Document:

Exhibit
10.16

 

RELIANT TECHNOLOGIES, INC.

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (“Agreement”) is entered into as of April 4, 2006, by
and between ANJA B. KRAMMER (“Executive”) and RELIANT TECHNOLOGIES, INC. (the “Company”), a Delaware
corporation.

 

WHEREAS,
the Company desires to employ Executive to provide personal services to the
Company, and wishes to provide Executive with certain compensation and benefits
in return for her services; and

 

WHEREAS,
Executive wishes to be employed by the Company and to provide personal services
to the Company in return for certain compensation and benefits.

 

NOW,
THEREFORE, in consideration of the mutual promises and
covenants contained herein, it is hereby agreed by and between the parties
hereto as follows:

 

1.             EMPLOYMENT BY THE
COMPANY.

 

1.1          Title,
Responsibilities and Start Date. Subject to the terms set forth herein, the
Company agrees to employ Executive in the position of Vice President, Marketing,
and Executive hereby accepts such employment effective April,                  2006,
which shall not be later than April 5, 2006 (the “Effective Date”) During her
employment with the Company, Executive will devote her best efforts and all of
her business time, skill and attention (except for vacation periods and reasonable
periods of illness or other incapacity permitted by the Company’s general
employment policies) to the business of the Company. Company understands that Executive would like to offer her former
employer the unpaid use of her services to transition her
responsibilities in connection with the termination of her employment. 
If Executive’s former employer accepts such offer from Executive, the
Company authorizes Executive up to two weeks paid time between Effective
Date and April 28, 2006 for this purpose; provided, however,
that Executive will attend the ASLMS and will participate in strategic
planning activities with other Company personnel during such time. 
Executive will ensure that her activities on behalf of the Company
will not conflict with or violate any duties and obligations to her
former employer.  In addition, Executive agrees at all
times after the date of this Agreement to fully perform her duties and
obligations under this Agreement and the Company’s Confidentiality
Agreement referenced below in Section 3.1.”

 

1.2          Executive Duties. Executive
shall perform the duties of Executive’s office as required by the Company’s
Chief Executive Officer and/or the Board of Directors of the Company (the “Board”).

 

1.3          Company Employment
Policies. The employment relationship between the parties shall be governed
by the general employment policies and procedures

 

 

of the Company, including those relating to the
protection of confidential information and assignment of inventions, except
that when the terms of this Agreement differ from or are in conflict with the
Company’s general employment policies or procedures, this Agreement shall
control.

 

2.             COMPENSATION.

 

2.1          Salary. Executive
shall receive for services to be rendered hereunder a base salary at an
annualized rate of $220,000.00, payable on a  semi-monthly
basis in accordance with the Company’s regular payroll dates (the “Salary”),
which Salary shall be effective on Executive’s first day of employment with the
Company. Executive may be considered for increases in Salary in accordance with
Company policy and subject to review and approval by the Board.

 

2.2          Executive Bonus Plan. Executive
shall be eligible to participate in the Executive Bonus plan, (EBP attached for
reference) in 2006 at the level of 30% of Executive’s Salary. The Board may, in
its sole discretion, adjust the EBP and participation levels of executive in
subsequent years. All bonus compensation shall be subject to applicable payroll
withholdings and employment taxes.

 

2.3          Special Consideration. Executive
will receive a $5,000 sign-on bonus, payable within the first 30 days of
employment. Executive shall be eligible to receive an additional bonus of up to
$42,000.00. This bonus is intended to compensate Executive for the loss of a
quarterly bonus amount, stock option and ESPP value expected to be paid by
former Employer at termination (“Former Employment Bonus”). In the event the
Executive does not receive the entire Former Employment Bonus, it is the
Company’s intention to make Executive whole by paying the unpaid portion of
this Former Employment Bonus amount up to $42,000.00.

 

2.4          Equity Consideration. In
accordance with the terms of the Company’s Stock Option Plan (the “Plan”) and a
standard stock option agreement, and subject to approval and price set by the
Board of Directors, Executive will be granted an option to purchase 150,000 shares
of the Company’s common stock (the “Equity Consideration”), vesting over three
years, such that 33.33% will vest at the end of her first year of employment
and 1/24th of the remaining unvested shares shall vest monthly thereafter over
the next twenty four (24) months; provided that Executive continues to provide
services to the Company as an employee or consultant during such time as
required by the Plan. The Equity Consideration shall be early exercisable
pursuant to a purchase agreement in a form acceptable to the Company. Except as
otherwise specifically set forth herein or in the Plan or in the applicable
stock option agreements, in the event of termination of Executive’s employment
with the Company for any reason, the Equity Consideration, all stock options
and other stock awards held by Executive shall cease vesting as of the date of
termination, and shall be exercisable thereafter only pursuant to the terms of
the Plan and applicable stock option agreements.

 

2.5          Standard Company
Benefits. Executive shall be entitled to all rights and benefits for which
he is eligible under the terms and conditions of the standard

 

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Company benefits and compensation plans which may be
in effect from time to time and provided by the Company to its executives,
including but not limited to medical, dental and vacation.

 

2.6          Relocation Benefit and
Housing Expense. Company will pay Executive a housing allowance in the
amount of $1,000.00 monthly. In the event the Executive desires to relocate to
California, Company will pay up to 50% of current base salary for reimbursement
of usual and customary relocation expenses, including, but not limited to—cost
of packing and transporting household goods, shipping cars/pets; house-hunting
expenses; mortgage penalties; closing costs. Such reimbursement shall be against
actual expense receipts. Executive shall be eligible for this relocation
expense reimbursement for a period up to and through Executive’s second
anniversary with the Company. Upon relocation, the monthly housing allowance
payment will cease.

 

3.             CONFIDENTIAL
INFORMATION, RIGHTS AND DUTIES.

 

3.1          Confidential Information.
As the Vice President, Marketing, Executive will be privy to extremely
sensitive, confidential and valuable commercial information and trade secrets
belonging to the Company, the use and disclosure of which information and
secrets would greatly harm the Company. Accordingly, as a condition of
Executive’s employment, Executive shall be required to execute, deliver and
abide by the Company’s Employee Proprietary Information attached hereto as Exhibit A (the “Confidentiality Agreement”).

 

3.2          Exclusive Property. Executive
agrees that all Company-related business procured by the Executive, and all
Company-related business opportunities and plans made known to Executive, while
employed by the Company are and shall remain the permanent and exclusive
property of the Company.

 

4.             OUTSIDE ACTIVITIES.

 

4.1          Activities. Except
with the prior written consent of the Board, Executive will not during his
employment with the Company undertake or engage in any other employment,
occupation or business enterprise, other than ones in which Executive is a
passive investor. Executive may engage in civic and not-for-profit activities
so long as such activities do not materially interfere with the performance of
her duties hereunder.

 

4.2          No Adverse Business
Activities. Throughout the term of Executive’s employment with the Company,
Executive agrees not to, directly or indirectly, without the prior written
consent of the Board, own, manage, operate, join, control, finance or
participate in the ownership, management, operation, control or financing of,
or be connected as an officer, director, executive, partner, employee,
principal, agent, representative, consultant, licensor, licensee or otherwise
with, any business or enterprise engaged in any business which is competitive
with or which is reasonably anticipated to be competitive with the business of
the Company (“Competitive Activity”). Notwithstanding the above, Executive will
not be deemed to be engaged directly or indirectly in any Competitive Activity
if Executive participates in any such business solely as a passive

 

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investor in up to one percent (1%) of the equity
securities of a company or partnership, the securities of which are publicly
traded. During Executive’s employment with the Company, Executive agrees not to
acquire, assume or participate in, directly or indirectly, any position,
investment or interest known to be adverse or antagonistic to the Company, its
business or prospects, financial or otherwise.

 

5.             TERMINATION OF
EMPLOYMENT WITH OR WITHOUT CAUSE OR RESIGNATION WITH OR WITHOUT GOOD REASON.

 

5.1          At-Will Employment. Executive’s relationship with the
Company is at-will. The Company shall have the right to terminate Executive’s
employment with the Company at any time and for any reason, with or without
notice. Executive may be removed from any position she holds in the manner
specified by the Bylaws of the Company and applicable law or, if not specified,
then by the Board; provided that such at-will employment relationship shall not
affect any benefits to which Executive is entitled pursuant to this Agreement.

