Document:

Unassociated Document

    EMPLOYMENT
AGREEMENT

     

    This
Employment Agreement is made and entered into by and between STAAR Surgical
Company (the “Company”), a Delaware corporation located at 1911 Walker Avenue,
Monrovia, California 91016 and Deborah Andrews (hereinafter the “Employee”),
located at, CA, effective November, 2002.

     

    RECITALS

     

    A.           WHEREAS,
the Company wishes to retain the services of Employee and Employee wishes to
render services to Company as Global Controller.

     

    B.           WHEREAS,
the Employee and the Company desire to enter into this Employment Agreement and
to establish the terms and conditions of the Employee’s employment.

     

    C.           WHEREAS,
the Company and the Employee intend that this Agreement will supercede and
replace any and all other employment agreements or arrangements for employment
entered into by and between the Company and the Employee, and that such
employment agreements or arrangements shall have no further force or
effect.

     

    AGREEMENT

     

    NOW,
THEREFORE, for and in consideration of the promises, covenants, and agreements
contained herein, the parties hereto agree as follows:

     

    ARTICLE
1

     

    EMPLOYMENT

     

    1.1           Employment.  The
Company hereby agrees to employ the Employee and the Employee hereby agrees to
serve the Company in the capacity of Global Controller, based upon the terms and
conditions set forth in this agreement.

     

    1.2           
Duties.  During
the term of her employment, the Employee shall devote her full time, efforts,
abilities, and energies to the Company’s business and, in particular, shall use
her best efforts, skill, and abilities to promote the general welfare and
interests of the Company.  The Employee shall loyally,
conscientiously, and professionally do and perform all such duties and
responsibilities as shall be reasonably assigned by the Company and the
Employee’s superiors from time to time, and shall comply with all of the
Company’s personnel policies and procedures, including, but not limited to,
those contained in The Company’s Employee Handbook.

     

    1.3           Noncompetition,
Nonsolicitation and Noninterference and Proprietary Property and Confidential
Information Provisions.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (a)           Applicable
Definitions.

     

    For
purposes of this paragraph, the following capitalized terms shall have the
definitions set forth below:

     

    (i)           “Business Segments” -
The term “Business Segments” is defined as each of Company’s (or Company’s
affiliates’) products or product lines.

     

    (ii)           “Competitive
Business” - The term “Competitive Business” is defined as any business
that is or may be competitive with or similar to or adverse to any of Company’s
(or Company’s affiliates’) Business Segments, whether such business is conducted
by a proprietorship, partnership, corporation or other entity or
venture.

     

    (b)           Nonsolicitation and
Noninterference.

     

    (1)                 Covenants.  Employee
hereby covenants and agrees that Employee shall not, either for Employee’s own
account or directly or indirectly in conjunction with or on behalf of any
person, partnership, corporation or other entity or venture:

     

    (i)           During
the term of this Agreement and for a period of one (1) year from the date this
Agreement terminates or expires, solicit or employ or attempt to solicit or
employ any person who is then or has, within twelve (12) months prior thereto,
been an officer, partner, manager, agent or employee of Company or any affiliate
of Company whether or not such a person would commit a breach of that person’s
contract of employment with Company or any affiliate of Company, if any, by
reason of leaving the service of Company or any affiliate of Company (the
“Nonsolicitation Covenant”); or

     

    (ii)           During
the term of this Agreement and for a period of one (1) year from the date of the
Agreement, on behalf of, directly or indirectly, any Competitive Business, or
for the purpose of or with the reasonably foreseeable effect of harming the
business of Company, solicit the business of any person, fm or company which is
then, or has been at any time during the preceding twelve (12) months prior to
such solicitation, a customer, client, contractor, supplier or vendor of Company
or any affiliate of Company (the ‘‘Noninterference Covenant)”.

     

    (2)                 Acknowledgements.  Each
of the parties acknowledges that: (i) the covenants and the restrictions
contained in the Nonsolicitation and Noninterference Covenants are necessary,
fundamental, and required for the protection of the business of Company; (ii)
such Covenants relate to matters which are of a special, unique and
extraordinary value; and (iii) a breach of either of such Covenants will result
in irreparable harm and damages which cannot be adequately compensated by a
monetary award.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (3)                 Judicial
Limitation.  Notwithstanding the foregoing, if at any time,
despite the express agreement of Company and Employee, a court of competent
jurisdiction holds that any portion of this Nonsolicitation and/or
Noninterference Covenant is unenforceable by reason of its extending for too
great a period of time or by reason of its being too extensive in any other
respect, such Covenant shall be interpreted to extend only over the maximum
period of time or to the maximum extent in all other respects, as the case may
be, as to which it may be enforceable, all as determined by such court in such
action.

