Document:

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                                                                   EXHIBIT 10.17

                            LAMAR ADVERTISING COMPANY

                             RESTRICTED STOCK NOTICE

Lamar Advertising Company. (the "Company") hereby awards to you (the
"Shareholder") shares of Class A Common Stock of the Company as follows:

    Name of Shareholder:                             ________________________

    Total Number of Shares Awarded:                  ________________________

    Award Date:                                      ________________________

    Vesting Commencement Date:                       ________________________

    Number of Shares Subject to Vesting Schedule:    ________________________

    Vesting Schedule:                                ________________________

    Other Terms:                                     ________________________

By your signature and the signature of the Company's representative below, you
and the Company agree that this Award is made under and governed by the terms of
the Company's 1996 Equity Incentive Plan (as amended through February 2006) and
this Restricted Stock Agreement (this "Agreement"), which includes the
incorporated terms, conditions and agreements attached to and made a part of
this Agreement.

SHAREHOLDER                               LAMAR ADVERTISING COMPANY

_________________________________         By: _____________________________
Print Name: _____________________         Print Name: _____________________
Address: ________________________         Title: __________________________

<PAGE>

                            LAMAR ADVERTISING COMPANY

                      RESTRICTED STOCK AGREEMENT UNDER THE

          1996 EQUITY INCENTIVE PLAN (AS AMENDED THROUGH FEBRUARY 2006)

                        INCORPORATED TERMS AND CONDITIONS

      1. Issuance of Shares. On the terms and conditions set forth in this
Agreement, the Company is issuing to the Shareholder on the Award Date, the
number of Shares of the Company's Class A Common Stock set forth on said
signature page (the "Shares"). The award of the Shares is (i) made pursuant to
and is governed by the Company's 1996 Equity Incentive Plan (as amended through
February 2006) (the "Plan"), the terms of which are incorporated into this
Agreement by this reference. Unless the context otherwise requires, capitalized
terms used herein without definitions shall have the respective meanings
assigned to them in the Plan. By signing this Agreement, the Shareholder
acknowledges receipt of a copy of the Plan.

      2. Purpose. The purpose of the Award of the Shares to the Shareholder is
to encourage the Shareholder to enter into and/or maintain a continuing and
long-term relationship with the Company. It is not a purpose of this Award to
reward the Shareholder for the completion of any specific project or of any
discrete period of service which may fall between consecutive vesting periods.

      3. Award Restrictions. The Shares covered by this restricted stock award
shall be subject to the vesting schedule set forth on the signature page. The
Company shall cause a stock certificate covering the requisite number of Shares
in the name of the Shareholder or beneficiary(ies) to be distributed as soon as
administratively feasible but within a reasonable period of time.

      Upon receipt of such stock certificate(s), the Shareholder or
beneficiary(ies) are free to hold or dispose of such certificate at will,
subject to the requirements of Section 4. During the restriction period, the
Shares covered by the restricted stock award are not transferable by the
Shareholder by means of sale, assignment, exchange, pledge, or otherwise, except
by will or the laws of descent and distribution as provided in Section 4. The
naming of a designated beneficiary under the Plan does not constitute a
transfer.

      4. Transfer Rights and Restrictions.

            (a) Restrictions on Transfer. The Shareholder shall not sell,
assign, transfer, pledge, hypothecate or otherwise dispose of, by operation of
law or otherwise (collectively "transfer"), any of the Shares, or any interest
therein, unless such transfer is made in compliance with the terms and
conditions of this Agreement. All restrictions on transfer shall expire upon the
vesting of Shares.

            (b) Permitted Transfers of Unvested Shares. The Shareholder shall
have the right to make Permitted Transfers of unvested Shares. For purposes of
this Agreement, "Permitted Transfer" shall mean any transfer of all or any
portion of the vested Shares by will or the laws of descent and distribution and
any transfer by the Shareholder during his or her lifetime of all or any portion
of his or her unvested Shares to or for the benefit of any spouse, child or
grandchild (including any natural born, adopted or step-child or

<PAGE>

step-grandchild) of the Shareholder, or to a trust for the benefit of the
Shareholder and/or any of the foregoing or to a partnership or limited liability
company, the partners or members of which include only the Shareholder and/or
any of the foregoing or any other person or entity determined by the Board;
provided, however, that it shall be a condition of each such Permitted Transfer
that (i) the transferee agrees to be bound by the terms of this Agreement and
(ii) the Shareholder has complied with all applicable laws in connection with
such Permitted Transfer. For purposes of this Agreement, any donee or transferee
of the Shareholder's Shares shall be treated as the "Shareholder."

