Document:

EXHIBIT 4.6

 

The
following description summarizes the most important terms of our securities that are registered under Section 12 of
the Securities Exchange Act of 1934, as amended. Because it is only a summary, it does not contain all the
information that may be important to you. For a complete description, you should refer to our amended and restated memorandum and articles
of association, warrant and warrant agreement, copies of which have been are incorporated by reference as exhibits to our Annual Reports
on Form 10-K, and the applicable provisions of the Companies Act (Revised), as amended (the “Companies Act”).

 

Ordinary shares

 

General.
All the issued and outstanding ordinary shares are fully paid and nonassessable. Certificates representing the ordinary shares
are issued in registered form. The ordinary shares are issued when registered in the register of our shareholders. The ordinary shares
are not entitled to any sinking fund or pre-emptive or redemption rights. Our shareholders may freely hold and vote their shares.

 

Voting
Rights. Each ordinary share is entitled to one vote on all matters upon which the ordinary shares are entitled to vote, including
the election of directors. There is no provision for cumulative voting with regard to the election of directors. Voting at any meeting
of shareholders is by show of hands, unless a poll is (before or on the declaration of the result of the show of hands) demanded by one
or more shareholders present in person or by proxy entitled to vote and who together hold not less than 10% of the paid up voting share
capital of the Company.

 

Quorum.
The required quorum for a meeting of our shareholders consists of a number of shareholders present in person or by proxy and
entitled to vote that represents the holders of not less than an aggregate of one-third of all of our issued voting share capital. We
hold annual general meetings of shareholders at such times and places as the board of directors may determine. In addition, the board
of directors may convene a general meeting of shareholders at any time upon seven calendar days’ notice. Further, general meetings
(other than the annual general meeting) may also be convened upon written requisition of shareholders holding not less than one-third
of issued voting share capital, which requisition must state the object for the general meeting.

 

Approval.
Subject to the quorum requirements referred to in the paragraph above, except in respect of matters relating to the election
of directors and as otherwise provided in our articles of association or required by law, any ordinary resolution to be made by the shareholders
requires the affirmative vote of a simple majority of the votes attaching to the ordinary shares cast in a general meeting, while a special
resolution requires the affirmative vote of 66 2/3% of the votes cast attaching to the ordinary shares. A special resolution is required
for matters such as a change of name, amending our memorandum and articles of association and placing us into voluntary liquidation.

 

Dividends.
The holders of our ordinary shares are entitled to receive such dividends as may be declared by our board of directors. Dividends
may be paid only out of profits, which include net earnings and retained earnings undistributed in prior years, and out of share premium,
a concept analogous to paid-in surplus in the United States, subject to a statutory solvency test.

 

Liquidation.
If we are to be liquidated, the liquidator may, with the approval of the shareholders, divide among the shareholders in cash
or in kind the whole or any part of our assets, may determine how such division shall be carried out as between the shareholders or different
classes of shareholders, and may vest the whole or any part of such assets in trustees upon such trusts for the benefit of the shareholders
as the liquidator, with the approval of the shareholders, sees fit, provided that a shareholder shall not be compelled to accept any shares
or other assets which would subject the shareholder to liability.

 

Miscellaneous.
Share certificates registered in the names of two or more persons are deliverable to any one of them named in the share register,
and if two or more such persons tender a vote, the vote of the person whose name first appears in the share register will be accepted
to the exclusion of any other.

 

Publicly Trading Warrants

 

On January 27, 2022, the
Company issued warrants to purchase ordinary shares in connection with its initial public offering. There are 2,875,000 warrants outstanding
as of the date hereof.

 

     

     

    

 

Exercisability. The
warrants were immediately exercisable at any time following the consummation of our initial public offering and at any time up to
the date that is five years after their original issuance. The warrants will be exercisable, at the option of each holder, in whole
or in part by delivering to us a duly executed exercise notice and, at any time a registration statement registering the issuance of
the ordinary shares underlying the warrants under the Securities Act is effective and available for the issuance of such ordinary
shares, or an exemption from registration under the Securities Act is available for the issuance of such ordinary shares, by payment
in full in immediately available funds for the number of ordinary shares purchased upon such exercise. If a registration statement
registering the issuance of the ordinary shares underlying the warrants under the Securities Act is not effective or available and
an exemption from registration under the Securities Act is not available for the issuance of such ordinary shares, the holder may,
in its sole discretion, elect to exercise the warrant through a cashless exercise, in which case the holder would receive upon such
exercise the net number of ordinary shares determined according to the formula set forth in the warrant. No fractional ordinary
shares of common stock will be issued in connection with the exercise of a warrant. In lieu of fractional shares, we will pay the
holder an amount in cash equal to the fractional amount multiplied by the exercise price.

