Document:

Exhibit 4.2

 

THE BANCORP, INC.

and

WILMINGTON TRUST, NATIONAL ASSOCIATION

as Trustee, Paying Agent and Security
Registrar

FIRST SUPPLEMENTAL INDENTURE

Dated as of August 13, 2020

 

 

 

    	 

    	 

    

 

Table of Contents

Page

	ARTICLE 1 DEFINITIONS	1
	1.01   Relation to Base Indenture	1
	1.02   Definition of Terms	1
	1.03   Conflicts with Base Indenture	2
	ARTICLE 2 GENERAL TERMS AND CONDITIONS OF THE NOTES; FORM OF NOTES	2
	2.01   Designation and Principal Amount	2
	2.02   Maturity	3
	2.03   Form, Payment and Appointment of Agents	3
	2.04   Global Note	4
	2.05   Interest	4
	2.06   No Sinking Fund	4
	2.07   Payment of the Notes	4
	ARTICLE 3 REDEMPTION OF THE NOTES	4
	3.01   Optional Redemption	5
	ARTICLE 4 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER, OR LEASE	5
	4.01   Merger	5
	4.02   Sale or Issuance of Capital Stock of Principal Subsidiary Bank	5
	ARTICLE 5 EVENTS OF DEFAULT	6
	5.01   Events of Default	6

    	i 

    	 

    

	5.02   Acceleration of Maturity; Rescission and Annulment	8
	ARTICLE 6 CERTAIN COVENANTS	8
	6.01   Existence	8
	ARTICLE 7 ISSUE OF NOTES	8
	7.01   Original Issue of Notes	8
	7.02   Further Issues of Notes	8
	ARTICLE 8 IMMUNITY OF STOCKHOLDERS,  EMPLOYEES, AGENTS, OFFICERS AND DIRECTORS	8
	8.01   Indenture and Notes Solely Corporate Obligations	8
	ARTICLE 9 MISCELLANEOUS	9
	9.01   Ratification of Indenture	9
	9.02   Conflict	9
	9.03   Trustee Not Responsible for Recitals; Rights, Protections, Immunities and Indemnities	9
	9.04   New York Law to Govern; Waiver of Jury Trial	9
	9.05   Separability	10
	9.06   Counterparts	10

 

 

 

    	ii 

    	 

    

THIS FIRST SUPPLEMENTAL INDENTURE (this
“Supplemental Indenture”), dated as of August 13, 2020, is between The Bancorp, Inc., a corporation duly
organized and existing under the laws of the State of Delaware (herein called the “Company”), and Wilmington
Trust, National Association, a national banking association, as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

WHEREAS, the Company has heretofore
executed and delivered a Senior Debt Indenture, dated as of August 13, 2020 (herein called the “Base Indenture”,
and as amended, supplemented and modified by this Supplemental Indenture, the “Indenture”), providing
for the issuance from time to time of series of the Company’s senior notes;

WHEREAS, Section 9.01(9) of the
Base Indenture provides for the Company and the Trustee to enter into an indenture supplemental to the Base Indenture to establish
the forms or terms of Securities of any series as permitted by Section 2.01 and Section 3.01 of the Base Indenture;

WHEREAS, pursuant to Section 3.01
of the Base Indenture, the Company wishes to provide for the issuance of $100,000,000 aggregate principal amount of a new series
of Securities to be known as its 4.750% Senior Notes due 2025 (herein called the “Notes”), the form and
terms of such Notes and the terms, provisions and conditions thereof to be set forth as provided in this Supplemental Indenture;
and

WHEREAS, the Company has requested
that the Trustee execute and deliver this Supplemental Indenture and all requirements necessary to make this Supplemental Indenture
a valid, binding and enforceable instrument in accordance with its terms, and to make the Notes, when executed by the Company and
authenticated and delivered by the Trustee, the valid, binding and enforceable obligations of the Company and the execution and
delivery of this Supplemental Indenture has been duly authorized in all respects.

NOW, THEREFORE, in consideration
of the covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE 1

DEFINITIONS

1.01
Relation to Base Indenture. This Supplemental Indenture constitutes an integral part of the Base Indenture.

1.02
Definition of Terms. For all purposes of this Supplemental Indenture:

(a)
capitalized terms used herein without definition shall have the meanings set forth in the Base Indenture;

(b)
a term defined anywhere in this Supplemental Indenture has the same meaning throughout;

    	1 

    	 

    

(c)
 the singular includes the plural and vice versa;

(d)
headings are for convenience of reference only and do not affect interpretation;

(e)
unless otherwise specified or unless the context requires otherwise, (i) all references in this Supplemental Indenture to
Sections refer to the corresponding Sections of this Supplemental Indenture and (ii) the terms “herein”, “hereof”,
“hereunder” and any other word of similar import refer to this Supplemental Indenture; and

(f)
the following terms have the meanings given to them in this Section 1.02(f):

“Capital Stock”
shall have the meaning set forth in Section 4.02.

“DTC” shall
have the meaning set forth in Section 2.03.

“Global Note”
shall have the meaning set forth in Section 2.04.

“Initial Notes”
shall have the meaning set forth in Section 7.01.

“Interest Payment Date”
shall have the meaning set forth in Section 2.05(b).

“Interest Period”
shall have the meaning set forth in Section 2.05(a).

“Principal Subsidiary Bank”
shall have the meaning set forth in Section 4.02.

“Maturity Date”
shall have the meaning set forth in Section 2.02.

“Voting Stock”
shall have the meaning set forth in Section 4.02.

The terms “Company,”
“Trustee,” “Base Indenture,” “Supplemental Indenture,”
“Indenture,” and “Notes” shall have the respective meanings set forth in the
recitals to this Supplemental Indenture and the paragraph preceding such recitals.

1.03
Conflicts with Base Indenture. In the event that any provision of this Supplemental Indenture expressly limits, qualifies
or conflicts with a provision of the Base Indenture, such provision of this Supplemental Indenture shall control with respect to
the Notes.

ARTICLE 2

GENERAL TERMS AND CONDITIONS OF THE NOTES; FORM OF NOTES

2.01
Designation and Principal Amount. The Notes may be issued from time to time upon Company Order for the authentication
and delivery of Notes pursuant to Section 3.03 of the Base Indenture. There is hereby authorized a series of Securities designated
as the 4.750% Senior Notes due 2025 having an initial aggregate principal amount of $100,000,000. The changes, modifications and
supplements to the Base Indenture effected by this Supplemental Indenture shall be applicable only with respect to, and govern
the terms of, the Notes and shall not apply to any other series of Securities that may be issued under the Base Indenture unless
a supplemental

    	2 

    	 

    

indenture with respect to such other series of Securities
specifically incorporates such changes, modifications and supplements.

2.02
Maturity. The date upon which the Notes shall become due and payable at final maturity, together with any accrued
and unpaid interest, is August 15, 2025 (the “Maturity Date”).

