Document:

<PAGE>
                                                                    Exhibit 10.3

                               VISX, INCORPORATED

                                 1995 STOCK PLAN

                          (AS AMENDED NOVEMBER 9, 2004)

      1. Purposes of the Plan. The purposes of this Stock Plan are:

            -     to attract and retain the best available personnel for
                  positions of substantial responsibility,

            -     to provide additional incentive to Employees and Consultants,
                  and

            -     to promote the success of the Company's business.

Options granted under the Plan may be Incentive Stock Options or Nonstatutory
Stock Options, as determined by the Administrator at the time of grant. Stock
Rights may also be granted under the Plan.

      2. Definitions. As used herein, the following definitions shall apply:

            (a) "Administrator" means the Board or any of its Committees as
shall be administering the Plan, in accordance with Section 4 of the Plan.

            (b) "Applicable Laws" means the legal requirements relating to the
administration of stock option plans under state corporate and securities laws
and the Code.

            (c) "Board" means the Board of Directors of the Company.

            (d) "Code" means the Internal Revenue Code of 1986, as amended.

            (e) "Committee" means a Committee appointed by the Board in
accordance with Section 4 of the Plan.

            (f) "Common Stock" means the Common Stock of the Company.

            (g) "Company" means VISX, Incorporated, a Delaware corporation.

            (h) "Consultant" means any person, including an advisor, engaged by
the Company or a Parent or Subsidiary to render services and who is compensated
for such services. The term "Consultant" shall not include Directors who are
paid only a director's fee by the Company or who are not compensated by the
Company for their services as Directors.

            (i) "Continuous Status as an Employee or Consultant" means that the
employment or consulting relationship with the Company, any Parent, or
Subsidiary, is not interrupted or terminated. Continuous Status as an Employee
or Consultant shall not be considered
<PAGE>
interrupted in the case of (i) any leave of absence approved by the Company or
(ii) transfers between locations of the Company or between the Company, its
Parent, any Subsidiary, or any successor. A leave of absence approved by the
Company shall include sick leave, military leave, or any other personal leave
approved by an authorized representative of the Company. For purposes of
Incentive Stock Options, no such leave may exceed ninety days, unless
reemployment upon expiration of such leave is guaranteed by statute or contract.
If reemployment upon expiration of a leave of absence approved by the Company is
not so guaranteed, on the 181st day of such leave any Incentive Stock Option
held by the Optionee shall cease to be treated as an Incentive Stock Option and
shall be treated for tax purposes as a Nonstatutory Stock Option.

            (j) "Director" means a member of the Board.

            (k) "Disability" means total and permanent disability as defined in
Section 22(e)(3) of the Code.

            (l) "Employee" means any person, including Officers and Directors,
employed by the Company or any Parent or Subsidiary of the Company. Neither
service as a Director nor payment of a director's fee by the Company shall be
sufficient to constitute "employment" by the Company.

            (m) "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            (n) "Fair Market Value" means, as of any date, the value of Common
Stock determined as follows:

                  (i) If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market of the National Association of Securities Dealers, Inc.
Automated Quotation ("NASDAQ") System, the Fair Market Value of a Share of
Common Stock shall be the closing sales price for such stock (or the closing
bid, if no sales were reported) as quoted on such system or exchange (or the
exchange with the greatest volume of trading in Common Stock) on the last market
trading day prior to the day of determination, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable;

                  (ii) If the Common Stock is quoted on the NASDAQ System (but
not on the Nasdaq National Market thereof) or is regularly quoted by a
recognized securities dealer but selling prices are not reported, the Fair
Market Value of a Share of Common Stock shall be the mean between the high bid
and low asked prices for the Common Stock on the last market trading day prior
to the day of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable;

                  (iii) In the absence of an established market for the Common
Stock, the Fair Market Value shall be determined in good faith by the
Administrator.

            (o) "Incentive Stock Option" means an Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

                                      -2-
<PAGE>
            (p) "Nonstatutory Stock Option" means an Option not intended to
qualify as an Incentive Stock Option.

            (q) "Notice of Grant" means a written notice evidencing certain
terms and conditions of an individual Option or Stock Right grant. In the case
of Options, the Notice of Grant is part of the Option Agreement.

            (r) "Officer" means a person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated

            (s) "Option" means a stock option granted pursuant to the Plan.

            (t) "Option Agreement" means a written agreement between the Company
and an Optionee evidencing the terms and conditions of an individual Option
grant. The Option Agreement is subject to the terms and conditions of the Plan.

            (u) "Optioned Stock" means the Common Stock subject to an Option or
Stock Right.

            (v) "Optionee" means an Employee or Consultant who holds an
outstanding Option or Stock Right.

            (w) "Parent" means a "parent corporation", whether now or hereafter
existing, as defined in Section 424(e) of the Code.

            (x) "Plan" means this 1995 Stock Plan.

            (y) "Restricted Stock" means shares of Common Stock acquired
pursuant to a grant of Stock Rights under Section 11 below.

            (z) "Restricted Stock Award Agreement" means a written agreement
between the Company and the Optionee evidencing the terms and restrictions
applying to stock awarded under a Stock Right. The Restricted Stock Award
Agreement is subject to the terms and conditions of the Plan and the Notice of
Grant.

            (aa) "Restricted Stock Purchase Agreement" means a written agreement
between the Company and the Optionee evidencing the terms and restrictions
applying to stock purchased under a Stock Right. The Restricted Stock Purchase
Agreement is subject to the terms and conditions of the Plan and the Notice of
Grant.

            (bb) "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any
successor to Rule 16b-3, as in effect when discretion is being exercised with
respect to the Plan.

            (cc) "Section 16(b)" means Section 16(b) of the Securities Exchange
Act of 1934, as amended.

                                      -3-
<PAGE>
            (dd) "Share" means a share of the Common Stock, as adjusted in
accordance with Section 13 of the Plan.

            (ee) "Stock Right" means the right to purchase or receive as an
award Common Stock pursuant to Section 11 of the Plan, as evidenced by a Notice
of Grant.

            (ff) "Subsidiary" means a "subsidiary corporation", whether now or
hereafter existing, as defined in Section 424(f) of the Code.

      3. Stock Subject to the Plan. Subject to the provisions to Section 11 of
the Plan, the total number of Shares reserved and available for issuance under
the Plan is 10% of the Shares issued and outstanding on the date of adoption of
the Plan, less the number of Shares issued under the VISX. Incorporated 1996
Supplemental Stock Option Plan prior to the date the Plan is approved by the
Company's shareholders, which number shall be increased on the first day of each
new fiscal year of the Company from and including the 1996 fiscal year by a
number of Shares equal to 3% of the number of Shares outstanding as of the last
business day preceding each such first day of each new fiscal year. However,
notwithstanding the preceding sentence, the maximum number of Shares available
for issuance pursuant to Incentive Stock Options is 10% of the Shares issued and
outstanding on the date of adoption of the Plan, less the number of Shares
issued under the VISX. Incorporated 1996 Supplemental Stock Option Plan prior to
the date the Plan is approved by the Company's shareholders, which number shall
be increased on the first day of each new fiscal year of the Company from and
including the 1996 fiscal year by a number of Shares equal to 3% of the number
of Shares outstanding as of the date of adoption of the Plan.

            If an Option or Stock Right expires or becomes unexercisable without
having been exercised in full, the unpurchased Shares which were subject thereto
shall become available for future grant or sale under the Plan (unless the Plan
has terminated); provided, however, that Shares that have actually been issued
under the Plan, whether upon exercise of an Option or Right, shall not be
returned to the Plan and shall not become available for future distribution
under the Plan, except that if Shares of Restricted Stock are repurchased or
reacquired by the Company at their original purchase price, and the original
purchaser of such Shares did not receive any benefits of ownership of such
Shares, such Shares shall become available for future grant under the Plan. For
purposes of the preceding sentence, voting rights shall not be considered a
benefit of Share ownership.

      4. Administration of the Plan.

            (a) Procedure.

                  (i) Multiple Administrative Bodies. If permitted by Rule
16b-3, the Plan may be administered by different bodies with respect to
Directors, Officers who are not Directors, and Employees who are neither
Directors nor Officers.

