Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 302

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 302
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 Stock constructively owned by the U.S. Holder as a result of owning Pubco Warrants) relative to
all of the Pubco Common Stock

176

outstanding both before and after the redemption. The redemption of Public Shares generally will be treated as a sale or exchange of the Pubco Common Stock (rather than as a corporate
distribution) if the redemption (i) is “substantially disproportionate” with respect to the U.S. Holder, (ii) results in a “complete termination” of the U.S. Holder’s interest in CSLM or (iii) is “not
essentially equivalent to a dividend” with respect to the U.S. Holder. These tests are explained more fully below.

In determining
whether any of the foregoing tests is satisfied, a U.S. Holder takes into account not only Pubco Common Stock actually owned by the U.S. Holder, but also Pubco Common Stock that is constructively owned by it. A U.S. Holder may constructively own, in
addition to stock owned directly, stock owned by certain related individuals and entities, including those in which the U.S. Holder has an interest or that have an interest in such U.S. Holder, as well as any stock the U.S. Holder has a right to
acquire by exercise of an option, which would generally include Pubco Common Stock which could be acquired pursuant to the exercise of the Pubco Warrants. In order to meet the substantially disproportionate test, the percentage of CSLM’s
outstanding voting stock actually and constructively owned by the U.S. Holder immediately following the redemption of the Pubco Common Stock must be less than 80% of the percentage of CSLM’s outstanding voting stock actually and constructively
owned by the U.S. Holder immediately before the redemption, (ii) the U.S. Holder’s percentage ownership (including constructive ownership) of the outstanding Pubco Common Stock (both voting and nonvoting) immediately after the redemption
must be less than 80% of such percentage ownership (including constructive ownership) immediately before the redemption; and (iii) the U.S. Holder must own (including through constructive ownership), immediately after the redemption, less than
50% of the total combined voting power of all classes of stock of CSLM entitled to vote. There will be a complete termination of a U.S. Holder’s interest if either (i) all of the shares of the Pubco Common Stock actually and constructively
owned by the U.S. Holder are