Document:

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AMENDED.

                                                                   EXHIBIT 10.35

                   SECOND AMENDMENT TO COLLABORATION AGREEMENT
                                      AMONG
                             COR THERAPEUTICS, INC.,
                              SCHERING CORPORATION
                            AND SCHERING-PLOUGH, LTD.
                              DATED APRIL 10, 1995

This second amendment ("Second Amendment") effective as of the last date set
forth below (the "Second Amendment Effective Date"), to the Collaboration
Agreement by and among COR Therapeutics, Inc., a Delaware corporation ("COR"),
Schering Corporation, a New Jersey corporation ("Schering Corporation") and
Schering-Plough, Ltd., a corporation organized under the laws of Switzerland
("Schering Ltd.") dated April 10, 1995, as amended on December 23, 1998 (as
amended, the "Agreement") is entered into by and between the parties hereto with
reference to the facts below. Schering Corporation and Schering Ltd. are
referred to herein collectively as "Schering". Terms with initial capitals,
which are not specifically defined in this Second Amendment, shall have the
defined meaning set forth in the Agreement.

        WHEREAS, the Agreement does not specify to which country sales should be
attributed when a sale is made by a distributor in one country to a distributor
in another country;

        WHEREAS, the Parties desire to modify their agreement to address such
issue of sales allocation, and also with respect to the allocation of regulatory
responsibilities in Canada, the manufacture and supply of Integrilin Product in
Canada, and to set forth certain understandings regarding a Phase III clinical
trial for Integrilin Product in the setting of acute myocardial infarction
("AMI"); and

        WHEREAS, the Parties desire to make certain elements of this Second
Amendment conditional on the conduct of a Phase III clinical trial for AMI, and
have made provision herein for modification of this Second Amendment based upon
the conduct of such trial;

        WHEREAS, Section 18.1 provides for amendment, change or addition to the
Agreement if reduced to writing and signed by an authorized officer of each
Party.

        NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants and obligations below, the Parties agree as follows:

I.      TREATMENT OF CROSS-BORDER SALES

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The Parties agree that Section 2.8, shall be amended by adding the following to
the end of the existing text:

        "The sale of any unit of Integrilin Product shall be accounted for
        either as Net Sales or as Royalty-Bearing Sales, depending on the
        location of the final distributor in the chain of sales for such unit,
        and in no event shall the proceeds of the sale of any single unit be
        ultimately accounted for as both Net Sales and Royalty-Bearing Sales.
        The method for attributing such sales shall be as follows: Sale of a
        unit shall be attributed to the location of the first distributor to
        whom the sale is made. If there is a subsequent sale of such unit to a
        distributor in another country, the Parties shall re-attribute such sale
        to the location of the final distributor to whom such unit was sold. The
        Party selling the Co-Developed Product shall provide the other Party
        with sales reports and distributor reports on a country-by-country basis
        within [ * ] of the end of each calendar quarter. The reattribution of
        sales from the location of the initial distributor to the location of
        the final distributor shall be based on such distributor reports and
        shall be made, together with any corresponding reconciliation payment or
        credit, within [ * ] of the end of each calendar quarter."

The remainder of Section 2.8 shall remain unchanged.

II.     COMMUNICATIONS WITH REGULATORS IN CANADA

The Parties agree that Section 3.4(a) shall be amended by adding the following
to the end of the existing text:

        "Notwithstanding anything to the contrary in this Section 3.4(a), until
        such time as COR commences Co-Promotion of a Co-Developed Product in
        Canada, Schering shall have primary responsibility for communications
        with Canadian regulatory authorities with respect to the review and
        release of marketing promotional material, reporting of adverse events
        for Integrilin Products sold in Canada and Schering shall be responsible
        for QC testing/QA release activities in connection with Integrilin
        Products in Canada and such other regulatory matters in connection with
        Integrilin Products in Canada as the parties shall mutually agree upon.
        However, COR shall retain ownership of all regulatory submissions in
        Canada, and shall be responsible for any amendments thereof and for
        communications with Canadian regulatory authorities regarding clinical
        trials, adverse events in clinical trials, clinical data, manufacturing
        process changes and such other matters as the parties shall mutually
        agree upon."

The remainder of Section 3.4 shall remain unchanged.

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AMENDED.

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III.    EXTENSION OF EXCLUSIVITY PERIOD IN CANADA AND EUROPE

The Parties agree that Section 4.1(a) shall be amended by deleting it in its
entirety and replacing Section 4.1(a) with the following:

        "Subject to the terms and conditions of this Agreement, COR will have
        the right to Co-Promote with Schering, on a country-by-country basis, in
        each country in the Co-Promotion Territory each Co-Developed Product
        following Regulatory Approval, provided, however, that the right of COR
        to Co-Promote each Co-Developed Product in Canada shall commence on [ *
        ] (subject to COR complying with its contribution of Sales
        Representative Efforts as set forth in [ * ]), or such earlier date as
        may be provided for in Article IX of the Second Amendment to this
        Agreement (the "Canadian Co-Promotion Date") and the right of COR to
        Co-Promote each Co-Developed Product in any country of Europe shall
        commence, on a country-by-country basis, on [ * ] (subject to COR
        complying with its contribution of Sales Representative Efforts as set
        forth in [ * ]), or such earlier date as may be provided for in Article
        IX of the Second Amendment to this Agreement (the "European Co-Promotion
        Date"). The JSC shall approve annual sales targets for Canada for each
        year beginning with [ * ]. Notwithstanding anything to the contrary in
        this Section 4.1(a), in the event that, for [ * ] years Schering shall
        fail to achieve at least [ * ] of the year-end annual sales target for
        Canada approved by the JSC, COR shall have the right to commence
        Co-Promotion of each Co-Developed Product in Canada upon [ * ] written
        notice. Schering shall provide COR with [ * ] reports on sales in Canada
        to enable COR to monitor progress against such sales targets."

IV.     NOTICE OF INTENT TO CO-PROMOTE IN CANADA

The Parties agree that Section 4.2 shall be amended by deleting the first
sentence and replacing it with the following:

        "Within 60 days after the filing, and acceptance for review, of a Drug
        Approval Application in the United States with respect to a Co-Developed
        Product, which is the subject of such Drug Approval Application, COR
        shall notify Schering whether or not it elects to Co-Promote such
        Co-Developed Product in the United States. With respect to Co-Promotion
        of each Co-Developed Product in Canada, such notice shall be delivered [
        * ] to the [ * ] on which the right of COR to Co-Promote such
        Co-Developed Product in Canada would commence under Section 4.1(a)."

