Document:

Exhibit
10.18

 

RELIANT TECHNOLOGIES, INC.

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (“Agreement”) is entered into as of February 14, 2006,
by and between THOMAS J. SCANNELL (“Executive”)
and RELIANT TECHNOLOGIES, INC. (the “Company”),
a Delaware corporation. This Agreement supersedes and replaces the Employment
Agreement entered into between the parties on October 21, 2005, which is hereby
terminated.

 

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

 

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

 

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

 

1.             EMPLOYMENT BY THE
COMPANY.

 

1.1          Title and
Responsibilities. Subject to the terms set forth herein, the Company agrees
to employ Executive in the position of Vice President, Finance, and Chief
Financial Officer, and Executive hereby accepts such employment effective October
24, 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 $200,000.00, payable on a  semi-monthly

 

 

basis in accordance with the Company’s regular payroll dates (the “Salary”),
which Salary shall be effective on Executive’s first day of employment with the
Company. Executive may be considered for increases in Salary in accordance with
Company policy and subject to review and approval by the Board.

 

2.2          Incentive Bonus. Executive
shall be eligible to receive a bonus for fiscal year 2006 of up to 30% of
Executive’s Salary which shall be payable based upon meeting certain milestones
(the “Target Milestones”) that 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. All bonus compensation shall be
subject to applicable payroll withholdings and employment taxes.

 

2.3          Equity Consideration. In
accordance with the terms of the Company’s Stock Option Plan (the “Plan”) and a
standard stock option agreement, and subject to approval by the Board of
Directors, you will be granted an option to purchase 175,000 shares of the
Company’s common stock (the “Equity Consideration”), vesting over three years,
such that 33.33% will vest at the end of your first year of employment and
1/24th of the remaining unvested shares shall vest monthly thereafter over the
next twenty four (24) months; provided that Executive continues to provide
services to the Company as an employee or consultant during such time as
required by the Plan. The Equity Consideration shall be early exercisable
pursuant to a purchase agreement in a form acceptable to the Company. Except as
otherwise specifically set forth herein or in the Plan or in the applicable
stock option agreements, in the event of termination of Executive’s employment
with the Company for any reason, the Equity Consideration, all stock options
and other stock awards held by Executive shall cease vesting as of the date of
termination, and shall be exercisable thereafter only pursuant to the terms of
the Plan and applicable stock option agreements.

 

2.4          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, Finance, and Chief Financial 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 employment, Executive shall be required to execute,
deliver and abide by the Company’s Employee Proprietary Information attached
hereto as Exhibit A (the “Confidentiality Agreement”).

 

3.2          Exclusive Property. Executive
agrees that all Company-related business procured by the Executive, and all
Company-related business opportunities and

 

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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; provided that such at-will employment relationship shall not
affect any benefits to which Executive is entitled pursuant to this Agreement.

 

5.2          Definitions.

 

(a)           For purposes of
this Agreement, “Cause” means the occurrence of any one or more of the
following:  (i) Executive’s commission of
any crime involving fraud, dishonesty or moral turpitude; (ii) Executive’s
attempted commission of or participation in a fraud or act of dishonesty
against the Company that results in (or might have reasonably resulted in)
material harm to the business of the Company; (iii) Executive’s intentional,
material violation of any contract or agreement between Executive and the
Company or any statutory duty owed to the Company; or (iv) conduct by

 

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Executive that
constitutes gross insubordination, incompetence or habitual neglect of duties
and that results in (or might have reasonably resulted in) material harm to the
business of the Company; provided, however, that the action or conduct described
in clauses (iii) and (iv) above will constitute “Cause” only if such action or
conduct continues after the Company has provided Executive with written notice
thereof and a period of thirty (30) days to cure the same. Notwithstanding the
foregoing, Executive’s death or disability shall not constitute Cause as set
forth herein. The determination that a termination is for Cause shall be made
by the Board in good faith;
provided that in the event there is a dispute as to whether a termination is
for Cause, such dispute shall be resolved pursuant to Section 11.9 of this
Agreement..

