Document:

Exhibit 10.7

 

INDEMNITY AGREEMENT

 

THIS INDEMNITY AGREEMENT (this
 “Agreement”) is made as of [ ], 2021, by and between OceanTech Acquisitions I Corp., a Delaware corporation
(the “Company”), and [ ] (“Indemnitee”).

 

RECITALS

 

WHEREAS, highly competent
persons have become more reluctant to serve publicly-held corporations as directors, officers or in other capacities unless they are provided
with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising
out of their service to and activities on behalf of such corporations;

 

WHEREAS, the Board
of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals,
the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company
and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice
among publicly traded corporations and other business enterprises, the Company believes that, given current market conditions and trends,
such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers
and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming
litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise
itself. The Amended and Restated Certificate of Incorporation (the “Charter”) and Bylaws of the Company require
indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant to applicable
provisions of the Delaware General Corporation Law, as amended (“DGCL”). The Charter, Bylaws and the DGCL expressly
provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered
into between the Company and members of the board of directors, officers and other persons with respect to indemnification, hold harmless,
exoneration, advancement and reimbursement rights;

 

WHEREAS, the uncertainties
relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons;

 

WHEREAS, the Board
has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company’s
stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

 

WHEREAS, it is reasonable,
prudent and necessary for the Company contractually to obligate itself to indemnify, hold harmless, exonerate and to advance expenses
on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company
free from undue concern that they will not be so protected against liabilities;

 

WHEREAS, this Agreement
is a supplement to and in furtherance of the Charter and Bylaws of the Company and any resolutions adopted pursuant thereto, and shall
not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;

 

    

     

    

 

WHEREAS, Indemnitee
may not be willing to serve as an officer or director, advisor or in another capacity without adequate protection, and the Company desires
Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf
of the Company on the condition that he be so indemnified; and

 

NOW, THEREFORE, in
consideration of the promises and the covenants contained herein and subject to the provisions of the letter agreement dated as of [  ],
2021 between the Company and the Indemnitee pursuant to the Underwriting Agreement between the Company and the Underwriters in connection
with the Company’s initial public offering, the Company and Indemnitee do hereby covenant and agree as follows:

 

TERMS AND CONDITIONS

 

1.            SERVICES
TO THE COMPANY. Indemnitee will serve or continue to serve as an officer, director, advisor,
key employee or in any other capacity of the Company, as applicable, for so long as Indemnitee is duly elected, appointed or retained
or until Indemnitee tenders his resignation.

 

2.            DEFINITIONS.
As used in this Agreement:

 

2.1.            References
to “agent” shall mean any person who is or was a director, officer or employee of the Company or a subsidiary
of the Company or other person authorized by the Company to act for the Company, to include such person serving in such capacity as a
director, officer, employee, advisor, fiduciary or other official of another corporation, partnership, limited liability company, joint
venture, trust or other enterprise at the request of, for the convenience of, or to represent the interests of the Company or a subsidiary
of the Company.

 

2.2.            The
terms “Beneficial Owner” and “Beneficial Ownership” shall have the meanings set forth
in Rule 13d-3 promulgated under the Exchange Act (as defined below) as in effect on the date hereof.

 

2.3.            A
 “Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of
any of the following events:

 

2.3.1.            Acquisition
of Stock by Third Party. Any Person (as defined below) is or becomes the Beneficial Owner, directly or indirectly, of securities of
the Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding securities
entitled to vote generally in the election of directors, unless (1) the change in the relative Beneficial Ownership of the Company’s
securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote
generally in the election of directors, or (2) such acquisition was approved in advance by the Continuing Directors (as defined below)
and such acquisition would not constitute a Change in Control under part 2.3.3 of this definition;

 

2.3.2.            Change
in Board of Directors. Individuals who, as of the date hereof, constitute the Board, and any new director whose election by the Board
or nomination for election by the Company’s stockholders was approved by a vote of at least two thirds of the directors then still
in office who were directors on the date hereof or whose election for nomination for election was previously so approved (collectively,
the “Continuing Directors”), cease for any reason to constitute at least a majority of the members of the Board;

 

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2.3.3.            Corporate
Transactions. The effective date of a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar
business combination, involving the Company and one or more businesses (a “Business Combination”), in each case,
unless, following such Business Combination: (1) all or substantially all of the individuals and entities who were the Beneficial
Owners of securities entitled to vote generally in the election of directors immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 51% of the combined voting power of the then outstanding securities of the Company entitled to
vote generally in the election of directors resulting from such Business Combination (including, without limitation, a corporation which
as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through
one or more Subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination, of
the securities entitled to vote generally in the election of directors; (2) no Person (excluding any corporation resulting from such
Business Combination) is the Beneficial Owner, directly or indirectly, of 15% or more of the combined voting power of the then outstanding
securities entitled to vote generally in the election of directors of the surviving corporation except to the extent that such ownership
existed prior to the Business Combination; and (3) at least a majority of the Board of Directors of the corporation resulting from
such Business Combination were Continuing Directors at the time of the execution of the initial agreement, or of the action of the Board
of Directors, providing for such Business Combination.

 

2.3.4.            Liquidation.
The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement or series of agreements for the
sale or disposition by the Company of all or substantially all of the Company’s assets, other than factoring the Company’s
current receivables or escrows due (or, if such approval is not required, the decision by the Board to proceed with such a liquidation,
sale, or disposition in one transaction or a series of related transactions); or

 

2.3.5.            Other
Events. There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A
of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined
below), whether or not the Company is then subject to such reporting requirement.

 

2.4.            “Corporate
Status” describes the status of a person who is or was a director, officer, trustee, general partner, managing member, fiduciary,
employee or agent of the Company or of any other Enterprise (as defined below) which such person is or was serving at the request of the
Company.

 

2.5.            “Disinterested
Director” shall mean a director of the Company who is not and was not a party to the Proceeding (as defined below) in respect
of which indemnification is sought by Indemnitee.

 

2.6.            “Enterprise”
shall mean the Company and any other corporation, constituent corporation (including any constituent of a constituent) absorbed in a consolidation
or merger to which the Company (or any of its wholly owned subsidiaries) is a party, limited liability company, partnership, joint venture,
trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer,
trustee, general partner, managing member, fiduciary, employee or agent.

 

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2.7.            “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

2.8.            “Expenses”
shall include all direct and indirect costs, fees and expenses of any type or nature whatsoever, including, without limitation, all attorneys’
fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, fees of private investigators
and professional advisors, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, fax transmission
charges, secretarial services and all other disbursements, obligations or expenses in connection with prosecuting, defending, preparing
to prosecute or defend, investigating, being or preparing to be a witness in, settlement or appeal of, or otherwise participating in,
a Proceeding (as defined below), including reasonable compensation for time spent by the Indemnitee for which he or she is not otherwise
compensated by the Company or any third party. Expenses also shall include Expenses incurred in connection with any appeal resulting from
any Proceeding (as defined below), including without limitation the principal, premium, security for, and other costs relating to any
cost bond, supersedeas bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by
Indemnitee or the amount of judgments or fines against Indemnitee.

