Exhibit 10.3

THIRD AMENDMENT TO

EMPLOYMENT AGREEMENT

This shall serve as the Third Amendment to the Employment Agreement (this “Amendment”) entered into as of this 17 day of March, 2013, between Palomar Medical Technologies, Inc., a Delaware corporation (the “Company”), and Joseph P. Caruso, an individual (the “Executive”).

WHEREAS, the Company and the Executive are parties to a certain Employment Agreement, dated as of July 1, 2001, as amended as of May 19, 2010 and further amended as of May 15, 2012 (the “Original Agreement”);

WHEREAS, the Company and the Executive have agreed to amend the Original Agreement as set forth in this Amendment;

WHEREAS, the Company, Cynosure, Inc., a Delaware corporation (the “Buyer”), and Commander Acquisition Corp., a Delaware corporation and wholly owned subsidiary of the Buyer (the “Merger Subsidiary”), intend to enter into an Agreement and Plan of Merger (as the same may be amended from time to time, the “Merger Agreement”), providing for, among other things, the merger of the Company with and into the Merger Subsidiary (the “Merger”); and

WHEREAS, as a condition to its willingness to enter into the Merger Agreement, the Buyer has required that the Company and the Executive execute and deliver this Amendment and also a new employment agreement (the “New Agreement”), each of which is subject to the consummation of the Merger and shall become effective upon the Effective Time (as such term is defined in the Merger Agreement) of the Merger.

NOW, therefore, the Company and the Executive agree to amend the Original Agreement as follows:

“Notwithstanding the foregoing or anything else herein to the contrary, except to the extent necessary to implement the provisions of Section 31 below, Sections 1 through 11 of this Agreement shall terminate effective upon the Effective Time, it being the intention of the parties that the New Agreement shall govern Executive’s employment on and after the Effective Time, except as specifically provided herein.”

“31. Retention Bonus.

Subject to Section 30, within ten (10) days from the Effective Time, the Company shall pay Executive, in a lump sum, an amount equal to seventy-five percent (75%) of the Retention Bonus. Subject to Section 30, and provided that either (i) the Executive is still employed by the Company as of the 35% Payment Date or (ii) the Executive’s employment has terminated prior to the 35% Payment Date on account of his death pursuant to Section 7, disability pursuant to Section 8, termination by the Company without Cause, or resignation by the Executive for Good Reason pursuant to Section 9, then the Company shall pay Executive, in a lump sum on the 35% Payment Date, an amount equal to thirty-five percent (35%) of the Retention Bonus. The “35% Payment Date” is the date one day prior to the one-year anniversary of the Effective Time, provided that if such date is not a business day, then the 35% Payment Date shall be the most recent business day preceding the one-year anniversary of the Effective Time.

For purposes of this Agreement, the term “Executive’s Annual Compensation” shall mean the sum of (A) the Executive’s annual salary as of the Effective Time and (B) the Executive’s last paid bonus prior to the execution of this Amendment as “last paid bonus” has been defined by the Compensation Committee of the Company, that being the last regular annual bonus paid in March of 2012 for services rendered to the Company during calendar year 2011.

For purposes of this Agreement, the term “Retention Bonus” shall mean the amount equal to the sum of (A) three times (3x) the Executive’s Annual Compensation, and (B) a pro rata portion of the bonus payable with respect to 2013.”

“(d) All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A of the Code to the extent that such reimbursements or in-kind benefits are subject to Section 409A, including, where applicable, the requirements that (i) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before

the last day of the calendar year following the year in which the expense is incurred and (iv) the right to reimbursement is not subject to set off or liquidation or exchange for any other benefit.”

[Signatures Appear On The Following Page]

IN WITNESS WHEREOF, the parties have executed this Amendment on the date first written above.