Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 452

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1C
Chunk 452
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 the 2023 Non-Redemption Agreements with the Sponsor and unaffiliated third-party
investors in exchange for such investors agreeing not to redeem an aggregate of 4,998,734 Public Shares in connection with the vote to
approve the Charter Amendment Proposals at the 2023 EGM. In exchange for these commitments not to redeem the 2023 Non-Redeemed Shares,
the Sponsor agreed to transfer to such investors an aggregate of 749,810 Founder Shares held by the Sponsor promptly following the closing
of the Business Combination (but no later than two business days after the satisfaction of the requisite conditions to such transfer).

53

Between
July 17, 2024 and July 18, 2024, we entered into the 2024 Non-Redemption Agreements with our Sponsor and unaffiliated, third-party investors
in exchange for such investors agreeing not to redeem an aggregate of 2,475,000 Public Shares in connection with the vote to approve
the 2024 Extension Amendment Proposal at the 2024 EGM. In exchange for these commitments not to redeem the 2024 Non-Redeemed Shares,
the Sponsor agreed to transfer to such investors an aggregate of (i) 412,498 Founder Shares held by the Sponsor for the first five (5)
months of the extension of the Combination Period from July 19, 2024 to December 19, 2024 pursuant to the 2024 Extension Amendment Proposal
and (ii) 82,498 Founder Shares held by the Sponsor per month, for each additional month of the extension of the Combination Period from
December 19, 2024 until April 19, 2025, as needed pursuant to the 2024 Extension Amendment Proposal, in connection with the closing of
the Business Combination, provided that (i) the investors did not exercise their redemption rights with respect to the 2024 Non-Redeemed
Shares in connection with the 2024 EGM and (ii) the 2024 Extension Amendment Proposal was approved.

In
connection with our entry into the 2024 Non-Redemption Agreements, we also agreed that, in the event of the liquidation of the Trust
Account, we will only utilize up to $50,000 of funds from the accrued interest of the Trust Account to pay any dissolution expenses if
we do not effect a Business Combination prior to the end of the Combination Period.

Registration
Rights

The
holders of the Founder Shares