|THIRD
AMENDMENT TO LEASE


This
Third Amendment to Lease is made and entered into as of the 30th day of July, 2007 by and
between Northland Cambridge Street LLC, successor-in-interest to 80
Cambridge Street, LLC(Landlord) and Palomar Medical Technologies, Inc.
(Tenant).


WHEREAS,
Landlord and Tenant are parties to that certain Commercial Lease dated June 17, 1999, as
amended by First Amendment to Lease dated as of March 20, 2000 and by Second Amendment to
Lease dated as of January 18, 2006 (collectively, the Lease), with respect to
certain premises consisting of approximately 55,450 rentable square feet (the 82
Cambridge Street Premises) in, and comprising the entire rentable area of, the
building located at and known as 82 Cambridge Street, Burlington, Massachusetts;


WHEREAS,
Tenant desires to lease the entire rentable area of the building owned by Landlord and
located at and known as 80 Cambridge Street, Burlington, Massachusetts (the 80
Cambridge Street Building); and


WHEREAS,
Landlord is willing to lease the entire rentable area of the 80 Cambridge Street Building
to Tenant upon the terms and conditions hereinafter set forth.


NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Landlord and Tenant hereby agree as follows (capitalized terms used
herein without definition shall have the meanings ascribed to them in the Lease):


1.        Landlord
hereby demises and leases to Tenant, and Tenant hereby accepts from           Landlord,
the entire rentable area of the 80 Cambridge Street Building           containing
approximately 13,600 rentable square feet, substantially as shown on           the plan
attached hereto as Exhibit A and made a part hereof (the           80
Cambridge Street Premises) for a term commencing as of October 1,           2007
and expiring on August 31, 2009. The demise of the 80 Cambridge Street           Premises
shall otherwise be upon and governed by all of the terms and conditions           of the
Lease (as hereby amended)applicable to the demise of the 82           Cambridge
Street Premises, except as follows or as otherwise provided in this           Amendment:
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| | A.                        The
Base Rent payable in respect of the 80 Cambridge Street Premises shall be
          $136,000.00 per year (i.e., $11,333.33 per month).
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| | B.                        Tenant
shall pay to Landlord, as additional rent, Tenants share (i.e.,           100%) of
the real estate taxes levied against the 80 Cambridge Street Building           and the
land on which it is situated during the term of the Lease in respect of           the 80
Cambridge Street Premises. For the avoidance of doubt, Tenant shall pay           its
share of real estate taxes without regard to Base Taxes (i.e., Base Taxes           are
considered to be zero for purposes hereof).
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| | C.                        Tenant
shall pay to Landlord, as additional rent, Tenants share (i.e.,           100%) of
the Operating Costs with respect to the 80 Cambridge Street Building           during the
term of the Lease in respect of the 80 Cambridge Street Premises. For           the
avoidance of doubt, Tenant shall pay its share of such Operating Costs           without
regard to Base Operating Costs (i.e., Base Operating Costs are           considered to be
zero for purposes hereof).
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| | D.                        Landlord
shall have no obligation to provide any utilities or services in           connection
with Tenants demise of the 80 Cambridge Street Premises, except           that
Landlord shall, at Tenants expense, provide snow and ice removal from           the
walkways and parking areas serving the 80 Cambridge Street Building and
          landscaping and lawn cutting. Except as provided above, Tenant shall contract
          and pay directly for all utilities and services for the 80 Cambridge Street
          Premises, including, without limitation, heat, air conditioning, water and
sewer           service, trash removal, security, cleaning and janitorial services.
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| | E.                        Tenant
shall have the right to use the parking facilities serving the 80           Cambridge
Street Building during the term of the Lease in respect of the 80           Cambridge
Street Premises on an unreserved unallocated basis. The second, third           and
fourth sentences of Section 16 of the Lease shall not apply to the demise of
          the 80 Cambridge Street Premises.
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| | F.                        Tenant
shall not install any signage in or on the 80 Cambridge Street Premises,           80
Cambridge Street Building or the land on which it is situated without           Landlords
prior written consent in each instance obtained.
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| | G.                        The
provisions of Sections 34, 35, 36, 37 and 38 of the Lease shall not apply to
          the demise of the 80 Cambridge Street Premises.
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| | H.                        Tenant
acknowledges and agrees that it has had an opportunity to inspect the 80
          Cambridge Street Premises and that it is taking and leasing the 80 Cambridge
          Street Premises as-is, without any obligation on the part of
          Landlord to prepare or construct the 80 Cambridge Street Premises for
          Tenants use or occupancy or to provide any allowance or contribution with
          respect thereto. Tenant further acknowledges and agrees that Landlord has made
          no representation or warranty as to the condition of the 80 Cambridge Street
          Premises and that it is relying upon its own inspection of the 80 Cambridge
          Street Premises in entering into this Amendment. To the extent and insofar as
          there is any work required to prepare the 80 Cambridge Street Premises for
          Tenants occupancy, the same shall be performed by Tenant at its sole cost
          and expense in accordance with plans and specifications therefor prepared by
          (and at the expense of) Tenant and approved by Landlord and otherwise in
          accordance with and subject to the terms and provisions of the Lease.
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|2.       
          In addition to the security deposit which Landlord is currently holding under
          the Lease, Tenant shall, at the time that Tenant executes and delivers this
          Amendment to Landlord, deliver to Landlord an additional security deposit (the
          Additional Security Deposit) in the amount of $13,600.00, to be held
          by Landlord as additional security for Tenants obligations under the
          Lease, as hereby amended. The Additional Security Deposit shall otherwise be
          held by Landlord subject to and in accordance with the applicable terms and
          conditions of Section 2 of the Lease.








