Document:

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.

 

    	Page 1 of 4

     

    

 

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	 

 

    	Page 4 of 4Exhibit
10.4

 

AMENDMENT
AGREEMENT

 

Date:October
13, 2022

 

Parties:

 

	 	Eastside 	Eastside Distilling, Inc.
	 	 	 
	 	Bigger	Bigger Capital Fund, LP
	 	 	 
	 	District 2	District 2 Capital Fund LP

 

Premises:

 

	A.	Bigger
                                            and District 2 (collectively, the “Bigger Funds”) hold the following
                                            Secured Convertible Promissory Notes issued by Eastside (the “Bigger Notes”),
                                            which Bigger Notes were issued pursuant to that certain Securities Purchase Agreement dated
                                            as of April 19, 2021, by and among Eastside and the Bigger Funds (as amended, restated, amended
                                            and restated, supplemented or otherwise modified from time to time, the “Purchase
                                            Agreement”):

 

		(i)	that
                                            certain Secured Convertible Promissory Note dated as of April 19, 2021 made by Eastside,
                                            as maker, in favor of Bigger, as payee, in the principal amount of $1,500,000;
	 	 	 
		(ii)	that
                                            certain Secured Convertible Promissory Note dated as of May 13, 2021 made by Eastside, as
                                            maker, in favor of Bigger, as payee, in the principal amount of $150,000;
	 	 	 
		(iii)	that
                                            certain Secured Convertible Promissory Note dated as of April 19, 2021 made by Eastside,
                                            as maker, in favor of District 2, as payee, in the principal amount of $1,500,000; and
	 	 	 
		(iv)	that
                                            certain Secured Convertible Promissory Note dated as of May 13, 2021 made by Eastside, as
                                            maker, in favor of District 2, as payee, in the principal amount of $150,000.

 

	B.	The
                                            Bigger Funds hold the following Warrants issued by Eastside (the “Bigger Warrants”):

 

		(i)	that
                                            certain Warrant No. 2021-005 dated as of July 29, 2021 issued by Eastside in favor of Bigger;
                                            and
	 	 	 
		(ii)	that
                                            certain Warrant No. 2021-006 dated as of July 29, 2021 issued by Eastside in favor of District
                                            2.

 

	C.	The
                                            Parties executed the following letter agreements (the “Reload Offer Letters):

 

		(i)	that
                                            certain letter agreement Re: Reload Offer of Common Stock Purchase Warrants, dated as of
                                            July 29, 2021, by and between Bigger and Eastside; and
	 	 	 
		(ii)	that
                                            certain letter agreement Re: Reload Offer of Common Stock Purchase Warrants, dated as of
                                            July 29, 2021, by and between District 2 and Eastside.

 

	D.	The
                                            Parties executed an Accommodation Agreement dated April 1, 2022 (the “Accommodation
                                            Agreement”, and together with the Bigger Notes, the Bigger Warrants, the Purchase
                                            Agreement, the Transaction Documents (as defined in the Purchase Agreement) and the Reload
                                            Offer Letters collectively, the “Documents”)

 

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	E.	The
                                            Parties are engaged in good faith negotiations towards a restructuring of their relationship
                                            and agree that relief from the imminent Maturity Date of the Bigger Notes and certain other
                                            provisions of the Documents would facilitate a mutually favorable resolution of the negotiations.

 

Agreement:

 

	1.	The
                                            Bigger Notes are hereby amended to change the “Maturity Date” of
                                            the Bigger Notes to November 18, 2022 by eliminating the final sentence of the introductory
                                            paragraph in each Bigger Note and replacing that sentence with the following text: The
                                            entire principal amount hereunder shall be due and payable in full on November 18, 2022 (the
                                            “Maturity Date”), or on such earlier date as such principal amount may
                                            earlier become due and payable pursuant to the terms hereof.
	 	 
	2.	The
                                            Bigger Notes are further hereby amended by adding to the definition of “Excluded Securities”
                                            in Section 17 of each Bigger Note the following final clause: and (ix) securities issuable
                                            pursuant to the Amendment Agreement dated October 13, 2022.
	 	 
	3.	The
                                            Bigger Warrants are hereby amended by adding to the definition of “Excluded Securities”
                                            in Section 1 of each Bigger Warrant the following final clause: and (ix) securities issuable
                                            pursuant to the Amendment Agreement dated October 13, 2022.
	 	 
	4.	In
                                            addition, as consideration for the Bigger Funds’ agreement to enter into this Amendment
                                            Agreement, Eastside agrees to issue to each of the Bigger Funds ninety-six thousand, one
                                            hundred fifty-three (96,153) shares of Eastside common stock (the “Shares”).
                                            Certificates for the Shares shall be delivered to the Bigger Funds promptly after execution
                                            of this Amendment Agreement. Each of the Bigger Funds understands and agrees that the issuance
                                            of the Shares has not been registered under the 1933 Act or any applicable state securities
                                            laws, by reason of their issuance in a transaction that does not require registration under
                                            the 1933 Act, and that such Securities must be held indefinitely unless a subsequent disposition
                                            is registered under the 1933 Act or any applicable state securities laws or is exempt from
                                            such registration.
	 	 
