Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 16

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 16
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 Lock-Up Agreement described above, and (iv) to
provide EEW with the ability to enforce prior to the Closing the lock-up and voting provisions of the Insider Letter.

Sponsor
Agreement

Simultaneously
with the execution and delivery of the EEW Business Combination Agreement, the Sponsor, our Company and EEW entered into a letter agreement
(the “Sponsor Agreement”), and upon its formation, Pubco signed a joinder thereto, pursuant to which the Sponsor has agreed
that to the extent that our unpaid transaction expenses and cash liabilities as of the Closing are more than $5 million (excluding any
transaction financing costs and director & officer tail insurance premiums, the “Excess Purchaser Expenses”), the Sponsor
will either, at its election, (i) pay to Pubco an amount equal to such Excess Purchaser Expenses in cash upon the Closing or (ii) forfeit,
immediately prior to Closing, an aggregate number of Founder Shares equal to the Excess Purchaser Expenses divided by $10.00, and the
Sponsor will use its commercially reasonable efforts to facilitate the Company, EEW and/or Pubco or their respective subsidiaries entering
into financing agreements in respect of one or more transaction financings as contemplated by the EEW Business Combination Agreement,
if such transaction financings are on generally prevailing market terms or better.

Non-Competition
Agreement

Simultaneously
with the execution and delivery of the EEW Business Combination Agreement, EEW’s executive officers (and indirect shareholders)
Svante and Annette Kumlin (each, an “Executive”), each entered into a Non-Competition and Non-Solicitation Agreement (each,
a “EEW Non-Competition Agreement”) in favor of EEW and, upon its formation, Pubco and their respective subsidiaries (the
“Covered Parties”), pursuant to which that Executive agreed for a period of two years after the closing (or if sooner, upon
the termination of their employment by the Covered Parties without cause) not to compete with the Covered Parties and not to solicit
the employees and customers of the Covered Parties. The Executive has also agreed not to disparage the Covered Parties and to customary
confidentiality requirements. The Purchaser Representative has the right to enforce these EEW Non-Competition Agreements on behalf of
Pubco after the Closing.

The
EEW Lock-Up Agreement, Second Insider Letter Amendment, Sponsor Agreement, and EEW Non-Competition Agreement are filed herein as Exhibits