EXHIBIT 10.29
TO
REGISTRATION STATEMENT ON FORM SB-2
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LETTER AGREEMENT CONCERNING USE OF PROCEEDS WITH WESTAMERICA BANK
[Mendocino Brewing Company, Inc. letterhead]
September 19, 1996
R. Dwight Davenport
West America Bank
31 D Street Second Floor
Santa Rosa, CA 95404
VIA FAX: 707-575-3546
Dear Mr. Davenport:
Savings Bank of Mendocino County has agreed to the following plan of
distribution and use of the first funds received from our proposed direct public
offering.
The list below shows, in order of priority, our proposed use of funds for the
first $2,500,000 of the proposed $4,000,000 (sic) direct public offering.
1) Cost of offering (estimated) $ 300,000
2) Working Capital 300,000
3) Completion of deferred building construction 600,000
4) Short term debt - BDM note 500,000
5) Short term debt - West America Bank 400,000
6) Short term debt - BDM note 400,000
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$2,500,000
The Savings Bank has asked that you signify your understanding of and agreement
with our intentions by signing at the bottom of this letter. After signing,
please fax this letter back to me as soon as possible. This should complete the
final requirement for our loan package with the bank.
Sincerely, West America Bank
/s/ Norman Franks /s/ R. Dwight Davenport
Norman Franks by: R. Dwight Davenport
CFO, Vice President Vice President and Manager
EXHIBIT 10.29