Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3404

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3404
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 or 25% depending, respectively, on whether
we execute the sublicense after or before the first commercial sale of an FRG Product. We are also required to pay certain milestone
payments on an FRG Product-by-FRG Product basis upon the achievement of specified clinical and regulatory milestones, totaling up to
$0.7 million for each FRG Product. To the extent net sales or non-royalty sublicense income are generated from any FRG Products that
are commercialized by us or our sublicensees that incorporates or otherwise utilizes the FRG Know-How but is not covered by any FRG Patents,
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 under the Upstream Brown FRG License Agreement, except that Elkurt is not obligated to pay any annual maintenance
fee amounts to Brown.

39

Under
the FRG License Agreement, Brown retains control of the preparation, filing, prosecution and maintenance of the FRG Patents. We are responsible
for reimbursing Elkurt for all documented, out-of-pocket expenses incurred in performing such patent-related activities during the term
of the FRG License Agreement. We are also obligated to reimburse Elkurt for all documented, out-of-pocket expenses incurred prior to
the effective date of the FRG License Agreement with respect to the preparation, filing, prosecution and maintenance of the FRG Patents.

Unless
earlier terminated, the FRG License Agreement, including the royalty bearing license, will terminate in its entirety upon the later of
(a) the expiration of the last to expire valid claim of the FRG Patents covering any FRG Product, or (b) ten years. We may terminate
the FRG License Agreement in its entirety at any time for convenience. Either party may terminate the FRG License Agreement in its entirety
for the other party’s uncured material breach after an opportunity for the other party to cure such material breach. Elkurt may
terminate the FRG License Agreement in its entirety immediately upon notice for failure by us to meet certain milestones or the failure
to achieve a certain amount of financing. Elkurt may also terminate the FRG License Agreement for our insolvency. If the FRG License
Agreement is terminated by either party for any reason, the FRG Licenses will terminate and all rights thereunder will revert to Elkurt.

Exclusive
License Agreement with Elkurt for Bi-Specific Antibody Anti-CTLA4