Company: STAA
Filing Date: 2025-09-16
Form Type: DEFM14A
Source: 0001193125-25-204396
Chunk: 107

Company: STAAR SURGICAL CO
Filing Date: 2025-09-16
Form: DEFM14A
Chunk 107
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 executive officers (other than Mr. Farrell). Under each change in control
agreement, in the event of a termination without cause within 12 months following a change in control or for good reason within 15 months following a change in control, the executive generally would be entitled to the following severance payments
and benefits: (a) 12 months of base salary; (b) target bonus; (c) continued group health coverage for 12 months at the same expense to the executive as before termination; and (d) the greater of (x) the annual bonus earned
in the preceding year prorated based on the number of days employed during the year of termination and (y) the bonus accrued for the year of termination. The foregoing severance payments and benefits are generally subject to the
executive’s execution and nonrevocation of a release of claims.

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Pursuant to the terms of the employment agreement with Mr. Farrell and the change in
control agreements with each of our other executive officers, if payments to an executive under the applicable agreement would be subject to Sections 280G and 4999 of the Code, such payments would be reduced to avoid imposition of the excise tax to
the extent the executive would be better off after taxes. Pursuant to the Merger Agreement, STAAR and Alcon have agreed that STAAR may implement strategies to mitigate the effects, if any, of Section 280G and 4999 of the Code, including
accelerating income into 2025 (if STAAR determines that it is likely that the closing will occur in 2026) and entering into gross-up agreements with individuals reasonably expected to be adversely affected by
the excise tax (subject to an aggregate cap of $15 million). STAAR anticipates entering into a gross-up agreement with each named executive officer who is expected to be subject to the excise tax, with the
amount of potential gross-ups under all such agreements subject to an aggregate cap of $15 million.

For an estimate of the value of the severance payments and benefits described above that would be payable to STAAR’s executive officers
assuming that the Effective Time occurs on August 27, 2025 and that the executive experiences a termination without cause on that date, see “—Quantification of Payments and Benefits to STAAR’s Named Executive Officers”
below.

2026 Annual Bonus

Under the Merger Agreement, STAAR will make payments under fiscal year 2026 bonus or other incentive plans immediately prior