Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 167

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 167
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 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 $100,000 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 will also 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 IND, or the equivalent outside of the United States, to $250,000 for enrollment
of the first patient in a Phase 3 clinical trial in the United States or the equivalent outside of the United States. The Company is
also responsible for reimbursement of patent costs.

    32

The
contract term for the Brown Anti-PfGARP Small Molecules License Agreement continues until the later of (i) the date on which the last
valid claim expires or (ii) ten years. Either party may terminate the Brown Anti-PfGARP Small Molecules License Agreement in certain
situations, including Elkurt being able to terminate the Brown Anti-PfGARP Small Molecules License Agreement at any time and for any
reason after May 1, 2024 if the Company has not raised at least $10,000,000 in equity financing by then.

Refer
to Note 13, Related Party Transactions, for further detail on the Company’s relationship to Elkurt.

Rhode
Island License Agreement

In
January 2021, the Company entered into an Exclusive License Agreement (the “Rhode Island License Agreement”) with Elkurt,
a licensee of Rhode Island Hospital, as subsequently amended throughout that year. Under the Rhode Island License Agreement, as amended,
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 a