            (c) Effect of Prohibited Transfer. Any transfer of Shares in
violation of this Agreement shall be void. The Company shall not be required (i)
to transfer on its books any of the Shares which shall have been transferred in
violation of this Agreement or (ii) to treat as the owner of such Shares or pay
dividends to any transferee to whom any such Shares shall have been so
transferred.

      5. No Retention Rights. Nothing in the Plan or this Agreement confers upon
the Shareholder any right to continue in the service of the Company for any
period of specific duration or shall be construed to interfere with or otherwise
restrict in any way the rights of the Company or of the Shareholder, which
rights are expressly reserved by each, to terminate the Shareholder's service at
any time and for any reason, with or without cause.

      6. Taxes. As a condition to the issuance of any Shares hereunder, the
Shareholder hereby agrees that, if the Company in its discretion determines that
it is or could be obligated to withhold any tax in connection with the issuance,
vesting or transfer of such Shares, the Company may, in its discretion, withhold
the appropriate amount of tax (i) in cash from the Shareholder's wages or other
remuneration or (ii) in kind from the Shares or other property otherwise
deliverable to the Shareholder. The Shareholder further agrees that, if the
Company has not previously withheld an amount sufficient to satisfy the
withholding obligation of the Company, the Shareholder will on demand make
reimbursement in cash for the amount underwithheld or, if permitted by the
Board, provide such cash or other security as the Board deems adequate to meet
the liability or potential liability of the Company for the withholding of tax,
and to augment such cash or other security from time to time in any amount
reasonably deemed necessary by the Board to preserve the adequacy of such cash
or other security.

      7. Amendments. The Board may at any time or times amend the Plan or this
Agreement for the purpose of satisfying the requirements of any changes in
applicable laws or regulations or for any other purpose which at the time may be
permitted by law. No termination or amendment of the Plan or amendment of this
Agreement shall, without the Shareholder's consent, materially adversely affect
the Shareholder's rights under this Agreement. Notwithstanding the foregoing,
this Agreement shall be amended as required by Section 10(g) below to the extent
required by regulatory or statutory guidance.

      8. Adjustments for Stock Splits, Stock Dividends, Etc. If from time to
time while this Agreement remains in force and effect there is any stock
split-up, stock dividend, stock distribution or other reclassification of the
Common Stock of the Company, any and all new, substituted or additional
securities to which the Shareholder is entitled by reason of his or her
ownership of Shares shall be immediately subject to the restrictions on transfer
and other provisions of this Agreement in the same manner and to the same extent
as such Shares.

<PAGE>

      9. Consistency with Plan. If there is any inconsistency between the
provisions of this Agreement and the provisions of the Plan, the latter shall
control.

      10. Miscellaneous.

            (a) Severability; Governing Law. If any provisions of this Agreement
shall be determined to be illegal or unenforceable by any court of law, the
remaining provisions shall be severable and enforceable in accordance with their
terms. This Agreement shall be governed by, and construed in accordance with,
the internal laws of the State of Delaware, without giving effect to the
principles of the conflicts of laws thereof.

            (b) Injunctive Relief. It is acknowledged that it will be impossible
to measure the damages that would be suffered by the Company if the Shareholder
fails to comply with the provisions of this Agreement and that, in the event of
any such failure, the Company will not have an adequate remedy at law. The
Company shall, therefore, be entitled to obtain specific performance of each of
the Shareholder's obligations hereunder and to obtain immediate injunctive
relief. The Shareholder shall not urge, as a defense to any proceeding for such
specific performance or injunctive relief, that the Company has an adequate
remedy at law.

            (c) Binding Effect. This Agreement shall be binding upon and inure
to the benefit of the parties and their respective heirs, executors,
administrators, successors and permitted assigns.

            (d) Notices. All notices required or permitted hereunder shall be in
writing and be effective upon personal delivery, upon deposit with the United
States Post Office, by registered or certified mail, postage prepaid, or upon
deposit with a recognized express overnight courier service, addressed, if to
the Company, to its principal executive office at the time, Attention:
President, and if to the Shareholder, to the address shown beneath his or her
signature on the signature page of this Agreement, or at such other address or
addresses as either party shall designate to the other in accordance with this
Section 10(d).

