Document:

Employment Agreement

 Exhibit 10.6 
  
 Extension Agreement 
  
 This Extension Agreement is made between William W. Cimino (“Cimino”) and Sound Surgical Technologies LLC, a Colorado limited liability company (the
“Company”) as of the 1st day of September 2002. 
  
 Cimino and the Company are parties to that Employment Agreement effective as of August 10,
1998 (the “Employment Agreement”) and to that Agreement dated August 10, 1998 (the “Agreement”), also relating to Cimino’s employment by the Company and certain obligations of Cimino and the Company in connection with such
employment. 
  
 Cimino and the Company desire to extend the expiration date of
both the Employment Agreement and the Agreement from August 9, 2003 to December 31, 2006, and to recognize certain changes that have occurred and are to occur in the terms of Cimino’s employment by the Company. 
  
 Now, therefore, in consideration of the mutual agreements below and other good and valuable
consideration the receipt and sufficiency of which is acknowledged by both parties, Cimino and the Company agree as follows: 
  

	 	1.	Employment Agreement. 

  

	 	a.	Section 1 of the Employment Agreement is amended (1) by deleting “August 9, 2002” and inserting “December 31, 2006”, thereby extending the ending date of the
Employment Agreement to December 31, 2006, and (2) by inserting after “Schedule1” the words “as amended from time to time”. 

  

	 	b.	Section 2 of the Employment Agreement is amended by deleting “President and Chief Technical Officer” and inserting “Chairman”, thereby providing that Cimino will
serve as Chairman of the Company. 

  

	 	c.	Section 3 of the Employment Agreement is amended by deleting “$7,672.00” and inserting “at least $11,250”, thereby increasing Cimino’s compensation to a
minimum of $11,250 per month. 

  

	 	2.	Agreement. 

  

	 	a.	Section 2 of the Agreement is amended delete “Seven Thousand Six Hundred Seventy Two Dollars ($7,672.00)” and inserting “Eleven Thousand Two Hundred Fifty Dollars
($11,250)”, thereby increasing Cimino’s compensation to a minimum of $11,250 per month. 

  

	 	b.	Section 3. A of the Agreement is amended to delete “, Chair of the Management Committee, and President” and insert “and Chair of the Management Committee”,
thereby acknowledging Cimino’s position with the Company as a Member, a Manager, and Chair of the Management Committee. 

  

	 	c.	Section 4 of the Agreement is amended by deleting “August 9, 2003” and inserting “December 31, 2006”, thereby extending the term of the Agreement through
December 31, 2006. 

  

	 	3.	General. Cimino and the Company expressly reaffirm each and every provision of the Employment Agreement and the Agreement, whether or not amended by this Extension Agreement,
as of the date of this Extension Agreement, and agree and acknowledge the each will obtain significant benefit from execution and delivery of this Extension Agreement. 

  
 In witness whereof, Cimino has executed and delivered this Extension Agreement, and the Company has cause the execution and delivery of this
Extension Agreement by its Manager duly authorized for such purpose, as of the date first written above. 
  

					
	 	    	Sound Surgical Technologies LLC
			
	 / William W. Cimino /

	    	By	 	 / Donald B. Wingerter /

	William W. Cimino, Ph.D.	    	 	 	Donald B. Wingerter, Manager/CEO

  

 Agreement 
  

This Agreement is made this 10th day of August 1998 by and between Sound Surgical Technologies LLC (“SST”), a Colorado limited liability company having its
registered office at 1390 Green Willow Lane, Greenwood Village, CO 80121, and William W. Cimino (“Cimino”), residing at 578 West Sagebrush Court, Louisville, CO 80027. 
  
 The purpose of SST is to design and develop an ultrasonic platform capable of powering a variety of ultrasonic instruments, each designed
for a specific surgical procedure, and initially, an invasive ultrasound-assisted lipoplasty system utilizing an ultrasonic vibratory probe for fatty tissue fragmentation and a separate suction system for removal of the fragmented tissue. SST
desires to retain the services of an individual with sufficient training, experience and expertise in the field of the design, development, clinical trials, and regulatory approval of ultrasound medical devices to achieve the purpose of SST.

  
 Cimino represents that he is qualified by education, training, knowledge and
experience to achieve the purpose of SST. 
  
 Therefore, in consideration of the
foregoing and of the mutual agreements below, SST and Cimino agree as follows: 
  

	1.	Cimino agrees: 

  
 A. He will become an employee of SST for a monthly salary of Seven Thousand Six Hundred Seventy Two Dollars ($7,672.00) pursuant an employment agreement
in the form attached to this Agreement as Schedule 1 (the “Employment Agreement”); 
  
 B. As an employee of and for the exclusive benefit of SST, he will use his best efforts to design, develop prototypes of, obtain patent rights on, arrange clinical trials of, obtain U.S. Food and Drug Administration
approval for, and bring to commercial production, an ultrasonic platform capable of powering a variety of ultrasonic instruments, each designed for a specific surgical procedure, and initially, an invasive ultrasound-assisted lipoplasty system
utilizing an ultrasonic vibratory probe for fatty tissue fragmentation and a separate suction system for removal of the fragmented tissue. Additional ultrasonic instruments which shall be included in the foregoing efforts include, without
limitation, (1) an external, non-invasive ultrasound-assisted lipoplasty system utilizing ultrasonic energy applied through the skin to disrupt fat cells; (2) a system for catheter-based ultrasonic fragmentation of kidney stones; and (3) an
ultrasound tissue cutting device for use in cardiac surgery where pace makers are present. 
  

 1 

 C. Any and all inventions, including without limitation any new contributions, improvements, or
discoveries, whether patentable or unpatentable, of any medical device or process in any way involving, supporting, or relating to the use of ultrasonic waves, which is made, conceived, or first actually or constructively reduced to practice by
Cimino during the term of this Agreement, whether or not Cimino is employed by SST throughout the term of this Agreement, shall belong to SST, and Cimino shall promptly disclose each such invention to SST. Cimino shall execute an assignment to SST,
or to another designated by SST, of his entire right, title and interest in and to each such invention, and in and to all patent applications for such invention, in and to all priority rights as acquired under the International Convention on the
Protection of Industrial Property by the filing of any such application, and in and to all patents that may be granted on any such invention throughout the world. Cimino agrees to sign all patent applications, declarations, and other lawful papers
and, at SST ̈s expense, to assist SST, its successors, assignees, and others designated by it to receive an assignment as provided above in every lawful way to obtain and sustain such patents as and when requested by SST. 
  

	2.	SST agrees to employ Cimino for a monthly salary of Seven Thousand Six Hundred Seventy Two Dollars ($7,672.00) pursuant to the Employment Agreement, and to provide Cimino, within
the financial capabilities of SST, such equipment and other technical and financial resources as Cimino reasonably may require to carry out his obligations under Subsection 1.B., above. 

  

	3.	Cimino acknowledges, understands, and agrees with SST and for the express benefit of future investors in SST during the term of this Agreement that: 

  

	 	A.	he is a Member, a Manager, Chair of the Management Committee, and President of SST and owns of record a majority of the membership interests in SST and, thus, will benefit
significantly from performance of his obligations under this Agreement; 

  

	 	B.	the agreements by him in this Agreement and in the Employment Agreement are essential to attract to SST the additional investment necessary to achieve the purpose of SST and that
all additional investors in SST will rely to a material degree on such agreements and their validity in determining to make investments in SST; and 

  

	 	C.	the agreements by him in Section 1, and in particular in Subsection 1.C., and the agreements by him in the Employment Agreement, and in particular Sections 6, 7, 8 and 15, are fair
and reasonable in substantive scope, time, and geographic scope and are and shall be valid and 

  

 2 

 enforceable against him, and in that regard, are given in the context of the functional equivalent of a
contract for the purchase and sale of a business to attract investment as set out in Subsection 2.B., above, and in the context of a contract for the protection of trade secrets, and that he is and executive and officer of SST. 
  

