Document:

Security Agreement dated November 4, 2005

 EXHIBIT 10.3 
  
 SECURITY AGREEMENT 
  
 The Security Agreement is made and entered into this November 4, 2005, by and between BANK OF THE WEST (the “Bank”) and BIOLASE TECHNOLOGY, INC.
(the “Debtor”). 
  

	1.	Grant of Security Interest. The Debtor hereby grants to the Bank a security interest in and to all of the following property (hereinafter collectively referred to as the
“Collateral”): 

  
 (a) Monies. All
monies, investment property, and securities of the Debtor, related to the United States Treasury Note CUSIP No. 912828DF4, with a par value of $10,000,000.00, including any renewals, extensions, substitutions, replacements, additions, or proceeds
thereof. 
  
 The Bank’s security interest in the Collateral
shall be a continuing lien and shall include all proceeds and products of the Collateral including, but not limited to, the proceeds of any insurance thereon. 
  

Debtor hereby consents to and instructs Bank to file financing statements in all locations deemed appropriate by the Bank from time to time.

  
 The security interest granted to Bank in the Collateral shall
not secure or be deemed to secure any Indebtedness of the Debtor to the Bank which is, at the time of its creation, subject to the provisions of any state or federal consumer credit or truth-in-lending disclosure statutes. 
  

	2.	The Indebtedness. The Collateral secures payment of the indebtedness under that certain credit agreement dated as of May 14, 2003, executed by the Debtor and in the original
amount of $4,500,000.00 and subsequently increased to the aggregate principal amount of $10,000,000.00 owed to the Bank together with any and all modifications, extensions and renewals of such indebtedness (hereinafter collectively referred to as
the “Indebtedness”) and performance of all the terms, covenants and agreements contained in this Security Agreement and in any other document, instrument or agreement evidencing or related to the Indebtedness or the Collateral.

  
 The Indebtedness secured hereby shall not
include any indebtedness of the Debtor incurred for personal, family or household purpose except to the extent any disclosure required under any consumer protection law (including but not limited to the Truth in Lending Act) or any regulation
thereto, as now existing or hereafter amended, is or has been given. 
  

	3.	Debtor’s Representations and Warranties. The Debtor hereby makes the following representations and warranties to the Bank, which representations and warranties are
continuing: 

  
 (a) Status: The
Debtor’s correct legal name is as stated in this Agreement and the Debtor is a corporation duly organized and validly existing under the laws of the state of California, and with its chief executive office in the state of California and is
properly licensed and is qualified to do business and in good standing in, and, where necessary to maintain the Debtor’s rights and privileges, has complied with the fictitious name statute of every jurisdiction in which the Debtor is doing
business. 
  
 (b) Authority: The execution, delivery and
performance by the Debtor of this Agreement and any instrument, document or agreement required hereunder have been duly authorized and do not and will not: (i) violate any provision of any law, rule, regulation, order, writ, judgment, injunction,
decree, determination or award presently in effect having application to the Debtor; (ii) result in a breach of or constitute a default under any material 

  

 -1- 

 
indenture or loan or credit agreement or other material agreement, lease or instrument to which the Debtor is a party or by which it or its properties may be
bound or affected; or (iii) require any consent or approval of its stockholders or violate any provision of its articles of incorporation or by-laws; or (iv) violate any provision of its partnership agreement; or (v) require any consent or approval
of its members or violate any provision of its articles of organization or operating agreement. 
  
 (c) Legal Effect. This Security Agreement constitutes, and any document, instrument or agreement required hereunder when delivered will constitute,
legal, valid and binding obligations of the Debtor enforceable against the Debtor in accordance with their respective terms. 
  
 (d) Fictitious Trade Names: There are no fictitious trade names, fictitious trade styles, assumed business names or trade names (defined herein as
“Trade Name”) used by the Debtor in connection with its business operations. The Debtor shall notify the Bank not less than 30 days prior to effecting any change in the matters described herein or prior to using any other fictitious Trade
Name at any future date, indicating the Trade Name and state(s) of its use. 
  
 (e) Title to Collateral; Permitted Liens. The Debtor has good and marketable title to the Collateral and the same is not now and shall not become subject to any security interest, encumbrance, lien or claim of
any third person other than: (i) liens and security interests to secure the Indebtedness or other indebtedness owed to the Bank; (ii) liens for taxes, assessments or similar charges either not yet due or being duly contested in good faith; (iii)
liens of mechanics, materialmen, warehousemen or other like liens arising in the ordinary course of business and security obligations which are not yet delinquent; (iv) liens and security interests which, as of the date hereof, have been disclosed
to and approved by the Bank in writing; (v) purchase money liens or purchase money security interests upon or in any property acquired or held by the Debtor in the ordinary course of business to secure indebtedness outstanding on the date hereof or
permitted to be incurred hereunder; and (vi) those liens and security interests which in the aggregate constitute an immaterial and insignificant monetary amount with respect to the net value of the Debtor’s assets (collectively “Permitted
Liens”). 
  
 (f) Financial Statements. All financial
statements, information and other data now or hereafter submitted to the Bank in connection with the transaction with respect to which this Security Agreement is entered into are true, accurate and correct and have been or will be prepared in
accordance with generally accepted accounting principles consistently applied. Since the most recent submission of any such financial statement, information or other data to the Bank, the Debtor represents and warrants that no material adverse
change in the financial condition or operations as disclosed therein or thereby has occurred which has not been fully disclosed to the Bank in writing. 
  
 (g) Litigation. Except as have been disclosed to the Bank, there are no actions, suits or proceedings pending or, to the knowledge of the Debtor,
threatened against or affecting the Debtor or the Debtor’s properties before any court or administrative agency which, if determined adversely to the Debtor, would have a material adverse effect on the Debtor’s financial condition or
operations or on the Collateral. 
  
 (h) Taxes. The Debtor
has filed all tax returns required to be filed and paid all taxes shown thereon to be due, including interest and penalties, other than taxes which are currently payable without penalty or interest or those which are being duly contested in good
faith. 
  
