<PAGE>
 
                                               EXHIBIT 10.10.2 - FORM OF WARRANT

                                                                    EXHIBIT 1.02
                                                                    ------------

No. WA-__                               Right to Purchase ____ Shares of Common 
                                        Stock of Candela Corporation

                              CANDELA CORPORATION

                         COMMON STOCK PURCHASE WARRANT

         CANDELA CORPORATION, a Delaware corporation (the "Company"), hereby
certifies that, for value received _________________________________, or
assigns, is entitled, subject to the terms set forth below, to purchase from the
Company at any time or from time to time before 5:00 P.M., Boston time, on
October 31, 2006, or such later time as may be specified in Section 17 hereof,
_________ fully paid and nonassessable shares of Common Stock, $.01 par value,
of the Company, at a purchase price per share of $4.00 (such purchase price per
share as adjusted from time to time as herein provided is referred to herein as
the "Purchase Price"). The number and character of such shares of Common Stock
and the Purchase Price are subject to adjustment as provided herein.

         This Warrant is one of the Common Stock Purchase Warrants (the
"Warrants") evidencing the right to purchase shares of Common Stock of the
Company, issued pursuant to a certain Subordinated Note and Warrant Purchase
Agreement (the "Agreement"), dated as of October 15, 1998, between the Company
and the Persons listed in the Schedule of Purchasers attached thereto, a copy of
which is on file at the principal office of the Company and the holder of this
Warrant shall be entitled to all of the benefits of the Agreement, as provided
therein.

         As used herein the following terms, unless the context otherwise
requires, have the following respective meanings:

               (a)  The term "Company" shall include Candela Corporation and any
     corporation which shall succeed or assume the obligations of the Company
     hereunder.

               (b)  The term "Common Stock" includes the Company's Common Stock,
     $.01 par value per share, as authorized on the date of the Agreement and
     any other securities into which or for which any of such Common Stock may
     be converted or exchanged pursuant to a plan of recapitalization,
     reorganization, merger, sale of assets or otherwise.

               (c)  The term "Other Securities" refers to any stock (other than
     Common Stock) and other securities of the Company or any other person
     (corporate or otherwise) which the holders of the Warrants at any time
     shall be entitled to receive, or shall have received, on the exercise of
     the Warrants, in lieu of or in addition to Common Stock, or which at any
     time shall be issuable or shall have been issued in exchange for or in
     replacement of Common Stock or Other Securities pursuant to section 5 or
     otherwise.

     1.   EXERCISE OF WARRANT.
          -------------------

            1.1. FULL EXERCISE. This Warrant may be exercised in full by the
                 -------------
holder hereof by surrender of this Warrant, with the form of subscription at the
end hereof duly executed by such holder, to the Company at its principal office,
accompanied by payment, in cash or by certified or official bank check payable
to the order of the Company, in the amount obtained by multiplying the number of
shares of Common Stock for which this Warrant is then exercisable by the
Purchase Price then in effect.

            1.2. PARTIAL EXERCISE. This Warrant may be exercised in part by
                 ----------------
surrender of this Warrant in the manner and at the place provided in subsection
1.1 except that the amount payable by the holder on such partial exercise shall
be the amount obtained by multiplying (a) the number of shares of Common Stock
designated by the holder in the subscription at the end hereof by (b) the
Purchase Price then in effect. On any such partial exercise the
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                                       2

Company at its expense will forthwith issue and deliver to or upon the order of
the holder hereof a new Warrant or Warrants of like tenor, in the name of the
holder hereof or as such holder (upon payment by such holder of any applicable
transfer taxes) may request, calling in the aggregate on the face or faces
thereof for the number of shares of Common Stock for which such Warrant or
Warrants may still be exercised.

