NOTE 12—SUBSEQUENT EVENT

On October 3, 2016, in connection with the employment of a new Vice President of Clinical and Dental Affairs and Chief Dental Officer, the Compensation Committee of the Board awarded 125,000 non-qualified stock options to purchase shares of BIOLASE common stock.  This award was issued at $1.72 per share, the closing market price of BIOLASE common stock on the grant date, and expires 10 years from the grant date.  Vesting periods for the options are as follows: (i) one-half of the total grant is subject to time vesting with 25% vesting as of October 3, 2017 and the remaining 75% vesting ratably monthly over a thirty-six month period commencing on October 3, 2017, and (ii) one-half of the total grant is subject to specific 2017, 2018 and 2019 performance criteria. For additional information regarding stock-based compensation, see Part I, Item I, Note 3 – Stock-Based Awards and Per Share Information.