SEC Filing Document

Company: BIOVENTRIX, INC.
Ticker: 
CIK: 1283259
Filing Type: S-1/A
Document Type: EX-10.7
Date Filed: 2026-03-18
Accession Number: 0001493152-26-010642
Exchange: 
SIC Code: 3841
SIC Description: Surgical & Medical Instruments & Apparatus
URL: https://www.sec.gov/Archives/edgar/data/1283259/000149315226010642/ex10-7.htm

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prosecute patent rights that may have been accrued, or that accrue in the future. Licensee shall pay all future patent prosecution duties and costs after the date of this Agreement. The above fees are not creditable against any other payments required to be paid under the terms of this Agreement. 4.3 The Licensee shall pay to HFHS a license maintenance fee of twenty- five thousand dollars ($25,000) beginning on the one (1) year anniversary of the Effective Date and continuing annually thereafter on each anniversary of the Effective Date. The license maintenance fee is no longer due once the Licensee begins paying an Earned Royalty to HFHS on the Net Sales. 5. EARNED ROYALTIES 5.1 The Licensee will also pay to HFHS an earned royalty of one percent (1.0%) of the Net Sales of Licensed Product or Licensed Method by the Licensee or any Affiliate or Joint Venture (“Earned Royalty”).

the event the Licensee is obligated to license patent rights owned by an unaffiliated third party or parties in addition to the licenses
obtained from HFHS in order to practice Licensed Methods and to make, use or Sell Licensed Products, and the Licensee is required to
pay a royalty to both HFHS and the unaffiliated third party under that separate license agreement and the combined Earned Royalty due
HFHS and the unaffiliated third party(s) exceeds nine percent (9%), then the Earned Royalties to be paid to HFHS under this Agreement
by Licensee shall be reduced by an amount equal to the excess over nine percent (9%) of the combined royalty rate(s) due under any such
separate license agreements on a going-forward basis, multiplied by a fraction, the numerator of which is one and the denominator of
which is the total number of unaffiliated third parties entitled to royalty payments in connection with the Licensed Product and/or Licensed
Method. However, in no event shall the amount paid to HFHS be reduced below three-quarters of a percent (0.75%).

6. DUE DILIGENCE AND MILESTONE PAYMENTS

6.1 Licensee
shall use its best efforts to effect introduction of Licensed Technology into the commercial market as soon as possible. Thereafter,
until the termination of this Agreement, Licensee shall keep Licensed Technology reasonably available to the public and actively promoted
in commerce.

6.2 Licensee
will deliver to HFHS written reports on Licensee’s progress towards achieving such Diligence Milestones at the end of each Fiscal
Quarter in sufficient detail to enable HFHS to determine whether Licensee is making sufficient and reasonable progress towards the Diligence
Milestones. Licensee agrees to promptly provide HFHS with any additional information HFHS may request from time to time following HFHS’
receipt of a written report.

6.3 Licensee’s
failure to achieve the Diligence Milestones in accordance with the timeframes and associated terms and conditions set forth in Section
6.4 shall be grounds for HFHS to terminate this Agreement pursuant to Section 11.

6.4 With
respect to the Licensed Product or Licensed Method, the Licensee will pay to HFHS the following non-refundable, non-creditable amounts
upon attainment of the milestones set forth below:

6.4.1	Two-hundred
thousand dollars ($200,000) upon approval of first IND, IDE, or equivalent with the U.S.
FDA; and

6.4.2	Five-hundred
thousand dollars ($500,000) upon grant of first U.S. regulatory market approval; and

6.4.3	One-hundred-twenty-five
thousand dollars ($125,000) upon approval of second IND, IDE, or equivalent with the U.S.
FDA; and

6.4.4	Two-hundred-fifty
thousand dollars ($250,000) upon grant of second U.S. regulatory market approval.

6.5 For
the avoidance of doubt, each of the payments set forth in Paragraphs 6.1 through 6.4 will be payable only once under this Agreement.
Furthermore, each such milestone payment will be payable regardless of whether the applicable milestone event has been achieved by the
Licensee or any Affiliate, Joint Venture or Sublicensee.

6.6 All
milestone payments are due to HFHS within ninety (90) days of the occurrence of the applicable milestone event.

7. DEVELOPMENT AND COMMERCIALIZATION

7.1 The
Licensee, upon execution of this Agreement, will diligently proceed with the development, manufacture and Sale of Licensed Products and
Licensed Methods and will diligently market the same in quantities sufficient to meet the market demands. The Licensee will obtain all
necessary governmental approvals in each country where Licensed Products and Licensed Methods are manufactured, used, Sold, offered for
Sale or imported.

