Exhibit 10.14
American Medical Systems Holdings, Inc.
Non-employee Director Compensation Summary
Annual Retainer
We pay our independent directors an annual retainer for serving on the Board and Committees as follows:
Stock Options
Our current compensation program also provides for the grant of stock options to our non-employee directors
effective as of the date of the director’s first appointment or election to the board and on an annual basis
thereafter. On May 4, 2006 (the date of our 2006 annual meeting of stockholders), we granted Mr. Emmitt,
Mr. Graf, Mr. Porter, Mr. Timbie and Ms. Weatherman each an option to purchase 10,000 shares of our
common stock. In July 2006 in connection with a recommendation by our Compensation Committee regarding
non-employee director compensation, we granted Mr. Emmitt, Mr. Graf, Mr. Porter, Mr. Timbie and
Ms. Weatherman each an additional option to purchase 10,000 shares of our common stock. Upon their initial
election to the Board in 2006, we granted Dr. McLellan, Mr. Sharma Ms. Kiernan’s each an option to purchase
40,000 shares of our common stock. All options were granted under our 2005 Stock Incentive Plan. These
options have an exercise price equal to the fair market value of one share of common stock on the date of grant,
and vest over a three-year period from the date of grant, as long as the non-employee director continues to serve
on the board. Upon a change in control, all outstanding options would become immediately exercisable in full and
remain exercisable for a period of up to five years. The options granted in 2006 expire seven years from the date
of grant. Each non-employee director who is reelected as a director at the annual meeting of stockholders or
continues to serve as a director after such meeting will be granted an option to purchase a number of shares of
our common stock, as determined by the board each year prior to the annual meeting for such year. The board
anticipates that value (based on customary valuation methods) o