| **Exhibit 10.17**

EMPLOYMENT AGREEMENT 

        THISEMPLOYMENT AGREEMENT (“Agreement”) entered into as of this 1st day ofJuly, 2001 between Palomar Medical Technologies, Inc., a Delaware corporation (the“Company”), and Joseph P. Caruso, an individual (the“Executive”), 

WITNESSETH THAT:

        WHEREAS,the Company desires to employ Executive as its President and Chief Operating Officer forthe period and upon and subject to the terms herein provided; and 

        WHEREAS,the Company desires to be assured that Executive will not compete with the Company for theperiod and within the geographical areas hereinafter specified; and 

        WHEREAS,Executive is willing to agree to be employed by the Company for the period and upon andsubject to the terms herein provided; and 

        WHEREAS,Executive does not desire to work for the Company in a position lower than that ofPresident and Chief Operating Officer and is willing to agree not to compete with theCompany; 

        NOW,THEREFORE, in consideration of the premises, the parties hereto covenant and agree asfollows: 

        Section1. Term of Employment; Compensation. The Company agrees to employ Executivefrom July 1, 2001 until June 30, 2003 (the “Term”) as its President and ChiefOperating Officer, with the responsibilities normally associated with such position (the“ExecutivePosition”). The Company will pay Executive for hisservices during the term of his employment hereunder at an annual rate of Two HundredFifty Thousand Dollars ($250,000.00) subject to increases thereafter as determined by theCompany’s Board of Directors and Compensation Committee, payable in arrears, in equalinstallments, in accordance with standard Company practice, but in any event not lessoften than monthly, subject only to such payroll and withholding deductions as arerequired by law. Thereafter, this Agreement shall be automatically renewed for successiveperiods of two (2) years, unless you or the Company shall give the other party not lessthan three (3) months prior written notice of non-renewal. 

        Section2. Office and Duties. Executive shall have the usual duties, responsibilitiesand authority (the “Executive’s Authority”) of a President and ChiefOperating Officer, and shall report to the Company’s Chief Executive Officer, andshall perform such specific other tasks, consistent with his position as President andChief Operating Officer, as may from time to time be assigned to him by the ChiefExecutive Officer. Executive shall devote substantially all of his business time, labor,skill, undivided attention and best ability to the performance of his duties hereunder.Executive may not, without Executive’s consent, be required to performExecutive’s duties at any location that is more than fifty (50) miles from theCompany’s principal office in Burlington, Massachusetts, except that Executive agreesthat he will travel to whatever extent is reasonably necessary in the conduct of theCompany’s business. 

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        Section3. Business Expenses. Executive shall be entitled to reimbursement for expensesincurred by him in connection with the performance of his duties hereunder upon receipt ofvouchers therefor in accordance with such procedures as the Company has heretofore or mayhereafter establish. The Company will reimburse you for automobile expenses during theterm of this Agreement. 

        Section4. Vacation During Employment. Executive shall be entitled to such reasonablevacations as may be allowed by the Company in accordance with general practices to beestablished, but in any event not less than four (4) weeks during each twelve (12) monthperiod. 

        Section5. Additional Benefits. The Company shall make available to Executive at leastthose perquisites presently granted to Executive. Nothing herein contained shall precludeExecutive, to the extent he is otherwise eligible, from participation in all groupinsurance programs or other fringe benefit plans which the Company may hereafter in itssole and absolute discretion make available generally to its employees, but the Companyshall not be required to establish or maintain any such program or plan. 

        Section6. Termination by the Company. The Company shall have the right to terminateExecutive’s employment at any time for “Cause”. For purposes of thisAgreement, “Cause” shall mean (a) termination by action of a majority ofthe members of the Company’s Board of Directors, acting on the written opinion ofcounsel, because of Executive’s willful and continued refusal, without proper cause,to perform substantially Executive’s duties under this Agreement; or (b) theconviction of Executive of a felony or an act of fraud or embezzlement against the Companyor any of its divisions, subsidiaries of affiliates (which through lapse of time orotherwise is not subject to appeal). Such termination shall be effected by written noticethereof, personally hand delivered by the Company to Executive, and, except as hereinafterprovided, shall be effective as of the thirtieth (30th) calendar day after such notice;provided, however, that if within such thirty (30) calendar day period Executive shallcease Executive’s refusal and shall use Executive’s best efforts to perform suchobligations, the termination shall not be effective. 