 

(b)           For purposes of this Agreement, “Good Reason”
to resign 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 the Company’s Vice President, Finance and Chief Financial
Officer; (ii) a relocation of your business office to a location more than
fifty (50) miles from Mountain View, California, except for required travel by
you on the Company’s business to an extent substantially consistent with
business travel obligations of Chief Financial Officers of other companies that
are similarly situated to the Company; or (iii) a material breach by the
Company of any provision of a material agreement between you and the Company
concerning the terms and conditions of your employment (including a reduction
in Salary, bonus, benefits (unless such reduction in Salary, bonus or benefits
is applicable to all executives) or failure by a successor corporation to
assume and abide by the terms and conditions of this Agreement); provided, however, that the action or conduct described in
clause (iii) above will constitute “Good Reason” only if such action or conduct
continues after you have provided the Company with written notice thereof and
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; provided that in the event there is a dispute as to
whether a resignation is for Good Reason, such dispute shall be resolved pursuant
to Section 11.9 of this Agreement.

 

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

 

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

 

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(ii) health, dental and
vision benefits for a period of six (6) months commencing on the date of
termination or resignation, as applicable, and at the same coverage terms as
provided to Executive at the date of termination or resignation, as applicable,
provided that the parties hereto agree that Executive is responsible for
enrolling in continued coverage under COBRA; and (iii) the immediate
acceleration of options on 29,167 shares under the Equity Consideration (i.e.,
6/36 or 16.67% of the total number of shares subject to the Equity
Consideration) and 16.67% of any other stock awards held by Executive which
vest based solely on length of continuous service as an employee of or
consultant to the Company (i.e., disregarding awards which vest based on
milestones or other performance criteria). Executive’s receipt of this
severance payment, benefits and vesting acceleration provided in this Section
5.4 shall be conditioned on Executive’s full compliance with the release
requirements set forth in Section 8 of this Agreement and the period for
revocation of such release has expired. Notwithstanding anything contained in this
Agreement to the contrary, if Executive receives the benefits pursuant to this
Section 5.4, he shall not entitled to any other benefits under this Agreement,
including without limitation, Section 6.3.

 

6.             CHANGE OF CONTROL.

 

6.1          Definitions.

 

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

 

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

 

(ii)           there is
consummated a merger, consolidation or similar transaction involving (directly
or indirectly) the Company if, immediately after the consummation of such merger,
consolidation or similar transaction, the stockholders of the Company
immediately prior thereto do not own, directly or indirectly, either (A)

 

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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.

 

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

 

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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, 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.          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

 

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

 

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

 

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Schedule.”)  However, in the event the payment of benefits
pursuant to the Revised Payment Schedule would be subject to Section 409A(a)(1)
of the Code, the payment of such benefits shall not be paid pursuant to the
Revised Payment Schedule and instead the payment of such benefits shall be
delayed to the minimum extent necessary so that such benefits are not subject
to the provisions of Section 409A(a)(1) of the Code. The Board may attach
conditions to or adjust the amounts paid pursuant to this Section 10.2 to
preserve, as closely as possible, the economic consequences that would have
applied in the absence of this Section 10.2; provided,
however, that no such condition or adjustment shall result in the
payments being subject to Section 409A(a)(1) of the Code. Prior to any actual
payments under this Agreement to Executive, Executive and the Company agree to
work together in good faith to consider and implement amendments to this
Agreement which are necessary or appropriate to avoid imposition of any
additional tax or income recognition under Section 409A of the Code and any
temporary or final Treasury Regulations and Internal Revenue Service guidance
thereunder. The parties agree to cooperate with each other and to take
reasonably necessary steps in this regard.

 

11.          GENERAL PROVISIONS.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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.

 

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11.11      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

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THOMAS
  J. SCANNELL

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Thomas J.
  Scannell

  	
   

  

 

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EXHIBIT A

 

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

 

 

EXHIBIT B

 

RELEASE

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

3Exhibit 10.19

RELIANT
TECHNOLOGIES, INC.

464 ELLIS
STREET

MOUNTAIN
VIEW, CALIFORNIA 94043

 

August 14, 2007

VIA HAND DELIVERY

 

Thomas J. Scannell

Reliant Technologies Inc.

