Document:

Exhibit
10.37

 

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. 52

  	
   

  	
  June 28, 2005

  

 

Void
After May 31, 2015

 

THIS
CERTIFIES THAT, for value received, Sonora Web Limited Liability Limited Partnership,
with its principal office at 5375 Mira Sorrento Place, Suite 100, San Diego, CA
92121, or its 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)                           “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

 

1

 

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.

 

(e)           “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.

 

(f)            “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.

 

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 the vesting of this
Warrant shall accelerate in full and 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 June
28, 2005.

 

 

	
   

  	
  RELIANT
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Harvard
  Sung

  
	
   

  	
   

  	
  Harvard Sung

  
	
   

  	
   

  	
  Chief Financial 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 AGREEMENTExhibit 10.38

 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE
STATE SECURITIES LAWS, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER THE ACT AND ANY APPLICABLE
STATE SECURITIES LAWS, OR PURSUANT TO RULE 144 OR AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

WARRANT TO PURCHASE STOCK

Warrant No. 60

 

	
  Corporation:

  	
   

  	
  RELIANT TECHNOLOGIES, INC., a Delaware Corporation

  
	
  Number of Shares:

  	
   

  	
  13,333

  
	
  Class of Stock:

  	
   

  	
  Common Stock

  
	
  Initial Exercise Price:

  	
   

  	
  $3.00 per share

  
	
  Issue Date:

  	
   

  	
  November 3, 2005

  
	
  Expiration Date:

  	
   

  	
  November 3, 2015 (Subject to Section 4.1)

  

 

THIS WARRANT CERTIFIES THAT, for good and valuable consideration, the
receipt of which is hereby acknowledged, COMERICA BANK, a Michigan banking
corporation, or its assignee (“Holder”), is entitled to purchase the number of
fully paid and nonassessable shares of the class of securities (the “Shares”)
of Reliant Technologies, Inc., a Delaware corporation (the “Company”) at the
initial exercise price per Share (the “Warrant Price”) all as set forth above
and as adjusted pursuant to this Warrant, subject to the provisions and upon
the terms and conditions set forth in this Warrant.

 

1.
EXERCISE.

 

1.1           Method
of Exercise. Holder may exercise this warrant by delivering this Warrant
and a duly executed Notice of Exercise in substantially the form attached as
Appendix I to the principal office of the Company. Holder shall also deliver to
the Company a check or wire for the aggregate Warrant Price for the Shares
being purchased.

 

1.2           Delivery
of Certificate and New Warrant. Within 45 days after Holder exercises this Warrant,
the Company shall deliver to Holder certificates for the Shares acquired and,
if this Warrant has not been fully exercised or converted and has not expired,
a new warrant representing the Shares not so acquired.

 

1.3           Replacement
of Warrants. In the case of loss, theft or destruction of this Warrant, on
delivery of an indemnity agreement reasonably satisfactory in form and amount
to the Company or, in the case of mutilation, on surrender and cancellation of
this Warrant, the Company at its expense shall execute and deliver, in lieu of
this Warrant, a new warrant of like tenor.

 

 

1.4           Acquisition
of the Company.

 

1.4.1        “Acquisition.”  For the purpose of this warrant, “Acquisition”
means (a) any sale, license, or other disposition of all or substantially all
of the assets (including intellectual property) of the Company, or (b) any
reorganization, consolidation, merger or sale of the voting securities of the
Company or any transaction where the holders of the Company’s securities before
the transaction beneficially own less than 50% of the outstanding voting
securities of the surviving entity after the transaction.

 

1.4.2        Assumption of Warrant.
Upon the closing of any Acquisition (other than an Acquisition in which the
consideration received by the Company’s stockholders consists soley of cash),
and as a condition precedent thereto, the successor or surviving entity shall
assume the obligations of this Warrant, and this Warrant shall be exercisable
for the same securities, cash, and property as would be payable for the Shares
issuable upon exercise of the unexercised portion of this Warrant as if such
Shares were outstanding on the record date for the Acquisition and subsequent
closing. The Warrant Price shall be adjusted accordingly, and the Warrant Price
and number and class of Shares shall continue to be subject to adjustment from
time to time in accordance with the provisions thereof.

