EX-10.1






SECURITIES PURCHASE AGREEMENT




This SECURITIES PURCHASE AGREEMENT (this “Agreement”) dated July 18, 2014, is entered
into by and among (i) Biolase, Inc., a Delaware corporation (the “Company”), and (ii) each
person listed on Schedule I hereto (each, an “Investor” and, collectively, the
“Investors”).



WHEREAS, subject to the terms and conditions set forth in this Agreement, the Company desires
to issue and sell to the Investors the aggregate number of shares set forth on Schedule I hereto
(the “Common Shares” or the “Securities”) of the Company’s common stock, par value
$0.001 per share (“Common Stock”), in a private placement pursuant to Section 4(a)(2) of
the Securities Act of 1933, as amended (the “Securities Act”);



NOW THEREFORE, in consideration of the mutual covenants made herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound, agree as follows:



1. Purchase and Sale of Securities. Subject to the terms and conditions hereof, each
Investor agrees, severally and not jointly, to purchase from the Company, and the Company agrees to
sell to the Investors at the Closing, the number of Common Shares set forth opposite each such
Investor’s name on Schedule I hereto for the price per share set forth in Section 4 hereof and for
the aggregate purchase price set forth on Schedule I hereto.



2. Issuance of Securities. Notwithstanding anything in this Agreement to the
contrary, the Company shall have no obligation to issue any of the Securities to any person who is
a resident of a jurisdiction in which the issuance of Securities to such person would constitute a
violation of the securities, “blue sky” or other similar laws of such jurisdiction (collectively
referred to as the “State Securities Laws”).



3. The Closing. The closing of the purchase and sale of the Common Shares (the
“Closing”) shall take place at the headquarters of the Company, within two (2) business
days of the date hereof, or at such other time and place as the Company may designate by notice to
the Investors (such date and time being referred to herein as the “Closing Date”).



4. Payment for Securities. Payment for the Common Shares shall be received by the
Company from the Investors by wire transfer of immediately available funds or other means approved
by the Company at or prior to the Closing, at the price of $1.92 per Common Share. The Company
shall deliver or cause its transfer agent to deliver certificates representing the Common Shares
that each Investor purchases to each such Investor at the Closing bearing the legend set forth in
Section 10.



5. Representations and Warranties of the Company. Except as otherwise specifically
described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, the
Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, and any current
reports on Form 8-K filed by the Company subsequent to December 31, 2013 and through the date of
this Agreement with the Securities and Exchange Commission (the “Commission”), including
the information incorporated by reference therein (collectively, the “Disclosure Package”),
the Company hereby represents and warrants to and covenants with the Investors, as of the date
hereof and as of the Closing, that:



(a) Organization, Good Standing and Qualification. The Company is duly formed and
validly existing under the laws of Delaware, with full corporate power and authority to conduct its
business as it is currently being conducted and to own its assets; and has secured any other
authorizations, approvals, permits and orders required by law for the conduct by the Company of its
business as it is currently being conducted.



(b) Authorization. The Company has all corporate right, power and authority to enter
into this Agreement and to consummate the transactions contemplated hereby. All corporate action
on the part of the Company, its directors and stockholders necessary for the authorization,
execution, delivery and performance of this Agreement by the Company, the authorization, sale,
issuance and delivery of the Securities contemplated herein and the performance of the Company’s
obligations hereunder has been taken. This Agreement has been duly executed and delivered by the
Company and constitutes the legal, valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms.



(c) Capitalization.



(i) As of July 1, 2014, the authorized capital stock of the Company consisted of 1,000,000
shares of preferred stock, par value $0.001 per share (the “Preferred Stock”), none of
which were issued and outstanding, and 50,000,000 shares of Common Stock, 37,636,535 shares of
which were issued and outstanding. The Preferred Stock and the Common Stock are collectively
referred to herein as the “Capital Stock.” All of the issued and outstanding shares of
Capital Stock have been duly authorized, validly issued and are fully paid and nonassessable. As of
July 1, 2014, warrants to purchase 1,047,974 shares of Common Stock were outstanding, options to
purchase 3,893,748 shares of Common Stock were outstanding, and an additional 889,740 shares of
Common Stock were available for issuance under the Company’s 2002 Stock Incentive Plan. Except for
the inducement grants made to the Acting Chief Executive Officer on July 13, 2014, for the director
compensation plan adopted by the Board of Directors on July 14, 2014 and as otherwise set forth in
this Agreement, as of the date hereof there are no outstanding options, warrants, rights (including
conversion or preemptive rights), agreements, arrangements or commitments of any character, whether
or not contingent, relating to the issued or unissued Capital Stock of the Company or obligating
the Company to issue or sell any share of Capital Stock of, or other equity interest in, the
Company.



(ii) The Common Shares have been duly authorized and, when issued, delivered and paid for in
the manner set forth in this Agreement, will be validly issued, fully paid and non-assessable and
shall be free and clear of any encumbrances, preemptive rights or restrictions (other than as
provided in this Agreement or any restrictions on transfer generally imposed under applicable
securities laws).



(d) Consents. The Company is not required to obtain any consent, waiver,
authorization or order of, give any notice to, or make any filing or registration with, any court
or other federal, state, local or other governmental authority or other person in connection with
the execution, delivery and performance by the Company of this Agreement, filings that have been
made, or will be made, pursuant to the rules and regulations of Nasdaq, applicable State Securities
Laws and post-sale filings pursuant to applicable federal and State Securities Laws which the
Company undertakes to file or obtain within the applicable time periods.



(e) Securities Laws. Assuming the accuracy of each Investor’s representations and
warranties set forth in Section 6, no registration under the Securities Act is required for the
offer and sale of the Securities by the Company to the Investors as contemplated hereby.



(f) Litigation. There is no action, suit, proceeding or investigation pending or, to
the Company’s knowledge, currently threatened in writing against the Company or any of its
directors and officers that questions the validity of this Agreement or the right of the Company to
enter into this Agreement or to consummate the transactions contemplated hereby. There is no
action, suit, proceeding or investigation pending or, to the Company’s knowledge, currently
threatened in writing against the Company or any subsidiary or any of their respective directors
and officers which would have, either individually or in the aggregate, a Material Adverse Effect
(as defined below).



