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SETTLEMENT AGREEMENT AND MUTUAL RELEASE

    This Settlement Agreement and Mutual Release ("Agreement") is entered into
effective December 4, 2000 (the "Effective Date") by and between STAAR Surgical
Company, a Delaware corporation (the "Company") and William C. Huddleston, an
individual ("Huddleston"), all of whom are sometimes hereinafter referred to
collectively as the "Parties" or individually as a "Party", with reference to
the following facts.

RECITALS

    WHEREAS, the Company and Huddleston wish to memorialize their agreement
regarding (i) (A) the termination of Huddleston's employment with the Company
and (B) the termination of any consulting arrangement Huddleston has or may have
with the Company, and (ii) the severance benefits that are to be transferred or
paid to Huddleston as a result of the termination of his employment and any
consulting arrangement with the Company; and

    WHEREAS, the Company and Huddleston wish to memorialize their agreement
regarding Huddleston's waiver of all rights and claims which he may have against
the Company, if any.

    NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein and for other valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company and Huddleston agree as
follows:

AGREEMENT

    1.  Incorporation of Recitals.  The recitals to this Agreement are an
integral part of this Agreement and are hereby incorporated as a part of this
Agreement as if set forth in it.

    2.  Termination of Employment Agreement and Consulting Arrangements.  Upon
execution of this Agreement, the Employment Agreement entered into by and
between the Company and Huddleston on October 1, 1999, including any and all
amendments to it, and any and all consulting arrangements between the Company
and Huddleston, shall be deemed to have been terminated and to be of no further
force and effect as of the Effective Date.

    3.  Obligations of the Company.  In exchange for Huddleston's release of the
Company from any past, present, and future obligations (including obligations
for the performance of consulting services by Huddleston), whether monetary or
otherwise, owed by the Company to Huddleston, the Company shall pay to
Huddleston or provide for Huddleston the following:

    (a)  Cash Payment.  The Company shall pay to Huddleston, or to Huddleston's
wholly-owned personal service corporation, the sum of five hundred forty
thousand dollars ($540,000), which shall be transferred electronically to
Huddleston, pursuant to his written instructions, on the following dates: on
January 2, 2001, the sum of four hundred forty thousand dollars ($440,000), and
on April 2, 2001, the sum of one hundred thousand dollars ($100,000).

    (b)  Forgiveness of Loans.  The Company shall forgive the payment of any and
all loans made to Huddleston by the Company if there is a Change in Control that
occurs prior to December 31, 2002. For purposes of this Agreement, a "Change in
Control" shall be defined as any of the following transactions: (i) the sale by
the Company of substantially all of its business or assets to a third party, or
(ii) the acquisition of the Company's capital stock by a third party in
connection with the transfer of a controlling interest of the Company's capital
stock to such party, or (iii) the merger or consolidation of the Company with
another corporation as part of a transfer of a controlling interest of the
Company's capital stock to a third party. A "controlling interest of the
Company's capital stock" shall be defined as a transfer or acquisition by a
third party of at least thirty percent (30%) of the Company's capital stock in
one or a series of transactions. A

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"third party" shall not include any employee benefit plan maintained by the
Company or any corporation or entity in which the Company holds fifty percent
(50%) of more of the voting securities.

    (c)  Acceleration and Vesting of Stock Options.  Subject to regulatory
considerations, and irrespective of the terms of any agreement memorializing
them, the vesting conditions imposed on any stock options subject to vesting
shall be accelerated and shall vest on the Effective Date. Unless a greater
period of time is permitted in any agreement memorializing a stock option (in
which case the stock option agreement will govern), Huddleston shall be entitled
to exercise said stock options until December 31, 2001, provided, however, that
the remaining terms and conditions of the agreements governing the stock options
shall remain in full force and effect and shall be binding upon Huddleston.

    (d)  Transfer of Painting and Equipment.  The Company will transfer to
Huddleston the painting of the Bern Bell Tower. The Company acknowledges that
Huddleston has possession of a lap top computer and a fax machine belonging to
the Company. By executing this Agreement, the Company transfers the lap top
computer and the fax machine to Huddleston.

    (e)  Indemnity.  So long as Huddleston's actions were taken in good faith
and in furtherance of the Company's business and within the scope of his duties
and authority, the Company shall defend (with counsel of the Company's choosing
at the Company's expense), indemnify and hold Huddleston harmless from any and
all claims, losses and expenses sustained by Huddleston in connection with any
and all claims by stockholders or other third parties which are based upon or
relate to any such actions. The Company shall permit Huddleston to participate
in the defense of any claim through counsel chosen by him, provided that the
fees and expenses of such counsel shall be borne by Huddleston.

    (f)  Delivery of this Agreement.  The Company shall deliver to Huddleston an
executed copy of this Agreement.