        Section7. Termination by Death. In the event Executive dies during the Term,Executive’s employment shall terminate (effective on the date of Executive’sdeath) and the provisions of Section 10 shall be applicable. 

        Section8. Termination by Disability. In the event that Executive suffers a disabilitywhich prevents Executive from substantially performing Executive’s duties under thisAgreement for a period of at least one hundred eighty (180) consecutive or nonconsecutivecalendar days within any three hundred sixty-five (365) calendar day period, the Companyshall have the right, after such one hundred eighty (180) calendar day period has elapsed,to terminate Executive’s employment hereunder upon thirty (30) calendar days writtennotice to Executive and the provisions of Section 10 shall be applicable. 

        Section9.Termination by Executive. Notwithstanding any other provisions of thisAgreement, Executive may terminate Executive’s employment either (i) in the event ofa “Change in Control” or (ii) by written notice served upon the Companywithin thirty (30) calendar days after Executive has knowledge of an event constituting“Good Reason.” 

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        Forpurposes of this Agreement, “Change in Control” shall be deemed to be(i) the sale of all or substantially all of the assets of the Company; (ii) anyperson, together with its affiliates and associates (as defined in Rule 12b-2 under theSecurities Exchange Act of 1934, or any successor rule thereto) shall become thebeneficial owner (as defined in Rule 13d-3 under the Securities Exchange Act), includingby merger or otherwise, of more than fifty percent (50%) of the total voting power of allclasses of voting stock of the Company; or (iii) that any person, together with itsaffiliates and associates (as defined in Rule 12b-2 under the Securities Exchange Act of1934, or any successor rule thereto) has succeeded as the result of or in response toactual or threatened election contests, whether by settlement or otherwise, in havingelected to the Board of Directors of the Company, whether at one time or on a cumulativebasis, a sufficient number of nominees to constitute (x) more than thirty percent (30%) ofthe members of the Company’s Board of Directors, rounded down to the nearest wholenumber, if the number of directors on the Company’s Board is eight or less, or(y) more than forty percent (40%) of the members of the Company’s Board, roundeddown to the nearest whole number, if the number of directors on the Company’s Boardis nine or more. 

        Forpurposes of this Agreement, the term “Good Reason” shall mean: 

    (i)                 any action by the Company which results in a diminution in the Executive          Position or in the Executive’s Authority; 

    (ii)                 any failure by the Company to timely pay the amounts or provide the benefits          described in this Agreement, other than an isolated failure not occurring in bad          faith and which is remedied promptly after receipt of written notice thereof          given by Executive; or 

    (iii)                 a material breach by the Company of any of the provisions of this Agreement          which failure or breach shall have continued for thirty (30) days after written          notice from Executive to the Company specifying the nature of such failure or          breach; or 

    (iv)                 any action by the Company that would result in a violation of Section 2. 

        Section10. Effect of Termination. (a) For Cause; and Death. In the event oftermination of this Agreement (i) by the Company for Cause, or (ii) by reason of the deathof the Executive, the Company shall pay Executive (or Executive’s beneficiary in theevent of the Executive’s death) any base salary or other compensation earned (and apro rata portion of the bonus payable with respect to the year in which terminationoccurred) but not paid to Executive prior to the effective date of such termination and,in the case of termination by reason of death, the Company shall pay Executive’sbeneficiary (i) the base salary that Executive would have earned for a period of one (1)year following his death, plus (ii) a pro rata portion of any bonuses or other incentivecompensation that Executive would have earned if he had been employed for the full fiscalyear in which he died payable at the time of payment of similar bonuses made to otherExecutives of the Company, plus (iii) any death benefits that Executive is entitled tounder the Company’s policies in effect on Executive’s date of death. 

    (b)                 Without Cause; For Good Reason. In the event of (i) termination or          non-renewal of this Agreement by the Company other than for Cause, (ii)          termination of this Agreement by Executive for Good Reason without a Change in          Control, the Company shall pay Executive, in a lump sum within thirty (30) days          after termination under this Section 10(b), the sum of (A) the amount          described in Section 10(a) of this Agreement (other than the payments to          be paid in case of termination by death), and (B) the amount equal to two times          (2x) the Executive’s Annual Compensation in effect at the time of          termination under this Section 10(b), and the Company shall continue all          of the benefits and perquisites set forth in Section 5 for a period of          two (2) years, notwithstanding the fact that Executive may no longer be an          employee eligible to participate in one or more of the employee benefit plans          maintained by the Company. 

