Document:

Exhibit 10.1

 

RELIANT TECHNOLOGIES, INC.

INDEMNITY AGREEMENT

 

THIS AGREEMENT
is made and entered into this        day of                    2007 by and between RELIANT TECHNOLOGIES,
INC., a Delaware corporation (the “Corporation”),
and                                      (“Agent”).

 

RECITALS

 

WHEREAS, Agent performs a valuable service to
the Corporation in the capacity as a director or officer of the Corporation;

 

WHEREAS, the stockholders of the Corporation
have adopted bylaws (the “Bylaws”)
providing for the indemnification of the directors, officers, employees and
other agents of the Corporation, including persons serving at the request of
the Corporation in such capacities with other corporations or enterprises, as
authorized by the Delaware General Corporation Law, as amended (the “Code”);

 

WHEREAS, the Bylaws and the Code, by their
non-exclusive nature, permit contracts between the Corporation and its agents,
officers, employees and other agents with respect to indemnification of such
persons; and 

 

WHEREAS, in order to induce Agent to continue
to serve as a director or officer of the Corporation, the Corporation has
determined and agreed to enter into this Agreement with Agent;

 

NOW, THEREFORE, in consideration of Agent’s
continued service as a director or officer of the Corporation that began on                         ,
the parties hereto agree as follows:

 

AGREEMENT

 

1.             DEFINITIONS.  

 

(a)           Expenses.  For purposes of this Agreement, the term “Expenses” shall be broadly construed and shall include, without
limitation, all direct and indirect costs of any type or nature whatsoever
(including, without limitation, all attorneys’, witness, or other professional
fees and related disbursements, and other out-of-pocket costs of whatever
nature), actually and reasonably incurred by Agent in connection with the
investigation, defense or appeal of a Proceeding or establishing or enforcing a
right to indemnification under this Agreement, the Code or otherwise and all
judgments, fines or penalties and amounts paid in settlement by or on behalf of
Agent, but shall not include any judgments, fines or penalties actually levied
against Agent for such individual’s violations of law to the extent payment of
such amounts is not permitted by Delaware or other applicable laws.  

 

(b)           Change in
Control.  For purposes of this
Agreement, a “Change in Control” shall be deemed
to have occurred if (i) following the date of registration of the
Company’s securities under the Securities Act of 1933, as amended, any “person”
(as such term 

 

 

is used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934 (the “Act”)), other than a trustee or other
fiduciary holding securities under an employee benefit plan of the Corporation
or a corporation owned directly or indirectly by the stockholders of the
Corporation in substantially the same proportions as their ownership of stock
of the Corporation, becomes the “beneficial owner” (as defined in Rule 13d-3
under said Act), directly or indirectly, of securities of the Corporation representing
more than twenty percent (20%) of the total voting power represented by the
Corporation’s then outstanding Voting Securities; or (ii) there is consummated
a merger, consolidation or similar transaction involving (directly or
indirectly) the Corporation if, immediately after the consummation of such
merger, consolidation or similar transaction, the stockholders of the
Corporation 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.

 

(c)           Independent
Legal Counsel.  For purposes of this
Agreement, “Independent Legal Counsel” shall
mean an attorney or firm of attorneys, selected in accordance with the
provisions of Section 6 hereof, who shall not have otherwise performed services
for the Corporation (or for any entity that now or in the future is controlled
by, controlling or under common control with the Corporation) or Agent within
the last three years (other than with respect to matters concerning the rights
of Agent under this Agreement, or of other indemnitees under similar indemnity
agreements).

 

(d)           Proceeding.  For purposes of this Agreement, the term “Proceeding” shall mean and shall include, without
limitation, any threatened, pending, or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing, whether brought in the right of or by the Corporation or otherwise and
whether of a civil, criminal, administrative or investigative nature, and
whether formal or informal in any case, in which Agent was, is or will be
involved as a party or otherwise by reason of the fact that:  (i) Agent is or was a director, officer,
employee or agent of the Corporation; (ii) Agent took an action while
acting as director, officer, employee or agent of the Corporation; or (iii) Agent
is or was serving at the request of the Corporation as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise, and in any such case described
above, whether or not serving in any such capacity at the time any Expense is
incurred for which indemnification, reimbursement, or advancement of Expenses
may be provided under this Agreement.

 

(e)           Voting
Securities.  For purposes of this
Agreement, “Voting Securities” shall mean any
securities of the Corporation that vote generally in the election of directors.

 

2.             SERVICES TO THE CORPORATION.  Agent will serve, at the will of the Corporation
or under separate contract, if any such contract exists, as a director or
officer of the Corporation or as a director, officer or other fiduciary of an
affiliate of the Corporation (including any employee benefit plan of the
Corporation) faithfully and to the best of Agent’s ability so long as Agent is
duly elected and qualified in accordance with the provisions of the Bylaws or
other applicable charter documents of the Corporation or such affiliate;
provided, however, that Agent may at any time and for any reason resign from
such position (subject to 

 

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any contractual
obligation that Agent may have assumed apart from this Agreement) and that the
Corporation or any affiliate shall have no obligation under this Agreement to
continue Agent in any such position.

 

3.             INDEMNITY OF AGENT.  The Corporation hereby agrees to hold harmless
and indemnify Agent at all times for all actions or omissions occurring during
the term of such Agent’s service as a director or officer of the Corporation or
as a director, officer or other fiduciary of an affiliate of the Corporation to
the fullest extent authorized or permitted by the provisions of the Bylaws and
the Code, as the same may be amended from time to time (but, only to the extent
that such amendment permits the Corporation to provide broader indemnification
rights than the Bylaws or the Code permitted prior to adoption of such
amendment), including with respect to both acts and omissions.  These obligations and the other obligations
of the Corporation in this Agreement apply regardless of whether the conduct or
omission giving rise to the obligations occurred before or occur after the date
this Agreement is executed.  

 

4.             CONTINUATION OF INDEMNITY.  All agreements and obligations of the
Corporation contained herein shall continue during the period Agent is a
director, officer, employee or other agent of the Corporation (or is or was
serving at the request of the Corporation as a director, officer, employee or
other agent of another corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise) and shall continue thereafter so long as
Agent shall be subject to any possible Proceeding by reason of the fact that
Agent was serving as a director or officer of the Corporation.

 

5.             PARTIAL INDEMNIFICATION.  Agent shall be entitled under this Agreement
to indemnification by the Corporation for a portion of the Expenses that Agent
becomes legally obligated to pay in connection with any Proceeding even if not
entitled hereunder to indemnification for the total amount thereof, and the
Corporation shall indemnify Agent for the portion thereof to which Agent is
entitled.

 

6.             CHANGE IN CONTROL.  The Corporation agrees that if there is a
Change in Control of the Corporation then, all rights hereunder shall continue
without change or reduction.  To the
extent that following a Change in Control  the
Corporation concludes that Agent is not entitled to indemnification for a claim
hereunder or under other Indemnification Provisions (as defined below), Agent
shall have the right, at Agent’s option, to submit matters relating to the
determination of the right of Agent to indemnification for such claim (including,
but not limited to, any right to advancement of Expenses) under this Agreement,
any other agreement with the Corporation providing for indemnification, the
Certificate, Bylaws and applicable law (collectively, the “Indemnification Provisions”) as now or
hereafter in effect, to Independent Legal Counsel (as defined in Section 1
hereof) who shall be selected by Agent and approved by the Corporation (which
approval shall not be unreasonably withheld). 
Such Independent Legal Counsel shall render its written opinion to the
Corporation and Agent as to whether and to what extent Agent would be permitted
to be indemnified under the Indemnification Provisions prior to and after the
consummation of such Change in Control and such opinion shall be binding upon
Agent and the Corporation.  The
Corporation agrees to pay the reasonable fees of the Independent Legal Counsel
referred to above and to fully indemnify such counsel against any and all
Expenses arising out of or relating to this Agreement or its engagement
pursuant hereto.

 

3

 

7.             NOTIFICATION AND DEFENSE OF CLAIM.  Not later than thirty (30) days after receipt
by Agent of notice of the commencement of any Proceeding, Agent will, if a
claim in respect thereof is to be made against the Corporation under this Agreement,
notify the Corporation of the commencement thereof; but the omission so to
notify the Corporation will not relieve it from any liability which it may have
to Agent otherwise than under this Agreement. With respect to any such Proceeding
as to which Agent notifies the Corporation of the commencement thereof:

 

(a)           the Corporation
will be entitled to participate therein at its own expense;

 

(b)           except as otherwise
provided below, the Corporation may, at its option and jointly with any other
indemnifying party similarly notified and electing to assume such defense,
assume the defense thereof, with counsel reasonably satisfactory to Agent.
After notice from the Corporation to Agent of its election to assume the
defense thereof, the Corporation will not be liable to Agent under this
Agreement for any Expenses subsequently incurred by Agent in connection with
the defense thereof except for reasonable costs of investigation or otherwise
as provided below.  Agent shall have the
right to employ separate counsel in such Proceeding but the Expenses of such
counsel incurred after notice from the Corporation of its assumption of the
defense thereof shall be at the expense of Agent; provided, however, that the Expenses
of Agent’s separate counsel shall be borne by the Corporation if (i) the
employment of counsel by Agent has been authorized by the Corporation, (ii)
Agent reasonably shall have concluded that there may be a conflict of interest
between the Corporation and Agent in the conduct of the defense of such action
or (iii) the Corporation in fact shall not have employed counsel to assume the
defense of such action. The Corporation shall not be entitled to assume the
defense of any Proceeding brought by or on behalf of the Corporation or as to
which Agent shall have made the conclusion provided for in clause (ii) above;
and 

 

(c)           the Corporation
shall not be liable to indemnify Agent under this Agreement for any amounts
paid in settlement of any action or claim effected without its written consent,
which shall not be unreasonably withheld. 
The Corporation shall be permitted to settle any action except that it
shall not settle any action or claim in any manner which would impose any
penalty or limitation on Agent without Agent’s written consent, which may be
given or withheld in Agent’s sole discretion.

