Document:

License And Distribution Agreement

 EXHIBIT 10.1 
 LICENSE AND DISTRIBUTION AGREEMENT 
 THIS LICENSE AND DISTRIBUTION AGREEMENT (the “Agreement”) is made and
dated as of this 8th day of August, 2006 (the “Effective Date”) by and among BIOLASE Technology, Inc., a Delaware corporation (the “Company”) and Henry Schein, Inc., a Delaware corporation (the “Distributor”) with
reference to the following facts: 
 A.     The Company is engaged in the business of manufacturing, distributing,
marketing, and selling various dental laser systems including, without limitation, the following product lines: Waterlase MD, Waterlase YSGG, ****, LaserSmile and DioLase Plus. The term “Products” as used herein shall mean
(i) Waterlase MD, Waterlase YSGG, **** , LaserSmile and DioLase Plus (the “Systems”) and any accessories and consumables therefor, (ii) any replacements, new models, updated versions, or the next generation of such Systems
as well as any accessories and consumables therefor, but specifically excluding the future **** (“Replacements”), and (iii) any Future Products or **** Products which Distributor elects to have added to this Agreement as
Products pursuant to Section 1.2 hereof. In addition, the **** is not yet available and shall only become part of the Products when the Company makes such systems available to Distributor. 
 B.     Distributor wishes to distribute and sell certain of the Products to practicing licensed dentists and to practices, clinics or
governmental, quasi governmental or similar entities (including, without limitation, prisons, hospitals, schools, educational institutes and Indian reservations) consisting of one or more licensed dentists (collectively, “Customers”)
located within the continental United States of America, Alaska, and Hawaii (excluding however territories and possessions of the United States of America) and Canada (collectively, the “Territory”), on the terms and conditions contained
herein. In the event that Distributor elects to have **** Products as Products under this Agreement pursuant to Section 1.2 hereof, then the term “Customers” as used in this Agreement with respect to the distribution of
**** Products shall be deemed to solely refer to **** Customers. 
 C.     Distributor also wishes to sell
to Customers located within the Territory training, educational and repair services associated with the Products and extended service contracts applicable to the Products and to perform all fulfillment services related to the sale and servicing of
the Products and provision of the foregoing services, including, without limitation, receipt and processing of customer purchase orders, product warehousing, customer shipping, customer installation, customer billing and collection, and customer
training (all of the foregoing collectively, the “Distributor Services”), on the terms and conditions contained herein. 
 D.     In addition, the parties wish to allocate between themselves certain responsibilities related to the distribution of the Products and the sale of Distributor Services, including order 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -1- 

 
fulfillment, Product installation, customer billing and collection, Product repair and servicing, training, education, and marketing, all on the terms and
conditions contained herein. 
 E.     In respect of such allocation, the Company as an independent contractor wishes to
provide to Distributor certain of the Distributor Services as set forth in Section 5 of this Agreement (collectively, the “Company Services”). 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 SECTION 1 – APPOINTMENT & IMPLEMENTATION 
 1.1     Appointment of Distributor,
Products, and Territory. The Company hereby appoints Distributor, and Distributor hereby accepts such appointment, as the exclusive distributor to Customers within the Territory for the sale of the Products; provided, however, during the period
between the Effective Date and the Launch Date (as that term is hereinafter defined) the Company may sell the Products directly to Customers within the Territory. The parties may from time to time by written agreement executed by both parties
include additional areas within the definition of Territory. Except as otherwise set forth herein, the Company agrees not to appoint any other person to act as its distributor of the Products to Customers within the Territory during the
“Term” (as hereinafter defined) of this Agreement. Nothing in this Agreement shall limit the rights of the Company to develop, manufacture, sell, promote, market, purchase, solicit orders, distribute or enter into any other dealings with
third parties with regard to (i) any products outside of the Territory, (ii) any product ( other than the “Products” as defined above) within the Territory, or (iii) any sales of any Products to any third party within the
Territory (other than any sales to third parties where the end users are intended to be “Customers” (as defined above) within the Territory). Distributor agrees that it shall not directly or indirectly sell or distribute any of the
Products to a Customer or destination outside of the Territory or to any other person or entity who Distributor knows, or has reason to know, intends to directly or indirectly sell the Products to an end user who is not a Customer intending to use
the Products in the Territory. The Company shall be responsible for determining the timing and appropriateness of phasing in and out of new and old Products and transition issues related thereto. 
 1.2     Additional Products. Distributor shall have the right of first refusal to add as additional “Products” hereunder
(i) any future dental products, and accessories and consumables therefor (other than Replacements), developed by the Company during the Term that are intended for sale to Customers (“Future Products”) and (ii) dental laser
systems, and accessories and consumables therefor, intended for use in the **** market within the Territory provided that granting such right to Distributor would not violate any contractual obligation that the Company may have to any third
party (the “**** Products”). If at any time during the Term the Company proposes to sell or have sold to Customers in the Territory any Future Products or any **** Products (for the purpose of **** Products the term
“Customers” shall be deemed to be practicing licensed **** and to practices or clinics consisting of one or more licensed ****, 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -2- 

 
herein “**** Customers”), then the Company shall give Distributor written notice of the Company’s intention to sell such Future
Products to Customers in the Territory or **** Products to **** Customers and the proposed applicable list price and discounts, minimum purchase requirements and other significant terms applicable to such Future Products or ****
Products. The Company shall endeavor, on a good faith basis, to have such proposed terms be as good as the terms that the Company would intend to offer to a third party; provided that the parties acknowledge the process of subsequent negotiations
with third parties may ultimately result in variations, modifications and improvements to such terms. Distributor shall have an option for a period of **** days from receipt of such notice to elect by written notice to the Company to have
such Future Products or **** Products, as applicable, added as Products under this Agreement. If Distributor fails to give the Company written notice as above required, then the Future Products or **** Products, as applicable, shall
not be Products hereunder and the Company shall be free to offer distribution rights to the Future Products or **** Products, as applicable, to Customers within the Territory to one or more third parties and/or to distribute the Future
Products to Customers or **** Products to **** Customers, as applicable within the Territory itself or through its Affiliates. The Company’s future ****, and any successor to the ****, will become a Product under
this Agreement and will remain a Product so long as Distributor meets the mutually agreed upon terms and conditions for the ****, including minimum purchase requirements. Any breach of this Agreement specifically with respect to the
**** will only affect Distributor’s rights with respect to the **** Product. 
 1.3     License Fee.
Concurrently with the execution of this Agreement Distributor shall pay to the Company the sum of Five Million Dollars (US$ 5,000,000) as a license fee (“Initial License Fee”). Such Initial License Fee shall be deemed fully earned upon
receipt and non refundable (except as provided in Sections 1.5 and 2.3 below). 
 1.4     Appointment of the Company.
Distributor hereby appoints the Company, and the Company hereby accepts such appointment, as the exclusive provider to Distributor within the Territory of the Company Services. The Company may, upon terms and conditions mutually agreeable to
Distributor and the Company, discontinue providing any or all of the Company Services or make whatever changes to the Company Services as the parties mutually agree are necessary, desirable or appropriate. Except as otherwise provided in
Section 5 hereof, Distributor agrees not to appoint any other person to provide the Company Services to Customers on behalf of Distributor and not to itself provide the Company Services to Customers during the Term. 
 1.5     Licensing. Distributor acknowledges that the Company may from time to time grant to the Company’s competitors licenses to the
Company’s intellectual property rights in the market for dental laser systems in which the **** is either **** or **** (the “**** Market”) with respect to the sale of products to Customers in the Territory
(“Product Intellectual Property Licenses”). In the event that during the Term the Company (i) grants Product Intellectual Property Licenses to any third party (each an “Additional **** Licensee”) other than the
Present **** Licensees (as hereinafter defined) and (ii) each of the following events occur: (A) the “Period 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -3- 

 
Sales Criteria” is met where the combined sales in a Period of the Present **** Licensees and any Additional **** Licensees into the
United States portion of the **** Market (“Combined Licensee Sales”) exceeds **** of the aggregate combined sales for the Period of the Company, the Present **** Licensees and any Additional **** Licensees into
the United States portion of the **** Market (“Period Sales”) and (B) Distributor achieves less than **** of the Minimum Purchase Requirements (as hereinafter defined) in the Period in which the Period Sales Criteria is
met, THEN (X) the Minimum Purchase Requirements for that Period shall be reduced based upon the Market Share Loss Formula (as determined below) and (Y) the Company shall refund to Distributor a portion of the Initial License Fee or the
Additional License Fee, as applicable, based upon the Market Share Refund Formula (as determined below). Such amount shall be paid within **** days of the Period end date. The term “Present **** Licensees” shall be deemed to
include any subsidiary, Affiliate, successor and assign of the following groups of companies: ****, ****, and **** (including, without limitation, ****, **** and ****). For purposes of determining the Period
Sales Criteria, Period sales of the Company, the Present **** Licensees and any Additional **** Licensees into the United States portion of the **** Market shall be determined solely from the Company’s books and records
with respect to such sales and shall be valued at estimated end-user purchase prices. The term “Affiliate” as used herein with respect to any entity, shall mean an entity that directly, or indirectly through one or more intermediaries,
controls or is controlled by, or is under common control with the entity specified (with “control” meaning the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity,
whether through the ownership of voting securities, by contract, or otherwise). The term “Period” as used herein shall mean one of the Periods set forth in Exhibit A hereto, as applicable. 
 The reduction in the Minimum Purchase Requirements for a particular Period based on the “Market Share Loss Formula” shall be determined as follows:
(i) ****, TIMES (ii) ****, and TIMES (iii) ****, LESS the greater of (x) ****, or (y) ****. For an example of the calculation of the Market Share Loss Formula see Exhibit A. 
 The refund to Distributor of a portion of the Initial License Fee or the Additional License Fee, as applicable, based upon the “Market Share Refund Formula”
shall be determined as follows: (i) the **** (as defined in Exhibit A) ****, TIMES (ii) ****, LESS the greater of (x) ****, or (y) ****. For an example of the calculation of the Market Share
Refund Formula see Exhibit A. 
 1.6     Implementation. During the period (the “Pre-Launch Period”) between the
Effective Date and September 1, 2006 (the “Launch Date”) the parties will use commercially reasonable efforts to transition certain distribution functions and services to Distributor and to determine certain mutual implementation
functions, as Distributor and Company may from time to time mutually agree. As a result, to the extent the Company during the Pre-Launch Period performs Distributor Services (as hereinafter defined) otherwise to be performed by Distributor pursuant
to this Agreement, such services shall be performed without charge to Distributor and shall be performed on behalf of and for the credit of Distributor. 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -4- 

 The parties further agree in the event that (i) prior to the Effective Date the Company either (A) obtained a
signed order for Products from a Customer within the Territory, or (B) provided such Customer with a valid quotation for such Products (collectively, “Quoted Customers”), AND (ii) such Products are not shipped to such Quoted
Customer prior to the Launch Date, THEN upon the Launch Date such order or quotation shall be deemed to be an order or quotation of Distributor and any shipment of such Products on or after the Launch Date to such Quoted Customer shall be for the
account of Distributor and shall be deemed to be a sale of Products pursuant to the terms of this Agreement. In addition and notwithstanding the provisions of Section 2.4 hereof, so long as such orders are shipped within the month of
September 2006, the Company shall sell to Distributor the Products required to fulfill such orders or quotations to Quoted Customers at a Distributor Purchase Price equal to the lesser of (i) **** or (ii) ****. Following the
Effective Date the Company shall provide to Distributor a list of Quoted Customers. 
 In the event that during the Pre-Launch Period: (i) the Company
obtains a signed order, on a BIOLASE order form, for a System from a Customer within the Territory, (ii) such Customer is not a Quoted Customer, (iii) the Products to fulfill such order are shipped to such non-Quoted Customer prior to the
Launch Date, and (iv) Distributor can reasonably demonstrate it assisted in obtaining such sale (such order a “Participating Order”) THEN the Company shall pay to Distributor in respect of such sale an amount equal to **** of
the following: (A) ****, LESS (B) ****. Such payment to Distributor shall become due following receipt by the Company of full payment for the System by the Customer. 
 SECTION 2 – ORDERING, SHIPPING & PRICING 
 2.1    
Placement of Orders. Distributor shall place orders for Products in writing to the Company. Each order shall specify the quantity of Products which Distributor wishes to purchase and the date(s) requested for delivery. The parties may deliver
and exchange form or custom purchase orders, invoices, and acknowledgments. Such documents may or may not include language regarding terms and conditions other than as set forth in this Agreement. In either event, it is hereby expressly agreed that
such documents shall be delivered solely for the purpose of establishing the quantity of the Product ordered, shipping destination, and timing, and for the convenience of order entry, and no terms or conditions therein contained relating to
quantity, shipping destination, or timing, which are inconsistent with the terms of this Agreement shall have any effect whatsoever, and no terms or conditions contained in any such documents relating to any subject other than quantity, shipping
destination, or timing, shall have any force or effect whatsoever, notwithstanding any provisions contained therein to the contrary. 
 2.2     Acceptance and Filling of Orders. The Company will use its commercially reasonable efforts to fill the accepted orders as promptly as practicable. In all cases, the Company will use commercially reasonable
efforts to advise Distributor of any inability to make full and timely delivery of Products which Distributor has previously ordered. For all shipments of Products, Distributor shall pay all transportation charges, including freight and insurance
costs from the FOB Point to its warehouse. Possession of and title to all Products ordered hereunder shall be deemed to pass to Distributor upon delivery to the common carrier at the FOB Point. 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -5- 

 
Distributor shall thereupon assume all risk of loss or damage with respect to such Products save and except to the extent of the warranties set forth in
Sections 4.1 and 4.2 hereof. For the purposes of this Agreement the “FOB Point” shall be Irvine, California unless and until the Company notifies Distributor of another FOB Point. 
 2.3     Minimum Purchase Requirements. At the end of the eighteen (18) month period following the Launch Date (the “First Review
Period”) and at the end of the eighteen (18) month period following the First Extension Date (as hereinafter defined) (the “Second Review Period”), if applicable, the Company shall evaluate Distributor’s purchase of Products
under this Agreement. If Distributor fails to satisfy the Minimum Purchase Requirements (“Minimum Purchase Requirements”) as set forth on Exhibit A hereto for either the First Review Period (subject to adjustment as provided in the
following paragraph) or the Second Review Period, the Company shall have the option (the “Buy Back Option”), in its sole and absolute discretion: (i) to reduce the Term of the Agreement to a period of **** from the date which
is **** after receipt by Distributor of the Company’s notice of exercise of the Buy Back Option (“Buy Back Effective Date”) and to remove the provisions of this Agreement set forth on Exhibit A (the “Excluded Terms”),
(ii) to designate one or more additional distributors for sales of any or all of the Products to Customers within any part or all of the Territory and/or to distribute itself or through any of its Affiliates any or all of the Products to
Customers within any part or all of the Territory, (iii) to reduce to **** the Distributor Discount on any Systems with a Distributor Discount exceeding **** and to reduce the Distributor Discount on any Products other than
Systems to ****, and (iv) to cease the payment of any and all System Purchase Incentives except for any System Purchase Incentives that were earned during the applicable Review Period. Notwithstanding the foregoing, Company shall
not be permitted to exercise the Buy Back Option if at the completion of either the First Review Period or the Second Review Period there exists a material uncured breach of any material provision of this Agreement on the part of the Company.

 For the sole purpose of calculating the Company’s right to exercise the Buy Back Option with respect to the First Review Period only: (i) the
Minimum Purchase Requirements for the months of September and October, 2006 shall be Aggregate Purchases of Systems (as defined in Exhibit A) in the amount of $**** (the “September/October Target Amount”), and
(ii) notwithstanding the provisions of Exhibit A, in the event that Distributor would otherwise have failed to satisfy the Minimum Purchase Requirements for the First Review Period, then the Minimum Purchase Requirements for the First Review
Period shall be reduced by an amount equal to the LESSER of (A) $****, or (B) the September/October Target Amount LESS all final invoiced shipments of Systems to Customers by Distributor and final invoiced shipments of Systems to
Customers by Company solely relating to Participating Orders, all recalculated at Distributor Purchase Price, from the Effective Date through October 31, 2006. If as a result of the foregoing reduction Distributor shall still have failed to
satisfy the Minimum Purchase Requirements for the First Review Period then the Company shall have the right to exercise the Buy Back Option as provided in the preceding paragraph. 
 In the event of exercise of the Buy Back Option, on the Buy Back Effective Date this Agreement shall become a non-exclusive distribution agreement, the Excluded Terms shall be deemed removed 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -6- 

 
and the Agreement (as revised) shall continue in full force and effect for the remainder of the Term (as reduced above). Written notice of the Company’s
intent to exercise the Buy Back Option with respect to the First Review Period or the Second Review Period must be provided to Distributor within **** after the end of that particular Review Period. In the event that the Company exercises the Buy
Back Option then it shall repay to Distributor on the Buy Back Effective Date portions of the Initial License Fee or the Additional License Fee (as hereinafter defined), as follows: (i) in the event of exercise is with respect to the First
Review Period then a Two Million Five Hundred Thousand Dollar (US$ 2,500,000) portion of the Initial License Fee shall be repaid to Distributor, or (ii) in the event of exercise is with respect to the Second Review Period then a Two Million
Five Hundred Thousand Dollar (US$ 2,500,000) portion of the Additional License Fee shall be repaid to Distributor. There shall be no repayment to Distributor of any portion of the Initial License Fee or the Additional License Fee if the exercise of
the Buy Back Option is not exercised, except as set forth in Section 1.5. The provisions of this Section 2.3 shall be the Company’s sole and exclusive remedy for the failure of Distributor to satisfy the Minimum Purchase Requirements
for either the First Review Period or the Second Review Period. 
 2.4     Purchase Price. Distributor shall pay the Company for
all Products which Distributor purchases and for all Company Services except to the extent such Company Services are expressly stated in Section 5 to be provided without charge (“Purchased Services”) at the Company’s then
applicable Distributor Purchase Price for such Products and Purchased Services as set forth in Exhibit A, unless the parties mutually agree in writing otherwise or unless the Distributor Discount is reduced pursuant to Section 2.3;
provided further, however, the Distributor Purchase Price for such Products and Purchased Services shall not be increased more than **** per calendar year during the Term. 
 2.5     Invoicing and Payments. Upon shipment of Products, the Company shall issue an invoice to Distributor in respect of such Products. Upon completion of particular Purchased Services the
Company shall issue an invoice to the Distributor in respect of such Purchased Services. Distributor shall pay the Company for all such invoices net **** from the date of issuance of the invoice to Distributor or on such other terms and
conditions as may be agreed to in writing from time to time by the Company and Distributor. All payments shall be in U.S. Dollars and must be made by electronic funds transfer to the Company’s account as the Company directs from time to time.
If Distributor fails to pay on the date due for any Products or Purchased Services invoiced to Distributor, the Company, in its sole and absolute discretion may (i) charge Distributor a late fee of **** per annum on the past-due balance,
or the highest rate then permitted by law, whichever is less; and/or terminate this Agreement pursuant to the provisions of Section 8.4.1.1 hereof. 
 2.6     Taxes. Prices quoted by the Company do not include sales, use, excise, customs, export, import, commodity or similar taxes. Distributor shall promptly pay all such taxes imposed by reason of the sale to it
of any Products or the provision of any services to it hereunder. Distributor agrees to provide the Company on request with reasonable proof of payment by Distributor of such taxes. Distributor further agrees to provide the Company on request with a
copy of any applicable tax exemption certificate or resale permit. Any personal property taxes assessable on the Products after delivery to the common carrier shall be borne by Distributor. 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -7- 