 

2.9.            “Independent
Counsel” shall mean a law firm or a member of a law firm with significant experience in matters of corporation law and neither
presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to
either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar
indemnification agreements); or (ii) any other party to the Proceeding (as defined below) giving rise to a claim for indemnification
hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable
standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee
in an action to determine Indemnitee’s rights under this Agreement.

 

2.10.          References
to “fines” shall include any excise tax assessed on Indemnitee with respect to any employee benefit plan; references
to “serving at the request of the Company” shall include any service as a director, officer, employee, agent or fiduciary
of the Company which imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary with respect to
an employee benefit plan, its participants or beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee reasonably
believed to be in the best interests of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed
to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

2.11.            “Delaware
Court” shall mean the Court of Chancery of the State of Delaware.

 

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2.12.            The
term “Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act
as in effect on the date hereof; provided, however, that “Person” shall exclude: (i) the Company; (ii) any Subsidiaries
(as defined below) of the Company; (iii) any employment benefit plan of the Company or of a Subsidiary (as defined below) of the
Company or of any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions
as their ownership of stock of the Company; and (iv) any trustee or other fiduciary holding securities under an employee benefit
plan of the Company or of a Subsidiary (as defined below) of the Company or of a corporation owned directly or indirectly by the stockholders
of the Company in substantially the same proportions as their ownership of stock of the Company.

 

2.13.            The
term “Proceeding” shall include any threatened, pending or completed action, suit, arbitration, mediation, alternate
dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding,
whether brought in the right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims),
criminal, administrative, or investigative or related nature, in which Indemnitee was, is, will or might be involved as a party or otherwise
by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any action (or failure to act) taken
by him or of any action (or failure to act) on his part while acting as a director or officer of the Company, or by reason of the fact
that he is or was serving at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary,
employee or agent of any other Enterprise, in each case whether or not serving in such capacity at the time any liability or expense is
incurred for which indemnification, reimbursement, or advancement of expenses can be provided under this Agreement.

 

2.14.            The
term “Subsidiary,” with respect to any Person, shall mean any corporation or other entity of which a majority
of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by that Person.

 

3.            INDEMNITY
IN THIRD-PARTY PROCEEDINGS. To the fullest extent permitted by applicable law, the Company shall
indemnify, hold harmless and exonerate Indemnitee in accordance with the provisions of this Section 3 if Indemnitee
was, is, or is threatened to be made, a party to or a participant (as a witness or otherwise) in any Proceeding, other than a Proceeding
by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall
be indemnified, held harmless and exonerated against all Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement
(including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines,
penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding
or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the Company and, in the case of a criminal Proceeding, had no reasonable cause to believe that his conduct was
unlawful.

 

4.            INDEMNITY
IN PROCEEDINGS BY OR IN THE RIGHT OF THE COMPANY. To the fullest extent permitted by applicable
law, the Company shall indemnify, hold harmless and exonerate Indemnitee in accordance with the provisions of this Section 4 if
Indemnitee was, is, or is threatened to be made, a party to or a participant (as a witness or otherwise) in any Proceeding by or in the
right of the Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified,
held harmless and exonerated against all Expenses actually and reasonably incurred by him or on his behalf in connection with such Proceeding
or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the Company. No indemnification, hold harmless or exoneration for Expenses shall be made under this Section 4 in
respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company,
unless and only to the extent that any court in which the Proceeding was brought or the Delaware Court shall determine upon application
that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably
entitled to indemnification, to be held harmless or to exoneration.

 

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5.            INDEMNIFICATION
FOR EXPENSES OF A PARTY WHO IS WHOLLY OR PARTLY SUCCESSFUL. Notwithstanding any other provisions
of this Agreement except for Section 27, to the extent that Indemnitee is a party to (or a participant in) and is successful,
on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall,
to the fullest extent permitted by applicable law, indemnify, hold harmless and exonerate Indemnitee against all Expenses actually and
reasonably incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the
merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall, to the fullest
extent permitted by applicable law, indemnify, hold harmless and exonerate Indemnitee against all Expenses actually and reasonably incurred
by him or on his behalf in connection with each successfully resolved claim, issue or matter. If the Indemnitee is not wholly successful
in such Proceeding, the Company also shall, to the fullest extent permitted by applicable law, indemnify, hold harmless and exonerate
Indemnitee against all Expenses reasonably incurred in connection with a claim, issue or matter related to any claim, issue, or matter
on which the Indemnitee was successful. For purposes of this Section 5 and without limitation, the termination of
any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as
to such claim, issue or matter.

 

6.            INDEMNIFICATION
FOR EXPENSES OF A WITNESS. Notwithstanding any other provision of this Agreement except for Section 27,
to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he
shall, to the fullest extent permitted by applicable law, be indemnified, held harmless and exonerated against all Expenses actually and
reasonably incurred by him or on his behalf in connection therewith.

 

7.            ADDITIONAL
INDEMNIFICATION, HOLD HARMLESS AND EXONERATION RIGHTS. Notwithstanding any limitation in Sections 3, 4,
or 5, except for Section 27, the Company shall, to the fullest extent permitted by applicable law, indemnify,
hold harmless and exonerate Indemnitee if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding
by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines, penalties and amounts paid
in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses,
judgments, fines, penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee in connection with the Proceeding.
No indemnification, hold harmless or exoneration rights shall be available under this Section 7 on account of Indemnitee’s
conduct which constitutes a breach of Indemnitee’s duty of loyalty to the Company or its stockholders or is an act or omission not
in good faith or which involves intentional misconduct or a knowing violation of the law.

 

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8.            CONTRIBUTION
IN THE EVENT OF JOINT LIABILITY.

 

8.1.            To
the fullest extent permissible under applicable law, if the indemnification, hold harmless and/or exoneration rights provided for in this
Agreement are unavailable to Indemnitee in whole or in part for any reason whatsoever, the Company, in lieu of indemnifying, holding harmless
or exonerating Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for judgments, liabilities,
fines, penalties, amounts paid or to be paid in settlement and/or for Expenses, in connection with any Proceeding without requiring Indemnitee
to contribute to such payment, and the Company hereby waives and relinquishes any right of contribution it may have at any time against
Indemnitee.

 

8.2.            The
Company shall not, without Indemnitee’s consent, enter into any settlement of any Proceeding in which the Company is jointly liable
with Indemnitee (or would be if joined in such Proceeding) unless such settlement provides for a full and final release of all claims
asserted against Indemnitee and no admission of guilt by, or injunctive relief against, Indemnitee, is included.

