Document:

Exhibit
10.12

 

RELIANT TECHNOLOGIES, INC.

 

EMPLOYMENT AGREEMENT

 

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

 

WHEREAS,
from June 25, 2002 to December 5, 2002, Executive was Executive Vice President,
New Product Development, pursuant to that certain Employment Agreement dated
February 28, 2002 and certain other oral and/or written representations or promises
made to him (collectively, the “Prior Employment Agreement”);

 

WHEREAS,
the Company and Executive previously agreed to change Executive’s title and
responsibilities from Executive Vice President of New Product Development to
President and Chief Operating Officer, effective December 5, 2002;

 

WHEREAS,
the Company and Executive previously agreed to change Executive’s title and
responsibilities from President and Chief Operating Officer to President and
Chief Technology Officer, effective April 8, 2004;

 

WHEREAS,
the Company and Executive previously agreed to change Executive’s title and
responsibilities from President and Chief Technology Officer to Vice Chairman
and Chief Technology Officer, effective February 2, 2005; 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 employ Executive in the position of Chief Technology Officer, and Executive
hereby accepts such employment effective April 21, 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 Board of
Directors of the Company (the “Board”).

 

 

1.3          Board Seat. Executive
was elected to the Board on June 25, 2002. Executive hereby agrees to
immediately resign Executive’s position on the Board upon the termination of
Executive’s employment as Chief Technology Officer for any reason, or upon the
Board’s earlier request.

 

1.4          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 $250,000, 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 forty percent (40%) 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 forty percent (40%) 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 the following stock option grants
(collectively, the “Stock Option Grants”): (a) on February 6, 2003, Executive
was issued that certain Stock Option Grant Notice to purchase up to 100,000
shares of the Company’s Common Stock at a per share exercise price of $0.50; (b)
on February 6, 2003, Executive was issued that certain Stock Option Grant
Notice to purchase up to 45,000 shares of the Company’s Common Stock at a per
share exercise price of $0.50; (c) on September 23, 2003, Executive was issued
that certain Stock Option Grant Notice to purchase up to 200,000 shares of the
Company’s Common Stock at a per share exercise price of $0.50; and (d) on
December 28, 2004, Executive was issued that certain Stock Option Grant Notice
to purchase up to 50,000 shares of the Company’s Common Stock at a per share
exercise price of $1.75. In connection with Executive’s appointment as Chief
Technology Officer, the Company issued Executive Warrant No. 43 dated May 31,
2005, exercisable for up to 250,000 shares of the Company’s Common

 

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Stock at a per share
exercise price of $3.00 (“Warrant No. 43” and collectively with the Stock
Option Grants, 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. Notwithstanding the foregoing, in addition to the Equity
Consideration, the Company hereby agrees and acknowledges that Executive and/or
entities controlled by Executive, hold an aggregate 317,647 shares of the
Company’s Series A Preferred Stock and this Agreement shall not affect or
impact Executive’s (or such entities’) ownership of such shares in any manner.

 

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; provided that Executive will be entitled to an aggregate of twelve
(12) weeks for vacation, sick leave and/or personal time off per annum.

 

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 February 28, 2002 (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 

 

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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 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.

 

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(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.

 

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.

 

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6.             CHANGE OF CONTROL.

 

6.1          Definitions.

 

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

 

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

 

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

 

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

 

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

 

(b)           “Entity”
means a corporation, partnership or other entity, except that “Entity” shall
not include (A) the Company or any subsidiary of the Company,

 

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(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.
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 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, 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 

 

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

 

10.          LIMITATIONS AND CONDITIONS ON
PAYMENT OF BENEFITS

 

10.1        Parachute Payments.

 

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

 

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

 

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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 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 

 

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

 

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

 

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

 

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

 

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

 

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 

 

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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]

 

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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/ Dennis
  Condon

  	
   

  
	
  Dennis Condon

  
	
  President and Chief Executive
  Officer

  
	
   

  
	
   

  
	
  LEONARD C. DEBENEDICTIS

  
	
   

  
	
  /s/ Leonard C. Debenedictis

  	
   

  

 

12

 

EXHIBIT A

 

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

 

 

EXHIBIT B

 

RELEASE

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

3Exhibit 10.13

 

RELIANT TECHNOLOGIES, INC.

