Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 824

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 824
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 (collectively, the “2024 Notes”) were secured by Eastside’s pledge of its assets, subject
to certain specified exceptions. In connection with the Loan Agreement, Eastside, 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 subordinate their liens on any barrels of spirits owned by Eastside, and the parties agree that the net proceeds of any sale
of barrels will be paid to the Subscribers in satisfaction of the 2024 Notes. Commencing when all barrels have been sold, the lien of
the Subscribers under the 2024 Notes would become pari passu with the senior lien on the remaining collateral.

Subsequently in 2024, these notes were exchanged as
part of the Debt Exchange Agreement, further described above in Note 5 - Debt Exchange Agreement.

    F-27

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

6% Secured Convertible Promissory Notes

On April 19, 2021, Eastside entered into a securities
purchase agreement (“Purchase Agreement”) with accredited investors (“Subscribers”) for their purchase of up to
$3.3 million of principal amount of 6% secured convertible promissory notes of Eastside (“Note” or “Notes”), which
notes were convertible into shares (“Conversion Shares”) of Eastside’s common stock, par value $0.0001 per share pursuant
to the terms and conditions set forth in the Notes with an initial conversion price of $440.00. In connection with the purchase of such
Notes, each Subscriber received a warrant (“Existing Warrant”), to purchase a number of shares of common stock (“Warrant
Shares”) equal to 60% of the principal amount of any Note issued to such Subscriber divided by the conversion price of the Note
issued to such Subscriber, at an exercise price equal to $520.00. In connection with the Purchase Agreement, Eastside entered into a Security
Agreement under which it granted the Subscribers a security interest in certain assets of Eastside (the “Security Agreement”)
and a Registration Rights Agreement under which Eastside agreed to register for resale the Conversion Shares and the Warrant Shares. Concurrently
therewith, Eastside and the investors closed $3.3