Document:

NAVB 03.31.2015 EX10-2

Exhibit 10.2

SECURITIES EXCHANGE AGREEMENT

This SECURITIES EXCHANGE AGREEMENT dated as of March 11, 2015 (this “Agreement”) is made by and between Navidea Biopharmaceuticals, Inc., a Delaware corporation (the “Company”), Platinum-Montaur Life Sciences, LLC, a Delaware limited liability company Platinum-Montaur Life Sciences, LLC, a Delaware limited liability company (the “Lead Purchaser”) and the other investors set forth on Annex A hereto (each, including the Lead Purchaser, a “Purchaser” and collectively the “Purchasers”).

Recitals

A. Pursuant to the terms of a Securities Purchase Agreement of even date herewith (the “Purchase Agreement”), the Purchasers have agreed to purchase up to an aggregate of fifty (50) shares of the Series A Convertible Preferred Stock the (“Preferred Stock”),of the Company’s subsidiary, Macrophage Therapeutics, Inc. (“MTI”), along with warrants to purchase common stock of MTI.
B.As additional consideration for the purchase of the Securities, the Company and the Purchasers have agreed that the Purchasers shall have the right and option to exchange the Preferred Stock for common stock, $.001 par value, of the Company (“Common Stock”) on the terms contained in this Agreement. 
Statement of Agreement
In consideration of the foregoing, and of their mutual agreements set forth herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:
Section 1.Definitions.  For the purposes of this Agreement, the following terms have the following meanings:
“Certificate of Designations” means Certificate of Designations, Voting Powers, Preferences, Limitations, Restrictions, and Relative Rights of the Preferred Stock.

“Public Offering” means a firm commitment underwritten public offering of common stock of MTI pursuant to an effective registration statement under Section 5 of the Securities Act in which the gross cash proceeds to MTI (before underwriting discounts, commissions and fees) from such public offering are at least $50,000,000.

“SEC Reports” shall mean all forms, reports, statements and other documents (including, without limitation, exhibits, annexes, supplements and amendments to such documents) filed by the Company, or sent or made available by the Company to its security holders, under the Exchange Act or the Securities Act.

“Trading Day” means any day during which the principal exchange on which the Common Stock is traded shall be open for trading. 

“VWAP” means, on the applicable date, the volume weighted average price per share of the Common Stock on the principal market where the Common Stock is listed or traded as reported by Bloomberg, L.P. using the AQR function for the twenty Trading Days preceding such date.

Capitalized terms used in this Agreement and not otherwise defined shall have the respective meanings defined in the Purchase Agreement.