 (i) Environmental Compliance. The operations of
the Debtor comply, and during the term of this Security Agreement will at all times comply, in all respects with all 

  

 -2- 

 
Environmental Laws; the Debtor has obtained all licenses, permits, authorizations and registrations required under any Environmental Law
(“Environmental Permits”) and necessary for its ordinary course operations, all such Environmental Permits are in good standing, and the Debtor is in compliance with all material terms and conditions of such Environmental Permits;
neither the Debtor nor any of its present property or operations is subject to any outstanding written order from or agreement with any governmental authority nor subject to any judicial or docketed administrative proceeding, respecting any
Environmental Law, Environmental Claim or Hazardous Material; there are no Hazardous Materials or other conditions or circumstances existing, or arising from operations prior to the date of this Agreement, with respect to any property of the Debtor
that would reasonably be expected to give rise to Environmental Claims; provided, however, that with respect to property leased from an unrelated third party, the foregoing representation is made to the best knowledge of the Debtor. In
addition, (i) the Debtor does not have any underground storage tanks (x) that are not properly registered or permitted under applicable Environmental Laws, or (y) that are leaking or disposing of Hazardous Materials off-site, and (ii) the Debtor has
notified all of their employees of the existence, if any, of any health hazard arising from the conditions of their employment and have met all notification requirements under Title III of CERCLA and all other Environmental Laws. 
  
 For the purposes hereof: 
  
 (1) “Environmental Claims” shall mean all claims, however
asserted, by any governmental authority or other person alleging potential liability or responsibility for violation of any Environmental Law or for release or injury to the environment or threat to public health, personal injury (including
sickness, disease or death), property damage, natural resources damage, or otherwise alleging liability or responsibility for damages (punitive or otherwise), cleanup, removal, remedial or response costs, restitution, civil or criminal penalties,
injunctive relief, or other type of relief, resulting from or based upon (a) the presence, placement, discharge, emission or release (including intentional and unintentional, negligent and non-negligent, sudden or non-sudden, accidental or
non-accidental placement, spills, leaks, discharges, emissions or releases) of any Hazardous Material at, in, or from property, whether or not owned by the Debtor, or (b) any other circumstances forming the basis of any violation, or alleged
violation, of any Environmental Law. 
  
 (2) “Environmental
Laws” shall mean all federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and codes, together will all administrative orders, directed duties, requests, licenses, authorizations and permits of, and
agreements with, any governmental authorities, in each case relating to environmental, health, safety and land use matters; including the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), the Clean
Air Act, the Federal Water Pollution Control Act of 1972, the Solid Waste Disposal Act, the Federal Resource Conservation and Recovery Act, the Toxic Substances Control Act, the Emergency Planning and Community Right-to-Know Act, the California
Hazardous Waste Control Law, the California Solid Waste Management, Resource, Recovery and Recycling Act, the California Water Code and the California Health and Safety Code. 
  
 (3) “Hazardous Materials” means all those substances which are regulated by, or which may form the basis of
liability under, any Environmental Law, including all substances identified under any Environmental Law as a pollutant, contaminant, hazardous waste, hazardous constituent, special waste, hazardous substance, hazardous material, or toxic substance,
or petroleum or petroleum derived substance or waste. 
  
 (j)
ERISA: If the Debtor has a pension, profit sharing or retirement plan subject to 

  

 -3- 

 
Employee Retirement Income Security Act of 1974 (“ERISA”), such plan has been and will continue to be funded in accordance with its terms and
otherwise complies with and continues to comply with the requirements of ERISA. 
  
 (k) Debtor’s Covenants. The Debtor covenants and agrees that, unless the Bank otherwise consents in writing, the Debtor shall at all times: 
  
 (l) Maintenance of Insurance. Keep and maintain the Collateral insured for not less than its full replacement value
against all risks of loss and damage and maintain such other insurance as is usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which the Debtor operates and maintain such other
insurance and coverages as may be required by the Bank. All such insurance shall be in form and amount and with companies satisfactory to the Bank. With respect to insurance covering the Collateral, such insurance shall name the Bank as loss payee
pursuant to a loss payable endorsement satisfactory to the Bank and shall not be altered or canceled except upon 10 days’ prior written notice to the Bank. Upon the Bank’s request, the Debtor shall furnish the Bank with the original policy
or binder of all such insurance. 
  
 (m) Inspection Rights and
Accounting Records: The Debtor will maintain adequate books and records in accordance with generally accepted accounting principals consistently applied and in a manner otherwise acceptable to Bank, and, at any reasonable time and from time to
time, permit the Bank or any representative thereof to examine and make copies of the records and visit the properties of the Debtor and discuss the business and operations of the Debtor with any employee or representative thereof. If the Debtor
shall maintain any records (including, but not limited to, computer generated records or computer programs for the generation of such records) in the possession of a third party, the Debtor hereby agrees to notify such third party to permit the Bank
free access to such records at all reasonable times and to provide the Bank with copies of any records which it may request, all at the Debtor’s expense, the amount of which shall be payable immediately upon demand. In addition, the Bank may,
at any reasonable time and from time to time, conduct inspections and audits of the Collateral and the Debtor’s accounts payable, the cost and expenses of which shall be paid by the Debtor to the Bank upon demand. 
  
 (n) Maintenance of Collateral.  
  
 (1) The Collateral shall at all times be of a character and value
acceptable to the Bank, as determined by the Bank in its sole and absolute judgment. 
  
 (2) The Debtor shall not withdraw or seek to withdraw any of the Collateral now or hereafter in the Possession of the Bank or the Bank’s agents, or any one of them. 
  
 (3) The Debtor shall make timely payments of all taxes, charges, liens and
assessments against the Collateral. 
  
 (4) Except for Permitted
Liens, the Debtor shall keep and maintain the Collateral free and clear of all levies, liens, encumbrances and other security interests (including, but not limited to, any lien of attachment, judgment or execution) and defend the Collateral against
any such levy, lien, encumbrance or security interest; comply with all laws, statutes and regulations pertaining to the Collateral, execute, file and record such statements, notices and agreements, take such actions and obtain such certificates and
other documents as necessary to perfect, evidence and continue the Bank’s security interest in the Collateral and the priority thereof; maintain accurate and complete records of the Collateral. 
  
 (o) Reporting Requirements. Promptly upon the Bank’s request,
deliver or cause to be 

  

 -4- 

 
delivered to the Bank such information pertaining to the Debtor, the Collateral or such other matters as the Bank may reasonably request. 
  
 (p) Payment of Obligations. Pay all of its liabilities and
obligations when due. 
  
 (q) Compensation of Employees.
Compensate its employees for services rendered at an hourly rate at least equal to the minimum hourly rate prescribed by any applicable federal or state law or regulation. 
  