                  (ii) Administration With Respect to Directors and Officers
Subject to Section 16(b). With respect to Option or Stock Right grants made to
Employees who are also Officers or Directors subject to Section 16(b) of the
Exchange Act, the Plan shall be administered by (A) the Board, if the Board may
administer the Plan in a manner complying with the rules under

                                      -4-
<PAGE>
Rule 16b-3 relating to the disinterested administration of employee benefit
plans under which Section 16(b) exempt discretionary grants and awards of equity
securities are to be made, or (B) a committee designated by the Board to
administer the Plan, which committee shall be constituted to comply with the
rules under Rule 16b-3 relating to the disinterested administration of employee
benefit plans under which Section 16(b) exempt discretionary grants and awards
of equity securities are to be made. Once appointed, such Committee shall
continue to serve in its designated capacity until otherwise directed by the
Board. From time to time the Board may increase the size of the Committee and
appoint additional members, remove members (with or without cause) and
substitute new members, fill vacancies (however caused), and remove all members
of the Committee and thereafter directly administer the Plan, all to the extent
permitted by the rules under Rule 16b-3 relating to the disinterested
administration of employee benefit plans under which Section 16(b) exempt
discretionary grants and awards of equity securities are to be made.

                  (iii) Administration With Respect to Other Persons. With
respect to Option or Stock Right grants made to Employees or Consultants who are
neither Directors nor Officers of the Company, the Plan shall be administered by
(A) the Board or (B) a committee designated by the Board, which committee shall
be constituted to satisfy Applicable Laws. Once appointed, such Committee shall
serve in its designated capacity until otherwise directed by the Board. The
Board may increase the size of the Committee and appoint additional members,
remove members (with or without cause) and substitute new members, fill
vacancies (however caused), and remove all members of the Committee and
thereafter directly administer the Plan, all to the extent permitted by
Applicable Laws.

            (b) Powers of the Administrator. Subject to the provisions of the
Plan, and in the case of a Committee, subject to the specific duties delegated
by the Board to such Committee, the Administrator shall have the authority, in
its discretion:

                  (i) to determine the Fair Market Value of the Common Stock, in
accordance with Section 2(n) of the Plan;

                  (ii) to select the Consultants and Employees to whom Options
and Stock Rights may be granted hereunder;

                  (iii) to determine whether and to what extent Options and
Stock Rights or any combination thereof, are granted hereunder;

                  (iv) to determine the number of shares of Common Stock to be
covered by each Option and Stock Right granted hereunder;

                  (v) to approve forms of agreement for use under the Plan;

                  (vi) to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any award granted hereunder. Such terms and
conditions include, but are not limited to, the exercise price, the time or
times when Options or Stock Rights may be exercised (which may be based on
performance criteria), any vesting acceleration or waiver of forfeiture
restrictions, and any restriction or limitation regarding any Option or Stock
Right or the shares of Common Stock

                                      -5-
<PAGE>
relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine;

                  (vii) to construe and interpret the terms of the Plan and
awards granted pursuant to the Plan;

                  (viii) to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

                  (ix) to modify or amend each Option or Stock Right (subject to
Section 15(c) of the Plan), including the discretionary authority to extend the
post-termination exercisability period of Options longer than is otherwise
provided for in the Plan;

                  (x) to authorize any person to execute on behalf of the
Company any instrument required to effect the grant of an Option or Stock Right
previously granted by the Administrator;

                  (xi) to determine the terms and restrictions applicable to
Options and Stock Rights and any Restricted Stock; and

                  (xii) to make all other determinations deemed necessary or
advisable for administering the Plan.

            (c) Effect of Administrator's Decision. The Administrator's
decisions, determinations and interpretations shall be final and binding on all
Optionees and any other holders of Options or Stock Rights.

      5. Eligibility. Nonstatutory Stock Options and Stock Rights may be granted
to Employees and Consultants. Incentive Stock Options may be granted only to
Employees. If otherwise eligible, an Employee or Consultant who has been granted
an Option or Stock Right may be granted additional Options or Stock Rights.

      6. Limitations.

            (a) Each Option shall be designated in the written option agreement
as either an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds S 100.000, such
Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 6(a), Incentive Stock Options shall be taken into account in the order
in which they were granted. The Fair Market Value of the Shares shall be
determined as of the time the Option with respect to such Shares is granted.

            (b) Neither the Plan nor any Option or Stock Right shall confer upon
an Optionee any right with respect to continuing the Optionee's employment or
consulting relationship with the

                                      -6-
<PAGE>
Company, nor shall they interfere in any way with the Optionee's right or the
Company's right to terminate such employment or consulting relationship at any
time, with or without cause.

            (c) The following limitations shall apply to grants of Options and
Stock Rights to Employees:

                  (i) No Employee shall be granted, in any fiscal year of the
Company, Options and Stock Rights to purchase more than 500,000 Shares.

                  (ii) In connection with his or her initial employment, an
Employee may be granted Options and Stock Rights to purchase up to an additional
500,000 Shares which shall not count against the limit set forth in subsection
(i) above.

                  (iii) The foregoing limitations shall be adjusted
proportionately in connection with any change in the Company's capitalization as
described in Section 13.

      7. Term of Plan. Subject to Section 19 of the Plan, the Plan shall become
effective upon the earlier to occur of its adoption by the Board or its approval
by the stockholders of the Company as described in Section 19 of the Plan. It
shall continue in effect for a term of five (5) years unless terminated earlier
under Section 15 of the Plan.

      8. Term of Option. The term of each Option shall be stated in the Notice
of Grant; provided, however, that in the case of an Incentive Stock Option, the
term shall be ten (10) years from the date of grant or such shorter term as may
be provided in the Notice of Grant. Moreover, in the case of an Incentive Stock
Option granted to an Optionee who, at the time the Incentive Stock Option is
granted, owns stock representing more than ten percent (10%) of the voting power
of all classes of stock of the Company or any Parent or Subsidiary, the term of
the Incentive Stock Option shall be five (5) years from the date of grant or
such shorter term as may be provided in the Notice of Grant.

      9. Option Exercise Price and Consideration.

            (a) Exercise Price. The per share exercise price for the Shares to
be issued pursuant to exercise of an Option shall be determined by the
Administrator, subject to the following:

                  (i) In the case of an Incentive Stock Option

                        (A) granted to an Employee who, at the time the
Incentive Stock Option is granted, owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent
or Subsidiary, the per Share exercise price shall be no less than 110% of the
Fair Market Value per Share on the date of grant.

                        (B) granted to any Employee other than an Employee
described in paragraph (A) immediately above, the per Share exercise price shall
be no less than 100% of the Fair Market Value per Share on the date of grant.

                                      -7-
<PAGE>
                 (ii) In the case of a Nonstatutory Stock Option, the per Share
exercise price shall be determined by the Administrator.

            (b) Waiting Period and Exercise Dates. At the time an Option is
granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions which must be satisfied before the
Option may be exercised. In so doing, the Administrator may specify that an
Option may not be exercised until the completion of a service period.

            (c) Form of Consideration. The Administrator shall determine the
acceptable form of consideration for exercising an Option, including the method
of payment. In the case of an Incentive Stock Option, the Administrator shall
determine the acceptable form of consideration at the time of grant. Such
consideration may consist entirely of:

                  (i) cash;

                  (ii) check;

                  (iii) promissory note;

                  (iv) other Shares which (A) in the case of Shares acquired
upon exercise of an option, have been owned by the Optionee for more than six
months on the date of surrender, and (B) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised;

                  (v) delivery of a properly executed exercise notice together
with such other documentation as the Administrator and the broker, if
applicable, shall require to effect an exercise of the Option and delivery to
the Company of the sale or loan proceeds required to pay the exercise price;

                  (vi) a reduction in the amount of any Company liability to the
Optionee, including any liability attributable to the Optionee's participation
in any Company-sponsored deferred compensation program or arrangement;

                  (vii) any combination of the foregoing methods of payment: or

                  (viii) such other consideration and method of payment for the
issuance of Shares to the extent permitted by Applicable Laws.

      10. Exercise of Option.

            (a) Procedure for Exercise; Rights as a Stockholder. Any Option
granted hereunder shall be exercisable according to the terms of the Plan and at
such times and under such conditions as determined by the Administrator and set
forth in the Option Agreement.

