Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2038

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 7A
Chunk 2038
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 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 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.
The Company is also responsible for reimbursement of patent costs.

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 $10.0 million in equity financing by then.

Refer
to Note 14, 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 certain field.

For
the Rhode Island License Agreement, the Company was required to pay Elkurt (i) $0.1 million, due within 45 days of an equity financing
of at least $10.0 million or November 1, 2023, whichever comes first, and (i) an annual