	3.	Cimino represents and warrants to SST and to and for the express benefit of future investors in SST during the term of this Agreement that he has had full opportunity to consult
with independent legal counsel of his choice regarding the meaning and effect of and his obligations under this Agreement and the Employment Agreement, that he fully understands the same, and that future investors in SST during the term of this
agreement are intended beneficiaries of this Agreement and the Employment Agreement and may rely on the validity of Cimino’s obligations under the same. 

  

	4.	The term of this Agreement shall commence on August 10, 1998 and shall continue through August 9, 2003. 

  

	5.	Notwithstanding any provisions in this Agreement to the contrary, in the event that the Company shall cease operating its business, then this Agreement shall terminate as of the
last day of the month in which the Company ceases operation, with the same force and effect as if such last day of the month originally was set as the termination date hereof, and with more particularity and not in limitation, the provisions of
Subsections 1.B and 1.C. and Section 2 shall end as of such date. A merger, acquisition or similar corporate restructuring under which the principal business activity of the Company is continued shall not be considered cessation of business of the
Company. 

  

	6.	This Agreement may not be assigned by either party without the prior written consent of the other. 

  

	7.	Each provision of this Agreement shall be considered separable and if for any reason any provision or provisions in this Agreement are determined to be invalid, unenforceable or
illegal under any existing or future law, it is the intention of the parties that any provision so determined be reformed to provide to the maximum extent valid, enforceable and legal the restrictions on and obligations of Cimino and the protection
of and benefit to SST contained in the original provision, and that such invalidity, unenforceability or illegality shall not impair the operation of or affect those portions of this Agreement which are valid, enforceable and legal.

  

	8.	This Agreement in all respects shall be governed by and construed under the laws of the State of Colorado (without regard to the conflicts of law provisions of such laws or
conflicts of law principles generally). 

  
 [The
next page consists only of the signature paragraphs and blocks.] 
  

 3 

 IN WITNESS WHEREOF, Cimino has executed and delivered this Agreement and SST has caused the execution and
delivery of this Agreement by its Manager duly authorized for such purpose this 10th day of August, 1998. 
  

					
	 	 	Sound Surgical Technologies LLC
			
	 / William W. Cimino /

	 	By	 	 / Edward J. Cohrs /

	William W. Cimino	 	 	 	Edward J. Cohrs, Manager

  

 4 

 Employment Agreement 
  
 This Employment Agreement is made between William W. Cimino (“Employee”) and Sound Surgical Technologies LLC, a
Colorado limited liability company (the “Company”). This Employment Agreement is effective as of August 10, 1998 (the “Effective Date”). 
  
 1. Term of Employment. The term of this Employment Agreement shall be for five years beginning on the Effective Date and ending August 9, 2003,
unless this Employment Agreement is terminated on an earlier date for cause as defined below in Section 5 of this Employment Agreement. 
  
 2. Duties of Employee. It is contemplated that, pursuant to this Employment Agreement, Employee will serve as President and Chief Technical Officer
of the Company. In such position, Employee will perform such duties as the Company may from time to time assign to him, and will work such hours as are necessary to perform the duties of that position. The Company will provide Employee with an
office, telephone, computer and other equipment reasonably necessary for Employee to perform his duties. The Company reserves the right to assign Employee other duties and another title, provided that, absent mutual agreement to the contrary, any
change in duties or title will not affect the compensation owing pursuant to this Employment Agreement. While employed by the Company, Employee will devote his productive time, care and attention to the business of the Company and agrees that he
will not directly or indirectly perform services of a business, commercial or professional nature for any other person or entity. Employee shall observe and comply with all lawful directions and instructions by and on the part of the Company’s
Management Committee, endeavor to promote the interests of the Company, and not at any time do anything which may cause or tend to be likely to cause any loss or damage to the Company in business, reputation or otherwise. 
  
 3. Compensation. For all services rendered by Employee to the Company,
the Company shall pay Employee $7,672.00 gross pay (wages) per month and shall provide him with the benefits set forth below. Employee will be paid on the Company’s regularly scheduled paydays, and appropriate amounts will be withheld from each
paycheck as required by law, pursuant to Employee’s consent, or pursuant to the Company’s payroll policies in effect from time to time. 
  
 4. Benefits. Employee will be eligible to participate in such employee benefit policies or programs (such as vacations, health insurance, and
holidays) under the same circumstances that those policies or programs are available to other employees of the Company. The Company reserves the right and complete discretion to modify or alter those policies or programs, and any such modifications
or alterations will be applicable to Employee as they apply to other employees. 
  

 1 

 5. Termination for Cause. During the term of this Employment Agreement the Company retains the
right to terminate Employee’s employment for cause. In the event Employee’s employment is terminated for cause, Employee will not be entitled to any further compensation or benefits pursuant to this Employment Agreement. 
  
 Employee and the Company agree and understand that it is not possible to
define all of the circumstances which may justify termination for cause under this Employment Agreement. Termination for cause may arise from such circumstances as: (1) the failure or refusal of Employee to perform the usual or customary duties of
his employment in a competent and professional manner after reasonable notice and opportunity to correct deficiencies (reasonable notice being written notice of deficiencies, and reasonable opportunity to correct being one opportunity of thirty (30)
days to correct specified deficiencies (recurring deficiencies shall not be subject to further opportunity to correct)), (2) conduct that is unethical, unprofessional, or improper under legal standards governing the Company, (3) willful failure to
follow express directions provided by the Management Committee of the Company (excluding directions to perform acts or omit to perform acts the performance of or omission to perform which would be illegal under applicable law), (4) physical
inability or other incapacity of Employee to perform the essential functions of his job, with or without accommodation, for a period of ninety consecutive calendar days, (5) willful breach of any statutory or common law duty of loyalty to the
Company, or (6) conviction of a felony or of any crime involving moral turpitude or dishonesty. 
  
 6. Employee’s Covenant Not to Compete. Employee agrees that, by virtue of the relationship of trust and confidence between Employee and
the Company, Employee has or will have certain information and knowledge of the business and operations of the Company that are confidential and proprietary in nature, including, without limitation, information about equipment, processes,
technology, customers and customer contracts. 
  
 A.
Consideration: 
  
 In consideration for the Covenant Not
to Compete contained in this Employment Agreement, Employee acknowledges that he has received the following consideration: 
  
 a) In return for the covenants set forth in this Employment Agreement, the Company has provided Employee with an extended term of employment (as expressed
in Section 1 of this Employment Agreement), a benefit of employment which Employee did not have until Employee made the covenants set forth in this Employment Agreement; 
  
 b) The Company and Employee anticipate that the Company will continue to provide Employee the opportunity to develop
knowledge about and skills in the business of the design, development and operation of an ultrasonic platform capable of powering a variety of ultrasonic instruments, each designed for a specific surgical procedure, as well as knowledge of actual
and potential customers, customer contacts and the economics of construction, operation and selling of the products to be offered by the Company. 
  
 Employee also acknowledges the provisions of that separate agreement between Employee and the Company dated the same date as this Agreement. 