V.      MODIFICATION OF SALES REPRESENTATIVES' EFFORTS

The Parties agree that Section 5.5 shall be amended by deleting Section 5.5(a)
in its entirety and replacing Section 5.5(a) with the following:

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        "(a) Subject to the terms and conditions of this Agreement, in each
        calendar year, each Party will have the right to contribute [ * ] of the
        overall level of Sales Representative Efforts for each Co-Promoted
        Product in each country in which COR has elected to Co-Promote, provided
        that, without the consent of the other Party, (i) in the United States,
        [ * ] may not contribute [ * ] of such level, Schering may not
        contribute [ * ] of such level in the [ * ] years following commercial
        launch of such Co-Promoted Product and Schering may not contribute [ * ]
        of such level thereafter; (ii) commencing on the Canadian Co-Promotion
        Date, COR will have the right to contribute [ * ] of the overall level
        of Sales Representative Efforts in Canada provided that COR may not
        contribute [ * ] of the total level of Sales Representative Efforts in
        Canada; and (iii) commencing on the European Co-Promotion Date, COR will
        have the right to contribute [ * ] of the overall Sales Representative
        Efforts in any country of Europe, provided that, without the consent of
        Schering, COR may not contribute [ * ] of the total level of Sales
        Representative Efforts in each country of Europe in which COR is
        Co-Promoting and Schering may not contribute [ * ] of such total."

The remainder of Section 5.5 shall remain unchanged.

VI.     SUPPLY OF FINAL INTEGRILIN PRODUCTS FOR CANADA

The Parties agree that Section 7.1(b) shall be amended by deleting the third and
fourth sentences and replacing them with the following:

        "Unless otherwise directed by the JSC, COR shall use Diligent Efforts to
        obtain from Third Party suppliers necessary quantities of bulk and final
        Integrilin Product for supply in the United States and necessary
        quantities of bulk Integrilin Product for supply in all other countries
        of the world. Schering shall use Diligent Efforts to produce final
        Integrilin Product for all countries of the world outside of the United
        States unless Schering requests not to do so, in which case the JSC
        shall make arrangements for Third Party suppliers to provide such
        services."

VII.    PROVISIONS RELATING TO CANADA

A.      The Parties agree that the first sentence of Section 9.2 shall be
amended by deleting it in its entirety and replacing it with the following:

        "Net Sales shall be allocated first to reimburse each Party for its
        Allowable Expenses, on a country-by-country basis (excluding Canada
        until COR begins to Co-Promote in Canada), for each Co-Developed
        Product. Any

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        remaining sums shall be Marketing Margin, which shall be determined on a
        country-by-country basis (excluding Canada until COR begins to
        Co-Promote in Canada) for each such Product, and shall be allocated as
        follows:"

B.      The Parties agree that the following shall be added as a new sentence at
the end of Section 9.2:

        "Until COR begins to Co-Promote in Canada, in lieu of an allocation of
        Marketing Margin for sales of Co-Developed Product in Canada, COR shall
        receive a royalty as set forth in Section 9.7."

C.      The Parties agree that the definition of Net Sales in Section 1.32 is
hereby amended to add, [ * ] immediately after the words [ * ] and immediately
prior to the commencement of the parenthetical in such line, the words: [ * ].

The remainder of Section 1.32 shall remain unchanged.

VIII.   ROYALTIES

The Parties agree that Section 9.7 shall be amended by deleting the proviso
immediately after the table setting forth the dollar amounts and royalty rate
and replacing it with the following:

        "provided, however, that the royalty rate in the Co-Promotion Territory
        (except for the United States and Canada) shall be the sum of a Base
        Royalty, a Sales Volume Royalty, and a Cost of Goods Royalty, as
        follows, and provided further that in no calendar year will the
        aggregate royalty in such territory exceed [ * ] of Net Sales in such
        territory (except as provided below in the case that the Average Cost
        Per Gram, as defined below, is [ * ] per gram):

        -       Base Royalty. During the period from the first commercial sales
                of an Integrilin Product in a country of Europe through [ * ],
                the "Base Royalty" shall be [ * ] of Net Sales in Europe.
                Thereafter, the Base Royalty shall be [ * ] of Net Sales in
                Europe, except in countries where COR is Co-Promoting the
                Integrilin Product, in which case COR shall be compensated under
                Section 9.2.

        -       Sales Volume Royalty. Through [ * ], the following additional
                royalty (the "Sales Volume Royalty") shall be added to the Base
                Royalty, as follows:

                [ * ] if Net Sales in Europe are less than [ * ];

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AMENDED.

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                [ * ] of all Net Sales in Europe if total annual Net Sales in
                Europe are equal to or greater than [ * ] but less than [ * ];

                [ * ] of all Net Sales in Europe if total annual Net Sales in
                Europe are equal to or greater than [ * ] but less than [ * ];

                [ * ] of all Net Sales in Europe if total annual Net Sales in
                Europe are equal to or greater than [ * ] but less than [ * ];
                and

                [ * ] of all Net Sales in Europe if total annual Net Sales in
                Europe are equal to or greater than [ * ].

                At the end of each quarter of each [ * ], the Sales Volume
                Royalty shall be determined on the basis of the above percentage
                associated with actual Net Sales in Europe for the year through
                such quarter, with any [ * ] as necessary to [ * ] the Sales
                Volume Royalty for prior quarters of the year, e.g., if sales in
                the fourth quarter bring total Net Sales to [ * ], then total
                Sales Volume Royalty payments to COR for that year would equal [
                * ].

        -       Cost of Goods Royalty. Through [ * ], an additional royalty (the
                "Cost of Goods Royalty") shall be added to the Base Royalty and
                any Sales Volume Royalty if the Average Cost Per Gram for
                Integrilin Product sold in Europe is less than [ * ] per gram,
                as follows:

                Average Cost Per Gram

                Below [ * ] but greater than or equal to [ * ] additional
                royalty;

                Below [ * ] but greater than or equal to [ * ] additional
                royalty;

                Below [ * ] but greater than or equal to [ * ] additional
                royalty;

                Below [ * ] but greater than or equal to [ * ] additional
                royalty;

                Below [ * ] additional royalty.

