Common use of Product Options Clause in Contracts

Product Options. For each Product sold by Diomed beginning on the Effective Date and ending November 15, 2005, Diomed will grant to the LP under the Plan an option (a "Product Option") to purchase five (5) shares of Common Stock of Diomed up to an aggregate maximum of 45,000 shares (which number is inclusive of shares subject to options granted under Section 3.5). The Product Options shall be granted as of the end of each calendar quarter in which Product sales were sold (subject to adjustment for returns and uncollected accounts) and shall be fully vested on grant. The Product Options issued hereunder shall be subject to the same terms as the Initial Options issued under Section 3.5 except that the exercise price of each quarterly grant shall be based on fair market value of Diomed common stock at the time of grant as determined at the sole discretion of the Board of Director and consistent with other Employee options (if any) granted during the quarter.

Product Options. For each Product sold by Diomed beginning on the Effective Date and ending November 15, 2005, Diomed will grant to the LP LLC under the Plan an option (a "Product Option") to purchase twenty five (525) shares of Common Stock of Diomed up to an aggregate maximum of 45,000 180,000 shares (which number is inclusive of shares subject to options granted under Section 3.5). The Product Options shall be granted as of the end of each calendar quarter in which Product sales were sold (subject to adjustment for returns and uncollected accounts) and shall be fully vested on grant. The Product Options issued hereunder shall be subject to the same terms as the Initial Options issued under Section 3.5 except that the exercise price of each quarterly grant shall be based on fair market value of Diomed common [LOGO] DIOMED stock at the time of grant as determined at the sole discretion of the Board of Director and consistent with other Employee options (if any) granted during the quarter.