Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2522

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2522
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 Elkurt, on behalf
of Brown University, 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.

44

Under
the Brown Anti-PfGARP Small Molecules License Agreement, we must use commercially reasonable efforts to develop and commercialize products
in accordance with the development and commercialization plan, to introduce Brown Anti-PfGARP Small Molecules Products into the commercial
market and to market Brown Anti-PfGARP Small Molecules Products after such introduction in the market, and we must meet certain development
and commercialization milestones or else failure to do so will be considered a material breach of the Brown Anti-PfGARP Small Molecules
License Agreement.

In
consideration for the rights conveyed by Elkurt under the Brown Anti-PfGARP Small Molecules License Agreement, we must pay to Elkurt
a non-refundable, annual license fee. Beginning September 13, 2023 we are obligated to pay Elkurt an annual license maintenance fee equal
to (a) $3,000 until September 13, 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 Brown Anti-PfGARP Small Molecules Products that are commercialized by us or
our sublicensees. If we grant any sublicenses under the Brown Anti-PfGARP Small Molecules Licenses, we are obligated to pay to Elkurt
an initial sublicense fee that is either 10% or 25% depending, respectively, on whether we execute the sublicense after or before the
first commercial sale of a Brown Anti-PfGARP Small Molecules Product. We are also required to pay certain milestone payments on a Brown
Anti-PfGARP Small Molecules Product-by-Brown Anti-PfGARP Small Molecules Product basis upon the achievement of specified clinical and
regulatory milestones, totaling up to $0.7 million for each Brown Anti-PfGARP Small Molecules Product. To the extent net sales or non-royalty
sublicense income are generated from any Brown Anti-PfGARP Small Molecules Products that are commercialized by us or our sublicensees
that incorporate or otherwise utilizes the Brown Anti-PfGARP Small Molecules Know-How but not covered by any Brown Anti-PfGARP Small
Molecules Pat