Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 87

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 87
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 filed on January 13, 2025.

    24

Stock Options

2022 Stock Option and Incentive Plan

The Company’s Board of
Directors (“the Board”) approved and adopted the 2022 Stock Option and Incentive Plan and Form of Non-Qualified Stock Option
Agreement for Non-Employee Directors (the “Incentive Plan”) prior to the Closing of the Business Combination.

The maximum number of shares
of common stock that may be initially issued or transferred pursuant to awards under the Incentive Plan equals 4,360,000 shares (the “Share
Limit”). The Share Limit will automatically increase on the first trading day in January of each calendar year during the term of
the Incentive Plan, with the first such increase to occur in January 2024, by an amount equal to the lesser of (i) three percent (3%)
of the total number of shares of common stock issued and outstanding on December 31 of the immediately preceding calendar year or (ii)
such number of shares of common stock as may be established by the Board.

The Incentive Plan authorizes
stock options, stock appreciation rights, and other forms of awards granted or denominated in the Company’s common stock or units
of the Company’s common stock, as well as cash bonus awards. The Incentive Plan retains flexibility to offer competitive incentives
and to tailor benefits to specific needs and circumstances. Any award may be structured to be paid or settled in cash. Any awards under
the Incentive Plan (including awards of stock options and stock appreciation rights) may be fully vested at grant or may be subject to
time- and/or performance-based vesting requirements.

The Incentive Plan does not limit
the authority of the Board or any committee to grant awards or authorize any other compensation, with or without reference to the Company’s
common stock, under any other plan or authority. The Board may amend or terminate the Incentive Plan at any time and in any manner. Stockholder
approval for an amendment will be required only to the extent then required by applicable law or deemed necessary or advisable by the
Board. Unless terminated earlier by the Board and subject to any extension that may be approved by stockholders, the authority to grant
new awards under the Incentive Plan will terminate on the tenth anniversary of its establishment.

Stock Options to Non-Employee Directors

Under the Non-employee Director
Compensation Policy, upon initial election or appointment to the Board