|Second 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 on the 1st day of April 2007:


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


     2.    
          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 **.
| | ---------------------------------------------------------------------------------------------------------------------------------------------

|3.    
          Article VI.A is hereby amended to replace subsection 1 in its entirety with the
          following:
|---------------------------------------------------------------------------------------------------------------------

| | JJC
and Palomar agree that JJC has made all required prior POP Payments to Palomar and that
during the remainder of the POP Period, JJC shall pay to Palomar as follows:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a)    
          On or before ** a payment of **; and
| | -----------------------------------------------------

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

|
|

| | b)    
          On or before ** a payment of **.
| | -------------------------------------------------

|                                   | 
|---------------------------------- | 
|PALOMAR MEDICAL TECHNOLOGIES, INC. | 
|/s/ Joseph P. Caruso               | 
|Name: Joseph P. Caruso             | 
|Title:  CEO                        | 
|Date: May 7, 2007                  | 

|                                                                                                                                     | 
|------------------------------------------------------------------------------------------------------------------------------------ | 
|JOHNSON & JOHNSON CONSUMER COMPANIES, INC., acting through its division  JOHNSON & JOHNSON CONSUMER & PERSONAL PRODUCTS WORLDWIDE
.. | 
|/s/ Peter Luther                                                                                                                     | 
|Name: Peter Luther                                                                                                                   | 
|Title: President of Beauty Care North America                                                                                        | 
|Date: May 7, 2007                                                                                                                    | 

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

|Appendix E, Exhibit D
|---------------------

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

|
|