Section 2.    Exchange of Securities.
(a)    Subject to the terms and conditions herein set forth, if a Public Offering has not closed on or before the second anniversary of the Initial Closing, for a period of thirty (30) days thereafter (the “Exercise Period”), a holder of Preferred Stock shall have the right and option to exchange each share of Preferred Stock held by such holder for the number of fully paid shares of Common Stock (the “Exchange Shares) obtained by dividing $50,000 by the greater of (i) 80% of VWAP on the second anniversary of the Initial Closing or (ii) $3.00. In consideration of and in express reliance upon the representations, warranties, covenants, terms and conditions of this Agreement, the Company agrees to issue and deliver the Exchange Shares to the holders in exchange for their shares of Preferred Stock.
(b)    A holder of Preferred Stock may exercise the exchange right provided under Section 1(a) as to all shares (and not less than all shares) of Preferred Stock held by such holder by delivering written notice to the Company that the holder wishes to exercise the exchange right on or before the last day of the Exercise Period, accompanied by the certificate or certificates for such shares of Preferred Stock (or, if such registered holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Company to indemnify the Company against any claim that may be made against the Company on account of the alleged loss, theft or destruction of such certificate), at the office of the transfer agent for the Preferred Stock (or at the principal office of the Company if the Company serves as its own transfer agent). Such notice shall state such holder’s name or the names of the nominees in which such holder wishes the certificate or certificates for shares of Common Stock to be issued. If required by the Company, certificates surrendered for exchange shall be endorsed or accompanied by a written instrument or instruments of transfer, in form satisfactory to the Company, duly executed by the registered holder or his, her or its attorney duly authorized in writing. The close of business on the date of receipt by the transfer agent (or by the Company if the Company serves as its own transfer agent) of such certificates (or lost certificate affidavit and agreement) and notice shall be the effective time of the exchange, and the shares of Common Stock issuable upon exchange of the shares of Preferred Stock represented by such certificate shall be deemed to be outstanding of record as of such date the “Exchange Date”).  
(c)    In the event of the exercise by a holder of Preferred Stock of the exchange right provided in this Section 2 in accordance with and subject to the terms and conditions hereof, (i) if the Common Stock is registered under Section 12 of the Exchange Act, the Exchange Shares shall be issued and delivered to the Depository Trust Company (“DTC”) account designated by the holder via the Deposit Withdrawal Agent Commission System (“DWAC”) within a reasonable time, not exceeding three (3) Trading Days after the Exchange Date, or (ii) if the Common Stock is not so registered, certificates for the Exchange Shares shall be dated the date of such exercise and delivered to the holder hereof within a reasonable time, not exceeding three (3) Trading Days after the Exchange Date, and the holder shall be deemed for all purposes to be the holder of the shares of Exchange Stock so purchased as of the date of such exercise.
Section 3.    Redemption Right.  In the event that any holder of Preferred Stock does not timely exercise the exchange right provided in Section 2, the Purchasers acknowledge that MTI shall have the right and option to redeem all shares of Preferred Stock held by such holders as provided in Section 10 of the Certificate of Designations.
Section 4.    Representations and Warranties of the Company.
(a)    The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has the corporate power and authority to execute, deliver and perform its obligations under this Agreement.
(b)    The execution, delivery and performance by the Company of this Agreement, the issuance of the Exchange Shares, and the consummation of the transactions contemplated hereby and thereby (a) has been duly authorized by all necessary corporate action; (b) do not and will not contravene the terms of the Certificate of Incorporation or By-Laws of the Company or any amendment thereof or any federal, state, local or foreign statute, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries are bound or affected; (c) do not and will not (i) conflict with, contravene, result in any material violation or breach of or material default under (with or without the giving of notice or the lapse of time or both), (ii) create in any other Person a right or claim of termination or amendment, or (iii) require any material modification or acceleration or cancellation of, any Contractual Obligation of the Company or any of its Subsidiaries; and (d) do not and will not result in the creation of any Lien (or obligation to create a Lien) against any material property or asset of the Company or any of its, except, in all cases, for such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect.
(c)    This Agreement has been duly executed and delivered by the Company, and this Agreement constitutes the legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application.
(d)    Neither the Company nor any of its Subsidiaries is required under federal, state, foreign or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or Governmental Authority in order for it to execute, deliver or perform any of its obligations under this Agreement or issue and sell the Exchange Shares in accordance with the terms hereof (other than any filings, consents and approvals which may be required to be made by the Company under applicable state and federal securities laws, or rules).
(e)    The Exchange Shares to be issued pursuant to Section 2 will, at the time of issuance, be validly issued, fully paid and non-assessable, free and clear of all liens, encumbrances and rights of first refusal or preemptive rights of any kind imposed by or through the Company, and the holders thereof shall be entitled to all rights accorded to a holder of Common Stock.
(f)    The Company has authorized and reserved, and covenants to continue to reserve, free of preemptive rights and other similar contractual rights of stockholders, shares of Common Stock sufficient to effect the exchange of the Preferred Stock as provided in Section 2 hereof. 
Section 5.    Representations and Warranties of Purchasers.
Each Purchaser, severally and not jointly, hereby represents and warrants to the Company, as of the date hereof and as of each Closing Date, as follows:
 
