Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2751

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2751
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 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 at 8% per annum and amounts loaned
from the Sponsor to us do not accrue interest. We were only required to repay the Third SPAC Loan upon completion of the Business Combination.
The total amounts advanced by Mr. Peterson to the Sponsor in connection with the $50,000 loan (the “Funded Amounts”) were
required to be repaid, together with all accrued and unpaid interest thereon, within five days of the Closing of the Business Combination,
at the option of Mr. Peterson, in either (a) cash; or (b) shares of Class A common stock held by the Sponsor which were deemed to have
a value of $10 per share for such repayment right. As additional consideration for Mr. Peterson making the loan available to Sponsor,
Sponsor agreed to transfer 1 share of Class B common stock to Mr. Peterson for each $10 multiple of the Funded Amounts, which included
the registration rights previously provided by the Company to the Sponsor. Furthermore, the letter agreement with the Company’s
initial stockholders contains a provision pursuant to which the Sponsor agreed to waive its right to be repaid for such