Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 552

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 2
Chunk 552
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support services provided to members of our Management Team and other expenses and obligations of our Sponsor, pursuant to the Administrative
Services Agreement, as assigned to our Sponsor by the Legacy Sponsor. In addition, our Sponsors, Prior Directors and Officers, officers
and directors, or any of their respective affiliates are reimbursed for any out-of-pocket expenses incurred in connection with activities
on our behalf such as identifying potential target businesses and performing due diligence on suitable Business Combinations. Our Audit
Committee reviews on a quarterly basis all payments that were made by us to our Sponsors, Prior Directors and Officers, officers or directors,
or our or their affiliates. Any such payments prior to an initial Business Combination are made from funds held outside the Trust Account.
Other than quarterly Audit Committee review of such reimbursements, we do not have any additional controls in place governing our reimbursement
payments to our directors and officers for their out-of-pocket expenses incurred in connection with our activities on our behalf in connection
with identifying and consummating an initial Business Combination. Other than these payments and reimbursements, no compensation of any
kind, including finder’s and consulting fees, has been or will be paid by us to our Sponsors, Prior Directors and Officers, officers
and directors, or any of their respective affiliates, prior to completion of our initial Business Combination.

After
the completion of our initial Business Combination, directors or members of our Management Team who remain with us may be paid consulting
or management fees from the combined company. All of these fees will be fully disclosed to shareholders, to the extent then known, in
the proxy solicitation materials or tender offer materials furnished to our shareholders in connection with a proposed initial Business
Combination, such as the EEW Registration Statement. We have not established any limit on the amount of such fees that may be paid by
the combined company to our directors or members of Management. It is unlikely the amount of such compensation will be known at the time
of the proposed initial Business Combination because the directors of the post-combination business will be responsible for determining
officer and director compensation. Any compensation to be paid to our officers will be determined, or recommended to the Board of Directors
for determination, either by a compensation committee constituted solely by independent directors or by a majority of the independent
directors on our Board of Directors.

We
do not intend to take any action to ensure that members of our Management Team maintain their positions with us after the closing of
our initial Business Combination, although it is possible that