            An Option may not be exercised for a fraction of a Share.

                                      -8-
<PAGE>
            An Option shall be deemed exercised when the Company receives: (i)
written notice of exercise (in accordance with the Option Agreement) from the
person entitled to exercise the Option, and (ii) full payment for the Shares
with respect to which the Option is exercised. Full payment may consist of any
consideration and method of payment authorized by the Administrator and
permitted by the Option Agreement and the Plan. Shares issued upon exercise of
an Option shall be issued in the name of the Optionee or, if requested by the
Optionee, in the name of the Optionee and his or her spouse. Until the stock
certificate evidencing such Shares is issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such
stock certificate promptly after the Option is exercised. No adjustment will be
made for a dividend or other right for which the record date is prior to the
date the stock certificate is issued, except as provided in Section 13 of the
Plan.

            Exercising an Option in any manner shall decrease the number of
Shares thereafter available, both for purposes of the Plan and for sale under
the Option, by the number of Shares as to which the Option is exercised.

            (b) Termination of Employment or Consulting Relationship. Upon
termination of an Optionee's Continuous Status as an Employee or Consultant,
other than upon the Optionee's death or Disability, the Optionee may exercise
his or her Option, but only within such period of time as is specified in the
Notice of Grant, and only to the extent that the Optionee was entitled to
exercise it at the date of termination (but in no event later than the
expiration of the term of such Option as set forth in the Notice of Grant). In
the absence of a specified time in the Notice of Grant, the Option shall remain
exercisable for three (3) months following the Optionee's termination. In the
case of an Incentive Stock Option, such period of time for exercise shall not
exceed three (3) months from the date of termination. If, on the date of
termination, the Optionee is not entitled to exercise the Optionee's entire
Option, the Shares covered by the unexercisable portion of the Option shall
revert to the Plan. If, after termination, the Optionee does not exercise his or
her Option within the time specified by the Administrator, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

            Notwithstanding the above, in the event of an Optionee's change in
status from Consultant to Employee or Employee to Consultant, an Optionee's
Continuous Status as an Employee or Consultant shall not automatically terminate
solely as a result of such change in status. However, in such event, an
Incentive Stock Option held by the Optionee shall cease to be treated as an
Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory
Stock Option three months and one day following such change of status.

            (c) Disability of Optionee. In the event that an Optionee's
Continuous Status as an Employee or Consultant terminates as a result of the
Optionee's Disability, the Optionee may exercise his or her Option at any time
within twelve (12) months from the date of such termination, but only to the
extent that the Optionee was entitled to exercise it at the date of such
termination (but in no event later than the expiration of the term of such
Option as set forth in the Notice of Grant). If, at the date of termination, the
Optionee is not entitled to exercise his or her entire Option, the Shares
covered by the unexercisable portion of the Option shall revert to the Plan. If,
after

                                      -9-
<PAGE>
termination, the Optionee does not exercise his or her Option within the time
specified herein, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan.

            (d) Death of Optionee. In the event of the death of an Optionee, the
Option may be exercised at any time within twelve (12) months following the date
of death (but in no event later than the expiration of the term of such Option
as set forth in the Notice of Grant), by the Optionee's estate or by a person
who acquired the right to exercise the Option by bequest or inheritance, but
only to the extent that the Optionee was entitled to exercise the Option at the
date of death. If, at the time of death, the Optionee was not entitled to
exercise his or her entire Option, the Shares covered by the unexercisable
portion of the Option shall immediately revert to the Plan. If, after death, the
Optionee's estate or a person who acquired the right to exercise the Option by
bequest or inheritance does not exercise the Option within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

            (e) Rule 16b-3. Options granted to individuals subject to Section 16
of the Exchange Act ("Insiders") must comply with the applicable provisions of
Rule 16b-3 and shall contain such additional conditions or restrictions as may
be required thereunder to qualify for the maximum exemption from Section 16 of
the Exchange Act with respect to Plan transactions.

      11. Stock Rights.

            (a) Rights to Purchase. Stock Rights may be issued either alone, in
addition to, or in tandem with other awards granted under the Plan and/or cash
awards made outside of the Plan. After the Administrator determines that it will
offer Stock Rights under the Plan, it shall advise the offeree in writing, by
means of a Notice of Grant, of the terms, conditions and restrictions related to
the offer, including the number of Shares that the offeree shall be entitled to
purchase or receive, the price to be paid (if any), and the time within which
the offeree must accept such offer, which shall in no event exceed six (6)
months from the date upon which the Administrator made the determination to
grant the Stock Right. The offer shall be accepted by execution of a Restricted
Stock Award Agreement or a Restricted Stock Purchase Agreement in such form as
the Administrator shall determine and if so required by the Administrator. The
number of Shares subject to grants of Stock Rights shall not exceed five percent
(5%) of the total number of Shares authorized under the Plan.

            (b) Repurchase/Reacquisition Option. Unless the Administrator
determines otherwise, the Restricted Stock Award Agreement or the Restricted
Stock Purchase Agreement, as the case may be, shall grant the Company a
repurchase or reacquisition option exercisable upon the voluntary or involuntary
termination of the purchaser's employment with the Company for any reason
(including death or Disability). The purchase price for Shares repurchased
pursuant to the Restricted Stock Purchase Agreement shall be the Fair Market
Value of the Shares at the date of grant of the Stock Right and may be paid by
cancellation of any indebtedness of the purchaser to the Company. Reacquisition
of Shares pursuant to the Restricted Stock Award Agreement shall require no
consideration to be paid by the Company. The repurchase/reacquisition option
shall lapse at a rate determined by the Administrator.

            (c) Rule 16b-3. Stock Rights granted to Insiders, and Shares
purchased or received by Insiders in connection with Stock Rights, shall be
subject to any restrictions applicable

                                      -10-
<PAGE>
thereto in compliance with Rule 16b-3. An Insider may only purchase Shares
pursuant to the grant of a Stock Right, and may only sell Shares purchased
pursuant to the grant of a Stock Right, during such time or times as are
permitted by Rule 16b-3.

            (d) Other Provisions. The Restricted Stock Award Agreement or the
Restricted Stock Purchase Agreement, as applicable, shall contain such other
terms, provisions and conditions not inconsistent with the Plan as may be
determined by the Administrator in its sole discretion. In addition, the
provisions of Restricted Stock Award Agreements and Restricted Stock Purchase
Agreements need not be the same with respect to each purchaser.

            (e) Rights as a Stockholder. Once the Stock Right is exercised, the
purchaser shall have the rights equivalent to those of a stockholder, and shall
be a stockholder when his or her purchase is entered upon the records of the
duly authorized transfer agent of the Company. No adjustment will be made for a
dividend or other right for which the record date is prior to the date the Stock
Right is exercised, except as provided in Section 13 of the Plan.

      12. Non-Transferability of Options and Stock Rights. An Option or Stock
Right may not be sold, pledged, assigned, hypothecated, transferred, or disposed
of in any manner other than by will or by the laws of descent or distribution
and may be exercised, during the lifetime of the Optionee, only by the Optionee.

      13. Adjustments Upon Changes in Capitalization, Dissolution, Merger or
Asset Sale.

            (a) Changes in Capitalization. Subject to any required action by the
stockholders of the Company, the number of shares of Common Stock covered by
each outstanding Option and Stock Right, and the number of shares of Common
Stock which have been authorized for issuance under the Plan but as to which no
Options or Stock Rights have yet been granted or which have been returned to the
Plan upon cancellation or expiration of an Option or Stock Right, as well as the
price per share of Common Stock covered by each such outstanding Option or Stock
Right, shall be proportionately adjusted for any increase or decrease in the
number of issued shares of Common Stock resulting from a stock split, reverse
stock split, stock dividend, combination or reclassification of the Common
Stock, or any other increase or decrease in the number of issued shares of
Common Stock effected without receipt of consideration by the Company; provided,
however, that conversion of any convertible securities of the Company shall not
be deemed to have been "effected without receipt of consideration." Such
adjustment shall be made by the Board, whose determination in that respect shall
be final, binding and conclusive. Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of shares
of Common Stock subject to an Option or Stock Right.

