Document:

Exhibit
10.14

 

RELIANT TECHNOLOGIES, INC.

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (“Agreement”) is entered into as of February 9, 2006,
by and between KEITH SULLIVAN (“Executive”) and RELIANT TECHNOLOGIES, INC. (the “Company”), a Delaware
corporation.

 

WHEREAS, Executive has been employed by the Company
as Vice President, Sales since October 17, 2005, pursuant to a written
agreement dated September 16, 2005 and certain other oral and/or written
representations or promises made to him (collectively, the “Prior Employment
Agreement”); and

 

WHEREAS,
Executive and the Company hereby desire to replace the Prior Employment
Agreement in its entirety with the terms and conditions contained herein.

 

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

 

1.             EMPLOYMENT BY THE
COMPANY.

 

1.1          Title and
Responsibilities. Subject to the terms set forth herein, the Company agrees
to continue to employ Executive in the position of Vice President, Sales and
Executive hereby accepts such employment effective October 17, 2005 (the “Effective
Date”). During his employment with the Company, Executive will devote his best
efforts and all of his business time, skill and attention (except for vacation
periods and reasonable periods of illness or other incapacity permitted by the
Company’s general employment policies) to the business of the Company.

 

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

 

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

 

2.             COMPENSATION.

 

2.1          Salary. Executive
shall receive for services to be rendered hereunder a base salary at an
annualized rate of $200,000, payable on a  semi-monthly
basis 

 

 

in accordance with the
Company’s regular payroll dates (the “Salary”). Executive may be considered for
increases in Salary in accordance with Company policy and subject to review and
approval by the Board.

 

2.2          Incentive Bonus. Executive
shall also be eligible to receive a bonus of up to thirty thousand dollars
($30,000) per quarter, which shall become payable upon the achievement of
certain objectives as defined by the Company’s Chief Executive Officer (the “Target
Milestones”). Such Target Milestones shall be outlined in writing and agreed
upon within ninety (90) days of the date of this Agreement. The Board will, in
its sole discretion, determine whether Executive achieved the Target
Milestones, and the amount of Executive’s bonus, if any. In the event that the
Target Milestones are not achieved, the Board may adjust the bonus amount
downward to reflect the level of achievement. In the event that Executive’s
performance exceeds the Target Milestones, the Board may adjust the bonus amount
upward to reflect the level of achievement. All bonus compensation shall be
subject to applicable payroll withholdings and employment taxes.

 

2.3          Equity Consideration. On
October 18, 2005, Executive was issued that certain Stock Option Grant Notice
to purchase up to 150,000 shares of the Company’s Common Stock at a per share exercise
price of $3.00 (the “Equity Consideration”). Executive agrees and acknowledges
that the Equity Consideration constitutes the only equity consideration to
which he is or was entitled pursuant to the Prior Employment Agreement and/or
any other arrangement or agreement, written or oral, between Executive and the
Company (including any representative of the Company). The Equity Consideration
shall not be considered to be part of the Prior Employment Agreement and shall
continue in full force and effect. The Equity Consideration shall be early
exercisable pursuant to a purchase agreement in a form acceptable to the
Company. Except as otherwise specifically set forth herein or in the Equity
Consideration documentation, in the event of termination of Executive’s
employment with the Company for any reason, the Equity Consideration, all stock
options and other stock awards held by Executive shall cease vesting as of the
date of termination, and shall be exercisable thereafter only pursuant to the
terms of the applicable stock option plans and agreements.

 

2.4          Standard Company
Benefits. Executive shall be entitled to all rights and benefits for which
he is eligible under the terms and conditions of the standard Company benefits
and compensation plans which may be in effect from time to time and provided by
the Company to its executives, including but not limited to medical, dental and
vacation.