464 Ellis Street

Mountain View, CA  94043

 

Re:          Transition and Resignation Agreement

Dear Tom:

This letter sets
forth the terms of the transition and resignation agreement (the “Agreement”)
between you and Reliant Technologies Inc. (the “Company”).

1.             Resignation and Transition Period.  You
acknowledge that, effective  as of July 2,
2007 (the “Transition Date”), you resigned from your position as Vice
President, Finance, and Chief Financial Officer of the Company, and from any
other employment-related office or position you held with the Company, with the
sole exception that you will continue to serve as an employee of the Company
through September 15, 2007 (the “Employment Resignation Date”).  Further, you hereby resign your employment
with the Company effective as of the Employment Resignation Date; provided however that, the Company can accelerate the
Employment Resignation Date in the event that you materially breach this
Agreement, the Proprietary Information Agreement (defined in Section 8), or any
written Company policy.  Your employment
with the Company during the period
between the Transition Date and the Employment Resignation Date (the
“Transition Period”) shall be subject to the following terms and conditions:

(a)           Transition Activities.  As an employee,
you shall report to the Chief Executive Officer (“CEO”), and you shall continue
to be subject to all of the standard policies and procedures of the Company.  You shall provide the following transition
activities:  (i) discharge and perform
any and all reasonable duties requested of you by the CEO or his designee; (ii)
take all steps to ensure the orderly transition of all matters that you have
handled during the course of your employment with the Company; and (iii) provide
transition briefing information to the CEO as he may request.  You will not have authority to bind the
Company or make management decisions, unless expressly authorized in advance by
the CEO.  

(b)           Salary Continuation and General Employee Benefits; Use of
Accrued Vacation.  Through the Employment Resignation Date, you will continue to receive your
current 

 

base salary, paid
in the Company’s ordinary payroll cycle and subject to standard deductions and
withholdings.  You will also continue to
be eligible for the Company’s standard employment benefits to the extent
permitted by the terms, conditions and limitations of the benefit plans.  You agree that you will schedule and take
vacation time during the Transition Period, sufficient to use up all of your
vacation time that will have accrued through the Employment Resignation Date. 

(c)           Vesting of Stock Option Grant.  You will continue to earn vesting credit under
your outstanding stock options through the Employment Resignation Date.  Following the Employment Resignation Date,
you hereby agree and acknowledge that you will not vest in any additional
shares subject to your stock options under any condition.  

2.             Final Pay.  On the Employment
Resignation Date, the Company will pay you all accrued salary earned through
the Employment Resignation Date,
subject to standard payroll deductions and withholdings.  You are entitled to this payment by law.  You acknowledge and agree that, due to your
use of all accrued vacation during the Transition Period, you will not be owed
any vacation payment on the Employment
Resignation Date.    

3.             Health Insurance Coverage.  To the extent provided by the federal COBRA law or, if
applicable, state insurance laws (“COBRA”), and by the Company’s current group
health insurance policies, you will be eligible to continue your group health
insurance benefits at your own expense following the Employment Resignation
Date.  Later, you may be able to convert
to an individual policy through the provider of the Company’s health insurance,
if you wish.  On or after the Employment
Resignation Date, you will be provided with a separate notice describing your
rights and obligations under the applicable state and/or federal insurance
laws.  

4.             Equity Awards.  

(a)           You were previously granted the following
stock options (collectively, the “Options”) to purchase shares of the Company’s
common stock under the Company’s 2003 Equity Incentive Plan (the “Plan”): (i) a
nonstatutory stock option to purchase 33,333 shares at an exercise price of
$3.00 per share granted on November 18, 2005, as amended pursuant to an
Amendment to Stock Option Agreement dated December 7, 2006 (the “First
Option”); (ii) a nonstatutory stock option to purchase 141,667 shares at an
exercise price of $3.00 per share granted on November 18, 2005, as amended
pursuant to an Amendment to Stock Option Agreement dated December 7, 2006  (the “Second Option”); (iii) an incentive
stock option to purchase 20,000 shares at an exercise price of $5.00 per share
granted on February 8, 2007 (the “Third Option”), (iv) a nonstatutory stock
option to purchase 30,000 shares at an exercise price of $5.00 per share
granted on February 8, 2007 (the “Fourth Option”); and (v) a nonstatutory stock
option to purchase 75,000 shares at an exercise price of $5.00 per share
granted on February 8, 2007 (the “Fifth Option”).  You hereby agree and acknowledge that the
Options represent your entire equity interest in the Company as of the date
hereof.  Vesting of all Options shall cease effective as of the
Employment Resignation Date, and any unvested shares subject to the Options
shall terminate at such time.  Notwithstanding
any provisions to the contrary regarding vesting of the Options that may be
contained in the Plan and any of the stock option agreements evidencing the
Options (including all amendments thereto), and expressly superseding and
replacing any such contrary language, you hereby agree that you shall not vest
in any additional shares subject to the Options following the Employment
Resignation Date.  