          1.3. PAYMENT BY NOTES SURRENDER. Notwithstanding the payment
               --------------------------   
provisions of subsections 1.1 and 1.2, all or part of the payment due upon
exercise of this Warrant in full or in part may be made by the surrender by such
holder to the Company of any of the Company's Notes issued pursuant to the
Agreement and such Notes so surrendered shall be credited against such payment
in an amount equal to the principal amount thereof plus premium (if any) and
accrued interest to the date of surrender.

          1.4  NET ISSUE ELECTION. The holder hereof may elect to receive,
               ------------------ 
without the payment by such holder of any additional consideration, shares equal
to the value of this Warrant or any portion hereof by the surrender of this
Warrant or such portion to the Company, with the form of subscription at the end
hereof duly executed by such holder, at the office of the Company. Thereupon,
the Company shall issue to such holder such number of fully paid and
nonassessable shares of Common Stock as is computed using the following formula:

                                  X = Y (A-B)
                                      -------              
                                         A

where X = the number of shares to be issued to such holder pursuant to this
subsection 1.4.

      Y = the number of shares covered by this Warrant in respect of which the
net issue election is made pursuant to this subsection 1.4.

      A = the fair market value of one share of Common Stock, as determined in
good faith by the Board of Directors of the Company, as at the time the net
issue election is made pursuant to this subsection 1.4.

      B = the Purchase Price in effect under this Warrant at the time the net
issue election is made pursuant to this subsection 1.4.

The Board of Directors of the Company shall promptly respond in writing to an
inquiry by the holder hereof as to the fair market value of one share of Common
Stock.

          1.5. COMPANY ACKNOWLEDGMENT. The Company will, at the time of the
               ----------------------
exercise of the Warrant, upon the request of the holder hereof acknowledge in
writing its continuing obligation to afford to such holder any rights to which
such holder shall continue to be entitled after such exercise in accordance with
the provisions of this Warrant. If the holder shall fail to make any such
request, such failure shall not affect the continuing obligation of the Company
to afford to such holder any such rights.

          1.6. TRUSTEE FOR WARRANT HOLDERS. In the event that a bank or trust
               ---------------------------   
company shall have been appointed as trustee for the holders of the Warrants
pursuant to subsection 4.2, such bank or trust company shall have all the powers
and duties of a warrant agent appointed pursuant to section 12 and shall accept,
in its own name for the account of the Company or such successor person as may
be entitled thereto, all amounts otherwise payable to the Company or such
successor, as the case may be, on exercise of this Warrant pursuant to this
section 1.

     2. DELIVERY OF STOCK CERTIFICATES, ETC., ON EXERCISE. As soon as
        -------------------------------------------------    
practicable after the exercise of this Warrant in full or in part, and in any
event within 10 days thereafter, the Company at its expense (including the
payment by it of any applicable issue taxes) will cause to be issued in the name
of and delivered to the holder hereof, or as such holder (upon payment by such
holder of any applicable transfer taxes) may direct, a certificate or
certificates for the number of fully paid and nonassessable shares of Common
Stock (or Other Securities) to which such holder shall be entitled on such
exercise, plus, in lieu of any fractional share to which such holder would
otherwise be entitled, cash equal to such fraction multiplied by the then
current market value of one full share,
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                                       3

together with any other stock or other securities and property (including cash,
where applicable) to which such holder is entitled upon such exercise pursuant
to section 1 or otherwise.

         3. ADJUSTMENT FOR DIVIDENDS IN OTHER STOCK, PROPERTY, ETC.;
            -------------------------------------------------------
RECLASSIFICATION, ETC. In case at any time or from time to time, the holders of
--------------------- 
Common Stock (or Other Securities) shall have received, or (on or after the
record date fixed for the determination of shareholders eligible to receive)
shall have become entitled to receive, without payment therefor,

               (a)  other or additional stock or other securities or property
         (other than cash) by way of dividend, or

               (b)  any cash (excluding cash dividends payable solely out of
         earnings or earned surplus of the Company), or