 

We will not effect the exercise
of any portion of these warrants, and the holder will not have the right to exercise any portion of the warrants, and any such exercise
shall be null and void and treated as if never made, to the extent that after giving effect to such exercise, the holder together with
its affiliates and certain other persons specified in these warrants collectively would own beneficially in excess of 4.99% (or, upon
election by a holder prior to the issuance of any warrants, 9.99%) of the ordinary shares outstanding immediately after giving effect
to such exercise.

 

Exercise
Price. The exercise price per ordinary share purchasable upon exercise of the warrants is $6.00 per share. The exercise
price is subject to appropriate adjustment in the event of certain stock dividends and distributions, stock splits, stock
combinations, reclassifications or similar events affecting our ordinary shares and also upon any distributions of assets, including
cash, stock or other property to our shareholders.

 

Transferability.
Subject to applicable laws, the warrants may be offered for sale, sold, transferred or assigned without our consent.

 

Exchange
Listing. Our warrants are listed on The Nasdaq Capital Market under the symbol “FGIWW.”

 

Warrant
Agent. The warrants will be issued in registered form under a warrant agent agreement between Continental Stock Trading &
Trust Company, as warrant agent, and us. The warrants shall be represented only by one or more global warrants deposited with the warrant
agent, as custodian on behalf of The Depository Trust Company (“DTC”) and registered in the name of Cede & Co., a
nominee of DTC, or as otherwise directed by DTC.

 

Fundamental
Transactions. In the event of a fundamental transaction, as described in the warrants and generally including any reorganization,
recapitalization or reclassification of our ordinary shares, the sale, transfer or other disposition of all or substantially all of our
properties or assets, our consolidation or merger with or into another person, the acquisition of more than 50% of our outstanding ordinary
shares, or any person or group becoming the beneficial owner of 50% of the voting power represented by our ordinary shares, the holders
of the warrants will be entitled to receive upon exercise of the warrants the kind and amount of securities, cash or other property that
the holders would have received had they exercised the warrants immediately prior to such fundamental transaction.

 

Rights
as a Stockholder. Except as otherwise provided in the warrants or by virtue of such holder’s ownership of our ordinary
shares, the holder of a warrant does not have the rights or privileges of a holder of our ordinary shares, including any voting rights,
until the holder exercises the warrant.

 

Governing
Law. The warrants and the warrant agent agreement are governed by New York law.Exhibit 10.2

 

SHARED SERVICES AGREEMENT

January 14, 2022

 

This SHARED SERVICES AGREEMENT
(the “Agreement”) effective as of the date first written above (the “Effective Date”), is by and
between FGI Industries, Inc. (“Service Provider”) and Foremost Home Industries, Inc. (“Service Recipient”).

 

BACKGROUND

 

WHEREAS, Service Recipient
desires to contract with Service Provider for the provision of the Services, subject to the terms and conditions of this Agreement.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual and dependent covenants hereinafter set forth, the parties agree as follows:

 

Effective Date AGREEMENT

 

	 	1.	Definitions. As used herein, the following terms shall have the following definitions:

 

“Headcount Ratio” shall mean the total
full-time and part-time employees of Service Recipient divided by the total full-time and part-time employees of Service Provider.

 

“Services” shall mean the service or services
set forth on Exhibit A attached hereto.

 

“Service Fee” shall
mean, except as identified on the attached Exhibit A, the Total Service Cost multiplied by the Headcount Ratio,payable by
the Service Recipient to Service Provider for the provision of the Services.

 

“Territory” shall
mean theUnited States of America.

 

“Total Service Cost”
shall mean the total financial expenses incurred by Service Provider for the provision of Services both to its own full-time and part-time
employees in addition to those of Service Recipient, as assessed by Service Provider on a fiscal quarterly basisin accordance with all
applicable U.S. GAAP accounting standards.

 

	 	2.	Description of the Services. Service Provider will provide to Service Recipient all of the Services set forth on Exhibit A (as such exhibit may be amended or supplemented from time to time) as mutually agreed. Notwithstanding the contents of Exhibit A, Service Provider agrees to respond in good faith to any reasonable request by Service Recipient for access to any additional services that are necessary for the operation of the business of Service Recipient and which are not currently contemplated by Exhibit A, at a price to be agreed upon after good faith negotiations between the parties. Any additional services provided shall be subject to the terms and conditions of this Agreement. Service Provider shall have the right to utilize affiliated or third-party subcontractors to provide all or part of any Service hereunder.

