Document:

Merecury Computer Systems, Inc. Amended and Restated 2005 Stock Incentive Plan

 Exhibit 4.8 
 MERCURY COMPUTER SYSTEMS, INC. 
 AMENDED AND RESTATED 
 2005 STOCK INCENTIVE PLAN 
 SECTION 1. GENERAL
PURPOSE OF THE PLAN; DEFINITIONS 
 The name of the plan is the Mercury Computer Systems, Inc. Amended and Restated 2005 Stock Incentive
Plan (the “Plan”). The purpose of the Plan is to encourage and enable the officers, employees, Non-Employee Directors and other key persons (including consultants and prospective officers) of Mercury Computer Systems, Inc. (the
“Company”) and its Subsidiaries upon whose judgment, initiative and efforts the Company largely depends for the successful conduct of its business to acquire a proprietary interest in the Company and to induce qualified individuals who
have received offers of employment to become officers of the Company to enter and remain in the employ of the Company. It is anticipated that providing such persons with a direct stake in the Company’s welfare will assure a closer
identification of their interests with those of the Company and its shareholders, thereby stimulating their efforts on the Company’s behalf and strengthening their desire to remain with the Company. 
 The following terms shall be defined as set forth below: 
 “Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder. 
 “Administrator” is defined in Section 2(a). 
 “Award” or “Awards,” except
where referring to a particular category of grant under the Plan, shall include Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Deferred Stock Awards and Restricted Stock Awards. 
 “Board” means the Board of Directors of the Company. 
 “Code” means the Internal Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations. 
 “Committee” means the compensation committee of the Board or a similar committee performing the functions of the compensation committee
and which is comprised of not less than two Non-Employee Directors who are independent. 
 “Covered Employee” means an
employee who is a “Covered Employee” within the meaning of Section 162(m) of the Code. 
 “Deferred Stock
Award” means Awards granted pursuant to Section 8. 
 “Effective Date” means the date on which the Plan is
approved by shareholders as set forth in Section 18. 
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder. 
 “Fair Market Value” of the Stock on any given date means if the shares
of Stock are listed on any national securities exchange, or traded on the National Association of Securities Dealers Automated Quotation System (“Nasdaq”) National Global Market or another national securities exchange, the closing price
reported on Nasdaq or such other exchange on such date. If the market is closed on such date, the determination shall be made by reference to the last date preceding such date for which the market is open. If the fair market value cannot be
determined under the preceding two sentences, it shall be determined in good faith by the Administrator. 

 “Incentive Stock Option” means any Stock Option designated and qualified as an
“incentive stock option” as defined in Section 422 of the Code. 
 “Non-Employee Director” means a member of
the Board who is not also an employee of the Company or any Subsidiary. 
 “Non-Qualified Stock Option” means any Stock
Option that is not an Incentive Stock Option. 
 “Option” or “Stock Option” means any option to purchase
shares of Stock granted pursuant to Section 5. 
 “Performance Cycle” means one or more periods of time, which may be
of varying and overlapping durations, as the Administrator may select, over which the attainment of one or more performance criteria will be measured for the purpose of determining a grantee’s right to and the payment of a Restricted Stock
Award or Deferred Stock Award. 
 “Restricted Stock Award” means Awards granted pursuant to Section 7. 
 “Section 409A” means Section 409A of the Code and the regulations and other guidance promulgated thereunder. 
 “Stock” means the Common Stock, par value $0.01 per share, of the Company, subject to adjustments pursuant to Section 3.

 “Stock Appreciation Right” means any Award granted pursuant to Section 6. 
 “Subsidiary” means any corporation or other entity (other than the Company) in which the Company has a controlling interest, either
directly or indirectly. 
 “Ten Percent Owner” means an employee who owns or is deemed to own (by reason of the attribution
rules of Section 424(d) of the Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation. 
  

	SECTION 2.	ADMINISTRATION OF PLAN; ADMINISTRATOR AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS 

 (a) Committee. The Plan shall be administered by the Committee (the “Administrator”). 
 (b) Powers of Administrator. The Administrator shall have the power and authority to grant Awards consistent with the terms of the Plan, including
the power and authority: 
  

	 	(i)	to select the individuals to whom Awards may from time to time be granted; 

  

	 	(ii)	to determine the time or times of grant, and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock Awards and
Deferred Stock Awards, or any combination of the foregoing, granted to any one or more grantees; 

  

	 	(iii)	to determine the number of shares of Stock to be covered by any Award; 

  

	 	(iv)	to determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the Plan, of any Award, which terms and conditions may
differ among individual Awards and grantees, and to approve the form of written instruments evidencing the Awards; 

  

	 	(v)	subject to the provisions of Sections 7(d) and 8(a), to accelerate at any time the exercisability or vesting of all or any portion of any Award; 

  

	 	(vi)	subject to the provisions of Section 5(c), to extend at any time the period in which Stock Options and Stock Appreciation Rights may be exercised; and 

	 	(vii)	at any time to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for its own acts and proceedings as it shall deem advisable; to
interpret the terms and provisions of the Plan and any Award (including related written instruments); to make all determinations it deems advisable for the administration of the Plan; to decide all disputes arising in connection with the Plan; and
to otherwise supervise the administration of the Plan. 

 All decisions and interpretations of the Administrator shall be
binding on all persons, including the Company and Plan grantees. 
 Notwithstanding the foregoing, the Administrator’s power and
authority to make grants under the Plan shall be subject to the right of the Board, upon its request, to ratify Awards granted to the Chairman and other individuals specified by the Board, and in such event, the date of grant shall be the date of
Board ratification. 
 (c) Delegation of Authority to Grant Awards. The Administrator, in its discretion, may delegate to the Chief
Executive Officer of the Company or any person designated by the Board as an “executive officer” as defined in Rule 3b-7 under the Exchange Act all or part of the Administrator’s authority and duties with respect to the granting of
Awards to individuals who are not subject to the reporting and other provisions of Section 16 of the Exchange Act or “covered employees” within the meaning of Section 162(m) of the Code. Any such delegation by the Administrator
shall include a limitation as to the amount of Awards that may be granted during the period of the delegation and shall contain guidelines as to the determination of the exercise price of any Stock Option or Stock Appreciation Right, the conversion
ratio or price of other Awards and the vesting criteria. The Administrator may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Administrator’s delegate or delegates that were
consistent with the terms of the Plan. 
 (d) Detrimental Activity. Unless the award agreement specifies otherwise, the Administrator
may cancel, rescind, suspend, withhold or otherwise limit or restrict any Award (whether vested or unvested, exercised or unexercised) at any time if the recipient is not in compliance with all applicable provisions of the award agreement and the
Plan, or if the recipient engages in any “Detrimental Activity.” For purposes of this Section 2, “Detrimental Activity” shall include: (i) the rendering of services for any organization or engaging directly or
indirectly in any business which is or becomes competitive with the Company, or which organization or business, or the rendering of services to such organization or business, is or becomes otherwise prejudicial to or in conflict with the interests
of the Company; (ii) the disclosure to anyone outside the Company, or the use in other than the Company’s business, without prior written authorization from the Company, of any confidential information or material, as defined in the
Company’s Employee Confidentiality Agreement or such other agreement regarding confidential information and intellectual property that the recipient the Company may enter into (collectively, the “Confidentiality Agreement”), relating
to the business of the Company, acquired by the recipient either during or after employment with the Company; (iii) the failure or refusal to disclose promptly and to assign to the Company, pursuant to the Confidentiality Agreement or
otherwise, all right, title and interest in any invention or idea, patentable or not, made or conceived by the recipient during employment by the Company, relating in any manner to the actual or anticipated business, research or development work of
the Company or the failure or refusal to do anything reasonably necessary to enable the Company to secure a patent where appropriate in the United States and in other countries; (iv) activity that results in termination of the recipient’s
employment for cause; (v) a material violation of any rules, policies, procedures or guidelines of the Company; (vi) any attempt directly or indirectly to induce any employee of the Company to be employed or perform services elsewhere or
any attempt directly or indirectly to solicit the trade or business of any current or prospective customer, supplier or partner of the Company; or (vii) the recipient being convicted of, or entering a guilty plea with respect to, a crime,
whether or not connected with the Company. 
 (e) Indemnification. Neither the Board nor the Committee, nor any member of either or
any delegate thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan, and the members of the Board and the Committee (and any delegate thereof) shall be entitled in
all cases to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation, reasonable attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law
and/or under any directors’ and officers’ liability insurance coverage which may be in effect from time to time and/or any indemnification agreement between such individual and the Company. 

