Document:

Exhibit 10.41

 

THIS
WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF
UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT
REQUIRED.

 

WARRANT TO PURCHASE STOCK

 

	
  Corporation:

  	
   

  	
  RELIANT
  TECHNOLOGIES, INC., a Delaware Corporation

  
	
  Number
  of Shares:

  	
   

  	
  22,500

  
	
  Class
  of Stock:

  	
   

  	
  Series
  B Preferred

  
	
  Initial
  Exercise Price:

  	
   

  	
  $

  	
  2.00
  per share

  
	
  Issue
  Date:

  	
   

  	
  August
  26, 2004

  
	
  Expiration
  Date:

  	
   

  	
  August
  26, 2014 (Subject to Section 4.1)

  

 

THIS
WARRANT CERTIFIES THAT, for good and valuable consideration, the receipt of
which is hereby acknowledged, COMERICA BANK or its assignee (“Holder”) is
entitled to purchase the number of fully paid and nonassessable shares of the
class of securities (the “Shares”) of the corporation (the “Company”) at the
initial exercise price per Share (the “Warrant Price”) all as set forth above
and as adjusted pursuant to Article 2 of this warrant, subject to the
provisions and upon the terms and conditions set forth in this warrant.

 

ARTICLE
1. EXERCISE.

 

1.1           Method
of Exercise. Holder may exercise this warrant by delivering this warrant
and a duly executed Notice of Exercise in substantially the form attached as
Appendix I to the principal office of the Company. Unless Holder is exercising
the conversion right set forth in Section 1.2, Holder shall also deliver to the
Company a check for the aggregate Warrant Price for the Shares being purchased.

 

1.2           Conversion
Right. In lieu of exercising this warrant as specified in Section 1.1,
Holder may from time to time convert this warrant, in whole or in part, into a
number of Shares determined by dividing (a) the aggregate fair market value of
the Shares or other securities otherwise issuable upon exercise of this warrant
minus the aggregate Warrant Price of such Shares by (b) the fair market value
of one Share. The fair market value of the Shares shall be determined pursuant
to Section 1.4.

 

1.3           Intentionally
Omitted.

 

1.4           Fair
Market Value. If the Shares are traded regularly in a public market, the
fair market value of the Shares shall be the closing price of the Shares (or
the closing price of the Company’s stock into which the Shares are convertible)
reported for the business day immediately before Holder delivers its Notice of
Exercise to the Company. If the Shares arc not regularly traded in a public
market, the Board of Directors of the Company shall determine fair market value
in its reasonable good faith judgment.

 

 

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

 

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

 

1.7           Repurchase
on     Sale Merger, or Consolidation
of the Company.

 

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

 

1.7.2        Assumption of Warrant. If upon the
closing of any Acquisition the successor entity assumes the obligations of this
warrant, then this warrant shall be exercisable for the same securities, cash,
and property as would be payable for the Shares issuable upon exercise of the
unexercised portion of this warrant as such Shares were outstanding on the
record date for the Acquisition and subsequent closing. The Warrant Price shall
be adjusted accordingly. The Company shall use reasonable efforts to cause the
surviving corporation to assume the obligations of this warrant.

 

1.7.3        Nonassumption. If upon the closing of
any Acquisition the successor entity does not assume the obligations of this
warrant and Holder has not otherwise exercised this warrant in full, then this
warrant shall be deemed to have been automatically converted pursuant to
Section 1.2 and thereafter Holder shall participate in the Acquisition on the
same terms as other holders of the same class of securities of the Company.

 

ARTICLE
2. ADJUSTMENTS TO THE SHARES.

 

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

 

2.2           Reclassification,
Exchange or Substitution. Upon any reclassification, exchange,
substitution, or other event that results in a change of the number and/or
class of the securities issuable upon exercise or conversion of this warrant,
Holder shall be entitled to receive, upon exercise or conversion of this
warrant, the number and kind of securities and property that Holder would have
received for the Shares if this warrant had been exercised immediately before

 

2

 

such
reclassification, exchange, substitution, or other event. Such an event shall
include any automatic conversion of the outstanding or issuable securities of
the Company of the same class or series as the Shares to common stock pursuant
to the terms of the Company’s Certificate of Incorporation upon the closing of
a registered public offering of the Company’s common stock. The Company or its
successor shall promptly issue to Holder a new warrant for such new securities
or other property. The new warrant shall provide for adjustments which shall be
as nearly equivalent as may be practicable to the adjustments provided for in
this Article 2 including, without limitation, adjustments to the Warrant Price
and to the number of securities or property issuable upon exercise of the new
warrant. The provisions of this Section 2.2 shall similarly apply to successive
reclassifications, exchanges, substitutions, or other events.