 

5.2          Definitions.

 

(a)           For purposes of
this Agreement, “Cause” means the occurrence of any one or more of the
following:  (i) Executive’s commission of
any crime involving fraud, dishonesty or moral turpitude; (ii) Executive’s
attempted commission of or participation in a fraud or act of dishonesty
against the Company that results in (or might have reasonably resulted in)
material harm to the business of the Company; (iii) Executive’s intentional,
material violation of any contract or agreement between Executive and the
Company or any statutory duty owed to the Company; or (iv) conduct by Executive
that constitutes gross insubordination, incompetence or habitual neglect of
duties and that results in (or might have reasonably resulted in) material harm
to the business of the Company; provided, however, that the action or conduct
described in clauses (iii) and (iv) above will constitute “Cause” only if such
action or conduct continues after the Company has provided Executive with
written notice thereof and a period of thirty (30) days to cure the same.
Notwithstanding the foregoing, Executive’s death or disability shall not
constitute Cause as set forth herein. The determination that a termination is
for Cause shall be made by the Board in good faith; provided that in the event there is a dispute as to whether a
termination is for Cause, such dispute shall be resolved pursuant to Section
11.9 of this Agreement.

 

(b)           For purposes of
this Agreement, “Good Reason” to resign
Executive’s employment with the Company will exist if one or more of the
following actions are taken by the Company without her consent:  (i) the assignment to her of any duties or
responsibilities that results in a material diminution in her function as the
Company’s Vice President, Marketing; (ii) forced relocation of her residence, except
for required travel by you on the Company’s business to an extent substantially
consistent with business travel obligations of Vice President, Marketing of
other companies that are similarly situated to the Company; or (iii) a material
breach by the Company of any provision of a material agreement between you and
the Company concerning the terms and conditions of your employment (including a
reduction in Salary, bonus, benefits (unless

 

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such reduction in Salary, bonus or benefits is applicable to all
executives) or failure by a successor corporation to assume and abide by the
terms and conditions of this Agreement); provided, however, that the action or
conduct described in clause (iii) above will constitute “Good Reason” only if
such action or conduct continues after you have provided the Company with
written notice thereof and fifteen (15) days to cure the same. Notwithstanding
the foregoing, Executive’s death or disability shall not constitute Good Reason
as set forth herein. The determination that a resignation is for Good Reason
shall be made by the Board in good faith; provided that in the event there is a
dispute as to whether a resignation is for Good Reason, such dispute shall be
resolved pursuant to Section 11.9 of this Agreement.

 

5.3          Termination for Cause or
Resignation without Good Reason. If the Company terminates Executive’s
employment at any time for Cause or if Executive resigns for any reason other
than for Good Reason, Executive’s then current base salary shall cease on the
date of termination or resignation, as applicable, and Executive will not be
entitled to severance pay, pay in lieu of notice or any other such
compensation, other than payment of accrued salary and such other benefits as
expressly required in such event by applicable law or the terms of any
applicable Company benefit plans.

 

5.4          Termination Without
Cause or Resignation for Good Reason. If the Company terminates Executive’s
employment at any time without Cause or if Executive resigns at any time for
Good Reason, then Executive shall be entitled to receive, (i) a severance
payment in an aggregate amount equal to six (6) months of Executive’s then
current base salary, subject to withholdings and deductions, such sum payable
in semi-monthly installments in accordance with the Company’s standard payroll
practices; (ii) health, dental and vision benefits for a period of six (6)
months commencing on the date of termination or resignation, as applicable, and
at the same coverage terms as provided to Executive at the date of termination
or resignation, as applicable, provided that the parties hereto agree that
Executive is responsible for enrolling in COBRA; and (iii) the immediate
acceleration of options on 25,005 shares under the Equity Consideration (i.e.,
6/36 or 16.67% of the total number of shares subject to the Equity
Consideration) and 16.67% of any other stock awards held by Executive which
vest based solely on length of continuous service as an employee of or
consultant to the Company (i.e., disregarding awards which vest based on
milestones or other performance criteria). Executive’s receipt of this
severance payment, benefits and vesting acceleration provided in this Section
5.4 shall be conditioned on Executive’s full compliance with the release
requirements set forth in Section 8 of this Agreement and the period for
revocation of such release has expired. Notwithstanding anything contained in
this Agreement to the contrary, if Executive receives the benefits pursuant to
this Section 5.4, he shall not entitled to any other benefits under this
Agreement, including without limitation, Section 6.3.

 

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6.             CHANGE OF CONTROL.

 

6.1          Definitions.

 

(a)           “Change of Control”
means the occurrence, in a single transaction or in a series of related
transactions, of any one or more of the following events:

 

(i)            any Entity becomes
the owner, directly or indirectly, of securities of the Company representing
more than fifty percent (50%) of the combined voting power of the Company’s
then outstanding securities other than by virtue of a merger, consolidation or
similar transaction. Notwithstanding the foregoing, a Change in Control shall
not be deemed to occur (A) on account of the acquisition of securities of the
Company by any institutional investor, any affiliate thereof or any other
Entity that acquires the Company’s securities in a transaction or series of
related transactions that are primarily a private or public financing
transaction for the Company or (B) solely because the level of ownership held
by any Entity (the “Subject Person”) exceeds the designated percentage
threshold of the outstanding voting securities as a result of a repurchase or
other acquisition of voting securities by the Company reducing the number of
shares outstanding, provided that if a Change in Control would occur (but for
the operation of this sentence) as a result of the acquisition of voting
securities by the Company, and after such share acquisition, the Subject Person
becomes the owner of any additional voting securities that, assuming the
repurchase or other acquisition had not occurred, increases the percentage of
the then outstanding voting securities owned by the Subject Person over the
designated percentage threshold, then a Change in Control shall be deemed to
occur;

 

(ii)           there is
consummated a merger, consolidation or similar transaction involving (directly
or indirectly) the Company if, immediately after the consummation of such
merger, consolidation or similar transaction, the stockholders of the Company
immediately prior thereto do not own, directly or indirectly, either (A)
outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of
the surviving Entity in such merger, consolidation or similar transaction or
(B) more than fifty percent (50%)
of the combined outstanding voting power of the parent of the surviving Entity
in such merger, consolidation or similar transaction; or

 

(iii)         there is consummated
a sale, lease, license or other disposition of all or substantially all of the
consolidated assets of the Company and its subsidiaries, other than a sale,
lease, license or other disposition of all or substantially all of the
consolidated assets of the Company and its subsidiaries to an Entity, more than
fifty percent (50%) of the
combined voting power of the voting securities of which are owned by
stockholders of the Company in substantially the same proportion as their
ownership of the Company immediately prior to such sale, lease, license or
other disposition.

 

The term Change in Control shall not include a sale of assets, merger or other transaction
effected exclusively for the purpose of changing the domicile of the Company.

 

(b)          “Entity”
means a corporation, partnership or other entity, except that “Entity” shall
not include (A) the Company or any subsidiary of the Company, (B) an
underwriter temporarily holding securities pursuant to an offering of such
securities,

 

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or (C) an Entity owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their ownership of stock
of the Company.

 

6.2          Change of Control
Vesting Acceleration. Provided that Executive is employed by the Company as
of the date a Change of Control is consummated, then on such date, the final
twelve (12) months of vesting on all Equity Consideration shall accelerate
(i.e., such acceleration will affect the shares scheduled to vest in the last
twelve months of the vesting schedule). Thereafter, Executive will continue to
fulfill her duty of loyalty to the Company, or its successor, by using her best
efforts to perform her job duties satisfactorily.

 

6.3          Change of Control
Followed Within Twelve Months by Termination without Cause or Resignation for
Good Reason. In the event Executive’s employment with the Company is
involuntarily terminated without Cause by the Company or its successor, or
Executive resigns for Good Reason, and such termination or resignation occurs
within twelve (12) months following a Change of Control, then Executive shall
be entitled to receive:  (a) a severance
payment in an aggregate amount equal to six (6) months of Executive’s then
current base salary, subject to withholdings and deductions, such sum payable
in semi-monthly installments in accordance with the Company’s standard payroll
practices; (b) health, dental and vision benefits for a period of six (6)
months commencing on the date of termination and at the same coverage terms as
provided to Executive at the date of termination; provided that the parties
hereto agree that Executive is responsible for enrolling in COBRA; and (c) the
immediate acceleration of vesting on all Equity Consideration and other stock
awards held by Executive in an amount of shares equal to 100% of the then
unvested shares. Executive’s receipt of this severance payment, benefits and
vesting acceleration provided in this Section 6.3 shall be conditioned on
Executive’s full compliance with the release requirements set forth in Section
8 of this Agreement and the period for revocation of such release has expired. Notwithstanding
anything contained in this Agreement to the contrary, if Executive receives the
benefits pursuant to this Section 6.3, she shall not entitled to any other
benefits under this Agreement, including without limitation, Section 5.4.

 

7.             CESSATION OF SEVERANCE BENEFITS. If
Executive violates any provision of Sections 3, 8 or 9 of this Agreement, any
severance payments or other benefits being provided to Executive pursuant to
Sections 5 or 6 of this Agreement will cease immediately, and Executive will
not be entitled to any further compensation and benefits from the Company.

