Exhibit
10.3


 


NOTE
GUARANTY


 


October
6, 2022


 


In
order to induce Aegis Security Insurance Company (the “Creditor”) to grant to Eastside Distilling, Inc., a Nevada
corporation (“Debtor”) a loan of Four Million Dollars ($4,500,000) pursuant to a Secured Promissory Note (the “Note”)
dated the date of this Guaranty (this “Guaranty”), the undersigned guarantor Craft Canning + Bottling, LLC (“Craft
Canning”) (the “Guarantor”), as of the date hereof, for value received, unconditionally, irrevocably and
absolutely guarantees to Creditor, payment and performance when due of all obligations of Debtor pursuant to the Note (the “Obligations”)
now or hereafter owing to Creditor by Debtor, which Obligations, together with all costs of collection thereof, including, without limitation,
interest and attorneys’ fees directly related to the collection thereof, are hereinafter collectively called the “Guaranteed
Obligations.” Guarantor represents it is not prohibited under its Articles of Organization and Operating Agreement from serving
as a Guarantor. This Guaranty is a guaranty of payment and performance when due and not of collection.


 


This
Guaranty is issued pursuant to the Note Purchase Agreement among Debtor, Guarantor and Creditor, which contains covenants applicable
to the obligation under this Note.


 


Pursuant
to the Note Purchase Agreement, Creditor is granted a security interest in all of Guarantor’s assets as security for the Guaranteed
Obligations (the “Collateral”). The Creditor shall have all of the rights and remedies of a secured party under the
Oregon Uniform Commercial Code and all other applicable law, all of which rights and remedies shall be cumulative and nonexclusive to
the extent permitted by law. Guarantor additionally guarantees all costs of collection and other costs incurred by the Creditor to protect
its interest in the Collateral and to enforce any of its rights hereunder, including reasonable attorneys’ fees related to the
collection thereof.


 


Creditor
agrees that Guarantor may enter into up to $2,500,000 in capital leases on a second digital can printer and accessories if Guarantor
shows Creditor a budget with details of revenue and expenses acceptable to Creditor.


 


Guarantor
waives notice of acceptance of this Guaranty, and presentment, demand, protest, notice of protest, notice of default and diligence in
collecting any Guaranteed Obligations, and agrees that Creditor may modify the terms of, compromise, extend, increase, accelerate, renew
or forbear to enforce payment or performance of, any part or all any Guaranteed Obligations, or permit the Debtor to incur additional
Guaranteed Obligations, all without notice to Guarantor and without affecting in any manner the unconditional obligation of the Guarantor
under this Guaranty. Guarantor acknowledges and agrees that the liabilities created by this Guaranty are direct and are not conditioned
upon pursuit by Creditor of any remedy Creditor may have against the Debtor or any other person or any security. No invalidity, irregularity,
or unenforceability by reason of any bankruptcy, insolvency or other similar law, or any law or order of any government or agency thereof
purporting to reduce, amend or otherwise affect the Guaranteed Obligations shall impair, affect or be a defense to the obligations of
the Guarantor under this Guaranty.


 




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Guarantor
delivers this Guaranty based solely on such Guarantor’s independent investigation of the financial condition of the Debtor and
is not relying on any information furnished by Creditor with respect to Debtor’s financial condition. Guarantor assumes full responsibility
for obtaining any further information concerning the Debtor’s financial condition, the status of the Guaranteed Obligations or
any other matter which Guarantor may deem necessary or appropriate from time to time. Guarantor hereby waives any duty on the part of
Creditor and agrees that it is not relying upon or expecting Creditor to disclose to the Guarantor any fact now or hereafter known by
Creditor, whether relating to the operations or condition of the Debtor, the occurrence of any default with respect to the Guaranteed
Obligations, or otherwise, notwithstanding any effect such fact may have upon Guarantor’s risk hereunder or Guarantor’s rights
against Debtor. Guarantor knowingly accepts the full range of risk encompassed in this Guaranty, which risk includes, but is not limited
to, the possibility that Debtor may incur Guaranteed Obligations to Creditor after the financial condition of Debtor, or its ability
to pay its debts as they mature, has deteriorated.