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

 

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

 

2.5           No
Impairment. The Company shall not, by amendment of its Certificate of
Incorporation or through a reorganization, transfer of assets, consolidation,
merger, dissolution, issue, or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed under this warrant by the Company, but shall
at all times in good faith assist in carrying out all the provisions of this
Article 2 and in taking all such action as may be reasonably necessary or
appropriate to protect Holder’s rights under this Article against impairment.

 

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

 

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

 

3

 

ARTICLE
3. REPRESENTATIONS. AND COVENANTS OF THE COMPANY.

 

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

 

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

 

(b)           The
Company’s capitalization table attached to this warrant is true and complete as
of the Issue Date.

 

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

 

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

 

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

 

ARTICLE
4. MISCELLANEOUS.

 

4.1           Term;
Notice of Expiration. This warrant is exercisable in whole or in part, at
any time and from time to time on or before the Expiration Date set forth
above; provided, however, that if the Company completes its initial public
offering within the three-year period immediately prior to the Expiration Date,
the Expiration Date shall automatically be extended until the third anniversary
of the effective date of the Company’s initial public offering. If this warrant
has not been exercised prior to the Expiration Date, this warrant shall he
deemed to have been automatically exercised on the Expiration Date by
“cashless’ conversion pursuant to Section 1.2.

 

4

 

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

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT
AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL
THAT SUCH REGISTRATION IS NOT REQUIRED.

 

4.3           Market
Stand-Off Agreement. Holder shall not sell, dispose of, transfer, make any
short sale of, grant any option for the purchase of, or enter into any hedging
or similar transaction with the same economic effect as a sale, any Common
Stock (or other securities) of the Company held by Holder, for a period of time
specified by the managing underwriter(s) (not to exceed one hundred eighty
(180) days) following the effective date of a registration statement of the
Company filed under the Act. Holder agrees to execute and deliver such other
agreements as may be reasonably requested by the Company and/or the managing
underwriter(s) which are consistent with the foregoing or which are necessary
to give further effect thereto. In order to enforce the foregoing covenant, the
Company may impose stop-transfer instructions with respect to such Common Stock
(or other securities) until the end of such period. The underwriters of the
Company’s stock are intended third party beneficiaries of this Section 4.3 and
shall have the right, power and authority to enforce the provisions hereof as
though they were a party hereto.

 

4.4           Compliance
with Securities Laws on Transfer. This warrant and the Shares issuable upon
exercise of this warrant (and the securities issuable, directly or indirectly,
upon conversion of the Shares, if any) may not be transferred or assigned in
whole or in part without compliance with applicable federal and state
securities laws by the transferor and the transferee (including, without
limitation, the delivery of investment representation letters and legal
opinions reasonably satisfactory to the Company). The Company shall not require
Holder to provide an opinion of counsel if the transfer is to an affiliate of
Holder or if there is no material question as to the availability of current
information as referenced in Rule 144(c), Holder represents that it has
complied with Rule 144(d) and (e) in reasonable detail, the selling broker
represents that it has complied with Rule 144(f), and the Company is provided
with a copy of Holder’s notice of proposed sale.

 

4.5           Transfer
Procedure. Subject to the provisions of Section 4.3, Holder may transfer
all or part of this warrant or the Shares issuable upon exercise of this
warrant (or the securities issuable, directly or indirectly, upon conversion of
the Shares, if any) by giving the Company notice of the portion of the warrant
being transferred setting forth the name, address and taxpayer identification
number of the transferee and surrendering this warrant to the Company for
reissuance to the transferee(s) (and Holder, if applicable); provided, however,
that Holder may transfer all or part of this warrant to its affiliates,
including, without limitation, Comerica Incorporated, at any time without
notice to the Company, and such affiliate shall then be entitled to all the
rights of Holder under this warrant and any related agreements, and the Company
shall cooperate fully in ensuring that any stock issued upon exercise of this
warrant is Issued in the name of the affiliate that exercises the warrant. The
terms and conditions of this warrant shall

 

5

 

inure
to the benefit of, and be binding upon, the Company and the holders hereof and
their respective permitted successors and assigns. Unless the Company is filing
financial information with the SEC pursuant to the Securities Exchange Act of
1934, the Company shall have the right to refuse to transfer any portion of this
warrant to any person who directly competes with the Company.

