Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 104

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 104
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 designs, operating and maintenance manuals, and other recorded data and information
arising from or relating to the services. Sarborg will provide all necessary resources to perform the services and deliver the deliverables
in accordance with the Sarborg Service Agreement.

    19

The
Sarborg Service Agreement has an initial term of 12 months, which commenced in December 2024, and may be renewed or extended upon mutual
written agreement of the parties. Either party may terminate the Sarborg Service Agreement for any reason upon 90 days’ written
notice or immediately upon written notice if the other party breaches any material term of the Sarborg Service Agreement and fails to
cure such breach within thirty days or becomes insolvent, files for bankruptcy, or is placed under the control of a receiver, trustee,
or similar authority.

The
Sarborg Service Agreement includes provisions for the ownership and use of intellectual property. Sarborg will own its pre-existing intellectual
property rights, including proprietary tools and methodologies used in the performance of the services. CDT will own all deliverables
resulting from the services performed by Sarborg under the Sarborg Service Agreement.

The
Sarborg Service Agreement provides Sarborg with registration rights for any Common Stock of CDT that Sarborg receives as consideration
under the Sarborg Service Agreement. In such event, CDT will use commercially reasonable efforts to (i) file a registration statement
covering the resale of the Common Stock within 60 days after the issuance; and (ii) ensure that such registration statement becomes effective
within 90 days after filing. This Agreement also includes confidentiality obligations, representations and warranties, indemnification,
limitation of liability, and insurance requirements.

In
consideration of the services, CDT agreed to pay Sarborg an initial cash payment of $0.2
million and $0.2
million payable through the issuance of 1,515
shares of Common Stock, determined by the closing price on the day preceding the execution of the Sarborg Service Agreement. The
initial cash payment of $0.2
million was made on December 20, 2024, and the 1,515
shares of Common Stock were issued on January 17, 2025. Further milestone payments payable in conjunction with the achievement of
certain milestones over the term of the Sarborg Service Agreement, totaling up to $1.8
million, are payable in cash or stock, at the discretion of CDT. Sarborg will be reimbursed for pre