Exhibit 10.5


 


COMPASS DIGITAL ACQUISITION CORP. 


3626 N Hall St


Suite 910


Dallas, TX 75219


 


October 14, 2021


 


Compass Digital SPAC LLC


3626 N Hall St, Suite 910


Dallas, Texas 75219


 


Re: Administrative Services Agreement


 


Ladies and Gentlemen:


 


This letter agreement (this
“Agreement”) by and between Compass Digital Acquisition Corp. (the “Company”) and
Compass Digital SPAC LLC (the “Sponsor”), dated as of the date hereof, will confirm our agreement that, commencing
on the date the securities of the Company are first listed on the NASDAQ (the “Listing Date”), pursuant to a
Registration Statement on Form S-1 and prospectus filed with the U.S. Securities and Exchange Commission (the “Registration
Statement”) and continuing until the earlier of the consummation by the Company of an initial business combination or the
Company’s liquidation (in each case as described in the Registration Statement) (such earlier date hereinafter referred to as the
“Termination Date”):


 


1.       The
Sponsor shall make available, or cause to be made available, to the Company, at 3626 N Hall St, Suite 910, Dallas, TX 75219 (or any
successor location), office space and secretarial and administrative services and other obligations of the Sponsor as may be reasonably
required by the Company. In exchange therefor, the Company may pay the Sponsor up to $10,000 per month on the Listing Date and continuing
monthly thereafter until the Termination Date; and


 


2.       The
Sponsor hereby irrevocably waives any and all right, title, interest, causes of action and claims of any kind as a result of, or arising
out of, this Agreement (each, a “Claim”) in or to, and any and all right to seek payment of any amounts due
to it out of, the trust account established for the benefit of the public shareholders of the Company and into which substantially all
of the proceeds of the Company’s initial public offering will be deposited (the “Trust Account”), and
hereby irrevocably waives any Claim it may have in the future as a result of, or arising out of, this Agreement, which Claim would reduce,
encumber or otherwise adversely affect the Trust Account or any monies or other assets in the Trust Account, and further agrees not to
seek recourse, reimbursement, payment or satisfaction of any Claim against the Trust Account or any monies or other assets in the Trust
Account for any reason whatsoever.


 


This Agreement constitutes
the entire agreement and understanding of the parties hereto in respect of its subject matter and supersedes all prior understandings,
agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter
hereof or the transactions contemplated hereby.


 


This Agreement may not be
amended, modified or waived as to any particular provision, except by a written instrument executed by the parties hereto.


 


No party hereto may assign
either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other party.
Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate to transfer or assign any
interest or title to the purported assignee.


 


This Agreement shall be governed
by and construed in accordance with the laws of the State of New York for agreements made and to be wholly performed within such state,
without regards to the conflicts of laws principles thereof.


 




     


     


    

[Signature Page Follows] 


 


 




 




     


     


    

	 	 	Very truly yours, 
	 	 	 
	 	 	COMPASS DIGITAL ACQUISITION CORP.
	 	 	 	 
	 	 	By: 	/s/ Burhan Jaffer
	 	 	 	Name:	Burhan Jaffer
	 	 	 	Title:	Chief Financial Officer


 


	AGREED AND ACCEPTED BY:	 
	 	 
	 	 
	
    COMPASS DIGITAL SPAC LLC

     
	 
	By	/s/ Abidali Neemuchwala	 
	 	Name:	Abidali Neemuchwala	 
	 	Title:	Authorized Person 	 
	 	 


 


[Signature Page to Administrative Services Agreement]