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of July 2,
2007, by and between ANDREW GALLIGAN (“Executive”)
and RELIANT TECHNOLOGIES, INC. (the
“Company”), a Delaware corporation.

 

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

 

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

 

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

 

1.                         EMPLOYMENT BY THE COMPANY.

 

1.1                   Title and Responsibilities. Subject to the terms set forth herein, the
Company agrees to employ Executive in the position of Vice President and Chief
Financial Officer, and Executive hereby accepts such employment effective July
2, 2007 (the “Effective Date”). During his employment with the Company,
Executive will report directly to the President and Chief Executive Officer (“CEO”)
of the Company in this role, and shall devote his best efforts and all of his
business time, skill and attention (except for vacation periods and reasonable
periods of illness or other incapacity permitted by the Company’s general
employment policies and authorized activities pursuant to Section 5.1 of this
Agreement) to the business of the Company. Executive shall be the Chief
Financial officer for the Company responsible for all duties corresponding to
such a role.

 

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

 

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

 

2.                         COMPENSATION.

 

2.1                   Base Salary. Executive shall receive for services to be
rendered hereunder a base salary at an annualized rate of $240,000, payable on
a semi-monthly basis in

 

1

 

accordance with the Company’s regular payroll
dates, less required and designated payroll withholdings and deductions (the “Base
Salary”). Executive may be considered for increases in Base Salary in
accordance with Company policy and subject to review and approval by the Board
of Directors (the “Board”) or the Compensation Committee of the Board (the “Compensation
Committee”).

 

2.2                   Bonus Compensation.

 

(a)                      Executive Bonus Plan. Effective July 2, Executive shall be eligible
to participate in the Company’s Executive Bonus Plan, as amended from time to
time (the “Bonus Plan”) on the same terms as other corporate officers. Pursuant
to the Bonus Plan, Executive shall be eligible to earn an annualized Target
Bonus equal to forty percent (40%) of Executive’s then-current Base Salary,
based on achievement of one hundred percent (100%) of the individual and
Company performance objectives and milestones established by the Board or
Compensation Committee, as applicable, for that year in its sole discretion.
All bonus compensation shall be paid subject to applicable payroll withholdings
and employment taxes.

 

(b)                      Guaranteed Bonus. For his services during the term in which he
is employed during calendar year 2007, Executive shall receive a guaranteed
bonus (the “Guaranteed Bonus”) under the Bonus Plan equal to thirty percent
(30%) of Executive’s actual Base Salary earnings during the term of his
employment during 2007 (i.e.,  the Guaranteed Bonus shall equal
seventy-five percent (75%) of Executive’s Target Bonus, prorated to reflect his
partial year service). The Guaranteed Bonus shall be paid at the same time and
on the same terms as other executive bonuses under the Bonus Plan. Executive
must remain employed with the Company through and including December 31, 2007
to receive the Guaranteed Bonus. Executive may also receive an additional bonus
payment for the term in which he is employed during 2007 if the Company
achieves or exceeds its performance objectives during the period.

 

2.3                   Equity.

 

(a)                      Stock Options. On or about the Effective Date, Executive
shall be granted an option (the “Option”) to purchase a total of 300,000 shares
of Company Common Stock pursuant to the terms and conditions of the Company’s
2003 Equity Incentive Plan, as may be amended from time to time (the “Stock
Plan”). Shares under the Option shall have a per share exercise price equal to
the fair market value of a share of Company Common Stock as of the date of
grant, as determined by the Board or Compensation Committee, as applicable, in
its sole discretion. The Option shall be subject to the terms and conditions
set forth in this Agreement, the Stock Plan and in a stock option grant notice
and stock option agreement to be issued to Executive. Shares under the Option
shall have a four (4) year vesting schedule with twenty-five percent (25%) of
the shares vesting upon Executive’s completion of one (1) year of continuous
employment, and the remaining shares vesting in equal monthly installments for
each full month of Executive’s continuous employment thereafter. Except as
otherwise specifically set forth herein (including Section 3 of the Consulting
Arrangement attached hereto as Exhibit B), in the event of termination of
Executive’s employment with the Company for any reason, all stock options and
other stock awards then held by Executive shall cease vesting as of the date of
such termination (the “Termination Date”), and shall be exercisable after the
Termination Date pursuant to the terms of the applicable stock option
agreements. Upon either Executive’s