    (g)  Non-Disparagement.  The Company agrees not to criticize, denigrate, or
otherwise disparage Huddleston.

    4.  Waiver of All Other Claims.  Huddleston agrees that Huddleston is not
entitled to receive, will not claim and expressly waives any entitlement to
rights, benefits, reimbursement, indemnification, or compensation from the
Company, whether or not such entitlements are claimed through the Employment
Agreement, the consulting arrangement, or otherwise, other than as expressly set
forth in this Agreement.

    5.  Complete Release by Huddleston.  

    (a)  Release.  Huddleston irrevocably and unconditionally releases all of
the claims described in subparagraph 5(b) that Huddleston may now have, or has
ever had, against the following persons or entities (the "Releasees"): The
Company (including its subsidiaries and affiliates), all related companies and
all of the Company's (its subsidiaries' and affiliates') or such related
companies' predecessors and successors; and, with respect to each such entity,
all of its past and present employees, officers, directors, stockholders,
owners, representatives, assigns, attorneys, agents, insurers, employee benefit
programs (and the trustees, administrators, fiduciaries and insurers of such
programs) and any other persons acting by, through, under or in concert with any
of the persons or entities listed in this subparagraph.

    (b)  Claims Released.  The claims released include all claims, promises,
debts, causes of action or similar rights of any type or nature Huddleston has
or had which in any way relate to (1) Huddleston's employment with the Company
as an officer and/or director with the Company, or the termination of that
employment, such as claims for compensation, bonuses, commissions,

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lost wages or unused accrued vacation or sick pay; (2) any consulting
arrangement Huddleston has or had with the Company, and the termination of that
consulting arrangement; (3) the design or administration of any employee benefit
program or Huddleston's entitlement to benefits under any such program; (4) any
claims to attorneys' fees and/or other legal costs; and (5) any other claims or
demands Huddleston may have on any basis whatsoever. The claims released
include, but are not limited to, claims arising under any of the following
statutes or common law doctrines:

    (1) Anti-Discrimination Statutes, such as the Age Discrimination in
Employment Act (ADEA), which prohibits age discrimination in employment; the
Civil Rights Act of 1991, Title VII of the Civil Rights Act of 1964, and §1981
of the Civil Rights Act of 1866, which prohibit discrimination based on race,
color, national origin, religion or sex; the Equal Pay Act, which prohibits
paying men and women unequal pay for equal work; the Americans With Disabilities
Act, which prohibits discrimination against the disabled; the California Fair
Employment and Housing Act, which prohibits discrimination in employment based
upon race, color, national origin, ancestry, physical or mental disability,
medical condition, martial status, sex, or age; and any other federal, state or
local laws or regulations prohibiting employment discrimination.

    (2) Federal Employment Statutes, such as the Employee Retirement Income
Security Act of 1974, which, among other things, protects pension or health plan
benefits; and the Fair Labor Standards Act of 1938, which regulates wage and
hour matters.

    (3) Other Laws, such as any federal, state or local laws restricting an
employer's right to terminate employees or otherwise regulating employment; any
federal, state or local law enforcing express or implied employment contracts or
requiring an employer to deal with employees fairly or in good faith; and any
other federal, state or local laws providing recourse for alleged wrongful
discharge, physical or personal injury, emotional distress, fraud, negligent
misrepresentation, libel, slander, defamation and similar or related claims. The
laws referred to in this paragraph include statutes, regulations, other
administrative guidance and common law doctrines.

    (c)  Release Extends to Both Known and Unknown Claims.  This release covers
both claims that Huddleston knows about and those Huddleston does not know
about. Huddleston understands the significance of his release of unknown claims
and his waiver of any statutory protection against a release of unknown claims.
Huddleston expressly waives the protection of any such governmental statutes or
regulations.

    More particularly, and without limitation, Huddleston acknowledges that
Huddleston has read and is familiar with and understands the provisions of
Section 1542 of the California Civil Code, which provides: "A GENERAL RELEASE
DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST
IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN TO HIM MUST
HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR."

    HUDDLESTON EXPRESSLY WAIVES ANY RIGHT OR CLAIM OF RIGHT HUDDLESTON MAY HAVE
UNDER SECTION 1542 OF THE CALIFORNIA CIVIL CODE.

HUDDLESTON'S INITIALS: WCH 12/4/00

    (d)  Ownership of Claims.  Huddleston represents that Huddleston has not
assigned or transferred, or purported to assign or transfer, all or any part of
any claim released by this Agreement.

    6.  No Pursuit of Released Claims.  Huddleston promises never to file or
prosecute a lawsuit, administrative complaint or charge, or other complaint or
charge asserting any claims that are released

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by the Agreement. Huddleston represents that Huddleston has not filed or caused
to be filed any lawsuit, complaint or charge with respect to any claim this
Agreement releases. Huddleston further agrees to request any government agency
or other body assuming jurisdiction of any complaint or charge relating to a
released claim to withdraw from the matter or dismiss the matter with prejudice.