 

8.             EXPENSES.  Promptly
following request therefor, the Corporation shall advance, prior to the final
disposition of any Proceeding, all Expenses incurred by Agent in connection
with such Proceeding.  Through Agent’s execution
of this Agreement, Agent hereby agrees to repay any such amounts advanced for
any matter under this Agreement if it shall ultimately be determined by a final
judicial decision from which there is no further right of appeal that Agent is
not entitled to be indemnified.  Any
advancement by the Corporation hereunder shall be done in express reliance on
the preceding undertaking and the Corporation agrees that no further agreement
or acknowledgement shall be required.

 

9.             ENFORCEMENT.  Any
right to indemnification or advances granted by this Agreement to Agent shall
be enforceable by or on behalf of Agent in any court of competent jurisdiction
if (i) the claim for indemnification or advances is denied, in whole or in
part, or (ii) no disposition of such claim is made within ninety (90) days of
request therefor. Agent, in such 

 

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enforcement action, if
successful in whole or in part, also shall be entitled to be paid the expense
of prosecuting Agent’s claim. Neither the failure of the Corporation (including
its Board of Directors or its stockholders) to have made a determination prior
to the commencement of such enforcement action that indemnification of Agent is
proper in the circumstances, nor an actual determination by the Corporation
(including its Board of Directors or its stockholders) that such
indemnification is improper shall be a defense to the action or create a
presumption that Agent is not entitled to indemnification under this Agreement
or otherwise.

 

10.          SUBROGATION.  In
the event of payment under this Agreement, the Corporation shall be subrogated
to the extent of such payment to all of the rights of recovery of Agent, who
shall execute all documents required and shall do all acts that may be
necessary to secure such rights and to enable the Corporation effectively to
bring suit to enforce such rights.

 

11.          NON-EXCLUSIVITY OF RIGHTS.  The rights conferred on Agent by this
Agreement shall not be exclusive of any other right Agent may have or hereafter
acquire under any statute, provision of the Corporation’s Certificate of
Incorporation or Bylaws, agreement, vote of stockholders or directors, or
otherwise, both as to action in Agent’s official capacity and as to action in
another capacity while holding office.

 

12.          SURVIVAL OF RIGHTS.  

 

(a)           The rights
conferred on Agent by this Agreement shall continue after Agent has ceased to
be a director, officer, employee or other agent of the Corporation or to serve
at the request of the Corporation as a director, officer, employee or other
agent of another corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise and shall inure to the benefit of Agent’s
heirs, executors and administrators.

 

(b)           The Corporation
shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Corporation, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Corporation would
be required to perform if no such succession had taken place.

 

13.          SEPARABILITY.  Each
of the provisions of this Agreement is a separate and distinct agreement and
independent of the others, so that if any provision hereof shall be held to be
invalid for any reason, such invalidity or unenforceability shall not affect
the validity or enforceability of the other provisions hereof. Furthermore, if
this Agreement shall be invalidated in its entirety on any ground, then the Corporation
shall nevertheless indemnify Agent to the fullest extent provided by the
Bylaws, the Code or any other applicable law.

 

14.          GOVERNING LAW.  This Agreement shall be interpreted and
enforced in accordance with the laws of the State of Delaware.

 

15.          AMENDMENT AND TERMINATION.  No amendment, modification, termination or
cancellation of this Agreement shall be effective unless in writing signed by
both parties hereto.

 

5

 

16.          IDENTICAL COUNTERPARTS.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed for all purposes to be an original
but all of which together shall constitute this Agreement.

 

17.          HEADINGS.  The
headings of the sections of this Agreement are inserted for convenience only
and shall not be deemed to constitute part of this Agreement or to affect the
construction hereof.

 

18.          NOTICES.  All
notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given (i) upon delivery if
delivered by hand to the party to whom such communication was directed or (ii)
upon the third business day after the date on which such communication was
mailed if mailed by certified or registered mail with postage prepaid:

 

(a)           If to Agent, at the
address indicated on the signature page hereof.

 

(b)           If to the
Corporation, to

 

Reliant
Technologies, Inc.

464 Ellis
Street

Mountain View,
CA 94043

 

or to such other address as may
have been furnished to Agent by the Corporation, or to such other address as
the Agent may direct in writing the Corporation to use.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement on and as of the day and year
first above written.

 

	RELIANT TECHNOLOGIES, INC.

	 

	By:
	 
	 

	 

	Title:
	 
	 

	 

	 

	AGENT

	 

	 
	 

	(Signature)

	 

	Agent Name and Address:

	 

	 
	 

	 

	 
	 

	 
	 

	 
	 

					

 

6Exhibit
10.2

 

RELIANT
TECHNOLOGIES, INC.

 

2003
EQUITY INCENTIVE PLAN

 

ORIGINALLY
ADOPTED DECEMBER 6, 2001 AS THE

RELIANT
TECHNOLOGIES, INC.

2001
NON-STATUTORY STOCK OPTION PLAN

AMENDED
AND RESTATED:  APRIL 28, 2003

APPROVED
BY STOCKHOLDERS:  APRIL 29, 2003

FURTHER
AMENDED ON NOVEMBER 11, 2004,  MAY 12,
2005,

FEBRUARY
18, 2006, OCTOBER 2, 2006 AND FEBRUARY 8, 2007

TERMINATION
DATE:  APRIL 28, 2013

 

1.                                      PURPOSES.

 

(a)                                  Amendment
and Restatement. The Plan is adopted to amend and restate the Reliant
Technologies, 2001 Non-Statutory Stock Option Plan, adopted December 6, 2001
(the “Original Plan”). All outstanding
options and shares granted before the adoption of the Plan shall cease to be
governed by the terms of the Original Plan, and shall be governed by the terms
of the Plan. All options and shares granted after the date of the Plan’s
amendment and restatement shall be governed by the terms contained herein.

 

(b)                                  Eligible
Stock Award Recipients. The persons eligible to receive Stock Awards are
Employees, Directors and Consultants.

 

(c)                                  Available
Stock Awards. The purpose of the Plan is to provide a means by which
eligible recipients of Stock Awards may be given an opportunity to benefit from
increases in value of the Common Stock through the granting of the following
Stock Awards:  (i) Incentive Stock
Options, (ii) Nonstatutory Stock Options, (iii) stock bonuses and (iv) rights
to acquire restricted stock.

 

(d)                                  General
Purpose. The Company, by means of the Plan, seeks to retain the services of
the group of persons eligible to receive Stock Awards, to secure and retain the
services of new members of this group and to provide incentives for such
persons to exert maximum efforts for the success of the Company and its
Affiliates.

 

2.                                      DEFINITIONS.

 

(a)                                  “Affiliate” means any parent corporation or subsidiary
corporation of the Company, whether now or hereafter existing, as those terms
are defined in Sections 424(e) and (f), respectively, of the Code.

 

(b)                                  “Board” means the Board of Directors of the Company.

 

1

 

(c)                                  “Capitalization Adjustment” has the meaning ascribed to
that term in Section 11(a).

 

(d)                                  “Cause”
means, with respect to a Participant, the occurrence of any one or more of the
following:  (i) the Participant’s commission
of any crime involving fraud, dishonesty or moral turpitude; (ii) the
Participant’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) the
Participant’s intentional, material violation of any contract or agreement
between the Participant and the Company or any statutory duty owed to the
Company; or (iv) conduct by the Participant that constitutes gross insubordination,
incompetence or habitual neglect of duties and that results in (or might have
reasonably resulted in) material harm to the business of the Company; provided,
however, that the action or conduct described in clauses (iii) and (iv) above
will constitute “Cause” only if such action or conduct continues after the
Company has provided the Participant with written notice thereof and thirty
(30) days to cure the same. Notwithstanding the foregoing, such Participant’s
death or Disability shall not constitute Cause as set forth herein. The
determination that a termination is for Cause shall be by the Board or
Committee, as applicable, in its sole and exclusive judgment and discretion.

 

(e)                                  “Change in 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
Exchange Act Person 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 Exchange Act Person that acquires the Company’s
securities in a transaction or series of related transactions that are
primarily a private financing transaction for the Company or (B) solely because
the level of Ownership held by any Exchange Act Person (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

 

2

 

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.

 

Notwithstanding
the foregoing or any other provision of this Plan, the definition of Change in
Control (or any analogous term) in an individual written agreement between the
Company or any Affiliate and the Participant shall supersede the foregoing
definition with respect to Stock Awards subject to such agreement (it being
understood, however, that if no definition of Change in Control or any
analogous term is set forth in such an individual written agreement, the
foregoing definition shall apply).

 

(f)                                    “Code” means the Internal Revenue Code of 1986, as
amended.

 

(g)                                 “Committee” means a committee of one or more members of
the Board appointed by the Board in accordance with Section 3(c).

 

(h)                                 “Common Stock” means the common stock of the Company.

 

(i)                                    “Company” means Reliant
Technologies, Inc., a Delaware corporation.

