Company: KOYNU
Filing Date: 2025-05-15
Form Type: DRS
Source: 0001829126-25-003675
Chunk: 329

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-05-15
Form: DRS
Chunk 329
---
 could be acquired by such U.S. Holder pursuant to the exercise of the warrants. In order to meet the substantially
disproportionate test, the percentage of our issued and outstanding voting shares actually and constructively
owned by the U.S. Holder immediately following the redemption of Class A ordinary shares must, among other requirements, be less than 80% of the percentage of our issued and outstanding voting shares actually and constructively
owned by the U.S. Holder immediately before the redemption. Prior to our initial business combination
the Class A ordinary shares may not be treated as voting shares for this purpose and, consequently,
this substantially disproportionate test may not be applicable. There will be a complete
termination of a U.S. Holder’s interest if either (i) all of our shares actually and constructively owned by the U.S. Holder are redeemed or (ii) all of our shares actually owned by the U.S. Holder are redeemed and the U.S. Holder is eligible to waive, and effectively waives in accordance with specific rules,
the attribution of shares owned by certain family members and the U.S. Holder does not constructively own any other shares of ours (including any shares
constructively owned by the U.S. Holder as a result of owning our warrants). The redemption of the Class A ordinary shares will not be essentially equivalent to a dividend if such redemption
results in a “meaningful reduction” of the U.S. Holder’s proportionate interest in us. Whether the redemption will result in a meaningful
reduction in a U.S. Holder’s proportionate interest in us will depend on the particular facts and circumstances.
However, the IRS has indicated in a published ruling that even a small reduction in
the proportionate interest of a small minority shareholder in a publicly held corporation
who exercises no control over corporate affairs may constitute such a “meaningful
reduction.” A U.S. Holder should consult with its own tax advisors as to the tax consequences of a redemption
of any Class A ordinary shares.

<div align='center'>194</div>

If none of the foregoing tests are satisfied, then the redemption of any Class A ordinary shares will be treated as a corporate distribution and the tax effects
will be as described under “— Taxation of Distributions” above. After the application of those rules, any remaining
tax basis of the U.S. Holder in the redeemed Class A ordinary shares will be added to the U.S. Holder’s adjusted tax basis in its remaining shares, or, if it has none,