 

3.             CONFIDENTIAL
INFORMATION, RIGHTS AND DUTIES.

 

3.1          Confidential Information.
As the Vice President, Sales, Executive will be privy to extremely
sensitive, confidential and valuable commercial information and trade secrets
belonging to the Company, the use and disclosure of which information and secrets
would greatly harm the Company. Accordingly, as a condition of Executive’s
continued employment, Executive shall be required to continue to abide by the
Company’s Agreement for Protection of Confidential Information executed on August
8, 2005 and 

 

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Employee Proprietary
Information and Inventions Agreement dated October 14, 2005 (collectively, the “Confidentiality
Agreement”) (attached hereto as Exhibit A). The
Confidentiality Agreement shall not be considered to be part of the Prior
Employment Agreement and shall continue in full force and effect.

 

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

 

4.             OUTSIDE ACTIVITIES.

 

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

 

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

 

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

 

5.1          At-Will Employment. Executive’s relationship with the
Company is at-will. The Company shall have the right to terminate Executive’s
employment with the Company at any time and for any reason, with or without
notice. Executive may be removed from any position he holds in the manner
specified by the Bylaws of the Company and applicable law or, if not specified,
then by the Board.

 

5.2          Definitions.

 

(a)           For purposes of
this Agreement, “Cause” means the occurrence of any one or more of the
following:  (i) Executive’s commission of
any crime involving fraud, dishonesty or moral turpitude; (ii) Executive’s attempted
commission of 

 

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or participation in a
fraud or act of dishonesty against the Company that results in (or might have
reasonably resulted in) material harm to the business of the Company; (iii)
Executive’s intentional, material violation of any contract or agreement
between Executive and the Company or any statutory duty owed to the Company; or
(iv) conduct by Executive that constitutes gross insubordination, incompetence
or habitual neglect of duties and that results in (or might have reasonably
resulted in) material harm to the business of the Company; provided, however,
that the action or conduct described in clauses (iii) and (iv) above will
constitute “Cause” only if such action or conduct continues after the Company
has provided Executive with written notice thereof and a reasonable period (not
to exceed thirty (30) days) to cure the same. Notwithstanding the foregoing,
Executive’s death or disability shall not constitute Cause as set forth herein.
The determination that a termination is for Cause shall be made by the Board in
good faith.

 

(b)           For purposes of this Agreement, “Good Reason”
to resign Executive’s employment with the
Company will exist if one or more of the following actions are taken by the
Company without Executive’s consent:  (i)
the assignment to Executive of any duties or responsibilities that results in a
material diminution in Executive’s function as the Company’s Vice President,
Sales; (ii) a relocation of Executive’s business office to a location more than
fifty (50) miles from Executive’s home in Vienna, Virginia, except for required
travel by Executive on the Company’s business to an extent substantially
consistent with business travel obligations of Vice Presidents of Sales of other
companies that are similarly situated to the Company; or (iii) a material
breach by the Company of any provision of a material agreement between Executive
and the Company concerning the terms and conditions of Executive’s employment; provided, however, that the action or conduct described in
clause (iii) above will constitute “Good Reason” only if such action or conduct
continues after Executive has provided the Company with written notice thereof
and seven (7) days to cure the same. Notwithstanding the foregoing,
Executive’s death or disability shall not constitute Good Reason as set forth
herein. The determination that a resignation is for Good Reason shall be made
by the Board in good faith.

 

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

 

5.4          Termination Without
Cause or Resignation for Good Reason. If the Company terminates Executive’s
employment at any time without Cause or if Executive resigns at any time for
Good Reason, then Executive shall be entitled to receive, (i) a severance payment in an aggregate amount equal to
six (6) months of Executive’s then current base salary, subject to withholdings
and deductions, such sum payable in semi-monthly installments in accordance
with the Company’s standard payroll practices; (ii) health, dental and
vision benefits for a period of six (6) months commencing on the date of
termination or resignation, as applicable, and at the same coverage terms as 

 

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provided to Executive at
the date of termination or resignation, as applicable, provided that the
parties hereto agree that Executive is responsible for enrolling in continued
coverage under COBRA; and
(iii) the immediate acceleration of options on 25,000 shares under the Equity
Consideration (i.e., 6/36 or 16.67% of the total number of shares subject to
the Equity Consideration) and 16.67% of any other stock awards held by
Executive which vest based solely on length of continuous service as an
employee of or consultant to the Company (i.e., disregarding awards
which vest based on milestones or other performance criteria). Executive’s
receipt of this severance payment, benefits and vesting acceleration provided
in this Section 5.4 shall be conditioned on Executive’s full compliance with the
release requirements set forth in Section 9 of this Agreement and the period
for revocation of such release has expired. Notwithstanding anything contained
in this Agreement to the contrary, if Executive receives the benefits pursuant
to this Section 5.4, he shall not entitled to any other benefits under this
Agreement, including without limitation, Section 6.3.

