AMERICAN MEDICAL SYSTEMS HOLDINGS INC
SUMMARY OF DIRECTOR COMPENSATION
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<TYPE>EX-10.12
<SEQUENCE>3
<FILENAME>c03008exv10w12.htm
<DESCRIPTION>SUMMARY OF DIRECTOR COMPENSATION
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U><B>Exhibit&nbsp;10.12</B></U>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>American Medical Systems Holdings, Inc.<BR>
Non-employee Director Compensation Summary</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In July&nbsp;2004, the Board of Directors of American Medical Systems Holdings, Inc. approved the
following compensation schedule for independent directors:
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Annual Retainer</U>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We pay our independent directors an annual retainer for serving on the Board and Committees as
follows:
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<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">Board member</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit Committee chair</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit Committee member</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Compensation Committee chair</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Compensation Committee member</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nominating/Corporate Governance Committee member</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
</TR>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Stock Options</U>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our current compensation program also provides for the grant of stock options to our
independent directors. In May&nbsp;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&#146;s two-for-one stock
split that was effected on March&nbsp;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.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Expenses</U>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we reimburse our non-employee directors for reasonable out-of-pocket expenses
incurred in connection with attending regularly scheduled meetings.
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<P align="center" style="font-size: 10pt">&nbsp;
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