2.03
Form, Payment and Appointment of Agents. The Notes and the Trustee’s Certificate of Authentication to be endorsed
thereon are to be substantially in the forms attached as Exhibit A hereto and shall bear the legend set forth on Exhibit A in lieu
of that set forth in Section 2.04 of the Base Indenture, with such changes therein as the officers of the Company executing the
Notes (by manual or facsimile signature) may approve, such approval to be conclusively evidenced by their execution thereof. Except
as provided in Section 3.05 of the Base Indenture, the Notes will be issued only in book-entry form as Global Securities. Principal
of and interest on the Notes will be payable in global form registered in the name of or held by The Depository Trust Company (“DTC”)
or its nominee in immediately available funds to DTC or its nominee, as the case may be, as the registered Holder of such Global
Note. The principal of any certificated Notes will be payable at the office or agency of the Company maintained for such purpose
which shall initially be the principal office of the Trustee at 1100 North Market Street, Wilmington, Delaware 19890, Attn: The
Bancorp, Inc. Administrator; provided, however, that payment of interest may be made at the option of the Company by check mailed
to the Person entitled thereto at such address as shall appear in the Security Register or by wire transfer to an account appropriately
designated by the Person entitled to payment; provided that the Paying Agent shall have received written notice of such account
designation at least five Business Days prior to the date of such payment (subject to surrender of the relevant Note in the case
of a payment of interest on the Maturity Date).

The Company hereby appoints the Trustee
to act as Security Registrar and Paying Agent for the Notes.

The Notes will be issuable and may be
transferred only in minimum denominations of $1,000 or any amount in excess thereof that is an integral multiple of $1,000. The
specified currency of the Notes shall be U.S. Dollars.

Notwithstanding any other provisions
of the Indenture, (i) all payments on Global Notes may be made pursuant to the Applicable Procedures and (ii) any notice required
to be given to Holders of the Notes under the Indenture shall be sufficiently given if given to DTC (or its designee), pursuant
to the Applicable Procedures, not later than the latest date (if any), and not earlier than the earliest date (if any), prescribed
for the giving of such notice.

In any case where any Interest Payment
Date, Redemption Date or Maturity Date of the Notes shall not be a Business Day at any Place of Payment, then (notwithstanding
any other provision of the Indenture or of the Notes) payment of interest or principal (and premium, if any), need not be made
at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same
force and effect as if made on the Interest Payment Date or Redemption Date, or the Maturity Date, as the case may be.

    	3 

    	 

    

2.04
 Global Note. The Notes shall be issued initially in the form of one or more fully registered Global Securities (each
such Global Security, a “Global Note”) deposited with DTC or its designated custodian or such other Depositary
as any officer of the Company may from time to time designate to the Trustee in writing. Unless and until a Global Note is exchanged
for Notes in certificated form, such Global Note may be transferred, in whole but not in part, and any payments on the Notes shall
be made, only to DTC or a nominee of DTC, or to a successor Depositary selected or approved by the Company or to a nominee of such
successor Depositary.

2.05
Interest.

(a)
Interest payable on any Interest Payment Date, Redemption Date or the Maturity Date with respect to the Notes shall be the
amount of interest accrued from, and including, the immediately preceding Interest Payment Date in respect of which interest has
been paid or duly provided for (or from and including the original issue date of August 13, 2020, if no interest has been paid
or duly provided for with respect to the Notes) to, but excluding, such Interest Payment Date or Redemption Date or Maturity Date,
as the case may be (each, an “Interest Period”).

(b)
The Notes will bear interest at the rate of 4.750% per annum from August 13, 2020 until the principal of the Notes has been
paid in full or a sum sufficient to pay the principal of the Notes has been made available for payment. Interest on the Notes shall
be payable semi-annually in arrears on March 15 and September 15 of each year (each, an “Interest Payment Date”),
commencing March 15, 2021, to the Persons in whose names the relevant Notes are registered at the close of business on the March
1 and September 1 immediately preceding the applicable Interest Payment Date (each such date, a “Regular Record Date”).

(c)
The amount of interest payable for any Interest Period will be computed on the basis of a 360-day year consisting of twelve
30-day months.

(d)
Interest due on the Maturity Date (whether or not an Interest Payment Date) of any Notes will be paid to the Person to whom
principal of such Notes is payable.

2.06
No Sinking Fund. The Notes are not be subject to repayment at the option of any Holder at any time prior to maturity
and are not entitled to any sinking fund.

2.07
Payment of the Notes. Not later than 10:00 a.m. (New York City time) on each due date of the principal of, premium,
if any, and interest on any Notes, the Company shall deposit with the Paying Agent money in immediately available funds sufficient
to pay such principal, redemption payments, premium, if any, and interest so becoming due. All the payments must be in U.S. Dollars.

ARTICLE 3

REDEMPTION OF THE NOTES

The provisions of this Article 3 apply
solely with respect to the Notes and all references to Holders in this Article 3 shall be solely to Holders of the Notes.

    	4 

    	 

    

3.01
 Optional Redemption. The Notes are not subject to redemption at the option of the Company at any time except as
described in this Article 3 and Article XI of the Base Indenture (as amended by this Article 3).

On or after the 30th day prior
to the Maturity Date of the Notes, the Notes will be redeemable at the option of the Company in whole or in part at a Redemption
Price equal to 100% of the principal amount of the Notes to be redeemed plus, in each case, accrued interest to but excluding the
Redemption Date.

If the Company elects to redeem the Notes
pursuant to this Section 3.01, the Company will provide notice of redemption not less than 10 days nor more than 60 days prior
to the Redemption Date to each Holder of Notes to be redeemed in accordance with Section 11.04 of the Base Indenture.

ARTICLE 4

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER, OR LEASE

The provisions of this Article 4 apply
solely with respect to the Notes.

4.01
Merger. In addition to the requirements set forth in Section 8.01 of the Base Indenture, the Company shall not consolidate
with or merge into any other Person or convey, transfer, or lease its properties and assets substantially as an entirety to any
Person, and the Company shall not permit any Person to consolidate with or merge into the Company or convey, transfer, or lease
its properties and assets substantially as an entirety to the Company if, as a result of any such consolidation or merger or such
conveyance, transfer or lease, properties or assets of the Company would become subject to a mortgage, pledge, lien, security interest
or other encumbrance which would not be permitted by the Indenture, unless the Company or such successor Person, as the case may
be, shall take such steps as shall be necessary effectively to secure the Notes equally and ratably with (or prior to) all indebtedness
secured thereby.

4.02
Sale or Issuance of Capital Stock of Principal Subsidiary Bank. Except as otherwise provided herein or in Article
VIII of the Base Indenture, the Company shall not, directly or indirectly: (a) sell, assign, pledge, transfer or otherwise dispose
of, or permit to be issued, any shares of Capital Stock of a Principal Subsidiary Bank or any securities convertible into or rights
to subscribe to such Capital Stock, unless, after giving effect to (i) such sale, pledge, assignment, transfer, disposition or
issuance, and (ii) the conversion of such securities into, or exercise of such rights with respect to, such Capital Stock, the
Company will own, directly or indirectly, at least 80% of the outstanding shares of Capital Stock of each class of Capital Stock
of such Principal Subsidiary Bank; or (b) pay any dividend in Capital Stock of a Principal Subsidiary Bank or make any other distribution
in Capital Stock of a Principal Subsidiary Bank, unless the Principal Subsidiary Bank to which the transaction relates, after obtaining
any necessary regulatory approvals, unconditionally guarantees payment of the principal and any premium and interest on the Notes;
provided, however, that the foregoing shall not prohibit any of the following: (1) any dispositions made by the Company or any
Principal Subsidiary Bank of the Company (A) acting in a fiduciary capacity for any Person other than the Company or any Principal
Subsidiary Bank of the Company or (B) to the Company or any wholly-owned Subsidiary; (2) the merger or consolidation of a Principal
Subsidiary Bank with

