Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 857

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 5
Chunk 857
---
 in the field of malaria research.

    F-37

For
the Brown Anti-PfGARP Small Molecules License Agreement, the Company is required to pay Elkurt (i) an initial license fee of $70,000
which was paid during the second quarter of 2023 and (ii) an annual license maintenance fee of $3,000 beginning on September 13, 2023,
which increases to $4,000 annually on September 13, 2028. Upon successful commercialization, based on the terms of the agreement, the
Company is required to pay Elkurt (i) 1.25% 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 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%. The Company also is required to pay Elkurt $0.1 million in the event that the Company or
one of its 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 $5.0 billion and has been engaged in drug discovery, development, production and marketing for no less
than 5 years.

The
Company is also required to 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.
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