Document:

Exhibit 4.5

 

2044
Senior Note

 

No. R-1

	
        CUSIP NO. 075896 AC4

        ISIN NO. US075896AC47
	 	PRINCIPAL AMOUNT

 

$900,000,000

 

Bed
Bath & Beyond Inc.

 

5.165% SENIOR NOTES DUE 2044

 

THIS SECURITY IS A
GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR
A NOMINEE OF THE DEPOSITARY, WHICH SHALL BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS
SECURITY FOR ALL PURPOSES.

 

UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC") TO THE COMPANY
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, OR BY A NOMINEE
OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

 

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Bed Bath &
Beyond Inc., a New York corporation (the "Company", which term shall include any successor under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the
principal sum of Nine  Hundred Million Dollars ($900,000,000) on August 1, 2044, and to pay interest thereon from July 17,
2014 or from the most recent interest payment date on which interest has been paid or duly provided for, semi-annually in
arrears on February 1 and August 1 (each, an "Interest Payment Date") of each year (or if such date is not a
Business Day, on the next Business Day thereafter; no interest will accrue on such payment for the period from and after such
Interest Payment Date to the date of such payment on the next succeeding Business Day), commencing February 1, 2015, at the
rate of 5.165% per annum, until the entire principal amount hereof is paid or duly provided for. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Holder
in whose name this Note (or one or more predecessor Notes) is registered at the close of business on the Record Date for such
interest, which shall be the date that is 15 calendar days prior to such Interest Payment Date, whether or not a Business
Day. Any such interest not so punctually paid or duly provided for, on any Interest Payment Date shall forthwith cease to be
payable to the Holder on such Record Date, and may either be paid to the Holder in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest
to be fixed by the Company, notice whereof shall be given to Holders of Notes not less than 10 calendar days prior to such
Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all
as more fully provided in the Indenture. Interest will be computed on the basis of a 360-day year of twelve 30-day
months. Payments of principal, premium, if any, and interest in respect of this Note will be made by the Company in
immediately available funds.

 

Payment of the principal
of and interest on this Note shall be payable at the Corporate Trust Office of The Bank of New York Mellon, located at 101 Barclay
Street, Floor 7W, New York, New York 10286, or at such other office or agency of the Company maintained for that purpose in The
City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment
of public and private debts; provided, however, that, at the option of the Company, interest may be paid by check mailed to
the address of the Person entitled thereto as such address shall appear on the Register or by wire transfer to an account designated
by the Holder; and, provided, further, that so long as this Note is registered in the name of DTC or its nominee, principal and
interest payments will be paid to DTC or its nominee, as the Holder, by wire transfer in same-day funds.

 

Reference is hereby
made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have
the same effect as if set forth at this place.

 

Unless the certificate
of authentication hereon has been executed by the Trustee by manual signature of one of its authorized signatories, this Note shall
not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

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IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed this 17th day of July, 2014.

 

	 	Bed Bath & Beyond Inc.,
	 	a New York corporation
	 	 	 
	 	By:	 	 
	 	Name:	Susan E. Lattmann
	 	Title:	Chief Financial Officer and Treasurer

 

[Signature Page to Global Note]

 

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TRUSTEE'S CERTIFICATE OF AUTHENTICATION:

 

This is one of the
Notes of the series designated herein referred to in the within-mentioned Indenture.

 

	 	The Bank of New York Mellon,	 
	 	as Trustee	 
	 	 	 	 
	 	By:	 	 
	 	Authorized Signatory
	 	 
	 	Dated:  July 17, 2014

 

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This Note is one of
a duly authorized issue of securities designated as the "5.165% Senior Notes due 2044" (herein called the "Notes")
of Bed Bath & Beyond Inc., a New York Corporation, and any of its successors and assigns (the "Company"), issued
as a series of securities under an indenture dated as of July 17, 2014 (the "Base Indenture"), as supplemented by
the First Supplemental Indenture, dated as of July 17, 2014 (the "Supplemental Indenture" and together with the Base
Indenture, the "Indenture"), each between the Company and The Bank of New York Mellon (the "Trustee," which
term includes any successor Trustee under the Indenture with respect to the Notes). Reference is hereby made for a statement of
the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the
Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of a duly authorized
series of securities of the Company originally limited (subject to exceptions provided in the Indenture) in aggregate principal
amount to $900,000,000; however, from time to time, without giving notice or seeking consent of the Holders of the Notes, the Company
may issue additional Notes of this series having the same ranking, interest rate and maturity and other terms as this
Note. All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

If an Event of Default
with respect to the Notes shall occur and be continuing, the principal of the Notes may be declared due and payable in the
manner and with the effect provided in the Indenture.

 

The Notes are not subject
to any sinking fund.