 

6.             CHANGE OF CONTROL.

 

6.1          Definitions.

 

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

 

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

 

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

 

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

 

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

 

6.3          Change of Control
Followed Within Twelve Months by Termination without Cause or Resignation for
Good Reason. In the event Executive’s employment with the Company is
involuntarily terminated without Cause by the Company or its successor, or
Executive resigns for Good Reason, and such termination or resignation occurs
within twelve (12) months following a Change of Control, then Executive shall
be entitled to receive:  (a) a severance
payment in an aggregate amount equal to six (6) months of Executive’s then
current base salary, subject to withholdings and deductions, such sum payable
in semi-monthly installments in accordance with the Company’s standard payroll
practices; (b) health, dental and vision benefits for a period of six (6)
months commencing on the date of termination or resignation, as applicable, and
at the same coverage terms as provided to Executive at the date of termination
or resignation, as applicable, provided that the parties hereto agree that
Executive is responsible for enrolling in continued coverage under COBRA; and
(c) the immediate acceleration of vesting on all Equity Consideration and other
stock awards held by Executive in an amount of shares equal to 100% of the then
unvested shares. Executive’s receipt of this severance payment, benefits and
vesting acceleration provided in this Section 6.3 shall be conditioned on
Executive’s full compliance with the release requirements set forth in Section
9 of this Agreement and the period for revocation of such release has expired. Notwithstanding

 

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anything contained in
this Agreement to the contrary, if Executive receives the benefits pursuant to
this Section 6.3, he shall not entitled to any other benefits under this
Agreement, including without limitation, Section 5.4.

 

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

 

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

 

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

 

10.          CONSULTING AGREEMENT. As a further condition to the Company’s
obligation to enter into this Agreement, Executive will sign and deliver to the
Company a Consulting Agreement in the form attached hereto as Exhibit C.

 

11.          LIMITATIONS AND CONDITIONS ON
PAYMENT OF BENEFITS

 

11.1        Parachute Payments.

 

(a)           Best
After-Tax. If any payment or benefit (including payments and benefits
pursuant to this Agreement) Executive would receive in connection with a Change
of Control from the Company or otherwise (“Payment”) would (i) constitute a “parachute
payment” within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”), and (ii) but for this sentence, be subject to
the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the
Company shall cause to be determined, before any amounts of the Payment are
paid to Executive, which of the following two alternative forms of payment
would maximize Executive’s after-tax proceeds: (i) payment in full of the
entire amount of the Payment (a “Full Payment”), or (ii) payment of only a part
of the Payment so that Executive receives the largest payment possible without
the imposition of the Excise Tax (a “Reduced Payment”), whichever 

 

7

 

amount results in
Executive’s receipt, on an after-tax basis, of the greater amount of the
Payment notwithstanding that all or some portion of the Payment may be subject
to the Excise Tax. For purposes of determining whether to make a Full Payment
or a Reduced Payment, the Company shall cause to be taken into account all
applicable federal, state and local income and employment taxes and the Excise
Tax (all computed at the highest applicable marginal rate, net of the maximum
reduction in federal income taxes which could be obtained from a deduction of
such state and local taxes). If a Reduced Payment is made, (i) the Payment
shall be paid only to the extent permitted under the Reduced Payment
alternative, and Executive shall have no rights to any additional payments
and/or benefits
constituting the Payment, and (ii) reduction in payments and/or benefits shall
occur in the following order unless Executive elects in writing a different
order (provided, however, that such election shall be subject to Company
approval if made on or after the date on which the event that triggers the
Payment occurs): (1) reduction of cash payments; (2) cancellation of
accelerated vesting of equity awards other than stock options; (3) cancellation
of accelerated vesting of stock options; and (4) reduction of other benefits
paid to Executive. In the event that acceleration of compensation from
Executive’s equity awards is to be reduced, such acceleration of vesting shall
be canceled in the reverse order of the date of grant unless Executive elects in
writing a different order for cancellation.

