Document:

exv10w12

 

Exhibit 10.12

American Medical Systems Holdings, Inc.

Non-employee Director Compensation Summary

In July 2004, the Board of Directors of American Medical Systems Holdings, Inc. approved the
following compensation schedule for independent directors:

Annual Retainer

We pay our independent directors an annual retainer for serving on the Board and Committees as
follows:

	 	 	 	 	 
	Board member
	 	$	25,000	 
	Audit Committee chair
	 	$	10,000	 
	Audit Committee member
	 	$	7,500	 
	Compensation Committee chair
	 	$	5,000	 
	Compensation Committee member
	 	$	2,500	 
	Nominating/Corporate Governance Committee member
	 	$	2,500	 

Stock Options

     Our current compensation program also provides for the grant of stock options to our
independent directors. In May 2005, we granted each of our independent directors an option to
purchase 20,000 shares of our common stock in order to account for the Company’s two-for-one stock
split that was effected on March 21, 2005. Each independent director who is reelected as a
director at our 2006 annual meeting of stockholders or continues to serve as a director after such
meeting will be granted an option to purchase 10,000 shares of our common stock. The options have
an exercise price equal to the fair market value of the shares on the date of grant. The options
vest over a three-year period from the date of grant, as long as the non-employee director
continues to serve on the board, and become immediately exercisable in full upon a change in
control. The options expire seven years from the date of grant.

     Expenses

     In addition, we reimburse our non-employee directors for reasonable out-of-pocket expenses
incurred in connection with attending regularly scheduled meetings.exv10w13

 

Exhibit 10.13

AMERICAN MEDICAL SYSTEMS HOLDINGS, INC.

2006 NAMED EXECUTIVE OFFICER COMPENSATION SUMMARY

2006 Base Salary and Option Grants. For fiscal 2006, each named executive officer will receive the
base salary set forth below (effective as of February 1, 2006), and has been granted an option to
purchase the number of shares of Company common stock set forth below. All options were granted
under the Company’s 2005 Stock Incentive Plan at an exercise price of $21.38 (equal to the “fair
market value” of a share of common stock on the grant date), vest over a period of 4 years and have
a term of 7 years.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	2006 Base	 	2006
	Name	 	Title	 	Salary	 	Options
	Martin J. Emerson

	 	President and Chief Executive Officer
	 	$	330,000	 	 	 	100,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	Carmen L. Diersen

	 	Executive Vice President, Chief Financial
Officer and Corporate Secretary
	 	$	263,000	 	 	 	50,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	Ross A. Longhini

	 	Executive Vice President and Chief
Technology Officer
	 	$	258,000	 	 	 	50,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	Lawrence W. Getlin

	 	Senior Vice President, Regulatory Medical
Affairs and Quality Systems, Corporate
Compliance Officer
	 	$	228,000	 	 	 	25,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	John F. Nealon

	 	Senior Vice President, Business Development
	 	$	220,000	 	 	 	25,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	Douglas W. Kohrs

	 	Chairman of the Board
	 	$	100,000	 	 	 	20,000	 

2006
Executive Variable Incentive Plan. Executive officers are also
eligible to receive incentive compensation under the 2006 Executive
Variable Incentive Plan. The Compensation Committee (and the Board of Directors with respect to
executive officers) established a target bonus for each participant in the plan. The 2006 quarterly
bonus payments will be calculated at the end of each fiscal quarter based upon each fiscal
quarter’s year-over-year sales growth rate, each quarter’s year-over-year increase in sales
dollars, a measure of operating income and a cost of capital on net assets. Each quarter, the
actual quarterly results for four quarters (the current plus three past quarters) will be weighted
and compared to the plan level to generate a percent of plan achievement. This percent is applied
against the participant’s target bonus for the quarter, resulting in a quarterly bonus payment per
individual. The target bonus for 2006 for each named executive officer is set forth in the table
below.

	 	 	 	 	 	 	 
	 	 	 	 	2006 Target
	Name	 	Title	 	Bonus
	Martin J. Emerson

	 	President and Chief Executive Officer
	 	$	198,000	 
	 
	 	 	 	 	 	 
	Carmen L. Diersen

	 	Executive Vice President, Chief Financial Officer
and Corporate Secretary
	 	$	118,350	 
	 
	 	 	 	 	 	 
	Ross A. Longhini

	 	Executive Vice President and Chief Technology Officer
	 	$	116,100	 
	 
	 	 	 	 	 	 
	Lawrence W. Getlin

	 	Senior Vice President, Regulatory Medical Affairs
and Quality Systems, Corporate Compliance Officer
	 	$	91,200	 
	 
	 	 	 	 	 	 
	John F. Nealon

	 	Senior Vice President, Business Development
	 	$	88,000	 
	 
	 	 	 	 	 	 
	Douglas W. Kohrs

	 	Chairman of the Board
	 	$	50,000exv10w20

 

Exhibit 10.20

[FORM FOR DIRECTORS]

STOCK OPTION CERTIFICATE

AMERICAN MEDICAL SYSTEMS HOLDINGS, INC.

	 	 	 	 	 	 	 	 	 
	Grant Date	 	Option Shares	 	Exercise Price	 	Expiration Date	 	Type of Option
	 
	 	 	 	 	 	 	 	 

     1. Option Grant.

THIS CERTIFIES THAT, on the Grant Date set forth above American Medical Systems Holdings, Inc., a
Delaware corporation (the “Company”) has granted to:

(the “Participant”)

the right and option (the right to purchase any one share of Stock hereunder being an “Option”) to
purchase from the Company the number of shares of the Company’s common stock, par value $.0l per
share (“Stock”), set forth above (the “Option Shares”) at any time during the period commencing on
the date of this Certificate and ending on the expiration date set forth above (the “Expiration
Date”).

