Document:

Exhibit 10.2

Exhibit 10.2

This stipulation and agreement (this “Agreement”) memorializes the parties’ agreement (the
“RVI/DSW Settlement”) with respect to certain terms relating to a comprehensive settlement
including, without limitation, (i) a compromise and settlement of all rights, claims, defenses and
counterclaims involving Retail Ventures, Inc. and its officers, directors and subsidiaries other
than DSW (as hereinafter defined) (collectively, “RVI”) and (ii) a compromise and settlement of all
rights, claims, defenses and counterclaims involving DSW, Inc. and its officers, directors and
subsidiaries (collectively, “DSW”).

Specifically, FB Liquidating Estate, Inc., formerly known as Filene’s Basement, Inc.
(“Filene’s”), FB Services LLC and FB Leasing Services LLC (collectively, the “Debtors”), the
Official Committee of Unsecured Creditors (the “Committee”), RVI and DSW hereby stipulate and agree
as follows (unless otherwise expressly provided, such stipulation and agreement shall become
effective upon the date of entry of a final and non-appealable order of the U.S. Bankruptcy Court
for the District of Delaware approving the RVI/DSW Settlement) (the “Effective Date”):

1. Release and Expungement of RVI Note Claims: On the Effective Date, RVI’s claims
against the Debtors, including any and all principal and accrued interest, in respect of (i) the
$27,599,000 Amended and Restated Promissory Note, dated as of January 17, 2008, made by Filene’s
Basement, Inc. in favor of RVI, and (ii) the $25,000,000 Subordinated Promissory Note, dated as of
January 3, 2008, made by Filene’s Basement, Inc. in favor of RVI, shall be deemed withdrawn,
released and expunged with prejudice from the Debtors’ claims register.

2. Assumption of Pension Plan; Indemnification: On the Effective Date, Filenes’s, as
the sole sponsor of the Filene’s defined benefit pension plan (the “Pension Plan”), hereby agrees
to transfer to RVI all of its rights and obligations with respect to (i) the Pension Plan, (ii) the
Pension Plan’s related trust agreement, (iii) the assets held pursuant to such trust agreement and
(iv) any and all other related agreements, and RVI hereby agrees to accept such transfers and
assume all of Filene’s rights and obligations with respect to (i) the Pension Plan, (ii) the
Pension Plan’s related trust agreement, (iii) the assets held pursuant to such trust agreement and
(iv) any and all other related agreements (the “Pension Rights and Obligations”) and RVI agrees to
assume the Pension Rights and Obligations, which transfer and assumption shall be effective as of
the Effective Date. RVI shall indemnify Filene’s against any third party claim asserted by any
person or entity arising out of, or relating in any way to, the Pension Plan; provided,
however, that RVI shall not indemnify Filene’s for any such claim to the extent
attributable to any act or omission between April 21, 2009 and the Effective Date. As used in this
Agreement, unless otherwise expressly stated, the term “person” means any natural person,
corporation, partnership, joint venture, association, trust, unincorporated organization, limited
liability company or governmental or other entity.

 

 

 

3. [INTENTIONALLY OMITTED]

4. Allowed General Unsecured Claims of RVI:

(a) RVI shall have three allowed general unsecured claims against the Debtors (collectively,
the “RVI Claims”) for amounts owed by the Debtors to RVI or paid by RVI on account of the Debtors’
business, as follows:

(i) a claim in the amount of $6.36 million representing amounts actually paid (whether prior
to, on or after the date of this Agreement) on account of guarantees provided by RVI to factors of
the Debtors and identified on Exhibit A to this Agreement;

(ii) a claim in the amount of $3.0 million representing amounts owed by the Debtors to RVI for
inventory purchased for or provided to the Debtors prior to April 21, 2009; and