                "Average Cost Per Gram" shall mean the average cost per gram of
                [ * ], calculated in accordance with the Cost of Goods Shipped
                definition but [ * ] to the [ * ] of any [ * ].

                For each of the first three quarters of each [ * ], the Cost of
                Goods Royalty shall be paid on the Net Sales in Europe during
                such quarter at a royalty rate calculated on the basis of the
                Average Cost Per Gram achieved in such year to date. At the end
                of each calendar year, the Cost of Goods Royalty shall be
                calculated for the year as a whole,

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                based on the Net Sales in Europe during such year and the
                Average Cost Per Gram during such year, with any reconciling
                payment or credit as necessary to adjust for any different Cost
                of Goods Royalty rate(s) which may have been applied for the
                first three calendar quarters.

        Notwithstanding the above references to a [ * ], in any year in which
        the Average Cost Per Gram for Integrilin Product sold in Europe is equal
        to or less than [ * ] per gram, an additional [ * ] royalty shall be
        added to any other applicable royalties up to a [ * ].

        In addition, COR shall receive a royalty on Royalty-Bearing Sales of all
        Integrilin Products in Canada as follows:

                [ * ] on Net Sales in Canada of Integrilin Products in [ * ];

                [ * ] on Net Sales in Canada of Integrilin Products in [ * ].

        Such royalty shall not be payable to COR after it has initiated
        Co-Promotion of each Co-Developed Product in Canada."

The remainder of Section 9.7 shall remain unchanged.

IX.     [ * ] TRIAL

        A.      At such time as the JSC votes to conduct a [ * ] study [ * ],
                the Parties agree that the [ * ] shall be conducted as set forth
                in the [ * ] attached hereto as Exhibit A [ * ]. The Parties
                agree that the [ * ] may be amended only by vote of the JSC.

        B.      Schering shall continue to be the [ * ] for the [ * ] phase of
                the development of Integrilin for the [ * ]. COR shall be the [
                * ] (as that [ * ]) for the [ * ]. COR shall also be the [ * ]
                for a [ * ] and the [ * ].

        C.      As set forth more fully in the [ * ], the Parties shall each
                actively participate in a [ * ], which will have the [ * ] for
                the [ * ], consistent with the principles of prompt and diligent
                development of the Integrilin Products, as set forth in the
                Agreement. However, notwithstanding the formation or [ * ] or
                any other provision of this Second Amendment, the Parties
                confirm that the JSC shall retain overall responsibility for the
                clinical development of Integrilin Products, including without
                limitation for the [ * ].

        D.      At such time as the JSC votes to conduct the [ * ], the Parties
                agree that the [ * ] shall include the [ * ] as are deemed
                necessary by the JSC to carry out the [ * ].

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COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

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        E.      The Parties recognize that the [ * ] of the [ * ] provided for
                in [ * ] is intended to [ * ] to [ * ] for the substantial [ * ]
                associated with a [ * ]. Accordingly, the Parties have provided
                in [ * ] for the possible termination [ * ] prior to the [ * ],
                and have further agreed that if for any reason the [ * ] but not
                [ * ], then the [ * ] shall be [ * ] as follows:

                1. If the [ * ] is [ * ] but is [ * ] at a time when the [ * ]
                in [ * ] are [ * ], then the [ * ] shall be [ * ] and the [ * ]
                shall be [ * ].

                2. If the [ * ] is [ * ] but is [ * ] at a time when the [ * ]
                in [ * ] have [ * ] but are [ * ], then the [ * ] shall be [ * ]
                and the [ * ] shall be [ * ].

                3. If the [ * ] is [ * ] but is [ * ] at a time when the [ * ]
                in [ * ] have [ * ] but are [ * ], then the [ * ] shall be [ * ]
                and the [ * ] shall be [ * ].

                4. If the [ * ] is [ * ] but is [ * ] before [ * ] at a time
                when the [ * ] in [ * ] have [ * ], then the [ * ] shall be [ *
                ] and the [ * ] shall be [ * ].

X.      TERMINATION RIGHTS

        A. Certain provisions of this Second Amendment shall terminate if, for
any reason: (i) as of [ * ], the [ * ] to [ * ] the [ * ]; or (ii) as of [ * ]
the [ * ] has not [ * ]. If the [ * ] has not [ * ] by [ * ], the [ * ] will be
deemed [ * ]. The termination of certain provisions of this Second Amendment as
set forth above shall have the following consequences:

               1. Articles [ * ] of this Second Amendment shall be deleted from
this Second Amendment and shall have no force or effect, except as provided in
paragraph 3 of this Article X.

               2. Articles [ * ] of this Second Amendment shall continue in full
force and effect, but COR shall then have the right to give a notice of election
to Co-Promote Co-Developed Products in Canada at any time within [ * ] following
the effectiveness of termination under this Article X, which notice shall give
COR the right to commence such Co-Promotion in Canada [ * ] following such
notice. Should COR commence Co-Promotion in Canada before [ * ] will [ * ] to [
* ] any [ * ] for sales of Co-Developed Product in Canada [ * ] to [ * ] to the
[ * ] Co-Promotion in Canada.

               3. In the event of any termination under this Article X, [ * ] in
accordance with Article [ * ] of this Second Amendment until the end of the [ *
] in which termination occurs under this Article X. At that point, Article [ * ]
shall have

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AMENDED.

<PAGE>   9
no further force or effect and [ * ] in accordance with the original Agreement
as amended by the First Amendment.

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BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

<PAGE>   10
XI.     MISCELLANEOUS

        A. Each Party agrees to act in good faith and do all other acts as may
be necessary or appropriate in order to carry out the purposes and intent of
this Second Amendment.

        B. This Second Amendment has been prepared jointly and shall not be
strictly construed against either Party.

        C. The terms, conditions and existence of this Agreement shall be
treated by the Parties on a confidential basis, subject to Section 13.3 of the
Agreement and subject further to appropriate disclosure to employees and
shareholder of Schering-Plough Corporation (the corporate parent of Schering)
and its Affiliates and/or COR, or as otherwise required by law. Each of Schering
and COR agrees to coordinate both the timing and content of any public
announcements relating to this Second Amendment and any such public
announcements shall be subject to the review and approval of the Parties prior
to public disclosure.