     2. Subject to Plan. The Options have been granted under the American Medical Systems
Holdings, Inc. 2005 Stock Incentive Plan (the “Plan”) and the terms of the Plan are incorporated
herein by reference. In the event of any conflict or inconsistency between this Certificate and
the Plan, the provisions of the Plan shall control. All capitalized terms used but not otherwise
expressly defined in this Certificate shall have the meaning ascribed to them in the Plan.

     3. Option Exercise Price. Each of the Options shall have a per share exercise price
equal to the exercise price set forth above (the “Exercise Price”) and shall constitute a
“Non-Statutory Stock Option.

     4. Limitations on Exercise of Options.

          (a) Except as otherwise provided in this Certificate or in the Plan, and for so long as the
Participant serves on the Board of Directors of the Company, the Options shall vest and shall be
exercisable as to the Option Shares during the term of service on the Board of Directors in the
amount of shares and on the dates set forth on Exhibit A hereto.

          (b) The Committee shall have the authority to modify the vesting and exercisability of any or
all of the then-unvested Options as and in the manner set forth in the Plan.

     5. Termination of Service. Subject specifically to the authority of the Committee
under Section 12.4 of the Plan:

          (a) If, prior to the Expiration Date, the Participant’s service as a member of the Board of
Directors is terminated for any reason other than Cause, the Options shall remain exercisable until
the earlier of the Expiration Date or five (5) years after such date of termination (the “Date of
Termination”) to the extent the Options were vested and exercisable as of the Date of Termination.

          (b) If, prior to the Expiration Date, the Participant’s service as a member of the Board of
Directors is terminated for Cause, (i) unless otherwise provided by the Board, the Options, to the
extent not exercised as of the Date of Termination, shall lapse and be canceled, and (ii) all
shares of Stock received pursuant to
an exercise of the Options after such termination, in contravention of subsection (i) above,
may be purchased by the Company at its discretion for the exercise price of such shares paid by the
Participant.

 

 

          (c) After the expiration of any exercise period described in any of Sections 5(a) through (b)
above, the Options shall terminate together with all of the Participant’s rights hereunder, to the
extent not previously exercised.

     6. Change in Control. If a Change in Control occurs, then all Options shall vest and
be immediately exercisable in full immediately prior to the Change in Control and shall remain
exercisable for the periods set forth in Section 5.

     7. Effects of Actions Constituting Cause. Notwithstanding anything in this
Certificate or the Plan to the contrary, in the event that the Participant is determined by the
Committee, acting in its sole discretion, to have committed any action which would constitute
Cause, irrespective of whether such action or the Committee’s determination occurs before or after
termination of such Participant’s service as a member of the Board of Directors, this Certificate
and all rights of the Participant under this Certificate and the Plan shall terminate and be
forfeited without notice of any kind. The Committee may defer the exercise of the Options
hereunder for a period of up to forty-five (45) days in order for the Committee to make any
determination as to the existence of Cause.

     8. Breach of Confidentiality, Non-Compete or Non-Solicitation. Notwithstanding
anything in this Certificate or the Plan to the contrary, in the event that the Participant
materially breaches the terms of any confidentiality, non-compete or non-solicitation agreement
entered into with the Company or any Subsidiary, whether such breach occurs before or after
termination of the Participant’s service as a member of the Board of Directors, the Committee in
its sole discretion may require the Participant to surrender shares of Stock received, and to
disgorge any profits made or realized, in connection with the Options or issued upon the exercise
or vesting of the Options.

     9. Manner of Option Exercise

          (a) Notice. The Options shall be exercised by delivering written notice to the
Company (Attention: HR Stock Administration Staff) stating the number of shares of Stock to be
purchased, the person or persons in whose name the shares of Stock are to be registered and each
such person’s address and social security number. Such notice shall not be effective unless
accompanied by the full purchase price for all shares to be purchased, and any applicable amounts
withheld in accordance with Section 13 of the Plan.

          (b) Payment. At the time of exercise of the Option, the Participant must pay the
total purchase price of the Option Shares to be purchased entirely in cash (including a check, bank
draft or money order, payable to the order of the Company); provided, however, that the Committee,
in its sole discretion, may allow such payment to be made, in whole or in part, by tender of a
promissory note (on terms acceptable to the Committee in its sole discretion) or a Broker Exercise
Notice or Previously Acquired Shares, or by a combination of such methods. In the event the
Participant is permitted to pay the total purchase price of the Option in whole or in part with
Previously Acquired Shares, the value of such shares will be equal to their Fair Market Value on
the date of exercise of the Option.

     10. Rights as Stockholder. The Participant or a transferee of the Options shall have
no rights as a stockholder with respect to any shares covered by the Options until he shall have
become the holder of record of such shares (and the Company shall use its reasonable best efforts
to cause the Participant promptly to become the holder of record of such shares), and, except as
otherwise provided in the Plan, no adjustment shall be made for dividends or distributions or other
rights in respect of such shares for which the record date is prior to the date upon which he shall
become the holder or record thereof.

     11. Participant. Whenever the word “Participant” is used in any provision of this
Certificate under circumstances where the provision should logically be construed to apply to the
executors, the administrators, legal representatives or the person or persons to whom the Options
may be transferred by will or by the laws of descent and distribution, the word “Participant” shall
be deemed to include such person or persons.

     12. Binding Effect. This Certificate shall be binding upon the heirs, executors,
administrators, successors and permitted assigns of the parties hereto.

	 	 	 	 	 
	Dated:	 	AMERICAN MEDICAL SYSTEMS
HOLDINGS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	 	 	Martin J. Emerson
	 

	 	 	 	President and Chief Executive Officer

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