 

2.
ADJUSTMENTS TO THE SHARES.

 

2.1           Stock
Dividends, Splits, Etc. If the Company declares or pays a dividend on its
common stock payable in common stock, or other securities, or subdivides the
outstanding common stock into a greater amount of common stock, then upon
exercise of this Warrant, for each Share acquired, Holder shall receive,
without cost to Holder, the total number and kind of securities to which Holder
would have been entitled had Holder owned the Shares of record as of the date
the dividend or subdivision occurred.

 

2.2           Reclassification,
Exchange or Substitution. Upon any reclassification, exchange, substitution,
or other event that results in a change of the number and/or class of the
securities issuable upon exercise or conversion of this Warrant, Holder shall
be entitled to receive, upon exercise or conversion of this Warrant, the number
and kind of securities and property that Holder would have received for the
Shares if this Warrant had been exercised immediately before such
reclassification, exchange, substitution, or other event. Such an event shall
include any automatic conversion of the outstanding or issuable securities of
the Company of the same class or series as the Shares to common stock pursuant
to the terms of the Company’s Articles or Certificate of Incorporation upon the
closing of a registered public offering of the Company’s common stock. The
Company or its successor shall promptly issue to Holder a new warrant for such
new securities or other property. The new warrant shall provide for adjustments
which shall be as nearly equivalent as may be practicable to the adjustments
provided for in this Article 2 including, without limitation, adjustments to
the Warrant Price and to the number of securities or property issuable upon
exercise of the new warrant. The provisions of this Section 2.2 shall similarly
apply to successive reclassifications, exchanges, substitutions, or other
events.

 

2.3           Adjustments
for Combinations, Etc. If the outstanding Shares arc combined or
consolidated, by reclassification or otherwise, into a lesser number of shares,
the Warrant Price shall be proportionately increased. If the outstanding Shares
are combined or consolidated, by reclassification or otherwise, into a greater
number of shares, the Warrant Price shall be proportionately decreased.

 

2

 

2.4           Adjustments
for Diluting Issuances. The Warrant Price and the number of Shares issuable
upon exercise of this warrant shall be subject to adjustment, from time to
time, in the manner set forth on Exhibit A if attached, in the event of
Diluting Issuances (as defined on Exhibit A).

 

2.5           No
Impairment. The Company shall not, by amendment of its Articles or Certificate
of Incorporation or through a 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 under this Warrant by the Company, but
shall at all times in good faith assist in carrying out all the provisions of
this Article 2 and in taking all such action as may be reasonably necessary or
appropriate to protect Holder’s rights under this Article 2 against impairment.

 

2.6           Certificate
as to Adjustments. Upon each adjustment of the Warrant Price, the Company
at its expense shall promptly compute such adjustment, and furnish Holder with
a certificate signed by its Chief Financial Officer setting forth such
adjustment and the facts upon which such adjustment is based. The Company
shall, upon written request, furnish Holder a certificate setting forth the Warrant
Price in effect upon the date thereof and the series of adjustments leading to
such Warrant Price.

 

2.7           Fractional
Shares. No fractional Shares shall be issuable upon exercise or conversion
of the Warrant and the Number of Shares to be issued shall be rounded down to
the nearest whole Share. If a fractional share interest arises upon any
exercise or conversion of the Warrant, the Company shall eliminate such
fractional share interest by paying Holder anamount computed by multiplying the
fractional interest by the fair market value, as determined by the Company’s
Board of Directors, of a full Share.

 

3.
REPRESENTATIONS. AND COVENANTS OF THE COMPANY.

 

3.1           Representations
and Warranties. The Company hereby represents and warrants to the Holder as
follows:

 

3.1.1  The initial Warrant Price referenced on the
first page of this Warrant is not greater than the fair market value of the
Shares as of the date of this Warrant as determined in good faith by the
Company’s board of directors.

