Company: FSHPU
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001829126-25-003624
Chunk: 78

Company: Flag Ship Acquisition Corp
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 Rule 415 under the Securities Act. We will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The underwriters are to a cash underwriting discount of 2.0% of the gross proceeds of the initial public offering, or $1,380,000, upon the closing of the initial business combination. In addition, the underwriters are entitled to a deferred underwriting fee of 2.5% of the gross proceeds of the IPO, or $1,725,000, which will be paid upon the closing of a Business Combination from the amounts held in the Trust Account, subject to the terms of the underwriting agreement.

Administrative Services Agreement

We entered into an agreement with our sponsor, pursuant to which we agreed to pay our sponsor a total of $10,000 per month for secretarial and administrative support services provided to us through the earlier of consummation of the initial business combination and our liquidation.

In addition, our sponsor, officers and directors,
or any of their respective affiliates, will be reimbursed for any out-of-pocket expenses incurred in connection with activities on our
behalf such as identifying potential target businesses and performing due diligence on suitable business combinations. There is no cap
or ceiling on the reimbursement of out-of-pocket expenses incurred by such persons in connection with activities on our behalf.

2024 Note

On August 30, 2024, the Company issued the
2024 Note to the Sponsor, pursuant to which the Company may borrow up to an aggregate principal amount of $1,000,000. The 2024 Note bears
no interest and is repayable in full upon the earlier of consummation of the initial business combination of the Company or December 31,
2025. The issuance of the 2024 Note was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities
Act of 1933, as amended.

Extension Payments

Pursuant to the terms of our memorandum and articles of association
and the trust agreement entered into between us and Wilmington Trust, National Association and Vstock Transfer LLC in connection with
our IPO, in order for the time available for us to consummate our initial business combination to be extended, our sponsor or its affiliates
or designees, upon five days advance notice prior to the applicable deadline, must deposit into the trust account $230,000 ($0.033 per
public share) on or prior to the date of the applicable deadline.

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