    	5 

    	 

    

and into another Principal Subsidiary Bank; (3) the sale,
assignment, pledge, transfer or other dispositions of shares of Voting Stock of a Principal Subsidiary Bank made by the Company
or any Subsidiary of the Company if: (A) the sale, assignment, pledge, transfer or other disposition is made, in the minimum amount
required by law, to any Person for the purpose of the qualification of such Person to serve as a director; or (B) the sale, assignment,
pledge, transfer or other disposition is made in compliance with an order of a court or regulatory authority of competent jurisdiction
or as a condition imposed by any such court or regulatory authority to the acquisition by the Company or any Principal Subsidiary
Bank of the Company, directly or indirectly, of any other Person; or (C) the sale, assignment, pledge, transfer or other disposition
of Voting Stock or any other securities convertible into or rights to subscribe to Voting Stock of a Principal Subsidiary Bank,
so long as: (i) any such transaction is made for fair market value as determined by the Board of Directors or the board of directors
of the Principal Subsidiary Bank of the Company disposing of such Voting Stock or other securities or rights, and (ii) after giving
effect to such transaction and to any potential dilution, the Company and its wholly-owned Subsidiaries will own, directly or indirectly,
at least 80% of the Voting Stock of such Principal Subsidiary Bank; (4) any Principal Subsidiary Bank from selling additional shares
of Voting Stock to its shareholders at any price, so long as immediately after such sale, the Company owns, directly or indirectly,
at least as great a percentage of the Voting Stock of such Principal Subsidiary Bank as the Company owned prior to such sale of
additional shares; or (5) a pledge made or a lien created to secure loans or other extensions of credit by a Principal Subsidiary
Bank subject to Section 23A of the Federal Reserve Act. As used herein, “Capital Stock” shall mean any
shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated)
the equity of such Person, including any preferred stock, but excluding any debt securities convertible into such equity, “Voting
Stock” shall mean stock which ordinarily has voting power for the election of directors, whether at all times or
only so long as no senior class of stock has such voting power by reason of any contingency, and “Principal Subsidiary
Bank” shall mean any subsidiary of the Company that is a bank or trust company organized and doing business under
any state or federal law, the consolidated assets of which constitute 50% or more of the consolidated assets of the Company.

ARTICLE 5

EVENTS OF DEFAULT

5.01
Events of Default. Solely with respect to the Notes, Section 5.01 of the Base Indenture is hereby replaced in its
entirety by the following:

“Section 5.01. Events of Default.
“Event of Default,” wherever used herein with respect to the Notes, means any one of the following events
with respect to the Notes (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

(1)default
in the payment of any interest upon any Note when it becomes due and payable (as extended or deferred), and continuance of such
default for a period of 90 days; or

(2)default
in the payment of the principal of, any premium or sinking fund payment, if any, on any Note at its Maturity; or

    	6 

    	 

    

(3)default
in the performance, or breach, of any covenant or warranty of the Company in this Indenture, and continuance of such default or
breach for a period of 90 days after there has been given, by registered or certified mail, to the Company by the Trustee or to
the Company and the Trustee by the Holders of at least 30% in aggregate principal amount of the Outstanding Notes a written notice
specifying such default or breach and requiring it to be remedied within a specified time after receipt of such notice and stating
that such notice is a “Notice of Default” hereunder; or

(4)the
entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Company in an involuntary
case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or (B) a decree
or order adjudging the Company a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement,
adjustment or composition of or in respect of the Company under any applicable Federal or State law, or appointing a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its
property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order for relief
or any such other decree or order unstayed and in effect for a period of 90 consecutive days (provided that, if any Person becomes
the successor to the Company pursuant to Article VIII and such Person is organized and validly existing under the law of
a jurisdiction outside the United States, each reference in this Clause (4) to an applicable Federal or State law of a particular
kind shall be deemed to refer to such law or any applicable comparable law of such non-U.S. jurisdiction, for as long as such
Person is the successor to the Company hereunder and is so organized and existing); or

(5)the
commencement by the Company of a voluntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization
or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the
entry of a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable Federal
or State bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case
or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable
Federal or State law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its
property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability
to pay its debts generally as they become due, or the taking of corporate action by the Company in furtherance of any such action
(provided that, if any Person becomes the successor to the Company pursuant to Article VIII and such Person is organized
and validly existing under the law of a jurisdiction outside the United States, each reference in this Clause (5) to an applicable
Federal or State law of a particular kind shall be deemed to refer to such law or any applicable comparable law of such non-U.S.
jurisdiction, for as long as such Person is the successor to the Company hereunder and is so organized and existing); or

(6)in
the event a receiver, conservator or similar official is appointed for the Company’s principal banking subsidiary (which,
for the avoidance of doubt, as of the date hereof, is The Bancorp Bank); or

    	7 

    	 

    

(7)a
default under a bond, debenture, note or other evidence of indebtedness for money borrowed by the Company that has a principal
amount outstanding that is more than $10.0 million (other than non-recourse indebtedness) under the terms of the instrument under
which the indebtedness is issued or secured, which default has caused the indebtedness to become due and payable earlier than it
would otherwise have become due and payable, and the acceleration has not been rescinded or annulled, or the indebtedness has not
been discharged, or there has not been deposited in trust enough money to discharge the indebtedness, and continuance of such default
or breach for a period of 30 days after there has been given, by registered or certified mail, to the Company by the Trustee or
to the Company and the Trustee by the Holders of at least 30% in aggregate principal amount of the Outstanding Notes a written
notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of
Default” under this Indenture.”

5.02
Acceleration of Maturity; Rescission and Annulment. Solely with respect to the Notes, all references in the Base
Indenture to “Section 5.01(4)” and/or “Section 5.01(5)” shall be deemed to also include a reference to
“Section 5.01(6)”.

ARTICLE 6

CERTAIN COVENANTS

6.01
Existence. Section 10.04 of the Base Indenture is hereby deleted in its entirety solely with respect to the Notes.

ARTICLE 7

ISSUE OF NOTES

7.01
Original Issue of Notes. The aggregate principal amount of Notes that initially may be authenticated and delivered
under this Supplemental Indenture (the “Initial Notes”) shall be limited to $100,000,000, subject to
increase as set forth in Section 7.02 of this Supplemental Indenture

7.02
Further Issues of Notes. The Company may from time to time, without notice to or the consent of the Holders of the
Notes, increase the aggregate principal amount of the Notes by issuing additional Notes in the future with the same terms and conditions
as the Initial Notes, except for any differences in the issue date, the issue price and the initial Interest Payment Date,
and with the same CUSIP number as the Initial Notes; provided that if any additional Notes are not fungible with
the Initial Notes for U.S. federal income tax purposes, such additional Notes will be issued under a separate CUSIP number. The
Initial Notes and any additional Notes would rank equally and ratably and would be treated as a single series for all purposes
under the Indenture.

ARTICLE 8

IMMUNITY OF STOCKHOLDERS,

EMPLOYEES, AGENTS, OFFICERS AND DIRECTORS

8.01
Indenture and Notes Solely Corporate Obligations. No recourse for the payment of the principal of or interest on
any Note, or for any claim based thereon or otherwise in respect thereof, shall be had against any stockholder, employee, agent,
officer or director, as such, past,

    	8 

    	 

    

present or future, of the Company or of any successor corporation;
it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration
for, the execution of this Supplemental Indenture and the issue of the Notes.