     

    (4)                 Termination of
Agreement.  The covenants and agreements contained in the
Nonsolicitation and Noninterference Covenant shall terminate and be of no effect
if this Agreement is terminated by Company without Cause.

     

    (c)           Proprietary Property;
Confidential Information.

     

    (1)                 “Applicable
Definitions” - For purposes of this paragraph, the following capitalized
terms shall have the definitions set forth below:

     

    (i)           “Confidential
Information” - The term “Confidential Information” is collectively and
severally defined as any information, matter or thing of a secret, confidential
or private nature, whether or not so labeled, which is connected with Company’s
business or methods of operation or concerning any of Company’s suppliers,
customers, licensors, licensees or others with whom Company has a business
relationship, and which has current or potential value to Company or the
unauthorized disclosure of which could be detrimental to
Company.  Confidential Information shall be broadly defined and shall
include, by way of example and not limitation: (i) matters of a business nature
available only to management and owners of Company of which Employee may become
aware (such as information concerning customers, vendors and suppliers,
including their names, addresses, credit or financial status, buying or selling
habits, practices, requirements, and any arrangements or contracts that Company
may have with such parties, Company’s marketing methods, plans and strategies,
the costs of materials, the prices Company obtains or has obtained or at which
Company sells or has sold its products or services, Company’s manufacturing and
sales costs, the amount of compensation paid to employees of Company and other
terms of their employment, financial information such as financial statements,
budgets and projections, and the terms of any contracts or agreements Company
has entered into) and (ii) matters of a technical nature (such as product
information, trade secrets, knowhow, formulae, innovations, inventions, devices,
discoveries, techniques, formats, processes, methods, specifications, designs,
patterns, schematics, data, compilation of information, test results, and
research and development projects).  For purposes of the foregoing,
the term “trade secrets” shall mean the broadest and most inclusive
interpretation of trade secrets as defined by Section 3426.1(d) of the
California Civil Code (the Uniform Trade Secrets Act) and cases interpreting the
scope of said Section.

     

    
      
         

      

      
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    (ii)           “Proprietary Property”
- The term “Proprietary Property” is collectively and severally defined as any
written or tangible property owned or used by Company in connection with
Company’s business, whether or not such property also qualifies as Confidential
Information.  Proprietary Property shall be broadly defined and shall
include, by way of example and not limitation, products, samples, equipment,
files, lists, books, notebooks, records, documents, memoranda, reports,
patterns, schematics, compilations, designs, drawing, data, test results,
contracts, agreements, literature, correspondence, spread sheets, computer
programs and software, computer print outs, other written and graphic records,
and the like, whether originals, copies, duplicates or summaries thereof,
affecting or relating to the business of Company, financial statements, budgets,
projections, invoices.

     

    (2)                 Ownership of Proprietary
Property.  Employee acknowledges that all Proprietary Property
which Employee may prepare, use, observe, come into possession of and/or control
shall, at all times, remain the sole and exclusive property of
Company.  Employee shall, upon demand by Company at any time, or upon
the cessation of Employee’s employment, irrespective of the time, manner, cause
or lack of cause of such cessation, immediately deliver to Company or its
designated agent, in good condition, ordinary wear and tear and damage by any
cause beyond the reasonable control of Employee excepted, all items of the
Proprietary Property which are or have been in Employee’s possession or under
his control, as well as a statement describing the disposition of all items of
the Proprietary Property beyond Employee’s possession or control in the event
Employee has not previously returned such items of the Proprietary Property to
Company.

     

    (3)                 Agreement Not to Use or
Divulge Confidential Information.  Employee agrees that he will
not, in any fashion, form or manner, unless specifically consented to in writing
by Company, either directly or indirectly use, divulge, transmit or otherwise
disclose or cause to be used, divulged, transmitted or otherwise disclosed to
any person, firm or corporation, in any manner whatsoever (other than in
Employee’s performance of duties for Company or except as required by law) any
Confidential Information of any kind, nature or description.  The
foregoing provisions shall not be construed to prevent Employee from making use
of or disclosing information which is in the public domain through no fault of
Employee, provided, however, specific information shall not be deemed to be in
the public domain merely because it is encompassed by some general information
that is published or in the public domain or in Employee’s possession prior to
Employee’s employment with Company.

     

    (4)                 Acknowledgement of
Secrecy.  Employee acknowledges that the Confidential
Information is not generally known to the public or to other persons who can
obtain economic value from its disclosure or use and that the Confidential
Information derives independent economic value thereby, and Employee agrees that
he shall take all efforts reasonably necessary to maintain the secrecy and
confidentiality of the Confidential Information and to otherwise comply with the
terms of this Agreement.