(g) Filings. The Company has filed all forms, reports and documents required to be
filed by it with the Commission (collectively, the “Company SEC Reports”). As of the
respective dates they were filed (except if amended, updated or superseded by a filing made by the
Company with the Commission prior to the date of this Agreement, then on the date of such filing),
the Company SEC Reports complied in all material respects with the requirements of the Securities
Act or the Exchange Act, as the case may be, and the applicable rules and regulations of the
Commission thereunder.



(h) Financial Statements. The consolidated financial statements of the Company
(including any notes thereto) contained in the Disclosure Package (i) complied as to form in all
material respects with the published rules and regulations of the Commission with respect thereto,
(ii) were prepared in accordance with United States generally accepted accounting principles
(“GAAP”) applied on a consistent basis throughout the periods indicated (except as may be
indicated in the notes thereto or, in the case of unaudited financial statements, as permitted by
Form 10-Q or Form 8-K) and (iii) each presented fairly, in all material respects, the consolidated
financial position of the Company and its consolidated subsidiaries as of the respective dates
thereof and for the respective periods indicated therein, except as otherwise noted therein
(subject, in the case of unaudited financial statements, to normal and recurring year-end
adjustments which were not and are not expected, individually or in the aggregate, to have a
Material Adverse Effect). The Company has not had any material disagreement with any of its
auditors regarding accounting matters or policies during any of its past three full fiscal years or
during the current fiscal year-to-date, which disagreements would require disclosure to the
Company’s Board of Directors.



(i) Certain Fees. No brokerage or finder’s fees or commissions are or will be payable
by the Company or any subsidiary of the Company to any broker, financial advisor or consultant,
finder, placement agent, investment banker, bank or other person with respect to the transactions
contemplated by this Agreement, other than those payable to Northland Securities, Inc. (the
“Placement Agent”). The Investors shall have no obligation with respect to any fees or with
respect to any claims made by or on behalf of other persons for fees of a type contemplated in this
Section that may be due in connection with the transactions contemplated by this Agreement.



(j) Acknowledgment Regarding Investors’ Purchase of Securities. The Company
acknowledges and agrees that each of the Investors is acting solely in the capacity of an arm’s
length purchaser with respect to this Agreement and the transactions contemplated hereby. The
Company further acknowledges that no Investor is acting as a financial advisor or fiduciary of the
Company (or in any similar capacity) with respect to this Agreement and the transactions
contemplated hereby and any advice given by any Investor or any of their respective representatives
or agents in connection with this Agreement and the transactions contemplated hereby is merely
incidental to the Investors’ purchase of the Securities. The Company further represents to each
Investor that the Company’s decision to enter into this Agreement has been based solely on the
independent evaluation of the transactions contemplated hereby by the Company and its
representatives.



(k) Acknowledgment Regarding Investors’ Trading Activity. Anything in this Agreement
or elsewhere herein to the contrary notwithstanding (except for Sections 6(a)(iv) and 12 hereof),
it is understood and acknowledged by the Company that: (i) none of the Investors has been asked by
the Company to agree, nor has any Investor agreed, to desist from purchasing or selling, long
and/or short, securities of the Company, or “derivative” securities based on securities issued by
the Company or to hold the Securities for any specified term, (ii) past or future open market or
other transactions by any Investor, specifically including, without limitation, short sales or
“derivative” transactions, before or after the Closing, may negatively impact the market price of
the Company’s publicly-traded securities, (iii) any Investor, and counter-parties in “derivative”
transactions to which any such Investor is a party, directly or indirectly, may presently have a
“short” position in the Common Stock and (iv) each Investor shall not be deemed to have any
affiliation with or control over any arm’s length counter-party in any “derivative” transaction.
The Company further understands and acknowledges that (y) one or more Investors may engage in
hedging activities at various times during the period that the Securities are outstanding, and (z)
such hedging activities (if any) could reduce the value of the existing stockholders’ equity
interests in the Company at and after the time that the hedging activities are being conducted. 
The Company acknowledges that such aforementioned hedging activities do not constitute a breach of
this Agreement.



6. Representations and Warranties of the Investors. As of the date hereof and as of
the Closing, each of the Investors, severally and not jointly, hereby represents and warrants to
and covenants with the Company that:



(a) General.



(i) The Investor has all requisite authority to purchase the Securities, enter into this
Agreement and to perform all the obligations required to be performed by the Investor hereunder,
and such purchase will not contravene any law, rule or regulation binding on the Investor or any
investment guideline or restriction applicable to the Investor.



(ii) The Investor is acquiring the Securities for its own account and is not acquiring the
Securities as a nominee or agent or otherwise for any other person.



(iii) The Investor will comply with all applicable laws and regulations the Investor is
required to comply with in connection with the purchase or sale of Securities in effect in any
jurisdiction in which the Investor purchases or sells Securities and obtain any consent, approval
or permission the Investor is required to obtain in connection with such purchase or sale of
Securities under the laws and regulations of any jurisdiction to which the Investor is subject or
in which the Investor makes such purchases or sales, and the Company shall have no responsibility
therefor.



(iv) Other than consummating the transactions contemplated hereby, the Investor has not
directly or indirectly, nor has any person acting on behalf of or pursuant to any understanding
with such Investor, executed any purchases or sales, including short sales, of the securities of
the Company during the period commencing as of the time that such Investor first received a term
sheet (written or oral) from the Company or any other person representing the Company setting forth
the material terms of the transactions contemplated hereby and ending immediately prior to the
execution hereof. Notwithstanding the foregoing, in the case of an Investor that is a
multi-managed investment vehicle whereby separate portfolio managers manage separate portions of
such Investor’s assets and the portfolio managers have no direct knowledge of the investment
decisions made by the portfolio managers managing other portions of such Investor’s assets, the
representation set forth above shall only apply with respect to the portion of assets managed by
the portfolio manager that made the investment decision to purchase the Securities covered by this
Agreement. Other than to other persons party to this Agreement, such Investor has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the
existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt,
nothing contained herein shall constitute a representation or warranty, or preclude any actions,
with respect to the identification of the availability of, or securing of, available shares to
borrow in order to effect short sales or similar transactions in the future.



(b) Information Concerning the Company.



(i) The Investor understands and accepts that the purchase of the Securities involves various
risks. The Investor represents that it is able to bear a complete loss of its investment in the
Securities.