 

The
Notes may be redeemed, in whole or in part, at any time at the option of the Company at a Redemption Price equal to the greater
of: (1) 100% of the principal amount of the Notes to be redeemed, or (2) the sum of the present values of the remaining scheduled
payments of principal and interest thereon (exclusive of interest accrued to, but excluding, the Redemption Date) discounted to
the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as
defined below) plus 30 basis points, plus accrued and unpaid interest
on the amount being redeemed to, but excluding, the Redemption Date; provided, however, that if the Company redeems the Notes on
or after the date that is six months prior to their maturity date, the Redemption Price will equal 100% of the principal amount
of the Notes to be redeemed plus accrued and unpaid interest on the amount being redeemed to, but excluding, the Redemption Date;
provided, further, that installments of interest that are due and payable on any Interest Payment Dates falling on or prior to
a Redemption Date shall be payable on such Interest Payment Dates to the Holder of the Note at the close of business on the applicable
Record Dates.

 

"Treasury Rate" means,
with respect to any Redemption Date the rate per annum equal to the semi-annual equivalent yield to maturity or interpolated (on
a day count basis) of the applicable Comparable Treasury Issue, assuming a price for the applicable Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for such Redemption Date.

 

"Comparable Treasury Issue"
means the United States Treasury security or securities selected by an Independent Investment Banker as having an actual or interpolated
maturity comparable to

 

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the remaining term of the Notes that would
be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt
securities of a comparable maturity to the remaining term of such Notes.

 

"Comparable Treasury Price"
means, with respect to any Redemption Date, (A) the average of the Reference Treasury Dealer Quotations for such Redemption Date,
after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (B) if the Company is given fewer than four
such Reference Treasury Dealer Quotations, the average of all such quotations.

 

"Independent Investment Banker"
means one of the Reference Treasury Dealers appointed by the Company.

 

"Reference Treasury Dealers"
means (i) each of J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC, or their respective affiliates that are primary
U.S. Government securities dealers in The City of New York (a "Primary Treasury Dealer"), and their respective successors;
(ii) a Primary Treasury Dealer selected by Wells Fargo Securities, LLC and (iii) one other Primary Treasury Dealer selected by
the Company; provided, however, that if any of the foregoing or their affiliates shall cease to be a Primary Treasury Dealer, the
Company will substitute therefor another Primary Treasury Dealer.

 

"Reference Treasury Dealer Quotations"
means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Company, of the
bid and asked prices for the applicable Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Company by the Reference Treasury Dealers at 3:30 p.m. New York time on the third business day preceding
such Redemption Date.

 

The
Company may redeem the Notes in increments of $1,000 so long as, in the case of any Note redeemed in part, the unredeemed
principal amount thereof is $2,000 or an integral multiple of $1,000 in excess thereof.
If the Company redeems less than all of the Notes, the Trustee will, in accordance with the procedures of the Depositary, select
the Notes to be redeemed by lot or in such other manner as it deems fair and appropriate. The Company will cause notices of redemption
to be mailed by first-class mail at least 30 but not more than 60 days before the Redemption Date to each Holder of Notes to be
redeemed at its registered address or by delivery to DTC for posting through its Legal Notice System or a successor system thereof.

 

If this Note is to
be redeemed in part only, the notice of redemption that relates to this Note will state the portion of the principal amount thereof
to be redeemed. The Company will issue a Note in principal amount equal to the unredeemed portion of this Note in the name of the
Holder hereof upon cancellation of the original Note. Any Notes called for redemption will become due on the Redemption Date. On
or after the Redemption Date, interest will cease to accrue on the Notes or portions of them called for redemption.

  

As provided in and
subject to the provisions of the Indenture, the Holder of this Note shall not have any right to institute any action, suit or proceeding
at law or in equity for the execution of any trust under the Indenture or for the appointment of a receiver or for any other remedy
under the Indenture, in each case with respect to an Event of Default with respect to the

 

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Notes, unless such Holder previously shall
have given to the Trustee written notice of one or more of the Events of Default with respect to the Notes, and unless also the
Holders of 25% or more in principal amount of the Notes then Outstanding shall have requested the Trustee in writing to take action
in respect of the matter complained of, and unless also there shall have been offered to the Trustee security and indemnity reasonably
satisfactory to it against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee, for 60 days
after receipt of such notification, request and offer of indemnity, shall have neglected or refused to institute any such action,
suit or proceeding. Provided, however, that the foregoing shall not affect or impair the obligation of the Company, which is absolute
and unconditional, to pay the principal of, premium, if any, and interest on this Note to the Holder at the due date herein stated,
or affect or impair the right, which is also absolute and unconditional, of the Holder to institute suit to enforce the payment
thereof.

 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Notes under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of not less than a majority in aggregate principal amount of the Outstanding Notes. The Indenture also contains provisions
permitting the Holders of not less than a majority in principal amount of the Notes at the time Outstanding, on behalf of the Holders
of all Notes, to waive compliance by the Company with certain provisions of the Indenture. Furthermore, provisions in the Indenture
permit the Holders of not less than a majority of the aggregate principal amount of the Outstanding Notes to waive, in certain
circumstances, on behalf of all Holders of the Notes, certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation
of such consent or waiver is made upon this Note.

