Exhibit 10.31

# HEALTHTRONICS, INC.INCENTIVE
STOCK OPTION AGREEMENT

# Certificate No: ______

THIS
INCENTIVE STOCK OPTION AGREEMENT (this Agreement) is made and entered into
between HealthTronics, Inc. (the Corporation) and _________ (the
Holder) in connection with the grant of an Incentive Stock Option under the
HealthTronics, Inc. 2004 Equity Incentive Plan (as amended, the Plan) on
_________ (the Grant Date).

W
I T N E S S E T H:

WHEREAS,
the Holder is an eligible Participant and the Corporation desires to grant an Incentive
Stock Option represented by this Agreement to the Holder as an incentive to remain in the
service of the Corporation and to extend to the Holder the opportunity to acquire a
proprietary interest in the Corporation so that the Holder will apply the Holders
best efforts for the benefit of the Corporation.

WHEREAS,
the Corporation desires to grant the Holder an Incentive Stock Option to purchase shares
of Common Stock, no par value (Stock), of the Corporation, pursuant to the
terms and conditions set forth in the Plan and in this Agreement.

NOW,
THEREFORE, in consideration of these premises, the parties agree that the following shall
constitute the Agreement between the Corporation and the Holder:

|1. |  | Definitions. For purposes of this Agreement, each capitalized term not
               otherwise defined in this Agreement shall have the meaning set forth in the
               Plan.
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|2. |  | Grant of Incentive Stock Option. Subject to the terms and conditions set
               forth in the Plan and in this Agreement, the Corporation hereby grants to the
               Holder an Incentive Stock Option, which shall entitle the Holder to purchase
               from the Corporation during the ten year period ending _________, _________
               (_________) shares of Stock at a price of $_____ per share, which is the Fair
               Market Value on the Grant Date, subject to adjustment as provided in the Plan.
               This Incentive Stock Option is intended to qualify as an incentive stock option
               to the full extent permitted under Section 422(b) of the Internal Revenue Code
               of 1986, as amended, and to the extent this Incentive Stock Option does not
               qualify as an Incentive Stock Option it shall be considered a non-qualified
               stock option. Participant acknowledges and agrees that the Corporation is making
               no representation or warranty that this Incentive Stock Option qualifies as an
               Incentive Stock Option and that the Corporation is not obligated to take any
               action or refrain from taking any action in order to cause this Incentive Stock
               Option to continue to qualify as an Incentive Stock Option. This Incentive Stock
               Option vests according to the following schedule:
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Amount
of Shares      Date of Vesting

