Document:

Bank Loan Agreement

 Exhibit 10.12 
  
 PROMISSORY NOTE 
  

															
	Principal
$1,200,000.00	 	Loan Date
12-14-2004	 	Maturity
06-14-2005	 	Loan No
512583	 	Call /Coll	 	Account	 	Officer
456	 	Initials
	References in the shaded
area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.
Any item above containing “***” has been omitted due to text length
limitations.

  

							
	Borrower:	    	SOUND SURGICAL TECHNOLOGIES LLC	  	Lender:	    	COLORADO BUSINESS BANK
	 	    	 357 S. MCCASLIN BLVD.
 LOUISVILLE, CO
80026
	  	 	    	 WEST
 15710 WEST COLFAX AVENUE

GOLDEN, CO 80401

  

  

					
	Principal Amount:    $1,200,000.00	  	Initial Rate:    5.000%	  	Date of Note:    December 14, 2004

  
 PROMISE TO
PAY.    SOUND SURGICAL TECHNOLOGIES LLC (“Borrower”) promises to pay to COLORADO BUSINESS BANK (“Lender”), or order, in lawful money of the United States of America, the principal amount of One Million Two
Hundred Thousand & 00/100 Dollars ($1,200,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of
each advance. 
  
 PAYMENT.    Borrower will pay this
loan in one payment of all outstanding principal plus all accrued unpaid interest on June 14, 2005. In addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning January 14, 2005, with
all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges;
and then to any unpaid collection costs. The annual interest rate for this Note is computed on a 365/360 basis; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal balance,
multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender’s address shown above or at such other place as Lender may designate in writing. 
  
 VARIABLE INTEREST RATE.    The interest rate on this Note is
subject to change from time to time based on changes in an index which is the COLORADO BUSINESS BANK PRIME RATE (the “Index”). Lender will tell Borrower the current Index rate upon Borrower’s request. The interest rate change will not
occur more often than each DAY. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 5.000% per annum. The interest rate to be applied to the unpaid principal balance of this Note will be at a rate
equal to the Index, resulting in an initial rate of 5.000% per annum. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. 
  
 PREPAYMENT.    Borrower agrees that all loan fees and other
prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower may pay
without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower’s obligation to continue to make payments of accrued unpaid interest.
Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked “paid in full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender may accept it
without losing any of Lender’s rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that
indicates that the payment constitutes “payment in full” of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: COLORADO BUSINESS BANK, ATTN:
LOAN OPERATIONS, P.O. BOX 8779 DENVER, CO 80201. 
  
 LATE
CHARGE.    If a payment is 11 days or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled payment. 
  
 INTEREST AFTER DEFAULT.    Upon default, including failure to pay upon final maturity, Lender, at its option,
may, if permitted under applicable law, increase the variable interest rate on this Note to 5.000 percentage points over the Index. The interest rate will not exceed the maximum rate permitted by applicable law. 
  
 DEFAULT.    Each of the following shall constitute an event of
default (“Event of Default”) under this Note: 
  
 Payment Default.    Borrower fails to make any payment when due under this Note. 
  
 Other Defaults.    Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in
this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. 
  
 False Statements.    Any warranty, representation or statement made or furnished to Lender by
Borrower or on Borrower’s behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. 
  
 Death or Insolvency.    The dissolution of
Borrower (regardless of whether election to continue is made), any member withdraws from Borrower, or any other termination of Borrower’s existence as a going business or the death of any member, the insolvency of Borrower, the appointment of a
receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. 
  
 Creditor or Forfeiture
Proceedings.    Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any
collateral securing the loan. This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or
reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or
forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. 
  
 Events Affecting Guarantor.    Any of the preceding events occurs with respect to any guarantor, endorser, surety, or
accommodation party of any of the indebtedness of any guarantor, endorser, surety or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this
Note. 
  
 Adverse Change.    A
material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. 
  
 Insecurity.    Lender in good faith believes itself insecure. 
  
 LENDER’S RIGHTS.    Upon default, Lender may declare the entire unpaid principal balance on this Note and
all accrued unpaid interest immediately due, and then Borrower will pay that amount. 
  
 ATTORNEYS’ FEES; EXPENSES.    Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender the reasonable costs of such collection. This includes, subject
to any limits under applicable law, Lender’s attorneys’ fees and Lender’s legal expenses, whether or not there is a lawsuit, including without limitation attorneys’ fees and legal expenses for bankruptcy proceedings (including
efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. 
  
 JURY WAIVER.     Lender and Borrower hereby waive the right to any
jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. 
  
 GOVERNING LAW.    This Note will be governed by, construed and enforced in accordance with federal law and the laws of the State of Colorado. This
Note has been accepted by Lender in the State of Colorado. 
  
 DISHONORED
ITEM FEE.     Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on Borrower’s loan and the check or preauthorized charge with which Borrower pays is later dishonored. 
  
 RIGHT OF SETOFF.    To the extent permitted by applicable law,
Lender reserves a right of setoff in all Borrower’s accounts with Lender (whether checking savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the
indebtedness against any and all such accounts. 

					
	 	 	PROMISSORY NOTE	 	 
	Loan No:  512583	 	(Continued)	 	Page 2

  

  
 LINE OF CREDIT.    This Note evidences a revolving line of credit. Advances under this Note, as well as
directions for payment from Borrower’s accounts, may be requested orally or in writing by Borrower or by an authorized person. Lender may, but need not, require that all oral requests be confirmed in writing. Borrower agrees to be liable for
all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower’s accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on
this Note or by Lender’s internal records, including daily computer print-outs. Lender will have no obligation to advance funds under this Note if: (A) Borrower or any guarantor is in default under the terms of this Note or any agreement that
Borrower or any guarantor has with Lender, including any agreement made in connection with the signing of this Note; (B) Borrower or any guarantor ceases doing business or is insolvent; (C) any guarantor seeks, claims or otherwise attempts to limit,
modify or revoke such guarantor’s guarantee of this Note or any other loan with Lender; (D) Borrower has applied funds provided pursuant to this Note for purposes other than those authorized by Lender; or (E) Lender in good faith believes
itself insecure. 
  
