Company: BLNE
Filing Date: 2025-04-28
Form Type: 10-K/A
Source: 0001641172-25-006441
Chunk: 18

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-K/A
Chunk 18
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 on March 31, 2025.

With each 2024 Secured
Note, the Company issued a Warrant to purchase a share of the Company’s common stock for $5.00 exercisable for five years after
December 2, 2024 if on November 29, 2024 the 2024 Secured Note issued to the Warrant holder remains unsatisfied. LDI received a Warrant
to purchase 59,802 shares and each of Bigger and District 2 received a warrant to purchase 29,901 shares.

The Company’s obligations
under the 2024 Secured Notes were secured by the Company’s pledge of its assets, subject to certain specified exceptions. In connection
with the Loan Agreement, the Company, Aegis, Bigger and District 2 amended and restated the Intercreditor Agreement they had executed
on September 29, 2023. In the Amended and Restated Intercreditor Agreement, Aegis, Bigger and District 2 subordinated their liens on any
barrels of spirits owned by the Company, and the parties agreed that the net proceeds of any sale of barrels would be paid to the Subscribers
in satisfaction of the 2024 Secured Notes. Commencing when all barrels have been sold, the lien of the Subscribers under the Secured 2024
Notes would become pari passu with the senior lien on the remaining collateral. Subsequent to the closing, the 2024 Notes were included
in the October 2024 debt exchange with the remaining collateral being contributed with the exchanged assets as detailed in “The
Merger – First Amended and Restated Debt Exchange Agreement.”

Debt Exchange Agreement

As mentioned above, on
September 4, 2024, the Company and Craft entered into the Exchange Agreement with the SPV, Aegis, Bigger, District 2, LDI and three individual
creditors including Robert Grammen, a director. Subsequent to the execution of the Exchange Agreement, the assets of the SPV were distributed
to its members, i.e. Aegis, Bigger, District 2 and LDI. To reflect the effect of the distribution on the transactions contemplated by
the Exchange Agreement, the parties, on October 3, 2024, executed the First Amended and Restated Debt Exchange Agreement, and the transaction
closed on October 7, 2024.

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Liuzza Investments and Loans

On December