Document:

Exhibit
10.22

 

RELIANT
TECHNOLOGIES

EXECUTIVE
BONUS PLAN

 

The Reliant Technologies Executive Bonus Plan (the “Plan”) is designed to
motivate and reward certain employees of Reliant Technologies (the “Company”) to produce results
that increase stockholder value and to encourage individual and team behavior
that helps the Company achieve both short and long-term corporate objectives.

 

The Board of Directors of the Company (the “Board”) has adopted this
Plan, effective with respect to bonus awards for Plan Years beginning on or
after January 1, 2007.

 

ARTICLE I.

 

CERTAIN DEFINITIONS

 

Section 1.1  -         Base Compensation.
“Base Compensation” of a Participant for a Performance Period shall mean the
Participant’s regular base salary actually earned during the Performance Period
(including without limitation any compensation that is deferred by Participant
into a Company-sponsored retirement or deferred compensation plan, but
excluding any employer matching contributions by the Company associated with
any such retirement or deferred compensation plan and excluding any other
Company contributions) and excludes all bonuses, incentives, commissions,
expatriate premiums, fringe benefits (including without limitation, moving
expenses and car allowances), relocation allowances, stock option grants,
equity awards, employee benefits and other similar items of compensation. Such
Base Salary shall be before both (i) deductions for taxes or benefits, and (ii)
deferrals of compensation pursuant to Company-sponsored plans.

 

Section 1.2  -         Change in Control.
“Change in Control” shall have the meaning given to such term in the Equity
Incentive Plan.

 

Section 1.3  -         Code. “Code” shall
mean the Internal Revenue Code of 1986, as amended.

 

Section 1.4  -         Committee. “Committee”
shall mean the Compensation Committee of the Board, or such other committee as
may be appointed by the Board.

 

Section 1.5  -         Common Stock. “Common
Stock” shall mean the common stock of the Company.

 

Section 1.6  -         Director. “Director”
shall mean a member of the Board.

 

Section 1.7  -         Eligible Individual.
“Eligible Individual” shall mean the Company’s officers (those executives with
Vice President titles or above) and such other employees of the Company as the
Committee may determine in its discretion.

 

Section 1.8  -         Equity Incentive Plan.
“Equity Incentive Plan” shall mean the Reliant Technologies 2003 Equity
Incentive Plan.

 

 

Section 1.9  -         Participant. “Participant”
shall mean any Eligible Individual selected by the Committee to receive a bonus
award under the Plan.

 

Section 1.10  -       Performance Goals. A
“Performance Goal” is, with respect to a Performance Period, the one or more
goals established by the Committee for the Performance Period based upon the
criteria described in Section 2.2, as may be adjusted under Section 2.3.

 

Section 1.11  -       Performance Period. A
“Performance Period” shall be the Plan Year, or an applicable portion thereof.

 

Section 1.12  -       Plan Year. Each “Plan
Year” shall run from [January 1st through December 31st].

 

Section 1.13  –      Target Award. A “Target
Award” means the target award payable under the Plan to a Participant for the
Performance Period, expressed as a percentage of Participant’s Base Salary or a
specific dollar amount, as determined by the Committee in accordance with
Section 2.1.

 

ARTICLE II.

 

BONUS AWARDS

 

Section 2.1  -         Participants; Bonus
Awards. The Committee, in its discretion, may grant bonus awards under the
Plan with regard to any given Performance Period to one or more of the Eligible
Individuals. At the time a bonus award is granted pursuant to this Section 2.1,
the Committee shall specify a bonus amount to be paid upon the achievement of
the Performance Goals established in accordance Section 2.2, which bonus amount
may be a specific dollar amount, or a specified percentage of the Participant’s
Base Compensation, subject to adjustment as provided herein.

 

Section 2.2  -         Performance Goals.
For each Plan Year with regard to which one or more Eligible Individuals is
selected by the Committee to receive a bonus award under the Plan, the
Committee shall establish in writing one or more objectively determinable
Performance Goals for such bonus award, based upon one or more of the following
business criteria, any of which may be measured either in absolute terms or as
compared to any incremental increase or as compared to the results of a peer
group:

 

•      revenue;

 

•      sales;

 

•      gross profit and/or gross
margin %

 

•      cash flow;

 

•      earnings per share of Common
Stock (including earnings before any one or more of the following: (i) interest,
(ii) taxes, (iii) depreciation, and (iv) amortization);

 

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•      return on equity;

 

•      total stockholder return;

 

•      return on capital;

 

•      return on assets or net
assets;

 

•      Earnings before income
taxes, depreciation and amortization (EBITDA)

 

•      Earning before income taxes
(EBIT)

 

•      income or net income;

 

•      operating income or net
operating income;

 

•      operating profit or net
operating profit;

 

•      operating margin;

 

•      cost reductions or savings;

 

•      research and development
expenses (including research and development expenses as a percentage of sales
or revenues);

 

•      working capital; and

 

•      market share.

 

Depending on the performance criteria used to
establish such Performance Goals, the Performance Goals may be expressed in
terms of overall Company performance or the performance of a division or
business unit. The Committee, in its discretion, may specify different
Performance Goals for each bonus award granted under the Plan and may specify
different Performance Goals for separate Performance Periods during a Plan Year.
The Committee shall define in an objective fashion the manner of determining
whether and to what extent the specified performance goal has been achieved for
a Performance Period with respect to a Plan Year; provided, however, that,
subject to Section 2.3, the achievement of each performance criteria shall be
determined in accordance with United States generally accepted accounting
principles (“GAAP”) to the extent applicable.