(ii) The Investor confirms that it is not relying on any communication (written or oral) of
the Company or any of its affiliates, as investment advice or as a recommendation to purchase the
Securities. It is understood that information and explanations related to the terms and conditions
of the Securities provided by the Company or any of its affiliates shall not be considered
investment advice or a recommendation to purchase the Securities, and that neither the Company nor
any of its affiliates is acting or has acted as an advisor to the Investor in deciding to invest in
the Securities. The Investor acknowledges that neither the Company nor any of its affiliates has
made any representation regarding the proper characterization of the Securities for purposes of
determining the Investor’s authority to invest in the Securities.



(iii) The Investor acknowledges that it has had the opportunity to review this Agreement
(including all exhibits and schedules hereto) and the Disclosure Package and has been afforded (A)
the opportunity to ask such questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the offering of the
Securities and the merits and risks of investing in the Securities; (B) access to information about
the Company and its financial condition, results of operations, business, properties, management
and prospects sufficient to enable it to evaluate its investment; and (C) the opportunity to obtain
such additional information that the Company possesses or can acquire without unreasonable effort
or expense that is necessary to make an informed investment decision with respect to the
investment.  The Investor acknowledges and agrees that neither the Placement Agent nor any
affiliate of the Placement Agent has provided such Investor with any information or advice with
respect to the Securities nor is such information or advice necessary or desired.  Neither the
Placement Agent nor any affiliate of the Placement Agent has made or makes any representation as to
the Company or the quality of the Securities, and the Placement Agent and any affiliate of the
Placement Agent may have acquired non-public information with respect to the Company which such
Investor agrees need not be provided to it.  In connection with the issuance of the Securities to
such Investor, neither the Placement Agent nor any of its affiliates has acted as a financial
advisor or fiduciary to such Investor.



(iv) The Investor understands that, unless the Investor notifies the Company in writing to the
contrary at or before the Closing, each of the Investor’s representations and warranties contained
in this Agreement will be deemed to have been reaffirmed and confirmed as of the Closing, taking
into account all information received by the Investor.



(v) The Investor understands that no federal or state agency has passed upon the merits or
risks of an investment in the Securities or made any finding or determination concerning the
fairness or advisability of this investment.



(vi) The Investor is not purchasing the Securities as a result of any advertisement, article,
notice or other communication regarding the Securities published in any newspaper, magazine or
similar media or broadcast over television or radio or presented at any seminar or any other
general solicitation or general advertisement.



(c) Non-reliance.



(i) The Investor represents that it is not relying on (and will not at any time rely on) any
communication (written or oral) of the Company, as investment advice or as a recommendation to
purchase the Securities, it being understood that information and explanations related to the terms
and conditions of the Securities shall not be considered investment advice or a recommendation to
purchase the Securities.



(ii) Except as expressly provided herein, the Investor confirms that the Company has not
(A) given any guarantee or representation as to the potential success, return, effect or benefit
(either legal, regulatory, tax, financial, accounting or otherwise) an of investment in the
Securities or (B) made any representation to the Investor regarding the legality of an investment
in the Securities under applicable legal investment or similar laws or regulations. In deciding to
purchase the Securities, the Investor is not relying on the advice or recommendations of the
Company and the Investor has made its own independent decision that the investment in the
Securities is suitable and appropriate for the Investor.



(d) Status of Investor.



(i) The Investor has such knowledge, sophistication, skill and experience in business,
financial and investment matters that the Investor is capable of evaluating the merits and risks of
an investment in the Securities, and has so evaluated the merits and risks of such investment.
With the assistance of the Investor’s own professional advisors, to the extent that the Investor
has deemed appropriate, the Investor has made its own legal, tax, accounting and financial
evaluation of the merits and risks of an investment in the Securities and the consequences of this
Agreement. The Investor has considered the suitability of the Securities as an investment in light
of its own circumstances and financial condition and the Investor is able to bear the risks
associated with an investment in the Securities and its authority to invest in the Securities.



(ii) At the time the Investor was offered the Securities, the Investor was, and as of the date
hereof the Investor is, and on the Closing Date, the Investor will be either (A) a “qualified
institutional buyer” as defined in Rule 144A(a) under the Securities Act or (B) an “accredited
investor” as defined in as defined in Rule 501(a) under the Securities Act, and not required to be
registered as a broker-dealer under Section 15 of the Exchange Act. The Investor agrees to furnish
any additional information reasonably requested by the Company or any of its affiliates to assure
compliance with applicable U.S. federal and State Securities Laws in connection with the purchase
and sale of the Securities.



(e) Restrictions on Transfer or Sale of Securities.



(i) The Investor is acquiring the Securities solely for the Investor’s own beneficial account,
for investment purposes, and not with a view to, or for resale in connection with, any distribution
of the Securities, has no present intention of distributing any of such Securities in violation of
the Securities Act or any applicable State Securities Laws and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding the distribution of
such Securities in violation of the Securities Act or any applicable State Securities Laws (this
representation and warranty not limiting such Investor’s right to sell the Securities pursuant to
the Registration Statement (as defined below) or otherwise in compliance with applicable federal
law and State Securities Laws). The Investor understands that the Securities have not been
registered under the Securities Act or any State Securities Laws by reason of specific exemptions
under the provisions thereof which depend in part upon the investment intent of the Investor and of
the other representations made by the Investor in this Agreement. The Investor understands that
the Company is relying upon the representations and agreements contained in this Agreement for the
purpose of determining whether this transaction meets the requirements for such exemptions.



(ii) The Investor understands that the Securities are “restricted securities” under applicable
federal securities laws and that the Securities Act and the rules of the Commission provide in
substance that the Investor may dispose of the Securities only pursuant to an effective
registration statement under the Securities Act or an exemption therefrom such as the exemption and
safe harbor provided under Rule 144 of the Securities Act.



(iii) The Investor agrees that the Investor will not sell, assign, pledge, give, transfer or
otherwise dispose of the Securities or any interest therein, or make any offer or attempt to do any
of the foregoing, except pursuant to a registration of the Securities under the Securities Act or
in a transaction which is exempt from the registration provisions of the Securities Act such as the
exemption and safe harbor provided under Rule 144 of the Securities Act; that the certificates
representing the Securities will bear a legend making reference to the foregoing restrictions; and
that the Company and its affiliates and transfer agent shall not be required to give effect to any
purported transfer of such Securities except upon compliance with the foregoing restrictions. The
Company acknowledges and agrees that an Investor may from time to time pledge pursuant to a bona
fide margin agreement with a registered broker-dealer or grant a security interest in some or all
of the Securities to a financial institution that is an “accredited investor” as defined in Rule
501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement and,
if required under the terms of such arrangement, such Purchaser may transfer pledged or secured
Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject to
approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or
pledgor shall be required in connection therewith. Further, no notice shall be required of such
pledge.