    7.  Obligations of Huddleston.  To induce the Company to enter into this
Agreement, Huddleston agrees to the following:

    (a)  Delivery of Agreement.  Huddleston shall deliver to the Company an
executed copy of this Agreement.

    (b)  Non-Disparagement.  Huddleston agrees not to criticize, denigrate, or
otherwise disparage the Company or any other Releasee. Nothing herein shall
prevent Huddleston from making statements or testimony under compulsion of legal
process, including, but not limited to, deposition proceedings.

    8.  Release by Company.  

    (a)  Release.  The Company (including its subsidiaries and affiliates)
irrevocably and unconditionally releases Huddleston from any and all
obligations, claims or demands that the Company may now have, or has ever had,
against Huddleston, with the exception of the following, which shall
collectively be referred to as the "Unreleased Matters": (i) Huddleston's
obligations under this Agreement, (ii) the loans described in paragraph 3(b) of
this Agreement, and (iii) acts of dishonesty, fraud, or gross negligence, which
acts were not taken in good faith and were not in furtherance of the Company's
business. With the exception of the Unreleased Matters, this release covers both
claims that the Company knows about and those that the Company does not know
about. The Company understands the significance of his release of unknown claims
and its waiver of any statutory protection against a release of unknown claims.
The Company expressly waives the protection of any such governmental statutes or
regulations.

    More particularly, and without limitation, the Company acknowledges that the
Company has read and is familiar with and understands the provisions of
Section 1542 of the California Civil Code, which provides: "A GENERAL RELEASE
DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST
IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN TO HIM MUST
HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR."

    THE COMPANY EXPRESSLY WAIVES ANY RIGHT OR CLAIM OF RIGHT THE COMPANY MAY
HAVE UNDER SECTION 1542 OF THE CALIFORNIA CIVIL CODE.

COMPANY'S INITIALS: AP

    9.  Consulting with Attorney.  Huddleston and the Company acknowledge that
each has discussed this Agreement with an attorney of his or its own choosing
before signing it.

    10.  Severability.  If any term or provision of this Agreement or the
application thereof to any person or circumstance shall, to any extent, be
determined to be invalid, illegal or unenforceable under present or future laws
effective during the term of this Agreement, then and, in that event: (A) the
performance of the offending term or provision (but only to the extent its
application is invalid, illegal or unenforceable) shall be excused as if it had
never been incorporated into this Agreement, and, in lieu of such excused
provision, there shall be added a provision as similar in terms and amount to
such excused provision as may be possible and be legal, valid and enforceable,
and (B) the remaining part of this Agreement (including the application of the
offending term or provision to persons or circumstances other than those as to
which it is held invalid, illegal or unenforceable) shall not be

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affected thereby and shall continue in full force and effect to the fullest
extent provided by law. The provisions of this Agreement are severable.

    11.  Choice of Laws/Waiver of Jury Trial.  This Agreement shall be governed
by the laws of the State of California, and the Courts of the County of Los
Angeles, California and the Parties specifically waive any right to a jury
trial.

    12.  Nature, Effect and Interpretation of this Agreement.  

    (a)  Entire Agreement.  This Agreement is the entire agreement between
Huddleston and the Company relating to the subject matter herein; it may not be
modified or cancelled in any manner except by a writing signed by both the
Company and Huddleston. The Company has made no promises or representations to
Huddleston other than those in this Agreement.

    (b)  Successors and Assigns.  This Agreement shall bind Huddleston's heirs,
administrators, representatives, executors, successors and assigns, and shall
inure to the benefit of all Releasees and their respective heirs,
administrators, representatives, executors, successors and assigns.

    (c)  Interpretation.  This Agreement shall be construed as a whole according
to its fair meaning, and not strictly for or against any of the parties. Unless
the context indicates otherwise, the term "or" shall be deemed to include the
term "and" and the singular or plural number shall be deemed to include the
other. Paragraph headings used in this Agreement are intended solely for
convenience of reference and shall not be used in the interpretation of any of
this Agreement. It is acknowledged that neither party shall be construed to be
solely responsible for the drafting hereof, and therefore any ambiguity shall
not be construed against either party as the alleged draftsman of this
Agreement.

    (d)  Counterparts and Facsimiles.  For the convenience of the parties to
this Agreement, this document may be executed by facsimile signatures and in
counterparts which shall together constitute the agreement of the parties as one
and the same instrument.

    (e)  No Waiver.  The failure to enforce any provision of this Agreement
shall not be construed as a waiver of any such provision, nor prevent a party
from enforcing the provision or any other provision of this Agreement. The
rights granted the parties are cumulative, and the election of one shall not
constitute a waiver of such party's right to assert all other legal and
equitable remedies available under the circumstances.