(iii) a claim in the amount of $2.3 million representing a negotiated settlement of: (w)
amounts actually paid (whether prior to, on or after the date of this Agreement) on account of
guarantees provided by RVI to landlords of the Debtors; (x) amounts owed by the Debtors to RVI for
shared services rendered to the Debtors prior to April 21, 2009; (y) amounts paid or in the future
required to be paid by RVI (whether prior to, on or after the date of this Agreement) to the
plaintiffs in connection with the trademark action Fendi Adele S.R.L., Fendi S.R.L. and Fendi
North America, Inc. v. Filene’s Basement, Inc. and Retail Ventures, Inc., Case No. 06 CV 0244
(S.D.N.Y.); and (z) any additional amounts that may be owed by the Debtors to RVI for any reason
whatsoever.

(b) The RVI Claims will receive the same treatment under the Plan (as defined below) as claims
held by other general unsecured creditors; provided, however, that the RVI Claims
shall be deemed allowed claims as of the Effective Date and shall not be objected to by any party
to this Agreement for any reason, except that any claims filed by RVI in excess of the RVI Claims
shall be deemed reduced to the amounts provided for herein without any further order of court.
Distributions on account of the RVI Claims shall be made to RVI or its designee.

5. Allowed General Unsecured Claims of DSW: DSW shall have an allowed general
unsecured claim (the “DSW Claim”) against the Debtors in the amount of $446,667. The DSW Claim
will receive the same treatment under the Plan as claims held by other general unsecured creditors;
provided, however, that the DSW Claim shall be deemed an allowed claim as of the
Effective Date and shall not be objected to by any party to this Agreement for any reason, except
that any claim filed by DSW in excess of the DSW Claim shall be deemed reduced to the amount
provided for herein without any further order of court. Distributions on account of the DSW Claim
shall be made to DSW or its designee.

 

2

 

6. Transition Services: The Debtors shall (i) promptly execute an Assumption and
Modification Agreement substantially in the form attached hereto as Exhibit B to assume and
modify the Transition Services Agreement, dated as of April 21, 2009 (the “Transition Services
Agreement”), by and between DSW and Filene’s Basement, Inc., and (ii) promptly pay all cure costs
(which are agreed by the parties to equal $53,333 in the aggregate as of the date of this
Agreement) relating to the Transition Services Agreement.

7. Visa Check/MasterMoney Litigation Proceeds: Attached hereto as Exhibit C
is a form of letter from RVI directing that any future proceeds or distributions due and owing to
Filene’s in respect of the Visa Check/MasterMoney Antitrust Litigation be remitted to Filene’s.
RVI agrees that it will promptly remit to Filene’s any sums due to Filene’s in respect of such
litigation that may be inadvertently paid to RVI, and Filene’s agrees that it will promptly remit
to RVI any sums due to RVI in respect of such litigation that may be inadvertently paid to
Filene’s.

8. Workers’ Compensation Matters: The Debtors and the Committee agree that if they
seek to estimate any claim of any person with respect to workers’ compensation liability, if such
person was or is the beneficiary of a letter of credit or otherwise holds any collateral at the
time such claim is estimated and such person’s claim is estimated at an amount that is less than
the amount of such letter of credit or collateral, then the Debtors and the Committee may seek to
recover from such person an amount equal to but no greater than the difference between such amounts
so that such person will at all times remain fully secured. The Debtors and the Committee agree
that in estimating any claim pursuant to this paragraph 8, such estimate shall be determined in
good faith so as to reasonably estimate the ultimate total liability associated with all pending
claims and claims incurred but not reported, based on information prepared in accordance with
generally accepted actuarial methods and assumptions.