 2.7     System Purchase Incentives. Commencing in the Period beginning ****,
Distributor shall be entitled to receive System Purchase Incentives using the applicable System Purchase Incentive Percentage determined from the table in Exhibit A. To be entitled to receive System Purchase Incentives in a Period, Aggregate
Purchases of Systems (defined in Exhibit A) in the previous Period, less System Purchase Incentives earned in such Period, must have equaled or exceeded an amount that is **** greater than the Minimum Purchase Requirement for such previous
Period. Such System Purchase Incentive Percentage will be determined as of the beginning of each Period commencing ****, based upon the amount of Aggregate Purchases of Systems made in the previous Period. System Purchase Incentives will be
calculated on a monthly basis by multiplying the System Purchase Incentive Percentage TIMES the Aggregate Purchases of Systems, excluding the DioLasePlus Systems, for each month during the qualifying Period. All System Purchase Incentive payments
shall be in U.S. Dollars and will be made by electronic funds transfer to the Distributor’s account as the Distributor directs from time to time. System Purchase Incentive payments shall be paid within **** days of the end of each month
in which earned. 
 SECTION 3 – COMPLIANCE WITH LAWS AND RELABELING 
 3.1     Compliance with Laws, Regulations and Licenses. Each party (including its directors, officers, employees, agents and others acting on its behalf) represents and warrants to the other
party that it is legally qualified in the Territory to perform its obligations as contemplated by this Agreement. Each party shall comply with all applicable existing and future foreign, federal, state and local laws and governmental regulations and
laws or regulations (“Applicable Laws”) of any jurisdiction of applicable authority relative to each party fulfilling its obligations under this Agreement, including, without limitation, those relating to the importation of the Products,
sale of the Products to Customers within the Territory, and issuance of foreign exchange in connection therewith, and shall not, directly or indirectly, make any payments in violation thereof. In addition, each party will comply with all U.S. Food
and Drug Administration (“FDA”) rules, regulations and requirements relating to the sale of the Products, including, without limitation, all FDA Good Manufacturing Practices (GMP) requirements relating to the storage, handling, and
distribution of the Products (Sections 820.140 and 820.160) and complaints (Section 820.198). Each party represents and warrants to the other that such party holds and will continue to hold throughout the Term all licenses, permits and approvals
required by applicable law for the purchase, storage, handling, sales and distribution by such party of the Products, and further represents and warrants that it will continue to comply with the terms of all such licenses, permits and approvals. In
the event any such license, permit or approval shall be revoked or suspended by any applicable governmental authority, the party subject to such revocation or suspension shall immediately notify the other party of such revocation or suspension.

 3.2     Export of Products. Distributor acknowledges that any export of the Products is subject to regulation under United
States law. To the extent that any exportation of the Products is permitted by the Company under this Agreement, Distributor acknowledges and agrees that it is responsible for complying with, and that, at its own expense, it will comply fully with
all such 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -8- 

 
laws and regulations. Distributor further agrees that it will comply with any reasonable instruction which may be given to it by the Company with respect to
such laws and regulations. Without limiting the generality of the foregoing, Distributor agrees that Distributor shall not allow export from the United States or re-export, directly or indirectly, of any Product, any merchandise incorporating any
Product, any part of any Product, any related documentation or the direct Products thereof, in violation of any laws or regulation by agencies of the U.S. Government, including the U.S. Department of Commerce, which prohibit export or diversion of
products to certain countries, and will not knowingly assist or participate in any such diversions or other violation of applicable U.S. laws and regulations. 
 3.3     Repackaging and Relabeling. Distributor shall not repackage or relabel any Products or remove or in any manner deface any codes or markings on the Company’s packages or containers without the
Company’s prior written approval. Distributor shall promptly notify the Company of any such actions undertaken by any person or entity which comes to Distributor’s attention. 
 SECTION 4 – WARRANTIES 
 4.1     Warranty of Products to
Distributor. The Company warrants to Distributor that the Products which it sells to Distributor shall be free from defects in material and workmanship for a period of **** from the date of shipment from the Company’s facility (the
“Warranty Period”); provided, however, (i) with respect to tips the Warranty Period shall be the shorter of (A) **** from the date of shipment from the Company’s facility, (B) **** from Distributor’s
shipment to Customer, or (C) first use by Customer; (ii) with respect to handpieces the Warranty Period shall be the shorter of (A) **** from the date of shipment from the Company’s facility, or (B) **** from
the date of Distributor’s shipment to Customer; and (iii) Waterlase YSGG, Waterlase MD and **** warranties, including warranties on associated trunk fibers, shall be null and void if Customer has not successfully completed the
Biolase Certified Training Course within **** from the date Product is shipped to Customer (to the extent the warranty would otherwise be applicable after such date). ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, ARE HEREBY EXPRESSLY WAIVED,
INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. In the event that Distributor returns any Products other than tips which have proven to be defective in material or workmanship within the Warranty
Period, the Company may, at its sole option, repair or replace the same without cost to Distributor, or refund or credit to Distributor the purchase price of such Products. The foregoing constitutes Distributor’s sole and exclusive remedy for
any defective Products. DISTRIBUTOR HEREBY WAIVES ANY OTHER CLAIM OR REMEDY, AND THE COMPANY SHALL NOT BE LIABLE FOR, ANY DIRECT, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, SUCH AS, BUT NOT LIMITED TO, LOSS OF ANTICIPATED SALES OR PROFITS OR
BENEFITS RESULTING FROM THE USE OF THE PRODUCTS OR OTHERWISE WHETHER SUCH CLAIM IS STATED IN CONTRACT, TORT, OR OTHERWISE, EVEN IF THE COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THE FOREGOING LIMITATION SHALL NOT
APPLY TO ANY THIRD 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -9- 

 
PARTY’S CLAIM FOR DIRECT, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES THAT IS SUBJECT TO INDEMNIFICATION PURSUANT TO SECTION 9.1 HEREOF. EXCEPT
TO THE EXTENT OF ANY INDEMNIFICATION OBLIGATIONS SET FORTH IN SECTION 9.1, IN NO EVENT SHALL THE COMPANY BE LIABLE FOR ANY REASON OR CAUSE WHATSOEVER (WHETHER BASED ON BREACH OF CONTRACT, TORT OR OTHERWISE) IN EXCESS OF THE AMOUNT PAID FOR
THE PRODUCT CAUSING THE ALLEGED DAMAGE. All Products which the Distributor considers defective and subject to the foregoing warranty shall be returned to the Company’s facility from which they were shipped, transportation costs paid by
Distributor. Distributor shall thereupon assume all risk of loss or damage during transit. The Company’s obligation to repair or replace any defective Products pursuant to the foregoing warranty shall not apply if (A) Distributor fails to
submit an Installation Report as specified in Section 5.9 of this Agreement, (B) Distributor fails to promptly notify the Company in writing upon discovery of the defects in the Product (which notification shall be in writing and
shall indicate the description of the Product and its serial number), or (C) the Company’s examination of the Products does not disclose to the Company’s satisfaction that such defects actually exist in the Products or that the
Products have been (i) subjected to misuse, neglect or accident, including causes external to the Products, (ii) altered (other than by the Company) in such a manner as to affect adversely its performance, stability or reliability,
(iii) subjected to environmental stress beyond design specifications, (iv) used for any purpose other than for what it was designed, (v) used with equipment, supplies or materials not meeting specifications, (vi) connected,
installed, used or adjusted otherwise than in accordance with the instructions furnished by the Company, or (vii) used in connection with non-authorized accessories. All accessories used with the Products must be manufactured by or certified in
writing by the Company. An essential purpose of the limited exclusive liabilities and remedies in this Agreement is allocation of risks between the Company and Distributor, which allocation of risks is reflected in the purchase price for the
Products. 
 4.2     Warranty of Products to Customers. In addition to the warranty set forth in Section 4.1 above,
the Company shall continue to provide directly to Customers the same warranties that it provides with respect to Products as of the Effective Date; provided, however, (i) such warranties shall not be for a term of longer than **** from the date
of shipment from the Company’s facility; and (ii) to the extent that such warranties would otherwise be applicable to a particular period pursuant to (i), they shall be further limited as follows: (A) with respect to tips no warranty
shall be provided after the shorter of **** from Distributor’s shipment to Customer or first use by Customer; (B) handpieces shall only be warranted for **** from the date of Distributor’s shipment to Customer; and (C) Waterlase
YSGG, Waterlase MD and **** warranties, including warranties on associated trunk fibers, shall be null and void if Customer has not successfully completed the Biolase Certified Training Course within **** from date Product is shipped to Customer.

 SECTION 5 – CUSTOMER SALES, TRAINING, MARKETING & REPAIRS 
 5.1     Promotion and Sale of Products. Distributor shall use commercially reasonable efforts (i) to further sales to Customers within
the Territory of the Products and the Distributor Services; (ii) to implement the Marketing Plan (as hereinafter defined); (iii) to fulfill all 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -10- 

 
Customers orders in a responsive manner in accordance with Distributor’s standard practices (contingent on the Company delivering Product to Distributor
as contemplated by Section 2.2 hereof); (iv) to give satisfactory service to all of Distributor’s accounts; (v) to maintain a competent and adequately trained, skilled and motivated sales and service organization for the sale and
servicing of the Products and performance of the Distributor Services; (vi) to maintain general liability insurance with a minimum limit appropriate for a company of the size of Distributor (insurance coverage must be procured from an insurance
company bearing an AM Best Rating of no less than **** or a S&P Rating of no less than ****); (vii) to adhere to the general policies, procedures, terms and conditions now or hereafter adopted by the Company with respect to the Products and
the Distributor Services as long as such policies, procedures, terms and conditions are reasonable and not in conflict with this terms and conditions of this Agreement; and (viii) generally to do all things reasonably necessary or proper to
further and preserve the goodwill and reputation of the Company, the Products, the Distributor Services and the Distributor. Distributor shall bear all expenses relating to the foregoing obligations. Distributor agrees to notify the Company
immediately of any litigation or threatened litigation involving the Products or the Company Services. 
 5.2     Sales Forecast;
Marketing Plan and Reports. Commencing with the 2007 calendar year, Distributor and the Company shall jointly prepare an annual written sales forecast and marketing plan (the “Marketing Plan”) for each calendar year during the Term by
no later than **** prior to commencement of such calendar year (unless such date is extended by mutual agreement of the parties). The Marketing Plan shall be comprehensive and shall include, but not be limited to, the following: planned
promotions and monthly clinical training course schedule, convention attendance schedule, “guru” development, detail of press releases, and personnel at universities and teaching institutions working in conjunction with the Distributor to
develop dental practitioner end-users, clinicians, dental schools within universities, and dental industry channels of distribution and trade in the Territory. The Distributor will report progress against the Marketing Plan within ****
following the end of each calendar quarter. In addition, Distributor shall furnish to the Company other records and reports as may be reasonably requested by the Company from time to time including, but not limited to, sales and financial reports,
schedules of inventory of Products on hand and reports of trends and competitive activities of the Company’s industry within the Territory. The schedule for the provision of such records and reports shall be as mutually agreed to by the
parties. 
 5.3     Inventory Status Reports. Distributor will submit to the Company within **** following the end of each
calendar quarter a report of its inventory of Products. 
 5.4     Fulfillment. Except as otherwise expressly set forth in this
Section 5, the Distributor will be solely responsible for all fulfillment services related to the sale and servicing of the Products and comprising Distributor Services, including, without limitation, receipt and processing of customer
purchase orders, product warehousing, customer shipping, customer installation, customer billing and collection, and customer training. 
 5.5     Marketing Support. The Company will, without charge to Distributor, furnish the Distributor with available artwork and digital images on CD-ROM of the Products to assist the 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -11- 

 
Distributor with its marketing activities. The Company will, without charge to Distributor, continue to invest in marketing of the Products at levels
necessary to maintain the level of market visibility of such Products existing as of the Effective Date; for example, the Company will place ads in journals in similar amounts and will obtain booth spaces at dental exhibitions of similar size to
prior exhibitions except to the extent that other activities of the Company replace such activities and maintain the required level of market visibility. 
 5.6     Distributor Training. At least **** times a year (and more often if mutually agreed by Distributor and the Company), Distributor shall cause a majority of the Distributor Sales Specialists and the
Distributor Field Service Engineers (as those terms are hereinafter defined) to complete the Company’s products seminars and training courses for training on the Products (including, but not limited to, webinars, online training); provided,
however, only Distributor Field Service Engineers who physically touch or service the Products shall be subject to the foregoing requirement. The Company and Distributor shall mutually agree upon the content (including agenda and makeup) of all such
seminars and training courses. Any seminars and training courses requiring the physical presence of the attendee at a central location shall be held at a location as the Company and Distributor mutually determine. Distributor will bear all
transportation, lodging and meal costs of their personnel during such training. The Company will furnish course instruction and materials at no charge to Distributor. Distributor acknowledges that the attendance of its personnel at such training is
a required condition of the Distributor’s sales of the Products. 
 5.7     Sales Specialists. During the Term the Company
will maintain at least twenty five (25) sales specialists (the “Company Sales Specialists”) and Distributor will maintain at least seven hundred fifty (750) sales specialists (the “Distributor Sales Specialists”). The
Company Sales Specialists will be dedicated to the sale of Products pursuant to the terms of this Agreement. The Distributor Sales Specialists will be involved in the sale of all products sold by Distributor; provided, however, the Distributor Sales
Specialists shall devote sufficient time and energy to the sale of the Products to effect as many sales of Products as possible (it being intended that the Minimum Purchase Requirements are merely a minimum) and the other purposes of this Agreement.
The Distributor will cause the Distributor Sales Specialists to provide qualified sales leads with respect to potential Systems sales to the Company Sales Specialists and will cause the Distributor Sales Specialists (with the assistance of the
Company Sales Specialists pursuant to the next sentence) to follow up such sales leads. The Company will cause the Company Sales Specialists, without charge to Distributor, to assist the Distributor in following up such sales leads with prospective
customers and the Company Sales Specialists shall endeavor to effect sales of Systems (and related Products, training and servicing) to such Customers on such terms and conditions as the Distributor shall from time to time approve in writing (the
“Sales Guidelines”). All such sales shall be for and on behalf of the Distributor and the Distributor shall for all purposes be the contracting party with the Customer. 
 5.8     Service Engineers. During the Term the Company will maintain at least twenty (20) field service engineers (the “Company Field Service Engineers”) and Distributor will
maintain at least seventy (70) field service engineers (the “Distributor Field Service Engineers”). The Company Field Service Engineers will be primarily dedicated to the service of the Products pursuant to the terms of this
Agreement. The Distributor Field Service Engineers will be involved 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -12- 

 
in the service of all products sold by Distributor; provided, however, the Distributor Field Service Engineers shall devote sufficient time and energy to the
service of the Products to accomplish the purposes of this Agreement. The Distributor Field Service Engineers and the Company Field Service Engineers will perform field services with respect to the service of Products as the parties may from time to
time agree in writing as part of the Distributor Services; provided, however, it is the intent of the parties that the Distributor Field Service Engineers shall perform installations, buttonology (providing basic instruction to Customers in the use
and maintenance of the Products), scheduled preventative maintenance, hand piece and fiber replacement, checking or adding coolant water and minor field repairs and the Company Field Service Engineers shall only be responsible for advanced field
service (including but not limited to major field repairs). The parties expect to adjust the responsibilities of the Company Field Service Engineers and the Distributor Field Service Engineers over time as the Distributor gains expertise in service
capabilities and the Company’s service requirements are therefor reduced and the parties will develop over time mutually agreeable guidelines for the performance of services with respect to the Products (the “Service Guidelines”).
Once established, each party will perform in accordance with such Service Guidelines. During the Term the Company will be the exclusive provider of all major field repair services to be provided to Distributor’s Customers with respect to the
Products. To the extent that the services performed by the Distributor Field Service Engineers correct Product defects which otherwise are subject to the warranties set forth in Sections 4.1 and 4.2 hereof or which otherwise are
subject to extended Biolase service contracts sold to Customers (“Warranty/Contract Defects”), such services shall be performed on behalf of the Company and shall be without charge to the Company. Except for services provided by the
Company Field Service Engineers to correct Warranty/Contract Defects or as expressly set forth in this Section 5.8, all services performed by the Distributor Field Service Engineers and the Company Field Service Engineers pursuant to
this Section 5.8 shall be for and on behalf of the Distributor and the Distributor shall for all purposes be the contracting party with the Customer. Except for services provided by the Company Field Service Engineers to correct
Warranty/Contract Defects, Distributor shall compensate the Company for all other services provided by the Company pursuant to this Section 5.8 as set forth in Sections 2.4 and 2.5 and Exhibit A hereof. 
 5.9     Installation Reports. Distributor will submit to the Company on the date of the installation of each System a completed installation
report on each Customer with the Customer’s name, address, phone / fax numbers and e-mail address. Failure to make a timely installation report may void the Product warranty. Installation reports shall be in writing and faxed to BIOLASE
Technology, Inc. ATTN: Service Department/International Sales Division at fax number ****. 
 5.10     Off-Site Repairs.
During the Term the Company and Distributor will be the exclusive providers of off-site repairs to the Products, whether or not such repairs are with respect to Warranty/Contract Defects. Off-site repairs will be conducted in accordance with the
Service Guidelines. The Company will establish one or more centralized facilities designated for such purpose and the Distributor will facilitate shipment of Products requiring repair to such facilities. The Distributor will obtain from the Company
a return authorization number prior to shipment and will ensure that such shipment is prepaid. The Company shall have the right to perform such repairs using refurbished components and refurbished Products. Except for repairs with respect to
Warranty/Contract Defects, all repair services performed by the Company pursuant to this Section 5.10 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -13- 