    (f)  Implementation.  The Company and Huddleston both agree that, without
the receipt of further consideration, they will sign and deliver any documents
and do anything else that is necessary in the future to make the provisions of
this Agreement effective.

    13.  Notices.  Unless otherwise specifically provided in this Agreement, all
notices, demands, requests, consents, approvals or other communications
(collectively and severally called "Notices") required or permitted to be given
hereunder, or which are given with respect to this Agreement, shall be in
writing, and shall be given by: (1) personal delivery (which form of Notice
shall be deemed to have been given upon delivery), (2) by telegraph or by
private airborne/overnight delivery service (which forms of Notice shall be
deemed to have been given upon confirmed delivery by the delivery agency),
(3) by electronic or facsimile or telephonic transmission, provided the
receiving party has a compatible device or confirms receipt thereof (which forms
of Notice shall be deemed delivered upon confirmed transmission or confirmation
of receipt), or (4) by mailing in the United States mail by registered or
certified mail, return receipt requested, postage prepaid (which forms of Notice
shall be

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deemed to have been given upon the fifth {5th} business day following the date
mailed). Notices shall be addressed to the parties as follows:

Huddleston:   William C. Huddleston
363 Timken Road
Anaheim, California 92808
With copy to:
 
Hugh Verano, Esq.
2301 Dupont Drive
Irvine, California 92612
Company:
 
STAAR Surgical Company
1911 Walker Avenue
Monrovia, California 91016
Attn: Mr. Andrew F. Pollet
With copy to:
 
Pollet & Richardson
10900 Wilshire Boulevard, Suite 500
Los Angeles, California 90024
Attention: Andrew F. Pollet, Esq.

    14.  Attorney's Fees.  In the event any legal or equitable action or
proceeding is initiated concerning the enforcement or interpretation of this
Agreement, the prevailing party in any such action or proceeding shall be
entitled to receive from the non-prevailing party all costs and expenses
including, without limitation, reasonable attorneys' and other fees incurred by
the prevailing party in connection with such action or proceeding.

    PLEASE READ THIS AGREEMENT CAREFULLY. IT CONTAINS A RELEASE OF ALL KNOWN AND
UNKNOWN CLAIMS.

    Executed at Orange County, California this    day of December, 2000.

    "HUDDLESTON"
 
 
/s/ WILLIAM C. HUDDLESTON   

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WILLIAM C. HUDDLESTON

    Executed at Los Angeles County, California, this 19th day of December, 2000.

    "COMPANY"
 
 
STAAR SURGICAL COMPANY
 
 
By:
 
/s/ ANDREW F. POLLET   

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ANDREW F. POLLET,
Chief Executive Officer

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October 25, 2000

ESCROW AGREEMENT

To: Joseph M. Galosic, Esq.

    Re: Escrow for $145,831.25, and 23,333 Shares of Staar Surgical Company
Stock

Dear Mr. Galosic:

    Reference is made to that certain Settlement Agreement and Mutual Release
(the "Agreement") between VLADIMIR FEINGOLD, et al. ("Feingold") and STAAR
SURGICAL COMPANY, a Delaware corporation, et al. ("Staar"). You have agreed to
act as an independent escrow agent ("Escrow Agent") pursuant to the following:

A.  Deposit of Funds and Delivery of Certificates.

    1.  On or before October 25, 2000, Feingold will deliver to Staar that
certain Check No. 5270 made payable to the order of "Staar Surgical Co." dated
September 24, 1999, in the amount of One Hundred Forty Five Thousand Eight
Hundred Thirty One Dollars and Twenty Five Cents ($145,831.25), as payment for
the Twenty Three Thousand Three Hundred Thirty Three (23,333) shares (the
"Check"). Staar will endorse the Check to the "Joseph M. Galosic Attorney Client
Trust Account," a non-interest bearing account, and deliver said Check to you on
or before 1:00 p.m. on October 26, 2000. You will deposit said Check into your
attorney-client trust account (the "Escrow Deposit"). You will hold the proceeds
from said Check in trust, until directed to release such funds as instructed
herein.

    2.  On or before October 26, 2000, Staar will deliver to you a Certificate
of Stock for Twenty Three Thousand Three Hundred Thirty Three (23,333) shares of
fully registered, non-restricted, free trading Staar common stock (the "Stock
Certificate").

    3.  You have agreed to hold the Escrow Deposit and the Stock Certificate, in
trust, on the following terms:

    (a) Upon receipt of confirmation that the Escrow Deposit is immediately
available in good funds, you shall transmit this information, via facsimile to
Staar, c/o Mary Ann Sapone, Esq., at (310) 208-1154 and to Feingold, c/o Mark S.
Adams, Esq.