 
 B. Scope of Temporal Restriction on Employee’s Ability to
Compete: 
  
 Employee agrees that Employee will not, during
the term of this Employment Agreement and any renewal or extension thereof from time, compete with the Company, as defined in Section 6.D, below, directly or indirectly, for himself or as an agent or employee of others. 
  

 2 

 C. Scope of Geographical Restriction on Employee’s Ability to Compete: 
  
 First, Employee acknowledges that this Employment Agreement does not
restrict Employee’s ability to find employment within any geographical area after the termination of Employee’s employment with the Company, provided that Employee is not employed by a competing business as defined below. Second, Employee
agrees that, during the term of this Employment Agreement, whether or not he is then employed by the Company, he will not compete with the Company in any state or territory of the United States of America. 
  
 D. Scope of Activities Constituting Competition with The Company,
Prohibited by This Employment Agreement: 
  
 Within the time
period specified in Section 6.B, and within the geographical area determined with reference to Section 6.C, Employee will not, by any means or for any cause, directly or indirectly, for himself or as an agent, representative or employee of others:
(i) engage in or attempt to engage in the business of, or (ii) be employed by, work for, or provide services or advice to another company, business, entity, or person engaged in or attempting to engage in (whether exclusively or only partially) the
business of design, development, testing, production, marketing or sale of an ultrasonic platform capable of powering ultrasonic instruments, or of ultrasonic instruments themselves, or of any component thereof, designed for medical use, or any
functionally similar business or enterprise that would be directly or indirectly in competition with any business of the Company. 
  
 Employee agrees that this provision defining the scope of activities constituting competition with the Company is narrow and reasonable for the following
reasons: (i) Employee is free to seek employment with other companies designing, developing, testing, producing, marketing or selling medical devices that do not directly or indirectly compete with any business of the Company; (ii) Employee is free
to seek employment with other companies in the fields of bioengineering, mechanical engineering, and aerospace engineering, fields in which Employee is qualified, that do not directly or indirectly compete with any business of the Company; and (iii)
the Company occupies a narrow and specialized segment of the medical device industry, and there are many other companies in that industry and in the bioengineering, mechanical engineering and aerospace engineering industries, that do not directly or
indirectly compete with any business of the Company. Thus, this restriction on Employee’s ability to compete does not prevent Employee from using and offering the skills that Employee possessed prior to joining the Company. 
  
 E. Agreement Not to Solicit or Recruit Other Employees of The Company.

  
 Within the time period specified in Section 6.B, whether or
not Employee then is employed by the Company, Employee further agrees to refrain from soliciting, recruiting, encouraging, or initiating contact with any of the Company’s employees in any way for the purpose of offering them employment, either
as an employee or as a consultant or adviser, with Employee, directly or indirectly, for himself or with or for others. Employee further agrees to refrain from authorizing, directing, or advising any third persons or entities to solicit, recruit,
encourage, or initiate contact with any of the Company’s employees in any way for the purpose of offering them employment, either as an employee or as a consultant or adviser, with Employee, directly or indirectly, for himself or with or for
others. 
  

 3 

 In the event that the provisions of Section 6 should ever be deemed to exceed the time, geographic or
occupational limitations permitted by the applicable laws, then the parties agree that such provisions shall be reformed to the maximum time, geographic or occupational limitations permitted by the applicable laws. 
  
 7. Covenant to Protect Trade Secrets and Confidential Information. It
is contemplated by the Company and Employee that Employee will acquire or develop confidential information and knowledge pertaining to the technology, equipment, processes and operations of the businesses of the Company, as well as confidential
knowledge and information pertaining to the Company’s contracts with customers, prices and methods of operations, including but not limited to economic pricing structure, identities of customers, and contract terms. As part of the consideration
for this Employment Agreement, Employee agrees to keep all of such knowledge and information confidential, and Employee agrees that during the term of this Employment Agreement, and any extension or renewal thereof from time to time, and after
termination thereof, Employee will not disclose to any other party, or use for himself, directly or indirectly, or for the benefit of others, any such knowledge or information so acquired or developed. Employee agrees that this Section 7 applies to
information and knowledge which the Company considers to be proprietary or valuable to its business and which it has not knowingly permitted to become generally part of the public domain or generally known in the industry in which the Company does
business, and that as such, the protection afforded to the Company contractually by this Section may exceed to the full extent permitted by applicable law the protection which otherwise might be afforded the Company in respect of such information or
knowledge under the Uniform Trade Secrets Act or other state legislation regarding the confidentiality of business or technical information. 
  
 8. Enforcement of Covenants. It is expressly understood and agreed by Employee that the covenants contained in Sections 6 and 7 of this Employment
Agreement represent a reasonable and necessary protection of the legitimate interests of the Company and that Employee’s failure to observe and comply with his covenants and agreements in Sections 6 and 7 will cause irreparable harm to the
Company. It is expressly understood and agreed by Employee that it is and will continue to be difficult to ascertain the nature, scope and extent of the harm resulting from breach of these covenants and that a remedy at law for such breach by
Employee will be inadequate. Accordingly, it is the intention of the parties that, in addition to any other rights and remedies which the Company may have in the event of any breach of Sections 6 and 7 of this Agreement, the Company shall be
entitled, and is irrevocably authorized by Employee, to demand and obtain specific performance, including without limitation all appropriate injunctive and other equitable relief against Employee, in order to enforce against Employee, or to prevent
any breach or any threatened breach by Employee of, the covenants and agreements contained in Sections 6 and 7 of this Employment Agreement. In the event of any action by the Company for injunctive or equitable relief as provided above, the losing
party in such action agrees to pay all costs and reasonable attorneys ̈ fees incurred by the prevailing party in connection with such action. 
  
 9. Cessation of Business. Notwithstanding any provisions in this Employment Agreement to the contrary, in the event that the Company shall cease
operating its business, then this Employment Agreement shall terminate as of the last day of the month in which the Company ceases operations, with the same force and effect as if such last day 
  

 4 

 of the month originally was set as the termination date hereof, and the provisions of paragraph 6 shall end as of such
date. A merger, acquisition or similar corporate restructuring under which the principal business activity of the Company is continued shall not be considered cessation of business of the Company. 
  
 10. Dispute Resolution. All disputes between Employee and the Company
arising in any way under or in respect of this Employment Agreement, except as provided in Section 8, if the same cannot be settled by mediation as provided below, shall be resolved by arbitration before a single arbitrator in accordance with the
arbitration rules of J*A*M*S/Endispute then in effect and applicable to employment disputes. Either party seeking resolution of a dispute under this Section may give notice to the other party and to J*A*M*S/Endispute in Denver, Colorado, demanding
mediation of the dispute. Each party shall cooperate in mediation. In the event the dispute is not settled within sixty days after demand for mediation, either party to this Agreement may submit a written demand for arbitration to the other party
and J*A*M*S/Endispute in Denver, Colorado. Costs of mediation and arbitration payable to or through J*A*M*S/Endispute shall be borne one-half by the party demanding mediation or arbitration, as the case may be, and one-half by the other party;
provided, that if the party other than the party demanding mediation or arbitration shall fail to pay such costs in a timely manner, such costs may be paid by the demanding party and if the matter shall go to arbitration, the arbitrator, at
the conclusion of the arbitration, shall enter against the party failing to pay such costs an order that such party repay such costs to the party initially paying them. All costs of counsel and all other costs of preparation for and participating in
mediation and arbitration shall be borne by the party incurring such costs. All proceedings shall take place in the Denver, Colorado metropolitan area in the English language. The arbitration award shall be final and binding and may be enforced in
any court of competent jurisdiction. 
  
