Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 379

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 3
Chunk 379
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 Upon successful commercialization, we are required to pay Elkurt 1.25% of net sales based on the terms under the Brown Anti-
PfGARP Small Molecules License Agreement. In addition, we must pay 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 we enter 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%. We also are required to pay Elkurt $0.1 million in the event that we or one of 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 billion and has been engaged in drug discovery, development, production and marketing for no less than 5 years.

We
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 $0.3 million for enrollment
of the first patient in a Phase 3 clinical trial in the United States or the equivalent outside of the United States. We are also responsible
for reimbursement of patent costs.

The
contract term for the Brown Anti-PfGARP Small Molecules License Agreement continues until the later of the date on which the last valid
claim expires or 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
December 31, 2025 if we have not raised at least $10 million in equity financing by then.

146

Elkurt/Rhode
Island Agreement

On
January 25, 2021, we entered into an Exclusive License Agreement (the “Rhode Island License Agreement”) with Elkurt, a licensee
of Rhode Island Hospital. On April 1, 2021, September 10, 2021, March 25, 2022