Document:

Exhibit 10.43

                                                                                                                                                                 
 

Exhibit 10.43

SEVERANCE AGREEMENT AND RELEASE

RECITALS

This Severance Agreement and Release
("Agreement") is made by and between Christopher J. Conway ("Employee")
and Mentor Corporation ("Company") (collectively referred to as the "Parties"):

WHEREAS, Employee was employed by
the Company;

WHEREAS, the
Company granted Employee options to purchase the Company's common stock (the "Options")
under one or several of the Company's stock option plans (the "Plans")
and each such Option is evidenced by an option agreement executed by Employee
and the Company (the "Option Agreements";

WHEREAS, Employee resigned his
employment with Company on or about February 16, 2005 (the "Resignation Date");

WHEREAS, the Employee, on or about
the Resignation Date, has submitted his written resignation from all Board of
Director positions to which he has been appointed and/or or elected;

WHEREAS, the Parties, and each of
them, wish to resolve any and all disputes, claims, complaints, grievances,
charges, actions, petitions and demands that either party may have against the
other, including, but not limited to, any and all claims arising or in any way
related to Employee's employment with, or separation from, the Company;

NOW THEREFORE, in consideration of
the promises made herein, the Parties hereby agree as follows:

COVENANTS

1.         
Consideration.  Upon
the Effective Date (as defined in Section 25) of this Agreement, Employee will
be entitled to the following:

(a)     Severance Pay.  The
Company agrees to pay Employee severance pay in an amount equal to Twenty-Four
(24) months' base salary rate as of the Resignation Date, plus one (1) month
base salary rate for each year of service with the Company.  Said severance
payment (in the total amount of Sixty (60) months' base salary) shall be paid
within fifteen (15) days after the Effective Date in one lump sum payment, less
applicable withholdings, of this Agreement.  

(b)     Options.  Employee will receive accelerated
vesting with respect to any unvested and unexpired stock options previously
granted to the Employee under the Plans and Option Agreements and exercisable
pursuant to Section 5 of the Option Agreements.  At the direction of the
Employee, the Company agrees to diligently work with the Employee with respect
to any ordinary disposition of shares and unexercised options.  Except as expressly stated herein, the Options will be
exercisable in accordance with the terms of the Plan and the Option
Agreements.   

(c)     Benefits.  The Company will pay the premiums otherwise payable
by the Employee and his eligible dependents for health, dental and vision
benefits coverage for up to twelve (12) months beginning on the Effective Date,
or until he becomes eligible for group insurance benefits from another
employer, whichever comes first, provided the Employee elects continuation
coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended ("COBRA"), within the time period prescribed under COBRA.  If the
Employee discontinues COBRA continuation coverage or elects alternative coverage,
a cash payment will not be provided in lieu of the Company's payment of
premiums above.  The Company will not reimburse the Employee for
any taxable income imputed to the Employee because the Company has paid the
Employee's COBRA premiums or those of the
Employee's eligible dependents.

(d)    
Unreimbursed Expenses and Accrued
Vacation.  The
Company will reimburse any business expenses reasonably incurred in performing
services for the Company prior to the Resignation Date.  In addition, all
accrued but unused vacation will be paid to the Employee pursuant to normal
payroll practices.

(e)     Vehicle Allowance.  The Company will transfer
ownership of the Employee's current Company vehicle to the Employee, free and
clear of any liens or encumbrances.  The Company agrees to commence such
transfer within fifteen (15) days after the Effective Date.

(f)     
Office Allowance.  The Company will pay the Employee
a one-time office allowance in the amount of $25,000 to maintain an office,
payable in a lump sum within fifteen (15) days after the Effective Date.

(g)     Parachute Payment.  In the event any of the payments
and benefits provided to the Employee result in an excise tax imposed by
Internal Revenue Code Section 4999, the Company will pay the Employee an
additional payment ("Gross-Up Payment") in an amount such that, after payment
by the Employee of all taxes imposed upon the Gross-Up Payment, the Employee
retains an amount of the Gross-Up Payment equal to any excise tax imposed on
the payments and benefits provided in this Agreement.

2.        
Confidential
Information. 
Employee will continue to maintain the confidentiality of all confidential and
proprietary information of the Company.  Employee will return all of the
Company's property and confidential and proprietary information in his possession
to the Company on the Effective Date of this Agreement.

3.         
Payment of
Salary.  Employee
acknowledges and represents that the Company has paid all salary, wages,
bonuses, accrued vacation, commissions and any and all other benefits due to
Employee once the above noted payments and benefits are received.

4.         
Press Release.  The Parties agree that the
Company will issue a press release with respect to the changes in executive
staff and Board of Directors.  The Company will provide Employee an opportunity
to review and comment on the press release.

