On April 24, 2014, Mendocino Brewing Company Inc. issued a promissory note to Catamaran Services Inc. (Catamaran) in the principal amount of $500,000. Pursuant to the terms of the Note, the company promises to pay the principal sum of $500,000 with accrued interest, to Catamaran within six months following the date of the Note, subject to the receipt by the company of an equity investment by its majority shareholder in an amount sufficient either (a) to pay the note through permitted payments, or (b) to pay both the note and certain existing obligations of the company to Cole Taylor Bank, N.A. (Cole Taylor) 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, the company and Releta Brewing Company LLC. Permitted payments on the note are payments made from the portion of a shareholder investment that is in excess of $500,000.

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 cote shall be automatically extended for additional six month terms until a shareholder investment sufficient to satisfy the note is received. Interest shall accrue from the date of the note on the unpaid principal at a rate equal to the lesser of (i) 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.