Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 31

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 31
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 prospective target
businesses and other entities with which we do business execute agreements with us waiving any right, title, interest or claim of any
kind in or to any monies held in the Trust Account for the benefit of our Public Shareholders, there is no guarantee that they will execute
such agreements or even if they execute such agreements that they would be prevented from bringing claims against the Trust Account including
but not limited to fraudulent inducement, breach of fiduciary responsibility or other similar claims, as well as claims challenging the
enforceability of the waiver, in each case in order to gain an advantage with respect to a claim against our assets, including the funds
held in the Trust Account. If any third party refuses to execute an agreement waiving such claims to the monies held in the Trust Account,
our Management will consider whether competitive alternatives are reasonably available to us and will only enter into an agreement with
such third-party if Management believes that such third party’s engagement would be in the best interests of the company under
the circumstances. Examples of possible instances where we may engage a third party that refuses to execute a waiver include the engagement
of a third-party consultant whose particular expertise or skills are believed by Management to be significantly superior to those of
other consultants that would agree to execute a waiver or in cases where Management is unable to find a service provider willing to execute
a waiver. Withum, our independent registered public accounting firm, and the underwriters of the Initial Public Offering have not executed
agreements with us waiving such claims to the monies held in the Trust Account.

In
addition, there is no guarantee that such entities will agree to waive any claims they may have in the future as a result of, or arising
out of, any negotiations, contracts or agreements with us and will not seek recourse against the Trust Account for any reason. In order
to protect the amounts held in the Trust Account, our Sponsors have agreed that they will be liable to us if and to the extent any claims
by a third party (other than Withum, our independent registered public accounting firm) for services rendered or products sold to us,
or a prospective target business with which we have entered into a written letter of intent, confidentiality or other similar agreement
or Business Combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per Public Share
and (ii) the actual amount per Public Share held in the Trust Account as of