7. Conditions to Obligations of the Investor and the Company. The obligations of the
Investor to purchase and pay for the Securities and of the Company to sell the Securities are
subject to the satisfaction at or prior to the Closing of the following conditions precedent:



(a) The representations and warranties of the Company contained in Section 5 hereof and of the
Investors contained in Section 6 hereof shall be true and correct as of the Closing in all respects
with the same effect as though such representations and warranties had been made as of the Closing.



(b) No statute, rule, regulation, executive order, decree, ruling or injunction shall have
been enacted, entered or promulgated by any court or governmental authority of competent
jurisdiction which prohibits the consummation of any of the transactions contemplated by this
Agreement.



(c) There shall not have been a Material Adverse Effect. For purposes of this Agreement, a
“Material Adverse Effect” means any event, change, violation, inaccuracy, circumstance or
effect that, individually or in the aggregate, has had or would reasonably be expected to have a
material adverse effect on, or result in a material adverse change in, as the case may be, the
business, operations, properties, condition (financial or otherwise), assets, liabilities or
results of operations of the Company, except for any such events, changes, violations,
inaccuracies, circumstances or effects resulting from (i) any changes in general economic,
regulatory or political conditions, (ii) any changes or events generally affecting the industry in
which the Company operates, (iii) any adverse change or effect that is caused by the announcement
of the transactions contemplated by this Agreement, or (iv) any violations or other matters arising
from changes in law or GAAP; unless in any such instance such change or effect described in (i),
(ii) or (iv) impacts the Company in a materially disproportionate manner relative to a
preponderance of the other similar entities impacted by such change.



8. Covenants of the Company.



(a) The Company hereby agrees to use reasonable best efforts (i) to maintain the listing or
quotation of the Common Stock on the Nasdaq Capital Market (or such other trading market that the
Company applies to have the Common Stock traded on) and (ii) as promptly as practicable following
the Closing Date, to secure the listing of the Common Shares on such trading market.



(b) The Company shall file a Current Report on Form 8-K and press release disclosing the
material terms of the transactions contemplated hereby. The Company shall, prior to such filing,
furnish to the Investors for review a copy of such Form 8-K and press release. Such press release
will be issued prior to market open on the second business day following the date of this Agreement
and the Form 8-K will be filed within the time prescribed by the regulations of the Commission.



(c) The Company shall use its reasonable best efforts to timely file (or obtain extensions in
respect thereof and file within the applicable grace period) all reports required to be filed by
the Company after the date hereof pursuant to the Exchange Act. For so long as any Investor holds
unregistered Securities, if the Company is not required to file reports pursuant to the Exchange
Act, it will prepare and furnish to such Investor and make publicly available in accordance with
Rule 144(c) such information as is required for such Investor to sell the Common Shares under Rule
144.



9. Registration Rights.



(a) Shelf Registration.



(i) The Company shall use commercially reasonable efforts to file no later than 30 days after
the Closing Date (the “Filing Date”) a registration statement covering the resale of the
Common Shares (the “Registrable Shares”) with the Commission for an offering to be made on
a continuous basis pursuant to Rule 415, or if Rule 415 is not available for offers and sales of
the Registrable Shares, by such other means of distribution of Registrable Shares as the Investors
may reasonably specify (the “Initial Registration Statement”).



(ii) The Company shall use commercially reasonable efforts to effect the registration
(including a declaration of effectiveness thereof by the Commission) and applicable qualifications
or compliances (including, without limitation, the execution of any required undertaking to file
post-effective amendments, appropriate qualifications or exemptions under applicable State
Securities Laws and appropriate compliance with applicable securities laws, requirements or
regulations) as promptly as practicable after the filing of the Initial Registration Statement, but
in any event prior to the date which is 90 days after the Filing Date (the “Effectiveness
Date”). The Company shall, within two (2) business days after the Effectiveness Date, file a
final prospectus with the Commission as required by Rule 424 under the Securities Act.



(iii) In the event that all of the Registrable Shares cannot, as a result of the rules and
regulations of the Commission, be registered for resale as a secondary offering on a single
registration statement, the Company agrees to promptly (i) inform the Investors thereof, (ii) use
commercially reasonable efforts to file amendments to the Initial Registration Statement as
required by the Commission and/or (iii) withdraw the Initial Registration Statement and use
commercially reasonable efforts to file a new registration statement (a “New Registration
Statement”), in either case covering the maximum number of Registrable Shares permitted to be
registered by the Commission, on Form S-3 or, if the Company is ineligible to register for resale
the Registrable Shares on Form S-3, such other form available to register for resale the
Registrable Shares as a secondary offering; provided, however, that prior to filing such amendment
or New Registration Statement, the Company shall be obligated to use commercially reasonable
efforts to advocate with the Commission for the registration of all of the Registrable Shares. In
the event the Company amends the Initial Registration Statement or files a New Registration
Statement, as the case may be, under clauses (ii) or (iii) above, the Company will use commercially
reasonable efforts to file with the Commission, as promptly as practicable, one or more
registration statements on Form S-3 or, if the Company is ineligible to register for resale the
Registrable Shares on Form S-3, such other form available to register for resale those Registrable
Shares that were not registered for resale on the Initial Registration Statement, as amended, or
the New Registration Statement (the “Remainder Registration Statements” and, collectively
with the Initial Registration Statement and the New Registration Statement, the “Registration
Statements”).



(iv) Notwithstanding any other provision of this Agreement, if the Commission limits the
number of Registrable Shares permitted to be registered on a particular Registration Statement (and
notwithstanding that the Company used diligent efforts to advocate with the Commission for the
registration of all or a greater number of Registrable Shares), unless otherwise directed in
writing by a Holder as to its Registrable Shares, the number of Registrable Shares to be registered
on such Registration Statement will be reduced as follows:




	 	(1)	 	First, the Company shall reduce or eliminate
any securities to be included other than Registrable Shares;






	 	(2)	 	Second, the Company shall reduce Registrable
Shares (applied to the Investors on a pro rata basis based on the total
number of unregistered Registrable Shares held by such Investors).





