may be assigned to him by the Board of Directors of
      the Company (“Board”) or such other person as the Board or Chairman may
      designate. Company shall retain full direction and control of the manner,
      means and methods by which Executive performs the services for which he is
      employed hereunder and of the places at which such services shall be
      rendered.

            


    

    
      	 	
              c)

            	
              Executive
      shall observe and comply with Company's rules and
    regulations.

            


    

     

    2)
DESIGNATION AND COMPENSATION

     

    a)      Designation
and Base Salary

    The Board
in their meeting held on January 14, 2005 unanimously passed a resolution
designating the Executive as President and Chief Executive Officer. The base
salary of the Executive shall be at the annual rate of $189,000 with effect from
January 1, 2007.The salary is payable in accordance with the Company's standard
payoff practices as in effect from time to time, prorated in any partial year of
employment.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    


    Executive
shall be entitled for an annual salary increase, based on a review of
performance and such increases will be determined by the Board of Directors of
the company in its sole discretion.

    


    b)      Reimbursement

    Executive
shall be entitled to reimbursement for reasonable travel and other business
expenses incurred in the performance of his duties under this Agreement in
accordance with the general policy of Company, as it may change from time to
time, provided the Executive provides an itemized account together with
supporting receipts for such expenditures in accordance with the requirements
set forth in the Internal Revenue Code of 1986, as amended, and related
regulations, subject to the right of Company at any time to place reasonable
limitations on such expenses thereafter to be incurred or
reimbursed.

    


    c)      Withholding

    Company
shall be entitled to withhold from any compensation paid or payable hereunder
such amounts on account of payroll taxes, income taxes and other similar matters
as are required to be withheld by applicable law.

    


    d)      Medical

    Executive
and his immediate dependent family members in USA will be provided full coverage
for medical, dental and vision.

    


    e)      Life
Insurance

    Executive
shall be reimbursed for a policy of life insurance for the face value of
$250,000.

    


    f)      Vacation

    Executive
shall be entitled to five weeks paid vacation in each calendar year. Vacation
can be accrued up to twenty weeks, if not availed. The Company will pay for
business class to & fro Airfare for the Executive and his family to visit
India. Executive shall also be entitled to 4 days each of Sick and Personal
leave per year. Vacation leave is to receive prior formal approval of concerned
officers of the company. In case Executive or his family members are unable to
avail vacation and Airfare in a particular year, then the same can be availed in
any subsequent period.

    


    
      g)      Bonus Executive shall be
entitled up to 10% Bonus, paid annually based on performance
review.

    

    


    
      h)     
Benefit
Plans

    

    Subject
to any limitations imposed by applicable law Executive shall be eligible to
participate in all Company employee benefit programs in substantially the same
manner and to substantially the same extent as other company employees.
Executive will be provided with company cars.

     

    3) TERMINATION / EXTENSION OF EMPLOYMENT BY THE
COMPANY

     

    
      	
              a)

            	
              Company
      may terminate this agreement with or without cause at any time giving
      twelve months notice or compensation lieu thereof in
    lumpsum

            


    

    
       

      
        	
                b)

              	
                Executive
      may terminate this Agreement after giving notice of twelve
      months.

              


      

    

     

    
      	
              c)

            	
              Company
      may extend the term of Agreement with the written consent of the Executive
      four months prior to expiration of this agreement for a minimum period of
      one year.

            


    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              d)

            	
              Company
      shall provide business class airfare for the Executive and his family to
      return to India, in addition to transportation of his belongings from the
      place of his residence in USA to the place of his residence in India in
      event of completion of term of this Agreement or termination of this
      agreement on account of Clause 3(a) or
3(b).

            


    

    


    4)  DEATH OF EXECUTIVE

    In the
event of the death of Executive during the period of his employment herewith,
Executive's salary herewith shall be paid up through the end of next month in
which the date of death occurs. In such an event, as provided in clause 3 d)
above the Company will pay for transportation of Executive's belongings and
business class airfare for his family to India.

    


    5)  MISCELLANEOUS

    


    
      	
              a)

            	
              Governing Law This
      Agreement shall be governed by and constructed according to the laws of
      the State of California without regard to the principles thereof regarding
      conflict of laws.

            


    

    


    
      	
              b)

            	
              Amendment This Agreement
      may be amended only by a writing signed by Executive and by Company's
      Chairman.

            


    

    
      


    

    c)     Construction

    The
headings and captions of this Agreement are provided for convenience only and
are intended to have no effect in construing or interpreting this Agreement. The
language in all parts of this Agreement shall be in all cases construed
according to its fair meaning and strictly for or against Company or
Executive.

    


    d)     Attorneys'
Fees

    Should
either party hereto, or any heir, personal representative, successor or assign
of either party hereto, resort to litigation or arbitration to enforce this
Agreement, the party or parties prevailing in such litigation or arbitration to
addition to such other relief as may be granted, to recover its or their
reasonable attorneys fees and costs in such litigation from the party or parties
against whom enforcement was sought.

    


    e)     Notices

    Any
notice, request, consent or approval required or permitted to be given under
this Agreement or pursuant to law shall be sufficient if in writing, and if and
when delivered personally, by facsimile or sent by certified or registered mail,
with postage prepaid, to Executive's residence ( as noted in Company's records
), or to Company's principal executive office, as the case may be.

    


    IN
WITNESS WHEREOF, the undersigned have executed this Agreement on the 18th day of
April, 2007.

    


    
      
        	
                EXECUTIVE

              	
                MENDOCINO BREWING CO.,
      INC.

              
	
                YASHPAL
      SINGH

              	
                SURY
      RAO PALAMAND

              
	 
      	
                PRESIDENT

              
	 
      	
                COMPENSATION
      COMMITTEE