| AMENDMENT TO THE PALOMAR MEDICALTECHNOLOGIES, INC. 2007 STOCK INCENTIVEPLAN 

Whereas, pursuant to Section 2 of the2007 Stock Incentive Plan (the “Plan”), the Board of Directors of PalomarMedical Technologies, Inc. (the “Company”) determined that the followingnon-material amendments to the Plan were needed for the administration of the Plan inorder to clarify how the number of shares of Company stock underlying Stock AppreciationRight (“SAR”) Awards are counted prior to and upon exercise or other terminationof SAR Awards and how shares of stock are counted if surrendered in satisfaction of anytax withholding obligation. 

Now, Therefore, effective as ofOctober 9, 2009, Section 3(a) of the Plan is hereby amended and replaced with thefollowing: 

Shares Issuable.  The maximumnumber of shares of Stock with respect to which Awards (including Stock AppreciationRights) may be granted under the Plan shall be 1,000,000.  For purposes of thislimitation, the shares of Stock underlying any Awards which are forfeited, cancelled,reacquired by the Company or otherwise terminated (other than by exercise, includingshares surrendered in satisfaction of any tax withholding obligation) shall be added backto the shares of Stock with respect to which Awards may be granted under the Plan so longas the participants to whom such Awards had been previously granted received no benefitsof ownership of the underlying shares of Stock to which the Awards related.  Forpurposes of clarity with respect to Stock Appreciation Rights, only shares of Stockactually issued to participants (including shares surrendered in satisfaction of any taxwithholding obligation) upon the exercise of a Stock Appreciation Right shall countagainst this limitation, and at the time of such exercise all other shares of Stocksubject to a Stock Appreciation Right shall be added back to the shares of Stock withrespect to which Awards may be granted under the Plan.  Subject to such overalllimitation, any type or types of Award may be granted with respect to shares, includingIncentive Stock Options.  Shares issued under the Plan may be authorized but unissuedshares or shares reacquired by the Company. |
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