 

No reference herein
to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of, premium, if any and interest on, this Note at the times, places and rate,
and in the coin or currency, herein and in the Indenture prescribed.

 

As provided in the
Indenture and subject to certain limitations set forth therein, the transfer of this Note may be registered on the Register
upon surrender of this Note for registration of transfer at the office or agency of the Company maintained for the purpose in any
place where the principal of, premium, if any and interest on this Note are payable, duly endorsed by or accompanied by a written
instrument of transfer in form satisfactory to the Company, the Trustee and the Registrar duly executed by the Holder hereof
or by his attorney duly authorized in writing, and thereupon one or more new Notes of this series, of authorized denominations
and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

This Note may be
transferred, in whole but not in part, only to a nominee of DTC, or by a nominee of DTC to DTC, or to a successor to DTC for such
Global Security selected or approved by the Company or to a nominee of such successor
to DTC. If at any time DTC notifies

 

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 the Company that it is unwilling or unable to continue as Depositary for the Notes or if at
any time DTC ceases to be a clearing agency registered under the Exchange Act and any other applicable statute and regulation,
if so required by applicable law or regulation, the Company shall appoint a successor Depositary with respect to the Notes. If
(a) a successor Depositary for the Notes is not appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such ineligibility, as the case may be, (b) an Event of Default has occurred and is continuing, or (c) the
Company, in its sole discretion, determines at any time that all Notes (but not less than all) of this series shall no longer
be represented by such Global Note or Notes and executes and delivers to the Trustee an Officers' Certificate stating that the
Notes shall be so exchangeable, then the Company shall execute, and the Trustee shall authenticate and deliver, definitive Notes
of like series, rank, tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of
such Note or Notes.

 

The Notes are issuable
only in registered form without coupons and may be sold in denominations of $2,000 and integral multiples of $1,000 in
excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, the Notes of this series are
exchangeable for a like aggregate principal amount of Notes of this series in authorized denominations as requested by the
Holders surrendering the same. No service charge shall be made for any such registration of transfer or exchange, but the Company
or Trustee may in certain circumstances require payment of a sum sufficient to cover any tax, assessment or other governmental
charge payable in connection therewith.

 

Prior to due presentment
of the Note for registration of transfer, the Company, the Trustee or any of their agents shall treat the Person in whose
name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company,
the Trustee nor any of their agents shall be affected by notice to the contrary.

 

The Indenture contains
provisions whereby (i) the Indenture shall cease to be of further effect with respect to the Notes (subject to the survival
of certain provisions thereof), (ii) the Company may be discharged from its obligations with respect to the Notes (subject
to certain exceptions), or (iii) the Company may be released from its obligations under specified covenants and agreements
in the Indenture, in each case if the Company satisfies certain conditions provided in the Indenture.

 

No recourse shall be
had for the payment of the principal of, premium, if any, or interest on, this Note or for any claim based hereon or otherwise
in respect hereof or of the Debt represented hereby, or upon any obligation, covenant or agreement of the Indenture, against any
incorporator, stockholder, officer or director, as such, past, present or future, of the Company or of any successor corporation,
either directly or through the Company or any successor corporation, whether by virtue of any constitutional provision, statute
or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and understood that
the Indenture and this Note are solely corporate obligations, and that no personal liability whatsoever shall attach to, or be
incurred by, any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or of any successor
corporation, either directly or through the Company or any successor corporation, because of the incurring of the Debt pursuant
to this Note or under or by reason of any of the obligations, covenants, promises or

 

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agreements contained in the Indenture or
in this Note, or to be implied herefrom, and that all liability, if any, of that character against every such incorporator, stockholder,
officer and director is, by the acceptance of this Note and as a condition of, and as part of the consideration for, the execution
of the Indenture and the issue of this Note expressly waived and released.

 

THE INDENTURE AND THE
NOTE SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF SAID STATE.

 

Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed
on the Notes as a convenience to the Holders of the Notes. No representation is made as to the correctness or accuracy of such
CUSIP numbers as printed on the Notes, and reliance may be placed only on the other identification numbers printed hereon.

 

All terms used in this
Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

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ASSIGNMENT FORM

FOR VALUE RECEIVED, THE UNDERSIGNED HEREBY

SELLS, ASSIGNS AND TRANSFERS TO

 

PLEASE INSERT SOCIAL

SECURITY OR OTHER IDENTIFYING

NUMBER OF ASSIGNEE

 

 

 

 

  

(Please Print or Typewrite Name and Address

including Zip Code of Assignee)

 

the within Note of                                         
 and                                   
       hereby does irrevocably constitute and appoint

 

 

 

Attorney to transfer said Note
on the books of the within-named Company with full power of substitution in the premises.