 SUCCESSOR INTERESTS.    The terms
of this Note shall be binding upon Borrower, and upon Borrower’s heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. 
  
 NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING
AGENCIES.    Please notify us if we report any inaccurate information about your account(s) to a consumer reporting agency. Your written notice describing the specific inaccuracy(ies) should be sent to us at the following
address: COLORADO BUSINESS BANK ATTN: LOAN OPERATIONS P.O. BOX 8779 DENVER, CO 80201 
  
 GENERAL PROVISIONS.    Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the
extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor,
accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize
upon or perfect Lender’s security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of
or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. 
  
 PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS
OF THE NOTE. 
  
 BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS
PROMISSORY NOTE. 
  
 BORROWER: 
  
  
  
 SOUND SURGICAL TECHNOLOGIES LLC 
  

			
	By:	 	  

	 	 	 DONALD B. WINGERTER, JR., CEO of SOUND
 SURGICAL TECHNOLOGIES LLC

  
  
  

 LASER PRO Lending, Ver.
5.24.00.003  Copr. Harland Financial Solutions, Inc. 1997, 2004.    All Rights Reserved.    - CO  L:\CFI\LPL\D20.FC  TR-14434  PR-13 

 PROMISSORY NOTE 
  

															
	 Principal
 $1,200,000.00
	  	Loan Date
12-14-2004	  	Maturity
06-14-2005	  	Loan No
512583	  	Call / Coll	  	Account	  	Officer
456	  	Initials
	 References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.
 Any item above containing “***” has been omitted due to text length limitations.

  

							
	Borrower:	    	SOUND SURGICAL TECHNOLOGIES LLC	  	Lender:	    	COLORADO BUSINESS BANK WEST
	 	    	 357 S. MCCASLIN BLVD.
 LOUISVILLE, CO
80026
	  	 	    	 15710 WEST COLFAX AVENUE
 GOLDEN, CO
80401

  

					
	Principal Amount:    $1,200,000.00	 	Initial Rate:    5.000%	 	Date of Note:    December 14, 2004

  
 PROMISE TO
PAY.    SOUND SURGICAL TECHNOLOGIES LLC (“Borrower”) promises to pay to COLORADO BUSINESS BANK (“Lender”), or order, in lawful money of the United States of America, the principal amount of One Million Two
Hundred Thousand & 00/100 Dollars ($1,200,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of
each advance. 
  
 PAYMENT.    Borrower will pay this
loan in one payment of all outstanding principal plus all accrued unpaid interest on June 14, 2005. In addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning January 14, 2005, with
all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges;
and then to any unpaid collection costs. The annual interest rate for this Note is computed on a 365/360 basis; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal balance,
multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender’s address shown above or at such other place as Lender may designate in writing. 
  
 VARIABLE INTEREST RATE.    The interest rate on this Note is
subject to change from time to time based on changes in an index which is the COLORADO BUSINESS BANK PRIME RATE (the “Index”). Lender will tell Borrower the current Index rate upon Borrower’s request. The interest rate change will not
occur more often than each DAY. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 5.000% per annum. The interest rate to be applied to the unpaid principal balance of this Note will be at a rate
equal to the Index, resulting in an initial rate of 5.000% per annum. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. 
  
 PREPAYMENT.    Borrower agrees that all loan fees and other
prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower may pay
without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower’s obligation to continue to make payments of accrued unpaid interest.
Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked “paid in full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender may accept it
without losing any of Lender’s rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that
indicates that the payment constitutes “payment in full” of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: COLORADO BUSINESS BANK, ATTN:
LOAN OPERATIONS, P.O. BOX 8779 DENVER, CO 80201. 
  
 LATE
CHARGE.    If a payment is 11 days or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled payment. 
  
 INTEREST AFTER DEFAULT.    Upon default, including failure to pay upon final maturity, Lender, at its option,
may, if permitted under applicable law, increase the variable interest rate on this Note to 5.000 percentage points over the Index. The interest rate will not exceed the maximum rate permitted by applicable law. 
  
 DEFAULT.    Each of the following shall constitute an event of
default (“Event of Default”) under this Note: 
  
 Payment Default.    Borrower fails to make any payment when due under this Note. 
  
 Other Defaults.    Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in
this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. 
  
 False Statements.    Any warranty, representation or statement made or furnished to Lender by
Borrower or on Borrower’s behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. 
  
 Death or Insolvency.    The dissolution of
Borrower (regardless of whether election to continue is made), any member withdraws from Borrower, or any other termination of Borrower’s existence as a going business or the death of any member, the insolvency of Borrower, the appointment of a
receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. 
  
 Creditor or Forfeiture
Proceedings.    Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any
collateral securing the loan. This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or
reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or
forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. 
  
 Events Affecting Guarantor.    Any of the preceding events occurs with respect to any guarantor, endorser, surety, or
accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this
Note. 
  
 Adverse Change.    A
material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. 
  
 Insecurity.    Lender in good faith believes itself insecure. 
  
 LENDER’S RIGHTS.    Upon default, Lender may declare the entire unpaid principal balance on this Note and
all accrued unpaid interest immediately due, and then Borrower will pay that amount. 
  
 ATTORNEYS’ FEES; EXPENSES.    Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender the reasonable costs of such collection.
This includes, subject to any limits under applicable law, Lender’s attorneys’ fees and Lender’s legal expenses, whether or not there is a lawsuit, including without limitation attorneys’ fees and legal expenses for bankruptcy
proceedings including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. 
  
 JURY WAIVER.    Lender and Borrower hereby waive the right to any
jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. 
  