9. Mutual Releases: In consideration of the covenants contained in this Agreement,
including, without limitation, RVI’s agreements with respect to the Pension Plan pursuant to
paragraph 2 of this Agreement, and other good and valuable consideration (receipt and sufficiency
of which is hereby acknowledged) on the Effective Date:

(i) the Debtors, their estates, the Committee, and any party that may acquire standing to
prosecute estate claims on their behalf (the “Debtor Releasors”) shall be deemed to forever release
RVI and DSW and their officers, directors, agents, attorneys and employees and the Buxbaum
Releasees (as hereinafter defined) (collectively, the “RVI/DSW Releasees”) from any and all claims
and causes of action of any nature whatsoever, including, without limitation, any and all claims
pursuant to Chapter 5 of the Bankruptcy Code, that the Debtor Releasors may have against the
RVI/DSW Releasees;

(ii) the RVI/DSW Releasees shall be deemed to forever release the Debtor Releasors from any
and all claims and causes of action that the RVI/DSW Releasees may have against the Debtor
Releasors, except with respect to those claims allowed herein; and

 

3

 

(iii) to the extent approved by the Bankruptcy Court in the context of a Chapter 11 plan of
liquidation or reorganization to be proposed in the Debtors’ Chapter 11 cases, to the extent a
creditor votes in favor of any plan of liquidation or reorganization proposed by the Debtors and/or
the Committee (the “Plan”), or to the fullest extent permitted by law, such creditor shall be
deemed to forever release the RVI/DSW Releasees from any and all claims and causes of action that
such creditor may have against the RVI/DSW Releasees related to the prepetition and postpetition
conduct of the Debtors’ business and the Debtors’ Chapter 11 cases;

provided, however, that the foregoing releases shall not limit the rights of any
party to enforce the terms of this Agreement. Approval of the release provided in paragraph 9(iii)
of this Agreement shall not serve as a condition precedent to the effectiveness of the RVI/DSW
Settlement, provided that the Debtors and the Committee shall cooperate in good faith and use their
best efforts to obtain such approval.

The releases provided under this paragraph 9 shall apply to all rights arising from or
pursuant to Chapter 5 of the Bankruptcy Code; for the avoidance of doubt, claims against RVI and/or
DSW, including under Chapter 5 of the Bankruptcy Code, shall not be used to offset RVI Claims
and/or DSW Claims. As used in this Agreement, the term “Buxbaum Releasees” refers to FB II
Acquisition Corp., its subsidiaries and other affiliates (excluding the Debtors and any of their
subsidiaries which may from time to time exist) and their respective stockholders, directors,
managers, officers, employees, agents, attorneys and representatives (excluding such persons of the
Debtors and any of their subsidiaries which may from time to time exist).

10. RVI/DSW Exculpation: To the extent approved by the Bankruptcy Court in the
context of a Plan, the RVI/DSW Releasees and their respective attorneys shall be afforded the
benefit of any and all exculpation and limitation of liability provisions afforded under the Plan
to the Debtors and the Committee. Approval of the exculpation and limitation of liability provided
in this paragraph 10 shall not serve as a condition precedent to the effectiveness of the RVI/DSW
Settlement, provided that the Debtors and the Committee shall cooperate in good faith and use their
best efforts to obtain such approval.

11. Plan Support by RVI / DSW: Subject to paragraph 12, and except as otherwise
agreed with the Debtors: each of RVI and DSW agrees to support the Plan; not to file any objection
to confirmation of the Plan; and not to support any other party in connection with any efforts to
defeat the Plan.

12. Settlement Incorporation into Plan: The parties agree that neither the Debtors
nor the Committee shall propose or support a plan of reorganization or liquidation that contains
any terms inconsistent with the terms of the RVI/DSW Settlement or materially adverse to RVI or DSW
or that otherwise fails to incorporate and/or ratify the terms of the RVI/DSW Settlement.

 

4

 

13. Entire Agreement: This Agreement constitutes the entire agreement and supersedes
all prior agreements and understandings, both written and oral, among the parties with respect to
the subject matter hereof. This Agreement is not intended to confer, and shall not confer, upon
any person other than the parties hereto any remedies, claims of liability or reimbursement, causes
of action or any other rights whatsoever, except for the provisions of paragraph 9, which are
intended to be for the benefit of, and shall be enforceable by, each RVI/DSW Releasee. This
Agreement shall be binding upon and enforceable against any successors or assigns of any of the
parties, including, without limitation, any trustee for any of the Debtors under Chapter 7 or
Chapter 11 of the Bankruptcy Code.

