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                                                                   EXHIBIT 10.50

                              SETTLEMENT AGREEMENT


     THIS AGREEMENT is made effective this 30th day of July, 1996, by and
between American Dental Technologies (hereinafter, "ADT"), a Delaware
corporation, having offices at 28411 Northwestern Highway, Suite 1100,
Southfield, Michigan 48034-5541, and Sunrise Technologies International, Inc.
(hereinafter, "SUNRISE"), a Delaware corporation, having offices at 47257
Fremont Boulevard, Fremont, California.

     WITNESSETH:

     WHEREAS, ADT and SUNRISE are presently engaged in the following litigation:

          (a)     Appellate Action No. AO72262, entitled "Sunrise Technologies
International, Inc. Plaintiff/Cross-Defendant and Respondent v. American Dental
Technologies, Inc., f/k/a American Dental Laser, Inc., Defendant/Cross-Claimant
and Appellant," now pending in the Court of Appeal of the State of California,
First Appellate District, Division Four, as appealed from the lower court Civil
Action No. H-172132-2, entitled, "Sunrise Technologies International, Inc. et
al. v. American Dental Technologies," which was litigated in the Superior Court
for the County of Alameda - Southern Division (collectively hereinafter, "State
Court Action"); and

          (b)     Civil Action No. C94-1512 (EFL), entitled "Sunrise
Technologies International, Inc. and Danville Manufacturing v. American Dental
Technologies, Inc.," now pending in the United States District Court for the
Northern District of California, Civil Action No. C94-1513 (EFL), entitled,
"Sunrise Technologies International, Inc. and Danville Manufacturing v. American
Dental Technologies, Inc.," now pending in the United States District Court for
the Northern District of California; and Civil Action No. C95-2048-EFL, entitled
"American Dental Technologies, Inc. v. Sunrise Technologies International, Inc.
et al." (collectively hereinafter, "Federal Court Actions");

     WHEREAS, a judgment was entered against ADT in the lower court proceedings
of the State Court Action in the sum of $940,178.00, plus taxable costs and
interest, ADT having posted a cash deposit with the state court pending an
appeal in the State Court Action in the sum of $1,410,267.00.

     WHEREAS, ADT and SUNRISE desire to settle and terminate the foregoing
litigation and as part of such settlement SUNRISE desires to obtain certain
patent licenses from ADT;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
hereinafter set forth, ADT and SUNRISE agree as follows:



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                              STATE COURT ACTION

     1.      SUNRISE shall relinquish and forgive the judgment in the State
Court Action in its full amount of $940,178.00, plus costs, interest and
attorney fees.  SUNRISE shall release ADT, its officers, agents, affiliates, and
attorneys from any and all claims and counterclaims arising prior to the
effective date of this Agreement which were made or which could have been made
arising out of the subject matter of the State Court Action, including all such
claims for damages, costs, interest and attorney fees.  SUNRISE will execute all
documents necessary to dismiss the State Court Action with prejudice and to
release the full amount of the cash deposit (plus interest) posted on appeal by
ADT immediately upon execution of this Agreement, each party to bear its own
costs and attorney fees.  SUNRISE represents and warrants that it has made no
assignment or hypothecation of any judgment or claims, including but not limited
to claims for attorney fees, arising out of the State Court Action to any
creditor, attorney or other third party and agrees to indemnify and hold ADT
harmless from any such third party claim.  As used in this Agreement,
"affiliates" shall mean any corporation of which fifty percent (51%) or more of
the voting stock is owned or controlled by a party to this Agreement.

     2.      ADT shall release SUNRISE, its officers, agents, affiliates and
attorneys from any and all claims and counterclaims arising prior to the
effective date of this Agreement which were made or which could have been made
arising out of the subject matter of the State Court Action, including all such
claims for damages, costs, interest and attorney fees.  ADT will execute all
documents necessary  to dismiss the State Court Action with prejudice
immediately upon execution of this Agreement, each party to bear its own costs
and attorney fees.  ADT represents and warrants that it has made no assignment
or hypothecation of any claims, including but not limited to claims for attorney
fees, existing out of the State Court Action to any creditor, attorney or other
third party and agrees to indemnify and hold SUNRISE harmless from any such
third party claim.