 

	Dated:	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 

NOTICE: The
signature to this assignment must correspond with the name as it appears on the first page of the within Note in every particular,
without alteration or enlargement or any change whatever.

 

    	10EX-10.1

Biolase, Inc.

Notice of Grant of Stock Option

Optionee: Jeffrey M. Nugent

You have been granted an option to purchase shares of Common Stock of the Corporation pursuant
to the terms and conditions specified in this Grant Notice and the Stock Option Agreement which is
attached hereto. Terms not defined in this Grant Notice have the meanings specified in the Stock
Option Agreement attached hereto.

	 	 	 
	Option Shares:

Grant Date:

Exercise Price:

	 	172,282

July 13, 2014

$1.98 per share

Vesting Schedule: The Option Shares shall vest (i) with respect to one-sixth of the number of
Option Shares, rounded up to the nearest whole share, on the Grant Date and (ii) with respect to
one-twelfth of the remaining number of Option Shares that do not vest on the Grant Date pursuant to
(i), rounded down to the nearest whole share, at the conclusion of each of the first twelve monthly
periods beginning on the Grant Date; provided the Optionee remains continuously employed by
the Corporation through the applicable vesting date.

	 	 	 	 	 
	Expiration Date:
	 	July 13, 2024
	 	

	 	 	 	 	BIOLASE, INC.

	 	 	 	 	By: /s/ Frederick D. Furry

	 	 	Name: Frederick D. Furry

Title: Chief Financial Officer

Accepted this 16th day of July, 2014

/s/ Jeffrey M. Nugent

Jeffrey M. Nugent

1

Inducement Option Grant

BIOLASE, INC.

STOCK OPTION AGREEMENT

     A. The Board has granted the Option to Optionee as an inducement material to Optionee’s
employment with the Corporation.

     B. Optionee is to render valuable services to the Corporation (or a Parent or
Subsidiary), and this Agreement is executed pursuant to the Corporation’s grant of the Option to
Optionee.

     C. All capitalized terms in this Agreement shall have the meaning assigned to them in the
attached Appendix A.

      Now, therefore, it is hereby agreed as follows:

     1.  Grant of Option. The Corporation hereby grants to Optionee, as of the Grant
Date, an option to purchase no more than the number of Option Shares specified in the Grant Notice.
The Option Shares shall be purchasable from time to time during the option term specified in
Paragraph 2 at the Exercise Price.

     2.  Option Term. The Option shall expire on the Expiration Date, unless sooner
terminated in accordance with this Agreement.

     3.  Limited Transferability. Except as otherwise provided in this Paragraph 3,
the Option shall be neither transferable nor assignable by Optionee other than by will or the laws
of inheritance following Optionee’s death and may be exercised, during Optionee’s lifetime, only by
Optionee. The Option may be assigned in whole or in part during Optionee’s lifetime to one or more
of Optionee’s family members (as such term is defined in the instructions to Form S-8), or to
Optionee’s former spouse through a gift or domestic relations order. The terms applicable to the
assigned portion shall be the same as those in effect for the Option immediately prior to such
assignment.

     4.  Dates of Exercise. The Option shall become exercisable for the Option Shares
as specified in the Grant Notice. If the Option is exercisable in installments, then as the Option
becomes exercisable for such installments, those installments shall accumulate, and the Option
shall remain exercisable for the accumulated installments until the Expiration Date or sooner
termination of the Option pursuant to this Agreement.

     5.  Cessation of Service.

          (a)  Should Optionee’s Service cease for any reason (other than death, Disability,
Misconduct or termination for Good Reason) while the Option is outstanding, then the Option shall
be exercisable for the number of Option Shares for which the Option was vested and exercisable at
the time Optionee’s Service ceased and shall remain outstanding and exercisable until the earlier
of (i) the Close of Business on the last day of the three month period commencing on the date
Optionee’s Service ceased or (ii) the Expiration Date; provided, however, that if Optionee
terminates Service voluntarily and does not give the Corporation at least 30 days’ notice, then the
Option shall terminate immediately upon cessation of Service with respect to all Option Shares.

          (b) Should Optionee’s Service cease due to death, Disability or for Good Reason
while the Option is outstanding, then the Option shall be exercisable for the full number of Option
Shares and shall remain outstanding and exercisable until the earlier of (i) the Close of Business
on the anniversary of the date Optionee’s Service ceased or (ii) the Expiration Date.

          (c) Should Optionee’s Service be terminated for Misconduct or should Optionee
otherwise engage in any Misconduct while the Option is outstanding, then the Option shall terminate
immediately with respect to all Option Shares.

          (d) Upon the expiration of such limited post-Service exercise period or (if earlier)
upon the Expiration Date, the Option shall terminate with respect to all Option Shares for which
the Option is exercisable.