14. Bankruptcy Court Approval; Comprehensive and Integrated Settlement: This
Agreement remains subject to approval of the Bankruptcy Court of the District of Delaware presiding
over the Chapter 11 cases of the Debtors. This Agreement shall terminate and be of no further
force or effect in the event that the RVI/DSW Settlement is not approved in all respects by the
United States Bankruptcy Court for the District of Delaware. The RVI/DSW Settlement is intended to
be a comprehensive and integrated settlement.

15. Governing Law; Submission to Jurisdiction: This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware without giving effect to the
principles of conflicts of law thereof. Each of the parties hereto (a) consents to submit itself
to the personal jurisdiction of the Bankruptcy Court of the District of Delaware in connection with
any dispute arising out of this Agreement, (b) agrees that it shall not attempt to deny or defeat
such personal jurisdiction by motion or other request for leave from any such court and (c) agrees
that it shall not bring any such action relating to this Agreement in any court other than the
Bankruptcy Court of the District of Delaware.

16. Descriptive Headings: The paragraph headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or interpretation of this
Agreement.

[Signature Page to Follow]

 

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	RVI	 	 	 	 
	 
	 	 	 	 	 	 
	Retail Ventures, Inc.	 	 
	(on behalf of itself and its subsidiaries	 	 
	other than DSW Inc. and its subsidiaries)	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ James A. McGrady
	 	 	 	 	 
	 

	 	Name:
	 	James A. McGrady	 	 
	 

	 	Title:
	 	Chief Executive Officer, Chief Financial Officer,	 	 
	 

	 	 	 	President and Treasurer	 	 
	 
	 	 	 	 	 	 
	September 25, 2009	 	 
	 
	 	 	 	 	 	 
	DSW	 	 	 	 
	 
	 	 	 	 	 	 
	DSW Inc.
	 	 
	(on behalf of itself and its subsidiaries)	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Douglas J. Probst
	 	 	 	 	 
	 

	 	Name:
	 	Douglas J. Probst	 	 
	 

	 	Title:
	 	Executive Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	September 25, 2009	 	 

 

6

 

	 	 	 	 	 	 	 	 	 	 	 
	DEBTORS:	 	OFFICIAL COMMITTEE OF
UNSECURED CREDITORS:
	 
	 
	FB Liquidating Estate, Inc.	 	 	 	 	 	 
	(formerly Filene’s Basement, Inc.)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Alan Cohen	 	By:	 	/s/ Lawrence Gottlieb
	 	 	 	 	 	 	 
	 	 	Name:
	 	Alan Cohen
	 	 	 	Name:	 	Lawrence Gottlieb
	 

	 	Title:
	 	Chief Restructuring Officer
	 	 	 	Title:
	 	Duly Authorized Signatory
	 

	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	September 25, 2009
	 
	 	 	 	 	 	 	 	 	 	 
	FB Services LLC	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Alan Cohen	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Alan Cohen	 	 	 	 	 	 
	 

	 	Title:
	 	Chief Restructuring Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	FB Leasing Services LLC	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Alan Cohen	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Alan Cohen	 	 	 	 	 	 
	 

	 	Title:
	 	Chief Restructuring Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	September 25, 2009	 	 	 	 	 	 

 

7exv10w1

Exhibit 10.1

CHANGE IN CONTROL AGREEMENT

BETWEEN

SYNERGETICS USA, INC. AND DAVID HABLE

     This Change in Control Agreement (this “Agreement”) is made and entered into effective
as of January 29, 2009, by and between David M. Hable, an individual (the “Executive”), and
Synergetics USA, Inc., a Delaware corporation (the “Company”).