 

3.1.2   All Shares which may be issued upon the
exercise of the purchase right represented by this Warrant, and all securities,
if any, issuable upon conversion of the Shares, shall, upon issuance in
accordance with the terms hereof, be duly authorized, validly issued, fully paid
and nonassessable, and free of any liens and encumbrances except for
restrictions on transfer provided for herein or under applicable federal and
state securities laws.

 

3.1.3  The
Company’s capitalization table attached to this Warrant is true and complete as
of the Issue Date.

 

3

 

3.2           Notice
of Certain Events. If the Company proposes at any time (a) to declare any
dividend or distribution upon its common stock, whether in cash, property,
stock, or other securities and whether or not a regular cash dividend; (b) to
offer for subscription pro rata to the holders of any class or series of its
stock any additional shares of stock of any class or series or other rights;
(c) to effect any reclassification or recapitalization of common stock; or (d)
to merge or consolidate with or into any other corporation, or sell, lease,
license, or convey all or substantially all of its assets, or to liquidate,
dissolve or wind up, then, in connection with each such event, the Company
shall give Holder (1) at least 20 days prior written notice of the date on
which a record will be taken for such dividend, distribution, or subscription
rights (and specifying the date on which the holders of common stock will be
entitled thereto) or for determining rights to vote, if any, in respect of the
matters referred to in (a) and (b) above; and (2) in the case of the matters
referred to in (c) and (d) above at least 20 days prior written notice of the
date when the same will take place (and specifying the date on which the
holders of common stock will be entitled to exchange their common stock for
securities or other property deliverable upon the occurrence of such event).

 

3.3           Information
Rights. So long as the Holder holds this Warrant and/or any of the Shares,
the Company shall deliver to the Holder (a) promptly after mailing, copies of
all communiques to the shareholders of the Company, (b) within one hundred
twenty (120) days after the end of each fiscal year of the Company, the annual audited
financial statements of the Company certified by independent public accountants
of recognized standing and (c) within forty-five (45) days after the end of
each of the first three quarters of each fiscal year, the Company’s quarterly,
unaudited financial statements.

 

3.4           Registration
Under Securities Act of 1933, as amended. The Company agrees that the
Shares or, if the Shares are convertible into common stock of the Company, such
common stock, shall be subject to the registration rights set forth on Exhibit
B, if attached.

 

4.
MISCELLANEOUS.

 

4.1           Term;
Exercise Upon Expiration. This Warrant is exercisable in whole or in part,
at any time and from time to time on or before the Expiration Date set forth
above; provided, however, that if the Company
completes its initial public offering within the three-year period immediately
prior to the Expiration Date, the Expiration Date shall automatically be
extended until the third anniversary of the effective date of the Company’s
initial public offering. The Company shall give Holder written notice of Holder’s
right to exercise this Warrant not less than 90 days before the Expiration Date.
If the notice is not so given, the Expiration Date shall automatically be
extended until 90 days after the date the Company delivers such notice to
Holder.

 

4.2           Legends.
This Warrant and the Shares (and the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) shall be imprinted with a
legend in substantially the following form:

 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE
STATE SECURITIES LAWS, AND MAY NOT BE SOLD, PLEDGED,

 

4

 

OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF
UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO RULE 144
OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY
APPLICABLE STATE SECURITIES LAWS.

 

4.3           Compliance
with Securities Laws on Transfer. This Warrant and the Shares issuable upon
exercise of this warrant (and the securities issuable, directly or indirectly,
upon conversion of the Shares, if any) may not be transferred or assigned in
whole or in part without compliance with applicable federal and state
securities laws by the transferor and the transferee.

 

4.4           Transfer
Procedure. Subject to the provisions of Section 4.3, Holder may transfer
all or part of this warrant or the Shares issuable upon exercise of this
warrant (or the securities issuable, directly or indirectly, upon conversion of
the Shares, if any) by giving the Company notice of the portion of the Warrant
being transferred setting forth the name, address and taxpayer identification
number of the transferee and surrendering this Warrant to the Company for
reissuance to the transferee(s) (and Holder, if applicable); provided, however, that Holder may transfer all or part of
this Warrant to its affiliates, including, without limitation, Comerica
Incorporated, at any time without notice to the Company, and such affiliate
shall then be entitled to all the rights of Holder under this Warrant and any
related agreements, and the Company shall cooperate fully in ensuring that any
stock issued upon exercise of this warrant is Issued in the name of the
affiliate that exercises the warrant. The terms and conditions of this Warrant
shall inure to the benefit of, and be binding upon, the Company and the holders
hereof and their respective permitted successors and assigns. Unless the
Company is filing financial information with the SEC pursuant to the Securities
Exchange Act of 1934, the Company shall have the right to refuse to transfer
any portion of this warrant to any person who directly competes with the
Company.