 

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

 

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

 

11.2        Application of Section 409A. In the event that the Company
determines that any cash severance payment benefit, accrued and unpaid bonus
payment, or continued health, dental and vision insurance coverage benefits
provided under this Agreement fails to satisfy the distribution requirement of
Section 409A(a)(2)(A) of the Code as a result of Section 409A(a)(2)(B)(i) of
the Code, the payment of such benefit shall be accelerated to the minimum
extent necessary so that the benefit is not subject to the 

 

8

 

provisions of Section
409A(a)(1) of the Code. (The payment schedule as revised after the application
of the preceding sentence shall be referred to as the “Revised Payment
Schedule.”)  However, in the event the
payment of benefits pursuant to the Revised Payment Schedule would be subject
to Section 409A(a)(1) of the Code, the payment of such benefits shall not be
paid pursuant to the Revised Payment Schedule and instead the payment of such
benefits shall be delayed to the minimum extent necessary so that such benefits
are not subject to the provisions of Section 409A(a)(1) of the Code. The Board
may attach conditions to or adjust the amounts paid pursuant to this Section 11.2
to preserve, as closely as possible, the economic consequences that would have
applied in the absence of this Section 11.2; provided,
however, that no such condition or adjustment shall result in the
payments being subject to Section 409A(a)(1) of the Code. Prior to any actual
payments under this Agreement to Executive, Executive and the Company agree to
work together in good faith to consider and implement amendments to this
Agreement which are necessary or appropriate to avoid imposition of any
additional tax or income recognition under Section 409A of the Code and any
temporary or final Treasury Regulations and Internal Revenue Service guidance
thereunder. The parties agree to cooperate with each other and to take
reasonably necessary steps in this regard.

 

12.          GENERAL PROVISIONS.

 

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

 

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

 

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

 

12.4        Entire Agreement. The
Prior Employment Agreement is hereby terminated by mutual agreement of the Executive
and the Company. This Agreement (including all exhibits hereto), together with
the Confidentiality Agreement and the Equity Consideration constitutes the
entire agreement between Executive and the Company regarding the subject matter
hereof and it supersedes and replaces any prior agreement (including the Prior
Employment Agreement), promise, representation, written or otherwise, between
Executive and the Company (or any representative of the Company) 

 

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

 

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

 

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

 

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

 

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

 

12.9        Arbitration. To
provide a mechanism for rapid and economical dispute resolution, Executive and
the Company agree that any and all disputes, claims, or causes of action, in
law or equity, arising from or relating to this Agreement or its enforcement,
performance, breach, or interpretation, or to Executive’s employment with the
Company or the termination of Executive’s employment with the Company, will be resolved,
to the fullest extent permitted by law, by final, binding, and confidential
arbitration held in Santa Clara County, California and conducted by Judicial
Arbitration & Mediation Services (“JAMS”), under its then-existing Rules
and Procedures. Executive understands and agrees that under this Section 12.9
of the Agreement, Executive is waiving his right to a jury trial and his right
to file any administrative agency charge with regard to any such disputes,
claims or causes of action, including, but not limited to, all federal and
state statutory and common law claims, claims related to Executive’s employment
with the Company or to the termination of that employment, claims related to
any breach of contract, tort, wrongful termination, discrimination, wages or
benefits, or claims for any form of equity or compensation. Notwithstanding the
provisions of this Section 12.9, any and all disputes, claims or causes of
action, in law or in equity, arising from or relating to the Confidentiality
Agreement will not be subject to mandatory arbitration, but may be resolved in
the courts of the State of California as set forth in the Confidentiality
Agreement. Nothing in this Section 12.9 of this Agreement is intended to
prevent either the Executive or the Company from obtaining injunctive relief in
court to prevent irreparable harm pending the conclusion of any such
arbitration.

