Company: BLNE
Filing Date: 2025-08-18
Form Type: DEF 14A
Source: 0001641172-25-024627
Chunk: 33

Company: Beeline Holdings, Inc.
Filing Date: 2025-08-18
Form: DEF 14A
Chunk 33
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 for the shares, if any, and the Company will be entitled to a corresponding deduction.

If the participant makes an election under Section 83(b) of the Internal Revenue Code (the “Code”) within thirty days after the grant date, the participant will recognize ordinary income as of the grant date equal to the fair market value of the shares on the grant date over the amount paid, if any, and the Company will be entitled to a corresponding deduction. Any future appreciation will be taxed at capital gains rates. However, if the shares are later forfeited, the participant will not be able to recover any taxes paid.

Restricted Stock Units

The grant of a RSUs will not result in taxable income to the participant. When the RSU is settled and Common Stock delivered, the participant will recognize ordinary income equal to the fair market value of the shares provided on settlement and the Company will be entitled to a corresponding deduction. Any future appreciation will be taxed at capital gains rates.

Section 409A

Section 409A of the Code imposes complex rules on non-qualified deferred compensation arrangements, including requirements with respect to elections to defer compensation and the timing of payment of deferred amounts. Depending on how they are structured, certain equity-based awards may be subject to Section 409A of the Code, while others are exempt. If an award is subject to Section 409A of the Code and a violation occurs, the compensation is includible in income when no longer subject to a substantial risk of forfeiture and the participant may be subject to a 20% penalty tax and, in some cases, interest penalties. The Plan and awards granted under the Plan are intended to be exempt from or conform to the requirements of Section 409A of the Code.

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Interests of Certain Parties

In addition to potential future grants under the Plan which may be issued to our directors, officers, employees and consultants, if this Proposal 2 is approved by the stockholders, the following individuals will receive equity grants which were approved by the Board under the Plan, contingent upon the Company obtaining stockholder approval of the Plan, and therefore each of the following individuals have an interest in this Proposal 2 and the matters described herein.

Nicholas R. Liuzza, Jr., the Company’s Chief Executive Officer, director and principal stockholder, will be granted 50,000 stock options exercisable for 10 years vesting annually in equal amounts over two years from May 28, 2025, subject to continued service on the applicable vesting date and stock