5.         
Release of
Claims.  Employee
agrees that the foregoing consideration represents settlement in full of all
outstanding obligations owed to Employee by the Company and its officers,
managers, supervisors, agents and employees.  In consideration for the mutual
covenants contained in this Agreement, including but not limited to the
severance compensation provided hereunder, Employee and the Company, on behalf
of themselves, and their respective heirs, family members, executors, officers,
directors, employees, investors, shareholders, administrators, affiliates,
divisions, subsidiaries, predecessor and successor corporations, and assigns,
hereby fully and forever release each other and their respective heirs, family
members, executors, officers, directors, employees, investors, shareholders,
administrators, affiliates, divisions, subsidiaries, predecessor and successor
corporations, and assigns, from, and agree not to sue concerning, any claim,
duty, obligation or cause of action relating to any matters of any kind,
whether presently known or unknown, suspected or unsuspected, that any of them
may possess arising from any omissions, acts or facts that have occurred up
until and including the Effective Date of this Agreement including, without
limitation:

 

 

-2-

(a)     any and all claims relating to or
arising from Employee's employment relationship with the Company and the
termination of that relationship;

(b)     any and all claims relating to, or
arising from, Employee's right to purchase, or actual purchase of shares of
stock of the Company, including, without limitation, any claims for fraud,
misrepresentation, breach of fiduciary duty, breach of duty under applicable
state corporate law, and securities fraud under any state or federal law; 

(c)     any and all claims under the law of
any jurisdiction including, but not limited to, wrongful discharge of
employment; constructive discharge from employment; termination in violation of
public policy; discrimination; harassment; retaliation; breach of contract, both
express and implied; breach of a covenant of good faith and fair dealing, both
express and implied; promissory estoppel; negligent or intentional infliction
of emotional distress; negligent or intentional misrepresentation; negligent or
intentional interference with contract or prospective economic advantage;
unfair business practices; defamation; libel; slander; negligence; personal
injury; assault; battery; invasion of privacy; false imprisonment; and
conversion;

(d)     any and all claims for violation of
any federal, state or municipal statute, including, but not limited to, Title
VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age
Discrimination in Employment Act of 1967, the Americans with Disabilities Act
of 1990, the Fair Labor Standards Act, the Employee Retirement Income Security
Act of 1974, The Worker Adjustment and Retraining Notification Act, Older
Workers Benefit Protection Act; the Family and Medical Leave Act; the
California Family Rights Act; the California Fair Employment and Housing Act,
and the California Labor Code, including, but not limited to California Labor
Code Sections 1400-1408;

(e)     any and all claims for violation of
the federal, or any state, constitution;  

(f)       any and all claims arising out of
any other laws and regulations relating to employment or employment
discrimination;

(g)     any claim for any loss, cost,
damage, or expense arising out of any dispute over the non-withholding or other
tax treatment of any of the proceeds received by Employee as a result of this
Agreement; and

(h)     any and all claims for attorneys'
fees and costs.

The
Company and Employee agree that the releases set forth in this section will be
and remain in effect in all respects as a complete general release as to the
matters released.  This release does not extend to any obligations incurred
under this Agreement.

The Parties acknowledge and agree that any material
breach of any provision of this Agreement will entitle the non-breaching party
to any legal or equitable remedies available to such non-breaching party,
including but not limited to the right to immediately to recover and/or cease
the severance benefits provided under this Agreement.

6.        
Civil Code
Section 1542.  The
Parties represent that they are not aware of any claim by either of them other
than the claims released by this Agreement.  Employee and the Company
acknowledge that they had the opportunity to seek advice of legal counsel and
are familiar with section 1542 of the California Civil Code, which reads as
follows:

-3-

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 BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

Employee and the Company, being aware of such code section,
agree to expressly waive any rights they may have thereunder, as well as under
any other statute or common law principles of similar effect.

7.         
Acknowledgement
of Waiver of Claims Under ADEA.  Employee acknowledges that he is waiving and releasing any
rights he may have under the Age Discrimination in Employment Act of 1967 ("ADEA")
and that this waiver and release is knowing and voluntary.  Employee and the
Company agree that this waiver and release does not apply to any rights or
claims that may arise under ADEA after the Effective Date of this Agreement. 
Employee acknowledges that the consideration given for this waiver and release
Agreement is in addition to anything of value to which Employee was already
entitled.  Employee further acknowledges that he has been advised by this
writing that  

(a)     he should consult with an attorney prior
to executing this Agreement;

(b)     he has up to twenty-one (21) days
within which to consider this Agreement;

(c)     he has seven (7) days following his
execution of this Agreement to revoke this Agreement;

(d)     this Agreement will not be effective
until the revocation period has expired; and,

(e)     nothing in this Agreement prevents
or precludes Employee from challenging or seeking a determination in good faith
of the validity of this waiver under the ADEA, nor does it impose any condition
precedent, penalties or costs for doing so, unless specifically authorized by
federal law.

Employee
acknowledges that Employee was given twenty‐one (21) days to consider
this Agreement.  Once this agreement is executed, Employee may rescind this
Separation Agreement within seven calendar days to reinstate federal claims.  
To be effective, any rescission within the relevant time periods must be
writing and delivered to Mentor, in care of the Board of Directors,
Compensation Committee, PERSONAL AND CONFIDENTIAL, Mentor Corporation, 201 Mentor Drive, Santa Barbara, CA, 93111.  If sent by mail, the rescission must be (1)
postmarked within the 7-day period, (2) properly addressed, and (3) sent by
certified mail, return receipt requested.

