Document:

Exhibit
10.1

 

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR APPLICABLE STATE LAW, AND NO INTEREST
OR PARTICIPATION HEREIN MAY BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION OR AN EXEMPTION THEREFROM.

 

SECURED
LINE OF CREDIT PROMISSORY NOTE

 

	$3,000,000.00	 	March
    21, 2022

Portland,
Oregon

 

FOR
VALUE RECEIVED, EASTSIDE DISTILLING, INC., a Nevada corporation (the “Company”), hereby promises to pay to the order
of TQLA, LLC, a California limited liability company (“Holder”), the aggregate principal amount up to Three Million
Dollars ($3,000,000.00), together with the Commitment Fee described herein, together with interest on the aggregate principal balance
(which shall not include the Commitment Fee), all as set forth in this Secured Promissory Note (this “Note”).

 

1.
Payments and Advances.

 

(a)
Interest Rate. The unpaid principal balance of this Note will bear interest at 9.25% per annum. Interest shall commence with the
date hereof (“Loan Date”) and shall continue on the outstanding principal amount of this Note until this Note is paid or
otherwise satisfied in full. Interest will be computed on the basis of a 365-day year and the actual days elapsed and will be compounded
annually. If any Event of Default, as defined in Section 2, occurs, then during the continuance of the Event of Default, all principal
under this Note shall bear interest on each day outstanding at the lesser of (i) eighteen percent (18%) per annum compounded quarterly
or (ii) the highest lawful rate in effect on such day (i) and (ii) apply the “Default Rate.”

 

(b)
Commitment Fee. In consideration of undertakings by Holder herein, Company will pay to Holder a fee in a variable amount (the “Commitment
Fee”). If paid in full by Company on or before June 30, 2022, the Commitment Fee shall be Seventy-Five Thousand Dollars ($75,000).
If paid in full by Company during the period from July 1, 2022 through September 30, 2022, the Commitment Fee shall be Ninety-Seven Thousand
Five Hundred Dollars ($97,500). If paid by Company during the period from October 1, 2022 through December 31, 2022, the Commitment Fee
shall be One Hundred Twenty Thousand Dollars ($120,000). If paid by Company during the period from January 1, 2023 through the Maturity
Date, the Commitment Fee shall be One Hundred Forty-Two Thousand Five Hundred Dollars ($142,000).

 

    	PAGE 1

     

    

 

(c)
Repayment of Principal and Interest.

 

(i)
All payments of interest and principal on the Note and the Commitment Fee shall be in lawful money of the United States of America by
wire transfer of immediately available funds to the Holder’s account at a bank specified by Holder in writing to the Payor from
time to time. All payments on this Note under this Section 1(c) will be applied to accrued and unpaid interest that is due and payable,
then to the Commitment Fee, then to accrued and unpaid interest not yet payable, and thereafter to outstanding principal. Whenever any
payment hereunder shall be stated to be due on a day other than a business day, such payment will be made on the next succeeding business
day, and such extension of time will in such case be included in the computation of payment of interest.

 

(ii)
All unpaid principal, together with any then unpaid and accrued interest, and the Commitment Fee will be due and payable in cash on one
year from the Loan Date (the “Maturity Date”). Accrued interest will be paid in arrears in cash on the last business
day of every three calendar months from the Loan Date commencing on the first such date to occur after the date of this Note.

 

(iii)
Company may obtain a 6-month extension from the Maturity Date by paying an extension fee equal to one percent (1%) of the then principal
balance. However, Holder shall have no obligation to extend the Maturity Date if: (a) the Company is in default under the terms of this
Note; (b) the Company has applied funds provided pursuant to this Note for purposes other than those set forth in a borrowing request
approved by Holder in accordance with Section 5; (c) the outstanding principal totals Three Million and No Dollars ($3,000,000) or more;
(d) the Company has not paid the Commitment Fee in full, or (e) Holder in good faith believes itself insecure.

 

(d)
Prepayment. The Company may prepay this Note at any time in whole or in part, without the consent of Holder and without premium
or penalty.