        D. This Second Amendment to the extent set forth herein, amends,
modifies and supplements the Agreement. This Second Amendment contains the
entire agreement between the Parties hereto, and the terms of this Second
Amendment are contractual and not a mere recital. Except as expressly modified
herein, all of the terms and provisions of the Agreement remain in full force
and effect and cannot be amended, modified or changed in any way whatsoever
except by a written instrument duly executed by the Parties hereto.

        IN WITNESS WHEREOF, the Parties have executed this Second Amendment by
their authorized officers effective as of the last date below.

SCHERING CORPORATION                COR THERAPEUTICS, INC.

By:     /s/ Thomas C. Lauda         By:     /s/ Vaughn M. Kailian
   -------------------------------     -------------------------------
            Thomas C. Lauda                     Vaughn M. Kailian

Title:  Executive Vice President    Title:  Chief Executive Officer
      ----------------------------        ----------------------------

Date:   11/1/99                     Date:   11/5/99
     -----------------------------       -------------------------------

SCHERING-PLOUGH LTD.

By:     /s/ Thomas C. Lauda
   -------------------------------

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AMENDED.

<PAGE>   11
         Thomas C. Lauda

Title:  Manager (Director)
      ----------------------------
Date:   11/1/99
     -----------------------------

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<PAGE>   12
                                  Confidential

                                     Exhibit

                                      [ * ]

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BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.<PAGE>   1
                                                                   EXHIBIT 10.3A

                                   LASERSCOPE

                        1999 EMPLOYEE STOCK PURCHASE PLAN

      The following constitute the provisions of the 1999 Employee Stock
Purchase Plan of Laserscope:

      1.    PURPOSE. The purpose of the Plan is to provide employees of the
Company and its Designated Subsidiaries with an opportunity to purchase Common
Stock of the Company. It is the intention of the Company to have the Plan
qualify as an "Employee Stock Purchase Plan" under Section 423 of the Code. The
provisions of the Plan shall, accordingly, be construed so as to extend and
limit participation in a manner consistent with the requirements of that section
of the Code.

      2.    DEFINITIONS.

            (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 Laserscope, a California corporation.

            (e)   "COMPENSATION" means all regular straight time gross earnings,
payments for overtime, shift premium, incentive compensation, incentive
payments, bonuses and commissions (except to the extent that the exclusion of
any such items for all participants is specifically directed by the Board or its
committee).

            (f)   "CONTINUOUS STATUS AS AN EMPLOYEE" means the absence of any
interruption or termination of service as an Employee. Continuous Status as an
Employee shall not be considered interrupted in the case of (i) sick leave; (ii)
military leave; (iii) any other leave of absence approved by the Administrator,
provided that such leave is for a period of not more than 90 days, unless
reemployment upon the expiration of such leave is guaranteed by contract or
statute, or unless provided otherwise pursuant to Company policy adopted from
time to time; or (iv) in the case of transfers between locations of the Company
or between the Company and its Designated Subsidiaries.

            (g)   "CONTRIBUTIONS" means all amounts credited to the account of a
participant pursuant to the Plan.

            (h)   "CORPORATE TRANSACTION" means a sale of all or substantially
all of the Company's assets, or a merger, consolidation or other capital
reorganization of the Company with or into another corporation.

            (i)   "DESIGNATED SUBSIDIARIES" means the Subsidiaries which have
been designated by the Board from time to time in its sole discretion as
eligible to participate in the Plan; provided however that the Board shall only
have the discretion to designate Subsidiaries if

<PAGE>   2

the issuance of options to such Subsidiary's Employees pursuant to the Plan
would not cause the Company to incur adverse accounting charges.

            (j)   "EMPLOYEE" means any person, including an Officer, who is
customarily employed for at least twenty (20) hours per week and more than five
(5) months in a calendar year by the Company or one of its Designated
Subsidiaries.

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

            (l)   "OFFERING DATE" means the first business day of each Offering
Period of the Plan, except that, in the case where employees enroll in the plan
after the first business day of the Offering Period, the Offering Date shall
mean the first business day after the first Purchase Date of the Offering
Period.

                  Options granted on the first business day after the first
Purchase Date of the Offering Period will be subject to the same terms as the
option granted on the first business day of the Offering Period except that they
will have a different grant date (thus, potentially a different exercise price)
and, because they expire at the same time as the options granted on the first
business day of the such Offering Period, a shorter term.

            (m)   "OFFERING PERIOD" means a period of twelve (12) months
commencing on July 1 of each year, or, subject to the provisions of paragraph
11, a period of six (6) months commencing on or about January 1 of each year.

            (n)   "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 thereunder.

            (o)   "PLAN" means this 1999 Employee Stock Purchase Plan.

            (p)   "PURCHASE DATE" means the last day of each Purchase Period of
the Plan.

            (q)   "PURCHASE PERIOD" means a period of six (6) months within an
Offering Period.

            (r)   "PURCHASE PRICE" means with respect to a Purchase Period an
amount equal to 85% of the Fair Market Value (as defined in Section 7(b) below)
of a Share of Common Stock on the Offering Date or on the Purchase Date,
whichever is lower; provided, however, that in the event (i) of any
shareholder-approved increase in the number of Shares available for issuance
under the Plan, and (ii) all or a portion of such additional Shares are to be
issued with respect to one or more Offering Periods that are underway at the
time of such increase ("Additional Shares"), and (iii) the Fair Market Value of
a Share of Common Stock on the date of such increase (the "Approval Date Fair
Market Value") is higher than the Fair Market Value on the Offering Date for any
such Offering Period, then in such instance the Purchase Price with respect to
Additional Shares shall be 85% of the Approval Date Fair Market Value or the
Fair Market Value of a Share of Common Stock on the Purchase Date, whichever is
lower.

<PAGE>   3

            (s)   "SHARE" means a share of Common Stock, as adjusted in
accordance with Section 19 of the Plan.

