Exhibit 10.30
[GRAPHIC OMITTED]
WESTAMERICA BANK
SONOMA REGION CREDIT ADMINISTRATION
October 21, 1997
Michael Laybourn, President
Mendocino Brewing Company, Inc.
P.O. Box 400
Hopland, CA 95449
Dear Michael,
Westamerica Bank is pleased to commit to the restructure of the existing
non-revolving line of credit into a revolving line of credit prior to the
expiration date of November 30, 1997. This commitment is subject to the Bank's
review of the executed Investment Agreement between Mendocino Brewing Company,
Inc. and United Brewers of America, Inc. and the completion of a collateral
field audit satisfactory to Bank. The basic terms of the credit are outlined
below:
1. Type of Facility:
Revolving line of credit.
2. Maximum Principal Amount:
$600,000 or the maximum applicable Borrowing Base as may change from
time to time, as will be defined in the Credit Documentation.
Increases to the line can be considered as revenues grow and profits
return.
3. Forms of Utilization:
Cash advances, including direct deposits to your checking account.
4. Interest Rate:
Westamerica Bank index plus 1.50% floating.
Interest will accrue daily on the basis of a (365/360-day) year and
actual days elapsed.
31 D STREET . SANTA ROSA CA 95404
(707) 576-3625
Michael Laybourn, President
October 21, 1997
Page 2
5. Expiration and/or Maturity Date:
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May 31, 1998. Prior to maturity, the December 31, 1997 Financial
statement will be reviewed by Bank. Subsequent line renewals will be
for one year.
6. Borrowing Base:
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80% of eligible accounts receivable (as will be defined in the credit
documents).
25% of eligible inventory to a maximum of $200,000 (as will be defined
in the credit documents).
7. Collateral:
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Perfected security interest of first priority in the following
personal property: Accounts Receivable and inventory.
8. Purpose of Line of Credit:
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Finance trading assets.
9. Fees Payable On or Before Closing:
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Loan Fee: .25% per annum anticipated.
10. Repayment:
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Interest payable (monthly) with all accrued interest and unpaid
principal to be due at maturity.
11. Loan Documentation:
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In addition to the documentation that will be required in connection
with the security interest to be given to Bank in the property which
will serve as collateral for this loan, the following documentation,
in form and substance satisfactory to Bank will be required:
Michael Laybourn, President
October 21, 1997
Page 3
Business Loan Agreement. Among other terms, this agreement will contain
various financial and other covenants, agreements and conditions to be
mutually agreed upon.
12. Banking Relationship:
Primary banking relationship must be maintained with Westamerica Bank.
This commitment is also subject to such additional terms, conditions and
requirements as may be provided in Bank's credit documents of otherwise required
by Bank or its counsel.
Sincerely,
/s/ Dwight Davenport
Dwight Davenport
Vice President and Manager
DD/ju