     6.  Change in Control.

          (a) Immediately prior to the effective date of a Change in Control, the Option shall
vest and become exercisable for all of the Option Shares and may be exercised for any or all of
those Option Shares. However, the Option shall not vest and become exercisable on an accelerated
basis under this subsection (a) if and to the extent: (i) the Option is to be assumed by the
successor corporation (or parent thereof) or is otherwise to be continued in full force and effect
pursuant to the terms of the Change in Control transaction or (ii) the Option is to be replaced
with a cash incentive program of the successor corporation which preserves the spread existing at
the time of the Change in Control on the Option Shares for which the Option is not otherwise at
that time exercisable (the excess of the Fair Market Value of those Option Shares over the
aggregate Exercise Price payable for such shares) and provides for subsequent payout of that spread
no later than the time the Option would have vested and become exercisable for those shares.

          (b) Immediately following the consummation of the Change in Control, the Option
shall terminate, except to the extent assumed by the successor corporation (or parent thereof) or
otherwise continued in effect pursuant to the terms of the Change in Control transaction. 

          (c) If the Option is assumed or otherwise continued in effect in connection with a
Change in Control, then the Option shall be appropriately adjusted by the Board, upon such Change
in Control, to apply to the number and class of securities which would have been issuable to
Optionee in consummation of such Change in Control had the Option been exercised immediately prior
to such Change in Control, and appropriate adjustments shall also be made to the Exercise Price,
provided the aggregate Exercise Price shall remain the same. To the extent that the holders of
Common Stock receive cash consideration for their Common Stock in consummation of the Change in
Control, the successor corporation (or its parent) may, in connection with the assumption of the
Option, substitute one or more shares of its own common stock with a fair market value equivalent
to the cash consideration paid per share of Common Stock in such Change in Control. The adjustments
determined by the Board shall be binding on all parties who have an interest in the Option.

          (d) This Agreement shall not in any way affect the right of the Corporation to
adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

     7.  Other Transactions. Should any change be made to the Common Stock by reason
of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares,
exchange of shares or other change affecting the outstanding Common Stock as a class without the
Corporation’s receipt of consideration, appropriate adjustments shall be made by the Board to (a)
the number and/or class of securities subject to the Option and (b) the Exercise Price in order to
reflect such change and thereby preclude a dilution or enlargement of benefits hereunder. The
adjustments determined by the Board shall be binding on all parties who have an interest in the
Option.

     8.  Stockholder Rights. The holder of the Option shall not have any stockholder
rights with respect to the Option Shares until such person shall have exercised the Option, paid
the Exercise Price and become the holder of record of the purchased Option Shares.

     9.  Manner of Exercising Option.

          (a) In order to exercise the Option with respect to all or any part of the Option
Shares for which the Option is at the time exercisable, Optionee (or any other person or persons
permitted to exercise the Option) must take the following actions:

          (i) Execute and deliver to the Corporation a Notice of Exercise for the Option
Shares for which the Option is exercised;

          (ii) Pay the aggregate Exercise Price for the purchased shares in one or more of
the following forms:

          (A) cash or check made payable to the Corporation;

          (B) shares of Common Stock (1) held by Optionee (or any other person or persons
permitted to exercise the Option) for the requisite period necessary to avoid a charge to the
Corporation’s earnings for financial reporting purposes and (2) valued at Fair Market Value on
the Exercise Date; or

          (C) to the extent the Option is exercised for vested shares, through a special
sale and remittance procedure pursuant to which Optionee (or any other person or persons
permitted to exercise the Option) shall concurrently provide irrevocable instructions (1) to a
brokerage firm to effect the immediate sale of the purchased shares and remit to the
Corporation, out of the sale proceeds available on the settlement date, sufficient funds to
cover the aggregate Exercise Price payable for the purchased shares plus all applicable income
and employment taxes required to be withheld by the Corporation by reason of such exercise and
(2) to the Corporation to deliver the certificates for the purchased shares directly to such
brokerage firm in order to complete the sale.

Except to the extent the sale and remittance procedure is utilized in connection with the option
exercise, payment of the Exercise Price must accompany the Notice of Exercise.

          (iii) Furnish to the Corporation appropriate documentation that the person or
persons exercising the Option (if other than Optionee) have the right to exercise the Option.

          (iv) Make appropriate arrangements with the Corporation (or Parent or Subsidiary
employing or retaining Optionee) for the satisfaction of all income and employment tax
withholding requirements applicable to the Option exercise.

          (b) As soon as practical after the Exercise Date, the Corporation shall issue to or
on behalf of Optionee (or any other person or persons exercising the Option) a certificate for the
purchased Option Shares, with the appropriate legends affixed thereto.

          (c) In no event may the Option be exercised for any fractional shares.