8.         
No Pending or
Future Lawsuits. 
Employee represents that he has no disputes, claims, complaints, grievances,
charges, petitions, demands, lawsuits, or actions pending in his name, or on
behalf of any other person or entity, against the Company or any other person
or entity referred to herein.  Employee also represents that he does not intend
to bring any claims on his own behalf or on behalf of any other person or
entity against the Company or any other person or entity referred to herein.

-4-

9.          
Non-Disparagement.  Employee agrees to refrain from
any defamation, libel or slander of the Released Parties or tortious
interference with the contracts and relationships of the Released Parties. 
Employee agrees he will not act in any manner that might damage the business of
the Company.  Employee agrees that he will not counsel or assist any attorneys
or their clients in the presentation or prosecution of any disputes,
differences, grievances, claims, charges, or complaints by any third party against
the Company and/or any officer, director, employee, agent, representative,
shareholder or attorney of the Company, unless under a subpoena or other court
order to do so.  Employee further agrees both to immediately notify the Company
upon receipt of any court order, subpoena, or any legal discovery device that
seeks or might require the disclosure or production of the existence or terms
of this Agreement, and to furnish, within three (3) business days of its
receipt, a copy of such subpoena or legal discovery device to the Company.  All
inquiries by potential future employers of Employee will be directed to the
Human Resources Department, Mentor Corporation, 201 Mentor Drive, Santa Barbara, CA  03111.  Upon inquiry, the Company's Human Resources Department will
only be obligated, if asked, to state the following:  Employee's last position,
dates of employment and verify base salary.

10.         
Non-Solicitation.  Employee agrees that for a period
of twenty-four (24) months immediately following the Effective Date of this
Agreement, Employee will not either directly or indirectly solicit, induce,
recruit or encourage any of the Company's employees to leave their employment,
or take away such employees, or attempt to solicit, induce, recruit, encourage,
take away or hire employees of the Company, either for himself or any other
person or entity.

11.         
Non-Competition.  Employee agrees that for a period
of twenty-four (24) months immediately following the Effective Date of this
Agreement, Employee will not, individually or as a member of a partnership, or
as an officer, director, employee, or representative of any other entity or
individual, engage, directly or indirectly, in any business activity which is
the same or similar to work engaged in by the Employee on behalf of the Company
within the same geographic territory as the Employee's work for the Company and
which is directly competitive with the business conducted or to the Employee's
knowledge, contemplated by the Company at the time of termination of this
Agreement.  Employee may accept e-mployment with an entity competing with the
Company only if the business of that entity is diversified and the Employee is
employed solely with respect to a separately-managed and separately-operated
part of that entity's business that does not compete with the Company.  Prior
to accepting such employment, the Employee and the prospective employer entity
shall provide the Company with written assurances reasonably satisfactory to
the Company that the Employee will not render services directly or indirectly
to any part of that entity's business that competes with the business of the
Company.

12.         
No Admission.  No action taken by the Parties
hereto, or either of them, either previously or in connection with this
Agreement will be deemed or construed to be: (a) an admission of the truth or
falsity of any claims heretofore made or (b) an acknowledgment or admission by
either party of any fault or liability whatsoever to the other party or to any
third party.

13.          
No Knowledge
of Wrongdoing. 
Employee represents that he has no knowledge of any wrongdoing involving
improper or false claims against a federal or state governmental agency, or any
other wrongdoing that involves Employee or other present or former Company
employees.

14.          
Costs.  The Parties will each bear their
own costs, expert fees, attorneys' fees and other fees incurred in connection
with this Agreement.

15.          
Indemnification.  To the fullest extent permitted
by law [and the bylaws of the Articles of Incorporation of the Company], the
Parties agree to indemnify and hold harmless each other from and against any
and all loss, costs, damages or expenses, including, without limitation,
attorneys' fees or expenses incurred by the Parties arising out of the breach
of this Agreement by the Parties, or from any false representation made herein
by the Parties, or from any action or proceeding which may be commenced,
prosecuted or threatened by the Parties or for the Parties' benefit, upon
either Parties' initiative, or with the Parties' aid or approval, contrary to the
provisions of this Agreement.  The Parties further agrees that in any such
action or proceeding, this Agreement may be pled by the Parties as a complete
defense, or may be asserted by way of counterclaim or cross-claim.

16.          
Arbitration.  The Parties agree that any and
all disputes arising out of, or relating to, the terms of this Agreement, their
interpretation, and any of the matters herein released, will be subject to
binding arbitration in Santa Barbara County before the American
Arbitration Association under its National Rules for the Resolution of
Employment Disputes.  The Parties agree that the prevailing party in any
arbitration will be entitled to injunctive relief in any court of competent
jurisdiction to enforce the arbitration award.  The Parties agree that the
prevailing party in any arbitration will be awarded its reasonable attorneys'
fees and costs.   