               (c)  other or additional stock or other securities or property
         (including cash) by way of spin-off, split-up, reclassification,
         recapitalization, combination of shares or similar corporate
         rearrangement,

other than additional shares of Common Stock (or Other Securities) issued as a
stock dividend or in a stock-split (adjustments in respect of which are provided
for in subsection 5.4), then and in each such case the holder of this Warrant,
on the exercise hereof as provided in section 1, shall be entitled to receive
the amount of stock and other securities and property (including cash in the
cases referred to in subdivisions (b) and (c) of this section 3) which such
holder would hold on the date of such exercise if on the date hereof he had been
the holder of record of the number of shares of Common Stock called for on the
face of this Warrant and had thereafter, during the period from the date hereof
to and including the date of such exercise, retained such shares and all such
other or additional stock and other securities and property (including cash in
the cases referred to in subdivisions (b) and (c) of this section 3) receivable
by him as aforesaid during such period, giving effect to all adjustments called
for during such period by sections 4 and 5.

         4. ADJUSTMENT FOR REORGANIZATION, CONSOLIDATION, MERGER, ETC.
            ---------------------------------------------------------

                  4.1. REORGANIZATIONS, MERGERS, ETC.. In case at any time or
                       -------------------------------
from time to time, the Company shall (a) effect a reorganization, (b)
consolidate with or merge into any other person, or (c) transfer all or
substantially all of its properties or assets to any other person under any plan
or arrangement contemplating the dissolution of the Company, then, in each such
case, the holder of this Warrant, on the exercise hereof as provided in section
1 at any time after the consummation of such reorganization, consolidation or
merger or the effective date of such dissolution, as the case may be, shall
receive, in lieu of the Common Stock (or Other Securities) issuable on such
exercise prior to such consummation or such effective date, the stock and other
securities and property (including cash) to which such holder would have been
entitled upon such consummation or in connection with such dissolution, as the
case may be, if such holder had so exercised this Warrant, immediately prior
thereto, all subject to further adjustment thereafter as provided in sections 3
and 5.

                  4.2. DISSOLUTION. In the event of any dissolution of the
                       -----------
Company following the transfer of all or substantially all of its properties or
assets, the Company, prior to such dissolution, shall at its expense deliver or
cause to be delivered the stock and other securities and property (including
cash, where applicable) receivable by the holders of the Warrants after the
effective date of such dissolution pursuant to this section 4 to a bank or trust
company having its principal office in Boston, Massachusetts, as trustee for the
holder or holders of the Warrants.

                  4.3. CONTINUATION OF TERMS. Upon any reorganization,
                       ---------------------
consolidation, merger or transfer (and any dissolution following any transfer)
referred to in this section 4, this Warrant shall continue in full force and
effect and the terms hereof shall be applicable to the shares of stock and other
securities and property receivable on the exercise of this Warrant after the
consummation of such reorganization, consolidation or merger or the effective
date of dissolution following any such transfer, as the case may be, and shall
be binding upon the issuer of any such stock or other securities, including, in
the case of any such transfer, the person acquiring all or substantially all of
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                                       4

the properties or assets of the Company, whether or not such person shall have
expressly assumed the terms of this Warrant as provided in section 6.

         5. ADJUSTMENT FOR ISSUE OR SALE OF COMMON STOCK AT LESS THAN THE
            -------------------------------------------------------------
PURCHASE PRICE IN EFFECT.
------------------------

               5.1. General. If the Company shall at any time or from time to
                    -------
time, issue any additional shares of Common Stock (other than shares of Common
Stock excepted from the provisions of this section 5 by subsections 5.4 and 5.5)
without consideration or for a net consideration per share less than the
Purchase Price in effect immediately prior to such issuance, then, and in each
such case: (a) the Purchase Price shall be lowered to an amount determined by
multiplying such Purchase Price then in effect by a fraction:

                         (1)  the numerator of which shall be (a) the number of
         shares of Common Stock outstanding immediately prior to the issuance of
         such additional shares of Common Stock, plus (b) the number of shares
         of Common Stock which the net aggregate consideration, if any, received
         by the Company for the total number of such additional shares of Common
         Stock so issued would purchase at the Purchase Price in effect
         immediately prior to such issuance, and