 
shall be for and on behalf of the Distributor as part of the Distributor Services and the Distributor shall for all purposes be the contracting party with
the Customer. Except for repairs with respect to Warranty/Contract Defects, Distributor shall compensate the Company for all repair services provided by the Company pursuant to this Section 5.10 as set forth in Sections 2.4 and
2.5 and Exhibit A hereof. 
 5.11     Customer Training. During the Term the Company and Distributor will be the exclusive
providers of any and all training services to be provided to Distributor’s Customers with respect to the Products as part of the Distributor Services; provided, however, the Company may have third parties provide such services provided that
Distributor consents thereto. In the event that Distributor objects to any such third party, Distributor shall meet and confer regarding such objection. The Company will determine the curriculae for all Customer training programs. The Company shall
provide to each Customer, at no charge, a one half ( 1/2) day in-office training session following each purchase
of a System; provided, however, it is the intent of the parties that over time Distributor shall learn how to provide such training and responsibility to provide such training shall thereupon be transferred to Distributor. In addition, the
Distributor shall schedule any additional basic or advanced customer training with an approved Company training course to the extent the Company in its sole and absolute discretion determines to offer such training. Distributor shall use reasonable
efforts to require all Customers purchasing a Waterlase YSGG, Waterlase MD or **** to also purchase simultaneously a Certification Training Course, and Distributor shall use reasonable efforts to require that said Customers successfully
complete the Certification Training Course no later than **** from the date of System purchase. Set forth on Exhibit A is a list of the various customer training courses offered by the Company and the applicable pricing thereof, as of the
Effective Date. All training services provided by the Company pursuant to this Section 5.11 shall be for and on behalf of the Distributor and Distributor shall for all purposes be the contracting party with the Customer. The foregoing
in-office training sessions shall be provided by the Company without additional compensation and Distributor shall compensate the Company as set forth in Sections 2.4 and 2.5 hereof. 
 5.12     WCLI Reimbursement. During the Term Distributor shall reimburse the Company or The World Clinical Laser Institute (“WCLI”)
for **** of all WCLI expenditures, whether incurred by the Company or WCLI directly, net of tuition payments received from enrollees, related to WCLI activities; provided, however, the amount of such reimbursement shall not exceed the sum of ****
(US$ ****) per year. WCLI expenditures by the Company shall include a reasonable allocation of payroll costs for Company personnel directly involved in such activities. In the event that the parties mutually agree that the World Clinical Laser
Institute activities are successful then they shall in good faith negotiate an increase in the maximum amount of such reimbursement. During the Term the Company shall from time to time (but no more often than **** per month) provide Distributor with
invoices of such reimbursable amounts and Distributor shall pay the Company for all such invoices net **** from the date of issuance of the invoice to Distributor. 
 5.13     Distributor Marketing Events and Materials. Distributor annually sponsors a number of marketing events with respect to the various products that it distributes. In 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -14- 

 
conjunction with such events, Distributor will sponsor at its sole cost and expense no less than seventy five (75) marketing events per year that focus
on Waterlase dentistry and the Products. Such events shall be set forth in the Marketing Plan. Distributor shall also attend all marketing events of the Company. Distributor also produces marketing materials and publications which contain third
party advertising (such as with respect to trade events, seminars, marketing brochures, and catalogs). During the Term the Company shall have the right to place advertising in such materials and publications for **** of the rate customarily charged
by Distributor for such advertising. 
 5.14     Confidential Information and Customer Data. During the term of this Agreement,
each party may supply the other with trade secrets, confidential information, customer lists and data, sales, cost and other financial information, product and business plans and ideas, revenues, relationships, projections, and marketing data, or
information regarding the contents or methods of manufacture or distribution of the Products not generally available to the public (“Confidential Information”). Each party shall limit its use of the other party’s Confidential
Information to what is necessary to market the Products within the Territory and to provide the services contemplated by this Agreement and each party shall abide by any restrictions imposed by the other party on the use of such Confidential
Information. Notwithstanding the foregoing, all customer data and information derived from the Distributor Services that are shared between Distributor and the Company shall be deemed jointly owned by the parties hereto (“Joint Data”).
Each party shall generate and deliver to the other party monthly reports containing all such Joint Data in either paper form or as electronic data files, as mutually determined from time to time. Such monthly reports shall summarize the customer
orders processed during such month and shall include: the Product serial numbers, quantities sold, the sales price for each Product sold, shipping charges, the sales collections collected during such month, the payments due to the Company pursuant
to the provisions of this Section 5 and such other data as the parties reasonably request, including without limitation, data that can be used to analyze demand and sales trends. Each party agrees that it will not divulge the
other party’s Confidential Information or any Joint Data to any third party without the other party’s prior written consent; provided, however, each party may provide Confidential Information and Joint Data to such party’s employees,
Affiliates, subsidiaries, consultants and agents who: (a) have a substantive need to know such Confidential Information and Joint Data in connection with the performance of this Agreement or the performance of a party’s own business
purposes; (b) have been advised of the confidential and proprietary nature of such Confidential Information and Joint Data; and (c) are bound by confidentiality obligations with respect to such Confidential Information and Joint Data no
less strict than are imposed on each party pursuant to this Agreement (the “Advisor Exception”). Each party further agrees that upon termination of this Agreement for any reason, such party will return the other party’s Confidential
Information, including any copies thereof but excluding any Joint Data, to the other party. After termination of this Agreement, each party (i) will not utilize or divulge the other party’s Confidential Information in any way and
(ii) may continue to utilize Joint Data for its own business purposes but will not divulge any Joint Data to any third party without the other party’s prior written consent (other than pursuant to the Advisor Exception). Each party’s
obligations under this Section 5.14 shall continue beyond the termination of this Agreement. Each party acknowledges that any breach or threatened breach of any provision of this Section 5.14 will cause the other party
irreparable injury and damage and that, in addition to any other rights or remedies available to such party at law or in equity, such 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -15- 

 
party may proceed against the breaching party for temporary, preliminary and/or permanent injunctive relief through appropriate proceedings. 
 5.15     Returns. All sales of Products are final upon shipment by the Company. The Company shall not be obligated to accept from Distributor
any Products returned, or to give Distributor any exchange or credit therefor except to the extent required pursuant to Section 4.1 hereof. However, the Company shall work with Distributor on a commercially reasonable efforts basis to
identify a new Customer to purchase any Products returned to Distributor by its Customers. Distributor shall pay for any shipping and handling costs associated with such returns, including the transit costs of shipping the Products back to the
Company for testing and quality assurance certification for the purpose of establishing the Product as ready for resale as a “refurbished” unit. Distributor shall pay the following fees to the Company for any such refurbishment:
(i) if the refurbishment occurs within **** of the sale by Distributor to its original Customer then there shall be no refurbishment fee, (ii) if the refurbishment occurs in the period between **** and **** of the sale
by Distributor to its original Customer then there shall be refurbishment fee equal to the Company’s cost of refurbishment less a discount to be mutually agreed from time to time between the Company and Distributor, and (iii) if the
refurbishment occurs in the period **** of the sale by Distributor to its original Customer then there shall be refurbishment fee as mutually agreed to by the Company and Distributor. The Company shall only have an obligation to perform
refurbishment services if the Company and Distributor can mutually agree on refurbishment fees and discounts as above provided.  
 5.16     Performance of Company Services. Except to the extent otherwise expressly set forth in this Section 5, all of the Company Services shall be performed on behalf of and for the credit of Distributor.
The Company shall only have an obligation to provide such Company Services during normal business hours on a commercially reasonable basis, in accordance with Applicable Laws and applicable industry standards and as required pursuant to the terms of
this Agreement (including, without limitation, pursuant to any applicable Sales Guidelines). The Company shall not have any liability or responsibility for the failure to effect any sale of Products or Distributor Services to a prospective Customer
or to determine the creditworthiness or to otherwise investigate any Customer purchasing the Products or the Distributor Services from Distributor or to collect any accounts arising from such purchases. All credit risk related to the sales of
Products or Distributor Services to such Customers shall be the sole risk and responsibility of Distributor. NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT TO THE CONTRARY (EXCEPT TO THE EXTENT OF THE COMPANY’S INDEMNIFICATION
OBLIGATIONS PURSUANT TO SECTION 9.1 HEREOF), IN NO EVENT SHALL THE COMPANY’S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO A FAILURE TO PROVIDE COMPANY SERVICES AS ABOVE REQUIRED, WHETHER IN CONTRACT, TORT OR UNDER ANY OTHER THEORY OF
LIABILITY, EXCEED AMOUNTS ACTUALLY PAID BY AND DUE FROM DISTRIBUTOR FOR THE COMPANY SERVICES DURING THE ONE (1) YEAR PERIOD IMMEDIATELY PRECEDING THE DATE THE CAUSE OF ACTION AROSE. 
 5.17     No Agency or Employment Relationship. Each party is and at all times shall be an independent contractor in all matters relating to this Agreement and shall be considered as 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -16- 

 
independent contractors under any and all laws of any jurisdiction whatsoever. Each party and their officers, directors, employees, representatives and
agents are not and shall not be deemed an employee, agent, partner, or joint venturer of the other party for any purpose whatsoever. Distributor is not authorized by the Company to incur obligations in the name of or on behalf of the Company, or to
make any promise, warranty or representation with respect to the Products or the Company Services, and shall not hold itself out as being so authorized. Except to the extent expressly set forth in this Section 5, the Company is not authorized
by Distributor to incur obligations in the name of or on behalf of Distributor, or to make any promise, warranty or representation with respect to the Products or the Distributor Services (other than Warranty or Extended Service Contracts), and
shall not hold itself out as being so authorized. Subject to the terms as stated in this Section 5.17 and the provisions of Section 7, Distributor may state Distributor is an authorized distributor of the Company during the
Term hereof. 
 5.18     Employees and Agents of the Parties. All of the Distributor Services shall be performed by employees of
Distributor; provided, however, Distributor may retain independent contractors to perform the Distributor Services with the Company’s prior consent, such consent not to be unreasonably withheld (such employees and approved independent
contractors collectively, “Distributor Personnel”). Any contracts made by Distributor with Distributor Personnel shall provide that they are employees or agents of Distributor, and the Company shall have no obligation with respect to their
employment or agency. Any contracts made by the Company with its employees and its independent contractors (collectively, “Company Personnel”) shall provide that they are employees, agents or sub contractors of the Company, and Distributor
shall have no obligation with respect to their employment, agency or sub contract. Distributor shall be solely responsible for all compensation, benefits, taxes and withholdings payable with respect to Distributor Personnel and shall be solely
responsible to comply with all laws of any jurisdiction whatsoever with respect to Distributor Personnel, whether existing or future, including, without limitation, social security laws, workman’s compensation laws, unemployment insurance laws,
withholding tax laws and any other laws regarding the payment and reporting of any taxes and/or contributions, the payment of compensation, or the provision of employee benefits. The Company shall be solely responsible for all compensation,
benefits, taxes and withholdings payable with respect to Company Personnel and shall be solely responsible to comply with all laws of any jurisdiction whatsoever with respect to Company Personnel, whether existing or future, including, without
limitation, social security laws, workman’s compensation laws, unemployment insurance laws, withholding tax laws and any other laws regarding the payment and reporting of any taxes and/or contributions, the payment of compensation, or the
provision of employee benefits. 
 5.19     Company Insurance. In respect of the sale of the Products under this Agreement, the
Company currently has, and shall use commercially reasonable efforts to maintain, general liability insurance, including product liability, contractual liability insurance and advertising injury coverage, with a minimum combined single limit of
liability in the amount of $**** per occurrence and in the general aggregate and naming Distributor as an additional insured or such other amounts as may be reasonably required by Distributor from time to time. Insurance coverage must be
procured from an insurance company bearing an AM Best Rating of no less than **** or a S&P Rating of no less than ****. 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -17- 

 5.20     Marketing & Research Investment/System Placement. The parties acknowledge
and agree that from time to time it may be in the parties’ mutual interest for the Company to provide luminaries, universities and dental schools, clinical studies and research sites within the Territory (collectively, “Schools”) with
Waterlase MD laser systems for marketing, regulatory and/or research purposes (“Investment Units”) at a price per system ranging from **** to **** (the “Maximum Direct Amount”). In the event that the Company determines to provide
any Investment Unit to a School for any amount up to the Maximum Direct Amount, the Company may provide such Investment Unit directly to the School and the Company shall invoice the School (if applicable) for the Investment Unit directly and for its
own account. In such event, the terms and conditions of this Agreement shall not apply to such Investment Unit. From time to time as reasonably requested by Distributor, the Company shall provide Distributor with updated reports regarding the
placement of any such Investment Units. 
 In addition, to the foregoing, in the event the Company determines to provide any Investment Unit to a School for
an amount (the “Discounted Price”) where (i) such Discounted Price is in excess of the Maximum Direct Amount, and (ii) such Discounted Price less **** is less than the Distributor Purchase Price from the Company for a
Waterlase MD laser systems, THEN Distributor shall provide such Investment Unit to the School at the Discounted Price and Distributor shall bill the School directly and for its own account. In such event the Company shall sell such Investment Unit
to Distributor for an amount equal to the greater of (i) **** or (ii) the Discounted Price less ****. Except as otherwise provided in this paragraph, the terms and conditions of this Agreement shall apply to such Investment
Unit. 
 The parties further acknowledge and agree that from time to time it may be in the parties’ mutual interest for the Company or Distributor to
provide Schools within the Territory with other Systems apart from Waterlase MD laser systems for marketing, regulatory and/or research purposes. In such event, such other Systems shall be provided on the foregoing terms subject to adjustment for
System pricing differences but on comparable formulas to those stated above in this Section 5.20. 
 SECTION 6 –
RESTRICTIVE COVENANTS 
 6.1     Competition, Etc. (A) Except to the extent permitted in the following sentence, neither
Distributor nor any of its subsidiaries or Affiliates shall, beginning on the Launch Date and during the Term directly or indirectly (i) sell or distribute to Customers within the Territory dental laser systems or accessories or consumables
therefor of any entity other than the Company; provided, however, the parties acknowledge that prior to the Launch Date Distributor sold or distributed laser products of other manufacturers and after the Launch Date Distributor may continue to
provide service and support (but not sales or distribution) in respect of any such laser products sold by Distributor prior to the Effective Date; or (ii) sell any services which are competitive with the Company Services with respect to the
Products except to the extent otherwise expressly permitted herein. (B) Notwithstanding the foregoing part A, the parties acknowledge and agree that Distributor shall be permitted to sell and distribute during the Term (X) **** (and
accessories and consumables therefor) of entities other than the Company, and 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -18- 

 
(Y) any dental laser system specifically intended for use in soft-tissue dental procedures if Distributor does not have exclusive distribution rights for the
**** Product or any successor Product to the **** Product. **** are defined as ****; and in which ****. Distributor acknowledges that any breach or threatened breach of any provision of this Section 6.1 will cause the Company irreparable injury
and damage and that, in addition to any other rights or remedies available to the Company at law or in equity, the Company may proceed against Distributor for temporary, preliminary and/or permanent injunctive relief through appropriate proceedings.
Any failure to meet the requirements in part B of this Section 6.1 shall only affect Distributor’s rights with respect to the **** Product or any successor Product to the **** Product. 
 SECTION 7 – INTELLECTUAL PROPERTY 
 7.1     License. Subject to the terms and conditions provided herein, during the Term of this Agreement, the Company hereby grants to Distributor a non-exclusive, non-transferable, limited license to use the
Company’s trademarks as set forth on Exhibit C attached hereto (the “Licensed Trademarks”). The parties may from time to time mutually agree in writing to update the list of Licensed Trademarks subject to the terms of this
Agreement. Distributor shall be authorized and required to use the Licensed Trademarks in connection with Distributor’s advertising and sale of the Products to Customers within the Territory, and shall cause each of its employees, consultants,
representatives, and agents (“Distributor’s Representatives”) to use the Licensed Trademarks in connection with the advertising and sale of the Products in a manner consistent with this Agreement. Distributor agrees to affix or
maintain, and shall cause its representatives to affix or maintain, the Licensed Trademarks (with the trademark notice) on all advertisements, brochures, manuals, and other materials used in promoting and distributing the Products. Distributor
agrees that all references by it or Distributor’s Representatives to the Company, the Licensed Trademarks, and the Products shall be accurate and shall otherwise maintain and foster the name and goodwill of the Company, the Licensed Trademarks,
and the Products and shall not confuse, mislead, or deceive the public. Distributor agrees that neither Distributor nor Distributor’s Representatives shall register or incorporate the “BIOLASE” name or the Licensed Trademarks in
Distributor’s registered corporate or partnership name or that of any of its subsidiaries or Affiliates. Distributor agrees not to use, without the Company’s prior written consent, the name “BIOLASE” or the Licensed Trademarks
(i) on any Products which, prior to resale, have been altered or modified or combined with products not supplied by the Company, or (ii) in any way on or in connection with any non-Company products. 
 7.2     Intellectual Property. Except to the extent expressly permitted herein or as from time to time consented to in writing by the Company
(which consent may be withheld in the Company’s sole and absolute discretion), Distributor shall not use the trade name “BIOLASE”, any other Licensed Trademarks, or any other Non Licensed Trademark as set forth on Exhibit C, in
connection with any trade shows, seminars or other training and/or educational programs, either for Distributor’s employees, Customers or others, or in connection with any trade, corporate, or business name. The Company with Distributor’s
consent (not to be unreasonably withheld) may from time to time update the list of Non Licensed Trademarks. Distributor agrees that nothing in this Agreement or in connection with Distributor’s performance of this 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -19- 

