exv10w26









Exhibit 10.26




AMERICAN MEDICAL SYSTEMS HOLDINGS, INC.

2010 NAMED EXECUTIVE OFFICER COMPENSATION SUMMARY




2010 Base Salary, Option Grants, and Restricted Stock Awards. For fiscal 2010, the company’s principal executive officer,
principal financial officer and each other named executive officer currently employed by the
company will receive the base salary set forth below (effective as of February 1, 2010), has been
granted an option to purchase the number of shares of company common stock, and has been granted
the number of shares of restricted stock set forth below. All options were granted under the
company’s 2005 Stock Incentive Plan at an exercise price of $18.46 (the closing price on the date
of grant date). All options vest with respect to twenty-five percent of the shares on March 31,
2011 and with respect to 6.25% of the shares on the last day of each calendar quarter thereafter.
All options have a term of seven years. All restricted stock awards vest in annual installments of
twenty-five percent of the shares over a four year period beginning on February 28, 2011.




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name	 	Title	 	Base Salary	 	Options	 	Restricted Stock
	Anthony P. Bihl, III

	 	President and Chief
Executive Officer
	 	$	530,000	 	 	 	196,140	 	 	 	24,440	 
	Mark A. Heggestad

	 	Executive Vice
President and Chief
Financial Officer
	 	$	311,200	 	 	 	63,910	 	 	 	7,970	 
	Maximillian D. Fiore

	 	Senior Vice
President and Chief
Technology Officer
	 	$	293,800	 	 	 	31,960	 	 	 	3,990	 
	Joe W. Martin

	 	Senior Vice
President, General
Manager BPH Therapy
	 	$	311,700	 	 	 	48,570	 	 	 	6,060	 
	Randall R. Ross

	 	Senior Vice
President, Human
Resources
	 	$	261,100	 	 	 	31,960	 	 	 	3,990	 






2010 Executive Variable Incentive Plan. Our executive officers participate in our 2010 Executive
Variable Incentive Plan (2010 EVIP). The Compensation Committee (and the Board of Directors with
respect to executive officers) established a target bonus for each participant in the 2010 EVIP.
The 2010 EVIP provides for payment of a bonus based on achievement of net sales, net income and
cash flow objectives in the 2010 operating plan approved by the Board. The total bonus is weighted
40% for achieving the net sales objective, 30% for achieving the net income objective and 30% for
achieving the cash flow objective. The bonus payable under the plan is pro-rated for achievement
above the minimum threshold and increases with percentage achievement relative to the objectives,
and 100% of the target bonus will be paid at 100% achievement of the plan objectives. The maximum
bonus payable under the plan will be 200% of the target bonus at 110% achievement of the net sales
and net income objectives and 115% achievement of the cash flow objective. Bonuses for achieving
the net sales and net income objectives will be paid beginning at 95% achievement of the net sales
objective and 90.1% achievement of the net income objective, respectively. Bonuses for achieving
these objectives will be determined and paid quarterly. Bonuses for achieving the cash flow
objective will be paid beginning at 85.1% achievement of the cash flow objective, and bonuses for
achieving this objective will be determined and paid annually. The target bonus for 2009 for the
company’s principal executive officer, principal financial officer and each other named executive
officer currently employed by the company is set forth in the table below.




	 	 	 	 	 	 	 
	Name	 	Title	 	Target Bonus
	Anthony P. Bihl, III

	 	President and Chief Executive Officer
	 	$	530,000	 
	Mark A. Heggestad

	 	Executive Vice President and Chief Operating Officer
	 	$	186,720	 
	Maximillian D. Fiore

	 	Senior Vice President and Chief Technology Officer
	 	$	117,520	 
	Joe W. Martin

	 	Senior Vice President, General Manager BPH Therapy
	 	$	155,850	 
	Randall R. Ross

	 	Senior Vice President, Human Resources
	 	$	104,440