Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 231

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 231
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 - COMMITMENTS & CONTINGENCIES

Registration and Shareholder Rights

The holders of the (i) founder shares, (ii) Private
Placement Warrants, which were issued in a private placement simultaneously with the closing of the IPO and the Class A ordinary shares
underlying such Private Placement Warrants and (iii) warrants that may be issued upon conversion of Working Capital Loans have registration
rights to require the Company to use its best efforts to register a sale of any of its securities held by them pursuant to a registration
rights agreement dated January 24, 2022. The holders of these securities are entitled to make up to three demands, excluding short form
demands, that the Company registers such securities. In addition, the holders have certain “piggy-back” registration rights
with respect to registration statements filed subsequent to the Company’s completion of the initial Business Combination. The Company
will bear the expenses incurred in connection with the filing of any such registration statements.

F-50

Legal Fee Arrangement

Pursuant to the SPA, in respect of the legal expenses
of Shearman & Sterling LLP (“ Shearman”), the Company’s legal counsel prior to the Sponsor Sale, owed by the Company,
the Company will pay Shearman in connection with the closing of the initial Business Combination of the Company together with the payment
of other transaction expenses and fees pursuant to the funds flow for such Business Combination, an amount equal to $350,000 in immediately
available funds to such account as may be provided by Shearman in advance in writing. In addition, the Old Sponsor shall reserve 15,000
Class B ordinary shares in respect of its obligation to Shearman and, promptly following the first date that such shares can be sold,
the Old Sponsor will sell those shares and send the proceeds in immediately available funds to such account as may be provided by Shearman
in advance in writing. Upon closing of the Business Combination on January 15, 2025, the Company was obligated to pay $350,000 to Shearman.
Accordingly, for the year ended December 31, 2024, the Company adjusted the amount owed to Shearman to $350,000 by reversing $215,780
of overestimated expenses that were previously accrued as of December 31, 2023, resulting in a $350,000 accrued expenses amount on the
balance sheet as of December 31, 2024.

Underwriting Agreement

The Company granted the underwriters of the