In the event of a cutback hereunder, the Company shall give the Investors at least three (3)
business days prior written notice along with the calculations as to such Investor’s allotment.



(b) All expenses incurred by the Company in complying with Section 9(a) hereof, including,
without limitation, all registration, qualification and filing fees, printing expenses, escrow
fees, fees and expenses of counsel for the Company, blue sky fees and expenses and the expense of
any special audits incident to or required by any such registration (but excluding the fees of
legal counsel for any Investor or holder of Registrable Shares) shall be borne by the Company. All
selling commissions applicable to the sale of Registrable Shares and all fees and expenses of legal
counsel for any Investor or holder of Registrable Shares related to the registration and sale of
the Registrable Shares shall be borne by the Investor or holder of Registrable Shares incurring
such commissions, fees or expenses.



(c) In the case of the registration, qualification, exemption or compliance effected by the
Company pursuant to this Agreement, the Company shall, upon reasonable request, inform the
Investors as to the status of such registration, qualification, exemption and compliance. At its
expense the Company shall:



(i) except for such times as the Company is permitted hereunder to suspend the use of the
prospectus forming part of a Registration Statement, use its commercially reasonable efforts to
keep such registration, and any qualification, exemption or compliance under State Securities Laws
which the Company determines to obtain, continuously effective with respect to the Investors, and
to keep the applicable Registration Statement effective until the later of (A) two (2) years from
the Closing Date, (B) the date by which all the Registrable Shares may be sold without volume or
manner of sale restrictions which may be applicable to affiliates under Rule 144, or (C) the date
on which all of the Registrable Shares are sold. The period of time during which the Company is
required hereunder to keep a Registration Statement effective is referred to herein as the
“Registration Period”;



(ii) advise the Investors within five (5) business days:




	 	(1)	 	when a Registration Statement or any amendment
thereto has been filed with the Commission and when such Registration
Statement or any post-effective amendment thereto has become effective;






	 	(2)	 	of any request by the Commission for amendments
or supplements to any Registration Statement or the prospectus included
therein or for additional information;






	 	(3)	 	of the issuance by the Commission of any stop
order suspending the effectiveness of any Registration Statement or, to
the Company’s knowledge, the initiation of any proceedings for such
purpose;






	 	(4)	 	of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Registrable Shares included therein for sale in any jurisdiction or, to
the Company’s knowledge, the initiation or threatening of any
proceeding for such purpose; and






	 	(5)	 	subject to the provisions this Agreement, of
the occurrence of any event that requires the making of any changes in
any Registration Statement or prospectus so that, as of such date, the
statements therein do not include any untrue statement of a material
fact and do not omit to state a material fact required to be stated
therein or necessary to make the statements therein (in the case of a
prospectus, in the light of the circumstances under which they were
made) not misleading;





(iii) use its commercially reasonable efforts to obtain the withdrawal of any order suspending
the effectiveness of any Registration Statement as soon as reasonably practicable;



(iv) if an Investor so requests in writing, promptly furnish to the Investor, without charge,
at least one copy of each Registration Statement and each post-effective amendment thereto,
including financial statements and schedules, and, if explicitly requested, all exhibits in the
form filed with the Commission;



(v) during the Registration Period, promptly deliver to each Investor, without charge, as many
copies of each prospectus included in a Registration Statement and any amendment or supplement
thereto as the Investor may reasonably request in writing; and the Company consents to the use,
consistent with the provisions hereof, of the prospectus or any amendment or supplement thereto by
the Investor of Registrable Shares in connection with the offering and sale of the Registrable
Shares covered by a prospectus or any amendment or supplement thereto;



(vi) during the Registration Period, if an Investor so requests in writing, deliver to the
Investor, without charge, (i) one copy of the following documents, other than those documents
available via the Commission’s EDGAR system: (A) its annual report on Form 10-K (or similar form),
(B) its definitive proxy statement with respect to its annual meeting of stockholders, (C) each of
its quarterly reports on Form 10-Q, and (D) a copy of each full Registration Statement (the
foregoing, in each case, excluding exhibits); and (ii) if explicitly requested, all exhibits
excluded by the parenthetical to the immediately preceding clause (D); provided, that the Company
shall have no obligation to provide any document pursuant to this clause that is available on the
Commission’s EDGAR system;



(vii) prior to any public offering of Registrable Shares pursuant to any Registration
Statement, promptly take such actions as may be necessary to register or qualify or obtain an
exemption for offer and sale under State Securities Laws of such United States jurisdictions as an
Investor reasonably request in writing; provided that the Company shall not for any such purpose be
required to qualify generally to transact business as a foreign corporation in any jurisdiction
where it is not so qualified or to consent to general service of process in any such jurisdiction,
and do any and all other acts or things reasonably necessary or advisable to enable the offer and
sale in such jurisdictions of the Registrable Shares covered by any such Registration Statement;



(viii) upon the occurrence of any event contemplated by Section 9(c)(ii)(5) above, except for
such times as the Company is permitted hereunder to suspend the use of a prospectus forming part of
a Registration Statement, and taking into account the Company’s good faith assessment of any
adverse consequences to the Company and its stockholders of the premature disclosure of such event,
the Company shall use its commercially reasonable efforts to prepare a post-effective amendment to
such Registration Statement or a supplement to the related prospectus, or file any other required
document so that, as thereafter delivered to purchasers of the Registrable Shares included therein,
such prospectus will not include any untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading;



(ix) otherwise use its commercially reasonable efforts to comply in all material respects with
all applicable rules and regulations of the Commission which could affect the sale of the
Registrable Shares;



(x) use its commercially reasonable efforts to cause all Registrable Shares to be listed on
each securities exchange or market, if any, on which equity securities issued by the Company have
been listed; and



(xi) cooperate with any broker-dealer through which an Investor proposes to resell its
Registrable Shares in such broker-dealer’s filing with the FINRA Corporate Financing Department
pursuant to FINRA Rule 5110, as requested by any such Investor.



(d) No Investor shall have the right to take any action to restrain, enjoin or otherwise delay
any registration pursuant to Section 9(a) hereof as a result of any controversy that may arise with
respect to the interpretation or implementation of this Agreement.



(e) Indemnification.



