SEC Contract Filing

Filing Date: 2016-12-28

Document Content:
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<TYPE>EX-10.1
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<FILENAME>ex10-1.htm
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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center; background-color: transparent"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>SEVENTH
AMENDMENT TO CREDIT AND SECURITY AGREEMENT</U></B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: transparent"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: transparent"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
Seventh Amendment to Credit and Security Agreement (this <B>&ldquo;Amendment&rdquo;</B>) is made effective as of December 22,
2016, by and among MB FINANCIAL BANK, N.A., successor in interest to Cole Taylor Bank <B>(&ldquo;Lender&rdquo;),</B> MENDOCINO
BREWING COMPANY, INC., a California corporation (<B>&ldquo;MBC&rdquo;</B>), and RELETA BREWING COMPANY LLC, a Delaware limited
liability company (<B>&ldquo;RBC&rdquo;</B>; RBC and MBC are collectively referred to as <B>&ldquo;Borrowers&rdquo;</B> and, individually,
as a <B>&ldquo;Borrower&rdquo;).</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35pt; background-color: transparent"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center; background-color: transparent"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>PRELIMINARY
STATEMENTS</U></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: transparent"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowers
and Lender have entered into that certain Credit and Security Agreement dated as of June 23, 2011 (as amended, restated, or otherwise
modified from time to time, the <B>&ldquo;Credit Agreement&rdquo;</B>).</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: transparent"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of the date hereof, Events of Default under <U>Section 13.01(b)</U> of the Credit Agreement are continuing, including, without
limitation, the failure to comply with the Tangible Net Worth covenant contained in <U>Section 12.01</U> of the Credit Agreement
and the failure to comply with the Fixed Charge Coverage covenant contained in <U>Section 12.02</U> of the Credit Agreement, each
as of the period ending October 31, 2016 and the dates set forth in the Second Amendment to Credit and Security Agreement dated
as of June 21, 2015 (collectively, the <B>&ldquo;Existing Defaults&rdquo;).</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35pt; background-color: transparent"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: transparent"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowers
have advised the Lender that Borrowers are unable to pay the Obligations by the current Maturity Date and have requested that
Lender amend the Credit Agreement to extend the Maturity Date. Borrowers acknowledge that the failure to pay the Obligations in
foil by the Maturity Date is an Event of Default. Lender has therefore agreed to amend the Credit Agreement to extend the Maturity
Date to no later than January 31, 2017 on the terms and conditions set forth below. Lender has absolutely no commitment and has
made no agreement to extend the Maturity Date beyond January 31, 2017.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: transparent"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOW
THEREFORE,</B> in consideration of the foregoing and such other consideration as the parties mutually agree, the parties hereto
agree as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35pt; background-color: transparent"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: transparent"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Preliminary
Statements</U>. The