    (b) If you receive written joint instructions signed by Feingold and Staar
regarding disposition of the Escrow Deposit and Stock Certificate in the form
attached hereto as Exhibit "1," then you shall immediately (which term, as used
herein shall mean within two business days) deliver the Stock Certificate to
Feingold, and deliver to Staar a cashier's check, drawn on your attorney-client
trust account, in the amount of One Hundred Forty Five Thousand Eight Hundred
Thirty One Dollars and Twenty Five Cents ($145,831.25) made payable to "Staar
Surgical Company."

    (c) If you do not receive the joint instruction in (a) above, but rather you
receive written joint instructions signed by Feingold and Staar in the form
attached hereto as Exhibit "2," or written individual instructions signed by
either of them in the form attached hereto as Exhibit "3" or Exhibit "4," to
cancel this Escrow, you shall deliver to Feingold a cashier's check, drawn on
your attorney-client trust account, in the amount of One Hundred Forty Five
Thousand Eight Hundred Thirty One Dollars and Twenty Five Cents ($145,831.25)
made payable to "Vladimir Feingold," and deliver the Stock Certificate to Staar.

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B.  General Provisions

    1.  You shall hold and dispose of the Escrow Deposit and Stock Certificate
in the manner set forth above and shall have no other duties as escrow agent;
your duties shall be determined only with reference to this Escrow Agreement and
applicable law. If there should be a conflict between the provisions of this
Escrow Agreement and applicable law, the terms of the Escrow Agreement shall
control to the extent permissible and this Escrow Agreement shall be reformed
only to the extent necessary to conform to applicable law. You are not charged
with knowledge of, or any duties or responsibilities under, any other document
or agreement. You may rely upon and shall be protected in acting or refraining
from acting upon any written notice, instruction or request furnished to you
under this Escrow Agreement and believed by you to be genuine and to have been
signed or presented by Feingold and Staar. You shall be under no duty to inquire
into or investigate the validity, accuracy or content of any such notice,
instruction or request. You shall not be liable to Feingold or Staar for any
actions taken or omitted by you in connection with the performance of your
duties under this Escrow Agreement, except for actions or omissions arising from
your own gross negligence or willful misconduct.

    2.  In the event you should at any time be confronted with inconsistent
claims or demands by Feingold and Staar, you shall have the right to seek
ex parte relief before Judge Paul Gutman at the Superior Court of California,
County of Los Angeles, in connection with that certain case entitled Vladimir
Feingold v. Staar Surgical Company, et al., and numbered BC216184 in the files
of that Court, interplead the parties, and request that the court determine the
respective rights of the parties with respect to this Escrow Agreement. You
shall be indemnified and held harmless by Feingold and Staar, jointly and
severally, as a consequence of your interpretation of the rights of the parties
hereunder and you shall automatically shall be released from any obligation or
liability as a consequence of any such claims or demands, except with respect to
your own gross negligence or willful misconduct. Feingold and Staar further
agree that you shall be under no duty whatsoever to institute or defend any
proceedings involving any conflict or claims of any nature whatsoever between
Feingold and Staar.

    3.  This Escrow Agreement cannot be changed or terminated orally and may be
changed only with your written consent and the written consent of Feingold and
Staar. This Escrow Agreement and your duties hereunder shall terminate when all
amounts of the Escrow Deposit and Stock Certificate have been delivered to
Feingold and Staar in accordance with this Escrow Agreement.

    4.  Any notice or other communication under this Escrow Agreement shall be
in writing and shall be considered given when delivered personally or four days
after being mailed by registered mail, return receipt requested, or on the date
of transmission if delivered by confirmed telecopy, to the parties at the
following addresses or facsimile numbers (or at such other address as a party
may specify by notice to the other):

    (a) If to the Escrow Agent, to him at:

Joseph M. Galosic, Esq.
8 Corporate Park, Suite 200
Irvine, California 92606
Telephone: (949) 476-0500
Fax: (949) 476-5059

    (b) If to Feingold, to him at:

Vladimir Feingold
31732 Isle Vista
Laguna Niguel, California 92677

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With copy to:
Mark S. Adams, Esq.
Green & Adams, LLP
8 Corporate Park, Suite 200
Irvine, California 92606
Telephone: (949) 862-1030
Fax: (949) 862-1031

    (c) If to Staar, to it at:

Andrew F. Pollet
President
Staar Surgical Company
1911 Walker Avenue, Suite 500
Monrovia, California 91016

With copy to:
Robert C. Woodbury, Esq.
Pollet & Woodbury
10900 Wilshire Blvd., Ste. 500
Los Angeles, California 90024
Telephone: (310) 208-1182
Fax: (310) 208-1154

    5.  This Escrow Agreement shall be governed by and construed in accordance
with the law of the State of California applicable to agreements made and to be
performed in California. All parties hereto agree that any controversy that may
arise between the parties shall be adjudicated before Judge Paul Gutman in the
Superior Court of California, County of Los Angeles. In the event of any dispute
that may arise between the parties as to their respective rights, duties and
obligations hereunder, the prevailing party in such dispute shall be entitled to
recover its costs and expenses (including reasonable attorney fees) incurred by
such party in connection with such dispute.