 SECTION 3. STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION 
 (a) Stock Issuable. The maximum number of shares of Stock reserved and available for issuance under the Plan shall be 2,592,264 (which number
represents 1,942,264 shares originally reserved under the Plan plus an additional 650,000 shares), subject to adjustment as provided in Section 3(c). For purposes of this limitation, the shares of Stock underlying any Awards that are forfeited,
are canceled, expire or are terminated (other than by exercise) under (i) this Plan or (ii) from and after November 14, 2005, the Mercury Computer Systems, Inc. 1997 Stock Option Plan (the “1997 Plan”) shall be added to the
shares of Stock available for issuance under the Plan. Shares tendered or held back upon exercise of an Option or settlement of an Award to cover the exercise price or tax withholding shall not be available for future issuance under the Plan. In
addition, upon exercise of Stock Appreciation Rights, the gross number of shares exercised shall be deducted from the total number of shares remaining available for issuance under the Plan. Subject to such overall limitations and Section 3(c),
shares of Stock may be issued up to such maximum number pursuant to any type or types of Award; provided, however, that Stock Options or Stock Appreciation Rights with respect to no more than 500,000 shares of Stock may be granted to any one
individual grantee during any one calendar year period and provided, further, that in no event may Incentive Stock Options granted under the Plan exceed 2,610,304 shares of Stock. The shares available for issuance under the Plan may be authorized
but unissued shares of Stock or shares of Stock reacquired by the Company. 
 (b) Effect of Awards. The grant of any full value Award
(i.e., an Award other than an Option or a Stock Appreciation Right) shall be deemed, for purposes of determining the number of shares available for issuance under Section 3(a), as an Award of one and thirty-six one hundredths (1.36) shares
of Stock for each such share actually subject to the Award. The grant of an Option or a Stock Appreciation Right shall be deemed, for purposes of determining the number of shares available for issuance under Section 3(a), as an Award of one
share of Stock for each such share actually subject to the Award. 
 (c) Changes in Stock. Subject to Section 3(d) hereof, if, as
a result of any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Company’s capital stock, the outstanding shares of Stock are increased or decreased or are
exchanged for a different number or kind of shares or other securities of the Company, or additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with respect to such shares of Stock
or other securities, or, if, as a result of any merger or consolidation, sale of all or substantially all of the assets of the Company, the outstanding shares of Stock are converted into or exchanged for a different number or kind of securities of
the Company or any successor entity (or a parent or subsidiary thereof), the Administrator shall make an appropriate or proportionate adjustment in (i) the maximum number of shares reserved for issuance under the Plan, including the maximum
number of shares that may be issued in the form of Incentive Stock Options, (ii) the number of Stock Options or Stock Appreciation Rights that can be granted to any one individual grantee and the maximum number of shares that may be granted
under a Performance-based Award, (iii) the number and kind of shares or other securities subject to any then outstanding Awards under the Plan, (iv) the repurchase price, if any, per share subject to each outstanding Restricted Stock
Award, and (v) the price for each share subject to any then outstanding Stock Options and Stock Appreciation Rights under the Plan, without changing the aggregate exercise price (i.e., the exercise price multiplied by the number of Stock
Options and Stock Appreciation Rights) as to which such Stock Options and Stock Appreciation Rights remain exercisable. The Administrator shall also make equitable or proportionate adjustments in the number of shares subject to outstanding Awards
and the exercise price and the terms of outstanding Awards to take into consideration cash dividends paid other than in the ordinary course or any other extraordinary corporate event. The adjustment by the Administrator shall be final, binding and
conclusive. No fractional shares of Stock shall be issued under the Plan resulting from any such adjustment, but the Administrator in its discretion may make a cash payment in lieu of fractional shares. 
 (d) Mergers and Other Transactions. In the case of and subject to the consummation of (i) the dissolution or liquidation of the Company,
(ii) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity, (iii) a merger, reorganization or consolidation in which the outstanding shares of Stock are converted into or
exchanged for a different kind of securities of the successor entity and the holders of the Company’s outstanding voting power immediately prior to such transaction do not own a majority of the outstanding voting power of the successor entity
immediately upon completion of such transaction, or (iv) the sale of all of the Stock of the Company to an unrelated person or entity (in each case, a “Sale Event”), the Plan and all outstanding 

 Awards granted hereunder shall terminate, unless provision is made in connection with the Sale Event in the sole
discretion of the parties thereto for the assumption or continuation of Awards theretofore granted by the successor entity, or the substitution of such Awards with new Awards of the successor entity or parent thereof, with appropriate adjustment as
to the number and kind of shares and, if appropriate, the per share exercise prices, as such parties shall agree (after taking into account any acceleration hereunder). In the event of such termination, each grantee shall be permitted, within a
specified period of time prior to the consummation of the Sale Event as determined by the Administrator, to exercise all outstanding vested and exercisable Options and Stock Appreciation Rights held by such grantee. 
 Notwithstanding anything to the contrary in this Section 3(d), in the event of a Sale Event pursuant to which holders of the Stock of the Company
will receive upon consummation thereof a cash payment for each share surrendered in the Sale Event, the Company shall have the right, but not the obligation, to make or provide for a cash payment to the grantees holding vested and exercisable
Options and Stock Appreciation Rights, in exchange for the cancellation thereof, in an amount equal to the difference between (A) the value as determined by the Administrator of the consideration payable per share of Stock pursuant to the Sale
Event (the “Sale Price”) times the number of shares of Stock subject to such outstanding Options and Stock Appreciation Rights (to the extent then exercisable at prices not in excess of the Sale Price) and (B) the aggregate exercise
price of all such outstanding Options and Stock Appreciation Rights. 
 (e) Substitute Awards. The Administrator may grant Awards
under the Plan in substitution for stock and stock based awards held by employees, directors or other key persons of another corporation in connection with the merger or consolidation of the employing corporation with the Company or a Subsidiary or
the acquisition by the Company or a Subsidiary of property or stock of the employing corporation. The Administrator may direct that the substitute awards be granted on such terms and conditions as the Administrator considers appropriate in the
circumstances. Any substitute Awards granted under the Plan shall not count against the share limitation set forth in Section 3(a). 
 SECTION 4.
ELIGIBILITY 
 Grantees under the Plan will be such full or part-time officers and other employees, Non-Employee Directors and key
persons (including consultants and qualified individuals who have received offers of employment to become officers of the Company) of the Company and its Subsidiaries as are selected from time to time by the Administrator in its sole discretion.

 SECTION 5. STOCK OPTIONS 
 (a) Grant
of Stock Options. Any Stock Option granted under the Plan shall be in such form as the Administrator may from time to time approve. 
 Stock Options granted under the Plan may be either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be granted only to employees of the Company or any Subsidiary that is a “subsidiary
corporation” within the meaning of Section 424(f) of the Code. To the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a Non-Qualified Stock Option. 
 Stock Options granted pursuant to this Section 5(a) shall be subject to the following terms and conditions and shall contain such additional terms
and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable. Stock Options may be granted in lieu of cash compensation at the optionee’s election, subject to such terms and conditions as the
Administrator may establish. 
 (b) Exercise Price. The exercise price per share for the Stock covered by a Stock Option granted
pursuant to this Section 5(a) shall be determined by the Administrator at the time of grant but shall not be less than 100 percent of the Fair Market Value on the date of grant. 
 (c) Option Term. The term of each Stock Option shall be fixed by the Administrator, but no Stock Option shall be exercisable more than seven years
after the date the Stock Option is granted. 

 (d) Exercisability; Rights of a Shareholder. Stock Options shall become exercisable at such time
or times, whether or not in installments, as shall be determined by the Administrator at or after the grant date. The Administrator may at any time accelerate the exercisability of all or any portion of any Stock Option. An optionee shall have the
rights of a shareholder only as to shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options. 
 (e)
Method of Exercise. Stock Options may be exercised in whole or in part, by giving written notice of exercise to the Company, specifying the number of shares to be purchased; provided, however, that no Stock Option may be partially
exercised with respect to fewer than 50 shares. Payment of the purchase price may be made by one or more of the following methods to the extent provided in the Option Award agreement: 
  

	 	(i)	In cash, by certified or bank check or other instrument acceptable to the Administrator; 

  

	 	(ii)	Through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the optionee on the open market or that are beneficially owned by the optionee
and are not then subject to restrictions under any Company plan. Such surrendered shares shall be valued at Fair Market Value on the exercise date; or 

  

	 	(iii)	By the optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check
payable and acceptable to the Company for the purchase price. 