 11. Waiver of Breach
of Agreement. If either party waives a breach of this Employment Agreement by the other party, that waiver will not operate or be construed as a waiver of any other or subsequent breaches. 
  
 12. Notice. Any notice given by either party under this Employment
Agreement shall be sufficient if in writing and either (I) hand delivered to the other party, or (ii) mailed, postage prepaid, certified return receipt requested, if to Employee, to Employee’s last address on the records of the Company, and if
to the Company, to the address of the Company given above in this Employment Agreement or such other address of which the Company may give Employee notice under this Employment Agreement or of which Employee shall have actual knowledge as being the
principal office of the Company. 
  
 13. Assignment. The
rights of the Company hereunder may, without the consent of Employee, be assigned by the Company to any parent, subsidiary, affiliate or successor of the Company. This Employment Agreement is not assignable by Employee. Any attempt by Employee to
assign this Employment Agreement, or any portion thereof, shall be deemed null and void and of no force and effect. 
  

 5 

 14. Severability. Any provision of this Employment Agreement prohibited by or unenforceable under
any applicable law of any jurisdiction shall as to such jurisdiction be deemed ineffective and deleted from this Employment Agreement without affecting any other provision of this Employment Agreement or the effectiveness of such provision in any
jurisdiction in which it is not prohibited or unenforceable. It is the desire of the parties hereto that this Employment Agreement be enforced to the maximum extent permitted by law, and should any provision contained herein be held unenforceable,
the parties hereby agree and consent that such provision shall be reformed to make it a valid and enforceable provision to the maximum extent permitted by applicable law. 
  
 15. Survival of Provisions. The provisions of Sections 7, 8, 9, and 11 through 18, inclusive, of this Employment
Agreement shall survive termination of this Employment Agreement and shall be enforceable by the Company after such termination, regardless of the circumstances of such termination. 
  
 16. Consultation With Counsel. Employee acknowledges and represents to Company that he has had full opportunity to
consult with independent legal counsel of his choice regarding the meaning and effect of and his obligations under this Employment Agreement and that he fully understands the same. 
  
 17. Choice of Law. This Employment Agreement shall be construed and governed by the laws of the State of Colorado.

  
 18. Entire Agreement and Amendment. This Employment
Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of Employee by the Company, except that agreement between the parties dated the same date as this Employment
Agreement. This Employment Agreement may be amended, waived or terminated only by an instrument in writing executed by both parties hereto. 
  
 In witness whereof, the Employee has executed and delivered this Employment Agreement and the Company has caused the execution and delivery of this Employment Agreement
by its Manager duly authorized for such purpose effective the Effective Date. 
  

					
	Employee	 	The Company
	 	 	Sound Surgical Technologies LLC
			
	 / William W. Cimino /

	 	By	 	 / Edward J. Cohrs /

	William W. Cimino	 	 	 	Edward J. Cohrs, Manager

  

 6Program Agreement

 Exhibit 10.7 
  
 Pages where confidential treatment has been requested are stamped 
 “Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission,” 
 and places where information has been redacted have been marked with (***). 
  
 Sound Surgical Technologies LLC 
  
 Science to Surgery® 
  

			
	Suite 100	  	Telephone 303-926-8608        
	357 So. McCaslin Blvd.	  	Facsimile 303-926-8615        
	Louisville, CO 80027-2932	  	E-mail sstmail@soundsurgical.com

  
 December 16, 2004

  

			
	 Partners Equity Capital Company
	  	 
	 Attention Lamont Melton
	  	By facsimile 267-960-4001
	 655 Business Center Drive
	  	 
	 Horsham, PA 19044
	  	 

  
 Re: Program Agreement
Dated April 1, 2004 
  
 Dear Lamont, 
  
 This will confirm that McKesson Medical-Surgical Inc. (“McKesson”) is an agent of
Sound Surgical Technologies LLC (“Sound Surgical”) for purposes of the Program Agreement between PECC and Sound Surgical dated April 1, 2004. Partners Equity Capital Company (“PECC” or “you”) is authorized to rely on
that agency until we notify you in writing to the contrary. 
  
 With respect to
processing Fee Per Procedure (“FPP”) Agreements under the Program Agreement, all FPP Agreements and acceptance documents will continue to be submitted to you by Sound Surgical. Those falling under the McKesson agency will have an
identification number beginning MCK-xxxxxxx. For those FPP Agreements, you will receive an invoice from McKesson and are authorized to wire payment for the FPP Agreement and related Equipment to McKesson at such financial institution and account as
we may from time to time notify to you in writing. All FPP Agreements carrying an identification number beginning MCK-xxxxxxx and related Equipment shall be subject to all of the terms and conditions of the Program Agreement except as specifically
modified by this letter agreement. 
  
 Sound Surgical will save, indemnify and
hold harmless PECC from and against any liability for payments made to McKesson in accordance with the instructions and procedures in this letter agreement. 
  

	
	 Sincerely,

	
	 / Douglas D. Foote /

	 Douglas D. Foote

	 Chief Financial Officer

  
 Agreed and accepted as of the
date first written above. 
 Partners Equity Capital Company 
  

			
	 By
	 	 / M.F. Babicki /

	 Title
	 	 EVP-Risk - Operations

 “Confidential Treatment Requested 
 and the Redacted Material has been 
 separately filed with the Commission.”

  
 PROGRAM AGREEMENT 
  
 This Program Agreement (“Agreement”) is entered into as of April 1,
2004, by and between Sound Surgical Technologies LLC, a Colorado limited liability corporation, having a business office located at 357 South McCaslin Blvd., Suite 100, Louisville CO 80027-2932 (“Vendor”) and Partners Equity Capital
Company LLC, having a lease processing center located at 655 Business Center Drive, Horsham, PA 19044 (“PECC”). 
  
 Recital of Facts. This Agreement is entered into in reference to the following facts: 
  
 a. Vendor is engaged in the retail sale of certain equipment and in
connection therewith, desires to offer its customers the opportunity to lease and rent such equipment (the “Equipment”) and desires to offer PECC the opportunity to enter into lease and rental agreements (the “Lease Agreements”)
with such customers (the “Lessees/Customers”) for the Equipment (the Lease Agreements together with any guaranties, financing statements, schedules, and any and all agreements, instruments and other documents entered into and executed in
connection therewith shall hereinafter be referred to, collectively, as “Contracts” and, individually, as a “Contract”); 
  
 b. PECC agrees at its sole discretion to enter into Contracts with Lessees/Customers, upon terms and conditions contained herein. 
  
 THEREFORE, in consideration of the mutual covenants and agreements contained
in this Agreement, and for other valuable consideration received by Vendor, and intending to be legally bound, the parties hereby agree as follows: 
  
 SECTION ONE – CONDITIONS OF AGREEMENT 
  
 As conditions precedent to the effectiveness of this Agreement, Vendor and PECC shall deliver the following documents in
form and substance satisfactory to each party: 
  
 a. Duplicate
originals of this Agreement duly executed by each party; 
  
 b. A
Secretary’s Certificate executed by the Secretary or Assistant Secretary of each party certifying that the party is authorized to enter into this Agreement and that that individual executing this Agreement on behalf of the party is authorized
to do so. 
  