 

	 	3.	Obligations of Service Provider; Disclaimer. Service Provider will provide qualified personnel who are experienced in rendering the Services and maintain adequate staffing levels to provide Service Recipient with the continual prompt delivery of the Services. Service Provider will carry out the Services in a professional, competent and timely manner. Service Recipient acknowledges and agrees that this Agreement does not create a fiduciary relationship, partnership, joint venture or relationships of trust or agency between the parties and that all Services are provided by Service Provider as an independent contractor. For such time as any employees or independent contractors of Service Provider are providing the Services to Service Recipient under this Agreement, (a) such employees will remain employees of Service Provider and shall not be deemed to be employees or independent contractors of Service Recipient for any purpose, and (b) Service Provider shall be solely responsible for the payment and provision of all wages, fees, bonuses and commissions, employee benefits, including severance and worker's compensation, and the withholding and payment of applicable taxes relating to such employment or provision of contractor services.

 

	 	4.	Obligations of Service Recipient; Access. Service Recipient shall provide Service Provider with access to its facilities, books, records and related documents and instructions required by Service Provider to perform the Services. Service Recipient shall pay the Service Fee to Service Provider in accordance with the terms of the Agreement. Service Provider agrees that all of its employees and subcontractors, when on the property of Service Recipient or when given access to any equipment, computer, software, network or files owned or controlled by Service Recipient, shall conform to the policies and procedures of Service Recipient concerning health, safety confidentiality and security which are made known to Service Provider in advance in writing.

 

	 	5.	Ownership of Intangible Property. As between the parties, all right, title, and interest in the intangibles used in the provision of the Services shall at all times remain the sole and exclusive property of Service Provider.

 

	 	6.	Term and Termination of Agreement.

 

	 	(a)	This Agreement shall have an initial term of one year from the Effective Date and shall be renewed automatically thereafter for successive one-year periods, unless either party elects not to renew this Agreement upon not less than 60 days written notice prior to the end of any such term or otherwise terminates this Agreement pursuant to Section 6(b) of this Agreement.

 

	 	(b)	Either party may terminate any Service or terminate this Agreement in its entirety at any time for any reason by sending written notice to the other party at least 120 days in advance of the intended date of termination.

 

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	 	7.	Payment Terms.

 

	 	(a)	Service Fee: As consideration for provision of the Services, Service Recipient shall pay to Service Provider the Service Fee for each Service as specified on the attached Exhibit A. In addition to such amount, in the event that Service Provider incurs reasonable and documented out-of-pocket expenses in the provision of any Service on behalf of Service Recipient, excluding payments made to employees, independent contractors, officers or directors of Service Provider, Service Recipient shall reimburse Service Provider for all such out-of-pocket expenses. Service Fees include but are not limited to: direct labor costs such as salaries and benefits; indirect overhead such as indirect labor, facilities, depreciation, travel, and other costs incurred in regard to the provision of the Services, as mutually agreed by the parties. Service Fees shall exclude income taxes, interest expense and other related financing charges, government subsidies and other similar amounts. Any costs for which Service Provider seeks reimbursement are subject to production of appropriate receipts by Service Provider and/or verification by Service Recipient.

 

	 	(b)	Timing of payments: Service Provider will invoice Service Recipient the actual Service Fee up to 30 days after the end of each fiscal quarter. Payment is due 60 days after the invoice date.

 

	 	(c)	Provider’s records: Service Provider is committed to keeping good records of services or work performed relating to the Services, as well as cost and expenses incurred, and will provide them to Service Recipient upon request.

 

	 	(d)	Price adjustment clause:

 

If any taxing authority that has jurisdiction
makes or proposes to make any assessment or reassessment to one of the parties to the Agreement with respect to income tax or any other
tax based on the fact that the intercompany service charge is greater or less than an arm’s length charge, then the intercompany
service charge should be augmented retroactively, in respect of the period assessed.

 

If the Services performed by Service
Provider change significantly in the future, Service Provider and Service Recipient may agree to adjust the Services Fee.

 

	 	(e)	Taxes: Service Recipient shall be responsible for all sales or use taxes imposed or assessed as a result of the provision of Services by Service Provider.