                             FEDERAL COURT ACTIONS


     3.      ADT shall release SUNRISE, its officers, agents, affiliates and
attorneys from any and all claims and counterclaims arising prior to the
effective date of this Agreement which were made or which could have been made
arising out of the subject matter of the Federal Court Actions, including all
such claims for damages, costs, interest and attorney fees.  ADT further
releases SUNRISE with respect to SUNRISE's past Senior model and current
MicroPrep Associate and Director models, as described and identified in the
depositions of Mark Fernwood and Joseph Shaffer in the Federal Court Actions,
from any and all claims of infringement under patents issuing on any pending or
presently contemplated patent applications owned or controlled by ADT which
relate to air abrasive equipment or apparatus, other than such patents or
applications covering air abrasive dental systems or methods of treatment as
otherwise provided herein. ADT will execute all documents necessary to dismiss

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SUNRISE from the Federal Court Actions with prejudice immediately upon
execution of this Agreement, each party to bear its own costs and attorney
fees.  In no event, however, shall this paragraph 3 be interpreted to constitute
a release of any liability or damages, directly or indirectly, arising out of
ADT's claims against Danville Manufacturing or a dismissal of any of the claims
in the Federal Court Actions against Danville Manufacturing.  Notwithstanding,
upon execution of this Agreement, ADT will offer to dismiss without prejudice
all pending litigation by ADT against Danville Manufacturing in return for a
dismissal without prejudice by Danville Manufacturing of all pending litigation
by Danville Manufacturing against ADT; each party to bear its own costs and
attorneys fees.  ADT represents and warrants that it has made no assignment or
hypothecation of any claims, including but not limited to claims for attorney
fees, arising out of the Federal Court Actions to any creditor, attorney or
other third party and agrees to indemnify and hold SUNRISE harmless from any
such third party claim.

     4.   SUNRISE shall release ADT, its officers, agents, affiliates and
attorneys from any and all claims and counterclaims arising prior to the
effective date of this Agreement which were made or which could have been made
arising out of the subject matter of the Federal Court Actions, including all
such claims for declaratory judgment, damages, costs, interest and attorney
fees.  SUNRISE will execute all documents necessary to dismiss its claims in
the Federal Court Actions against ADT with prejudice immediately upon execution
of this Agreement, each party to bear its own costs and attorneys fees. 
SUNRISE represents and warrants that it has made no assignment or
hypothecation of any claims, including but not limited to claims for attorney
fees, arising out of the State Court Action to any creditor, attorney or third
party and agrees to indemnify and hold ADT harmless from any such third party
claim.

     5.   The dismissals submitted to the Court pursuant to paragraphs 3 and 4
of this Agreement shall include (i) a stipulation by SUNRISE that the patents
asserted in Civil Action No. C95-2048 (HFL), to wit, U.S. Patent No. 5,330,354,
U.S. Patent No. 5,350,299 and U.S. Patent No. 5,525,058, and the patent
asserted in Civil Action No. C94-1513 (ELF), to wit, U.S. Patent No. 5,275,561,
are acknowledged by SUNRISE to be valid; (ii) an order commensurate in scope
with the stipulation of section (i) of this paragraph 5; (iii) a stipulation by
ADT that the patents asserted in Civil Action No. C94-1512 (EFL), to wit, U.S.
Patent No. 4,893,440, U.S. Patent No. 4,733,503, U.S. Patent No. 4,708,534 and
U.S. Patent No. 4,635,897, and any non-dental air abrasive patents or patent
applications presently owned by ADT are not infringed by SUNRISE's past Senior
model and current MicroPrep Associate and Director models as described and
identified in the depositions of Mark Fernwood and Joseph Shaffer in the
Federal Court Actions; and (iv) an order commensurate in scope with the
stipulation of section (iii) of this paragraph 5.



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                                 PATENT LICENSE


     6.    ADT hereby grants to SUNRISE a nonexclusive license under U.S. Patent
No. 5,275,561, U.S. Patent No. 5,330,354, U.S. Patent No. 5,350,299 and U.S.
Patent No. 5,525,058, and any foreign counterparts, reexaminations, reissues,
continuations or continuations-in-part based on the disclosure of the patents of
this paragraph 6, for the life of such patents, to make, use, lease and sell
SUNRISE's current MicroPrep Associate and Director models as described and
identified in the depositions of Mark Fernwood and Joseph Shaffer in the Federal
Court Actions, and future models to the extent such future models do not
infringe any non-dental patents or patent applications (for example, on helical
powder feed mechanisms) of ADT, throughout the world, but excluding those
territories (Japan, China, including Hong Kong, Taiwan, North Korea, South
Korea, India, Pakistan, Australia, New Zealand, Singapore, Thailand, Malaysia
and Indonesia) presently covered by agreements between ADT and Denics Co., Ltd.,
a/k/a Dental Innovative Corporation, a Japanese corporation.  The license
granted in this paragraph 6 is non-transferable by assignment, sublicense or
other means of transfer except as provided in paragraphs 7 and 8 of this
Agreement, provided, further, that the period in which SUNRISE is licensed under
this Agreement, SUNRISE shall have the right to have the products of this
paragraph 6 manufactured by a third party solely for SUNRISE.  The license
granted in this paragraph 6 is subject to the payments provided in paragraph 9
of this Agreement.  ADT represents and warrants that other than the patents
licensed in this paragraph 6, ADT does not presently own or hold licensable
rights in any other patents or patent applications covering the products of this
paragraph 6.

