Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3414

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3414
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 PfGARP/PfSEA Know-How, or the Upstream RIH License, to grant us the
PfGARP/PfSEA Licenses as described above. RIH and Elkurt, on behalf of RIH, retained the rights to practice the intellectual property
rights sublicensed to us for academic research, educational and scholarly purposes, and to publish resulting scientific findings.

Under
the PfGARP/PfSEA License Agreement, we must use commercially reasonable efforts to develop and commercialize products in accordance with
the development and commercialization plan, to introduce PfGARP/PfSEA Products into the commercial market and to market PfGARP/PfSEA
Products after such introduction in the market, and we must meet certain development and commercialization milestones or else failure
to do so will be considered a material breach of the PfGARP/PfSEA License Agreement.

43

In
consideration for the rights conveyed by Elkurt under the PfGARP/PfSEA License Agreement, we must pay to Elkurt a non-refundable, annual
license maintenance fee. Beginning January 1, 2022 we are obligated to pay Elkurt an annual license maintenance fee (a) of $3,000 until
January 1, 2027, and (b) thereafter, an annual license maintenance fee of $4,000. We are also obligated to pay to Elkurt low, single-digit
royalties, on net sales of any PfGARP/PfSEA Products that are commercialized by us or our sublicensees. If we grant any sublicenses under
the PfGARP/PfSEA Licenses, we are obligated to pay to Elkurt an initial sublicense fee that is either 10% or 25% depending, respectively,
on whether we execute the sublicense after or before the first commercial sale of a PfGARP/PfSEA Product. We are also required to pay
certain milestone payments on a PfGARP/PfSEA Product-by- PfGARP/PfSEA Product basis upon the achievement of specified clinical and regulatory
milestones, totaling up to $0.7 million for each PfGARP/PfSEA Product. To the extent net sales or non-royalty sublicense income are generated
from any PfGARP/PfSEA Products that are commercialized by us or our sublicensees that incorporate or otherwise utilizes the PfGARP/PfSEA
Know-How but not covered by any PfGARP/PfSEA Patents, we may reduce the applicable royalty