ARTICLE 9

MISCELLANEOUS

9.01
Ratification of Indenture. The Base Indenture, as supplemented by this Supplemental Indenture, is in all respects
ratified and confirmed, and this Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent
herein and therein provided; provided, however, that the provisions of this Supplemental Indenture apply solely with respect
to the Notes.

9.02
Conflict. If any provision hereof limits, qualifies or conflicts with another provision hereof which is required
to be included in this Supplemental Indenture by any of the provisions of the Trust Indenture Act of 1939, as amended, such required
provision shall control.

9.03
Trustee Not Responsible for Recitals; Rights, Protections, Immunities and Indemnities. The recitals in this Supplemental
Indenture are made by the Company only and not by the Trustee, and the Trustee assumes no responsibility for their correctness.
The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture or of the Notes. The Trustee
shall not be accountable for the use or application by the Company of the Notes or the proceeds thereof. All of the provisions
contained in the Base Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable
in respect of the Notes and of this Supplemental Indenture as fully and with like effect as if set forth herein in full.

9.04
New York Law to Govern; Waiver of Jury Trial. THIS SUPPLEMENTAL INDENTURE AND EACH NOTE SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF SAID STATE. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT
TO TRIAL BY JURY IN ANY LEGAL PROCEEDING AMONG THE PARTIES HERETO ARISING OUT OF OR RELATING TO THE INDENTURE, THE NOTES OR THE
TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

The Company irrevocably
consents and agrees, for the benefit of the Holders from time to time of the Notes and the Trustee, that any legal action, suit
or proceeding against it with respect to obligations, liabilities or any other matter arising out of or in connection with the
Indenture or the Notes may be brought in the courts of the State of New York or the courts of the United States located in the
Borough of Manhattan, New York City, New York and, until amounts due and to become due in respect of the Notes have been paid,
hereby irrevocably consents and submits to the non-exclusive jurisdiction of each such court in personam, generally and
unconditionally with respect to any action, suit or proceeding for itself in respect of its properties, assets and revenues.

    	9 

    	 

    

The Company irrevocably
and unconditionally waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying
of venue of any of the aforesaid actions, suits or proceedings arising out of or in connection with the Indenture or the Notes
brought in the courts of the State of New York or the courts of the United States located in the Borough of Manhattan, New York
City, New York and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that
any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

9.05
Separability. In case any one or more of the provisions contained in this Supplemental Indenture or in the Notes
shall for any reason be held to be invalid, illegal or unenforceable in any respect, then, to the extent permitted by law, such
invalidity, illegality or unenforceability shall not affect any other provisions of this Supplemental Indenture or of the Notes,
but this Supplemental Indenture and the Notes shall be construed as if such invalid or illegal or unenforceable provision had never
been contained herein or therein.

9.06
Counterparts. This Supplemental Indenture may be executed in any number of counterparts, each of which shall be an
original, but such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Supplemental
Indenture and of signature pages by facsimile or electronic format (e.g., “.pdf” or “.tif”) transmission
shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu
of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or electronic
format (e.g., “.pdf” or “.tif”) shall be deemed to be their original signatures for all purposes. The use
of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated,
sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as
a manually executed signature or use of a paper-based recordkeeping system to the fullest extent permitted by applicable law, including
the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act
and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or
the Uniform Commercial Code; provided that, notwithstanding anything herein to the contrary, the Trustee is not under any obligation
to agree to accept electronic signatures in any form or in any format unless expressly agreed to by such Trustee pursuant to procedures
approved by such Trustee, except such acceptance shall not be unreasonably withheld or delayed. The Company agrees to assume all
risks arising out of the use of using digital signatures and electronic methods to submit communications to the Trustee, including
without limitation the risk of the Trustee acting on unauthorized instructions, and the risk of interception and misuse by third
parties.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK.]

 

    	10 

    	 

    

IN WITNESS WHEREOF, the parties hereto
have caused this First Supplemental Indenture to be duly executed, as of the day and year first written above.

	 	THE BANCORP, INC.
	 	 	 	 
	 	By:	/s/ Damian Kozlowski	 
	 	Name:	Damian Kozlowski	 
	 	Title:	Chief Executive Officer and President	 

 

 

 

 

 

 

 

 

 

 

 

[The Bancorp, Inc. —Signature Page to First Supplemental
Indenture]

 

 

    	 

    	 

    

 

	 	WILMINGTON TRUST, NATIONAL ASSOCIATION
	 	 	 	 
	 	as Trustee
	 	 	 	 
	 	By:	/s/ Michael Wass	 
	 	Name:	Michael Wass	 
	 	Title:	Vice President	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[The Bancorp, Inc. —Signature Page to First Supplemental
Indenture]

 

 

    	 

    	 

    

EXHIBIT A

Form of Note

THIS NOTE IS AN UNSECURED DEBT OBLIGATION OF THE BANCORP,
INC. (THE “COMPANY”). THIS NOTE IS NOT A DEPOSIT OR SAVINGS ACCOUNT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY OR A SUCCESSOR
DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS NOTE FOR ALL PURPOSES.
THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED HEREIN AND IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS
A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE
OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED HEREIN AND IN THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE BANCORP, INC., AS ISSUER, OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

    	A-1 

    	 

    

 

THE BANCORP, INC.

4.750% SENIOR NOTES DUE 2025

	No. [1]	U.S.$	 

CUSIP NO. 05969AAA3

ISIN NO. US05969AAA34

The Bancorp, Inc., a Delaware corporation (herein called
the “Company”, which term includes any successor Person under the Indenture referred to on the reverse
hereof), for value received, hereby promises to pay to Cede & Co., or its registered assigns, the principal sum of _____________
United States Dollars (as may be increased or decreased as reflected on the Schedule
of Increases and Decreases in Global Security attached hereto) on August 15, 2025 and all accrued and unpaid interest thereon on
August 15, 2025, or if such day is not a Business Day, the following Business Day. The Company further promises to pay interest
on said principal sum from and including August 13, 2020, or from the most recent Interest Payment Date (as defined below) to which
interest has been paid or duly provided for, semiannually in arrears on March 15 and September 15 in each year (each an “Interest
Payment Date”), commencing March 15, 2021 at the rate of 4.750% per annum, computed for any full semiannual period
on the basis of a 360-day year of twelve 30-day months and computed for any partial semiannual period on the actual days elapsed
during such period, until the principal hereof is due, and at the rate of 4.750% per annum on any overdue principal amounts, and,
to the extent permitted by law, on any overdue interest.

The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Note (or one or
more Predecessor Securities) is registered at the close of business on March 1 or September 1, as the case may be, of each year
(whether or not a Business Day) (each such date, a “Regular Record Date”). Interest on the Outstanding
Notes payable at maturity will be payable to the persons to whom principal is payable. Except as otherwise provided in the Indenture,
any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Company, with notice
thereof to be given by the Trustee to Holders of Notes not less than 10 days prior to the Special Record Date, or be paid at any
time in any other lawful manner not inconsistent with the requirements of any automated quotation system or securities exchange
on which the Notes may be quoted or listed, and upon such notice as may be required by such system or exchange, all as more fully
provided in the Indenture.

All terms used in this Note which are defined in the Indenture
and not otherwise defined herein shall have the meanings assigned to them in the Indenture.