 

8.3.            The
Company hereby agrees to fully indemnify, hold harmless and exonerate Indemnitee from any claims for contribution which may be brought
by officers, directors or employees of the Company other than Indemnitee who may be jointly liable with Indemnitee.

 

9.            EXCLUSIONS.
Notwithstanding any provision in this Agreement except for Section 27, the Company shall not be obligated under this
Agreement to make any indemnification, hold harmless or exoneration payment in connection with any claim made against Indemnitee:

 

(a)            for
which payment has actually been received by or on behalf of Indemnitee under any insurance policy or other indemnity provision, except
with respect to any excess beyond the amount actually received under any insurance policy, contract, agreement, other indemnity provision
or otherwise;

 

(b)            for
an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the
meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law; or

 

(c)            except
as otherwise provided in Sections 14.5 and 14.6 hereof, prior to a Change in Control, in connection
with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding)
initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized
the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, hold harmless
or exoneration payment, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

 

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10.          ADVANCES
OF EXPENSES; DEFENSE OF CLAIM.

 

10.1.            Notwithstanding
any provision of this Agreement to the contrary except for Section 27, and to the fullest extent not prohibited by applicable
law, the Company shall pay the Expenses incurred by Indemnitee (or reasonably expected by Indemnitee to be incurred by Indemnitee within
three months) in connection with any Proceeding within ten (10) days after the receipt by the Company of a statement or statements
requesting such advances from time to time, prior to the final disposition of any Proceeding. Advances shall be unsecured and interest
free. Advances shall be made without regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s
ultimate entitlement to be indemnified, held harmless or exonerated under the other provisions of this Agreement. Advances shall include
any and all reasonable Expenses incurred pursuing a Proceeding to enforce this right of advancement, including Expenses incurred preparing
and forwarding statements to the Company to support the advances claimed. If required by applicable law or the Charter or the Bylaws of
the Company, such payments of Expenses in advance of the final disposition of the Proceeding shall be made only upon the Company’s
receipt of an undertaking, by or on behalf of the Indemnitee, to repay the advance to the extent that it is ultimately determined that
Indemnitee is not entitled to be indemnified by the Company under the provisions of this Agreement, the Charter, the Bylaws of the Company,
applicable law or otherwise. This Section 10.1 shall not apply to any claim made by Indemnitee for which an indemnification,
hold harmless or exoneration payment is excluded pursuant to Section 9.

 

10.2.            The
Company will be entitled to participate in the Proceeding at its own expense.

 

10.3.            The
Company shall not settle any action, claim or Proceeding (in whole or in part) which would impose any Expense, judgment, fine, penalty
or limitation on the Indemnitee without the Indemnitee’s prior written consent.

 

11.          PROCEDURE
FOR NOTIFICATION AND APPLICATION FOR INDEMNIFICATION.

 

11.1.            Indemnitee
agrees to notify promptly the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information
or other document relating to any Proceeding or matter which may be subject to indemnification, hold harmless or exoneration rights, or
advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation
which it may have to the Indemnitee under this Agreement, or otherwise.

 

11.2.            Indemnitee
may deliver to the Company a written application to indemnify, hold harmless or exonerate Indemnitee in accordance with this Agreement.
Such application(s) may be delivered from time to time and at such time(s) as Indemnitee deems appropriate in his or her sole
discretion. Following such a written application for indemnification by Indemnitee, the Indemnitee’s entitlement to indemnification
shall be determined according to Section 12.1 of this Agreement.

 

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12.          PROCEDURE
UPON APPLICATION FOR INDEMNIFICATION.

 

12.1.            A
determination, if required by applicable law, with respect to Indemnitee’s entitlement to indemnification shall be made in the specific
case by one of the following methods, which shall be at the election of Indemnitee: (i) by a majority vote of the Disinterested Directors,
even though less than a quorum of the Board; (ii) by Independent Counsel in a written opinion to the Board, a copy of which shall
be delivered to Indemnitee; or (iii) by vote of the stockholders. The Company promptly will advise Indemnitee in writing with respect
to any determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which
indemnification has been denied. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be
made within ten (10) days after such determination. Indemnitee shall reasonably cooperate with the person, persons or entity making
such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity
upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which
is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or Expenses (including attorneys’
fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be
borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby
indemnifies and agrees to hold Indemnitee harmless therefrom.

 

12.2.            In
the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12.1 hereof,
the Independent Counsel shall be selected as provided in this Section 12.2. The Independent Counsel shall be selected
by Indemnitee (unless Indemnitee shall request that such selection be made by the Board), and Indemnitee shall give written notice to
the Company advising it of the identity of the Independent Counsel so selected and certifying that the Independent Counsel so selected
meets the requirements of “Independent Counsel” as defined in Section 2 of this Agreement. If the Independent
Counsel is selected by the Board, the Company shall give written notice to Indemnitee advising him of the identity of the Independent
Counsel so selected and certifying that the Independent Counsel so selected meets the requirements of “Independent Counsel”
as defined in Section 2 of this Agreement. In either event, Indemnitee or the Company, as the case may be,
may, within ten (10) days after such written notice of selection shall have been received, deliver to the Company or to Indemnitee,
as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that
the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of
this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection,
the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel
so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court of competent jurisdiction has
determined that such objection is without merit. If, within twenty (20) days after submission by Indemnitee of a written request for indemnification
pursuant to Section 11.2 hereof, no Independent Counsel shall have been selected and not objected to, either the
Company or Indemnitee may petition the Delaware Court for resolution of any objection which shall have been made by the Company or Indemnitee
to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the Delaware
Court, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel
under Section 12.1 hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 14.1 of
this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the
applicable standards of professional conduct then prevailing).

 

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12.3.            The
Company agrees to pay the reasonable fees and expenses of Independent Counsel and to fully indemnify and hold harmless such Independent
Counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant
hereto.

 

13.          PRESUMPTIONS
AND EFFECT OF CERTAIN PROCEEDINGS.

 

13.1.            In
making a determination with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination
shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification
in accordance with Section 11.2 of this Agreement, and the Company shall have the burden of proof to overcome that
presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither
the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement
of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable
standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has
not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the
applicable standard of conduct.

 

13.2.            If
the person, persons or entity empowered or selected under Section 12 of this Agreement to determine whether Indemnitee
is entitled to indemnification shall not have made a determination within thirty (30) days after receipt by the Company of the request
therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled
to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary
to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a final
judicial determination that any or all such indemnification is expressly prohibited under applicable law; provided, however, that such
30-day period may be extended for a reasonable time, not to exceed an additional fifteen (15) days, if the person, persons or entity
making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining
or evaluating of documentation and/or information relating thereto.

 

13.3.            The
termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of
nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the
right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably
believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had
reasonable cause to believe that his conduct was unlawful.