-5-

The
Parties hereby agree to waive their right to have any dispute between them
resolved in a court of law by a judge or jury.  This section will not prevent
either party from seeking injunctive relief (or any other provisional remedy)
from any court having jurisdiction over the Parties and the subject matter of
their dispute relating to Employee's obligations under this Agreement and the
agreements incorporated herein by reference.

17.         
Authority.  The Company represents and
warrants that the undersigned has the authority to act on behalf of the Company
and to bind the Company and all who may claim through it to the terms and
conditions of this Agreement.  Employee represents and warrants that he has the
capacity to act on his own behalf and on behalf of all who might claim through
him to bind them to the terms and conditions of this Agreement.  Each party
warrants and represents that there are no liens or claims of lien or
assignments in law or equity or otherwise of or against any of the claims or
causes of action released herein.

18.        
No
Representations. 
Each party represents that it has had the opportunity to consult with an
attorney, and has carefully read and understands the scope and effect of the
provisions of this Agreement.  Neither party has relied upon any
representations or statements made by the other party hereto which are not
specifically set forth in this Agreement.

19.        
Severability.  In the event that any provision
hereof becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, then (a) the provision will be amended
automatically to the minimum extent necessary to cure the illegality or
invalidity and permit enforcement and (b) the remainder of this Agreement will
continue in full force and effect so long as the remaining provisions remain
intelligible and continue to reflect the original intent of the Parties.

20.        
Entire Agreement.  This Agreement represents the entire agreement and
understanding between the Company and Employee concerning the subject matter of
this Agreement and Employee's relationship with the Company, and supersedes and
replaces any and all prior agreements and understandings between the Parties
concerning the subject matter of this Agreement and Employee's relationship
with the Company, with the exception of the Stock Option Agreements.

21.        
No Waiver.  The failure of any party to
insist upon the performance of any of the terms and conditions in this
Agreement, or the failure to prosecute any breach of any of the terms and
conditions of this Agreement, will not be construed thereafter as a waiver of
any such terms or conditions.  This entire Agreement will remain in full force
and effect as if no such forbearance or failure of performance had occurred.

22.        No Oral
Modification.  Any
modification or amendment of this Agreement, or additional obligation assumed
by either party in connection with this Agreement, will be effective only if
placed in writing and signed by both Parties or by authorized representatives
of each party.

23.        
Governing Law.  This Agreement will be deemed to
have been executed and delivered within the State of California, and it will be
construed, interpreted, governed, and enforced in accordance with the laws of
the State of California, without regard to conflict of law principles.  To the
extent that either party seeks injunctive relief in any court having
jurisdiction for any claim relating to the alleged misuse or misappropriation
of trade secrets or confidential or proprietary information, each party hereby
consents to personal and exclusive jurisdiction and venue in the state and
federal courts of the State of California.

24.        
Attorneys'
Fees.  In the event
that either Party brings an action to enforce or effect its rights under this
Agreement, the prevailing party will be entitled to recover its costs and
expenses, including the costs of mediation, arbitration, litigation, court
fees, plus reasonable attorneys' fees, incurred in connection with such an
action.

 -6-

25.        Effective
Date.  This
Agreement is effective after it has been signed by both parties and after seven
(7) days have passed since Employee has signed the Agreement (the "Effective
Date"), unless revoked by Employee within seven (7) days after the date the
Agreement was signed by Employee.

26.       Counterparts.  This Agreement may be executed in
counterparts, and each counterpart will have the same force and effect as an
original and will constitute an effective, binding agreement on the part of each
of the undersigned.

27.        Voluntary
Execution of Agreement.  This Agreement is executed voluntarily and without any duress or
undue influence on the part or behalf of the Parties hereto, with the full
intent of releasing all claims.  The Parties acknowledge that:

(a)     They have read this Agreement;

(b)     They have been represented in the
preparation, negotiation, and execution of this Agreement by legal counsel of
their own choice or that they have voluntarily declined to seek such counsel;

(c)     They understand the terms and
consequences of this Agreement and of the releases it contains; and

(d)     They are fully aware of the legal
and binding effect of this Agreement.

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement on the respective
dates set forth below.

                                                                        MENTOR
CORPORATION

Dated: 
 February 16, 2005                                  By /s/Jeffrey W. Ubben

                                                                              Jeffrey
W. Ubben

                                                                              Compensation
Committee Chair

 

                                                                        CHRISTOPHER
J. CONWAY, an individual

 

Dated: February 16, 2005                                   /s/
Christopher J. Conway

                                                                        Christopher
J. Conway

 

 

 

-7-Exhibit 10.44

                                                                                                                                                                 
 

EXHIBIT
10.44

SEVERANCE
AGREEMENT AND RELEASE

RECITALS

This Severance Agreement and Release
("Agreement") is made by and between Adel Michael ("Employee")
and Mentor Corporation ("Company") (collectively referred to as the "Parties"):

