Effective January 21, 2015, Mendocino Brewing Company Inc., Releta Brewing Company LLC and MB Financial Bank, N.A., successor in interest to Cole Taylor Bank entered into a Second Amendment to the Credit and Security Agreement dated June 23, 2011, as previously amended on March 29, 2013. The Agreement provides the Borrowers a credit facility, secured by the personal property of the company and RBC, and the company's Ukiah, California facility, among other items of the Borrowers' property. The credit facility matures on June 23, 2016.

Prior to the Second Amendment, the credit facility consisted of a $4,119,000 revolving facility, a $1,934,000 machinery and equipment term loan, a $2,947,000 real estate term loan and a $1,000,000 capital expenditure line of credit. The Second Amendment reduces the maximum amount of the Revolver from $4,119,000 to $2,500,000. The Second Amendment also changes the definition of borrowing base (including by lowering certain advance rates) such that the calculation of the borrowing base will result in a lower number than it would have if calculated prior to the effectiveness of the Second Amendment.

The borrowing base is used in the determination of the amount available to each Borrower pursuant to the Revolver. Pursuant to the Agreement, if such availability is less than $0, or if certain components of the borrowing base fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.