 

Section 2.3  -         Adjustments to
Performance Components. For each bonus award granted under the Plan, the
Committee, in its discretion, may, at the time of grant, specify in the bonus
award that one or more objectively determinable adjustments shall be made to
one or more of the Performance Goals established under Section 2.2. Such
adjustments may include or exclude one or more of the following:

 

•      items that are extraordinary
or unusual in nature or infrequent in occurrence;

 

•      items related to a change in
accounting principle;

 

•      items related to financing
activities;

 

•      expenses for restructuring
or productivity initiatives;

 

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•      other non-operating items;

 

•      items related to
acquisitions;

 

•      items attributable to the
business operations of any entity acquired by the Company during the Plan Year;

 

•      items related to the
disposal of a business or segment of a business;

 

•      items related to
discontinued operations that do not qualify as a segment of a business under
GAAP; and

 

•      any other items of
significant income or expense which are determined to be appropriate
adjustments.

 

The amount of any adjustment made pursuant to this
Section 2.3 shall be determined in accordance with GAAP.

 

Section 2.4  -         Other Incentive Awards.
The Plan is not the exclusive means for the Committee to award incentive
compensation to Participants and does not limit the Committee from making
additional discretionary incentive awards.

 

ARTICLE III.

 

PAYMENT OF BONUS AWARD

 

Section 3.1  -         Form of Payment. Each
Participant’s bonus award may be paid, at the option of the Committee, in cash,
or in Common Stock or right to receive Common Stock (such as restricted stock
or restricted stock units), or in any combination of cash and Common Stock or
right to receive Common Stock (such as restricted stock or restricted stock
units). Bonus award payments made in Common Stock shall be made in accordance
with the provisions of the Equity Incentive Plan. Unless otherwise specified by
the Committee the bonus shall be paid in cash.

 

Section 3.2  -         Certification; Timing
of Payment. Prior to the distribution of any bonus award payment, the
Committee shall certify in writing the level of performance attained by the
Company (relative to the applicable Performance Goals determined pursuant to
Section 2.2 (including any adjustments under Section 2.3)) for the Performance
Period to which such bonus award relates. Bonus award payments will be made
following the close of the Performance Period after the review and
certification of bonus award payments by the Committee. The Committee may
delegate the certification of the level of performance to any of its members.

 

Section 3.3  -         Negative Discretion.
The Committee, in its discretion, may reduce or eliminate the bonus amount
otherwise payable to any Participant under a bonus award.

 

Section 3.4  -         Terminations. Except
as provided in Section 3.5 or in a separate written agreement between the
Company and a Participant, if a Participant’s employment with the Company is
terminated for any reason other than death or disability prior to payment of
any bonus award payment, all of the Participant’s rights under the Plan shall
terminate and the Participant shall not have any right to receive any further
payments with respect to any bonus

 

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award granted under the Plan. The Committee, in its discretion, may
determine what portion, if any, of the Participant’s bonus award under the Plan
should be paid if the Participant’s employment has been terminated by reason of
death or disability.

 

Section 3.5  -         Change in Control.
If a Change in Control occurs after the close of a Performance Period, a
Participant’s bonus award will be paid based on performance in relation to the
specified Performance Goals. If a Change in Control occurs during the
Performance Period, the Participant will be paid a bonus prorated to the
effective date of the Change in Control and all Performance Goals will be
deemed to be met at the greater of 100% of the performance goal or the actual prorated
year-to-date performance. Notwithstanding anything to the contrary in Section
3.2, the payment of a bonus pursuant to this Section 3.5 shall be paid within
30 days of the effective date of the Change in Control. The Participant must be
employed by the Company or its successor on the effective date of the Change in
Control in order to receive a bonus payment pursuant to this Section 3.5.

 

ARTICLE IV.

 

ADMINISTRATION

 

Section 4.1  -         Duties and Powers of
Committee. It shall be the duty of the Committee to conduct the general
administration of the Plan in accordance with its provisions. The Committee
shall have the power to interpret the Plan, and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent therewith
and to interpret, amend or revoke any such rules.

 

Section 4.2  -         Determinations of the
Committee or the Board. All actions taken and all interpretations and
determinations made by the Committee or the Board in good faith shall be final
and binding upon all Participants, the Company and all other interested persons.
No members of the Committee or the Board shall be personally liable for any
action, inaction, determination or interpretation made in good faith with
respect to the Plan or any bonus award, and all members of the Committee and
the Board shall be fully protected by the Company in respect of any such
action, determination or interpretation.

 

ARTICLE V.

 

OTHER PROVISIONS

 

Section 5.1  -         Amendment, Suspension
or Termination of the Plan. This Plan may be wholly or partially amended or
otherwise modified, suspended or terminated at any time or from time to time by
the Board or the Committee.

 

Section 5.2  -         Effective Date. This
Plan shall be effective upon approval by the Committee (the “Plan Effective
Date”). The Committee may grant bonus awards under the Plan at any time on
or after the Plan Effective Date.

 

Section 5.3  -         Tax Withholding. The
Company shall have the authority and the right to deduct or withhold, or
require a Participant to remit to the Company, an amount sufficient to satisfy
federal, state, local and foreign taxes required by law to be withheld with
respect to any taxable event concerning a Participant arising in connection
with a bonus award granted under this Plan.

 

5Exhibit 10.23

 

RELIANT TECHNOLOGIES, INC.

 

CONSULTING
AGREEMENT

 

THIS AGREEMENT is made by RELIANT TECHNOLOGIES, INC. and  its
successors (“Reliant”) and MAYNARD HOWE (“Contractor”),
effective this 1st day of June, 2005, for the purpose of setting forth the
exclusive terms and conditions by which Reliant will acquire Contractor’s
services on a temporary basis. Reliant and Contractor hereby agree and
acknowledge that this Agreement amends and supersedes any and all other
employment and consulting arrangements by and between Reliant and Contractor.