 

2

 

termination of employment
without Cause (defined below) at any time, or Executive’s resignation for Good
Reason (defined below) at any time prior to or within twelve (12) months after
a Change in Control, and subject to Executive satisfying the release
requirements set forth in Section 9 of this Agreement, Executive shall have six
(6) months following the Termination Date (but not beyond the end of the
applicable option term, if earlier) to exercise any vested shares subject to
the Option, or any other stock options or equity awards then held by Executive.

 

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

 

3.                         BENEFITS.

 

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

 

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

 

4.                         CONFIDENTIAL INFORMATION, RIGHTS AND DUTIES.

 

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

 

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

 

5.                         OUTSIDE ACTIVITIES.

 

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

 

3

 

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

 

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

 

7.                         TERMINATION OF EMPLOYMENT/SEVERANCE BENEFITS.

 

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

 

7.2                   Termination Date Payment. Upon termination of Executive’s employment for
any reason, the Company shall pay Executive all accrued but unpaid Base Salary
and bonus compensation, and all accrued but unused PTO earned through the
Termination Date, less required and designated payroll withholdings and
deductions. Executive shall also be reimbursed for all business expenses
incurred through and including the Termination Date pursuant to the terms of
Section 3.1 above, provided Executive submits such expenses for reimbursement
no later than thirty (30) days after the Termination Date. Except as expressly
provided herein, Executive shall not be entitled to receive any other
compensation or benefits from the Company after the Termination Date, with the
exception of any vested right Executive has under the express terms of a
written ERISA-qualified benefit plan (e.g., 401(k) account).

 

7.3                   Termination Without
Cause/Resignation For Good Reason. Upon termination of Executive’s employment without Cause at any time, or
upon Executive’s resignation for Good Reason at any time before or within
twelve (12) months after a Change in

 

4

 

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

 

7.4                   Definitions.

 

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

 

(b)                      Good Reason. For purposes of this Agreement, “Good Reason”
for Executive to resign his employment shall exist if one or more of the
following actions are taken by the Company without Executive’s consent: (i) the
change in Executive’s direct reporting relationship to the CEO and/or
assignment to Executive of duties or responsibilities that, taken as a whole,
results in a material diminution in Executive’s function as the Company’s Vice
President and Chief Financial Officer; (ii) a relocation of Executive’s
business office to a location more than twenty-five (25) miles from Mountain
View, California and such relocation results in a increase in Executive’s
one-way commuting distance from his home by twenty-five (25) miles or more,
except for required travel by Executive on Company business to an extent
substantially consistent with business travel obligations of Vice President and
Chief Financial Officer 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 (including a reduction in Base Salary,
Target Bonus, benefits (unless such reduction in Base Salary, Target Bonus or
benefits is applicable to all executives of the Company) or failure by a
successor corporation to assume and abide by the terms and conditions of this
Agreement); provided, however, that
the action or conduct described above will constitute “Good Reason” only if
such action or conduct continues after Executive has provided the Board with
written notice thereof and fifteen (15) days to cure the same. Notwithstanding
the foregoing, Executive’s death or disability shall not constitute Good Reason
for resignation. Executive must resign within ninety (90) days after the date
the action which gives rise to Good Reason occurs in order to be deemed to have
resigned for Good

 

5

 

Reason. The determination that a resignation
is for Good Reason shall be made by the Board in good faith.