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    (c)                 Change in Control. In the event of termination or non-renewal of this          Agreement by Executive or the Company within one (1) year after a Change in          Control, the Company shall pay Executive, in a lump sum payment within thirty          (30) days after termination under this Section 10(c), the sum of (A) the          amount described in Section 10(a) of this Agreement (other than the          payments to be made in case of termination by death), and (B) the amount equal          to three (3x) times Executive’s Annual Compensation, and the Company shall          continue for a period of two (2) years all of the benefits and perquisites set          forth in Section 5, notwithstanding the fact that Executive may no longer          be an employee eligible to participate in one or more of the employee benefit          plans maintained by the Company. 

        Forpurposes of this Section 10(c) of this Agreement the term “Executive’sAnnualCompensation” shall mean (i) the sum of (A) the Executive’sthen-current salary pursuant to Section 1 and (B) any bonus compensation towhich Executive would have been entitled if Executive continued to be employed under thisAgreement or the Executive’s last paid bonus, whichever is higher. 

    (d)                 Disability. In the event of termination of this Agreement by reason of          disability, the Company shall continue to pay Executive’s Annual          Compensation at the time of such termination for a period of one (1) year,          reduced by the maximum amount of salary which may be insured under the          Company’s Long Term Disability Plan at the time of disability. 

        Section11. Acceleration and Expiration of Options. Any options or warrants to purchasecapital stock of the Company (collectively, the “Options”) granted by theCompany to Executive that have not yet become exercisable shall become exercisable uponthe earliest to occur of (a) the termination of Executive’s employment as a result ofExecutive’s death or disability; (b) the termination by Executive with Good Reason;(c) the termination by Executive after a Change in Control; or (d) termination by theCompany without Cause. Notwithstanding the foregoing, all Options, whether currentlyexercisable or not, shall expire and cease to be exercisable as follows: 

    (a)                 if the Company terminates Executive’s employment for Cause, immediately          upon the effective date of such termination; 

    (b)                 if the Company terminates the Executive’s employment without cause or if          Executive terminates Executive’s employment with the Company with Good          Reason or after a Change in Control, ninety (90) days after the effective date          of such termination (but in no event later than the date the Term would expire          without giving effect to any automatic renewal). 

    (c)                 if Executive dies while employed by the Company, six (6) calendar months after          Executive’s death (but in no event later than the date the Term would          expire without giving effect to any automatic renewal); and 

    (d)                 if Executive’s employment is terminated as a result of disability, six (6)          calendar months after the effective date of such termination (but in no event          later than the date the Term would expire without giving effect to any automatic          renewal). 

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        Section12. Excise Tax Make-Whole. In the event it shall be determined that any paymentor distribution by the Company to you or for your benefit, whether paid or payable ordistributed or distributable pursuant to the terms of this Agreement or otherwise (a“Payment”), would be subject to the excise tax imposed by Section 4999 ofthe Internal Revenue Code of 1986, as amended (the “Code”) (or anysuccessor thereto) or comparable state or local tax or any interest or penalties withrespect to such excise tax or comparable state or local tax (such excise tax, togetherwith any such interest and penalties, are hereinafter collectively referred to as the“Excise Tax”), then you shall be entitled to receive an additionalpayment (a “Gross-Up Payment”). The Gross-Up Payment shall be equal tothe sum of the Excise Tax with respect to the Payment and all taxes (including anyinterest or penalties imposed with respect to such taxes) imposed on (or economicallyborne by) you (including the Excise Tax, state and federal income taxes and all applicablewithholding taxes) attributable to the receipt of the Gross-Up Payment. For purposes ofthe preceding sentence, all taxes attributable to the receipt by you of a Gross-Up Paymentshall be computed assuming the application of the maximum tax rates provided by law. 

        Ifthe Company determines that it is required to withhold any Excise Tax or report that anyExcise Tax is due, or if the Company otherwise determines that any Gross-Up Payment isrequired, it shall promptly pay such Gross-Up Payment (net of applicable wagewithholding). 