 

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

 

12.11      Exhibits.

 

Exhibit A– Proprietary
Information and Inventions Agreement

 

Exhibit B– Release

 

[Remainder
of page intentionally left blank]

 

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

 

RELIANT
TECHNOLOGIES, INC.

 

 

	
  /s/ Len DeBenedictis

  	
   

  
	
  Len
  DeBenedictis

  
	
  President
  and Chief Executive Officer

  
	
   

  
	
   

  
	
  KEITH
  SULLIVAN

  
	
   

  
	
   

  
	
  /s/ Keith
  Sullivan

  	
   

  

 

12

 

EXHIBIT A

 

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

 

 

EXHIBIT B

 

RELEASE

 

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

 

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

 

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

 

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

 

1

 

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

 

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

 

2

 

EXHIBIT C

 

CONSULTING AGREEMENTExhibit
10.15

 

RELIANT TECHNOLOGIES, INC.

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (“Agreement”) is entered into as of June 1, 2005, by and
between JEFFREY S. JONES (“Executive”) and RELIANT TECHNOLOGIES, INC. (the “Company”), a Delaware
corporation.

 

WHEREAS,
from May 3, 2004, to April 21, 2005, Executive was employed by the Company as
Chief Operating Officer, pursuant to a written Employment Offer Letter dated
April 20, 2004 and certain other oral and/or written representations or
promises made to him (collectively, the “Prior Employment Agreement”); and

 

WHEREAS, Executive and the Company hereby desire to
replace the Prior Employment Agreement in its entirety with the terms and
conditions contained herein.

 

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

 

1.             EMPLOYMENT BY THE
COMPANY.

 

1.1          Title and
Responsibilities. Subject to the terms set forth herein, the Company agrees
to continue to employ Executive in the position of Chief Operating Officer, and
Executive hereby accepts such employment pursuant to the terms and conditions
of this Agreement, effective June 1, 2005 (the “Effective Date”). During his
employment with the Company, Executive will devote his best efforts and all of
his business time, skill and attention (except for vacation periods and
reasonable periods of illness or other incapacity permitted by the Company’s
general employment policies) to the business of the Company.

 

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

 

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

 

2.             COMPENSATION.

 

2.1          Salary. Executive
shall receive for services to be rendered hereunder a base salary at an
annualized rate of $220,000, payable on a  bi-monthly basis in

 

 

accordance with the Company’s regular payroll dates (the “Salary”),
which Salary shall be effective June 1, 2005. Executive may be considered for
increases in Salary in accordance with Company policy and subject to review and
approval by the Board.

 

2.2          Incentive Bonus. Provided
that Executive remains employed by the Company on December 31, 2005, Executive
shall also be eligible to receive a 2005 bonus of up to thirty percent (30%) of
the total salary paid to Executive during 2005, which shall become payable upon
the achievement of certain objectives as defined by the Board (the “Target
Milestones”). Such Target Milestones shall be outlined in writing and agreed
upon within ninety (90) days of the date of this Agreement. The Board will, in
its sole discretion, determine whether Executive achieved the Target
Milestones, and the amount of Executive’s bonus, if any. In the event that the
Target Milestones are not achieved, the Board may adjust the 2005 bonus amount
downward to reflect the level of achievement. In the event that Executive’s
performance exceeds the Target Milestones, Executive may be eligible to receive
a 2005 bonus of greater than thirty percent (30%) of the total salary paid to
Executive during 2005. All bonus compensation shall be subject to applicable
payroll withholdings and employment taxes.

