Document:

Exhibit 10.77

                     [National Indemnity Company Letterhead]

                                                               December 23, 2002

Mr. M C Watson
Chairman & CEO
Trenwick Managing Agents Limited
No. 2 Minster Court
Mincing Lane
London EC3R 7FL

Dear Michael:

This is to confirm our understanding in respect of National Indemnity Company's
("NICO") participation in Syndicate 839's 2003 Year of Account (YOA). Our
definitive agreement is subject to agreement on contract wordings.

You have advised us that Trenwick Managing Agents Ltd (TMA) wishes to exercise
the option granted by NICO on November 1, 2002 to provide stamp capacity in
respect of aviation business only. TMA wishes to call (pound)62.5 million of the
(pound)100 million of aviation stamp capacity now and to extend the option to
call the remaining (pound)37.5 million for a further period. Subject to the
following amendments, TMA's right to exercise its option over the remaining
stamp capacity under the option agreement is hereby extended to October 15,
2003:

i)    Each of Michael Watson, Jim Giordano and Gerard Knowles not to be under
      notice of termination of contract at the time of calling any remaining
      capacity.

ii)   At the time of calling any remaining capacity any two of Aon, Marsh and
      Willis shall be of the opinion that airline premiums for the 2003 year
      will be not less than $2.5 billion.

iii)  TMA and Syndicate 839 will not exercise the option granted by NICO to
      provide any qualifying quota share for the 2003 Underwriting Year.

iv)   A fee of(pound)100,000 for the amendment of the option payable by TMA
      which was received by NICO this date.

The remaining capacity may be called in whole or in part at any time up to the
new expiry date.

In addition, NICO further agrees to provide by way of Limited Liability Quota
Share (LLQS) of Acorn Corporate Capital Limited ("Acorn"), Acorn being the sole
member of Syndicate 2750 which in turn will provide by way of Syndicate Quota
Share, (pound)13.1

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million of stamp capacity for the whole account (excluding aviation) business of
Syndicate 839 for the 2003 YOA. The terms of this LLQS shall be the same as for
the 2002 LLQS except that in respect of the profit commission calculation,
reinsurer's expenses shall be increased from 15% to 20% and the profit
commission shall be reduced from 17.5% to 10%. The (pound)13.1 million of
capacity will be available solely for 2003 YOA and may not be used for any prior
or subsequent YOA under any condition.

The SQS shall be structured in such a way that:

      (i)   Syndicate 839 shall retain "Ultimate Net Losses" (being losses of
            Syndicate 839 on 2003 non-aviation business to the extent they
            exceed premiums, reinsurance recoveries and all other items of
            credit in relation thereto) up to an amount equal to the amount of
            the Oaks' Funds at Lloyd's as reduced by cash calls paid; and up to
            a maximum amount of US$197m, being the Oaks' aggregate risk assessed
            capital (not including the 3% "credit" allowed by Lloyd's in respect
            of 2002 capacity) in respect of their 2003 underwriting;

      (ii)  Syndicate 2750 shall pay 100% of the Ultimate Net Losses in excess
            of the retention described in (i) above until it has paid such
            percentage of all Ultimate Net Losses as relates to the (pound)13.1
            million non-aviation premium limit of Syndicate 839.

Acorn's FAL may be used for prior years of account as appropriate but may not be
used for the 2004 or for subsequent Underwriting Years to protect NICO's FAL
against any risk of being called upon for 2004 or subsequent Underwriting Years.

This understanding is subject to necessary prior written consents of the Society
of Lloyd's.

This understanding is also subject to TMA providing NICO with a copy of the
subordination agreements of all other Syndicate 839 Corporate Names to Acorn's
interests.

If this letter correctly states our understanding please arrange for TMA and
Acorn to countersign this letter and we will proceed to finalize our contract
wordings.

Regards,

/s/ Forrest N. Krutter

Forrest N. Krutter
Senior Vice PresidentExhibit 10.64

          CIT Business Credit                     T:      3 1 2 424-9700
          Ten South LaSaIle Street                F:      312 424-9740
          Chicago, IL 60603

                                                  January 17, 2003

VIA TELECQPIER

Mendocino Brewing Company, Inc.
1610 Airport Road
Ukiah, California 95482

      RE:   Loan and Security Agreement dated as of September 24, 1998, as
            amended (the "Loan Agreement") between Mendocino Brewing Company,
            Inc. and Releta Brewing Company LLC (collectively, "Borrower") and
            The CIT Group/Business Credit, Inc., as successor to The CIT
            Group/Credit Finance, Inc. ("CJT")

Ladies and Gentlemen:

      Reference is made to the Loan Agreement. Capitalized terms used in this
letter and not specifically defined herein shall have the meanings given to such
terms in the Loan Agreement.

