Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 552

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 4
Chunk 552
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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%. We also are required to pay Elkurt $0.1 million in the event that we or one of sublicensees
sublicenses this technology to a major pharmaceutical company or if the license agreement or any sublicense agreement for this technology
is acquired by a major pharmaceutical company. A major pharmaceutical company is one that is publicly traded, with market capitalization
of at least $5 billion and has been engaged in drug discovery, development, production and marketing for no less than 5 years.

We
will also pay Elkurt developmental and commercialization milestone payments pursuant to the Brown Anti-PfGARP Small Molecules License
Agreement ranging from $50,000 for the filing of an IND, or the equivalent outside of the United States, 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. We are also responsible
for reimbursement of patent costs.

The
contract term for the Brown Anti-PfGARP Small Molecules License Agreement continues until the later of the date on which the last valid
claim expires or 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
December 31, 2025 if we have not raised at least $10 million in equity financing by then.

146

Elkurt/Rhode
Island Agreement

On
January 25, 2021, we entered into an Exclusive License Agreement (the “Rhode Island License Agreement”) with Elkurt, a licensee
of Rhode Island Hospital. On April 1, 2021, September 10, 2021, March 25, 2022, July 1, 2022 and August 26, 2022, we and Elkurt amended
the Rhode Island License Agreement. Under the Rhode Island License Agreement, as amended, Elkurt grants us 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