 GOVERNING LAW.    This Note will be governed by, construed and enforced in accordance with federal law and the laws of the State of Colorado. This
Note has been accepted by Lender in the State of Colorado. 
  
 DISHONORED
ITEM FEE.    Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on Borrower’s loan and the check or preauthorized charge with which Borrower pays is later dishonored. 
  
 RIGHT OF SETOFF.    To the extent permitted by applicable law,
Lender reserves a right of setoff in all Borrower’s accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the
indebtedness against any and all such accounts. 

					
	 	 	PROMISSORY NOTE	 	 
	Loan No:  512583	 	(Continued)	 	Page 2

  

  
 LINE OF CREDIT.    This Note evidences a revolving line of credit. Advances under this Note, as well as
directions for payment from Borrower’s accounts, may be requested orally or in writing by Borrower or by an authorized person. Lender may, but need not, require that all oral requests be confirmed in writing. Borrower agrees to be liable for
all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower’s accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on
this Note or by Lender’s internal records, including daily computer print-outs. Lender will have no obligation to advance funds under this Note if: (A) Borrower or any guarantor is in default under the terms of this Note or any agreement that
Borrower or any guarantor has with Lender, including any agreement made in connection with the signing of this Note; (B) Borrower or any guarantor ceases doing business or is insolvent; (C) any guarantor seeks, claims or otherwise attempts to limit,
modify or revoke such guarantor’s guarantee of this Note or any other loan with Lender; (D) Borrower has applied funds provided pursuant to this Note for purposes other than those authorized by Lender; or (E) Lender in good faith believes
itself insecure. 
  
 SUCCESSOR INTERESTS.    The terms
of this Note shall be binding upon Borrower, and upon Borrower’s heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. 
  
 NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING
AGENCIES.    Please notify us if we report any inaccurate information about your account(s) to a consumer reporting agency. Your written notice describing the specific inaccuracy(ies) should be sent to us at the following
address: COLORADO BUSINESS BANK ATTN: LOAN OPERATIONS P.O. BOX 8779 DENVER, CO 80201 
  
 GENERAL PROVISIONS.    Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the
extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor,
accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize
upon or perfect Lender’s security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of
or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. 
  
 PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS
OF THE NOTE. 
  
 BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS
PROMISSORY NOTE. 
  
 BORROWER: 
  
  
  
 SOUND SURGICAL TECHNOLOGIES LLC 
  

			
	By:	 	  

	 	 	 DONALD B. WINGERTER, JR., CEO of SOUND
 SURGICAL TECHNOLOGIES LLC

  
  
  

 LASER PRO Lending, Ver.
5.24.00.003  Copr. Harland Financial Solutions, Inc. 1997, 2004.    All Rights Reserved.    - CO  L:\CFI\LPL\D20.FC  TR.14434  PR-13 

 December 14, 2004 
  
 Sound Surgical Technologies LLC 
 Donald B. Wingerter, Jr., CEO 
 357 S. McCaslin Blvd., # 100 
 Louisville, CO. 80027-2932 
  
 Dear Mr. Wingerter: 
  
 Colorado Business Bank, N.A. is pleased to extend a $1,200,000 revolving line of credit to Sound Surgical Technologies LLC, subject to the
following terms and conditions: 
  

			
	BORROWER:	    	Sound Surgical Technologies LLC
		
	LENDER:	    	Colorado Business Bank, N.A. (also, the “Bank”).
		
	AMOUNT:	    	$1,200,000.
		
	TYPE:	    	Revolving Line of Credit
		
	PURPOSE:	    	To fund receivables and inventory
		
	RATE:	    	Colorado Business Bank Prime Rate
		
	COMMITMENT FEE:	    	$1,500
		
	MATURITY:	    	June 14, 2005
		
	REPAYMENT:	    	Interest payable monthly; principal payable at maturity.
		
	GUARANTOR:	    	Donald B. Wingerter, Jr.
		
	COLLATERAL:	    	$1,000,000 in Certificates of Deposit (See Addendum A), first lien on accounts, inventory

  
 Colorado Business Bank Prime Rate is
that interest rate which is used as an index to price loans individually, based upon but not limited to the compensating balances, the term, the purpose, the credit worthiness and the risk associated with any particular 
  

 1 

 credit. The rate established for any credit may be above or below the Prime/Base Rate depending upon the above
assessments. 
  
 In consideration of the Lender providing the above referenced
credit facilities, the Borrower agrees to abide by all terms, conditions, and covenants of this Letter Agreement and the terms, conditions and covenants of the final loan documents. 
  
 You may advance, repay and re-advance against the note, as allowed under the covenants below, up to the amount of the promissory note.

  

	 	1.	Borrower shall execute all documents required by the Bank and provide certifications as required by the Bank. 

  

	 	2.	Borrower shall be responsible for legal, filing, and other fees associated with closing the above loan. 

  

	 	3.	Borrower may repay at any time without penalty. 

  

	 	4.	Borrower shall allow access for an inspection of any and all records of the Company upon the reasonable request of the Lender. 

  

	 	5.	Borrower shall provide to Lender other such information and reports as Lender may reasonably request from time to time. 

  

	 	6.	Completion of ownership change (public offering) will require subject note being paid in full, payoff of note intended to the proceeds of public offering. At such time, subject note
would be paid to zero and cancelled. Donald Wingerter’s personal guarantee would then expire. Also provided is a continuation feature to allow the new public company (Sound Surgical Technologies Inc.) to have a line for same amount
($1,200,000), this loan initially fully secured by C.D. collateral, no personal guarantees. 

  

	 	7.	Borrower shall pay all taxes as and when due, and comply with all regulations imposed by any and all governing authorities. 

  

	 	8.	Borrower shall maintain in force insurance satisfactory to the Bank covering all assets. The Lender shall be named as loss payee under such policies. 