 

8.             NONSOLICITATION. In
the event Executive’s employment with the Company is terminated by the Company
or the Executive, then for one (1) year immediately following the termination
date, Executive shall not, without first obtaining the prior written approval
of the Company directly or indirectly solicit, induce, persuade or entice, or
attempt to do so, or otherwise cause, or attempt to cause, any employee or
independent contractor of the Company to terminate his or her employment or
contracting relationship in order to become an employee, or independent
contractor to or for any person or entity.

 

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9.             RELEASE. As a
condition of receiving the severance benefits under this Agreement to which
Executive would not otherwise be entitled, Executive shall execute a release in
the form attached hereto as Exhibit B (the “Release”).
Unless the Release is executed by Executive and delivered to the Company within
twenty-one (21) days after the termination of Executive’s employment with the
Company, Executive shall not receive any severance benefits (including
severance payments and vesting acceleration) provided for under this Agreement.
Such benefits shall not commence until such time as all periods of revocation
of such release have expired.

 

10.          LIMITATIONS AND
CONDITIONS ON PAYMENT OF BENEFITS

 

10.1        Parachute Payments.

 

(a)           Best After-Tax. If
any payment or benefit (including payments and benefits pursuant to this
Agreement) Executive would receive in connection with a Change in Control from
the Company or otherwise (“Payment”) would (i) constitute a “parachute payment”
within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended
(the “Code”), and (ii) but for this sentence, be subject to the excise tax
imposed by Section 4999 of the Code (the “Excise Tax”), then the Company shall
cause to be determined, before any amounts of the Payment are paid to
Executive, which of the following two alternative forms of payment would
maximize Executive’s after-tax proceeds: (i) payment in full of the entire
amount of the Payment (a “Full Payment”), or (ii) payment of only a part of the
Payment so that Executive receives the largest payment possible without the
imposition of the Excise Tax (a “Reduced Payment”), whichever amount results in
Executive’s receipt, on an after-tax basis, of the greater amount of the
Payment notwithstanding that all or some portion of the Payment may be subject to
the Excise Tax. For purposes of determining whether to make a Full Payment or a
Reduced Payment, the Company shall cause to be taken into account all
applicable federal, state and local income and employment taxes and the Excise
Tax (all computed at the highest applicable marginal rate, net of the maximum
reduction in federal income taxes which could be obtained from a deduction of
such state and local taxes). If a Reduced Payment is made, (i) the Payment
shall be paid only to the extent permitted under the Reduced Payment
alternative, and Executive shall have no rights to any additional payments
and/or benefits constituting the
Payment, and (ii) reduction in payments and/or benefits shall occur in the
following order unless Executive elects in writing a different order (provided,
however, that such election shall be subject to Company approval if made on or
after the date on which the event that triggers the Payment occurs): (1)
reduction of cash payments; (2) cancellation of accelerated vesting of equity
awards other than stock options; (3) cancellation of accelerated vesting of
stock options; and (4) reduction of other benefits paid to Executive. In the
event that acceleration of compensation from Executive’s equity awards is to be
reduced, such acceleration of vesting shall be canceled in the reverse order of
the date of grant unless Executive elects in writing a different order for
cancellation.

 

(b)           The independent
registered public accounting firm engaged by the Company for general audit
purposes as of the day prior to the effective date of the Change in Control
shall make all determinations required to be made under this Section 10.1. If
the independent registered public accounting firm so engaged by the Company is

 

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serving as accountant or auditor for the individual, entity or group
effecting the Change in Control, the Company shall appoint a nationally
recognized independent registered public accounting firm to make the
determinations required hereunder. The Company shall bear all expenses with
respect to the determinations by such independent registered public accounting
firm required to be made hereunder.

 

(c)           The independent
registered public accounting firm engaged to make the determinations hereunder
shall provide its calculations, together with detailed supporting
documentation, to the Company and Executive within fifteen (15) calendar days
after the date on which Executive’s right to a Payment is triggered (if
requested at that time by the Company or Executive) or such other time as
requested by the Company or Executive. If the independent registered public
accounting firm determines that no Excise Tax is payable with respect to a
Payment, either before or after the application of the Reduced Amount, it shall
furnish the Company and Executive with an opinion reasonably acceptable to
Executive that no Excise Tax will be imposed with respect to such Payment. Any
good faith determinations of the accounting firm made hereunder shall be final,
binding and conclusive upon the Company and Executive.

 

10.2        Application of Section 409A. In the event that the Company
determines that any cash severance payment benefit, accrued and unpaid bonus
payment, or continued health, dental and vision insurance coverage benefits
provided under this Agreement fails to satisfy the distribution requirement of
Section 409A(a)(2)(A) of the Code as a result of Section 409A(a)(2)(B)(i) of
the Code, the payment of such benefit shall be accelerated to the minimum
extent necessary so that the benefit is not subject to the provisions of
Section 409A(a)(1) of the Code. (The payment schedule as revised after the
application of the preceding sentence shall be referred to as the “Revised
Payment Schedule.”)  However, in the
event the payment of benefits pursuant to the Revised Payment Schedule would be
subject to Section 409A(a)(1) of the Code, the payment of such benefits shall
not be paid pursuant to the Revised Payment Schedule and instead the payment of
such benefits shall be delayed to the minimum extent necessary so that such
benefits are not subject to the provisions of Section 409A(a)(1) of the Code. The
Board may attach conditions to or adjust the amounts paid pursuant to this
Section 10.2 to preserve, as closely as possible, the economic consequences
that would have applied in the absence of this Section 10.2; provided, however, that no such condition
or adjustment shall result in the payments being subject to Section 409A(a)(1)
of the Code. Prior
to any actual payments under this Agreement to Executive, Executive and the
Company agree to work together in good faith to consider and implement
amendments to this Agreement which are necessary or appropriate to avoid
imposition of any additional tax or income recognition under Section 409A of
the Code and any temporary or final Treasury Regulations and Internal Revenue
Service guidance thereunder. The parties agree to cooperate with each other and
to take reasonably necessary steps in this regard.

 

11.          GENERAL PROVISIONS.

 

11.1        Notices. Any notices
provided hereunder must be in writing and shall be deemed effective upon the
earlier of personal delivery (including, personal delivery by facsimile
transmission), delivery by express delivery service (e.g. Federal

 

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Express), or the third day after mailing by first
class mail, to the Company at its primary office location and to Executive at
his address as listed on the Company payroll (which address may be changed by
written notice).

 

11.2        Severability. Whenever
possible, each provision of this Agreement will be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability will not affect any other provision or any other jurisdiction,
but such invalid, illegal or unenforceable provision will be reformed,
construed and enforced in such jurisdiction so as to render it valid, legal,
and enforceable consistent with the intent of the parties insofar as possible.

 

11.3        Waiver. If either
party should waive any breach of any provisions of this Agreement, he or it
shall not thereby be deemed to have waived any preceding or succeeding breach
of the same or any other provision of this Agreement.

 

11.4        Entire Agreement. This
Agreement (including all exhibits hereto), together with the Confidentiality
Agreement and the Equity Consideration constitutes the entire agreement between
Executive and the Company regarding the subject matter hereof and it supersedes
and replaces any prior agreement, promise, representation, written or
otherwise, between Executive and the Company (or any representative of the
Company) with regard to this subject matter. This Agreement is entered into
without reliance on any agreement, or promise, or representation, other than
those expressly contained or incorporated herein, and it cannot be modified or
amended except in a writing signed by Executive and a duly authorized officer
of the Company.

 

11.5        Counterparts. This
Agreement may be executed in separate counterparts, any one of which need not
contain signatures of more than one party, but all of which taken together will
constitute one and the same Agreement. Signatures transmitted via facsimile
shall be deemed the equivalent of originals.

 

11.6        Headings and Construction.
The headings of the sections hereof are inserted for convenience only and
shall not be deemed to constitute a part hereof or to affect the meaning
thereof. For purposes of construction of this Agreement, any ambiguities shall
not be construed against either party as the drafter.

 

11.7        Successors and Assigns. This
Agreement is intended to bind and inure to the benefit of and be enforceable by
Executive, the Company and their respective successors, assigns, heirs,
executors and administrators, except that Executive may not assign any of his
duties hereunder and he may not assign any of his rights hereunder without the
written consent of the Company.

 

11.8        Attorney Fees. If
either party hereto brings any action to enforce his or its rights hereunder,
the prevailing party in any such action shall be entitled to recover his or its
reasonable attorneys’ fees and costs incurred in connection with such action.