     

    
      
         

      

      
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    (5)                 Inventions,
Discoveries.  Employee
acknowledges that any inventions, discoveries or trade secrets, whether
patentable or not, made or found by Employee in the scope of his employment with
Company constitute property of Company and that any rights therein now held or
hereafter acquired by Employee individually or in any capacity are hereby
transferred and assigned to Company, and agrees to execute and deliver any
confirmatory assignments, documents or instruments of any nature necessary to
carry out the intent of this paragraph when requested by Company without further
compensation therefore, whether or not Employee is at the time employed by
Company.  Provided, however, notwithstanding the foregoing, Employee
shall not be required to assign his rights in any invention which qualifies
fully under the provisions of Section 2870(a) of the California Labor Code,
which provides, in pertinent part, that the requirement to assign “shall not
apply to any invention that the employee developed entirely on his or her own
time without using employer’s equipment, supplies, facilities or trade secret
information except for those inventions that either:

     

    (i)           Relate
at the time of conception or reduction to practice of the invention to the
employer’s business, or actual or demonstrably anticipated research or
development of the employer; or

     

    (ii)           Result
from any work performed by the employee for the employer.”

     

    Employee
understands that she bears the full burden of proving to Company that an
invention qualifies fully under Section 2870(a).  By signing this
Agreement, Employee acknowledges receipt of a copy of this Agreement and of
written notification of the provisions of Section 2870.

     

    ARTICLE
2

     

    COMPENSATION

     

    2.1           Salary.  The
Company shall pay the Employee a salary payable at the gross rate of $4991.54
per pay period, to be paid on a bi-weekly basis.  Employee’s annual
salary shall be reviewed periodically by Company for the purpose of determining
whether Employee’s salary shall be increased.

     

    2.2           Employee
Benefits.  In addition to the compensation specified above, the
Employee shall be permitted to participate in certain employee benefit programs
in the same manner and subject to the same terms, conditions, and limitations as
other full-time employees of the Company.  The Company will provide a
life insurance policy with a face value of $250,000, in addition to the other
benefits that the employee is entitled to participate in.  The
Employee will also be eligible for four weeks vacation per year.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    2.3           Business
Expenses.  The Company will reimburse the Employee for
reasonable business expenses as outlined in the company’s business expense
policy and provided that these expenses were incurred on Company business and
that expense reports regarding these expenses are submitted to the Company in a
timely manner.

     

    2.4           Bonus.  In
addition to the salary described above, the Employee shall be eligible for an
annual bonus of up to 20% of base salary based on the achievement of corporate
financial performance measures and personal MBO’s.

     

    ARTICLE
3

     

    TERMINATION
OF EMPLOYMENT

     

    3.1           Termination.  This
employment relationship may be terminated for any of the reasons provided
below:

     

    a.           Termination for
Cause.  Company may terminate this Agreement for “Cause”, upon
15 days written notice.  Cause means any of the following: (1) willful
breach or habitual neglect of the duties which Employee is required to perform
under the terms of this Agreement, (2) any act of dishonesty, fraud,
insubordination, misrepresentation, gross negligence or willful misconduct, (3)
conviction of a felony, or (4) intentional violation of any Company
policy.  Company may terminate this Agreement for Cause by giving
written or verbal notice of termination to Employee.  With the
exception of the covenants set forth in Paragraph 1.3,4.1 and 4.3, upon such
termination the obligations of Employee and Company under this Agreement shall
immediately cease.  Such termination shall be without prejudice to any
other remedy to which Company may be entitled either at law, in equity, or under
this Agreement.  If Employee’s employment is terminated pursuant to
this paragraph, the Company shall pay to Employee, immediately upon such
termination, any accrued but unpaid compensation to which Employee is entitled
on the date of such termination.

     

    b.           Termination for Poor
Performance.  Employer may terminate employee’s employment
under this Agreement for “Poor Performance”.  Poor Performance is a
failure of the Employee to properly meet the duties and responsibilities of her
position in a competent fashion, as determined by the Chief Financial Officer or
Chief Executive Officer.  Such termination for “Poor Performance”
shall occur only after employee has been advised in writing of the failure to
meet the duties and responsibilities, or guidelines/goals and given a reasonable
period of time of at least employment, and shall receive one additional month of
base salary.  Employee shall be entitled to no other payments or
benefits after a termination for Poor Performance.  With the exception
of the covenants set forth in Paragraph 1.3, 4.1 and 4.3, upon such termination
the obligations of Employee and Company under this Agreement shall immediately
cease.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    c.           Death.  Employee’s
employment shall terminate upon the death of Employee.  Upon such
termination, the obligations of Employee and Company under this Agreement shall
immediately cease.  In the event of a termination pursuant to this
paragraph, Employee shall be entitled to receive any amount of compensation
earned but unpaid.  All other rights Employee has under any benefit or
stock option plans and programs shall be determined in accordance with the terms
and conditions of such plans and programs.