 

In consideration of the mutual obligations specified
in this Agreement, and any compensation paid to Contractor for her or his
services, the parties agree to the following:

 

1.                                      Work
and Payment. Attached to this Agreement as Exhibit A
hereto is a statement of the work to be performed by Contractor, Contractor’s
rate of payment for such work, expenses to be paid in connection with such
work, the term of this Agreement and such other terms and conditions as shall
be deemed appropriate or necessary for the performance of the work.

 

Reliant is not obligated to issue any additional
orders for work by Contractor under this Agreement. Contractor should not
commence services under this Agreement until this Agreement is signed and
delivered by an authorized representative of Reliant.

 

2.                                      Nondisclosure
and Trade Secrets. During the term of this Agreement and in the course of
Contractor’s performance hereunder, Contractor may receive and otherwise be
exposed to confidential and proprietary information relating to Reliant’s
business practices, strategies and technologies. Such confidential and
proprietary information may include but not be limited to confidential and
proprietary information supplied to Contractor with the legend “Reliant
Confidential and Proprietary,” or equivalent, Reliant’s marketing and customer
support strategies, Reliant’s financial information, including sales, costs,
profits and pricing methods, Reliant’s internal organization, employee
information and customer lists, Reliant’s technology, including discoveries,
inventions, research and development efforts, processes, hardware/software
design and maintenance tools, samples, media and/or cell lines (and procedures
and formulations for producing any such samples, media and/or cell lines),
formulas, methods, product know-how and show-how, and all derivatives,
improvements and enhancements to any of the above which are created or
developed by Contractor under this Agreement and information of third parties
as to which Reliant has an obligation of confidentiality (collectively referred
to as “Information”).

 

Contractor acknowledges the confidential and secret
character of the Information, and agrees that the Information is the sole,
exclusive and extremely valuable property of Reliant. Accordingly, Contractor
agrees not to reproduce any of the Information without the applicable prior
written consent of Reliant, not to use the Information except in the
performance of this Agreement, and not to disclose all or any part of the
Information in any form to any third party, either during or after the term of
this Agreement. Upon termination of this Agreement for any

 

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reason, including expiration of term, Contractor agrees to cease using
and to return to Reliant all whole and partial copies and derivatives of the
Information, whether in Contractor’s possession or under Contractor’s direct or
indirect control.

 

Contractor shall not disclose or otherwise make
available to Reliant in any manner any confidential information of Contractor
or received by Contractor from third parties.

 

Contractor agrees not to export, directly or
indirectly, any U.S. source technical data acquired from Reliant or any
products utilizing such data to any countries outside the United States which
export may be in violation of the United States Export Laws or Regulations. Nothing
in this section releases Contractor from any obligation stated elsewhere in
this Agreement not to disclose such data.

 

This Section 2 shall survive the termination of
this Agreement for any reason, including expiration of term.

 

3.                                      Ownership
of Work Product. Contractor shall specifically describe and identify in Exhibit A to this Agreement all technology
(a) which Contractor intends to use in performing under this Agreement
(b) which is either owned solely by Contractor or licensed to Contractor
with a right to sublicense, and (c) which is in existence in the form of a
writing or working prototype prior to the effective date of this Agreement (“Background
Technology”).

 

Contractor agrees that any and all ideas,
improvements, inventions and works of authorship conceived, written, created or
first reduced to practice in the performance of work under this Agreement shall
be the sole and exclusive property of Reliant and hereby assigns to Reliant all
its right, title and interest in and to any and all such ideas, improvements,
inventions and works of authorship.

 

Contractor further agrees that except for Contractor’s
rights in Background Technology, Reliant is and shall be vested with all
rights, title and interests including patent, copyright, trade secret and
trademark rights in all of Contractor’s work product under this Agreement. Contractor
hereby grants to Reliant a non-exclusive, royalty free and worldwide right to
use and sublicense the use of Background Technology for the purpose of
developing and marketing Reliant products, but not for the purpose of marketing
Background Technology separate from Reliant products.

 

Contractor shall execute all papers, including patent
applications, invention assignments and copyright assignments, and otherwise
shall assist Reliant as reasonably required to perfect in Reliant the rights,
title and other interests in Contractor’s work product expressly granted to
Reliant under this Agreement. Costs related to such assistance, if required,
shall be paid by Reliant.

 

This Section 3 shall survive the termination of
this Agreement for any reason, including expiration of term.

 

4.                                      Indemnification/Release.
Contractor agrees to take all necessary precautions to prevent injury to
any persons (including employees of Reliant) or damage to property (including
Reliant’s property) during the term of this Agreement and shall indemnify and
hold harmless

 

2

 

Reliant and its officers, agents, directors and employees against any
claim, loss, judgment, expense (including reasonable attorneys’ and expert
witnesses’ fees and costs) and injury to person or property (including death)
resulting in any way from any act, omission or negligence on the part of
Contractor in the performance or failure to perform the scope of work under
this Agreement, excepting only those losses which are due solely and directly
to Reliant’s gross negligence.