 SECTION TWO – BLANKET ASSIGNMENT OF
LEASE AGREEMENTS 
  
 For each and every Contract
acquired by PECC from Vendor during the term of this Agreement, Vendor hereby assigns and transfers to PECC as of the date of funding (i) the Contracts, including the right to receive any and all sums payable pursuant to, or recoverable in
connection with such Contracts, including without limitation all rental payments, all insurance proceeds, condemnations, awards and all other monies payable or recoverable in the event of default by any Customer, and the right to take in
Vendor’s or PECC’s name any an all proceedings, legal, equitable or otherwise, Vendor might otherwise take, but for this Assignment; and (ii) all Vendor’s rights and remedies under the Contracts. Additionally, for each and every item
of Equipment acquired by PECC from Vendor during the term of this Agreement, Vendor hereby sells, transfers, and conveys its entire right, title and interest in the Equipment to PECC free and clear of any and all liens, claims and encumbrances.
Vendor shall assign all of its rights and none of its obligations in such Contracts to PECC pursuant to the terms and conditions provided herein. 

 “Confidential Treatment Requested 
 and the Redacted Material has been 
 separately filed with the Commission.”

  
 SECTION THREE – CONTRACT APPLICATION ORIGINATION

  
 3.1 Credit
Review. PECC requires complete credit and financial information on each prospective Lessee/Customer in order to complete its credit review. For each proposed Contract application, Vendor shall provide PECC with or assist
PECC in obtaining the following: 
  
 a. A full and complete
description of the Equipment; 
  
 b. The economic terms of the
proposed Contract; 
  
 c. A complete and legible copy of the
Contract application; 
  
 d. All pertinent details and other such
credit and financial data as PECC might require. 
  
 3.2
Documentation Fees. Vendor will pay to PECC a documentation/processing fee of $(***) for each contract accepted by PECC. Fee shall be deducted from Vendor invoice on transaction. 
  
 3.3 Contract Documentation 
  
 a. General 
  
 1. PECC shall be solely responsible for the review and approval of all
documents, including any amendment and supplements memorializing or otherwise relating to each Contract (collectively, the “Lease Documents”). 
  
 2. Each Equipment invoice must have an Equipment cost equal to or greater than $5,000.00 and the minimum monthly payment on any transaction must be
$50.00 or more. 
  
 3.4 Types of
Contracts. The parties hereto agree that the Contracts that may be offered by PECC to prospective Lessees/Customers shall constitute “finance leases” as such term is defined in §2A-103(1)(g) of the Uniform
Commercial Code in effect from time to time in the Commonwealth of Pennsylvania (“UCC”) and shall be fee per use agreements pursuant to which Lessees/ Customers agree to pay minimum and other usage fees as provided in the Contracts.

  
 SECTION FOUR – ACCEPTANCE OF CONTRACTS

  
 4.1 Conditions Precedent to
Accept a Contract. The obligation of PECC to accept any Contract hereunder shall be subject to the satisfaction of the following conditions precedent: 
  
 a. PECC’s receipt of all required credit information and all Lease Documents, including any UCC-1 Financing Statements,
duly executed by the Lessee/Customer as may be deemed necessary by PECC in its sole and absolute discretion; 
  
 b. PECC’s confirmation that the Lessee/Customer has accepted the Equipment; 
  
 c. PECC’s credit approval for the Lessee/Customer; and 
  
 d. Vendor shall have performed and complied in all material respects with all covenants, agreements, and conditions
contained in this Agreement, which are required to be performed or complied with by Vendor on or prior to the date PECC accepts the Contract. 

 “Confidential Treatment Requested 
 and the Redacted Material has been 
 separately filed with the Commission.”

  
 4.2 Funding 
  
 PECC shall purchase the Equipment from Vendor for a cash amount consisting
of two components: (a) an amount equal to the present value of the Base Fees due and payable over the term of the Contract using the discount rate agreed upon by Vendor and PECC at the time the Contract for the use of the Equipment is accepted by
PECC (the “Initial Funding”) and (b) an amount equal to the aggregate Supplemental Fees received during the term of the Contract. Initial Funding shall be made by wire transfer to Vendor’s bank account upon PECC’s acceptance of a
Contract. Payment of the Supplemental Fees shall be made pursuant to Section Six – Contract Servicing. 
  
 a. PECC may fund Vendor the Equipment cost up to one hundred percent (100%) of the full purchase price for the Equipment, plus Soft Costs (as defined
herein) up to an amount equal to twenty percent (20%) of the Equipment cost on all Contracts, less the amount of any down payment made by the Lessee/Customer directly to the Vendor. Soft Costs may include shipping and freight costs, service and/or
maintenance, supplies, installation, delivery and sales tax. 
  
 b. Vendor will provide PECC with an original invoice for the Equipment and the Soft Costs, and each invoice must itemize the Equipment (including serial numbers) and the Soft Costs, including the price of each item of Soft Costs and the
purchase price from each item of Equipment. 
  
 SECTION FIVE
– REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 5.1
Mutual Representations and Warranties. PECC and Vendor each represents and warrants to the other as follows: 
  

a. The execution and delivery of this Agreement and the performance by it of the transactions contemplated hereby have been duly authorized by all
necessary corporate action, and this Agreement constitutes a legal, valid and binding obligation enforceable in accordance with its terms; and 
  
 b. It has all governmental approvals, permits, certificates, inspections, consents and franchises necessary to conduct its respective business
substantially as now conducted and to own or finance and operate its properties as now owned, financed or operated by it, except where the failure to obtain any of the foregoing does not materially and adversely impair its ability to operate its
business or to perform its obligations under this Agreement. 
  
 5.2 Representations and Warranties of Vendor. Vendor represents and warrants to PECC as of the date each Contract is submitted for approval or assigned to PECC as follows: 
  
 a. Vendor is a duly organized and validly existing limited liability company
and has full power to enter into this Agreement and to carry out the transactions contemplated hereby and is in good standing in the state of its organization. 
  

b. To the best of Vendor’s knowledge, the Contract and all related documents, including any Guaranty, have been duly authorized, executed and
delivered. Vendor shall have no duty to make any inquiry or perform due diligence with respect to the authorization, execution, or delivery of a Contract or a Guaranty. There are no other agreements between Vendor and the Lessee/Customer or any
guarantor which will modify, amend or waive any terms or conditions of the Contract or Guaranty. The only expressed or implied warranties or representations made by Vendor or its agents to the Lessee/Customer are those contained in the
manufacturer’s standard product warranty or any maintenance agreement. 
  
 c. Vendor and its agents, and employees have not committed any fraudulent act or participated in any fraudulent act or activity in connection with the execution, delivery or assignment of the Contract or any Guaranty
or the performance of this Agreement. 

 “Confidential Treatment Requested 
 and the Redacted Material has been 
 separately filed with the Commission.”

  
 d. Ownership of the Equipment shall be vested in PECC upon
its initial funding to Vendor, free and clear of any and all liens and encumbrances whatsoever and such sale shall vest PECC with full, complete and unencumbered title to the Equipment, and unless otherwise set forth in the Contract, the Equipment
shall be new or functionally equivalent to new when it is delivered to the Lessee/Customer. 
  
 e. Vendor will perform such maintenance and service and provide such supplies and warranties as agreed to by Vendor and Lessee/Customer for the Equipment and/or as required by the Contract. 
  
 f. To the best of Vendor’s knowledge, all credit information concerning
the Lessee/Customer or Lessee’s guarantor, if any, given to Vendor and relative to PECC’s evaluation of such contract application (“Contract Application”), has been disclosed to PECC (including information of any fact or
circumstance which would constitute a default under a Contract). 
  
 g. All applicable sales, use or property taxes, which may apply to the value, sale or use of the Equipment other than those assessed or imposed at or after the time PECC acquires the Equipment, shall have been paid to the appropriate taxing
authority and Vendor will provide PECC with proof of such payment as promptly as possible, but in any event, within one hundred twenty (120) days of acquisition of the Equipment by PECC. 
  