 (r) Maintenance of Jurisdiction: Debtor shall maintain the jurisdiction of its organization and chief executive
office, or if applicable, principal residence, as set forth herein and not change such jurisdiction name or form of organization without 30 days prior written notice to Bank. 
  
 (s) Notice: Give the Bank prompt written notice of any and all (i) Events of Default; (ii) litigation, arbitration or
administrative proceedings to which any Debtor is a party or which affects the Collateral; (iii) other matters which have resulted in, or might result in a material adverse change in the Collateral or the financial condition or business operations
of any Debtor, and (iv) any enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened against any Debtor or any of its properties. 
  

	4.	Bank’s Rights Without Default. At its option and without any obligation to do so, the Bank may, either in the name of the Bank, the Bank’s nominee or the Debtor:

  
 (a) Enter into any agreement relating to or
affecting the Collateral and, in connection therewith, the Bank may surrender control of any such Collateral, accept other property in exchange for such Collateral, and do and perform such acts as it deems proper. Any money or property received in
exchange for any such Collateral shall be subject to and held by the Bank pursuant to the terms of this Security Agreement. 
  
 (b) Make any compromise or settlement with respect to the Collateral that the Bank, in its sole and absolute discretion, deems proper. 
  
 (c) Insure and do such other acts as the Bank deems necessary, in its sole
discretion, to preserve or protect the Collateral. 
  
 (d) Cause
the Collateral to be transferred to the Bank’s name or the name of the Bank’s nominee. 
  
 (e) With respect to the Collateral, exercise all rights, powers and remedies of an owner but excluding any voting rights. 
  

	5.	Events of Default. Any one or more of the following described events shall constitute an event of default (“Event of Default”) hereunder: 

 
 (a) Non-Payment: The Debtor shall fail to pay the aggregate
principal amount of any Indebtedness when due or interest of the Indebtedness within 5 days of when due. 
  
 (b) Performance Under This Agreement: The Debtor shall fail in any material respect to perform or observe any term, covenant or agreement contained
in this Security Agreement or in any document, instrument or agreement relating to this Agreement and any such failure shall continue unremedied for more than 30 days after written notice from the Bank to the Borrower(s) of the existence and
character of such Event of Default. 
  
 (c) Representations
and Warranties; Financial Statements: Any representation or 

  

 -5- 

 
warranty made by the Debtor under or in connection with this Security Agreement or any financial statement given by the Debtor or any guarantor shall prove
to have been incorrect in any material respect when made or given or when deemed to have been made or given. 
  
 (d) Other Agreements: If there is a default under any agreement to which Debtor is a party with the Bank or with a third party or parties resulting
in a right by the Bank or such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness. 
  
 (e) Insolvency: The Debtor or any guarantor shall: (i) become insolvent or be unable to pay its debts as they mature; (ii) make an assignment for
the benefit of creditors or to an agent authorized to liquidate any substantial amount of its properties and assets; (iii) file a voluntary petition in bankruptcy or seeking reorganization or to effect a plan or other arrangement with creditors;
(iv) file an answer admitting the material allegations of an involuntary petition relating to bankruptcy or reorganization or join in any such petition; (v) become or be adjudicated a bankrupt; (vi) apply for or consent to the appointment of, or
consent that an order be made, appointing any receiver, custodian or trustee, for itself or any of its properties, assets or businesses; or (vii) any receiver, custodian or trustee shall have been appointed for all or substantial part of its
properties, assets or businesses and shall not be discharged within 30 days after the date of such appointment. 
  
 (f) Execution: Any writ of execution or attachment or any judgment lien shall be issued against any property of the Debtor and shall not be
discharged or bonded against or released with 30 days after the issuance or attachment of such writ or lien. 
  
 (g) Revocation or Limitation of Guaranty: Any guaranty shall be revoked or limited or its enforceability or validity shall be contested by any
guarantor, by operation of law, legal proceeding or otherwise or any guarantor who is a natural person shall die. 
  
 (h) Revocation or Limitation of Subordination Agreement: Any subordination agreement shall be revoked or limited or its enforceability or validity
shall be contested by any creditor signatory thereto, by operation of law, legal proceeding or otherwise. 
  
 (i) Suspension: The Debtor shall voluntarily suspend the transaction of business or allow to be suspended, terminated, revoked or expired any
permit, license or approval of any governmental body necessary to conduct the Debtor’s business as now conducted. 
  
 (j) Material Adverse Change: If there occurs a material adverse change in the Debtor’s business or financial condition, or if there is a
material impairment of the prospect of repayment of any portion of the Indebtedness or there is material impairment of the value or priority of the Bank’s security interest in the Collateral. 
  
 (k) Change in Ownership: There shall occur a sale, transfer,
disposition or encumbrance (whether voluntary or involuntary), or an agreement shall be entered into to do so, with respect to more than 10% of the issued and outstanding capital stock of the Debtor. 
  
 (l) Impairment of Collateral. There shall occur any injury or damage
to all or any part of the Collateral or all or any part of the Collateral shall be lost, stolen or destroyed. 
  

	6.	Bank’s Rights and Remedies on Default. Upon the occurrence of any Event of Default, the Bank may, at its sole and absolute election, without demand and only upon such
notice as may be required by law: 

  
 (a)
Acceleration. Declare the Indebtedness and any or all other indebtedness owing to the Bank by the Debtor or any obligor on the Indebtedness (however such indebtedness 

  

 -6- 

 
may be evidenced or secured) immediately due and payable, whether or not otherwise due and payable. 
  
 (b) Cease Extending Credit. Cease extending credit to or for the
account of the Debtor or any obligor on the Indebtedness under any agreement now existing or hereafter entered into with the Bank. 
  
 (c) Termination. Terminate any agreement as to any future obligation of the Bank without affecting the Debtor’s obligations to the Bank or the
Bank’s rights and remedies under this Security Agreement or under any other document, instrument or agreement. 
  
 (d) Segregate Collections. Require the Debtor to segregate all collections and proceeds of the Collateral so that they are capable of
identification and to deliver such collections and proceeds to the Bank, in kind, without commingling, at such times and in such manner as required by the Bank. 
  
 (e) Records of Collateral. Require the Debtor to periodically deliver to the Bank records and schedules showing the
status, condition and location of the Collateral and such contracts or other matters which affect the Collateral. In connection herewith, the Bank may conduct such audits or other examination of such records, including, but not limited to,
verification of balances owing by any account debtor of the Debtor, as the Bank, in its sole and absolute discretion, deems necessary. 
  