 

Contractor warrants that it has good and marketable
title to all of the inventions, Information, material, or work product made,
created, conceived, written, invented or provided by Contractor pursuant to the
provisions of this Agreement (“Work Product”). Contractor further warrants that
the Work Product shall be free and clear of all liens, claims, encumbrances or
demands of third parties, including any claims by any such third parties of any
right, title or interest in or to the Work Product arising out of any trade
secret, copyright or patent. Contractor shall indemnify, defend and hold
harmless Reliant and its officers, agents, directors, employees, and customers
from and against any claim, loss, judgment or expense (including reasonable
attorneys’ and expert witnesses’ fees and costs) resulting from or arising in
any way out of any such claims by any third parties which are based upon or are
the result of any breach of the warranties contained in this Section 4. In
the event of a breach or threatened breach of the foregoing warranty,
Contractor shall, at no additional cost to Reliant, replace or modify the
Product with a functionally equivalent and conforming Product, obtain for
Reliant the right to continue using the Product and, in all other respects, use
its best efforts to remedy the breach. Contractor shall have no liability under
this Section 4 for any Product created in accordance with detailed and
specific design instructions provided to Contractor by Reliant.

 

Should Reliant permit Contractor to use any of Reliant’s
equipment, tools or facilities during the term of this Agreement, such
permission will be gratuitous and Contractor shall indemnify and hold harmless
Reliant and its officers, agents, directors, and employees from and against any
claim, loss, judgment, expense (including reasonable attorneys’ and expert
witnesses’ fees and costs) and injury to person or property (including death)
arising out of the use of any such equipment, tools or facilities, whether or
not such claim is based upon its condition or on the alleged negligence of
Reliant in permitting its use.

 

5.                                      Termination.
Either Reliant or Contractor may terminate this Agreement in the event of a
material breach of the Agreement which is not cured within fifteen (15) days of
written notice to the other of such breach. Material breaches include but are
not limited to the filing of bankruptcy papers or other similar arrangements
due to insolvency, the assignment of Contractor’s obligations to perform to
third parties or Contractor’s acceptance of employment or consulting
arrangements with third parties which are or may be detrimental to Reliant’s
business interests.

 

Subject to the acceleration of vesting described on
Exhibit A, Reliant may terminate this Agreement for convenience with fifteen
(15) days’ written notice. In such event, Contractor shall cease work
immediately after receiving notice from Reliant, unless otherwise advised by
Reliant, and shall notify Reliant of costs incurred up to the termination date.

 

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6.                                      Compliance
With Applicable Laws. Contractor warrants that all material supplied and
work performed under this Agreement complies with or will comply with all
applicable United States and foreign laws and regulations.

 

7.                                      Independent
Contractor. Contractor is an independent contractor, is not an agent or
employee of Reliant and is not authorized to act on behalf of Reliant. Contractor
will not be eligible for any employee benefits, nor will Reliant make
deductions from any amounts payable to Contractor for taxes. Taxes shall be the
sole responsibility of Contractor.

 

8.                                      Legal
And Equitable Remedies. Contractor hereby acknowledges and agrees that in
the event of any breach of this Agreement by Contractor, including, without
limitation, the actual or threatened disclosure of Information without the
prior express written consent of Reliant, Reliant will suffer an irreparable
injury, such that no remedy at law will afford it adequate protection against,
or appropriate compensation for, such injury. Accordingly, Contractor hereby
agrees that Reliant shall be entitled to specific performance of Contractor’s
obligations under this Agreement, as well as such further relief as may be
granted by a court of competent jurisdiction.

 

9.                                      General.
The parties’ rights and obligations under this Agreement will bind and
inure to the benefit of their respective successors, heirs, executors, and
administrators and permitted assigns. This Agreement and its Exhibits attached
hereto and hereby incorporated herein constitute the parties’ final, exclusive
and complete understanding and agreement with respect to the subject matter
hereof, and supersede all prior and contemporaneous understandings and
agreements relating to its subject matter. This Agreement may not be waived,
modified, amended or assigned unless mutually agreed upon in writing by both
parties. In the event any provision of this Agreement is found to be legally
unenforceable, such unenforceability shall not prevent enforcement of any other
provision of the Agreement. This Agreement shall be governed by the laws of the
State of California, excluding its conflicts of laws principles. Any notices
required or permitted hereunder shall be given to the appropriate party at the
address specified below or at such other address as the party shall specify in
writing. Such notice shall be deemed given upon personal delivery, or sent by
certified or registered mail, postage prepaid, three (3) days after the date of
mailing.

 

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IN
WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date first set forth above.

 

	
  RELIANT
  TECHNOLOGIES, INC.

  	
   

  	
  MAYNARD
  HOWE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Dennis
  Condon

  	
   

  	
   

  	
  By:

  	
  /s/ Maynard Howe

  	
   

  
	
  Dennis Condon

  	
   

  	
   

  
	
  Chief Executive Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SOCIAL
  SECURITY NUMBER

  
						

 

5

 

EXHIBIT A

 

WORK TO BE PERFORMED:

 

Contractor will act at the direction of Reliant’s
Chief Executive Officer (the “CEO”) and perform the services requested by the
CEO and/or Reliant’s Board of Directors; provided that after June 1, 2006, the
services required to be performed hereunder by Contractor shall be limited to
matters related to the litigation
by and between the Company and Michael Black and Svetlana Black. Contractor will work no more than twenty (20)
hours per month and, upon reasonable notice, be available for consultation via
e-mail or telephone.

 

PAYMENT OF CONSULTING FEE:

 

Reliant issued Contractor Warrant No. 41 (the “Warrant”) on May 31,
2005, a copy of which is attached hereto as Exhibit B.
The shares underlying the Warrant shall vest pursuant to the Vesting Schedule
described in Section 2 of the Warrant. Contractor and Reliant agree that the
issuance of the Warrant and the vesting of shares thereunder shall constitute
full and complete payment for Contractor’s services hereunder. All further
vesting, whether such Warrant is held by Contractor or a transferee of
Contractor, shall immediately cease upon termination of this Agreement or
Contractor’s services hereunder for any reason, unless (i) Reliant terminates
Contractor without Cause (as such term is defined in the Warrant) within twelve
(12) months following a Change of Control (as such term is defined in the
Warrant); or (ii) the litigation by and between the Company and Michael Black
and Svetlana Black is resolved in its entirety by way of settlement or upon a
final resolution of all claims by the Superior Court of the State of California,
in which case all vesting will accelerate in full.

