**EXECUTIVE
      EMPLOYMENT AGREEMENT**







EXECUTIVE
      EMPLOYMENT AGREEMENT (this "Agreement") is effective as of 1 st 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
      18 th day of
      April, 2007.





**EXECUTIVE**
            **MENDOCINO
                BREWING CO., INC.****YASHPAL SINGH**
            **SURY
                RAO PALAMAND**
              **PRESIDENT**
              **COMPENSATION
                COMMITTEE**