WHEREAS, Employee was employed by
the Company;

WHEREAS, the Company and Employee
entered into an Employment Agreement, dated for reference purposes as of August 5, 2004, relating to Employee's employment with the Company;

WHEREAS, the Company and Employee
entered into the standard form of the Company's Employee Confidentiality
Agreement (the "Confidentiality Agreement");

WHEREAS, the
Company granted Employee options to purchase the Company's common stock (the "Options")
under one or several of the Company's stock option plans (the "Plans")
and each such Option is evidenced by an option agreement executed by Employee
and the Company (the "Option Agreements";

WHEREAS, the Employee resigned his
employment with Company on or about February 16, 2005 (the "Resignation Date");

WHEREAS, the Employee, on or about
the Resignation Date, has submitted his written resignation from all Board of
Director positions to which he has been appointed and/or elected;

WHEREAS, the Parties, and each of
them, wish to resolve any and all disputes, claims, complaints, grievances,
charges, actions, petitions and demands that either party may have against the
other, including, but not limited to, any and all claims arising or in any way
related to Employee's employment with, or separation from, the Company;

NOW THEREFORE, in consideration of
the promises made herein, the Parties hereby agree as follows:

COVENANTS

1.         Consideration.  Pursuant
to the terms of Section 4.2.5 of the Employment Agreement, upon the Effective
Date (as defined in Section 24) of this Agreement, Employee will be entitled to
the following:

(a)     Base Salary.  The Company agrees to pay
Employee the remaining base salary (as defined in Section 3.1.1 of the
Employment Agreement) rate through June 30, 2005, to be paid in one lump sum
payment, less applicable withholdings, payable within fifteen (15) days after
the Effective Date

(b)    
Severance Pay.  The
Company agrees to pay Employee a severance payment in an amount equal to two
(2) years' base salary  (as defined in Section 3.1.1 of the Employment
Agreement), to be paid in one lump sum payment, less applicable withholdings, payable
within fifteen (15) days after the Effective Date.

(c)    
Bonus.  The Company agrees to pay a bonus
of two times the annual base salary (as defined in
Section 3.1.1 of the Employment Agreement) rate for special projects previously
assigned and subsequently terminated by the Board of Directors prior to the
Employee's completion of the special project, payable within fifteen
(15) days after the Effective Date.

(d)     Options.  Employee will receive accelerated
vesting with respect to any unvested and unexpired stock options previously
granted to the Employee under the Plans and Option Agreements and exercisable
pursuant to Section 5 of the Option Agreements.  Except
as expressly stated herein, the Options will be exercisable in accordance with
the terms of the Plan and the Option Agreements.

(e)     Benefits.  The Company will pay the premiums otherwise payable
by the Employee and his eligible dependents for health, dental, vision and life
insurance coverage beginning on the Effective Date
and ending on June 30, 2008, or, with respect to any continuation coverage
pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended ("COBRA"), the date Employee is no longer eligible
to receive such coverage, or until he becomes eligible for group
insurance benefits from another employer, whichever comes first, provided the
Employee elects continuation coverage (where applicable) under COBRA, within
the time period prescribed under COBRA.  If the Employee discontinues any
coverage hereunder on his own volition, a cash payment will not be provided in
lieu of the Company's payment of premiums for the discontinued coverage(s).  If the Employee elects
alternative coverage with the same benefits as provided under the COBRA
continuation coverage, prior to June 30, 2008 but after the statutory end of
COBRA continuation coverage, a cash payment in the amount of the alternative
coverage premium will be provided in lieu of the Company's payment of COBRA
premiums above.  The Company will not reimburse the
Employee for any taxable income imputed to the Employee because the Company has
paid the Employee's premiums or those of the Employee's eligible dependents.
 

(f)      Unreimbursed Expenses and Accrued
Vacation.  The
Company will reimburse any business expenses reasonably incurred in performing
services for the Company prior to the Resignation Date.  In addition, all
accrued but unused vacation will be paid to the Employee pursuant to normal
payroll practices.

(g)    
Vehicle
Allowance.  The
Company will transfer ownership of the Employee's current Company vehicle to
the Employee (free and clear of any liens or encumbrances), upon payment by
Employee in an amount representing the difference between: (i) all of Company's
actual costs associated with the buy-out of the vehicle's lease agreement (as
of the date of such buy-out) and the transfer of its ownership to Employee
hereunder, and (ii) the total actual ordinary and recurring costs that Company
would have incurred in relation to said vehicle had the Company continued its
automobile expense obligations under the Employment Agreement from the
Effective Date through June 30, 2008.  The Company shall provide Employee,
within seven (7) days following the Effective Date, an itemized calculation of
the amount payable by the Employee hereunder.  The Company agrees to commence
transfer of the vehicle within fifteen (15) days after the its receipt of the
Employee's payment hereunder, and shall thereafter have no further obligations
in relation to said vehicle.