            (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, to the extent that an Option or Stock
Right has not been previously exercised, it will terminate immediately prior to
the consummation of such proposed action. The Board may, in the exercise of its
sole discretion in such instances, declare that any Option or Stock Right shall
terminate as of a date fixed by the Board and give each Optionee the right to
exercise his

                                      -11-
<PAGE>
or her Option or Stock Right as to all or any part of the Optioned Stock,
including Shares as to which the Option or Stock Right would not otherwise be
exercisable.

            (c) Merger or Asset Sale. Subject to Section 13(d), in the event of
a merger of the Company with or into another corporation, or the sale of
substantially all of the assets of the Company, each outstanding Option and
Stock Right shall be assumed or an equivalent option or right substituted by the
successor corporation or a Parent or Subsidiary of the successor corporation. In
the event that the successor corporation refuses to assume or substitute for the
Option or Stock Right, the Optionee shall have the right to exercise the Option
or Stock Right as to all of the Optioned Stock, including Shares as to which it
would not otherwise be exercisable. If an Option or Stock Right is exercisable
in lieu of assumption or substitution in the event of a merger or sale of
assets, the Administrator shall notify the Optionee that the Option or Stock
Right shall be fully exercisable for a period of fifteen (15) days from the date
of such notice, and the Option or Stock Right shall terminate upon the
expiration of such period. For the purposes of this paragraph, the Option or
Stock Right shall be considered assumed if, following the merger or sale of
assets, the option or right confers the right to purchase or receive, for each
Share of Optioned Stock subject to the Option or Stock Right immediately prior
to the merger or sale of assets, the consideration (whether stock, cash, or
other securities or property) received in the merger or sale of assets by
holders of Common Stock for each Share held on the effective date of the
transaction (and if holders were offered a choice of consideration, the type of
consideration chosen by the holders of a majority of the outstanding Shares);
provided, however, that if such consideration received in the merger or sale of
assets was not solely common stock of the successor corporation or its Parent,
the Administrator may, with the consent of the successor corporation, provide
for the consideration to be received upon the exercise of the Option or Stock
Right, for each Share of Optioned Stock subject to the Option or Stock Right, to
be solely common stock of the successor corporation or its Parent equal in fair
market value to the per share consideration received by holders of Common Stock
in the merger or sale of assets.

            (d) Change of Control. In the event of a Change of Control (as
defined below), the Optionee shall fully vest in and have the right to exercise
the Option or Stock Right as to all of the Optioned Stock, including Shares as
to which it would not otherwise be vested or exercisable.

            A "Change of Control" means the occurrence of any of the following
events:

                  (i) any "person." as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
other than the Company, a subsidiary of the Company or a Company employee
benefit plan, including any trustee of such plan acting as trustee, is or
becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing twenty
percent (20%) or more of the combined voting power of the Company's then
outstanding securities entitled to vote generally in the election of directors;
or

                  (ii) the stockholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity)

                                      -12-
<PAGE>
at least fifty percent (50%) of the total voting power represented by the voting
securities of the Company or such surviving entity outstanding immediately after
such merger or consolidation, or the stockholders of the Company approve an
agreement for the sale or disposition by the Company of all or substantially all
the Company's assets; or

                  (iii) a change in the composition of the Board of Directors of
the Company, as a result of which fewer than a majority of the directors are
Incumbent Directors. "Incumbent Directors" shall mean directors who either (A)
are directors of the Company as of the date this amendment to the Plan is
approved by the Board of Directors, or (B) are elected, or nominated for
election, to the Board of Directors of the Company with the affirmative votes of
at least a majority of the Incumbent Directors and whose election or nomination
was not in connection with any transaction described in (i) or (ii) above or in
connection with an actual or threatened proxy contest relating to the election
of directors of the Company.

      14. Date of Grant. The date of grant of an Option or Stock Right shall be,
for all purposes, the date on which the Administrator makes the determination
granting such Option or Stock Right, or such other later date as is determined
by the Administrator. Notice of the determination shall be provided to each
Optionee within a reasonable time after the date of such grant.

      15. Amendment and Termination of the Plan.

            (a) Amendment and Termination. The Board may at any time amend,
alter, suspend or terminate the Plan.

            (b) Stockholder Approval. The Company shall obtain stockholder
approval of any Plan amendment to the extent necessary and desirable to comply
with Rule 16b-3 or with Section 422 of the Code (or any successor Rule or
statute or other applicable law, Rule or regulation, including the requirements
of any exchange or quotation system on which the Common Stock is listed or
quoted). Such stockholder approval, if required, shall be obtained in such a
manner and to such a degree as is required by the applicable law, Rule or
regulation.

            (c) Effect of Amendment or Termination. No amendment, alteration,
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.

      16. Conditions Upon Issuance of Shares.

            (a) Legal Compliance. Shares shall not be issued pursuant to the
exercise of an Option or Stock Right unless the exercise of such Option or Stock
Right and the issuance and delivery of such Shares shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, Applicable Laws, and the requirements of any stock exchange or
quotation system upon which the Shares may then be listed or quoted, and shall
be further subject to the approval of counsel for the Company with respect to
such compliance.

                                      -13-
<PAGE>
            (b) Investment Representations. As a condition to the exercise of an
Option or Stock Right, the Company may require the person exercising such Option
or Stock Right to represent and warrant at the time of any such exercise that
the Shares are being purchased only for investment and without any present
intention to sell or distribute such Shares if, in the opinion of counsel for
the Company, such a representation is required.

      17. Liability of Company.

            (a) Inability to Obtain Authority. The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any Shares hereunder. Shall relieve the Company of any liability in
respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

            (b) Grants Exceeding Allotted Shares. If the Optioned Stock covered
by an Option or Stock Right exceeds, as of the date of grant, the number of
Shares which may be issued under the Plan without additional stockholder
approval, such Option or Stock Right shall be void with respect to such excess
Optioned Stock, unless stockholder approval of an amendment sufficiently
increasing the number of Shares subject to the Plan is timely obtained in
accordance with Section 15(b) of the Plan.

      18. Reservation of Shares. The Company, during the term of this Plan, will
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

      19. Stockholder Approval. Continuance of the Plan shall be subject to
approval by the stockholders of the Company within twelve (12) months before or
after the date the Plan is adopted. Such stockholder approval shall be obtained
in the manner and to the degree required under applicable federal and state law.

                                    * * * * *

                                      -14-<PAGE>
                                                                    Exhibit 10.4

                               VISX, INCORPORATED

                  1995 DIRECTOR OPTION AND STOCK DEFERRAL PLAN

                   AMENDED AND RESTATED AS OF NOVEMBER 7, 2004

      1. PURPOSES OF THE PLAN. The purposes of this 1995 Director Option and
Stock Deferral Plan are to attract and retain the best available personnel for
service as Outside Directors (as defined herein) of the Company, to provide
additional incentive to the Outside Directors of the Company to serve as
Directors, and to encourage their continued service on the Board.

      All options granted hereunder shall be nonstatutory stock options. Outside
Directors may also elect to convert their annual retainer into deferred phantom
stock hereunder.

      2. DEFINITIONS. As used herein, the following definitions shall apply:

         (a) "BOARD" means the Board of Directors of the Company.

         (b) "CODE" means the Internal Revenue Code of 1986, as amended.

         (c) "COMMON STOCK" means the Common Stock of the Company.

         (d) "COMPANY" means VISX, Incorporated, a Delaware corporation.

         (e) "CONTINUOUS STATUS AS A DIRECTOR" means the absence of any
interruption or termination of service as a Director.

         (f) "DEFERRED PHANTOM STOCK" means phantom units of Company Common
Stock under the Outside Director Stock Deferral Plan.

         (g) "DIRECTOR" means a member of the Board.

         (h) "EMPLOYEE" means any person, including officers and Directors,
employed by the Company or any Parent or Subsidiary of the Company. The payment
of a Director's fee by the Company shall not be sufficient in and of itself to
constitute "employment" by the Company.