                         (2)  the denominator of which shall be (a) the number
         of shares of Common stock outstanding immediately prior to the issuance
         of such additional shares of Common Stock plus (b) the number of such
         additional shares of Common Stock so issued;

and (b) the holder of this Warrant shall thereafter, on the exercise hereof as
provided in section 1, be entitled to receive the number of shares of Common
stock determined by multiplying the number of shares of Common Stock which would
otherwise (but for the provisions of this subsection 5.1) be issuable on such
exercise by the fraction of which (i) the numerator is the Purchase Price which
would otherwise (but for the provisions of this subsection 5.1) be in effect,
and (ii) the denominator is the Purchase Price in effect on the date of such
exercise.

               5.2. DEFINITIONS, ETC. For purposes of this section 5 and of
                    ----------------
section 7:

                         The issuance of any warrants, options or other
         subscription or purchase rights with respect to shares of Common Stock
         and the issuance of any securities convertible into or exchangeable for
         shares of Common Stock (or the issuance of any warrants, options or any
         rights with respect to such convertible or exchangeable securities)
         shall be deemed an issuance at such time of such Common Stock if the
         Net Consideration Per Share which may be received by the Company for
         such Common Stock (as hereinafter determined) shall be less than the
         Purchase Price at the time of such issuance and, except as hereinafter
         provided, an adjustment in the Purchase Price and the number of shares
         of Common Stock issuable upon exercise of this Warrant shall be made
         upon each such issuance in the manner provided in subsection 5.1. Any
         obligation, agreement or undertaking to issue warrants, options, or
         other subscription or purchase rights at any time in the future shall
         be deemed to be an issuance at the time such obligation, agreement or
         undertaking is made or arises. No adjustment of the Purchase Price and
         the number of shares of Common Stock issuable upon exercise of this
         Warrant shall be made under subsection 5.1 upon the issuance of any
         shares of Common Stock which are issued pursuant to the exercise of any
         warrants, options or other subscription or purchase rights or pursuant
         to the exercise of any conversion or exchange rights in any convertible
         securities if any adjustment shall previously have been made upon the
         issuance of any such warrants, options or other rights or upon the
         issuance of any convertible securities (or upon the issuance of any
         warrants, options or any rights therefor) as above provided. Any
         adjustment of the Purchase Price and the number of shares of Common
         Stock issuable upon exercise of this Warrant with respect to this
         subsection 5.2 which relates to warrants, options or other subscription
         or purchase rights with respect to shares of Common Stock shall be
         disregarded if, as, and when all of such warrants, options or other
         subscription or purchase rights expire or are canceled without being
         exercised, so that the Purchase Price effective immediately upon such
         cancellation or expiration shall be equal to the Purchase Price in
         effect at the time of the issuance of the expired or canceled warrants,
         options or other subscriptions or purchase rights, with such additional
         adjustments as would have been made to that Purchase Price had the
         expired or canceled warrants, options or other subscriptions or
<PAGE>
 
                                       5

         purchase rights not been issued. For purposes of this subsection 5.2,
         the "Net Consideration Per Share" which may be received by the Company
         shall be determined as follows:

                         (A)  The "Net Consideration Per Share" shall mean the
         amount equal to the total amount of consideration, if any, received by
         the Company for the issuance of such warrants, options, subscriptions,
         or other purchase rights or convertible or exchangeable securities,
         plus the minimum amount of consideration, if any, payable to the
         Company upon exercise or conversion thereof, divided by the aggregate
         number of shares of Common Stock that would be issued if all such
         warrants, options, subscriptions, or other purchase rights or
         convertible or exchangeable securities were exercised, exchanged or
         converted.