        Ifyou determine that a Gross-Up Payment is required, you shall so notify the Company inwriting, specifying the amount of Gross-Up Payment required and details as to thecalculation thereof. The Company shall, within 30 days, either pay such Gross-Up Payment(net of applicable wage withholding) to you or furnish an unqualified opinion fromIndependent Tax Counsel (as defined below), addressed to you and the Company, that thereis substantial authority (within the meaning of Section 6661 of the Code) for the positionthat no Gross-Up Payment is required. In that event the Company shall not withhold anyamount of the Excise Tax or take any other action which is inconsistent with such opinionof counsel. “Independent Tax Counsel” means a lawyer with expertise inthe area of executive compensation tax law, who shall be selected by you and shall bereasonably acceptable to the Company, and whose fees and disbursements shall be paid bythe Company. 

        Ifthe Internal Revenue Service or other tax authority proposes in writing an adjustment toyour income tax that would result in a Gross-Up Payment, you shall promptly notify theCompany in writing and shall refrain for at least thirty days after giving such notice, ifso permitted by law, from paying any tax (including interest, penalties and additions totax) asserted to be payable as a result of such proposed adjustment. Before the expirationof such period, the Company shall either pay the Gross-Up Payment or provide an opinionfrom Independent Tax Counsel to you and the Company as to whether it is more likely thannot that the proposed adjustment would be successfully challenged if the matter were to belitigated. If the opinion provides that a challenge would be more likely than not to besuccessful if the issue were litigated, and the Company requests in writing that youcontest such proposed adjustment, then you shall contest the proposed adjustment and shallconsult in good faith with the Company with respect to the nature of all action to betaken in furtherance of the contest of such proposed adjustment; provided that you, aftersuch consultation with the Company, shall determine in your sole discretion the nature ofall action to be taken to contest such proposed adjustment, including (a) whether any suchaction shall initially be by way of judicial or administrative proceedings, or both, (b)whether any such proposed adjustment shall be contested by resisting payment thereof or bypaying the same and seeking, a refund thereof, and (c) if you shall undertake judicialaction with respect to such proposed adjustment, the court or other judicial body beforewhich such action shall be commended and the court or other judicial body to which anyappeals should be taken. You agree to take appropriate appeals of any judicial decisionthat would require the Company to pay a Gross-Up Payment, provided the Company requests inwriting that you do so and provides an opinion from Independent Tax Counsel to you and theCompany that it is more likely than not that the appeal would be successful. You furtheragree to settle, compromise or otherwise terminate a contest with the Internal RevenueService or other tax authority with respect to all or a portion of the proposed adjustmentgiving rise to the Gross-Up Payment, if requested by the Company in writing to do so atany time, in which case you shall be entitled to receive from the Company the Gross-UpPayment. In no event shall you compromise or settle all or any portion of a proposedadjustment which would result in a Gross-Up Payment without the written consent of theCompany. 

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        Youshall not be required to take or continue any action pursuant to this Section 12unless the Company acknowledges its liability under this Agreement in the event that theInternal Revenue Service or other tax authority prevails in the contest and timely makesthe payments required by this paragraph. The company hereby agrees to indemnify you in amanner reasonably satisfactory to you for any fees, expenses, penalties, interest oradditions to tax which you may incur as a result of contesting the validity of any ExciseTax and to pay you promptly upon receipt from time to time of a written demand thereforall costs and expenses which you may incur in connection with contesting such proposedadjustment (including reasonable fees and disbursements of Independent Tax Counsel);provided, however, that the Company shall not be required to reimburse any amount of taxwhich you are required to pay to permit your institution of a claim for refund under thisSection 12. 

        Ifyou shall have contested any proposed adjustment as above provided, and for so long as youshall be required under the terms of this Section 12 to continue such contest, theCompany shall not be required to pay a Gross-Up Payment until there occurs a FinalDetermination (as defined below) of your liability for the tax and any interest, penaltiesand additions to tax asserted to be payable as a result of such proposed adjustment. A“Final Determination” shall mean (A) a decision, judgement, decree orother order by any court of competent jurisdiction, which decision, judgment, decree orother order has become final after all allowable appeals by either party to the actionhave been exhausted, the time for filing such appeal has expired or you have no rightunder the terms thereof to request an appeal, (B) a closing agreement entered into underSection 7121 of the Code or any other settlement agreement entered into in connection withan administrative or judicial proceeding and with your consent, or (C) the expiration ofthe time for instituting a claim for refund, or if such a claim was filed, the expirationof the time for instituting suit with respect thereto. 