            (e) Entire Agreement. This Agreement, together with the Plan,
constitutes the entire agreement between the parties hereto pertaining to the
subject matter hereof and supersedes all prior and contemporaneous agreements
and understandings, whether oral or written, of the parties hereto concerning
the subject matter hereof. In particular, the Shares granted hereunder satisfy
all outstanding claims which the Shareholder has with respect to the equity of
the Company.

            (f) Waivers. Any provision contained in this Agreement may be
waived, either generally or in any particular instance, by the Board or by the
Shareholder, but no such waiver by the Board shall operate to the detriment of
the Shareholder without the Shareholder's consent.

            (g) Statutory Requirements and Subsequent Amendment. This Agreement
and the award of Restricted Stock hereunder is intended to be exempt from the
requirements of the American Jobs Creation Act, specifically with respect to the
definition of deferred compensation and the provisions of section 409A of the
Code. To the extent required by subsequent guidance, whether statutory or
regulatory, the Company and Shareholder agree that any Restricted Stock awarded
hereunder may be modified, rescinded or substituted with an

<PAGE>

award of equal economic value as required to maintain exemption from the
provisions of section 409A of the Code.

            (h) Administration. The Committee shall have full authority and
discretion to decide all matters relating to the administration and
interpretation of this Agreement. The Committee shall have full power and
authority to pass and decide upon cases in conformity with the objectives of
this Agreement under such rules as the Board of the Company may establish. Any
decision made or action taken by the Company, the Board, or the Committee
arising out of, or in connection with, the administration, interpretation, and
effect of this Agreement shall be at their absolute discretion and will be
conclusive and binding on all parties. No member of the Board, the Committee, or
employee of the Company shall be liable for any act or action hereunder, whether
of omission or commission, by the Recipient or by any agent to whom duties in
connection with the administration of this Agreement have been delegated in
accordance with the provision of this Agreement.exv10w1c

 

Exhibit
10.1C

LASERSCOPE

2004 STOCK OPTION PLAN

STOCK OPTION AGREEMENT

NOTICE OF STOCK OPTION GRANT

«Optionee»

 

     You have been granted an option to purchase Common Stock of Laserscope (the “Company”) as
follows:

	 	 	 
	Date of Grant

	 	[Date of Grant]
	 
	 	 
	Exercise Price Per Share:

	 	$«ExercisePrice»
	 
	 	 
	Total Number of Shares Granted:

	 	«SharesGranted»
	 
	 	 
	Total Price of Shares Granted:

	 	$«TotalExercisePrice»
	 
	 	 
	Type of Option:

	 	Incentive Stock Option (ISO)
	 
	 	 
	Term/Expiration Date:

	 	[10 Years from Date of Grant]
	 
	 	 
	Vesting Schedule:

	 	At the end of six months following the date of grant set forth in this
Agreement, 6/48th of the shares subject to this Option shall vest and this
Option shall become exercisable for such shares; and
	 
	 	 
	 

	 	At the end of each one-month period thereafter,
1/48th of the shares subject to this
Option shall vest and this Option shall become
exercisable for such shares and any shares
previously vested but unpurchased.
	 
	 	 
	Termination Period:

	 	Option may be exercised for a period of 90 days after termination of
employment or consulting relationship except as set out in Sections 7 and 8 of the
Laserscope 2004 Stock Option Plan (but in no event later than the Expiration Date).

 

 

By your signature and the signature of the Company’s representative below, you and the Company
agree that this option is granted under and governed by the terms and conditions of the Laserscope
2004 Stock Option Plan, which is attached and made a part of this
document.

	 	 	 	 	 
	OPTIONEE:	 	LASERSCOPE
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	Signature

	 	 	 	Signature
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	Eric Reuter
	«Optionee»     Date:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Print Name

	 	 	 	President & CEO

Page 2

 

LASERSCOPE

2004 STOCK OPTION PLAN

          1. Purposes of the Plan. The purposes of this Stock Option Plan are to
attract and retain the best available personnel for positions of substantial responsibility, to
provide additional incentive to Employees, Directors and Consultants and to promote the success of
the Company’s business.

     Options granted hereunder may be either Incentive Stock Options or Nonstatutory Stock Options,
at the discretion of the Administrator and as reflected in the terms of the written option
agreement.

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

	(a)	 	“Administrator” shall mean the Board or any of its Committees appointed
pursuant to Section 4 of the Plan.
	 
	(b)	 	“Board” shall mean the Board of Directors of the Company.
	 
	(c)	 	“Code” shall mean the Internal Revenue Code of 1986, as amended.
	 
