Stock Option Exchange

Program

July 31, 2009

Exhibit (a)(1)(G)

What is it?

•

One time stock option exchange

•

Allows employees to exchange certain

existing options for new options

•

You will receive fewer new options but at an

exercise price equal to our closing price

(IRIX) on the new option grant date

(expected to be August 27, 2009)

Is it for me?

•

Participation is voluntary

•

Your option is eligible for exchange if:

#1

–

Option granted on or after Jan 1, 2002 but before Jan 1,

2009

–

Exercise price of options granted is equal to or greater

than $3.00 per share

–

Granted under either the 2008 or 1998 option plans

AND

–

Is outstanding and does not expire before the end of the

exchange program

Is it for me?

#2

–

Option granted Feb 28, 2007 in connection with the

Laserscope

acquisition

–

Exercise price of options granted is equal to $10.06 per

share

AND

–

Is outstanding and does not expire before the end of the

exchange program

•

If you have more than one eligible option grant,

you can choose to exchange one or more grants

–

You can’t choose to exchange part of a grant

Is it for me?

•

In your paperwork is a schedule that shows

your option grants that are eligible for

exchange

How many shares do I get in exchange

and what is the exercise price?

•

Exchange ratio depends on the exercise price

of your original option

•

The exercise price of your new option is the

CLOSING PRICE of IRIX on the new option

grant date (expected to be August 27, 2009)

4 to 1

$9.00 to $11.00

2 to 1

$6.00 to $8.99

1.5 to 1

$3.00 to $5.99

The exchange ratio is

If Exercise Price of Eligible Option is

What happens to my vesting?

•

All new option grants will require a minimum

of six months before any shares vest

•

After that it depends upon the year the

original option was granted –

see paperwork

th

How do I exchange and when?

•

If you wish to exchange one or more of your

eligible options grants

–

You must

complete the election form included in your

paperwork:

SEE EXHIBIT (a)(1)(C)

–

You must

e-mail or fax to Susan Bruce at

sbruce@iridex.com

or 650 940 4710

–

OR

hand deliver to Susan BUT YOU MUST GET A

SIGNED RECEIPT FROM SUSAN!!!!

•

You have until Aug 27   at 5.00pm PDT to

turn in your election form (the currently

expected closing date)