     7.    The license granted in paragraph 6 of this Agreement is
non-transferable for a period of eighteen (18) months from the effective date of
this Agreement and SUNRISE shall make no such transfer or promise to transfer
within such eighteen (18) month period, except as provided in paragraph 8 of
this Agreement.  After the expiration of such eighteen (18) month period,
SUNRISE shall have the right to transfer the license of paragraph 6 of this
Agreement upon the following terms and conditions; the transferee shall assume
all obligations of SUNRISE under this Agreement, including the obligation to
make the payments required by paragraph 9 of this Agreement; provided, however,
that no such transfer of the license after such eighteen (18) month period has
expired, but before the expiration of twenty-four (24) months after the
effective date of this Agreement, shall be made conditioned on the subsequent
sale or transfer of all of SUNRISE's dental air abrasive products business.

     8.    SUNRISE may at any time transfer the license of paragraph 6 of this
Agreement if such transfer is made with the transfer of all of SUNRISE's dental
air abrasive products business (for the purposes of this Agreement, the phrase
"transfer of all of SUNRISE's dental air abrasive products business" shall mean
any such transfer by asset sale or exchange or by stock transfer or exchange,
and shall further include any merger by or into, or consolidation with,
SUNRISE); provided, however, that, if such transfer occurs within two (2) years
of the effective date of this Agreement, then SUNRISE shall pay to ADT, in cash,
a transfer fee

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equal to ten percent (10%) of the gross consideration for the transfer of the
license and the dental air abrasive products business received by SUNRISE,
regardless of the form of the consideration (provided that, in the event of a
merger, such gross consideration shall be based on the fair market value of the
shares thereupon issued by SUNRISE or thereupon issued to SUNRISE and/or its
shareholders) and the transferee or surviving entity shall assume all
obligations of SUNRISE under this Agreement, including the obligation to make
the payments required by paragraph 9 of this Agreement.  In the event such
transfer of all of SUNRISE's dental air abrasive products business shall occur
more than two (2) years after the effective date of this Agreement, then
SUNRISE's only obligation upon transfer shall be to require such transferee or
continuing entity to assume all obligations of SUNRISE under this Agreement,
including the obligation to make the payments required by paragraph 9 of this
Agreement.


                                    PAYMENTS

     9.  Beginning on January 1, 1997, SUNRISE, or its permitted successor or
assignee, shall pay to ADT the sum of seven percent (7%) on the net sales price
(defined as gross sales price less freight, duties and taxes) on all air
abrasive products manufactured, sold or leased by SUNRISE, or its permitted
successor or assignee, which are manufactured (by or on behalf of SUNRISE), sold
or leased in a country in which ADT, presently or in the future, owns or
controls patents or patent applications on any dental air abrasive products or
methods of treatment, until the expiration of all such patents/patent
applications.  In the event that SUNRISE, or its permitted successor or
assignee, manufactures or has manufactured on its behalf, and sells or leases
(i.e., manufactures and sells or manufactures and leases), air abrasive products
wholly within a country where ADT holds no such patents or patent applications
or where all such patents have expired, then no such payments shall be required.
The payments required under this paragraph 9 of this Agreement shall accrue when
the subject products are delivered, invoiced or paid for, whichever occurs
first.  All payments shall be made in U.S. dollars.  In no event shall a 
payment by SUNRISE under this paragraph 9 be required for products that are both
made and sold prior to January 1, 1997.

     10.  SUNRISE, and any permitted successor or assignee, shall (i) make the
payments required in paragraph 9 of this Agreement on February 15th, May 15th,
June 15th and November 15th for the proceeding accounting quarter, with the
first payment to be made on May 15, 1997.  SUNRISE shall keep accurate books and
records reflecting transactions made under this Agreement and shall make reports
at the time of such payments fully supporting the calculation of payments made,
including the number of units sold or leased and the sales price used to
determine payments.  ADT shall have the right to inspect such books and records
through an independent certified accountant, not to exceed one such audit per
year.