	(d)	 	“Committee” shall mean a committee appointed by the Board in accordance with
Section 4(a) below, if one is appointed.
	 
	(e)	 	“Common Stock” shall mean the common stock of the Company and any other
securities into which such stock is changed, for which such stock is exchanged or which may be
issued in respect thereof.
	 
	(f)	 	“Company” shall mean Laserscope, a California corporation.
	 
	(g)	 	“Consultant” shall mean any person who is engaged by the Company or any
Parent or Subsidiary to render consulting services and is compensated for such consulting
services.
	 
	(h)	 	“Continuous Status as an Employee, Director or Consultant” shall mean the
absence of any interruption or termination of service as an Employee, Director or Consultant.
A person’s Continuous Status as an Employee, Director or Consultant shall not be considered
interrupted or terminated in the case of sick leave, military leave, or any other bona fide
leave of absence. An Employee’s Continuous Status as an Employee, Director or Consultant
terminates in any event when the approved leave ends unless he or she immediately returns to
active work. For purposes of this Plan, a change in status among Employee, Director or
Consultant will not constitute an interruption or termination of service as an Employee,
Director or Consultant.
	 
	(i)	 	“Director” shall mean a member of the Board whether compensated or not and
any director of a Parent or Subsidiary who is compensated (other than only paid a director’s
fee) for his or her services.
	 
	(j)	 	“Employee” shall mean any person who is a common-law employee of the Company
or any Parent or Subsidiary of the Company. The payment of a director’s fee by the Company or
any Parent or Subsidiary shall not be sufficient to constitute “employment” for purposes of
this definition.
	 
	(k)	 	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
	 
	(l)	 	“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 National Market System of the National Association of
Securities Dealers, Inc. Automated Quotation (“NASDAQ”) System) or is a NASDAQ small-cap
issue, its Fair Market Value shall be the closing price for such stock reported by the
applicable composite transactions report for such exchange or quoted on such system for the
applicable date, as such price is reported in The Wall Street Journal or such other
source as the Administrator deems reliable;
	 
	(ii)	 	If the Common Stock is traded over-the-counter on the date in question but is not a
NASDAQ national market or small-cap issue, then its Fair Market Value shall be the mean
between the last reported representative bid and asked prices for the Common Stock quoted by
the applicable trading market for the applicable date or;
	 
	(iii)	 	If none of the foregoing provisions is applicable, then Fair Market Value shall be
determined in good faith by the Administrator.
	 
	(m)	 	“Incentive Stock Option” shall mean an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code.
	 
	(n)	 	“Nonstatutory Stock Option” shall mean an Option not intended to qualify as
an Incentive Stock Option.
	 
	(o)	 	“Option” shall mean a stock option granted pursuant to the Plan.
	 
	(p)	 	“Optioned Stock” shall mean the Shares subject to an Option.
	 
	(q)	 	“Optionee” shall mean an Employee, Director or Consultant who receives an
Option.
	 
	(r)	 	“Parent” shall mean a “parent corporation,” whether now or hereafter
existing, as defined in Section 424(e) of the Code.
	 
	(s)	 	“Plan” shall mean this 2004 Stock Option Plan, as amended and restated on
March 4, 2005.
	 
	(t)	 	“Rule 16b-3” shall mean Rule 16b-3 promulgated under the Exchange Act as the
same may be amended from time to time, or any successor provision.
	 
	(u)	 	“Share” shall mean a share of the Common Stock.
	 
	(v)	 	“Subsidiary” shall mean 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 adjustment provisions of
Section 14 of the Plan, the maximum aggregate number of Shares that may be optioned and sold under
the Plan is 850,0001 shares 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 that were subject thereto shall, unless the Plan shall
have been terminated, become available for future grant under the Plan. Notwithstanding any other
provision of the Plan, Shares issued under the Plan and later repurchased by the Company shall not
become available for future grant or sale under the Plan.

1
The maximum aggregate number of Shares that may be optioned and sold
under the Plan was increased from 400,000 to 850,000 on March 4, 2005,
 as approved by the shareholders at the Annual Meeting of
Shareholders held on June 10, 2005.

 

 

          4. Administration of the Plan.

	(a)	 	Composition of Administrator.
	 
	(i)	 	Multiple Administrative Bodies. To the extent permitted by applicable law
and subject to the provisions of this Section 4, the Plan shall be administered by the Board
and/or one or more Committees appointed by the Board.
	 
