Document:

SEVENTH
      AMENDMENT TO

    EXTENSION
      OF TERM OF NOTES UNDER MASTER LINE OF CREDIT AGREEMENT

    

    This
      Seventh 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,
      2007
      (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, and December 31, 2006 (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, 2007.

     

    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, 2008.

     

    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.

     

    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.

     

    [signature
      page to follow]

     

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    IN
      WITNESS WHEREOF, duly executed 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:

               

              MENDOCINO
                BREWING COMPANY, INC.

              a
                California corporation

               

               

              By: __________________

               

              Name: 
                N.
                Mahadevan 

               

              Title: 
                Chief Financial Officer and Secretary

            	
              Lender:

               

              UNITED
                BREWERIES OF AMERICA, INC.

              a
                Delaware corporation

               

               

              By: _____________________

               

              Name:
                Anil Pisharody

               

              Title: Secretary

            

    

    

    

    
      
         

      

      
        3THIRD
      AMENDMENT TO CONVERTIBLE PROMISSORY NOTE

    MENDOCINO
      BREWING COMPANY, INC.

     

    This
      Third Amendment to Convertible Promissory Note (this "Amendment") is effective
      as of June 30, 2007 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, which
      provide that the term of the Note made by the Company in favor of Holder was
      extended until June 30, 2007.

     

    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 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, 2008 (the
      "Maturity Date"), and to pay interest on that principal sum at a rate equal
      to
      the lesser of (i) 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 (ii) ten percent (10%)."

     

    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.

     

    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 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]

     

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, duly executed 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:

               

              MENDOCINO
                BREWING COMPANY, INC.

              a
                California corporation

               

               

              By: _______________

               

              Name: 
                N.
                Mahadevan 

               

              Title: 
                Chief Financial Officer and Secretary

            	
              Holder:

               

              UNITED
                BREWERIES OF AMERICA, INC.

              a
                Delaware corporation

               

               

              By: _______________

               

              Name:
                Anil Pisharody

               

              Title: Secretary

            

    

    

    

    
      
        
        

      

      
        3

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