(a)    If an entity, such Purchaser is a duly organized, validly existing and in good standing under the laws of its jurisdiction of organization.
(b)    Such Purchaser has the requisite power and authority to enter into and perform its obligations under this.  In the case of a Purchaser that is an entity, the execution, delivery and performance of this Agreement by such Purchaser and the consummation by it of the transactions contemplated hereby (a) have been duly authorized by all necessary corporate or limited liability company action, and (b) does not contravene the terms of the organizational or governing documents of such Purchaser.  No further consent or authorization of such Purchaser, any board of directors or other governing body, or of its shareholders or members, is required for the execution, delivery or performance of this Agreement by such Purchaser. When executed and delivered by such Purchaser, this Agreement shall constitute the valid and binding obligation of such Purchaser enforceable against such Purchaser in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application.
(c)    Purchaser is, and on such date on which it exercises the exchange right provided in Section 2, will be, an “accredited investor” as defined in Rule 501(a) under the Securities Act.  Such Purchaser has such experience in business and financial matters that it is capable of evaluating the merits and risks of an investment in the Common Stock. Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act and such Purchaser is not a broker-dealer.  
(d)    Purchaser owns and holds, and on such date on which it exercises the exchange right provided in Section 2 it will own and hold, beneficially and of record, the entire right, title, and interest in and to the Preferred Stock, free and clear of any claim, restriction or Lien other than restrictions on transfer under the Securities Act and applicable state securities laws. 
(e)    Purchaser acknowledges that it has carefully reviewed the SEC Reports, and other publicly available information furnished by the Company, and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of this Agreement and the Common Stock and the merits and risks of investing in the Common Stock; (ii) access to information about the Company and Subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to verify the information that has been furnished by the Company.
(f)    Purchaser understands that the Exchange Stock has not been registered under the Securities Act and must be held indefinitely unless registered under the Securities Act or an exemption from registration is available. Purchaser acknowledges that he or it is familiar with Rule 144, and that Purchaser has been advised that Rule 144 permits resales of unregistered securities only under certain circumstances, including that the securities be held for a minimum holding period, and that while “tacking” of the holding period of the Preferred Stock to the holding period of the Exchange Shares may be available, there is no assurance that such tacking will be available when Purchaser exercises the exchange right. Purchaser understands that to the extent that Rule 144 is not available, Purchaser will be unable to sell any Exchange Shares without either registration under the Securities Act or the existence of another exemption from such registration requirement.
(g)    Purchaser understands that the Exchange Shares will be issued in reliance on a transactional exemption from the registration requirements of federal and state securities laws and the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of Purchaser set forth herein in order to determine the applicability of such exemptions.
(h)    Purchaser has not employed any broker or finder or incurred any liability for any brokerage or investment banking fees, commissions, finders’ structuring fees, financial advisory fees or other similar fees in connection with the transactions contemplated by this Agreement.
Section 6.    Conditions Precedent to the Company’s Obligations. The obligation hereunder of the Company to issue and deliver the Exchange Shares to a Purchaser in exchange for Preferred Stock is subject to the satisfaction or waiver, at or before the Exchange Date, of each of the conditions set forth below. These conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion.