 
Agreement shall give to Distributor any right, title, or interest in any patents, trade secrets, trademarks, service marks, trade names, domain names,
copyrights, licenses, artwork, logos, formulas, methods and processes (including, without limitation, the Licensed Trademarks and the Non Licensed Trademarks), and all rights and interests relating thereto currently owned or hereafter developed by
the Company, and any new trademarks created during the Term by either or both parties primarily with respect to the Products (collectively the “Intellectual Property”). Such Intellectual Property shall be the exclusive property of the
Company. Distributor agrees that it will not directly or indirectly engage in any activity to exploit or commercialize the technology covered by any Intellectual Property, except as specifically permitted in this Agreement. Distributor and/or its
Affiliates and subsidiaries will not directly or indirectly commercialize or aid the development of other technologies or products which compete against the Products during the Term. 
 7.3     Use of Licensed Trademarks. Distributor shall respect and promote the Licensed Trademarks in connection with the distribution of the Products and Distributor’s use of the
Licensed Trademarks shall be in accordance with the Company’s guidelines and policies in effect from time to time. Distributor shall maintain the quality control standards and requirements of the Company as presently in effect and as modified
from time to time. Distributor shall not remove, alter, obliterate, or conceal the Licensed Trademarks from or on any Products. Distributor will only use the Licensed Trademarks to indicate that the Company is the source of the Products and will not
contest the Company’s sole and exclusive ownership of such Licensed Trademarks. Any goodwill or similar rights accruing from Distributor’s use of the Licensed Trademarks or otherwise, shall inure to the benefit of the Company. Except as
expressly authorized herein or as may otherwise be agreed to in writing by the Company and Distributor, Distributor shall not use or authorize others to use the Licensed Trademarks in connection with the provision of any services, including but not
limited to any services provided at any laser training institute or laser service center or similar training or service business. Distributor shall not, in connection with the distribution of the Products and provision of services contemplated by
this Agreement or in the conduct of any other business, use trademarks or trade names confusingly similar to any of the Licensed Trademarks or the Non Licensed Trademarks. Upon the Company’s written request, Distributor shall execute and file
with the appropriate regulatory agencies such documents as the Company requires to insure that any goodwill or similar rights occurring will inure to the benefit of the Company. 
 7.4     Domain Names. Distributor acknowledges that the Company owns the domain name www.biolase.com as well as any additional domain names set forth on Exhibit A (collectively, the
“Domain Names”). The Company grants Distributor the right to provide, at its own website, a link to any of the websites associated with the Domain Names, as long as the link is clearly and prominently identified as being a means of
accessing a website owned and operated by the Company and as long as Distributor complies with all of the Company’s reasonable guidelines and policies in effect from time to time with respect to links to such websites. 
 7.5     Product Certifications. Distributor acknowledges that the Company owns any and all rights to market Products in each respective
international market. To the extent Distributor obtains certifications, registrations and approvals for the Company to market the Products into 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -20- 

 
foreign markets outside the United States of America which comprise a portion of the Territory, Distributor hereby acknowledges that it is only acting as an
agent to facilitate and expedite the process of obtaining such certifications, registrations and approvals for the Company. Any and all such certifications, registrations and approvals shall be transferred under the Company’s name. In the event
any such certifications, registrations and approvals are at any time under Distributor’s name, then Distributor agrees to transfer such certifications, registrations and approvals under the Company’s name. In addition, the Company is
hereby authorized to act as Distributor’s agent to transfer any and all such certifications, registrations and approvals under the Company’s name. 
 7.6     Product Damage. Distributor shall notify the Company in writing within **** should any damage occur to Products while in the possession of Distributor by such occurrences as fire or flood. In order
to preserve the quality and integrity of the Licensed Trademarks, before disposing of any such damaged Products, whether according to the terms of Distributor’s insurance policies or otherwise, all Licensed Trademarks must be removed from the
packages and containers. 
 7.7     Infringement Notice. Distributor shall give prompt written notice to the Company upon actual
discovery thereof by Distributor of any potential infringement of or potential conflict with the Intellectual Property by any person or entity, and the Company shall take such steps as it deems necessary to protect the Intellectual Property.

 7.8     Audit Rights. Distributor shall permit the Company to verify compliance with the Company’s Intellectual Property
guidelines and quality standards, permit reasonable inspection of Licensee’s operation, and supply the Company with specimens of all uses of the Licensed Trademarks and any other Intellectual Property of the Company. 
 7.9     Domain Name Audit Rights. The Company or its authorized representative shall have the right, upon reasonable advance notice, to audit
and inspect information regarding Distributor’s use of a link to the Domain Name and the operation of Distributor’s website, in order to verify compliance with the terms of this Agreement. 
 7.10     Injunctive Relief. Distributor acknowledges that any breach or threatened breach of any provision of this Section 7 will
cause the Company irreparable injury and damage and that, in addition to any other rights or remedies available to the Company at law or in equity, the Company may proceed against Distributor for temporary, preliminary and/or permanent injunctive
relief through appropriate proceedings. 
 SECTION 8 – TERM & TERMINATION 
 8.1     Term. Unless earlier terminated as provided herein, this Agreement shall commence on the Effective Date and shall end on the date
which is three (3) years after Launch Date unless (i) extended for an additional three (3) years pursuant to the exercise of the Initial Extension Option pursuant to Section 8.2 below (the effective date of such extension
being the “First Extension Date”), (ii) extended for additional three (3) year increments pursuant to the exercise of one or more Additional Extension Options pursuant to Section 8.3 below, or (iii)

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -21- 

 
shortened pursuant to the exercise of the Buy Back Option pursuant to Section 2.3 above (the foregoing term of this Agreement as extended and/or
shortened as above provided shall be herein referred to as the “Term”). 
 8.2     Initial Extension Option. Distributor
shall have an initial option to extend the Term for an additional period of three (3) years (the “Initial Extension Option”). The Initial Extension Option must be exercised by providing to the Company an irrevocable written notice of
the election to exercise the Initial Extension Option at least **** prior to the end of the existing Term. Upon the First Extension Date and as a condition precedent to the effectiveness of such extension, Distributor shall pay to the Company the
sum of Five Million Dollars (US$ 5,000,000) as an additional license fee (“Additional License Fee”). Such Additional License Fee shall be deemed fully earned upon receipt and non refundable except as provided above in
Section 2.3 and below in this Section 8.2. Notwithstanding the foregoing, Distributor shall not be permitted to exercise the Initial Extension Option if at the First Extension Date there exists a material uncured breach of
any material provision of this Agreement on the part of Distributor, or if at any time during the existing Term Distributor shall have failed to satisfy the Minimum Purchase Requirements as set forth on Exhibit A hereto in any given Period
(collectively, “Option Breaches”). In addition, if an Option Breach occurs after the date of Distributor’s exercise of the Initial Extension Option but prior to the date of the extension of the Term pursuant to the Initial Extension
Option then the Company, in its sole discretion, shall have the option to refuse to permit the Term to be extended whereupon the Company shall return the Additional License Fee to Distributor. Unless the Initial Extension Option is exercised as
provided in this Section 8.2 it shall lapse and the Term shall not be extended. 
 8.3     Additional Extension
Options. Provided that Distributor shall have exercised the Initial Extension Option and the Term shall have been extended as provided in Section 8.2 and a Buy Back Option with respect to the Second Review Period shall not have been
exercised as provided in Section 2.3, then Distributor shall have additional extension options to extend the Term for additional periods of three (3) years each (the “Additional Extension Options”). Any Additional
Extension Option must be exercised by providing to the Company written notice of the election to exercise such Additional Extension Option at least one hundred twenty (120) days prior to the end of the existing Term and shall only be effective
if the parties can mutually agree, on a good faith basis, as to the purchase price for Products and Purchased Services and Minimum Purchase Requirements with respect to each Period of such extended period of the Term. Notwithstanding the foregoing,
Distributor shall not be permitted to exercise any Additional Extension Option if at any time during the existing Term any Option Breaches occurred. The Minimum Purchase Requirements with respect to the partial calendar year in which the existing
Term ends shall be pro rated on a straight line basis for the purpose of calculating whether Distributor failed to satisfy the Minimum Purchase Requirements in determining whether any Option Breaches occurred. In addition, if an Option Breach occurs
after the date of Distributor’s exercise of such Additional Extension Option but prior to the date of the extension of the Term pursuant to such Additional Extension Option then the Company, in its sole discretion, shall have the option to
refuse to permit the Term to be extended. Unless an Additional Extension Option is exercised as provided in this Section 8.3, such Additional Extension Option shall lapse and the Term shall not be extended. 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -22- 

 8.4     Company’s Termination. 
 8.4.1     In addition to any other termination rights set forth herein, the Company may terminate this Agreement upon **** written notice to
Distributor if any of the following events occurs and is not cured within such **** notice period: 
 8.4.1.1     Distributor fails to
pay on the date due for any Products or Purchased Services invoiced to Distributor; 
 8.4.1.2     Distributor materially breaches or
fails to perform any material provision of this Agreement; or 
 8.4.2     This Agreement shall immediately and automatically terminate,
with written notice, in the event: Distributor ceases to exist as a business entity or otherwise terminates or significantly limits its business operations; Distributor is insolvent or unable to pay its debts as they mature in the ordinary course of
business; any bankruptcy or insolvency court order, voluntary or involuntary, is made against Distributor; any receiver is appointed for Distributor or its assets, with or without its consent; or Distributor shall have made an assignment for the
benefit of creditors. 
 8.5     Distributor’s Termination. In addition to any other termination rights set forth herein,
Distributor may terminate this Agreement upon **** written notice to the Company if any of the following events occurs and is not cured within such **** notice period: 
 8.5.1     The Company improperly fails to pay any amounts due to Distributor; 
 8.5.2     The Company materially breaches or fails to perform any material provision of this Agreement; or 
 8.5.3     The Company ceases to exist as a business entity or otherwise terminates or significantly limits its business operations; the Company is insolvent or unable to pay its debts as they mature in the ordinary
course of business; any bankruptcy or insolvency court order, voluntary or involuntary, is made against the Company; or any receiver is appointed for the Company or its assets, with or without its consent; or the Company shall have made an
assignment for the benefit of creditors. 
 8.6     Consequences of Termination. Upon termination, cancellation, or expiration of
this Agreement for any reason: 
 8.6.1     All sums owing to the Company or to Distributor under this Agreement or any orders placed
pursuant to Section 2.1 hereof will become immediately due and payable. Distributor shall immediately pay all amounts owed to the Company, in accordance with the provisions of this Agreement and the Company shall immediately pay all
amounts owed to the Distributor. 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -23- 

 8.6.2     Distributor shall cease all sales and promotion of the Products; provided, however,
Distributor shall have the right to continue to sell its remaining inventory of Products after the date of termination in the event the Company does not exercise its option to repurchase such Products pursuant to Section 8.6.7 below.
Such sale by Distributor shall otherwise be subject to the terms and conditions set forth in this Agreement (including, without limitation, the right to use the Trademarks in respect of such sale), notwithstanding the termination hereof. 

8.6.3     Distributor shall immediately cease using the Licensed Trademarks, together with any and all Intellectual Property which the Company
otherwise expressly permitted Distributor to use pursuant to the terms of this Agreement, except as permitted by Section 8.6.2 above. 
 8.6.4     Distributor shall not thereafter directly or indirectly hold itself out as a distributor of or as otherwise having any connection with the Company or its Products. 
 8.6.5     Each party shall immediately return the other party’s Confidential Information to such party. 
 8.6.6     The Company reserves the right, in its sole discretion, to accept, in whole or part, Distributor’s orders (on cash in advance or
C.O.D. or on such other terms as it considers advisable, in the event the Company is the party giving such notice of termination) after notice of termination of this Agreement has been given or after any termination (automatic or otherwise) of this
Agreement. The Company’s acceptance of any such orders shall not affect revival or renewal of this Agreement or constitute a waiver of such termination. In addition, in the event the Company is the party giving such notice of termination, the
Company may, in its sole discretion, (i) require Distributor pay to the Company cash in advance prior to shipping any Products to Distributor pursuant to Distributor’s orders accepted prior to such notice of termination or (ii) stop
in transit and take possession of any Products shipped to Distributor prior to such notice of termination unless Distributor immediately pays to the Company in cash any amounts owing to the Company in respect of such shipments or otherwise makes
financial arrangements satisfactory to the Company, in its sole discretion. 
 8.6.7     The Company shall have the right, at its option,
to repurchase all or part of Distributor’s inventory of Products at the actual price paid by Distributor less **** for handling. 
 8.6.8     The terms of this Agreement which by their nature would continue beyond the termination, cancellation, or expiration of this Agreement, shall survive such termination, cancellation, or expiration. Such terms
include, by way of illustration only and not limitation, Sections 2.5, 2.6, 5.14, 5.16, 5.17, 5.18, 7.2, 7.4, 7.5, 7.10, 8.6, and 8.7, all of Sections 4 and 9 and the last sentence of Section 7.1. 
 8.7         No Damages for Termination. NEITHER THE COMPANY NOR DISTRIBUTOR SHALL BE LIABLE TO THE OTHER FOR DAMAGES OF
ANY KIND, INCLUDING INCIDENTAL, DIRECT, INDIRECT OR CONSEQUENTIAL DAMAGES, ON ACCOUNT OF THE TERMINATION OF THIS AGREEMENT IN ACCORDANCE WITH THIS SECTION 8. Distributor acknowledges and agrees that Distributor has no expectation 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -24- 

 
and has received no assurances that its business relationship with the Company will continue beyond the stated term of this Agreement or its earlier
termination, that any investment by Distributor in the distributorship contemplated by this Agreement or the Products will be recovered or recouped, or that Distributor shall obtain any anticipated amount of profits by virtue of this Agreement.

 SECTION 9 – MISCELLANEOUS PROVISIONS 
 9.1     Indemnification. 
 9.1(A)     Indemnification by Company. The Company agrees to fully
defend, indemnify and hold the Distributor and Distributor’s subsidiaries, Affiliates, agents, and employees (collectively, “Distributor Parties”) harmless from any and all claims, demands, damages, liabilities, costs or expenses,
including reasonable attorney’s fees (collectively, “Claims”) arising out of (a) any personal or bodily injury or damage to or destruction of property (but excluding damage to the Product itself) or product recall arising out of
or relating to the manufacture, testing, function, design, defects, use or operation of the Products; provided however, the foregoing shall not apply to Distributor Defects (as hereinafter defined), (b) any claim of trademark, trade dress,
trade secret, copyright, patent or other intellectual property infringement arising out of the Distributor’s distribution of the Products pursuant to the terms of this Agreement; provided however, the foregoing shall not apply to Distributor
Infringement (as hereinafter defined) , (c) a breach of any representation, warranty, covenant or obligation of this Agreement by the Company, (d) the negligent or intentional acts or omissions of the Company and the Company’s
subsidiaries, Affiliates, agents, and employees (collectively, “Company Parties”) and/or (e) any claim of a Customer of Distributor with respect to Warranty/Contract Defects. 
 9.1(B)     Indemnification by Distributor. Distributor agrees to fully defend, indemnify and hold the Company Parties harmless from any and
all Claims arising out of (a) any personal or bodily injury or damage to or destruction of property or product recall arising out of or relating to the Products resulting from any actions or inactions of the Distributor Parties (herein a
“Distributor Defect”), (b) any claim of trademark, trade dress, trade secret, copyright, patent or other intellectual property infringement arising out of (i) the Distributor’s use of the Licensed Trademarks other than
pursuant to the terms of this Agreement, or (ii) the Distributor’s use of any other patents, trade secrets, trademarks, service marks, trade names, or other intellectual property rights that were not supplied by the Company (collectively,
herein “Distributor Infringement”) , (c) a breach of any representation, warranty, covenant or obligation of this Agreement by Distributor and/or (d) the negligent or intentional acts or omissions of the Distributor Parties.