            (t)   "SUBSIDIARY" means a corporation, domestic or foreign, of
which not less than 50% of the voting shares are held by the Company or a
Subsidiary, whether or not such corporation now exists or is hereafter organized
or acquired by the Company or a Subsidiary.

      3.    ELIGIBILITY.

            (a)   Any person who is an Employee as of the Offering Date of a
given Offering Period shall be eligible to participate in such Offering Period
under the Plan, subject to the requirements of Section 5(a) and the limitations
imposed by Section 423(b) of the Code.

            (b)   Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an option under the Plan (i) if, immediately after the
grant, such Employee (or any other person whose stock would be attributed to
such Employee pursuant to Section 424(d) of the Code) would own capital stock of
the Company and/or hold outstanding options to purchase stock possessing five
percent (5%) or more of the total combined voting power or value of all classes
of stock of the Company or of any subsidiary of the Company, or (ii) if such
option would permit his or her rights to purchase stock under all employee stock
purchase plans (described in Section 423 of the Code) of the Company and its
Subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand Dollars
($25,000) of the Fair Market Value (as defined in Section 7(b) below) of such
stock (determined at the time such option is granted) for each calendar year in
which such option is outstanding at any time.

      4.    OFFERING PERIODS AND PURCHASE PERIODS.

            (a)   OFFERING PERIODS. The Plan shall be implemented by a series of
Offering Periods of twelve (12) months' duration, with new Offering Periods
commencing on or about July 1 of each year (or at such other time or times as
may be determined by the Board of Directors; or, subject to the provisions of
paragraph 11, a period of six (6) months commencing on or about January 1 of
each year). The first Offering Period shall commence on July 1, 1999. The Plan
shall continue until terminated in accordance with Section 19 hereof. The Board
of Directors of the Company shall have the power to change the duration and/or
the frequency of Offering Periods with respect to future offerings without
shareholder approval if such change is announced at least five (5) business days
prior to the scheduled beginning of the first Offering Period to be affected.

            (b)   PURCHASE PERIODS. Each Offering Period shall consist of two
(2) consecutive purchase periods of six (6) months' duration. The last day of
each Purchase Period shall be the "Purchase Date" for such Purchase Period. A
Purchase Period commencing on July 1 shall end on the next December 31. A
Purchase Period commencing on January 1 shall end on the next June 30. The first
Purchase Period shall commence on July 1, 1999 and shall end on December 31,
1999. The Board of Directors of the Company shall have the power to change the
duration and/or frequency of Purchase Periods with respect to future purchases
without shareholder

<PAGE>   4

approval if such change is announced at least five (5) business days prior to
the scheduled beginning of the first Purchase Period to be affected.

      5.    PARTICIPATION.

            (a)   An eligible Employee may become a participant in the Plan by
completing a subscription agreement on the form provided by the Company and
filing it with the Company's Human Resources Department no later than five (5)
business days prior to the applicable Offering Date, unless a later time for
filing the subscription agreement is set by the Board for all eligible Employees
with respect to a given Offering Period. The subscription agreement shall set
forth the percentage of the participant's Compensation (subject to Section 6(a)
below) to be paid as Contributions pursuant to the Plan.

            (b)   Payroll deductions shall commence on the first payroll
following the Offering Date and shall end on the last payroll paid on or prior
to the last Purchase Period of the Offering Period to which the subscription
agreement is applicable, unless sooner terminated by the participant as provided
in Section 10.

      6.    METHOD OF PAYMENT OF CONTRIBUTIONS.

            (a)   A participant shall elect to have payroll deductions made on
each payday during the Offering Period in an amount not less than one percent
(1%) and not more than ten percent (10%) (or such greater percentage as the
Board may establish from time to time before an Offering Date) of such
participant's Compensation on each payday during the Offering Period. All
payroll deductions made by a participant shall be credited to his or her account
under the Plan. A participant may not make any additional payments into such
account.

            (b)   A participant may discontinue his or her participation in the
Plan as provided in Section 10, or, on one occasion only during a Purchase
Period may increase or decrease the rate of his or her Contributions with
respect to the Purchase Period by completing and filing with the Company a new
subscription agreement authorizing a change in the payroll deduction rate. The
change in rate shall be effective as of the beginning of the next payroll period
following the date of filing of the new subscription agreement, if the agreement
is filed at least five (5) business days prior to such date and, if not, as of
the beginning of the next succeeding payroll period.

            (c)   Notwithstanding the foregoing, to the extent necessary to
comply with Section 423(b)(8) of the Code and Section 3(b) herein, a
participant's payroll deductions may be decreased during any Offering Period
scheduled to end during the current calendar year to 0% at such time that the
aggregate of all payroll deductions accumulated with respect to such Offering
Period and any other Offering Period ending within the same calendar year equal
$21,250. Payroll deductions shall re-commence at the rate provided in such
participant's subscription agreement at the beginning of the first Offering
Period which is scheduled to end in the following calendar year, unless
terminated by the participant as provided in Section 10.

<PAGE>   5

      7.    GRANT OF OPTION.

            (a)   On the Offering Date of each Offering Period, each eligible
Employee participating in such Offering Period shall be granted an option to
purchase on each Purchase Date a number of Shares of the Company's Common Stock
determined by dividing such Employee's Contributions accumulated prior to such
Purchase Date and retained in the participant's account as of the Purchase Date
by the applicable Purchase Price; provided however that the maximum number of
Shares an Employee may purchase during each Offering Period shall be determined
at the Offering Date by dividing $25,000 by the fair market value of a share of
the Company's Common Stock on the Offering Date, and provided further that such
purchase shall be subject to the limitations set forth in Sections 3(b) and 13.

            (b)   The fair market value of the Company's Common Stock on a given
date (the "Fair Market Value") shall be determined by the Board in its
discretion based on the closing sales price of the Common Stock for such date
(or, in the event that the Common Stock is not traded on such date, on the
immediately preceding trading date), as reported by the National Association of
Securities Dealers Automated Quotation (Nasdaq) National Market or, if such
price is not reported, the mean of the bid and asked prices per share of the
Common Stock as reported by Nasdaq or, in the event the Common Stock is listed
on a stock exchange, the Fair Market Value per share shall be the closing sales
price on such exchange on such date (or, in the event that the Common Stock is
not traded on such date, on the immediately preceding trading date), as reported
in The Wall Street Journal.