 

(j)                                    “Consultant” means any person, including an advisor, (i)
engaged by the Company or an Affiliate to render consulting or advisory
services and who is compensated for such services or (ii) serving as a member
of the Board of Directors of an Affiliate and who is compensated for such
services. However, the term “Consultant” shall not include Directors who are
not compensated by the Company for their services as Directors, and the payment
of a director’s fee by the Company for services as a Director shall not cause a
Director to be considered a “Consultant” for purposes of the Plan.

 

(k)                                “Continuous Service” means that the Participant’s
service with the Company or an Affiliate, whether as an Employee, Director or
Consultant, is not interrupted or terminated. A change in the capacity in which
the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Participant
renders such service, provided that there is no interruption or termination of
the Participant’s service with the Company or an Affiliate, shall not terminate
a Participant’s Continuous Service. For example, a change in status from an employee
of the Company to a consultant to an Affiliate or to a Director shall not
constitute an interruption of Continuous Service. The Board or the chief
executive officer

 

3

 

of the Company, in that party’s sole discretion, may determine whether
Continuous Service shall be considered interrupted in the case of any leave of
absence approved by that party, including sick leave, military leave or any
other personal leave. Notwithstanding the foregoing, a leave of absence shall
be treated as Continuous Service for purposes of vesting in a Stock Award only
to such extent as may be provided in the Company’s leave of absence policy or
in the written terms of the Participant’s leave of absence.

 

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

 

(i)                                    a
sale  or other disposition of all or
substantially all, as determined by the Board in its discretion, of the consolidated
assets of the Company and its Subsidiaries;

 

(ii)                                a
sale or other disposition of at least ninety percent (90%) of the outstanding
securities of the Company;

 

(iii)                            a
merger, consolidation or similar transaction following which the Company is not
the surviving corporation; or

 

(iv)                               a
merger, consolidation or similar transaction following which the Company is the
surviving corporation but the shares of Common Stock outstanding immediately
preceding the merger, consolidation or similar transaction are converted or
exchanged by virtue of the merger, consolidation or similar transaction into
other property, whether in the form of securities, cash or otherwise.

 

(m)                              “Director” means a member of the Board.

 

(n)                                 “Disability” means the inability of a person, in the
opinion of a qualified physician acceptable to the Company, to perform the
major duties of that person’s position with the Company or an Affiliate because
of the sickness or injury of the person.

 

(o)                                  “Employee” means any person employed by the Company or
an Affiliate. Service as a Director or payment of a director’s fee by the
Company for such service or for service as a member of the Board of Directors
of an Affiliate shall not be sufficient to constitute “employment” by the
Company or an Affiliate.

 

(p)                                  “Entity” means a corporation, partnership or other
entity.

 

(q)                                  “Exchange Act” means the Securities Exchange Act of
1934, as amended.

 

(r)                                  “Exchange Act Person” means any natural person, Entity
or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act),
except that “Exchange Act Person” shall not include (A) the Company or any
Subsidiary of the Company, (B) any employee benefit plan of the Company or any
Subsidiary of the Company or any trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any Subsidiary of the Company,
(C) an underwriter temporarily holding securities pursuant to an offering of
such securities, or (D) an

 

4

 

Entity Owned, directly or indirectly, by the stockholders of the
Company in substantially the same proportions as their Ownership of stock of
the Company.

 

(s)                                  “Fair Market Value” means, as of any date, the value of
the Common Stock determined in good faith by the Board, and in a manner
consistent with Section 260.140.50 of Title 10 of the California Code of
Regulations.

 

(t)                                    “Incentive Stock Option” means an Option intended to
qualify as an incentive stock option within the meaning of Section 422 of
the Code and the regulations promulgated thereunder.

 

(u)                                 “Nonstatutory Stock Option” means an Option not intended
to qualify as an Incentive Stock Option.

 

(v)                                   “Officer” means any person designated by the Company as
an officer.

 

(w)                                “Option” means an Incentive Stock Option or a Nonstatutory
Stock Option granted pursuant to the Plan.

 

(x)                                  “Option Agreement” means a written agreement between the
Company and an Optionholder evidencing the terms and conditions of an
individual Option grant. Each Option Agreement shall be subject to the terms
and conditions of the Plan.

 

(y)                                  “Optionholder” means a person to whom an Option is
granted pursuant to the Plan or, if applicable, such other person who holds an
outstanding Option.

 

(z)                                  “Own,” “Owned,” “Owner,” “Ownership”  A person or Entity
shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have
acquired “Ownership” of securities if such person or Entity, directly or
indirectly, through any contract, arrangement, understanding, relationship or
otherwise, has or shares voting power, which includes the power to vote or to
direct the voting, with respect to such securities.

 

(aa)                            “Participant” means a person to whom a Stock Award is
granted pursuant to the Plan or, if applicable, such other person who holds an
outstanding Stock Award.

 

(bb)                            “Plan” means this Reliant Technologies, Inc. 2003 Equity
Incentive Plan.

 

(cc)                            “Securities Act” means the Securities Act of 1933, as
amended.

 

(dd)                            “Stock Award” means any right granted under the Plan,
including an Option, a stock bonus and a right to acquire restricted stock.

 

(ee)                            “Stock Award Agreement” means a written agreement
between the Company and a holder of a Stock Award evidencing the terms and
conditions of an individual Stock Award grant. Each Stock Award Agreement shall
be subject to the terms and conditions of the Plan.

 

5

 

(ff)                                “Subsidiary” means, with respect to the Company, (i) any
corporation of which more than fifty percent (50%) of the outstanding capital
stock having ordinary voting power to elect a majority of the board of
directors of such corporation (irrespective of whether, at the time, stock of
any other class or classes of such corporation shall have or might have voting
power by reason of the happening of any contingency) is at the time, directly
or indirectly, Owned by the Company, and (ii) any partnership in which the
Company has a direct or indirect interest (whether in the form of voting or
participation in profits or capital contribution) of more than fifty percent (50%).

 

(gg)                          “Ten Percent Stockholder” means a person who Owns (or is
deemed to Own pursuant to Section 424(d) of the Code) stock possessing more
than ten percent (10%) of the total combined voting power of all classes of
stock of the Company or of any of its Affiliates.

 

3.                                      ADMINISTRATION.

 

(a)                                  Administration
by Board. The Board shall administer the Plan unless and until the Board
delegates administration to a Committee, as provided in Section 3(c).

 

(b)                                  Powers
of Board. The Board shall have the power, subject to, and within the
limitations of, the express provisions of the Plan:

 

(i)                                    To
determine from time to time which of the persons eligible under the Plan shall
be granted Stock Awards; when and how each Stock Award shall be granted; what
type or combination of types of Stock Award shall be granted; the provisions of
each Stock Award granted (which need not be identical), including the time or
times when a person shall be permitted to receive Common Stock pursuant to a
Stock Award; and the number of shares of Common Stock with respect to which a
Stock Award shall be granted to each such person.

 

(ii)                                To
construe and interpret the Plan and Stock Awards granted under it, and to
establish, amend and revoke rules and regulations for its administration. The
Board, in the exercise of this power, may correct any defect, omission or
inconsistency in the Plan or in any Stock Award Agreement, in a manner and to
the extent it shall deem necessary or expedient to make the Plan fully
effective.

 

(iii)                            To
amend the Plan or a Stock Award as provided in Section 12.

 

(iv)                               To
terminate or suspend the Plan as provided in Section 13.

 

(v)                                   Generally,
to exercise such powers and to perform such acts as the Board deems necessary
or expedient to promote the best interests of the Company and that are not in
conflict with the provisions of the Plan.

 

(c)                                  Delegation
to Committee. The Board may delegate administration of the Plan to a
Committee or Committees of one (1) or more members of the Board, and the term “Committee”
shall apply to any person or persons to whom such authority has been delegated.
If administration is delegated to a Committee, the Committee shall have, in
connection with the administration of

 

6

 

the Plan, the powers theretofore possessed by the Board, including the
power to delegate to a subcommittee any of the administrative powers the
Committee is authorized to exercise (and references in this Plan to the Board
shall thereafter be to the Committee or subcommittee), subject, however, to
such resolutions, not inconsistent with the provisions of the Plan, as may be
adopted from time to time by the Board. The Board may abolish the Committee at
any time and revest in the Board the administration of the Plan.

 

(d)                                  Effect of Board’s Decision. All determinations, interpretations and
constructions made by the Board in good faith shall not be subject to review by
any person and shall be final, binding and conclusive on all persons.

 

(e)                                  Arbitration. Any
dispute or claim concerning any Stock Awards granted (or not granted) pursuant
to the Plan or any disputes or claims relating to or arising out of the Plan
shall be fully, finally and exclusively resolved by binding and confidential
arbitration conducted pursuant to the rules
of Judicial Arbitration and Mediation Services, Inc. (“JAMS”) in San
Diego County, California. The Company shall pay all arbitration fees. In
addition to any other relief, the arbitrator may award to the prevailing party
recovery of its attorneys’ fees and costs. By accepting a Stock Award,
Participants and the Company waive their respective rights to have any such
disputes or claims tried by a judge or jury.

 

4.                                      SHARES
SUBJECT TO THE PLAN.

 

(a)                                  Share
Reserve. Subject to the provisions of Section 11(a) relating to
Capitalization Adjustments, the Common Stock that may be issued pursuant to
Stock Awards  shall not exceed in the aggregate Ten
Million Four Hundred Seventy Eight Thousand Eight Hundred Forty Eight (10,478,848) shares of Common Stock.

