Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 4

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 4
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 purposes, including debt repayment, and $2.0
million was to be used by Fusemachines to repurchase certain Fusemachines shares from Mr. Maskey (collectively, the “Sponsor Convertible Notes”), and contemporaneously therewith, Mr. Maskey entered into a pledge agreement
with the Sponsor and Fusemachines (the “Pledge Agreement”), pursuant to which Mr. Maskey pledged certain shares of Fusemachines Common Stock held by him to secure the Fusemachines ‘obligations under the Sponsor Convertible
Notes. The Sponsor Convertible Notes (i) may convert into shares of Fusemachines Preferred Stock prior to the Closing of Merger at the option of the Sponsor in the event of a Qualified Financing, as defined in the Sponsor Convertible Notes, or
(ii) automatically convert into shares of Common Stock of Fusemachines prior to the Closing of the Merger, at the Conversion Price set forth and defined in the Sponsor Convertible Notes, upon receipt of five days’ notice the date of the
Closing.

The PIPE Investment

In connection with the transactions contemplated by the Merger Agreement, the parties agreed that Pubco will enter into
subscription agreements, in the form and substance as reasonably agreed upon by CSLM and

Fusemachines (the “Subscription Agreements”), with certain investors providing for aggregate investments in Pubco Common Stock in a private placement on or prior to the Closing
of an amount as of immediately prior to the Effective Time, the sum of (i) $8,240,000, (ii) the outstanding balance under the 3rd Amended and Restated Promissory Note of up to $4,000,000, dated as of February 4, 2025 and amended on
May 23, 2025, issued by CSLM in favor of Sponsor to fund CSLM’s working capital requirements, as it may be from time to time amended or supplemented, and (iii) up to $3,000,000, subject to reduction up to zero as follows: (a) a
dollar-for-dollar reduction for Parent Closing Excess Cash of up to $1,000,000 (as defined below), and (b) a 20% reduction for every dollar of Parent Closing Excess Cash in excess of $1,000,000 (the “Contingent PIPE Investment Amount”), if any (the “PIPE Investment Amount”) at $10.00 per share of Pubco Common Stock (the “PIPE Investment”).