Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 54

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 54
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 waived by Woodford. The Woodford Loan
Agreement also allows Woodford to nominate another director to the Board of Directors, in the event any independent member of the Board
of Directors resigns.

Proceeds of the loans can only be used by to restart the Company’s
operations and for general corporate purposes agreed to by Woodford.

The Woodford Loan Agreement includes
confidentiality obligations, representations, warranties, covenants, and events of default, which are customary for a transaction of this
size and nature. Included in the Loan Agreement are covenants prohibiting us from (a) making any loan in excess of $1 million or obtaining
any loan in an amount exceeding $1 million without the consent of Woodford, which consent may not be unreasonably withheld; (b) selling
more than $1 million in assets; (c) maintaining less than enough assets to perform our obligations under the Loan Agreement; (d) encumbering
any assets, except in the normal course of business, and not in an amount to exceed $1 million; (e) amending or restating our governing
documents; (f) declaring or paying any dividend; (g) issuing any shares which negatively affects Woodford; and (h) repurchasing any shares.

The Company also agreed to grant
warrants to purchase shares of common stock to Woodford (the “Woodford Warrants”) in an amount equal to 15% of the Company’s
then issued and outstanding shares of common stock. Each Woodford Warrant has an exercise price equal to the average of the closing price
of the Company’s common stock for each of the ten days prior to the first amount being debited from the bank account of Woodford,
which equates to an exercise price of $5.60 per share. In the event the Company fails to repay the amounts borrowed when due or Woodford
fails to convert the amount owed into shares, the exercise price of the warrants may be offset by amounts owed to Woodford, and in such
case, the exercise price of the warrants will be subject to a further 25% discount.

In connection with our entry
into the Woodford Loan Agreement, the Company also entered into a Loan Agreement Deed, Debenture Deed and Securitization, with Woodford
(the “Security Agreement”), which provides Woodford with a first floating charge security interest over all present and future
assets of the Company in order to secure the repayment of amounts owed under