         (i) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

         (j) "FAIR MARKET VALUE" means, as of any date, the value of Common
Stock determined as follows:

            (i) If the Common Stock is listed on any established stock exchange
or a national market system, including without limitation the New York Stock
Exchange, the Fair Market Value of a Share of Common Stock shall be the closing
sales price for such stock (or the closing bid, if no sales were reported) as
quoted on such system or exchange (or the exchange with the greatest volume of
trading in Common Stock) on the day of determination, as reported in THE WALL
STREET JOURNAL or such other source as the Board deems reliable;

            (ii) If the Common Stock is quoted on any established stock exchange
or regularly quoted by a recognized securities dealer but selling prices are not
reported, the Fair Market

<PAGE>

Value of a Share of Common Stock shall be the mean between the high bid and low
asked prices for the Common Stock on the day of determination, as reported in
THE WALL STREET JOURNAL or such other source as the Board deems reliable, or;

            (iii) In the absence of an established market for the Common Stock,
the Fair Market Value thereof shall be determined in good faith by the Board.

         (k) "NEW OUTSIDE DIRECTOR" means an Outside Director who first becomes
a Director at or after the Company's 2003 annual meeting of stockholders.

         (l) "OPTION" means a stock option granted pursuant to the Plan.

         (m) "OPTIONED STOCK" means the Common Stock subject to an Option.

         (n) "OPTIONEE" means an Outside Director who receives an Option.

         (o) "OUTSIDE DIRECTOR" means a Director who is not an Employee.

         (p) "OUTSIDE DIRECTOR STOCK DEFERRAL PLAN" means the Outside Director
Stock Deferral Plan attached hereto as Appendix A.

         (q) "PARENT" means a "parent corporation", whether now or hereafter
existing, as defined in Section 424(e) of the Code.

         (r) "PLAN" means this VISX, Incorporated 1995 Director Option and Stock
Deferral Plan, including the Outside Director Stock Deferral Plan attached
hereto as Appendix A.

         (s) "QUALIFYING RETIREMENT" means an Outside Director's termination
from the Board, including pursuant to the Outside Director's death or disability
(as defined in Section 22(e)(3) of the Code), if such termination follows (i)
five full terms of Board membership and attainment of age 62 or greater, or (ii)
ten full terms of Board membership.

         (t) "SHARE" means a share of the Common Stock, as adjusted in
accordance with Section 10 of the Plan.

         (u) "SUBSIDIARY" means a "subsidiary corporation", whether now or
hereafter existing, as defined in Section 424(f) of the Code.

      3. STOCK SUBJECT TO THE PLAN. Subject to the provisions of Section 10 of
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan or deferred as Deferred Phantom Stock into the Outside Director
Stock Deferral Plan is seven hundred and seventy-five thousand (775,000) Shares
(the "Pool") of Common Stock. The Shares may be authorized but unissued, or
reacquired Common Stock.

                  If an Option should expire or become unexercisable for any
reason without having been exercised in full, the unpurchased Shares which were
subject thereto shall, unless the Plan shall have been terminated, become
available for future grant under the Plan; provided, however, that Shares that
have actually been issued under the Plan shall not be returned to the Plan and
shall not become available for future distribution under the Plan.

                                       2
<PAGE>

      4. ADMINISTRATION AND INITIAL AND ANNUAL GRANT OF OPTIONS UNDER THE PLAN.

         (a) PROCEDURE FOR INITIAL AND ANNUAL GRANTS. Outside Directors shall
receive initial and annual grants as follows:

            (i) No person shall have any discretion to select which Outside
Directors shall be granted Options or to determine the number of Shares.

            (ii) Each New Outside Director shall be automatically granted an
Option to purchase Twenty-Five Thousand (25,000) Shares (a "First Option") on
the date on which such person first becomes a Director, whether through election
by the stockholders of the Company or appointment by the Board to fill a
vacancy; provided, however, that an Employee Director who ceases to be an
Employee but who remains a Director shall not receive a First Option.

            (iii) Each Outside Director shall be automatically granted an Option
to purchase Ten Thousand (10,000) Shares (a "Subsequent Option") on the date
such Outside Director is re-elected to the Board commencing with the Company's
2003 annual meeting of stockholders, if on such date he or she shall have served
on the Board for at least six (6) months.

            (iv) The terms of a First Option granted hereunder shall be as
follows:

               (A) the term of the First Option shall be ten (10) years.

               (B) the First Option shall be exercisable only while the Outside
Director remains a Director of the Company, except as set forth in Section 9
hereof.

               (C) the exercise price per Share shall be 100% of the Fair Market
Value per Share on the date of grant of the First Option. In the event that the
date of grant of the First Option is not a trading day, the exercise price per
Share shall be the Fair Market Value on the next trading day immediately
following the date of grant of the First Option.

               (D) the First Option shall vest as to 1/3 of the Shares subject
to the First Option on each anniversary of the date of grant, so as to be 100%
vested on the third anniversary of the date of grant, subject to continued
service as an Outside Director.

            (v) The terms of a Subsequent Option granted hereunder shall be as
follows:

               (A) the term of the Subsequent Option shall be ten (10) years.

               (B) the Subsequent Option shall be exercisable only while the
Outside Director remains a Director of the Company, except as set forth in
Section 9 hereof.

               (C) the exercise price per Share shall be 100% of the Fair Market
Value per Share on the date of grant of the Subsequent Option. In the event that
the date of grant of the Subsequent Option is not a trading day, the exercise
price per Share shall be the Fair Market Value on the next trading day
immediately following the date of grant of the Subsequent Option.

               (D) the Subsequent Option shall be 100% vested upon the date of
grant.

                                       3
<PAGE>

            (vi) In the event that any Option granted under the Plan would cause
the number of Shares subject to outstanding Options plus the number of Shares
previously purchased under Options to exceed the Pool, then the remaining Shares
available for Option grant shall be granted under Options to the Outside
Directors on a pro rata basis. No further grants shall be made until such time,
if any, as additional Shares become available for grant under the Plan through
action of the stockholders to increase the number of Shares which may be issued
under the Plan or through cancellation or expiration of Options previously
granted hereunder.

      5. ELECTION TO RECEIVE ANNUAL RETAINER IN STOCK OPTIONS OR DEFERRED
PHANTOM STOCK.

         (a) IRREVOCABLE ELECTION. On the date of each annual meeting of
stockholders of the Company during the term of this Plan, commencing with the
2003 annual stockholders meeting, each Outside Director may make an election to
receive (an "Election") (i) Options in lieu of 50% or 100% of his or her annual
cash retainer for the year following the meeting or (ii) Deferred Phantom Stock
in lieu of 50% or 100% of his or her annual cash retainer for the year following
the meeting. The Election must be in writing and delivered to the Secretary of
the Company prior to the date of such annual stockholders meeting. Any Election
made by an Outside Director pursuant to this Section 5 shall be irrevocable.

         (b) RETAINER OPTION GRANTS. On the date of each annual meeting of
stockholders of the Company, each Outside Director who has made an Election to
receive Stock Options in lieu of 50% or 100% of his or her annual cash retainer
shall automatically receive a Stock Option covering the number of Shares
determined by dividing (1) the product of (a) the amount of the annual cash
retainer covered by such Election, multiplied by (b) 3, by (2) the Fair Market
Value of a Share on that date, rounded to the nearest whole Share, provided that
sufficient Shares are available under the Plan for the grant of such Stock
Option (the "Retainer Option").

            (i) The terms of a Retainer Option granted hereunder shall be as
follows:

               (A) the term of the Retainer Option shall be ten (10) years.

               (B) the Retainer Option shall be exercisable only while the
Outside Director remains a Director of the Company, except as set forth in
Section 9 hereof.

               (C) the exercise price per Share shall be 100% of the Fair Market
Value per Share on the date of grant of the Retainer Option. In the event that
the date of grant of the Retainer Option is not a trading day, the exercise
price per Share shall be the Fair Market Value on the next trading day
immediately following the date of grant of the Retainer Option.

               (D) the Retainer Option shall be fully vested as to 25% of the
Shares subject to the Retainer Option on the date of grant and shall vest with
respect to an additional 25% of such Shares every ninety (90) days following the
date of grant, so as to be 100% vested on the date that is 270 days following
the date of grant, subject to continued service as on Outside Director.