 

(b)                                  Reversion
of Shares to the Share Reserve. If any Stock Award shall for any reason
expire or otherwise terminate, in whole or in part, without having been
exercised in full, the shares of Common Stock not acquired under such Stock
Award shall revert to and again become available for issuance under the Plan.

 

(c)                                  Source
of Shares. The shares of Common Stock subject to the Plan may be unissued
shares or reacquired shares, bought on the market or otherwise.

 

(d)                                  Share
Reserve Limitation. To the extent required by Section 260.140.45 of Title
10 of the California Code of Regulations, the total number of shares of Common
Stock issuable upon exercise of all outstanding Options and the total number of
shares of Common Stock provided for under any stock bonus or similar plan of the
Company shall not exceed the applicable percentage as calculated in accordance
with the conditions and exclusions of Section 260.140.45 of Title 10 of the
California Code of Regulations, based on the shares of Common Stock of the
Company that are outstanding at the time the calculation is made.

 

7

 

5.                                      ELIGIBILITY.

 

(a)                                  Eligibility
for Specific Stock Awards. Incentive Stock Options may be granted only to
Employees. Stock Awards other than Incentive Stock Options may be granted to
Employees, Directors and Consultants.

 

(b)                                  Ten
Percent Stockholders.

 

(i)                                    A
Ten Percent Stockholder shall not be granted an Incentive Stock Option unless
the exercise price of such Option is at least one hundred ten percent (110%) of
the Fair Market Value of the Common Stock on the date of grant and the Option
is not exercisable after the expiration of five (5) years from the date of
grant.

 

(ii)                                A
Ten Percent Stockholder shall not be granted a Nonstatutory Stock Option unless
the exercise price of such Option is at least (i) one hundred ten percent
(110%) of the Fair Market Value of the Common Stock on the date of grant or
(ii) such lower percentage of the Fair Market Value of the Common Stock on the
date of grant as is permitted by Section 260.140.41 of Title 10 of the
California Code of Regulations at the time of the grant of the Option.

 

(iii)                            A
Ten Percent Stockholder shall not be granted a restricted stock award unless
the purchase price of the restricted stock is at least (i) one hundred percent
(100%) of the Fair Market Value of the Common Stock on the date of grant or
(ii) such lower percentage of the Fair Market Value of the Common Stock on the
date of grant as is permitted by Section 260.140.42 of Title 10 of the
California Code of Regulations at the time of the grant of the restricted stock
award.

 

(c)                                  Consultants.
A Consultant shall not be eligible for the grant of a Stock Award if, at
the time of grant, either the offer or the sale of the Company’s securities to
such Consultant is not exempt under Rule 701 of the Securities Act (“Rule 701”)
because of the nature of the services that the Consultant is providing to the
Company, because the Consultant is not a natural person, or because of some
other provision of Rule 701, unless the Company determines that such grant need
not comply with the requirements of Rule 701 and will satisfy another exemption
under the Securities Act as well as comply with the securities laws of all
other relevant jurisdictions.

 

6.                                      OPTION
PROVISIONS.

 

Each Option shall be in such form and shall contain
such terms and conditions as the Board shall deem appropriate. All Options
shall be separately designated Incentive Stock Options or Nonstatutory Stock
Options at the time of grant, and, if certificates are issued, a separate
certificate or certificates shall be issued for shares of Common Stock
purchased on exercise of each type of Option. The provisions of separate
Options need not be identical, but each Option shall include (through
incorporation of provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:

 

8

 

(a)                                  Term.
Subject to the provisions of Section 5(b) regarding Ten Percent
Stockholders, no Option shall be exercisable after the expiration of ten (10)
years from the date it was granted.

 

(b)                                  Exercise
Price of an Incentive Stock Option. Subject to the provisions of Section
5(b) regarding Ten Percent Stockholders, the exercise price of each Incentive
Stock Option shall be not less than one hundred percent (100%) of the Fair
Market Value of the Common Stock subject to the Option on the date the Option
is granted. Notwithstanding the foregoing, an Incentive Stock Option may be
granted with an exercise price lower than that set forth in the preceding
sentence if such Option is granted pursuant to an assumption or substitution
for another option in a manner satisfying the provisions of Section 424(a) of
the Code.

 

(c)                                  Exercise
Price of a Nonstatutory Stock Option. Subject to the provisions of Section
5(b) regarding Ten Percent Stockholders, the exercise price of each
Nonstatutory Stock Option shall be not less than eighty-five percent (85%) of
the Fair Market Value of the Common Stock subject to the Option on the date the
Option is granted. Notwithstanding the foregoing, a Nonstatutory Stock Option
may be granted with an exercise price lower than that set forth in the
preceding sentence if such Option is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of
Section 424(a) of the Code.

 

(d)                                  Consideration.
The purchase price of Common Stock acquired pursuant to an Option shall be
paid, to the extent permitted by applicable statutes and regulations, either
(i) in cash at the time the Option is exercised or (ii) at the discretion of
the Board at the time of the grant of the Option (or subsequently in the case
of a Nonstatutory Stock Option) (1) by delivery to the Company of other Common
Stock, (2) according to a deferred payment or other similar arrangement with
the Optionholder or (3) in any other form of legal consideration that may be
acceptable to the Board. Unless otherwise specifically provided in the Option,
the purchase price of Common Stock acquired pursuant to an Option that is paid
by delivery to the Company of other Common Stock acquired, directly or
indirectly from the Company, shall be paid only by shares of the Common Stock
of the Company that have been held for more than six (6) months (or such longer
or shorter period of time required to avoid a charge to earnings for financial
accounting purposes). At any time that the Company is incorporated in Delaware,
payment of the Common Stock’s “par value,” as defined in the Delaware General
Corporation Law, shall not be made by deferred payment.

 

In the case of any deferred payment arrangement,
interest shall be compounded at least annually and shall be charged at the
minimum rate of interest necessary to avoid (1) the treatment as interest,
under any applicable provisions of the Code, of any amounts other than amounts
stated to be interest under the deferred payment arrangement and (2) the
treatment of the Option as a variable award for financial accounting purposes.

 

(e)                                  Transferability
of an Incentive Stock Option. An Incentive Stock Option shall not be
transferable except by will or by the laws of descent and distribution and
shall be exercisable during the lifetime of the Optionholder only by the
Optionholder. Notwithstanding the foregoing, the Optionholder may, by
delivering written notice to the Company, in a form

 

9

 

satisfactory to the Company, designate a third party who, in the event
of the death of the Optionholder, shall thereafter be entitled to exercise the
Option.

 

(f)                                    Transferability
of a Nonstatutory Stock Option. A Nonstatutory Stock Option shall not be
transferable except by will or by the laws of descent and distribution and, to
the extent provided in the Option Agreement, to such further extent as
permitted by Section 260.140.41(d) of Title 10 of the California Code of
Regulations at the time of the grant of the Option, and shall be exercisable
during the lifetime of the Optionholder only by the Optionholder. If the
Nonstatutory Stock Option does not provide for transferability, then the
Nonstatutory Stock Option shall not be transferable except by will or by the
laws of descent and distribution and shall be exercisable during the lifetime
of the Optionholder only by the Optionholder. Notwithstanding the foregoing,
the Optionholder may, by delivering written notice to the Company, in a form
satisfactory to the Company, designate a third party who, in the event of the
death of the Optionholder, shall thereafter be entitled to exercise the Option.

 

(g)                                 Vesting
Generally. The total number of shares of Common Stock subject to an Option
may, but need not, vest and therefore become exercisable in periodic
installments that may, but need not, be equal. The Option may be subject to
such other terms and conditions on the time or times when it may be exercised
(which may be based on performance or other criteria) as the Board may deem
appropriate. The vesting provisions of individual Options may vary. The
provisions of this Section 6(g) are subject to any Option provisions governing
the minimum number of shares of Common Stock as to which an Option may be
exercised.

 

(h)                                 Minimum
Vesting. Notwithstanding the foregoing Section 6(g), to the extent that the
following restrictions on vesting are required by Section 260.140.41(f) of
Title 10 of the California Code of Regulations at the time of the grant of the
Option, then:

 

(i)                                    Options
granted to an Employee who is not an Officer, Director or Consultant shall
provide for vesting of the total number of shares of Common Stock at a rate of
at least twenty percent (20%) per year over five (5) years from the date the
Option was granted, subject to reasonable conditions such as continued
employment;  and

 

(ii)                                Options
granted to Officers, Directors or Consultants may be made fully exercisable,
subject to reasonable conditions such as continued employment, at any time or
during any period established by the Company.

 

(i)                                    Termination
of Continuous Service. In the event that an Optionholder’s Continuous
Service terminates (other than for Cause or upon the Optionholder’s death or
Disability), the Optionholder may exercise his or her Option (to the extent
that the Optionholder was entitled to exercise such Option as of the date of
termination) but only within such period of time ending on the earlier of (i)
the date three (3) months following the termination of the Optionholder’s
Continuous Service (or such longer or shorter period specified in the Option
Agreement, which period shall not be less than thirty (30) days unless such termination
is for cause), or (ii) the expiration of the term of the Option as set forth in
the Option Agreement. If, after termination, the Optionholder does not exercise
his or her Option within the time specified in the Option Agreement, the Option
shall terminate.

 

10

 

(j)                                    Extension
of Termination Date. An Optionholder’s Option Agreement may also provide
that if the exercise of the Option following the termination of the
Optionholder’s Continuous Service (other than for Cause or upon the
Optionholder’s death or Disability) would be prohibited at any time solely
because the issuance of shares of Common Stock would violate the registration
requirements under the Securities Act, then the Option shall terminate on the
earlier of (i) the expiration of the term of the Option set forth in Section
6(a) or (ii) the expiration of a period of three (3) months after the
termination of the Optionholder’s Continuous Service during which the exercise
of the Option would not be in violation of such registration requirements.