WITNESSETH

     WHEREAS the Company’s Board of Directors (the “Board”) has determined that it is
essential and in the best interests of the Company and its shareholders to retain the services of
the Executive in the event of a threat or occurrence of a Change in Control of the Company;

     WHEREAS, in order to induce the Executive to remain in the employ of the Company in the event
of a threat or the occurrence of a Change in Control, the Company desires to provide the Executive
with certain benefits in the event his or her employment is terminated as a result of, or in
connection with, a Change in Control; and

     WHEREAS the Executive is willing to accept the inducement as a benefit of his employment with
the Company subject to the terms and conditions set forth herein;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
contained herein and other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereto agree as follows:

     1. Definitions. For purposes of this Agreement, the following terms shall have the meanings
specified below.

     “Standard Compensation Due” shall mean a sum that includes all amounts, if any, earned
or accrued by Executive through the employment termination date as a result of and arising from his
employment by the Company, such amounts having been earned or accrued in accordance with standard
policies and practices of the Company, yet not paid as of the termination date, including, as
appropriate, (i) base salary, (ii) reimbursement for reasonable and necessary expenses incurred by
the Executive on behalf of the Company, (iii) vacation pay, (iv) bonuses and incentive
compensation, and (v) all other amounts to which the Executive is entitled under any compensation
or benefit plan of the Company. Under the bonus and incentive policy and practice that is current
as of the effective date hereof, which is subject to change in the sole discretion of the Company,
no bonus or incentive payment is due or payable until after being awarded by the Board, which award
is made in the sole discretion of the Board and only for eligible employees employed as of the last
day of the fiscal year. For purposes of any termination pursuant to Section 3.1.2, however,
Standard Compensation Due shall include a bonus and incentive compensation amount determined by the
Board under the Company’s policies and practices as of the fiscal year in which a Termination
Without Cause (as defined below) occurs, which bonus and incentive amount shall be pro rated to
reflect the portion of such fiscal year during which Executive was employed by the Company, such
that the award of bonus and incentive compensation shall not be conditioned upon Executive’s
employment by Company on the last day of the fiscal year.

     “Cause” shall mean as follows: A termination of employment is for “Cause” if the
Executive has been convicted of a felony or a felony prosecution has been brought against the
Executive, or if the
termination is evidenced by a resolution adopted in good faith by at
least two-thirds
(2/3) of
the Board

 

 

(excluding Executive, if a Board member) finding that the Executive (i) intentionally or
by gross negligence failed substantially to perform any of his reasonably assigned duties with the
Company (other than a failure resulting from the Executive’s incapacity due to physical or mental
illness or because of a Change in Control), including a failure to abide by his duty of loyalty or
confidentiality or a breach of his duty with regard to non-competition or non-solicitation, or (ii)
intentionally or by gross negligence engaged in illegal conduct or gross misconduct (including by
omission) that results in or is expected by the Board is likely to result in material economic harm
or other detrimental effect to the Company, directly or indirectly, including: (a) any
embezzlement or misappropriation of Company property, (b) any act of dishonesty performed within
his employment, (c) the possession, distribution or use of illegal substances, (d) any act or
omission that endangers or is likely to endanger the health or safety of another employee, or (e)
any act or omission that has or could have a material detrimental effect on the Company’s
reputation or business; provided, however, that (A) if a felony prosecution is
dismissed by the prosecution or results in a judgment of acquittal, then, a termination arising
from such prosecution shall thereafter no longer be deemed to have been for Cause and the Executive
shall be entitled to all the benefits provided by Section 3.1.2 and 3.1.3 hereof, as appropriate;
and (B) no termination shall be for Cause as set forth in clause (i) or (ii) above unless (x) the
failure of substantial performance or the illegal or gross misconduct continues or is not remedied
to the satisfaction of the Board during a period of seven (7) days after delivery to the Executive
of a written demand for substantial performance going forward and the performance of any remedial
action that shall satisfy the Board, if any, such demand specifying the manner in which the
Executive has failed substantially to perform or the illegal conduct or gross misconduct
undertaken, and (y) the Executive has been provided an opportunity to be heard by the Board (with
the assistance of the Executive’s counsel if the Executive so desires).