	(ii)	 	Section 16 and Section 162(m) Persons. With respect to persons subject to
Section 16 of the Exchange Act, the Administrator shall be either (A) the Board or (B) a
Committee consisting of solely two (2) or more directors of the Board each of whom shall be a
“non-employee director” within the meaning of Rule 16b-3 (or its successor) under the Exchange
Act; provided, that, to the extent necessary for any Option intended to qualify as
performance-based compensation under Section 162(m) of the Code to so qualify, such award
shall be administered by solely two (2) or more directors of the Board each of whom shall be
an “outside director” within the meaning of Section 162(m) of the Code.
	 
	(iii)	 	Administration with Respect to Other Persons. Except as required by
subsection (ii) of this Section 4, the Plan shall be administered by (A) the Board or (B) a
Committee appointed by the Board, which Committee shall be constituted of two or more
directors of the Board (or otherwise in such a manner as permitted or required by applicable
law).
	 
	(iv)	 	General. Once a Committee has been appointed pursuant to subsection (ii) or
(iii) of this Section 4(a), 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
any Committee and appoint additional members thereof, remove members (with or without cause)
and appoint new members in substitution therefor, fill vacancies (however caused) and remove
all members of a Committee and thereafter directly administer the Plan, all to the extent
permitted by applicable law and, in the case of a Committee appointed under subsection (ii),
to the extent consistent with subsection (ii).
	 
	(b)	 	Powers of the Administrator. Subject to the provisions of the Plan and in
the case of a Committee, 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(l) of the Plan;
	 
	(ii)	 	to select the Employees, Directors and Consultants to whom Options may from time to
time be granted hereunder;
	 
	(iii)	 	to determine whether and to what extent Options are granted hereunder;
	 
	(iv)	 	to determine the number of shares of Common Stock to be covered by each Option
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 Option granted hereunder (including, but not limited to, the exercise price and any
restriction or limitation, or any vesting acceleration or waiver of forfeiture restrictions
regarding any Option and/or the shares of Common Stock relating thereto, based in each case on
such factors as the Administrator shall determine, in its sole discretion);
	 
	(vii)	 	to reduce the exercise price of any Option to the then current Fair Market Value if
the Fair Market Value of the Common Stock covered by such Option shall have declined since the
date the Option was granted;
	 
	(viii)	 	To determine whether Options or other rights under the Plan will be granted in
replacement of other grants under stock option or other compensation plans of an acquired
business;

 

 

	(ix)	 	To correct any defect, supply any omission, or reconcile any inconsistency in the
Plan or any Option Agreement;
	 
	(x)	 	To take any other actions deemed necessary or advisable for the administration of the
Plan;

	 	(xi)	 	To effectuate an exchange of Options for other Options or other consideration;
	 
	 	(xii)	 	To create such plans or subplans as may be necessary or advisable to allow the grant of
Options under the Plan in non-United States jurisdictions or to non-United States taxpayers; and
	 
	 	(xiii)	 	Within the limitations of the Plan, the Administrator may modify, extend, or assume
outstanding options, provided that no such action shall, without the consent of the Optionee, alter
or impair his or her rights or obligations under such Option.

	(c)	 	Effect of Administrator’s Decision. All decisions, determinations and
interpretations of the Administrator shall be final and binding on all Optionees and any other
holders of any Options.

          5. Eligibility

	(a)	 	Nonstatutory Stock Options may be granted to Employees, Directors and Consultants.
Incentive Stock Options may be granted only to Employees. An Employee, Director or Consultant
who has been granted an Option may, if he or she is otherwise eligible, be granted an
additional Option or Options.
	 
	(b)	 	Each Option shall be designated in the written option agreement as either an
Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such
designations, to the extent that the aggregate fair market value of stock with respect to
which “incentive stock options” (within the meaning of Section 422 of the Code) are
exercisable for the first time by an Optionee during any calendar year (under all plans of the
Company or any Parent or Subsidiary) exceeds $100,000, such excess options shall not be
treated as incentive stock options.
	 
	(c)	 	For purposes of Section 5(b), incentive stock options shall be taken into account in
the order in which they were granted, and the fair market value of the stock shall be
determined as of the time the option with respect to such stock is granted.
	 
	(d)	 	The Plan shall not confer upon any Optionee any right with respect to continuation of
employment, consulting or other service relationship with the Company, nor shall it interfere
in any way with his or her right or the Company’s right to terminate his or her employment,
consulting or other relationship at any time, with or without cause.