8. ROYALTY REPORTS

8.1 Beginning
on June 30, 2022 and annually thereafter until the First Commercial Sale of a Licensed Product or Licensed Method occurs, the Licensee
will submit to HFHS a written progress report covering the Licensee’s activities related to the development of all Licensed Products
and Licensed Methods, the obtaining of the governmental approvals necessary for marketing and the activities.

8.2 The
Licensee will report to HFHS the date of First Commercial Sale of a Licensed Product or Licensed Method.

8.3 Beginning
with the First Commercial Sale of a Licensed Product or Licensed Method, the Licensee will make quarterly royalty reports to HFHS on
or before each February 28 (for the quarter ending December 31), May 31 (for the quarter ending March 31), August 31 (for the quarter
ending June 30) and November 30 (for the quarter ending September 30) of each year. Each royalty report will cover Licensee’s most
recently completed calendar quarter and will show:

8.3.1	the
gross invoice prices and Net Sales of Licensed Products or Licensed Methods Sold (itemizing
the applicable gross proceeds and any deductions therefrom);

8.3.2	the
quantity of each type of Licensed Product or Licensed Method Sold;

8.3.3	the
Earned Royalties, in United States dollars, payable with respect to Net Sales;

8.3.4	the
method used to calculate the Earned Royalty, specifying all deductions taken and the dollar
amount of each such deduction;

8.3.5	the
exchange rates used, if any; and

8.3.6	any
other information reasonably necessary to confirm Licensee’s calculation of its financial
obligations hereunder.

no Sales of Licensed Products or Licensed Methods have been made during any reporting period, then a statement to this effect must be
provided by the Licensee in the immediately subsequent royalty report.

9. BOOKS AND RECORDS

9.1 Licensee
shall keep, and shall cause its Affiliates and Permitted Sublicensees to keep, complete and accurate records pertaining to the Disposition
of Licensed Products and Licensed Methods in sufficient detail to permit HFHS to confirm the accuracy of royalty payments due hereunder.
Such records shall be kept for no less than three (3) years following the end of the Fiscal Quarter to which they pertain. HFHS may cause
an independent, certified public accountant reasonably acceptable to Licensee to audit such records to confirm Net Sales, royalties and
other payments for a period covering not more than three (3) years following the Fiscal Quarter to which they pertain. Such audits may
be exercised during normal business hours upon reasonable prior written notice to Licensee. The Parties shall make prompt adjustments
to reflect the results of such audit. HFHS shall bear the full cost of such audit unless such audit discloses an underpayment by Licensee
of more than five percent (5%) of the amount of royalties or other payments due under this Agreement for any applicable Fiscal Quarter,
in which case, Licensee shall bear the cost of such audit. In any event, Licensee shall promptly remit to HFHS the amount of any underpayment.
Any overpayment by Licensee revealed by an audit shall be credited against future payments owed by Licensee to HFHS (and if no further
payments are due, shall be refunded by HFHS at the request of Licensee). In the event of a dispute with respect to any audit under this
Section 9, Licensee and HFHS shall work in good faith to resolve the disagreement. If the Parties are unable to reach a mutually acceptable
resolution of any such dispute within thirty (30) days, the dispute shall be submitted for resolution to a certified public accounting
firm jointly selected by each Party’s certified public accountants or to such other person or entity as the Parties shall mutually
agree (the “Auditor”). The decision of the Auditor shall be final and the costs of such arbitration as well as the initial
audit shall be borne between the Parties in such manner as the Auditor shall determine. Not later than ten (10) days after such decision
and in accordance with such decision, Licensee shall pay the additional amounts, with interest from the date originally due as provided
in Section 3.2 or HFHS shall reimburse the excess payments, as applicable.

10. LIFE OF THE AGREEMENT

10.1 Unless
otherwise terminated by operation of law, or by acts of the parties in accordance with the terms of this Agreement, this Agreement will
remain in effect from the Effective Date until the expiration or abandonment of the last of the Patent Rights licensed hereunder.

10.2 Any
termination or expiration of this Agreement will not affect the rights and obligations set forth in the following Articles, or in any
Article which under its terms or by reasonable implication may be performed after termination or expiration of this Agreement:

Article
1	Definitions

Paragraph
3.7	Late
Payments