	5.	On
                                            any Trading Day in April of 2023, the Bigger Funds, jointly and not separately, may surrender
                                            their certificates for the Shares to counsel for Eastside accompanied by (a) a written representation
                                            that the Bigger Funds collectively are not beneficially the owners of ten percent or more
                                            of Eastside’s outstanding shares and (b) a written demand for reissue of the Shares
                                            to the Bigger Funds by crediting the accounts of the Bigger Funds or their designees’
                                            balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian
                                            system (“DWAC”). The certificates must be endorsed for transfer with medallion
                                            signature guarantees. As used herein, the “FT Share Delivery Date”
                                            shall be the later of (a) April 17, 2023 if the certificates, the representation and the
                                            demand are received by counsel on or prior to Noon on April 13, 2023 or (b) three Trading
                                            Days after the Trading Day (later than Noon on April 13, 2023) on which the certificates
                                            and the demand are received by counsel. The certificates and the demand shall be deemed to
                                            have been “received by counsel” on the date on which they are physically delivered
                                            to Robert Brantl, Esq. at 181 Dante Avenue, Tuckahoe, NY 10707 (or the Trading Day thereafter,
                                            if delivery occurs after Noon), with email notice of the posting have been sent to rbrantl21@gmail.com
                                            at least one day prior to the delivery. On or before the FT Share Delivery Date, Eastside
                                            shall cause the Shares to be delivered via DWAC as demanded. If Eastside fails for any reason
                                            to deliver the Shares via DWAC as demanded on or prior to the FT Share Delivery Date, Eastside
                                            shall pay to the Bigger Funds, in cash, as liquidated damages and not as a penalty, for each
                                            $1,000 of Shares subject to such reissue instructions (based on the VWAP of the Common Stock
                                            on the FT Share Delivery Date), $5 per Trading Day (increasing to $10 per Trading Day on
                                            the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day
                                            after such FT Share Delivery Date until such Shares are delivered. Eastside agrees to maintain
                                            a transfer agent that is a participant in the FAST program through April 30, 2023. Eastside
                                            shall exclusively bear all expenses arising from its compliance with this Section 5.
	 	 
	6.	Except
                                            as expressly modified hereby, the Parties agree that all terms, conditions, covenants, representations
                                            and warranties contained in the Documents and all rights of the Bigger Funds and all of the
                                            obligations of Eastside under the Documents (the “Obligations”),
                                            shall remain in full force and effect. Eastside hereby confirms that the Documents are in
                                            full force and effect and that Eastside has no right of setoff, recoupment or other offset
                                            or any defense, claim or counterclaim with respect to any of the Obligations or any Document.
                                            Except as expressly set forth herein, the execution, delivery and effectiveness of this Amendment
                                            Agreement shall not directly or indirectly (i) constitute a consent or waiver of any past,
                                            present or future violations of any provisions of any Document, (ii) amend, modify or operate
                                            as a waiver of any provision of the Documents or any right, power or remedy of Bigger or
                                            District 2, (iii) constitute a consent to any merger or other transaction or to any sale,
                                            restructuring or refinancing transaction, or (iv) constitute a course of dealing or other
                                            basis for altering any Obligations or any other contract or instrument. Except as expressly
                                            set forth herein, each of Bigger and District 2 reserves all of its rights, powers, and remedies
                                            under the Documents and applicable law. All of the provisions of the Documents are hereby
                                            reiterated, and if ever waived, are hereby reinstated. Eastside hereby agrees that this Amendment
                                            Agreement in no way acts as a release or relinquishment of the liens and rights securing
                                            payments of the Obligations and this Amendment Agreement shall not be deemed or construed
                                            to be a satisfaction, reinstatement, novation or release of any Document.

 

[Signature
Page Follows]

 

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IN
WITNESS WHEREOF, the Parties have executed this Accommodation Agreement as of the date first written above.

 

	EASTSIDE
    DISTILLING, INC.  	 	 	 
	 	 	 	 	 
	By:		 	 	 
	 	Geoffrey
    Gwin, CEO 	 	 	 
	 	 	 	 	 
	 	 	 	BIGGER
    CAPITAL FUND, LP
	 	 	 	 	 
	 	 	 	By:	
	 	 	 	 	Michael
    Bigger, Managing Member of the GP
	 	 	 	 	 
	 	 	DISTRICT
    2 CAPITAL FUND LP  
	 	 	 	 	 
	 	 	 	By:	
	 	 	 	 	Michael
    Bigger, Managing Member of the GP

 

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