 

	 	(f)	Right of Offset: Service Provider shall have the right to offset any amounts owed (or to become due and owing) to Service Provider by Service Recipient under this Agreement, against any amounts owed (or to become due and owing) by Service Provider to the Service Recipient, whether under this Agreement or otherwise.

 

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	 	8.	Miscellaneous.

 

	 	(a)	Accounting. The budgeted intercompany service charge allocated to Service Recipient based on the pricing set forth on Exhibit A attached hereto will be recorded in the internal books and records of Service Provider and Service Recipient on a monthly basis. The budgeted intercompany service charge will be adjusted to actual within 30 days of each calendar year end.

 

	 	(b)	Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the laws of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of Delaware. Any action or dispute arising out of, based upon or related to this Agreement may only be instituted in the federal courts of the United States of America located in the State of Delaware or, if such courts lack jurisdiction, in the courts of the State of Delaware located in the City of Wilmington and County of New Castle, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such action or dispute. Service of process, summons, notice or other document by mail to such party’s address set forth herein shall be effective service of process for any action or dispute brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any action or dispute in such courts and irrevocably waive and agree not to plead or claim in any such court that any such action or dispute brought in any such court has been brought in an inconvenient forum. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION OR DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

	 	(c)	Confidentiality. Any information obtained by either party in the course of this Agreement is confidential and proprietary of the disclosing party and shall not be disclosed by the receiving party, except as required by law. No parties to this Agreement shall disclose the terms of this Agreement to any third party without the consent of the other parties, except as required by law or the rules and regulations of the U.S. Securities and Exchange Commission or any stock exchange or national market system upon which a party’s securities are listed. 

 

	 	(d)	Indemnities. Service Recipient shall defend, indemnify and hold Service Provider harmless from and against any damages, liabilities, costs and expenses arising out of the Services provided by Service Provider.

 

	 	(e)	Assignability. No party shall assign this Agreement without the prior written consent of the other party.

 

	 	(f)	Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall use their best efforts to find and employ alternative means to achieve the same or substantially the same result as that contemplated by such term or other provision.

 

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	 	(g)	Notice. All notices, reports, invoices and other communications between the parties shall be in writing and sent to the respective parties at the address indicated by each such party to the other parties to this Agreement.

 

	 	(h)	Amendment. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto.

 

	 	(i)	Counterparts. This Agreement may be executed by electronic signature and in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement.

 

	 	(j)	No Third-Party Beneficiaries. The parties agree that the provisions of this Agreement are intended exclusively for the benefit of Service Provider and Service Recipient. Nothing in this Agreement shall be construed as giving any other person or entity any right, remedy or claim under or in respect of this Agreement or any provision hereof.

 

[Remainder of page intentionally left blank;
signature page follows.]

 

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IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the Effective Date.

 

	 	FOREMOST HOME INDUSTRIES, INC.  
	 	 
	 	/s/ Keh-Jean “Jay” Yeh
	 	Name: Keh-Jean “Jay” Yeh
	 	Title:   CEO
	 	 
	 	 
	 	FGI INDUSTRIES, INC.  
	 	 
	 	/s/ David Bruce
	 	Name: David Bruce
	 	Title:   CEO

 

[Signature Page to Shared Services Agreement]

 

     

     

    

 

EXHIBIT A

 

SERVICES

 

	 	 	Description of Service	 	Service Fees	 	Location
	1. 	 	Warehouse Space Services	 	Fixed annual fee of $500,000.00 plus a variable fee of 4% of gross product sales for products stored by Service Recipient in the U.S. Warehouse Space.	 	Warehouse located at 906 Murray Road, East Hanover, N.J. 07936
	 	 	 	 	 	 	 
	2. 	 	IT System Services	 	See Section 1, Definitions.	 	All applicable locations where Service Recipient full-time and part-time employees are located.
	 	 	 	 	 	 	 
	3. 	 	HR Services (including, but not limited to the provision of payroll, retirement benefits and insurance administration services)	 	See Section 1, Definitions.	 	All applicable locations where Service Recipient full-time and part-time employees are located.
	 	 	 	 	 	 	 
	4. 	 	Office Administration Services (including, but not limited to, the provision of space, utilities, and general administrative services)	 	See Section 1, Definitions.	 	Office located at 906 Murray Road, East Hanover, N.J. 07936
	 	 	 	 	 	 	 
	5. 	 	Supply Chain Services (including, but not limited to, the provision of inventory management and order processing services)	 	See Section 1, Definitions.	 	All applicable locations where Service Recipient full-time and part-time employees are located.

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