Document:

SEVENTH AMENDMENT TO CONVERTIBLE PROMISSORY NOTE

MENDOCINO BREWING COMPANY, INC.

 

This Seventh Amendment to Convertible Promissory Note (this "Amendment") is effective as of June 30, 2011 by and between United Breweries of America, Inc., a Delaware corporation ("Holder") and Mendocino Brewing Company, Inc., a California corporation (the "Company").

 

RECITALS

 

A.           The Company issued a convertible promissory note (the "Note") to Holder in the principal amount of Four Hundred Thousand Dollars ($400,000) dated March 2, 2005.

 

B.           The Holder and the Company entered into the First Amendment to Convertible Promissory Note effective August 31, 2006 as amended by the Second Amendment to Convertible Promissory Note effective December 31, 2006, the Third Amendment to Convertible Promissory Note effective June 30, 2007, the Fourth Amendment to Convertible Promissory Note effective June 30, 2008, the Fifth Amendment to Convertible Promissory Note effective June 30, 2009 and the Sixth Amendment to Convertible Promissory Note, which provide that the term of the Note made by the Company in favor of Holder was extended until June 30, 2011.

 

C.           Subject to the terms and conditions of this Amendment, the parties now wish to further extend the term of the Note.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby agreed, the parties agree as follows:

 

1.           Extension of Term.  The first sentence of Paragraph 1 of the Note is hereby amended and restated to read as follows:

 

"Mendocino Brewing Company, Inc., a California corporation having its principal office at 1601 Airport Road, Ukiah, California 95482 and any successor (the "Company"), for value received, promises (i) to pay to United Breweries of America, Inc., a Delaware corporation or to its registered successors or assigns (the "Holder") the principal sum of Four Hundred Thousand Dollars ($400,000.00) on presentation and surrender of this Convertible Note ("Note") on June 30, 2012 (the "Maturity Date"), such Maturity Date to be automatically extended for successive one year terms; provided, however, that either the Company or Holder may, upon no more than sixty (60) and no fewer than thirty (30) days written notice prior to the end of any such term, elect that such term shall not be automatically extended, and (ii) to pay interest on that principal sum to Holder at a rate equal to the lesser of (x) one and one-half percent (1.5%) per annum above the prime rate offered from time to time by the Bank of America in San Francisco, California, or (y) ten percent (10%)."

 

  

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2.           Clarification Regarding Extension Period. For the purposes of clarity, Holder and the Company agree that the extension period referred to in Section 3(d) of the Note began on September 2, 2006.

 

3.           Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of California, without regard to the conflicts of laws principles of that or any other jurisdiction.

 

4.           Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, and all taken together shall constitute one and the same instrument.

 

5.           Miscellaneous.  This Amendment contains all of the agreements, conditions, promises and covenants between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements, representations or understandings with respect to the subject matter hereof.  In the event of any conflict between the terms of the Note and this Amendment, the terms of this Amendment shall govern. Except as set forth in this Amendment, the terms of the Note shall remain in full force and effect. This Amendment may not be amended, modified, altered or otherwise changed in any respect except by written agreement signed by authorized representatives on behalf of Borrower and Holder.  If any one or more of the provisions contained in this Amendment shall be invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of the remaining provisions contained herein shall not in any way be affected or impaired.

 

[signature page to follow]

  

  

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IN WITNESS WHEREOF, duly authorized representatives of each of the parties hereto have executed and delivered this Amendment, to be effective as of the Effective Date first stated above.

 

	
Borrower:

	  	
Holder:

	  	  	  
	
MENDOCINO BREWING COMPANY, INC.

	  	
UNITED BREWERIES OF AMERICA, INC.

	
a California corporation

	  	
a Delaware corporation

	  	  	  	  	  
	
By:

	
/s/ N. Mahadevan

	  	
By:

	
/s/ Anil Pisharody

	  	  	  	  	  
	
Name:

	
 N. Mahadevan

	  	
Name:

	
Anil Pisharody

	  	  	  	  	  
	
Title:

	
 Chief Financial Officer and Secretary

	  	
Title:ELEVENTH AMENDMENT TO

EXTENSION OF TERM OF NOTES UNDER MASTER LINE OF CREDIT AGREEMENT

This Eleventh Amendment to Extension of Term of Notes under Master Line of Credit Agreement (this "Amendment") is entered into to be effective as of June 30, 2011 (the "Effective Date") by and between Mendocino Brewing Company, Inc., a California corporation ("Borrower"), and United Breweries of America, Inc., a Delaware corporation ("Lender").

 

RECITALS

A.           Borrower and Lender entered into an Extension of Term of Notes Under Master Line of Credit Agreement dated February 14, 2002, and amended as of August 15, 2002, March 31, 2003, August 14, 2003, August 14, 2004, August 31, 2005, December 31, 2006, June 30, 2007, June 30, 2008, June 30, 2009 and June 30, 2010 (the "Original Agreement"), which provides that the terms of certain of the Notes made by Borrower in favor of Lender shall be extended until June 30, 2011.

 

B.           Subject to the terms and conditions of this Amendment, the parties now wish to further extend the terms of certain of the Notes.