(h)     Parachute Payment.  In the event that any of the
payments and benefits provided to the Employee result in an excise tax imposed
by Internal Revenue Code Section 4999, the Company will pay the Employee an
additional payment ("Gross-Up Payment") in an amount such that, after payment
by the Employee of all taxes imposed upon the Gross-Up Payment, the Employee
retains an amount of the Gross-Up Payment equal to the excise tax imposed upon
the payments and benefits provided in this Agreement.

2.          Confidential
Information. 
Employee will continue to maintain the confidentiality of all confidential and
proprietary information of the Company and will continue to comply with the
terms and conditions of the Confidentiality Agreement between Employee and the
Company.  Employee will return all of the Company's property and confidential
and proprietary information in his possession to the Company on the Effective
Date of this Agreement.

-2-

3.          Payment of
Salary.  Employee
acknowledges and represents that the Company has paid all salary, wages,
bonuses, accrued vacation, commissions and any and all other benefits due to
Employee once the above noted payments and benefits are received.

4.          Press Release.  The Parties agree that the
Company will issue a press release with respect to the changes in executive
staff and Board of Directors.  The Company will provide Employee an opportunity
to review and comment on the press release.

5.          Release of
Claims.  Employee
agrees that the foregoing consideration represents settlement in full of all
outstanding obligations owed to Employee by the Company and its officers,
managers, supervisors, agents and employees.  In consideration for the mutual
covenants contained in this Agreement, including but not limited to the
severance compensation provided hereunder, Employee and the Company, on behalf
of themselves, and their respective heirs, family members, executors, officers,
directors, employees, investors, shareholders, administrators, affiliates,
divisions, subsidiaries, predecessor and successor corporations, and assigns,
hereby fully and forever release each other and their respective heirs, family
members, executors, officers, directors, employees, investors, shareholders,
administrators, affiliates, divisions, subsidiaries, predecessor and successor
corporations, and assigns, from, and agree not to sue concerning, any claim,
duty, obligation or cause of action relating to any matters of any kind,
whether presently known or unknown, suspected or unsuspected, that any of them
may possess arising from any omissions, acts or facts that have occurred up
until and including the Effective Date of this Agreement including, without
limitation:

(a)     any and all claims relating to or
arising from Employee's employment relationship with the Company and the
termination of that relationship;

(b)     any and all claims relating to, or
arising from, Employee's right to purchase, or actual purchase of shares of
stock of the Company, including, without limitation, any claims for fraud,
misrepresentation, breach of fiduciary duty, breach of duty under applicable
state corporate law, and securities fraud under any state or federal law; 

(c)     any and all claims under the law of
any jurisdiction including, but not limited to, wrongful discharge of employment;
constructive discharge from employment; termination in violation of public
policy; discrimination; harassment; retaliation; breach of contract, both
express and implied; breach of a covenant of good faith and fair dealing, both
express and implied; promissory estoppel; negligent or intentional infliction
of emotional distress; negligent or intentional misrepresentation; negligent or
intentional interference with contract or prospective economic advantage;
unfair business practices; defamation; libel; slander; negligence; personal
injury; assault; battery; invasion of privacy; false imprisonment; and
conversion;

(d)     any and all claims for violation of
any federal, state or municipal statute, including, but not limited to, Title
VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age
Discrimination in Employment Act of 1967, the Americans with Disabilities Act
of 1990, the Fair Labor Standards Act, the Employee Retirement Income Security
Act of 1974, The Worker Adjustment and Retraining Notification Act, Older
Workers Benefit Protection Act; the Family and Medical Leave Act; the
California Family Rights Act; the California Fair Employment and Housing Act,
and the California Labor Code, including, but not limited to California Labor
Code Sections 1400-1408;

(e)     any and all claims for violation of
the federal, or any state, constitution;  

(f)      any and all claims arising out of
any other laws and regulations relating to employment or employment
discrimination;

-3-

(g)     any claim for any loss, cost,
damage, or expense arising out of any dispute over the non-withholding or other
tax treatment of any of the proceeds received by Employee as a result of this
Agreement; and

(h)     any and all claims for attorneys'
fees and costs.

The
Company and Employee agree that the release set forth in this section will be
and remain in effect in all respects as a complete general release as to the
matters released.  This release does not extend to any obligations incurred
under this Agreement.

The parties acknowledge and agree that any material
breach of any provision of this Agreement will entitle the non-breaching party
to any legal or equitable remedies available to such non-breaching party,
including but not limited to the right to immediately to recover and/or cease
the severance benefits provided under this Agreement.

6.         Civil Code
Section 1542.  The
Parties represent that they are not aware of any claim by either of them other
than the claims released by this Agreement.  Employee and the Company
acknowledge that they had the opportunity to seek advice of legal counsel and
are familiar with section 1542 of the California Civil Code, which reads as
follows:

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 BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

Employee and the Company, being aware of such code section,
agree to expressly waive any rights they may have thereunder, as well as under
any other statute or common law principles of similar effect.