        Inthe event you receive any refund from the Internal Revenue Service or other tax authorityon account of an overpayment of Excise Tax, such amount, shall be promptly paid by you tothe Company. 

        Section13. No Mitigation; No Offset. Executive shall be under no obligation tomitigate damages or the amount of any payment provided for under this Agreement by seekingother employment or otherwise, and there shall be no offset against amounts due Executiveunder this Agreement on account of any remuneration attributable to any subsequentemployment that Executive may obtain. 

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        Section 14.Disclosure and Assignment of Intellectual Property.
    (a)                 Executive agrees that the Company, and its successors and assigns shall own all          right, title and interest throughout the world in and to all research,          information, inventions, designs, procedures, developments, discoveries,          improvements, patents and applications therefor, trademarks and applications          therefor, copyrights and applications therefor, trade secrets, drawings, plans,          systems, methods, specifications, and all other manufacturing, engineering,          technical, research and development data and know-how (herein sometimes          “Intellectual Property”) made, conceived, developed and/or          acquired by him solely or jointly with others during the period of his          employment with the Company or within one year thereafter, which relate to the          manufacture, production or processing of any products developed or sold by the          Company during the term of this Agreement or which are within the scope of or          usable in connection with the Company’s business as it may, from time to          time, hereafter be conducted or proposed to be conducted, whether or not made          during my regular working hours and whether or not made on the Company’s          premises. 

    (b)                 Executive agrees that any such Intellectual Property shall constitute a work          made for hire under the copyright laws of the United States and, to the extent          any such Intellectual Property shall be determined not to be a work made for          hire, Executive hereby assigns, and, to the extent any such assignment cannot be          made at the present time, Executive hereby agrees to assign, to the Company all          of my right, title and interest throughout the world, including, without          limitation, copyright, patent and trade secret rights, in and to the          Intellectual Property, together with Executive’s right to file for and/or          own wholly without restriction United States and foreign patents, trademarks and          copyrights with respect thereto. Executive specifically agrees and acknowledges          that the foregoing assignment covers all results, outputs and products of his          work for the Company prior to January 1, 1997, whether as an employee or as a          consultant, and all related copyrights, patents and other proprietary rights,          and that all such results, outputs and products shall be Intellectual Property          hereunder and the sole property of the Company hereafter. 

    (c)                 Executive agrees to execute all appropriate patent applications securing all          United States and foreign patents on all Intellectual Property, and to do,          execute and deliver any and all acts and instruments that may be necessary or          proper to vest all Intellectual Property in the Company or its nominee or          designee and to enable the Company, or its nominee or designee, to obtain all          such patents; and Executive agrees to render to the Company, or its nominee or          designee, all such assistance as it may require in the prosecution of all such          patent applications and applications for the re-issue of such patents, and in          the prosecution or defense of all interferences which may be declared involving          any of said patent applications or patents, but the expense of all such          assignments and patent applications, or all other proceedings referred to herein          above, shall be borne by the Company. Executive shall be entitled to fair and          reasonable compensation for any such assistance requested by the Company or its          nominee or designee and furnished by him after the termination of his          employment. Executive shall make and maintain adequate and current written          records of all Intellectual Property, and Executive shall disclose all          Intellectual Property promptly, fully and in writing to the Company immediately          upon development of the same and at any time upon request. 