  

 2 

	 	9.	Borrower shall promptly give written notice to the Lender of any material adverse change in the business, property, assets, operations or conditions, financial or otherwise, of the
Borrower, any Event of Default or event which, with passage of time or notice, or both, would be an Event of Default, or of the pendency or threat of any litigation, of any tax deficiency, or of any petition in bankruptcy or other proceeding before
any governmental body or official which may affect the financial capacity of the Borrower. 

  

	 	10.	Borrower shall provide CPA prepared “Audit” for fiscal year ending 12/31/04, this to be received within 150 days of fiscal year end. 

  

	 	11.	Borrower agrees that future advances under this line of credit be credited to a demand deposit account of the Borrower at Colorado Business Bank. 

  

	 	12.	No advance against the line of credit shall be made if any default of the loan exists or if any conditions of the covenants have not been met. 

  

	 	13.	Any request for advance, both orally and written, by the Borrower, or its agents certifies that all covenants and conditions of this agreement have been met and that no default
exists. 

  

	 	14.	Guarantor Donald Wingerter will provide Bank annually an updated personal financial statement and federal income tax return. 

  

	 	15.	Borrower agrees to carry all business depository accounts with Lender bank. 

  
 Upon the occurrence of any event of default, the Lender may declare the entire principal amount of indebtedness of the Borrower to the Lender then outstanding and the
interest accrued thereon to be immediately due and payable without presentment, demand, protest, notice of protest or dishonor, or other notice of default of any kind, all of which are hereby waived by the Borrower, and all obligations, if any, of
the Lender to the Borrower shall immediately cease and terminate. No delays on the 
  

 3 

 part of the Lender in exercising any rights, power or privilege hereunder shall operate as a waiver thereof, nor shall
any partial exercise of any other right, power or privilege. The rights and remedies are cumulative and not exclusive of any right or remedy which the Lender shall otherwise have. 
  
 For the purpose of loan documentation, this Letter Agreement and the conditions and restrictions contained herein shall be deemed to be a
portion of the loan agreements between the Lender and the parties signing this agreement. It is further understood and agreed that the terms recited herein are not exclusive and are deemed merely to be cumulative with the terms and provisions of all
security agreements, notes, and other documents executed in connection with this loan. This letter and the credit facilities made available to Borrower are intended for the use of the Borrower only. No third party rights are intended or conferred by
this letter and no other party is, in any way, allowed to rely on the representations contained in this letter. By your acknowledgment of this letter, you agree to the terms and conditions as above outlined. 
  
 Sincerely, 
  
  
 Kent D. Ingram 
 Vice President 
 Colorado Business Bank 
  
 ACCEPTED AND AGREED: 
  
 Borrower: 
  
 Sound Surgical Technologies LLC 
  

					
	By:	 	  

	 	  

	 	 	Donald B. Wingerter, Jr. CEO	 	            Date

  

 4 

 ADDENDUM A 
  
 Pledged Certificates of Deposit to Sound Surgical Technologies $1.2 Million Line of Credit 
  

	 	A.	$132,297. C.D. # 500004676 owned by Sound Surgical Technologies LLC 

  

	 	B.	$91,170. C.D. # 500004625 owned by William W. Cimino 

  

	 	C.	$18,422. C.D. # 500004668 owned by Douglas D. Foote 

  

	 	D.	$758,111. C.D. # 500004641 owned by Donald B. Wingerter, Jr. 

  

 5Form of Fee Per Procedure Sale Agreement

 Exhibit 10.14 
  

					
	 	 	FEE PER PROCEDURE AGREEMENT	  	No.                    

  
 This Fee Per Procedure Agreement
(“Agreement”) is made as of the      day of                200     by and between Sound Surgical
Technologies LLC, a Colorado limited liability company (“SST” or “we” or “us”) with offices at 357 So. McCaslin Blvd., Suite 100, Louisville, CO 80027-2932, facsimile 720-294-2948, phone 303-926-8608, e-mail
sstmail@soundsurgical.com and 
 _________________________________________________________________________________________(“User” or “you”
or “your”) with offices at _____________________________________________________________________________, 
 facsimile no.
_________________________, phone no. _________________________, e-mail _________________________. 
  
 SCHEDULE OF FEE PAYMENTS DURING THE TERM OF THIS AGREEMENT 
  

							
	 Total No. Months: 36
 [Plus one
renewal of 36 months
 unless terminated – see Section 1.]
	 	Base Fee: $         per month	 	Supplemental Fee:	  	 $         Per Procedure in excess of
                  procedures per month

	 	 	 	 	  	 

  
 Quarterly
Reconciliation: Supplemental Fees and Base Fees will be reconciled for each 3 calendar months period (“quarter”) to achieve the result that you will not be required to pay more than $       per quarter
plus $       per procedure for each procedure over (***) in the quarter. If you perform fewer than          procedures during a quarter, no credit for Base Fees paid will be
carried forward to the next quarter. If you perform more than          procedures during a quarter, no credit for those Supplemental Fees will be carried forward against the next quarter’s Base Fees.

  
 The appropriate sales, use and /or rental tax(es) will be
added to your Base and Supplemental Fees. 
  
 Please read
your copy of this Agreement carefully and ask us any questions you may have. 
  
 IMPORTANT: READ BEFORE SIGNING. The terms of this Agreement (including those on the reverse side, if any, and on additional pages) should be read carefully because only those terms in writing are enforceable. Terms or oral promises that are
not contained in this written Agreement may not be legally enforced. You may change the terms of this Agreement only by another written agreement between you and us. You agree to comply with the terms and conditions of this Agreement. This Agreement
is not cancelable. You agree that the Equipment will be used for business purposes only and not for personal, family or household purposes. 
  
