Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 66

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 66
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 Elkurt being able to terminate the Initial Brown License Agreements at any time and for any reason after May 1, 2024, as discussed
above. For the oncology programs, three of the license agreements have been sublicensed to the Company’s subsidiary, Ocean ChitoRx
Inc, and for the 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.

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) Elkurt 25% of all non-royalty 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 $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