 

2.3          Equity Consideration. Prior
to the Effective Date, Executive was issued (a) that certain Stock Option Grant
Notice dated July 30, 2004, to purchase up to 220,000 shares of the Company’s
Common Stock at a per share exercise price of $0.50. (“Stock Option Grant No. 1”)
and (b) that certain Stock Option Grant Notice dated December 28, 2004, to
purchase up to 30,000 shares of the Company’s Common Stock at a per share
exercise price of $1.75 (“Stock Option Grant No. 2”). In connection with the
execution of this Agreement, the Company issued Executive that certain Stock
Option Grant Notice dated May 31, 2005, to purchase up to twenty thousand
(20,000) shares of the Company’s Common Stock with a per share exercise price
of $3.00 (“Stock Option Grant No. 3” and collectively with Stock Option Grant
No. 1 and Stock Option Grant No. 2, the “Equity Consideration”). Executive
agrees and acknowledges that the Equity Consideration constitutes the only
equity consideration to which he is or was entitled pursuant to the Prior
Employment Agreement and/or any other arrangement or agreement, written or
oral, between Executive and the Company (including any representative of the
Company). The Equity Consideration shall not be considered to be part of the
Prior Employment Agreement and shall continue in full force and effect. The
Equity Consideration shall be early exercisable pursuant to a purchase
agreement in a form acceptable to the Company. Except as otherwise specifically
set forth herein or in the Equity Consideration documentation, in the event of
termination of Executive’s employment with the Company for any reason, the
Equity Consideration, all stock options and other stock awards held by
Executive shall cease vesting as of the date of termination, and shall be
exercisable thereafter only pursuant to the terms of the Equity Consideration
documentation, the applicable stock option plans and agreements.

 

2.4          Standard Company
Benefits. Executive shall be entitled to all rights and benefits for which
he is eligible under the terms and conditions of the standard Company benefits
and compensation plans which may be in effect from time to time and provided by
the Company to its executives, including but not limited to medical, dental and
vacation.

 

2

 

3.             CONFIDENTIAL
INFORMATION, RIGHTS AND DUTIES.

 

3.1          Confidential Information.
As the Chief Technology Officer of the Company, Executive will be privy to
extremely sensitive, confidential and valuable commercial information and trade
secrets belonging to the Company, the use and disclosure of which information
and secrets would greatly harm the Company. Accordingly, as a condition of
Executive’s continued employment, Executive shall be required to continue to
abide by the Company’s Employee Proprietary Information and Inventions
Agreement executed on May 3, 2004 (the “Confidentiality Agreement”) (attached
hereto as Exhibit A). The Confidentiality Agreement
shall not be considered to be part of the Prior Employment Agreement and shall
continue in full force and effect.

 

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

 

4.             OUTSIDE ACTIVITIES.

 

4.1          Activities. Except
with the prior written consent of the Board, Executive will not during his
employment with the Company undertake or engage in any other employment,
occupation or business enterprise, other than ones in which Executive is a
passive investor with the exception of continuing as CEO and President of
Advanced Surgical Products, Inc.; provided that such business activities do not
interfere with the performance of Executive’s duties hereunder. In the event
the Board determines in good faith that such business activities do interfere
with Executive’s performance of his duties hereunder, Executive agrees to
resign from such position with Advanced Surgical Products at the request of the
Board. Executive may engage in civic and not-for-profit activities so long as
such activities do not materially interfere with the performance of his duties
hereunder.

 

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

 

3

 

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

 

5.1          At-Will Employment. Executive’s relationship with the
Company is at-will. The Company shall have the right to terminate Executive’s
employment with the Company at any time and for any reason, with or without
notice. Executive may be removed from any position he holds in the manner
specified by the Bylaws of the Company and applicable law or, if not specified,
then by the Board.