 

8.                         CHANGE IN CONTROL.

 

8.1                   Accelerated Vesting Benefits.

 

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

 

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

 

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

 

8.2                   Definitions.

 

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

 

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

 

6

 

Entity (the “Subject
Person”) exceeds the designated percentage threshold of the outstanding voting
securities as a result of a repurchase or other acquisition of voting
securities by the Company reducing the number of shares outstanding, provided
that if a Change in Control would occur (but for the operation of this
sentence) as a result of the acquisition of voting securities by the Company,
and after such share acquisition, the Subject Person becomes the owner of any additional
voting securities that, assuming the repurchase or other acquisition had not
occurred, increases the percentage of the then outstanding voting securities
owned by the Subject Person over the designated percentage threshold, then a
Change in Control shall be deemed to occur;

 

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

 

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

 

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

 

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

 

9.                         RELEASE REQUIREMENT. Executive must sign and allow to become effective a general release of
claims in substantially the form attached hereto as Exhibit C (the “Release”)
as a precondition to receiving the extended exercise period available under
Section 2.3 of this Agreement and accelerated vesting benefits available under
Section 8 of this Agreement, and to entering into the Consulting Arrangement
under Section 7.3 of this Agreement. Nothing within the Release shall release
or excuse the Company from any unperformed obligation(s) (which shall be
specifically enumerated in the Release as asserted by the Executive) owing to
Executive as set forth in this Agreement (including the Consulting Agreement),
and the Release is not meant to be a modification nor amendment of the terms
therein. Executive must sign the Release

 

7

 

no later than thirty (30)
days after the Termination Date to receive the benefits under Sections 2.3, 7.3
and 8.1(c) of this Agreement; within thirty (30) days after the Change in
Control Date to receive any benefits under Section 8.1(a) of the Agreement; and
within thirty (30) days after the CIC Anniversary Date to receive any benefits
under Section 8.l(b)  of the
Agreement.

 

10.                  LIMITATIONS AND CONDITIONS ON PAYMENT OF BENEFITS.

 

10.1            Parachute Payments.

 

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

 

8

 

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

 

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

 

11.                  ARBITRATION. To provide a  mechanism for
rapid and economical dispute resolution, Executive and the Company agree that
any and all disputes, claims, or causes of action, in law or equity, arising
from or relating to this Agreement (including all exhibits hereto) or its
enforcement, performance, breach, or interpretation, or to Executive’s
employment with the Company or the termination of Executive’s employment with
the Company, will be resolved, to the fullest extent permitted by law, by
final, binding, and confidential arbitration held in Santa Clara County,
California and conducted by a single arbitrator from the panel of Judicial
Arbitration & Mediation Services (“JAMS”), under its then-existing rules
and procedures governing the arbitration of employment-related disputes.
Executive understands and agrees that under this Section 11 of the Agreement,
Executive is waiving his right to a jury trial and his right to file any
administrative agency charge with regard to any such disputes, claims or causes
of action, including, but not limited to, all federal and state statutory and
common law claims,

 

 

9

 

claims
related to Executive’s employment with the Company or to the termination of
that employment, claims related to any breach of contract, tort, wrongful
termination, discrimination, wages or benefits, or claims for any form of
equity or compensation. Nothing in this Section 11 of this Agreement is
intended to prevent either the Executive or the Company from obtaining
injunctive relief in court to prevent irreparable harm pending the conclusion
of any such arbitration.

 

12.                  GENERAL PROVISIONS.

 

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

 

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

 

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

 

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

 

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

 

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

 

10

 

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

 

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

 

12.9            Exhibits.

 

Exhibit A – Proprietary Information Agreement 

Exhibit B – Consulting Arrangement 

Exhibit C – Release

 

11

 

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

 

RELIANT
TECHNOLOGIES, INC.

 

 

	
  /s/ Eric Stang

  	
   

  
	
  Eric Stang

  
	
  Chief Executive
  Officer

  
	
   

  
	
   

  
	
  ANDREW GALLIGAN:

  
	
   

  
	
   

  
	
  /s/ Andrew Galligan

  	
   

  

 

12

 

EXHIBIT A

 

EMPLOYEE PROPRIETARY INFORMATION AND
INVENTIONS AGREEMENT

 

A-1

 

EXHIBIT B

 

CONSULTING ARRANGEMENT

 

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

 

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

 

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

 

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

 

 

B-1

 

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

 

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

 

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

 

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

 

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

 

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

 

B-2

 

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

 

B-3

 

EXHIBIT C

 

RELEASE

 

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

 

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

 

C-1

 

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

 

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

 

UNDERSTOOD
AND AGREED:

 

 

	
   

  	
   

  	
  Date:

  	
   

  
	
  Andrew Galligan

  	
   

  	
   

  

 

C-2

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