 

13.4.            For
purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action
is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee
by the directors or officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise, its
Board, any committee of the Board or any director, or on information or records given or reports made to the Enterprise, its Board, any
committee of the Board or any director, by an independent certified public accountant or by an appraiser or other expert selected by the
Enterprise, its Board, any committee of the Board or any director. The provisions of this Section 13.4 shall not
be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed or found to have met the
applicable standard of conduct set forth in this Agreement.

 

    10

     

    

 

13.5.            The
knowledge and/or actions, or failure to act, of any other director, officer, trustee, partner, managing member, fiduciary, agent or employee
of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

 

14.          REMEDIES
OF INDEMNITEE.

 

14.1.            In
the event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not
entitled to indemnification under this Agreement, (ii) advancement of Expenses, to the fullest extent permitted by applicable law,
is not timely made pursuant to Section 10 of this Agreement, (iii) no determination of entitlement to indemnification
shall have been made pursuant to Section 12.1 of this Agreement within thirty (30) days after receipt by the
Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Sections 5, 6, 7 or
the last sentence of Section 12.1 of this Agreement within ten (10) days after receipt by the Company of a
written request therefor, (v) a contribution payment is not made in a timely manner pursuant to Section 8 of
this Agreement, (vi) payment of indemnification pursuant to Section 3 or 4 of this Agreement
is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, or (vii) payment
to Indemnitee pursuant to any hold harmless or exoneration rights under this Agreement or otherwise is not made within ten (10) days
after receipt by the Company of a written request therefor, Indemnitee shall be entitled to an adjudication by the Delaware Court
to such indemnification, hold harmless, exoneration, contribution or advancement rights. Alternatively, Indemnitee, at his option,
may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American
Arbitration Association. Except as set forth herein, the provisions of Delaware law (without regard to its conflict of laws rules) shall
apply to any such arbitration. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

14.2.            In
the event that a determination shall have been made pursuant to Section 12.1 of this Agreement that Indemnitee is
not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 14 shall
be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that
adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 14, Indemnitee
shall be presumed to be entitled to be indemnified, held harmless, exonerated to receive advances of Expenses under this Agreement and
the Company shall have the burden of proving Indemnitee is not entitled to be indemnified, held harmless, exonerated and to receive advances
of Expenses, as the case may be, and the Company may not refer to or introduce into evidence any determination pursuant to Section 12.1 of
this Agreement adverse to Indemnitee for any purpose. If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 14, Indemnitee
shall not be required to reimburse the Company for any advances pursuant to Section 10 until a final determination
is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed).

 

    11

     

    

 

14.3.            If
a determination shall have been made pursuant to Section 12.1 of this Agreement that Indemnitee is entitled to indemnification,
the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 14,
absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification
under applicable law.

 

14.4.            The
Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that
the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before
any such arbitrator that the Company is bound by all the provisions of this Agreement.

 

14.5.            The
Company shall indemnify and hold harmless Indemnitee to the fullest extent permitted by law against all Expenses and, if requested by
Indemnitee, shall (within ten (10) days after the Company’s receipt of such written request) pay to Indemnitee, to the fullest
extent permitted by applicable law, such Expenses which are incurred by Indemnitee in connection with any judicial proceeding or arbitration
brought by Indemnitee (i) to enforce his rights under, or to recover damages for breach of, this Agreement or any other indemnification,
hold harmless, exoneration, advancement or contribution agreement or provision of the Charter, or the Company’s Bylaws now or hereafter
in effect; or (ii) for recovery or advances under any insurance policy maintained by any person for the benefit of Indemnitee, regardless
of the outcome and whether Indemnitee ultimately is determined to be entitled to such indemnification, hold harmless or exoneration right,
advancement, contribution or insurance recovery, as the case may be (unless such judicial proceeding or arbitration was not brought by
Indemnitee in good faith).

 

14.6.            Interest
shall be paid by the Company to Indemnitee at the legal rate under Delaware law for amounts which the Company indemnifies, holds harmless
or exonerates, or is obliged to indemnify, hold harmless or exonerate for the period commencing with the date on which Indemnitee requests
indemnification, to be held harmless, exonerated, contribution, reimbursement or advancement of any Expenses and ending with the date
on which such payment is made to Indemnitee by the Company.

 

15.            SECURITY.
Notwithstanding anything herein to the contrary except for Section 27, to the extent requested by the Indemnitee, the
Company may at any time and from time to time provide security to the Indemnitee for the Company’s obligations hereunder through
an irrevocable bank line of credit, funded trust or other collateral. Any such security, once provided to the Indemnitee, may not be revoked
or released without the prior written consent of the Indemnitee.

 

    12

     

    

 

16.          NON-EXCLUSIVITY;
SURVIVAL OF RIGHTS; INSURANCE; SUBROGATION.

 

16.1.            The
rights of Indemnitee as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time
be entitled under applicable law, the Charter, the Company’s Bylaws, any agreement, a vote of stockholders or a resolution of directors,
or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee
under this Agreement in respect of any Proceeding (regardless of when such Proceeding is first threatened, commenced or completed) arising
out of, or related to, any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.
To the extent that a change in applicable law, whether by statute or judicial decision, permits greater indemnification, hold harmless
or exoneration rights or advancement of Expenses than would be afforded currently under the Charter, the Company’s Bylaws or this
Agreement, then this Agreement (without any further action by the parties hereto) shall automatically be deemed to be amended to require
that the Company indemnify Indemnitee to the fullest extent permitted by law. No right or remedy herein conferred is intended to be exclusive
of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder,
or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

 

16.2.            The
DGCL, the Charter and the Company’s Bylaws permit the Company to purchase and maintain insurance or furnish similar protection or
make other arrangements including, but not limited to, providing a trust fund, letter of credit, or surety bond (“Indemnification
Arrangements”) on behalf of Indemnitee against any liability asserted against him or incurred by or on behalf of him or
in such capacity as a director, officer, employee or agent of the Company, or arising out of his status as such, whether or not the Company
would have the power to indemnify him against such liability under the provisions of this Agreement or under the DGCL, as it may then
be in effect. The purchase, establishment, and maintenance of any such Indemnification Arrangement shall not in any way limit or affect
the rights and obligations of the Company or of the Indemnitee under this Agreement except as expressly provided herein, and the execution
and delivery of this Agreement by the Company and the Indemnitee shall not in any way limit or affect the rights and obligations of the
Company or the other party or parties thereto under any such Indemnification Arrangement.

 

16.3.            To
the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, trustees,
partners, managing members, fiduciaries, employees, or agents of the Company or of any other Enterprise which such person serves at the
request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum
extent of the coverage available for any such director, officer, trustee, partner, managing member, fiduciary, employee or agent under
such policy or policies. If, at the time the Company receives notice from any source of a Proceeding as to which Indemnitee is a party
or a participant (as a witness or otherwise), the Company has director and officer liability insurance in effect, the Company shall give
prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall
thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a
result of such Proceeding in accordance with the terms of such policies.