     

    d.           Election By
Employee.  Employee’s employment may be terminated at any time
by Employee upon not less than thirty (30) days written notice to
Company.  With the exception of the covenants set forth in Paragraphs
1.3, 4.1 and 4.3, upon such termination the obligations of Employee and the
Company under this Agreement shall immediately cease.  In the event of
a termination pursuant to this paragraph, Employee shall be entitled to receive
any amount of compensation earned but unpaid.  All other rights
Employee has under any benefit or stock option plans and programs shall be
determined in accordance with the terms and conditions of such plans and
programs.

     

    e.           Election by Company Due to a
Change of Control.  If Employee’s employment is terminated by
Company due to the sale or disposition by the Company of substantially all of
its business or assets or the sale of the capital stock of Company in connection
with the sale or transfer of a controlling interest in Company to a third party
or the merger or consolidation of Company with another corporation as part of a
sale or transfer of a controlling interest in Company to a third party and if the Employee’s
essential duties and responsibilities as set forth in the job description for
the position that Employee is in at the time of the change of control are
significantly changed due to a change in control, then in lieu of any other
rights or benefits under this Agreement, Employee shall be entitled to one (1)
year’s salary, and any option held by Employee which is unvested on the date of
termination shall immediately vest.  “A controlling interest” shall be
defined as 50% or more of the common stock of the Company.  “One (1)
year’s salary” shall be defined as only the cash compensation paid to Employee
pursuant to paragraph 2.1, as it may be modified from time to time, and shall
not include employee benefits, bonus, stock options, automobile allowance or
debt forgiveness, if any.  With the exception of the covenants
contained in Paragraphs 1.3(c), 4.1 and 4.3, upon such termination the
obligations of Employee and the Company shall immediately cease.

     

    f.           Termination Without
Cause.  Company is entitled to terminate the Employee’s
employment without cause for any reason; provided, however, that the Employee
shall be entitled to 30 days written notice and four months pay as severance, as
well as any accrued but unpaid compensation in lieu of any other rights or
benefits under this Agreement, to which Employee is entitled on the date of such
termination.  With the exception of the covenants contained in
Paragraphs 1.3(c), 4.1 and 4.3, upon such termination the obligations of
Employee and the Company shall immediately cease.

     

    
      
         

      

      
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    ARTICLE
4

     

    ADDITIONAL
OBLIGATIONS

     

    4.1           Non-Interference.  The
Employee shall not now or in the future, either during or subsequent to the
period of the Employee’s employment, disrupt, damage, impair or interfere with
the business of the Company in any manner, including, without limitation,
inducing an employee to leave the employ of the Company or inducing an employee,
a consultant, a sales representative, or an independent contractor to sever that
person’s relationship with the Company either by interfering with or raiding the
Company’s employees or sales representatives, disrupting the relationships with
customers, agents, independent contractors, representatives or vendors, or
otherwise.

     

    4.2           Conflicts of
Interest.  If the Employee is involved, directly or indirectly,
in an activity that presents a potential or actual conflict of interest, as
determined by the Company, by virtue of the Employee’s employment or employment
relationship with the Company, the Employee shall immediately terminate such
activity, employment and/or relationship unless the Employee has the express
written permission of the Company to continue it.  If the Employee has
any doubts as to whether a potential or actual conflict of interest is involved,
the Employee must disclose all pertinent facts to the Company before undertaking
the activity.  The Company shall make the final decision as to whether
such a conflict or potential conflict exists in its sole and subjective
discretion.

     

    4.3           Confidentiality.  The
Employee agrees, at all times during and after the Employee’s employment
hereunder, to hold in the strictest confidence, and not to disclose to any
person, firm or corporation without the express written authorization of the
Chairman of the Board of the Company, any trade secret, such as any financial
information or any secret, proprietary, or confidential information relating to
the research and development programs, vendor and marketing programs, customers,
customers’ information, sales or business of the Company, except as such
disclosure or use may be required in connection with his work for the Company or
is published or is otherwise readily available to the public or becomes known to
the public other than by his breach of this Agreement.  If it is at
any time determined that any of the information or materials identified above
are, in whole or in part, not entitled to protection as trade secrets, the
Employee and the Company agree that they shall nevertheless be considered and
treated as confidential information that is protected under this Agreement, in
the same manner as trade secrets, to the extent permitted by law.