 You certify that all the information given in this Agreement and your application was correct and complete when this Agreement was signed. This Agreement is not binding
upon us or effective unless and until we execute this Agreement. The laws of the state of Pennsylvania will govern this Agreement. All disputes under this Agreement shall be resolved in the jurisdiction and venue of federal or state courts in
Montgomery County, Pennsylvania or Denver, Jefferson or Boulder Counties, Colorado, at our sole election. You specifically waive any defense based upon an inconvenient forum, and you agree that any such county is a convenient forum to resolve all
disputes under this Agreement. 
  

							
	 USER:
	 	  

	 	ACCEPTED BY:	 	Sound Surgical Technologies LLC
	 	 	[print name]	 	 	 	 

  

							
	 BY:
	 	  

	 	BY:	 	  

	 PRINT NAME:
	 	  

	 	 PRINT NAME:
	 	  

	 DATE:
	 	                        Federal Tax ID
No.                                	 	 DATE:
	 	  

  
 UNCONDITIONAL
GUARANTY 
  
 In consideration of SST entering into the above Agreement in
reliance on this guaranty, the undersigned, together and separately, unconditionally and irrevocably guarantee to SST, its successors and assigns, the prompt payment and performance of all obligations under the Agreement. We agree that (a) this is a
guaranty of payment and not of collection, and that SST can proceed directly against us without disposing of any security or seeking to collect from User, (b) we waive all defenses and notices, including those of protest, presentment, and demand,
(c) SST and User may renew, extend or otherwise change the terms of the Agreement without notice to us and we will be bound by such changes, and (d) we will pay all of SST’s costs of enforcement and collection. This guaranty survives the
bankruptcy of User and binds our administrators, successors, and assigns. Our obligations under this guaranty continue even if User becomes insolvent or bankrupt or is discharged from bankruptcy, and we agree not to seek to be repaid by User in the
event we must pay SST. THIS GUARANTY WILL BE GOVERNED BY THE SAME STATE LAW AS THE AGREEMENT. WE AGREE TO JURISDICTION AND VENUE IN THE STATE AND FEDERAL COURTS IN THE SAME STATE AND COUNTY. 
  

							
	 PERSONAL GUARANTY:
	 	PERSONAL GUARANTY:
				
	 BY:
	 	  

	 	 BY:
	 	  

	 PRINT NAME:
	 	  

	 	 PRINT NAME:
	 	  

	 ADDRESS:
	 	  

	 	 ADDRESS:
	 	  

	 DATE:
	 	                    Social Sec.
No.                                       
     	 	  
 DATE:
	 	                    Social Sec.
No.                                       
     

  

 TERMS AND CONDITIONS 
  

	1.	AGREEMENT. Subject to the terms of this Agreement, you agree to accept the Equipment and pay the Fees provided for in this Agreement when we accept this Agreement at our
office stated above. ONCE WE ACCEPT THIS AGREEMENT, YOU MAY NOT CANCEL IT DURING THE FULL AGREEMENT TERM. You agree to be bound by all the terms of this Agreement. 

  
 Term of Agreement; Renewal and Notice of Intent to Terminate. This Agreement begins on the date we deliver the
Equipment to you (the “Effective Date”) and will continue through the last day of the 36th full calendar
month following the month (“Acceptance Month”) in which you sign and deliver to us our Acceptance of Equipment form (attached). You agree to sign and deliver that form to us before using the Equipment for procedures other than training
procedures done with our representative. By signing the Acceptance of Equipment form, you authorize the commencement of this Agreement. This Agreement will renew for an additional term of 3 years on the same terms and conditions, unless you notify
us in writing at least 60 days prior to the expiration of the initial term that you do not want to renew. When you receive the Equipment, you agree to inspect it and, if contacted by us, to verify by telephone such information as we require.

  

	2.	FEES. You agree to pay us the Base Fee and the Supplemental Fees shown in the box headed “SCHEDULE OF FEE PAYMENTS DURING THE TERM OF THIS AGREEMENT” (separately or
together, “Fees”), plus applicable taxes, when each payment is due. Prior to the end of the Acceptance Month, you are not required to pay Base Fees, but you are required to pay us a fee of $(***) (deemed to be a Supplemental Fee) for each
procedure you do with the Equipment. We will advise you as to (a) the due date of each Fee payment, and (b) the address to which you must send your Fee payments. Fees are due whether or not you receive an invoice from us. You will pay us any
required Documentation Fee when you sign this Agreement. Restrictive endorsements on checks you send to us will not reduce your obligations to us. Unless a proper exemption certificate is provided, applicable sales and use taxes will be added to the
Fees. For any payment that we do not receive by its due date, you agree to pay a late charge equal to the higher of 10% of the amount due or $25.00 (not to exceed the maximum amount permitted by law), as reasonable collection costs. We may charge
you a return check or non-sufficient funds charge of $25.00 for any check that is returned by the bank for any reason (not to exceed the maximum amount permitted by law). You agree that we can, but do not have to, take on your behalf any action that
you fail to take as required by this Agreement, and our expenses will be deemed additional Fees that you owe us. To the extent allowed by law, any late payment or non-payment of any past due amount will accrue interest at the lower of 18% per annum
or the highest legal rate from the due date until paid. If we take legal action to collect amounts due to us under this Agreement, you agree to pay all of our costs and expenses of collection, including reasonable attorneys fees.

  

	3.	PROCEDURES; REPORTING; AUDIT RIGHTS. 

  
 Procedure. A procedure is a single surgical event on a single patient, but may include surgical attention to multiple body sites during such single
surgical event.  
  
 Reporting. You will report to
us by facsimile sent to 303-926-8615 or by e-mail to sstmail@soundsurgical.com (or such other facsimile number or e-mail address that we may specify in a notice to you) each Monday the number of VASER® procedures performed, and the date and type of each such procedure, since the last report (or since the delivery of the
Equipment for the first such report). We may establish a different method of reporting, and you agree to cooperate in making such reports as we reasonably may request. 
  