                         (B)  The "Net Consideration Per Share" which may be
         received by the Company shall be determined in each instance as of the
         date of issuance of warrants, options, subscriptions or other purchase
         rights, or convertible or exchangeable securities without giving effect
         to any possible future price adjustments or rate adjustments which may
         be applicable with respect to such warrants, options, subscriptions or
         other purchase rights or convertible securities.

                  For purposes of this section 5, if a part or all of the
         consideration received by the Company in connection with the issuance
         of shares of the Common Stock or the issuance of any of the securities
         described in this section 5, consists of property other than cash, such
         consideration shall be deemed to have the same value as shall be
         determined in good faith by the Board of Directors of the Company.

         This subsection 5.2 shall not apply under any of the circumstances
         described in subsection 5.4.

                  5.3. DILUTION IN CASE OF OTHER SECURITIES. In case any Other
                       ------------------------------------
Securities shall be issued or sold, or shall become subject to issue upon the
conversion or exchange of any stock (or Other Securities) of the Company (or any
other issuer of Other Securities or any other person referred to in section 4)
or to subscription, purchase or other acquisition pursuant to any rights or
options granted by the Company (or such other issuer or person), for a
consideration per share such as to dilute the purchase rights evidenced by this
Warrant, the computations, adjustments and readjustments provided for this
section 5 with respect to the Purchase Price and the number of shares of Common
Stock issuable upon exercise of this Warrant shall be made as nearly as possible
in the manner so provided and applied to determine the amount of Other
Securities from time to time receivable on the exercise of the Warrants, so as
to protect the holders of the Warrants against the effect of such dilution.

                  5.4. EXTRAORDINARY EVENTS. In the event that the Company shall
                       --------------------
(i) issue additional shares of the Common Stock as a dividend or other
distribution on outstanding Common Stock, (ii) subdivide its outstanding shares
of Common Stock, or (iii) combine its outstanding shares of the Common Stock
into a smaller number of shares of the Common Stock, then, in each such event,
the Purchase Price shall, simultaneously with the happening of such event, be
adjusted by multiplying the then Purchase Price by a fraction, the numerator of
which shall be the number of shares of Common Stock outstanding immediately
prior to such event and the denominator of which shall be the number of shares
of Common Stock outstanding immediately after such event, and the product so
obtained shall thereafter be the Purchase Price then in effect. The Purchase
Price, as so adjusted, shall be readjusted in the same manner upon the happening
of any successive event or events described herein in this subsection 5.4. The
holder of this Warrant shall thereafter, on the exercise hereof as provided in
section 1, be entitled to receive that number of shares of Common Stock
determined by multiplying the number of shares of Common Stock which would
otherwise (but for the provisions of this subsection 5.4) be issuable on such
exercise by a fraction of which (i) the numerator is the Purchase Price which
would otherwise (but for the provisions of this subsection 5.4) be in effect,
and (ii) the denominator is the Purchase Price in effect on the date of such
exercise.

                  5.5. EXCLUDED SHARES. Section 5.1 shall not apply to the
                       ---------------
issuance of shares of Common Stock, or options therefor, to directors, officers
and employees of the Company pursuant to any stock options, stock purchase,
stock ownership or compensation plan approved by the Company's Board of
Directors, provided that the aggregate number of shares, and options therefor,
so issued to directors, officers and employees after the date of the Agreement
does not exceed 500,000.
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                                       6

         6. NO DILUTION OR IMPAIRMENT. The Company will not, by amendment of its
            -------------------------
Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of the Warrants, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be
necessary or appropriate in order to protect the rights of the holders of the
Warrants against dilution or other impairment. Without limiting the generality
of the foregoing, the Company (a) will not increase the par value of any shares
of stock receivable on the exercise of the Warrants above the amount payable
therefor on such exercise, (b) will take all such action as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid
and nonassessable shares of stock on the exercise of all Warrants from time to
time outstanding, (c) will not issue any capital stock of any class which is
preferred as to dividends or as to the distribution of assets upon voluntary or
involuntary dissolution, liquidation or winding up, unless the rights of the
holders thereof shall be limited to a fixed sum or percentage of par value in
respect of participation in dividends and in any such distribution of assets,
and (d) will not transfer all or substantially all of its properties and assets
to any other person (corporate or otherwise), or consolidate with or merge into
any other person or permit any such person to consolidate with or merge into the
Company (if the Company is not the surviving person), unless such other person
shall expressly assume in writing and will be bound by all the terms of the
Warrants.