 

(e)
Advances. This Note evidences a revolving line of credit. Holder shall advance $2,000,000 on the Loan Date. Holder will advance
up to an additional $1,000,000 during the 12-month period from the Loan Date subject to the provisions of this paragraph. The advances
made pursuant to the Note shall be deemed principal under this Note. It is unnecessary for the Company to execute any further notes to
evidence the obligation of the Company to pay the amount of the advances together with interest thereon as provided in this Note. Within
five (5) business days of the Company’s delivery of a borrowing request in substantially the form set forth in Exhibit A
or otherwise in a form reasonably acceptable to Holder, Holder shall deposit such advance in immediately available funds in an account
designated by the Company in writing; provided that Holder shall have no obligation to advance funds if: (a) the Company is in default
under the terms of this Note; (b) the Company has applied funds provided pursuant to this Note for purposes other than those set forth
in a borrowing request approved by Holder in accordance with Section 5; (c) the outstanding principal totals Three Million and No Dollars
($3,000,000) or more; or (d) Holder in good faith believes itself insecure.

 

    	PAGE 2

     

    

 

2.
Default.

 

(a)
Event of Default. The occurrence of any of the following will constitute an “Event of Default” under this Note:

 

(i)
The Company fails to pay timely amounts when due under this Note, and such failure continues for ten (10) days following written notice
of non-payment; provided that notice of non-payment shall not be required as a condition to an Event of Default if the Company fails
to pay Holder the entire amount of outstanding principal, the Commitment Fee, and any remaining accrued interest in full on or prior
to the Maturity Date;

 

(ii)
The Company files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law
for the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit of creditors;

 

(iii)
An involuntary petition is filed against the Company (unless such petition is dismissed or discharged within sixty (60) days under any
bankruptcy statute now or hereafter in effect), or a custodian, receiver, trustee, assignee for the benefit of creditors (or other similar
official) is appointed to take possession, custody or control of any property of the Company;

 

(iv)
Company breaches any representation or warranty in any material respect or otherwise fails to perform or observe any covenant or agreement
in any material respect set forth in this Note and such failure continues for twenty (20) days following written notice from Holder;

 

(v)
The sale, transfer, pledge, hypothecation or liquidation of all or subsequently all of the assets or equity securities of Company;

 

(vi)
The merger of Company with another corporation or other legal entity if (a) the Company is not the surviving entity or (b) there is a
the transfer of 15% or more of Company’s outstanding shares to another owner or owners within a 6 month period of time or (c) there
is a change in 50% or more of the existing Board of Directors of Company within one year of the Loan Date; or

 

(vii)
Company is liquidated or winds up its affairs.

 

(b)
Rights of Holder Upon Default. If there shall be any Event of Default under Section 2(a)(i), after the expiration of any required
notice or cure period, this Note shall accelerate and all unpaid principal and interest, if any, shall become immediately due and payable
upon notice of acceleration from Holder to the Company. If there shall be any Event of Default under Sections 2(a)(ii), 2(a)(iii), or
(2(a)(v)-(vii) this Note shall immediately accelerate and all unpaid principal, the Commitment Fee and interest, if any, shall become
immediately due and payable without any requirement of notice from Holder to the Company. Upon an Event of Default, Holder may exercise
any right, power or remedy permitted to it by law or this Note, including foreclosure of the collateral secured by this Note. In addition,
upon the Event of Default, that Common Stock Purchase Warrant dated as of the date hereof issued by the Company to Holder shall become
effective and immediately exercisable with no further action on the part of Holder.

 

    	PAGE 3

     

    

 

3.
Security Interests; Liens. In order to secure payment of the obligations evidenced by this Note, the Company hereby grants to
Holder (a) a first priority security interest in all of the Company’s right, title and interest in and to its existing or hereafter
acquired or arising finished spirits inventory, including Azunia, at the Park Street facility or other locations (a current inventory
list is set forth Exhibit B), (b) a security interest in all of the Company’s right, title and interest in and to all barreled
spirits inventory, now existing or hereafter acquired or arising, located at the Company’s Milwaukee facility or other locations
(a current inventory list is set forth as Exhibit C); provided that such security interest will be second priority to the indebtedness
described in Section 4 and (c) a security interest in all of the Company’s right, title and interest in and to its membership interests
in Craft Canning + Bottling, LLC, which membership interests shall be provided to Holder in certificated form accompanied by a separate
indorsement authorizing Holder to name the transferee. Holder 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. The Company irrevocably authorizes Holder at any time and from time to time to file in any filing office
in any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto which Holder deems necessary or appropriate
to perfect the security interests hereby granted.

