Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2520

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2520
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 25% depending, respectively,
on whether we execute the sublicense after or before the first commercial sale of a PfGARP/PfSEA Product. We are also required to pay
certain milestone payments on a PfGARP/PfSEA Product-by- PfGARP/PfSEA Product basis upon the achievement of specified clinical and regulatory
milestones, totaling up to $0.7 million for each PfGARP/PfSEA Product. To the extent net sales or non-royalty sublicense income are generated
from any PfGARP/PfSEA Products that are commercialized by us or our sublicensees that incorporate or otherwise utilizes the PfGARP/PfSEA
Know-How but not covered by any PfGARP/PfSEA 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 RIH under the Upstream RIH PfGARP/PfSEA License Agreement, except
that Elkurt is not obligated to pay RIH any annual maintenance fees.

The
PfGARP/PfSEA 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 PfGARP/PfSEA License Agreement sets forth the following future development milestones
for the malaria vaccine program: the filing of an IND within two years after commencing IND-enabling studies; the completion of a Phase
1/2 clinical trial within one and a half years following the filing of an IND; and the completion of a Phase 3 clinical trial within
three years following completion of a Phase 1/2 clinical trial. Elkurt may also terminate the agreement if we do not complete a $10 million
equity financing by December 31, 2025.

Unless
earlier terminated, the PfGARP/PfSEA 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 PfGARP/PfSEA Patent covering any PfGARP/PfSEA Products in any country or (b) ten years. We may