      1. New Term Loan. Borrower has requested that CIT make a new term loan to
Borrower in the principal amount of $403,740.86 (the "New Term Loan"). CIT has
agreed to make the New Term Loan to Borrower by consolidating the New Term Loan
with the existing Term Loan made to Borrower under Section 10.2(a) of the Loan
Agreement on or about September 24, 1998, which has an outstanding principal
balance of $346,259.14 as of the date hereof. In order to evidence this
consolidation, CIT and Borrower agree to amend and restate Section 10.2(a) in
its entirety to read as follows:

                  "(a) A Term Loan shall be made to Borrower on or about January
            17, 2003 in the amount of $750,000, which consists of an original
            Term Loan having an outstanding principal balance of $346,259.14 as
            of such date and a new term loan of $403,741.86 to be made on or
            about such date. The principal amount of this Term Loan shall be
            repaid in immediately available funds in thirty (30) equal
            consecutive monthly installments of $24,732.80 each, with a final
            payment of $8,016.00, due and payable commencing February 1, 2003
            and on the first day of each month thereafter, provided that
            notwithstanding the foregoing, the unpaid principal balance thereof
            shall be due and payable in full on the expiration of any Term or
            the termination of this Agreement, if earlier."

      The outstanding principal balance of the existing Term Loan made under
Section 10.2(a) of the Loan Agreement shall remain outstanding and shall not be
deemed to have been repaid by the making of the New Term Loan.

                                      -59-
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Mendocino Brewing Company, Inc.
January 17, 2003
Page 2

      2. Other Amendments. This letter shall confirm the agreement of CIT and
Borrower to amend the Loan Agreement in the following manner:

      (a)   Section 9.1 is amended and restated in its entirety to read as
            follows:

            "Term. This Agreement shall only become effective upon execution and
            delivery by Borrower and Lender and shall continue in full force and
            effect for the term set forth in paragraph 10.7 from the date hereof
            (the "Term")."

      (b)   Section 10.1(a) is amended and restated in its entirety to read as
            follows:

"(a) Maximum Credit:

$3,500,000".

      (c)   Section 10.1(c) is amended and restated in its entirety to read as
            follows:

"(c) Inventory Sublimit (~ 2.1(b)):

$1,500,000".

      (d)   Section 10.4(d) is amended and restated in its entirety to read as
            follows:

"(d) Facility Fee:

            0.50% of the Maximum Credit, fully earned on January 17, 2003, but
                  due and payable in ten equal installments of $1,750 each
                  commencing on February 1, 2003 and on the first month of each
                  month thereafter through November 1, 2003".

                  (e) Section 10.7 is amended and restated in its entirety to
                  read as follows:

                  "Term:

                                                The Term expires on November 30,

                                        2003".

                  3. Conditions and Other Matters.

      (a) Borrower agrees to pay to CIT a fee of $10,000 as consideration for
CIT's agreement to make the New Term Loan to Borrower and amend the Loan
Agreement in the manner set forth above, and CIT shall charge such fee to
Borrower's revolving loan account on the date that CIT makes the New Term Loan
to Borrower.

      (b) On or before May 31, 2003, Borrower shall have delivered to CIT copies
of the agreement (the "Tax Payment Agreement") between Borrower and Mendocino
County for the

                                      -60-
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Mendocino Brewing Company, Inc.
January 17, 2003
Page 3

payment of past due real estate taxes owed by Borrower to Mendocino County, and
such agreement shall be satisfactory to CIT in its reasonable discretion.

      (c) On the date that CIT makes the New Term Loan to Borrower, (i) Borrower
agrees to repay in full all existing "Overadvances" ($25,000 as of the date
hereof) provided by CIT to Borrower under the letter agreement dated as of
September 5, 2001, and (ii) CIT will deduct Reserves of $130,000 pursuant to
Section 2.1(f) of the Loan Agreement. Concurrently with or immediately after
Borrower pays in full the first installment of real estate property taxes due on
or about May 2003 to Mendocino County pursuant to the Tax Payment Agreement, CIT
agrees to release said Reserves; provided that no Default or Event of Default
exists which has not been waived by CIT.