(i) To the extent permitted by law, the Company shall indemnify each Investor and each person
controlling such Investor within the meaning of Section 15 of the Securities Act, with respect to
which any registration that has been effected pursuant to this Agreement, against all claims,
losses, damages and liabilities (or action in respect thereof), including any of the foregoing
incurred in settlement of any litigation, commenced or threatened (subject to Section 9(e)(iii)
below), arising out of or based on any untrue statement (or alleged untrue statement) of a material
fact contained in any Registration Statement, prospectus, any amendment or supplement thereof, or
other document incident to any registration, qualification or compliance or based on any omission
(or alleged omission) to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, in light of the circumstances in which they were
made, or any violation by the Company of any rule or regulation promulgated by the Securities Act
applicable to the Company and relating to any action or inaction required of the Company in
connection with any such registration, qualification or compliance, and will reimburse each
Investor and each person controlling such Investor, for reasonable legal and other out-of-pocket
expenses reasonably incurred in connection with investigating or defending any such claim, loss,
damage, liability or action as incurred; provided that the Company will not be liable in any such
case to the extent that any untrue statement or omission or allegation thereof is made in reliance
upon and in conformity with written information furnished to the Company by or on behalf of such
Investor for use in preparation of any Registration Statement, prospectus, amendment or supplement;
provided however, that the Company will not be liable in any such case where the claim, loss,
damage or liability arises out of the failure of such Investor to comply with the covenants and
agreements contained in this Agreement respecting sales of Registrable Shares, and except that the
foregoing indemnity agreement is subject to the condition that, insofar as it relates to any such
untrue statement or alleged untrue statement or omission or alleged omission made in any
preliminary prospectus but eliminated or remedied in the amended prospectus on file with the
Commission at the time any Registration Statement becomes effective or in an amended prospectus
filed with the Commission pursuant to Rule 424(b) which meets the requirements of Section 10(a) of
the Securities Act (each, a “Final Prospectus”), such indemnity shall not inure to the
benefit of the Investor or any such controlling person, if a copy of a Final Prospectus furnished
by the Company to the Investor for delivery was not furnished to the person or entity asserting the
loss, liability, claim or damage at or prior to the time such furnishing is required by the
Securities Act and a Final Prospectus would have cured the defect giving rise to such loss,
liability, claim or damage.



(ii) Each Investor will, severally and not jointly, indemnify the Company, each of its
directors and officers, and each person who controls the Company within the meaning of Section 15
of the Securities Act, against all claims, losses, damages and liabilities (or actions in respect
thereof), including any of the foregoing incurred in settlement of any litigation, commenced or
threatened (subject to Section 9(e)(iii) below), arising out of or based on any untrue statement
(or alleged untrue statement) of a material fact contained in any Registration Statement,
prospectus, any amendment or supplement thereof, or other document incident to any such
registration, or based on any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, in light
of the circumstances in which they were made, and will reimburse the Company, such directors and
officers, and each person controlling the Company for reasonable legal and any other expenses
reasonably incurred in connection with investigating or defending any such claim, loss, damage,
liability or action as incurred, in each case to the extent, but only to the extent, that such
untrue statement or omission or allegation thereof is made in reliance upon and in conformity with
written information furnished to the Company by or on behalf of such Investor for use in
preparation of any Registration Statement, prospectus, amendment or supplement. Notwithstanding the
foregoing, the maximum liability of the Investor under this section shall be limited to the
proceeds received by the Investor from the sale of Registrable Shares.



(iii) Each party entitled to indemnification under this Section 9(e) (the “Indemnified
Party”) shall give notice to the party required to provide indemnification (the
“Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any
claim as to which indemnity may be sought, and shall permit the Indemnifying Party (at its expense)
to assume the defense of any such claim or any litigation resulting therefrom, provided that
counsel for the Indemnifying Party, who shall conduct the defense of such claim or litigation,
shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld,
conditioned or delayed), and the Indemnified Party may participate in such defense at such
Indemnified Party’s expense, and provided further that the failure of any Indemnified Party to give
notice as provided herein shall not relieve the Indemnifying Party of its obligations under this
Agreement, unless such failure is materially prejudicial to the Indemnifying Party in defending
such claim or litigation. An Indemnifying Party shall not be liable for any settlement of an action
or claim effected without its written consent (which consent shall not be unreasonably withheld,
conditioned or delayed). No Indemnifying Party, in its defense of any such claim or litigation,
shall, except with the consent of each Indemnified Party (which consent shall note be unreasonably
withheld, conditioned or delayed), consent to entry of any judgment or enter into any settlement
which does not include as an unconditional term thereof the giving by the claimant or plaintiff to
such Indemnified Party of a release from all liability in respect to such claim or litigation.



(iv) If the indemnification provided for in this Section 9(e) is held by a court of competent
jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim,
damage or expense referred to therein, then the Indemnifying Party, in lieu of indemnifying such
Indemnified Party thereunder, shall contribute to the amount paid or payable by such Indemnified
Party as a result of such loss, liability, claim, damage or expense in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the
Indemnified Party on the other in connection with the statements or omissions which resulted in
such loss, liability, claim, damage or expense as well as any other relevant equitable
considerations. The relative fault of the Indemnifying Party and of the Indemnified Party shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission to state a material fact relates to information supplied by the
Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission. The parties hereto
agree that it would not be just and equitable if contribution pursuant to this Section 9(e) were
determined by pro rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 9(e), no Investor shall be required to contribute
pursuant to this Section 9(e), in the aggregate, any amount in excess of the amount by which the
net proceeds actually received by such Investor from the sale of the Registrable Shares exceeds the
amount of any damages that such Investor has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission.



(f) Disclosure, Etc.



(i) Not less than five (5) business days prior to the filing of each Registration Statement,
the Company shall furnish to each Investor copies of such Registration Statement and all exhibits
being filed therewith, and shall consider in good faith the reasonable comments of such Investor.
Notwithstanding the foregoing sentence, the Company shall not be obligated to provide the Investors
advance copies of any universal shelf registration statement registering securities in addition to
those required hereunder.



Each Investor agrees that, upon receipt of any notice from the Company of the happening of any
event requiring the preparation of a supplement or amendment to a prospectus relating to
Registrable Shares so that, as thereafter delivered to the Investor, such prospectus shall not
contain an untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, the Investor will
forthwith discontinue disposition of Registrable Shares pursuant to a Registration Statement and
prospectus contemplated by Section 9(a) until its receipt of copies of the supplemented or amended
prospectus from the Company and, if so directed by the Company, the Investor shall deliver to the
Company all copies, other than permanent file copies then in the Investor’s possession, of the
prospectus covering such Registrable Shares current at the time of receipt of such notice.