 Payment instruments will be received subject to collection. The transfer to
the optionee on the records of the Company or of the transfer agent of the shares of Stock to be purchased pursuant to the exercise of a Stock Option will be contingent upon receipt from the optionee (or a purchaser acting in his stead in accordance
with the provisions of the Stock Option) by the Company of the full purchase price for such shares and the fulfillment of any other requirements contained in the Option Award agreement or applicable provisions of laws (including the satisfaction of
any withholding taxes that the Company is obligated to withhold with respect to the optionee). In the event an optionee chooses to pay the purchase price by previously-owned shares of Stock through the attestation method, the number of shares of
Stock transferred to the optionee upon the exercise of the Stock Option shall be net of the number of shares attested to. 
 (f) Annual
Limit on Incentive Stock Options. To the extent required for “incentive stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with
respect to which Incentive Stock Options granted under this Plan and any other plan of the Company or its parent and subsidiary corporations become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To
the extent that any Stock Option exceeds this limit, it shall constitute a Non-Qualified Stock Option. 
 SECTION 6. STOCK APPRECIATION RIGHTS

 (a) Nature of Stock Appreciation Rights. A Stock Appreciation Right is an Award entitling the recipient to receive shares of Stock
having a value equal to the excess of the Fair Market Value of the Stock on the date of exercise over the exercise price of the Stock Appreciation Right, which price shall not be less than 100 percent of the Fair Market Value of the Stock on the
date of grant (or more than the option exercise price per share, if the Stock Appreciation Right was granted in tandem with a Stock Option) multiplied by the number of shares of Stock with respect to which the Stock Appreciation Right shall have
been exercised. 
 (b) Grant and Exercise of Stock Appreciation Rights. Stock Appreciation Rights may be granted by the Administrator
in tandem with, or independently of, any Stock Option granted pursuant to Section 5 of the Plan. In the case of a Stock Appreciation Right granted in tandem with a Non-Qualified Stock Option, such Stock Appreciation Right may be granted either
at or after the time of the grant of such Option. In the case of a Stock Appreciation Right granted in tandem with an Incentive Stock Option, such Stock Appreciation Right may be granted only at the time of the grant of the Option. 

 A Stock Appreciation Right or applicable portion thereof granted in tandem with a Stock Option shall
terminate and no longer be exercisable upon the termination or exercise of the related Option. 
 (c) Terms and Conditions of Stock
Appreciation Rights. Stock Appreciation Rights shall be subject to such terms and conditions as shall be determined from time to time by the Administrator, subject to the following: 
  

	 	(i)	Stock Appreciation Rights granted in tandem with Options shall be exercisable at such time or times and to the extent that the related Stock Options shall be exercisable; provided,
however, that no Stock Appreciation Right may be partially exercised with respect to fewer than 50 shares. 

  

	 	(ii)	Upon exercise of a Stock Appreciation Right granted in tandem with an Option, the applicable portion of any related Option shall be surrendered. 

  

	 	(iii)	The term of a Stock Appreciation Right may not exceed seven years. 

 SECTION 7. RESTRICTED STOCK AWARDS 
 (a) Nature of Restricted Stock Awards. A Restricted Stock Award is an Award
entitling the recipient to acquire, at such purchase price (which may be zero) as determined by the Administrator, shares of Stock subject to such restrictions and conditions as the Administrator may determine at the time of grant (“Restricted
Stock”). Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives. The grant of a Restricted Stock Award is contingent on the grantee executing the
Restricted Stock Award agreement. The terms and conditions of each such agreement shall be determined by the Administrator, and such terms and conditions may differ among individual Awards and grantees. 
 (b) Rights as a Shareholder. Upon execution of a written instrument setting forth the Restricted Stock Award and payment of any applicable
purchase price, a grantee shall have the rights of a shareholder with respect to the voting of the Restricted Stock, subject to such conditions contained in the written instrument evidencing the Restricted Stock Award. Unless the Administrator shall
otherwise determine, (i) uncertificated Restricted Stock shall be accompanied by a notation on the records of the Company or the transfer agent to the effect that they are subject to forfeiture until such Restricted Stock are vested as provided
in Section 7(d) below, and (ii) certificated Restricted Stock shall remain in the possession of the Company until such Restricted Stock is vested as provided in Section 7(d) below, and the grantee shall be required, as a condition of
the grant, to deliver to the Company such instruments of transfer as the Administrator may prescribe. 
 (c) Restrictions. Restricted
Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided herein or in the Restricted Stock Award agreement. Except as may otherwise be provided by the Administrator either in the
Award agreement or, subject to Section 15 below, in writing after the Award agreement is issued, if any, if a grantee’s employment (or other service relationship) with the Company and its Subsidiaries terminates for any reason, any
Restricted Stock that has not vested at the time of termination shall automatically and without any requirement of notice to such grantee from or other action by or on behalf of, the Company be deemed to have been reacquired by the Company at its
original purchase price from such grantee or such grantee’s legal representative simultaneously with such termination of employment (or other service relationship), and thereafter shall cease to represent any ownership of the Company by the
grantee or rights of the grantee as a shareholder. Following such deemed reacquisition of unvested Restricted Stock that are represented by physical certificates, a grantee shall surrender such certificates to the Company upon request without
consideration. 
 (d) Vesting of Restricted Stock. The Administrator at the time of grant shall specify the date or dates and/or the
attainment of pre-established performance goals, objectives and other conditions on which the non-transferability of the Restricted Stock and the Company’s right of repurchase or risk of forfeiture shall lapse. Notwithstanding the foregoing,
except in the case of retirement, death or disability, in the event that any such Restricted Stock granted to employees shall have a performance-based goal, the restriction period with respect to such shares shall not be less than one year, and in
the event any such Restricted Stock shall have a time-based restriction, the total restriction period with respect to such shares shall not be less than three years; provided, however, that Restricted Stock with a time-based restriction may become
vested incrementally over such three-year period. Subsequent to such date or dates and/or the 

 attainment of such pre-established performance goals, objectives and other conditions, the shares on which all
restrictions have lapsed shall no longer be Restricted Stock and shall be deemed “vested.” Except as may otherwise be provided by the Administrator either in the Award agreement or, subject to Section 15 below, in writing after the
Award agreement is issued, a grantee’s rights in any shares of Restricted Stock that have not vested shall automatically terminate upon the grantee’s termination of employment (or other service relationship) with the Company and its
Subsidiaries and such shares shall be subject to the provisions of Section 7(c) above. 
 SECTION 8. DEFERRED STOCK AWARDS 
 (a) Nature of Deferred Stock Awards. A Deferred Stock Award is an Award of phantom stock units to a grantee, subject to restrictions and conditions
as the Administrator may determine at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives. The grant of a Deferred Stock Award is
contingent on the grantee executing the Deferred Stock Award agreement. The terms and conditions of each such agreement shall be determined by the Administrator, and such terms and conditions may differ among individual Awards and grantees.
Notwithstanding the foregoing, except in the case of retirement, death or disability, in the event that any such Deferred Stock Award granted to employees shall have a performance-based goal, the restriction period with respect to such award shall
not be less than one year, and in the event any such Deferred Stock Award shall have a time-based restriction, the total restriction period with respect to such award shall not be less than three years; provided, however, that any Deferred Stock
Award with a time-based restriction may become vested incrementally over such three-year period. At the end of the deferral period, the Deferred Stock Award, to the extent vested, shall be paid to the grantee in the form of shares of Stock.

 (b) Election to Receive Deferred Stock Awards in Lieu of Compensation. The Administrator may, in its sole discretion, permit a
grantee to elect to receive a portion of future cash compensation otherwise due to such grantee in the form of a Deferred Stock Award. Any such election shall be made in writing and shall be delivered to the Company no later than the date specified
by the Administrator and in accordance with Section 409A and such other rules and procedures established by the Administrator. The Administrator shall have the sole right to determine whether and under what circumstances to permit such
elections and to impose such limitations and other terms and conditions thereon as the Administrator deems appropriate. Any deferred compensation shall be converted to a fixed number of phantom stock units based on the Fair Market Value of Stock on
the date the compensation would otherwise have been paid but for the deferral. 
 (c) Rights as a Shareholder. During the deferral
period, a grantee shall have no rights as a shareholder; provided, however, that the grantee may be credited with dividend equivalent rights with respect to the phantom stock units underlying his Deferred Stock Award, subject to such terms and
conditions as the Administrator may determine. 
 (d) Termination. Except as may otherwise be provided by the Administrator either in
the Award agreement or, subject to Section 15 below, in writing after the Award agreement is issued, a grantee’s right in all Deferred Stock Awards that have not vested shall automatically terminate upon the grantee’s termination of
employment (or cessation of service relationship) with the Company and its Subsidiaries for any reason. 
 SECTION 9. PERFORMANCE-BASED AWARDS TO COVERED
EMPLOYEES 
 Notwithstanding anything to the contrary contained herein, if any Restricted Stock Award or Deferred Stock Award granted to a
Covered Employee is intended to qualify as “Performance-based Compensation” under Section 162(m) of the Code and the regulations promulgated thereunder (a “Performance-based Award”), such Award shall comply with the
provisions set forth below: 
 (a) Performance Criteria. The performance criteria used in performance goals governing
Performance-based Awards granted to Covered Employees may include any or all of the following criteria at the Company, Subsidiary, business unit or business segment level as appropriate: (i) the Company’s return on equity, assets, capital
or investment: (ii) pre-tax or after-tax profit levels; (iii) bookings or revenue growth; iv) bookings or revenues; (v) operating income as a percentage of sales; (vi) total shareholder return; (vii) changes in the market
price of the Stock; (viii) sales or market share; (ix) earnings per share; (x) improvements in operating margins; (xi) operating cash flow or free cash flow; (xii) working capital improvements; and (xiii) design wins or
entering into contracts with key customers. 