      8.    EXERCISE OF OPTION. Unless a participant withdraws from the Plan as
provided in Section 10, his or her option for the purchase of Shares will be
exercised automatically on each Purchase Date of an Offering Period, and the
maximum number of full Shares subject to the option will be purchased at the
applicable Purchase Price with the accumulated Contributions in his or her
account. No fractional Shares shall be issued. The Shares purchased upon
exercise of an option hereunder shall be deemed to be transferred to the
participant on the Purchase Date. During his or her lifetime, a participant's
option to purchase Shares hereunder is exercisable only by him or her.

      9.    DELIVERY. As promptly as practicable after each Purchase Date of
each Offering Period, the Company shall arrange the delivery to each
participant, as appropriate, of a certificate representing the Shares purchased
upon exercise of his or her option. Any payroll deductions accumulated in a
participant's account which are not sufficient to purchase a full Share shall be
retained in the participant's account for the subsequent Purchase Period or
Offering Period, subject to earlier withdrawal by the participant as provided in
Section 10 below. Any other amounts left over in a participant's account after a
Purchase Date shall be returned to the participant.

      10.   VOLUNTARY WITHDRAWAL; TERMINATION OF EMPLOYMENT.

            (a)   A participant may withdraw all but not less than all the
Contributions credited to his or her account under the Plan at any time prior to
each Purchase Date by submitting a completed "Notice of Withdrawal" form to the
Company's Human Resources Department. All of the participant's Contributions
credited to his or her account will be paid to him or her promptly after receipt
of his or her notice of withdrawal and his or her option for the current

<PAGE>   6

period will be automatically terminated, and no further Contributions for the
purchase of Shares will be made during the Offering Period.

            (b)   Upon termination of the participant's Continuous Status as an
Employee prior to the Purchase Date of an Offering Period for any reason,
including retirement or death, the Contributions credited to his or her account
will be returned to him or her or, in the case of his or her death, to the
person or persons entitled thereto under Section 14, and his or her option will
be automatically terminated.

            (c)   In the event an Employee fails to remain in Continuous Status
as an Employee of the Company for at least twenty (20) hours per week during the
Offering Period in which the employee is a participant, he or she will be deemed
to have elected to withdraw from the Plan and the Contributions credited to his
or her account will be returned to him or her and his or her option terminated.

            (d)   A participant's withdrawal from an offering will not have any
effect upon his or her eligibility to participate in a succeeding offering or in
any similar plan which may hereafter be adopted by the Company.

      11.   AUTOMATIC WITHDRAWAL. If the Fair Market Value of the Shares on the
first Purchase Date of an Offering Period is less than the Fair Market Value of
the Shares on the Offering Date for such Offering Period, then every participant
shall automatically (i) be withdrawn from such Offering Period at the close of
such Purchase Date and after the acquisition of Shares for such Purchase Period,
and (ii) be enrolled in a six-month Offering Period commencing on the first
business day subsequent to such Purchase Period.

      12.   INTEREST. No interest shall accrue on the Contributions of a
participant in the Plan.

      13.   STOCK.

            (a)   Subject to adjustment as provided in Section 19, the maximum
number of Shares which shall be made available for sale under the Plan shall be
100,000 Shares. If the Board determines that, on a given Purchase Date, the
number of shares with respect to which options are to be exercised may exceed
(i) the number of shares of Common Stock that were available for sale under the
Plan on the Offering Date of the applicable Offering Period, or (ii) the number
of shares available for sale under the Plan on such Purchase Date, the Board may
in its sole discretion provide (x) that the Company shall make a pro rata
allocation of the Shares of Common Stock available for purchase on such Offering
Date or Purchase Date, as applicable, in as uniform a manner as shall be
practicable and as it shall determine in its sole discretion to be equitable
among all participants exercising options to purchase Common Stock on such
Purchase Date, and continue all Offering Periods then in effect, or (y) that the
Company shall make a pro rata allocation of the shares available for purchase on
such Offering Date or Purchase Date, as applicable, in as uniform a manner as
shall be practicable and as it shall determine in its sole discretion to be
equitable among all participants exercising options to purchase Common Stock on
such Purchase Date, and terminate any or all Offering Periods then in effect
pursuant to Section 20 below. The Company may make pro rata allocation of the
Shares available on the

<PAGE>   7

Offering Date of any applicable Offering Period pursuant to the preceding
sentence, notwithstanding any authorization of additional Shares for issuance
under the Plan by the Company's shareholders subsequent to such Offering Date.

            (b)   The participant shall have no interest or voting right in
Shares covered by his or her option until such option has been exercised.

            (c)   Shares to be delivered to a participant under the Plan will be
registered in the name of the participant or in the name of the participant and
his or her spouse.

      14.   ADMINISTRATION. The Board, or a committee named by the Board, shall
supervise and administer the Plan and shall have full power to adopt, amend and
rescind any rules deemed desirable and appropriate for the administration of the
Plan and not inconsistent with the Plan, to construe and interpret the Plan, and
to make all other determinations necessary or advisable for the administration
of the Plan.

      15.   DESIGNATION OF BENEFICIARY.

            (a)   A participant may file a written designation of a beneficiary
who is to receive any Shares and cash, if any, from the participant's account
under the Plan in the event of such participant's death subsequent to the end of
a Purchase Period but prior to delivery to him or her of such Shares and cash.
In addition, a participant may file a written designation of a beneficiary who
is to receive any cash from the participant's account under the Plan in the
event of such participant's death prior to the Purchase Date of an Offering
Period. If a participant is married and the designated beneficiary is not the
spouse, spousal consent shall be required for such designation to be effective.

            (b)   Such designation of beneficiary may be changed by the
participant (and his or her spouse, if any) at any time by written notice. In
the event of the death of a participant and in the absence of a beneficiary
validly designated under the Plan who is living at the time of such
participant's death, the Company shall deliver such Shares and/or cash to the
executor or administrator of the estate of the participant, or if no such
executor or administrator has been appointed (to the knowledge of the Company),
the Company, in its discretion, may deliver such Shares and/or cash to the
spouse or to any one or more dependents or relatives of the participant, or if
no spouse, dependent or relative is known to the Company, then to such other
person as the Company may designate.