 Audit Rights. Upon our request our representatives may inspect your books and records at any time(s) during your
regular business hours, at the place where they are kept, to verify the number of procedures performed with the Equipment. We will comply with applicable law regarding patient confidentiality in making such inspections. If such inspection determines
that you have inaccurately reported the number of procedures for more than one month, we will have the right to charge you, and you agree to pay, for each unreported procedure a fee up to 3 times the Supplemental Fee specified in this Agreement, or
for the cost of such inspection, or both such fee and such cost. 
  

	4.	TAXES. You are solely responsible for all taxes of any kind, including sales, use, property and other taxes imposed by any federal, state or local government on the
transactions contemplated by this Agreement and on the Equipment, excluding only taxes based on our net income. You will pay us, when invoiced, all taxes (including any sales, use and personal property taxes) relating to this Agreement and the
Equipment. 

  

	5.	OBLIGATION. You agree that you are unconditionally obligated to pay all fees and any other amounts due under this Agreement for the full Agreement Term even if you
have temporary loss of use of the Equipment. You are not entitled to reduce or set-off against fees or other amounts due under this Agreement for any reason whatsoever. You have no right to terminate this Agreement prior to the end of the Term
unless we provide you such right in writing. 

  

	6.	TRAINING AND MARKETING SUPPORT. We will provide you at no cost 1 training day for physician VASER-certification training and staff in-service training. Additional
training/in-service days may be provided at a cost of $(***) per day. In addition, we will provide VASER-certified physicians and one of your staff representatives admittance to VASER user meetings. We will provide you with marketing support
including a didactic CD; marketing materials as they become available from us; and the use (subject to our approval of the manner of use) of the VASER logo and “VASER-certified” label, provided that you maintain at your facility at all
times at least one responsible representative who has completed required VASER certification training. 

  

	7.	YOUR RIGHTS AND OBLIGATIONS REGARDING THE EQUIPMENT. 

  
 Location. This Agreement entitles you to possess and use the Equipment at the address for you given above or at such other address(es) as we may
agree in writing (“Approved Location(s)”). You shall not remove the Equipment or allow the Equipment to be removed from an Approved Location without our prior written permission, which we will not withhold unreasonably. 

 
 Use of Equipment. The VASER Amplifier may be used only by a
licensed and VASER-certified physician in a surgical setting appropriate for the procedure to be performed and in compliance with all applicable laws and regulations. You are responsible for ensuring compliance with this requirement and for
determining the fitness and suitability of the Equipment for any particular use, including without limitation use in surgery in general or in any surgical procedure in particular. You agree to save, indemnify and hold us harmless from any injuries
to your patients treated with the Equipment, except injuries resulting directly and solely from our gross negligence or willful misconduct. You assume all risk of use or misuse of the Equipment. Should the Equipment repeatedly be used in a
professionally unreasonable manner (as determined by our Director of Clinical Services), we will have the right to terminate this Agreement and remove the Equipment upon 5 days’ prior notice to you. 
  
 Purchase of Ancillary Items. You are responsible for purchasing
separately all other items necessary for use of the Equipment and not supplied with it, such as Sound Surgical Skin Ports and disposables such as tubing and canisters. 
  
 Responsibility for Loss or Damage. You are responsible for any loss of or damage to the Equipment from any cause
whatsoever. You agree to read and follow the instructions and advice contained in the User’s Guide(s) delivered to you with the Equipment. You will notify us immediately of any damage to or loss of any of the Equipment and of any failure of the
Equipment to operate properly. In the event of loss or damage to the Equipment, you will pay us the amount we customarily charge to repair or replace the Equipment (the decision to repair or replace the Equipment is at our sole option). If you have
satisfied your obligations under this Paragraph, we will forward to you any insurance proceeds that we receive for lost, damaged, or destroyed Equipment. If you are in default, we will apply any insurance proceeds we receive to reduce your
obligations under this Agreement. 

 Insurance. You will obtain and maintain in place at your sole expense during the term of this
Agreement (a) professional liability insurance and (b) comprehensive property and casualty insurance covering the Equipment against loss and damage from all usual perils in an agreed amount of US$(***) for each VASER® System. All property and casualty insurance shall be primary to any insurance carried by us and shall
name us an additional insured and as loss payee with respect to loss or damage of the Equipment. You will deliver to us upon request a certificate of insurance from your carrier evidencing such coverage. If you do not provide us with evidence of
such property and casualty insurance within 10 days of our request or we receive notice of policy cancellation, we may (but we are not obligated to) obtain insurance on our own interest in the Equipment at your expense. In that event, you will pay
all insurance premiums and related charges and there will be no deductible. This insurance charge will be added to each of your invoices. The insurance charge includes premium, interest and/or finance charges on that premium, fees for tracking the
insurance, and administrative expenses (including a fee payable to SST). 
  
 Confidentiality. You acknowledge that much of the technology embodied in the Equipment is proprietary and confidential in SST. No persons other than our authorized representatives are to open the VASER
Amplifier, the VentXTM Console, the PFMS, or a
VASER Fragmentation Handpiece for any purpose. There are no user-serviceable parts inside the Equipment. You will not allow anyone not regularly in your employ or who is not a medical professional who regularly assists you in medical
procedures to test or use the Equipment for any purpose without our prior written consent, except that if you first notify us of your intent to do so, you may allow any licensed and VASER-certified physician to use the Equipment in providing medical
care to a patient. 
  
 Access. You will grant our
representatives access to the Equipment during normal business hours at our request for purposes of inspection, replacement, and field maintenance and upgrades, if any. 
  