 (b) Grant of Performance-based Awards. With respect to each Performance-based Award granted to a
Covered Employee, the Committee shall select, within the first 90 days of a Performance Cycle (or, if shorter, within the maximum period allowed under Section 162(m) of the Code) the performance criteria for such grant, and the achievement
targets with respect to each performance criterion (including a threshold level of performance below which no amount will become payable with respect to such Award). Each Performance-based Award will specify the amount payable, or the formula for
determining the amount payable, upon achievement of the various applicable performance targets. The performance criteria established by the Committee may be (but need not be) different for each Performance Cycle and different goals may be applicable
to Performance-based Awards to different Covered Employees. 
 (c) Payment of Performance-based Awards. Following the completion of a
Performance Cycle, the Committee shall meet to review and certify in writing whether, and to what extent, the performance criteria for the Performance Cycle have been achieved and, if so, to also calculate and certify in writing the amount of the
Performance-based Awards earned for the Performance Cycle. The Committee shall then determine the actual size of each Covered Employee’s Performance-based Award, and, in doing so, may reduce or eliminate the amount of the Performance-based
Award for a Covered Employee if, in its sole judgment, such reduction or elimination is appropriate. 
 (d) Maximum Award Payable. The
maximum Performance-based Award payable to any one Covered Employee under the Plan for a Performance Cycle is 300,000 Shares (subject to adjustment as provided in Section 3(c) hereof). 
 SECTION 10. TRANSFERABILITY OF AWARDS 
 (a)
Transferability. Except as provided in Section 10(b) below, during a grantee’s lifetime, his or her Awards shall be exercisable only by the grantee, or by the grantee’s legal representative or guardian in the event of the
grantee’s incapacity. No Awards shall be sold, assigned, transferred or otherwise encumbered or disposed of by a grantee other than by will or by the laws of descent and distribution or pursuant to a domestic relations order. No Awards shall be
subject, in whole or in part, to attachment, execution, or levy of any kind, and any purported transfer in violation hereof shall be null and void. 
 (b) Committee Action. Notwithstanding Section 10(a), the Administrator, in its discretion, may provide either in the Award agreement regarding a given Award or by subsequent written approval that the grantee (who is an employee
or director) may transfer his or her Awards (other than any Incentive Stock Options) to his or her immediate family members, to trusts for the benefit of such family members, or to partnerships in which such family members are the only partners,
provided that the transferee agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable Award. 
 (c) Family Member. For purposes of Section 10(b), “family member” shall mean a grantee’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece,
nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the grantee’s household (other than a tenant of the grantee), a trust in which these
persons (or the grantee) have more than 50 percent of the beneficial interest, a foundation in which these persons (or the grantee) control the management of assets, and any other entity in which these persons (or the grantee) own more than 50
percent of the voting interests. 
 (d) Designation of Beneficiary. Each grantee to whom an Award has been made under the Plan may
designate a beneficiary or beneficiaries to exercise any Award or receive any payment under any Award payable on or after the grantee’s death. Any such designation shall be on a form provided for that purpose by the Administrator and shall not
be effective until received by the Administrator. If no beneficiary has been designated by a deceased grantee, or if the designated beneficiaries have predeceased the grantee, the beneficiary shall be the grantee’s estate. 

 SECTION 11. TAX WITHHOLDING 
 (a) Payment by Grantee. Each grantee shall, no later than the date as of which the value of an Award or of any Stock or other amounts received thereunder first becomes includable in the gross income of the
grantee for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld by the Company with respect to
such income. The Company and its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the grantee. The Company’s obligation to deliver evidence of book entry
(or stock certificates) to any grantee is subject to and conditioned on tax withholding obligations being satisfied by the grantee. 
 (b)
Payment in Stock. Subject to approval by the Administrator, a grantee may elect to have the Company’s minimum required tax withholding obligation satisfied, in whole or in part, by (i) authorizing the Company to withhold from shares
of Stock to be issued pursuant to any Award a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due, or (ii) transferring to the Company shares of Stock
owned by the grantee with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due. 
 SECTION 12. CHANGE OF CONTROL 
 (a) Occurrence of Change of Control. Upon the consummation of a Change of Control of
the Company, as defined in Section 12(b), 50% of the unvested Awards of each grantee with a minimum of six months of service will automatically be fully vested. In the event the Change of Control of the Company is not approved by the Board of
Directors, all of the outstanding Awards will automatically become fully vested upon the consummation of the Change of Control of the Company. 
 (b) Definition. For purposes of the Plan, a “Change of Control of the Company” shall be deemed to have occurred upon the occurrence of any of the following events: 
  

	 	(i)	any “Person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, any of its subsidiaries, or any trustee, fiduciary or other
person or entity holding securities under any employee benefit plan or trust of the Company or any of its subsidiaries), together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the Exchange
Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50 percent or more of the combined voting power of
the Company’s then outstanding securities having the right to vote in an election of the Company’s Board of Directors (“Voting Securities”) (in such case other than as a result of an acquisition of securities directly from the
Company or an acquisition of securities involving a Corporate Transaction of the type described in the exclusion set forth in clause (iii) below); or 

  

	 	(ii)	persons who, as of the date hereof, constitute the Company’s Board of Directors (the “Incumbent Directors”) cease for any reason, including, without limitation, as a
result of a tender offer, proxy contest, merger or similar transaction, to constitute at least a majority of the Board, provided that any person becoming a director of the Company subsequent to the date hereof shall be considered an Incumbent
Director if such person’s election was approved by or such person was nominated for election by either (A) a vote of at least a majority of the Incumbent Directors or (B) a vote of at least a majority of the Incumbent Directors who
are members of a nominating committee comprised, in the majority, of Incumbent Directors; but provided further, that any such person whose initial assumption of office is in connection with an actual or threatened election contest relating to the
election of members of the Board of Directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board, including by reason of agreement intended to avoid or settle any such actual or
threatened contest or solicitation, shall not be considered an Incumbent Director; or 

	 	(iii)	the consummation of a consolidation, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Corporate
Transaction”); excluding, however, a Corporate Transaction in which the shareholders of the Company immediately prior to the Corporate Transaction, would, immediately after the Corporate Transaction, beneficially own (as such term is defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, shares representing in the aggregate more than 50 percent of the voting shares of the corporation issuing cash or securities in the Corporate Transaction (or of its ultimate parent
corporation, if any). 

 Notwithstanding the foregoing, a “Change of Control of the Company” shall not be deemed to
have occurred for purposes of the foregoing clause (i) solely as the result of an acquisition of securities by the Company that, by reducing the number of shares of Voting Securities outstanding, increases the proportionate number of shares of
Voting Securities beneficially owned by any person to 50 percent or more of the combined voting power of all then outstanding Voting Securities; provided, however, that if any person referred to in this sentence shall thereafter become the
beneficial owner of any additional shares of Voting Securities (other than pursuant to a stock split, stock dividend, or similar transaction or as a result of an acquisition of securities directly from the Company) and immediately thereafter
beneficially owns 50 percent or more of the combined voting power of all then outstanding Voting Securities, then a “Change of Control of the Company” shall be deemed to have occurred for purposes of the foregoing clause (i). 

 

	SECTION 13.	ADDITIONAL CONDITIONS APPLICABLE TO NONQUALIFIED DEFERRED COMPENSATION UNDER SECTION 409A. 

 In the event any Stock Option or Stock Appreciation Right under the Plan is granted with an exercise price of less than 100 percent of the Fair Market
Value on the date of grant (regardless of whether or not such exercise price is intentionally or unintentionally priced at less than Fair Market Value), or such grant is materially modified and deemed a new grant at a time when the Fair Market Value
exceeds the exercise price, or any other Award is otherwise determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code (a “409A Award”), the following additional conditions
shall apply and shall supersede any contrary provisions of this Plan or the terms of any agreement relating to such 409A Award. 
 (a)
Exercise and Distribution. Except as provided in Section 13(b) hereof, no 409A Award shall be exercisable or distributable earlier than upon one of the following: 
  

	 	(i)	Specified Time. A specified time or a fixed schedule set forth in the written instrument evidencing the 409A Award. 

  

	 	(ii)	Separation from Service. Separation from service (within the meaning of Section 409A) by the 409A Award grantee; provided, however, that if the 409A Award grantee is a
“key employee” (as defined in Section 416(i) of the Code without regard to paragraph (5) thereof) and any of the Company’s Stock is publicly traded on an established securities market or otherwise, exercise or distribution
under this Section 13(a)(ii) may not be made before the date that is six months after the date of separation from service. 

  

	 	(iii)	Death. The date of death of the 409A Award grantee. 

  

	 	(iv)	Disability. The date the 409A Award grantee becomes disabled (within the meaning of Section 13(c)(ii) hereof). 

  

	 	(v)	Unforeseeable Emergency. The occurrence of an unforeseeable emergency (within the meaning of Section 13(c)(iii) hereof), but only if the net value (after payment of the
exercise price) of the number of shares of Stock that become issuable does not exceed the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the exercise, after taking into account
the extent to which the emergency is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the grantee’s other assets (to the extent such liquidation would not itself cause severe financial
hardship). 