(ii) Each Investor shall suspend, upon request of the Company, any disposition of Registrable
Shares pursuant to any Registration Statement and prospectus contemplated by Section 9(a) during
the occurrence or existence of any pending corporate development with respect to the Company that
the Board of Directors of the Company believes in good faith may be material and that, in the
determination of the Board of Directors of the Company, makes it not in the best interest of the
Company to allow continued availability of a Registration Statement or prospectus. The Company
shall be entitled to exercise its right under this paragraph to suspend the availability of a
Registration Statement and prospectus for a period not to exceed 60 calendar days (which need not
be consecutive days) in any 12-month period.



(iii) Upon the occurrence of any event contemplated by Section 3(d), as promptly as reasonably
possible under the circumstances taking into account the Company’s good faith assessment of any
adverse consequences to the Company and its stockholders of the premature disclosure of such event,
prepare a supplement or amendment, including a post-effective amendment, to a Registration
Statement or a supplement to the related prospectus or any document incorporated or deemed to be
incorporated therein by reference, and file any other required document so that, as thereafter
delivered, neither a Registration Statement nor such prospectus will contain an untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading.
The Company will use its best efforts to ensure that the use of the prospectus may be resumed as
promptly as is practicable. The Company shall be entitled to exercise its right under this Section
9(f) to suspend the availability of a Registration Statement and prospectus for a period not to
exceed 60 calendar days (which need not be consecutive days) in any 12-month period.



(iv) As a condition to the inclusion of its Registrable Shares, the Investor shall furnish to
the Company such information regarding the Investor and the distribution proposed by the Investor
as the Company may reasonably request in writing, including completing a Registration Statement
Questionnaire in the form provided by the Company, or as shall be required in connection with any
registration referred to in this Section 9.



(v) Each Investor hereby covenants with the Company (i) not to make any sale of the
Registrable Shares without effectively causing the prospectus delivery requirements under the
Securities Act to be satisfied (unless such sale is pursuant to Rule 144).



(vi) Each Investor agrees not to take any action with respect to any distribution deemed to be
made pursuant to a Registration Statement which would constitute a violation of Regulation M under
the Exchange Act or any other applicable rule, regulation or law.



(vii) At the end of the Registration Period, each Investor shall discontinue sales of shares
pursuant to any Registration Statement upon receipt of notice from the Company of its intention to
remove from registration the shares covered by any such Registration Statement which remain unsold,
and the Investor shall notify the Company of the number of shares registered which remain unsold
immediately upon receipt of such notice from the Company.



(g) The rights to cause the Company to register Registrable Shares granted to the Investors by
the Company under Section 9(a) may be assigned by an Investor in connection with a transfer by such
Investor of all or a portion of its Registrable Shares, provided, however, that the Investor must
give the Company at least 10 days prior notice of such transfer for such transfer to be reflected
in the Registration Statement or any amendment thereto and that (i) such transfer may otherwise be
effected in accordance with applicable securities laws; (ii) such Investor gives prior written
notice to the Company at least 10 days prior to the transfer; and (iii) such transferee agrees to
comply with the terms and provisions of this Agreement, and such transfer is otherwise in
compliance with this Agreement. Except as specifically permitted by this Section 9(g), the rights
of an Investor with respect to Registrable Shares as set out herein shall not be transferable to
any other person, and any attempted transfer shall cause all rights of such Investor therein to be
forfeited.



(h) The rights of an Investor under any provision of this Section 9 may be waived (either
generally or in a particular instance, either retroactively or prospectively and either for a
specified period of time or indefinitely) or amended by an instrument in writing signed by such
Investor.



10. Legend. At the Closing, the certificates representing the Common Shares sold
pursuant to this Agreement will be imprinted with a legend in substantially the following form:




THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT,
THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR
OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE
501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.



provided, that the Company shall (a) cause such legend to be promptly removed once a registration
statement covering the resale of the Securities is effective under the Securities Act or if such
legend is no longer required under applicable law and (b) in connection with any sale under Rule
144, promptly (and in any event within five (5) business days after receipt by the Company of a
request therefor accompanied by all reasonably required documentation) deliver, or cause to be
delivered, to the Investors new certificate(s) representing the Securities that are free from all
restrictive and other legends or, at the request of an Investor, via DWAC transfer to such
Investor’s account.



11. Replacement of Securities. If any certificate or instrument evidencing any
Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued
in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in
lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of
evidence reasonably satisfactory to the Company of such loss, theft or destruction. The applicant
for a new certificate or instrument under such circumstances shall also pay any reasonable
third-party costs (including customary indemnity) associated with the issuance of such replacement
Securities.



12. Certain Transactions. Each Investor, severally and not jointly, covenants that
neither it, nor any affiliate acting on its behalf or pursuant to any understanding with it will
execute any purchases or sales, including short sales, of any of the Company’s securities during
the period commencing with the execution of this Agreement and ending at such time that the
transactions contemplated by this Agreement are first publicly announced pursuant to the initial
press release as described in Section 8(b). 



13. Expenses. The parties hereto shall pay their own costs and expenses in connection
herewith.



14. Waiver, Amendment. Neither this Agreement nor any provisions hereof shall be
amended, waived, discharged or terminated except by an instrument in writing signed, in the case of
an amendment, by the Company and Investors holding not less than a majority of the Registrable
Shares affected by such amendment or, in the case of a waiver, discharge or termination, by the
party against whom such waiver, discharge or termination is sought.



15. Assignability. This Agreement shall be binding upon and inure to the benefit of
the parties and their successors and permitted assigns. The Company may not assign this Agreement
or any rights or obligations hereunder without the prior written consent of the Investors holding
not less than a majority of the Registrable Shares. Any Investor may assign any or all of its
rights under this Agreement to any person to whom such Investor assigns or transfers any
Securities; provided that such transferee agrees in writing to be bound, with respect to the
transferred Securities, by the provisions of this Agreement that apply to the “Investors.”



16. Waiver of Jury Trial. EACH OF THE COMPANY AND THE INVESTORS IRREVOCABLY WAIVES
ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.