 (f) Compromise. Grant extensions, compromise claims and settle any account for less than the amount owing thereunder, all without notice to the
Debtor or any obligor on or any guarantor of the Indebtedness. 
  
 (g) Protection of Security Interest in Collateral. Make such payments and do such acts as the Bank, in its sole judgment, considers necessary and reasonable to protect its security interest in the Collateral. The Debtor hereby
irrevocably authorizes the Bank to pay, purchase, contest or compromise any encumbrance, lien or claim which the Bank, in its sole judgment, deems to be prior or superior to its security interest. Further, the Debtor hereby agrees to pay to the
Bank, upon demand therefor, all expenses and expenditures (including attorneys’ fees) incurred in connection with the foregoing. 
  
 (h) Foreclosure. Enforce any security interest or lien given or provided for under this Security Agreement or under any other document relating to
the Collateral, in such manner and such order, as to all or any part of the Collateral, as the Bank, in its sole judgment, deems to be necessary or appropriate and the Debtor hereby waives any and all rights, obligations or defenses now or hereafter
established by law relating to the foregoing. In the enforcement of its security interest in the Collateral, the Bank is authorized to enter upon the premises where any Collateral is located and take possession of the Collateral or any part thereof,
together with the Debtor’s records pertaining thereto, or the Bank may require the Debtor to assemble the Collateral and records pertaining thereto and make such Collateral and records available to the Bank at a place designated by the Bank.
The Bank may sell the Collateral or any portions thereof, together with all additions, accessions and accessories thereto, giving only such notices and following only such procedures as are required by law, at either a public or private sale, or
both, with or without having the Collateral present at the time of sale, which sale shall be on such terms and conditions and conducted in such manner as the Bank determines in its sole judgment to be commercially reasonable. The Collateral may be
disposed of in its then condition without any preparation or processing. In connection with any disposition of the Collateral, the Bank may disclaim any warranty relating to title, possession or quiet enjoyment. Any deficiency which exists after the
disposition or liquidation of the Collateral shall be a continuing liability of any obligor on or any guarantor of the Indebtedness and shall be immediately paid to the Bank. 
  

 -7- 

 (i) Non-Exclusivity of Remedies. Exercise one or more of the Bank’s rights set forth herein
or seek such other rights or pursue such other remedies as may be provided by law, in equity or in any other agreement now existing or hereafter entered into between the Bank and the Debtor or any obligor on or guarantor of the Indebtedness, or
otherwise. 
  
 (j) Application of Proceeds. All amounts
received by the Bank as proceeds from the disposition or liquidation of the Collateral shall be applied as follows: first, to the costs and expenses of collection, including court costs and reasonable attorneys’ fees, whether or not suit is
commenced by the Bank; next, to those costs and expenses incurred by the Bank in protecting, preserving, enforcing, collecting, selling or disposing of the Collateral; next, to the payment of accrued and unpaid interest on all of the Indebtedness;
next, to the payment of the outstanding principal balance of the Indebtedness; and last, to the payment of any other indebtedness owed by the Debtor to the Bank. Any excess Collateral or excess proceeds existing after the disposition or liquidation
of the Collateral will be returned or paid by the Bank to the Debtor. 
  
 If any non-cash proceeds are received in connection with any sale of Collateral, the Bank shall not apply such non-cash proceeds to the Obligations unless and until such proceeds are converted to such; provided, however, that if such
non-cash proceeds are not expected on the date of receipt thereof to be converted to cash within one year after such date, the Bank shall use commercially reasonable efforts to convert such non-cash proceeds to cash within such one year period.

  

	7.	Miscellaneous. 

  
 (a) Amounts Payable Under this Security Agreement. If the Debtor fails to pay on demand the amount of any obligations referred to in this Security
Agreement, the Bank may pay such amount at its option and without any obligation to do so and without waiving any default occasioned by the Debtor’s failure to pay such amount. All amounts so paid by the Bank, together with reasonable
attorneys’ fees and all other costs, charges and expenses relating to the Indebtedness, shall be a part of the Indebtedness and shall bear interest at the highest rate chargeable on any Indebtedness until paid in full. 
  
 (b) Other Terms. Terms not otherwise defined in this Security
Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code as in effect on July 1, 2001 and from time to time thereafter. 
  
 (c) Reliance. Each warranty, representation, covenant and agreement contained in this Security Agreement shall be conclusively presumed to have
been relied upon by the Bank regardless of any investigation made or information possessed by the Bank and shall be cumulative and in addition to any other warranties, representations, covenants or agreements which the Debtor shall now or hereafter
give, or cause to be given, to the Bank. 
  
 (d)
Attorneys’ Fees. Debtor shall pay to the Bank all costs and expenses, including but not limited to reasonable attorneys fees, incurred by Bank in connection with the administration, enforcement, including any bankruptcy, appeal or the
enforcement of any judgment or any refinancing or restructuring of this Security Agreement or any document, instrument or agreement executed with respect to, evidencing or securing the Indebtedness hereunder. 
  
 (e) Notices. All notices, payments, requests, information and demands
which either party hereto may desire, or be required to give or make to the other party, shall be given or made to such party by hand delivery or through deposit in the United States mail, postage prepaid, or by Western Union telegram, addressed to
the address set forth below such party’s signature to this Security Agreement or to such other address as may be specified 

  

 -8- 

 
from time to time in writing by either party to the other. 
  
 (f) Waiver. Neither the failure nor delay by the Bank in exercising any right hereunder or under any document, instrument or agreement mentioned
herein shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder or under any other document, instrument or agreement mentioned herein preclude other or further exercise thereof or the exercise of any other
right; nor shall any waiver of any right or default hereunder or under any other document, instrument or agreement mentioned herein constitute a waiver of any other right or default or constitute a waiver of any other default of the same or any
other term or provision. 
  
 (g) Assignment. This Security
Agreement shall be binding upon and inure to the benefit of the Debtor and the Bank and their respective successors and assigns, except that the Debtor shall not have the right to assign its rights hereunder or any interest herein without the
Bank’s prior written consent. The Bank may sell or assign all or any portion of its rights and benefits hereunder and, in connection therewith, may deliver to such prospective buyer or assignee financial statements and other relevant
information pertaining to the Debtor or any obligor on the Indebtedness. 
  