 

    13

     

    

 

16.4.            In
the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery
of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such
documents as are necessary to enable the Company to bring suit to enforce such rights.

 

16.5.            The
Company’s obligation to indemnify, hold harmless, exonerate or advance Expenses hereunder to Indemnitee who is or was serving at
the request of the Company as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other Enterprise
shall be reduced by any amount Indemnitee has actually received as indemnification, hold harmless or exoneration payments or advancement
of expenses from such Enterprise. Notwithstanding any other provision of this Agreement to the contrary except for Section 27, (i) Indemnitee
shall have no obligation to reduce, offset, allocate, pursue or apportion any indemnification, hold harmless, exoneration, advancement,
contribution or insurance coverage among multiple parties possessing such duties to Indemnitee prior to the Company’s satisfaction
and performance of all its obligations under this Agreement, and (ii) the Company shall perform fully its obligations under this
Agreement without regard to whether Indemnitee holds, may pursue or has pursued any indemnification, advancement, hold harmless, exoneration,
contribution or insurance coverage rights against any person or entity other than the Company.

 

17.          DURATION
OF AGREEMENT. All agreements and obligations of the Company contained herein shall continue during
the period Indemnitee serves as a director or officer of the Company or as a director, officer, trustee, partner, managing member, fiduciary,
employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other Enterprise which Indemnitee
serves at the request of the Company and shall continue thereafter so long as Indemnitee shall be subject to any possible Proceeding (including
any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 14 of this Agreement)
by reason of his Corporate Status, whether or not he is acting in any such capacity at the time any liability or expense is incurred for
which indemnification can be provided under this Agreement.

 

18.          SEVERABILITY.
If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the
validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any
Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not
itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest
extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable
law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as
to give effect to the intent manifested thereby.

 

    14

     

    

 

19.          ENFORCEMENT
AND BINDING EFFECT.

 

19.1.            The
Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order
to induce Indemnitee to serve as a director, officer or key employee of the Company, and the Company acknowledges that Indemnitee is relying
upon this Agreement in serving as a director, officer or key employee of the Company.

 

19.2.            Without
limiting any of the rights of Indemnitee under the Charter or Bylaws of the Company as they may be amended from time to time, this Agreement
constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements
and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof.

 

19.3.            The
indemnification, hold harmless, exoneration and advancement of expenses rights provided by or granted pursuant to this Agreement shall
be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall
continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise at
the Company’s request, and shall inure to the benefit of Indemnitee and his or her spouse, assigns, heirs, devisees, executors and
administrators and other legal representatives.

 

19.4.            The
Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially
all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to the
Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be
required to perform if no such succession had taken place.

 

19.5.            The
Company and Indemnitee agree herein that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable
and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree
that Indemnitee may enforce this Agreement by seeking, among other things, injunctive relief and/or specific performance hereof, without
any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee
shall not be precluded from seeking or obtaining any other relief to which he may be entitled. The Company and Indemnitee further agree
that Indemnitee shall be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary
injunctions and permanent injunctions, without the necessity of posting bonds or other undertaking in connection therewith. The Company
acknowledges that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a Court of competent jurisdiction
and the Company hereby waives any such requirement of such a bond or undertaking.

 

20.          MODIFICATION
AND WAIVER. No supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver.

 

    15

     

    

 

21.          NOTICES.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly
given (i) if delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed,
or (ii) mailed by certified or registered mail with postage prepaid, on the third (3rd) business day after the date on which it is
so mailed:

 

(a)            If
to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide
in writing to the Company.

 

(b)            If
to the Company, to:

 

OceanTech Acquisitions I Corp.

515 Madison Avenue, Suite 8133

New York, New York 10022

Attn: Joseph Adir, Chief Executive Officer

 

With a copy, which shall not constitute notice, to:

 

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

666 Third Avenue

New York, NY 10017

Attn: Kenneth R. Koch

Fax No.: (212) 983-3115

 

or to any other address as may have been
furnished to Indemnitee in writing by the Company.

 

22.          APPLICABLE
LAW AND CONSENT TO JURISDICTION. This Agreement and the legal relations among the parties shall
be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws
rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 14.1 of this Agreement,
the Company and Indemnitee hereby irrevocably and unconditionally: (a) agree that any action or proceeding arising out of or in connection
with this Agreement shall be brought only in the Delaware Court and not in any other state or federal court in the United States of America
or any court in any other country; (b) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any
action or proceeding arising out of or in connection with this Agreement; (c) waive any objection to the laying of venue of any such
action or proceeding in the Delaware Court; and (d) waive, and agree not to plead or to make, any claim that any such action or proceeding
brought in the Delaware Court has been brought in an improper or inconvenient forum, or is subject (in whole or in part) to a jury trial.

 

23.          IDENTICAL
COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall
for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart
signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

 

24.          MISCELLANEOUS.
Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate. The headings of the paragraphs
of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction
thereof.

 

    16

     

    

 

25.          PERIOD
OF LIMITATIONS. No legal action shall be brought and no cause of action shall be asserted by
or in the right of the Company against Indemnitee, Indemnitee’s spouse, heirs, executors or personal or legal representatives
after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company shall
be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period; provided, however,
that if any shorter period of limitations is otherwise applicable to any such cause of action such shorter period shall govern.

 

26.          ADDITIONAL
ACTS. If for the validation of any of the provisions in this Agreement any act, resolution, approval
or other procedure is required, the Company undertakes to cause such act, resolution, approval or other procedure to be affected or adopted
in a manner that will enable the Company to fulfill its obligations under this Agreement.

 

27.          WAIVER
OF CLAIMS TO TRUST ACCOUNT. Indemnitee hereby agrees that it does not have any right, title,
interest or claim of any kind (each, a “Claim”) in or to any monies in the trust account established in connection with the
Company’s initial public offering for the benefit of the Company and holders of shares issued in such offering, and hereby waives
any Claim it may have in the future as a result of, or arising out of, any services provided to the Company and will not seek recourse
against such trust account for any reason whatsoever.

 

[SIGNATURE PAGE FOLLOWS]

 

    17

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Indemnity Agreement to be signed as of the day and year first above written.

 

	 	OCEANTECH ACQUISITIONS I CORP.
	 	 
	 	By:	 
	 	Name:	Joseph Adir
	 	Title:	Chief Executive Officer
	 	 
	 	INDEMNITEE
	 	 
	 	Name:	 
	 	 
	 	Address:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

[Signature Page to Indemnity Agreement]Exhibit 10.1

 

FORM OF S CORPORATION TERMINATION AND

TAX SHARING AGREEMENT

 

This
S Corporation Termination and Tax Sharing Agreement, dated as of [________], 2021 (the “Agreement”),
is made by and between Five Star Bancorp, a California corporation (the “Company”), and the trusts and
individuals identified on the signature page hereto (each a “Consenting Shareholder” and collectively
the “Consenting Shareholders”).