 

5.2          Definitions.

 

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

 

(b)           For purposes of
this Agreement, “Good Reason” to resign
your employment with the Company will exist if one or more of the following
actions are taken by the Company without your consent:  (i) the assignment to you of any duties or
responsibilities that results in a material diminution in your function as in
effect immediately prior to the effective date of the Change in Control; provided, however, that a change in your title or reporting
relationships shall not provide the basis for a voluntary termination with Good
Reason; (ii) a relocation of your business office to a location more than fifty
(50) miles from the location at which you performed your duties as of the
effective date of the Change in Control, except for required travel by you on
the Company’s business to an extent substantially consistent with your business
travel obligations prior to the effective date of the Change in Control; or
(iii) a material breach by the Company of any provision of a material agreement
between you and the Company concerning the terms and conditions of your
employment; provided, however, that the action or
conduct described in clause (iii) above will constitute “Good Reason” only if
such action or conduct continues after you have provided the Company with
written notice thereof and seven (7) days to cure the same.
Notwithstanding the foregoing, Executive’s death or disability shall not
constitute Good Reason as set forth herein. The determination that a
resignation is for Good Reason shall be made by the Board in good faith.

 

4

 

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

 

5.4          Termination Without
Cause or Resignation for Good Reason. If the Company terminates Executive’s
employment at any time without Cause or if Executive resigns at any time for
Good Reason, then Executive shall be entitled to receive, (i) a severance
payment in an aggregate amount equal to six (6) months of Executive’s then
current base salary, subject to withholdings and deductions, such sum payable
in bi-monthly installments in accordance with the Company’s standard payroll
practices; (ii) health, dental and vision benefits for a period of six (6)
months commencing on the date of termination or resignation, as applicable, and
at the same coverage terms as provided to Executive at the date of termination
or resignation, as applicable, and (iii) the immediate acceleration of six (6)
months of vesting on all Equity Consideration and other stock awards held by
Executive. Executive’s receipt of this severance payment, benefits and vesting
acceleration provided in this Section 5.4 shall be conditioned on Executive’s
full compliance with the release requirements set forth in Section 8 of this
Agreement and the period for revocation of such release has expired. Notwithstanding
anything contained in this Agreement to the contrary, if Executive receives the
benefits pursuant to this Section 5.4, he shall not entitled to any other
benefits under this Agreement, including without limitation, Section 6.3.

 

6.             CHANGE OF CONTROL AND
IPO ACCELERATION.

 

6.1          Definitions.

 

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

 

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

 

5

 

share acquisition, the
Subject Person becomes the owner of any additional voting securities that,
assuming the repurchase or other acquisition had not occurred, increases the
percentage of the then outstanding voting securities owned by the Subject
Person over the designated percentage threshold, then a Change in Control shall
be deemed to occur;

 

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

 

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

 

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

 

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

 

(c)          “IPO”
means the closing of the Company’s initial public offering pursuant to a
registration statement on Form S-1 filed with and declared effective by the
Securities and Exchange Commission.

 

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

 

6.3          Change of Control
Followed Within Twelve Months by Termination without Cause or Resignation for
Good Reason. In the event Executive’s employment with the Company is
involuntarily terminated without Cause by the Company or its successor, or
Executive resigns for Good Reason, and such termination or resignation occurs
within twelve (12) months following a Change of Control, then Executive shall
be

 

6

 

entitled to receive:  (a) a
severance payment in an aggregate amount equal to six (6) months of Executive’s
then current base salary, subject to withholdings and deductions, such sum
payable in bi-monthly installments in accordance with the Company’s standard
payroll practices; (b) health, dental and vision benefits for a period of six
(6) months commencing on the date of termination and at the same coverage terms
as provided to Executive at the date of termination and (c) the immediate
acceleration of vesting on all Equity Consideration and other stock awards held
by Executive in an amount of shares equal to 100% of the then unvested shares. Executive’s
receipt of this severance payment, benefits and vesting acceleration provided
in this Section 6.3 shall be conditioned on Executive’s full compliance with
the release requirements set forth in Section 8 of this Agreement and the
period for revocation of such release has expired. Notwithstanding anything
contained in this Agreement to the contrary, if Executive receives the benefits
pursuant to this Section 6.3, he shall not entitled to any other benefits under
this Agreement, including without limitation, Sections 5.4 and 6.4.

