EXHIBIT 1

               SECOND AMENDMENT TO MASTER LINE OF CREDIT AGREEMENT
                         MENDOCINO BREWING COMPANY, INC.

This Second Amendment to Master Line of Credit  Agreement (this  "Amendment") is
made and entered into as of February 12, 2001, by and between  United  Breweries
of America Inc., a Delaware  corporation ("UBA"), and Mendocino Brewing Company,
Inc., a California corporation ("MBC").

                                    Recitals

     A. UBA and MBC have  entered  into a Master Line of Credit  Agreement  (the
"Agreement"),  dated as of August 31, 1999, with respect to a credit facility in
the amount of $800,000 made available to MBC by UBA.

     B. UBA and MBC have entered into a First Amendment to Master Line of Credit
Agreement (the "First  Amendment"),  dated as of April 28, 2000, which increased
the amount of the credit facility under the Agreement to $1,200,000.

     C. UBA and MBC wish to further  amend the  Agreement to increase the amount
of the credit facility to $1,600,000.

NOW, THEREFORE, the parties agree as follows:

                                    Agreement

     1.  General  Purpose  and  Amount.  Section  1 of the  Agreement  is hereby
amended, in its entirety, to provide as follows:

         "1. General Purpose,  Amount. Lender agrees to make and Borrower agrees
         to accept a credit  facility  in the  principal  sum of One Million Six
         Hundred Thousand Dollars  ($1,600,000.00)  or so much thereof as may be
         from time to time disbursed  hereunder (the "Credit  Facility") for the
         purpose of providing  funds for the  operations of Borrower,  including
         paying  amounts  owed by  Borrower  to Lender.  Each draw on the Credit
         Facility  shall be evidenced by a convertible  promissory  note (each a
         "Note")  of  Borrower,  payable  to the  order of  Lender  and shall be
         substantially in the form set forth in Exhibit A."

     2.  Governing  Law.  This  Amendment  shall be governed by and construed in
accordance with the laws, without regard to the laws as to choice or conflict of
laws, of the State of California.

     3. Ratification of Agreement; Amendments. Except as specifically amended by
this Amendment,  all provisions of the Agreement are ratified and affirmed.  The
Agreement  and  this  Amendment  may only be  amended  by a  written  instrument
executed by both UBA and MBC. This Amendment expressly amends and supersedes the
First Amendment.

     5.   Counterparts.   This   Amendment  may  be  executed  in  two  or  more
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall constitute one and the same instrument.

IN WITNESS WHEREOF,  the parties have caused this Amendment to be executed as of
the date first above written.


                             MENDOCINO BREWING COMPANY, INC.,
                             a California corporation


                             By: /s/ Yashpal Singh
                                 -------------------------------------
                                 Yashpal Singh, President


                             By: /s/ Mahadevan Narayanan
                                 -------------------------------------
                                 Mahadevan Narayanan, Secretary and Treasurer


                             UNITED BREWERIES OF AMERICA, INC.


                             By: /s/ Anil Pisharody
                                 -------------------------------------
                                 Anil Pisharody, Secretary and Treasurer

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