GUARANTY AGREEMENT dated as of November 16, 1998 from A. Neil Pappalardo, of ________, MA
(the "Guarantor") to Fleet National Bank (the "Bank").
WHEREAS, pursuant to a letter agreement of even date herewith (the "Loan Agreement") between the Bank and
Palomar Medical Technologies, Inc., a Delaware corporation (the "Borrower"), the Bank is establishing a
revolving credit facility for the Borrower on the terms and conditions set forth therein; and
WHEREAS, it is a condition precedent to the making of loans and the issuance of letters of credit by the Bank
pursuant to the Loan Agreement that the Guarantor shall have executed and delivered this Agreement to the
WHEREAS, the establishment of a revolving credit facility for, the making of loans to, and the issuance of letters
of credit for the account of, the Borrower pursuant to the Loan Agreement are and will be beneficial to the
Guarantor inasmuch as the Guarantor is an investor in the Borrower and has received and expects to receive
certain fees from the Borrower and, therefore, has a direct ownership and economic interest in the Borrower;
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Guarantor hereby agrees as follows:
Section 1.01. Defined Terms. As used in this Agreement, the following terms shall have the meanings set out
respectively after each:
"Agreement" - This Guaranty Agreement, as same may be from time to time amended.
"Event of Default" - As defined in Section 5.01 below.
"Guaranteed Obligations" - Any and all indebtedness, liabilities or obligations of the Borrower, whether joint or
several, direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, to or
for the benefit of the Bank, including, without limitation, those now or hereafter arising under any Loan Document.
"Guaranty" - The guaranty of the Guarantor set forth in Article II.