(a)    The Purchaser shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Purchaser at or prior to the Exchange Date.
(b)      The representations and warranties of the Purchaser shall be true and correct in all material respects as of the date when made and as of the Exchange Date as though made at that time, except for representations and warranties that are expressly made as of a particular date, which shall be true and correct in all material respects as of such date.
Section 7.    Conditions Precedent to the Purchaser’s Obligations. The obligation hereunder of a Purchaser to accept the Exchange Shares in exchange for the Preferred Stock is subject to the satisfaction or waiver, at or before the Exchange Date, of each of the conditions set forth below. These conditions are for the Investor’s sole benefit and may be waived by the Purchaser at any time in his or its sole discretion.
(a)    The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Exchange Date.
(b)    Each of the representations and warranties of the Company shall be true and correct in all material respects as of the date when made and as of the Exchange Date as though made at that time, except for representations and warranties that speak as of a particular date, which shall be true and correct in all material respects as of such date.
Section 8.    Miscellaneous Provisions.
(a)    Fees and Expenses.  Each party shall pay the fees and expenses of its advisors, counsel, accountants and other experts, if any, and all other expenses, incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.
(b)    Specific Performance; Consent to Jurisdiction; Venue.
(i)    The Company and the Purchasers acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof or thereof, this being in addition to any other remedy to which any of them may be entitled by law or equity.
(ii)    Each party to this Agreement hereby irrevocably agrees that the any legal action or proceeding arising out of or relating to this Agreement and any agreements or transactions contemplated hereby or thereby may be brought only in the Delaware Chancery Court or the United States District Court for the District of Delaware and hereby expressly submits to the personal jurisdiction and venue of such courts for the purposes thereof and expressly waives any claim of improper venue and any claim that such courts are an inconvenient forum.  Each party hereby irrevocably consents to the service of process of any of the aforementioned courts in any such suit, action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, at the address in effect for notices to it under this Agreement, such service to become effective ten (10) days after such mailing. Nothing in this Section 8(b)(ii) shall affect or limit any right to serve process in any other manner permitted by law. The Company and the Purchasers hereby agree that the prevailing party in any suit, action or proceeding arising out of or relating to the Securities, this Agreement or the other Transaction Documents, shall be entitled to reimbursement for reasonable legal fees from the non-prevailing party. The parties hereby waive all rights to a trial by jury.
(c)    Entire Agreement; Amendment. This Agreement and the Purchase Agreement contain the entire understanding and agreement of the parties with respect to the matters covered hereby and, except as specifically set forth herein or therein, neither the Company nor the Purchasers make any representation, warranty, covenant or undertaking with respect to such matters, and they supersede all prior understandings and agreements with respect to said subject matter, all of which are merged herein.  No provision of this Agreement may be waived or amended other than by a written instrument signed by the Company and the holders of at least a majority of the shares of Preferred Stock then outstanding. Any amendment or waiver effected in accordance with this Section 8(c) shall be binding upon the Purchasers (and their permitted assigns) and the Company.
(d)    Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery by telecopy or facsimile at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 
	