RECITALS:

 

A.       The
Company has elected to be an S corporation (the “S Election”) under Section 1362 of the Internal Revenue
Code of 1986, as amended (the “Code”).

B.       The
Company intends to conduct an initial public offering registered under the Securities Act of 1933, as amended (the “Public
Offering”).

C.        The
Company has shareholders who own shares of the Company (each such person a “Shareholder” and collectively
the “Shareholders”).

D.        The
Consenting Shareholders own shares of the Company representing at least 70% of the issued and outstanding shares of the Company.

E.       On
the Termination Date (as defined in Section 2.01 below) the Company’s status as an S corporation will terminate.

F.       The
Shareholders have been the only shareholders of the Company during the taxable year of the Company in which the Termination Date
falls, are currently the only shareholders of the Company, and will continue to be so until immediately before the consummation
of the Public Offering.

G.       In
connection with the Public Offering the Company and the Consenting Shareholders desire to provide for the termination of the Company’s
status as an S Corporation and a tax allocation and indemnification agreement in connection with tax periods prior to and following
the Termination Date (as defined in Section 2.01 below), as well as the other agreements set forth herein.

H.       The
Company and the Consenting Shareholders agree that the Agreement will entitle and obligate all of the Shareholders to all of the
rights and obligations given and imposed on Shareholders under the Agreement.

AGREEMENT:

NOW, THEREFORE, for mutual consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and the Consenting Shareholders do hereby covenant and
agree as follows:

     

     

    

Article
1.

DEFINITIONS

The following terms, as used herein,
have the following meanings:

“AAA Determination Date”
shall have the meaning set forth in Section 2.07.

“Accumulated Adjustments
Account,” or “AAA” shall have the meaning assigned to that term by Section 1368(e)(1) of
the Code.

“Assumed Tax Rate”
means, with respect to any tax period, the maximum combined federal and state income tax rates for taxpayers who are married and
filing jointly, applicable for such period, taking into account the deductibility of state income tax for federal income tax purposes,
applicable to an individual resident in California.

“C Short Year”
shall have the meaning set forth in Section 1362(e)(1)(B) of the Code.

“Code” shall
have the meaning set forth in Recital A.

“Estimated AAA Distribution”
shall have the meaning set forth in Section 2.07.

“Final AAA Amount”
shall have the meaning set forth in Section 2.07.

“Interim Distribution”
shall have the meaning set forth in Section 2.07.

“Post-Termination Distribution”
shall mean a cash distribution during the Post-Termination Transition Period to the extent it does not exceed the AAA.

“Post-Termination Transition
Period” shall have the meaning set forth in Section 1377(b)(1) of the Code and shall begin on the day after the last
day of the Company’s S Short Year.

“Public Offering”
shall have the meaning set forth in Recital B.

“S Corporation”
shall have the meaning set forth in Section 1361 of the Code.

“S Corporation Taxable Income”
shall mean, for periods beginning on or after the date the Company became an S corporation and ending with the close of the last
day of the S Short Year, the sum of (i) the Company’s items of separately stated income and gain (within the meaning of Section
1366(a)(1)(A) of the Code) reduced, to the extent applicable, by the Company’s separately stated items of loss, deduction,
or credit (within the meaning of Section 1366(a)(1)(A) of the Code) and (ii) the Company’s nonseparately computed income
or loss (within the meaning of Section 1366(a)(l)(B) of the Code).

“S Corporation Tax Year”
means any taxable period during which the Company had an S Election in effect, including the S Short Year.

“S Election”
shall have the meaning set forth in Recital A.

“S Short Year”
shall have the meaning set forth in Section 1362(e)(1)(A) of the Code.

    	 	2	 

     

    

“S Termination Year”
shall have the meaning set forth in Section 1362(e)(4) of the Code.

“Tax Proceeding”
shall have the meaning set forth in Section 2.02.

“Termination Date”
means the date on which the Company’s status as an S corporation is terminated by reason of revocation pursuant to Section
1362(d)(1) of the Code, which shall be determined pursuant to Section 2.01.

“Treasury Regulations”
means the regulations promulgated by the United States Treasury Department under the Code.

Article
2.

S CORPORATION TERMINATION AND TAX SHARING

2.01         
Termination of S Corporation Status. The Company is authorized to revoke its status as an S corporation pursuant
to Section 1362(d)(1) of the Code, which election shall be made, pursuant to the Company’s existing shareholders agreements
with the Shareholders of the Company (collectively, the “Shareholders Agreement”), by the Company and
consented to by Shareholders holding more than 70% of the issued and outstanding shares of the Company (including nonvoting stock)
and shall be effective on the Termination Date. The Company shall revoke its status as an S corporation only if the Company enters
into an underwriting agreement in connection with the Public Offering. The revocation and consents shall be made in accordance
with and in the manner provided by Treasury Regulation § 1.1362-6(a)(3) and shall be substantially in the form attached hereto
as Exhibit 1. Each of the executive officers of the Company is authorized and directed to execute and timely file such revocation
with the Internal Revenue Service and to set forth in such revocation the Termination Date, which date shall be determined by the
officer(s) executing such revocation and which such date shall not be earlier than the date on which the Public Offering is priced
nor later than the day immediately prior to the date of closing of the Public Offering.

2.02         
Payments Related to Future Adjustments. In the event that any final determination of an adjustment (by reason of
an amended return, claim for refund, audit, judicial decision or otherwise, which determination occurs after the Termination Date
(each, a “Tax Proceeding”)) results in an increase in S Corporation Taxable Income, the Company shall
distribute to the each Shareholder within 30 days of such final determination, cash in an amount equal to (i) the product of (A)
the amount of increase in taxable income to such Shareholder resulting from the adjustment and (B) the Assumed Tax Rate plus (ii)
any interest and penalties imposed thereon.

2.03         
Liability for Taxes Incurred During the S Short Year and for Tax Periods Ending Prior to the Termination Date. Each
Consenting Shareholder severally, and not jointly, covenants and agrees that: (i) such Shareholder has duly included (to the best
of such Shareholder’s knowledge), or will duly include, in such Shareholder’s federal, state, and local income tax
returns, such Shareholder’s respective allocable shares of all items of income, gain, loss, deduction, or credit attributable
to the S Short Year of the Company, (ii) its federal, state and local income tax returns shall, to the extent required by applicable
law, include such Shareholder’s allocable share of S Corporation Taxable Income of the Company from all sources through and
including the close of business on the last day of the S Short Year of the Company, and (iii) such Shareholder shall, to the extent
required by applicable law, pay any and all taxes such Shareholder is required to pay, as a result of being a shareholder of the
Company, for all taxable periods (or that portion of any period) during which the Company was an S Corporation.

