##### 



Exhibit 10.6
 EXECUTION VERSION
 SECURITY AGREEMENT
 Agreement Debtor AMS Laserscope Secured Parties Secured Party
 RECITALS
 Settlement Agreement Purchase
Agreement Adjustment Amount Product
Supply Agreement Final Product Inventory
 Letter Agreement




---



##### 



ARTICLE 1
DEFINITIONS
  Accounts
 Adjustment Amount
 Affiliate
 AMS
 Article 9
 Chattel Paper
 Collatera
 Commercial Tort Claim
 Controlled Property
 Copyrights Exhibit A
 Data Processing Records and Systems
 Debtor
 2




---



##### 



Default
 Deposit Accounts
 Document
 Electronic Chattel Paper
 Equipment
 Event of Default
 Final Product Inventory
 Fixtures
 General Intangibles
 Goods
 Instruments
 Insurance Proceeds
 Inventory
 Investment
 Investment Property
 Laserscope
 Letter Agreement
 Letter of Credit Rights
 3




---



##### 



Obligations
 Patents Exhibit B
 Payment Intangibles
 Permitted Investment
 Person
 Proceeds
 4




---



##### 



Products
 Purchase Agreement
 Secured Parties
 Senior Lender
 Senior Loan Agreement
 Senior Loans
 Settlement Agreement
 Subordination Agreement
 Subsidiary
 Supporting Obligations
 Tangible Chattel Paper
 Trademarks Exhibit C
 UCC
 5




---



##### 



ARTICLE 2
SECURITY INTERESTS
  Exhibit D
  ARTICLE 3
REPRESENTATIONS AND COVENANTS OF DEBTOR
  Authorization
 Title to Collateral Permitted
Liens
 6




---



##### 



Disposition or Encumbrance of Collateral Transfer
 Validity of Accounts
 Maintenance of Tangible Collateral Exhibit D Exhibit E
 Notation on Chattel Paper
 Deposit Accounts
 Protection of Collateral
 7




---



##### 



Interest
Rate
 Insurance
 Compliance with Law
 Books and Records; Access
   8




---



##### 



Notice of Default
 Additional Documentation
 Chief Executive Office; State of Organization
 Name of Debtor Exhibit D Exhibit D
 Disputes; etc
 9




---



##### 



Power of Attorney provided however
 Patents and Trademarks; Etc
  10




---



##### 



11




---



##### 



Copyrights
  Works
   12




---



##### 



Control
 Further Acts
 Collection of Accounts
 ARTICLE 4
INSURANCE
  13




---



##### 



ARTICLE 5
EVENTS OF DEFAULT
 Event of Default
       14




---



##### 



ARTICLE 6
RIGHTS AND REMEDIES ON DEFAULT
  Acceleration of Obligations
 Right of Offset
 Deal with Collateral
 Realize on Collateral
 Access to Property
 15




---



##### 



Other Rights
 Application of Proceeds
 Patents and Trademarks
      16




---



##### 



Copyrights
    17




---



##### 



ARTICLE 7
MISCELLANEOUS
 No Liability on Collateral
 No Waiver
 Remedies Cumulative
 Governing Law
 18




---



##### 



Expenses
 Successors and Assigns
 Recitals
 Severability
 No Obligation to Pursue Others
 Signature page to follow
 19




---



##### 



IRIDEX CORPORATION,a Delaware corporationBy:
Name:

    /s/ Barry G. Caldwell

Barry G. CaldwellIts:

    President & CEO
  20




---



##### 



EXECUTION VERSION
 EXHIBIT A
  A-11




---



##### 



EXECUTION VERSION
 EXHIBIT B
  B-11




---



##### 



Exhibit B
 IRIDEX Corporation
U.S. Patent List
 Patent Title
    
    Date Issued
    
    
    Patent No.
    
    Holder1.
    
    Optical Fiber with Electrical
Encoding (Fiber Optic Encoding)
    
    2/4/92
    
    
    5,085,492
    
    
    IRIDEX Corporation2.
    
    Technique for Coupling Laser Diode to Optical Fiber
(Laser Diode Coupling)
    
    2/18/92
    
    
    5,088,803
    
    
    IRIDEX Corporation3.
    
    Contact Probe for Laser Cyclophotocoagulation (G-Probe)
    
    12/13/94
    
    
    5,372,595
    
    
    IRIDEX Corporation
Georgetown University4.
    
    Passively Stabilized Intracavity Doubling Laser (CW Green)
    
    4/23/96
    
    
    5,511,085
    
    
    IRIDEX Corporation5.
    
    Scalable Side-Pumped Solid-State Laser (Scalable
Side-Pump)
    
    5/28/96
    
    
    5,521,932
    
    
    IRIDEX Corporation6.
    
    Fiber Stub End-Pumped Laser (End Pump)
    
    9/2/97
    
    
    5,663,979
    
    
    IRIDEX Corporation7.
    
    Pulsed Laser with Passive Stabilization
    
    11/9/99
    
    
    5,982,789
    
    
    IRIDEX Corporation8.
    