 

EXPENSES TO BE PAID:

 

Reliant shall reimburse the reasonable, documented, out-of-pocket
expenses of Contractor; provided that any expense in excess of $5,000 shall
require the prior approval of Reliant.

 

Background Technology:

 

 

Exhibit B

 

WARRANT

 

 

THIS WARRANT AND THE
UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”). THEY
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED.

 

RELIANT
TECHNOLOGIES, INC.

 

WARRANT
TO PURCHASE COMMON STOCK

 

	
  Warrant
  No. 41

  	
  May 31, 2005

  

 

Void
After May 31, 2015

 

THIS CERTIFIES THAT, for value
received, Maynard Howe, or his
assigns (the “Holder”),
is entitled to subscribe for and purchase at the Exercise Price (defined below)
from Reliant Technologies, Inc., a
Delaware corporation, with its principal office at 260 Sheridan Ave., Suite
300, Palo Alto, CA  94306 (the “Company”) up to  200,000 shares
of Common Stock of the Company (the “Common Stock”).

 

1.                                      DEFINITIONS.
As used herein, the following terms shall have the following respective
meanings:

 

(a)                                                                                  “Exercise Period” shall
mean the period commencing with the date hereof and ending ten years later,
unless sooner terminated as provided below.

 

(b)                                                                                  “Exercise Price” shall
mean $3.00 per share, subject to adjustment pursuant to Section  8 below.

 

(c)                                                                                  “Exercise Shares”
shall mean the shares of the Company’s Common Stock issuable upon exercise of
this Warrant, subject to (i) vesting in accordance with Section 2 below and
(ii) adjustment pursuant to the terms herein, including but not limited to
adjustment pursuant to Section 8 below.

 

(d)                                                                                  “Cause”
means the occurrence of any one or more of the following:  (i) Holder’s commission of any crime
involving fraud, dishonesty or moral turpitude; (ii) the Holder’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) Holder’s intentional, material violation of
any contract or agreement between the Holder and the Company or any statutory
duty owed to the Company; or (iv) conduct by the Holder 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 the Holder with written notice thereof
and thirty (30) days to cure the same. Notwithstanding the foregoing, such
Holder’s death or disability shall not constitute Cause as set forth herein. The
determination that a termination is for Cause shall be by the Company’s Board
of Directors in its sole and exclusive judgment and discretion.

 

1

 

(e)                                                                                  “Change in Control” shall mean 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 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.

 

(f)                                                                                    “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, 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.

 

2

 

2.                                      VESTING/COMPANY
REPURCHASE OPTION. The shares of Common Stock issuable pursuant to this
Warrant shall vest according to the following schedule (the “Vesting Schedule”):   1/36th
of the shares shall vest monthly over the next thirty-six (36) months provided
that the Holder continues to provide services to the Company as either an
employee or as a consultant. Notwithstanding the foregoing, (a) upon the
occurrence of a Change of Control followed within twelve (12) months by the
termination of Holder’s Consulting Agreement dated June 1, 2005 without Cause
(as defined herein); or (b) upon the final resolution of the litigation by and between the Company and
Michael Black and Svetlana Black by way of settlement or upon a final
resolution of all claims by the Superior Court of the State of California,
then the vesting of all shares hereunder shall accelerate in full.

 

3.                                      EXERCISE
OF VESTED SHARES OF COMMON STOCK UNDER THIS WARRANT. Subject to Section 2
above, the right to purchase vested shares of Common Stock underlying this Warrant
may be exercised in whole at any time, or in part from time to time during the
Exercise Period, by delivery of the following to the Company at its address set
forth above (or at such other address as it may designate by notice in writing
to the Holder):

 

(a)                                  An
executed Notice of Exercise in the form attached hereto as Exhibit A;

 

(b)                                  Payment
of the Exercise Price either (i) in cash or by check, or (ii) by cancellation
of indebtedness;  and

 

(c)                                  This
Warrant; provided, however, in the case of a partial exercise of this Warrant,
the Company shall promptly issue a new Warrant (in the same form as this
Warrant) for the unexercised balance.

 

Upon
the exercise of the right to purchase vested shares of Common Stock underlying
this Warrant, a certificate or certificates for the Exercise Shares so
purchased, registered in the name of the Holder or persons affiliated with the
Holder, if the Holder so designates, shall be issued and delivered to the
Holder within a reasonable time; provided that payment of the income tax
withholding obligation, if any, related to the exercise of this Warrant must be
made by the Holder prior to the Company’s obligation pursuant to this paragraph
to deliver a stock certificate to the Holder representing the Exercise Shares.

 

The
person in whose name any certificate or certificates for Exercise Shares are to
be issued upon exercise of this Warrant shall be deemed to have become the
holder of record of such shares on the date on which this Warrant was
surrendered and payment of the Exercise Price was made, irrespective of the
date of delivery of such certificate or certificates, except that, if the date
of such surrender and payment is a date when the stock transfer books of the
Company are closed, such person shall be deemed to have become the holder of
such shares at the close of business on the next succeeding date on which the
stock transfer books are open.

