Exhibit 4.1


 


THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF ANY STATE. THIS THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT AS TO THIS NOTE UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO EASTSIDE DISTILLING, INC. THAT SUCH
REGISTRATION IS NOT REQUIRED.


 


	$_____________.00	No. _______


 


EASTSIDE DISTILLING, INC.


8% PROMISSORY NOTE


 


___________, 2016


 


1. General. For value received, and
subject to the terms hereof, EASTSIDE DISTILLING, INC, a Delaware corporation ("Payor"), hereby promises to pay to the
order of ______________________ ("Payee"), the principal amount of __________________________ (____________). This note
is being issued pursuant to the terms and conditions of that certain Subscription Agreement dated of even date herewith by and
among Payor, Payee and the other subscribers set forth therein (the “Agreement”). Capitalized terms used and not otherwise
defined herein shall have the terms set forth in the Agreement


 


2. Term; Payments. The Note shall be
repaid in full with all accrued interest on ___________, 2018 (the “Maturity Date”).


 


3.
Interest. Interest shall accrue from the date hereof on any unpaid principal balance of this Note at the rate of eight-percent
(8%) per annum provided, however,
that while an Event of Default exists, interest shall accrue, at the per annum rate of twelve-percent (12%) per annum (the “Default
Rate”). All interest will be paid monthly in arrears and shall be paid on the last business day of each month.


 


4. Place of Payment. Any and all amounts
payable by Payor to Payee hereunder shall be made in immediately available funds and shall be paid at the address for such Payee
as set forth in the Agreement, or at such other address of which Payee shall give written notice to Payor.


 


5. Events of Default. The occurrence
of any one or more of the following events shall constitute an event of default hereunder ("Event of Default"):


 


(a) Failure of Payor to pay the principal of or interest
on this Note, when and as the same shall become due and payable and such failure continues unremedied for two (2) business days.


 




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(b) Failure of Payor to pay any interest on
this Note, when and as the same shall become due and payable and such failure continues unremedied for fifteen (15) business days.


 


(c) The material default, breach or violation
of Payor in the performance or observance of any of the other covenants, agreements, or conditions of Payor contained in this Note
or the Agreement and such material default, breach or violation continues unremedied for a period of fifteen (15) days following
written notice from Payee to Payor.


 


(d) Any representation or warranty of the Borrower
made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including,
without limitation, the Agreement), shall be false or misleading in any material respect when made and the breach of which has
(or with the passage of time will have) a material adverse effect on the rights of the Payee with respect to this Note or the Agreement;


 


6. Remedies. Upon the occurrence of
an Event of Default hereunder, in addition to all other rights, remedies and powers of Payee under this Note or otherwise available
at law or in equity, Payee may, at its option, without notice, declare the outstanding principal balance and interest immediately
due and payable in full without further notice to or demand on Payor of any kind, including without limitation, presentment, demand
or notice of demand, protest or notice of protest, notice of nonpayment or dishonor and all other notices or communications in
connection with the delivery, acceptance, performance, default or enforcement of payment of this Note, all of which are hereby
waived by Payor. Payor also hereby waives all notice or right of approval of any extensions, renewals, modifications or forbearances
which may be allowed.


 


7. Notices. All notices and other communications
required or permitted under this Note shall be made in accordance with the provisions of the Agreement.


 


8. Interest Savings Clause. If any interest
payment due hereunder is determined to be in excess of the then legal maximum rate, then that portion of each interest payment
representing an amount in excess of the then legal maximum rate shall instead be deemed a payment of principal and applied against
the principal of the obligations evidenced by this Note.


 


9. Amendments and Waivers. This Note
may be amended, modified or supplemented by the parties hereto, provided that any such amendment, modification or supplement shall
be in writing and signed by both Payor and Payee. No waiver with respect to this Note shall be enforceable against Payee unless
in writing and signed by Payee. Except as otherwise expressly provided herein, no failure to exercise, delay in exercising, or
single or partial exercise of any right, power or remedy by Payee, and no course of dealing between the parties, shall constitute
a waiver of, or shall preclude any other or further exercise of the same or any other right, power or remedy.


 




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10. Successors and Assigns. This Note
shall be binding upon the parties and their respective successors and assigns. Payor shall not in any manner assign any of its
rights or obligations under this Note without the express prior written consent of the holder of this Note.


 


11. Severability. If any provision of
this Note is construed to be invalid, illegal or unenforceable, then the remaining provisions hereof shall not be affected thereby
and shall be enforceable without regard thereto.


 


12. Section Headings. The section and
subsections headings in this Note are for convenience of reference only, do not constitute a part of this Note, and shall not affect
its interpretation.


 


13. Controlling Law. This Note is made
under, and shall be construed and enforced in accordance with, the laws of the State of Nevada applicable to agreements made and
to be performed solely therein, without giving effect to principles of conflicts of law. EACH OF THE PARTIES (A) IRREVOCABLY CONSENTS
TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF OREGON, IN ANY AND ALL ACTIONS BETWEEN OR AMONG ANY OF THE PARTIES, WHETHER ARISING
HEREUNDER OR OTHERWISE, (B) IRREVOCABLY WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY SUCH ACTION, AND (C) IRREVOCABLY CONSENTS TO SERVICE
OF PROCESS BY FIRST CLASS CERTIFIED MAIL, RETURN RECEIPT REQUESTED, POSTAGE PREPAID, TO THE ADDRESS AT WHICH SUCH PARTY IS TO RECEIVE
NOTICE PURSUANT TO THE PROVISIONS OF THE AGREEMENT.


 


14. Reimbursement of Expenses. Payor
agrees to reimburse Payee for its out-of-pocket expenses, including the fees and expenses of its counsel, in connection with the
enforcement of this Agreement, the Notes or any of the Transaction Documents.




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IN WITNESS WHEREOF, and intending to be legally
bound hereby, Payor has caused this Note to be executed by its duly authorized officer as of the day and year first above written.


 


	 	PAYOR:
	 	 
	 	EASTSIDE DISTILLING, INC.
	 	 	 
	 	By:	 
	 	Name:  Steven Earles
	 	Title:  President


 




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