Payment of principal and interest shall be made at the Corporate
Trust Office of the Trustee, or at such other office or agency of the Company as may be designated by the Company for such purpose,
in such coin or currency of the United States of America as at the time of payment is

    	A-2 

    	 

    

legal tender for the payment of public and private debts,
by Dollar check drawn on, or transfer to, a Dollar account. Payments of interest on this Note may be made by Dollar check, drawn
on a Dollar account, mailed to the address of the Person entitled thereto as such address shall appear in the Security Register,
or, upon written application by the Holder to the Security Registrar setting forth wire instructions not later than the relevant
Regular Record Date, by transfer to a Dollar account.

Except as specifically provided herein and in the Indenture,
the Company shall not be required to make any payment with respect to any tax, assessment or other governmental charge imposed
by any government or any political subdivision or taxing authority thereof or therein.

Reference is hereby made to the further provisions of this
Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this
place.

Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof or an Authenticating Agent by the manual signature of one of their respective
authorized signatories, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

[Signature Page Follows]

 

 

 

 

 

 

 

 

    	A-3 

    	 

    

IN WITNESS WHEREOF, the Company has caused
this Note to be duly executed and delivered.

	 	THE BANCORP, INC.
	 	 	 	 
	 	 	 	 
	 	By:  	 	 
	 	Name:	 	 
	 	Title:	 	 

(Trustee’s Certificate of Authentication)

This is one of the Securities of the series designated herein and
referred to in the within-mentioned Indenture.

 

	 	WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee
	 	 	 
	 	 	 
	Dated:	By:  	 
	 	 	Authorized Signatory

 

 

 

 

 

 

    	A-4 

    	 

    

[FORM OF REVERSE SIDE OF THE NOTE]

This Note is one of a duly authorized issue of senior debt
securities of the Company designated as its “4.750% Senior Notes due 2025” (the “Notes”).
This Note is a “Security” and the Notes are “Securities” under the Indenture (as defined below). The Notes,
taken together, are initially limited in aggregate principal amount to U.S.$ issued and are to be issued under an Indenture,
dated as of August 13, 2020 (herein called the “Base Indenture”), between the Company and Wilmington
Trust, National Association, as Trustee (the “Trustee”, which term includes any successor trustee under
the Base Indenture), as amended and supplemented by the First Supplemental Indenture, dated as of August 13, 2020 between the Company
and the Trustee (the “Supplemental Indenture”; the Base Indenture, as amended and supplemented by the
Supplemental Indenture, the “Indenture”), to which Indenture and all applicable indentures supplemental
thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated
and delivered. As provided in the Indenture and subject to certain limitations therein set forth, Notes are exchangeable for a
like aggregate principal amount of Notes of any authorized denominations as requested by the Holder surrendering the same upon
surrender of the Note or Notes to be exchanged, at the Corporate Trust Office of the Trustee. The Trustee upon such surrender by
the Holder will issue the new Notes in the requested denominations.

On or after July 15, 2025, the Notes will be redeemable in
whole or in part at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed plus in each case accrued
interest to but excluding the Redemption Date.

The Notes are not be subject to repayment at the option of
any Holder at any time prior to maturity and are not entitled to any sinking fund.

The Notes are unsecured and rank equally with all of the
Company’s other unsecured and unsubordinated indebtedness.

The Notes are issuable only in registered form without coupons
in minimum denominations of $1,000 and integral multiples of $1,000 in excess thereof.

The Company may, without consent of the Holders of the Notes,
increase the aggregate principal amount of the Notes by issuing additional Notes in the future on the same terms and conditions
as the Notes, except for any difference in the issue price and initial Interest Payment Date, and with the same CUSIP number as
the Notes. The Notes and any additional Notes issued by the Company would rank equally and ratably and would be treated as a single
series for all purposes under the Indenture.

In any case where the due date for the payment of the principal
of or interest on any Note at any Place of Payment, as the case may be, is not a Business Day, then payment of principal or interest
need not be made on or by such date at such place but may be made on or by the next succeeding Business Day, with the same force
and effect as if made on the date for such payment, and no interest shall accrue on the amount so payable for the period after
such date.

    	A-5 

    	 

    

If an Event of Default shall occur and be continuing, the
principal of all the Notes, together with accrued interest to the date of declaration, may be declared due and payable in the manner
and with the effect provided in the Indenture.

The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders
of the Notes under the Indenture at any time by the Company and the Trustee with the written consent of the Holders of a majority
in aggregate principal amount of the Notes at the time Outstanding. The Indenture also contains provisions permitting the Holders
of specified percentages in principal amount of the Notes at the time Outstanding, on behalf of the Holders of all the Notes, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all
future Holders of this Note and of any Note issued in exchange herefor or in lieu hereof whether or not notation of such consent
or waiver is made upon this Note or such other Note.

As provided in and subject to the provisions of the Indenture,
the Holder of this Note shall not have the right to institute any proceeding with respect to the Indenture or for the appointment
of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written
notice of a continuing Event of Default, the Holders of not less than 30% in aggregate principal amount of the Outstanding Notes
shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered
the Trustee indemnity satisfactory to it and the Trustee shall not have received from the Holders of a majority in aggregate principal
amount of the Outstanding Notes a direction inconsistent with such request, and shall have failed to institute any such proceeding,
for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted
by any Holder of this Note for the enforcement of any payment of principal of or interest on this Note or after the respective
due dates expressed herein.

No reference herein to the Indenture and no provision of
this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and interest on this Note at the times, places and rate, and in the coin or currency, herein prescribed.

The Notes will be subject to defeasance and covenant defeasance
pursuant to Sections 12.02 and 12.03 of the Base Indenture.

As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Note is registrable on the Security Register upon surrender of this Note for registration
of transfer at the Corporate Trust Office of the Trustee or at such other office or agency of the Company as may be designated
by it for such purpose (which shall initially be an office or agency of the Trustee), or at such other offices or agencies as the
Company may designate, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company
and the Security Registrar duly executed by, the Holder thereof or his attorney duly authorized in writing, and thereupon one or
more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee
or transferees by the Security Registrar. No service charge shall be made for any such registration

    	A-6 

    	 

    

of transfer or exchange, but the Company may require payment
of a sum sufficient to recover any tax or other governmental charge payable in connection therewith.

Prior to due presentation of this Note for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is
registered, as the owner thereof for all purposes, whether or not such Note be overdue, and neither the Company, the Trustee nor
any such agent shall be affected by notice to the contrary.

No recourse for the payment of the principal of or interest
on this Note and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or any indenture
supplemental thereto or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, employee, agent, officer or director or subsidiary, as such, past, present or future, of the Company
or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being,
by the acceptance hereof and as part of consideration for the issue hereof, expressly waived and released.

THE NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

All terms used in this Note which are defined in the Indenture
and not otherwise defined herein shall have the meanings assigned to them in the Indenture.

 

 

    	A-7 

    	 

    

 

ASSIGNMENT FORM

FOR VALUE RECEIVED, the undersigned hereby sells, assigns
and transfers unto

 

[PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE]

 

[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE,
OF ASSIGNEE]

the within book-entry Security, and all rights thereunder,
hereby irrevocably constituting and appointing _______________________________________________ attorney to transfer such security
on the books of the Company, with full power of substitution in the premises.

	Your Signature: 	 
	Your Name:  	 
	Date:  	 

 

		NOTICE:	The signature to this assignment must correspond with the name as written upon the face of the within book-entry Security in
every particular without alteration or enlargement or any change whatsoever.