 9.1(C)     Notwithstanding anything to the contrary herein, Distributor shall not be liable to the Company Parties and the Company
shall not be liable to the Distributor Parties for any incidental, consequential or special damages or any other indirect losses or damages arising out of this Agreement, the delivery or the failure to deliver the Products, the performance of the
Company Services, or any breach of this Agreement, whether in an action for or arising out of breach of contract, tort, or any other cause of action; provided, however, the foregoing limitation 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -25- 

 
shall not apply to any third party’s claim for direct, indirect, incidental or consequential damages that is otherwise subject to indemnification
pursuant to this Section 9.1. 
 9.2     Confidentiality. The parties hereto covenant and agree that they will keep
the terms of this Agreement confidential and that they will not hereafter disclose the terms of this Agreement to anyone, except that they may make such disclosures as are required by law which are necessary for legitimate law enforcement or
compliance purposes, or which are necessary in the preparation of tax returns. In addition, both parties may publicly announce that Distributor is the exclusive distributor for the Products in the Territory; provided, however, each party must
approve in advance the content of any press releases, such approval not to be unreasonably withheld. 
 9.3     Nondisparagement.
Distributor covenants and agrees that the Distributor Parties shall not during the Term, directly or indirectly, say or do anything disparaging about, or take any action injurious to the business interests or reputation of the Company Parties,
including, without limitation, any disparagement of any of their products or services. Distributor covenants and agrees that the Distributor Parties shall not during the Term encourage, assist or induce others to say or do anything disparaging
about, or take any action injurious to the business interests or reputation of the Company Parties, including, without limitation, any disparagement of any of their products or services. Company covenants and agrees that the Company Parties shall
not during the Term, directly or indirectly, say or do anything disparaging about, or take any action injurious to the business interests or reputation of the Distributor Parties, including, without limitation, any disparagement of any of their
products or services. Company covenants and agrees that the Company Parties shall not during the Term encourage, assist or induce others to say or do anything disparaging about, or take any action injurious to the business interests or reputation of
the Distributor Parties, including, without limitation, any disparagement of any of their products or services. 
 9.4     Governing
Law, Arbitration. This Agreement (and any other documents referred to herein) shall in all respects be interpreted, enforced and governed by the United States and the State of California applicable to instruments, persons and transactions which
have legal contacts and relationships solely within the State of California, without regard to rules concerning choice of law; provided, however, that the Federal Arbitration Act of the United States shall govern issues as to arbitrability. If a
dispute arises in connection with or relating to this Agreement and the parties are unable to resolve it within **** calendar days through direct negotiations, the dispute shall be referred to final and binding arbitration to be held in
Chicago, Illinois, U.S.A. in accordance with the rules of the American Arbitration Association then in effect. The arbitrators shall make the final determination as to any discovery disputes between the parties and may impose sanctions in their
discretion to enforce compliance with discovery obligations. The award of the arbitrator(s) shall be final and binding upon the parties hereto and may be enforced by any court of competent jurisdiction. Each party shall bear their own
attorneys’ fees, costs and necessary disbursements incurred in connection with said arbitration; provided, however, the successful party prevailing in any such arbitration shall be entitled to recover from the unsuccessful party the
successfully party’s share of the costs and charges of the arbitrator(s) incurred in connection with said arbitration. Notwithstanding the provisions of this Section, the parties may, in addition to any other remedies available to it under this
Agreement, bring an 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -26- 

 
action in any court of competent jurisdiction for injunctive relief pending the settlement or arbitration of the dispute and may have entered an appropriate
temporary restraining order or preliminary injunction without being required to post bond or other security or to offer proof of monetary damages. The inclusion of this provision shall not be construed to deny appropriate equitable relief in
arbitration in any other situation in which the circumstances justify such relief. 
 9.5     United Nations Convention. In
accordance with Article 7 thereof, the parties hereto agree that the rights and obligations of each party under this Agreement shall not be governed by any of the provisions of the United Nations Convention on Contracts for the International
Sale of Goods. 
 9.6     Force Majeure. The parties shall not be liable for any delay or failure of the obligation hereunder
(other than payment of amounts due), in whole or in part, for any causes beyond the reasonable control of the parties including, but not limited to, government orders or requirements, transportation or equipment breakdowns, computer or
telecommunications failures or delays, labor or material shortages, supplier defaults or delays, strikes, lockouts or other labor disputes, floods, fires, earthquakes, Acts of God, war, riot, civil disturbance, acts of terror, or other force
majeure. 
 9.7     No Representations. Distributor represents and acknowledges that it is relying solely on its own judgment,
including its own estimate of the market for Products within the Territory, in entering into this Agreement, and that the Company has made no written or verbal representations or warranties, either express or implied, regarding the subject matter
hereof, including, without limitation, the duration of the distributorship arrangement and any selling representation created hereby, the circumstances under which this Agreement shall or may be terminated, the size of the market for Products within
the Territory or the amount of profits which Distributor will, could or might expect to receive hereunder. 
 9.8    
Investigation. Each party acknowledges that it has had adequate opportunity to make whatever investigation or inquiry it deems necessary or desirable in connection with the subject matter of this Agreement prior to the execution hereof. Each
party further acknowledges that it has read and understands each provision of this Agreement. 
 9.9     Assignment. Except as
otherwise expressly set forth in this Agreement, neither this Agreement nor any rights or obligations hereunder shall be assignable or transferable by either party without the prior written consent of the party, which may be granted or withheld in
such other party’s sole and absolute discretion. Notwithstanding the foregoing, in the event that either party (the “Transferor”) sells, transfers or assigns all or substantially all of its assets to a third party then, as a condition
of such sale, transfer or assignment, the Transferor shall ensure that all of its rights and obligations arising under this Agreement are transferred to and assumed by such third party. 
 9.10     Counterparts; Facsimile Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Either party may execute the Agreement by the delivery of a facsimile signature, which signature shall have the same force and effect as an original 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -27- 

 
signature. Any party which delivers a facsimile signature shall promptly thereafter deliver an originally executed signature to the other party; provided,
however, that the failure to deliver an original signature shall not affect the validity of any signature delivered by facsimile. 
 9.11     Notices. Any notice provided for by this Agreement shall be in writing and shall be deemed effective (i) upon personal delivery, or (ii) three business days following delivery to an
international overnight or two-day courier service (DHL, etc.), or five business days following mailing by prepaid registered mail, or certified mail, return receipt requested. Notices shall be delivered to the parties as their addresses appear
herein, but each party may change its address by written notice in accordance with this Section. 
 9.12     Entire Agreement.
This Agreement and the Exhibits attached hereto (which are incorporated herein by this reference and which form a part of this Agreement) constitute the entire agreement between the parties with respect to the subject matter hereof and thereof and
supercede all previous negotiations, agreements or understandings (oral or written) between the parties hereto and thereto, including without limitation, that certain Proposed Terms for a Distribution Agreement between the parties dated
July 25, 2006. 
 9.13     Amendments and Modifications. This Agreement may only be amended or modified by a writing
expressly referring to this Agreement and signed by an authorized representative of both parties hereto; no purported oral amendment or waiver of any term or provision of this Agreement shall be effective. 
 9.14     No Third Party Rights. Nothing in this Agreement, express or implied, is intended to confer upon any third party any rights or
remedies under or by reason of this Agreement. 
 9.15     Severability. In the event that any provision of this Agreement shall
be deemed illegal or unenforceable under applicable law, the remaining provisions of this Agreement shall not be affected thereby and each provision shall be enforced to the maximum permissible extent. 
 9.16     Headings. The headings of this Agreement are for convenience only and shall not be used in construing its terms. 
 9.17     Waiver. The failure of either party to strictly enforce any provision hereof shall not be construed as a waiver of such provision or
affect the right of such party thereafter to enforce such provision or any other provision. 
 9.18     Conflicting Terms. The
terms and conditions of this Agreement shall control and prevail over any contrary terms or provisions in purchase orders, invoices or other documents. 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -28- 

 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date first written above. 
  

									
	“DISTRIBUTOR”	 		 	“COMPANY”
			
	HENRY SCHEIN, INC.	 		 	BIOLASE TECHNOLOGY, INC.
					
	By:	 	/s/ Brian S. Watson	 		 	By:	 	/s/ Jeffrey W. Jones
		 	Brian S. Watson	 		 		 	 Jeffrey W. Jones

		 	Vice President, Strategic and
Business Planning	 		 		 	 President and
Chief Executive Officer

		 	135 Duryea Road	 		 		 	 4 Cromwell

		 	Melville, NY 11747	 		 		 	 Irvine, CA 92618

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -29- 

 EXHIBIT A 
 Minimum Purchase Requirements for Systems 
  

			
	 “Period”
	  	 Aggregate Purchases
of Systems

		
	For purposes of Section 2.3, 8.2 and 8.3	  	
		
	****	  	US$ ****
		
	****	  	US$ ****
		
	****	  	US$ ****  *
		
	****	  	US$ ****  *

  

	*	denotes the Minimum Purchase Requirements if the Term is extended pursuant to the provisions of the Initial Extension Option. 

  

			
	For purposes of calculating System Purchase Incentives	  	
		
	****	  	US$ ****
		
	****	  	 US$ ****

		
	****	  	 US$ ****

		
	****	  	 US$ ****

		
	****	  	 US$ ****

		
	****	  	 US$ ****

		
	****	  	 US$ ****

 “Aggregate Purchases of Systems” as used above shall mean the aggregate invoice price paid by
Distributor to the Company for Systems (but not accessories or consumables therefor) purchased pursuant to this Agreement during the applicable Period, and not including freight, duties, taxes and any other handling charges. In addition, for the
purpose of calculating the Minimum Purchase Requirements for the Period from ****, Distributor shall be given credit for sales of Products by the Company, solely relating to Participating Orders, to Customers within the Territory during the
period from the Effective Date through the Launch Date; provided, however, the sales price of the particular Products for such purpose shall be adjusted to the Distributor Purchase Price set forth in Initial Systems distributor prices below
rather than the actual sales prices of those Products to Customers. Additionally, for the purpose of calculating the Minimum Purchase Requirements for the Period from ****, Distributor shall be given credit for sales of Products by the
Distributor to Customers within the Territory during the period from the Effective Date through the Launch Date; provided, however, the sales price of the particular Products for such purpose shall be adjusted to 

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -30- 

 
the Distributor Purchase Price set forth in Initial Systems distributor prices below rather than the actual sales prices of those Products to
Customers. 
 For the avoidance of doubt, it is the Parties’ intention that for purposes of determining Aggregate Purchases of Systems during the Period
from the Effective Date through the Launch Date, the only sales made by Company to be excluded are those orders that are not Participating orders and which are shipped and invoiced to Customer by Company in August 2006. 
 For purposes of achieving the Minimum Purchase Requirements, Distributor shall be given credit for any Systems invoiced by the Company within the applicable Period of
calculation; provided however, in event Distributor fails to pay such invoice on the date due then Distributor shall not be given credit for such Systems until the Company has received full payment therefor. Distributor shall also be given credit
with respect to Minimum Purchase Requirements for any Systems ordered by Distributor during the last month of an applicable Period of calculation but not invoiced by the Company within the applicable Period, provided however, that such credit shall
be limited to **** of the Minimum Purchase Requirement for the applicable Period. In addition, it should be noted that the Minimum Purchase Requirements may be subject to adjustment pursuant to Section 1.2 of the Agreement.

 Distributor Price for Products and Company Services and Applicable Discounts 
 Initial Systems distributor prices: 
  

									
	 	  	MSRP on 
Launch Date	  	Distributor
Discount	  	Distributor
Purchase Price
				
	 Waterlase MD
	  	$	****	  	****	  	$	****
				
	 Waterlase YSGG
	  	 	  ****	  	****	  	 	  ****
				
	****	  	 	  ****	  	****	  	 	  ****
				
	 LaserSmile
	  	 	  ****	  	****	  	 	  ****
				
	 DioLase Plus
	  	 	  ****	  	****	  	 	  ****

 Prices for Products and Services other than Systems: 
  

															
	 Part
Number
	  	 Part Description
	  	Diameter
(um)	  	Length
(mm)	  	Quantity	  	MSRP	  	 Distributor
 Discount
	  	Distributor
Purch Price
		  	 CONSUMABLES
	  		  		  		  		  		  	
		  	 WATERLASE MD TIPS
	  		  		  		  		  		  	
		  	 Laser Tips
	  		  		  		  		  		  	

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -31- 

																	
	 Part
Number
	  	 Part Description
	  	Diameter
(um)	  	Length
(mm)	  	Quantity	  	MSRP	  	 Distributor
 Discount
	  	Distributor
Purch Price
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -32- 

																	
	 Part
Number
	  	 Part Description
	  	Diameter
(um)	  	Length
(mm)	  	Quantity	  	MSRP	  	 Distributor
 Discount
	  	Distributor
Purch Price
		  	Tip Combo Packs	  		  		  		  			  		  		
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
		  	 Miscellaneous Item
	  		  		  		  			  		  		
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
		  	 WATERLASE YSGG TIPS
	  		  		  		  			  		  		
								
		  	 Laser Tips
	  		  		  		  			  		  		
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -33- 

																	
	 Part
Number
	  	 Part Description
	  	Diameter
(um)	  	Length
(mm)	  	Quantity	  	MSRP	  	 Distributor
 Discount
	  	Distributor
Purch Price
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  	****	  	****	  	$	****	  	****	  	$	****
								
		  	 Tip Combo Packs
	  		  		  		  			  		  		
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$
 	 
****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
		  	 Miscellaneous Item
	  		  		  		  			  		  		
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
		  	 LASERSMILE / DIOLASE PLUS
	  		  		  		  			  		  		
								
		  	 LaserSmile Items
	  		  		  		  			  		  		
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  		  	****	  	$	****	  	****	  	$	****

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -34- 

																	
	 Part
Number
	  	 Part Description
	  	Diameter
(um)	  	Length
(mm)	  	Quantity	  	MSRP	  	 Distributor
 Discount
	  	Distributor
Purch Price
								
	 *** *
	  	****	  	****	  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
		  	 Diolase Plus Items
	  		  		  		  			  		  		
								
	 ****
	  	****	  	****	  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  	****	  		  	****	  	$	****	  	****	  	$	****
								
		  	 LaserSmile / Diolase Plus Items
	  		  		  		  			  		  		
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  	****	  	$	****	  	****	  	$	****
								
		  	 REPAIR PARTS
	  		  		  		  			  		  		
								
		  	 WATERLASE MD DELIVERY SYSTEM
	  		  		  		  			  		  		
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****

  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -35- 

																	
	 Part
Number
	  	 Part Description
	  	Diameter
(um)	  	Length
(mm)	  	Quantity	  	MSRP	  	 Distributor
 Discount
	  	Distributor
Purch Price
								
		  	WATERLASE YSGG DELIVERY SYSTEM	  		  		  		  			  		  		
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
	 ****
	  	****	  		  		  		  	$	****	  	****	  	$	****
								
		  	 SERVICE CONTRACTS
	  		  		  		  			  		  		
								
		  	****	  		  		  		  	$	****	  	****	  	$	****
								
		  	****	  		  		  		  	$	****	  	****	  	$	****
								
		  	****	  		  		  		  	$	****	  	****	  	$	****
								
		  	****	  		  		  		  	$	****	  	****	  	$	****
								
		  	****	  		  		  		  	$	****	  	****	  	$	****
								
		  	****	  		  		  		  	$	****	  	****	  	$	****
								
		  	 LABOR SERVICE CHARGE
	  		  		  		  			  		  		
								
		  	Non-warranty	  		  		  		  	$	****	  		  		
								
		  	 TRAINING
	  		  		  		  			  		  		
		  	Certification Training Course (CTC)	  		  		  		  	$	****	  	****	  	$	****

 **** per calendar year beginning in 2007, Company shall have the option to modify the Distributor Purchase
Price. The Distributor Purchase Price shall be calculated based upon the following formula: (i) the MSRP at the modification date for the applicable System, MULTIPLIED BY (ii) **** MINUS the Distributor Discount stated in the above
table. 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -36- 

 The System Purchase Incentives will be calculated using the applicable System Purchase Incentive Percentage established
based on the Aggregate Purchases of Systems in the prior Period. The applicable System Purchase Incentive Percentage shall be determined as set forth below: 
  

					
	 Period
	  	 Aggregate Purchases of Systems
	  	System Purchase Incentive
Percentage Applicable to
Subsequent Period
	 ****
	  	 Greater than US $****
	  	****
		  	 Greater than $**** and less than or equal to
	  	
		  	 US $****
	  	****
		  	 Less than or equal to US $****
	  	****
			
	 ****
	  	 Growth Factor greater than ****
	  	****
		  	 Growth Factor greater than **** and
	  	
		  	 less than or equal to ****
	  	****
		  	 Growth Factor less than or equal to ****
	  	****
			
	 ****
	  	 Growth Factor greater than ****
	  	****
		  	 Growth Factor greater than **** and
	  	
		  	 less than or equal to ****
	  	****
		  	 Growth Factor less than or equal to ****
	  	****
			
	 ****
	  	 Growth Factor greater than ****
	  	****
		  	 Growth Factor greater than **** and
	  	
		  	 less than or equal to ****
	  	****
		  	 Growth Factor less than or equal to ****
	  	****
			
	 ****
	  	 Growth Factor greater than ****
	  	****
		  	 Growth Factor greater than **** and
	  	
		  	 less than or equal to ****
	  	****
		  	 Growth Factor less than or equal to ****
	  	****

 “Aggregate Purchases of Systems” as used above shall mean the aggregate invoice price paid by
Distributor to the Company for Systems (but not accessories or consumables therefor) purchased pursuant to this Agreement during the applicable Period, and not including freight, duties, taxes and any other handling charges. 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -37- 

 “Growth Factor” as used above shall mean the percentage growth in (A) Aggregate Purchases of
Systems by Distributor in such Period less System Purchase Incentives earned in such Period, over (B) Aggregate Purchases of Systems in the immediately preceding Period less System Purchase Incentives earned in such immediately preceding
Period. 
 For the avoidance of doubt, Growth Factors shall only be calculated if Aggregate Purchases of Systems by Distributor in such Period, less System
Purchase Incentives earned in such Period, equal or exceed the amount which is **** greater than the Minimum Purchase Requirement for such Period. 
 Market Share Loss Formula Example 
 Market Share Loss Factor: 
 Combined Licensee market share: **** 
 Present **** Licensees’ market share: **** 
 Calculation (“Market
Share Loss Factor”): **** 
 Purchase Commitment Adjustment: 
 Total U.S. **** dental laser market: $**** 
 COMPANY market share threshold: **** 
 Calculation: **** 
 Current Period’s Minimum Purchase Commitment reduced by
$****  
 Market Share Refund Formula Example 
 The Market Share Refund Formula: The formula shall be calculated for each period outlined in Sec 1.5 in the following method: 
  

	 	•	 	Market Share Loss Factor multiplied by the License Fee amortization for each Period based on the following amortization schedule: 

  

	 	•	 	**** = $**** 

  

	 	•	 	**** = $**** 

  

	 	•	 	**** = $**** 

  

	 	•	 	**** = $**** 

  

	 	•	 	**** = $**** 

  

	 	•	 	**** = $**** 

  

	 	•	 	**** = $**** 

 Example: 
 Amortization for Period = $**** 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -38- 

 Market Share Loss Factor = **** 
 Refund for Period: **** 
 Excluded Terms pursuant to Section 2.3 
 The following terms of the Agreement shall be excluded from the remaining **** period
of the Agreement in the event that Company exercises its Buy Back Option pursuant to Section 2.3: 
  

	 	•	 	Distributor shall not be entitled to any right of first refusal with respect to Section 1.2; 

  

	 	•	 	Distributor shall not be entitled to any refunds of License Fees pursuant to Section 1.5; 

  

	 	•	 	No further Minimum Purchase Requirements pursuant to Section 2.3 shall apply; 

  

	 	•	 	System Purchase Incentives pursuant to Section 2.7 shall no longer be paid; 

  

	 	•	 	Section 8.1 is modified as set forth in Section 2.3; 

  

	 	•	 	Section 5.1, except Section 5.1 (viii), shall no longer apply; 

  

	 	•	 	Section 5.2 shall no longer apply, except any reporting obligations; 

  

	 	•	 	Sections 5.4, 5.6, 5.7, 5.8, 5.12, 5.13 and 6.1 shall no longer apply; 

  

	 	•	 	Sections 8.2 and 8.3 shall no longer apply. 