 

(k)                                Disability
of Optionholder. In the event that an Optionholder’s Continuous Service
terminates as a result of the Optionholder’s Disability, the Optionholder may
exercise his or her Option (to the extent that the Optionholder was entitled to
exercise such Option as of the date of termination), but only within such
period of time ending on the earlier of (i) the date twelve (12) months
following such termination (or such longer or shorter period specified in the
Option Agreement, which period shall not be less than six (6) months) or (ii)
the expiration of the term of the Option as set forth in the Option Agreement. If,
after termination, the Optionholder does not exercise his or her Option within
the time specified herein, the Option shall terminate.

 

(l)                                    Death
of Optionholder. In the event that (i) an Optionholder’s Continuous Service
terminates as a result of the Optionholder’s death or (ii) the Optionholder
dies within the period (if any) specified in the Option Agreement after the
termination of the Optionholder’s Continuous Service for a reason other than
death, then the Option may be exercised (to the extent the Optionholder was
entitled to exercise such Option as of the date of death) by the Optionholder’s
estate, by a person who acquired the right to exercise the Option by bequest or
inheritance or by a person designated to exercise the option upon the
Optionholder’s death pursuant to Section 6(e) or 6(f), but only within the
period ending on the earlier of (1) the date eighteen (18) months following the
date of death (or such longer or shorter period specified in the Option
Agreement, which period shall not be less than six (6) months) or (2) the
expiration of the term of such Option as set forth in the Option Agreement. If,
after death, the Option is not exercised within the time specified herein, the
Option shall terminate.

 

(m)                              Termination for Cause. In the
event that an Optionholder’s Continuous Service is terminated for Cause, then
such Optionholder’s Options shall immediately terminate and shall not be
exercisable by such Optionholder.

 

(n)                                 Early
Exercise. The Option may, but need not, include a provision whereby the
Optionholder may elect at any time before the Optionholder’s Continuous Service
terminates to exercise the Option as to any part or all of the shares of Common
Stock subject to the Option prior to the full vesting of the Option. Subject to
the “Repurchase Limitation” in Section 10(h), any unvested shares of Common
Stock so purchased may be subject to a repurchase option in favor of the
Company or to any other restriction the Board determines to be appropriate. Provided
that the “Repurchase Limitation” in Section 10(h) is not violated, the Company
will not exercise its repurchase option until at least six (6) months (or such
longer or shorter period of time required to avoid a charge to earnings for
financial accounting purposes) have elapsed following exercise of the Option
unless the Board otherwise specifically provides in the Option.

 

11

 

(o)                                  Right
of Repurchase. Subject to the “Repurchase Limitation” in Section 10(h), the
Option may, but need not, include a provision whereby the Company may elect to
repurchase all or any part of the vested shares of Common Stock acquired by the
Optionholder pursuant to the exercise of the Option. Provided that the “Repurchase
Limitation” in Section 10(h) is not violated, the Company will not exercise its
repurchase option until at least six (6) months (or such longer or shorter
period of time required to avoid a charge to earnings for financial accounting
purposes) have elapsed following exercise of the Option unless otherwise
specifically provided in the Option.

 

(p)                                  Right
of First Refusal. The Option may, but need not, include a provision whereby
the Company may elect to exercise a right of first refusal following receipt of
notice from the Optionholder of the intent to transfer all or any part of the
shares of Common Stock received upon the exercise of the Option. Except as
expressly provided in this Section 6(o) or in the Stock Award Agreement for the
Option, such right of first refusal shall otherwise comply with any applicable
provisions of the Bylaws of the Company. The Company will not exercise its
right of first refusal until at least six (6) months (or such longer or shorter
period of time required to avoid a charge to earnings for financial accounting
purposes) have elapsed following the exercise of the Option unless otherwise
specifically provided in the Option.

 

7.                                      PROVISIONS
OF STOCK AWARDS OTHER THAN OPTIONS.

 

(a)                                  Stock
Bonus Awards. Each stock bonus agreement shall be in such form and shall
contain such terms and conditions as the Board shall deem appropriate. The
terms and conditions of stock bonus agreements may change from time to time,
and the terms and conditions of separate stock bonus agreements need not be
identical, but each stock bonus agreement shall include (through incorporation
of provisions hereof by reference in the agreement or otherwise) the substance
of each of the following provisions:

 

(i)                                    Consideration.
A stock bonus may be awarded in consideration for past services actually
rendered to the Company or an Affiliate for its benefit.

 

(ii)                                Vesting.
Subject to the “Repurchase Limitation” in Section 10(h), shares of Common
Stock awarded under the stock bonus agreement may, but need not, be subject to
a share repurchase option in favor of the Company in accordance with a vesting
schedule to be determined by the Board.

 

(iii)                            Termination
of Participant’s Continuous Service. Subject to the “Repurchase Limitation”
in Section 10(h), in the event that a Participant’s Continuous Service
terminates, the Company may reacquire any or all of the shares of Common Stock
held by the Participant that have not vested as of the date of termination
under the terms of the stock bonus agreement. Provided that the “Repurchase
Limitation” in Section 10(h) is not violated, the Company will not exercise its
repurchase option until at least six (6) months (or such longer or shorter
period of time required to avoid a charge to earnings for financial accounting
purposes) have elapsed following receipt of the stock bonus unless otherwise
specifically provided in the stock bonus agreement.

 

12

 

(iv)                               Transferability.
Rights to acquire shares of Common Stock under the stock bonus agreement
shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Participant
only by the Participant.

 

(b)                                  Restricted
Stock Awards. Each restricted stock purchase agreement shall be in such
form and shall contain such terms and conditions as the Board shall deem
appropriate. The terms and conditions of the restricted stock purchase
agreements may change from time to time, and the terms and conditions of
separate restricted stock purchase agreements need not be identical, but each
restricted stock purchase agreement shall include (through incorporation of
provisions hereof by reference in the agreement or otherwise) the substance of
each of the following provisions:

 

(i)                                    Purchase
Price. Subject to the provisions of Section 5(b) regarding Ten Percent
Stockholders, the purchase price of restricted stock awards shall not be less
than eighty-five percent (85%) of the Common Stock’s Fair Market Value on the
date such award is made or at the time the purchase is consummated.

 

(ii)                                Consideration.
The purchase price of Common Stock acquired pursuant to the restricted stock
purchase agreement shall be paid either: (i) in cash at the time of purchase;
(ii) at the discretion of the Board, according to a deferred payment or other
similar arrangement with the Participant; or (iii) in any other form of legal
consideration that may be acceptable to the Board in its discretion; provided, however, that at any time that the Company is
incorporated in Delaware, then payment of the Common Stock’s “par value,” as
defined in the Delaware General Corporation Law, shall not be made by deferred
payment.

 

(iii)                            Vesting.
Subject to the “Repurchase Limitation” in Section 10(h), shares of Common
Stock acquired under the restricted stock purchase agreement may, but need not,
be subject to a share repurchase option in favor of the Company in accordance
with a vesting schedule to be determined by the Board.

 

(iv)                               Termination
of Participant’s Continuous Service. Subject to the “Repurchase Limitation”
in Section 10(h), in the event that a Participant’s Continuous Service
terminates, the Company may repurchase or otherwise reacquire any or all of the
shares of Common Stock held by the Participant that have not vested as of the
date of termination under the terms of the restricted stock purchase agreement.
Provided that the “Repurchase Limitation” in Section 10(h) is not violated, the
Company will not exercise its repurchase option until at least six (6) months
(or such longer or shorter period of time required to avoid a charge to
earnings for financial accounting purposes) have elapsed following the purchase
of the restricted stock unless otherwise specifically provided in the
restricted stock purchase agreement.

 

(v)                                   Transferability.
Rights to acquire shares of Common Stock under the restricted stock
purchase agreement shall not be transferable except by will or by the laws of
descent and distribution and shall be exercisable during the lifetime of the
Participant only by the Participant.

 

13

 

8.                                      COVENANTS
OF THE COMPANY.

 

(a)                                  Availability
of Shares. During the terms of the Stock Awards, the Company shall keep
available at all times the number of shares of Common Stock required to satisfy
such Stock Awards.

 

(b)                                  Securities
Law Compliance. The Company shall seek to obtain from each regulatory
commission or agency having jurisdiction over the Plan such authority as may be
required to grant Stock Awards and to issue and sell shares of Common Stock
upon exercise of the Stock Awards; provided, however,
that this undertaking shall not require the Company to register under the
Securities Act the Plan, any Stock Award or any Common Stock issued or issuable
pursuant to any such Stock Award. If, after reasonable efforts, the Company is
unable to obtain from any such regulatory commission or agency the authority
which counsel for the Company deems necessary for the lawful issuance and sale
of Common Stock under the Plan, the Company shall be relieved from any
liability for failure to issue and sell Common Stock upon exercise of such
Stock Awards unless and until such authority is obtained.

 

9.                                      USE
OF PROCEEDS FROM STOCK.

 

Proceeds from the sale of Common Stock pursuant to
Stock Awards shall constitute general funds of the Company.

 

10.                               MISCELLANEOUS.

 

(a)                                  Acceleration
of Exercisability and Vesting. The Board shall have the power to accelerate
the time at which a Stock Award may first be exercised or the time during which
a Stock Award or any part thereof will vest in accordance with the Plan,
notwithstanding the provisions in the Stock Award stating the time at which it
may first be exercised or the time during which it will vest.

