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                                 EXHIBIT 10.11J
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                           LOAN MODIFICATION AGREEMENT

         This Loan Modification Agreement is entered into as of October 1, 1995,
by and between Laserscope (the "Borrower") whose address is 3052 Orchard Drive,
San Jose, CA 95134, and Silicon Valley Bank (the "Lender") whose address is 3003
Tasman Drive, Santa Clara, CA 95054.

1.       DESCRIPTION OF EXISTING INDEBTEDNESS. Among other indebtedness which 
may be owing by Borrower to Lender, Borrower is indebted to Lender pursuant to,
among other documents, a Promissory Note, dated June 7, 1991, in the original
principal amount of Three Million and 00/100 Dollars ($3,000,000.00) (the
"Note"). The Note has been modified pursuant to Change in Terms Agreements dated
April 10, 1992, pursuant to which, among other things, the principal amount of
the Note was increased to Five Million and 00/100 Dollars ($5,000,000.00), and
April 15, 1993, and certain Loan Modification Agreements dated April 15, 1994,
July 15, 1994, and August 1, 1995. The Note, together with other promissory
notes from Borrower to Lender, is governed by the terms of a Business Loan
Agreement, dated June 7, 1991, between Borrower and Lender, as such agreement
may be amended from time to time (the "Loan Agreement").

Hereinafter, all indebtedness owing by Borrower to Lender shall be referred to
as the "Indebtedness."

Hereinafter, the above-described security documents and guaranties, together
with all other documents securing repayment of the Indebtedness shall be
referred to as the "Security Documents". Hereinafter, the Security Documents,
together with all other documents evidencing or securing the Indebtedness shall
be referred to as the "Existing Loan Documents."

2.       DESCRIPTION OF CHANGE IN TERMS.

         A. Modification(s) to the Loan Agreement.

      1. Lender hereby waives Borrower's existing default under the Loan
         Agreement by virtue of Borrower's failure to comply with the Tangible
         Net Worth, Quick Ratio and Profitability Covenants as of quarter ending
         September 30, 1995. Lender's waiver of Borrower's compliance of these
         covenants shall apply only to the foregoing period

         Lender's agreement to waive the above-described default (1) in no way
         shall be deemed an agreement by the Lender to waive Borrower's
         compliance with the above-described covenants as of all other dates and
         (2) shall not limit or impair the Lender's right to demand strict
         performance of these covenants as of all other dates and (3) shall not
         limit or impair the Lender's right to demand strict performance of all
         other covenants as of any date.

3.       CONSISTENT CHANGES. The Existing Loan Documents are hereby amended
wherever necessary to reflect the changes described above.

4.       NO DEFENSES OF BORROWER. Borrower (and each guarantor and pledgor
signing below) agrees that, as of this date, it has no defenses against the
obligations to pay any amounts under the Indebtedness.
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5.       CONTINUING VALIDITY. Borrower (and each guarantor and pledgor signing 
below) understands and agrees that in modifying the existing Indebtedness,
Lender is relying upon Borrower's representations, warranties, and agreements,
as set forth in the Existing Loan Documents. Except as expressly modified
pursuant to this Loan Modification Agreement, the terms of the Existing Loan
Documents remain unchanged and in full force and effect. Lender's agreement to
modifications to the existing Indebtedness pursuant to this Loan Modification
Agreement in no way shall obligate Lender to make any future modifications to
the Indebtedness. Nothing in this Loan Modification Agreement shall constitute a
satisfaction of the Indebtedness. It is the intention of Lender and Borrower to
retain as liable parties all makers and endorsers of Existing Loan Documents,
unless the party is expressly released by Lender in writing. No maker, endorser,
or guarantor will be released by virtue of this Loan Modification Agreement. The
terms of this Paragraph apply not only to this Loan Modification Agreement, but
also to all subsequent loan modification agreements.

         This Loan Modification Agreement is executed as of the date first
written above.

BORROWER:
     LENDER:

LASERSCOPE, INC.
     SILICON VALLEY BANK

By:      /s/ Thomas B. Boyd                            By:    /s/ Mary T. Toomey
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Name:    Thomas B. Boyd                                Name:  Mary  T. Toomey
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Title:   Sr. VP Operations & Finance                   Title: Vice President
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