 (h) Jurisdiction. This Security Agreement and the rights of the parties hereunder to and concerning the Collateral, and any documents, instruments or agreements mentioned or referred to herein, shall be
governed by and construed according to the laws of the State of California, without regard to conflict of law principles, to the jurisdiction of whose courts the parties hereby submit. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be executed as of the date first herein above
written. 
  

									
	BANK:	 	 	 	BORROWER:
			
	BANK OF THE WEST	 	 	 	BIOLASE TECHNOLOGY, INC.
					
	BY:	 	/S/    ROBERT THOMAS	 	 	 	BY:	 	/S/    ROBERT E. GRANT
	NAME: Robert Thomas, Vice President	 	 	 	NAME: Robert E. Grant, CEO
					
	 	 	 	 	 	 	BY:	 	/S/    JOHN W. HOHENER
	 	 	 	 	NAME: John W. Hohener, Executive VP and CFO
				
	 	 	 	 	 	 	ADDRESS:
					
	 	 	 	 	 	 	 	 	981 Calle Amanecer
	 	 	 	 	 	 	 	 	San Clemente, CA 92673

  

 -9-Third Amendment and Waiver to the Credit Agreement dated November 3, 2005.

 Exhibit 10.43 
  
 THIRD AMENDMENT AND WAIVER 
  
 This THIRD AMENDMENT AND WAIVER (this “Amendment”) dated as of November 3, 2005 (the “Closing Date”) with respect
to the Credit Agreement referenced below is entered into among NAVIGANT INTERNATIONAL, INC., a Delaware corporation (the “Borrower”), the Guarantors (as defined in the Credit Agreement referenced below), the financial institutions
from time to time party to the Credit Agreement referenced below as Lenders (the “Lenders”) and Bank of America, N.A., as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”).

  
 WITNESSETH 
  
 WHEREAS, pursuant to the Credit Agreement (as amended, modified and
supplemented from time to time, the “Credit Agreement”) dated as of October 31, 2003 among the Borrower, the Guarantors, the Lenders and the Administrative Agent, the Lenders agreed to make extensions of credit to the Borrower.

  
 WHEREAS, the Borrower has requested that the Lenders
(a) waive certain Events of Default arising from (i) the Borrower’s failure to deliver the financial statements and related reports required to be delivered on or before October 28, 2005 pursuant to that certain Consent dated as
of September 30, 2005 between the Borrower, the Guarantors, the Lenders identified therein and the Administrative Agent (the “Reporting Defaults”) and (ii) any cross-Events of Default now existing or that may arise from
the Borrower’s failure to comply with the corresponding provisions of the Term Loan Documents (collectively, the “Cross Defaults” and, together with the Reporting Defaults, the “Existing Events of Default”) and
(b) modify the Credit Agreement in certain respects. 
  
 WHEREAS, the Required Lenders have agreed to do so, but only pursuant to the terms and conditions set forth herein. 
  
 NOW, THEREFORE, IN CONSIDERATION of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows: 
  
 1. Defined Terms.
Capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement. 
  
 2. Limited Waiver. The Required Lenders hereby waive the Existing Events of Default, provided that the foregoing limited waiver shall not be deemed
to modify or affect the obligations of the Borrower and the Guarantors to comply with each and every other obligation under the Credit Agreement and the other Loan Documents from and after the date hereof. 

 3. Amendments. The Credit Agreement is amended in the following respects: 
  
 3.1 The definition of “Applicable Rate” in Section 1.01 of the
Credit Agreement is amended and restated as follows: 
  
 “Applicable Rate” means the following percentages per annum, based upon the Consolidated Total Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to
Section 7.02(b): 
  

																					
	 	  	 	  	 	 	 	 	 	 	Eurodollar Rate Loans

	 	 	Base Rate Loans

	 
	 Pricing
Tier

	  	 Consolidated Total
 Leverage Ratio

	  	 Commitment
 Fee

	 	 	 Letter of
 Credit Fee

	 	 	 Revolving
 Loans

	 	 	 Term
 Loan

	 	 	Revolving
Loans

	 	 	 Term
 Loan

	 
	 I
	  	 Less than 2.0:10
	  	0.500	%	 	1.75	%	 	1.75	%	 	2.00	%	 	0.75	%	 	1.00	%
	 II
	  	 Greater than or equal to 2.0:1.0 but less than 2.5:1:0
	  	0.500	%	 	2.25	%	 	2.25	%	 	2.50	%	 	1.25	%	 	1.50	%
	 III
	  	 Greater than or equal to 2.5:1.0 but less than 3.0:1.0
	  	0.500	%	 	2.75	%	 	2.75	%	 	3.00	%	 	1.75	%	 	2.00	%
	 IV
	  	 Greater than or equal to 3.0:1.0 but less than 3.5:1.0
	  	0.500	%	 	3.25	%	 	3.25	%	 	3.50	%	 	2.25	%	 	2.50	%
	 V
	  	 Greater than or equal to 3.5:1.0
	  	0.500	%	 	3.25	%	 	3.50	%	 	3.75	%	 	2.50	%	 	2.75	%

  
 Any increase or
decrease in the Applicable Rate resulting from a change in the Consolidated Total Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to
Section 7.02(b); provided, however, that if a Compliance Certificate is not delivered when due in accordance with such Section, then Pricing Tier V shall apply as of the first Business Day after the date on which such
Compliance Certificate was required to have been delivered and shall continue to apply until the first Business Day immediately following the date such Compliance Certificate is actually delivered, after which date the Applicable Rate based upon
such Compliance Certificate shall apply. 
  
