Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2445

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 2445
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 each of the Initial Brown License Agreements, as amended, continues until the later of (i) the date on which the last
valid claim expires or (ii) ten years. Either party may terminate each of the Initial Brown License Agreements in certain situations,
including 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.

    F-37

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) 25% of all nonroyalty 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 $0.1 million in the event that the Company or
one of its sublicensees