Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 402

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 3
Chunk 402
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 28, 2024, the Company issued a promissory note (the “October
2024 Nirland Note”) to Nirland, a related party, in the original principal amount of $600,000 in exchange for funds in such amount.
In connection with the October 2024 Nirland Note, the Company paid Nirland a 1% arrangement fee. The October 2024 Nirland Note bears interest
at a rate of 12% per annum, is due and payable semi-annually in arrears, and matures on October 31, 2025. Refer to Note 8 for additional
details.

Sarborg Agreement

On December 12, 2024, the Company
entered into the Sarborg Agreement with Sarborg. Under the terms of the Sarborg Agreement, Sarborg will provide algorithmic
and cybernetic technology services to Conduit, including the development of decision-support tools and advanced cybernetic systems tailored
to enhance Conduit’s decision-making processes and maximize the value of its pharmaceutical asset portfolio.

Sarborg will perform the
services to Conduit comprised of three phases: the Initial Phase (0-24 weeks) focuses on establishing a foundation for 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 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,