| | This
Incentive Stock Option shall terminate 90 days after the Holder ceases to be an eligible
Participant including, without limitation, as a result of the termination of
Participants employment for any reason. Notwithstanding the foregoing, if the Holder
ceases to be an eligible Participant by reason of disability or death, then the Holder
shall have the right for 12 months after the date of disability or death to exercise this
Incentive Stock Option to the extent this Incentive Stock Option was exercisable on the
date of such disability or death.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | Notice of Exercise. This Incentive Stock Option may be exercised, in
               whole or in part, from time to time, in accordance with the provisions of the
               Plan and this paragraph, but only to the extent this Incentive Stock Option is
               vested as of such time, by written notice to the Corporation at the address
               provided below, which notice shall:
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| | (a)  specify
the grant date of this Incentive Stock Option being exercised, the number of whole shares
of Stock to be purchased and the exercise price to be paid therefor;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)  if
the person exercising this Incentive Stock Option is not the Holder, contain or be
accompanied by evidence satisfactory to the Administrator of such persons right to
exercise this Incentive Stock Option; and
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)  be
accompanied by payment in full of the exercise price in the form of (i) cash or by
certified or cashiers check payable to the order of the Corporation, or by payment
of other Shares which have a Fair Market Value on the date of surrender of such Shares
equal to the aggregate exercise price of the Stock as to which this Incentive Stock Option
is exercised, or (ii) a cashless exercise by payment of shares of Stock acquired by
exercise of this Incentive Stock Option having a Fair Market Value on the date of such
exercise equal to the aggregate exercise price for all the Stock acquired by such
exercise, or (iii) with the consent of the Administrator, in any other form permitted
under the Plan.
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|4. |  | Exercise of Incentive Stock Option. The Holder represents that the shares
               of Stock acquired upon exercise of this Incentive Stock Option shall be acquired
               for the Holders own account for investment only and not with a view to, or
               for resale in connection with, any distribution or public offering thereof
               within the meaning of the Securities Act of 1933, as amended (the
               Act), or other applicable federal or state securities laws. If the
               Administrator so determines, any stock certificates issued upon exercise of this
               Incentive Stock Option shall bear a legend to the effect that the shares have
               been so acquired. The Corporation may, but in no event shall be required to,
               bear any expenses of complying with the Act, other applicable securities laws,
               or the rules and regulations of any national securities exchange or other
               regulatory authority in connection with the registration, qualification or
               transfer, as the case may be, of any shares of Stock acquired upon the exercise
               of this Incentive Stock Option. The foregoing restrictions on the transfer of
               the shares of Stock shall be inoperative if (a) the Corporation has been
               previously furnished with an opinion of counsel, satisfactory to it, to the
               effect that such transfer will not involve any violation of the Act or other
               applicable federal or state securities laws, or (b) such transfer of the
               shares shall have been fully registered in compliance with the Act and other
               applicable securities laws.
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|5. |  | Transferability of Incentive Stock Option. This Incentive Stock Option
               shall not be transferable except by will or by the laws of descent and
               distribution upon the death of the Holder. During the Holders lifetime,
               this Incentive Stock Option may be exercised only by the Holder or by the
               Holders guardian or legal representative. No assignment or transfer of
               this Incentive Stock Option, whether voluntary or involuntary, by operation of
               law or otherwise, except a transfer by will or by the laws of descent and
               distribution upon the death of the Holder, shall vest in the assignee or
               transferee any interest or right whatsoever in this Incentive Stock Option.
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|6. |  | No Rights as Stockholder. The Holder shall not be deemed a stockholder of
               the Corporation with respect to any of the shares subject to this Incentive
               Stock Option, except to the extent that such shares shall have been issued to
               the Holder. The Corporation shall not be required to issue any certificates for
               shares purchased upon exercise of this Incentive Stock Option until all
               applicable requirements of law have been complied with and such shares shall
               have been duly qualified for trading or listed on any quotations system or
               securities exchange on which the Stock may then be trading or listed.
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|7. |  | Limitation on Rights. This Incentive Stock Option shall not confer on the
               Holder any right to continue as an eligible Participant, or affect the
               Corporations right to terminate the Holders service at any time, and
               nothing contained herein shall be deemed a waiver or modification of any
               provision contained in any agreement between the Holder and the Corporation or
               any of its subsidiaries. This Incentive Stock Option shall not affect the right
               of the Corporation or any subsidiary thereof to reclassify, recapitalize or
               otherwise change its capital or debt structure or to merge, consolidate, convey
               any or all of its assets, dissolve, liquidate, windup or otherwise reorganize.
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|8. |  | Administrators Powers. The Administrator shall have all of the
               powers set forth in the Plan, including, without limitation, the power to
               construe the terms of this Agreement and the Plan and to make all other
               determinations and perform all other acts necessary or advisable for
               administering the Plan. Any determination made by the Administrator shall be
               final, binding and conclusive on the Holder.
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|9. |  | Plan Terms Control. The Holder acknowledges and agrees that the Holder
               has received a copy of the Plan and agrees to be bound by all the terms and
               provisions of the Plan, regardless of whether such terms and provisions have
               been set forth in this Agreement. The Holder further acknowledges and agrees
               that the terms and provisions of this Agreement are governed by the terms and
               provisions of the Plan, and in the case of any inconsistency between the terms
               and provisions of this Agreement and the terms and provisions of the Plan, the
               terms and provisions of the Plan shall control.
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|10. |  | Notice. Whenever any notice is required or permitted hereunder, such
               notice must be in writing and personally delivered or sent by mail. Any notice
               required or permitted to be delivered hereunder shall be deemed to be delivered
               on the date which it is personally delivered, or, whether actually received or
               not, on the third business day after it is deposited in the United States mail,
               certified or registered, postage prepaid, addressed to the person who is to
               receive it at the address which such person has theretofore specified by written
               notice delivered in accordance herewith. The Corporation or Holder may change,
               at any time and from time to time, by written notice to the other, the address
               previously specified for receiving notices. Until changed in accordance
               herewith, the Corporation and the Holder specify their respective addresses as
               set forth below:
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|Corporation:                        
                                       
                                       
Holder: | HealthTronics, Inc.
 9825 Spectrum Drive, Building 3
 Austin, TX 78717
 _________________________________
 _________________________________
 _________________________________
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|11. |  | Headings. The titles and headings of the paragraphs are included for
               convenience or reference only and are not to be considered in construction of
               the provisions hereof.
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|12. |  | Entire Agreement and Amendments. This Agreement and the Plan embodies the
               entire agreement and understanding between the parties hereto relating to the
               subject matter hereof and supersedes any prior arrangements and understandings
               relating to the subject matter hereof. This Agreement may be amended, modified
               or superseded, and any of the terms and provisions hereof may be waived, but
               only by a written instrument executed by the parties hereto.
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|13. |  | Governing Law. All questions arising with respect to the provisions of
               the Plan or this Agreement shall be determined by application of the laws of the
               State of Texas, except to the extent that Texas law is preempted by federal law.
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IN
WITNESS WHEREOF, the Corporation and the Holder have executed this Agreement as of the
date first written above.

| |  | HEALTHTRONICS, INC.
By: _______________________________________________
Name: _____________________________________________
Title:______________________________________________
Holder: ____________________________________________
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