Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 510

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 3
Chunk 510
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 fibrosis program, one license agreement has been sublicensed to the Company’s subsidiary, Ocean ChitofibroRx Inc.

Brown
Anti-PfGARP Small Molecules License Agreement

On
September 13, 2022, the Company entered into an additional Exclusive License Agreement (the “Brown Anti-PfGARP Small Molecules
License Agreement”) with Elkurt. Under the Brown Anti-PfGARP Small Molecules License Agreement, Elkurt grants the Company an exclusive,
royalty-bearing license to patent rights and a nonexclusive, royalty-bearing license to know-how, solely to make, have made, market,
offer for sale, use, and sell licensed products for use in the field of malaria research.

    F-37

For
the Brown Anti-PfGARP Small Molecules License Agreement, the Company is required to pay Elkurt (i) an initial license fee of $70,000
which was paid during the second quarter of 2023 and (ii) an annual license maintenance fee of $3,000 beginning on September 13, 2023,
which increases to $4,000 annually on September 13, 2028. Upon successful commercialization, based on the terms of the agreement, the
Company is required to pay Elkurt (i) 1.25% of net sales and (ii) 25% of all nonroyalty sublicense income prior to the first commercial
sale, and 10% of non-royalty sublicense income thereafter, in the event that the Company enters into sublicenses for the subject intellectual
property. If net sales or non-royalty sublicense income are generated from know-how products, the amounts otherwise due (royalty or non-royalty
sublicense income) shall be reduced by 50%. The Company also is required to pay Elkurt $0.1 million in the event that the Company or
one of its sublicensees sublicenses this technology to a major pharmaceutical company or if the license agreement or any sublicense agreement
for this technology is acquired by a major pharmaceutical company. A major pharmaceutical company is one that is publicly traded, with
market capitalization of at least $5.0 billion and has been engaged in drug discovery, development, production and marketing for no less
than 5 years.

The
Company is also required to pay Elkurt developmental and commercialization milestone payments pursuant to the Brown Anti-PfGARP Small
Molecules License Agreement ranging from $50,000 for the filing of an