     10.  No Right to Continued Service. Nothing in the Grant Notice or this Agreement
shall confer upon Optionee any right to continue in Service for any period of specific duration or
interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or
Subsidiary employing or retaining Optionee) or of Optionee, which rights are hereby expressly
reserved by each, to terminate Optionee’s Service at any time for any reason, with or without
cause.

     11.  Compliance with Laws and Regulations.

          (a) The exercise of the Option and the issuance of the Option Shares upon such
exercise shall be subject to compliance by the Corporation and Optionee with all applicable
requirements of law relating thereto and with all applicable regulations of any applicable stock
exchange or quotation system on which the Common Stock may be traded at the time of such exercise
and issuance. The Option cannot be exercised if doing so would violate the Corporation’s internal
policies, including, but not limited to, its insider trading policy.

          (b) The inability of the Corporation to obtain approval from any regulatory body
having authority deemed by the Corporation to be necessary to the lawful issuance and sale of any
Common Stock pursuant to the Option shall relieve the Corporation of any liability with respect to
the non-issuance or sale of the Common Stock as to which such approval shall not have been
obtained.

     12.  Successors and Assigns. Except to the extent otherwise provided in this
Agreement, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the
Corporation and its successors and assigns and Optionee, Optionee’s permitted assigns, the legal
representatives, heirs and legatees of Optionee’s estate, whether or not any such person shall have
become a party to this Agreement or has agreed in writing to join herein and be bound by the terms
hereof.

     13.  Notices. Any notice required to be given or delivered to the Corporation
under the terms of this Agreement shall be addressed to the Corporation at its principal corporate
offices. Any notice required to be given or delivered to Optionee shall be addressed to Optionee at
the address indicated below Optionee’s signature line on the Grant Notice or at such other address
as Optionee may designate by ten days advance written notice to the Corporation. Any notice
required to be given under this Agreement shall be in writing and shall be deemed effective upon
personal delivery or upon the third day following deposit in the U.S. mail, registered or
certified, postage prepaid and properly addressed to the party entitled to such notice.

     14.  Entire Agreement. The Grant Notice and this Agreement (and any exhibit and
appendix hereto) constitute the entire agreement between the parties hereto with regard to the
subject matter hereof. All decisions of the Board with respect to any question or issue arising
under the Grant Notice and this Agreement shall be and binding on all persons having an interest in
the Option.

     15.  Amendments. The Grant Notice and this Agreement may only be amended in an
instrument executed by both parties. Approval of the Board is required for all material amendments
to the Grant Notice or this Agreement.

     16.  Governing Law. The interpretation, performance and enforcement of this
Agreement shall be governed by the laws of the State of Delaware without giving effect to that
State’s choice-of-law or conflict-of-law rules.

     17.  Additional Terms and Conditions. The Option, and the Grant Notice and this
Agreement, shall be subject to the additional terms and conditions set forth in the attached
Appendix B.

 

 

2

Exhibit I

Notice of Exercise

I hereby notify Biolase, Inc. (the “Corporation”) that I elect to purchase
                                shares of the Corporation’s common stock (the “Purchased Shares”) at
the option exercise price of $1.98 per share (the “Exercise Price”) pursuant to that certain option
(the “Option”) granted to me by Biolase, Inc. under the Notice of Grant of Stock Option and Stock
Option Agreement on July 13, 2014.

Concurrently with the delivery of this Exercise Notice to the Corporation, I shall hereby pay to
the Corporation the Exercise Price for the Purchased Shares in accordance with the provisions of my
agreement with the Corporation (or other documents) evidencing the Option. In addition, I shall
deliver whatever additional documents may be required by such agreement as a condition for
exercise.

                                          ,                     

Date

	 	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	 
	
 
	 	 	 	 
	
 
	 	 
	 	Optionee
	 

	 	 
	 	 
	 

	 	 
	 	Address:
	 

	 	 
	 	 
	 

	 	 
	 	 
	
 
	 	 	 	 
	Print name in exact manner it is to appear on the stock

certificate:

	 	

 
	 	

 
	
 
	 	 	 	 
	Address to which certificate is to be sent, if different from

address above:

	 	

 
	 	

 
	
 
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 
	 	 
	
 
	 	 	 	 
	 

	 	 
	 	 
	Social Security Number:

	 	 
	 	 
	
 
	 	 	 	 

3

Appendix A

Additional Definitions

     The following definitions shall be in effect under the Agreement:

     A.  Agreement shall mean this Stock Option Agreement.

     B.  Board shall mean the Corporation’s Board of Directors.

     C.  Change in Control shall mean a change in ownership or control of the
Corporation effected through any of the following transactions:

     (i) a merger, consolidation or other reorganization approved by the Corporation’s
stockholders, unless securities representing more than 50% of the total combined voting power of
the voting securities of the successor corporation are immediately thereafter beneficially owned,
directly or indirectly, by the persons who beneficially owned the Corporation’s outstanding
voting securities immediately prior to such transaction, or

     (ii) the sale, transfer or other disposition of all or substantially all of the
Corporation’s assets, or

     (iii) the acquisition, directly or indirectly, by any person or related group of
persons (other than the Corporation or a person that directly or indirectly controls, is
controlled by, or is under common control with, the Corporation), of beneficial ownership (within
the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than 50% of the
total combined voting power of the Corporation’s outstanding securities pursuant to a tender or
exchange offer made directly to the Corporation’s stockholders.

