Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 20

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1B
Chunk 20
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 each calendar
quarter after the date the shares become terminated shares, an amount equal to the number of Terminated Shares multiplied by a price
(the “Reset Price”) that adjusts on the first scheduled trading day of each month to be the lowest of (a) the then-current
Reset Price, (b) the per share redemption price of $10.56 and (c) the VWAP for the last ten trading days of the prior month, but in no
case less than $10.34.

142

Under
the Backstop Agreement, we have agreed to purchase the Recycled Shares and Additional Shares (together, the “Backstop Shares”)
from the Backstop Parties on a forward basis upon the maturity of the Backstop Agreement at a per share purchase price equal to the redemption
price, which has been funded by the Prepayment. The Backstop Agreement matures on the earlier to occur of (a) February 14, 2026 (three
years after the closing of the Business Combination Agreement), (b) the date specified by a Backstop Party in a written notice delivered
at a Backstop Party’s discretion if either (i) the volume weighted average price (“VWAP”) of the shares during 30 out
of 45 consecutive trading days is less than $4.00 per share, (ii) we fail to register the Backstop Shares as required by the Backstop
Agreement, or (iii) the shares cease to be listed on a national securities exchange, and (c) the date specified by us in a written notice
delivered at our discretion if (i) the VWAP of the shares is at or above $20.00 per share for any 30 trading days during a 45 consecutive
trading day-period, (ii) the Backstop Shares are freely tradable by the Backstop Parties without restriction and (iii) the aggregate
trading volume in respect of such shares during the same 30-day period is equal to at least three times the number of Backstop Shares
(less any Terminated Shares).

On
May 23, 2023 the Company received an Equity Prepaid Forward Transaction - Valuation Date Notice (“Notice”) from Vellar stating
that due to the Company’s alleged failure to timely register the shares held by Vellar, Vellar had the right to terminate the Backstop
Agreement as to their portion of the shares and Vellar claimed that it is entitled to receive Maturity Consideration (as defined in the