Company: CBLO
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001882781-25-000034
Chunk: 296

Company: C2 Blockchain, Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 4
Chunk 296
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 its obligations in full and in accordance with
the terms of the Promissory Note, and was never in default during the term of the Note (independently of any cure period), then Coventry
shall, within ten (10) calendar days thereafter, return five million (5,000,000) of the Commitment Stock shares to the Company’s
treasury for cancellation.

The
Company shall include on any registration and/or offering statement subsequently filed with the SEC, including without limitation any
offering statement other than a registration statement on Form S-8 or S-4, all Commitment Stock, Conversion Shares, and any shares issuable
upon conversion of the Promissory Note (collectively, the “Shares”) for resale by Coventry Enterprises LLC, notwithstanding
that Coventry may rely on another exemption, including Rule 144, to sell such Shares.

The
Company shall reserve thirty million (30,000,000) shares of its common stock for issuance to Coventry upon conversion of the Promissory
Note.

The
Coventry Note is not convertible under ordinary circumstances, but provides Coventry the option to convert the outstanding balance into
shares of common stock solely upon an event of default. In such event, the initial conversion price is equal to 102% of the lowest per-share
trading price during the twenty (20) trading day period prior to the conversion date (the “Calculated Conversion Price”).
The note also provides that if the Company conducts a lower-priced equity financing within 90 days of such conversion, Coventry may elect
to apply the lower price (the “Alternative Conversion Price”) in place of the Calculated Conversion Price, or receive additional
shares to reflect the difference.

Coventry
Enterprises LLC Equity Line Agreement

The
Company entered into a Common Stock Purchase Agreement (the “Equity Line Agreement”) with Coventry Enterprises LLC, pursuant
to which Coventry committed to purchase up to $10,000,000.00 of the Company’s common stock over a 36-month period beginning on
the effective date of the registration statement required under the agreement.

-Under
the Equity Line Agreement, the Company may deliver drawdown notices from time to time, in amounts up to the lesser of:

a.
$250,000 per drawdown,

b.
No more than 200% of the average daily trading volume (based on dollar value) over the preceding 10 business days; and

c.
Only to the extent that such purchase