 

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

 

COMERICA
BANK

Attn:
Warrant Administrator

500
Woodward Avenue, 32nd Floor, MC 3379

Detroit,
MI  48226

 

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

 

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

 

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

 

	
   

  	
  RELIANT
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Roger J. Howe

  	
   

  
	
   

  	
  Name: 

  	
  Roger J. Howe

  	
   

  
	
   

  	
  Title:

  	
  Chairman & CFO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Derek Howe

  	
   

  
	
   

  	
  Name: 

  	
  Derek How

  	
   

  
	
   

  	
  Title: 

  	
  Secretary

  	
   

  
								

 

Authorized
signatories under Corporate Resolutions to Borrow or an authorized signer(s)
under a resolution covering warrants must sign the warrant.

 

6

 

APPENDIX 1

 

NOTICE OF EXERCISE

 

1.             The undersigned hereby elects to purchase         
shares of the            
stock of RELIANT TECHNOLOGIES, INC.
pursuant to the terms of the attached warrant, and tenders herewith payment of
the purchase price of such shares in full.

 

1.             The undersigned hereby elects to convert the
attached warrant into shares in the manner specified in the warrant. This
conversion is exercised with respect to            
of the shares covered by the warrant.

 

[Strike paragraph that does not apply.]

 

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

 

COMERICA
BANK

Attn:
Warrant Administrator

500
Woodward Avenue, 32nd Floor, MC 3379

Detroit,
Ml 48226

 

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

 

COME
RICA RANK or
Registered Assignee

 

	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Date)

  	
   

  	
   

  

 

Appendix 1

 

EXHIBIT A

 

Anti-Dilution Provisions

(For Preferred Stock Warrants With Existing Anti-Dilution Protection)

 

In
the event of the issuance by the Company, after the Issue Date of the warrant,
of securities at a price per share less than One Dollar and Fifty Cents
($1.50)(a “Diluting Issuance”), then the number of shares of common stock
issuable upon conversion of the Shares shall be adjusted in accordance with
those anti-dilution provisions (the “Provision”) of the Company’s Certificate
of Incorporation, as amended, which apply to Diluting Issuances.

 

Under
no circumstances shall the aggregate Warrant Price payable by the Holder upon
exercise of the warrant increase as a result of any adjustment arising from a
Diluting Issuance.

 

A-1

 

EXHIBIT B

 

Registrations Rights

 

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

 

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

 

By
acceptance of the Warrant to which this Exhibit it B is attached, Holder shall
be deemed to be an “Investor” and a “Holder” under and a party to the
Agreement.

 

B-1Exhibit 10.42

 

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

 

RELIANT
TECHNOLOGIES

 

WARRANT
TO PURCHASE SERIES B PREFERRED STOCK

 

	
  No. PBBW-7

  	
  October
  29, 2004

  

 

Void
After October 28, 2009

 

THIS CERTIFIES THAT, for value
received, R. Rox Anderson, or his assigns (the “Holder”), is entitled to subscribe for and
purchase at the Exercise Price (defined below) from Reliant Technologies, Inc.,  a Delaware corporation
(the “Company”),
up to 210,000 shares of the Series B
Preferred Stock of the Company (the “Series B Preferred Stock”).

 

This Warrant is being issued pursuant to the
terms of the Series B Preferred Stock Purchase and Warrant Agreement, dated May
1, 2003 by and among the Company and the Purchasers therewith (the “Purchase Agreement”).

 

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

 

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

 

(b)           “Exercise Price”
shall mean $1.50 per share, subject to adjustment pursuant to Section 5
below.

 

(c)           “Exercise Shares”
shall mean the shares of the Company’s Series B Preferred Stock issuable upon
exercise of this Warrant, subject to adjustment pursuant to the terms herein,
including but not limited to adjustment pursuant to Section 5 below.