         7. ACCOUNTANTS' CERTIFICATE AS TO ADJUSTMENTS. In each case of any
            ------------------------------------------
adjustment or readjustment in the shares of Common Stock (or Other Securities)
issuable on the exercise of the Warrants, the Company at its expense will
promptly cause independent certified public accountants of recognized standing
selected by the Company to compute such adjustment or readjustment in accordance
with the terms of the Warrants and prepare a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based, including a statement of (a) the
consideration received or receivable by the Company for any additional shares of
Common Stock (or Other Securities) issued or sold or deemed to have been issued
or sold, (b) the number of shares of Common Stock (or Other Securities)
outstanding or deemed to be outstanding, and (c) the Purchase Price and the
number of shares of Common Stock to be received upon exercise of this Warrant,
in effect immediately prior to such issue or sale and as adjusted and readjusted
as provided in this Warrant. The Company will forthwith mail a copy of each such
certificate to each holder of a Warrant, and will, on the written request at any
time of any holder of a Warrant, furnish to such holder a like certificate
setting forth the Purchase Price at the time in effect and showing how it was
calculated.

         8. NOTICES OF RECORD DATE, ETC.  In the event of
            ---------------------------------------------

                         (a)  any taking by the Company of a record of the
         holders of any class or securities for the purpose of determining the
         holders thereof who are entitled to receive any dividend or other
         distribution, or any right to subscribe for, purchase or otherwise
         acquire any shares of stock of any class or any other securities or
         property, or to receive any other right, or

                         (b)  any capital reorganization of the Company, any
         reclassification or recapitalization of the capital stock of the
         Company or any transfer of all or substantially all the assets of the
         Company to or consolidation or merger of the Company with or into any
         other person, or

                         (c)  any voluntary or involuntary dissolution,
         liquidation or winding-up of the Company,

then and in each such event the Company will mail or cause to be mailed to each
holder of a Warrant a notice specifying (i) the date on which any such record is
to be taken for the purpose of such dividend, distribution or right, and stating
the amount and character of such dividend, distribution or right, and (ii) the
date on which any such reorganization, reclassification, recapitalization,
transfer, consolidation, merger, dissolution, liquidation or winding-up is to
take place, and the time, if any is to be fixed, as of which the holders of
record of Common Stock (or Other Securities) shall be entitled to exchange their
shares of Common Stock (or Other Securities) for securities or other property
deliverable on such reorganization, reclassification, recapitalization,
transfer, consolidation, merger, dissolution, liquidation or winding-up. Such
notice shall be mailed at least 20 days prior to the date specified in such
notice on which any such action is to be taken.
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                                       7

         9.  RESERVATION OF STOCK, ETC., ISSUABLE ON EXERCISE OF WARRANTS. The
             ------------------------------------------------------------
Company will at all times reserve and keep available, solely for issuance and
delivery on the exercise of the Warrants, all shares of Common Stock (or Other
Securities) from time to time issuable on the exercise of the Warrants.

         10. EXCHANGE OF WARRANTS. On surrender for exchange of any Warrant,
             --------------------
properly endorsed, to the Company, the Company at its expense will issue and
deliver to or on the order of the holder thereof a new Warrant or Warrants of
like tenor, in the name of such holder or as such holder (on payment by such
holder of any applicable transfer taxes) may direct, calling in the aggregate on
the face or faces thereof for the number of shares of Common Stock called for on
the face or faces of the Warrant or Warrants so surrendered.