 

4.
Subordination of Secured Interest. The Security Interest granted under Section 3 is hereby expressly subordinate in priority to
any liens created under the Credit and Security Agreement with the Live Oak Bank dated January 15, 2020 (“Live Oak Agreement”).
The outstanding principal balance under the Live Oak Agreement is $1,959,723.60 as of March 21, 2022 and includes a Security Interest
in all assets of Company.

 

5.
Use of Proceeds. The Company shall use the proceeds of this Note for the purchase of Azuñia inventory and other general
corporate purposes as set forth in a borrowing request.

 

6.
Restriction on Further Indebtedness. The Company agrees that unless Holder shall otherwise consent in writing, it shall cause
Craft Canning not to create, incur, assume or in any manner become liable in respect of, or suffer to exist, any indebtedness other than
(a) indebtedness incurred or guaranteed by Craft Canning in effect as of the date hereof, (b) trade debt incurred in the ordinary course
of business, (iii) capital leases of digital can printers specifically described in the Secured Guaranty dated as of the Loan Date, and
(iv) indebtedness that is expressly subordinate and junior in right and priority of payment to the Note that is reasonably satisfactory
in form and substance to Holder.

 

7.
Other Provisions.

 

(a)
Cancellation. After all principal and interest and the Commitment Fee owed on this Note have been paid in full, this Note will
automatically be deemed canceled, will be surrendered to the Company for cancellation, and will not be re-issued.

 

(b)
Waivers and Amendments. This Note may not be amended or modified, nor may any of its terms be waived, except by a written instrument
signed by the Company and Holder.

 

    	PAGE 4

     

    

 

(c)
Severability. If any provision of this Note is determined to be invalid, illegal or unenforceable, in whole or in part, the validity,
legality and enforceability of any of the remaining provisions or portions of this Note will not in any way be affected or impaired thereby
and this Note will nevertheless be binding between the Company and Holder.

 

(d)
Governing Law. This Note will be governed by and interpreted in accordance with the internal laws of the State of California.
In any action brought or arising out of this Note, the Company and Holder hereby consent to the jurisdiction of any federal or state
court having proper venue within the San Diego County, State of California and also consent to the service of process by any means authorized
by California law.

 

(e)
Lender Collateral. The Lender shall have the right to request an updated description of the Company’s collateral and the
value of the collateral securing this loan monthly upon seven (7) days’ Notice.

 

(f)
Attorney Fees.

 

(i)
Company and all other parties liable for the payment under this Note agrees to pay Holder’s collection expenses, attorney fees
and paralegal fees which may be incurred in the collection of any amount due hereunder or enforcement or interpretation of any or all
of Company’s duties hereunder or any guaranty related to Company’s duties hereunder, or any part hereof or thereof, whether
or not suit is instituted, and if suit is instituted, to pay all such collection expenses, court costs, attorney fees and paralegal fees
as may be determined by the trial court or any appellate courts. Company further agrees to pay any attorney fees, paralegal fees or costs
incurred by Holder with respect to Company’s obligations hereunder in connection with any action or proceeding to enforce any creditor’s
rights associated with any collateral securing this Note, or with respect to any bankruptcy, receivership or insolvency proceedings of
Company or any guarantor of Company’s obligations hereunder, whether judicial or otherwise, including but not limited to fees incurred
in litigating issues peculiar to federal bankruptcy law;

 

(ii)
Company agrees to reimburse Holder for all costs, reasonable attorney fees, and paralegal fees incurred by Holder in the research, review,
negotiation, and drafting of this Promissory Note, the Secured Guaranty, the Common Stock Purchase Warrant, and any other documents or
matters related to this $3,000,000 loan transaction. Company shall reimburse Holder by payment in cash or certified check within seven
(7) days of written request, including via email.

 

(g)
Jury Trial Waiver. Holder and the Company each hereby waive any right to trial by jury of any claim (including cross-claims and
counterclaims) it may have against each other under, in connection with, or related to this Note.

 

(h)
Binding Effect. This Note will be binding upon, and will inure to the benefit of, the Company and Holder and their respective
successors and assigns.

 

    	PAGE 5

     

    

 

(i)
Notices. Any notice required or desired to be served, given, or delivered hereunder must be in writing and in the form and manner
specified below, and must be addressed to the party to be notified as follows:

 

	If
    to the Company:

     
	 	EASTSIDE
    DISTILLING, INC.