     “Change in Control” shall mean:

     (i) The acquisition by any Person (other than (A) any employee benefit plan established by the
Company; (B) the Company or any of its affiliates (as defined in Rule 12b-2 promulgated under the
Exchange Act); (C) an underwriter temporarily holding securities pursuant to an offering of such
securities; or (D) a corporation owned, directly or indirectly, by stockholders of the Company in
substantially the same proportions as their ownership of the Company), directly or indirectly, of
securities of the Company (not including in the securities beneficially owned by such Person any
securities acquired directly from the Company) representing an aggregate of fifty-one percent (51%)
or more of the combined voting power of the Company’s then outstanding voting securities; or

     (ii) A change in the composition of the Board, wherein during any period of up to two
consecutive years, individuals who, at the beginning of such period, constitute the Board cease for
any reason to constitute at least a majority thereof, provided that any person who becomes a
director subsequent to the beginning of such period and whose nomination for election is approved
by at least two-thirds of the directors then still in office who either were directors at the
beginning of such period or whose election or nomination for election was previously so approved
(other than a director (A) whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of the directors of the Company, as such terms
are used in Rule 14a-11 of Regulation 14A under the Exchange Act, or (B) who was designated by a
Person who has entered into an agreement with the Company to effect a transaction described in
clause (i), (iii) or (iv) hereof) shall be deemed a director as of the beginning of such period; or

     (iii) The closing of a merger or consolidation of the Company with any other corporation,
except that the following shall not be considered to have effected a Change in Control: (A) a
merger or consolidation that would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being
converted into voting
securities of the surviving entity or any parent thereof), in combination with the ownership
of any trustee

2

 

or other fiduciary holding securities under an employee benefit plan of any Company,
at least fifty-one percent (51%) of the combined voting power of the voting securities of the
Company or such surviving entity or any parent thereof outstanding immediately after such merger
or consolidation; or (B) a complete liquidation of the Company or the sale or disposition of all or
substantially all of the Company’s assets.

     “Code” shall mean the Internal Revenue Code of 1986, as amended, or any successor
statute, rule or regulation of similar effect.

     “Disability” or “Disabled” shall mean the Executive’s inability to
substantially perform Executive’s duties for the Company on a full-time basis, with or without
accommodation, for a period of six (6) months, as a result of physical or mental incapacity.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     “Involuntary Termination” shall mean the termination of Executive’s employment by the
Executive, which is reasonably and objectively due to (i) a significant reduction of the
Executive’s responsibilities, position (including title, reporting relationships or working
conditions), authority, or duties (including the assignment to the Executive of any duties
inconsistent with Executive’s responsibilities, position, or duties just prior to such assignment);
or (ii) a significant change in the terms or status of this Agreement; or (iii) a reduction (other
than a reasonably insignificant reduction) in the Executive’s base salary or non-monetary benefits;
or (iv) a change of the Executive’s principal office location of more than fifty (50) miles; or (v)
a significant increase in the Executive’s out-of-town travel requirements (collectively “Status
Changes”), provided such termination occurs within six (6) months of the Status Change to which
it is due and within one (1) year of a Change in Control.

     “Person” shall mean any individual, corporation, bank, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or other entity.

     “Start Date” shall mean January 29, 2009.

     2. Term. This Agreement shall have a rolling term of one (1) year (the
“Term”) commencing on the date hereof. That is, the Term shall, after each day, extend for
an additional day, automatically and without any action on behalf of either party. Either party
may, by written notice to the other, cause this Agreement to cease to so extend automatically. The
Term of this Agreement shall be fixed for the one (1) year following the date such notice is duly
given, and shall expire thereafter. This Agreement shall terminate thirty (30) days after the
termination of Executive’s employment, although all obligations of Company which arise prior
thereto shall continue until fulfilled.

