EXHIBIT 17

                             CONFIRMATION OF WAIVER

This  Confirmation  of Waiver  (this  "Confirmation"),  dated as of December 28,
2001, is provided to Mendocino Brewing Company,  Inc., a California  corporation
("Borrower"),  and United  Breweries of America,  Inc.,  a Delaware  corporation
("Lender").

                                    RECITALS

A.  Borrower  and Lender  entered into a Master Line of Credit  Agreement  dated
August  31,  1999  (the  Master  Line of  Credit  Agreement,  together  with all
amendments  thereto  shall  hereinafter  be referred  to,  collectively,  as the
"Master  Agreement"),  which provides that on the terms and conditions contained
therein,  Lender  would make  available  to  Borrower a credit  facility  in the
principal amount of $800,000.

B. The Master Agreement was subsequently amended on April 28, 2000, and February
12, 2001, to increase the principal  amount  available under the credit facility
to an aggregate of $1,600,000.

C. Pursuant to the Master Agreement,  Borrower made twelve (12) promissory notes
in favor of Lender (collectively, the "Notes").

D. Pursuant to Section 6 of the Notes,  upon the issuance of any securities at a
price less than  $1.50 per share,  the  conversion  price of the Notes  shall be
adjusted to reflect such issuance on a weighted average basis.

E. In exchange  for all of the issued and  outstanding  capital  stock of United
Breweries International (UK) Limited,  Borrower issued and sold 5,500,000 shares
of common stock (the "Transaction").

F. In connection  with the  Transaction,  Lender waived its rights to reduce its
conversion price to prevent additional dilution to the shareholders of Borrower.

G. Borrower and Lender wish to confirm such waiver by this Confirmation.

                                  CONFIRMATION

1. Waiver.  Lender hereby confirms that, effective as of August 13, 2001, Lender
has completely  waived any and all of Lender's  rights with regard to conversion
rate protection as set forth in Section 6 of each of the Notes.

2.  Governing  Law.  This  Confirmation  shall be governed by and  construed  in
accordance  with the laws of the  State of  California,  without  regard  to the
conflicts of laws principles of that or any other jurisdiction.

3. Assignment; Successors and Assigns. This Confirmation shall bind and inure to
the benefit of the parties and their respective heirs, successors and assigns.


                              Exhibit 17 - page 1




IN WITNESS WHEREOF,  this Confirmation has been duly executed as of the date set
forth above.



                                           Lender:

                                           UNITED BREWERIES OF AMERICA, INC.
                                           a Delaware corporation


                                           By: /s/ Anil Pisharody
                                              ---------------------------------
                                           Name: Anil Pisharody
                                                -------------------------------
                                           Title: Secretary
                                                 ------------------------------




THE FOREGOING IS ACKNOWLEDGED AND AGREED:



Borrower:

MENDOCINO BREWING COMPANY, INC.
a California corporation


By: /s/ N. Mahadevan
   -----------------------------------

Name: N. Mahadevan
     ---------------------------------

Title: Secretary
      --------------------------------