17. Submission to Jurisdiction. With respect to any suit, action or proceeding
relating to any offers, purchases or sales of the Securities by the Investors
(“Proceedings”), each of the Company and the Investors irrevocably submits to the
jurisdiction of the federal or state courts located in the State of Delaware, which submission
shall be exclusive unless none of such courts has lawful jurisdiction over such Proceedings.



18. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware.



19. Section and Other Headings. The section and other headings contained in this
Agreement are for reference purposes only and shall not affect the meaning or interpretation of
this Agreement.



20. Counterparts. This Agreement may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed to be an original and all of which together
shall be deemed to be one and the same agreement.



21. Notices. All notices and other communications provided for herein shall be in
writing and shall be deemed to have been duly given if delivered personally or sent by registered
or certified mail, return receipt requested, postage prepaid to the following addresses (or such
other address as either party shall have specified by notice in writing to the other):



	 	 	 
	If to the Company:
	 	Biolase, Inc.

4 Cromwell

Irvine, California 92618

Facsimile: (949) 365-4944

E-mail: ffurry@biolase.net

Attention: Chief Financial Officer

	 	 	With a copy (which shall not constitute notice) to:

	 	 	Sidley Austin LLP

One South Dearborn

Chicago, Illinois 60603

Facsimile: 312-853-7036

E-mail: bflaming@sidley.com

	 	 	 

	 	 	mgordon@sidley.com

	 	 	 

	 	 	Attention: Beth E. Flaming

Michael A. Gordon

	If to any Investor:
	 	The address specified in Schedule I for notices to such

Investor







22. Binding Effect. The provisions of this Agreement shall be binding upon and accrue
to the benefit of the parties hereto and their respective heirs, legal representatives, successors
and assigns.



23. Survival. All representations, warranties and covenants contained in this
Agreement shall survive the Closing.



24. Notification of Changes. Each of the Company and the Investors hereby covenants
and agrees to notify the other upon the occurrence of any event prior to the Closing which would
cause any representation, warranty, or covenant of such party contained in this Agreement to be
false or incorrect.



25. Severability. If any term or provision of this Agreement is invalid, illegal or
unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other term or provision of this Agreement or invalidate or render unenforceable such term or
provision in any other jurisdiction.



26. Independent Nature of Investors’ Obligations and Rights. The obligations of each
Investor under this Agreement are several and not joint with the obligations of any other Investor,
and no Investor shall be responsible in any way for the performance or non-performance of the
obligations of any other Investor under this Agreement. Nothing contained herein, and no action
taken by any Investor pursuant hereto, shall be deemed to constitute the Investors as a
partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Investors are in any way acting in concert or as a group with respect to such obligations
or the transactions contemplated hereby. Each Investor shall be entitled to independently protect
and enforce its rights, including, without limitation, the rights arising out of this Agreement,
and it shall not be necessary for any other Investor to be joined as an additional party in any
proceeding for such purpose. Each Investor has been represented by its own separate legal counsel
in its review and negotiation of this Agreement (including the exhibits and schedules hereto). For
reasons of administrative convenience only, each Investor and its respective counsel have chosen to
communicate with the Company through Ellenoff Grossman & Schole LLP (“EGS”). EGS does not
represent any of the Investors and only represents the Placement Agent. Except as expressly
contemplated by this Agreement, the Company has elected to provide all Investors with the same
terms and Agreement for the convenience of the Company and not because it was required or requested
to do so by any of the Investors.



[SIGNATURE PAGE FOLLOWS]




IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above.




BIOLASE, INC.




By: /s/ Frederick D. Furry      

Name: Frederick D. Furry

Title: Chief Financial Officer




IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above.




/s/ Alexander K. Arrow      




	 	 	Alexander K. Arrow





IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above.




PAUL AND CAROLYN CLARK REVOCABLE TRUST OF 2009




By: /s/ Paul N. Clark      

Name: Paul N. Clark

Title: Trustee




IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above.




/s/ Frederick D. Furry      



Frederick D. FurryIN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed by their respective authorized signatories as of the date first indicated
above.




/s/ Jeffrey M. Nugent      




	 	 	Jeffrey M. Nugent





IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above.




JACK W. SCHULER LIVING TRUST




By: /s/ Jack Schuler      

Name: Jack Schuler

Title: Trustee




IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above.




BIRCHVIEW FUND, LLC




By: /s/ Matthew Strobeck       

Name: Matthew Strobeck

Title: Chief Executive Officer




IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above.




ORACLE PARTNERS, L.P.




By: /s/ Aileen Wiate       

Name: Aileen Wiate

Title: Authorized Signatory





ORACLE INSTITUTIONAL PARTNERS, L.P.




By: /s/ Aileen Wiate       

Name: Aileen Wiate

Title: Authorized Signatory





ORACLE TEN FUND MASTER, L.P.




By: /s/ Aileen Wiate       

Name: Aileen Wiate

Title: Authorized Signatory




SCHEDULE I

ALLOCATION OF SECURITIES




	 	 	 	 	 	 	 	 	 
	 	 	Number of	 	 
	Investor’s Name and Notice Address	 	Common Shares	 	Purchase Price
	Alexander K. Arrow
	 		7,812		 	$	14,999.04	
	 
	 	 	 	 	 	 	 	 
	Frederick D. Furry
	 		13,020		 	$	24,998.40	
	 
	 	 	 	 	 	 	 	 
	Jeffrey M. Nugent
	 		52,083		 	$	99,999.36	
	 
	 	 	 	 	 	 	 	 
	Birchview Fund, LLC
	 		781,250		 	$	1,500,000	
	 
	 	 	 	 	 	 	 	 
	Jack W. Schuler Living Trust
	 		2,604,166		 	$	4,999,998.72	
	 
	 	 	 	 	 	 	 	 
	Paul and Carolyn Clark Revocable Trust of
	 		520,833		 	$	999,999.36	
	2009
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Oracle Institutional Partners, L.P.
	 		260,756		 	$	500,651.52	
	 
	 	 	 	 	 	 	 	 
	Oracle Ten Fund Master, L.P.
	 		369,044		 	$	708,564.48	
	 
	 	 	 	 	 	 	 	 
	Oracle Partners, L.P.
	 		1,641,036		 	$	3,150,789.12	
	 
	 	 	 	 	 	 	 	 
	TOTAL
	 		6,250,000		 	$	12,000,000.00