|Fifth Amendment to the September
7, 2004 Joint Development and License Agreement Between Palomar Medical Technologies, 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 **; and


Whereas, the parties desire to modify
certain provisions of the Agreement in order to Allow JJC to terminate the Agreement after
the Optimization Period.


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 on the 1st day of April 2009 for items 1, 2, and 4,
below and on the 1st day of December 2008 for items 3 and 5, below:



1. **


     2.    
          ARTICLE III.E.3 is hereby amended and replaced with the following:


     3.       
          Optimization Period.
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| | a)       
               JJC shall fund Palomars efforts during the Optimization Period with
               Optimization Payments paid on a Calendar Quarterly basis. As of the Effective
               Date, the Parties believe that the Optimization Payments set forth in
               Appendix F, and as defined in ARTICLE VI.A.3, reflect a reasonable
               estimate of the costs to complete the Optimization Period for the ** Initial
               Products that enter into the Optimization Period. The cost of the activities to
               be conducted by Palomar during the Optimization Period is a rough estimation and
               not final. The Optimization Payments, as mutually agreed to during the ** for
               each Initial Product as provided in ARTICLE III.E.2.a) and as provided for in
               the R&D Plan, shall be fixed and final, subject only to changes thereto by
               the R&D Committee thereafter as provided in ARTICLE III (taking into account
               ARTICLE III.C.4.c)). **
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b)       
               During the Optimization Period, **Palomar shall work to complete the
               deliverables to be set forth in the R&D Plan, as modified for the
               Optimization Period, for each Initial Product that enters the Optimization
               Period. Palomar shall notify JJC in writing of the date of its completion of the
               Optimization Period for each such Initial Product.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|
|

| | c)                        The
Optimization Period shall end on the Optimization Completion Date**
| | -------------------------------------------------------------------------------------------------

|3.    
          Article VII.A. is hereby amended and replaced with the following:
|----------------------------------------------------------------------------------

| | A.       
               Confidential Information. Confidential Information (as defined below) of
               a disclosing Party shall be safeguarded by the receiving Party with the same
               degree of care that the receiving Party exercises with respect to its own
               information of a like nature (but in no event less than reasonable care), shall
               not be disclosed to Third Parties and shall be made available only to the
               receiving Partys employees, agents and subcontractors who agree in writing
               to equivalent conditions and who have a need to know the information for the
               purposes specified under this Agreement. The receiving Party shall acquire only
               such rights in the disclosing Partys Confidential Information as are
               expressly set forth in this Agreement and only for as long as such rights are in
               effect, and shall not use any of the disclosing Partys Confidential
               Information for any purpose other than as permitted under this Agreement. All
               Confidential Information shall remain the property of the disclosing Party. Each
               Party shall promptly report to the other any conduct relating to the other
               Partys Confidential Information inconsistent with the provisions of this
               ARTICLE VII, and take such action as may be reasonably necessary and legally
               permissible to terminate such conduct. Each Party agrees to reproduce and
               include the other Partys proprietary rights notices or reasonable
               equivalents on any item that contains the other Partys Confidential
               Information. Each Party shall be free to disclose its own Confidential
               Information in its sole discretion. For clarity, JJC shall not disclose to any
               of its Affiliates, or allow any of its Affiliates to have access to, any
               Confidential Information of Palomar, unless such Affiliates is made subject to
               the terms of this Agreement as provided for in ARTICLE XI.C. **
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.    
          Article X.D is hereby amended and replaced with the following:
|-------------------------------------------------------------------------------

| | D.       
               JJCs Right to Terminate for Convenience. JJC shall have the right
               to terminate this Agreement in full, or on a Field-by-Field basis, (1) upon
               written notice to Palomar specifying the scope of the termination and received
               by Palomar between the Final POP Completion and the end of the JJC Consideration
               Period for the affected Field(s), or (2) at any time after the Optimization
               Completion Date for all Initial Products for the affected Field(s) upon ** prior
               written notice, which notice may be received by Palomar up to ** prior to the
               applicable Optimization Completion Date.  Neither Party shall have any other right to terminate this Agreement for convenience.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|
|

|5.    
          Article XI.C is hereby amended and replaced with the following:



**
|--------------------------------------------------------------------------------------

|                                   | 
|---------------------------------- | 
|PALOMAR MEDICAL TECHNOLOGIES, INC. | 
|                                   | 
|/s/ Joseph P. Caruso               | 
|Name: Joseph P. Caruso             | 
|Title:  CEO                        | 
|Date: 6/29/09                      | 

|                                                                                                                                 | 
|-------------------------------------------------------------------------------------------------------------------------------- | 
|JOHNSON & JOHNSON CONSUMER COMPANIES, INC., acting through its division JOHNSON & JOHNSON CONSUMER & PERSONAL PRODUCTS WORLDWIDE | 
|                                                                                                                                 | 
|/s/ Stefano Curti                                                                                                                | 
|Name: Stefano Curti                                                                                                              | 
|Title: President                                                                                                                 | 
|Date: June 26, 2009                                                                                                              | 

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

|Exhibit A
|---------

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

|Exhibit B
|---------

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

|
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