 h. To the best of Vendor’s knowledge, the Lessee/Customer has not been or is not currently in default under the
Contract and there has been no event, which with the giving of notice or the passage of time, would constitute an event of default under the Contract. 
  
 i. Vendor has not received any payments, or other money from the Lessee/Customer or any guarantor of the Contract, which by agreement belongs to PECC
(collectively, the “Payments”) and will immediately remit such funds to PECC if any are received; all other Payments remain outstanding and unpaid. 
  
 j. To the best of Vendor’s knowledge, Vendor’s conduct in soliciting, arranging or consummating the Contract or in accepting any Guaranty has
not violated in any material respect any federal or state law, rule, or regulation which will result in the rescission of any Contract. 
  
 k. Vendor will not take any action or omit to take any action, which will cause the Contract or any related document, including any Guaranty, to become
invalid, cancelable, or unenforceable. 
  
 l. To the best of
Vendor’s knowledge, as of the date of PECC’s acceptance of a Contract for funding, the Contract and all related documents, including any related Guaranty, will be valid and enforceable. 
  
 5.3 Representations and Warranties of
PECC. PECC represents and warrants to Vendor that as of the date each Contract is accepted by PECC and thereafter as follows: 
  
 a. PECC is a duly organized and validly existing limited liability company and has full power to enter into this Agreement and to carry out the
transactions contemplated hereby, and is in good standing in the state of its organization. 
  
 b. PECC and its agents and employees have not committed and will not commit any fraudulent act and have not participated and will not participate in any fraudulent act or activity in connection with the execution and
performance of the Contract, any related Guaranty, or this Agreement. 

 “Confidential Treatment Requested 
 and the Redacted Material has been 
 separately filed with the Commission.”

  
 c. The conduct of PECC in processing any Contract
Application, including the granting or denial of credit and the servicing of the Contract, and any Guaranty whether in PECC’s name or the name of Vendor, has not violated and will not violate in any material respect any federal or state law,
rule or regulation. 
  
 d. PECC has not taken and will not take
any action or omit to take any action that will cause the Contract and all related documents, including any Guaranty, or the collection of Payments due thereunder, to become invalid, or unenforceable. 
  
 e. When PECC receives any funds that by this Agreement belong to Vendor, PECC
will immediately remit such funds to Vendor in accordance with Section 6.4. 
  
 f. PECC has and will conduct all of its activities relative to the Lessee/Customer, any guarantor, and the Contract and any Guaranty, including without limitation the collection of Payments due thereunder, reasonably,
fairly, and in good faith. 
  
 5.4 Affirmative Covenants
of Vendor. 
  
 a. From the date hereof until the date
on which all obligations of Lessees/Customers under all Contracts have been fully paid and otherwise discharged, Vendor shall deliver to PECC the following, which shall be prepared in accordance with generally accepted accounting principles and
practices, consistently applied: 
  
 1. As soon as available,
but no later than ninety (90) days after the close of each of the first three (3) quarters of each fiscal year, Vendor’s balance sheet as of the close of such quarter and Vendor’s statement of income and retained earnings and of changes in
financial position for such quarter and that portion of the fiscal year ending with such quarter, prepared on a consolidated basis and certified by a responsible officer of Vendor as being complete and correct and fairly representing Vendor’s
financial condition and results of operations; 
  
 2. As soon as
available, but no later than ninety (90) days after the close of each fiscal year, a complete copy of Vendor’s balance sheet as of the close of such year and Vendor’s statement of income and retained earnings and changes in financial
position for such year, prepared on a consolidated basis and reported upon by an accounting firm of recognized standing. 
  
 b. Vendor will promptly fulfill and perform all obligations, covenants, liabilities, warranties and duties, if any, on its part to be fulfilled and
performed in connection with a Contract and any other agreements or instruments executed by Vendor with respect to the installation, maintenance, or servicing by Vendor by the Equipment covered by a Contract. PECC or any subsequent assignee shall
have no obligation or liability under a Contract and shall not be obligated to perform any of Vendor’s obligations thereunder. If Vendor fails to perform any of its obligations under a Contract within a reasonable time after notice by PECC of
such failure, such obligations under a Contract may be performed by PECC or any subsequent assignee, however, without releasing Vendor therefrom. 
  
 c. For the term of any Contract, Vendor shall promptly advise PECC of any matter of which Vendor has knowledge that may be detrimental to a
Lessee’s/Customer’s financial condition. 
  
 d. So long
as this Agreement is in effect, Vendor will notify PECC of any change in the persons authorized to represent Vendor in the transactions contemplated hereby and in the event of any such change will provide PECC with updated evidence of authority and
specimen signatures for each individuals. 

 “Confidential Treatment Requested 
 and the Redacted Material has been 
 separately filed with the Commission.”

  
 e. On or before the fifteenth day of each month, Vendor
will advise PECC of the number of procedures performed during the preceding month for which fees are due and payable under each Contract. 
  
 SECTION SIX – CONTRACT SERVICING 
  

6.1 Servicing of Contracts. PECC shall provide general administrative services, including billing and
collecting all Payments in the private label name of Sound Surgical Technologies LLC fulfilling the obligations as Lessor or Owner under the Contracts, the enforcement of PECC’s rights under the Contracts, including any Guaranty, and/or this
Agreement and the taking of such other actions that may be necessary to protect PECC’s rights and interest in and to the Contracts including any Guaranty and/or Equipment. PECC shall invoice each Lessee/Customer monthly for all amounts due
under a Contract, including both Base Fees and Supplemental Fees, and will direct the Lessee/Customer to make payments to the post office box or lockbox established in the name of PECC. Vendor hereby grants to PECC a non-exclusive right, license and
privilege to use (“License”) the trademark and service marks (“Logos”) of Vendor solely in connection with servicing the program. This license will be limited to the right to use the Logos for approved Contracts and other
financing and ancillary documentation and any stationery and other documentation necessary, as determined by PECC in its discretion, to support the private label nature of the program. PECC’s manner of use of Logos shall be subject to
Vendor’s prior approval, which will not be withheld unreasonably. Upon the termination or expiration of this Agreement, the License will continue solely to permit PECC to bill, collect and enforce any outstanding transactions funded under this
Agreement. 
  
 6.2 Primary
Source. During the term of this Agreement, Vendor designates PECC as the primary source with a first right of refusal to provide the leasing services on any of Vendor’s prospective transactions and Vendor shall inform
all of its sales personnel that PECC has been designated as the primary source with a right of first refusal to provide the leasing services on any of Vendor’s prospective transactions. 
  
 6.3 Prepaid
Service/Maintenance. Vendor agrees to provide all required service and/or maintenance for the Equipment. 
  
 6.4 Disposition of Fees Received. PECC shall retain for its own account all Base Fees and Supplemental
Fees received with respect to a Contract during a quarter (a 3 month period as defined in the Contract) until it has received an aggregate amount equal to 3 times the monthly Base Fee (“PECC’s Portion”). PECC shall immediately remit
to Vendor all Supplemental Fees received in excess of PECC’s Portion. 
  
 6.5 Reporting. PECC agrees to provide to Vendor monthly reports of payments received on all Contracts and to notify Vendor promptly of any payment not made when due. Prior to
accelerating an account per the terms of the Contract, PECC will first notify Vendor of the payment status under the Contract and give Vendor 30 days to attempt collection of all amounts past due. After such 30 days, PECC may take such action as it
deems desirable, but agrees to keep Vendor informed of the progress of such action. 
  
