Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 817

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9B
Chunk 817
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 models; and the Ongoing Services Phase (36-52 weeks) ensures the sustained functionality
and relevance of Sarborg’s deliverables while supporting Conduit’s growth through iterative improvements and updates. Sarborg will
create specific deliverables, including reports, computer programs, software applications, APIs, mobile applications, source code, written
technical specifications and 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 Agreement.

The Sarborg Agreement has an
initial term of twelve months, commencing on the effective date, and may be renewed or extended upon mutual written agreement of the parties.
Either party may terminate the Sarborg Agreement for any reason upon ninety days’ written notice or immediately upon written notice
if the other party breaches any material term of the Sarborg 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.

In consideration of the services,
Conduit has agreed to pay Sarborg an initial cash payment of $200,000 and $200,000 payable through the issuance of 22,727
shares of common stock, determined by the closing price on the day preceding the execution of the Sarborg Agreement. Further milestone
payments payable in conjunction with the achievement of certain milestones over the term of the Sarborg Agreement, totaling up to $1,800,000,
are payable in cash or shares, at the discretion of Conduit. Sarborg will be reimbursed for pre-approved, necessary, and reasonable
out-of-pocket expenses directly incurred in connection with the performance of the services.

The Sarborg 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. Conduit will own all deliverables resulting from
the services performed by Sarborg under the Sarborg Agreement.

The Sarborg Agreement provides Sarborg with
registration rights for any common stock of Conduit that Sarborg receives as consideration under the Sarborg Agreement. Conduit
must use commercially reasonable efforts to prepare and file a registration statement covering the resale of the common stock within sixty
days after the issuance of the shares to Sarborg