         (c) DEFERRED PHANTOM STOCK. On the date of each annual meeting of
stockholders of the Company, Outside Directors who has made an Election to
receive Deferred Phantom Stock in lieu of 50% or 100% of their annual cash
retainer shall automatically have their account under the Outside Director Stock
Deferral Plan credited with the number of Deferred Phantom Stock units
determined by dividing (i) the amount of the annual cash retainer covered by
such Election by (ii) the Fair Market Value of a Share on that date, rounded to
the nearest whole Share, provided that sufficient Shares

                                       4
<PAGE>

are available under the Plan for the crediting of such Deferred Phantom Stock
units. The Deferred Phantom Stock units shall be fully vested as to 25% of units
on the date of grant and shall vest with respect to an additional 25% of such
units every ninety (90) days following the date of grant, so as to be 100%
vested on the date that is 270 days following the date of grant, subject to
continued service as on Outside Director. The Deferred Phantom Stock units shall
be held subject to the terms and conditions of the Outside Director Stock
Deferral Plan and the elections made thereunder.

      6. ELIGIBILITY. Options and Deferred Phantom Stock may be granted only to
Outside Directors. An Outside Director who has been granted an Option or
Deferred Phantom Stock may, if he or she is otherwise eligible, be granted
additional Options or Deferred Phantom Stock in accordance with the provisions
of the Plan.

      The Plan shall not confer upon any Outside Director any right with respect
to continuation of service as a Director or nomination to serve as a Director,
nor shall it interfere in any way with any rights which the Director or the
Company may have to terminate his or her directorship at any time.

      7. TERM OF PLAN. The Plan shall become effective upon the earlier to occur
of its adoption by the Board or its approval by the stockholders of the Company.
It shall continue in effect for a term of ten (10) years unless sooner
terminated under Section 11 of the Plan.

      8. FORM OF CONSIDERATION. The consideration to be paid for the Shares to
be issued upon exercise of an Option, including the method of payment, shall
consist of (i) cash, (ii) check, (iii) other shares which (x) in the case of
Shares acquired upon exercise of an Option, have been owned by the Optionee for
more than six (6) months on the date of surrender, and (y) have a Fair Market
Value on the date of surrender equal to the aggregate exercise price of the
Shares as to which said Option shall be exercised, (iv) delivery of a properly
executed exercise notice together with such other documentation as the Company
and the broker, if applicable, shall require to effect an exercise of the Option
and delivery to the Company of the sale or loan proceeds required to pay the
exercise price, or (v) any combination of the foregoing methods of payment.

      9. EXERCISE OF OPTION.

         (a) PROCEDURE FOR EXERCISE; RIGHTS AS A STOCKHOLDER. Any Option granted
hereunder shall be exercisable at such times as are set forth in Sections 4 and
5 hereof.

         An Option may not be exercised for a fraction of a Share.

         An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company. Full payment may consist of any consideration and method of payment
allowable under Section 8 of the Plan. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the stock certificate evidencing such Shares, no right
to vote or receive dividends or any other rights as a stockholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
A share certificate or electronic notice covering the number of Shares so
acquired shall be issued to the Optionee as soon as practicable after exercise
of the Option. No adjustment shall be made for a dividend or other right for
which the record date is prior to the date the stock certificate or electronic
notice is issued, except as provided in Section 11 of the Plan.

                                       5
<PAGE>

         Exercise of an Option in any manner shall result in a decrease in the
number of Shares which thereafter may be available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

         (b) RULE 16b-3. Options and Deferred Phantom Stock granted to Outside
Directors must comply with the applicable provisions of Rule 16b-3 promulgated
under the Exchange Act or any successor thereto and shall contain such
additional conditions or restrictions as may be required thereunder to qualify
Plan transactions, and other transactions by Outside Directors that otherwise
could be matched with Plan transactions, for the maximum exemption from Section
16 of the Exchange Act.

         (c) TERMINATION OF CONTINUOUS STATUS AS A DIRECTOR. In the event an
Optionee's Continuous Status as a Director terminates (other than upon the
Optionee's death or total and permanent disability (as defined in Section
22(e)(3) of the Code) or Qualifying Retirement), the Optionee may exercise his
or her Option, but only within three (3) months from the date of such
termination, and only to the extent that the Optionee was entitled to exercise
it on the date of such termination (but in no event later than the expiration of
its ten (10) year term). To the extent that the Optionee was not entitled to
exercise an Option on the date of such termination, and to the extent that the
Optionee does not exercise such Option (to the extent otherwise so entitled)
within the time specified herein, the Option shall terminate.

         (d) DISABILITY OF OPTIONEE. In the event Optionee's Continuous Status
as a Director terminates as a result of total and permanent disability (as
defined in Section 22(e)(3) of the Code), the Optionee may exercise his or her
Option, but only within twelve (12) months from the date of such termination,
and only to the extent that the Optionee was entitled to exercise it on the date
of such termination (but in no event later than the expiration of its ten (10)
year term). To the extent that the Optionee was not entitled to exercise an
Option on the date of termination, or if he or she does not exercise such Option
(to the extent otherwise so entitled) within the time specified herein, the
Option shall terminate.

         (e) DEATH OF OPTIONEE. In the event of an Optionee's death, the
Optionee's estate or a person who acquired the right to exercise the Option by
bequest or inheritance may exercise the Option, but only within twelve (12)
months following the date of death, and only to the extent that the Optionee was
entitled to exercise it on the date of death (but in no event later than the
expiration of its ten (10) year term). To the extent that the Optionee was not
entitled to exercise an Option on the date of death, and to the extent that the
Optionee's estate or a person who acquired the right to exercise such Option
does not exercise such Option (to the extent otherwise so entitled) within the
time specified herein, the Option shall terminate.

         (f) QUALIFYING RETIREMENT OF OPTIONEE. Notwithstanding the provisions
set forth in Section 9(d) of the Plan, in the event of an Optionee's Qualifying
Retirement, the Optionee may exercise his or her Option, but only within the
lesser of (i) five years from the date of the Qualifying Retirement, or (ii) the
original ten (10) year term of the Option following the date of termination, and
only to the extent that the Optionee was entitled to exercise it on the date of
termination. To the extent that the Optionee was not entitled to exercise an
Option on the date of termination, or if he or she does not exercise such Option
(to the extent otherwise so entitled) within the time specified herein, the
Option shall terminate.

      10. NON-TRANSFERABILITY OF OPTIONS. Options hereunder may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner other
than by will or by the laws of descent or distribution and may be exercised,
during the lifetime of the Optionee, only by the Optionee.

                                       6
<PAGE>

      11. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION, MERGER, ASSET
SALE OR CHANGE OF CONTROL.

         (a) CHANGES IN CAPITALIZATION. Subject to any required action by the
stockholders of the Company, the number of Shares covered by each outstanding
Option or share of Deferred Phantom Stock, the number of Shares which have been
authorized for issuance under the Plan but as to which no Options or Deferred
Phantom Stock units have yet been granted or credited or which have been
returned to the Plan upon cancellation or expiration of an Option, as well as
the price per Share covered by each such outstanding Option, and the number of
Shares issuable pursuant to the automatic grant provisions of Section 4 hereof
shall be proportionately adjusted for any increase or decrease in the number of
issued Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued Shares effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of Shares
subject to an Option or the number of Deferred Phantom Stock units credited to
an account.

         (b) DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Company, to the extent that an Option has not
been previously exercised, it will terminate immediately prior to the
consummation of such proposed action.

         (c) MERGER OR ASSET SALE. Subject to Section 11(d), in the event of a
merger of the Company with or into another corporation, or the sale of
substantially all of the assets of the Company, each outstanding Option shall be
assumed or an equivalent option shall be substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation. In the event
that the successor corporation does not agree to assume the Option or to
substitute an equivalent option, each outstanding Option shall become fully
vested and exercisable, including as to Shares as to which it would not
otherwise be exercisable. If an Option becomes fully vested and exercisable in
the event of a merger or sale of assets, the Board shall notify the Optionee
that the Option shall be fully exercisable for a period of thirty (30) days from
the date of such notice, and the Option shall terminate upon the expiration of
such period. For the purposes of this paragraph, the Option shall be considered
assumed if, following the merger or sale of assets, the option or right confers
the right to purchase, for each Share of Optioned Stock subject to the Option
immediately prior to the merger or sale of assets, the consideration (whether
stock, cash, or other securities or property) received in the merger or sale of
assets by holders of Common Stock for each Share held on the effective date of
the transaction (and if holders were offered a choice of consideration, the type
of consideration chosen by the holders of a majority of the outstanding Shares).

