Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1911

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 13
Chunk 1911
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 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 maintenance fee of $3,000 beginning on January
1, 2022, which increases to $4,000 annually on January 1, 2028.

Upon
successful commercialization, under the terms of the agreement, the
Company is also required to pay Elkurt (i) 1.5% 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 nonroyalty sublicense income are generated from know-how products, the amounts
otherwise due (royalty or non-royalty sublicense