 Domain
Names 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -39- 

 **** 
 ****

 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -40- 

 **** 
 ****

 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -41- 

 **** 
 ****

 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -42- 

 EXHIBIT C 
 Licensed Trademarks 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
 Non Licensed Trademarks 
 **** 
 **** 
 **** 
 **** 
 **** 
 **** 
  

	****	Certain confidential information contained in this document, marked with four asterisks, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  

 -43-Loan Agreement

 Exhibit 10.1 
 LOAN AGREEMENT 
 THIS LOAN AGREEMENT (“Loan Agreement”) is made as of the 28th day
of November, 2006, by and between UNIVERSAL TRUCKLOAD SERVICES, INC., a corporation organized and existing under the laws of Michigan with its principal place of business at 11355 Stephens Road, Warren, Michigan 48089
(“Borrower”), and FIRST TENNESSEE BANK NATIONAL ASSOCIATION, a national banking association organized and existing under the statutes of the United States of America, with its principal place of business at 165 Madison Avenue,
Memphis, Tennessee 38103 (“Bank”). 
 Recitals of Fact 
 Borrower has requested that the Bank commit to make loans and advances and extensions of credit to it on a revolving credit basis in an amount not to
exceed at any one time outstanding the principal sum of Twenty Million Dollars ($20,000,000.00) (“Committed Amount”). The Bank has agreed to make such loans and advances and extensions of credit on the terms and subject to the conditions
herein set forth. 
 NOW, THEREFORE, incorporating the Recitals of Fact set forth above and in consideration of the mutual agreements herein
contained, the parties agree as follows: 
 AGREEMENTS 
 SECTION ONE: DEFINITIONS AND ACCOUNTING TERMS 
 For the purposes of this Loan Agreement, the following
terms shall have the following meanings (such meanings to be applicable equally to both the singular and plural forms of such terms) unless the context otherwise requires: 
 “Accounts Receivable Assets” shall mean all of the accounts, accounts receivable, chattel paper, instruments, and other obligations of any kind, whether or not evidenced by an instrument or chattel paper,
and whether or not earned by performance (collectively hereinafter “Accounts Receivable”) whether now or hereafter existing, arising out of or in connection with the sale of goods or the rendering of services, and all rights now or
hereafter existing in and to all security agreements, and other contracts securing or otherwise relating to any such Accounts Receivable but excluded from Accounts Receivable are any accounts arising out of the leasing of trucks, trailers, tractors
and equipment; all customer lists, original books and records, ledger and account cards, computer tapes, discs and printouts, whether now in existence or hereafter created pertaining to the foregoing collateral; and all proceeds
(“Proceeds”) of any and all of the foregoing collateral including, without limitation, all moneys due or to become due in connection with any of the collateral, guaranties and security for the payment of such moneys; in each case, whether
now owned or hereafter acquired by the Person and howsoever its interest therein may arise or appear (whether by ownership, lease, security interest, claim, or otherwise). 
 “Business Day” means a banking business day of the Bank. 

 “Closing Date” means the date set out in the first paragraph of this Loan Agreement.

 “Consistent Basis” shall mean, in reference to the application of Generally Accepted Accounting Principles, that the accounting
principles observed in the current period are comparable in all material respects to those applied in the preceding periods. 
 “Cure
Period” shall mean fifteen (15) days with respect to a Monetary Default and thirty (30) days with respect to a NonMonetary Default. 
 “Debt/Tangible Net Worth Ratio” shall mean, as of the date of determination, that ratio determined by a fraction: 
 (a) the numerator of which is the Total Liabilities; and 
 (b) the denominator of which is the Tangible Net Worth.

 “Event of Default” has the meaning assigned to that phrase in Section Eight. 
 “Generally Accepted Accounting Principles” shall mean those principles set forth in Opinion of the Accounting Principles Board of the American
Institute of Certified Public Accountants and the Financial Accounting Standards Board, or those principles which have other substantial authoritative support and are applicable in the circumstances as of the date of the report, provided however,
that with respect to the calculation of the financial covenants set forth in Section 6.8 such calculations shall be substantially in accordance with applicable Interstate Commerce Commission regulations, but nevertheless to the extent possible,
substantially consistent with Generally Accepted Accounting Principles (as hereinabove defined). 
 “Loan” means the aggregate of
(i) unpaid Loan advances from time to time outstanding pursuant to the provisions of this Loan Agreement, and (ii) the amount of any outstanding letters of credit issued by Bank for the account of Borrower (including letters of credit
presently outstanding). Unless the context shall otherwise require, the terms “extensions of credit” and “indebtedness,” when used in connection with this Loan, shall also include any outstanding letters of credit issued by Bank
for the account of the Borrower, and drafts accepted pursuant thereto, as well as loan advances disbursed to the Borrower. 
 “Loan
Agreement” means this Loan Agreement between the Borrower and the Bank. 
 “Maximum Rate” means the maximum effective variable
contract rate of interest which the Bank may lawfully charge under applicable statutes and laws from time to time in effect. 
 “Monetary Default” shall mean any default under Section 8 of this Agreement which may be cured by the payment of money. 
 “Net Worth” means, as of the date of determination, the difference between the Total Assets and the Total Liabilities of Borrower on a consolidated basis, and is to be determined both as to classification of items and amounts in
accordance with Generally Accepted Accounting Principles applied on a Consistent Basis. 

 “Non-Monetary Default” shall mean any default under Section 8 of this Agreement other than
a Monetary Default. 
 “Note” means the promissory note of the Borrower dated of even date herewith in the principal amount of
Twenty Million Dollars ($20,000,000.00), payable to the order of the Bank which evidences the Loan, as such note may be modified, renewed or extended from time to time; and any other note or notes executed at any time to evidence the Loan in whole
or in part. 
 “Person” means an individual, partnership, limited liability company, corporation, trust, unincorporated
organization, association, joint venture or a government or agency or political subdivision thereof. 
 “Property” means any
interest in any kind of property or asset, whether real, personal or mixed, tangible or intangible. 
 “Related Person” shall mean
any Person, other than a publicly traded corporation or Person, (a) which now or hereafter directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, Borrower, or (b) which now
or hereafter beneficially owns or holds five percent (5%) or more of the capital stock of Borrower, or (c) five percent (5%) or more of the capital stock of which is beneficially owned or held by Borrower. For the purposes hereof,
“control” shall mean possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting stock or the right to vote voting stock. 

“Subsidiary,” “Subsidiaries” of any Person means (a) any corporation, more than fifty percent (50%) of whose stock of
any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time any class or classes of the capital stock of such corporation shall have or
might have voting power by reason of the happening of an contingency), is at the time owned by such Person directly or indirectly through Subsidiaries of such Person; and (b) any partnership, association, joint venture or other entity in which
such Person directly or indirectly through Subsidiaries of such Person has more than fifty percent (50%) of the equity interest at any time. 
 “Tangible Net Worth” shall mean, as of the date of determination, Net Worth, less (a) the values assigned to intangibles, e.g., goodwill, royalties, unamortized bond discount, acquisition costs in excess of book value,
research and development costs, patents, copyrights, trademarks, tradenames, (b) any accumulated earnings attributable to interests in the capital stock and retained earnings of other Persons other than a wholly-owned subsidiary of the
Borrower, (c) deferred assets, and (d) any other assets properly classified as intangible (except for value assigned to intrastate operating authority, franchises, licenses and permits), in accordance with Generally Accepted Accounting
Principles; provided that with respect to the foregoing, accumulated earnings shall not be deducted from the market value of any publicly traded securities; and provided, further, that with respect to the Borrower, any loans due to the Borrower from
Centra, Inc. and any amounts due to the Borrower from any subsidiaries or affiliates of Centra, Inc. or any affiliate of the Borrower shall be deducted from Net Worth. 

 “Termination Date” shall mean the 31st day of May, 2008, unless such date is extended pursuant
to the provisions of Section 9.12 hereof, in which event such extended date shall be the Termination Date. 
 “Total Assets”
shall mean all of the assets of the Borrower, on a consolidated basis, whether tangible or intangible, determined in accordance with Generally Accepted Accounting Principles. 
 “Total Liabilities” shall mean all obligations of Borrower, on a consolidated basis, which, in accordance with Generally Accepted Accounting
Principles, are or should be classified as liabilities on a balance sheet. 
 “United States” means the government of the United
States of America or any department, agency, division or instrumentality thereof. 
 SECTION TWO: COMMITMENT AND FUNDING 
 2.1 The Commitment. Subject to the terms and conditions herein set out, the Bank agrees and commits, from time to time, from the Closing Date until
the Termination Date, to make loan advances to the Borrower and to issue letters of credit, all in an aggregate principal amount not to exceed, at any one time outstanding the sum of Twenty Million Dollars ($20,000,000.00). 
 2.2 Funding the Loan; Extending Credit. Each loan advance hereunder shall be made by depositing the same to the checking account of the Borrower
in Bank, or in such other manner as the Borrower and Bank may, from time to time, agree. 
 2.3 The Note and Interest. 
 (a) All advances with respect to the Loan shall be evidenced by the promissory note of the Borrower, payable to the order of the Bank in the principal
amount of Twenty Million Dollars ($20,000,000.00), in form substantially the same as the copy of the Note attached hereto as Exhibit “A.” The entire principal amount of the Loan shall be due and payable on the Termination Date.
The unpaid principal balance of the Loan shall bear interest from the Closing Date on disbursed and unpaid principal balances (calculated on the basis of a year of 360 days) at a rate or rates per annum as specified in the Note. Said interest shall
be payable monthly on the first day of each month after the Closing Date, with the final installment of interest being due and payable on the Termination Date, or on such earlier date as the Loan shall become due and payable. 
 (b) In the event that the Bank should at any time agree to increase the Committed Amount, the Borrower will either execute a new note for the amount of
such increase, or a new note for the aggregate increased Committed Amount; and in either event, the term “Note,” as used herein, shall be deemed to mean and include such new note, as the circumstances shall require. 

 2.4 [Intentionally Deleted]. 
 SECTION THREE: REQUIRED PAYMENTS, PLACE OF PAYMENT, ETC. 
 3.1 Place of Payments. All payments
of principal and interest on the Loan and all payments of fees required hereunder shall be made to the Bank, at its address listed at the beginning of this Agreement (Attention: First Horizon Business Credit Division), in immediately available
funds. 
 3.2 Payment on Nonbusiness Days. Whenever any payment of principal, interest or fees to be made on the indebtedness
evidenced by the Note shall fall due on a Saturday, Sunday or public holiday under the laws of the State of Tennessee, such payment shall be made on the next succeeding Business Day. 
 SECTION FOUR: CONDITIONS OF LENDING 
 4.1 Conditions Precedent to Closing and Funding Initial
Advance. The obligation of the Bank to fund the initial Loan advance hereunder is subject to the condition precedent that the Bank shall have received, on or before the Closing Date, all of the following in form and substance satisfactory to the
Bank: 
 (a) This Loan Agreement 
 (b) Note (the “Note”) from the Borrower, payable to the order of the Bank in the principal amount of Twenty Million Dollars ($20,000,000.00). 
 (c) Certified corporate resolutions of Borrower and certificate(s) of good standing for Borrower from its state of incorporation and such
other states as Bank shall require, together with a copy of the charter and bylaws of the Borrower. 
 (d) If required by
Bank, the opinion of Borrower’s counsel that the transactions herein contemplated have been duly authorized by all requisite corporate authority, that this Loan Agreement and the other instruments and documents herein referred to have been duly
authorized, validly executed and are in full force and effect, and pertaining to such other matters as the Bank may require. 
 (e) Such other information and documentation as Bank shall reasonably deem to be necessary or desirable in connection with the funding of the Loan. 
 4.2 Conditions Precedent to All Credit Extensions. The obligation of the Bank to extend credit or make loan advances pursuant hereto (including the initial advance at the Closing Date) shall be subject to the
following additional conditions precedent: 
 (a) The Borrower shall have furnished to the Bank each of the items referred to in
Section 4.1 hereof, all of which shall remain in full force and effect as of the date of such requested credit extension or loan advance (notwithstanding that the Bank may not have required any such item to be furnished prior to the Closing
Date). 

 (b) The Borrower shall not be in default of any of the terms and provisions hereof, or of any instrument
or document now or at any time hereafter evidencing or securing all or any part of the Loan indebtedness and extensions of credit. Each of the Warranties and Representations of the Borrower, as set out in Section Five hereof shall remain true and
correct in all material respects as of the date of such Loan advance. 
 SECTION FIVE: REPRESENTATIONS AND WARRANTIES 
 Borrower represents and warrants that: 
 5.1
Incorporation. It is a corporation duly organized, validly existing and in good standing under the laws of the State of Michigan; it has the power and authority to own its properties and assets and is duly qualified to carry on its business
in every jurisdiction wherein such qualification is necessary. 
 5.2 Power and Authority. The execution, delivery and performance of
this Loan Agreement and the Note, executed pursuant thereto by the Borrower, have been duly authorized by all requisite action and will not violate any provision of law, any order of any court or other agency of government, the Articles of
Incorporation or Bylaws of the Borrower, any provision of any indenture, agreement or other instrument to which Borrower is a party, or by which Borrower’s properties or assets are bound, or be in conflict with, result in a breach of, or
constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument, or result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the properties
or assets of Borrower or any Subsidiary of the Borrower except for liens and other encumbrances provided for and securing the indebtedness covered by this Loan Agreement. 
 5.3 Financial Condition. 
 (a) (i) The audited financial statements of Borrower for the fiscal
year ended as of December 31, 2005, on a consolidated basis for the year then ended, a copy of which has been furnished to the Bank, together with any explanatory notes therein referred to and attached thereto, and the unaudited financial
statements of the Borrower for the quarter ended as of June 30, 2006, on a consolidated basis, a copy of which has been furnished to the Bank, fairly present the financial condition of Borrower as of the date of said balance sheet and the
results of its operations for said periods. Such financial statements have been prepared in accordance with Generally Accepted Accounting Principles applied on a consistent basis maintained through the period involved. 
 (b) There has been no material adverse change in the business, properties or condition, financial or otherwise, of Borrower since the 30th day of
June, 2006. 
 5.4 Title to Assets. Borrower has good and marketable title to material properties and assets shown to be owned by it
as reflected on the balance sheet referred to in Section 5.3 hereof, except for (i) such assets as have been disposed of since said date as no longer used or useful in the conduct of business, (ii) Accounts Receivable collected and
properly accounted for, and (iii) items which have been amortized in accordance with Generally Accepted Accounting Principles applied on a consistent basis. 

 5.5 Litigation. There is no action, suit or proceeding at law or in equity or by or before any
governmental instrumentality or other agency now pending, or, to the knowledge of the Borrower threatened against or affecting Borrower, or any properties or rights of Borrower, which, if adversely determined, would materially and adversely affect
the financial condition of Borrower. 
 5.6 Taxes. Borrower has filed or caused to be filed all federal, state or local tax returns
which are required to be filed, and has paid all taxes as shown on said returns or on any assessment received by it, to the extent that such taxes have become due, except as otherwise permitted by the provisions hereof (see Section 6.4).

 5.7 Contracts or Restrictions Affecting Borrower. Borrower is not a party to any agreement or instrument or subject to any charter
or other corporate restrictions adversely affecting its business, properties or assets, operations or financial condition. 
 5.8 No
Default. Borrower is not in default in the performance, observance or fulfillment of any of the obligations, covenants, or conditions contained in any agreement or instrument to which it is a party, which does or will in the foreseeable future
materially and adversely affect the business or operations of Borrower. 
 5.9 ERISA. Borrower is in compliance with all applicable
provisions of the Employees Retirement Income Security Act of 1974 (“ERISA”), and all other laws, state or federal, applicable to any employees’ retirement plan maintained or established by it. 
 SECTION SIX: AFFIRMATIVE COVENANTS OF BORROWER 
 Borrower covenants and agrees that from the date hereof and until payment in full of the principal of and interest on the Loan, unless the Bank shall otherwise consent in writing, such consent to be at the discretion of the Bank, Borrower
will: 
 6.1 Business and Existence. Perform all things necessary to preserve and keep in full force and affect its existence, rights
and franchises, comply with all laws applicable to it and continue to conduct and operate its business. 
 6.2 Maintain Property.
Maintain, preserve, and protect all franchises, and trade names and preserve all the remainder of its properties used or useful in the conduct of its business substantially as conducted and operated during the present and preceding fiscal year;
preserve all the remainder of its properties used or useful in the conduct of its business and keep the same in good repair, working order and condition, and from time to time make, or cause to be made, all needed and proper repairs, renewals,
replacements, betterments and improvements thereto so that the business carried on in connection therewith may be properly conducted at all times. 
 6.3 Insurance. At all times maintain in some company or companies (having a Best’s rating of A- or better) approved by Bank, comprehensive public liability insurance covering claims for bodily injury, death, and property
damage, with minimum limits satisfactory to the Bank, but in any event not less than those amounts customarily maintained by companies in the same or substantially similar business; 

 6.4 Obligations, Taxes and Liens. Pay all of its indebtednesses and obligations promptly in
accordance with normal terms and practices of its business and pay and discharge or cause to be paid and discharged promptly all taxes, assessments, and governmental charges or levies imposed upon it or upon any of its income, profits, or
properties, real, personal or mixed, or upon any part thereof, before the same shall become in default, as well as all lawful claims for labor, materials, and supplies which otherwise, if unpaid, might become a lien or charge upon such properties or
any part thereof; provided, however, that the Borrower shall not be required to pay and discharge or to cause to be paid and discharged any such tax, assessment, trade payable, charge, levy or claim so long as the validity thereof shall be contested
in good faith by appropriate proceedings satisfactory to Bank, and Bank shall be furnished, if Bank shall so request, bond or other security protecting it against loss in the event that such contest should be adversely determined. 
 6.5 Financial Reports and Other Data. 
 (a) Furnish to the Bank as soon as available, and in any event within one hundred twenty (120) days after the end of each fiscal year of Borrower, consolidated balance sheets and statements of income and surplus of Borrower which have
been certified by an independent Certified Public Accountant acceptable to the Bank, showing the financial condition of Borrower and at the close of such year and the results of operations during such year; and, within ninety (90) days after
the end of each fiscal quarter, financial statements similar to those mentioned above, on a consolidating basis, not audited, such balance sheets to be as of the end of each such quarter, and such statements of income and surplus to be for the
period from the beginning of the fiscal year to the end of such quarter, in each case subject only to audit and year-end adjustment. Borrower shall use good faith efforts to submit the unaudited financial statements as certified by the Treasurer or
other appropriate financial officer (“Certifying Officer”). Borrower’s failure to submit a certificate of the Certifying Officer with the unaudited financial statements shall not constitute an Event of Default, but any submission of
Borrower shall automatically have been deemed to make the certifications in the preceding sentence when Borrower submits any financial statements to the Bank. The certificate of the Certifying Officer shall state that the attached financial
statement, together with any explanatory notes therein referred to and attached thereto, is correct and complete and fairly presents the financial condition of the Borrower as of the date of the financial statement, and the results of its operations
for the period ending on the date reflected in said financial statement; and that such financial statement has been prepared in accordance with generally accepted accounting principles applied on a consistent basis maintained throughout the period
involved. 
 (b) Borrower’s delivery to Bank of each set of financial statements pursuant to Section 6.5(a) hereof shall constitute
a certification to the effect that such financial statements set forth the information required in order to establish whether the Borrower was in compliance with the requirements set forth in Section 6.8 of this Agreement during and as of the
end of the period covered by the financial statements then being furnished. 
 6.6 Notice of Default. At the time of Borrower’s
first knowledge or notice, furnish the Bank with written notice of the occurrence of any event or the existence of any event, circumstance, or condition which constitutes or upon notice, lapse of time, or both, would constitute an Event of Default
under the terms of this Loan Agreement. 

