Document:

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
      COMMITTEEDirectors' Compensation
Plan

     

    1.   Eligibility  All
Non-Employee Directors of the Company on January 1 of any calendar year
commencing on or after January 1, 2002 shall be entitled to receive
compensation under the Directors' Compensation Plan (the "Plan") as compensation
for their service on the Board and attendance at meetings of the Board and
Committees of the Board during the preceding calendar year.

     

    2.   Shares Subject to the
Plan.  There shall be reserved 1,000,000 shares of the
Company's Common Stock (the "Plan Shares") for issuance to the Company's
Directors under the Plan.

     

    3.   Sole Form of
Compensation.  No Director shall receive any compensation for
his or her service on the Board or on any Board Committee other than that which
may be granted hereunder; provided, that nothing herein
shall be deemed to negate, invalidate, or supersede any separate written
agreement between the Company and any individual Director.

     

    4.   Administration of the
Plan.  The Plan shall be administered by the Compensation
Committee.  The recommendations of the Compensation Committee as to
the Non-Employee Directors' compensation for their service on the Board shall be
submitted to the entire Board of Directors, solely for the Board's review and
approval of the issuance of Plan Shares as recommended by the Compensation
Committee.

     

    5.   Certain Defined
Terms.  As used in this Plan, the following terms shall have
the meanings given to them below.

     

    (a)  "Average
Fair Market Value" will mean the average of the daily Fair Market Values of the
Company's stock over the relevant calendar year;

     

    (b)  "Book
Value" will mean the year-end book value of the Company's Common Stock, as set
forth in the Company's audited financial statements for the relevant
year;

     

    (c)   "Fair
Market Value" will be determined in accordance with Section 7,
below.

     

    (d)   "Meeting
Value" will mean the aggregate amount determined by multiplying (i) the number
of Board and Committee Meetings attended by each Director during any given
calendar year by (ii) the compensation due for each such
Meeting.  Subject, from time to time, to such adjustments as the
Compensation Committee, in its sole discretion deems appropriate, for purposes
of calculating the Meeting Value, attendance at a Board Meeting shall be valued
at approximately $3,000 per Board Meeting and attendance at a Committee Meeting
shall be valued at approximately $1,000 per meeting.

     

    
      
         

      

      
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    (e)  "Non-Employee
Directors" means those members of the Company's Board of Directors who do not
otherwise receive compensation from the Company.

     

    
      6. 
 Compensation Under the
Plan.

    

     

    (a)  Compensation
Calculation.

     

    (i)        The
Directors will receive only shares of Company stock as compensation for
attending Board and Committee Meetings; and

     

    (ii)       Each
Director will receive a number of shares of Common Stock for each year which is
equal to the quotient of (A) that Director's Meeting Value, divided by
(B) the higher of the Book Value of the Company's Common Stock for that
year or the Average Fair Market Value of such stock over the course of that
year; and

     

    (iii)      Notwithstanding
clause (ii) of this Section 6(a), in no instance may the price per share of
Common Stock, as calculated in accordance with clause (ii) hereof, be lower than
the Fair Market Value on the date of the grant of such shares.

     

    7.   Fair Market Value.
The fair market value of the Company's Common Stock for purposes of this Plan
shall be determined as follows:

     

    (a)  If
the Common Stock is then traded on any nationally recognized or major regional
stock exchange, then on the basis of the closing sale price for the Common Stock
on the most senior exchange on which it is then traded; provided, that if on any
given day there is no recorded sale, then the applicable value shall be such
price on the last previous trading day;

     

    (b)  If
the Common Stock is not traded on any nationally recognized or major regional
stock exchange, but is quoted on a commonly available stock quotation system,
then on the average of the bid and asked prices so quoted at the close of the
trading day; and

     

    (c)  If
the Common Stock is neither traded on a nationally recognized or major regional
stock exchange nor quoted on an commonly available stock quotation system, then
on the basis of any reasonable valuation analysis that may be selected in good
faith by the Compensation Committee.

     

    8.   Restrictions on Disposition
of Plan Shares.

     

    (a)  The
Plan Shares have not been registered under the Securities Act of 1933, as
amended (the "Act").  The Plan Shares may not be offered, sold,
otherwise transferred, assigned, pledged, hypothecated or otherwise disposed of
unless and until a registration statement under the Act is in effect as to such
transfer or, in the opinion of counsel for the Company, registration under the
Act is unnecessary in order for such transfer to comply with the Act or unless
sold pursuant to Rule 144 of the Act.

     

    
      
         

      

      
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    (b)  For
so long as the Company remains subject to the reporting requirements of the
Securities Exchange Act of 1934, as amended, and the regulations of the
Securities and Exchange Commission thereunder, no Plan Shares may be sold or
otherwise disposed of by the recipient Director:

     

    (i)        During
any period commencing ten (10) days prior to the filing of any regular Annual
Report or Quarterly Report with the SEC and ending on the date which is three
(3) Business Days after any such report has been filed; or

     

    (ii)       During
the period commencing with the filing of any Current Report with the SEC and
ending on the date which is three (3) Business Days after any such Report has
been filed; and

     

    (c)  The
Plan Shares may never be sold (other than to the Company) at a time when the
seller is in possession of any material information about the Company or its
business or financial affairs or prospects which has not been publicly disclosed
or generally available to the public for at least three (3) Business
Days.

     

    
      
         

      

      
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