	 	(vi)	Change in Control Event. The occurrence of a Change in Control Event (within the meaning of Section 13(c)(i) hereof), including the Company’s discretionary exercise
of the right to accelerate vesting of such grant upon a Change in Control Event or to terminate the Plan or any 409A Award granted hereunder within 12 months of the Change in Control Event. 

 (b) No Acceleration. A 409A Award may not be accelerated or exercised prior to the time specified in Section 13(a) hereof, except in the case
of one of the following events: 
  

	 	(i)	Domestic Relations Order. The 409A Award may permit the acceleration of the exercise or distribution time or schedule to an individual other than the grantee as may be
necessary to comply with the terms of a domestic relations order (as defined in Section 414(p)(1)(B) of the Code). 

  

	 	(ii)	Conflicts of Interest. The 409A Award may permit the acceleration of the exercise or distribution time or schedule as may be necessary to comply with the terms of a
certificate of divestiture (as defined in Section 1043(b)(2) of the Code). 

  

	 	(iii)	Change in Control Event. The Administrator may exercise the discretionary right to accelerate the vesting of such 409A Award upon a Change in Control Event or to terminate
the Plan or any 409A Award granted thereunder within 12 months of the Change in Control Event and cancel the 409A Award for compensation. 

 (c) Definitions. Solely for purposes of this Section 13 and not for other purposes of the Plan, the following terms shall be defined as set forth below: 
  

	 	(i)	“Change in Control Event” means the occurrence of a change in the ownership of the Company, a change in effective control of the Company, or a change in the ownership of a
substantial portion of the assets of the Company (as defined in regulations promulgated under Section 409A). 

  

	 	(ii)	“Disabled” means a grantee who (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that
can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company or its Subsidiaries.

  

	 	(iii)	“Unforeseeable Emergency” means a severe financial hardship to the grantee resulting from an illness or accident of the grantee, the grantee’s spouse, or a dependent
(as defined in Section 152(a) of the Code) of the grantee, loss of the grantee’s property due to casualty, or similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the grantee.

 SECTION 14. TRANSFER, LEAVE OF ABSENCE, ETC. 
 For purposes of the Plan, the following events shall not be deemed a termination of employment: 
 (a) a
transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another; or 

 (b) an approved leave of absence for military service or sickness, or for any other purpose approved by
the Company, if the employee’s right to re-employment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Administrator otherwise so provides in writing. 

SECTION 15. AMENDMENTS AND TERMINATION 
 The Board
may, at any time, amend or discontinue the Plan and the Administrator may, at any time, amend or cancel any outstanding Award for the purpose of satisfying changes in law or for any other lawful purpose, but no such action shall adversely affect
rights under any outstanding Award without the holder’s consent. Except as provided in Section 3(c) or 3(d), in no event may the Administrator exercise its discretion to reduce the exercise price of outstanding Stock Options or Stock
Appreciation Rights or effect repricing through cancellation and re-grants unless the Administrator proposes for shareholder vote, and shareholders approve, such reduction or such cancellation and re-grant. Any material Plan amendments (other than
amendments that curtail the scope of the Plan), including any Plan amendments that (i) increase the number of shares reserved for issuance under the Plan, (ii) expand the type of Awards available under, materially expand the eligibility to
participate in, or materially extend the term of, the Plan, or (iii) materially change the method of determining Fair Market Value, shall be subject to approval by the Company shareholders entitled to vote at a meeting of shareholders. In
addition, to the extent determined by the Administrator to be required by the Code to ensure that Incentive Stock Options granted under the Plan are qualified under Section 422 of the Code or to ensure that compensation earned under Awards
qualifies as performance-based compensation under Section 162(m) of the Code, Plan amendments shall be subject to approval by the Company shareholders entitled to vote at a meeting of shareholders. Nothing in this Section 15 shall limit
the Administrator’s authority to take any action permitted pursuant to Section 3(c) or 3(d). 
 SECTION 16. STATUS OF PLAN 
 With respect to the portion of any Award that has not been exercised and any payments in cash, Stock or other consideration not received by a grantee, a
grantee shall have no rights greater than those of a general creditor of the Company unless the Administrator shall otherwise expressly determine in connection with any Award or Awards. In its sole discretion, the Administrator may authorize the
creation of trusts or other arrangements to meet the Company’s obligations to deliver Stock or make payments with respect to Awards hereunder, provided that the existence of such trusts or other arrangements is consistent with the foregoing
sentence. 
 SECTION 17. GENERAL PROVISIONS 
 (a) No Distribution; Compliance with Legal Requirements. The Administrator may require each person acquiring Stock pursuant to an Award to represent to and agree with the Company in writing that such person is acquiring the shares
without a view to distribution thereof. 
 No shares of Stock shall be issued pursuant to an Award until all applicable securities law and
other legal and stock exchange or similar requirements have been satisfied. The Administrator may require the placing of such stop-orders and restrictive legends on certificates for Stock and Awards as it deems appropriate. 
 (b) Delivery of Stock Certificates. Stock certificates to grantees under this Plan shall be deemed delivered for all purposes when the Company or
a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the grantee, at the grantee’s last known address on file with the Company. Uncertificated Stock shall be deemed delivered for all
purposes when the Company or a Stock transfer agent of the Company shall have given to the grantee by electronic mail (with proof of receipt) or by United States mail, addressed to the grantee, at the grantee’s last known address on file with
the Company, notice of issuance and recorded the issuance in its records (which may include electronic “book entry” records). Stock Certificates or uncertified Stock for any Restricted Stock Award shall be delivered to the Secretary of the
Company to be held in escrow until the Award becomes vested. 
 (c) Other Compensation Arrangements; No Employment Rights. Nothing
contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of this Plan
and the grant of Awards do not confer upon any employee any right to continued employment with the Company or any Subsidiary. 

 (d) Trading Policy Restrictions. Option exercises and other Awards under the Plan shall be subject
to such Company’s applicable insider trading policy and procedures, as in effect from time to time. 
 SECTION 18. EFFECTIVE DATE OF PLAN

 This Plan shall become effective upon approval by the holders of a majority of the
votes cast at a meeting of shareholders at which a quorum is present. Subject to such approval by the shareholders and to the requirement that no Stock may be issued hereunder prior to such approval, Stock Options and other Awards may be granted
hereunder on and after adoption of this Plan by the Board. No grants of Stock Options and other Awards may be made hereunder after November 17, 2018 and no grants of Incentive Stock Options may be made hereunder after the tenth (10th) anniversary of the date the restated Plan is approved by the Board. 
 SECTION 19. GOVERNING LAW 
 This Plan and all Awards and actions taken thereunder shall be governed
by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, applied without regard to conflict of law principles. 
  
 DATE INITIALLY APPROVED BY BOARD OF DIRECTORS: September 14, 2005 
 DATE INITIALLY APPROVED BY SHAREHOLDERS: November 14, 2005 
 DATE RESTATEMENT APPROVED BY BOARD OF DIRECTORS: October 10, 2008

 DATE RESTATEMENT APPROVED BY SHAREHOLDERS: November 17, 2008Employment Agreement, by and between the Company and Michael R. Davin

 Exhibit 10.1 
 CYNOSURE, INC. 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of the 15th day of December, 2008 (the “Effective Date”) by
and between Cynosure, Inc., a Delaware corporation (the “Company”) and Michael R. Davin (“Executive”). 
 BACKGROUND 
  

	A.	The Company desires to retain the services of Executive as President, Chief Executive Officer and Chairman of the Board of the Company from the date of this Agreement (the
“Effective Date”). The Company also desires to continue to provide employment security to Executive, thereby inducing Executive to continue employment with the Company and enhancing Executive’s ability to perform effectively.

  

	B.	Executive is willing to be employed by the Company on the terms and subject to the conditions set forth in this Agreement. 

 THE PARTIES AGREE AS FOLLOWS: 
  

	1.	Employment. Company hereby agrees to continue to employ Executive, and Executive hereby accepts such employment, upon the terms and conditions set forth herein.

  

	2.	Duties. 

  

	 	2.1	Position. Executive will continue to occupy the position of President, Chief Executive Officer and Chairman of the Board of Directors of the Company. During the term of this
Agreement, the Board of Directors will nominate Executive to continue to serve as Chairman of the Board of Directors of the Company, subject to his continued election to the Board of Directors by the stockholders of the Company. Executive will
report directly to the Board of Directors of the Company and shall exercise such powers, duties, and responsibilities as are customarily carried out by the president, chief executive officer, and chairman of the board of a company.

  

	 	2.2	Best Effort/Full-time. Executive will expend Executive’s best efforts on behalf of Company, and will abide by all policies and decisions made by Company, as well as all
applicable federal, state and local laws, regulations or ordinances. Executive will act in the best interests of Company at all times, Executive shall devote Executive’s full business time and efforts to the performance of Executive’s
assigned duties for Company, unless Executive notifies Company in advance of Executive’s intent to engage in other paid work and receives Company’s express written consent to do so. 