     D.  Close of Business shall mean the close of business at the Corporation’s
headquarters.

     E.  Code shall mean the Internal Revenue Code of 1986, as amended.

     F.  Common Stock shall mean the Corporation’s common stock.

     G.  Corporation shall mean Biolase, Inc., a Delaware corporation, or the
successor to all or substantially all of the assets or voting stock of Biolase, Inc. that assumes
this option.

     H.  Disability shall mean a condition under which the Optionee (i) is unable to
engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, received income replacement benefits for a
period of not less than three months under an accident or health plan covering employees of the
Corporation.

I.  Employee shall mean an individual who is in the employ of the Corporation (or any
Parent or Subsidiary), subject to the control and direction of the employer entity as to both the
work to be performed and the manner and method of performance.

     J.  Exchange Act shall mean the Securities Exchange Act of 1934, as amended.  

     K.  Exercise Date shall mean the date on which this option shall have been
exercised in accordance with this Agreement.

     L.  Exercise Price shall mean the exercise price payable per Option Share as
specified in the Grant Notice.

     M.  Expiration Date shall mean the Close of Business on the date on which this
option expires as specified in the Grant Notice.

     N.  Fair Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

     (i) If the Common Stock is at the time traded on the Nasdaq Stock Market, then the Fair
Market Value shall be the closing selling price per share of Common Stock on the date in
question, as such price is reported by the National Association of Securities Dealers on the
Nasdaq Stock Market and published in The Wall Street Journal. If there is no closing selling
price for the Common Stock on the date in question, then the Fair Market Value shall be the
closing selling price on the last preceding date for which such quotation exists.

     (ii) If the Common Stock is at the time listed on any stock exchange, then the Fair
Market Value shall be the closing selling price per share of Common Stock on the date in question
on the stock exchange determined by the Plan Administrator to be the primary market for the
Common Stock, as such price is officially quoted in the composite tape of transactions on such
exchange and published in The Wall Street Journal. If there is no closing selling price for the
Common Stock on the date in question, then the Fair Market Value shall be the closing selling
price on the last preceding date for which such quotation exists.

     (iii) If the Common Stock is at the time neither listed on any stock exchange or the
Nasdaq Stock Market, then the Fair Market Value shall be determined by the Plan Administrator
after taking into account such factors as the Plan Administrator shall deem appropriate but shall
be determined without regard to any restrictions other than a restriction which, by its term,
will never lapse.

     (iv) For purposes of same day sales, the Fair Market Value shall be deemed to be the
amount per share for which the shares of Common Stock were sold.

     O.  Good Reason shall mean any one or more of the following within the one-year
period following a Change in Control: (i) action by the Corporation resulting in a material
diminution of the Optionee’s authority, duties or responsibilities or (ii) action by the
Corporation resulting in a material reduction in the Optionee’s base compensation. Within 30 days
after the Optionee becomes aware of one or more actions described in the preceding sentence, the
Optionee shall deliver written notice to the Corporation of the actions (the “Good Reason Notice”).
The Company shall have 30 days after the Good Reason Notice is delivered to cure the particular
action(s). If the Corporation so effects a cure, the Good Reason Notice will be deemed rescinded
and of no further force and effect.

     P.  Grant Date shall mean the date of grant of the Option as specified in the
Grant Notice.

     Q.  Grant Notice shall mean the Notice of Grant of Stock Option accompanying this
Agreement.

     R.  Incentive Option shall mean an option that satisfies the requirements of Code
Section 422.  

     S.  Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by the Optionee or Participant, any unauthorized use or disclosure by such person of
confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any
other intentional misconduct by such person adversely affecting the business or affairs of the
Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not
in any way preclude or restrict the right of the Corporation (or any Parent or Subsidiary) to
discharge or dismiss any Optionee, Participant or other person in the Service of the Corporation
(or any Parent or Subsidiary) for any other acts or omissions, but such other acts or omissions
shall not be deemed, for purposes of the Plan, to constitute grounds for termination for
Misconduct.

     T.  Non-Statutory Option shall mean an option that does not qualify as an
Incentive Option.

     U.  Notice of Exercise shall mean the notice of exercise in the form attached
hereto as Exhibit 1.

     V.  Option Shares shall mean the shares of Common Stock subject to the Option.

     W.  Optionee shall mean the person to whom the Option is granted as specified in
the Grant Notice.

     X.  Parent shall mean any corporation (other than the Corporation) in an unbroken
chain of corporations ending with the Corporation, provided each corporation in the unbroken chain
(other than the Corporation) owns, at the time of the determination, stock possessing 50% or more
of the total combined voting power of all classes of stock in one of the other corporations in such
chain.