 

 

 

SIGNATURE GUARANTEE

 

Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of e Security Registrar, which requirements include membership or participation in the Security Transfer
Agent Medallion Program ("ST AMP") or such other "signature guarantee program" as may be determined by the
Security Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as
amended.

 

 

 

 

 

    	A-8 

    	 

    

 

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL
SECURITY

The initial principal amount of this
Global Security is $100,000,000. The following increases and decreases in this Global Security have been made:

 

	 	 	 	 	 	 	 	 	 
	Date of Increase or Decrease	 	
        Amount of

        increase in

        Principal Amount

        of this Global

        Security
	 	
        Amount of

        decrease in

        Principal Amount

        of this Global

        Security
	 	
        Principal Amount

        of this Global

        Security following

        each decrease or

        increase
	 	
        Signature of

        authorized

        signatory of

        Trustee

 

 

 

 

 

 

    	A-9Exhibit 10.44 

 

SECOND
MODIFICATION TO LOAN AGREEMENT

 

THIS
SECOND MODIFICATION TO LOAN AGREEMENT (this “Modification Agreement”) is made effective as of the 3rd
day of June, 2020 (“Modification Effective Date”), by, between and among LIVE OAK BANKING COMPANY,
a North Carolina banking corporation (“Lender”), EASTSIDE DISTILLING INC., a Nevada corporation (“Eastside”),
MOTHERLODE LLC, an Oregon limited liability company (“MotherLode”), BIG BOTTOM DISTILLING, LLC,
an Oregon limited liability company (“Big Bottom”), CRAFT CANNING + BOTTLING, LLC, an Oregon limited
liability company (“Craft”), REDNECK RIVERA WHISKEY CO., LLC, a Tennessee limited liability company
(“Redneck”), and OUTLANDISH BEVERAGES LLC, an Oregon limited liability company (“Outlandish”,
Eastside, MotherLode, Big Bottom, Craft, Redneck and Outlandish are hereinafter collectively, “Borrowers”).

 

RECITALS

 

WHEREAS,
Borrowers and Lender are parties to that certain Loan Agreement, dated January 15, 2020, as amended by that certain First Modification
to Loan Agreement, dated February 20, 2020 (as amended to date, “Loan Agreement”), pursuant to which Lender
agreed to provide Borrowers with a loan, the outstanding balance of which shall at no time exceed Eight Million and 00/100 Dollars
($8,000,000.00) (“Loan Amount”), as evidenced by the Note, and secured by, among other things, the Security
Agreement, each as defined in the Loan Agreement; and

 

WHEREAS,
Lender and Borrowers have agreed to enter into this Modification Agreement to reflect certain agreed-upon changes to the Loan
Agreement, including, as the parties deem necessary, appropriate or desirable in connection with the foregoing. Capitalized terms
used but not otherwise defined in this Modification Agreement shall have the meanings ascribed to such terms, respectively, as
provided in the Loan Agreement.

 

NOW,
THEREFORE, for and in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.
Recitals. The foregoing Recitals shall be deemed a material and substantive part of this Modification Agreement and
are hereby incorporated by this reference herein as if fully set forth below.

 

2.
Definitions. For purposes of this Modification Agreement, the following terms shall have the meanings provided below:

 

2.1
“Modification Loan Documents” means this Modification Agreement, together with any other instruments, certificates,
statements, affidavits, financing statements and other documents contemplated under this Modification Agreement.

 

    	Modification to Loan Agreement  

    	 

    

 

3.
Modifications to Loan Agreement. As of the Modification Effective Date, the Loan Agreement is hereby modified as hereinafter
set forth:

 

3.1
Amendment to Section 5.05. Section 5.05 of the Loan Agreement is amended and, as so amended, restated in its entirety as follows:

 

“5.05
Financial Reports and Other Data. Furnish to Lender as soon as available, and in any event: (A) within ninety (90) days
after the end of each Fiscal Year, an audited consolidated balance sheet and statement of income and surplus of Eastside and its
Subsidiaries, showing the financial condition of Eastside and its Subsidiaries on a consolidated basis at the close of such Fiscal
Year and the results of operations during such year, prepared by independent certified public accountants selected by the Borrowers;
(B) within forty five (45) days after the end of each of the first three Fiscal Quarters of each Fiscal Year, consolidated financial
statements for Eastside and its Subsidiaries, certified by the President or Treasurer or other appropriate financial officer of
Eastside as fairly presenting in all material respects the financial condition, results of operations and cash flows of Eastside
and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes,
such balance sheets to be as of the end of such Fiscal Quarter, and such statements of income and surplus to be for the period
from the beginning of the Fiscal Year to the end of such Fiscal Quarter, in each case subject only to audit and year-end adjustment;
(C) within thirty (30) days after the end of each calendar month, consolidated financial statements for Eastside and its Subsidiaries,
certified by the President or Treasurer or other appropriate financial officer of Eastside as fairly presenting in all material
respects the financial condition, results of operations and cash flows of Eastside and its Subsidiaries in accordance with GAAP,
subject only to normal year-end audit adjustments and the absence of footnotes, such balance sheets to be as of the end of such
calendar month, and such statements of income and surplus to be for both (i) the period from the beginning of such calendar month
to the end of such calendar month, and (ii) the period from the beginning of the Fiscal Year to the end of such calendar month,
in each case subject only to audit and year-end adjustment; (D) within thirty (30) days after the end of each Fiscal Year, board-approved
projections of Eastside and its Subsidiaries (income statement and balance sheet) for each of the twelve (12) months during the
following Fiscal Year; (E) within thirty (30) days after the end of each calendar month, an Accounts Receivable aging report,
accounts payable aging report and an Inventory report (including a listing of any warehouses or bailees holding Eligible Inventory)
for the Borrowers; (F) concurrently with the delivery of the financial statements required by subsection (C) above, a compliance
certificate executed by the President or Treasurer of Borrower Representative or other financial officer satisfactory to Lender
in the form of Exhibit B attached hereto and made a part hereof; (G) updated financial statements and/or balance sheets
from time to time upon Lender’s request; (H) within thirty (30) days after the end of each calendar month, bank statements
for all deposit accounts of Borrowers maintained outside of Live Oak Bank; and (I) within thirty (30) days of the timely filing
thereof, copies of all tax returns filed by any Borrower with the U.S. Internal Revenue Service or other federal, state or local
taxing authority. All financial statements prepared and provided to Lender pursuant to this Section 5.05 shall be prepared in
accordance with GAAP, subject, in the case of unaudited financial statements, to normal year-end audit adjustments and the absence
of footnotes. Documents required to be delivered pursuant to the terms hereof (to the extent any such documents are included in
materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered
on the date on which Borrowers post such documents, or provides a link thereto, on such Borrower’s website on the internet
at such Borrower’s website address.”

 

    	Modification to Loan Agreement  

    	 

    

 

3.2
Amendment to Exhibit B. Exhibit B attached to the Loan Agreement is amended and, as so amended, restated in its entirety in
the form of Exhibit B attached hereto.

