Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 49

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 49
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 stock.                                                                               |

| (b) | The                                                                                       
 Company issued 400,000 shares of common stock to Mr. Gwin, which will vest on the earlier 
 of March 31, 2025 or the date on which Mr. Gwin’s employment is terminated without        
 cause.                                                                                    |

| (c) | The                                                                                                
 Company covenanted that, in the event that the conversion price of the Series F is reduced,        
 the Company will issue to Mr. Gwin a number of common stock equal to one percent of the additional 
 shares issued as a result of the adjustment.                                                       |

| (d) | The                                                                                       
 Company agreed to issue 100,000 shares of common stock to Mr. Gwin if he is terminated by 
 the Company without cause.                                                                |

Warrants and Options

The Company has agreed to assume and issue replacement stock options and warrants to former Beeline option and warrant holders, which are expected to be in the following quantities: (i) a total of 3,878,847 options to purchase Eastside common stock, and (ii) a total of 201,667 warrants to purchase Eastside common stock at an exercise price of $4.72 per share. These warrants and options are included as part of Proposal 1. We expect to adopt a 2025 Equity Incentive Plan after the Special Meeting and approval of Proposal 1. Any grants we make will be subject to shareholder approval at our 2025 annual meeting. These warrants will expire in 2026 and based upon their exercise price we do not expect any warrants will be exercised even if Proposal 1 is approved.

Eastside also has 1,042 “prior” options outstanding which it used under its current equity compensation plan and which are exercisable between $24.60 and $90.00 per share and expire through 2031, as well as 544,803 “prior” warrants. We are not seeking shareholder approval for the shares of common stock underlying these prior options or warrants.

Voting Agreements

In connection with and pursuant to the Merger, directors, officers and certain shareholders of Eastside entered into voting agreements pursuant to which such persons agreed to vote in favor of the Merger Share Issuance. The voting power held by these persons who executed a voting agreement combines for a total of approximately 1,060,790 votes, representing approximately 22.4% of the outstanding voting power. These amounts may be lower to the extent any of the counterparties to