          6. Term of Plan. The Plan shall become effective upon its approval by the
shareholders of the Company as described in Section 20 of the Plan. It shall continue in effect
for a term of ten (10) years following March 5, 2004 (the date of
the Board’s adoption of the Plan) unless sooner terminated under Section 16 of the Plan.

          7. Term of Option. The term of each Option shall be the term stated in the
Option Agreement; provided, however, that in the case of an Incentive Stock Option, the term shall
be no more than ten (10) years from the date of grant thereof or such shorter term as may be
provided in the Option Agreement. However, in the case of an Option granted to an Optionee who, at
the time the Option is granted, owns stock representing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term
of the Option shall be five (5) years from the date of grant thereof or such shorter term as may be
provided in the Option Agreement.

 

 

          8. Limitation on Grants to Employees. Subject to adjustment pursuant to
Section 14 of the Plan, the maximum number of Shares which may be granted under options to any
Employee under this Plan for any fiscal year of the Company shall be 325,000.

          9. Option Exercise Price and Consideration.

	(a)	 	The per Share exercise price for the Shares to be issued pursuant to exercise of an
Option shall be such price as is determined by the Administrator, but shall be subject to the
following:
	 
	(i)	 	In the case of an Incentive Stock Option
	 
	(A)	 	granted to an Employee who, at the time of the grant of such Incentive Stock Option,
owns stock representing more than ten percent (10%) of the total combined 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, the per Share exercise price shall be no less than 100% of
the Fair Market Value per Share on the date of grant.
	 
	(ii)	 	In the case of a Nonstatutory Stock Option intended to qualify as performance-based
compensation under Section 162(m) of the Code, the per Share Exercise Price shall be no less
than 100% of the Fair Market Value on the date of grant.
	 
	(b)	 	The consideration to be paid for the Shares to be issued upon exercise of an Option,
including the method of payment, shall be determined by the Administrator and may consist
entirely of (1) cash, (2) check, (3) promissory note (subject to the loan prohibition
provisions of the Sarbanes-Oxley Act of 2002), (4) other Shares that (x) in the case of Shares
acquired upon exercise of an Option either have been owned by the Optionee for more than six
months on the date of surrender or were not acquired, directly or indirectly, from the
Company, 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, (5) a broker-assisted
cashless exercise arrangement (subject to the loan prohibition provisions of the
Sarbanes-Oxley Act of 2002), (6) any combination of the foregoing methods of payment, or (7)
such other consideration and method of payment for the issuance of Shares to the extent
permitted under applicable law. In making its determination as to the type of consideration
to accept, the Administrator shall consider if acceptance of such consideration may be
reasonably expected to benefit the Company. In the case of an Incentive Stock Option, the
method of payment shall be limited to the method(s) expressly permitted by the applicable
stock option agreement, however, such agreement may provide that the methods set forth in
Sections 9(b)(3) and 9(b)(4) are only available at the discretion of the Administrator.

          10. Exercise of Option.

	(a)	 	Procedure for Exercise; Rights as a Shareholder. Any Option granted
hereunder shall be exercisable at such times and under such conditions as determined by the
Administrator, including, without limitation, performance criteria with respect to the Company
and/or the Optionee, and as shall be permissible under the terms of the Plan.

     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, as authorized by the Administrator, consist of any
consideration and method of payment allowable under Section 9(b) 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 shareholder 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 as soon as reasonably practicable after exercise of the
Option. 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 14 of the Plan.

     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)	 	Termination of Status as an Employee, Director or Consultant. In the event
of termination of an Optionee’s Continuous Status as an Employee, Director or Consultant, such
Optionee may, but only within ninety (90) days (or such other period of time as is determined
by the Administrator, with such determination in the case of an Incentive Stock Option being
made at the time of grant of the Option) after the date of such termination (but in no event
later than the date of expiration of the term of such Option as set forth in the Option
Agreement), exercise his or her Option to the extent that he or she was entitled to exercise
it at the date of such termination. To the extent that the Optionee was not entitled to
exercise the Option at the date of such termination, or if the Optionee does not exercise such
Option (which he or she was entitled to exercise) within the time specified herein, the Option
shall terminate.
	 
	(c)	 	Disability of Optionee. Notwithstanding the provisions of Section 10(b)
above, in the event of termination of an Optionee’s Continuous Status as an Employee, Director
or Consultant as a result of his or her total and permanent disability (as defined in Section
22(e)(3) of the Code), he or she may, but only within six (6) months (or such other period of
time as is determined by the Administrator, with such determination in the case of an
Incentive Stock Option being made at the time of grant of the Option) from the date of such
termination (but in no event later than the date of expiration of the term of such Option as
set forth in the Option Agreement), exercise his or her Option to the extent he or she was
entitled to exercise it at the date of such termination. To the extent that he or she was not
entitled to exercise the Option at the date of termination, or if he does not exercise such
Option (which he was entitled to exercise) within the time specified herein, the Option shall
terminate.
	 
