Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 229

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 229
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 date any assets from the Trust Account are
disbursed in connection with the Business Combination.

F-49

From time to time and on any date following the
Business Combination (any such date, a “ OET Date”), Seller may, in its absolute discretion, terminate the Transaction in whole
or in part with respect to any number of Relevant Shares by giving notice of such termination and the specified number of Relevant Shares
(such quantity, the “ Terminated Shares”). As of each OET Date, the Counterparty shall be entitled to an amount from Seller,
and the Seller shall pay to the Counterparty, an amount equal to (a) the then-in-effect Reset Price, multiplied by (b) the Terminated
Shares. Thereafter, the number of Relevant Shares shall be reduced by the number of Terminated Shares. The Reset Price shall be initially
the Redemption Price, and, from time to time in the Counterparty’s sole discretion, the Reset Price may be adjusted to the lower
of the current Reset Price and the lowest daily VWAP (as defined in the Prepaid Forward Share Agreement) over the prior 10 trading days.
For avoidance of doubt, the Reset Price may only be adjusted downward.

The Prepaid Share Forward Agreement matures on
the date falling 12 months after of the closing of the Business Combination (the “ Maturity Date”).

At Maturity Date, the Seller shall return to the
Counterparty the Relevant Shares, and in exchange of such return, shall be entitled to retain an amount equal to the number of Relevant
Shares multiplied by the Redemption Price.

On January 15, 2025, the Company paid $20,605,656,
including $77,540 transaction costs, to the Seller, pursuant to the terms of the Prepaid Share Forward Agreement. Among the 1,742,573
shares under the Prepaid Share Forward Agreement, 100,000 are Commitment Shares and 1,642,573 are Relevant Shares.

Commitment Shares are already outstanding at inception
of the Prepaid Forward Purchase Agreement and Seller does not have ability to redeem during the term of Prepaid Forward Purchase Agreement. The
Company concluded that the Commitment Shares are compensation to Seller for the waiver of the redemption rights of Relevant Shares at
closing of the Business Combination. The Company measured the Commitment Shares at their fair value at inception, by the redemption price
of $11.79 per share.

The Company evaluated the Prepaid Share Forward
Agreement according toASC