 6.7 [Intentionally Deleted] 
 6.8 Financial Covenants. Maintain the following financial status as of the end of each fiscal quarter of the Borrower as hereinafter set forth, on
a consolidated basis with all subsidiaries, and each defined term used in this Section 6.8, or incorporated or used in the calculations herein required of any defined term, shall be determined on a consolidated basis of Borrower. and all
subsidiaries: 
 (i) as of the fiscal quarter ending December 31, 2006, and as of the end of each fiscal quarter
thereafter, a Debt to Tangible Net Worth Ratio not to exceed 1.0 to 1.0; 
 (ii) as of the fiscal quarter ending
December 31, 2006, and as of the end of each fiscal quarter thereafter, a Tangible Net Worth of not less than Eighty-Five Million Dollars ($85,000,000.00); and 
 (iii) as of the fiscal quarter ending December 31, 2006, and as of the end of each fiscal quarter thereafter, net profits of at least
One Dollar ($1.00) for said fiscal quarter. 
 6.9 Right of Inspection. Permit the Bank, upon two (2) Business Days notice to
visit and inspect any of the properties, corporate books and financial reports of the Borrower and to discuss its affairs, finances and accounts with its principal officers, at all such reasonable times and as often as the Bank may reasonably
request. 
 SECTION SEVEN: NEGATIVE COVENANTS OF BORROWER 
 Borrower covenants and agrees that at all times from and after the Closing Date, unless the Bank shall otherwise consent in writing, such consent to be at the discretion of the Bank, it will not, either directly or
indirectly: 
 7.1 Sale of Assets. Sell, transfer or dispose (other than in the normal course of business) of all or a substantial part
of its assets where any such sale or transfer will result in a breach of the financial covenants as contained as Section 6.9 hereof. 
 7.2 Additional Encumbrances. Pledge or grant a lien on Accounts Receivable Assets. 
 7.3 Dividends, Redemptions and
Other Payments. (a) Declare or pay, or set aside any sum for the payment of, any dividends or make any other distribution upon any shares of its capital stock of any class, or (b) purchase, redeem or other otherwise acquire for value
any shares of its capital stock of any class, or commit to do any of same, or set aside any sum therefor, or (c) make any payment to a profit sharing plan or to any other retirement or pension plan to or for the benefit of management
shareholders which exceeds (based on a percentage of compensation) similar payments made for the benefit of all employees of the Borrower; provided that the above clauses (a), (b) and (c) shall only apply where the taking of any such
action will result in a default in the financial covenants as contained at Section 6.8 herein. 

 SECTION EIGHT: EVENTS OF DEFAULT 
 An “Event of Default” shall exist if, subject to the provisions of Section 9.9, any of the following shall occur: 
 8.1 Payment of Principal, Interest. The Borrower defaults in the prompt payment as and when due of the principal of or interest on the Loan or any fees due under this Loan Agreement, or in the prompt payment
when due of any other indebtednesses, liabilities, or obligations to the Bank, whether now existing or hereafter created or arising; direct or indirect, absolute or contingent; or 
 8.2 Payment of Other Obligations. The Borrower defaults with respect to any other agreement to which it is a party or with respect to any other
indebtedness when due or the performance of any other obligation incurred in connection with any indebtedness for borrowed money, where the amount of such obligations or indebtedness is Two Million Five Hundred Thousand Dollars ($2,500,000.00) or
more, and if the effect of such default is to accelerate the maturity of such indebtedness, or if the effect of such default is to permit the holder thereof to cause such indebtedness to become due prior to its stated maturity; or 
 8.3 Representation or Warranty. Any representation or warranty made by the Borrower herein, or in any report, certificate, financial statement or
other writing furnished in connection with or pursuant to this Loan Agreement shall prove to be false, misleading or incomplete in any material respect on the date as of which made; or 
 8.4 Covenants. The Borrower defaults in the performance or observance of any covenant, condition, agreement or undertaking on its part to be
performed or observed, as contained herein, or in any other instrument or document which now or hereafter evidences, secures or relates to all or any part of the Loan or any extensions of credit made pursuant hereto; or 
 8.5 Bankruptcy, Etc. The Borrower or any Subsidiary of Borrower shall make an assignment for the benefit of creditors, file a petition in
bankruptcy, petition or apply to any tribunal for the appointment of a custodian, receiver or any trustee for it or him or a substantial part of its, his or her assets, or shall commence any proceeding under any bankruptcy, reorganization,
arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in effect; or if there shall have been filed any such petition or application, or any such proceeding shall have been
commenced against Borrower or any Subsidiary of Borrower in which an order for relief is entered or which remains undismissed for a period of thirty (30) days or more; or Borrower or any Subsidiary of Borrower by any act or omission shall
indicate its, his or her consent to, approval of or acquiescence in any such petition, application or proceeding or order for relief or the appointment of a custodian, receiver or any trustee for it or him or any substantial part of any of its, his
or her properties, or shall suffer any such custodianship, receivership or trusteeship to continue undischarged for a period of thirty (30) days or more; or Borrower or any Subsidiary of Borrower shall generally not pay its, his or her debts as
such debts become due; or 

 8.6 Concealment of Property, Etc. The Borrower shall have concealed, removed, or permitted to be
concealed or removed, any part of its property, with intent to hinder, delay or defraud its creditors or any of them, or made or suffered a transfer of any of its property which may be fraudulent under any bankruptcy, fraudulent conveyance or
similar law; or shall have made any transfer of its property to or for the benefit of a creditor at a time when other creditors similarly situated have not been paid; or shall have suffered or permitted, while insolvent, any creditor to obtain a
lien upon any of its property through legal proceedings or distraint which is not vacated within thirty (30) days from the date thereof; or 
 8.7 Management Change. Any officer of Borrower who, in the reasonable judgment of Bank, occupies a position of substantial and material management responsibility shall, by reason of death, permanent disability, or departure from the
employ of the Borrower, or for any other reason, shall cease to be active in the management of the Borrower and the Borrower shall not, within a period of ninety (90) days from such permanent disability, death or departure, secure a replacement
for said officer. For purposes of this section, permanent disability means any disability that prevents such officer from rendering full-time services to Borrower in any fiscal year for ninety (90) consecutive days, or in the aggregate for one
hundred eighty (180) days; or 
 8.8 Liens on Accounts Receivable Assets. Borrower or any of Borrower’s Subsidiaries
grants a lien or security interest on any of the Borrower’s or any Subsidiary’s Accounts Receivable Assets (except for liens or security interests granted by any Subsidiary to Borrower). 
 8.9 Notice and Cure Periods. The occurrence of any foregoing events listed in Sections 8.1, 8.2, 8.3, 8.4, 8.6, 8.7 and 8.8 hereof shall be
an Event of Default if the same remains uncured in full after the Bank has provided written notice to Borrower of such default and Borrower’s failure to cure within the applicable Cure Period; and the occurrence of any of the events listed in
Section 8.5 shall automatically be an Event of Default if same remains uncured after the Cure Period (with no notice being required from the Bank for any default in Section 8.5). 
 8.10 Remedy. Upon the occurrence of any event, circumstance or condition which constitutes or would with the giving of notice, lapse of time, or
both constitute an Event of Default, as specified herein, the Bank shall, at its option, be relieved of any obligation to make further loan advances or extensions of credit under this Agreement; and if such event, circumstance, or condition becomes
an Event of Default, the Bank may, at its option, thereupon declare the entire Loan indebtedness to be immediately due and payable for all purposes, and may exercise all rights and remedies available to it under this Agreement, or available at law
or in equity. All such rights and remedies are cumulative and nonexclusive, and may be exercised by the Bank concurrently or sequentially, in such order as the Bank may choose. 
 SECTION NINE: MISCELLANEOUS 
 9.1 Amendments. The provisions of this Loan Agreement, the Note
or any instrument or document executed pursuant hereto or securing the Loan indebtedness may be amended or modified only by an instrument in writing signed by the parties hereto. 

 9.2 Notices. All notices and other communications provided for hereunder (except for routine
informational communications) shall be in writing and shall be mailed, certified mail, return receipt requested, sent by overnight courier service, or delivered, if to the Borrower, to it at the address reflected at the beginning of this Agreement
to the Attention of Robert Sigler, with a copy to Donald Cochran at said address and to Ralph A. Castelli, Jr. at 201 W. Big Beaver Road, Suite 600, Troy, Michigan; if to the Bank, to it at 165 Madison Avenue, Memphis, Tennessee
38103, Attention: First Horizon Business Credit, with a copy to Baker, Donelson, Bearman, Caldwell & Berkowitz, PC, 165 Madison Avenue, Suite 2000, Memphis, Tennessee 38103, Attention: Mary Aronov; or as to any such person at
such other address as shall be designated by such person in a written notice to the other parties hereto complying as to delivery with the terms of this Section 9.2. All such notices and other communications shall be effective (i) if
mailed, when received or three (3) business days after mailing, whichever is earlier; (ii) if sent by overnight courier service, when received or one (1) business day following the sending thereof (whichever is earlier); or
(iii) if delivered, upon delivery. 
 9.3 No Waiver, Cumulative Remedies. No failure to exercise and no delay in exercising, on
the part of the Bank, any right, power or privilege hereunder, shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of
any other right, power or privilege. Waiver of any right, power, or privilege hereunder or under any instrument or document now or hereafter securing the indebtedness evidenced hereby or under any guaranty at any time given with respect thereto is a
waiver only as to the specified item. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies provided by law. 
 9.4 Survival of Agreements; Assignments. All agreements, representations and warranties made herein shall survive the delivery of the Note. This Loan Agreement shall be binding upon, and inure to the benefit of
the parties hereto and their respective heirs, successors, and permitted assigns, except that the Borrower shall not have the right to assign its rights hereunder or any interest therein and Bank shall not have the right to assign any part of the
Loan or grant participations therein without the consent of the Borrower whose consent shall not be unreasonably withheld. 
 9.5 Liens;
Setoff by Bank. Borrower hereby grants to the Bank a continuing lien, as security for the Note and all other indebtednesses, liabilities, and obligations of the Borrower to the Bank, upon any and all of its moneys, securities and other
property and the proceeds thereof, now or hereafter held or received by or in transit to, the Bank from or for Borrower, and also upon any and all deposits (general or special, matured or unmatured) and credits of the Borrower against the Bank, at
any time existing. Upon the occurrence of any Event of Default as specified above, the Bank is hereby authorized at any time and from time to time, with prior written notice to Borrower to set off, appropriate, and apply any and all items
hereinabove referred to against any or all indebtednesses of the Borrower to the Bank under this Agreement or the Note. 
 9.6 Governing
Law. This Loan Agreement shall be governed and construed in accordance with the laws of the State of Tennessee; except that the provisions hereof which relate to the payment of interest shall be governed by (i) the laws of the United
States, or (ii) the laws of the State of Tennessee, whichever permits the Bank to charge the higher rate, as more particularly set out in the Note. 

 9.7 Execution in Counterparts. This Loan Agreement may be executed in any number of counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument. 
 9.8 Terminology; Section Headings. All personal pronouns used in this Loan Agreement whether used in the masculine, feminine, or neuter gender, shall include all other genders; the singular shall include the plural, and vice versa.
Section headings are for convenience only and neither limits nor amplifies the provisions of this Loan Agreement. 
 9.9 Enforceability of
Agreement. Should any one or more of the provisions of this Loan Agreement be determined to be illegal or unenforceable, all other provisions, nevertheless, shall remain effective and binding on the parties hereto. 
 9.10 Interest Limitations. It is the intention of the parties hereto to comply strictly with all applicable usury and similar laws; and,
accordingly, in no event and upon no contingency shall the Bank ever be entitled to receive, collect, or apply as interest any interest, fees, charges or other payments equivalent to interest, in excess of the Maximum Rate. Any provision hereof, or
of any other agreement executed by the Borrower that would otherwise operate to bind, obligate or compel the Borrower to pay interest in excess of such Maximum Rate or fees in excess of the maximum lawful amount shall be construed to require the
payment of the maximum rate or amount only. 
 9.11 Non-Control. In no event shall the Bank’s rights hereunder be deemed to
indicate that, the Bank is in control of the business, management or properties of the Borrower or has power over the daily management functions and operating decisions made by the Borrower, all such rights and powers being hereby expressly reserved
to the Borrower. 
 9.12 Extensions of Termination Date. 
 (a) The specific Termination Date mentioned in Section One may, in the sole and unrestricted discretion of the Bank, by written notice to the Borrower, be extended one or more times to a subsequent date or dates
unless, not later than thirty (30) days prior to the specific Termination Date mentioned in Section One, or, in the event of the extension of such Termination Date, not later than thirty (30) days prior to any such then effective extended
Termination Date, the Borrower shall notify the Bank in writing that this Agreement shall not be further extended. The Bank shall be under no obligation whatsoever to extend the initial Termination Date, or to further extend any subsequent
Termination Date to which the Bank has previously agreed in writing, any extensions of the initial or any subsequent Termination Date being in the sole and unrestricted judgment and discretion of the Bank. 
 (b) Upon the specific Termination Date so fixed in Section One, or in the event of the extension of this Agreement to a subsequent Termination Date (when
no effective extension is in force), the Loan and all other extensions of credit (unless sooner declared to be due and payable by the Bank pursuant to the provisions hereof) shall become due and payable for all purposes. Until all such
indebtednesses, liabilities and obligations are satisfied in full, such termination 

 shall not affect the duties, covenants, and obligations of the Borrower therein and in this Agreement; and all of such
duties, covenants and obligations shall remain in full force and effect until the Loan shall have been fully paid and satisfied in all respects. 
 9.13 [Intentionally Deleted] 
 9.14 Fees and Expenses. The Borrower agrees to pay, or reimburse the Bank for, the
actual out-of-pocket expenses, including reasonable counsel fees and fees of any accountants, inspectors or other similar experts, on a time and charges basis, as reasonably deemed necessary by the Bank, incurred by the Bank in connection with the
development, preparation, execution, amendment, recording, administration (excluding the salary of Bank’s employees and Bank’s normal and usual overhead expenses, but including the costs of any field exams of Borrower, which, so long as
there is no Event of Default, shall not exceed $4,000.00 annually) or enforcement of, or the preservation of any rights under this Loan Agreement, the Note, and any other instrument or document which now or hereafter evidences the Loan. 

9.15 Time of Essence. Time is of the essence of the Borrower’s obligations under this Loan Agreement, the Note, and the other instruments
and documents executed and delivered in connection herewith. 
 9.16 [Intentionally Deleted] 
 9.17 [Intentionally Deleted] 
 9.18
Conflict. In the event of any conflict between the provisions hereof and the provisions of the Note, or any other loan document with the Bank during the continuance of this Agreement the provisions of this Agreement shall control; provided
that with respect to Section 9.10 hereof, the provisions of the Note shall control. 
 9.19 As to the Bank’s Prime Rate.
Borrower acknowledges that the Bank’s Prime Rate (as referenced in the Addendum) is one of several interest rate indices employed by the Bank; and that the Bank has made and may hereafter make loans bearing interest at rates which are higher or
lower than the Bank’s Prime Rate. 
 9.20 Reports. Except as otherwise expressly set forth herein, all certificates and reports
to be furnished by the Borrower to the Bank shall be furnished by the Treasurer of the Borrower. 
 9.21 Venue of Actions. As an
integral part of the consideration for the making of the Loan, it is expressly understood and agreed that no suit or action shall be commenced by the Borrower by any heir, successor, personal representative or assignee of any of them, with respect
to the Loan contemplated hereby, or with respect to any of the loan documents, other than in a state court of competent jurisdiction in and for the County of the State in which the principal place of business of the Bank is situated, or in the
United States District Court for the District in which the principal place of business of the Bank is situated, and not elsewhere. Nothing in this paragraph contained shall prohibit Bank instituting suit in any court of competent jurisdiction for
the enforcement of its rights hereunder, in the Note, in the Security Agreement or in any other loan document. If any suit or action brought hereunder can qualify for filing in federal court, the parties agree to file the suit or action in federal
court. 

 9.22 ADDENDUM. The Addendum to the Loan Agreement is attached hereto as Exhibit “B” and
incorporated herein by reference. 
 IN WITNESS WHEREOF, the Borrower and the Bank have caused this Agreement to be executed by their
respective officers, duly authorized so to do, all as of the day and year first above written. 
  