    	 	3	 

     

    

2.04         
Shareholder Indemnification for Tax Liabilities. The Shareholders severally (according to the relative percentage
of the outstanding shares of the Company’s common stock owned by each Shareholder on the last day of any applicable period
to which a liability described below relates) and not jointly, each indemnifies and holds the Company harmless from, against and
in respect of any unpaid income tax liabilities of the Company (including interest and penalties imposed thereon) (i) which are
either (a) attributable to the S Short Year or (b) incurred by the Company as a result of a final determination of an adjustment
(by reason of a Tax Proceeding) to the taxable income of the Shareholders for any period, including the S Short Year or thereafter,
and which (in the case of this clause (ii)(b)) are attributable to a decrease for any period in the Shareholders’ taxable
income and a corresponding increase for any period in the taxable income of the Company, and (ii) result from the Company failing
to qualify as an S Corporation under Section 1361(a)(1) of the Code (as enacted and in effect prior to the Termination Date). Each
Shareholder shall pay to the Company cash in an amount equal to: (A)(i) the amount of such increase in the tax liabilities of the
Company, plus (ii) any interest and penalties imposed thereon, multiplied by (B) such Shareholder’s percentage of the outstanding
shares of the Company’s common stock owned by each Shareholder on the last day of any applicable period to which a liability
described below relates in proportion to such Shareholder’s ownership of the shares of the Company’s common stock owned
by such Shareholder immediately prior to the effectiveness of the revocation of the election to be treated as an S Corporation.
Notwithstanding anything to the contrary in this Agreement, the Company shall not be entitled to indemnification payments pursuant
to this Section 2.04 from any Shareholder in excess of the amount of the reduction in Shareholder’s actual income tax liability
due to a reduction in the Shareholder’s share of the Company’s S corporation taxable income as calculated by the Company
applying the Assumed Tax Rate to the amount by which the Shareholder’s taxable income has been reduced by the adjustment.

2.05         
Company Indemnification for Tax Liabilities. The Company hereby indemnifies and agrees to hold the Shareholders harmless
from, against and in respect of income tax liabilities (including interest and penalties imposed thereon), if any, incurred by
the Shareholders as a result of a final determination of an adjustment (by reason of a Tax Proceeding) to the taxable income of
the Company for any period ending after the Termination Date (including, without limitation, the C Short Year) which results in
an increase for any period in the taxable income of the Shareholders. The Company shall distribute to each Shareholder cash in
an amount equal to (i) the product of (A) the amount of such increase in the taxable income of such Shareholder resulting from
such final determination and (B) the Assumed Tax Rate, plus (ii) any interest and penalties imposed thereon.

2.06         
Payments. The Shareholders or the Company, as the case may be, shall make any payment required under Sections 2.04
or 2.05 of this Agreement within 30 days after receipt of notice from the other party that a final determination of an adjustment
(by reason of a Tax Proceeding) has occurred and a payment is due by such party to the appropriate taxing authority.

    	 	4	 

     

    

2.07         
Termination Payments to Shareholders. Within 30 days of the effectiveness of the termination of the Company’s
S Election, the Company shall distribute to the Shareholders in proportion to the ownership of the shares of the Company’s
common stock owned by each Shareholder on the Termination Date out of the net proceeds of the Public Offering, and in no event
in excess of such net proceeds, an amount equal to (a) a good faith estimate of the amount of the AAA as determined on the last
day of the last month ending more than 15 days before the Public Offering (the “AAA Determination Date”)
in accordance with the Company’s books and records and consistent with Section 1368 of the Code and the Treasury Regulations,
reduced by (b) the amount of any distribution or distributions to the Shareholders between the AAA Determination Date and the Termination
Date (the total amount of the distribution or distributions to Shareholders between the AAA Determination Date and the Termination
Date being the “Interim Distribution” and the amount distributed after the IPO the “Estimated
AAA Distribution”). After the close of the S Termination Year, the Company shall make a final determination of the
amount of AAA, without taking into account the Interim Distribution and the Estimated AAA Distribution (the “Final
AAA Amount”), and (i) if the Final AAA Amount is greater than the sum of the Interim Distribution and the Estimated
AAA Distribution, then on or before the later of (a) the day before the 12 month anniversary of the Termination Date and (b) the
due date for filing the federal tax return for the Company’s last S Short Year (including extensions), the Company will distribute
to the Shareholders, in proportion to the ownership of the shares of the Company’s common stock owned by each on the Termination
Date, the excess of the Final AAA Amount over the sum of the Interim Distribution and the Estimated AAA Distribution, and (ii)
if the Final AAA Amount is less than the sum of the Interim Distribution and the Estimated AAA Distribution, then within 30 days
of providing notice to the Shareholders of the amount of the excess of the Estimated AAA Distribution over the sum of the Interim
Distributions and the Final AAA Amount, each Shareholder shall pay to the Company, in proportion to the ownership of the shares
of the Company’s common stock owned by the Shareholder on the Termination Date, such excess.

Article
3.

ALLOCATION OF INCOME

3.01         
Short Taxable Years. The parties acknowledge that the taxable year in which the S corporation status of the Company
is terminated will be an S Termination Year for tax purposes, as defined in Section 1362(e)(4) of the Code. Pursuant to Section
1362(e)(1) of the Code, the S Termination Year of the Company shall be divided into two short taxable years: an S Short Year and
a C Short Year. As defined in Section 1362(e)(1)(A) of the Code, the S Short Year shall be that portion of the Company’s
S Termination Year ending on the day immediately preceding the Termination Date. Pursuant to Section 1362(e)(1)(B) of the Code,
that portion of the S Termination Year beginning on the Termination Date and ending on the last day of the taxable year shall be
the C Short Year of the Company.

3.02         
Pro Rata Allocation. The Company shall allocate its items of income, gain, loss, deduction and credit for
its calendar year between the S Short Year and the C Short Year using the pro rata method described in Section 1362(e)(2) of the
Code.

    	 	5	 

     

    

Article
4.

TAX MATTERS

4.01         
Refunds. If the Company receives a refund of any income tax (including penalties and interest) for any period prior
to the Termination Date, or as to which it has previously been indemnified by a Shareholder, the Company shall pay an amount equal
to such refund, within 30 days after receipt thereof, to such Shareholder. If a Shareholder receives a refund of any income tax
(including penalties and interest) as to which such Shareholder has previously been indemnified by the Company, such Shareholder
shall, within 30 days after receipt thereon, remit an amount equal to such refund to the Company.

4.02         
Notice and Tax Proceedings.

(a)              
Any time that any Shareholder believes that such Shareholder may be entitled to a payment under this Agreement as a result
of a Tax Proceeding, such Shareholder shall use reasonable efforts to promptly notify the Company of such Tax Proceeding.