    2321
    NE Argyle Street, Unit D

    Portland,
    OR 97211

    Attention:
    Controller

    Email:
    TMilton@eastsidedistilling.com

	 	 	 
	With
    a copy to:	 	Robert
    Brantl, Esq.

    181
    Dante Ave.

    Tuckahoe
    , NY 10707

    Email:
    rbrantl21@gmail.com

	 	 	 
	If
    to Holder:	 	TQLA,
    LLC

    PO
    Box 1641

    Rancho
    Santa Fe, CA 92091

    Email:
    pkilkenny@yahoo.com

	 	 	 
	With
    a copy to:	 	Russell
    R. Kilkenny

    Scarborough,
    McNeese, Oelke & Kilkenny PC

    5
    Centerpointe Drive, Suite 240

    Lake
    Oswego, OR 97035

    Email:
    rrk@smoklaw.com

 

or
to such other address as each party designates to the other by notice in the manner herein prescribed. Any notice given under this Note
shall be in writing and delivered in person, via email, or other form of electronic delivery, sent by documented overnight delivery service
or mailed by certified or registered mail, postage prepaid, to the appropriate party or parties at the addresses referenced above or
the electronic email address, or to such other address as the parties may hereinafter designate. Unless otherwise specified in this Note,
all such notices and other written communications shall be effective (and considered received for purposes of this Note) (a) if delivered
by hand, upon delivery, (b) if by email or other form of electronic delivery, on the next business day, or (c) if sent by documented
overnight delivery service, on the date delivered.

 

(j)
Transfer of Note. This Note has not been registered under the Act or applicable state law, and no interest or participation herein
may be sold, distributed, assigned, offered, pledged or otherwise transferred unless there is an effective registration statement under
the Act and applicable state securities laws covering any such transaction or an exemption therefrom and upon approval by the Company.
In the event this Note is transferred in accordance with this Section 7(h), the new holder shall be deemed to be the “Holder”
with respect to the provisions of this Note.

 

(k)
Headings. Section headings used in this Note have been set forth herein for convenience of reference only and do not affect the
interpretation of this Note.

 

(l)
Counterparts. This Note may be executed in any number of counterparts, all of which taken together shall constitute one and the
same instrument, and any of the parties hereto may execute this Note by signing any such counterpart.

 

[Remainder
of Page Left Intentionally Blank; Signature Page Follows]

 

    	PAGE 6

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Secured Line of Credit Promissory Note to be executed as of the day and year first
written above.

 

	HOLDER:
    TQLA, LLC	 	COMPANY:
    EASTSIDE DISTILLING, INC.
	 	 	 	 	 
	By:
    	/s/
    Patrick J. Kilkenny	 	By:	/s/
    Geoffrey Gwin
	Name:	Patrick
    J. Kilkenny	 	Name:	Geoffrey
    Gwin
	Title:
    	Manager	 	Title:	Chief
    Executive Officer

 

    	PAGE 7

     

    

 

EXHIBIT
A

 

BORROWING
REQUEST

 

Reference
is made to that Line of Credit Note with Eastside Distillery, Inc., as Borrower and TQLA, LLC, as Lender dated as of March 21, 2022.
The terms used herein shall have the same meanings as provided therefor in the Note unless the context hereof otherwise requires or provides.

 

	A.	GENERAL.
	 	 	 	 	 
	 	1.	Date
    of proposed Loan	 	_________,
    2022
	 	 	 	 	 
	 	2.	Description
    of use of proceeds of Loan:	 	Purchase
    of inventory and payment of operating expenses
	 	 	 	 	 
	B.	AVAILABILITY.	 	 
	 	 	 	 	 
	 	1.	Enter:
    Amount of Commitment	 	$3,000,000
	 	 	 	 	 
	 	2.	Enter:
    Principal Debt outstanding 	 	 
	 	 	 	 	 
	 	 	as
    of this date:	 	$0.00
    From TQLA_____________________
	 	 	 	 	 
	 	3.	Excess
    (deficit) available for Loans	 	 
	 	 	 	 	 
	 	 	(subtract
    line B2 from line B1).	 	$3,000,000_______________________
	 	 	 	 	 
	 	4.	Requested
    amount:	 	$2,000,000_______________________
	 	 	 	 	 
	 	5.	Purpose
    of Advance:	 	To
    pay for print can machine and general working capital purposes. 

 

The
Borrower hereby certifies that on the date hereof, no Event of Default Exists.