	 	2.3	Work Location. Executive’s principal place of work shall be located in Westford, Massachusetts or such other location as the parties may agree upon from time to time.

  

	3.	Term. This Agreement shall be for an initial term of three (3) years commencing on the date of this Agreement. This Agreement will be automatically renewed for
additional periods of two (2) years each (each an “extended term”) unless either party gives written notice of termination to the other party no later than twelve (12) months prior to the end of the initial term or any
extended term. Notwithstanding anything contained herein to the contrary, the term of this Agreement may be earlier terminated as provided in Section 7 of this Agreement, provided that in the event that the Company gives such written notice of
termination to Executive no later than twelve (12) months prior to the end of the initial term or any extended term, then during the remaining period of such term, Executive shall have the right to expend a commercially reasonable amount of his
business time and attention to interviewing with potential employers or co-venturers and to preparing to transition to other employment or to another remunerative position and such expenditure of time and attention shall not be a violation of any of
Executive’s agreements or undertakings under this Agreement. 

  

	4.	Compensation. 

  

	 	4.1	Base Salary. As compensation for Executive’s performance of Executive’s duties hereunder, Company shall pay to Executive for calendar year 2008 an annual base
salary of $455,000 per year. The annual base salary shall be subject to annual review and adjustment by the Board of Directors, but in no event shall the Company pay Executive an annual base salary for calendar year 2009 or any subsequent year
during the initial term or any extended term of this Agreement at an annual rate that is less than one hundred five percent (105%) of the annual base salary in effect for the immediately preceding year during the term of this Agreement. The
annual base salary in effect from time to time shall be referred to in this Agreement as the “Base Salary”. The Base Salary shall be payable in accordance with the normal payroll practices of Company, less required deductions for
state and federal withholding tax, social security and all other employment taxes and payroll deduction. In the event Executive’s employment under this Agreement is terminated by either party for any reason, then, in addition to any additional
compensation to which Executive may be entitled under this Agreement, Executive will earn the Base Salary then in effect, accrued bonus and fringe benefits prorated to the date of termination. 

  

 2 

	 	4.2	Annual Performance Bonus. The Executive shall receive each year during the term of this Agreement an annual performance bonus (“Annual Performance Bonus”)
equal to five (5%) percent of the Company’s Adjusted Net Profit (as such term is defined in Exhibit A to this Agreement). The Annual Performance Bonus will be paid to Executive not later than the earlier of (i) three (3) business
days after issuance of the Company’s auditors’ signed annual audit report with respect the fiscal year to which the Annual Performance Bonus relates, or (ii) the 15th day of the third month following the end of the Company’s tax
year to which the bonus relates. 

  

	5.	Executive Fringe Benefits and Others. 

  

	 	5.1	Customary Fringe Benefits. Executive will be eligible for all customary and usual fringe benefits generally available to executives of the Company, including but not limited
to medical, dental and life insurance and participation in the Company’s Section 401k plan, subject to the terms and conditions of the Company’s benefit plan documents. The Company reserves the right to change or eliminate the fringe
benefits on a prospective basis, at any time, effective upon notice to Executive. 

  

	 	5.2	Vacation. Executive shall be entitled to twenty five (25) vacation days per year and otherwise in accordance with the Company’s employment policies and procedures
applicable to all employees of the Company, including executives, as such policies and practices are from time to time in effect; provided, however, that Executive shall be allowed to carry over unused accrued vacation from one accrual period to
another. The Company shall pay Executive for any accrued but unused vacation within thirty (30) days from the termination of Executive’s employment with the Company. 

  

	6.	Business Expenses. Executive will be reimbursed for all reasonable, out-of-pocket business expenses incurred by Executive in the performance of Executive’s duties on
behalf of Company and in compliance with the Company’s travel and expense reimbursement policies and applicable regulations of the U.S. Internal Revenue Service. To obtain reimbursement, expenses must be submitted promptly with appropriate
supporting documentation in accordance with Company’s policies. 

  

	7.	Termination of Executive’s Employment. The employment of Executive pursuant to this Agreement shall terminate upon the occurrence of any of the following:

  

	 	7.1	Upon expiration of the term of this Agreement as provided in Section 3 of this Agreement. 

  

	 	7.2	 For Cause, upon written notice by the Company to Executive. For purposes of this Agreement, “Cause” is defined as: 

  

 3 

	 	 
(a) acts or omissions constituting gross negligence or willful misconduct on the part of Executive with respect to Executive’s obligations to the
Company or otherwise relating to the business of Company, in each case as determined in good faith by the Company; (b) Executive’s material breach of this Agreement or the Company’s Executive Innovations. and Proprietary Rights
Agreement; (c) Executive’s conviction or entry of a plea of nolo contendere for fraud, misappropriation or embezzlement, or any felony or crime of moral turpitude fiduciary duty in connection with the performance of his obligations to the
Company; (d) Executive’s willful neglect of duties as determined in the good faith by Company; (e) Executive’s failure to perform the essential functions of Executive’s position, with reasonable accommodation, due to a
mental or physical disability; or (f) Executive’s knowingly withholding material information (in his area of responsibility) from the Board of Directors. In each instance where Cause is alleged to have occurred (other than pursuant to
clause (c) of this subsection (a)), Executive shall have been given no less than two (2) written notices by the Board of Directors describing the specific nature of the allegations against him and shall have been afforded a reasonable
opportunity and reasonable time to cure such failure to perform his duties. For purposes of this subsection 7.2, no act or failure to act by Executive shall be considered “willful” unless it is done, or omitted to be done, in bad faith and
without reasonable belief that the Executive’s action or omission was in the best interests of the Company. 

  

	 	7.3	For Good Reason, upon written notice from the Executive to the Company. For purposes of this Agreement, “Good Reason” means the occurrence, without the
Executive’s written consent, of any of the events or circumstances set forth in clauses (a) through (g) below. Notwithstanding the occurrence of any such event or circumstance, such occurrence shall not be deemed to constitute Good
Reason if, prior to the date of termination specified in any notice of termination given by the Executive in respect thereof, such event or circumstance has been fully corrected and the Executive has been reasonably compensated for any losses or
damages resulting therefrom (provided that such right of correction by the Company shall only apply to the first such event or circumstance constituting Good Reason). 

  

	 	(a)	the assignment to the Executive of duties inconsistent in any material respect with the Executive’s position (including status, offices, titles and reporting requirements),
authority or responsibilities; 

  

	 	(b)	a reduction in the Executive’s annual base salary as in effect on the Effective Date or as the same was or may be increased thereafter from time to time;

  

 4 

	 	(c)	the failure by the Company to (i) continue in effect any material compensation or benefit plan or program (including without limitation any life insurance, medical, health and
accident or disability plan and any vacation program or policy) (a “Benefit Plan”) in which the Executive participates or which is applicable to the Executive immediately prior to the Effective Date, unless an equitable arrangement
(embodied in an ongoing substitute or alternative plan) has been made with respect to such plan or program, (ii) continue the Executive’s participation therein (or in such substitute or alternative plan) on a basis not materially less
favorable than the basis existing immediately prior to the Effective Date (iii) award cash bonuses to the Executive in amounts and in a manner substantially consistent with past practice in light of the Company’s financial performance;

  

	 	(d)	a change by the Company in the location at which the Executive performs his principal duties for the Company to a new location that is both (i) outside a radius of 50 miles
from the Executive’s principal residence immediately prior to the Effective Date and (ii) more than 30 miles from the location at which the Executive performed his principal duties for the Company immediately prior to the Effective Date;
or a requirement by the Company that the Executive travel on Company business to a substantially greater extent than required immediately prior to the Effective Date; 

  

	 	(e)	the failure of the Company to obtain the agreement from any successor to the Company to assume and agree to perform this Agreement, as required by Section 12 of this Agreement;

  

	 	(f)	any failure of the Company to pay or provide to the Executive any portion of the Executive’s compensation or benefits due under any Benefit Plan within seven days of the date
such compensation or benefits are due, or any material breach by the Company of this Agreement or any employment agreement with the Executive. 

 The Executive’s right to terminate his employment for Good Reason shall not be affected by his incapacity due to physical or mental
illness or any Disability (as defined in Section 7.5 below). 
  

	 	7.4	Upon Executive’s termination of his employment on his own initiative other than for Good Reason. 

  

	 	7.5	Executive’s death, disability or other incapacity resulting in his inability to perform his duties hereunder. For purposes of this Agreement, “Disability”
shall mean the inability of the Executive to substantially perform the duties required of him pursuant to the provisions of this Agreement due to any physical or mental disability for a period of 60 consecutive days or 90 days in any 12 consecutive
months. 