(b)              
The Company will have the option to represent itself in any Tax Proceeding, at its own expense and using advisors of the
Company’s choice.

(c)              
The Shareholders shall cooperate fully with the Company in any Tax Proceeding and each such Shareholder shall have the right,
but not the obligation, to participate in such Proceeding at such Shareholder’s own expense.

(d)              
Breach by a Shareholder of any of the provisions of this Section 4.01 will terminate the Company’s obligation to make
payments to such Shareholder under Article 2 to the extent any such breach materially prejudices the result of any Tax Proceeding.

4.03         
Inconsistent Reporting. If a Shareholder hereafter reports an item on such Shareholder’s income tax return
in a manner materially inconsistent with the tax treatment reflected in the Schedule K-1 or other tax information provided to the
Shareholders by the Company for a taxable period during which the Company had an S Election in effect, the Shareholder shall notify
the Company of such treatment before filing the Shareholder’s income tax return. If such Shareholder fails to notify the
Company of such inconsistent reporting, such Shareholder shall be liable to the Company for any losses, costs or expenses (including
reasonable attorneys’ fees) arising from such inconsistent reporting, including an audit.

Article
5.

REPRESENTATIONS AND WARRANTIES; COVENANTS

5.01         
Representations and Warranties of the Shareholders. Each Consenting Shareholder represents and warrants that:

(a)              
it is currently, and has been since January 1, 2021, a shareholder of the Company; and

(b)              
the information set forth in the Form of Consent, accompanying Exhibit 1, is true, complete and correct.

5.02         
Representations and Warranties of the Company. The Company represents and warrants that it has elected to be an S
corporation (the “S Election”) under Section 1362 of the Internal Revenue Code of 1986, as amended (the
“Code”) and that the Shareholders are currently the only shareholders of the Company, and will continue
to be so until immediately before the consummation of the Public Offering.

    	 	6	 

     

    

Article
6.

MISCELLANEOUS

 

6.01         
Post-Termination Distributions. To the extent practicable and to the extent consistent with applicable law, payments
or other distributions made to the Shareholders pursuant to Article 2 will be treated as Post-Termination Distributions for U.S.
federal income tax purposes and any correspondingly applicable state and/or local tax purposes.

6.02         
Other Distributions. To the extent that the Company’s tax return preparers determine that such payments or
distributions cannot be properly treated as Post-Termination Distributions, then the amount of any distribution made to the Shareholders
pursuant to Article 2 shall be increased by the amount of the Shareholders’ additional tax liability, if any, resulting from
such payments or distributions, as reasonably determined by the Company’s tax return preparers, assuming that the Shareholders
pay tax at the Assumed Tax Rate.

6.03         
Confidentiality. Each of the parties agrees that any information furnished pursuant to this Agreement is confidential
and, except as and to the extent required by law (including, without limitation, federal securities laws and the rules promulgated
by the United States Securities and Exchange Commission (the “SEC”) and in connection with filings with
the SEC), or otherwise during the course of an audit or contest or other administrative or legal proceeding, shall not be disclosed
to any person or entity.

6.04         
Successors and Access to Information. This Agreement shall be binding upon and inure to the benefit of any successor,
heirs or personal representatives to any of the parties, by merger, acquisition of assets or stock in the Company or otherwise,
to the same extent as if the successor, heir or personal representative had been an original party to this Agreement or the applicable
Shareholder for the taxable period in question, and in such event, all references herein to a party shall refer instead to the
successor, heir or personal representative of such party; provided, however, that for purposes of calculating the tax liability
to which any payments under this Agreement would relate, the original Shareholders’ tax liability shall be taken into account,
but any payments in connection therewith shall be made to the successor, heir or personal representative of the original Shareholders.

6.05         
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California
excluding (to the greatest extent permissible by law) any rule of law that would cause the application of the laws of any jurisdiction
other than the State of California.

6.06         
Headings. The headings in this Agreement are for convenience only and shall not be deemed for any purpose to constitute
a part or to affect the interpretation of this Agreement.

    	 	7	 

     

    

6.07         
Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which will be deemed
an original, and it shall not be necessary in making proof of this Agreement to produce or account for more than one counterpart.

6.08         
Electronic Transmission. Any facsimile or electronically transmitted copies hereof or signature hereon shall, for
all purposes, be deemed originals.

6.09         
Notices. Any notice or communication required or permitted to be given under this Agreement shall be in writing (including
telecopy communication) and mailed, telecopied or delivered to the parties at the addresses specified in Schedule A or at such
other address as one party may specify by notice to the other party. All such notices and communications shall be effective when
received. Any payment required to be made under this Agreement shall be mailed or delivered to the parties at the addresses specified
in Schedule A or at such other address or account as one party may specify by notice to the other party.

6.10         
Severability. If any provision of this Agreement is held to be unenforceable for any reason, it shall be adjusted
rather than voided, if possible, in order to achieve the intent of the parties to the maximum extent practicable. In any event,
all other provisions of this Agreement shall be deemed valid, binding, and enforceable to their full extent.

6.11         
Effective Date and Survival. This Agreement shall be effective as of the Termination Date and shall remain in force
and be binding so long as the applicable period of assessments (including extensions) remains unexpired for any taxes contemplated
by this Agreement; provided, however, that if the Public Offering has not been consummated on or before December 31, 2021, this
Agreement will be void, having no force or effect.

6.12         
Successor Provisions. Any reference herein to any provisions of the Code or Treasury Regulations shall be deemed
to include any amendments or successor provisions thereto as appropriate.

6.13         
Integration; Amendments. Except as explicitly stated herein, this Agreement embodies the entire understanding between
the parties relating to its subject matter and supersedes and terminates all prior agreements and understandings among the parties
with respect to such matters. No promises, covenants or representations of any kind, other than those expressly stated herein,
have been made to induce any party to enter into this Agreement. This Agreement shall not be modified or terminated except by a
writing duly signed by each of the parties hereto, and no waiver of any provisions of this Agreement shall be effective unless
in a writing duly signed by the party sought to be bound.

6.14         
Waiver of Jury Trial. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY DISPUTE ARISING OUT OF THIS AGREEMENT. EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.14.

 

[Signature Page Follows]

 

    	 	8	 

     

    

IN WITNESS WHEREOF, the parties have
executed this S Corporation Termination and Indemnification Agreement on the date first set forth above.

FIVE STAR BANCORP 

 

 

	 	By:	James E. Beckwith
	 	 	President and CEO

 

 

SHAREHOLDER

 

 

 

By:   

 

    	 	9	 

     

    

SCHEDULE A

 

Notices

 

 

 

    	 

     

    

EXHIBIT 1

 

 

Consent of Shareholders to Revocation of
Subchapter S Election

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