Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1407

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 9C
Chunk 1407
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 So long as any Notes remain outstanding, the Company and each of its subsidiaries are prohibited from
effecting or entering into an agreement to effect any subsequent placement involving a Variable Rate Transaction, as defined within the
SPA, other than pursuant to the White Lion Common Stock Purchase Agreement.

The
interest rate applicable to each Note is, as of any date of determination, the lesser of (i) 8% per annum and (ii) the greater of (x)
5% 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)
2% per annum. Each Note will mature on the first anniversary of its issuance.

    F-23

All
or any portion of the principal amount of each Note, plus accrued and unpaid interest is convertible at any time, in whole or in part,
at the noteholder’s option, into shares of the Company’s common stock at an initial fixed conversion price of $10.34 per
share, subject to certain adjustments and alternative conditions. 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 the Company’s common stock outstanding immediately after giving
effect to such conversion. Upon a change of control of the Company, noteholders may require the Company to redeem all, or any portion,
of the Notes at a price stipulated by certain conditions as discussed within the SPA. At December 31, 2023, the principal amount outstanding
under the 2023 Convertible Note was $7.6 million.

The
Notes provide for certain events of default, including, among other things, any breach of the covenants described in the SPA and any
failure of Dr. Chirinjeev Kathuria to be the chairman of the Company’s Board of Directors. In connection with an event of default,
the noteholders may require the Company to redeem all or any portion of the Notes, at a premium set forth in the SPA.

The
Company is subject to certain customary affirmative and negative covenants regarding the rank of the Notes, the incurrence of indebtedness,
the