 

(b)                                  Stockholder
Rights. No Participant shall be deemed to be the holder of, or to have any
of the rights of a holder with respect to, any shares of Common Stock subject
to such Stock Award unless and until such Participant has satisfied all
requirements for exercise of the Stock Award pursuant to its terms.

 

(c)                                  No
Employment or other Service Rights. Nothing in the Plan or any instrument
executed or Stock Award granted pursuant thereto shall confer upon any
Participant any right to continue to serve the Company or an Affiliate in the
capacity in effect at the time the Stock Award was granted or shall affect the
right of the Company or an Affiliate to terminate (i) the employment of an
Employee with or without notice and with or without cause, (ii) the service of
a Consultant pursuant to the terms of such Consultant’s agreement with the
Company or an Affiliate or (iii) the service of a Director pursuant to the
Bylaws of the Company or an Affiliate, and any applicable provisions of the
corporate law of the state in which the Company or the Affiliate is
incorporated, as the case may be.

 

14

 

(d)                                  Incentive
Stock Option $100,000 Limitation. To the extent that the aggregate Fair
Market Value (determined at the time of grant) of Common Stock with respect to
which Incentive Stock Options are exercisable for the first time by any
Optionholder during any calendar year (under all plans of the Company and its
Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or
portions thereof that exceed such limit (according to the order in which they
were granted) shall be treated as Nonstatutory Stock Options, notwithstanding
any contrary provision of a Stock Award Agreement.

 

(e)                                  Investment
Assurances. The Company may require a Participant, as a condition of
exercising or acquiring Common Stock under any Stock Award, (i) to give written
assurances satisfactory to the Company as to the Participant’s knowledge and
experience in financial and business matters and/or to employ a purchaser
representative reasonably satisfactory to the Company who is knowledgeable and
experienced in financial and business matters and that he or she is capable of
evaluating, alone or together with the purchaser representative, the merits and
risks of exercising the Stock Award; and (ii) to give written assurances
satisfactory to the Company stating that the Participant is acquiring Common
Stock subject to the Stock Award for the Participant’s own account and not with
any present intention of selling or otherwise distributing the Common Stock. The
foregoing requirements, and any assurances given pursuant to such requirements,
shall be inoperative if (1) the issuance of the shares of Common Stock upon the
exercise or acquisition of Common Stock under the Stock Award has been
registered under a then currently effective registration statement under the
Securities Act or (2) as to any particular requirement, a determination is made
by counsel for the Company that such requirement need not be met in the
circumstances under the then applicable securities laws. The Company may, upon
advice of counsel to the Company, place legends on stock certificates issued
under the Plan as such counsel deems necessary or appropriate in order to
comply with applicable securities laws, including, but not limited to, legends
restricting the transfer of the Common Stock.

 

(f)                                    Withholding
Obligations. To the extent provided by the terms of a Stock Award Agreement,
the Participant may satisfy any federal, state or local tax withholding
obligation relating to the exercise or acquisition of Common Stock under a
Stock Award by any of the following means (in addition to the Company’s right
to withhold from any compensation paid to the Participant by the Company) or by
a combination of such means:  (i)
tendering a cash payment; (ii) authorizing the Company to withhold shares of
Common Stock from the shares of Common Stock otherwise issuable to the
Participant as a result of the exercise or acquisition of Common Stock under
the Stock Award; provided, however, that no shares
of Common Stock are withheld with a value exceeding the minimum amount of tax
required to be withheld by law (or such lower amount as may be necessary to
avoid variable award accounting); or (iii) delivering to the Company owned and
unencumbered shares of Common Stock.

 

(g)                                 Information
Obligation. To the extent required by Section 260.140.46 of Title 10 of the
California Code of Regulations, the Company shall deliver financial statements
to Participants at least annually. This Section 10(g) shall not apply to key
Employees whose duties in connection with the Company assure them access to
equivalent information.

 

15

 

(h)                                 Repurchase
Limitation. The terms of any repurchase option shall be specified in the
Stock Award, and the repurchase price may be either the Fair Market Value of
the shares of Common Stock on the date of termination of Continuous Service or
the lower of (i) the Fair Market Value of the shares of Common Stock on the
date of repurchase or (ii) their original purchase price. To the extent
required by Section 260.140.41 and Section 260.140.42 of Title 10 of the
California Code of Regulations at the time a Stock Award is made, any
repurchase option contained in a Stock Award granted to a person who is not an
Officer, Director or Consultant shall be upon the terms described below:

 

(i)                                    Fair
Market Value. If the repurchase option gives the Company the right to
repurchase the shares of Common Stock upon termination of Continuous Service at
not less than the Fair Market Value of the shares of Common Stock to be
purchased on the date of termination of Continuous Service, then (i) the right
to repurchase shall be exercised for cash or cancellation of purchase money
indebtedness for the shares of Common Stock within ninety (90) days of
termination of Continuous Service (or in the case of shares of Common Stock
issued upon exercise of Stock Awards after such date of termination, within
ninety (90) days after the date of the exercise) or such longer period as may
be agreed to by the Company and the Participant (for example, for purposes of
satisfying the requirements of Section 1202(c)(3) of the Code regarding “qualified
small business stock”) and (ii) the right terminates when the shares of Common
Stock become publicly traded.

 

(ii)                                Original
Purchase Price. If the repurchase option gives the Company the right to
repurchase the shares of Common Stock upon termination of Continuous Service at
the lower of (i) the Fair Market Value of the shares of Common Stock on the
date of repurchase or (ii) their original purchase price, then (x) the right to
repurchase at the original purchase price shall lapse at the rate of at least
twenty percent (20%) of the shares of Common Stock per year over five (5) years
from the date the Stock Award is granted (without respect to the date the Stock
Award was exercised or became exercisable) and (y) the right to repurchase
shall be exercised for cash or cancellation of purchase money indebtedness for
the shares of Common Stock within ninety (90) days of termination of Continuous
Service (or in the case of shares of Common Stock issued upon exercise of
Options after such date of termination, within ninety (90) days after the date
of the exercise) or such longer period as may be agreed to by the Company and
the Participant (for example, for purposes of satisfying the requirements of
Section 1202(c)(3) of the Code regarding “qualified small business stock”).

 

11.                               ADJUSTMENTS
UPON CHANGES IN STOCK.

 

(a)                                  Capitalization
Adjustments. If any change is made in, or other event occurs with respect
to, the Common Stock subject to the Plan or subject to any Stock Award without
the receipt of consideration by the Company (through merger, consolidation,
reorganization, recapitalization, reincorporation, stock dividend, dividend in
property other than cash, stock split, liquidating dividend, combination of
shares, exchange of shares, change in corporate structure or other transaction
not involving the receipt of consideration by the Company (each a “Capitalization
Adjustment”), the Plan will be appropriately adjusted in the class(es) and
maximum number of securities subject to the Plan pursuant to Sections 4(a) and
4(b) and the outstanding Stock Awards

 

16

 

will be appropriately adjusted in the class(es) and number of
securities and price per share of Common Stock subject to such outstanding
Stock Awards. The Board shall make such adjustments, and its determination
shall be final, binding and conclusive. (The conversion of any convertible
securities of the Company shall not be treated as a transaction “without
receipt of consideration” by the Company.)

 

(b)                                  Dissolution
or Liquidation. In the event of a dissolution or liquidation of the
Company, then all outstanding Options shall terminate immediately prior to the
completion of such dissolution or liquidation, and shares of Common Stock
subject to the Company’s repurchase option may be repurchased by the Company
notwithstanding the fact that the holder of such stock is still in Continuous
Service.

 

(c)                                  Corporate
Transaction. In the event of a Corporate Transaction, any surviving
corporation or acquiring corporation may assume or continue any or all Stock
Awards outstanding under the Plan or may substitute similar stock awards for
Stock Awards outstanding under the Plan (it being understood that similar stock
awards include, but are not limited to, awards to acquire the same
consideration paid to the stockholders or the Company, as the case may be,
pursuant to the Corporate Transaction), and any reacquisition or repurchase
rights held by the Company in respect of Common Stock issued pursuant to Stock
Awards may be assigned by the Company to the successor of the Company (or such
successor’s parent company), if any, in connection with such Corporate
Transaction. In the event that any surviving corporation or acquiring
corporation does not assume or continue any or all such outstanding Stock
Awards or substitute similar stock awards for such outstanding Stock Awards,
then with respect to Stock Awards that have not been assumed, continued or
substituted and that are held by Participants whose Continuous Service has not
terminated prior to the effective time of the Corporate Transaction, the
vesting of such Stock Awards (and, if applicable, the time at which such Stock
Awards may be exercised) shall (contingent upon the effectiveness of the
Corporate Transaction) be accelerated in full to a date prior to the effective
time of such Corporate Transaction as the Board shall determine (or, if the
Board shall not determine such a date, to the date that is five (5) days prior
to the effective time of the Corporate Transaction), the Stock Awards shall
terminate if not exercised (if applicable) at or prior to such effective time,
and any reacquisition or repurchase rights held by the Company with respect to
such Stock Awards held by Participants whose Continuous Service has not terminated
shall (contingent upon the effectiveness of the Corporate Transaction) lapse. With
respect to any other Stock Awards outstanding under the Plan that have not been
assumed, continued or substituted, the vesting of such Stock Awards (and, if
applicable, the time at which such Stock Award may be exercised) shall not be
accelerated, unless otherwise provided in a written agreement between the
Company or any Affiliate and the holder of such Stock Award, and such Stock
Awards shall terminate if not exercised (if applicable) prior to the effective
time of the Corporate Transaction.