 

4.                                      EXERCISE
PRIOR TO VESTING (“EARLY EXERCISE”). The Holder may elect at any time during the term of this Warrant, to
exercise all or part of this Warrant,
including the unvested portion of this Warrant;
provided, however, that the Holder and
the Company shall

 

3

 

enter into that certain Early Exercise Stock Purchase Agreement (and all
exhibits thereto) attached hereto as Exhibit
C, and provided further,
that:

 

4.1                               a
partial exercise of this Warrant
shall be deemed to cover first vested shares of Common Stock and then the
earliest vesting installment of unvested shares of Common Stock; and

 

4.2                               any
shares of Common Stock so purchased from installments that have not vested as
of the date of exercise shall be subject to the Company’s Repurchase Option (as
defined in the Early Exercise Stock Purchase Agreement).

 

5.                                      NET
EXERCISE OF VESTED SHARES OF COMMON STOCK UNDER THIS WARRANT. Notwithstanding
any provisions herein to the contrary, if the fair market value of one Exercise
Share is greater than the Exercise Price (at the date of calculation as set
forth below), in lieu of exercising this Warrant by payment of cash, the Holder
may elect to receive shares equal to the value (as determined below) of this
Warrant (or the portion thereof being canceled) by surrender of this Warrant at
the principal office of the Company together with the properly endorsed Notice
of Exercise in which event the Company shall issue to the Holder a number of
vested Exercise Shares computed using the following formula:

 

	
   

  	
   

  	
  X = Y (A-B)

  
	
   

  	
   

  	
  A

  
	
   

  	
   

  	
   

  
	
  Where

  	
  X =

  	
  the number of Exercise Shares to be issued to the
  Holder

  
	
   

  	
   

  	
   

  
	
   

  	
  Y =

  	
  the number of vested
  Exercise Shares purchasable under the Warrant or, if only a portion of the
  Warrant is being exercised, that number of vested Exercise Shares purchasable
  under the Warrant which are to be canceled (at the date of such calculation)

  
	
   

  	
   

  	
   

  
	
   

  	
  A =

  	
  the fair market value
  of one Exercise Share (at the date of such calculation)

  
	
   

  	
   

  	
   

  
	
   

  	
  B =

  	
  Exercise Price (as
  adjusted to the date of such calculation)

  

 

For purposes of the above calculation, the fair market
value of one Exercise Share shall be determined by the Company’s Board of
Directors in good faith; provided, however, that in the event that this Warrant
is exercised pursuant to this Section 5 in connection with the Company’s
initial public offering of its Common Stock, the fair market value per share
shall be the per share offering price to the public of the Company’s initial
public offering. Unvested shares may not be exercised pursuant to this Section
5.

 

6.                                      COVENANTS
OF THE COMPANY.

 

6.1                               Covenants
as to Exercise Shares. The Company covenants and agrees that all Exercise
Shares that may be issued upon the exercise of the rights represented by this
Warrant will, upon issuance, be validly issued and outstanding, fully paid and
nonassessable, and free from all taxes, liens and charges with respect to the
issuance thereof. The Company further

 

4

 

covenants and agrees that the Company will at all times during the
Exercise Period, have authorized and reserved, free from preemptive rights, a
sufficient number of shares of its Common Stock to provide for the exercise of
the rights represented by this Warrant. If at any time during the Exercise
Period the number of authorized but unissued shares of Common Stock shall not
be sufficient to permit exercise of this Warrant, the Company will take such
corporate action as may, in the opinion of its counsel, be necessary to
increase its authorized but unissued shares of Common Stock to such number of
shares as shall be sufficient for such purposes.

 

6.2                               No
Impairment. Except and to the extent as waived or consented to by the
Holder, the Company will not, by amendment of its Certificate of Incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the
Company, but will at all times in good faith assist in the carrying out of all
the provisions of this Warrant and in the taking of all such action as may be
necessary or appropriate in order to protect the exercise rights of the Holder
against impairment.

 

6.3                               Notices
of Record Date. In the event of any taking by the Company of a record of
the holders of any class of securities for the purpose of determining the
holders thereof who are entitled to receive any dividend (other than a cash
dividend which is the same as cash dividends paid in previous quarters) or
other distribution, the Company shall mail to the Holder, at least ten (10)
days prior to the date specified herein, a notice specifying the date on which
any such record is to be taken for the purpose of such dividend or
distribution.

 

7.                                      REPRESENTATIONS
OF HOLDER.

 

7.1                               Acquisition
of Warrant for Personal Account. The Holder represents and warrants that it
is acquiring the Warrant and the Exercise Shares solely for its account for
investment and not with a view to or for sale or distribution of said Warrant
or Exercise Shares or any part thereof. The Holder also represents that the
entire legal and beneficial interests of the Warrant and Exercise Shares the
Holder is acquiring is being acquired for, and will be held for, its account
only.

 

7.2                               Securities
Are Not Registered.

 

(a)                                  The
Holder understands that the Warrant and the Exercise Shares have not been
registered under the Act on the basis that no distribution or public offering
of the stock of the Company is to be effected. The Holder realizes that the
basis for the exemption may not be present if, notwithstanding its
representations, the Holder has a present intention of acquiring the securities
for a fixed or determinable period in the future, selling (in connection with a
distribution or otherwise), granting any participation in, or otherwise
distributing the securities. The Holder has no such present intention.

 

(b)                                  The
Holder recognizes that the Warrant and the Exercise Shares must be held
indefinitely unless they are subsequently registered under the Act or an
exemption from such registration is available. The Holder recognizes that the
Company has no obligation to

 

5

 

register the Warrant or the Exercise Shares of the Company, or to
comply with any exemption from such registration.