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        Section15. Confidentiality. Executive shall not, either during the period of hisemployment with the Company or thereafter, reveal or disclose to any person outside theCompany or use for his own benefit, without the Company’s specific writtenauthorization, whether by private communication or by public address or publication orotherwise, any Confidential Information, as hereinafter defined. The term“Confidential Information” as used throughout this Agreement shall meanall trade secrets, proprietary information and other data or information (and any tangibleevidence, record or representation thereof), whether prepared, conceived or developed byan employee of the Company or received by the Company from an outside source, which is inthe possession of the Company (whether or not the property of the Company), which in anyway relates to the present or future business of the Company, which is maintained inconfidence by the Company, or which might permit the Company or its customers to obtain acompetitive advantage over competitors who do not have access to such trade secrets,proprietary information, or other data or information. All originals and copies of any ofthe foregoing, relating to the business of the Company, however and whenever produced,shall be the sole property of the Company, not to be removed from the premises or custodyof the Company without in each instance first obtaining written consent or authorizationof the Company. Upon the termination of Executive’s employment in any manner or forany reason, Executive shall promptly surrender to the Company all copies of any of theforegoing, together with any other documents, materials, data, information and equipmentbelonging to or relating to the Company’s business and in his possession, custody orcontrol, and Executive shall not thereafter retain or deliver to any other person, any ofthe foregoing or any summary or memorandum thereof. 

        Section16. Restriction. The Company has invested and may in the future be required toinvest substantial sums of money, directly or indirectly, to continue and expand thebusiness heretofore conducted by it and in connection therewith, and as Executiverecognizes that the Company would be substantially injured by Executive disclosing toothers, or by Executive using for his own benefit, any Intellectual Property or any of theother types of information referred to in Section 15 as Confidential Information,Executive agrees that during the period of his employment hereunder and for a periodending twelve (12) months after the term of this Agreement: 

    (a)                 He will not, directly or indirectly, for his own account or as employee,          officer, director, partner, joint venturer or otherwise, engage within the          United States or Canada, in any phase of the business of manufacturing,          distributing or selling of lasers for use in medical or cosmetic procedures. 

    (b)                 Executive shall not solicit, induce, attempt to hire, or hire any employee of          the Company (or any other person who may have been employed by the Company          during the term of his employment with the Company), or assist in such hiring by          any other person or business entity or encourage any such employee to terminate          his or her employment with the Company. 

        Executiveand the Company are of the belief that the period of time, the geographic area and therange of activities limited by this Section 16 are reasonable, in view of thenature of the business in which the Company is engaged and proposes to engage, the stateof its product development and Executive’s knowledge of this business. However, ifsuch period, or range of activities area should be adjudged unreasonable in any judicialproceeding, then the period of time shall be reduced by such number of months, such areashall be reduced by elimination of such portion of such area, and/or such range ofactivities shall be reduced by elimination of such activities, as are deemed unreasonable,so that this covenant may be enforced in such area and during such period of time as isadjudged to be reasonable. 

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        Section17. Notices. All notices and other communications hereunder shall be in writingand shall be deemed to have been given when delivered or three (3) days after mailing ifmailed by first-class, registered or certified mail, postage prepaid, addressed (a) if toExecutive, at the address set forth below his name on the signature page hereof, or tosuch other person(s) or addresses) as Executive shall have furnished to the Company inwriting; and (b) if to the Company, at 82 Cambridge Street, Burlington, MA 01803, Attn:Human Resource Department, with a copy to General Counsel, Palomar Medical Technologies,Inc., 82 Cambridge Street, Burlington, MA 01803, or to such other person(s) or addressesas the Company shall have furnished to Executive in writing. 

        Section18. Assignability. In the event that the Company shall be merged with, orconsolidated into, any other corporation, or in the event that it shall sell and transfersubstantially all of its assets to another corporation, the terms of this Agreement shallinure to the benefit of, and be assumed by, the corporation resulting from such merger orconsolidation, or to which the Company’s assets shall be sold and transferred. ThisAgreement shall not be assignable by Executive, but it shall be binding upon, and shallinure to the benefit of, his heirs, executors, administrators and legal representatives. 

        Section19. Entire Agreement. This Agreement contains the entire agreement between theCompany and Executive with respect to the subject matter hereof and there have been nooral or other agreements of any kind whatsoever as a condition precedent or inducement tothe signing of this Agreement or otherwise concerning this Agreement or the subject matterhereof. This Agreement is given in consideration for the parties agreeing that thisAgreement supersedes all previous Employment Agreements and Severance Agreements thatmight have been in effect at the time of this Agreement by and between the Executive andthe Company and/or its subsidiaries. 

