Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 112

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 112
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in the event of the Business Combination, the outstanding balance may be repaid at the Sponsor’s discretion, in cash or $1,491,000
of the principal and accrued and unpaid interest shall be converted into the Company’s Class A ordinary shares at a share price
of four dollars ($4.00), the balance of which shall be payable in cash at the closing of the Business Combination.

On February 4, 2025, Fusemachines, the Company, and CSLM Merger
Sub, Inc. entered into the second amendment to the Merger Agreement (the “2nd Amendment”) which amends the Merger
Agreement dated January 22, 2024 and the Merger Agreement Amendment dated August 27, 2024 (together, the “Original Merger
Agreement”). The 2nd Amendment (a) amends the definition of the “PIPE Investment Amount” to mean the sum of (i)
$8,840,000, and (ii) the Contingent PIPE Investment Amount, if any; and (b) removes the delay fees incurred in connection with
delivery of Fusemachines’ financial statements.

In connection with the 2nd Amendment, an affiliate (the
“Sponsor Affiliate”) of the Sponsor, provided financing to Fusemachines in the amount of $2,160,000, in exchange for a
new convertible note which note shall convert into shares of common stock of Fusemachines at a price of $0.44 per share (a)
automatically at the time of the Business Combination, or (b) on July 12, 2025 at the option of the holder, if not, then payable in
cash (the “Escrow Note”). The funds from the Escrow Note shall be put in an escrow account held at Continental Stock
Transfer and Trust Company, CSLM’s transfer agent (“CST”) pursuant to an escrow agreement among CSLM, the Sponsor
Affiliate, Fusemachines and CST (the “Escrow Agreement”) and shall be released to the Surviving Corporation upon the
consummation of the Business Combination. In addition, the maturity dates on the two promissory notes issued by Fuse to the Sponsor
Affiliate on January 25, 2024 in the amounts of $4.5 million and $2 million, were extended to July 12, 2025.

On February 4, 2025, in connection with the 2nd Amendment, the