Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2523

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2523
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ents, we may reduce the applicable royalty rates and non-royalty income rates by half. These payment amounts are identical
to the amounts owed by Elkurt to Brown University under the Upstream Brown Anti-PfGARP Small Molecules License, except that Elkurt is
not obligated to pay Brown University any annual maintenance fees. 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.

The
Brown Anti-PfGARP Small Molecules License Agreement requires us to achieve future development milestones by certain dates. Recognizing
the unpredictability of clinical development, the agreement allows us to request amendments and/or extensions to these milestones by
providing Elkurt with a reasonable explanation for such requests along with plans for achieving the extended and/or amended milestones.
Although Elkurt is obliged to reasonably extend or amend those milestones, it may terminate the agreement for failure to achieve development
milestones after giving us reasonable opportunity to cure. The Brown Anti-PfGARP Small Molecules License Agreement sets forth the following
future development milestones for the malaria small molecules program: the filing of an IND in 2027; the commencement of Phase 1/2 clinical
trials in 2027; and the commencement of a Phase 3 clinical trial in 2029. Elkurt may also terminate the agreement if we do not complete
a $10 million equity financing by December 31, 2025.

Unless
earlier terminated, the Brown Anti-PfGARP Small Molecules License Agreement, including the royalty bearing license will expire upon the
later of (a) the expiration of the last to expire valid claim of a Brown Anti-PfGARP Small Molecules Patent covering any Brown Anti-PfGARP
Small Molecules Products in any country or (b) ten years. We may terminate the Brown Anti-PfGARP Small Molecules License Agreement in
its entirety at any time for convenience. Either party may terminate the Brown Anti-PfGARP Small Molecules License Agreement in its entirety
upon the other party’s uncured material breach after an opportunity to cure such material breach. Elkurt