Company: LEGT
Filing Date: 2025-11-12
Form Type: 425
Source: 0001829126-25-008967
Chunk: 7

Company: Legato Merger Corp. III
Filing Date: 2025-11-12
Form: 425
Chunk 7
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 affiliates) with respect to certain competing transactions; and (y) any action, proposal, transaction, or agreement that could reasonably be expected to materially impede, interfere with, delay, discourage, adversely affect or inhibit the timely consummation of the Transactions or the fulfillment of Legato’s obligations under the BCA or change in any manner the voting rights of any class of shares of Legato (including any amendments to Legato’s organizational documents other than in connection with the Transactions or in connection with any extension of time for Legato to complete an initial business combination). Pursuant to the Founder Support Agreement, SPAC Founders also agreed to waive any appraisal or dissenters’ rights under applicable law and not to exercise any right to redeem ordinary shares of Legato for a pro rata portion of Legato’s trust account.

The SPAC Founders also agreed to use their reasonable best efforts to incentivize investors to enter into private placement transactions and/or non-redemption agreements with Einride and/or Legato, as applicable, by transferring initial shares held by them to such investors at the Closing; provided, that the SPAC Founders are not obligated to transfer more than 1,000,000 shares.

In addition, SPAC Founders agreed that, subject to and conditioned upon the Closing occurring, they will automatically and irrevocably surrender and forfeit, for no consideration, up to 2,400,000 initial shares (less any number of shares transferred to investors as described above) in proportion to the number of public shares of Legato redeemed prior to the Closing.

Einride Shareholder Support Agreement

Concurrently with the execution of the BCA, Einride, Legato and certain of the Einride shareholders (who collectively hold at least 50% of the Einride common and preference shares outstanding entitled to vote) entered into an agreement (“ Einride Shareholder Support Agreement”) pursuant to which they agreed to vote or cause to be voted all Einride shares beneficially held by them (i) in favor of all proposals necessary to effectuate the Transactions; and (ii) against (x) any proposal or offer from any other person (other than Legato or its affiliates) with respect to certain competing transactions; and (y) any action, proposal, transaction, or agreement that could reasonably be expected to materially impede, interfere with, delay, discourage, adversely affect or inhibit the timely consummation of the Transactions or the fulfillment of Einride’s obligations under the BCA or change in any manner the voting rights