 Return of Equipment. Upon expiration or termination of this Agreement for any reason, or if default occurs under
Section 10, you will make freely available to us and allow us to take possession of all of the Equipment (without any requirement to execute any document other than a simple receipt of possession) within 15 days after the date of termination or
expiration or default. You will give us written notice when the Equipment is available to us. All of the Equipment shall then be in good working condition (unless we, in our good faith judgment, determine that the fact that the Equipment is not in
good working condition is not due to any fault or failure on your part or is due to a loss covered by your insurance in effect in compliance with this Agreement). If we terminate this Agreement as provided in it, or if you are in default, you will
pay us $500 as the cost of our recovery and shipping of the Equipment to our address. You will pay us our customary repair or replacement charges (at our sole option) for any Equipment not returned in good working condition (subject to the exception
above). NOTWITHSTANDING ANY EXPIRATION OR TERMINATION OF THIS AGREEMENT, YOU WILL CONTINUE TO PAY FEES UNTIL THE EQUIPMENT IS RECEIVED AND ACCEPTED BY US OR UNTIL THE TENTH BUSINESS DAY AFTER YOU HAVE GIVEN US NOTICE THAT THE EQUIPMENT IS AVAILABLE
TO US, WHICHEVER IS EARLIER. If you fail to make the Equipment freely available to us as provided above, you shall pay additional Fees for each month or fraction of a month after expiration, termination or default, as the case may be, equal to 150%
of the Base Fees provided for in this Agreement. 
  

	8.	OWNERSHIP; NO LIENS; SECURITY INTEREST; LIMITED WARRANTY. 

  
 Ownership; No Liens; Security Interest. We retain at all times sole and exclusive ownership of all right, title and interest in and to the
Equipment and the technology and inventions it embodies, except only the rights granted to you in this Agreement. We also retain sole and exclusive ownership of all modifications and upgrades to the Equipment, even if you suggest or specifically
describe such modification or upgrade to us. We will affix to the Equipment a label stating that the Equipment is owned by us. You agree that you will not remove, cover or deface that label, and that you will not represent to any person or entity
that you have any right, title or interest in or to the Equipment, except the right to possess and use the Equipment pursuant to this Agreement. You will not create or allow to be created by anyone (other than by us) any lien or encumbrance of any
kind on the Equipment, and you agree to save, indemnify and hold us harmless from and against any loss or damage to us by any such lien or encumbrance (other than those we may create), including without limitation the reasonable costs and expenses
of removing the same. You represent and warrant that this is a commercial agreement. You authorize us to insert or correct missing information on this Agreement, including your official name, serial numbers, and any other information describing the
Equipment. We will send you copies of the changes. To secure all of your obligations to us under this Agreement you hereby grant us a security interest in (a) the Equipment to the extent of your interests in the Equipment, (b) anything attached or
added to the Equipment at any time, (c) any money or property from the sale of the Equipment, and (d) any money from an insurance claim if the Equipment is lost or damaged. You agree that the security interest will not be affected if this Agreement
is changed in any way. You hereby appoint us (or our agent) as your true and lawful attorney-in-fact to affix your signature to UCC financing statements prepared and filed on your behalf by us (or our agent) with the same force and effect as if you
had signed such financing statements. If we request, you agree to sign financing statements in order for us to publicly record our security interest. This Agreement or a copy of this Agreement shall be sufficient as a financing statement and may be
filed as such. All facsimile documents can also be regarded as original documents. 
  
 Limited Warranty. During the term of this Agreement, we will repair or replace the Equipment at our expense, provided that if we determine, in our sole judgment, that the Equipment failure was due to
misuse, neglect or accident, or that it has been repaired, altered or tampered with in any way by any person other than our authorized representative, or that it has been used with any ultrasonic power generator, suction or irrigation system,
handpiece, probe or foot switch, as the case may be, other than those provided by us for use with the Equipment, you will be responsible for our customary charges for repair or replacement, as well as all shipping and related costs. You must follow
the return procedures specified in the appropriate User’s Guide. We warrant that we have good title to the Equipment delivered to you, that we have the right to license to you the technology contained in the Equipment, and that the Equipment
and the technology in it do not infringe the valid intellectual property rights of any third party. 
  
 EXCLUSION OF OTHER WARRANTIES 
  
 Except for the limited warranties stated above, we make no warranty, express or implied, including without limitation any warranty of merchantability
or fitness of the Equipment for any particular purpose. You are solely responsible for determining the suitability of the Equipment, singly or in combination, for any particular use or procedure. 
  

	9.	LIMITATION OF LIABILITY. Our liability for failure of the Equipment to operate correctly or at all is limited to repair or replacement of the Equipment, at our sole
discretion. We will not be liable for any other losses, damages, costs or expenses resulting directly or indirectly from failure of the Equipment to operate correctly or at all. Our liability for breach of any warranty made above or for any breach
of this Agreement is limited to the aggregate amount you paid to us under this Agreement, not to exceed the aggregate payments received by us in the twelve (12) months immediately preceding the breach giving rise to such liability. In no event will
we be liable for indirect, incidental or consequential damages, including without limitation your loss of income or costs of postponed or canceled procedures. 

  

	10.	DEFAULT. You will be in default under this Agreement if any of the following happens: (a) we do not receive any Fees or other payment due under this Agreement within
10 days after its due date, or (b) you or any of your guarantors become insolvent, are liquidated, dissolve, merge, transfer substantially all stock or assets, stop doing business, or assign rights or property for the benefit of creditors, or (c) a
petition is filed by or against you or any of your guarantors under any bankruptcy or insolvency law, or (d) (for individuals) you or any of your guarantors die, or have a guardian appointed, or (e) any representation you have made in this Agreement
shall prove to be false or misleading in any material aspect, or (f) you or any of your guarantors breach the terms of any guaranty and do not correct the default within 10 days after we send you written notice of the default, or (g) you default on
any other agreement between you and us (or our affiliates). 

 aspect, or (f) you or any of your guarantors breach the terms of any guaranty and do not correct the
default within 10 days after we send you written notice of the default, or (g) you default on any other agreement between you and us (or our affiliates). 
  