     Y.  Service shall mean Optionee’s performance of services for the Corporation (or
any Parent or Subsidiary) in the capacity of an Employee, a member of the board of directors or an
independent contractor.

     Z.  Subsidiary shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations beginning with the Corporation, provided each corporation (other
than the last corporation) in the unbroken chain owns, at the time of the determination, stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

AA.  Withholding Taxes shall mean the applicable income and employment withholding
taxes to which the holder of the Option may become subject in connection with the exercise of the
Option.

4

Appendix B

Additional Terms and Conditions

      1.  Administration of the Option.

          (a) The Board shall have authority to administer the terms and conditions of the
Option set forth in the Grant Notice and this Agreement.

          (b) The Board shall, within the scope of its administrative functions under the
Option, have full power and authority (subject to the provisions of the Grant Notice and this
Agreement) to establish such rules and procedures as it may deem appropriate for proper
administration of the Option and to make such determinations under, and issue such interpretations
of, the provisions of the Option as it may deem necessary or advisable. Decisions of the Board
within the scope of its administrative functions under the Grant Notice and this Agreement shall be
binding on all parties who have an interest in the Option.

      2.  Tax Withholding

          (a) The Corporation’s obligation to deliver shares of Common Stock upon the exercise
of the Option shall be subject to the satisfaction of all applicable income and employment tax
withholding requirements.

          (b) The Board may, in its discretion, provide any holder of the Option with the
right to use shares of Common Stock in satisfaction of all or part of the Withholding Taxes to
which such holder may become subject in connection with the exercise of the Option. Such right may
be provided to any such holder in either or both of the following formats:

          (i) Stock Withholding. The election to have the Corporation withhold, from
the shares of Common Stock otherwise issuable upon the exercise of the Option, a portion of those
            shares. So as to avoid adverse accounting treatment, the number of shares that may be withheld
for this purpose may not exceed the minimum number needed to satisfy the applicable income and
employment tax withholding rules.

          (ii) Stock Delivery. The election to deliver to the Corporation, at the
time the Option is exercised, one or more shares of Common Stock previously acquired by such
holder (other than in connection with the Option exercise triggering the Withholding Taxes). So
as to avoid adverse accounting treatment, the number of shares that may be withheld for this
purpose may not exceed the minimum number needed to satisfy the applicable income and employment
tax withholding rules.

      3.  Restriction on Repricing of the Option. Except with the approval of the
stockholders of the Corporation, the Option may not be amended to reduce the exercise price per
share of the Common Stock of the Corporation subject to the Option below the exercise price of the
Option as of the date the Option is granted, except to reflect the substitution for or assumption
of the Option in connection with a Change in Control of the Corporation or if any change is made in
the Common Stock subject to the Option without the receipt of consideration by the Corporation
(through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend,
dividend in property other than cash, stock split, liquidating dividend, combination of shares,
exchange of shares, change in corporate structure or other transaction not involving the receipt of
consideration by the Corporation) in which case the Option will be appropriately adjusted in the
class or classes and number of securities and price per share of Common Stock subject to the
Option. In the event of the substitution for or assumption of the Option in connection with a
Change in Control of the Corporation or if any change is made in the Common Stock subject to the
Option without the receipt of consideration by the Corporation, the Board shall make such
adjustments, and its determination shall be final, binding and conclusive. (The conversion of any
convertible securities of the Corporation shall not be treated as a transaction “without receipt of
consideration” by the Corporation.).

      4.  Amendment of the Option. The Board shall have complete and exclusive power
and authority to amend the Grant Notice and this Agreement. However, no such amendment of the Grant
Notice and this Agreement shall adversely affect the rights and obligations with respect to the
Option unless the Optionee consents to such amendment.

      5.  Use of Proceeds. Any cash proceeds received by the Corporation from the sale
of shares of Common Stock under the Option shall be used for any corporate purpose.

      6.  Regulatory Approvals.

     (a) The granting of the Option and the issuance of any shares of Common Stock upon the
exercise of the Option shall be subject to the Corporation’s procurement of all approvals and
permits required by regulatory authorities having jurisdiction over the Option, and the shares of
Common Stock issued pursuant to the Option.

     (b) No shares of Common Stock or other assets shall be issued or delivered under the
Option unless and until there shall have been compliance with all applicable requirements of
applicable securities laws, including the filing and effectiveness of the Form S-8 registration
statement for the shares of Common Stock issuable under the Option, and all applicable
requirements of any stock exchange or the Nasdaq Stock Market on which Common Stock is then
listed for trading or traded. 

5

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