    6.  This Escrow Agreement shall be binding upon and shall inure to the
benefit of the heirs, executors, administrators, successors and assigns of the
parties hereto.

    7.  This Escrow Agreement and any instructions referenced herein may be
executed in one or more counterparts, but all such counterparts shall constitute
but one and the same instrument.

    * * * *

    IN WITNESS WHEREOF, the parties hereto agree that this Escrow Agreement
shall be effective on the date that the Escrow Agent executes this Escrow
Agreement.

    "FEINGOLD"
 
 
VLADIMIR FEINGOLD
 
 
By:
 
/s/ VLADIMIR FEINGOLD   

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    Name/Title: Vladimir Feingold     Date:   October 26, 2000

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"STAAR"
 
 
STAAR SURGICAL COMPANY
a Delaware corporation
 
 
By:
 
/s/ ANDREW F. POLLET   

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    Name/Title: Andrew Pollet, President     Date:   October 25, 2000

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    The undersigned agrees to act as escrow agent in accordance with the terms
set forth above.

    By:   /s/ JOSEPH M. GALOSIC   

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    Name/Title: Joseph M. Galosic, Esq.     Date:   October 26, 2000

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EXHIBIT "1"

October   , 2000

JOINT ESCROW INSTRUCTIONS
For Delivery of Check and Stock Certificate

To: Joseph M. Galosic, Esq.

    Re: Escrow for $145,831.25, and 23,333 Shares of Staar Surgical Company
Stock

Dear Mr. Galosic:

    You are hereby jointly instructed by Vladimir Feingold ("Feingold") and
Staar Surgical Company, a Delaware corporation ("Staar") to:

    1.  Immediately (the term "immediately" as used herein shall mean within two
business days) deliver the Stock Certificate (the term "Stock Certificate" shall
mean a Certificate of Stock for Twenty Three Thousand Three Hundred Thirty Three
(23,333) shares of fully registered, non-restricted, free trading Staar common
stock) to Feingold, c/o Mark S. Adams, Esq., Green & Adams, LLP, at 8 Corporate
Park, Suite 200, Irvine, California 92606; and

    2.  Immediately deliver to Staar, c/o Robert C. Woodbury, Esq., Pollet &
Woodbury, at 10900 Wilshire Blvd., Ste. 500, Los Angeles, California 90024, a
cashier's check drawn from your attorney-client trust account in the amount of
One Hundred Forty Five Thousand Eight Hundred Thirty One Dollars and Twenty Five
Cents ($145,831.25) made payable to "Staar Surgical Company."

    After completion of the items above, escrow shall be closed and you shall be
discharged of any and all duties under the Escrow Agreement and Instructions.

    VLADIMIR FEINGOLD
 
 
By:
 

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    Name/Title: Vladimir Feingold     Date:  

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STAAR SURGICAL COMPANY     a Delaware corporation
 
 
By:
 

--------------------------------------------------------------------------------

    Name/Title: Andrew Pollet, President     Date:  

--------------------------------------------------------------------------------

11

--------------------------------------------------------------------------------

EXHIBIT "2"

October   , 2000

JOINT ESCROW INSTRUCTIONS
For Cancellation of Escrow and Delivery of Check and Stock Certificate

To: Joseph M. Galosic, Esq.

    Re: Escrow for $145,831.25, and 23,333 Shares of Staar Surgical Company
Stock

Dear Mr. Galosic:

    You are hereby jointly instructed by Vladimir Feingold ("Feingold") and
Staar Surgical Company, a Delaware corporation ("Staar") to:

    1.  Immediately (the term "immediately" as used herein shall mean within two
business days) deliver the Stock Certificate (the term "Stock Certificate" shall
mean a Certificate of Stock for Twenty Three Thousand Three Hundred Thirty Three
(23,333) shares of fully registered, non-restricted, free trading Staar common
stock) to Staar, c/o Robert C. Woodbury, Esq., Pollet & Woodbury, at 10900
Wilshire Blvd., Ste. 500, Los Angeles, California 90024; and

    2.  Immediately deliver to Feingold, c/o Mark S. Adams, Esq., Green & Adams,
LLP, at 8 Corporate Park, Suite 200, Irvine, California 92606, a cashier's check
drawn from your attorney-client trust account in the amount of One Hundred Forty
Five Thousand Eight Hundred Thirty One Dollars and Twenty Five Cents
($145,831.25) made payable to "Vladimir Feingold."