 

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11.9        Arbitration. To
provide a mechanism for rapid and economical dispute resolution, Executive and
the Company agree that any and all disputes, claims, or causes of action, in
law or equity, arising from or relating to this Agreement or its enforcement,
performance, breach, or interpretation, or to Executive’s employment with the
Company or the termination of Executive’s employment with the Company, will be
resolved, to the fullest extent permitted by law, by final, binding, and
confidential arbitration held in Santa Clara County, California and conducted
by Judicial Arbitration & Mediation Services (“JAMS”), under its
then-existing Rules and Procedures. Executive understands and agrees that under
this Section 11.9 of the Agreement, Executive is waiving his right to a jury
trial and his right to file any administrative agency charge with regard to any
such disputes, claims or causes of action, including, but not limited to, all
federal and state statutory and common law claims, claims related to Executive’s
employment with the Company or to the termination of that employment, claims
related to any breach of contract, tort, wrongful termination, discrimination,
wages or benefits, or claims for any form of equity or compensation. Notwithstanding
the provisions of this Section 11.9, any and all disputes, claims or causes of
action, in law or in equity, arising from or relating to the Confidentiality
Agreement will not be subject to mandatory arbitration, but may be resolved in
the courts of the State of California as set forth in the Confidentiality
Agreement. Nothing in this Section 11.9 of this Agreement is intended to
prevent either the Executive or the Company from obtaining injunctive relief in
court to prevent irreparable harm pending the conclusion of any such
arbitration.

 

11.10      Governing Law. All
questions concerning the construction, validity and interpretation of this
Agreement shall be governed by the law of the State of California as applied to
contracts made and to be performed entirely within California.

 

11.11      Exhibits.

 

Exhibit A– Proprietary
Information and Inventions Agreement

 

Exhibit B– Release

 

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IN WITNESS WHEREOF,
the parties have executed this Agreement effective as of the Effective Date
above written.

 

	
  RELIANT
  TECHNOLOGIES, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Len
  DeBenedictis

  	
   

  
	
  Len DeBenedictis

  	
   

  
	
  President and Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ANJA B.
  KRAMMER

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Anja B.
  Krammer

  	
   

  

 

12

 

EXHIBIT A

 

PROPRIETARY
INFORMATION AND INVENTIONS AGREEMENT

 

 

EXHIBIT B

 

RELEASE

 

In exchange for the
consideration under this Release Agreement to which Executive would not
otherwise be entitled, Executive hereby generally and completely releases the
Company and its directors, officers, employees, shareholders, partners, agents,
attorneys, predecessors, successors, parent or subsidiary entities, insurers,
affiliates and assigns from any and all claims, liabilities and obligations,
both known and unknown, that arise out of or are in any way related to events,
acts, conduct, or omissions prior to or on the date Executive signs this Release
Agreement. This general release includes, but is not limited to: (1) all claims
arising out of or in any way related to Executive’s employment with the Company
or the termination of that employment; (2) all claims related to Executive’s
compensation or benefits from the Company, including salary, bonuses,
commissions, vacation pay, expense reimbursements, severance pay, fringe
benefits, stock, stock options or any other ownership interests in the Company;
(3) all claims for breach of contract, wrongful termination or breach of the
implied covenant of good faith and fair dealing; (4) all tort claims, including
claims for fraud, defamation, emotional distress and discharge in violation of
public policy; and (5) all federal, state, and local statutory claims,
including claims for discrimination, harassment, retaliation, attorneys’ fees,
or other claims arising under the federal Civil Rights Act of 1964 (as
amended), the federal Americans with Disabilities Act of 1990, the federal Age
Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the California
Fair Employment and Housing Act, and the California Labor Code. Notwithstanding
the foregoing, Executive’s release shall not extend to any claims that may
arise after this Release Agreement is executed, including, without limitation,
any claims for breach of this Release Agreement.

 

Executive hereby
acknowledges that he is knowingly and voluntarily waiving and releasing any
rights Executive may have under the ADEA, and that the consideration given for
the foregoing waiver is in addition to anything of value to which Executive was
already entitled. Executive has been advised by this writing, as required by
the ADEA that: (a) Executive’s waiver and release does not apply to any claims
that may arise after Executive’s signing of this Release Agreement; (b)
Executive should consult with an attorney prior to executing this release; (c)
Executive has twenty-one (21) days within which to consider this release
(although Executive may choose to voluntarily execute this release earlier);
(d) Executive has seven (7) days following the execution of this release to
revoke the Release Agreement; and (e) this Release Agreement will not be
effective until the eighth day after this Release Agreement has been signed
both by Executive and by the Company (“Effective Date”).

 

In
giving this release, which includes claims that may be unknown to Executive at
present, Executive acknowledges that he has read and understands Section 1542
of the California Civil Code which reads as follows:

 

“A
general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release,

 

2

 

which if
known by him must have materially affected his settlement with the debtor.”

 

Executive expressly
waives and relinquishes all rights and benefits under that section and any law
of any jurisdiction of similar effect with respect to Executive’s release of
claims granted herein, including but not limited to Executive’s release of any
unknown or unsuspected claims granted herein.

 

3Exhibit 10.17

 

RELIANT TECHNOLOGIES, INC.

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”)
is entered into as of January 22, 2007, by and between BRUCE E.
MACMILLAN (“Executive”) and RELIANT TECHNOLOGIES, INC.
(the “Company”), a Delaware corporation.

 

WHEREAS, the Company desires to
employ Executive to provide personal services to the Company, and wishes to
provide Executive with certain compensation and benefits in return for his
services;  and

 

WHEREAS, Executive wishes to be
employed by the Company and to provide personal services to the Company in
return for certain compensation and benefits.

 

NOW, THEREFORE, in consideration
of the mutual promises and covenants contained herein, it is hereby agreed by
and between the parties hereto as follows:

 

1.                                      EMPLOYMENT BY THE COMPANY.

 

1.1                               Title
and Responsibilities. Subject to the terms set forth herein, the Company
agrees to employ Executive in the position of Vice President and General
Counsel, Corporate Secretary, and Executive hereby accepts such employment
effective January 22, 2007 (the “Effective Date”). During his employment with
the Company, Executive will report directly to the President and Chief Executive
Officer (“CEO”) of the Company in this role, and shall devote his best efforts
and all of his business time, skill and attention (except for vacation periods
and reasonable periods of illness or other incapacity permitted by the Company’s
general employment policies and authorized activities pursuant to Section 5.1
of this Agreement) to the business of the Company. Executive shall be the chief legal officer for the Company responsible
for its global legal affairs including, without limitation, overseeing
direction of all corporate legal activities and intellectual property issues.

 

1.2                               Executive
Duties. Executive will serve in an executive capacity and shall perform the
duties of Executive’s office as required by the CEO and all such other duties
reasonably assigned to Executive by the CEO from time to time. Executive shall be a member of the executive
management committee with additional responsibility for contributing to the
strategic direction and overall management of the Company.

 

1.3                               Company
Employment Policies. Executive’s employment relationship with the Company
shall be governed by the general employment policies and procedures of the
Company, including those relating to the protection of confidential information
and assignment of inventions, except that when the terms of this Agreement
conflict with the Company’s general employment policies or procedures, this
Agreement shall control.

 

1

 

2.                                      COMPENSATION.

 

2.1                               Base
Salary. Executive shall receive for services to be rendered hereunder a
base salary at an annualized rate of $235,000, payable on a semi-monthly basis
in accordance with the Company’s regular payroll dates, less required and
designated payroll withholdings and deductions (the “Base Salary”). Executive
may be considered for increases in Base Salary in accordance with Company policy
and subject to review and approval by the Board of Directors (the “Board”) or
the Compensation Committee of the Board (the “Compensation Committee”).

 

2.2                               Bonus
Compensation.

 

(a)                                  Executive
Bonus Plan. Effective January 1, 2007, Executive shall be eligible to
participate in the Company’s Executive Bonus Plan, as amended from time to time
(the “Bonus Plan”) on the same terms as other corporate officers. Pursuant to
the Bonus Plan, Executive shall be eligible to earn an annualized Target Bonus
equal to forty percent (40%) of Executive’s then-current Base Salary, based on
achievement of one hundred percent (100%) of the individual and Company
performance objectives and milestones established by the Board or Compensation
Committee, as applicable, for that year in its sole discretion. All bonus
compensation shall be paid subject to applicable payroll withholdings and
employment taxes.

 

(b)                                  Guaranteed
Bonus. For his services during the first quarter of calendar year 2007,
Executive shall receive a guaranteed bonus (the “Guaranteed Bonus”) under the
Bonus Plan equal to twenty percent (20%) of Executive’s actual Base Salary
earnings during the first quarter of 2007 (i.e., the
Guaranteed Bonus shall equal fifty percent (50%) of Executive’s Target Bonus,
prorated to reflect his partial year service). The Guaranteed Bonus shall be
paid at the same time and on the same terms as other executive bonuses under
the Bonus Plan. Executive must remain employed with the Company through and
including March 31, 2007 to receive the Guaranteed Bonus. Executive may also
receive an additional bonus payment for the first quarter of 2007 if the
Company achieves or exceeds its performance objectives during the period.