3.       
          If Tenant timely and properly exercises its right to extend the term of the
          Lease as provided in the Lease, such extension shall apply to both
          the 82 Cambridge Street Premises and the 80 Cambridge Street Premises. The
          demise of the 82 Cambridge Street Premises and the 80 Cambridge Street Premises
          for the extension term shall be upon the terms and conditions of the Lease (as
          hereby amended) in effect immediately preceding the commencement of the
          extension term and applicable to the 82 Cambridge Street Premises and the 80
          Cambridge Street Premises (respectively), except that the Base Rent shall be
          determined in accordance with the provisions.


     4.       
          Rent and other charges payable under the Lease (as hereby amended), in respect
          of both the 82 Cambridge Street Premises and the 80 Cambridge Street Premises,
          shall hereafter be sent by Tenant to Landlord c/o Northland Investment
          Corporation, P.O. Box 845978, Boston, MA 02284-5978, or to such other place as
          Landlord shall hereafter from time to time in writing designate. Landlords
          notice address as set forth in Section 22 of the Lease is hereby changed to be:
          c/o Northland Investment Corporation, 2150 Washington Street, Newton, MA 02462.


     5.       
          The following new Section 40 is hereby inserted in the Lease after Section 39
          thereof and shall apply to Tenants demise of the 82 Cambridge Street
          Premises and the 80 Cambridge Street Premises:
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| | LESSEE
specifically agrees to look solely to LESSORs interest in the building at the time
owned for recovery of any judgment from LESSOR; it being specifically agreed that in no
event shall any of the direct or indirect officers, trustees, directors, partners,
beneficiaries, joint venturers, members, stockholders or other principals or
representatives, and the like, disclosed or undisclosed, of LESSOR ever be personally
liable for any such judgment, or other liability or for the payment of any monetary
obligation to LESSEE; and in no event shall LESSOR (original or successor) or any such
officers, etc., as aforesaid, ever be liable to LESSEE for any lost profits or indirect or
consequential damages suffered by LESSEE from whatever cause.
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|6.       
          Tenant warrants that it has had no dealings with any broker or agent in
          connection with the negotiation or execution of this Amendment other than
          Northland Investment Corporation (Northland). Tenant agrees to
          indemnify Landlord and hold Landlord harmless from and against any and all
          costs, expenses or liability for commissions or other compensation or charges
          claimed by or awarded to any broker or agent (other than Northland) who dealt
          with Tenant with respect to this Amendment.


     7.       
          Except as amended hereby, all of the terms and provisions of the Lease are
          hereby ratified, confirmed and approved in all respects.


IN
WITNESS WHEREOF, the parties hereto have executed this Amendment under seal as of the day
and year first above written.
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| |                               
| | ------------------------------
| | LANDLORD:                     
| |                               
| | NORTHLAND CAMBRIDGE STREET LLC
| |                               
| | By: /s/ Mark P. Consoli       
| | Name: Mark P. Consoli         
| | Title: Treasurer              

| |                                   
| | ----------------------------------
| | TENANT:                           
| |                                   
| | PALOMAR MEDICAL TECHNOLOGIES, INC.
| |                                   
| | By:/s/ Paul S. Weiner             
| | Name: Paul S. Weiner              
| | Title: Chief Financial Officer    

|EXHIBIT A


PLAN SHOWING
LOCATION OF 80 CAMBRIDGE STREET PREMISES
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