	11.	REMEDIES. Upon the occurrence of default, we may, in our sole discretion, do any or all of the following: (a) provide written notice to you of default, (b) as
liquidated damages for loss of a bargain and not as a penalty, declare due and payable the present value of (i) any and all amounts which may be then due and payable to you and us under this Agreement, plus (ii) all Base Fee payments remaining
through the end of the Agreement Term. We have the right to require you to make the Equipment available to us for repossession during reasonable business hours or we may repossess the Equipment, so long as we do not breach the peace in doing so, or
we may use legal process in compliance with applicable law pursuant to court order to have the Equipment repossessed. You will not make any claims against us or the Equipment for trespass, damage or any other reason. We will retain al of our rights
against you even if we do not choose to enforce them at the time of your default. 

  

	12.	NOTICE. Notices under this Agreement shall be in writing sent by facsimile, e-mail, recognized national courier service, or U.S. Postal Service mail to the facsimile
number, e-mail, or street address given for the addressee at the beginning of this Agreement. You and we may change our respective facsimile, e-mail and street addresses by notice to the other. Notices will be effective when sent in accordance with
this paragraph, provided that notices sent by e-mail will be effective upon electronic delivery to the sender of a delivery receipt. 

  

	13.	YOUR REPRESENTATIONS. You state for our benefit that as of the date of this Agreement (a) you have the lawful power and authority to enter into this Agreement, (b) the
individuals signing this Agreement have been duly authorized to do so on your behalf, (c) by entering into this Agreement you will not violate any law or other agreement to which you are a party, (d) you are not aware of anything that will have a
material negative effect on your ability to satisfy your obligations under this Agreement, and (e) all financial information you have provided us is true and accurate and provides a good representation of your financial condition.

  

	14.	YOUR PROMISES. In addition to the other provisions of this Agreement, you agree that during the terms of this Agreement (a) you will promptly notify us in writing if
you move your principal place of business, if you change the name of your business, or if there is a change in your ownership, (b) you will provide to us such financial information as we may reasonably request from time-to-time, and (c) you will
take any action we reasonably request to protect our rights to the Equipment and to meet your obligations under this Agreement. 

  

	15.	MISCELLANEOUS. This Agreement contains our entire agreement and supersedes any conflicting provision of any equipment purchase order or any other agreement. TIME IS OF
THE ESSENCE IN THIS AGREEMENT. If a court finds any provision of this Agreement to be unenforceable, the remaining terms of this Agreement shall remain in effect. You authorize us (or our agent) to (a) obtain credit reports, (b) make such
other credit inquiries as we may deem necessary, and (c) furnish payment history information to payment reporting agencies.  

  

	16.	ASSIGNMENT. You may not assign this Agreement without our prior written consent. We may, without notifying you, sell, assign, or transfer this Agreement, our interests
in the Equipment, and/or our right to receive payments to be made under this Agreement. You agree that if we do so, our assignee will have the same rights and benefits that we now have. You agree that the rights of the new owner will not be subject
to any claims, defenses, or set-offs that you may have against us. Any such assignment, sale, or transfer will not relieve us of any obligations we may have to you under this Agreement. If you are given notice of an assignment, sale or transfer, you
agree to respond to any requests about this Agreement and, if directed by us, to pay the new owner all Fees and other amounts due under this Agreement. 

  

	17.	WAIVERS. WE AND YOU EACH AGREE TO WAIVE AND TO TAKE ALL REQUIRED STEPS TO WAIVE ALL RIGHTS TO A JURY TRIAL. To the extent you are permitted by applicable law, you
waive all rights and remedies conferred upon a lessee by Article 2A (Sections 508-522) of the Uniform Commercial Code including, but not limited to your rights to: (a) cancel or repudiate this Agreement; (b) reject or revoke acceptance of the
Equipment; (c) grant a security interest in any Equipment in your possession; and (d) in the event we assign this Agreement, recover damages against our assignee for any breach of warranty or for any other reason. To the extent you are permitted by
applicable law, you waive any rights you now or later may have under any statute or otherwise which requires us to sell or otherwise use any portion of the Equipment to reduce our damages, which requires us to provide you with notice of default,
intent to accelerate amounts becoming due or acceleration of amounts becoming due, or which may otherwise limit or modify any of our rights or remedies. ANY ACTION YOU TAKE AGAINST US FOR ANY DEFAULT, INCLUDING BREACH OF WARRANTY OR INDEMNITY, MUST
BE STARTED WITHIN ONE (1) YEAR AFTER THE EVENT THAT CAUSED IT. We will not be liable for specific performance of this Agreement or for any losses or damages occasioned by delay or failure to deliver the Equipment. 

  

	18.	EFFECT OF TERMINATION. The provisions of Sections 2, 4, 7 (until all Equipment is returned to us), 9, 11, 12, 17 and 18 of this Agreement and any payment obligations
incurred prior to the effective date of termination of this Agreement shall survive any termination of this Agreement for so long as necessary to carry out the intent of those provisions. 

  
 By signing below, you and we acknowledge your and our acceptance of and agreement with all of
the terms and conditions in this Agreement. 
  

			
	  

	  	Sound Surgical Technologies LLC
	 User                     [Print name of
User]
	  	 

  

							
	 By
	 	  

	 	 By
	 	  

	 Print Name
	 	  

	 	 Print Name
	 	  

	 Title
	 	  

	 	 Title
	 	  

	 Date
	 	  

	 	 Date
	 	  

  
 Schedule I – Equipment:

  

							
	VASER® Amplifier	  	Serial No.                        	 	VASER Probes	 	Quantity                    
	VentXTM Console	  	Serial No.                        	 	VentX Handles/Cannulae	 	Quantity                    
	Precision Fluid Management System	  	Serial No.                        	 	Sterilization Trays	 	Quantity                    
	VASER Fragmentation Handpiece	  	Serial No.                        	 	Sound SurgicalTM Skin Ports	 	Quantity                    
	VASER Fragmentation Handpiece	  	Serial No.                        	 	Skin Port Tool	 	Quantity

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