Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 550

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 5
Chunk 550
---
 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. The Company must cause the registration statement covering such shares to become effective
withing ninety days of the filing of the registration statement. The Sarborg Agreement also includes confidentiality obligations, representations
and warranties, indemnification, limitation of liability, and insurance requirements.

Dr. Andrew Regan, a member of Conduit’s board of directors, also
sits on the board of directors of Sarborg.

Directors
and Officers

Certain
of the individuals that serve as members of our board of directors since completion of the Business Combination have relationships with
MURF, Old Conduit, and/or one of their respective stockholders. Dr. Freda Lewis-Hall, the Chairperson of our board of directors, was
an indirect shareholder of Conduit and indirectly received 2,003 shares of our Common Stock upon completion of the Business Combination.
Dr. David Tapolczay, our Chief Executive Officer and a member of our board of directors, was a shareholder of Old Conduit and received
2,003 shares of our Common Stock upon completion of the