 3.2 The following new
definition is added in Section 1.01 of the Credit Agreement: 
  
 “Original Covenants” means the covenants listed on Schedule 1.01 hereto 
  
 3.3 The definition of “Permitted Acquisitions” in Section 1.01 of the Credit Agreement is amended and restated as follows: 
  
 “Permitted Acquisitions” means Investments
consisting of an Acquisition by the Borrower or any Subsidiary, provided that (i) the Property acquired (or the Property of the Person acquired) in such Acquisition is used or useful in the same or a similar line of business as the
Borrower and its Subsidiaries were engaged in on the Effective Date (or any reasonable extensions or expansions thereof), (ii) the Administrative Agent shall have received all items in respect of the Capital Stock or Property acquired in such
Acquisition required to be delivered by the terms of Section 7.12 and/or Section 7.14, (iii) in the case of an Acquisition of the Capital Stock of another Person, the board of directors (or other comparable governing
body) of such other Person shall have duly approved such Acquisition, (iv) the Borrower shall have delivered to the Administrative Agent a Pro Forma Compliance Certificate demonstrating that, upon giving effect to such Acquisition on a Pro
Forma Basis, the Loan Parties would be in compliance with the financial covenants set forth in Section 8.11 as of the most recent fiscal quarter for which the Borrower has delivered financial statements pursuant to
Section 7.01(a) or (b), (v) the representations and warranties made by the Loan Parties in any Loan Document shall be true and correct in all material respects at and as if made as of the date of such Acquisition (after
giving effect thereto) except to the extent such representations and warranties expressly relate to an earlier date, (vi) if such transaction involves the purchase of an interest in a partnership between the Borrower (or a Subsidiary of the
Borrower) as a general partner and entities unaffiliated with the Borrower or such Subsidiary as the other partners, such transaction shall be effected by having such equity interest acquired by a corporate holding company directly or 

  

 2 

 
indirectly wholly-owned by the Borrower newly formed for the sole purpose of effecting such transaction, and (vii) the aggregate cash and non-cash
consideration (including, without limitation, Indebtedness assumed, deferred purchase price obligations (including, without limitation, earn-out payment obligations) and Capital Stock) paid by the Borrower or any Subsidiary for any Acquisition (or
any series of related Acquisitions) shall not exceed $10,000,000; provided, however, notwithstanding the foregoing, from and after November 1, 2005 until such time as the Borrower shall have demonstrated to the reasonable
satisfaction of the Administrative Agent that it was, as of the end of the immediately preceding fiscal quarter, in compliance with the Original Covenants, “Permitted Acquisitions” shall mean “none.” 
  
 3.4 The following new Sections 7.15, 7.16 and 7.17 are hereby added to the
Credit Agreement in the appropriate numerical order: 
  
 7.15 Forecasts. 
  
 On
Thursday of each week, deliver to the Administrative Agent and the Lenders, a consolidated rolling thirteen (13) week forecast of cash flows for the Borrower and its Subsidiaries in substantially the form as that delivered to the Administrative
Agent on or around 10/26 (the “Forecast”) together with (except for the initial report) a reconciliation between actual cash flows for the prior week and projected cash flows for such week as set forth in the most recent previous
Forecast. 
  
 7.16 Financial Statements; SEC
Reports. 
  
 On or before
November 9, 2005 (i) deliver to the Administrative Agent the financial statements required under Section 7.01(b) for the fiscal quarters ended March 27, 2005 and June 26, 2005 and the related Compliance Certificates required
to be delivered in connection therewith under Section 7.02(b), and (ii) file with the SEC its quarterly report on Form 10Q for the fiscal quarters ending March 27, 2005, June 26, 2005 and September 25, 2005. 

 
 7.17 NASDAQ Re-listing. 
  
 On or before February 15, 2006, cause the Borrower to
be re-listed on the NASDAQ stock exchange. 
  
 3.5 Clause
(a) of Section 8.11 of the Credit Agreement is amended and restated in its entirety to read as follows: 
  
 (a) Consolidated Total Leverage Ratio. Permit the Consolidated Total Leverage Ratio as of the end of any fiscal quarter of the
Borrower set forth below to be greater than the ratio set forth below opposite such fiscal quarter: 
  

			
	 As of the Fiscal Quarter Ending

	  	Maximum Consolidated
Total Leverage Ratio

	 September 25, 2005
	  	4.30:1.0
	 December 25, 2005
	  	4.30:1.0
	 March 26, 2006
	  	4.00:1.0
	 June 25, 2006
	  	3.80:1.0
	 September 24, 2006
	  	3.70:1.0
	 December 31, 2006 and each fiscal quarter thereafter
	  	3.25:1.0

  

 3 

 3.6 Clause (b) of Section 8.11 of the Credit Agreement is amended and restated in its entirety
to read as follows: 
  
 (b) Consolidated
Senior Leverage Ratio. Permit the Consolidated Senior Leverage Ratio as of the end of any fiscal quarter of the Borrower set forth below to be greater than the ratio set forth below opposite such fiscal quarter: 
  

			
	 As of the Fiscal Quarter Ending

	  	Maximum Consolidated
Senior Leverage Ratio

	 September 25, 2005
	  	2.90:1.0
	 December 25, 2005
	  	2.90:1.0
	 March 26, 2006
	  	2.65:1.0
	 June 25, 2006
	  	2.60:1.0
	 September 24, 2006
	  	2.25:1.0
	 December 31, 2006 and each fiscal quarter thereafter
	  	2.25:1.0

  
 3.7 Clause (d) of
Section 8.11 of the Credit Agreement is amended and restated in its entirety to read as follows: 
  
 (d) Consolidated Fixed Charges Coverage Ratio. Permit the Consolidated Fixed Charges Coverage Ratio as of the end of any fiscal
quarter of the Borrower to be less than the ratio set forth below opposite such fiscal quarter: 
  

			
	 As of the Fiscal Quarter Ending

	  	Minimum Consolidated
Fixed Charges Coverage
Ratio

	 September 25, 2005
	  	1.70:1.0
	 December 25, 2005
	  	1.70:1.0
	 March 26, 2006
	  	1.70:1.0
	 June 25, 2006
	  	1.70:1.0
	 September 24, 2006
	  	1.75:1.0
	 December 31, 2006
	  	1.80:1.0
	 March 25, 2007 and each fiscal quarter thereafter
	  	2.00:1.0

  
 3.8 Clause (b)(ii) of
Section 9.01 of the Credit Agreement is amended and restated in its entirety to read as follows: 
  
 (ii) Any Loan Party fails to perform or observe any term, covenant or agreement contained in any of Section 7.05(a),
7.11, 7.15, 7.16, 7.17 or Article VIII; or 
  

 4 

 3.9 A new Schedule 1.01 is hereby added to the Credit Agreement in the form of Exhibit A
attached hereto. 
  
 4. Amendment Fee. On the date hereof,
the Borrower shall pay to the Administrative Agent for the ratable benefit of the Lenders executing this Amendment an amendment fee in an amount equal to one-half of one percent (0.5%) of the aggregate Revolving Commitments of the Lenders and
outstanding Term Loans (the “Amendment Fee”). 
  
