Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 9

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 9
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 acted upon at a shareholders’ meeting to be called for our shareholders to vote on,
among other matters, the EEW Business Combination Agreement and the EEW Business Combination, and providing such holders with an opportunity
to participate in the redemption of all or a portion of their Public Shares upon the Closing (the “Closing Redemption”).
As part of the EEW Registration Statement, Pubco will approve and adopt, subject to our shareholder approval, an incentive equity plan
with awards for 5% of the issued and outstanding Pubco Ordinary Shares immediately after the Closing (giving effect to the Closing Redemption)
and otherwise in a form to be reasonably agreed by EEW, Compass Digital and Pubco. In addition, we will seek an amendment to the Amended
and Restated Charter to remove the Redemption Limitation set forth therein. Our Board will not be able to change
its recommendation for our shareholders to approve the EEW Business Combination Agreement, the EEW Business Combination and related matters,
except as required by their applicable fiduciary duties.

5

The
parties to the EEW Business Combination Agreement also agreed to take all necessary actions to cause Pubco’s board of
directors immediately after the Closing to consist of a board of between five and seven directors, comprised of: (i) one person who
is designated by our Company prior to the Closing and approved by EEW acting reasonably, and (ii) four to six persons who are
designated by EEW prior to the Closing, one of whom shall be the initial Chairperson, and who shall meet any applicable Nasdaq
Rules. A majority of the directors on such Pubco board shall qualify as independent under the Nasdaq Rules. The Pubco board of
directors will be divided into three classes with staggered terms of three years each, which classes will be determined by
EEW’s board of directors prior to the Closing.

EEW
will use its reasonable best efforts to deliver to our Company PCAOB-audited financial statements for its fiscal years ended April 30,
2023 and April 2024 on or prior to September 30, 2024, and in any event prior to October 31, 2024 (the “Audit Delivery Date”).

Prior
to the Closing, our Company, EEW and Pubco will use our reasonable efforts to minimize the amount of funds in the Trust Account that
are redeemed by our Public Shareholders. We will also use our commercially reasonable efforts to enter into equity or debt financing
arr