     

    The
Employee further agrees, upon termination of this Agreement, to promptly deliver
to the Company all notes, books, correspondence, drawings, computer storage
information, and any and all other written and graphical records in his
possession or under his control relating to the past, present or future
business, accounts, or projects of the Company.

     

    
      
         

      

      
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    ARTICLE
5

     

    MISCELLANEOUS

     

    5.1           Entire
Agreement.  This Agreement constitutes the entire agreement and
understanding between the parties with respect to the subject matter hereof and
supersedes any and all other arrangements, communications, understandings,
promises, stipulations, arrangements, whether any of the same are either oral or
in writing, or express or implied, between the parties hereto with respect to
the subject matter hereof, including, but not limited to, any implied-in-law or
implied-in-fact covenants or duties relating to employment or the termination of
employment.  No change to or modification of this Agreement shall be
valid or binding unless the same shall be in writing and signed by both the
Employee and the President of the Company.

     

    5.2           Severability.  In
the event that any one or more of the provisions of this Agreement shall be held
invalid, illegal, or unenforceable, in any respect, by a court of competent
jurisdiction, the validity, legality, and enforceability of the remaining
provisions contained herein shall not in any way be affected
thereby.

     

    5.3           Applicable
Law.  This Agreement and the rights and remedies of each party
arising out of or relating to this Agreement, shall be governed by, interpreted
under and enforced under the laws of the State of California.

     

    5.4           Counterparty.  This
Agreement may be executed in counterparts, each of which shall be deemed an
original.

     

    IN
WITNESS WHEREOF, the parties hereto acknowledge that they have read this
Agreement, fully understand it, and have freely and voluntarily entered into
it.

     

    

    
      
        	
                 

                Dated:
      12/2/02

              	
                “EMPLOYEE”

                 

                /s/Deborah Andrews

              
	
                 

                Dated:
      12/18/02

              	
                 

                “The
      Company”

                 

                /s/John Bily

                  STAAR
      Surgical Company

              

      

    

    

    
      
         

      

      
        9Service
Agreement

    

    between

    

    Domilens GmbH, Holsteiner
Chaussee 303a

    

    (hereinafter
referred to as: Company)

    

    and

    

    Dr.
Reinhard Pichl, Hauptstraße 37, 79227 Schallstadt

    

    (hereinafter
referred to as: Managing
Director or Dr.
Pichl)

    

    

    Preamble

    

    Dr. Pichl
has been appointed managing director of the Company by way of the shareholders
resolution with effect as of 1 November 2007. In this regard, the following has
been agreed upon:

    

    

    §
1

    Power
of Representation

    

    (1)           The
Managing Director has sole power to represent the Company.

    

    (2)           The
Company may at any time change the power of representation.

    

    

    §
2

    Management
of the Company

    

    
      	
              (1)

            	
              The
      Managing Director shall manage the Company pursuant to the regulations set
      forth in this Service Agreement, in the articles of association of the
      Company, the rules of procedure for the Management of the Company in its
      current version, if applicable, as well as the instructions of the
      shareholders.

            

    

    

    
      	
              (2)

            	
              For
      all business transactions and measures beyond the ordinary course of
      business of the Company the Managing Director needs to receive the express
      prior approval of the shareholders. These are in
    particular:

            

    

    
      	
              Ø  

            	
              Sale
      and shut-down of the business of the Company or significant parts
      thereof;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              Ø  

            	
              Establishment
      of subsidiaries;

            

    

    
      	
              Ø  

            	
              Acquisition
      or sale of other companies or participations of the
    Company;

            

    

    
      	
              Ø  

            	
              Acquisition,
      sale, or encumbrances of real property or rights equivalent to real
      property as well as the obligation to carry out such business
      transactions;

            

    

    
      	
              Ø  

            	
              Acceptance
      of sureties and guarantees as well as acceptance of any kind of
      liabilities resulting from bills of
exchange;

            

    

    
      	
              Ø  

            	
              Drawdown
      or granting of credits or securities of any kind that exceed €
      25,000 and do not belong to the ordinary course of
      business;

            

    

    
      	
              Ø  

            	
              Conclusion,
      amendment or termination of agreements that burden the Company with more
      than € 50,000 in each individual
case;

            

    

    
      	
              Ø  

            	
              Employment,
      promotion and dismissal of employees with an annual gross salary of more
      than € 80,000;

            

    

    
      	
              Ø  

            	
              Granting
      and revocation of prokura and power of
attorney;

            

    

    
      	
              Ø  

            	
              Granting
      of pension promises of any kind.