7.         Acknowledgement
of Waiver of Claims Under ADEA.  Employee acknowledges that he is waiving and releasing
any rights he may have under the Age Discrimination in Employment Act of 1967
("ADEA") and that this waiver and release is knowing and voluntary. 
Employee and the Company agree that this waiver and release does not apply to
any rights or claims that may arise under ADEA after the Effective Date of this
Agreement.  Employee acknowledges that the consideration given for this waiver
and release Agreement is in addition to anything of value to which Employee was
already entitled.  Employee further acknowledges that he has been advised by
this writing that  

(a)     he should consult with an attorney prior
to executing this Agreement;

(b)     he has up to twenty-one (21) days
within which to consider this Agreement;

(c)     he has seven (7) days following his
execution of this Agreement to revoke this Agreement;

(d)     this Agreement will not be effective
until the revocation period has expired; and,

(e)     nothing in this Agreement prevents
or precludes Employee from challenging or seeking a determination in good faith
of the validity of this waiver under the ADEA, nor does it impose any condition
precedent, penalties or costs for doing so, unless specifically authorized by
federal law.

-4-

Employee
acknowledges that Employee was given twenty‐one (21) days to consider
this Agreement.  Once this agreement is executed, Employee may rescind this
Separation Agreement within seven calendar days to reinstate federal claims.  
To be effective, any rescission within the relevant time periods must be
writing and delivered to Mentor, in care of the Board of Directors,
Compensation Committee, PERSONAL AND CONFIDENTIAL, Mentor Corporation, 201 Mentor Drive, Santa Barbara, CA, 93111.  If sent by mail, the rescission must be (1)
postmarked within the 7-day period, (2) properly addressed, and (3) sent by
certified mail, return receipt requested.

8.          No Pending or
Future Lawsuits. 
Employee represents that he has no disputes, claims, complaints, grievances,
charges, petitions, demands, lawsuits, or actions pending in his name, or on
behalf of any other person or entity, against the Company or any other person
or entity referred to herein.  Employee also represents that he does not intend
to bring any claims on his own behalf or on behalf of any other person or
entity against the Company or any other person or entity referred to herein.

9.          Non-Disparagement.  Each party agrees to refrain from
any defamation, libel or slander of the of the other party or tortious
interference with the contracts and relationships of such other party. 
Employee agrees he will not act in any manner that might damage the business of
the Company.  Employee agrees that he will not counsel or assist any attorneys
or their clients in the presentation or prosecution of any disputes,
differences, grievances, claims, charges, or complaints by any third party
against the Company and/or any officer, director, employee, agent,
representative, shareholder or attorney of the Company, unless under a subpoena
or other court order to do so.  Employee further agrees both to immediately
notify the Company upon receipt of any court order, subpoena, or any legal
discovery device that seeks or might require the disclosure or production of
the existence or terms of this Agreement, and to furnish, within three (3)
business days of its receipt, a copy of such subpoena or legal discovery device
to the Company.  All inquiries by potential future employers of Employee will
be directed to the Human Resources Department, Mentor Corporation, 201 Mentor Drive, Santa Barbara, CA  03111.  Upon inquiry, the Company's Human Resources
Department will only be obligated, if asked, to state the following: 
Employee's last position, dates of employment and verify base salary.

10.         Non-Solicitation.  Employee agrees that for a period
of twelve (12) months immediately following the Effective Date of this
Agreement, Employee will not either directly or indirectly solicit, induce,
recruit or encourage any of the Company's employees to leave their employment,
or take away such employees, or attempt to solicit, induce, recruit, encourage,
take away or hire employees of the Company, either for himself or any other
person or entity.

11.        No Admission.  No action taken by the Parties
hereto, or either of them, either previously or in connection with this
Agreement will be deemed or construed to be: (a) an admission of the truth or
falsity of any claims heretofore made or (b) an acknowledgment or admission by
either party of any fault or liability whatsoever to the other party or to any
third party.

12.         No Knowledge
of Wrongdoing. 
Employee represents that he has no knowledge of any wrongdoing involving
improper or false claims against a federal or state governmental agency, or any
other wrongdoing that involves Employee or other present or former Company
employees.

13.          Costs.  The Parties will each bear their
own costs, expert fees, attorneys' fees and other fees incurred in connection
with this Agreement.

14.          Indemnification.  To the fullest extent permitted
by law [and the bylaws of the Articles of Incorporation of the Company], the
Parties agree to indemnify and hold harmless each other from and against any
and all loss, costs, damages or expenses, including, without limitation,
attorneys' fees or expenses incurred by the Parties arising out of the breach
of this Agreement by the Parties, or from any false representation made herein
by the Parties, or from any action or proceeding which may be commenced,
prosecuted or threatened by the Parties or for the Parties' benefit, upon
either Parties' initiative, or with the Parties' aid or approval, contrary to
the provisions of this Agreement.  The Parties further agree that in any such
action or proceeding, this Agreement may be pled by the Parties as a complete
defense, or may be asserted by way of counterclaim or cross-claim.

