AMERICAN MEDICAL SYSTEMS, INC.
MANAGEMENT INCENTIVE COMPENSATION PLAN
American Medical Systems, Inc. (AMS) is dedicated to excellence in performance and in creating a strong link
between performance and compensation. This plan is designed to reward designated management team members
of AMS with performance-based compensation for achieving and surpassing specified company goals. These
goals will reinforce contributing elements to the growth and financial viability of AMS. The plan is designed to
reward overall results, requiring a high level of individual contribution and cross-functional effectiveness across the
senior levels of company management.
II. BONUS POTENTIAL
The participant is eligible to receive a percent of his/her base salary based on the schedules set forth in
Attachments I and II. New entrants to the Plan may have their total compensation base/bonus mix reconfigured
to position them for their bonus schedule.
III. PERFORMANCE MEASURES - COMPANY RESULTS
Performance measures may vary somewhat from year to year; however, they will typically be established to
achieve the end goal of increased global sales and profitability. Company results will receive the highest weight
versus individual performance.
Performance measures will be as objective as possible and include specific time frames and numerical measures.
Company results measures will generally be consistent for plan participants in any given year to ensure common
goals, alignment and interdependence among senior-level managers and the organization.
Sales results will be based on global shipped sales for the year per the forecast unless otherwise noted for the
individual. Company profitability will be based on Operating Income.
Attachment I indicates the current weighting by position.
Individual objectives will be customized by individual to evaluate strategic and managerial initiatives. Generally
they are department-specific or are dedicated to a cross-function initiative fo