 

(d)                                  Change
in Control. A Stock Award held by any Participant whose Continuous Service
has not terminated prior to the effective time of a Change in Control may be
subject to additional acceleration of vesting and exercisability upon or after
such event as may be provided in the Stock Award Agreement for such Stock Award
or as may be provided in any other written

 

17

 

agreement between the Company or any Affiliate and the Participant, but
in the absence of such provision, no such acceleration shall occur.

 

12.                               AMENDMENT
OF THE PLAN AND STOCK AWARDS.

 

(a)                                  Amendment
of Plan. The Board at any time, and from time to time, may amend the Plan. However,
except as provided in Section 11(a) relating to Capitalization Adjustments, no
amendment shall be effective unless approved by the stockholders of the Company
to the extent stockholder approval is necessary to satisfy the requirements of
Section 422 of the Code.

 

(b)                                  Stockholder
Approval. The Board, in its sole discretion, may submit any other amendment
to the Plan for stockholder approval.

 

(c)                                  Contemplated
Amendments. It is expressly contemplated that the Board may amend the Plan
in any respect the Board deems necessary or advisable to provide eligible
Employees with the maximum benefits provided or to be provided under the
provisions of the Code and the regulations promulgated thereunder relating to
Incentive Stock Options and/or to bring the Plan and/or Incentive Stock Options
granted under it into compliance therewith.

 

(d)                                  No
Impairment of Rights. Rights under any Stock Award granted before amendment
of the Plan shall not be impaired by any amendment of the Plan unless (i) the
Company requests the consent of the Participant and (ii) the Participant
consents in writing.

 

(e)                                  Amendment
of Stock Awards. The Board at any time, and from time to time, may amend
the terms of any one or more Stock Awards; provided, however,
that the rights under any Stock Award shall not be impaired by any such
amendment unless (i) the Company requests the consent of the Participant and
(ii) the Participant consents in writing.

 

13.                               TERMINATION
OR SUSPENSION OF THE PLAN.

 

(a)                                  Plan
Term. The Board may suspend or terminate the Plan at any time. Unless
sooner terminated, the Plan shall terminate on the day before the tenth (10th)
anniversary of the date the Plan is adopted by the Board or approved by the
stockholders of the Company, whichever is earlier. No Stock Awards may be
granted under the Plan while the Plan is suspended or after it is terminated.

 

(b)                                  No
Impairment of Rights. Suspension or termination of the Plan shall not
impair rights and obligations under any Stock Award granted while the Plan is
in effect except with the written consent of the Participant.

 

14.                               EFFECTIVE
DATE OF PLAN.

 

The Plan shall become
effective as determined by the Board, but no Stock Award shall be exercised
(or, in the case of a stock bonus, shall be granted) unless and until the Plan
has been approved by the stockholders of the Company, which approval shall be
within twelve (12) months before or after the date the Plan is adopted by the
Board.

 

18

 

I.                                         CHOICE
OF LAW.

 

The law of the State of
California shall govern all questions concerning the construction, validity and
interpretation of this Plan, without regard to such state’s conflict of laws
rules.

 

19

 

RELIANT TECHNOLOGIES, INC.

2003 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT

(INCENTIVE STOCK OPTION OR NONSTATUTORY STOCK OPTION)

 

 

Pursuant to your Stock Option
Grant Notice (“Grant Notice”) and this Stock Option Agreement, Reliant
Technologies, Inc. (the “Company”) has granted you an option under its 2003 Equity Incentive Plan (the
“Plan”) to purchase the number of shares of the Company’s Common Stock
indicated in your Grant Notice at the exercise price indicated in your Grant
Notice. Defined terms not explicitly defined in this Stock Option Agreement but
defined in the Plan shall have the same definitions as in the Plan.

 

The details of your option are
as follows:

 

1.                                      VESTING.
Subject to the limitations contained herein, your option will vest as
provided in your Grant Notice, provided that vesting will cease upon the
interruption or termination of your Continuous Service.

 

2.                                      NUMBER
OF SHARES AND EXERCISE PRICE. The number of shares of Common Stock subject
to your option and your exercise price per share referenced in your Grant
Notice may be adjusted from time to time for Capitalization Adjustments.

 

3.                                      EXERCISE
PRIOR TO VESTING (“EARLY EXERCISE”). If permitted in your Grant Notice
(i.e., the “Exercise Schedule” indicates that “Early Exercise” of your option
is permitted) and subject to the provisions of your option, you may elect at
any time that is both (i) during the period of your Continuous Service and (ii)
during the term of your option, to exercise all or part of your option,
including the nonvested portion of your option; provided,
however, that:

 

(a)                                  a
partial exercise of your option shall be deemed to cover first vested shares of
Common Stock and then the earliest vesting installment of unvested shares of
Common Stock;

 

(b)                                  any
shares of Common Stock so purchased from installments that have not vested as
of the date of exercise shall be subject to the purchase option in favor of the
Company as described in the Company’s form of Early Exercise Stock Purchase
Agreement;

 

(c)                                  you
shall enter into the Company’s form of Early Exercise Stock Purchase Agreement
with a vesting schedule that will result in the same vesting as if no early
exercise had occurred; and

 

(d)                                  if
your option is an Incentive Stock Option, then, to the extent that the
aggregate Fair Market Value (determined at the time of grant) of the shares of
Common Stock with respect to which your option plus all other Incentive Stock
Options you hold are exercisable for the first time by you during any calendar
year (under all plans of the Company and its Affiliates) exceeds one hundred
thousand dollars ($100,000), your option(s) or portions thereof

 

1

 

that exceed such limit (according to the order in which they were
granted) shall be treated as Nonstatutory Stock Options.

 

4.                                      METHOD
OF PAYMENT. Payment of the exercise price is due in full upon exercise of
all or any part of your option. You may elect to make payment of the exercise
price in cash or by check or in any other manner permitted
by your Grant Notice, which may include one or more of the
following:

 

(a)                                  In
the Company’s sole discretion at the time your option is exercised and provided
that at the time of exercise the Common Stock is publicly traded and quoted
regularly in The Wall Street Journal, pursuant
to a program developed under Regulation T as promulgated by the Federal Reserve
Board that, prior to the issuance of Common Stock, results in either the
receipt of cash (or check) by the Company or the receipt of irrevocable
instructions to pay the aggregate exercise price to the Company from the sales
proceeds.

 

(b)                                  Provided
that at the time of exercise the Common Stock is publicly traded and quoted
regularly in The Wall Street Journal, by
delivery of already-owned shares of Common Stock either that you have held for
the period required to avoid a charge to the Company’s reported earnings
(generally six (6) months) or that you did not acquire, directly or indirectly
from the Company, that are owned free and clear of any liens, claims, encumbrances
or security interests, and that are valued at Fair Market Value on the date of
exercise. “Delivery” for these purposes, in the sole discretion of the Company
at the time you exercise your option, shall include delivery to the Company of
your attestation of ownership of such shares of Common Stock in a form approved
by the Company. Notwithstanding the foregoing, you may not exercise your option
by tender to the Company of Common Stock to the extent such tender would
violate the provisions of any law, regulation or agreement restricting the
redemption of the Company’s stock.

 

5.                                      WHOLE
SHARES. You may exercise your option only for whole shares of Common Stock.

 

6.                                      SECURITIES
LAW COMPLIANCE. Notwithstanding anything to the contrary contained herein,
you may not exercise your option unless the shares of Common Stock issuable
upon such exercise are then registered under the Securities Act or, if such
shares of Common Stock are not then so registered, the Company has determined
that such exercise and issuance would be exempt from the registration
requirements of the Securities Act. The exercise of your option also must
comply with other applicable laws and regulations governing your option, and
you may not exercise your option if the Company determines that such exercise
would not be in material compliance with such laws and regulations.

 

7.                                      TERM.
You may not exercise your option before the commencement of its term or
after its term expires. The term of your option commences on the Date of Grant
and expires upon the earliest of the following:

 

(a)                                  immediately
upon the termination of your Continuous Service for Cause;

 

(b)                                  three
(3) months after the termination of your Continuous Service for any reason
other than Cause, Disability or death, provided that if during any part of such
three- (3-)

 

2

 

month period you may not exercise your option solely because of the
condition set forth in the preceding paragraph relating to “Securities Law
Compliance,” your option shall not expire until the earlier of the Expiration
Date or until it shall have been exercisable for an aggregate period of three
(3) months after the termination of your Continuous Service;

 

(c)                                  twelve
(12) months after the termination of your Continuous Service due to your
Disability;

 

(d)                                  eighteen
(18) months after your death if you die either during your Continuous Service
or within three (3) months after your Continuous Service terminates for any
reason other than Cause;

 

(e)                                  the
Expiration Date indicated in your Grant Notice; or

 

(f)                                    the
day before the tenth (10th) anniversary of the Date of Grant.

 

If your option is an Incentive
Stock Option, note that, to obtain the federal income tax advantages associated
with an Incentive Stock Option, the Code requires that at all times beginning
on the date of grant of your option and ending on the day three (3) months
before the date of your option’s exercise, you must be an employee of the
Company or an Affiliate, except in the event of your death or your permanent
and total disability, as defined in Section 22(e) of the Code. (The definition
of disability in Section 22(e) of the Code is different from the definition of
the Disability under the Plan). The Company has provided for extended
exercisability of your option under certain circumstances for your benefit but
cannot guarantee that your option will necessarily be treated as an Incentive
Stock Option if you continue to provide services to the Company or an Affiliate
as a Consultant or Director after your employment terminates or if you
otherwise exercise your option more than three (3) months after the date your
employment with the Company or an Affiliate terminates.