			
	 UNIVERSAL TRUCKLOAD SERVICES, INC.,
 a
Michigan corporation

		
	By:	 	 /s/ Robert E. Sigler

	Title:	 	CFO/VP
		
		 	BORROWER
	
	FIRST TENNESSEE BANK NATIONAL ASSOCIATION
		
	By:	 	 /s/ Gavin Turner

	Title:	 	Loan Officer
		
		 	BANK

 LIST OF EXHIBITS TO LOAN AGREEMENT 
 Exhibit “A” - Form of Promissory Note 
 Exahibit “B”- Addendum 

 EXHIBIT “A” 
 TO LOAN AND SECURITY AGREEMENT 
 (Form of Promissory Note) 
 (SEE ATTACHED) 

 EXHIBIT “B” 
 TO LOAN AND SECURITY AGREEMENT 
 ADDENDUM TO LOAN AGREEMENT 
 (SEE ATTACHED) 

 ADDENDUM to LOAN AGREEMENT 
 DATED November 28, 2006 
 Between 
 FIRST TENNESSEE BANK NATIONAL ASSOCIATION 
 (“Bank”) 
 and 
 UNIVERSAL TRUCKLOAD SERVICES, INC. 
 (“Borrower”) 
 Provisions Governing Borrowing Procedures 
 and Interest Rate Determinations

 Set forth in this Addendum are the terms and conditions relating to the interest payable on, and certain borrowing and repayment
procedures with respect to, the loan advances (the “Loans”) made pursuant to the Loan Agreement dated November 28, 2006, between the Bank and the Borrower (herein, together with any and all amendments, supplements and other modifications
thereto called the “Agreement”) to which this Addendum is attached. Certain capitalized terms used in this Addendum shall have the meanings given to such terms in Part 2 below; other capitalized terms are defined in the Agreement or in the
Note (hereinafter mentioned). All references to sections or subsections are references to those in this Addendum. 
 PART 1: BORROWING PROCEDURES AND
INTEREST RATE DETERMINATION 
 1.1 Borrowing Alternatives. Loans made under the Agreement may be either (i) Libor Loans,
(ii) Prime Loans, or (iii) a combination thereof, as elected by the Borrower or otherwise applicable in accordance with Sections 1.4, 1.5, 1.6 or subsection 1.2(d) of this Addendum. 
 1.2 Interest Rates. 
 (a) Each Libor
Loan shall bear interest on the unpaid principal amount thereof until payment in full at a rate per annum equal to the sum of the LIBOR Rate from time to time in effect on each Interest Rate Change Date plus one and sixty-five-hundredths percent
(1.65%) , but in no event to exceed the Maximum Rate. 

 (b) Each Prime Loan shall bear interest on the unpaid principal amount thereof until payment in full
thereof at a varying rate per annum at all times equal to the Prime Rate from time to time in effect on each Interest Rate Change Date minus one and one quarter percent (1.25%), but in no event to exceed the Maximum Rate. 
 (c) Interest shall be payable as to any Prime Loan or Libor Loan, on the first day of each calendar month, commencing on the first of such days to occur
after such Loan is made. 
 (d) Upon the occurrence of an Event of Default ̧ the Loans shall bear interest at the Default Rate until
paid in full, but in no event to exceed the Maximum Rate. In such event, any Prime Rate Loan shall be converted into a Libor Loan. 
 1.3
Computation of Interest. Interest on all Loans shall be calculated on the basis of a 360-day year for the actual days elapsed. Any change in the interest rate on the Note resulting from a change in the Prime Rate or the LIBOR Rate shall
become effective as of each Interest Rate Change Date. 
 1.4 Borrowing Procedure. The Borrower shall give Advance Notice to the Bank
prior to the proposed borrowing date. Such notice shall specify (i) the amount to be borrowed, (ii) the borrowing date (which shall be a Business Day), and (iii) whether the Loans are to be Libor Loans, Prime Loans or a combination
thereof (in which case the portions shall be specified in such notice). 
 1.5 Continuation Options. Except as otherwise provided in
Section 1.9, if applicable: 
 (a) On each Interest Rate Change Date, the Borrower may elect to continue all or any part of any Libor
Loan as a Libor Loan and/or Prime Loan as a Prime Loan beyond the expiration of the then current Interest Rate Change Date relating thereto by giving Advance Notice to the Bank of such election, specifying the Libor Loan, the Prime Loan, or the
respective portion thereof to be continued. In the absence of such a timely and proper election, the Borrower shall be deemed to have elected to convert each Prime Loan to a Libor Loan, and to continue each Libor Loan for another Interest Period.

 (b) If no Default shall have occurred and be continuing, each Libor Loan and Prime Loan may be continued as provided in this Section. If a
Default shall have occurred and be continuing, the provisions of subsection 1.2(d) shall control as to the interest rate on all Loans. 
 1.6
Conversion Options. Except as otherwise provided in Section 1.9, if applicable: 
 (a) The Borrower may elect to convert Libor
Loans, or a portion thereof, on the last day prior to the next Interest Rate Change Date relating thereto to Prime Loans by giving Advance Notice to the Bank of such election. In the absence of such timely and proper election, Borrower shall be
deemed to have elected to continue the Libor Loan as a Libor Loan. 
 (b) The Borrower may elect to convert Prime Loans, or a portion
thereof, to Libor Loans on the last day prior to the Interest Rate Change Date by giving Advance Notice to the Bank of such election. In the absence of such timely and proper election, Borrower shall be deemed to have elected to convert the Prime
Loans into a Libor Loan. 

 (c) All or any part of outstanding Loans may be converted as provided herein, provided that any
conversion of any such Loan into a Libor Loan or Prime Loan shall be in the minimum amount of One Million Dollars ($1,000,000.00). 
 (d) If
no Default shall have occurred and be continuing, each Loan may be converted as provided in this Section. If a Default shall have occurred and be continuing, the provisions of subsection 1.2(d) shall control as to the interest rate on all Loans.

 1.7 Optional Prepayments. The Borrower may, at its option, as to any Loan at any time and from time to time, prepay the Loan, in
whole or in part; provided, however, that, if the Borrower has entered into a Swap Agreement as to all or part of the Loan, any full or partial prepayments of principal amounts may require termination or adjustment of the Swap Agreement, and may
result in a payment due from the Borrower per the terms and conditions of the Swap Agreement. Such notice shall specify the date and amount of prepayment and the Loan or Loans to which such prepayment is to be applicable and, in absence of such
designation, the amount of such payment or prepayments shall be applied first to prepay any Prime Loans outstanding and next to prepay any Libor Loans. 
 1.8 Mandatory Prepayments. If any mandatory payments or prepayments are made pursuant to the terms of the Agreement or the Note, the amount of such payment or prepayments shall be applied first to prepay any
Prime Loans outstanding and next to prepay any Libor Loans outstanding. 
 1.9 Swap Agreement. If the Borrower has entered into a
Swap Agreement with the Bank on any portion of the Loan, Borrower shall maintain that portion of the Loan as a Libor Loan for the term of the Swap Agreement, but subject to the provisions of Section 1(d) hereof. 
 PART 2: DEFINITIONS 
 2.1 Defined Terms. As
used in this Addendum, the following terms have the following meanings: 
 “Advance Notice” shall mean
written or telegraphic notice (which in each case shall be irrevocable except as otherwise provided in Section 2.3) from the Borrower to be received by the Bank by the two (2) Business Days in advance of any borrowing, conversion,
continuation or prepayment of any Loan pursuant to this Addendum. 
 “Agreement” shall mean the Loan
Agreement between the Bank and the Borrower referred to in the opening paragraph of this Addendum. 
 “Default” shall mean an Event of Default under the Loan Agreement. 
 “Default
Rate” means the lesser of (a) the Maximum Rate or (b)(i) the LIBOR Rate plus (ii) four and nine-tenths percent (4.9%). 
 “Libor Loans” shall mean Loans under the Agreement (and this Addendum) at such time as they are made or maintained at an interest rate based on the LIBOR Rate. 
 “Interest Rate Change Date” shall mean, with respect to any Loan, the date hereof and the first (1st) day of each calendar month hereafter. 

 “LIBOR Rate” shall mean the London Interbank Offered Rate of interest
for an interest period of one (1) month, which appears on Bloomberg page BBAM under the column heading “USD” (the “Index”) on the day that is two (2) London Business Days preceding each Interest Rate Change Date (the
“Reset Date”). If the LIBOR Rate as defined above is not available or is not published for any Reset Date, then Bank shall, at its sole discretion, choose a substitute source for the LIBOR Rate, which LIBOR Rate shall become effective on
the next Interest Rate Change Date. “London Business Day” shall mean any day on which commercial banks in London, England are open for general business. The LIBOR Rate is not necessarily the lowest rate charged by Bank on its loans. If the
LIBOR Rate from Blomberg page becomes unavailable during the term of this loan, Bank may designate a substitute index after notice to Borrower to determine the LIBOR Rate. 
 “Prime Rate” shall mean that variable commercial base rate of interest per annum established by Bank from time to time as
its “prime rate” or “base rate,” however denominated, for loans in the United States. Such rate is set by Bank as a general reference rate of interest, taking into account such factors as Bank may deem appropriate, it being
understood that many of Bank’s commercial or other loans are priced in relation to such rate, that it is not necessarily the lowest or best rate actually charged to any customer and that Bank may make various commercial or other loans at rates
of interest having no relationship to such rate. 
 “Prime Loans” shall mean Loans under the Agreement (and
this Addendum) at such time as they are made or maintained at an interest rate based upon the Prime Rate. 
 “Swap
Agreement” shall mean an interest rate management contract with Bank on behalf of the Borrower, which shall include, but are not limited to, interest rate swap transactions, basis swaps, forward rate transactions, commodity swaps, commodity
options, equity or equity index swaps, equity or equity index options, bond options, interest rate options, foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate
swap transactions, currency options or any other similar transaction (including any option with respect to any of these transactions). 
 All
other capitalized terms as used in this Addendum shall have the meanings as set forth in the Agreement. 
 PART 3: MISCELLANEOUS 
 3.1 Controlling Document. In the event of any conduct between the provisions of this Addendum and the provisions of the Agreement, the provisions
of this Addendum shall control. 
 3.2 Governing Law. This Addendum shall be governed and construed according to the statutes and
laws of the State of Tennessee from time to time in effect, except to the extent that Section 85 of Title 12 of the United States Code (or other applicable federal statute) may permit the charging of a higher rate of interest than applicable
state law, in which event such applicable federal statute, as amended and supplemented from time to time, shall govern and control the maximum rate of interest permitted to be charged hereunder; it being intended that, as to the maximum rate of
interest which may be charged, received, and collected hereunder, those 

 applicable statutes and laws, whether state or federal, from time to time in effect, which permit the charging of a
higher rate of interest, shall govern and control; provided, always, however, that in no event and under no circumstances shall the Bank be liable for the payment of interest in excess of the maximum effective rate permitted by such applicable law,
from time to time in effect. 
  

			
	 UNIVERSAL TRUCKLOAD SERVICES, INC.,
 a Michigan corporation

		
	By:	 	 /s/ Robert E. Sigler

	Title:	 	CFO/VP
		
		 	BORROWER
	
	FIRST TENNESSEE BANK NATIONAL ASSOCIATION
		
	By:	 	 /s/ Gavin Turner

	Title:	 	Loan Officer
		
		 	BANK

 REVOLVING LOAN PROMISSORY NOTE 
  

			
	 $20,000,000.00
	  	Memphis, Tennessee
		  	November 28, 2006

 ON May 31, 2008 (the “Termination Date”), the undersigned, UNIVERSAL TRUCKLOAD
SERVICES, INC., a Michigan corporation (“Maker”), promises to pay to the order of FIRST TENNESSEE BANK NATIONAL ASSOCIATION, a national banking association having its principal place of business in Memphis, Tennessee
(“Bank”), the principal sum of TWENTY MILLION DOLLARS ($20,000,000.00) or so much thereof as has been disbursed and unpaid, together with interest from date until paid, upon disbursed and unpaid principal balances, at the rate hereinafter
specified, said interest being payable monthly on the first (1st) day of each month hereafter, commencing on
December 1, 2006, with the final installment of interest being due and payable concurrently on the same date that the principal balance is due hereunder. 
 The “Termination Date” may be extended one or more times pursuant to the provisions of that certain Loan Agreement between Maker and Bank dated of even date herewith (as same may be modified or amended, the
“Loan Agreement”), and if so extended, such extended date shall thereupon constitute the Termination Date. 
 Subject to the
limitations hereinafter set forth, the advances on the disbursed and unpaid principal balances of the indebtedness hereby evidenced shall bear interest prior to maturity at the variable rate or rates for Prime Loans or Libor Loans in accordance with
the terms as set forth in the Loan Agreement. All capitalized terms not herein defined shall have the meanings as set forth in the Loan Agreement. This Note is issued pursuant to that the Loan Agreement to which reference is hereby made. 

Notwithstanding the foregoing, upon the occurrence of an Event of Default (as defined in the Loan Agreement), the Bank, at its option, may charge, and
the Maker agrees to pay, interest on disbursed and unpaid principal balances at the default rate (the “Default Rate”) equal to a rate per annum equal to the lesser of (a) the Maximum Rate or (b) (i) the Libor Rate plus
(ii) four and nine-tenths percent (4.9%). 
 Notwithstanding any other provisions herein, if any Change in Law (as hereinafter defined)
shall make it unlawful for the Bank to make or maintain a Libor Loan as contemplated by this Note and the Loan Agreement, the principal outstanding hereunder shall, if required by law and if the Bank so requests, be converted on the date required to
make the loan evidenced by this Note legal to a loan accruing interest at a rate per annum equal to the lesser of (a) the Maximum Rate or (b) the Prime Rate established from time to time by the Bank minus one and one-quarter percent
(1.25%). Each change in the Prime Rate shall become effective, without notice to the undersigned, on the same date that the Prime Rate changes. The undersigned hereby agrees promptly to pay the Bank, upon demand, any costs incurred by the Bank in
making any conversion in accordance with this paragraph, including any interest or fees payable by the Bank to lenders of funds obtained by it in order to maintain its Libor Loans. 

 “Change in Law” shall mean the adoption of any law, rule, regulation, policy, guideline or
directive (whether or not having the force of law) or any change therein or in the interpretation or application thereof, in all cases by any Governmental Authority having jurisdiction over the Bank, in each case after the date hereof. 

“Governmental Authority” shall mean any nation or government, any state or other political subdivision thereof and any entity exercising
regulatory functions of or pertaining to government. 
 The undersigned acknowledges that the Prime Rate is one of several interest rate
indices employed by the Bank and that the Bank has made, and may hereafter make, loans bearing interest at rates which are higher or lower than the Prime Rate. 
 In the event that the foregoing provisions should be construed by a court of competent jurisdiction not to constitute a valid, enforceable designation of a rate of interest or method of determining same, the
indebtedness hereby evidenced shall bear interest at a rate per annum equal to the Prime Rate from time to time in effect minus one and one quarter percent (1.25%). 
 Any amounts not paid when due hereunder (whether by acceleration or otherwise) shall bear interest after maturity at the Default Rate. 
 This Note is unsecured. 
 This Note is payable at the offices of Bank, 165 Madison Avenue, Memphis,
Tennessee, 38103, or at such other place as the holder may designate in writing, in lawful money of the United States of America, which shall be legal tender in payment of all debts and dues, public and private, at the time of payment. 

Upon the Termination Date, or, at the option of the Bank upon an Event of Default (as that term is defined in the Loan Agreement) the entire unpaid
balance of the indebtedness hereby evidenced, together with all interest then accrued, shall at once become due and payable for all purposes. 
 If this Note is placed in the hands of an attorney for collection, by suit or otherwise, or to protect the security for its payment, or to enforce its collection, or to represent the rights of the Bank in connection with any loan
documentation executed in connection herewith, or to defend successfully against any claim, cause of action or suit brought by the Maker against the Bank, the Maker shall pay on demand all costs of collection and litigation (including court costs),
together with a reasonable attorney’s fee on a time and charges basis. 
 The Maker hereof waives protest, demand, presentment and
notice of dishonor, and agrees that this Note may be extended, in whole or in part, without limit as to the number of such extensions, or the period or periods thereof, and without notice to it and without affecting its liability thereon, except for
such notices and/or demands as may be required under the Loan Agreement. 

 It is the intention of the Bank and the Maker to comply strictly with all applicable usury laws; and,
accordingly, in no event and upon no contingency shall the holder hereof ever be entitled to receive, collect, or apply as interest any interest, fees, charges, or other payments equivalent to interest, in excess of the maximum rate which the Bank
may lawfully charge under applicable statutes and laws from time to time in effect; and, in the event that the holder hereof ever receives, collects, or applies as interest, any such excess, such amount which, but for this provision, would be
excessive interest, shall be applied to the reduction of the principal amount of the indebtedness evidenced hereby; and, if the principal amount of the indebtedness evidenced hereby, and all lawful interest thereon, is paid in full, any remaining
excess shall forthwith be paid to the Maker, or other party lawfully entitled thereto. All interest paid or agreed to be paid by the Maker shall, to the maximum extent permitted under applicable law, be amortized, pro rated, allocated and spread
throughout the full period until payment in full of the principal so that the interest hereon for such full period shall not exceed the maximum amount permitted by applicable law. Any provision hereof, or of any other agreement between the Bank and
the Maker, that operates to bind, obligate, or compel the Maker to pay interest in excess of such maximum lawful contract rate shall be construed to require the payment of the maximum rate only. The provisions of this paragraph shall be given
precedence over any other provision contained herein or in any other agreement between the Bank and the Maker that is in conflict with the provisions of this paragraph. 
 This Note shall be governed and construed according to the statutes and laws of the State of Tennessee from time to time in effect, except to the extent that Section 85 of Title 12 of the United States Code (or
other applicable federal statute) may permit the charging of a higher rate of interest than applicable state law, in which event such applicable federal statute, as amended and supplemented from time to time, shall govern and control the maximum
rate of interest permitted to be charged hereunder; it being intended that, as to the maximum rate of interest which may be charged, received, and collected hereunder, those applicable statutes and laws, whether state or federal, from time to time
in effect, which permit the charging of a higher rate of interest, shall govern and control; provided, always, however, that in no event and under no circumstances shall the Maker be liable for the payment of interest in excess of the maximum
effective rate permitted by such applicable law, from time to time in effect. 
  

			
	 UNIVERSAL TRUCKLOAD SERVICES, INC.,
 a Michigan corporation

		
	By:	 	 /s/ Robert E. Sigler

	Title:	 	CFO/VP
		
		 	MAKER

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]