 

Accordingly, as of the Employment Resignation Date, assuming no Change of
Control (as such term is defined in your Employment Agreement with the Company dated January
2006 (the “Employment Agreement”)) is
consummated prior to or on the Employment Resignation Date, then you shall be
vested in no more than: (i) 20,369 shares subject to the First Option, (ii)
86,573 shares subject to the Second Option, (iii) 12,000 shares subject to the
Third Option, (iv) 0 shares subject to the Fourth Option, and (v) 0 shares
subject to the Fifth Option.  

(b)           If you timely enter into this Agreement, comply with
your obligations hereunder, and, on or timely after the Employment Resignation
Date, you sign, date, return to the Company and allow to become effective the
Employment Resignation Date Release attached hereto as Exhibit A,
the Company hereby agrees to: (i) amend the First Option pursuant to the Amended
And Restated Stock Option Grant Notice, and the Amendment to Stock Option
Agreement, both attached hereto as Exhibit C-1,
and amend the Second Option pursuant to the Amended And Restated Stock Option
Grant Notice, and the Amendment to Stock Option Agreement, both attached hereto
as Exhibit C-2 (collectively, the “Option
Amendment Agreements”), and (ii) extend the term of the Third Option so that
you may exercise it at any time from the Transition Date until June 30, 2008.  The First Option and Second Option shall
become exercisable only in accordance with the Option Amendment Agreements.  Note that the extension of the Third Option
will result in the immediate loss of favorable incentive stock option treatment
and will result in the Third Option being taxed as a nonstatutory stock option
upon exercise.  The Fourth Option and the Fifth Option shall terminate effective as of
the Employment Resignation Date, assuming no Change of Control is consummated
prior to or on the Employment Resignation Date. 

(c)           As a condition to exercising
any of the Options, you hereby agree to reimburse the Company for all federal
and state income and employment taxes that the Company is required to withhold
and deposit in respect of such exercise (other than the Company’s share of FICA
taxes).  No shares of Company stock will
be issued to you in respect of your exercise of the Options unless and until
you have satisfied such tax reimbursement obligations.  

5.             Other Compensation or Benefits. 
You acknowledge that, except as provided in this Agreement, you will not
earn and will not receive any compensation, including without limitation
salary, bonus, incentive compensation, or severance, or any benefits, during
the Transition Period or after the Employment Resignation Date, with the
exception of any vested rights you may have under the express terms of a
written ERISA-qualified benefit plan (e.g., 401(k) account) or vested shares
subject to the Options.  By way of
example, but not limitation, you acknowledge and agree that:  (a) you will not earn, and will not receive,
any additional bonus compensation for 2007; (b) your resignation of employment
does not qualify as a resignation for “Good Reason” for the purposes of your
Employment Agreement with the Company dated January 2006 (the “Employment
Agreement”), and you are not eligible for any severance benefits, including but
not limited to severance pay, Company payment of COBRA premiums, or accelerated
vesting of equity awards (including but not limited to the Options), under the
Employment Agreement; and (c) you will remain eligible for accelerated vesting
of equity awards (including the Options) for consummation of a Change of Control
of the Company under the terms and conditions contained in Section 6.2 of the
Employment Agreement if a Change of Control is consummated prior to or on the
Employment Resignation Date, but you will not be eligible for any accelerated
vesting for any reason after the Employment Resignation 

 

Date (notwithstanding
any language to the contrary that may be contained in the Employment Agreement
or your equity award documents).  

