|First Amendment to the
September 7, 2004 Joint Development and License Agreement Between Palomar MedicalTechnologies,
Inc. and Johnson & Johnson Consumer Companies, Inc. (the Agreement)


Whereas, pursuant to the
Agreement, the parties are engaged in a collaboration to develop, clinically test and
potentially commercialize home-use, light-based devices for (i) reducing or reshaping body
fat including cellulite; (ii) reducing appearance of skin aging; and (iii) reducing or
preventing acne; and


Whereas, the parties desire to
modify certain provisions of the Agreement in order to **.


Now, Therefore,in
consideration of the foregoing premises, the mutual promises and covenants of the parties
contained herein, and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto, intending to be legally bound, do
hereby agree as follows effective this 1st day of May 2006:


     1.    
          Appendix E to the Agreement is hereby amended to include new Exhibit C attached
          hereto.


     2.    
          Article III E.1 is hereby amended to replace subsection e) in its entirety with
          the following:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Final POP Completion shall be within ** from the beginning of the R&D Period. If
Palomar is unable to complete the POP Completion Deliverables for any Initial Product by
such deadline, then although Palomar shall not be in breach of this Agreement, Palomar
shall be obligated to continue to work on such POP Completion Deliverables, but in any
case no more than an additional ** and JJC shall have no further obligation to make any
additional POP Payments for such additional **. If Palomar is unable to complete the POP
Completion Deliverables for any Initial Product within such additional **, then the POP
Period will be deemed completed and the end of such additional ** period shall be the
Final POP Completion. JJC may, by written notice to Palomar at least ** before the Final
POP Completion, extend the POP Period for up to **, PROVIDED
(i) JJC shall pay Palomar additional POP Payments for any such extension (which
payments shall be paid to Palomar pro rata if the extension is not exactly equal to **),
and (ii) the R&D Committee shall agree on an extension to the R&D Plan.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.    
          Article III E.2.a is hereby amended to replace the first sentence with the
          following:

| | Within
** of the Final POP Completion (the "**), the Parties shall negotiate and
agree upon an R&D Plan for the Optimization Period (the Optimization
Document) for all ** Initial Products, which Optimization Period ends on a date
designated the Optimization Completion Date in such Optimization
Document, unless JJC notifies Palomar in writing before the end of the ** that JJC
declines to go forward with such Initial Product.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4.    
          Article III E.2.b is hereby amended to replace the first sentence with the
          following:

| | In
the event that any ** or JJC Consideration Period for an Initial Product extends beyond
the date ** after the start of the R&D Program (**.
| | ----------------------------------------------------------------------------------------------------------------------------------------------

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

|5.    
          Article VI.A is hereby amended to replace subsection 1 in its entirety with the
          following:


During
the POP Period, JJC shall pay to Palomar **, payable as follows:


     a)    
          On or before the ** of the POP Period, a POP Payment of **;


     b)    
          On or before the first day of the ** of the POP Period **;


     c)    
          On or before the first day of ** of the POP Period a Final POP
          Payment of **; and
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | which
first POP Payment and Final POP Payment shall be adjusted, as appropriate, in equal
amounts to reflect the beginning and end of the POP Period in relation to Calendar
Quarters, and which first POP Payment shall be paid by JJC on or before the POP Period
begins.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | **
In the event that this Agreement is terminated by Palomar pursuant to ARTICLE X, JJC shall
be obligated to pay Palomar all remaining POP Payments on the schedule set forth herein.
In the event that this Agreement is terminated by JJC pursuant to ARTICLE X.B.2 or ARTICLE
X.C.1 before the Final POP Payment becomes due, JJC shall have no further obligation from
and after the date on which JJC provides to Palomar written notice of such termination to
pay Palomar any additional POP Payments.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                   | 
|---------------------------------- | 
|PALOMAR MEDICAL TECHNOLOGIES, INC. | 
|                                   | 
|______________________________     | 
|Name: Joseph P. Caruso             | 
|Title:  CEO                        | 

|                                                                                                                                | 
|------------------------------------------------------------------------------------------------------------------------------- | 
|JOHNSON & JOHNSON CONSUMER COMPANIES, INC., acting through its divisionJOHNSON & JOHNSON CONSUMER & PERSONAL PRODUCTS WORLDWIDE | 
|                                                                                                                                | 
|______________________________                                                                                                  | 
|Name:                                                                                                                           | 
|Title:                                                                                                                          | 

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

|Appendix E, Exhibit C
|---------------------

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

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