 

2.3                               Equity.

 

(a)                                  Stock
Options. On or about the Effective Date, Executive shall be granted an
option (the “Option”) to purchase a total of 285,000 shares of Company Common
Stock pursuant to the terms and conditions of the Company’s 2003 Equity Incentive Plan, as may be
amended from time to time (the “Stock Plan”). Shares under the Option shall
have a per share exercise price equal to the fair market value of a share of
Company Common Stock as of the date of grant, as determined by the Board or
Compensation Committee, as applicable, in its sole discretion. The Option shall
be subject to the terms and conditions set forth in this Agreement, the Stock
Plan and in a stock option grant notice and stock option agreement to be issued
to Executive. Shares under the Option shall have a three (3) year vesting
schedule with thirty three and one third percent (33.3%) of the shares vesting
upon Executive’s completion of one (1) year of continuous employment, and the
remaining shares vesting in equal monthly installments for each full month of
Executive’s continuous employment thereafter. Except as otherwise specifically
set forth herein (including Section 3 of the Consulting Arrangement attached
hereto

 

2

 

as Exhibit B), in the event of
termination of Executive’s employment with the Company for any reason, all
stock options and other stock awards then held by Executive shall cease vesting
as of the date of such termination (the “Termination Date”), and shall be
exercisable after the Termination Date pursuant to the terms of the applicable
stock option agreements. Upon either Executive’s termination of employment
without Cause (defined below) at any time, or Executive’s resignation for Good
Reason (defined below) at any time prior to or within twelve (12) months after
a Change in Control, and subject to Executive satisfying the release
requirements set forth in Section 9 of this Agreement, Executive shall have six
(6) months following the Termination Date (but not beyond the end of the
applicable option term, if earlier) to exercise any vested shares subject to
the Option, or any other stock options or equity awards then held by Executive.

 

(b)                                  Restricted
Stock Award.           On or
about the Effective Date, Executive will be granted a restricted stock
award (“RSA) of twenty thousand (20,000) shares of Company common stock which will become fully vested on the third
anniversary of the Effective Date of this Agreement provided Executive remains
continuously employed by the Company during the entire three year period.

 

(c)                                  Additional
Equity Awards.    Executive shall
be eligible to receive additional equity awards at the sole discretion of the
Board or the Compensation Committee.

 

3.                                      BENEFITS.

 

3.1                               General
Benefits. Executive shall be entitled to all rights and benefits for which
he is eligible under the terms and conditions of the standard Company benefits
and compensation plans which may be in effect from time to time and provided by
the Company to its employees and corporate officers generally, including but
not limited to group medical, dental and vision insurance plan participation
and 401(k) plan participation. Executive shall be reimbursed for all reasonable
documented business expenses incurred in connection with the performance of his
job duties in accordance with the Company’s expense reimbursement policies and
procedures in effect from time to time. The Company reserves the right to
modify benefits from time to time, in its sole discretion.

 

3.2                               Paid
Time Off. Executive shall accrue paid time off (“PTO”) each year in an
amount consistent with Company policy plus an additional two (2) weeks of PTO
per year, all of which shall be accrued in equal amounts on a monthly basis, up
to a maximum accrual “cap” of thirty-five (35) days.

 

4.                                      CONFIDENTIAL
INFORMATION, RIGHTS AND DUTIES.

 

4.1                               Confidential
Information. As a condition of employment, Executive must execute, deliver
and abide by the Company’s Employee Proprietary Information and Inventions
Agreement attached hereto as Exhibit A (the “Proprietary Information
Agreement”).

 

4.2                               Exclusive
Property. Executive agrees that all Company-related business procured by
the Executive, and all Company-related business opportunities and plans made
known to Executive, while employed by the Company are and shall remain the
permanent and exclusive property of the Company.

 

3

 

5.                                      OUTSIDE
ACTIVITIES.

 

5.1                               Activities.
Except with the prior written consent of the Board or Compensation
Committee, Executive will not during his employment with the Company undertake
or engage in any other employment, occupation or business enterprise, other
than ones in which Executive is a passive investor. Executive may engage in
civic and not-for-profit activities so long as such activities do not
materially interfere with the performance of his duties hereunder or create an
actual or threatened conflict of interest, as reasonably determined by the Board
or Compensation Committee, as applicable, in its sole discretion.

 

5.2                               No
Adverse Business Activities. Throughout the term of Executive’s employment
with the Company and during any post-employment consulting arrangement entered
into by the Company and Executive pursuant to Section 7.3 of this Agreement (if
applicable), Executive agrees not to, directly or indirectly, without the prior
written consent of the CEO, own, manage, operate, join, control, finance or
participate in the ownership, management, operation, control or financing of,
or be connected as an officer, director, executive, partner, employee,
principal, agent, representative, consultant, licensor, licensee or otherwise
with, any business or enterprise engaged in any business which is competitive
with or which is reasonably anticipated to be competitive with the business of
the Company (“Competitive Activity”). Notwithstanding the above, Executive will
not be deemed to be engaged directly or indirectly in any Competitive Activity
if Executive participates in any such business solely as a passive investor in
up to one percent (1%) of the equity securities of a company or partnership,
the securities of which are publicly traded. During Executive’s employment with
the Company, Executive agrees not to acquire, assume or participate in,
directly or indirectly, any position, investment or interest known to be
adverse or antagonistic to the Company, its business or prospects, financial or
otherwise.

 

6.                                      NONSOLICITATION.
During Executive’s employment with the Company and continuing for one (1)
year after the Termination Date, Executive shall not, without first obtaining
the prior written approval of the Company, directly or indirectly solicit,
induce, persuade or entice, or attempt to do so, any employee or independent
contractor of the Company to terminate his or her employment or contracting
relationship in order to become an employee or independent contractor to or for
any person or entity.

 

7.                                      TERMINATION
OF EMPLOYMENT/SEVERANCE BENEFITS.

 

7.1                               At-Will
Employment. Executive’s relationship with the Company is at will. Accordingly,
the Company shall have the right to terminate Executive’s employment at any time,
with or without Cause, and with or without advance notice. Likewise, Executive
shall have the right to resign at any time, with or without Good Reason. The
Company requests that Executive provide at least thirty (30) days advance
written notice of his intent to resign without Good Reason.

 

7.2                               Termination
Date Payment. Upon termination of Executive’s employment for any reason,
the Company shall pay Executive all accrued but unpaid Base Salary and bonus
compensation, and all accrued but unused PTO earned through the Termination
Date, less required and designated payroll withholdings and deductions. Executive
shall also be

 

4

 

reimbursed for all business
expenses incurred through and including the Termination Date pursuant to the
terms of Section 3.1 above, provided Executive submits such expenses for
reimbursement no later than thirty (30) days after the Termination Date. Except
as expressly provided herein, Executive shall not be entitled to receive any other
compensation or benefits from the Company after the Termination Date, with the
exception of any vested right Executive has under the express terms of a
written ERISA-qualified benefit plan (e.g., 401(k)
account).

 

7.3                               Termination
Without Cause/Resignation For Good Reason. Upon termination of Executive’s
employment without Cause at any time, or upon Executive’s resignation for Good
Reason at any time before or within twelve (12) months after a Change in
Control, Executive and the Company shall immediately commence a consulting
relationship on the terms set forth in Exhibit B hereto (the “Consulting
Arrangement”). No Consulting Arrangement will be deemed entered into if
Executive’s employment is terminated by the Company for Cause, Executive
resigns without Good Reason, or Executive resigns for Good Reason more than
twelve (12) months after the closing date of a Change in Control (the “CIC
Anniversary Date”).

 

7.4                               Definitions.

 

(a)                                  Cause.
For purposes of this Agreement, “Cause” for termination of Executive’s
employment means the occurrence of any one or more of the following:  (i) Executive’s commission of any crime
involving fraud, dishonesty or moral turpitude; (ii) Executive’s attempted
commission of or participation in a fraud or act of dishonesty against the
Company that results in (or might have reasonably resulted in) material harm to
the business of the Company; (iii) Executive’s intentional, material
violation of any contract or agreement between Executive and the Company or any
statutory duty owed to the Company; or (iv) conduct by Executive that
constitutes gross insubordination, gross incompetence or habitual neglect of
duties and that results in (or might have reasonably resulted in) material harm
to the business of the Company; provided, however,
that the action or conduct described in clauses (iii) and (iv) above will
constitute “Cause” only if such action or conduct continues after the Company
has provided Executive with written notice thereof and a period of thirty (30)
days to cure the same, provided such action or conduct is capable of cure. Termination
of Executive’s employment due to Executive’s death or disability shall not
constitute Cause for termination. The determination that a termination is for
Cause shall be made by the Board in good faith.