 

2.             VESTING. Notwithstanding
anything to the contrary in this Warrant, this Warrant shall only be
exercisable with respect to those shares of the Company’s Series B Preferred
Stock which have vested as of the date of exercise. The shares of Series B
Preferred Stock issuable pursuant to this Warrant shall become exercisable
(i.e., vest) according to the following schedule:  70,000 shares per year with vesting
commencing on September 8, 2004 (for example, the first 70,000 shares will
become exercisable on September 8, 2005 and the second 70,000 shares will
become exerciseable on September 8, 2006); provided,
however, that vesting shall
immediately cease if, at any time, the Holder’s consulting relationship with
the Company is terminated for any reason.

 

3.             EXERCISE OF WARRANT. Subject to Section 2 above,  the rights
represented by this Warrant may be exercised in whole or in part at any time
during the Exercise Period, by delivery of the following to the Company at its
address set forth above (or at such other address as it may designate by notice
in writing to the Holder):

 

 

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

 

(b)           Payment of the
Exercise Price in cash or by check; and

 

(c)           This Warrant.

 

Upon the exercise of the rights represented by this
Warrant, a certificate or certificates for the Exercise Shares so purchased,
registered in the name of the Holder or persons affiliated with the Holder, if
the Holder so designates, shall be issued and delivered to the Holder within a
reasonable time after the rights represented by this Warrant shall have been so
exercised.

 

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

 

3.1          Net Exercise.
Notwithstanding any provisions herein to the contrary, if the fair market value
of one share of the Company’s Series B Preferred Stock is greater than the
Exercise Price (at the date of calculation as set forth below), in lieu of
exercising this Warrant by payment of cash, the Holder may elect to receive
shares equal to the value (as determined below) of this Warrant (or the portion
thereof being canceled) by surrender of this Warrant at the principal office of
the Company together with the properly endorsed Notice of Exercise in which
event the Company shall issue to the Holder a number of shares of Series B
Preferred Stock computed using the following formula:

 

X = Y (A-B)

A

 

Where X =             the number of shares of Series B Preferred
Stock to be issued to the Holder

 

Y =          the number of shares of Series B Preferred
Stock purchasable under the Warrant or, if only a portion of the Warrant is
being exercised, the portion of the Warrant being canceled (at the date of such
calculation)

 

A =         the fair market value of one share of the
Company’s Series B Preferred Stock (at the date of such calculation)

 

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

 

For purposes of the above calculation, the fair market
value of one share of Series B Preferred Stock shall be determined by the
Company’s Board of Directors in good faith;

 

2

 

provided,
however, that in the event that this Warrant is exercised
pursuant to this Section 2.1 in connection with the Company’s initial
public offering of its Common Stock, the fair market value per share shall be
the product of (i) the per share offering price to the public of the Company’s
initial public offering, and (ii) the number of shares of Common Stock into
which each share of Series B Preferred Stock is convertible at the time of such
exercise.

 

4.             COVENANTS OF THE
COMPANY.

 

4.1          Covenants as to Exercise
Shares. The Company covenants and agrees that all Exercise Shares that may
be issued upon the exercise of the rights represented by this Warrant will,
upon issuance, be validly issued and outstanding, fully paid and nonassessable,
and free from all taxes, liens and charges with respect to the issuance
thereof. The Company further covenants and agrees that the Company will at all
times during the Exercise Period, have authorized and reserved, free from
preemptive rights, a sufficient number of shares of its Series B Preferred
Stock to provide for the exercise of the rights represented by this Warrant. If
at any time during the Exercise Period the number of authorized but unissued
shares of Series B Preferred Stock shall not be sufficient to permit exercise
of this Warrant, the Company will take such corporate action as may, in the
opinion of its counsel, be necessary to increase its authorized but unissued
shares of Series B Preferred Stock to such number of shares as shall be
sufficient for such purposes.

 

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

 

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

 

5.             REPRESENTATIONS OF
HOLDER.

 

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

 

3

 

5.2          Securities Are Not
Registered.

 

(a)           The Holder
understands that the Warrant and the Exercise Shares have not been registered
under the Securities Act of 1933, as amended (the “Act”) on the basis that no distribution
or public offering of the stock of the Company is to be effected. The Holder
realizes that the basis for the exemption may not be present if,
notwithstanding its representations, the Holder has a present intention of
acquiring the securities for a fixed or determinable period in the future,
selling (in connection with a distribution or otherwise), granting any
participation in, or otherwise distributing the securities. The Holder has no
such present intention.