-5-

15.         Arbitration.  The Parties agree that any and
all disputes arising out of, or relating to, the terms of this Agreement, their
interpretation, and any of the matters herein released, will be subject to
binding arbitration in Santa Barbara County before the American
Arbitration Association under its National Rules for the Resolution of
Employment Disputes.  The Parties agree that the prevailing party in any
arbitration will be entitled to injunctive relief in any court of competent
jurisdiction to enforce the arbitration award.  The Parties agree that the
prevailing party in any arbitration will be awarded its reasonable attorneys'
fees and costs.

The
Parties hereby agree to waive their right to have any dispute between them
resolved in a court of law by a judge or jury.  This section will not prevent
either party from seeking injunctive relief (or any other provisional remedy)
from any court having jurisdiction over the Parties and the subject matter of
their dispute relating to Employee's obligations under this Agreement and the
agreements incorporated herein by reference.

16.         Authority.  The Company represents and
warrants that the undersigned has the authority to act on behalf of the Company
and to bind the Company and all who may claim through it to the terms and
conditions of this Agreement.  Employee represents and warrants that he has the
capacity to act on his own behalf and on behalf of all who might claim through
him to bind them to the terms and conditions of this Agreement.  Each party
warrants and represents that there are no liens or claims of lien or
assignments in law or equity or otherwise of or against any of the claims or
causes of action released herein.

17.         No Representations.  Each party represents that it has
had the opportunity to consult with an attorney, and has carefully read and
understands the scope and effect of the provisions of this Agreement.  Neither
party has relied upon any representations or statements made by the other party
hereto which are not specifically set forth in this Agreement.

18.         Severability.  In the event that any provision
hereof becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, then (a) the provision will be amended
automatically to the minimum extent necessary to cure the illegality or
invalidity and permit enforcement and (b) the remainder of this Agreement will
continue in full force and effect so long as the remaining provisions remain
intelligible and continue to reflect the original intent of the Parties.

19.         Entire Agreement.  This Agreement represents the entire agreement and
understanding between the Company and Employee concerning the subject matter of
this Agreement and Employee's relationship with the Company, and supersedes and
replaces any and all prior agreements and understandings between the Parties
concerning the subject matter of this Agreement and Employee's relationship
with the Company, with the exception of the Confidentiality Agreement and the
Stock Option Agreements.

20.         No Waiver.  The failure of any party to
insist upon the performance of any of the terms and conditions in this
Agreement, or the failure to prosecute any breach of any of the terms and
conditions of this Agreement, will not be construed thereafter as a waiver of
any such terms or conditions.  This entire Agreement will remain in full force
and effect as if no such forbearance or failure of performance had occurred.

21.        No Oral
Modification.  Any
modification or amendment of this Agreement, or additional obligation assumed
by either party in connection with this Agreement, will be effective only if
placed in writing and signed by both Parties or by authorized representatives
of each party.

-6-

22.         Governing Law.  This Agreement will be deemed to
have been executed and delivered within the State of California, and it will be
construed, interpreted, governed, and enforced in accordance with the laws of
the State of California, without regard to conflict of law principles.  To the
extent that either party seeks injunctive relief in any court having
jurisdiction for any claim relating to the alleged misuse or misappropriation
of trade secrets or confidential or proprietary information, each party hereby
consents to personal and exclusive jurisdiction and venue in the state and
federal courts of the State of California.

23.         Attorneys'
Fees.  In the event
that either Party brings an action to enforce or effect its rights under this
Agreement, the prevailing party will be entitled to recover its costs and
expenses, including the costs of mediation, arbitration, litigation, court
fees, plus reasonable attorneys' fees, incurred in connection with such an
action.

24.          Effective
Date.  This
Agreement is effective after it has been signed by both parties and after seven
(7) days have passed since Employee has signed the Agreement (the "Effective
Date"), unless revoked by Employee within seven (7) days after the date the
Agreement was signed by Employee.

25.          Counterparts.  This Agreement may be executed in
counterparts, and each counterpart will have the same force and effect as an
original and will constitute an effective, binding agreement on the part of
each of the undersigned.

26.          Voluntary
Execution of Agreement.  This Agreement is executed voluntarily and without any duress or
undue influence on the part or behalf of the Parties hereto, with the full
intent of releasing all claims.  The Parties acknowledge that:

   (a)     They have read this Agreement;

   (b)     They have been represented in the
preparation, negotiation, and execution of this Agreement by legal counsel of
their own choice or that they have voluntarily declined to seek such counsel;

   (c)     They understand the terms and
consequences of this Agreement and of the releases it contains; and

   (d)     They are fully aware of the legal
and binding effect of this Agreement.

IN
WITNESS WHEREOF, the Parties have executed this Agreement on the respective
dates set forth below.

 

                                                                        MENTOR
CORPORATION

Dated: 
 February 17, 2005                                  By /s/ Jeffrey W. Ubben

                                                                              Jeffrey
W. Ubben

                                                                              Compensation
Committee Chair

                                                                        ADEL
MICHAEL, an individual

Dated:  February 17, 2005                                  /s/
Adel Michael

                                                                        Adel
Michael 

 

 

 

 -7-

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