     3. Termination of Employment.

     3.1. If, during the term of this Agreement, the Executive’s employment with the Company
is terminated within one year following a Change in Control under any of the following
circumstances, the Executive shall be entitled to the following compensation and benefits.

     3.1.1. If the Executive’s employment with the Company shall be terminated (i)
by the Company for Cause or Disability, (ii) by reason of the Executive’s death, or
(iii) by the Executive, other than as an Involuntary Termination, the Company shall
pay to the Executive all Standard Compensation Due.

     3.1.2. If the Company terminates Executive without Cause and otherwise for any
reason other than death or Disability, including, without limitation, any
Involuntary

3

 

Termination, and provided Executive enters a separation agreement within
thirty (30) days thereof in a form reasonably satisfactory to Company, including a
release of claims and an acknowledgment of certain continuing obligations such as
non-disclosure of confidential information (“Termination Without Cause”), then
Executive shall be entitled to receive in a lump sum as severance an amount equal to
the sum of the following (“Early Severance”): (i) all Standard Compensation Due;
(ii) an amount equal to one-half (1/2) times Executive’s annual base salary at the
rate in effect immediately prior to the Change in Control; and (iii) as compensation
for certain lost benefits, an amount equal to 10% of the Executive’s base salary at
the rate in effect immediately prior to the Change in Control. If such Termination
Without Cause occurs during the period that is six (6) to twelve (12) months after
Executive’s Start Date, then Executive shall be entitled to receive as a lump sum
the following: (i) the Early Severance; and (ii) an additional amount equal to the
sum of one-twelfth (1/12) times Executive’s annual base salary for each month of
employment completed between and including the months that are seven (7) through
twelve (12) months after Executive’s Start Date. If such Termination Without Cause
occurs any time subsequent to the one-year anniversary of Executive’s Start Date,
then Executive shall be entitled to receive the following as severance: (i) all
Standard Compensation Due and any amount payable as of the date of such Termination
Without Cause under the Company’s objectives-based incentive plan, the sum of which
shall be paid in a lump sum immediately upon such Termination Without Cause; and
(ii) an amount equal to one (1) times Executive’s annual base salary at the rate in
effect immediately prior to the Change in Control, to be paid in twelve (12) equal
monthly installments beginning in the month after such Termination Without Cause.

     3.1.3. In the event of a termination pursuant to Section 3.1.2, (A) all rights
of Executive pursuant to awards of shares or options granted by the Company shall
immediately vest completely and shall be released from all conditions and
restrictions, except for restrictions on transfer pursuant to the Securities Act of
1933, as amended, and (B) the Executive shall be deemed to have retired from the
Company and shall be entitled, as of the termination date or at such later time as
he may elect, to commence receiving the total combined qualified and non-qualified
retirement benefit to which he is entitled in accord with any Company plan. Subject
to applicable legal limits to the contrary, including without limitation limits
applicable to incentive stock options under the Code, in the event of termination
pursuant to Section 3.1.2, Executive shall have up to one (1) year from the date of
such termination to exercise any outstanding stock options, except as such exercise
is limited by the applicable award agreement.

     3.2. No Mitigation. The payments hereunder are not subject to reduction in the
event Executive receives other compensation for services rendered after termination, and
Executive is not required to mitigate any payment to be made hereunder.

     3.3. All benefits received pursuant to this Agreement shall be subject to withholding
of applicable income and employment taxes.

     3.3. The severance pay and benefits provided for in this Section 3.1.2 and 3.1.3 shall
be in lieu of any other severance or termination pay to which the Executive may be entitled
under any Company severance or termination plan, program, practice or arrangement, and shall
be the exclusive remedy in the event of such termination, in lieu of any other rights or
remedies to which the Executive may otherwise be entitled, whether at law or in equity.