 

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

 

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

 

5.3          Disposition of Warrant
and Exercise Shares.

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

6.             ADJUSTMENT OF
EXERCISE PRICE. In the event of changes in the outstanding Series B
Preferred Stock of the Company by reason of stock dividends, split-ups,
recapitalizations, reclassifications, combinations or exchanges of shares,
separations, reorganizations, liquidations, or the like, the number and class
of shares available under the Warrant in the aggregate and the Exercise Price
shall be correspondingly adjusted to give the Holder of the Warrant, on
exercise for the same aggregate Exercise Price, the total number, class, and
kind of shares as the Holder would have owned had the Warrant been exercised
prior to the event and had the Holder continued to hold such shares until after
the event requiring adjustment; provided,
however, that such adjustment shall not be made with respect to, and
this Warrant shall terminate if not exercised prior to, the events set forth in
Section 8 below. The form of this Warrant need not be changed because of
any adjustment in the number of Exercise Shares subject to this Warrant.

 

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

 

8.             EARLY TERMINATION. In
the event of, at any time during the Exercise Period, an initial public
offering of securities of the Company registered under the Act, or any capital
reorganization, or any reclassification of the capital stock of the Company (other
than a change in par value or from par value to no par value or no par value to
par value or as a result of a stock dividend or subdivision, split-up or
combination of shares), or the consolidation or merger of the Company with or
into another corporation (other than a merger solely to effect a
reincorporation of the Company into another state), or the sale or other
disposition of all or substantially all the properties and assets of the
Company in its entirety to any other person, the Company shall provide to the
Holder twenty (20) days advance written notice of such public offering,
reorganization, reclassification, consolidation, merger or sale or other
disposition of the Company’s assets, and this Warrant shall terminate unless
exercised prior to the date such public offering is closed or the occurrence of
such reorganization, reclassification, consolidation, merger or sale or other
disposition of the Company’s assets.

 

5

 

9.             MARKET STAND-OFF
AGREEMENT. Holder shall not sell, dispose of, transfer, make any short sale
of, grant any option for the purchase of, or enter into any hedging or similar
transaction with the same economic effect as a sale, any Common Stock (or other
securities) of the Company held by Holder, for a period of time specified by
the managing underwriter(s) (not to exceed one hundred eighty (180) days)
following the effective date of a registration statement of the Company filed
under the Act. Holder agrees to execute and deliver such other agreements as
may be reasonably requested by the Company and/or the managing underwriter(s)
which are consistent with the foregoing or which are necessary to give further
effect thereto. In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to such Common Stock (or other
securities) until the end of such period. The underwriters of the Company’s
stock are intended third party beneficiaries of this Section 8 and shall have
the right, power and authority to enforce the provisions hereof as though they
were a party hereto.

 

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

 

11.          TRANSFER OF WARRANT. Subject
to applicable laws and the restriction on transfer set forth on the first page
of this Warrant, this Warrant and all rights hereunder are transferable, by the
Holder in person or by duly authorized attorney, upon delivery of this Warrant
and the form of assignment attached hereto to any transferee designated by
Holder. The transferee shall sign an investment letter in form and substance
satisfactory to the Company.

 

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

 

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

 

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

 

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

 

6

 

IN WITNESS WHEREOF, the Company
has caused this Warrant to be executed by its duly authorized officer as of
October 29, 2004.

 

	
   

  	
  RELIANT TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger J. Howe

  
	
   

  	
   

  	
  Roger J. Howe

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  Sorrento
  Towers North - East Tower

  
	
   

  	
   

  	
  5375 Mira
  Sorrento Place

  
	
   

  	
   

  	
  Suite 100

  
	
   

  	
   

  	
  San Diego, CA 92121

  
				

 

7

 

NOTICE
OF EXERCISE

 

TO:  Reliant Technologies, Inc.

 

(1)           o            The undersigned hereby elects to purchase                      
shares of the Series B Preferred Stock of Reliant Technologies, Inc. (the “Company”) pursuant to the terms of the attached
Warrant, and tenders herewith payment of the exercise price in full, together
with all applicable transfer taxes, if any.

 

o            The
undersigned hereby elects to purchase                      
shares of the Series B Preferred Stock of Reliant Technologies, Inc. (the “Company”) pursuant to the terms of the net exercise
provisions set forth in Section 2.1 of the attached Warrant, and shall
tender payment of all applicable transfer taxes, if any.

 

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

 

 

(Name)

 

 

 

(Address)

 

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

 

	
   

  	
   

  	
   

  
	
  (Date)

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Print name)

  

 

 

ASSIGNMENT
FORM

 

(To assign the foregoing
Warrant, execute this form and supply

required information. Do not use this form to purchase shares.)