    Fiber Stub End-Pumped Laser
    
    12/7/99
    
    
    5,999,554
    
    
    IRIDEX Corporation9.
    
    CW Laser Amplifier
    
    10/31/00
    
    
    6,141,143
    
    
    IRIDEX Corporation10.
    
    CW Laser Amplifier
    
    11/7/00
    
    
    6,144,484
    
    
    IRIDEX Corporation11.
    
    Aspheric Lensing Control for High Power Butt-Coupled
End-Pumped Laser
    
    4/24/01
    
    
    6,222,869 B1
    
    
    IRIDEX Corporation




---



##### 



Patent Title
    
    Date Issued
    
    
    Patent No.
    
    Holder12.
    
    Fiber Stub End-Pumped Laser for Treating Abnormal Blood
Vessel
    
    12/4/01
    
    
    6,327,291 B1
    
    
    IRIDEX Corporation13.
    
    Focusability Enhancing Optic for Laser Diode
    
    4/23/02
    
    
    6,377,599 B1
    
    
    IRIDEX Corporation14.
    
    Method and Apparatus for Real-Time Detection, Control and
Recording of
Sub-Clinical Therapeutic Laser Lesions During Ocular
Laser Photocoagulation
    
    4/1/03
    
    
    6,540,391 B2
    
    
    IRIDEX Corporation15.
    
    Method and Apparatus for Controlling
Sub-Clinical Laser Procedures with
Intro-Operative Monitoring of Electrophysiological Changes
    
    5/11/04
    
    
    6,733,490
    
    
    IRIDEX Corporation
 Patent Application Title
    
    File Date
    
    Application No.
    
    Holder16.
    
    Apparatus for Real-Time Measurement/Control Of
Intra-Operative Effects During Laser Thermal
Treatments, Using Light Scattering
    
    9/20/02
    
    60/412,465
    
    IRIDEX Corporation17.
    
    Directional Probe Treatment Apparatus
    
    8/16/04
    
    60/602,166
    
    IRIDEX Corporation18.
    
    Flush Tip Illuminating Laser Probe
    
    11/11/06
    
    11/556,504
    
    IRIDEX Corporation19.
    
    Shaped Tip Illumination Laser Probe Treatment Apparatus
    
    3/13/07
    
    11/685,351
    
    IRIDEX Corporation20.
    
    Green MicroPulse Laser System (Laser System w/Short
Pulse Characteristics and Its Method of Use)
    
    2/24/05
    
    11/066/615
    
    IRIDEX Corporation




---



##### 



EXECUTION VERSION
    C-11




---



##### 



Exhibit C
 IRIDEX CORPORATION
 U.S. TRADEMARK REGISTRATIONS
 COUNTRY
    
    TRADEMARK
    
    REGISTRATION NO.
    

REGISTRATION DATEU.S.
    
    APEX
    
    2,528,141
    
    1/8/2002U.S.
    
    COOLSPOT *
    
    3,044,965
    
    01/17/2006U.S.
    
    DERMASTAT *
    
    1,329,417
    
    04/09/1985U.S.
    
    DESIGN
    
    1,618,629
    
    10/23/1990U.S.
    
    ENDOPROBE
    
    1,622,307
    
    11/13/1990U.S.
    
    GEMINI *
    
    3,044,850
    
    01/17/2006U.S.
    
    IRIDEX
    
    2,204,220
    
    11/17/1998U.S.
    
    IRIDEX
    
    2,204,219
    
    11/17/1998U.S.
    
    IRIS MEDICAL
    
    1,822,545
    
    02/22/1994U.S.
    
    LYRA *
    
    3,200,356
    
    01/23/2007U.S.
    
    OCULIGHT
    
    1,618,628
    
    10/23/1990U.S.
    
    SMARTKEY
    
    1,618,627
    
    10/23/1990U.S.
    
    VENUS *
    
    3,023,256
    
    12/06/2005
 U.S. PENDING TRADEMARK APPLICATIONS
 COUNTRY
    
    TRADEMARK
    
    APPLICATION NO.
    
    FILING DATEU.S.
    
    AURA *
    
    78/431,302
    
    06/07/2004U.S.
    
    SOLIS *
    
    78/446,386
    
    07/06/2004
 
 *
    
    Registered owner is Laserscope Corp.




---



##### 



EXECUTION VERSION
 EXHIBIT D
 1.
    
    Financing Statements on File Listing Debtor or Any Predecessor in Title as Debtor, other than
liens permitted under this Agreement or the Senior Loan Agreement.None2.
    
    Location of Tangible Collateral (as of the date hereof)1212 Terra Bella Avenue
Mountain View, CA 94043Inventory AMS Facility Located at:
3070 Orchard Dr
San Jose CA 95134Raw material and fixtures located at vendor:
Paramit Corp
18735 Madrone Parkway
Morgan Hill, CA 95037Other Tangible Collateral consisting of loaner and demonstration inventory located at
doctors offices3.
    
    Prior Names within the last five years NoneNone4.
    
    List of Commercial Tort Claims NoneNone
 D-11




---



##### 



EXHIBIT E
   2




---



##### 








---



#####