On March 14, 2016, Mendocino Brewing Co. Inc. issued a promissory note to Catamaran Services Inc. in the principal amount of $325,000. Pursuant to the terms of the Note, the Company promises to pay the principal sum of $325,000 with accrued interest to Catamaran within six months following the date of the Note, subject to the receipt by the Company of a bridge loan from its majority shareholder in an amount sufficient either (a) to pay the Note through Permitted Payments, as defined below, or (b) to pay both the Note and certain existing obligations of the Company to MB Financial Bank, an Illinois banking corporation, successor in interest to Cole Taylor Bank, N.A. in full pursuant to that certain Credit and Security Agreement dated as of June 23, 2011, as amended by that certain First Amendment, dated as of March 29, 2013, among Cole Taylor Bank, N.A., the Company and Releta Brewing Company LLC, and that certain Second Amendment, effective June 21, 2015, among MB Financial, the Company and Releta.

"Permitted Payments" on the Note are payments made from the portion of a Shareholder Loan that is in excess of $600,000. If the Company is not able to satisfy its obligations on the Note within the six month period following the date of the Note, the Note shall be automatically extended for additional six month terms until a Shareholder Loan sufficient to satisfy the Note is received or the Note is otherwise paid. Interest shall accrue from the date of the Note on the unpaid principal at a rate equal to the lesser of (i) one and 1.5% per annum above the prime rate offered from time to time by the Bank of America Corporation in San Francisco, California, or (ii) 10% per annum, until the principal is fully paid.

The Note may be prepaid without penalty at the option of the Company; however, no payments on the Note may be made unless such payment is a Permitted Payment or certain existing obligations of the Company to MB Financial pursuant to the Credit Agreement have been satisfied in full. The Note may not be amended without the prior written consent of MB Financial.