        Section20. Expenses. The Company shall pay to the Executive all reasonable legal andarbitration fees and expenses incurred by the Executive in obtaining or enforcing anyright or benefit provided by this Agreement, except in cases involving frivolous or badfaith litigation 

        Section21. Equitable Relief. Executive recognizes and agrees that the Company’sremedy at law for any breach of the provisions of Sections 15, 16 or 17hereof would be inadequate, and he agrees that for breach of such provisions, the Companyshall, in addition to such other remedies as may be available to it at law or in equity oras provided in this Agreement, be entitled to injunctive relief and to enforce its rightsby an action for specific performance to the extent permitted by law. 

        Section22. Waivers and Further Agreements. Any waiver of any terms or conditions ofthis Agreement shall not operate as a waiver of any other breach of such terms orconditions or any other term or condition, nor shall any failure to enforce any provisionhereof operate as a waiver of such provision or of any other provision hereof; provided,however, that no such written waiver, unless it, by its own terms, explicitly provides tothe contrary, shall be construed to effect a continuing waiver of the provision beingwaived and no such waiver in any instance shall constitute a waiver in any other instanceor for any other purpose or impair the right of the party against whom such waiver isclaimed in all other instances or for all other purposes to require full compliance withsuch provision. Each of the parties hereto agrees to execute all such further instrumentsand documents and to take all such further action as the other party may reasonablyrequire in order to effectuate the terms and purposes of this Agreement. 

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        Section23. Amendments. This Agreement may not be amended, nor shall any waiver,change, modification, consent or discharge be effected except by an instrument in writingexecuted by or on behalf of the party against whom enforcement of any waiver, change,modification, consent or discharge is sought. 

        Section24. Severability. If any provision of this Agreement shall be held or deemed tobe, or shall in fact be, invalid, inoperative or unenforceable as applied to anyparticular case in any jurisdiction or jurisdictions, or in all jurisdictions or in allcases, because of the conflicting of any provision with any constitution or statute orrule of public policy or for any other reason, such circumstance shall not have the effectof rendering the provision or provisions in question, invalid, inoperative orunenforceable in any other jurisdiction or in any other case or circumstance or ofrendering any other provision or provisions herein contained invalid, inoperative orunenforceable to the extent that such other provisions are not themselves actually inconflict with such constitution, statute or rule of public policy, but this Agreementshall be reformed and construed in any such jurisdiction or case as if such invalid,inoperative or unenforceable provision had never been contained herein and such provisionreformed so that it would be valid, operative and enforceable to the maximum extentpermitted in such jurisdiction or in such case. 

        Section25. Counterparts. This Agreement may be executed in two or more counterparts,each of which shall be deemed an original, but all of which together shall constitute oneand the same instrument, and in pleading or proving any provision of this Agreement, itshall not be necessary to produce more than one of such counterparts. 

        Section26. Section Headings. The headings contained in this Agreement are forreference purposes only and shall not in any way affect the meaning or interpretation ofthis Agreement. 

        Section27. General Provisions. 

    (a)                 Executive further agrees that his obligations under Sections 15, 16 and          17 of this Agreement shall be binding upon him irrespective of the          duration of his employment by the Company, the reasons for any cessation of his          employment by the Company, or the amount of his compensation and shall survive          the termination of this Agreement (whether such termination is by the Company,          by Executive, upon expiration of this Agreement or otherwise). 

    (b)                 Executive represents and warrants to the Company that he is not now under any          obligations to any person, firm or corporation, and has no other interest which          is inconsistent or in conflict with this Agreement, or which would prevent,          limit or impair, in any way, the performance by him of any of the covenants or          his duties in his said employment. 

        Section28. Gender. Whenever used herein, the singular number shall include the plural,the plural shall include the singular, and the use of any gender shall include allgenders. 

        Section29. Governing Law. This Agreement shall be governed by and construed andenforced in accordance with the law (other than the law governing conflict of lawquestions) of the Commonwealth of Massachusetts. 

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        INWITNESS WHEREOF, the parties have executed or caused to be executed this Agreement as ofthe date first above written. 
PALOMAR MEDICAL TECHNOLOGIES, INC. By: /s/ Louis P. Valente      Name: Louis P. ValenteTitle: CEO
        BYPLACING MY SIGNATURE HEREUNDER, I ACKNOWLEDGE THAT I HAVE READ ALL THE PROVISIONS OF THISAGREEMENT AND THAT I AGREE TO ALL OF ITS TERMS. 
  /s/ Joseph P. Caruso      Notice Address:30 Zachary LaneReading, MA 01867
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