Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2511

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2511
---
, Elkurt obtained from Brown, the licenses, with the rights to sublicense, under the Anti-CTLA4 Patents and
the Anti-CTLA4 Know-How, to grant us the Anti-CTLA4 Licenses as described above, or the Upstream Brown Anti-CTLA4 License. Brown and
Elkurt, on behalf of Brown, retained the rights to practice the intellectual property rights sublicensed to us for academic research,
educational and scholarly purposes, and to publish resulting scientific findings.

The
Anti-CTLA4 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 Anti-CTLA4 License Agreement sets forth the following future development milestones:
the filing of an IND within two years after commencing IND-enabling studies; the completion of a Phase 1 clinical trial within one year
following the filing of an IND; completion of a Phase 2 clinical trial within approximately four years following completion of a Phase
1 clinical trial; and the completion of a Phase 3 clinical trial within approximately three years following the completion of a Phase
2 clinical trial. Elkurt may also terminate the agreement if we do not complete a $10 million equity financing by December 31, 2025.

In
consideration for the rights conveyed by Elkurt under the Anti-CTLA4 License Agreement, we are obligated to pay to Elkurt a non-refundable,
annual license maintenance fee. Beginning January 1, 2022, we are obligated to pay Elkurt an annual license maintenance fee (a) of $3,000
until January 1, 2027, and (b) thereafter, an annual license maintenance fee of $4,000. We are also obligated to pay to Elkurt low, single-digit
royalties, on net sales of any Anti-CTLA4 Products that are commercialized by us or our sublicensees. If we grant any sublicenses under
the Anti-CTLA4 License Agreement, we are obligated to pay to Elkurt an initial sublicense fee that is either 10% or 25% depending, respectively