 

4.
Default Waiver.

 

4.1
Existing Defaults. The Borrowers are currently in default under the Loan Agreement as a result of (i) the Borrowers’
failure to deliver, within thirty (30) days after the end of the calendar months ending January 31, 2020, February 29, 2020, and
March 31, 2020, consolidated financial statements for Eastside and its Subsidiaries, certified by the President or Treasurer or
other appropriate financial officer of Eastside as fairly presenting in all material respects the financial condition, results
of operations and cash flows of Eastside and its Subsidiaries in accordance with GAAP, as required by Section 5.05(C) of the Loan
Agreement, (ii) the Borrowers’ failure to provide a compliance certificate executed by the President or Treasurer of Borrower
Representative or other financial officer satisfactory to Lender, in the form of Exhibit B attached to the Loan Agreement,
concurrently with the financial statements identified in subparagraph (i) above, as required by Section 5.05(F) of the Loan Agreement
prior to the Modification Effective Date, (iii) the Borrowers’ failure to promptly pay and discharge or cause to be paid
and discharged certain excise taxes owed to the U.S. Alcohol and Tobacco Tax and Trade Bureau, in violation of Section 5.04 of
the Loan Agreement, and (iv) the Borrowers’ failure to timely file all federal, state or local tax returns which are required
to be filed by them, in violation of Section 4.05 of the Loan Agreement (collectively, the “Waived Defaults”).
The Borrowers have requested that Lender waive the Waived Defaults.

 

4.2
Conditions to Waiver. Lender agrees to waive the Waived Defaults upon the satisfaction of the following conditions:

 

(i)
Lender’s receipt, on or before June 30, 2020, of the Borrowers’ revised monthly financial projections (to include
balance sheet, income statement and statement of cash flows) for the Fiscal Years ending December 31, 2020 and, subject to the
Borrowers’ best efforts, December 31, 2021, specifically presenting and identifying the Borrowers’ strategy to maintain
adequate liquidity to meet their operating expenses due to losses (actual or projected) occurring during the Fiscal Quarters ending
March 31, 2020 and June 30, 2020.

 

(ii)
The Borrowers shall provide evidence to Lender, in form and substance acceptable to Lender in its sole discretion, on or before
June 30, 2020, of the filing of all federal, state or local tax returns identified in Section 4.1(iv) above or required to be
filed by them by any governmental or taxing authority.

 

In
the event the Borrowers have not satisfied the conditions set forth above, it shall be deemed an Event of Default under the Loan
Agreement, and Lender shall be entitled to exercise its rights and remedies, including, without limitation its right at any time,
as applicable: (i) to accelerate the indebtedness, obligations and liabilities owed by the Borrowers to Lender, including, without
limitation, the Indebtedness, (ii) to take any enforcement action or otherwise exercise any or all rights and remedies provided
for by any or all of the Loan Agreement, the other Loan Documents or applicable law, or (iii) to increase the interest rate charged
on the outstanding balance due under the Loan Documents to the default rate of interest provided for in the Loan Agreement.

 

4.3
Limitations. The waivers set forth in Section 4.2 are one-time waivers and shall not be deemed to be a waiver by Lender of
any other Default or Event of Default, now existing or hereafter occurring, nor is it a waiver of any subsequent violation or
consent to any subsequent modification of any other provision of the Loan Agreement.

 

    	Modification to Loan Agreement  

    	 

    

 

5.
Conditions Precedent. The obligations of Lender to enter into this Modification Agreement and consummate the transactions
contemplated hereby are subject to the satisfaction of the following conditions on or before the Modification Effective Date:

 

5.1
Representations and Warranties. The representations and warranties made in the Loan Agreement are true and correct in all
material respects, except to the extent such representations and warranties specifically relate to an earlier date, in which case,
such representations and warranties were correct in all material respects on and as of such earlier date.

 

5.2
Compliance. There shall be no uncured Default or Event of Default under any of the Loan Documents, other than the Waived Defaults.

 

5.3
Delivery of Modification Loan Documents. Each Borrower shall have delivered to the Lender PDFs of each of the Modification
Loan Documents, duly and fully executed by all Borrowers, as the case may be, in the presence of a witness or notary public, where
applicable, in form and substance satisfactory to Lender.

 

5.4
Payment of Fees. The Borrowers shall pay (i) an amendment fee to Lender in the amount of $5,000.00, and (ii) all other reasonable
expenses agreed upon by the parties in connection with this Modification Agreement, including without limitation, reasonable attorneys’
fees and expenses.

 

6.
Miscellaneous. 

 

6.1
Ratification of Loan Agreement. All other terms and conditions of the Loan Agreement shall remain in full force and effect,
except to the extent modified by this Modification Agreement, and the parties hereto hereby ratify and reaffirm the terms of the
Loan Agreement, as hereby modified. From and after the Modification Effective Date, the term “Loan Agreement”
shall mean and refer to the Loan Agreement, as amended by this Modification Agreement. In the event of any conflict between the
terms of the Loan Agreement and the terms of this Modification Agreement, the provisions of this Modification Agreement shall
control.

 

6.2
No Duress. Borrowers hereby represent and warrant that they: (i) have executed this Modification Agreement and the other Modification
Loan Documents as their free and voluntary act, without any duress, coercion or undue influence exerted by or on behalf of Lender
or any other party; (ii) with full and complete knowledge, believe this Modification Agreement and the other Modification Loan
Documents to be fair, just and reasonable; (iii) have reviewed this Modification Agreement and the other Modification Loan Documents
and fully understand the effects hereof and thereof and all terms and provisions contained herein and therein; and (iv) have been
afforded the opportunity to be represented by legal counsel and been advised to seek legal advice from counsel of their own selection.

 

6.3
Governing Law. This Modification Agreement and all of the other Modification Loan Documents shall be deemed to be contracts
made under seal and shall be governed by and construed in accordance with the laws of the State of New York, exclusive of the
choice of laws principles thereof.

 

6.4
Severability. If, for any reason, any term or provision of this Modification Agreement, or its application to any persons
or circumstances, shall be held invalid or unenforceable, in whole or in part or in any respect, in any jurisdiction, or in the
event that any one or more provisions of this Modification Agreement operates or would prospectively operate to invalidate any
of the other Modification Loan Documents, then, and in any such event, at the option of Lender, such term or provision will, as
to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability, without rendering invalid or unenforceable,
or by any other means affecting the remainder of, this Modification Agreement or the other Modification Loan Documents, or the
application of any such term or provision to persons or circumstances other than those to which it is held invalid or unenforceable.

 

    	Modification to Loan Agreement  

    	 

    

 

6.5
Headings. The headings in this Modification Agreement are for reference only and shall not affect the interpretation of this
Modification Agreement.

 

6.6
Time of Essence. Time is of the essence with respect to each and every provision of this Modification Agreement.

 

6.7
Waiver of Defenses. Each Borrower represents, warrants and agrees that: (i) there are no claims, defenses or set-offs with
respect to the Note and the Loan Agreement, or with respect to the indebtedness evidenced or secured thereby or with respect to
the collection or enforcement of any of the same, and (ii) no claim, set-off or defense exists for the benefit of any Borrowers
against Lender in connection with the Loan and, to the extent any such claim, set-off or defense exists, each is hereby fully
waived and relinquished.

 

6.8
Binding Effect; Modification. This Modification Agreement shall be binding upon the parties hereto and their successors and
permitted assigns and may not be further modified except by written agreement executed against the party against whom such modification
is sought to be enforced.

 

6.9
No Novation. The parties hereto do not intend this Modification Agreement to constitute a novation or termination of the Loan
Agreement or the parties’ respective obligations thereunder.

