Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 383

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 3
Chunk 383
---
 per annum and (y) the sum of (A) the “secured overnight financing rate,” which from time
to time is published in the “Money Rates” column of The Wall Street Journal (Eastern Edition, New York Metro), in effect
as of such date of determination and (B) two percent (2%) per annum; provided, further, that each of the forgoing rates shall be subject
to adjustment from time to time in accordance with the SPA. Each Note will mature on the first anniversary of its issuance (the “Maturity
Date”). Additionally, each Note is required to be senior to all of our other indebtedness, other than certain permitted indebtedness.
The Notes will be secured by all of our existing and future assets (including those of our significant subsidiaries). Upon the occurrence
of certain events, the Notes will be payable in monthly installments. A noteholder may, at its election, defer the payment of all or
any portion of the installment amount due on any installment date to another installment payment date.

All
or any portion of the principal amount of each Note, plus accrued and unpaid interest, any late charges thereon and any other unpaid
amounts (the “Conversion Amount”), is convertible at any time, in whole or in part, at the noteholder’s option, into
shares of our common stock at an initial fixed conversion price of $10.34 per share, subject to certain adjustments. At any time during
certain events of default under the Note, a noteholder may alternatively (the “Alternate Conversion”) elect to convert all
or any portion of the Conversion Amount into shares of our Common Stock at an Alternate Conversion Price set forth in the SPA. A noteholder
will not have the right to convert any portion of a Note, to the extent that, after giving effect to such conversion, the noteholder
(together with certain of its affiliates and other related parties) would beneficially own in excess of 9.99% of the shares of our Common
Stock outstanding immediately after giving effect to such conversion.

Upon
a change of control of the Company (the “Change of Control”), noteholders may require us to redeem all, or any portion, of
the Notes at a price equal to the greater of: (i) the product of (w) 115% multiplied by (y) the Conversion Amount being redeemed, (ii)
the product of (x) 115% multiplied by (y) the product of (