Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 817

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 4
Chunk 817
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 upon the terms and subject to the conditions set forth in the Business Combination Agreement and in accordance
with the applicable provisions of the Companies Act (Revised) of the Cayman Islands and the laws of England and Wales (the Merger, the
Share Exchange and the other transactions contemplated by the Business Combination Agreement and the ancillary documents, together, the
“Transactions”), and any outstanding convertible securities of EEW will be terminated; and (c) as a result of such Transactions,
the Company and EEW each will become a wholly-owned subsidiary of Pubco, and Pubco will become a publicly traded company upon the Closing.

    F-10

COMPASS
DIGITAL ACQUISITION CORP.

NOTES
TO FINANCIAL STATEMENTS

Share
Exchange and Consideration

The
base consideration to be paid to the Sellers is $300,000,000 (subject to increase to the extent that the Company’s unpaid transaction
expenses and cash liabilities as of the Closing that the Sponsor does not pay in cash exceeds $5,000,000, and subject to decrease to
the extent that the amount of EEW’s unpaid transaction expenses is more than $5,000,000), and will be paid entirely in the form
of newly issued ordinary shares of Pubco, par value $0.0001 per share (the “Pubco Ordinary Shares”), with each share valued
at $10.00 (such shares, the “Exchange Shares”).

In
addition to the base consideration as set forth above, the Sellers will be entitled to receive up to an additional 4,200,000 Pubco Ordinary
Shares, subject to equitable adjustment for share splits, share dividends, combinations, recapitalizations and the like after the Closing,
including to account for any equity securities into which such shares are exchanged or converted (the “Earnout Shares”),
as additional consideration from Pubco in the event that:

(i)
If during the 3-year period after the Closing (the “Earnout Period”), the volume-weighted average price for Pubco Ordinary
Shares for 20 out of 30 consecutive trading days is at least: (i) $11.00 per share, the Sellers will receive 50% of the Earnout Shares
and (ii) $12.00 per share, the Sellers will receive the remaining 50% of the Earnout Shares; or

(ii)
If Pubco’s consolidated earnings before interest, taxes, depreciation, and amortization for the fiscal year ended April