4

 

     4. Excess Parachute Payments.

     4.1. It is the intention of the parties hereto that the severance payments and other
compensation provided for herein are reasonable compensation for Executive’s services to the
Company and shall not constitute “excess parachute payments” within the meaning of Section
280G of the Code and any regulations thereunder. In the event that the Company’s
independent accountants acting as auditors for the Company on the date of a Change in
Control determine that the payments provided for herein constitute “excess parachute
payments,” then the compensation payable hereunder shall be reduced to the point that such
compensation shall not qualify as “excess parachute payments.”

     4.2. To the extent that payments under Section 3 cause a “parachute payment,” as
defined in Section 280G(b)(2) of the Code, the Company shall indemnify Executive and hold
Executive harmless against all excise taxes, and penalties and interest owed under the Code,
provided Executive notifies Company immediately of such a determination by the IRS. To
effect this indemnification, the Company shall pay Executive an additional amount that is
sufficient to pay any excise tax imposed by Section 4999 of the Code on the payments and
benefits to which Executive is entitled without the additional amount, plus any penalties or
interest imposed by the Internal Revenue Service in regard to such amounts, plus another
additional amount sufficient to pay all the excise taxes on the additional amounts. The
determination of any additional amount that must be paid under this section at any time
shall be made in good faith by the independent auditors then employed by the Company.

     5. Funding. This Agreement shall be unfunded. Any payment made under the Agreement
shall be made from the Company’s general assets.

     6. Assignment. The parties acknowledge that this Agreement has been entered into due
to, among other things, the special skills of Executive, and agree that this Agreement may not be
assigned or transferred by Executive, in whole or in part, without the prior written consent of
Company.

     7. Notices. All notices, requests, demands, and other communications required or
permitted hereunder shall be in writing and shall be deemed to have been duly given if delivered to
the address below, or seven days after mailing if mailed, first class, certified mail postage
prepaid:

	 	 	 
	To the Company:

	 	Synergetics USA, Inc.

3845 Corporate Centre Drive 

O’Fallon, Missouri 63368

Attn: Chairman of the Board 
	 
	To Executive:

	 	David M. Hable 

3845 Corporate Centre Drive 

O’Fallon, Missouri 63368

     Any party may change the address to which notices, requests, demands, and other communications
shall be delivered or mailed by giving notice thereof to the other party in the same manner
provided herein.

     8. Provisions Severable. If any provision or covenant, or any part thereof, of this
Agreement should be held by any court to be invalid, illegal or unenforceable, either in whole or
in part, such invalidity, illegality or unenforceability shall not affect the validity, legality or
enforceability of the remaining provisions or covenants, or any part thereof, of this Agreement,
all of which shall remain in full force and effect.

5

 

     9. Entire Agreement. This Agreement forms the entire agreement between the parties
hereto with respect to the subject matter hereof, and supersedes all prior agreements, if any,
understandings and arrangement, oral or written, between the parties hereto with respect to the
subject matter hereof. In the event of any conflict between this Agreement and any other agreement
with respect to any termination of Executive’s employment with the Company, the provisions of this
Agreement shall control.

     10. Not an Employment Agreement. This Agreement is not intended to be and shall not
be construed to be an employment agreement between the Company and Executive. It is not intended
to and shall not be construed to create, modify, or otherwise affect the current or future terms of
Executive’s employment by the Company.

     11. Amendments and Modifications. This Agreement may be amended or modified only by a
writing signed by the parties hereto.

     12. Governing Law. The validity and effect of this agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Missouri.

     IN WITNESS WHEREOF, the parties have executed this Agreement in O’Fallon, Missouri, as of the
date first written above.

	 	 	 	 	 
	 	SYNERGETICS USA, INC.

 	 
	 	By:  	/s/ Robert H. Dick
 	 
	 	 	Name:  	Robert H. Dick 	 
	 	 	Title:  	Chairman of the Board of Directors 	 
	 
	 	EXECUTIVE

 	 
	 	 	/s/ David M. Hable
 	 
	 	 	Name:  	David M. Hable 	 

6

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