 

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

 

	
  Name:

  	
   

  
	
  (Please
  Print)

  
	
   

  
	
  Address:

  	
   

  
	
  (Please
  Print)

  
	
   

  
	
  Dated:                   ,
  20   

  
	
   

  
	
  Holder’s

  Signature:

  	
   

  	
   

  
	
   

  
	
  Holder’s

  Address:

  	
   

  	
   

  
					

 

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

 

 

RELIANT TECHNOLOGIES, INC.

 

FIRST AMENDMENT TO WARRANT TO PURCHASE 

SERIES B PREFERRED STOCK

 

This FIRST AMENDMENT TO WARRANT TO PURCHASE SERIES
B PREFERRED STOCK (this “Amendment”), is made
and entered into as of the 20th day of December, 2006 (the “Amendment Date”) by and
between Reliant Technologies, Inc, a Delaware corporation (the “Company”) and R. Rox Anderson, the undersigned
warrant holder (the “Holder”).

 

RECITALS

 

WHEREAS,  the Holder is
the holder of that certain warrant dated October 29, 2004 and designated as
Warrant No. PBBW-7 to purchase 210,000 shares of the Company’s Series B
Preferred Stock at an exercise price of $1.50 per share (the “Warrant”); and

 

WHEREAS,  the Company
desires to offer and the Holder wishes to accept the Company’s offer to amend
the Warrant with terms that are intended to avoid the potential adverse tax
consequences associated with the Warrant under Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”); and

 

WHEREAS,  the Company
and the Holder desire to amend the Warrant as provided herein.

 

NOW, THEREFORE, in consideration of the foregoing
and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the undersigned parties hereby agree as follows:

 

16.          Section 1(b) of the
Warrant is hereby amended and restated in its entirety to read as follows:

 

“Exercise Period” shall
mean only the earlier of either one of the following two periods:

 

(i)            the
12-month period commencing on January 1, 2008 and ending on December 31, 2008;
and

 

(ii)           the
period from the occurrence of a “change in control” as defined under Section
409A of the Code (a “409A
Change in Control Event”) through the end of the calendar year
of such change in control. As used in this Section 1(b) only, “change in control” means any
of the following: (a) the date that any one person or persons acting as a group
acquires ownership of the Company’s stock constituting more than fifty percent
(50%) of the total fair market value or total voting power of the Company; (b)
the date that any one person or persons acting as a group acquires (or has
acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) ownership of the stock of the Company
possessing thirty-five percent (35%) or more of the total voting power of the
stock of the Company; (c) the date that any one person or persons acting as a
group acquires assets from the Company that have a total

 

 

gross fair market value
equal to or more than forty percent (40%) of the total gross fair market value
of all of the assets of the Company immediately prior to such acquisition; or
(d) the date that a majority of members of the Company’s board of directors is
replaced during any 12-month period by directors whose appointment or election
is not endorsed by a majority of the members of the board of directors prior to
the date of the appointment or elections. The determination of whether an event
constitutes a Section 409A “change in control” for purposes of this Section
1(b) shall be made in accordance with its definition under Section 409A of the
Code and its regulations and other guidance thereunder.”

 

17.          Section 8 of the
Warrant is hereby deleted in its entirety.

 

18.          Except as expressly
amended by this Amendment, the terms and conditions of the Warrant remain in
full force and effect.

 

19.          This Amendment
covers all of the shares of Series B Preferred Stock subject to the Warrant.
Holder acknowledges that effective as of the Amendment Date, this Amendment,
together with the Warrant, sets forth the entire understanding between Holder
and the Company regarding the Warrant.

 

20.          This Amendment may
be executed by facsimile signature and multiple counterparts, each of which
shall be considered an original and all of which shall constitute one and the
same instrument, notwithstanding that all parties are not signatures to the
same counterpart.

 

IN
WITNESS WHEREOF, the undersigned have executed this Amendment
effective as of the Amendment Date.

 

 

	
  RELIANT TECHNOLOGIES, INC.

  	
   

  	
  R. ROX ANDERSON

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Thomas J. Scannell

  	
   

  	
  /s/ R. Rox Anderson

  
	
  Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  VP, Finance and CFO

  	
   

  	
  Date:

  	
  December 20, 2006

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  December 29, 2006

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