 

(c)                                  The
Holder is aware that neither the Warrant nor the Exercise Shares may be sold
pursuant to Rule 144 adopted under the Act unless certain conditions are met,
including, among other things, the existence of a public market for the shares,
the availability of certain current public information about the Company, the
resale following the required holding period under Rule 144 and the number of
shares being sold during any three month period not exceeding specified
limitations. Holder is aware that the conditions for resale set forth in Rule
144 have not been satisfied and that the Company presently has no plans to
satisfy these conditions in the foreseeable future.

 

7.3                               Disposition
of Warrant and Exercise Shares.

 

(a)                                  The
Holder further agrees not to make any disposition of all or any part of the
Warrant or Exercise Shares in any event unless and until:

 

(i)                                    The
Company shall have received a letter secured by the Holder from the Securities
and Exchange Commission stating that no action will be recommended to the
Commission with respect to the proposed disposition;

 

(ii)                                There
is then in effect a registration statement under the Act covering such proposed
disposition and such disposition is made in accordance with said registration
statement; or

 

(iii)                            The
Holder shall have notified the Company of the proposed disposition and shall
have furnished the Company with a detailed statement of the circumstances
surrounding the proposed disposition, and if reasonably requested by the
Company, the Holder shall have furnished the Company with an opinion of
counsel, reasonably satisfactory to the Company, for the Holder to the effect
that such disposition will not require registration of such Warrant or Exercise
Shares under the Act or any applicable state securities laws.

 

(b)                                  The
Holder understands and agrees that all certificates evidencing the shares to be
issued to the Holder may bear the following legend:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
AS TO THE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

8.                                      ADJUSTMENT
OF EXERCISE PRICE. In the event of changes in the outstanding Common Stock
of the Company by reason of stock dividends, split-ups, recapitalizations,
reclassifications, combinations or exchanges of shares, separations,
reorganizations, liquidations, or the like, the number and class of shares
available under the Warrant in the aggregate and the

 

6

 

Exercise Price shall be correspondingly adjusted to give the Holder of
the Warrant, on exercise for the same aggregate Exercise Price, the total
number, class, and kind of shares as the Holder would have owned had the
Warrant been exercised prior to the event and had the Holder continued to hold
such shares until after the event requiring adjustment; provided, however, that
such adjustment shall not be made with respect to, and this Warrant shall
terminate if not exercised prior to, the events set forth in Section 10
below. The form of this Warrant need not be changed because of any adjustment
in the number of Exercise Shares subject to this Warrant.

 

9.                                      FRACTIONAL
SHARES. No fractional shares shall be issued upon the exercise of this
Warrant as a consequence of any adjustment pursuant hereto. All Exercise Shares
(including fractions) issuable upon exercise of this Warrant may be aggregated
for purposes of determining whether the exercise would result in the issuance
of any fractional share. If, after aggregation, the exercise would result in
the issuance of a fractional share, the Company shall, in lieu of issuance of
any fractional share, pay the Holder otherwise entitled to such fraction a sum
in cash equal to the product resulting from multiplying the then current fair
market value of an Exercise Share by such fraction.

 

10.                               EARLY TERMINATION. In the event of
a Change of Control, any surviving corporation or acquiring corporation may
assume or continue this Warrant or may substitute a similar Warrant for this
Warrant (it being understood that a similar Warrant shall include, but shall
not be limited to, a Warrant to acquire the same consideration paid to the
stockholders or the Company, as the case may be, pursuant to the Change of
Control), and any reacquisition or repurchase rights held by the Company in
respect of Common Stock issued pursuant to the Warrant may be assigned by the
Company to the successor of the Company (or such successor’s parent company),
if any, in connection with such Change of Control. In the event that any
surviving corporation or acquiring corporation does not assume or continue this
Warrant or substitute a similar Warrant for this Warrant, then this Warrant
shall terminate if not exercised (if applicable) at or prior to the
consummation of such Change of Control, and any reacquisition or repurchase
rights held by the Company with respect to Common Stock issued pursuant to the
Warrant shall (contingent upon the consummation of the Change of Control)
lapse. The Company shall provide to the Holder twenty (20) days advance written
notice of such termination of this Warrant the consummation of a Change of
Control.

 

11.                               MARKET
STAND-OFF AGREEMENT. Holder shall not sell, dispose of, transfer, make any
short sale of, grant any option for the purchase of, or enter into any hedging
or similar transaction with the same economic effect as a sale, any Common
Stock (or other securities) of the Company held by Holder, for a period of time
specified by the managing underwriter(s) (not to exceed one hundred eighty
(180) days) following the effective date of a registration statement of the
Company filed under the Act for the initial public offering of the Company’s
common stock. Holder agrees to execute and deliver such other agreements as may
be reasonably requested by the Company and/or the managing underwriter(s) which
are consistent with the foregoing or which are necessary to give further effect
thereto. In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to such Common Stock (or other
securities) until the end of such period. The underwriters of the Company’s
stock are intended third party beneficiaries of this Section 11 and shall have
the right, power and authority to enforce the provisions hereof as though they
were a party hereto.

 

7

 

12.                               NO
STOCKHOLDER RIGHTS. This Warrant in and of itself shall not entitle the
Holder to any voting rights or other rights as a stockholder of the Company.

 

13.                               TRANSFER
OF WARRANT. Subject to applicable laws and the restriction on transfer set
forth on the first page of this Warrant, this Warrant and all rights hereunder
are transferable, by the Holder in person or by duly authorized attorney, upon
delivery of this Warrant and the form of assignment attached hereto as Exhibit B to any transferee designated by
Holder. The transferee shall sign an investment letter in form and substance
satisfactory to the Company that includes, among other things, transferee’s
agreement to be bound by all of the terms and conditions by which Holder is
bound.

