Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 250

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 250
---
 Dr. Maskey is equal to 20% of the sum of (i) the amount of cash remaining in the Trust Account after Redemptions
and (ii) the amount of proceeds of any equity investments or debt financing facilities that are or will be actually received by CSLM prior to or substantially concurrently with the Closing, but excluding the PIPE Investment Amount, provided
that such transaction bonus shall not exceed $1,000,000.

Second Amendment to the Merger Agreement

On February 4, 2025, CSLM entered into the Second Amendment to Merger Agreement to (a) amend 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) remove the delay fees incurred in connection with delivery of Fusemachines’ financial statements.

In connection with the 2nd Amendment, the Sponsor Affiliate issued the Escrow Note 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 funds from the Escrow Note shall be put in an escrow account held CST pursuant to the Escrow Agreement. The funds shall be released to Pubco upon the consummation of the Business Combination. In addition,
the maturity dates on the Sponsor Convertible Notes issued on January 25, 2024 were extended to July 12, 2025.

On February 4, 2025,
in connection with the 2nd Amendment, the parties, entered into the Subscription Agreement Amendment to revise the PIPE Investment Amount to $8,840,000.

Expected Accounting Treatment of the Business Combination Proposal

The Domestication

There will be no
accounting effect or change in the carrying amount of the assets and liabilities of CSLM as a result of the Domestication. The business, capitalization, assets and liabilities and financial statements of CSLM immediately following the Domestication
will be the same as those immediately prior to the Domestication.

The Business Combination

The Business Combination will be accounted for as a reverse recapitalization, in accordance with GAAP. Under this method of accounting,
CSLM will