 

4.5           Notices.
All notices and other communications from the Company to the Holder, or vice
versa, shall be deemed delivered and effective when given personally or mailed
by first-class registered or certified mail, postage prepaid, at such address
as may have been furnished to the Company or the Holder, as the case may be, in
writing by the Company or such Holder from time to time. All notices to the
Holder shall be addressed as follows:

 

Comerica Bank c/o Comerica Incorporated

Attn: Warrant Administrator

500 Woodward Avenue, 32nd Floor, MC 3379

Detroit, MI  48226

 

All notices to the Company shall be addressed as follows:

 

Reliant Technologies, Inc.

Attn: Director of Finance/Controller

5375 Mira Sorrento Place, Suite #100

San Diego, CA 92121

 

4.6           Amendments.
This Warrant and any term hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which enforcement
of such change, waiver, discharge or termination is sought.

 

5

 

4.7           Attorneys’
Fees. In the event of any dispute between the parties concerning the terms
and provisions of this warrant, the party prevailing in such dispute shall be
entitled to collect from the other party all costs incurred in such dispute, including
reasonable attorneys’ fees.

 

4.8           Governing
Law. This warrant shall be governed by and construed in accordance with the
laws of the State of California, without giving effect to its principles
regarding conflicts of law.

 

4.9           Confidentiality.
The Company hereby agrees to keep the terms and conditions of this warrant
confidential. Notwithstanding the foregoing confidentiality obligation, the
Company may disclose information relating to this Warrant as required by law,
rule, regulation, court order or other legal authority, provided that (i) the
Company has given Holder at least ten (10) days’ notice of such required
disclosure, and (ii) the Company only discloses information that is required,
in the opinion of counsel reasonably satisfactory to Holder, to be disclosed.

 

	
   

  	
   

  	
  RELIANT TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
        /s/
  Harvard Sung

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
    Harvard Sung

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title: 

  	
       CFO

  	
   

  
							

 

6

 

APPENDIX 1

 

NOTICE OF EXERCISE

 

1.             The
undersigned hereby elects to purchase           
shares of the common stock of Reliant Technologies, Inc., pursuant to the terms
of the attached warrant, and tenders herewith payment of the purchase price of
such shares in full.

 

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

 

COMERICA BANK

Attn: Warrant Administrator

500 Woodward Avenue, 32nd Floor, MC 3379

Detroit, Ml 48226

 

3.             The
undersigned represents it is acquiring the shares solely for its own account
and not as a nominee for any other party and not with a view toward the resale
or distribution thereof except in compliance with applicable securities laws.

 

COMERICA RANK or Registered Assignee

 

 

	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Name and Title)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Date)

  	
   

  	
   

  

 

1

 

EXHIBIT A

 

COMERICA BANK

ANTI-DILUTION PROVISIONS

 

The following provisions are incorporated into and made a part of this
Warrant until such time as all the Company’s oustanding preferred stock is
converted into common stock:

 

1.             Definitions. As used
in this Exhibit A, the following terms have the following respective meanings:

 

1.1           “Option”
means any right, option or warrant to subscribe for, purchase or otherwise acquire
common stock or Convertible Securities.

 

1.2           “Convertible
Securities” means any evidences of indebtedness, shares of stock, or other
securities directly or indirectly convertible into or exchangeable for common
stock.

 

1.3           “Issue”
means to grant, issue, sell, assume or fix a record date for determining
persons entitled to receive any security (including Options), whichever of the
foregoing is the first to occur.