 

14.                               LOST,
STOLEN, MUTILATED OR DESTROYED WARRANT. If this Warrant is lost, stolen,
mutilated or destroyed, the Company may, on such terms as to indemnity or
otherwise as it may reasonably impose (which shall, in the case of a mutilated
Warrant, include the surrender thereof), issue a new Warrant of like
denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed. Any
such new Warrant shall constitute an original contractual obligation of the
Company, whether or not the allegedly lost, stolen, mutilated or destroyed
Warrant shall be at any time enforceable by anyone.

 

15.                               NOTICES,
ETC. All notices required or permitted hereunder shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to the party
to be notified, (b) when sent by confirmed telex or facsimile if sent
during normal business hours of the recipient, if not, then on the next
business day, (c) five (5) days after having been sent by registered or
certified mail, return receipt requested, postage prepaid, or (d) one (1)
day after deposit with a nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt. All communications
shall be sent to the Company at the address listed on the signature page and to
Holder at 1359 Chelsea Drive, Los Altos, California 94024, or at such other
address as the Company or Holder may designate by ten (10) days advance written
notice to the other parties hereto.

 

16.                               ACCEPTANCE.
Receipt of this Warrant by the Holder shall constitute acceptance of and
agreement to all of the terms and conditions contained herein.

 

17.                               GOVERNING
LAW. This Warrant and all rights, obligations and liabilities hereunder
shall be governed by the laws of the State of California.

 

8

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be
executed by its duly authorized officer as of May 31, 2005.

 

	
   

  	
  RELIANT TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Dennis Condon

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer

  	
   

  

 

	
   

  	
  Address:

  	
  260 Sheridan Avenue

  
	
   

  	
   

  	
  Suite 300

  
	
   

  	
   

  	
  Palo Alto, CA 94306

  

 

9

 

EXHIBIT A

 

NOTICE
OF EXERCISE

 

TO:  RELIANT TECHNOLOGIES, INC.

 

(1)                                 The
undersigned hereby elects to purchase                 
shares of Common Stock of Reliant
Technologies, Inc. (the “Company”) pursuant to the terms of the attached
Warrant, and tenders herewith payment of the exercise price in full, and the
amount of the Company’s withholding obligation, if any, relating to such
exercise.

 

(2)                                 Please
issue a certificate or certificates representing said shares of Common Stock in
the name of the undersigned or in such other name as is specified below:

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Name)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Address)

  

 

(3)                                 The
undersigned represents that (i) the aforesaid shares of Common Stock are being
acquired for the account of the undersigned for investment and not with a view
to, or for resale in connection with, the distribution thereof and that the
undersigned has no present intention of distributing or reselling such shares;
(ii) the undersigned is aware of the Company’s business affairs and financial
condition and has acquired sufficient information about the Company to reach an
informed and knowledgeable decision regarding its investment in the Company;
(iii) the undersigned is experienced in making investments of this type and has
such knowledge and background in financial and business matters that the
undersigned is capable of evaluating the merits and risks of this investment
and protecting the undersigned’s own interests; (iv) the undersigned
understands that the shares of Common Stock issuable upon exercise of this
Warrant have not been registered under the Securities Act of 1933, as amended
(the “Securities Act”),
by reason of a specific exemption from the registration provisions of the
Securities Act, which exemption depends upon, among other things, the bona fide
nature of the investment intent as expressed herein, and, because such
securities have not been registered under the Securities Act, they must be held
indefinitely unless subsequently registered under the Securities Act or an exemption
from such registration is available; (v) the undersigned is aware that the
aforesaid shares of Common Stock may not be sold pursuant to Rule 144 adopted
under the Securities Act unless certain conditions are met and until the
undersigned has held the shares for the number of years prescribed by Rule 144,
that among the conditions for use of the Rule is the availability of current
information to the public about the Company and the Company has not made such
information available and has no present plans to do so; and (vi) the
undersigned agrees not to make any disposition of all or any part of the
aforesaid shares of Common Stock unless and until there is then in effect a
registration statement under the Securities Act covering such proposed
disposition and such disposition is made in accordance with said registration
statement, or the undersigned has provided the Company with an opinion of
counsel satisfactory to the Company, stating that such registration is not
required.

 

	
   

  	
   

  	
   

  	
   

  
	
  (Date)

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Print name)

  

 

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

(To
assign the foregoing Warrant, execute this form and supply required information.
Do not use this form to purchase shares.)

 

FOR VALUE
RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

 

	
  Name:

  	
   

  
	
  (Please Print)

  

 

	
  Address:

  	
   

  
	
  (Please Print)

  

 

	
  Dated:
                      ,
  20  

  

 

	
  Holder’s Signature: 

  	
   

  	
   

  

 

	
  Holder’s Address:

  	
   

  	
   

  

 

The assignment of this
Warrant and/or the transfer of any shares of common stock underlying this warrant
shall be subject to compliance with all applicable securities laws and delivery
by the assignee/transferee of an investment letter in form and substance
satisfactory to the Company  that
requires, among other things, that assignee be bound by all terms and
conditions by which Holder is bound.

 

NOTE:  The signature to this Assignment Form must
correspond with the name as it appears on the face of the Warrant, without
alteration or enlargement or any change whatever. Officers of corporations and
those acting in a fiduciary or other representative capacity should file proper
evidence of authority to assign the foregoing Warrant.

 

 

EXHIBIT
C

 

EARLY
EXERCISE STOCK PURCHASE AGREEMENT

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