         (d) CHANGE OF CONTROL. In the event of a Change of Control (as defined
below), each Outside Director (i) shall fully vest in and have the right to
exercise each Option as to all of the Optioned Stock, including Shares as to
which it would not otherwise be vested or exercisable and (ii) shall fully vest
in each Deferred Phantom Stock unit.

         A "Change of Control" means the occurrence of any of the following
events:

            (i) any "person," as such term is used in Sections 13(d) and 14(d)
of the Exchange Act, other than the Company, a subsidiary of the Company or a
Company employee benefit plan, including any trustee of such plan acting as
trustee, is or becomes the "beneficial owner" (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company
representing

                                       7
<PAGE>

twenty percent (20%) or more of the combined voting power of the Company's then
outstanding securities entitled to vote generally in the election of directors;
or

            (ii) a merger or consolidation of the Company or any direct or
indirect subsidiary of the Company with any other corporation, other than a
merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) at least fifty percent (50%) of the total voting power
represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or the stockholders
of the Company approve an agreement for the sale or disposition by the Company
of all or substantially all the Company's assets; or

            (iii) a change in the composition of the Board, as a result of which
fewer than a majority of the directors are Incumbent Directors. "Incumbent
Directors" shall mean directors who either (A) are Directors as of the date this
amendment to the Plan is approved by the Board, or (B) are elected, or nominated
for election, to the Board with the affirmative votes of at least a majority of
the Incumbent Directors AND whose election or nomination was not in connection
with any transaction described in (i) or (ii) above or in connection with an
actual or threatened proxy contest relating to the election of directors of the
Company.

      12. AMENDMENT AND TERMINATION OF THE PLAN.

         (a) AMENDMENT AND TERMINATION. Except as set forth in Section 4, the
Board may at any time amend, alter, suspend, or discontinue the Plan, but no
amendment, alteration, suspension, or discontinuation shall be made which would
impair the rights of any Optionee or Outside Director Stock Deferral Plan
participant under any grant theretofore made, without his or her consent,
provided that the Board may not amend the Plan to permit the repricing,
including by way of exchange, of any Option without stockholder approval. In
addition, to the extent necessary and desirable to comply with Rule 16b-3 under
the Exchange Act (or any other applicable law or regulation), the Company shall
obtain stockholder approval of any Plan amendment in such a manner and to such a
degree as required.

         (b) EFFECT OF AMENDMENT OR TERMINATION. Any such adverse amendment
without consent or termination of the Plan shall not affect Options or Deferred
Phantom Stock units already granted or credited and such Options and Deferred
Phantom Stock units shall remain in full force and effect as if this Plan had
not been amended or terminated.

      13. TIME OF GRANTING OPTIONS. The date of grant of an Option shall, for
all purposes, be the date determined in accordance with Section 4 hereof.

      14. CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, state securities laws, and the requirements of any stock exchange
upon which the Shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

          As a condition to the exercise of an Option, the Company may require
the person exercising such Option to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares, if, in the

                                       8
<PAGE>

opinion of counsel for the Company, such a representation is required by any of
the aforementioned relevant provisions of law.

          Inability of the Company to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Company's counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall relieve
the Company of any liability in respect of the failure to issue or sell such
Shares as to which such requisite authority shall not have been obtained.

      15. RESERVATION OF SHARES. The Company, during the term of this Plan, will
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

      16. OPTION AGREEMENT. Options shall be evidenced by written option
agreements in such form as the Board shall approve.

                                       9
<PAGE>

                    APPENDIX A TO THE 1995 DIRECTOR PLAN

                               VISX, INCORPORATED

                    OUTSIDE DIRECTOR STOCK DEFERRAL PLAN
<PAGE>
                                TABLE OF CONTENTS

                                                                            PAGE
                              ARTICLE I DEFINITIONS

1.1   "BOARD OF DIRECTORS"...................................................1

1.2   "COMMITTEE"............................................................1

1.3   "CREDITED INVESTMENT RETURN (LOSS)"....................................1

1.4   "DEFERRAL ACCOUNT".....................................................1

1.5   "DEFERRAL AMOUNT"......................................................1

1.6   "DEFERRAL ELECTION"....................................................1

1.7   "PARTICIPANT"..........................................................1

1.8   "PLAN".................................................................2

                             ARTICLE II ELIGIBILITY

2.1   ELIGIBLE PERSONS.......................................................2

2.2   COMMENCEMENT OF PARTICIPATION..........................................2

2.3   TERMINATION OF PARTICIPATION...........................................2

                       ARTICLE III DEFERRED PHANTOM STOCK

3.1   PHANTOM STOCK DEFERRALS................................................2

3.2   NO WITHDRAWAL..........................................................2

     ARTICLE IV CREDITED INVESTMENT RETURN (LOSS) ON DEFERRAL ACCOUNTS

4.1   DEFERRAL ACCOUNT.......................................................3

4.2   CREDITED INVESTMENT RETURN (LOSS)......................................3

                               ARTICLE V BENEFITS

5.1   DISTRIBUTION OF BENEFITS...............................................3

5.2   CHANGE OF DISTRIBUTION ELECTION........................................3

5.3   PAYMENT TO ESTATE......................................................3

5.4   AUTOMATIC LUMP-SUM DISTRIBUTION FOR ACCOUNTS BELOW $25,000.............3

5.5   TAX WITHHOLDING........................................................4

       ARTICLE VI OBLIGATION TO PAY SUPPLEMENTAL PARTICIPANT BENEFITS

6.1   BENEFITS PAID FROM GENERAL CORPORATE ASSETS; PAYMENT IN STOCK..........4

6.2   NO SECURED INTEREST....................................................4

                           ARTICLE VII ADMINISTRATION

7.1   ADMINISTRATION OF THE PLAN.............................................4

7.2   INDEMNIFICATION........................................................4

                                       ii
<PAGE>
                           ARTICLE VIII MISCELLANEOUS

8.1   NONTRANSFERABILITY.....................................................4

8.2   BINDING EFFECT.........................................................5

8.3   REIMBURSEMENT OF COSTS.................................................5

8.4   ARBITRATION............................................................5

8.5   APPLICABLE LAW.........................................................5

8.6   ENTIRE AGREEMENT.......................................................5

8.7   Termination or Amendment of Plan.......................................5

                                      iii
<PAGE>
                               VISX, INCORPORATED

                      OUTSIDE DIRECTOR STOCK DEFERRAL PLAN

            This VISX, Incorporated Outside Director Stock Deferral Plan is
adopted effective as of the date of the Company's 2003 annual meeting of
stockholders.

                                    ARTICLE I

                                   DEFINITIONS

            Whenever used herein, the masculine pronoun shall be deemed to
include the feminine, and the singular to include the plural, unless the context
clearly indicates otherwise, and the following definitions shall govern the Plan
(capitalized terms not defined below shall have the same defined meaning as
specified in the 1995 Director Option and Stock Deferral Plan):

            1.1   "BOARD OF DIRECTORS"

            or "BOARD" means the Board of Directors of VISX, Incorporated.

            1.2   "COMMITTEE"

            means an independent Committee appointed by the Board to administer
this Plan and to take such other actions as may be specified herein.

            1.3 "CREDITED INVESTMENT RETURN (LOSS)"

            means the hypothetical investment return which shall be credited to
a Participant's Deferral Account pursuant to Article IV.

            1.4   "DEFERRAL ACCOUNT"

            means the book entry account established under this Plan for each
Participant to which shall be credited (or debited) such Participant's Deferral
Amount and Credited Investment Return (Loss) and which shall be reduced by any
distributions made to such Participant and any charges which may be imposed on
such Deferral Account pursuant to the terms of this Plan.

            1.5   "DEFERRAL AMOUNT"

            means the Deferred Phantom Stock Amount which Participant elects to
contribute pursuant to Article III.

            1.6   "DEFERRAL ELECTION"

            means the form of Deferred Phantom Stock Election as prescribed by
the Committee, as modified from time to time.