 

(b)                                  Good
Reason. For purposes of this Agreement, “Good Reason” for Executive to
resign his employment shall exist if one or more of the following actions are
taken by the Company without Executive’s consent:  (i) the change in Executive’s direct reporting
relationship to the CEO and/or assignment to Executive of duties or
responsibilities that, taken as a whole, results in a material diminution in
Executive’s function as the Company’s Vice President and General Counsel, and
Corporate Secretary (ii) a relocation of Executive’s business office to a
location more than twenty-five (25) miles from Mountain View, California and
such relocation results in a increase in Executive’s one-way commuting distance
from his home by twenty-five (25) miles or more, except for required travel by
Executive on Company business to an extent substantially consistent with
business travel obligations of Vice President and General Counsels of other
companies that are similarly situated to the Company; or (iii) a material breach
by the Company of any provision of a material agreement between Executive

 

5

 

and the Company concerning the
terms and conditions of Executive’s employment (including a reduction in Base
Salary, Target Bonus, benefits (unless such reduction in Base Salary, Target
Bonus or benefits is applicable to all executives of the Company) or failure by
a successor corporation to assume and abide by the terms and conditions of this
Agreement); provided, however, that the action or
conduct described above will constitute “Good Reason” only if such action or
conduct continues after Executive has provided the Board with written notice
thereof and fifteen (15) days to cure the same. Notwithstanding the foregoing,
Executive’s death or disability shall not constitute Good Reason for
resignation. Executive must resign within ninety (90) days after the date the
action which gives rise to Good Reason occurs in order to be deemed to have
resigned for Good Reason. The determination that a resignation is for Good
Reason shall be made by the Board in good faith.

 

8.                                      CHANGE
IN CONTROL.

 

8.1                               Accelerated
Vesting Benefits.

 

(a)                                  Acceleration
Upon a Change in Control. Provided that Executive is employed by the
Company as of the effective date of a Change in Control (the “Change in Control
Date”), on such date, the final twelve (12) months of vesting of all stock
options or other equity awards then held by Executive and any subsequently
granted stock options or equity awards) shall be accelerated such that all said
shares become vested as of the Change in Control Date. In addition, provided
that Executive is employed by the Company on the Change in Control Date, on
such date, the shares subject to the RSA shall become one hundred percent (100%)
vested.

 

(b)                                  Acceleration
Upon Completing 12-Months of Service Following a Change in Control. If
Executive remains actively employed in good standing with the Company for
twelve (12) months after the Change in Control Date, on the CIC Anniversary
Date, the second to last twelve (12) months of vesting of all stock options or
other equity awards granted by the Company and then held by Executive shall be
accelerated such that all said shares become vested as of the CIC Anniversary
Date.

 

(c)                                  Acceleration
Upon a Termination Without Cause or Resignation for Good Reason that Occurs One
Month Prior to Change in Control Date or on or Prior to The CIC Anniversary
Date. If, within one month prior to the Change in Control Date or following
a Change in Control but on or prior to the CIC Anniversary Date, Executive’s
employment is terminated by the Company without Cause or Executive resigns for
Good Reason, in addition to any benefits to which Executive may be entitled
pursuant to Sections 7.3 and 8.1 above (if applicable), Executive shall also be
entitled to receive accelerated vesting of all stock options and other equity
awards (including RSAs) granted by the Company then held by him such that all
shares subject to such options become one hundred percent (100%) vested as of
the Termination Date. Executive shall not be entitled to any accelerated
vesting benefits pursuant to this Section 8.1(c) if the Termination Date is
more than one month prior to the Change in Control Date or after the CIC
Anniversary Date.

 

6

 

8.2                               Definitions.

 

(a)                                  Change
in Control. For purposes of this Agreement, a “Change in Control” means the
first occurrence, in a single transaction or in a series of related
transactions, of any one or more of the following events:

 

(i)                                    any
Entity becomes the owner, directly or indirectly, of securities of the Company
representing more than fifty percent (50%) of the combined voting power of the
Company’s then outstanding securities other than by virtue of a merger,
consolidation or similar transaction. Notwithstanding the foregoing, a Change
in Control shall not be deemed to occur (A) on account of the acquisition of
securities of the Company by any institutional investor, any affiliate thereof
or any other Entity that acquires the Company’s securities in a transaction or
series of related transactions that are primarily a private or public financing
transaction for the Company or (B) solely because the level of ownership held
by any Entity (the “Subject Person”) exceeds the designated percentage
threshold of the outstanding voting securities as a result of a repurchase or
other acquisition of voting securities by the Company reducing the number of
shares outstanding, provided that if a Change in Control would occur (but for
the operation of this sentence) as a result of the acquisition of voting
securities by the Company, and after such share acquisition, the Subject Person
becomes the owner of any additional voting securities that, assuming the
repurchase or other acquisition had not occurred, increases the percentage of
the then outstanding voting securities owned by the Subject Person over the
designated percentage threshold, then a Change in Control shall be deemed to
occur;

 

(ii)                                there
is consummated a merger, consolidation or similar transaction involving
(directly or indirectly) the Company if, immediately after the consummation of
such merger, consolidation or similar transaction, the stockholders of the
Company immediately prior thereto do not own, directly or indirectly, either
(A) outstanding voting securities representing more than fifty percent (50%) of
the combined outstanding voting power of the surviving Entity in such merger,
consolidation or similar transaction or (B) more than fifty percent (50%) of the
combined outstanding voting power of the parent of the surviving Entity in such
merger, consolidation or similar transaction; or

 

(iii)                            there
is consummated a sale, lease, license or other disposition of all or
substantially all of the consolidated assets of the Company and its
subsidiaries, other than a sale, lease, license or other disposition of all or
substantially all of the consolidated assets of the Company and its
subsidiaries to an Entity, more than fifty percent (50%) of the combined voting
power of the voting securities of which are owned by stockholders of the
Company in substantially the same proportion as their ownership of the Company
immediately prior to such sale, lease, license or other disposition.

 

(iv)                               A
Change in Control shall not include a sale of assets, merger or other
transaction effected exclusively for the purpose of changing the domicile of
the Company. For avoidance of doubt, the parties understand and agree that the
accelerated vesting benefits provided herein shall be tied to the first Change
in Control transaction to occur after the Effective Date, and shall not be
applicable to subsequent Change in Control transactions.

 

7

 

(b)                                  Entity.
For purposes of this Agreement, an “Entity” means a corporation,
partnership or other entity, except that “Entity” shall not include (i) the
Company or any subsidiary of the Company, (ii) an underwriter temporarily
holding securities pursuant to an offering of such securities, or (iii) an
Entity owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of stock of the Company.

 

9.                                      RELEASE
REQUIREMENT. Executive must sign and allow to become effective a general
release of claims in substantially the form attached hereto as Exhibit C
(the “Release”) as a precondition to receiving the extended exercise period
available under Section 2.3 of this Agreement and accelerated vesting benefits
available under Section 8 of this Agreement, and to entering into the
Consulting Arrangement under Section 7.3 of this Agreement. Nothing within the Release shall release or excuse the Company
from any unperformed obligation(s) (which shall be specifically enumerated in
the Release as asserted by the Executive) owing to Executive as set forth in
this Agreement (including the Consulting Agreement), and the Release is not
meant to be a modification nor amendment of the terms therein. Executive
must sign the Release no later than thirty (30) days after the Termination Date
to receive the benefits under Sections 2.3, 7.3 and 8.1(c) of this Agreement;
within thirty (30) days after the Change in Control Date to receive any
benefits under Section 8.1(a) of the Agreement; and within thirty (30) days
after the CIC Anniversary Date to receive any benefits under Section 8.1(b) of
the Agreement.

 

10.                               LIMITATIONS
AND CONDITIONS ON PAYMENT OF BENEFITS.

 

10.1                        Parachute
Payments.

 

(a)                                  Best
After-Tax. If any payment or benefit (including payments and benefits
pursuant to this Agreement) Executive would receive in connection with a Change
in Control from the Company or otherwise (“Payment”) would (i) constitute a “parachute
payment” within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”), and (ii) but for this sentence, be subject to
the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the
Company shall cause to be determined, before any amounts of the Payment are
paid to Executive, which of the following two alternative forms of payment
would maximize Executive’s after-tax proceeds: (i) payment in full of the
entire amount of the Payment (a “Full Payment”), or (ii) payment of only a part
of the Payment so that Executive receives the largest payment possible without the
imposition of the Excise Tax (a “Reduced Payment”), whichever amount results in
Executive’s receipt, on an after-tax basis, of the greater amount of the
Payment notwithstanding that all or some portion of the Payment may be subject
to the Excise Tax. For purposes of determining whether to make a Full Payment
or a Reduced Payment, the Company shall cause to be taken into account all
applicable federal, state and local income and employment taxes and the Excise
Tax (all computed at the highest applicable marginal rate, net of the maximum
reduction in federal income taxes which could be obtained from a deduction of
such state and local taxes). If a Reduced Payment is made, (i) the Payment
shall be paid only to the extent permitted under the Reduced Payment alternative,
and Executive shall have no rights to any additional payments and/or benefits
constituting the Payment, and (ii) reduction in payments and/or benefits shall
occur in the following order unless Executive elects in writing a different
order (provided, however, that such election
shall be subject to Company approval if made on or after the date on which the
event that triggers the Payment occurs): (1) reduction of cash payments; (2)
cancellation of accelerated vesting of

 

8

 

equity awards other than stock
options; (3) cancellation of accelerated vesting of stock options; and (4)
reduction of other benefits paid to Executive. In the event that acceleration
of compensation from Executive’s equity awards is to be reduced, such
acceleration of vesting shall be canceled in the reverse order of the date of
grant unless Executive elects in writing a different order for cancellation.

