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                                 EXHIBIT 10.11I


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                           LOAN MODIFICATION AGREEMENT


     This Loan Modification Agreement is entered into as of  September 22, 1995,
by and between Laserscope (the "Borrower") whose address is 3052 Orchard Drive,
San Jose, CA 95134, and Silicon Valley Bank (the "Lender") whose address is 3003
Tasman Drive, Santa Clara, CA 95054.

1.   DESCRIPTION OF EXISTING INDEBTEDNESS.  Among other indebtedness which may
be owing by Borrower to Lender, Borrower is indebted to Lender pursuant to,
among other documents, a Promissory Note, dated June 7, 1991, in the original
principal amount of Three Million and 00/100 Dollars  ($3,000,000.00) (the
"Note").  The Note has been modified pursuant to Change in Terms Agreements
dated August 27, 1991, April 10, 1992, pursuant to which, among other things,
the principal amount of the Note was increased to Five Million and 00/100
Dollars ($5,000,000.00), and April 15, 1993, and certain Loan Modification
Agreements dated April 15, 1994, July 15, 1994, and August 1, 1995.  The Note,
together with other promissory notes from Borrower to Lender, is governed by the
terms of a Business Loan Agreement, dated June 7, 1991, between Borrower and
Lender, as such agreement may be amended from time to time (the "Loan
Agreement").

Hereinafter, all indebtedness owing by Borrower to Lender shall be referred to
as the "Indebtedness."
Hereinafter, all other documents evidencing or securing the Indebtedness shall
be referred to as the "Existing Loan Documents."

3.   DESCRIPTION OF CHANGE IN TERMS.

     A.   MODIFICATION(S) TO THE LOAN AGREEMENT.

          1.        Lender hereby waives Borrower's existing default under the
                    Loan Agreement by virtue of Borrower's failure to comply
                    with the Profitability Covenant as of quarter ending June
                    30, 1995. Lender's waiver of Borrower's compliance of this
                    covenant shall apply only to the foregoing period.
                    Accordingly, for the quarter ended June 30, 1995, Borrower
                    shall be in compliance with this covenant.

                    Lender's agreement to waive the above-described default (1)
                    in no way shall be deemed an agreement by the Lender to
                    waive Borrower's compliance with the above-described
                    covenant as of all other dates and (2) shall not limit or
                    impair the Lender's right to demand strict performance of
                    this covenant as of all other dates and (3) shall not limit
                    or impair the Lender's right to demand strict performance of
                    all other covenants as of any date.

 4.  CONSISTENT CHANGES.    The Existing Loan Documents are hereby amended
wherever necessary to reflect the changes described above.

5.   NO DEFENSES OF BORROWER.    Borrower (and each guarantor and pledgor
signing below) agrees that, as of this date, it has no defenses against the
obligations to pay any amounts under the Indebtedness.

6.   CONTINUING VALIDITY. Borrower (and each guarantor and pledgor signing
below) understands and agrees that in modifying the existing Indebtedness,
Lender is relying upon Borrower's representations,  warranties, and agreements,
as set forth in the Existing Loan Documents.  Except as expressly modified
pursuant to this Loan Modification Agreement, the terms of the Existing Loan
Documents remain unchanged and in full force and effect.  Lender's agreement to
modifications to the existing Indebtedness pursuant to this Loan Modification
Agreement in no way shall obligate Lender to make any future modifications to
the  Indebtedness.  Nothing in this Loan Modification Agreement shall constitute
a satisfaction of the Indebtedness. It is the intention of Lender and Borrower
to retain as liable parties all makers and endorsers of Existing Loan Documents,
unless the party is expressly released by Lender in writing.  No maker,
endorser, or guarantor will be released by virtue of this Loan Modification
Agreement. The terms of this  Paragraph apply not only to this Loan Modification
Agreement, but also to all subsequent loan modification agreements.

     This Loan Modification Agreement is executed as of the date first written
above.


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BORROWER:                                    LENDER:

LASERSCOPE, INC.                             SILICON VALLEY BANK



     By:  /s/ Thomas B. Boyd                     By: /s/ Mary T. Toomey
          ------------------------------             ---------------------------
     Name:   Thomas B. Boyd                      Name: Mary  T. Toomey
          ------------------------------               -------------------------
     Title:  Sr. VP Operations & Finance         Title: Assistant Vice President
            ----------------------------                ------------------------


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