 

	 	Dated:
    	___________________,
    2022	 	Eastside
    Distillery, Inc.
	 	 	 	 	 	 
	 	 	 	 	By:	 
	 	 	 	 	Name:	
	 	 	 	 	Title:
    	 
	 	 	 	 	 
	 	 	Approved:	 	TQLA,
    LLC
	 	 	 	 	 	 
	 	Dated:
    	___________________,
    2022	 	By:	 
	 	 	 	 	Name:	 
	 	 	 	 	Title:
    	Member

 

    	PAGE 1Exhibit
10.2

 

SECURED
GUARANTY

 

March
21, 2022

 

In
order to induce TQLA, LLC, a California limited liability company (the “Creditor”) to grant to Eastside Distilling,
Inc., a Nevada corporation (“Debtor”) a loan of up to a maximum of Three Million Dollars ($3,000,000) 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.

 

Guarantor
hereby grants the Creditor a security interest in the specified assets set forth on Exhibit A to this Agreement 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. Guarantor irrevocably authorizes Creditor at any time and from time to time to file in any filing
office in any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto which Creditor deems necessary
or appropriate to perfect the security interests hereby granted.

 

The
security interest granted above is hereby expressly subordinated in priority to any liens currently of record evidenced by a Uniform
Commercial Code – 1 filed with the Secretary of State of the State of Oregon on the applicable Guarantor’s property in respect
of:

 

	a)	that
                                            Loan No. 5876 from First Interstate Bank to Craft Canning dated July 12, 2019 in the aggregate
                                            principal amount of $500,000.00 with a current balance of $500,000.00 and that Loan No. 5877
                                            from First Interstate Bank to Craft Canning dated July 12, 2019, in the aggregate principal
                                            amount of $197,929.02 with a current balance of $97,829.56 and that Loan No. 5096 from First
                                            Interstate Bank to Craft Canning dated July 12, 2019 in the aggregate principal amount of
                                            $306,623.68 with a current balance of $27,820.68 and that Loan No. 0555 from First Interstate
                                            Bank to Craft Canning dated July 12, 2019 in the aggregate principal amount of $195,331.99
                                            with a current balance of $66,277.24 and that Loan No. 8551 from First Interstate Bank to
                                            Craft Canning dated August 13, 2019 in the aggregate principal amount of $300,000 with a
                                            current balance of $152,208.73 and that Loan No. 9010 from First Interstate Bank to Craft
                                            Canning dated November 8, 2019 in the aggregate principal amount of $300,000 with a current
                                            balance of $167,383.69 (collectively the “First Interstate Agreements”);
                                            and

 

    	1

     

    

 

	b)	that
                                            Credit and Security Agreement with Live Oak Bank with a current principal balance of $1,959,723.60,
                                            secured by all of Guarantor’s assets including proceeds.

 

The
Company and Guarantor agree that it shall not amend the First Interstate Agreements to increase Company’s obligations under the
agreements beyond the original principal amount and will not amend the agreement with Live Oak Bank to increase the current balance without
the prior written consent of Creditor.

 

Craft
Canning further agrees that it shall not incur, assume or in any manner become liable in respect of, or suffer to exist, any indebtedness
other than (i) indebtedness incurred or guaranteed by Craft Canning in effect as of the date hereof, (ii) trade debt incurred in the
ordinary course of business, and (iii) indebtedness that is expressly subordinate and junior in right and priority of payment to the
Note that is reasonably satisfactory in form and substance to the Creditor.

 

Creditor
agrees that Guarantor may enter into $2,500,000 in capital leases on its first digital can printer and accessories. Creditor further
agrees that Guarantor may enter into up to an additional $2,500,000 on a second printer 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.

 

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.

 

    	2

     

    

 

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.

 

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 subsidiaries
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.

 

    	3

     

    

 

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. 

 

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	 

 

    	4

     

    

 

EXHIBIT
A

 

COLLATERAL

 

	Guarantor	 	Collateral
	Craft
    Canning + Bottling, LLC	 	All
    assets of Craft Canning wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof
    including all of the Craft Canning’s personal property of every kind and nature, including, without limitation, all goods (including
    inventory, equipment and all accessions thereto), instruments, documents, accounts, general intangibles, chattel paper, deposit accounts,
    letter-of-credit rights, commercial tort claims, investment property, supporting obligations and insurance claims and proceeds.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}]]