 

(b)                                  The
independent registered public accounting firm engaged by the Company for
general audit purposes as of the day prior to the effective date of the Change
in Control shall make all determinations required to be made under this Section
10.1. If the independent registered public accounting firm so engaged by the
Company is serving as accountant or auditor for the individual, entity or group
effecting the Change in Control, the Company shall appoint a nationally
recognized independent registered public accounting firm to make the
determinations required hereunder. The Company shall bear all expenses with
respect to the determinations by such independent registered public accounting
firm required to be made hereunder.

 

(c)                                  The
independent registered public accounting firm engaged to make the
determinations hereunder shall provide its calculations, together with detailed
supporting documentation, to the Company and Executive within fifteen (15)
calendar days after the date on which Executive’s right to a Payment is
triggered (if requested at that time by the Company or Executive) or such other
time as requested by the Company or Executive. If the independent registered
public accounting firm determines that no Excise Tax is payable with respect to
a Payment, either before or after the application of the Reduced Amount, it
shall furnish the Company and Executive with an opinion reasonably acceptable
to Executive that no Excise Tax will be imposed with respect to such Payment. Any
good faith determinations of the accounting firm made hereunder shall be final,
binding and conclusive upon the Company and Executive.

 

10.2                        Application
of Section 409A. In the event that the Company determines that any cash
severance payment benefit, accrued and unpaid bonus payment, or continued
health, dental and vision insurance coverage benefits provided under this
Agreement fails to satisfy the distribution requirement of Section
409A(a)(2)(A) of the Code as a result of Section 409A(a)(2)(B)(i) of the Code,
the payment of such benefit shall be accelerated to the minimum extent
necessary so that the benefit is not subject to the provisions of Section
409A(a)(1) of the Code. (The payment schedule as revised after the application
of the preceding sentence shall be referred to as the “Revised Payment
Schedule.”)  However, in the event the
payment of benefits pursuant to the Revised Payment Schedule would be subject
to Section 409A(a)(1) of the Code, the payment of such benefits shall not be
paid pursuant to the Revised Payment Schedule and instead the payment of such
benefits shall be delayed to the minimum extent necessary so that such benefits
are not subject to the provisions of Section 409A(a)(1) of the Code. The Board
may otherwise modify the timing of payments, the amounts paid, and make other
modifications pursuant to this Section 10.2 to preserve, as closely as
possible, the economic consequences that would have applied in the absence of
this Section 10.2; provided, however,
that no such modification shall result in the payments being subject to Section
409A(a)(1) of the Code. Prior to any actual payments under this Agreement to
Executive, Executive and the Company agree to work together in good faith to
consider and implement amendments to this Agreement which are necessary or
appropriate to avoid imposition of any additional tax or income recognition under

 

9

 

Section 409A of the Code and
any temporary or final Treasury Regulations and Internal Revenue Service
guidance thereunder. The parties agree to cooperate with each other and to take
reasonably necessary steps in this regard.

 

11.                               ARBITRATION.
To provide a mechanism for rapid and economical dispute resolution,
Executive and the Company agree that any and all disputes, claims, or causes of
action, in law or equity, arising from or relating to this Agreement (including
all exhibits hereto) or its enforcement, performance, breach, or
interpretation, or to Executive’s employment with the Company or the
termination of Executive’s employment with the Company, will be resolved, to
the fullest extent permitted by law, by final, binding, and confidential
arbitration held in Santa Clara County, California and conducted by a single
arbitrator from the panel of Judicial Arbitration & Mediation Services (“JAMS”),
under its then-existing rules and procedures governing the arbitration of
employment-related disputes. Executive understands and agrees that under this
Section 11 of the Agreement, Executive is waiving his right to a jury trial and
his right to file any administrative agency charge with regard to any such
disputes, claims or causes of action, including, but not limited to, all
federal and state statutory and common law claims, claims related to Executive’s
employment with the Company or to the termination of that employment, claims
related to any breach of contract, tort, wrongful termination, discrimination,
wages or benefits, or claims for any form of equity or compensation. Nothing in
this Section 11 of this Agreement is intended to prevent either the Executive
or the Company from obtaining injunctive relief in court to prevent irreparable
harm pending the conclusion of any such arbitration.

 

12.                               GENERAL
PROVISIONS.

 

12.1                        Notices. Any
notices provided hereunder must be in writing and shall be deemed effective
upon the earlier of personal delivery (including, personal delivery by
facsimile transmission or email transmission), delivery by express delivery
service (e.g. Federal Express), or the third day
after mailing by first class mail, to the Company at its primary office
location and to Executive at his address as listed on the Company payroll
(which address may be changed by written notice).

 

12.2                        Severability.
Whenever possible, each provision of this Agreement will be interpreted in
such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision or any other
jurisdiction, but such invalid, illegal or unenforceable provision will be
reformed, construed and enforced in such jurisdiction so as to render it valid,
legal, and enforceable consistent with the intent of the parties insofar as
possible.

 

12.3                        Waiver. If
either party should waive any breach of any provisions of this Agreement, he or
it shall not thereby be deemed to have waived any preceding or succeeding
breach of the same or any other provision of this Agreement.

 

12.4                        Entire
Agreement. This Agreement, together with the Proprietary Information
Agreement and the other exhibits hereto, constitutes the entire agreement
between Executive and the Company regarding the subject matter hereof and it
supersedes and replaces

 

10

 

any prior agreement, promise,
representation, written or otherwise, between Executive and the Company (or any
representative of the Company) with regard to this subject matter. This
Agreement is entered into without reliance on any agreement, or promise, or representation,
other than those expressly contained or incorporated herein, and it cannot be
modified or amended except in a writing signed by Executive and a duly
authorized member of the Board.

 

12.5                        Counterparts.
This Agreement may be executed in separate counterparts, any one of which
need not contain signatures of more than one party, but all of which taken
together will constitute one and the same Agreement. Signatures transmitted via
facsimile or PDF shall be deemed the equivalent of originals.

 

12.6                        Headings
and Construction. The headings of the sections hereof are inserted for
convenience only and shall not be deemed to constitute a part hereof or to
affect the meaning thereof. For purposes of construction of this Agreement, any
ambiguities shall not be construed against either party as the drafter.

 

12.7                        Successors
and Assigns. This Agreement is intended to bind and inure to the benefit of
and be enforceable by Executive, the Company and their respective successors,
assigns, heirs, executors and administrators, except that Executive may not
assign any of his duties hereunder and he may not assign any of his rights
hereunder without the written consent of the Company.

 

12.8                        Governing
Law. All questions concerning the construction, validity and interpretation
of this Agreement shall be governed by the law of the State of California as
applied to contracts made and to be performed entirely within California.

 

12.9                        Exhibits.

 

Exhibit A – Proprietary Information Agreement

Exhibit B – Consulting Arrangement

Exhibit C –Release

 

11

 

IN WITNESS WHEREOF, the parties
have executed this Agreement effective as of the Effective Date above written.

 

	
  RELIANT TECHNOLOGIES, INC.

  
	
   

  
	
   

  
	
  /s/ Eric Stang

  	
   

  
	
  Eric Stang

  
	
  Chief Executive Officer

  
	
   

  
	
   

  
	
  BRUCE E. MACMILLAN

  
	
   

  
	
   

  
	
  /s/ Bruce E. MacMillan

  	
   

  

 

12

 

EXHIBIT A

 

EMPLOYEE PROPRIETARY INFORMATION
AND INVENTIONS AGREEMENT

 

A-1

 

EXHIBIT B

 

CONSULTING ARRANGEMENT

 

Set forth below are the terms and conditions of
Executive’s Consulting Arrangement with the Company following a termination
without Cause or a resignation for Good Reason.

 

1.                                      Consulting
Period. Executive shall serve as a consultant to the Company for six (6)
months after the Termination Date (the “Consulting Period”), unless Executive
engages in any Competitive Activity or violates any continuing obligation under
his Proprietary Information Agreement or Section 6 of the Agreement to which
this exhibit is attached, in which event the Consulting Arrangement shall
immediately terminate, and the Company shall have no continuing obligation to
pay any consulting fees or benefits, Executive shall have no further obligation
to provide any consulting services and Executive’s vesting of any stock options
shall immediately cease.

