Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 411

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 3
Chunk 411
---
 any Capital Raise of at least $15.0 million by the Company shall be first used by the Company to promptly repay the Second SPAC Loan
and then Sponsor shall promptly repay the Second Sponsor Loan and all accrued interest; (vi) in exchange for the extension of the Maturity
Date, the Company shall issue 50,000 shares of common stock to Second Extension Lender on the date of the Modification Agreement and
shall issue an additional 50,000 shares of common stock thereafter on each 30-day anniversary of the Maturity Date to the Second Extension
Lender until the Second Sponsor Loan is repaid in full; (vii) in the event Sponsor defaults on its obligations to repay the Second Sponsor
Loan by the Maturity Date, the Sponsor shall transfer to the Second Extension Lender 250,000 shares of Company common stock owned by
the Sponsor and shall transfer an additional 250,000 such shares each month thereafter until the default is cured; (viii) the Company
is obligated to file a registration statement with the SEC registering the shares to be issued to Second Extension Lender within 30 days
of the transfer, including the Initial SPAC Shares; and (ix) in the event that the Company defaults on its obligations to the Second
Extension Lender set forth in (v), (vi) and (viii), the Company shall issue to Second Extension Lender 250,000 shares of common stock
and shall transfer an additional 250,000 shares of common stock each month thereafter until the default is cured. The Side Letter provides
that, in the event the Company fails to repay the Second SPAC Loan by May 19, 2023, the Company shall issue to Sponsor 250,000 shares
of common stock and shall issue an additional 250,000 such shares to Sponsor each month thereafter until the default is cured. All capitalized
terms used in the foregoing descriptions of the Modification Agreement or Side Letter, and not otherwise defined herein, have the meanings
ascribed to such terms in the Modification Agreement or Side Letter.

On
December 14, 2022, we entered into a Loan and Transfer Agreement with the Sponsor and Michael L. Peterson (“Mr. Peterson”),
pursuant to which Mr. Peterson loaned $50,000 to the Sponsor (the “Third Sponsor Loan”) and the Sponsor loaned $50,000 to
us (the “Third SPAC Loan”). Amounts loaned from Mr. Peterson to the Sponsor accrue interest