	(d)	 	Death of Optionee. In the event of the death of an Optionee:
	 
	(i)	 	during the term of the Option who is at the time of his death an Employee, Director
or Consultant and who shall have been in Continuous Status as an Employee, Director or
Consultant since the date of grant of the Option, the Option may be exercised, at any time
within six (6) months (or such other period of time as is determined by the Administrator,
with such determination in the case of an Incentive Stock Option being made at the time of
grant of the Option) following the date of death (but in no event later than the date of
expiration of the term of such Option as set forth in the Option Agreement), 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 of the right to exercise that would have accrued had the Optionee
continued living and remained in Continuous Status as an Employee, Director or Consultant six
(6) months (or such other period of time as is determined by the Administrator as provided
above in this subparagraph (i)) after the date of death, subject to the limitation set forth
in Section 5(b); or
	 
	(ii)	 	within ninety (90) days (or such other period of time as is determined by the
Administrator, with such determination in the case of an Incentive Stock Option being made at
the time of grant of the Option) after the termination of Continuous Status as an Employee,
Director or Consultant, the Option may be exercised, at any time within six (6) months
following the date of death (but in no event later than the date of expiration of the term of
such Option as set forth in the Option Agreement), 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 of
the right to exercise that had accrued at the date of termination.

 

 

          11. Withholding Taxes. As a condition to the exercise of Options granted
hereunder, the Optionee shall make such arrangements as the Administrator may require for the
timely satisfaction of any federal, state, local or foreign withholding tax obligations that may
arise in connection with the exercise, receipt or vesting of such Option (the “Withholding
Obligations”). The Company shall not be required to issue any Shares under the Plan until such
withholding obligations are fully satisfied.

          12. Stock Withholding to Satisfy Withholding Obligations. Optionees shall
timely satisfy the Withholding Obligations in such manner permitted by the Administrator, which may
include, at the discretion of the Administrator, one or some combination of the following methods:
(a) cash payment by the Optionee, (b) deduction from the Optionee’s current compensation, (c)
surrender by the Optionee to the Company of Shares that, in the case of Shares previously acquired
from the Company, have been owned by the Optionee for more than six months on the date of surrender
or (d) the Optionee’s election to have the Company withhold Shares from the Shares to be issued
upon exercise of the Option. For this purpose, the fair market value of the Shares to be withheld
shall be determined on the date the Option is exercised.

     All elections by an Optionee to have Shares withheld to satisfy tax withholding obligations
shall be made in writing in a form acceptable to the Administrator and shall be subject to the
following restrictions:

	(a)	 	the election must be made on or prior to the applicable Option exercise date;
	 
	(b)	 	all elections shall be subject to the consent or disapproval of the Administrator.

          13. Non-Transferability of Options. Except as otherwise provided in the
applicable stock option agreement (in the case of a Nonstatutory Stock Option), the Option 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. Except as otherwise provided in the applicable
stock option agreement (in the case of a Nonstatutory Stock Option), an Option may be exercised,
during the lifetime of the Optionee, only by the Optionee or by the guardian or legal
representative of the Optionee. An Option granted under the Plan shall not be anticipated,
assigned, attached, garnished, optioned, transferred or made subject to any creditor’s process,
whether voluntarily, involuntarily or by operation of law. Any act in violation of this Section 13
shall be void.

          14. Adjustments Upon Changes in Capitalization or Merger. Subject to any
required action by the shareholders of the Company (a) the number and class of shares of Common
Stock or other stock or securities covered by each outstanding Option, (b) the number and class of
shares of Common Stock or other stock or securities that have been authorized for issuance under
Section 3 of the Plan but as to which no Options have yet been granted or which have been returned
to the Plan upon cancellation or expiration of an Option, (c) the maximum number of Shares for
which Options may be granted to any employee under Section 8 of the Plan, and (d) the per Share
exercise price of each outstanding Option, may be appropriately adjusted (if at all) in the event
of a subdivision of the outstanding Shares, stock split, reverse stock split, stock dividend,
dividend payable in a form other than Shares in an amount that has a material effect on the price
of the Shares, consolidation, combination or reclassification of the Shares, recapitalization,
merger, liquidation, spin-off, split-up, distribution, exchange of Shares, repurchase of Shares,
change in corporate structure or other similar occurrence. Such adjustment shall be made by the
Administrator, whose determination in that respect shall be final, binding and conclusive, and the
Administrator may determine that no adjustment is appropriate and that none shall be made.