 

6.10
Further Assurance. Borrowers, whenever and as often as requested by Lender, shall execute, acknowledge, and deliver, or cause
to be executed, acknowledged and delivered to Lender, such further agreements, documents or instruments that are reasonably necessary
or desirable to carry out the intent and purpose of this Modification Agreement and the other Modification Loan Documents

 

6.11
Estoppel. No Borrower knows of any defense or offset against the payment of any amounts advanced and presently outstanding
pursuant to the Loan Agreement. 

 

6.12
Expenses. Borrowers agree to reimburse Lender for its reasonable costs and expenses incurred in connection with the preparation,
execution and delivery of this Modification Agreement, including, without limitation, reasonable attorneys’ fees and expenses.

 

6.13
Counterparts; Facsimile/PDF Signatures. This Modification Agreement and the other Modification Loan Documents may be executed
in one or more counterparts, each of which shall be deemed to be an original for all purposes. Borrowers agree to promptly deliver
an executed, original counterpart of this Modification Agreement (and any amendment thereto) and any other Modification Loan Documents
(and any modifications thereto) with such party’s manual “wet ink” signature to Lender, but a failure to do
so shall not affect the enforceability of this Modification Agreement (or any amendment hereto) or any of the other Modification
Loan Documents (and any amendments thereto), it being expressly agreed that Borrowers shall each be bound by his/her/its/their
electronically transmitted or telecopied signature. The terms of this section shall also apply to any amendments to this Modification
Agreement and the other Modification Loan Documents.

 

[Signature
page follows]

 

    	Modification to Loan Agreement  

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Modification Agreement to be duly executed by their respective authorized
officers, as applicable, as of the day and year first above written.

 

	LENDER:	 	BORROWERS:
	 	 	 
	LIVE
    OAK BANKING COMPANY, a North Carolina Banking Corporation	 	EASTSIDE
    DISTILLING INC.
	 	 	 		 
	By:	/s/
    Donna Dawson	 	By:
    	/s/
    Lawrence Firestone
	Name:	Donna
    Dawson	 	 	Lawrence
    Firestone, CEO
	Title:	Collateral
    Analyst Team Lead - VP	 	 	 

  

	 	REDNECK
    RIVIERA WHISKEY CO., LLC
	 	By:	Eastside
    Distilling Inc., its Sole Member
	 	 	 	 
	 	 	By:
    	/s/
    Lawrence Firestone
	 	 	 	Lawrence
    Firestone, CEO
	 	 	 	 
	 	MOTHERLODE
    LLC
	 	By:	Eastside
    Distilling Inc., its Sole Member
	 	 	 	 
	 	 	By:
    	/s/
    Lawrence Firestone
	 	 	 	Lawrence
    Firestone, CEO
	 	 	 	 
	 	BIG
    BOTTOM DISTILLING, LLC
	 	By:	Eastside
    Distilling Inc., its Manager
	 	 	 	 
	 	 	By:
    	/s/
    Lawrence Firestone
	 	 	 	Lawrence
    Firestone, CEO
	 	 	 	 
	 	OUTLANDISH
    BEVERAGES LLC
	 	By:
    	Eastside
    Distilling Inc., its Sole Member
	 	 	 	 
	 	 	By:
    	/s/
    Lawrence Firestone
	 	 	 	Lawrence
    Firestone, CEO
	 	 	 	 
	 	CRAFT
    CANNING + BOTTLING, LLC
	 	By:
    	Eastside
    Distilling Inc., its Sole Member
	 	 	 	 
	 	 	By:	/s/
    Lawrence Firestone
	 	 	 	Lawrence
    Firestone, CEO

 

    	Modification to Loan Agreement  

    	 

    

 

EXHIBIT
B

Form
of Compliance Certificate

 

	TO:
    LIVE OAK BANKING COMPANY	Date: _____________________

FROM:
EASTSIDE DISTILLING INC., as Borrower Representative

 

The
undersigned authorized officer of Eastside Distilling Inc., a Nevada corporation (“Borrower Representative”),
as Borrower Representative for the Borrowers (as defined below), certifies that under the terms and conditions of the Loan Agreement
(as amended, restated or otherwise modified, the “Loan Agreement”), dated as of January 15, 2020, by and among
Borrower Representative, MotherLode LLC, an Oregon limited liability company (“MotherLode”), Big Bottom Distilling,
LLC, an Oregon limited liability company (“Big Bottom”), Craft Canning + Bottling, LLC, an Oregon limited liability
company (“Craft”), Redneck Riviera Whiskey Co., LLC, a Tennessee limited liability company (“Redneck”)
and Outlandish Beverages LLC, an Oregon limited liability company (“Outlandish” and together with Borrower
Representative, MotherLode, Big Bottom, Craft and Redneck, collectively, the “Borrowers”), and Live Oak Banking
Company (the “Lender”):

 

(1)
Borrowers are in complete compliance for the period ending _______________ with all required covenants under the Loan Agreement
except as noted below; (2) there are no existing Events of Default; (3) all representations and warranties in the Loan Agreement
are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier
shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text
thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true,
accurate and complete in all material respects as of such date; (4) Borrowers, and each of their Subsidiaries, have timely filed
all required tax returns and reports, and Borrowers have timely paid all foreign, federal, state and local taxes, assessments,
deposits and contributions owed by Borrowers except as otherwise permitted pursuant to the terms of Section 5.06 of the
Loan Agreement; and (5) no liens have been levied or claims made against Borrowers or any of their Subsidiaries relating to unpaid
employee payroll or benefits of which Borrowers have not previously provided written notification to the Lender.

 

Attached
are the required documents supporting the certification for the period identified above. The undersigned certifies that these
are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter
or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrowers
are not in compliance with any of the terms of the Loan Agreement, and that compliance is determined not just at the date this
certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan
Agreement.

 

Please
indicate compliance status by circling Yes/No under “Complies” column.

 

	Reporting
    Covenants	 	Required	 	Complies
	 	 	 	 	 
	Monthly
    financial statements with Compliance Certificate	 	Monthly
    within 30 days	 	Yes   No
	Quarterly
    financial statements	 	Quarterly
    within 45 days	 	Yes   No
	Annual
    financial statements	 	FYE
    within 90 days	 	 
	A/R
    & A/P Agings	 	Monthly
    within 30 days	 	Yes   No
	Inventory
    Reports (including locations of Eligible Inventory)	 	Monthly
    within 30 days	 	Yes   No
	Board
    projections	 	FYE
    within 30 days	 	Yes   No

 

    	Modification to Loan Agreement  

    	 

    

 

Other
Matters

 

Have
there been any amendments of or other changes to the capitalization table of Borrowers or to the organizational or operating documents
of Borrowers or any of their Subsidiaries? If yes, provide copies of any such amendments or changes with this Compliance Certificate.

 

The
following are the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions to note.”)

 

 

 

	EASTSIDE
    DISTILLING INC., as Borrower Representative	 	BANK
    USE ONLY
	 	 	 
	By:__________________________	 	Received
    by: _____________________
	Name:
_______________________	 	                           authorized
    signer
	Title:
     _______________________	 	Date:
    _________________________
	 	 	 
	 	 	Verified:
    ________________________
	 	 	                           authorized
    signer
	 	 	Date:
    _________________________
	 	 	 
	 	 	Compliance
    Status:   Yes     No

 

    	Modification to Loan Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}]]