      16.   TRANSFERABILITY. Neither Contributions credited to a participant's
account nor any rights with regard to the exercise of an option or to receive
Shares under the Plan may be assigned, transferred, pledged or otherwise
disposed of in any way (other than by will, the laws of descent and
distribution, or as provided in Section 15) by the participant. Any such attempt
at assignment, transfer, pledge or other disposition shall be without effect,
except that the Company may treat such act as an election to withdraw funds in
accordance with Section 10.

      17.   USE OF FUNDS. All Contributions received or held by the Company
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such Contributions.

<PAGE>   8

      18.   REPORTS. Individual accounts will be maintained for each participant
in the Plan. Statements of account will be given to participating Employees at
least annually, which statements will set forth the amounts of Contributions,
the per Share Purchase Price, the number of Shares purchased and the remaining
cash balance, if any.

      19.   ADJUSTMENTS UPON CHANGES IN CAPITALIZATION; CORPORATE TRANSACTIONS.

            (a)   ADJUSTMENT. Subject to any required action by the shareholders
of the Company, the number of Shares covered by each option under the Plan which
has not yet been exercised and the number of Shares which have been authorized
for issuance under the Plan but have not yet been placed under option
(collectively, the "Reserves"), as well as the price per Share of Common Stock
covered by each option under the Plan which has not yet been exercised, 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 (including any such change
in the number of Shares of Common Stock effected in connection with a change in
domicile of the Company), or any other increase or decrease in the number of
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." 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 issue
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.

            (b)   CORPORATE TRANSACTIONS. In the event of a dissolution or
liquidation of the Company, any Purchase Period and Offering Period then in
progress will terminate immediately prior to the consummation of such action,
unless otherwise provided by the Board. In the event of a Corporate Transaction,
each option outstanding under the Plan shall be assumed or an equivalent option
shall be substituted by the successor corporation or a parent or Subsidiary of
such successor corporation. In the event that the successor corporation refuses
to assume or substitute for outstanding options, each Purchase Period and
Offering Period then in progress shall be shortened and a new Purchase Date
shall be set (the "New Purchase Date"), as of which date any Purchase Period and
Offering Period then in progress will terminate. The New Purchase Date shall be
on or before the date of consummation of the transaction and the Board shall
notify each participant in writing, at least ten (10) days prior to the New
Purchase Date, that the Purchase Date for his or her option has been changed to
the New Purchase Date and that his or her option will be exercised automatically
on the New Purchase Date, unless prior to such date he or she has withdrawn from
the Offering Period as provided in Section 10. For purposes of this Section 19,
an option granted under the Plan shall be deemed to be assumed, without
limitation, if, at the time of issuance of the stock or other consideration upon
a Corporate Transaction, each holder of an option under the Plan would be
entitled to receive upon exercise of the option the same number and kind of
shares of stock or the same amount of property, cash or securities as such
holder would have been entitled to receive upon the occurrence of the
transaction if the holder had been, immediately prior to the transaction, the
holder of the number of Shares of Common Stock covered by the option at such
time (after giving effect to any

<PAGE>   9

adjustments in the number of Shares covered by the option as provided for in
this Section 19); provided however that if the consideration received in the
transaction is not solely common stock of the successor corporation or its
parent (as defined in Section 424(e) of the Code), the Board may, with the
consent of the successor corporation, provide for the consideration to be
received upon exercise of the option 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 transaction.

      The Board may, if it so determines in the exercise of its sole discretion,
also make provision for adjusting the Reserves, as well as the price per Share
of Common Stock covered by each outstanding option, in the event that the
Company effects one or more reorganizations, recapitalizations, rights offerings
or other increases or reductions of Shares of its outstanding Common Stock, and
in the event of the Company's being consolidated with or merged into any other
corporation.

      20.   AMENDMENT OR TERMINATION.

            (a)   The Board may at any time and for any reason terminate or
amend the Plan. Except as provided in Section 19, no such termination of the
Plan may affect options previously granted, provided that the Plan or an
Offering Period may be terminated by the Board on a Purchase Date or by the
Board's setting a new Purchase Date with respect to an Offering Period and
Purchase Period then in progress if the Board determines that termination of the
Plan and/or the Offering Period is in the best interests of the Company and the
shareholders or if continuation of the Plan and/or the Offering Period would
cause the Company to incur adverse accounting charges as a result of a change
after the effective date of the Plan in the generally accepted accounting rules
applicable to the Plan. Except as provided in Section 19 and in this Section 20,
no amendment to the Plan shall make any change in any option previously granted
which adversely affects the rights of any participant. In addition, to the
extent necessary to comply with Rule 16b-3 under the Exchange Act, or under
Section 423 of the Code (or any successor rule or provision or any applicable
law or regulation), the Company shall obtain shareholder approval in such a
manner and to such a degree as so required.

            (b)   Without shareholder consent and without regard to whether any
participant rights may be considered to have been adversely affected, the Board
(or its committee) shall be entitled to change the Offering Periods and Purchase
Periods, limit the frequency and/or number of changes in the amount withheld
during an Offering Period, establish the exchange ratio applicable to amounts
withheld in a currency other than U.S. dollars, permit payroll withholding in
excess of the amount designated by a participant in order to adjust for delays
or mistakes in the Company's processing of properly completed withholding
elections, establish reasonable waiting and adjustment periods and/or accounting
and crediting procedures to ensure that amounts applied toward the purchase of
Common Stock for each participant properly correspond with amounts withheld from
the participant's Compensation, and establish such other limitations or
procedures as the Board (or its committee) determines in its sole discretion
advisable which are consistent with the Plan.

<PAGE>   10

      21.   NOTICES. All notices or other communications by a participant to the
Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

      22.   CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and
delivery of such Shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Exchange Act, the rules and regulations
promulgated thereunder, applicable 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 opinion of
counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law.

      23.   TERM OF PLAN; EFFECTIVE DATE. The Plan shall become effective upon
approval by the Company's shareholders. It shall continue in effect for a term
of ten (10) years unless sooner terminated under Section 20.