			
	If to the Company:   
	 
	Navidea Biopharmaceuticals, Inc..
425 Metro Place North, Suite 300
Dublin, Ohio  43017-1367
Facsimile No.: (614) 793-7520
Attention: Ricardo J. Gonzalez

	 
	 
	 

	with copies (which copies
shall not constitute notice
to the Company) to:
	 
	Dickinson Wright PLLC
150 E. Gay Street
Suite 2400
Columbus OH 43215
Attention: William J. Kelly

	 
	 
	 

	If to the Purchasers:
	 
	c/o Platinum-Montaur Life Sciences, LLC
250 West 55th Street 
14th Floor, New York
New York 10019 
Attention:  David Steinberg

	 
	 
	 

	with copies (which copies
shall not constitute notice
to the Purchasers) to:
	 
	Burak Anderson & Melloni, PLC
30 Main Street, PO Box 787
Burlington, Vermont 05402-0787
Facsimile No.: (802) 862-8176
Attention: Shane W. McCormack

	 
	 
	 

Any party hereto may from time to time change its address for notices by giving written notice of such changed address to the other party hereto.

(e)    Waivers.  No waiver by any party of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter.  
(f)     Headings. The article, section and subsection headings in this Agreement are for convenience only and shall not constitute a part of this Agreement for any other purpose and shall not be deemed to limit or affect any of the provisions hereof.
(g)    Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the parties hereto.  Subject to applicable securities laws and any restrictions contained herein, a Purchaser may assign any of its rights under this Agreement to any Person, and any holder of shares of Preferred Stock may assign, in whole or in part, such shares of Preferred Stock to any Person.  The Company may not assign any of its rights, or delegate any of its obligations, under this Agreement without the prior written consent of the Purchasers, and any such purported assignment by the Company without the written consent of the Purchasers shall be void and of no effect.  
(h)    No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person.
(i)    Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction. 
(j)    Survival. The representations and warranties of the Company and the Purchasers contained in Sections 4 and 5 shall survive the execution and delivery hereof and the Closing until the third anniversary of the Closing Date.  The agreements and covenants set forth herein shall survive the execution and delivery hereof and Closing hereunder.
(k)    Counterparts.  Electronic transmissions or retransmissions of images of any executed original document shall be deemed to be the same as the delivery of an executed original.  At the request of any party hereto, the other parties hereto shall confirm such electronic transmissions by executing duplicate original documents and delivering the same to the requesting party or parties.  This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement, it being understood that all parties need not sign the same counterpart.
(l)    Publicity. The Company agrees that it will not disclose, and will not include in any public announcement, the name of the Purchasers without the consent of the Purchasers, which consent shall not be unreasonably withheld or delayed, or unless and until such disclosure is required by law, rule or applicable regulation, including without limitation any disclosure pursuant to the Registration Statement, and then only to the extent of such requirement. Notwithstanding the foregoing, the Purchasers consent to being identified in any filings the Company makes with the Commission to the extent required by law or the rules and regulations of the Commission.

[Signature Page Follows]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized persons as of the date first indicated above.

	
		
	 
	NAVIDEA BIOPHARMACEUTICALS, INC.

By:   /s/ Brent L. Larson                  
   Name: Brent L. Larson
   Title: Executive Vice-President and CFO

	 
	 

	 
	PURCHASERS:

	 
	

PLATINUM-MONTAUR LIFE SCIENCES, LLC

By:   /s/ D. Steinberg            
   Name: David Steinberg
   Title: Authorized Signatory

/s/ Michael Goldberg                    
Michael Goldberg

COLUMBUS 59564-22 26253v4EX-4.13

 EXHIBIT 4.13 

BIOLASE, INC. 

NOTICE OF GRANT OF STOCK OPTION 

Optionee: David C. Dreyer 
 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:		871,710
	Grant Date:		March 9, 2015
	Exercise Price:		$1.99 per share

 Vesting Schedule: The Option Shares shall vest be exercisable (A) as to 60% of the total option (i.e., 523,026
option shares) (the “First Tranche”) in accordance with the following schedule: (i) 130,757 Option Shares would vest and be exercisable on the one-year anniversary of the Grant Date, and (ii) the balance of the First Tranche
(i.e., 392,269 option shares) would vest and be exercisable for 10,896 shares on each one-month anniversary following the one-year anniversary of the Grant Date for a period of 35 consecutive months, and for 10,909 shares on the 36-month
anniversary, and (B) as to 40% of the total option (i.e., 348,684 option shares) (the “Second Tranche”) in accordance with the following schedule: 348,684 option shares would vest and be exercisable on the ten-year anniversary
of the Grant Date or based on the Corporation’s achievement of certain enumerated financial performance targets or other milestones, at the discretion of the Compensation Committee of the Board of Directors; provided the Optionee remains
continuously employed by the Corporation through the applicable vesting dates. 
 Expiration Date: March 9, 2025 

 

			
	BIOLASE, INC.
		
	By:		 /s/ Jeffrey M. Nugent

			Name: Jeffrey M. Nugent
			Title: President and Chief Executive Officer

 Accepted this 9th day of March, 2015 

/s/ David C. Dreyer 
 David C. Dreyer 

 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. 

 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 $1.99 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 March 9, 2015. 
 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:		  

 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. 

 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.  

*                *       
         *

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