            

    

    

    The list
of business transactions requiring prior approval of the shareholders may be
expanded or reduced at any time by way of shareholders resolution.

    

    
      	
              (3)

            	
              The
      Company may at any time appoint further managing directors and resolve
      rules of procedure for the management, stipulating the scope of duties and
      responsibilities for each managing
director.

            

    

    

    

    
      	
              §
      3

            

    

    
      	
              Term
      of this Agreement

            

    

    

    
      	
              (1)

            	
              This
      Agreement becomes effective on 1 November 2007 and has been entered into
      for an indefinite period of time. The first six months of the employment
      relationship are deemed to be the probation period. During this period the
      employment may be terminated with a notice period of one month to the end
      of each month. After expiration of the probation period, the notice period
      shall be three months to the end of a
month.

            

    

    

    
      	
              (2)

            	
              This
      Agreement shall end without notice of termination at the end of the month,
      in which the Managing Director reaches the age of 65 or his full reduction
      in earning capacity should be
declared.

            

    

    

    
      	
              (3)

            	
              The
      right for termination without notice due to an important reason remains
      unaffected. An important reason for the Company may be in particular the
      Managing Director’s breach of the internal restrictions set forth for the
      management in § 2 para. 2 of this
Agreement.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    
      	
              (4)

            	
              The
      notice of termination shall be declared in
  writing.

            

    

    

    
      	
              (5)

            	
              The
      appointment as managing director may be revoked at any time by way of
      shareholders resolution. The revocation of the appointment (recall) shall
      be deemed to be the termination of this Agreement with effect to the next
      possible date.

            

    

    

    
      	
              (6)

            	
              From
      the date of receiving the termination – irrespective of which party gives
      notice of termination - the Company may release the Managing Director from
      his duties. All holiday claims shall be deemed satisfied with the release.
      During the release period

            

    

    
      	
               
      

            	
              §
      615 sentence 2 German Civil Code (BGB) shall
      apply.

            

    

    

    

    
      	
              §
      4

            

    

    
      	
              Remuneration

            

    

    

    
      	
              (1)

            	
              For
      his services the Managing Director shall receive an annual fixed gross
      remuneration of € 180,000.00 (in words: Euro one hundred eighty
      thousand). The agreed annual fixed gross remuneration shall be payable in
      twelve equal instalments, each to be paid at the end of a calendar month
      reduced by taxes and contributions to social security. Insofar as the
      service of the Managing Director starts or ends during a calendar year,
      the annual fixed gross remuneration shall be due pro rata
      temporis.

            

    

    

    
      	
              (2)

            	
              No
      additional remuneration shall be paid for extra work or
      overtime.

            

    

    

    
      	
              (3)

            	
              Additionally,
      the Managing Director may earn a variable remuneration in case annual
      targets are reached, that have been stipulated by the shareholders meeting
      in agreement with the Managing Director. The annual variable gross
      remuneration in case of 100 % fulfilment of the stipulated annual
      targets shall be 30% of the annual fixed gross remuneration.  In
      case a contract year is shorter than a calendar year this amount shall be
      due pro rata
      temporis. The earned variable remuneration shall be due for payment
      after determination of the audited financial statements for the concerned
      calendar year. In case the Parties cannot agree on new annual targets for
      the following business year, at least those targets shall be valid for the
      following business year that are developed by way of adjusting the targets
      of the previous year.

            

    

    

    
      	
              (4)

            	
              Subject
      to the approval of the executive board of STAAR Surgical Company (Parent Company) the
      Managing Director shall be granted 25,000 options for the acquisition of
      shares in STAAR Surgical Company. The price for exercising the option
      shall be the market value valid on the date the option has been granted,
      unless a different price for exercising the option has been stipulated in
      writing upon granting the options. The question whether the options have
      reached the date for being exercised or utilized, the exercise or the
      expiry as well as further rights and obligations relating to the options
      shall be determined pursuant to the regulations of the current
      stock-option-plan of STAAR Surgical Company, according to which they have
      been granted. The Parties are in agreement, that for the rights and
      obligations stipulated in the stock-option-plan the jurisdiction shall
      apply, that is stipulated in the stock-option-plan
  itself.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              §
      5

            

    

    
      	
              Working
      Hours

            

    

    

    The
Managing Director shall work exclusively for the Company and shall do his utmost
to promote the Company’s interests. If necessary, the Managing Director shall be
at the Company’s disposal beyond the usual working hours and shall promote its
interests.