               If by reason of an adjustment pursuant to this Section 14, an Optionee’s Option shall cover
additional or different shares of stock or securities, then such additional or different shares and
the Option in respect thereof shall be subject to the terms, conditions and restrictions which were
applicable to the Option prior to such adjustment.

 

 

     In the event of the proposed dissolution or liquidation of the Company, the Option will
terminate immediately prior to the consummation of such proposed action, unless otherwise provided
by the Administrator. The Administrator may, in the exercise of its sole discretion in such
instances, declare that any Option shall terminate as of a date fixed by the Administrator and give
the Optionee the right to exercise his or her Option as to all or any part of the Optioned Stock,
including Shares as to which the Option would not otherwise be exercisable.

     In the event of a proposed sale of all or substantially all of the assets of the Company, or
the merger of the Company with or into another corporation, the Option shall be assumed, or a
substantially equivalent option shall be substituted, by the successor corporation or a parent or
subsidiary of such successor corporation, unless (a) the Administrator determines, in the exercise
of its sole discretion and in lieu of such assumption or substitution, that the Optionee shall have
the right to exercise the Option as to some or all of the Optioned Stock, including Shares as to
which the Option would not otherwise be exercisable or (b) if the Option is otherwise fully
exercisable, the Administrator determines in its sole discretion that the Option shall not be
assumed or substituted. If the Administrator makes an Option exercisable in lieu of assumption or
substitution in the event of a merger or sale of assets (or if the Option is otherwise fully
exercisable and the Administrator determines in its sole discretion that the Option shall not be
assumed or substituted), the Administrator shall notify the Optionee that the Option shall be
exercisable for a period of thirty (30) days from the date of such notice, and the Option will
terminate upon the expiration of such period.

          15. Time of Granting Options. The date of grant of an Option shall, for all
purposes, be the date on which the Administrator makes the determination to grant such Option or
such other date as is determined by the Administrator. Notice of the determination shall be given
to each Optionee to whom an Option is so granted within a reasonable time after the date of such
grant, except that persons subject to Section 16 of the Exchange Act shall be notified of their
Option grant in a manner to facilitate timely reporting under Section 16 of the Exchange Act.

          16. Amendment and Termination of the Plan.

	(a)	 	Amendment and Termination. The Board may amend or terminate the Plan from
time to time in such respects as the Board may deem advisable, subject to any shareholder
approval required by applicable law or deemed advisable by the Board for purposes of
qualifying Options granted hereunder as performance-based compensation under Section 162(m) of
the Code or for any other purpose deemed advisable by the Board.
	 
	(b)	 	Effect of Amendment or Termination. Any such amendment or termination of the
Plan shall not affect Options already granted and such Options shall remain in full force and
effect as if this Plan had not been amended or terminated, unless mutually agreed otherwise
between the Optionee and the Administrator, which agreement must be in writing and signed by
the Optionee and the Company.

          17. 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, 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 relevant provisions of law.

          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.

 

 

     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.

          19. Option Agreement. Options shall be evidenced by written option
agreements in such form as the Administrator shall approve. Such Option shall be subject to all
applicable terms and conditions of the Plan and may be subject to any other terms and conditions
which are not inconsistent with the Plan and which the Administrators deems appropriate for
inclusion in an option agreement. The option agreement shall specify whether the Option is
intended to be an Incentive Stock Option or a Nonstatutory Stock Option. The provisions of the
various option agreements entered into under the Plan need not be identical. Options may be granted
in consideration of a reduction in the Optionee’s other compensation.

          20. Shareholder Approval.

	(a)	 	Effectiveness of this Plan shall be subject to approval by the shareholders of the
Company within twelve (12) months before or after March 5,
2004 (the date of the Board’s adoption of the Plan). Such shareholder approval shall be
obtained in the manner and to the degree required under applicable federal and state law.

          21. Execution

     To record the adoption of the Plan by the Board on March 5, 2004, the Company has caused its
duly authorized officer to execute the same.

	 	 	 	 	 
	 	LASERSCOPE

	 
	 	By:  	/s/ Eric M. Reuter

	 
	 	Title: President and Chief Executive Officer

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