    After completion of the items above, escrow shall be closed and you shall be
discharged of any and all duties under the Escrow Agreement and Instructions.

    VLADIMIR FEINGOLD
 
 
By:
 

--------------------------------------------------------------------------------

    Name/Title: Vladimir Feingold     Date:  

--------------------------------------------------------------------------------

 
 
STAAR SURGICAL COMPANY     a Delaware corporation
 
 
By:
 

--------------------------------------------------------------------------------

    Name/Title: Andrew Pollet, President     Date:  

--------------------------------------------------------------------------------

12

--------------------------------------------------------------------------------

EXHIBIT "3"

October   , 2000

ESCROW INSTRUCTION BY STAAR
For Cancellation of Escrow and Delivery of Stock Certificate

To: Joseph M. Galosic, Esq.

    Re: Escrow for $145,831.25, and 23,333 Shares of Staar Surgical Company
Stock

Dear Mr. Galosic:

    You are hereby instructed by Staar Surgical Company, a Delaware corporation
("Staar") to:

    Immediately (the term "immediately" as used herein shall mean within two
business days) deliver the Stock Certificate (the term "Stock Certificate" shall
mean a Certificate of Stock for Twenty Three Thousand Three Hundred Thirty Three
(23,333) shares of fully registered, non-restricted, free trading Staar common
stock) to Staar, c/o Robert C. Woodbury, Esq., Pollet & Woodbury, at 10900
Wilshire Blvd., Ste. 500, Los Angeles, California 90024.

    STAAR SURGICAL COMPANY     a Delaware corporation
 
 
By:
 

--------------------------------------------------------------------------------

    Name/Title: Andrew Pollet, President     Date:  

--------------------------------------------------------------------------------

13

--------------------------------------------------------------------------------

EXHIBIT "4"

October   , 2000

ESCROW INSTRUCTION BY FEINGOLD
Cancellation of Escrow and Delivery of Check

To: Joseph M. Galosic, Esq.

    Re: Escrow for $145,831.25, and 23,333 Shares of Staar Surgical Company
Stock

Dear Mr. Galosic:

    You are hereby instructed by Vladimir Feingold ("Feingold") to:

    Immediately deliver to Feingold, c/o Mark S. Adams, Esq., Green & Adams,
LLP, at 8 Corporate Park, Suite 200, Irvine, California 92606, a cashier's check
drawn from your attorney-client trust account in the amount of One Hundred Forty
Five Thousand Eight Hundred Thirty One Dollars and Twenty Five Cents
($145,831.25) made payable to "Vladimir Feingold."

    VLADIMIR FEINGOLD
 
 
By:
 

--------------------------------------------------------------------------------

    Name/Title: Vladimir Feingold     Date:  

--------------------------------------------------------------------------------

14

--------------------------------------------------------------------------------

EXHIBIT "1"

October   , 2000

JOINT ESCROW INSTRUCTIONS
For Delivery of Check and Stock Certificate

     To: Joseph M. Galosic, Esq.

    Re: Escrow for $145,831.25, and 23,333 Shares of Staar Surgical Company
Stock

Dear Mr. Galosic:

    You are hereby jointly instructed by Vladimir Feingold ("Feingold") and
Staar Surgical Company, a Delaware corporation ("Staar") to:

    1.  Immediately (the term "immediately" as used herein shall mean within two
business days) deliver the Stock Certificate (the term "Stock Certificate" shall
mean a Certificate of Stock for Twenty Three Thousand Three Hundred Thirty Three
(23,333) shares of fully registered, non-restricted, free trading Staar common
stock) to Feingold, c/o Mark S. Adams, Esq., Green & Adams, LLP, at 8 Corporate
Park, Suite 200, Irvine, California 92606; and

    2.  Immediately deliver to Staar, c/o Robert C. Woodbury, Esq., Pollet &
Woodbury, at 10900 Wilshire Blvd., Ste. 500, Los Angeles, California 90024, a
cashier's check drawn from your attorney-client trust account in the amount of
One Hundred Forty Five Thousand Eight Hundred Thirty One Dollars and Twenty Five
Cents ($145,831.25) made payable to "Staar Surgical Company."

    After completion of the items above, escrow shall be closed and you shall be
discharged of any and all duties under the Escrow Agreement and Instructions.

    VLADIMIR FEINGOLD
 
 
By:
 

--------------------------------------------------------------------------------

    Name/Title: Vladimir Feingold     Date:  

--------------------------------------------------------------------------------

 
 
STAAR SURGICAL COMPANY     a Delaware corporation
 
 
By:
 

--------------------------------------------------------------------------------

    Name/Title: Andrew Pollet, President     Date:  

--------------------------------------------------------------------------------

15

--------------------------------------------------------------------------------

EXHIBIT "2"

October   , 2000

JOINT ESCROW INSTRUCTIONS
For Cancellation of Escrow and Delivery of Check and Stock Certificate

     To: Joseph M. Galosic, Esq.