    

    

    §
6

    Non-competition
and Non-solicitation Clause

    

    
      	
              (1)

            	
              The
      Managing Director undertakes not to be active during the term of this
      Agreement, neither as free-lancer nor as employee, nor as contractor,
      neither directly nor indirectly by way of participation, in any way as
      competition or for a direct competitor of the
  Company.

            

    

    

    
      	
              (2)

            	
              The
      Managing Director shall not, neither during the term of this Agreement nor
      after its termination, neither himself nor through others, neither
      directly nor indirectly, solicit employees of the Company actively or
      induce them to termination their employment agreement with the Company and
      to conclude a new one with a company competing with the
      Company.

            

    

    

    
      	
              (3)

            	
              The
      non-competition and non-solicitation clause is also applicable in favour
      of companies affiliated with the Company (§ 15 German Stock Companies Act,
      AktG).

            

    

    

    

    §
7

    Secondary
Employment

    

    Any
additional kind of remunerated or usually remunerated activity of the Managing
Director requires the express prior approval in writing of the shareholders
meeting.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    §
8

    Vacation
Entitlement

     

    
      	
              (1)

            	
              The
      Managing Director is, on the basis of a working week of 5 days, entitled
      to an annual vacation with pay of 30 days. Insofar as the service of the
      Managing Director starts or ends during a calendar year, the annual
      vacation entitlement shall be granted pro rata
      temporis.

            

    

    

    
      	
              (2)

            	
              The
      vacation has to be stipulated taking into account the interests of the
      Company. The Managing Director will ensure that, also during his vacation,
      he can be contacted at short
notice.

            

    

    

    

    §
9

    Illness

    

    In case
the Managing Director should be prevented from working, due to illness through
no fault of his own that prevents him from carrying out his tasks or any other
circumstance beyond his fault preventing him from rendering his services during
the term of this Agreement, the Managing Director is entitled to receive
continued payment of the remuneration pursuant to § 4 para. 1 of this Agreement
on a pro rata temporis
basis for a period of six weeks. The Managing Director shall assign to the
Company claims for indemnification towards third parties in the amount of the
continued remuneration paid to him.

    

    

    §
10

    Insurance

    

    The
Company shall conclude an accident insurance in favour of the Managing Director
for the term of this Agreement covering accidents at work and accidents during
everyday life with a sum insured of €153,399 for the event of death and €
355,646 for the event of incapacitation.

    

    

    §
11

    Pension
Promise

    

    The
Company shall, after the Managing Director has passed the probation period,
establish in his favour a pension plan by way of a direct insurance with annual
contributions in an amount of € 1.750,00 gross (in words: Euro one
thousands evenhundred fifty). Additionally, the Act on the Amendment of Company
Pension Schemes shall be applicable. The income tax eventually due on these
payments shall be borne by the Managing Director.

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    §
12

    Reimbursement
of Expenses

    

    
      	
              (1)

            	
              Expenses
      occurring during carrying out his tasks in the scope of this Agreement
      shall be reimbursed to the Managing Director upon presentation of the
      corresponding expense vouchers up to the maximum allowable amount for tax
      purposes.

            

    

    

    
      	
              (2)

            	
              The
      Company will, during the first twelve months of this Agreement,
      participate in the monthly costs for renting accommodation situated near
      to the seat of the Company up to a maximum amount of € 1,500.00 per month.
      The actual costs shall be verified by a copy of the lease
      agreement.

            

    

    

    
      	
              (3)

            	
              The
      Company will, during the first twelve months of this Agreement,
      participate in the costs for monthly travelling respectively flights to
      the home of the Managing Director up to a maximum amount of € 1,200.00 per
      month.

            

    

    

    
      	
              (4)

            	
              Should
      the Managing Director during the first twelve months of this Agreement
      move his residence to a place near the seat of the Company, the Company
      will reimburse the Managing Director with costs occurring for the
      relocation up to a maximum amount of € 15,000.00 upon presentation of
      the corresponding expense vouchers. The relocation order may only be given
      in agreement with the Company. The Managing Director shall previously
      solicit the quotations of at least two transport companies. In case the
      Managing Director’s Service Agreement should be terminated before the
      expiration of one year after the date of relocation, he shall be obliged
      to return the relocation costs to the Company. There is no repayment
      obligation in case the Service Agreement is terminated by way of an
      ordinary termination by the
Company.