  

 5 

	 8.
	 Termination without Cause or Following a Change in Control or Resignation for Good Reason. Upon (i) the
termination of the Executive by the Company without Cause, or (ii) upon the resignation by the Executive for Good Reason, or (iii) upon the termination of the Executive’s employment, either by the Company or Executive, within eighteen
(18) months following a Change in Control (as defined in Section 9 below), the Company will continue to pay to the Executive (or, if applicable, to the Executive’s estate) his Base Salary and other compensation and benefits provided
for or referred to in this Agreement, for twenty-four (24) months following such termination or resignation (subject to the provisions of Sections 17 and 18 to the extent applicable), with any partial month being prorated appropriately. In
addition, the Company will pay to Executive (subject to the provisions of Sections 17 and 18 to the extent applicable) (a) on or before the tenth day following the effective date of his termination or resignation an amount equal to the full
amount of his Annual Performance Bonus for the calendar year in which such termination or resignation occurs, and (b) on or before the first anniversary of the effective date of his termination or resignation, but in any event not before
January 1 of the year in which such first anniversary occurs, an amount equal to one hundred and ten (110%) percent of the Annual Performance Bonus paid to Executive for the preceding calendar year. The Annual Performance Bonus shall be
calculated as provided in Section 4.2 of this Agreement. The period during which the Company continues to pay the Executive after such termination or resignation is hereby referred to as the “Severance Period”. In addition, upon such
termination or resignation, (i) all stock options or other stock rights granted (or to be granted) to the Executive under the Company’s 2004 Stock Option Plan or any successor equity incentive plan adopted by the Company during the term of
this Agreement shall immediately vest and shall become exercisable in full (or, if applicable, all restrictions applicable to any stock rights shall lapse immediately), ii) (ii) any accrued but unused vacation shall be paid immediately (subject
to the provisions of Sections 17 and 18 to the extent applicable at the time of such termination or resignation), and (iv) effective for the Severance Period, the Company shall pay the full cost of the premiums for continuation of the
Executive’s group health plan benefits pursuant to the law known as COBRA at the same coverage level (and for family coverage) that Executive maintained at the time of termination of employment, provided that this shall not require continuation
of any such premium payments if the Executive becomes ineligible for COBRA continuation under the terms of COBRA before the end of the Severance Period. Notwithstanding the foregoing, the Company shall not be obligated to provide any pay or benefits
pursuant to this Section 8 unless, during the 30-day period following termination of employment, the Executive agrees to a release of legal claims in a reasonable form proposed by the Company upon or following a termination without Cause or a
Change in Control or a Resignation for Good Reason. No payments will be made under this Section 8 until the 37th day following termination of
employment, regardless of when the Executive signs the required release. 

  

 6 

	9.	Change in Control. For purposes of this Agreement, “Change in Control” means an event or occurrence set forth in any one or more of subsections
(a) through (d) below (including an event or occurrence that constitutes a Change in Control under one of such subsections but is specifically exempted from another such subsection): 

  

	 	(a)	the acquisition by an individual, entity or group other than El.En. S.p.A. (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) 50% or more of either (i) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then-outstanding securities of the
Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (a), the following acquisitions shall not constitute a
Change in Control: (i) any acquisition directly from the Company (excluding an acquisition pursuant to the exercise, conversion or exchange of any security exercisable for, convertible into or exchangeable for common stock or voting securities
of the Company, unless the Person exercising, converting or exchanging such security acquired such security directly from the Company or an underwriter or agent of the Company), (ii) any acquisition by the Company, (iii) any acquisition by
any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the company or(iv) any acquisition by any corporation pursuant to a transaction which complies with clauses (i) and
(ii) of subsection (c) of this Section 9; or 

  

	 	(b)	such time as the Continuing Directors (as defined below) do not constitute a majority of the Board (or, if applicable, the Board of Directors of a successor corporation to the
Company), where the term “Continuing Director” means at any date a member of the Board (i) who was a member of the Board on the date of the execution of this Agreement or (ii) who was nominated or elected subsequent to
such date by at least a majority of the directors who were Continuing Directors at the time of such nomination or election or whose election to the Board was recommended or endorsed by at least a majority of the directors who were Continuing
Directors at the time of such nomination or election; provided, however, that there shall be excluded from this clause (ii) any individual whose initial assumption of office occurred as a result of an actual or threatened election
contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the Board; or 

  

 7 

	 	(c)	the consummation of a merger, consolidation, reorganization, recapitalization or statutory share exchange involving the Company or a sale or other disposition of all or
substantially all of the assets of the Company in one or a series of transactions (a “Business Combination”), unless, immediately following such Business Combination, each of the following two conditions is satisfied: (i) all
or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring
corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of the Company’s assets either directly or through one or more
subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities, respectively; and (ii) no Person (excluding the Acquiring Corporation or any employee benefit plan (or related trust) maintained or sponsored by the Company or by the Acquiring
Corporation) beneficially owns, directly or indirectly, 50% or more of the then outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of the then-outstanding securities of such corporation entitled to vote
generally in the election of directors (except to the extent that such ownership existed prior to the Business Combination); or 

  

	 	(d)	approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 

  

	10.	Voluntary Resignation or Termination for Cause. If Executive terminates his employment with the Company on his own initiative (other than for Good Reason), or is terminated
by the Company for “Cause” as described in Section 7(b), or his employment terminates under Section 7(e), this Agreement and his employment shall terminate without any further payments by the Company, including, without
limitation, severance and/or COBRA premiums, but not including any accrued but unpaid salary and any accrued but unused vacation (including without limitation any vacation that has previously been carried over pursuant to Section 5.2 of this
Agreement), all of which shall be immediately paid in full, and all stock options and other stock rights heretofore or herein granted to Executive shall cease vesting as of the date of termination in accordance with the provisions of the applicable
stock option or other agreement. Notwithstanding the foregoing, payment of any accrued but unused vacation shall be subject to the provisions of Sections 17 and 18, if applicable at the time of such termination. 

  

 8 

	11.	Confidentiality; Non-Competition. Executive acknowledges that his employment by the Company brings him into close contact with many confidential affairs of the Company,
including information about strategies, costs, profits, markets, sales, key personnel, pricing policies, operational methods and other business affairs, methods and information, including plans for future developments, not readily available to the
public and that he will be privy to confidential technical information about the Company’s products and future product plans. In recognition of the foregoing, Executive covenants and agrees that: 

  

	 	(a)	He will not, prior to the twelve (12) month anniversary of termination of his employment for any reason, directly or indirectly, for his own account or for any other person, as
agent, employee, officer, director, trustee, consultant, owner, partner or shareholder, or in any other capacity: 

 (i) Engage
in a Competitive Business. For purposes of this Agreement, a “Competitive Business” means the field of light-based aesthetic and medical treatment systems. 
 (ii) Solicit or attempt to induce any executive of the Company to terminate his or her employment with the Company or any affiliate of the Company; or

 (iii) Encourage, or assist any other person in encouraging, any customer or supplier of the Company or of any affiliate of the Company, to
terminate or alter its relationship with the Company. 
  

	 	(b)	Executive acknowledges that the provisions of subsection (a) above are supported by adequate consideration. 

  

	 	(c)	Notwithstanding the provisions of subsection 11(a)(i), Executive may own a beneficial interest in any Competitive Business provided that such investment constitutes not more than
one percent (1%) of the outstanding capital stock of the Competitive Business. 

  

	 	(d)	Executive agrees that the duration and geographic scope of the non-competition and non-solicitation provisions set forth in this Agreement are reasonable. In the event that any
court determines that the duration or the geographic scope, or both, are unreasonable and that this Agreement is to that extent unenforceable, the parties agree that this Agreement shall remain in full force and effect for the greatest time period
and the greatest area that would not render it unenforceable. 

  

 9 

	 	(e)	Executive agrees that the remedy at law for any breach or threatened breach of any covenant contained in this Section 11 will be inadequate, and that the Company, in addition
to such other remedies as may be available to it, in law or in equity, shall be entitled to injunctive relief without bond or other security. 

  

	 	(f)	This Section 11 shall survive termination of this Agreement for any reason, provided, however, that the provisions of subsection (a)(i) of this Section 11 shall not apply
to Executive in the event he is terminated without Cause, resigns for Good Reason or is terminated pursuant to the provisions of Section 7.3(e) of this Agreement. 

  

	12.	Successors. 

  

	 	12.1	Successor to Company. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business or assets of the Company expressly to assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain an assumption of
this Agreement at or prior to the effectiveness of any succession shall be a breach of this Agreement and shall constitute Good Reason if the Executive elects to terminate employment, except that for purposes of implementing the foregoing, the date
on which any such succession becomes effective shall be deemed the Date of Termination. As used in this Agreement, “Company” shall mean the Company as defined above and any successor to its business or assets as aforesaid which assumes and
agrees to perform this Agreement, by operation of law or otherwise. 

  

	 	12.2	Successor to Executive. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the Executive should die while any amount would still be payable to the Executive or his family hereunder if the Executive had continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to the executors, personal representatives or administrators of the Executive’s estate. 

  

	13.	Governing Law and Severability. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts. The invalidity or
unenforceability of any provision of this Agreement shall not affect the other provisions of this Agreement and this Agreement shall be construed and reformed to the fullest extent possible. Executive may not assign any of his rights or obligations
under this Agreement. 