6.             Expense Reimbursements.  You agree
that, prior to or on the Employment Resignation Date, you will submit your
final documented expense reimbursement statement reflecting all business
expenses you incurred through the Employment Resignation Date, if any, for
which you seek reimbursement.  The
Company will reimburse you for these expenses pursuant to its regular business
practice.

7.             Return of Company Property. 
On the Employment Resignation Date, or earlier if requested by the
Company, you shall return to the Company all proprietary or confidential Company
documents (and all copies thereof) and other Company property that you have in
your possession or control, including, but not limited to, sales reports, sales
and marketing information, client information, Company products, samples,
equipment, files, notes, correspondence, memoranda, email, computer-recorded
information, electronic information, drawings, records, compilations of data,
plans, forecasts, operational and financial information, research and
development information, personnel information, product and manufacturing
information, specifications, tangible property (including, but not limited to,
computers, PDA, and cellular phones), credit cards, entry cards, identification
badges and keys; and any materials of any kind that contain or embody any
proprietary or confidential information of the Company (and all reproductions
thereof in whole or in part).  You agree
that you will make a diligent search to locate any such documents, property and
information on the Employment Resignation Date. 
You must timely comply with this
paragraph to be eligible for amendment of the First Option and Second Option
pursuant to Section 4(b) hereof.  

8.             Proprietary Information Obligations. 
You hereby acknowledge and reaffirm your continuing obligations under
your Employee Proprietary Information and Inventions Agreement (the “Proprietary
Information Agreement”), a copy of which is attached hereto as Exhibit B.  

9.             Nonsolicitation Obligations.  During the Transition Period and for one (1) year
after the Employment Resignation Date, you will 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 with the Company.

10.          Confidentiality.  The provisions
of this Agreement will be held in strictest confidence by you and the Company
and will not be publicized or disclosed in any manner whatsoever; provided, however, that: 
(a) you may disclose this Agreement in confidence to your immediate
family; (b) the parties may disclose this Agreement in confidence to their
respective attorneys, accountants, auditors, tax preparers, and financial
advisors; (c) the Company may disclose this Agreement in order to fulfill
standard or legally required corporate reporting or disclosure requirements,
including filing the Agreement with the federal Securities and Exchange
Commission; and (d) the parties may disclose this Agreement insofar as such
disclosure may be necessary to enforce its terms or as otherwise required by
law.  In particular, and without
limitation, you agree not to disclose the terms of this Agreement to any
current or former Company employee or consultant.

 

11.          Nondisparagement.  You agree not
to disparage the Company or the Company’s current and former officers,
directors, employees, stockholders, parents, subsidiaries, affiliates, and
agents, in any manner likely to be harmful to them or their business, business
reputation or personal reputation; and the Company (through its officers and
directors) agrees not to disparage you in any manner likely to be harmful to
you or your business or personal reputation; provided
that the parties may respond accurately and fully to any request for
information if required by legal process.

12.          Cooperation.  You agree to
cooperate fully with the Company in connection with its actual or contemplated
defense, prosecution, or investigation of any claims or demands by or against
third parties, or other matters arising from events, acts, or failures to act
that occurred during the period of your employment by the Company.  Such cooperation includes, without
limitation, making yourself available to the Company upon reasonable notice,
without subpoena, to provide complete, truthful and accurate information in
witness interviews, depositions and trial testimony.  The Company will reimburse you for reasonable
out-of-pocket expenses you incur in connection with any such cooperation
(excluding forgone wages, salary, or other compensation) and will make reasonable
efforts to accommodate your scheduling needs. 
In addition, you agree to execute all documents (if any) necessary to
carry out the terms of this Agreement.

13.          No Admissions.  The promises
and payments in consideration of this Agreement shall not be construed to be an
admission of any liability or obligation by either party to the other party,
and neither party makes any such admission.

14.          No Voluntary Adverse Action. 
You agree that you will not voluntarily assist any person in preparing,
bringing, or pursuing any litigation, arbitration, administrative claim or
other formal proceeding against the Company, its parents, subsidiaries,
affiliates, officers, directors, employees or agents, unless pursuant to
subpoena or other compulsion of law.  

