Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 611

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 5
Chunk 611
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collaboration and aligning Sarborg’s services with Conduit’s strategic goals; the Development Phase (24-36 weeks) involves
building technological infrastructure, including dashboards and predictive 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 Service Agreement.

The
Sarborg Service Agreement has an initial term of 12 months, which commenced on the effective date, 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. Conduit 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 Conduit that Sarborg receives as consideration under the Sarborg Service Agreement. In such event, Conduit 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, Conduit agreed to pay Sarborg an initial cash payment of $0.2
million and $0.2
million payable through the issuance of 22,727
shares of common stock, determined by the closing price on the day preceding the execution of the Sar