  

 10 

	14.	Termination of Previous Employment Agreements: Entire Agreement. Effective as of the date of this Agreement, all prior employment agreements shall be terminated and have no
further force or effect. This Agreement constitutes the entire employment agreement between Executive and the Company concerning the subject matter hereof and supersedes any prior negotiations, understandings or agreements concerning the subject
matter hereof, whether oral or written, and may be amended or rescinded only upon the written consent of the Company and Executive. 

  

	15.	Agreement Binding. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the Company, and any successor (whether directly or
indirectly by purchase, merger, consolidation, reorganization or otherwise) of the Company. 

  

	16.	Notices. Any notice required or permitted to be given pursuant to this Agreement shall be in writing, and sent to the party for whom (or which) it is intended at the address
of such parties set forth below by registered or certified mail return receipt requested or at such other address either party shall designate by notice to the other in the manner provided herein for giving notice. 

  

			
	If to the Company:	  	Mr. Thomas Robinson
		  	Chairman of the Compensation Committee
		  	c/o Spencer Stuart, Inc.
		  	21 Custom House Street
		  	8th Floor
		  	Boston, Massachusetts 02110
		
	If to the Executive:	  	Mr. Michael R. Davin
		  	92 Kimball Road
		  	Carlisle, Massachusetts 01741

  

	17.	Section 409A Compliance. 

  

	 	(a)	Subject to this Section 17, payments or benefits under Sections 8 shall begin only upon the date of a “separation from service” of the Executive (determined as set
forth below) which occurs on or after the termination of the Executive’s employment. The following rules shall apply with respect to distribution of the payments and benefits, if any, to be provided to the Executive under Section 8, as
applicable: 

 (i) It is intended that each installment of the payments and benefits provided under Section 8 shall be
treated as a separate “payment” for purposes of Section 409A of the Code and the guidance issued thereunder (“Section 409A”). 

  

 11 

 
Neither the Company nor Executive shall have the right to accelerate or defer the delivery of any such payments or benefits except to the extent specifically
permitted or required by Section 409A. 
 (ii) If, as of the date of the “separation from service” of Executive from the
Company, Executive is not a “specified employee” (within the meaning of Section 409A), then each installment of the payments and benefits shall be made on the dates and terms set forth in Section 8. 
 (iii) If, as of the date of the “separation from service” of Executive from the Company, Executive is a “specified employee” (within
the meaning of Section 409A), then: 
 (1) Each installment of the payments and benefits due under Section 8 that,
in accordance with the dates and terms set forth herein, will in all circumstances, regardless of when the separation from service occurs, be paid within the Short-Term Deferral Period (as hereinafter defined) shall be treated as a short-term
deferral within the meaning of Treasury Regulation Section 1.409A-1(b)(4) to the maximum extent permissible under Section 409A. For purposes of this Agreement, the “Short-Term Deferral Period” means the period ending on the later
of the 15th day of the third month following the end of the Executive’s tax year in which the separation from service occurs and the 15th day of the third month following the end of the Company’s tax year in which the separation from
service occurs; and 
 (2) Each installment of the payments and benefits due under Section 8 that is not described in
Section 17(a)(iii)(1) and that would, absent this subsection, be paid within the six-month period following the “separation from service” of Executive from the Company shall not be paid until the date that is six months and one day
after such separation from service (or, if earlier, Executive’s death), with any such installments that are required to be delayed being accumulated during the six-month period and paid in a lump sum on the date that is six months and one day
following Executive’s separation from service and any subsequent installments, if any, being paid in accordance with the dates and terms set forth herein; provided, however, that the preceding provisions of this sentence shall not apply to any
installment of payments and benefits if and to the maximum extent that that such installment is deemed to be paid under a separation pay plan that does not provide for a deferral of compensation by reason of the application of Treasury Regulation
1.409A-1(b)(9)(iii) (relating to separation pay upon an involuntary separation 

  

 12 

 
from service). Any installments that qualify for the exception under Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the last
day of Executive’s second taxable year following his taxable year in which the separation from service occurs. 
  

	 	(b)	The determination of whether and when a separation from service of Executive from the Company has occurred shall be made and in a manner consistent with, and based on the
presumptions set forth in, Treasury Regulation Section 1.409A-1(h). Solely for purposes of this Section 17(b), “Company” shall include all persons with whom the Company would be considered a single employer under
Section 414(b) and 414(c) of the Code. 

  

	 	(c)	All reimbursements and in-kind benefits provided under the Agreement shall be made or provided in accordance with the requirements of Section 409A to the extent that such
reimbursements or in-kind benefits are subject to Section 409A. 

  

	18.	Section 280G Gross-Up. Notwithstanding any provisions in the Company’s 2004 Stock Option Plan, the following provisions shall apply with respect to Executive with
respect to Section 280G of the Code and not the provisions of the Company’s 2004 Stock Option Plan. 

  

	 	(a)	 In the event that the Company undergoes a “Change in Ownership or Control” (as defined below), the Company shall, within thirty (30) days after each
date on which Executive becomes entitled to receive (whether or not then due) a Contingent Compensation Payment (as defined below) relating to such Change in Ownership or Control, determine and notify Executive (with reasonable detail regarding the
basis for its determinations) (i) which of the payments or benefits due to Executive (under this Agreement or otherwise) following such Change in Ownership or Control constitute Contingent Compensation Payments, (ii) the amount, if any, of
the excise tax (the “Excise Tax”) payable pursuant to Section 4999 of the Code, by the Executive with respect to such Contingent Compensation Payment and (iii) the amount of the Gross-Up Payment (as defined below) due to
Executive with respect to such Contingent Compensation Payment. Within thirty (30) days after delivery of such notice to Executive, Executive shall deliver a response to the Company (the “Executive Response”) stating either
(A) that he agrees with the Company’s determination pursuant to the preceding sentence or (B) that he disagrees with such determination, in which case he shall indicate which payment and/or benefits should be characterized as a
Contingent Compensation Payment, the amount of the Excise Tax with respect to such Contingent Compensation Payment and the amount of 

  

 13 

	 	 
the Gross-Up Payment due to the Executive with respect to such Contingent Compensation Payment. The amount and characterization of any item in the Executive
Response shall be final; provided, however, that in the event that Executive fails to deliver an Executive Response on or before the required date, the Company’s initial determination shall be final. Within ninety (90) days after the due
date of each Contingent Compensation Payment to Executive, the Company shall pay to Executive, in cash, the Gross-Up Payment with respect to such Contingent Compensation Payment, in the amount determined pursuant to this Section 18(a).

  

	 	(b)	For purposes of this Section 18, the following terms shall have the following respective meanings: 

  

	 	(i)	“Change in Ownership or Control” shall mean a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets
of the Company determined in accordance with Section 280G(b)(2) of the Code. 

  

	 	(ii)	“Contingent Compensation Payment” shall mean any payment (or benefit) in the nature of compensation that is made or made available (under this Agreement or
otherwise) to a “disqualified individual” (as defined in Section 280G(c) of the Code) and that is contingent (within the meaning of Section 280G(b)(2)(A)(i) of the Code) on a Change in Ownership or Control of the Company.

  

	 	(iii)	“Gross-Up Payment” shall mean an amount equal to the sum of (i) the amount of the Excise Tax payable with respect to a Contingent Compensation Payment and
(ii) the amount necessary to pay all additional taxes imposed on (or economically borne by) the Executive (including the Excise Taxes, state and federal income taxes and all applicable employment taxes) attributable to the receipt of such
Gross-Up Payment. For purposes of the preceding sentence, all taxes attributable to the receipt of the Gross-Up Payment shall be computed assuming the application of the maximum tax rates provided by law. 

  

	19.	Acknowledgement. Executive represents and warrants that he has read this Agreement, that he has signed it voluntarily and with a full understanding of its terms, and that he
has had sufficient opportunity to consider this letter before signing it. Executive further acknowledges that he has been represented and advised by counsel of his choice in connection with the review and execution of this Agreement.

  

 14 

 IN WITNESS WHEREOF, each of the parties hereto has executed this Employment Agreement (which may be
executed in any number of counterparts, all of which taken together shall constitute one and the same instrument) as of the date and year first above written. 
  

			
	CYNOSURE, INC.
		
	By:	 	 /s/ Thomas H. Robinson

		 	Thomas H. Robinson
		 	Chairman of the Compensation Committee
	
	EXECUTIVE:
		
		 	 /s/ Michael R. Davin

		 	Michael R. Davin

  

 15 

 Exhibit A 
 Adjusted Net Profit (ANP) will be calculated on an annual basis as follows according to the consolidated audited financials of the Company. ANP will include all entries related to the operation under direct control of
the CEO, and not include items such as one time write offs and Sona equity loss or gain. Tax impact will be calculated at a standard rate in order the incentive not to be affected by the company’s fiscal policies 
 + (A) Profit before taxation +-(B) Sona 
 equity loss
+-(C) One time write off or 
 earnings +-(D) minority interest (China sub) 
 Adjusted Gross Profit = A +-B +-C +-D 
 Adjusted Net Profit = Adjusted Gross Profit x (1-34%) 
  

 16

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