 SECTION SEVEN – REPURCHASE OF CONTRACTS 
  
 7.1 Breach of Contracts. If Vendor has breached any of its representations, warranties and/or covenants contained in this Agreement and, as a result of such breach, a
Contract becomes in default, Vendor shall have thirty (30) days after receipt of notice from PECC to cure such breach. If Vendor fails in this regard, then Vendor shall repurchase from PECC such Contract, within three (3) business days of the
receipt of such a request from PECC, for an amount as follows: 
  
 a. An amount equal to the sum of the aggregate amount of all amounts presently due; all future unpaid Payments to be made under the Contract until the expiration of the initial term of the Contract, plus the estimated fair market value of
the Equipment at the end of the initial term of the Contract, with all accelerated Payments and the estimated fair market value of the Equipment discounted to the date of default at six percent (6%) per year. 

 “Confidential Treatment Requested 
 and the Redacted Material has been 
 separately filed with the Commission.”

  
 b. The amounts set forth in subparagraph a, above shall be
referred to as “Unrecovered Investment.” Upon receipt of the Unrecovered Investment, PECC or, if applicable, its assignee shall assign to Vendor all of its rights, title and interest of PECC in and to such Contract, any related documents,
including any Guaranty, the Equipment and the Payments, free of all liens, encumbrances or interest arising through PECC. 
  
 SECTION EIGHT – INDEMNIFICATION AND LIMITATION OF LIABILITY 
  
 8.1 Indemnification 
  
 a. Vendor agrees to indemnify and hold harmless PECC and its affiliates, subsidiaries, employees, directors, offices,
members, shareholders, and agents, and any participant from any and all losses, claims, liabilities, demands and expenses (“Losses”) whatsoever (including without limitation reasonable attorneys’ fees) arising in connection with or in
any way related to the breach of any of Vendor’s warranties and representations. This indemnification shall also apply to the assertion of any claims by the Lessee/Customer or any third party based upon damage to the environment allegedly
caused by the Equipment and/or the assertion of claims based upon a theory of product liability or strict liability and any claim asserted against PECC for United States patent, trademark or copyright infringement. 
  
 b. PECC agrees to indemnify and hold harmless Vendor and its current and
future successors, assigns, affiliates, subsidiaries, employees, directors, officers, members, shareholders, and agents, and any participants from any Losses sustained by Vendor in connection with or in any way related to any breach by PECC of its
representations or warranties. 
  
 8.2
Survival of Indemnity. All obligations under this section shall survive any expiration or termination of this Agreement and the termination of any Contract, but in no event longer than the applicable Statute
of Limitations. 
  
 8.3 Limited Power of
Attorney. Vendor hereby irrevocably appoints PECC as the Vendor’s attorney-in-fact with full authority in the place and stead of the Vendor and in the name of the Vendor, in PECC’s sole discretion, at any time to take
any action and to execute any instrument, agreement or document which PECC may deem necessary or advisable to accomplish the purposes of the Agreement, and any subsequent amendments or addenda thereto. Without limiting the generality of the
foregoing, PECC may: 
  
 a. Sign on Vendor’s behalf all
assigned Contracts and related documents assigned to PECC pursuant to the Agreement. 
  
 b. Exercise, do and perform any act, right, power duty or obligation whatsoever, including without limitation, filing UCC financing statements, that Vendor now has or may acquire the legal right, power or capacity to
exercise, do or perform in connection with the foregoing. 
  
 c.
Receive, endorse and collect any drafts or other instruments, documents and chattel paper in connection with assigned Contracts. This Power of Attorney shall not be construed to grant any rights or powers other than those set forth herein.

 “Confidential Treatment Requested 
 and the Redacted Material has been 
 separately filed with the Commission.”

  
 SECTION NINE – REMARKETING 

 
 9.1 Remarketing: 
  
 a. In the Event of Default. In the event of a default under the
Contract, Vendor agrees that for a period of one year from the date Vendor takes possession of the Equipment subject to that Contract, Vendor will use its commercially reasonable best efforts to re-lease the Equipment subject to the defaulted
Contract on behalf of PECC. Vendor shall have the right, but not the obligation, to sell the Equipment so long as PECC recovers its Unrecovered Investment from the net proceeds from such sale. For the purposes of this Section 9.1 only, the amount of
PECC’s Unrecovered Investment shall be determined by using the implicit interest rate used by PECC in determining the amount of the Initial Funding for the defaulted Contract. As to the Equipment not re-leased or sold after the passage of one
year from the date Vendor takes possession of the Equipment, PECC and Vendor will either mutually agree to continue to remarket the Equipment, or Vendor may exercise its repurchase option in Section 10, or the Equipment will be scrapped and/or
returned to PECC at PECC’s expense and discretion. 
  
 b.
At the End of a Contract Term. At the end of a Contract term, Vendor may exercise its repurchase option pursuant to Section 10, or PECC and Vendor may mutually agree that Vendor will take possession of the Equipment and use its commercially
reasonable best efforts to re-lease the Equipment on behalf of PECC. If PECC performs billing services for Contracts extended beyond the initial term, Vendor shall pay PECC a fee of $(***) per Contract per month. 
  
 c. Repair/Reconditioning. Vendor and PECC must mutually agree in
writing to repair or recondition any Equipment. PECC is responsible for all costs incurred to repair or recondition Equipment to be re-leased. Costs for repair or reconditions to be set at Vendor’s standard repair rates. Vendor will invoice
PECC for these costs, which PECC agrees to pay no later than Net 30 days from date of invoice. 
  
 d. Proceeds. 
  
 1.
Default. All remarketing proceeds from the re-leasing or sale of Equipment following default under a Contract will be allocated as follows: (i.) First, to Vendor for repair and reconditioning costs not yet paid; as well as a (***)% sales
commission fee; (ii). Second, to PECC to cover its Unrecorded Investment as defined in Section 9.1(a); and (iii) any remaining balance will be allocated (***)% to Vendor in consideration of its maintenance and support of the Equipment and (***)% to
PECC.. 
  
 2. End of Contract Term. All remarketing
proceeds from the re-leasing or sale of Equipment following the end of a Contract term will be allocated as follows: (i) First, to Vendor for repair and reconditioning costs not yet paid, as well as a (***)% sales commission fee, (ii) Second, all
remaining proceeds will be allocated (***)% to Vendor in consideration of its maintenance and support of the Equipment and (***)% to PECC. 
  
 e. Discontinuance of Support. If Vendor discontinues support of the VASER® product line and the support obligation is not assumed by a third party with the qualifications and ability to provide support at the same cost and level of service, Vendor will provide PECC with User’s
Guides for the Equipment. Such manuals and documentation provided to PECC will be solely for the support of remarketing the equipment and PECC will not make the information contained within available for resale. This does not transfer any rights of
trademark, intellectual property or ownership to PECC. 
  
 PECC, in its sole
discretion, shall have the final approval of the creditworthiness of any lessee and the terms of the financing or sale of the Equipment. Re-leases of Equipment will be subject to all of the terms and conditions of this Agreement except Section 4.2,
Section 7, and paragraph 9.1(a). 

 “Confidential Treatment Requested 
 and the Redacted Material has been 
 separately filed with the Commission.”