            

    

    

    

    §
13

    Company
Car

    

    
      	
              (1)

            	
              The
      Company will put at the Managing Director’s disposal a company car for the
      purpose of carrying out his contractual obligations. This car shall be an
      upper medium-sized car (Mercedes E-class, BMW 5er-series, Audi A6). The
      Managing Director has no right to claim any specific vehicle type or
      model.

            

    

    

    
      	
              (2)

            	
              Additionally
      to the utilization for business purposes, the Managing Director may – up
      to a limited extent – use the car for private purposes. The non-cash
      benefit for the private use shall be calculated pursuant to the currently
      applicable tax regulations and shall be borne by the Managing
      Director.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    
      	
              (3)

            	
              The
      further details for the use of the company car are stipulated in a
      separate agreement.

            

    

    

    §
14

    Secrecy

    

    During
the term of this Agreement and after its termination the Managing Director is
obliged to keep strict secrecy about all confidential information regarding the
business or particular matters of the Company and affiliated companies (§ 15
German Stock Companies Act, AktG) and not to use this
information neither for his own purposes nor for third parties. The secrecy
obligation relates in particular to any strategic plans of the Company, all
information regarding products and product development and plans thereof,
pricing, customer and supplier relationships, other contractual relationships
and conclusions of agreements, marketing strategies, plans or analyses regarding
market potential, information regarding turnover, profit and productivity,
financing, fund-raising schemes or activities, personnel or personnel planning
of the Companies.

    

    

    §
15

    Return
of Documents

    

    The
Managing Director shall, upon termination of this Service Agreement, return
without request all documents, deeds, records, notes, drafts or copies thereof,
irrespective of their data carrier, to the Company. He has no right of retention
regarding these documents towards the Company.

    

    

    §
16

    Contractual
Penalty

    

    
      	
              (1)

            	
              The
      Managing Director shall pay to the Company a contractual penalty in case
      he

            

    

    
      	
              · 
        

            	
              breaches
      the non-competition and non-solicitation clause pursuant to § 6 as well as
      the secondary employment clause pursuant to § 7 of this
      Agreement;

            

    

    
      	
              · 
        

            	
              breaches
      the secrecy obligation or his obligation to return the documents pursuant
      to §§ 14 and 15 of this Agreement;

            

    

    
      	
              · 
        

            	
              does
      not take up his post or does not do so in due
  time;

            

    

    
      	
              · 
        

            	
              terminates
      this Service Agreement not adhering to the applicable notice period;
      or

            

    

    
      	
              · 
        

            	
              gives
      cause by his behaviour to the Company for an extraordinary termination of
      this Service Agreement due to important
reason.

            

    

    

    
      	
              (2)

            	
              It
      shall be in the Company’s equitable discretion to stipulate the amount of
      the contractual penalty to be paid by the Managing Director pursuant to
      above para. 1. In case of dispute regarding this discretionary decision
      the competent court will reassess it. The maximum amount of the
      contractual penalty will be € 50,000.00 for each individual case. In case
      of a continuing breach the contractual penalty shall newly arise for each
      started month. The Company reserves its right to claim additional
      damages.

            

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    §
17

    Final
Provisions

    

    
      	
              (1)

            	
              The
      Parties are in agreement that upon signature of this Service Agreement all
      possible previous agreements relating to the service of the Managing
      Director for the Company are invalid and replaced by this Service
      Agreement. No further agreements beyond this Service Agreement have been
      concluded.

            

    

    

    
      	
              (2)

            	
              Amendments
      or supplements to this Service Agreement have to be made in writing and
      require the express approval of the shareholders meeting in order to be
      valid. The same applies to waiving this requirement. The electronic form
      is excluded.

            

    

    

    
      	
              (3)

            	
              Should
      individual provisions be or become invalid, this does not affect the
      validity of the remaining provisions. Instead of the invalid provision or
      in case of omissions in this Agreement a reasonable provision shall be
      agreed upon, which corresponds most closely to the intended economic
      purpose of the invalid provision respectively to the provision, which
      would have been agreed upon by the Parties pursuant to the whole purpose
      of this Agreement, if they had thought of this issue in
      beforehand.

            

    

    

    

    
      	Place,
      Date    Hamburg,
      4 October 2007	Place,
      Date    Mengen,
      10/10/07
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              /s/
      H.M.
      Blickensdoerfer                       
      

            	
              /s/
      Reinhard
      Pichl                                   
      

            
	
              Signature
      Company

            	 
      	
              Signature
      of General Manager

            	 
      
	 
      	 
      	 
      	 
      
	
              Hans
      Blickensdoerfer

            	 
      	
              Dr.
      Reinhard Pichl

            	 
      
	
              General
      Manager Domilens GmbH

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