 


Guarantor
agrees that no security now or hereafter held by Creditor for the payment of any Guaranteed Obligations, whether from Debtor, any guarantor,
or otherwise, and whether in the nature of a security interest, pledge, lien, assignment, setoff, suretyship, guaranty, indemnity, insurance
or otherwise, shall affect in any manner the unconditional obligation of the Guarantor under this Guaranty, and Creditor, in its sole
discretion, without notice to Guarantor, may release, exchange, enforce and otherwise deal with any such security, including the Collateral,
without affecting in any manner the unconditional obligation of the Guarantor under this Guaranty. Guarantor acknowledges and agrees
that Creditor has no obligation to acquire or perfect any lien on or security interest in any asset or assets, whether realty or personalty,
including the Collateral, to secure payment of the Guaranteed Obligations.


 


Until
such time as the Guaranteed Obligations shall be indefeasibly paid and performed in full, Guarantor hereby agrees not to exercise any
rights to be subrogated to the position of Creditor or to have the benefit of any lien, security interest or other guaranty hereafter
held by Creditor for the Guaranteed Obligations. Until such time as the Guaranteed Obligations shall be indefeasibly paid and performed
in full, Guarantor agrees not to assert any right of reimbursement, indemnity, contribution, or other right of recourse to or with respect
to Debtor. Creditor shall have no duty to enforce or protect any rights which Guarantor may have against Debtor, and Guarantor assumes
full responsibility for enforcing and protecting any such rights.


 


If
after receipt of any payment of all or any part of the Guaranteed Obligations, Creditor is for any reason compelled to surrender such
payment to any person or entity, because such payment is determined to be void or voidable as a preference, impermissible setoff, diversion
of trust funds or for any other reason, then to the extent of that payment, the Guaranteed Obligations shall be revived and the obligations
under this Guaranty shall be continued in effect without reduction or discharge for that payment, and this Guaranty shall continue in
full force notwithstanding any contrary action which may have been taken by Creditor, Debtor or Guarantor in reliance upon such payment,
and any such contrary action so taken shall be without prejudice to Creditor’s rights under this Guaranty and shall be deemed to
have been conditioned upon such payment having become final and irrevocable.


 


Anything
contained in this Guaranty to the contrary notwithstanding, the obligations of Guarantor hereunder shall be limited to a maximum aggregate
amount equal to the largest amount that would not render Guarantor’s obligations hereunder subject to avoidance as a fraudulent
transfer or conveyance under Section 548 of Title 11 of the United States Code or any applicable provisions of comparable state law (collectively,
the “Fraudulent Transfer Laws”), after giving effect to all other liabilities of Guarantor, contingent or otherwise,
that are relevant under the Fraudulent Transfer Laws and after giving effect as assets to the value (as determined under the applicable
provisions of the Fraudulent Transfer Laws) of any rights to subrogation or contribution of Guarantor pursuant to (i) applicable law
or (ii) any agreement providing for an equitable allocation among Guarantor and other affiliates of the Debtor (if any) of obligations
under guaranties by such parties.


 




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This
Guaranty constitutes the entire agreement of Guarantor and Creditor with respect to the subject matter hereof. No waiver, consent, modification
or change of the terms of this Guaranty shall bind Guarantor or Creditor unless in writing and signed by the waiving party or an authorized
officer of the waiving party, and then such waiver, consent, modification, or change shall be effective only in the specific instance
and for the specific purpose given. This Guaranty shall be binding on Guarantor and the Guarantor’s successors and assigns including,
without limiting the generality of the foregoing, any debtor-in-possession or trustee-in-bankruptcy for Guarantor. Guarantor, as a subsidiary
of Debtor, will receive direct and indirect benefit from the extension of credit by Creditor to Debtor. Guarantor acknowledges that the
terms hereof are reasonable. If any provision of this Guaranty is unenforceable in whole or in part for any reason, the remaining provisions
shall continue to be effective.


 


THIS
GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO CONFLICTS
OF LAW PRINCIPLES.


 


GUARANTOR
WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT OR CLAIM ARISING OUT OF THIS GUARANTY. 


 




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IN
WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date first written above.


 


	CRAFT CANNING + BOTTLING, LLC	 
	 	 	 
	By: 	/s/
    Geoffrey Gwin	 
	Name:	Geoffrey
    Gwin	 
	Title:	Manager	 


 




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