 5. Conditions Precedent. This Amendment shall become effective upon satisfaction of each of the following conditions: 
  
 (a) receipt by the Administrative Agent of counterparts to this Amendment executed by the Borrower, the Guarantors, the Administrative
Agent and the Required Lenders; 
  
 (b) receipt
by the Administrative Agent (or any Affiliate, as applicable) of the Amendment Fee for the ratable benefit of the Lenders and any other reasonable fees, costs and charges payable in connection with this Amendment; and 
  
 (c) receipt by the Administrative Agent of a fully executed
and effective copy of that certain Amendment and Waiver dated as of the Closing Date with respect to that certain Term Loan Credit Agreement dated as of August 29, 2005 among the Borrower, the Guarantors, the Lenders and the Administrative
Agent. 
  
 6. Loan Document. This Amendment constitutes a
“Loan Document” under the Credit Agreement. From and after the date hereof, all references to the Credit Agreement set forth in any other agreement or instrument shall, unless otherwise specifically provided, be references to the Credit
Agreement amended by this Amendment and as may be further amended, modified, restated or supplemented from time to time. This Amendment is limited as specified and shall not constitute or be deemed to constitute an amendment, modification or waiver
of any provision of the Credit Agreement except as expressly set forth herein. 
  
 7. Representations and Warranties. Each of the Borrowers and the Guarantors hereby represents and warrants that upon the effectiveness of this Amendment the representations and warranties contained in
Section 6 of the Credit Agreement and in each other Loan Document are true and correct in all material respects on and as of the date hereof as though made on and as of such date (except (a) those that expressly relate to an earlier period
and (b) the representations contained in Sections 6.05(a), 6.05(b) and 6.05(d) of the Credit Agreement in connection with the Borrower’s restatement of financial statements for the fiscal years 2000, 2001, 2002 and 2003, each of the four
quarters of fiscal 2003 and the first three quarters of fiscal 2004, as a result of a review of Borrower’s allocation of purchase price between goodwill and customer-related intangibles and other identifiable intangibles for businesses Borrower
acquired during 2001 through 2004, and the re-evaluation of the Borrower’s lease accounting practices). 
  
 8. Reaffirmation of Guaranty. Each of the Guarantors (a) acknowledges and consents to all of the terms and conditions of this Amendment,
(b) affirms all of its obligations under the Loan Documents and (c) agrees that this Amendment and all documents executed in connection herewith do not operate to reduce or discharge such Guarantor’s obligations under the Loan
Documents. 
  
 9. Reaffirmation of Security Interests. Each
of the Borrowers and the Guarantors (a) affirms that each of the Liens granted in or pursuant to the Loan Documents are valid and subsisting and 

  

 5 

 
(b) agrees that this Amendment shall in no manner impair or otherwise adversely effect any of the Liens granted in or pursuant to the Loan Documents.

  
 10. No Other Changes. Except as expressly modified
hereby, all of the terms and provisions of the Credit Agreement and the Loan Documents shall remain in full force and effect. Nothing contained in this Amendment (a) shall be construed to imply a willingness on the part of the Lenders to grant
any similar or future amendment of any of the terms and conditions of the Credit Agreement, and (b) shall in any way prejudice, impair or effect any rights or remedies of the Lenders under the Credit Agreement. 
  
 11. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed an original and it shall not be necessary in making proof of this Amendment to produce or account for more than one such counterpart. 
  
 12. Fees and Expenses. Upon demand therefore, the Borrower agrees to
reimburse the Administrative Agent for all fees and expenses incurred by or otherwise payable to the Agent (including the reasonable fees and expenses of counsel to the Administrative Agent) incurred in connection with the negotiation, documentation
and preparation of this Amendment. 
  
 13. Release. In
consideration of the willingness of the Administrative Agent and the Lenders to enter into this Amendment, the Borrower and the Guarantors unconditionally release, waive and forever discharge all claims, offsets, causes of action, suits or defenses
of any kind whatsoever (if any), against the Administrative Agent, the Lenders and each of their respective directors, officers, employees or agents, with respect to any condition, act, omission or event arising in connection with the Credit
Agreement and this Amendment. 
  
 14. Governing Law. This
Amendment shall be deemed to be a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of North Carolina. 
  
 15. Severability. To the extent any provision of this Amendment is prohibited by or invalid under the applicable law of any jurisdiction, such
provision shall be ineffective only to the extent of such prohibition or invalidity and only in such jurisdiction, without prohibiting or invalidating such provision in any other jurisdiction or the remaining provisions of this Amendment in any
jurisdiction. 
  
 16. Successors and Assigns. This
Amendment shall be binding upon, inure to the benefit of and be enforceable by the respective successors and assigns of the parties hereto. 
  
 17. Construction. The headings of the various sections and subsections of this Amendment have been inserted for convenience only and shall not in
any way affect the meaning or construction of any of the provisions hereof. 
  
 [Signature Pages Follow] 
  

 6 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly
authorized officers as of the date first above written. 
  

									
	BORROWER:	 	 	 	NAVIGANT INTERNATIONAL, INC., a Delaware corporation
					
	 	 	 	 	 	 	By:	 	/s/    JOHN S. COFFMAN        
	 	 	 	 	 	 	Name:	 	John Coffman
	 	 	 	 	 	 	Title:	 	Senior Vice President and Chief Accounting Officer
			
	GUARANTORS:	 	 	 	 NAVIGANT INTERNATIONAL/NORTH CENTRAL, INC., an Illinois corporation
 NAVIGANT INTERNATIONAL/SOUTHWEST, LLC, a Delaware limited liability company
 CORNERSTONE ENTERPRISES, INC., a Massachusetts
corporation
 NAVIGANT INTERNATIONAL/SOUTHEAST, INC., a North Carolina corporation
 NAVIGANT INTERNATIONAL/NORTHWEST, INC., a Washington corporation
 NAVIGANT INTERNATIONAL/NORTHEAST, INC., a Connecticut
corporation
 NAVIGANT INTERNATIONAL U.K. HOLDINGS, INC., a Delaware corporation
 NAVIGANT CRUISE CENTER, INC., a Delaware corporation
 NAVIGANT INTERNATIONAL/ROCKY MOUNTAIN, INC., a Colorado
corporation
 SCHEDULED AIRLINES TRAFFIC OFFICES, INC., a Delaware corporation
 PASSAGE INTERNATIONAL, INC., an Oregon corporation
 INCENTIVE CONNECTIONS, INC., a New Jersey
corporation

