|SECOND AMENDMENT TO LEASE











THIS SECOND AMENDMENT TO LEASE dated
as of January 18, 2006 by and between 82 Cambridge Street LLC, as (Landlord), and
Palomar Medical Technologies, Inc., as (Tenant).


WHEREAS, Landlord and Tenant
executed that certain lease dated June 17, 1999, and that First Amendment to Lease dated
March 20, 2000, relating to the premises at 82 Cambridge Street, Burlington,
Massachusetts, the Commencement Date of which was August 26, 1999.


WHEREAS, Landlord and Tenant desire
to amend / add the square footage of Tenants demised area, and;


WHEREAS, Landlord and Tenant have
agreed to amend the rent structure of the Lease accordingly, and;


WHEREAS, Landlord and Tenant have
agreed to make certain changes to the Lease as provided below.


NOW THEREFORE, for good and valuable
consideration, the receipt and sufficiency is hereby acknowledged, Landlord and Tenant
agree as follows:
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|1. |  | Effective
of February 1, 2006, the Tenant shall lease the remaining 12,000 square feet in the
building               bringing the total leased area to 55,450 square feet.
|-- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. |  | Rent:
 Effective February 1, 2006 the rent section of Exhibit B to the               Lease
and Exhibit A of the First Amendment to Lease is hereby deleted and a new Exhibit A-1              attached
shall be submitted therefore.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|In all other respects, the Lease and
First Amendment to Lease is hereby ratified, confirmed and approved and shall continue in
full force and effect  except as herein expressly modified.


IN WITNESS WHEREOF, the parties
hereto have executed these presents as a sealed instrument as of the day and year first
above written.


WITNESS the execution hereof under
seal as of the date first above set written.
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|                                    |                                   
|----------------------------------- | ----------------------------------
|LANDLORD:                           | TENANT:                           
|82 Cambridge Street Associates, LLC | Palomar Medical Technologies, Inc.
|                                    |                                   
|By: /s/Morton E. Ruderman           | By: /s/Louis P. Valente           
|Its: Manager                       | Its:Executive Chairman           

|EXHIBIT A-1
|-------------

|DATES:         | SUITE:                        | SF:      | RentPSF         | Monthly Rent/Expenses | Start:  | Expire:  
|-------------- | ----------------------------- | -------- | --------------- | --------------------- | ------- | ---------
|2/1/06-8/31/09 | 1                             | 43,450   | $21.85*         | $79,113.33            | 8/26/99 | 8/31/2009
|               |                               |          |                 |                       |         |          
|2/1/06-8/31/09 | 2                             | 12,000   | $18.00**        | $18,000.00            | 2/1/06  | 8/31/2009
|               |                               |          |                 |                       |         |          
|Totals:        |                               | 55,450sf | $21.02(average) | $97,113.33            |         |          
|               |                               |          |                 |                       |         |          
|OPTION:        |                               |          |                 |                       |         |          
|Years 11-15    | (See Extension Term in Lease) |          |                 |                       |         |          

|*The foregoing rental rate
calculations were based on the following: (i) the original rent for years 1-5 was
computed at $20.00 per rentable square foot of first floor space and $10.00 per rentable
square foot for below grade space; and (ii) the rent for years 6-10 (present period) is
computed at $22.00 per rentable square of first floor space and $10.00 per rentable
square foot for below grade space.


**This rental rate is based on the
same provisions and subject to annual increases as the rental rate for the original
43,450 square feet in regards to Utilities, Operating Expenses, Common Area Maintenance,
and Real Estate Taxes except that the base year(s) shall be modified as follows:


Base Taxes on the additional / new
12,000 square feet shall be the rate and the assessment in affect as of the date of this
Second Amendment to Lease.  All other provisions pertaining to the payment of the
increase in real estate taxes shall be in accordance with Article 4 of the original lease
dated June 17, 1999.


Base Operating Expenses on the
additional / new 12,000 square feet shall mean (i) during the period commencing on the
Commencement Date of this Second Amendment to Lease and ending on the last day of the
calendar month in which the first anniversary of the Commencement Date occurs, $3.02 per
square foot of rentable area in the building (excluding HVAC electricity and gas), and
(ii) thereafter, the actual Operating Costs incurred during the first twelve full
calendar months of this Second Amendment to Lease.  All other provisions pertaining to
the payment of the increase in operating expenses shall be in accordance with Article 5
of the original lease dated June 17, 1999.


All charges for utilities shall be
in accordance with Article 6 of the original lease dated June 17, 1999.
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