15.          Indemnity Agreement.  The Company
hereby acknowledges and reaffirms its obligations to you under the Indemnity
Agreement between you and the Company dated November 27, 2006 (the “Indemnity
Agreement”), which include obligations to indemnify you after the Employment
Resignation Date under Section 4 of the Indemnity Agreement.   A copy of the Indemnity Agreement is
attached hereto as Exhibit D.  

16.          Release of Claims.  In exchange
for consideration provided to you by this Agreement that you are not otherwise
entitled to receive, including continued employment during the Transition
Period, you hereby generally and completely release the Company and its current
and former directors, officers, employees, stockholders, partners, agents,
attorneys, predecessors, successors, parent and subsidiary entities, insurers,
affiliates, and assigns (collectively, the “Released Parties”) 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 occurring
prior to or on the date that you sign this Agreement (collectively, the
“Released Claims”).  The Released Claims include,
but are not limited to:  (a) all
claims arising out of or in any way related to your employment with the Company,
or the termination of that employment; (b) all claims related to your
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; (c) all claims for breach of contract, wrongful
termination, and breach of the implied covenant of good faith and fair dealing
(including but not limited to claims arising from or based on your Employment Agreement);
(d) all tort claims, including claims for fraud, defamation, emotional
distress, and discharge in violation of public policy; and (e) all federal,
state, and local statutory claims, including claims for discrimination,
harassment, retaliation, attorneys’ fees, or other claims arising under the
federal Civil Rights Act of 1964 (as amended), the federal Americans with
Disabilities Act of 1990, the federal Age Discrimination in Employment Act (as
amended) (“ADEA”), the California Labor Code (as amended), and the California Fair
Employment and Housing Act (as amended). 
Notwithstanding the foregoing, the following are not included in the
Released Claims (the “Excluded Claims”): (a) any rights or claims for
indemnification you may have pursuant to the Indemnity Agreement, the charter,
bylaws, or operating agreements of the Company, or under applicable law;  (b) any rights which are not waivable as
a matter of law; or (c) any claims arising from the breach of this Agreement.  In addition, nothing in this Agreement
prevents you from filing, cooperating with, or participating in any proceeding
before the Equal Employment Opportunity Commission, the Department of Labor, or
the California Department of Fair Employment and Housing, except that you
hereby waive your right to any monetary benefits in connection with any such
claim, charge or proceeding.  You hereby
represent and warrant that, other than the Excluded Claims, you are not aware
of any claims you have or might have against any of the Released Parties that
are not included in the Released Claims. 

17.          ADEA Waiver.  You hereby
acknowledge that you are knowingly and voluntarily waiving and releasing any
rights you may have under the ADEA and that the consideration given for the
waiver and release in the preceding paragraph is in addition to anything of
value to which you were already entitled. 
You further acknowledge that you have been advised by this writing, as
required by the ADEA, that: (a) your waiver and release do not apply to any
rights or claims that may arise after the date that you sign this Agreement;
(b) you should consult with an attorney prior to signing this Agreement
(although you may decide voluntarily not to do so); (c) you have twenty-one
(21) days within which to consider this Agreement  (although you may choose voluntarily to sign this Agreement  earlier); (d) you have seven (7) days
following your signing of this Agreement  to
revoke this Agreement (in a written revocation sent to the CEO); and (e) this
Agreement will not be effective until the eighth day after this Agreement has
been signed both by you and by me, provided that you do not revoke it (the
“Effective Date”). 

18.          Section 1542 Waiver.  In giving the
release herein, which includes claims which may be unknown to you at present,
you acknowledge that you have read and understand 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 or her favor at the time
of executing the release, which if known by him or her must have materially
affected his or her settlement with the debtor.”

You hereby expressly waive and relinquish all rights
and benefits under that section and any law of any other jurisdiction of
similar effect, including but not limited to your release of any unknown or
unsuspected claims herein.