    Re: Escrow for $145,831.25, and 23,333 Shares of Staar Surgical Company
Stock

Dear Mr. Galosic:

    You are hereby jointly instructed by Vladimir Feingold ("Feingold") and
Staar Surgical Company, a Delaware corporation ("Staar") to:

    1.  Immediately (the term "immediately" as used herein shall mean within two
business days) deliver the Stock Certificate (the term "Stock Certificate" shall
mean a Certificate of Stock for Twenty Three Thousand Three Hundred Thirty Three
(23,333) shares of fully registered, non-restricted, free trading Staar common
stock) to Staar, c/o Robert C. Woodbury, Esq., Pollet & Woodbury, at 10900
Wilshire Blvd., Ste. 500, Los Angeles, California 90024; and

    2.  Immediately deliver to Feingold, c/o Mark S. Adams, Esq., Green & Adams,
LLP, at 8 Corporate Park, Suite 200, Irvine, California 92606, a cashier's check
drawn from your attorney-client trust account in the amount of One Hundred Forty
Five Thousand Eight Hundred Thirty One Dollars and Twenty Five Cents
($145,831.25) made payable to "Vladimir Feingold."

    After completion of the items above, escrow shall be closed and you shall be
discharged of any and all duties under the Escrow Agreement and Instructions.

    VLADIMIR FEINGOLD
 
 
By:
 

--------------------------------------------------------------------------------

    Name/Title: Vladimir Feingold     Date:  

--------------------------------------------------------------------------------

 
 
STAAR SURGICAL COMPANY     a Delaware corporation
 
 
By:
 

--------------------------------------------------------------------------------

    Name/Title: Andrew Pollet, President     Date:  

--------------------------------------------------------------------------------

16

--------------------------------------------------------------------------------

EXHIBIT "3"

October   , 2000

ESCROW INSTRUCTION BY STAAR
For Cancellation of Escrow and Delivery of Stock Certificate

     To: Joseph M. Galosic, Esq.

    Re: Escrow for $145,831.25 and 23,333 Shares of Staar Surgical Company Stock

Dear Mr. Galosic:

    You are hereby instructed by Staar Surgical Company, a Delaware corporation
("Staar") to:

    Immediately (the term "immediately" as used herein shall mean within two
business days) deliver the Stock Certificate (the term "Stock Certificate" shall
mean a Certificate of Stock for Twenty Three Thousand Three Hundred Thirty Three
(23,333) shares of fully registered, non-restricted, free trading Staar common
stock) to Staar, c/o Robert C. Woodbury, Esq., Pollet & Woodbury, at 10900
Wilshire Blvd., Ste. 500, Los Angeles, California 90024.

    STAAR SURGICAL COMPANY     a Delaware corporation
 
 
By:
 

--------------------------------------------------------------------------------

    Name/Title: Andrew Pollet, President     Date:  

--------------------------------------------------------------------------------

17

--------------------------------------------------------------------------------

EXHIBIT "4"

October   , 2000

ESCROW INSTRUCTION BY FEINGOLD
Cancellation of Escrow and Delivery of Check

     To: Joseph M. Galosic, Esq.

    Re: Escrow for $145,831.25, and 23,333 Shares of Staar Surgical Company
Stock

Dear Mr. Galosic:

    You are hereby instructed by Vladimir Feingold ("Feingold") to:

    Immediately deliver to Feingold, c/o Mark S. Adams, Esq., Green & Adams,
LLP, at 8 Corporate Park, Suite 200, Irvine, California 92606, a cashier's check
drawn from your attorney-client trust account in the amount of One Hundred Forty
Five Thousand Eight Hundred Thirty One Dollars and Twenty Five Cents
($145,831.25) made payable to "Vladimir Feingold."

    VLADIMIR FEINGOLD
 
 
By:
 

--------------------------------------------------------------------------------

    Name/Title: Vladimir Feingold     Date:  

--------------------------------------------------------------------------------

18

--------------------------------------------------------------------------------

QuickLinks

SETTLEMENT AGREEMENT AND MUTUAL RELEASE
RECITALS
AGREEMENT
ESCROW AGREEMENT
EXHIBIT "1" October , 2000 JOINT ESCROW INSTRUCTIONS For Delivery of Check and
Stock Certificate
EXHIBIT "2" October , 2000 JOINT ESCROW INSTRUCTIONS For Cancellation of Escrow
and Delivery of Check and Stock Certificate
EXHIBIT "3" October , 2000 ESCROW INSTRUCTION BY STAAR For Cancellation of
Escrow and Delivery of Stock Certificate
EXHIBIT "4" October , 2000 ESCROW INSTRUCTION BY FEINGOLD Cancellation of Escrow
and Delivery of Check