Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 228

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 228
---
 would be identical to those of the Private Placement Warrants. As of December 31, 2024 and December 31, 2023,
the Company had no borrowings under the Working Capital Loans.

NOTE 6 - PREPAID SHARE FORWARD
AGREEMENT

On December 27, 2024, the Company, CayCo and FST
entered into an agreement (the “ Prepaid Share Forward Agreement”) with each of (i) Harraden Circle Investors, LP (“ HCI”)
and (ii) Harraden Circle Special Opportunities, LP (“ HCSO”) (HCI and HCSO collectively, the “ Seller”) for an over-the-counter
Prepaid Share Forward Transaction. For purposes of the Prepaid Share Forward Agreement, “ Counterparty” refers to the Company
prior to the consummation of the Business Combination and CayCo after the consummation of the Business Combination.

Pursuant to the terms of the Prepaid Share Forward
Agreement, the Seller intends, but is not obligated, to purchase up to a number of Class A ordinary shares of the Company, in the aggregate
amount equal to up to 3,000,000, from third parties through a broker in the open market (other than through Counterparty), or Class A
ordinary shares previously redeemed by Seller that Seller reverses a previously submitted redemption request for prior to the closing
of the Business Combination (the “ Relevant Shares”). The Seller is also entitled to purchase up to 100,000 Class A ordinary
shares of the Company (the “ Committed Shares”), which shall not form a part of the Relevant Shares under the Prepaid Share
Forward Agreement, and the Sellers will not sell the Committed Shares at a price less than the Reset Price (as defined below) prior to
30 day anniversary of the closing of the Business Combination.

The Prepaid Share Forward Agreement provides that
the Counterparty shall pay to the Seller an aggregate cash amount (the “ Prepayment Amount”) equal to the product of (i) the
number of Relevant Shares and the number of Committed Shares and (ii) the redemption price per share as set forth in the Company’s
constitutional documents (the “ Redemption Price”, which was approximately US$11.79 per share at the execution of the Prepaid
Share Forward Agreement) directly from the trust account maintained by Continental Stock Transfer & Trust Company by no later than
the earlier of (a) one business day after the closing of the Business Combination and (b) the