 

6.4          IPO Followed Within
Eighteen Months by Termination without Cause or Resignation for Good Reason. In
the event Executive’s employment with the Company is involuntarily terminated
without Cause by the Company or its successor, or Executive resigns for Good
Reason, and such termination or resignation occurs within eighteen (18) months
following an IPO, then Executive shall be entitled to receive: (a) a severance
payment in an aggregate amount equal to six (6) months of Executive’s then
current base salary, subject to withholdings and deductions, such sum payable
in bi-monthly installments in accordance with the Company’s standard payroll
practices; (b) health, dental and vision benefits for a period of six (6)
months commencing on the date of termination and at the same coverage terms as
provided to Executive at the date of termination and (c) the immediate
acceleration of vesting on all Equity Consideration and other stock awards held
by Executive in an amount of shares equal to 100% of the then unvested shares. Executive’s
receipt of this severance payment, benefits and vesting acceleration provided
in this Section 6.4 shall be conditioned on Executive’s full compliance with
the release requirements set forth in Section 8 of this Agreement and the
period for revocation of such release has expired. Notwithstanding anything
contained in this Agreement to the contrary, if Executive receives the benefits
pursuant to this Section 6.4, he shall not entitled to any other benefits under
this Agreement, including without limitation, Sections 5.4 and 6.3.

 

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

 

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

 

7

 

relationship in order to become an employee, or independent contractor
to or for any person or entity.

 

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

 

10.          LIMITATIONS AND
CONDITIONS ON PAYMENT OF BENEFITS

 

10.1        Parachute Payments.

 

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

 

8

 

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

 

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

 

10.2        Application of Section 409A. In the event that the Company
determines that any cash severance payment benefit, accrued and unpaid bonus
payment, or continued health, dental and vision insurance coverage benefits
provided under this Agreement fails to satisfy the distribution requirement of
Section 409A(a)(2)(A) of the Code as a result of Section 409A(a)(2)(B)(i) of
the Code, the payment of such benefit shall be accelerated to the minimum
extent necessary so that the benefit is not subject to the provisions of
Section 409A(a)(1) of the Code. (The payment schedule as revised after the
application of the preceding sentence shall be referred to as the “Revised
Payment Schedule.”)  However, in the
event the payment of benefits pursuant to the Revised Payment Schedule would be
subject to Section 409A(a)(1) of the Code, the payment of such benefits shall
not be paid pursuant to the Revised Payment Schedule and instead the payment of
such benefits shall be delayed to the minimum extent necessary so that such
benefits are not subject to the provisions of Section 409A(a)(1) of the Code. The
Board may attach conditions to or adjust the amounts paid pursuant to this
Section 10.2 to preserve, as closely as possible, the economic consequences
that would have applied in the absence of this Section 10.2; provided, however, that no such condition
or adjustment shall result in the payments being subject to Section 409A(a)(1)
of the Code.

 

11.          GENERAL PROVISIONS.

 

11.1        Notices. Any notices
provided hereunder must be in writing and shall be deemed effective upon the
earlier of personal delivery (including, personal delivery by facsimile
transmission), delivery by express delivery service (e.g. Federal Express), or
the third day after mailing by first class mail, to the Company at its primary

 

9

 

office location and to Executive at his address as listed on the
Company payroll (which address may be changed by written notice).

 

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

 

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

 

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

 

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

 

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

 

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

 

11.8        Attorney Fees. If
either party hereto brings any action to enforce his or its rights hereunder,
the prevailing party in any such action shall be entitled to

 

10

 

recover his or its reasonable attorneys’ fees and costs incurred in
connection with such action.

 

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

 

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

 

11.11      Exhibits.

 

Exhibit A– Proprietary
Information and Inventions Agreement

 

Exhibit B– Release

 

[Remainder
of page intentionally left blank]

 

11

 

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

 

	
  RELIANT
  TECHNOLOGIES, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Dennis
  Condon

  	
   

  
	
  Dennis
  Condon

  	
   

  
	
  President
  and Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  JEFFREY
  S. JONES

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Jeffrey S.
  Jones

  	
   

  

 

12

 

EXHIBIT A

 

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

 

 

EXHIBIT B

 

RELEASE

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

3

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