  
 SECTION TEN – PURCHASE OPTION

  
 At the expiration of the initial term of any Contract,
and after PECC has recovered its Unrecovered Investment under a defaulted Contract, whether or not the Lessee/Customer renews or extends the term of the Contract, Vendor shall have the right, but not the obligation, to repurchase the Equipment under
such Contract for an aggregate purchase price of $(***), which is the parties’ best estimate of its fair market value at such time. At the expiration of any re-lease, renewal or extension term of any Contract, Vendor shall have the right, but
not the obligation, to repurchase the Equipment under such re-lease or extended or renewed Contract for an aggregate purchase price of $(***), which is the parties’ best estimate of its fair market value at such time. In the event of any such
repurchase by Vendor, PECC shall, at the request of Vendor, assign to Vendor all of PECC’s right, title and interest in, to, and under the Contract, whether expired, renewed, extended, or the re-lease of the Equipment. 
  
 SECTION ELEVEN - CONFIDENTIALITY 
  
 11.1 Confidentiality 
  
 a. Procedures. All documents transmitted by one party to the other
during the existence of this Agreement and identified on their face by the transmitting party as confidential to the recipient shall not be disclosed to anyone other than employees or independent contractors of the recipient and/or any subsequent
assignee of PECC in the case of any confidential documents or information transmitted by Vendor to PECC. The recipient shall undertake the following procedures to preserve the confidentiality of Confidential Documents: 
  
 1. It shall limit the access of Confidential Documents to those who have
need to their access; and 
  
 2. It shall inform those who use
Confidential Documents that they shall maintain such documents as confidential. 
  
 b. Excluded Information. This Section 11.1 shall not apply to information contained in documents identified as confidential if such information is: 
  
 1. Known to the recipient, as shown by its written records, prior to the time of receipt of such information under this
Agreement; 
  
 2. Made publicly available by the transmitting
party; or 
  
 3. Made available to the recipient from a source
under no duty of confidentiality to the transmitting party. 
  
 SECTION TWELVE – GENERAL PROVISIONS 
  
 12.1 Independent Contractors. PECC and Vendor are separate entities, who have entered into this Agreement for independent business reasons. Neither PECC nor Vendor have acted, act, or shall
be deemed to have acted or act, as an agent for the other, except with respect to those acts of PECC specifically permitted to be taken and actually taken on behalf of Vendor pursuant to and in accordance with the terms hereunder. 
  
 12.2 Term and Termination.
This Agreement shall be deemed effective upon execution by PECC and Vendor. PECC may immediately terminate the Agreement in the event Vendor fails to comply with any of 

 “Confidential Treatment Requested 
 and the Redacted Material has been 
 separately filed with the Commission.”

  
 the representations, warranties and/or covenants set forth herein. The
term of this Agreement shall continue from such effective date for six (6) months and shall automatically renew for additional six month periods unless earlier terminated by Vendor or PECC. PECC or Vendor may terminate this Agreement at any time by
giving the other at least ninety (90) days written notice of such termination, whereupon the obligations of the parties with respect to Contracts not accepted prior to the expiration of such period shall terminate to the extent the same have not
been performed or are not required to have been performed prior to such termination. 
  
 12.3 Accounting. PECC and Vendor shall cooperate with each other by furnishing, subject to each party’s then-current internal policies, such records and
supporting material relating to Payments under this Agreement or Payments under the Contracts as may be reasonably requested in the event either party is audited by any taxing authority. 
  
 12.4 Assignability. Vendor may not assign, sell, or otherwise transfer any
of its rights or obligations without PECC’s prior written consent. Notwithstanding the foregoing, Vendor acknowledges and agrees that PECC may, without prior notice to Vendor: (a) assign any and all of its rights and obligations, including,
without limitations, any Contracts entered into pursuant hereto, under this Agreement to a third party (hereinafter the “Assignee”), and (b) release any and all information received by PECC pursuant to this Agreement, including without
limitation, any confidential documents or information that may have been received by PECC from Vendor, to such Assignee, provided that such Assignee assumes PECC’s obligations under this Agreement to maintain the confidentiality of such
documents. 
  
 12.5
Notices. Notices under this Agreement shall be deemed to have been given if mailed, postage prepared by U.S. First Class mail or by facsimile to the other party at the address stated below or such
other address as such party may have provided by written notice. 
  

			
	 If to PECC:
	 	 If to Vendor:

	 Partners Equity Capital Company LLC
	 	 Sound Surgical Technologies LLC

	 655 Business Center Drive
	 	 357 South McCaslin Blvd. Suite 100

	 Horsham, PA 19044
	 	 Louisville, CO 80027-2932

	 ATTN: EVP – Risk & Operations / MFB /
	 	 ATTN: Chief Financial Officer

	 Fax: 267-960-4001
	 	 Fax: 303-926-8615

	 	 	 

  
 12.6
Miscellaneous. Paragraph headings appearing in this Agreement are for convenience of reference only and shall not modify, define, expand or limit any of the terms or provisions hereof. The parties
agree that this Agreement has been executed and delivered in, and shall be construed in accordance with the laws of the Commonwealth of Pennsylvania. If, at any time, any provision of this Agreement shall be held by any court of competent
jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect, but the illegality or unenforceability of such provision shall have no effect upon and shall not impair the enforceability of any other provision of
this Agreement. This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and incorporates all representations made in connection with negotiation of the same. The terms hereof may not be amended,
supplemented, or modified orally, but only by written agreement duly executed by each of the parties hereto. This Agreement and any amendments hereto shall be binding on and inure to the benefit of the parties hereto and their respective permitted
successors and assigns. This Agreement may be executed by one or more parties in any number of separate counterparts each of which counterparts shall be an original, but all of which when together shall be deemed to constitute one and the same
instrument. 
  
 12.7 Jurisdiction and
Venue. The parties hereto agree to the exclusive jurisdiction of the federal or state courts of the Commonwealth of Pennsylvania in any and all disputes, actions, or proceedings arising hereunder. The proper venue for all
such disputes, actions, or proceedings shall be Philadelphia County, or any other county within the Commonwealth of Pennsylvania in which either Vendor or PECC (or any of PECC’s successors and assigns) or any of its property may be located.

 “Confidential Treatment Requested 
 and the Redacted Material has been 
 separately filed with the Commission.”

  
 12.8 Waiver of Jury
Trial. The parties hereto (by acceptance of this Agreement) mutually hereby knowingly, voluntarily, and intentionally waive the right to a trial by jury in respect to any claim based hereon, arising out of,
under or in connection with this Agreement or any other agreements or documents executed or contemplated to be executed in connection herewith, or any course of conduct, course of dealings, statements (whether verbal or written) or actions of any
party, including, without limitation, any course of conduct, course of dealings, statements or actions of PECC, or any of its successors and assigns, relating to the administration or enforcement of the Contracts (collectively, “Actions”
and singularly, an “Action”). Further, the parties hereto agree that in the event either party commences an Action, the losing party shall pay the costs and expenses, including, but not limited to, reasonable attorneys’ fees, incurred
the prevailing party in prosecuting or defending, as the case may be, such Action. 
  
 THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK 

 “Confidential Treatment Requested 
 and the Redacted Material has been 
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 IN WITNESS HEREOF, intending to be legally bound, the
parties hereto have caused their duly authorized representatives to execute this Vendor Program Agreement on the date first set forth above. 
  

							
	SOUND SURGICAL TECHNOLOGIES LLC	 	PARTNERS EQUITY CAPITAL COMPANY LLC
				
	 BY:
	 	 / Douglas D. Foote /

	 	 BY:
	 	 / M.F. Babicki /

	 PRINT NAME:
	 	 Douglas D. Foote
	 	 PRINT NAME:
	 	 Martin F. Babicki

	 TITLE:
	 	 Chief Financial Officer
	 	 TITLE:
	 	 EVP – Risk & Operations

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