      24.   ADDITIONAL RESTRICTIONS OF RULE 16b-3. The terms and conditions of
options granted hereunder to, and the purchase of Shares by, persons subject to
Section 16 of the Exchange Act shall comply with the applicable provisions of
Rule 16b-3. This Plan shall be deemed to contain, and such options shall
contain, and the Shares issued upon exercise thereof shall be subject to, such
additional conditions and restrictions as may be required by Rule 16b-3 to
qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

<PAGE>   11

                                   LASERSCOPE

                        1999 EMPLOYEE STOCK PURCHASE PLAN
                             SUBSCRIPTION AGREEMENT

                                                            New Election ______
                                                      Change of Election ______

      1.    I, ________________________, hereby elect to participate in the
Laserscope 1999 Employee Stock Purchase Plan (the "Plan") for the Offering
Period ______________, ____ to _______________, ____, and subscribe to purchase
shares of the Company's Common Stock in accordance with this Subscription
Agreement and the Plan.

      2.    I elect to have Contributions in the amount of ____% of my
Compensation, as those terms are defined in the Plan, applied to this purchase.
I understand that this amount must not be less than 1% and not more than 10% of
my Compensation during the Offering Period. (Please note that no fractional
percentages are permitted).

      3.    I hereby authorize payroll deductions from each paycheck during the
Offering Period at the rate stated in Item 2 of this Subscription Agreement. I
understand that all payroll deductions made by me shall be credited to my
account under the Plan and that I may not make any additional payments into such
account. I understand that all payments made by me shall be accumulated for the
purchase of shares of Common Stock at the applicable purchase price determined
in accordance with the Plan. I further understand that, except as otherwise set
forth in the Plan, shares will be purchased for me automatically on the Purchase
Date of each Offering Period unless I otherwise withdraw from the Plan by giving
written notice to the Company for such purpose.

      4.    I understand that I may discontinue at any time prior to the
Purchase Date my participation in the Plan as provided in Section 10 of the
Plan. I also understand that I can increase or decrease the rate of my
Contributions on one occasion only during any Purchase Period by completing and
filing a new Subscription Agreement with such increase or decrease taking effect
as of the beginning of the payroll period following the date of filing of the
new Subscription Agreement, if filed at least five (5) business days prior to
the beginning of such payroll period. Further, I may change the rate of
deductions for future Offering Periods by filing a new Subscription Agreement,
and any such change will be effective as of the beginning of the next Offering
Period. In addition, I acknowledge that, unless I discontinue my participation
in the Plan as provided in Section 10 of the Plan, my election will continue to
be effective for each successive Offering Period.

      5.    I have received a copy of the Company's most recent description of
the Plan and a copy of the complete "Laserscope 1999 Employee Stock Purchase
Plan." I understand that my participation in the Plan is in all respects subject
to the terms of the Plan.

      6.    Shares purchased for me under the Plan should be issued in the
name(s) of (name of employee or employee and spouse only):

<PAGE>   12

                                          -------------------------------------

                                          -------------------------------------

      7.    In the event of my death, I hereby designate the following as my
beneficiary(ies) to receive all payments and shares due to me under the Plan:

NAME: (Please print)
                                          -------------------------------------
                                          (First)      (Middle)     (Last)

-------------------------------------     -------------------------------------
(Relationship)                            (Address)

                                          -------------------------------------

      8.    I understand that if I dispose of any shares received by me pursuant
to the Plan within 2 years after the Offering Date (the first day of the
Offering Period during which I purchased such shares) or within 1 year after the
Purchase Date, I will be treated for federal income tax purposes as having
received ordinary compensation income at the time of such disposition in an
amount equal to the excess of the fair market value of the shares on the
Purchase Date over the price which I paid for the shares, regardless of whether
I disposed of the shares at a price less than their fair market value at the
Purchase Date. The remainder of the gain or loss, if any, recognized on such
disposition will be treated as capital gain or loss.

      I hereby agree to notify the Company in writing within 30 days after the
date of any such disposition, and I will make adequate provision for federal,
state or other tax withholding obligations, if any, which arise upon the
disposition of the Common Stock. The Company may, but will not be obligated to,
withhold from my compensation the amount necessary to meet any applicable
withholding obligation including any withholding necessary to make available to
the Company any tax deductions or benefits attributable to the sale or early
disposition of Common Stock by me.

      9.    If I dispose of such shares at any time after expiration of the
2-year and 1-year holding periods, I understand that I will be treated for
federal income tax purposes as having received compensation income only to the
extent of an amount equal to the lesser of (1) the excess of the fair market
value of the shares at the time of such disposition over the purchase price
which I paid for the shares under the option, or (2) 15% of the fair market
value of the shares on the Offering Date. The remainder of the gain or loss, if
any, recognized on such disposition will be treated as capital gain or loss.

      I understand that this tax summary is only a summary and is subject to
change. I further understand that I should consult a tax advisor concerning the
tax implications of the purchase and sale of stock under the Plan.

      10.   I hereby agree to be bound by the terms of the Plan. The
effectiveness of this Subscription Agreement is dependent upon my eligibility to
participate in the Plan.

<PAGE>   13

SIGNATURE:
          ---------------------------

SOCIAL SECURITY #:
                  -------------------

DATE:
     --------------------------------

SPOUSE'S SIGNATURE (necessary
if beneficiary is not spouse):

-------------------------------------
(Signature)

-------------------------------------
(Print name)

<PAGE>   14

                                   LASERSCOPE

                        1999 EMPLOYEE STOCK PURCHASE PLAN

                              NOTICE OF WITHDRAWAL

      I, __________________________, hereby elect to withdraw my participation
in the Laserscope 1999 Employee Stock Purchase Plan (the "Plan") for the
Offering Period that began on _________ ___, _____. This withdrawal covers all
Contributions credited to my account and is effective on the first day of the
payroll period commencing after I submit this form to the Company's Human
Resources Department.

      I understand that all Contributions credited to my account will be paid to
me within ten (10) business days of receipt by the Company of this Notice of
Withdrawal and that my option for the current period will automatically
terminate, and that no further Contributions for the purchase of shares can be
made by me during the Offering Period.

      The undersigned further understands and agrees that he or she shall be
eligible to participate in succeeding offering periods only by delivering to the
Company a new Subscription Agreement.

Dated:
      ----------------------------        -------------------------------------
                                          Signature of Employee

                                          -------------------------------------
                                          Social Security Number

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