 

19.          Dispute Resolution.  To aid in the
rapid and economical resolution of any disputes which may arise under this
Agreement, you and the Company agree that any and all claims, disputes or
controversies of any nature whatsoever arising from or regarding the
interpretation, performance, negotiation, execution, enforcement or breach of
this Agreement, your employment, or the termination of your employment, will be
resolved by confidential, final and binding arbitration conducted before a
single arbitrator with JAMS, Inc. (“JAMS”) in Santa Clara County, California under
JAMS’ then-applicable arbitration rules. 
The parties  acknowledge
that by agreeing to this arbitration procedure, they waive the right to resolve
any such dispute through a trial by jury, judge or administrative proceeding.  You will have the right to be represented by
legal counsel at any arbitration proceeding. 
The arbitrator shall:  (a) have
the authority to compel adequate discovery for the resolution of the dispute
and to award such relief as would otherwise be available under applicable law
in a court proceeding; and (b) issue a written statement signed by the
arbitrator regarding the disposition of each claim and the relief, if any,
awarded as to each claim, the reasons for the award, and the arbitrator’s
essential findings and conclusions on which the award is based.  The Company shall bear the JAMS arbitration
fees and administrative costs.   Nothing in this Agreement shall prevent either
you or the Company from obtaining injunctive relief in court to prevent
irreparable harm pending the conclusion of any such arbitration.    

20.          General.  This
Agreement, including its Exhibits,
constitutes the complete, final and exclusive embodiment of the entire
agreement between you and the Company with regard to the subject matter
hereof.  It is entered into without
reliance on any promise or representation, written or oral, other than those
expressly contained herein, and it supersedes any other such promises,
warranties or representations, including but not limited to any terms in the
Employment Agreement inconsistent with the terms of this Agreement (provided
that, terms in the Employment Agreement that are consistent with this Agreement
shall remain in effect).   This Agreement may not be modified or amended
except in a writing signed by both you and a duly authorized officer of the
Company.  This Agreement will bind the
heirs, personal representatives, successors and assigns of both you and the
Company, and inure to the benefit of both you and the Company, their heirs,
successors and assigns.  If any provision
of this Agreement is determined to be invalid or unenforceable, in whole or in
part, this determination will not affect any other provision of this Agreement
and the provision in question shall be deemed modified so as to be rendered
enforceable consistent with the intent of the parties insofar as possible under
applicable law.  This Agreement will be governed
by the laws of the State of California without regard to conflicts of law
principles.  Any ambiguity in this
Agreement shall not be construed against either party as the drafter.  Any waiver of a breach of this Agreement, or
rights hereunder, shall be in writing in order to be effective and shall not be
deemed to be a waiver of any successive breach or rights hereunder.  This Agreement may be executed in
counterparts which shall be deemed to be part of one original, and facsimile
signatures shall be equivalent to original signatures.

If this Agreement
is acceptable to you, please sign below and return the original to me within
twenty-one (21) days after your receipt of this Agreement.  The offer contained in this Agreement will
automatically expire if we do not receive the fully executed Agreement from you
by that date.  Do not sign the Employment
Resignation Date Release attached as Exhibit A until
the Employment Resignation Date.

We look forward to
continuing to work with you during the Transition Period and we wish you the
best in your future endeavors.

Sincerely,

RELIANT TECHNOLOGIES INC.

By: /s/ Eric B.
Stang                                                                             

Eric B. Stang

Chief
Executive Officer

UNDERSTOOD AND AGREED:

/s/ Thomas J. Scannell                                                                        

Thomas J. Scannell

 

8-14-07                                                                                                   

Date

Attachments: 

 

Exhibit A—Employment Resignation Date Release 

Exhibit B—Proprietary Information and Inventions
Agreement

Exhibit C-1—Amended and Restated Stock Option
Grant Notice and Amendment to Stock Option Agreement for First Option

Exhibit C-2—Amended and Restated Stock Option
Grant Notice and Amendment to Stock Option Agreement for Second Option

Exhibit D—Indemnity Agreement

EXHIBIT A

EMPLOYMENT RESIGNATION DATE
RELEASE

(To be signed on or within twenty-one (21) days
after the Employment Resignation Date.)

In exchange for amendment
of the First Option and Second Option and other consideration provided to me by
Reliant Technologies Inc. (the “Company”) pursuant to the transition and resignation
agreement between me and the Company dated August 14, 2007 (the “Agreement”), I
hereby provide the following Employment Resignation Date Release (the
“Release”). 