            1.7   "PARTICIPANT"

            means a present or former Outside Director (or estate or
beneficiaries of an Outside Director) who has a Deferral Account under this
Plan.
<PAGE>
            1.8   "PLAN"

            shall mean this VISX, Incorporated Outside Director Stock Deferral
Plan, as it may be amended from time to time.

                                   ARTICLE II

                                   ELIGIBILITY

            2.1   ELIGIBLE PERSONS

            . Eligibility for participation in this Plan shall be limited to
Outside Directors who have elected to receive Deferred Phantom Stock in lieu of
their annual retainer under the Company's 1995 Director Option and Stock
Deferral Plan and their estates and beneficiaries.

            2.2   COMMENCEMENT OF PARTICIPATION

            . A Participant may begin participation in this Plan immediately
following the submission of an irrevocable Deferral Election in accordance with
the terms of the 1995 Director Option and Stock Deferral Plan.

            2.3   TERMINATION OF PARTICIPATION

            . Active participation in this Plan shall end when a Participant's
Board service terminates for any reason. No contributions to this Plan shall be
made with respect to a Participant's Deferral Account after such termination
date. Upon termination of Board service, a Participant shall remain an inactive
Participant in the Plan until all of the benefits to which he or she is entitled
hereunder have been paid in full.

                                  ARTICLE III

                             DEFERRED PHANTOM STOCK

            3.1   PHANTOM STOCK DEFERRALS.

                  (a)   Upon submitting a Deferral Election to the Company, in
lieu of his or her annual retainer, a Participant's Deferral Account under this
Plan shall be credited with a number of Deferred Phantom Stock shares determined
in accordance with Section 5(c) of the 1995 Director Option and Stock Deferral
Plan. The Participant shall satisfy the self-employment tax obligations arising
from the credit of Deferred Phantom Stock to his or her Deferral Account.

                  (b)   A Participant's Deferral Election shall be irrevocable,
except as provided in Section 5.2 of this Plan.

            3.2   NO WITHDRAWAL

            . Except as provided in Section 5.3 below, Deferral Amounts may not
be withdrawn by a Participant and shall be paid only in accordance with the
provisions of this Plan.

                                       2
<PAGE>
                                   ARTICLE IV

             CREDITED INVESTMENT RETURN (LOSS) ON DEFERRAL ACCOUNTS

            4.1   DEFERRAL ACCOUNT.

                  (a)   A Deferral Account shall be established and maintained
for each Participant.

            4.2   CREDITED INVESTMENT RETURN (LOSS)

            . Each Participant's Deferral Account shall be credited (or debited)
monthly with the Credited Investment Return (Loss) attributable to his or her
Deferral Account. The Credited Investment Return (Loss) is the amount which the
Participant's Deferral Account would have earned if the amounts credited to the
Deferral Account had, in fact, been invested in the Common Stock, purchased at
the closing sales price on the date of the applicable Board meeting (as
specified in Section 5(c) of the 1995 Director Option and Stock Deferral Plan),
and assuming reinvestment of all dividends back into such Common Stock at the
Common Stock closing sales price on the date of the dividend distribution.

                                   ARTICLE V

                                    BENEFITS

            5.1   DISTRIBUTION OF BENEFITS

            . Benefits shall be distributed in accordance with the elections
specified within a Participant's Deferral Election.

            5.2   CHANGE OF DISTRIBUTION ELECTION

            . A Participant may file an amended election to change his or her
distribution election at any time which is more than one (1) year prior to the
applicable specified fixed date at which payment of benefits would otherwise
commence. Any amended election which is filed within one (1) year of the
applicable specified date at which payment of benefits shall commence shall be
void and without effect and the most recently effective election shall control
instead.

            5.3   PAYMENT TO ESTATE

            . In the event a Participant dies after installment payments have
begun but before all of the installments are paid, the undistributed
installments shall be paid to his or her estate as they become due.

            5.4   AUTOMATIC LUMP-SUM DISTRIBUTION FOR ACCOUNTS BELOW $25,000

            . Notwithstanding any other provisions of this Plan or the
provisions of a Participant's Deferral Election, in the event that a Participant
has less than twenty-five thousand dollars ($25,000) credited to his or her
Deferral Account as of the date of his or her termination of Board service, 100%
of

                                        3
<PAGE>
his or her Deferral Account shall be distributed to him or her in a single
lump-sum distribution within a reasonable amount of time following the date of
such termination of service.

            5.5   TAX WITHHOLDING

            . All distributions under this Plan shall be subject to all
applicable withholding for state and federal income tax and to any other
federal, state or local tax which may be applicable thereto.

                                   ARTICLE VI

               OBLIGATION TO PAY SUPPLEMENTAL PARTICIPANT BENEFITS

            6.1   BENEFITS PAID FROM GENERAL CORPORATE ASSETS; PAYMENT IN STOCK

            . All benefits payable to a Participant hereunder, shall be paid by
the Company in shares of Common Stock.

            6.2   NO SECURED INTEREST

            . Deferral Accounts shall be subject to the claims of creditors of
the Company. Each Participant is a general unsecured creditor of the Company
with respect to the promises of the Company made herein.

                                  ARTICLE VII

                                 ADMINISTRATION

            7.1   ADMINISTRATION OF THE PLAN

            . This Plan shall be administered by the Committee. The Committee
shall have full power and discretionary authority to administer, construe and
interpret the Plan, to establish procedures for administering this Plan, to
prescribe forms, and take any and all necessary or desirable actions in
connection with this Plan. The Committee's interpretation and construction of
this Plan shall be conclusive and binding on all persons. The Committee may
appoint a plan administrator or any other agent and delegate to them such powers
and duties in connection with the administration of this Plan as the Committee
may from time to time prescribe.

            7.2   INDEMNIFICATION

            . The Committee and each of its members are indemnified by the
Company against any and all liabilities incurred by reason of any action taken
in good faith pursuant to the provisions of this Plan.

                                  ARTICLE VIII

                                  MISCELLANEOUS

            8.1   NONTRANSFERABILITY

                                       4
<PAGE>
            . The right of each Participant or any other person to the payment
of any benefits under this Plan shall not be assigned, transferred, pledged or
encumbered.

            8.2   BINDING EFFECT

            . This Plan shall be binding upon and inure to the benefit of the
Company, its successors and assigns and each Participant and his or her heirs,
executors, administrators and legal representatives.

            8.3   REIMBURSEMENT OF COSTS

            . If the Company, a Participant or a successor in interest to either
of the foregoing, brings legal action to enforce any of the provisions of this
Plan, including an action described in Section 8.4 of this Plan, the prevailing
party in such legal action shall be reimbursed by the other party for the
prevailing party's costs of such legal action including, without limitation,
reasonable fees of attorneys, accountants and similar advisors and expert
witnesses.

            8.4   ARBITRATION

            . Any dispute or claim relating to or arising out of this Plan shall
be fully and finally resolved by binding arbitration conducted by the American
Arbitration Association in Santa Clara, California.

            8.5   APPLICABLE LAW

            . This Plan shall be construed in accordance with and governed by
the laws of the State of California.

            8.6   ENTIRE AGREEMENT

            . This Plan, 1995 Director Option and Stock Deferral Plan and each
applicable Deferral Election constitute the entire understanding and agreement
with respect to this Plan, and there are no agreements, understandings,
restrictions, representations or warranties among any Participant and the
Company other than those as set forth or provided for therein.

            8.7   Termination or Amendment of Plan

            .

                  (a) This Plan may be amended by the Company at any time in its
sole discretion by resolution by the Board; provided, however, that no amendment
may be made which would alter the irrevocable nature of a Deferral Election or
which would reduce the amount credited to an Participant's Deferral Account on
the date of such amendment.

                  (b) Notwithstanding the foregoing paragraph or any other
provision in this Plan to the contrary, the Company reserves the right to
terminate the Plan in its entirety at any time upon fifteen (15) days notice to
Outside Directors. If this Plan is terminated, all benefits shall be paid
pursuant to the provisions of Article 5 as if such Participant had voluntarily
terminated Board service on the date of Plan termination.

                                       5
<PAGE>
            IN WITNESS WHEREOF, the Company has caused this Plan to be executed
by a duly authorized officer effective as of the Effective Date.

                                    VISX, INCORPORATED

                                    By:
                                         -------------------------------------

                                       6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]