 

C.           Any capitalized terms not otherwise defined herein shall have the meanings set forth in the Original Agreement.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is acknowledged, Borrower and Lender agree as follows:

 

1.           Extension of Term.  Section 1 of the Original Agreement is amended to read as follows:

 

"The Notes provide that Lender has the right, at any time on or after the respective maturity dates of the Notes, to convert the Notes into shares of Borrower's common stock.  However, Section 3 of the Notes provides that in the event that Lender has not converted the entire principal amount of any Note on or before its respective maturity date, Lender has the right to extend the term of such Note for a period of time mutually agreed upon between Lender and Borrower.  The parties hereby modify their previous agreement and agree to extend the term of each of the Notes itemized Nos. 1 through 13 on Exhibit A, effective as of the maturity date of each respective Note, for a period of time ending on June 30, 2012, such term to be automatically renewed for successive one year terms; provided, however, that either Lender or Borrower may, upon no more than sixty (60) and no fewer than thirty (30) days written notice prior to the end of any such term, elect that such term shall not be automatically renewed."

 

2.           Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of California, without regard to the conflicts of laws principles of that or any other jurisdiction.

 

  

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3.           Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, and all taken together shall constitute one and the same instrument.

 

4.           Miscellaneous.  This Amendment, in connection with the Original Agreement, contains all of the agreements, conditions, promises and covenants between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements, representations or understandings with respect to the subject matter hereof.  In the event of any conflict between the terms of the Original Agreement and this Amendment, the terms of this Amendment shall govern. Except as set forth in this Amendment, the terms of the Original Agreement shall remain in full force and effect.  This Amendment may not be amended, modified, altered or otherwise changed in any respect except by written agreement signed by authorized representatives on behalf of Borrower and Lender.  If any one or more of the provisions contained in this Amendment shall be invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of the remaining provisions contained herein shall not in any way be affected or impaired.

 

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IN WITNESS WHEREOF, duly authorized representatives of each of the parties hereto have executed and delivered this Amendment, to be effective as of the Effective Date first stated above.

 

	
Borrower:

	
    

	
Lender:

	  	  	  
	
MENDOCINO BREWING COMPANY, INC.

	  	
UNITED BREWERIES OF AMERICA, INC.

	
a California corporation

	  	
a Delaware corporation

	  	  	  	  	  
	
By:

	
/s/ N. Mahadevan

	  	
By:

	
/s/ Anil Pisharody

	  	  	  	  	  
	
Name:

	
N. Mahadevan

	  	
Name:

	
Anil Pisharody

	  	  	  	  	  
	
Title:

	
Chief Financial Officer and Secretary

	  	
Title:

	  

 

  

3FIRST AMENDED

AGREEMENT FOR USE OF OFFICE

AND ADMINISTRATIVE SERVICES

This Amended Agreement, entered into this 26th day of July, 2011 by and between Banyan Rail Services, Inc. formerly known as BHIT, Inc., (“Banyan”) and Patriot Rail Corp., (“Patriot”).

Whereas:  The parties entered into an Agreement For Use of Office and Administrative Services dated September 4, 2009 (“Agreement”) wherein Patriot agreed to provide certain office and administrative services to Banyan at Patriot’s offices in Boca Raton, Florida (the “Suite”),  and

Whereas:  The parties now desire to amend the Agreement to provide for additional office space, to add additional services and to increase the rental amount.

Now Therefore, the parties agree as follows:

	
  

	
1.

	
Patriot shall permit Banyan full or partial use of furnished office space in the Suite sufficient for Banyan’s President, Vice President, Administration,  CFO, Controller and one staff person together with usual and customary office services including but not limited to secretarial services, receptionist services, telephone answering services, internet service,  coffee service, and copy service.  In addition Patriot will supply Human Resources and IT services to Banyan personnel.

	
  

	
2.

	
The monthly fee for such office use and services is Six Thousand Dollars ($6,000) per month payable in advance not later than the fifth day of each month.

	
  

	
3.

	
Either party shall have the right to terminate the Agreement for any reason upon thirty (30) days prior written notice to the other party.

	
  

	
4.

	
Banyan agrees to follow the rules and regulations of the building and any additional reasonable rules set forth during the term of the Agreement.

	
  

	
5.

	
Any notices shall be given as follows:

To:  Patriot Rail Crop.:

Patriot Rail Corp.

2255 Glades Road, Suite 342W

Boca Raton, FL 33431

Attn:  Gary O. Marino, CEO

 

  

  

  

 

To:  Banyan Rail Services, Inc.

Banyan Rail Services, Inc.

2255 Glades Road, Suite 342-W

Boca Raton, FL 33431

Attn:  Jon Ryan, CFO

	
  

	
6.

	
This Agreement shall not be amended or modified except in writing and agreed to by both parties.

In Witness Whereof, the parties have caused this Amended Agreement to be executed effective as of the date first above written.

 

	
Patriot Rail Corp.

	  	
Banyan Rail Services, Inc.

	  	  	  
	
By

	
/s/ Gary O. Marino

	  	
By

	
/s/ Jon Ryan

	
Gary O. Marino

	  	
Jon Ryan

	
Its: President and CEO

	  	
Its: Chief Financial Officer

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