 

2.                                      Consulting
Services. Executive shall provide consulting services to the Company in any
area of his expertise upon request by the Company (the “Consulting Services”). Executive
shall provide the Consulting Services offsite at a location of his choosing,
unless his presence at a particular location is reasonably requested by the
Company. Executive shall make himself available to perform Consulting Services
throughout the Consulting Period, at reasonable times, for a maximum of twenty
(20) hours per month, provided that the Company shall not require Consulting
Services to be performed at a time or in a manner that would unreasonably
interfere with Executive’s ability to engage in any employment, consulting or
work relationship other than his consulting work for the Company (“Other Work
Activity”). As part of the Consulting Services, Executive shall, within the
first forty-five (45) days of the Consulting Period, provide the Company with a
report providing briefing information, as reasonably requested by the Company,
on Company operations and activities in which Executive had personal
involvement or about which he had personal knowledge and pending as of the
Termination Date.

 

3.                                      Consulting
Fees, Vesting and Benefits. The Company shall pay Executive consulting fees
(the “Fees”), paid in equal quarterly installments over the 6-month Consulting
Period, totaling fifty percent (50%) of Executive’s annualized Base Salary as
of the Termination Date. Executive shall also continue to vest any stock
options or other equity awards (at the same rate in effect immediately prior to
the termination of Executive’s employment) so long as Executive continues to
provide Consulting Services to the Company during the Consulting Period. Following
the Consulting Period, Executive shall have six (6) months to exercise any then
vested stock options or equity awards. In addition, provided the Executive
timely elects to continue his group health insurance benefits after the
Termination Date pursuant to the federal COBRA law or comparable state law and
the terms and conditions of the applicable Company group health insurance
plans, the Company shall also reimburse Executive for all health insurance continuation
premiums necessary to maintain Executive’s group health insurance coverage (for
himself and his covered dependents) as of the Termination Date in effect for
Consulting Period or until such earlier date as Executive is eligible for group
health insurance benefits through a subsequent employer. (Executive agrees to
notify the Company in writing no

 

B-1

 

later than five (5) days after
he becomes eligible for health insurance benefits through a subsequent
employer.)  Pursuant to its regular
business practice, the Company shall reimburse Executive for all reasonable
documented business expenses incurred in performing the Consulting Services.

 

4.                                      Taxes
and Withholding. The Company will not withhold from the Fees any amount for
taxes, social security or other payroll deductions, and will report the Fees on
an IRS Form 1099. Executive acknowledges that he will be solely responsible
for, and will file, on a timely basis, all tax returns and payments required to
be filed with, or made to, any tax authority with respect to the performance of
services and receipt of Fees, and that Executive will defend, indemnify and
hold harmless the Company with respect to any liability for any taxes,
penalties or interest t assessed by any taxing authority with respect to the
Fees or any other amounts paid to him pursuant to this Consulting Arrangement.

 

5.                                      Ownership
of Work Product. Executive hereby assigns to the Company all right, title
and interest in and to any work product created by Executive, or to which
Executive contributes in performing the Consulting Services (the “Work Product”),
including all copyrights, trademarks and other intellectual property rights
contained therein. Executive agrees to execute, at the Company’s request and
expense, all documents and other instruments necessary or desirable to confirm
such assignment, including without limitation, a copyright assignment in the
form required by the Company (“Assignment of Copyright”). In the event that
Executive does not, for any reason, execute such documents within a reasonable
time after the Company’s request, Executive hereby irrevocably appoints the
Company as his attorney-in-fact for the purpose of executing such documents on
his behalf, which appointment is coupled with an interest.

 

6.                                      Artist’s
and Moral Rights. If Executive has any rights, including without limitation
“artist’s rights” or “moral rights,” in the Work Product that cannot be
assigned, Executive agrees to waive enforcement worldwide of such rights
against the Company. In the event that Executive has any such rights that
cannot be assigned or waived, Executive hereby grants to the Company an
exclusive, royalty-free, worldwide, irrevocable, perpetual license to use,
reproduce, distribute, create derivative works of, publicly perform and
publicly display the Work Product in any medium or format, whether now known or
later developed.

 

7.                                      Representations
and Warranties. Executive represents and warrants that: (a) he has the
right and unrestricted ability to assign the Work Product to the Company as set
forth above, and (b) he will not create Work Product, which he knows or
reasonably should have known (without being required to make an independent
investigation), infringes upon any copyright, patent, trademark, right of
publicity or privacy, or any other proprietary right of any person, whether
contractual, statutory or common law. Executive agrees to indemnify the Company
from any and all damages, costs, claims, expenses or other liability (including
reasonable attorneys’ fees) arising from or relating to the breach by Executive
of the representations and warranties set forth in this Section.

 

8.                                      Independent
Contractor Relationship. During the Consulting Period, Executive’s
relationship with the Company will be that of an independent contractor, and
nothing in the Consulting Arrangement is intended to, or should be construed
to, create a

 

B-2

 

partnership, agency, joint
venture or employment relationship. Executive will not be entitled during the
Consulting Period to any of the benefits that the Company may make available to
its Executives, including, but not limited to, life insurance, profit-sharing
or retirement benefits. Executive shall not be authorized during the Consulting
Period to make any representation, contract or commitment on behalf of the
Company unless specifically authorized in writing to do so by the Company’s
Chief Executive Officer or his or her designee.

 

B-3

 

EXHIBIT C

 

RELEASE

 

In consideration for the [Consulting Arrangement]
[and] [Accelerated Vesting Benefits] to be provided to me pursuant to my
Executive Employment Agreement with Reliant Technologies, Inc. (the “Company”)
dated effective as of January 22, 2007 (the “Agreement”), I hereby release the
Company, its parents, subsidiaries, successors, predecessors and affiliates,
and each of such entities’ directors, officers, employees, shareholders,
agents, attorneys, insurers, affiliates and assigns, of and from any and all
claims, liabilities, demands, causes of action, costs, expenses, attorneys
fees, damages, indemnities and obligations of every kind and nature, in law,
equity, or otherwise, known and unknown, suspected and unsuspected, arising out
of or in any way related to agreements, events, acts or conduct at any time
prior to and including the date I sign this Release. This general release
includes, but is not limited to: (a) all claims arising out of or in any way
related to my employment with the Company, the termination of that employment
(if applicable), or my role or activities as a director of the Company or the
termination of that role (if applicable); (b) all claims related to my
compensation or benefits, including salary, bonuses, commissions, vacation pay,
expense reimbursements, severance pay, fringe benefits, stock, stock options,
or any other equity interests in the Company; (c) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing; (d) all tort claims, including claims for fraud,
defamation, emotional distress, and discharge in violation of public policy;
and (e) all federal, state, and local statutory claims, including claims for
discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under the federal Civil Rights Act of 1964 (as amended), the federal
Americans with Disabilities Act of 1990 (as amended), the federal Age
Discrimination in Employment Act (as amended), the California Labor Code, and
the California Fair Employment and Housing Act (as amended). I represent that I
have no lawsuits, claims or actions pending in my name, or on behalf of any
other person or entity, against the Company or any other person or entity subject
to the release granted in this paragraph. Notwithstanding the foregoing,
nothing in this Release shall waive any rights of indemnification I may have
pursuant to the Articles and Bylaws of the Company or any written directors and
officers liability or other Company insurance policy in effect from time to
time.

 

I acknowledge that I am also knowingly and voluntarily
waiving and releasing any rights that I have under the under the Age
Discrimination in Employment Act of 1967, as amended (the “ADEA”). I acknowledge
that the consideration given for this waiver and release is in addition to
anything of value to which I was already entitled. I further acknowledge that I
have been advised by this writing, as required by the ADEA, that:  (a) my waiver and release do not apply to any
rights or claims that arise after the date I sign this Release; (b) I have been
advised hereby that I should consult with an attorney prior to executing this
Release; (c) I have twenty-one (21) days to consider this Release (although I
may choose voluntarily to sign it earlier); (d) I have seven (7) days after the
date I sign this Release to revoke my agreement to it (by providing the Company
with written notice of such revocation); and (e) my acceptance of this Release
will not be effective until the date upon which the revocation period has
expired, which will be the eighth day after I sign it (provided I do not
earlier revoke my acceptance of it).

 

C-1

 

I understand that this Release includes a release of
all unknown and unsuspected claims. I acknowledge that I have read and
understand Section 1542 of the California Civil Code, which states:  “A general release does
not extend to claims which the creditor does not know or suspect to exist in
his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.”  I 
hereby waive all rights and benefits under Section 1542 of the
California Civil Code and any law or legal principle of similar effect in any
jurisdiction with regard to this Release, including my release of unknown and
unsuspected claims herein.

 

This Release, together with the Agreement (including
the exhibits thereto), constitutes the complete, final and exclusive embodiment
of the entire agreement between the Company and me with regard to the subject
matter hereof. I am not relying on any promise or representation that is not
expressly stated herein or in the Agreement.

 

	
  UNDERSTOOD AND AGREED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
  Bruce E. MacMillan

  	
   

  
					

 

C-2

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