 

8.                                      EXERCISE.

 

(a)                                  You
may exercise the vested portion of your option (and the unvested portion of
your option if your Grant Notice so permits) during its term by delivering a
Notice of Exercise (in a form designated by the Company) together with the
exercise price to the Secretary of the Company, or to such other person as the
Company may designate, during regular business hours, together with such
additional documents as the Company may then require.

 

(b)                                  By
exercising your option you agree that, as a condition to any exercise of your
option, the Company may require you to enter into an arrangement providing for
the payment by you to the Company of any tax withholding obligation of the
Company arising by reason of (1) the exercise of your option, (2) the lapse of
any substantial risk of forfeiture to which the shares of Common Stock are
subject at the time of exercise, or (3) the disposition of shares of Common
Stock acquired upon such exercise.

 

(c)                                  If
your option is an Incentive Stock Option, by exercising your option you agree
that you will notify the Company in writing within fifteen (15) days after the
date of any disposition of any of the shares of the Common Stock issued upon
exercise of your option that

 

3

 

occurs within two (2) years after the date of your option grant or
within one (1) year after such shares of Common Stock are transferred upon
exercise of your option.

 

(d)                                  By
exercising your option you agree that you 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
shares of Common Stock or other securities of the Company held by you, 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 Securities Act (the “Lock Up Period”);
provided, however, that nothing
contained in this section shall prevent the exercise of a repurchase option, if
any, in favor of the Company during the Lock Up Period. You further agree to
execute and deliver such other agreements as may be reasonably requested by the
Company and/or the underwriter(s) that are consistent with the foregoing or
that are necessary to give further effect thereto. In order to enforce the
foregoing covenant, the Company may impose stop-transfer instructions with
respect to your shares of Common Stock until the end of such period. The
underwriters of the Company’s stock are intended third party beneficiaries of
this Section 8(d) and shall have the right, power and authority to enforce the
provisions hereof as though they were a party hereto.

 

9.                                      TRANSFERABILITY.
Your option is not transferable, except by will or by the laws of descent
and distribution, and is exercisable during your life only by you. Notwithstanding
the foregoing, by delivering written notice to the Company, in a form
satisfactory to the Company, you may designate a third party who, in the event
of your death, shall thereafter be entitled to exercise your option.

 

10.                               RIGHT OF FIRST REFUSAL. Shares of Common Stock that you
acquire upon exercise of your option are subject to any right of first refusal
that may be described in the Company’s bylaws in effect at such time the
Company elects to exercise its right; provided, however,
that if your option is an Incentive Stock Option and the right of first refusal
described in the Company’s bylaws in effect at the time the Company elects to
exercise its right is more beneficial to you than the right of first refusal
described in the Company’s bylaws on the Date of Grant, then the right of first
refusal described in the Company’s bylaws on the Date of Grant shall apply. The
Company’s right of first refusal shall expire on the Listing Date. For purposes
of this Agreement, Listing Date shall mean the first date upon which any
security of the Company is listed (or approved for listing) upon notice of
issuance on a national securities exchange or on the National Market System of
the Nasdaq Stock Market (or any successor to that entity).

 

11.                               RIGHT OF REPURCHASE.

 

(a)                                  Beginning as of the time of termination of your
Continuous Service (or such later time as specified in subsection 11(c)), the
Company shall have the right, but not the obligation, to elect to repurchase
all or any part of the shares you acquired 
pursuant to the exercise of your option that are vested as of the
effective date of the termination of your Continuous Service (the “Vested
Shares”), such repurchase right hereafter referred to as the “Company’s Repurchase
Option.”  The Company’s Repurchase Option
shall expire on the Listing
Date.

 

4

 

(b)                                  If, from time to time, there is any stock
dividend, stock split or other change in the character or amount of any of the
outstanding stock of the corporation the stock of which is subject to the
provisions of your option, then in such event any and all new, substituted or
additional securities to which you are entitled by reason of your ownership of
the shares acquired upon exercise of your option shall be immediately subject
to the Repurchase Option with the same force and effect as the shares you
acquired pursuant to the exercise of your option.

 

(c)                                  The Repurchase Option shall be exercisable only
within the ninety (90) day period described below (the “Repurchase Period”), or
such longer period as may be agreed to by the Company and you. The Repurchase
Period shall commence as follows:  (1)
with respect to Vested Shares acquired pursuant to the exercise of your option
prior to the termination of your Continuous Service, the Repurchase Period
shall commence as of the date of such termination of your Continuous Service;
and (2)  with respect to Vested Shares
acquired after the termination of your Continuous Service pursuant to any
post-termination exercise(s) of your option, the Repurchase Period shall
commence on the date of such exercise(s).

 

(d)                                  The Company shall exercise its Repurchase Option
only for cash or cancellation of purchase money indebtedness for the Vested
Shares and shall give you written notice (accompanied by payment for the Vested
Shares) within ninety (90) days after commencement of the Repurchase Period as
set forth in subsection 11(c) herein.

 

(e)                                  The Company’s repurchase price shall be equal to
the Fair Market Value of the Vested Shares as of the date of termination of
your Continuous Service.

 

(f)                                    To ensure that the Vested Shares will be
available for repurchase by the Company, the Company may require you to deposit
the certificate(s) evidencing the shares that you purchase upon exercise of
your option with an agent designated by the Company under the terms and
conditions of an escrow agreement approved by the Company. If the Company does
not require such deposit as a condition of exercise of your option, the Company
reserves the right at any time to require you to so deposit the certificate(s)
in escrow. As soon as practicable after the expiration of the Company’s
Repurchase Option, the agent shall deliver to you the shares and any other
property no longer subject to such restriction. In the event the shares and any
other property held in escrow are subject to the Company’s exercise of its
Repurchase Option, the notices required to be given to you shall be given to
the escrow agent, and any payment required to be given to you shall be given to
the escrow agent. Within thirty (30) days after payment by the Company for the
Vested Shares, but no later than the ninetieth (90th) day following
the commencement of the Repurchase Period, the escrow agent shall deliver the
Vested Shares that the Company has repurchased to the Company and shall deliver
the payment received from the Company to you.

 

12.                               OPTION
NOT A SERVICE CONTRACT. Your option is not an employment or service
contract, and nothing in your option shall be deemed to create in any way
whatsoever any obligation on your part to continue in the employ of the Company
or an Affiliate, or of the Company or an Affiliate to continue your employment.
In addition, nothing in your option shall obligate the Company or an Affiliate,
their respective stockholders, Boards of Directors, Officers or Employees to
continue any relationship that you might have as a Director or Consultant for
the Company or an Affiliate.

 

5

 

13.                               WITHHOLDING
OBLIGATIONS.

 

(a)                                  At
the time you exercise your option, in whole or in part, or at any time
thereafter as requested by the Company, you hereby authorize withholding from
payroll and any other amounts payable to you, and otherwise agree to make adequate
provision for (including by means of a “cashless exercise” pursuant to a
program developed under Regulation T as promulgated by the Federal Reserve
Board to the extent permitted by the Company), any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of the Company or
an Affiliate, if any, which arise in connection with the exercise of your
option.

 

(b)                                  Upon
your request and subject to approval by the Company, in its sole discretion,
and compliance with any applicable legal conditions or restrictions, the
Company may withhold from fully vested shares of Common Stock otherwise
issuable to you upon the exercise of your option a number of whole shares of
Common Stock having a Fair Market Value, determined by the Company as of the
date of exercise, not in excess of the minimum amount of tax required to be
withheld by law (or such lower amount as may be necessary to avoid variable
award accounting). If the date of determination of any tax withholding
obligation is deferred to a date later than the date of exercise of your
option, share withholding pursuant to the preceding sentence shall not be
permitted unless you make a proper and timely election under Section 83(b) of
the Code, covering the aggregate number of shares of Common Stock acquired upon
such exercise with respect to which such determination is otherwise deferred,
to accelerate the determination of such tax withholding obligation to the date
of exercise of your option. Notwithstanding the filing of such election, shares
of Common Stock shall be withheld solely from fully vested shares of Common
Stock determined as of the date of exercise of your option that are otherwise
issuable to you upon such exercise. Any adverse consequences to you arising in
connection with such share withholding procedure shall be your sole
responsibility.

 

(c)                                  You
may not exercise your option unless the tax withholding obligations of the
Company and/or any Affiliate are satisfied. Accordingly, you may not be able to
exercise your option when desired even though your option is vested, and the
Company shall have no obligation to issue a certificate for such shares of
Common Stock or release such shares of Common Stock from any escrow provided
for herein unless such obligations are satisfied.

 

14.                               NOTICES.
Any notices provided for in your option or the Plan shall be given in
writing and shall be deemed effectively given upon receipt or, in the case of
notices delivered by mail by the Company to you, five (5) days after deposit in
the United States mail, postage prepaid, addressed to you at the last address
you provided to the Company.

 

15.                               GOVERNING
PLAN DOCUMENT. Your option is subject to all the provisions of the Plan,
the provisions of which are hereby made a part of your option, and is further
subject to all interpretations, amendments, rules and regulations, which may
from time to time be promulgated and adopted pursuant to the Plan. In the event
of any conflict between the provisions of your option and those of the Plan,
the provisions of the Plan shall control.

 

6

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