PALOMAR MEDICAL TECHNOLOGIES, INC.
STOCK OPTION AGREEMENT
THIS AGREEMENT is made as of by and between PALOMAR MEDICAL TECHNOLOGIES, INC., a
Delaware corporation (the "Company"), and Name ("Employee").
WHEREAS, Employee is a valuable and trusted employee of the Company, and the Company considers it
desirable and in its best interests that Employee be given an inducement to acquire a proprietary interest in the
Company, and an added incentive to advance the interests of the Company by possessing an option to purchase
shares of the $.01 par value Common Stock ("Stock") of the Company, in accordance with the Palomar Medical
Technologies, Inc. 1996 Stock Option Plan (the "Plan"); and
WHEREAS, Employee is desirous of obtaining the option to purchase an equity interest in the Company upon
the terms herein contained; and
WHEREAS, if there is a number of shares listed under Column 2 in Paragraph 2 below, the number of shares
listed are intended to qualify for favorable federal income tax treatment as Incentive Stock Options issued in
accordance with a plan which meets the criteria set forth in Section 422 of the Internal Revenue Code of 1986,
as amended (the "Code").
NOW, THEREFORE, in consideration of these premises, it is agreed by and between the parties as follows:
1. Grant of Option. The Company hereby grants to Employee the right, privilege, and option to purchase shares
of the Stock at the aggregate purchase price of Dollars ($___________ per share), in the manner and subject to
the conditions hereinafter provided.
2. Time of Exercise of Option. The aforesaid option may be exercised with respect to those shares for which an
option has been granted pursuant to Paragraph 1 hereof, on the dates set forth, respectively, in Column 1,
Column 2, Column 3 and Column 4 below, until the termination thereof as provided in Paragraph 4 hereof:
3. Method of Exercise. An option may be exercised by (1) giving written notice to the Company (a) stating that
the optionee wishes to exerc