Company: KOYNU
Filing Date: 2025-07-31
Form Type: S-1/A
Source: 0001829126-25-005627
Chunk: 206

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-07-31
Form: S-1/A
Chunk 206
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 Islands companies may not have standing to initiate a shareholder
derivative action in a federal court of the United States.

There is uncertainty as to whether
the Cayman Islands courts would:

| ● | recognize or enforce against us judgments of U.S. courts based on certain civil 
 liability provisions of U.S. securities laws; and                               |

| ● | entertain original actions brought in the Cayman Islands against us or our directors                    
 or officers predicated upon the securities laws of the United States or any state in the United States. |

We have been advised by
Forbes Hare, our Cayman Islands counsel, that there is uncertainty with regard to Cayman Islands law related to whether a judgment obtained
from the U.S. courts under civil liability provisions of U.S. securities laws will be determined by the courts of the Cayman Islands
as penal or punitive in nature. If such determination is made, the courts of the Cayman Islands will not recognize or enforce the judgment
against a Cayman Islands company, such as our Company. As the courts of the Cayman Islands have yet to rule on making such a determination
in relation to judgments obtained from U.S. courts under civil liability provisions of U.S. securities laws, it is uncertain whether
such judgments would be enforceable in the Cayman Islands. We have been further advised that although there is no statutory enforcement
in the Cayman Islands of judgments obtained in the United States, a judgment obtained in such jurisdiction will be recognized and enforced
in the courts of the Cayman Islands at common law, without any re-examination of the merits of the underlying dispute, by an action commenced
on the foreign judgment debt in the Grand Court of the Cayman Islands, provided such judgment:

| ● | is given by a foreign court of competent jurisdiction; |

| ● | imposes on the judgment debtor a liability to pay a liquidated sum for which 
 the judgment has been given;                                                 |

| ● | is final; |

| ● | is not in respect of taxes, a fine or a penalty; |

| ● | was not obtained by fraud; and |

| ● | is not of a kind the enforcement of which is contrary to natural justice or 
 the public policy of the Cayman Islands.                                    |

Subject to the above limitations,
in appropriate circumstances, a Cayman Islands court may give effect in the Cayman Islands to other kinds of final foreign judgments
such as declaratory orders, orders for performance of contracts and injunctions.

As a result of all of the