         11. REPLACEMENT OF WARRANTS. On receipt of evidence reasonably
             -----------------------
satisfactory to the Company of the loss, theft, destruction or mutilation of any
Warrant and, in the case of any such loss, theft or destruction of any Warrant,
on delivery of an indemnity agreement or security reasonably satisfactory in
form and amount to the Company or, in the case of any such mutilation, on
surrender and cancellation of such Warrant, the Company at its expense will
execute and deliver, in lieu thereof, a new Warrant of like tenor.

         12. WARRANT AGENT. The Company may, by written notice to each holder of
             -------------
a Warrant, appoint an agent having an office in either Boston, Massachusetts or
New York, New York for the purpose of issuing Common Stock (or Other Securities)
on the exercise of the Warrants pursuant to section 1, exchanging Warrants
pursuant to section 10, and replacing Warrants pursuant to section 11, or any of
the foregoing, and thereafter any such issuance, exchange or replacement, as the
case may be, shall be made at such office by such agent.

         13. REMEDIES. The Company stipulates that the remedies at law of the
             --------
holder of this Warrant in the event of any default or threatened default by the
Company in the performance of or compliance with any of the terms of this
Warrant are not and will not be adequate, and that such terms may be
specifically enforced by a decree for the specific performance of any agreement
contained herein or by an injunction against a violation of any of the terms
hereof or otherwise.

         14. NEGOTIABILITY, ETC. This Warrant is issued upon the following
             ------------------
terms, to all of which each holder or owner hereof by the taking hereof consents
and agrees:

                    (a)  title to this Warrant may be transferred by endorsement
         (by the holder hereof executing the form of assignment at the end
         hereof) and delivery in the same manner as in the case of a negotiable
         instrument transferable by endorsement and delivery;

                    (b)  any person in possession of this Warrant properly
         endorsed is authorized to represent himself as absolute owner hereof
         and is empowered to transfer absolute title hereto by endorsement and
         delivery hereof to a bona fide purchaser hereof for value; each prior
         taker or owner waives and renounces all of his equities or rights in
         this Warrant in favor of each such bona fide purchaser, and each such
         bona fide purchaser shall acquire absolute title hereto and to all
         rights represented hereby; and

                    (c)  until this Warrant is transferred on the books of the
         Company, the Company may treat the registered holder hereof as the
         absolute owner hereof for all purposes, notwithstanding any notice to
         the contrary.

         15. NOTICES, ETC. All notices and other communications from the Company
             ------------ 
to the holder of this Warrant shall be mailed by first class registered or
certified mail, postage prepaid, at such address as may have been furnished to
the Company in writing by such holder or, until any such holder furnishes to the
Company an address, then to, and at the address of, the last holder of this
Warrant who has so furnished an address to the Company.

         16. MISCELLANEOUS. This Warrant and any term hereof may be changed,
             -------------
waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought. This Warrant shall be construed and enforced in accordance with and
governed by the laws of the Commonwealth of Massachusetts. The headings in this
Warrant are for purposes of reference only, and
<PAGE>
 
                                       8

shall not limit or otherwise affect any of the terms hereof. This Warrant is
being executed as an instrument under seal. The invalidity or unenforceability
of any provision hereof shall in no way affect the validity or enforceability of
any other provision.

         17. EXPIRATION; AUTOMATIC EXERCISE. The right to exercise this Warrant
             ------------------------------
shall expire at 5:00 P.M., Boston time, on the later of (i) October 31, 2006 or
(ii) at such time as all principal and interest on the Notes (as defined in the
Agreement) is paid in full. Notwithstanding the foregoing, this Warrant shall
automatically be deemed to be exercised in full pursuant to the provisions of
subsection 1.4 hereof, without any further action on behalf of the holder
hereof, immediately prior to the time this Warrant would otherwise expire
pursuant to the preceding sentence.

Dated:  October 15, 1998               CANDELA CORPORATION


                                       By_______________________________________
                                       F. Paul Broyer, Chief Financial Officer