					
	 	 	 	 	 	 	By:	 	/s/    JOHN S. COFFMAN        
	 	 	 	 	 	 	Name:	 	John Coffman
	 	 	 	 	 	 	Title:	 	Vice President
			
	 	 	 	 	NAVIGANT INTERNATIONAL/SOUTH CENTRAL, LP, a Texas limited partnership
			
	 	 	 	 	By: ATLAS TRAVEL GP, INC., a Texas corporation
					
	 	 	 	 	 	 	By:	 	/s/    JOHN S. COFFMAN        
	 	 	 	 	 	 	Name:	 	John Coffman
	 	 	 	 	 	 	Title:	 	Vice President
			
	 	 	 	 	NORTHWESTERN TRAVEL SERVICE, LP, a Minnesota limited partnership
			
	 	 	 	 	By: NWT Newco, Inc., an Illinois corporation, General Partner
					
	 	 	 	 	 	 	By:	 	/s/    JOHN S. COFFMAN        
	 	 	 	 	 	 	Name:	 	John Coffman
	 	 	 	 	 	 	Title:	 	Vice President

  
 [Signature Pages
Continue] 

									
	ADMINISTRATIVE AGENT:	 	 	 	 BANK OF AMERICA, N.A.,
 as Administrative
Agent

					
	 	 	 	 	 	 	By:	 	/s/    MOLLIE S. CANUP        
	 	 	 	 	 	 	Name:	 	Mollie S. Canup
	 	 	 	 	 	 	Title:	 	Vice President
			
	LENDER:	 	 	 	 BANK OF AMERICA, N.A.,
 as a Lender, L/C
Issuer and Swing Line Lender

					
	 	 	 	 	 	 	By:	 	/s/    BRYAN A. SMITH        
	 	 	 	 	 	 	Name:	 	Bryan A. Smith
	 	 	 	 	 	 	Title:	 	Vice President
			
	 	 	 	 	U.S. BANK NATIONAL ASSOCIATION
					
	 	 	 	 	 	 	By:	 	/s/    THOMAS
MCCARTHY        
	 	 	 	 	 	 	Name:	 	Thomas McCarthy
	 	 	 	 	 	 	Title:	 	Vice President
			
	 	 	 	 	KEY BANK, N.A.
					
	 	 	 	 	 	 	By:	 	/s/    JEANNETTE
GANOUSIS        
	 	 	 	 	 	 	Name:	 	Jeannette Ganousis
	 	 	 	 	 	 	Title:	 	Senior Vice President
			
	 	 	 	 	THE BANK OF NOVIA SCOTIA
					
	 	 	 	 	 	 	By:	 	/s/    JOHN QUICK        
	 	 	 	 	 	 	Name:	 	John Quick
	 	 	 	 	 	 	Title:	 	Managing Director
			
	 	 	 	 	LASALLE BANK NATIONAL ASSOCIATION
					
	 	 	 	 	 	 	By:	 	/s/    NATE PALMER        
	 	 	 	 	 	 	Name:	 	Nate Palmer
	 	 	 	 	 	 	Title:	 	Vice President
			
	 	 	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
					
	 	 	 	 	 	 	By:	 	/s/    CATHERINE M.
JONES        
	 	 	 	 	 	 	Name:	 	Catherine M. Jones
	 	 	 	 	 	 	Title:	 	Vice President
			
	 	 	 	 	JPMORGAN CHASE BANK, N.A., SUCCESSOR BY MERGER TO:
	 	 	 	 	 BANK ONE, NA, SUCCESSOR BY MERGER TO:
 BANK
ONE, COLORADO, N.A.

					
	 	 	 	 	 	 	By:	 	/s/    C. DIANNE WOOLEY        
	 	 	 	 	 	 	Name:	 	C. Dianne Wooley
	 	 	 	 	 	 	Title:	 	Vice President

 EXHIBIT A 
  

SCHEDULE 1.01 – ORIGINAL COVENANTS 
  
 No Loan Party shall, nor shall it permit any Subsidiary to, directly or indirectly: 
  
 (a) Consolidated Total Leverage Ratio. Permit the Consolidated Total Leverage Ratio as of the end of any fiscal
quarter of the Borrower to be greater than (i) 3.75:1.0 for each of the fiscal quarters ending December 31, 2003 and March 31, 2004, (ii) 3.50:1.0 for each of the fiscal quarters ending June 30, 2004, September 30,
2004, December 31, 2004, March 31, 2005, June 30, 2005 and September 30, 2005, and (iii) 3.25:1.0 for each fiscal quarter ending thereafter. 
  
 (b) Consolidated Senior Leverage Ratio. Permit the Consolidated Senior Leverage Ratio as of the end of any fiscal
quarter of the Borrower to be greater than (i) 2.75:1.0 for each of the fiscal quarters ending December 31, 2003 and March 31, 2004, (ii) 2.50:1.0 for each of the fiscal quarters ending June 30, 2004, September 30,
2004, December 31, 2004, March 31, 2005, June 30, 2005 and September 30, 2005, and (iii) 2.25:1.0 for each fiscal quarter ending thereafter. 
  
 (c) Consolidated Net Worth. Permit Consolidated Net Worth at any time to be less than the sum of (i) an amount
equal to eighty-five percent (85%) of Consolidated Net Worth as of the end of the fiscal quarter ending September 30, 2003, increased on a cumulative basis as of the end of each fiscal quarter of the Borrower, commencing with the fiscal
quarter ending December 31, 2003, by an amount equal to 75% of Consolidated Net Income (to the extent positive) for the fiscal quarter then ended (provided that, solely for purposes of this clause (i), the calculation of Consolidated Net Income
for the fiscal quarter ending December 31, 2003 shall exclude the effect of all fees, expenses and charges (including make whole payments) associated with the repayment of the Senior Notes and the Existing Credit Agreement) plus
(ii) 100% of the proceeds of all equity issuances after the Effective Date. 
  
 (d) Consolidated Fixed Charges Coverage Ratio. Permit the Consolidated Fixed Charges Coverage Ratio as of the end of any fiscal quarter of the Borrower to be less than 2.0:1.0. 
  
 (e) Consolidated Capital Expenditures. Permit Consolidated
Capital Expenditures for any fiscal year to exceed an amount equal to twenty percent (20%) of Consolidated EBITDA for the immediately preceding fiscal year.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]