 

1.4           “Additional
Shares of Common Stock” shall have the meaning provided in the Company’s
Amended and Restated Certificate of Incorporation attached hereto.

 

2.             Deemed Issuance of
Additional Shares of Common Stock.  The
shares of common stock ulitmately Issuable upon exercise of an Option
(including the shares of common stock ultimately Issuable upon conversion or
exercise of a Convertible Security Issuable pursuant to an Option) are deemed
to be Issued when the Option is Issued. The shares of common stock ultimately
Issuable upon conversion or exercise of a Convertible Security (other than a Convertible
Security Issued pursuant to an Option) shall be deemed Issued upon Issuance of
the Convertible Security. The maximum amount of common stock Issuable is
determined without regard to any future adjustments permitted under the
instrument creating the Options or Convertible Securities.

 

3.             Adjustments for
Diluting Issuances.

 

3.1           Adjustment
of Warrant Price.  If the Company
issues Additional Shares of Common Stock after the date of this Warrant and the
consideration per Additional Common Share is less than the Warrant Price in
effect immediately before such Issue (a “Diluting Issuance”), the Warrant Price
in effect immediately before such Issue shall be reduced, concurrently with
such Issue, to a price equal to the price obtained by multiplying the then
existing Warrant Price by a fraction, (i) the numerator of which shall be (A)
the number of shares of Securities Deemed Outstanding (as determined below)
immediately prior to such issue or sale, plus (B) the number of shares of
Common Stock which the Aggregate Consideration (as defined below) received by
the Company for the total number of Additional Shares of Common Stock so issued
would purchase at such then-existing Warrant Price, as (ii) the denominator of
which shall be the number of shares of Securities Deemed Outstanding (as
determined below) immediately prior to such issue or sale plus the total number
of Additional Shares of Common Stock so issued.

 

A-1

 

3.2           Adjustment
of Number of Shares.  Upon each
adjustment of the Warrant Price, the number of Shares Issuable upon exercise of
this Warrant shall be increased to equal the quotient obtained by dividing
$39,999 by the new Warrant Price.

 

3.3           Securitites
Deemed Outstanding.  For the purpose
of this Section 3, all securities Issuable upon exercise of any outstanding
Convertible Securities or Options, Warrants, or other rights to acquire
securities of the Company shall be deemed to be outstanding.

 

3.4           For
the purpose of making any adjustment required under this Exhibit A, the
aggregate consideration received by the Company for any issue or sale of
securities (the “Aggregate Consideration”) shall be defined as: (A) to the
extent it consists of cash, be computed at the net amount of cash received by
the Company after deduction of any underwriting or similar commissions,
compensation or concessions paid or allowed by the Company in connection with
such issue or sale but without deduction of any expenses payable by the
Company, (B) to the extent it consists of property other than cash, be computed
at the fair value of that property as determined in good faith by the Board,
and (C) if Additional Shares of Common Stock, Convertible Securities or rights
or options to purchase either Additional Shares of Common Stock or Convertible
Securities are issued or sold together with other stock or securities or other
assets of the Company for a consideration which covers both, be computed as the
portion of the consideration so received that may be reasonably determined in
good faith by the Board to be allocable to such Additional Shares of Common
Stock, Convertible Securities or rights or Options.

 

2

 

EXHIBIT B

 

Registration Rights

 

The Shares (if common stock), or the common stock issuable upon
conversion of the Shares, shall be deemed “registrable securities” or otherwise
entitled to “piggy back” registration rights in accordance with the terms of
the following agreement (the “Agreement’) between the Company and its investor(s):

 

Amended and Restated Investor Rights
Agreement dated as of February 2, 2004

 

The Company agrees that no amendments will be made to the Agreement
which would have an adverse impact on Holder’s registration rights thereunder
without the consent of Holder. By acceptance of the Warrant to which this
Exhibit it B is attached, Holder shall be deemed to be a party to the Agreement
solely for the purpose of the above-mention registration rights.

 

If no Agreement exists, then the Company and the Holder shall enter
into Holder’s standard form of Registration Rights Agreement as in effect on
the Issue Date of the Warrant.

 

B-1

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