March 31, 2004
Board of Directors
Mendocino Brewing Company
0000 Xxxxxxx Xxxx
Xxxxx, XX 00000
RE: Future Financing
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Gentlemen:
It has come to our attention that Mendocino Brewing Company, Inc. ("MBC")
is a party to the following debt agreements, among others : (a) a credit
agreement with CIT Group/Credit Finance, Inc. ("CIT"), pursuant to which CIT has
provided MBC with a $3,000,000 maximum line of credit, and which is currently
due to expire on April 30, 2004 (the "CIT Line"), and (b) a temporary loan from
Savings Bank of Mendocino ("SBM") in the original principal amount of $576,200 ,
which is currently due on June 23, 2004 (the SBM Loan").
We understand that MBC is currently in the process of actively seeking
takeout financing for both the SBM Loan and the CIT Line.
As a means of assisting MBC to obtain such new financings, this letter is
to confirm that United Breweries of America, Inc. ("UBA") will provide MBC with
such financial assistance as may be in UBA's power to prevent or avoid any
default under either the CIT Line or the SBM Loan when either of them may become
due.
Sincerely,
United Breweries of America, Inc.
By:
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