|FIFTH AMENDMENT MGH Agt. No. 2006A20842


This
is a Fifth Amendment to the License Agreement between and The General Hospital
Corporation, a not-for-profit corporation doing business as Massachusetts General
Hospital, having a principal place of business at Fruit Street, Boston, Massachusetts
02114 (General) and Palomar Medical Technologies, Inc., a Delaware
corporation, having a principal place of business at 82 Cambridge Street, Burlington,
Massachusetts 01803 (Palomar) (collectively, the Parties), dated
August 18, 1995 (the License Agreement).


WHEREAS,
Paragraph 5.1(b)(ii) of the License Agreement provides that Palomar and General are to
negotiate in good faith a commercially reasonable royalty to be paid by Palomar to General
for Products sold for hair removal as well as other uses;


WHEREAS,
Palomar has developed the NeoLux Pulsed-Light System and associated hand pieces, EsteLux
Pulsed-Light System and associated hand pieces, the MediLux Pulsed-Light System and
associated hand pieces and the StarLux Pulsed-Light and Laser System and associated hand
pieces for hair removal and other applications, and the Parties have agreed to
commercially reasonable royalty rates to be paid by Palomar to General on Palomars
sales of NeoLux, EsteLux, MediLux and StarLux systems and the associated hand pieces under
Paragraph 5.1(b)(ii) of the License Agreement;


For
good and valuable consideration General and Palomar hereby agree to amend the License
Agreement as provided herein, effective March 1, 2006 (Amendment Effective
Date). From and after the Amendment Effective Date, all references in the License
Agreement shall be deemed to be references to such License Agreement as amended hereby.

Paragraph 5. ROYALTIES; LICENSE FEES
In Paragraph 5.1(b), replace in its
entirety subparagraph (x), which was introduced in the Fourth Amendment to the License
Agreement effective June 1, 2000, with the following new subparagraph (x):
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(x) | 
|--- | 

| | (1)          For
each NeoLux base system and each EsteLux base system sold by PALOMAR or its
          AFFILIATES, **;
| | ----------------------------------------------------------------------------------------------------------------------

| | (2)        For
each MediLux base system sold by PALOMAR or its AFFILIATES, **;
| | ------------------------------------------------------------------------------

|**Omitted
pursuant to request for confidential treatment by Palomar Medical Technologies, Inc. and
filed separately with the SEC.
|---------------------------------------------------------------------------------------------------------------------------------

| | (3)
For each LuxY handpiece for use with a NeoLux, EsteLux, or MediLux base system
                    sold by PALOMAR or its AFFILIATES, **;
| | ---------------------------------------------------------------------------------------------------------------------------------------------

| | (4) For
each StarLux base system and LuxY handpiece for use with a StarLux base
                    system sold by PALOMAR or its AFFILIATES **; and
| | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | (5)
For each LuxR and LuxRs handpiece for use with
a NeoLux, EsteLux, MediLux, or                     StarLux base system sold by PALOMAR or
its AFFILIATES, **.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|The
royalty rates enumerated above in Paragraph 5.1(b), Subparagraph (x)(1)-(5) shall apply in
all cases so long as the manufacture, use, or sale of the NeoLux, EsteLux, MediLux and
StarLux systems and LuxY, LuxR and LuxRs hand pieces is covered by a VALID CLAIM of any
PATENT RIGHT or ADDITIONAL PATENT RIGHT licensed exclusively in the LICENSE FIELD to
Palomar in the country in question.


It
is the intent of the Parties that upon executing this Fifth Amendment, the royalty rates
mutually agreed upon herein will be fixed for the commercial life of the NeoLux, EsteLux,
MediLux and StarLux systems and the LuxY, Lux R and LuxRs hand pieces. The Parties further
acknowledge that these royalty rates will apply only within the LICENSE FIELD of
hair reduction and/or hair removal, as defined in the original License
Agreement dated August 18, 1995.


Terms
not otherwise defined herein shall have the meaning given to them in the License
Agreement. Except as amended by the First, Second, Third and Fourth Amendments, effective
August 18, 1995, February 17, 1997, November 17, 1997, and June 1, 2000, respectively, and
this Fifth Amendment, the License Agreement shall remain in effect in accordance with its
terms.


**Omitted
pursuant to request for confidential treatment by Palomar Medical Technologies, Inc. and
filed separately with the SEC.REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                           | 
|---------------------------------------------------------- | 
|Agreed to:                                                 | 
|                                                           | 
|PALOMAR MEDICAL TECHNOLOGIES, INC.                         | 
|                                                           | 
|By:/s/ Joseph P. Caruso                                    | 
|Name:  Joseph P. Caruso                                    | 
|Title:  CEO                                                | 
|Date: 3/20/06                                              | 
|                                                           | 
|THE GENERAL HOSPITAL CORPORATION                           | 
|                                                           | 
|By:/s/ Frances Toneguzzo                                   | 
|Name: Frances Toneguzzo Ph.D.                              | 
|Title:  Director, Corporate Sponsored Research & Licensing | 
|Date: 3/13/06                                              | 
|                                                           | 

|
|