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                                 TERMINATION

     11.     ADT may terminate the license granted by paragraph 6 of this
Agreement only in the event of a material breach of this Agreement by SUNRISE,
and then only if, upon receiving notice of such breach SUNRISE fails to cure
such breach within thirty (30) days of such notice, such right of termination
shall not be in lieu of other remedies such as specific performance.

                                PATENT MARKING

     12. SUNRISE shall apply statutory notice to its MicroPrep air abrasive
units sold in the United States substantially as follows: "This unit and its use
is protected by one or more of the following U.S. Patents: 5,275,561, 5,330,354,
5,350,299 and 5,525,058."


                                    NOTICE


     13. All notices required to be given under this Agreement shall be given in
writing and shall be sent by regular mail, postage prepaid, certified mail or by
recognized overnight express mail service to the parties at the addresses below.


          If to ADT, to: 
          Anthony D. Fiorillo 
          President and Chief Executive Officer
          American Dental Technologies, Inc. 
          28411 Northwestern Highway, Suite 1100
          Southfield, Michigan  48034-5541 
          Tel: (810) 353-5300 
          Fax: (810) 353-0663

          With a copy to:
          Dykema Gossett PLLC
          1577 North Woodward Avenue
          Suite 300
          Bloomfield Hills, Michigan 48304
          Attention:  Robert L. Kelly, Esq.
          Tel: (810) 540-0849
          Fax: (810) 540-0763


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        If to SUNRISE, to:
        David W. Light
        President and Chief Executive Officer
        Sunrise Technologies International
        47257 Fremont Boulevard
        Fremont, California
        Tel:
        Fax:

        With a copy to:
        Daniel Johnson, Esq.
        Cooley Godward Castro Huddleson & Tatum
        Five Palo Alto Square, 4th Floor
        Palo Alto, California 94306
        Tel: (415) 843-5000
        Fax: (415) 857-0663


        14.     A notice sent pursuant to paragraph 13 of this Agreement shall
be deemed given on the date it is mailed, unless the intended recipient can
establish that such notice was not timely received.


                                  JURISDICTION

        15.     The Court in the Federal Court Actions shall retain
jurisdiction of the parties and this Agreement for purposes of resolving any
dispute which may arise hereunder.

                                 GOVERNING LAW

        16.     This Agreement is made in the County of Oakland, State of
Michigan, and shall be governed by the laws of the State of Michigan without
regard to its conflict of laws principles.

                                   WARRANTIES

        17.     Both parties represent that their undersigned representatives
have the full power and authority to enter into this Agreement.  ADT represents
and warrants that it has the right


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and power to grant the license of paragraph 6 of this Agreement, but makes no
other warranties whatsoever regarding the patents so licensed.

                            RELATIONSHIP OF PARTIES

     18.     This Agreement is not intended by the parties to, and shall not,
constitute or create a joint venture, partnership or other business organization
and neither party shall be nor shall act as an agent of the other party.
Neither party shall use the other party's name in any marketing efforts.

                                  SEVERABILITY

     19.     The invalidity of any provision of this Agreement shall not affect
the validity of any other provision of this Agreement.

                               COMPLETE AGREEMENT

     20.     This Agreement constitutes the entire agreement of the parties
regarding this subject matter and supersedes any and all prior or
contemporaneous oral or written agreements, understandings, negotiations or
discussions among the parties regarding this subject matter.  Any amendments or
other modifications to this Agreement must be made in writing and must be duly
executed by an authorized representative or agent of each party.

                                  COUNTERPARTS

     21.     This Agreement may be executed in multiple counterparts, each of
which shall be deemed to be an original, and all such counterparts shall
constitute but one instrument.

                        PERMITTED SUCCESSORS AND ASSIGNS

     22.     This Agreement, and all provisions herein, shall bind the parties
and their permitted successors and permitted assigns.


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     The parties have executed this Agreement as effective the date first
written above by their duly authorized agents.


AMERICAN DENTAL                        SUNRISE TECHNOLOGIES
TECHNOLOGIES, INC.                     INTERNATIONAL, INC.



/s/ Anthony D. Fiorillo                /s/ David W. Light
----------------------------           -------------------------------
By: Anthony D. Fiorillo                By: David W. Light
President and Chief Executive Officer  President and Chief Executive Officer

Date:  July 30, 1996                   Date:  July 30, 1996


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