I hereby generally and completely release the Company
and its directors, officers, employees, stockholders, partners, agents,
attorneys, predecessors, successors, parent and subsidiary entities, insurers,
affiliates, and assigns (collectively, the “Released Parties”) from any and all
claims, liabilities and obligations, both known and unknown, arising out of or
in any way related to events, acts, conduct, or omissions occurring at any time
prior to or at the time that I sign this Release (collectively, the “Released
Claims”).  The Released Claims include, but
are not limited to: (1) all claims arising out of or in any way related to my
employment with the Company or the termination of that employment; (2) all
claims related to my 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 or equity
interests in the Company; (3) all claims for breach of contract, wrongful
termination, and breach of the implied covenant of good faith and fair dealing
(including but not limited to claims arising under or based on the Agreement or
the Employment Agreement); (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 (as amended) (“ADEA”), the federal Family and Medical Leave
Act, the California Family Rights Act, the California Labor Code (as amended),
and the California Fair Employment and Housing Act (as amended).  Notwithstanding the foregoing, the following
are not included in the Released Claims (the “Excluded Claims”): (1) any
rights or claims for indemnification I may have pursuant to the Indemnity
Agreement between me and the Company dated November 27, 2006 (which remains in
effect in accordance with its terms), the charter, bylaws, or operating
agreements of the Company, or under applicable law;  (2) any rights which are not waivable as
a matter of law; or (3) any claims for breach of the Agreement arising after
the date that I sign this Release.  In
addition, nothing in this Release prevents me from filing, cooperating with, or
participating in any proceeding before the Equal Employment Opportunity
Commission, the Department of Labor, or the California Department of Fair
Employment and Housing, except that I hereby waive my right to any monetary
benefits in connection with any such claim, charge or proceeding.  I hereby represent and warrant that, other
than the Excluded Claims, I am not aware of any claims I have or might have
against any of the Released Parties that are not included in the Released
Claims.  

I
acknowledge that I am
knowingly and voluntarily waiving and releasing any rights I may have under the
ADEA, and that the consideration given for the waiver and release in the 

preceding paragraph is in addition to anything of
value to which I am already entitled.  I
further acknowledge that I have been advised by this writing that:  (1) my waiver and release do not apply to any
rights or claims that may arise after the date I sign this Release; (2) I
should consult with an attorney prior to signing this Release (although I may
choose voluntarily not to do so); (3) I have twenty-one (21) days to consider
this Release (although I may choose voluntarily to sign it earlier); (4) I have
seven (7) days following the date I sign this Release to revoke it by providing
written notice of revocation to the Company’s Chief Executive Officer; and
(5) this Release will not be effective until the date upon which the
revocation period has expired, which will be the eighth calendar day after the
date I sign it (the “Effective Date of the Employment Resignation Date
Release”).

I UNDERSTAND THAT THIS
AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.  I acknowledge that I have read and understand
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, which if known by him must have
materially affected his settlement with the debtor.”  I hereby expressly waive and relinquish all
rights and benefits under that section and any law or legal principle of
similar effect in any jurisdiction with respect to my release of claims herein,
including but not limited to the release of unknown and unsuspected claims.  

I hereby represent that I
have been paid all compensation owed and for all hours worked, I have received
all the leave and leave benefits and protections for which I am eligible, and I
have not suffered any on-the-job injury for which I have not already filed a
workers’ compensation claim.  

By:                                                                                                          

Thomas J. Scannell

Date:                                                                       

EXHIBIT B

PROPRIETARY INFORMATION AND INVENTIONS
AGREEMENT

 

EXHIBIT C-1

AMENDED AND RESTATED STOCK OPTION
GRANT NOTICE AND

AMENDMENT TO STOCK OPTION AGREEMENT FOR FIRST OPTION

EXHIBIT C-2

AMENDED AND RESTATED STOCK OPTION
GRANT NOTICE AND

AMENDMENT TO STOCK OPTION AGREEMENT FOR SECOND OPTION

EXHIBIT D

INDEMNITY AGREEMENT

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