Company: LTRYW
Filing Date: 2025-02-10
Form Type: DEF 14A
Source: 0001493152-25-005681
Chunk: 38

Company: Lottery.com Inc.
Filing Date: 2025-02-10
Form: DEF 14A
Chunk 38
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-exclusive basis in such jurisdictions.

Pursuant to the
Service Agreement, Master Goblin was authorized and approved by the Company to incur up to $100,000 in initial expenses per location
for the commencement of operations at each location, including, without limitation, tenant improvements, furniture, inventory, fixtures
and equipment, security and lease deposits, and licensing and filing fees. Similarly, pursuant to the Service Agreement, during each
month of operation, Master Goblin was authorized to submit to the Company for reimbursement on-going expenses of up to $5,000 per location
for actually incurred lease expenses. The initial expenses were submitted by Master Goblin to the Company upon Master Goblin securing
a lease and leases were only secured by Master Goblin in any location upon request of the Company. Such initial expenses were recorded
by the Company as lease obligations. On-going expenses were submitted by Master Goblin to the Company on a monthly basis, subject to
offset, and were recorded by the Company as an expense. To the extent Master Goblin had a positive net income in any month, exclusive
of the sale of lottery games, such net income reduced or eliminated such reimbursable expenses for that month.

In January 2023,
Woodford Eurasia Assets, Ltd. signed a letter of intent to acquire Master Goblin. As of the date of this Report, no definitive documentation
for that transaction has been signed.

The Company paid
Master Goblin an aggregate of approximately $53,000 and $440,000, including expense reimbursements under the Service Agreement and additional
reimbursable expenses, during the years ended December 31, 2023 and 2022, respectively. In January of 2023, the company paid $53,000
to Master Goblin Games for settlement of outstanding obligations of $316,919 and the parties mutually agreed to terminate the business
relationship.

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Investor Rights Agreement

Simultaneously with the closing of the Business Combination on October 29, 2021 (the “Business Combination Closing”), the Company entered into an investor rights agreement (the “Investor Rights Agreement”) with the initial stockholders of Trident Acquisition Corp. and certain stockholders of AutoLotto, including Lawrence Anthony DiMatteo III, our former chief executive officer, and Matthew Clemenson, our former chief revenue officer (collectively, the “Stockholder Parties”). Pursuant to the Investor Rights Agreement, such parties agreed to vote or cause to be voted all shares owned by them or take such other necessary action to ensure that