Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 4002

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 16
Chunk 4002
---
 it may elect to pursue and intends to assert its rights
should this matter not be resolved. After a review of all applicable documents related to the Backstop Agreement, the Company believes
its position with respect to the terms of the Backstop Agreement and intent of the parties is supported by the Backstop Agreement and
facts and circumstances under which it was entered into. Further, given the early stage of this matter and the uncertainty inherent in
litigation and investigations, the Company does not currently believe it is (i) probable to incur losses or (ii) possible to develop
estimates of reasonably possible losses (or a range of possible losses) for this matter.

    F-17

On
October 2, 2023, the Company entered into a Side Letter Agreement (the “Side Letter”) with Polar. The Side Letter amended
certain terms of the Polar Agreement. The Side Letter amended the definitions of “Seller VWAP Trigger Event” and “Reset
Price” as used in the Backstop Agreement as it relates to Polar and the Polar Agreement. Per the amended definitions, the (i) “Seller
VWAP Trigger Event” is an event that occurs if the VWAP price is below $2.50 per share for any 20 trading days during a 30 consecutive
trading day-period thereafter and (ii) the “Reset Price” is defined as $8.00. The Side Letter did not amend any terms of
the Backstop Agreement as it relates to the other Backstop Parties.

The
“Seller VWAP Trigger Event” for Polar occurred in October 2023 and the other Backstop Parties in November 2023. The Company
received written notice from Polar on November 6, 2023 acknowledging its right to designate any date as the Maturity Date from the date
of the notice to, and including, the third anniversary of the Business Combination. As of the date of this filing, two of the Backstop
Parties, Polar and Meteora, had not designated a Maturity Date. Refer to above in this footnote for further detail around the purported
Maturity Date for Vellar.

Common
Stock Purchase Agreement

The
Company is subject to the terms and conditions of (i) a common stock purchase agreement, dated September 7, 2022, and as amended on October
4, 2023 (the “Common Stock Purchase Agreement”) and (ii) a registration rights agreement, dated September 7, 2022 (the “