      (d) Within 30 days of the date of this letter, Borrower and CIT agree to
establish one or more lockboxes and collateral proceeds accounts for the
collection of the proceeds of the Collateral pursuant to Section 5.1 of the Loan
Agreement; and Borrower, CIT and the applicable financial institution(s) shall
execute lockbox and collateral account agreements in form and substance
satisfactory to CIT.

      (e) In order to induce CIT to make the New Term Loan to Borrower, Borrower
hereby represents and warrants to CIT that:

      (i) the execution, delivery and performance by Borrower of this letter is
      within Borrower's corporate power and has been duly authorized by all
      necessary corporate action;

      (ii) this letter and the Loan Agreement, as amended by this letter, are
      the legal, valid and binding obligations of Borrower, enforceable against
      Borrower in accordance with their terms; and

      (iii) no Event of Default exists as of the date hereof, and all of the
      representations and warranties contained in the Loan Agreement are true
      and correct as of the date hereof, except to the extent that such
      representations and warranties relate solely to an earlier date, in which
      case such representations and warranties were true and correct as of such
      earlier date.

      (f) THIS LETTER IS A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS
OF THE STATE OF ILLINOIS. Wherever possible, each provision of this letter will
be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this letter is prohibited by or invalid under such law,
such provision will be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this letter. This letter may be executed in any number
of counterparts and by the different parties on separate counterparts and each
such counterpart is deemed to be an original, but all such counterparts together
constitute but one and the same letter. This letter is binding upon Borrower,
CIT and their respective successors and assigns, and inures to the benefit of
Borrower, CIT and their respective successors and assigns.

                                      -61-
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Mendocino Brewing Company, Inc.
January 17, 2003
Page 4

(f) Borrower's non-compliance with any of the provisions of this letter
agreement, including without limitation paragraphs 3(a), 3(b), 3(c), and 3(d),
shall constitute an Event of Default under the Loan Agreement.

Except as expressly modified by this letter, all terms and provisions of the
Loan Agreement shall remain unmodified and in full force and effect, and shall
apply with such force and effect to this letter.

Please indicate Borrower's agreement to the foregoing by executing this letter
where indicated below. In addition, United Breweries Information Consultancy
Services, Ltd and United Breweries of America, Inc. each must also execute this
letter where indicated below to consent to the making of the New Term Loan and
the other amendments set forth above and to confirm that the foregoing New Term
Loan and other amendments shall not affect, modify or diminish their respective
obligations under (as applicable) the pledge agreement executed by United
Breweries Information Consultancy Services, Ltd. and the subordination agreement
between United Breweries of America, Inc. and CIT, relating to the Loan
Agreement. The amendments to the Loan Agreement set forth in this letter shall
become effective, and CIT agrees to make the New Term Loan to Borrower, upon
CIT's receipt of this letter signed by Borrower and the parties set forth below.

                                                 Very truly yours,

                                                 THE CIT GROUP/BUSINESS CREDIT,
                                                 INC.

                                                 By: -sd- BRIAN KUNDICH
                                                 -----------------------------
                                                 Title: VP

Agreed to this 17th day of January, 2003:
MENDOCINO BREWING COMPANY, INC.                  RELETA BREWING COMPANY LLC
By: -sd- N MAHADEVAN                             By: -sd- YASHPAL SINGH
------------------------------                   --------------------------
Title: CFO                                       Title: PRESIDENT

                                      -62-
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Mendocino Brewing Company, Inc.
January 17, 2003
Page 5

The undersigned (each, a "Party") hereby consents to the New Term Loan and the
other amendments set forth above and agrees and confirms that the foregoing
amendments to the Loan Agreement shall not affect, modify or diminish such
Party's obligations under (as applicable) the pledge agreement executed for the
benefit of CIT, or the subordination agreement between United Breweries of
America, Inc. and CIT, relating to the Loan Agreement, notwithstanding the
agreement of CIT to make the New Term Loan and the other amendments contemplated
above to Borrower.

                                          UNITED BREWERIES INFORMATION
                                          CONSULTANCY SERVICES, LTD.

                                   By:  -sd-
                                   -----------------------------------------
                                   Name: JAY VALLABH
                                   Title:DIRECTOR

                                          UNITED BREWERIES OF AMERICA, INC.

                                   By: -sd-
                                   -----------------------------------------
                                   Name: ANIL PISHARODY
                                   Title:SECRETARY

                                      -63-
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