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[CIBC WORLD MARKETS LETTERHEAD]  

 
 

Exhibit 10.58    
  

    
September 8, 2000 

PERSONAL AND CONFIDENTIAL  

Andrew
F. Pollet

Chairman

STAAR Surgical Company

1911 Walker Avenue

Monrovia, California 91016 

Dear
Mr. Pollet: 

    This
letter will confirm the understanding and agreement (the "Agreement") among CIBC World Markets Corp. (the "Lead Placement Agent"), Adams, Harkness & HIll, Inc. (the
"Co-Placement Agent") (collectively, the "Agents") and STAAR Surgical Company (the "Company") as follows: 

	1.
	Engagement:  The Company hereby engages the Agents as its exclusive agents in the private placement of one or more
classes or series of securities of the Company to a limited number of sophisticated investors
(the "Investors"), pursuant to the following terms and conditions. Such securities (the "Securities") may take the form of common stock or other equity-linked securities. Such placement
shall be referred to as the "Transaction." 

Currently,
the Company plans to sell up to 1,500,000 shares of it's common stock. The selection of each of the Investors from a list of potential Investors and the number of shares sold to each of
such Investors shall be mutually agreed by the Company and the Agents. The number and price of the Securities the Company shall ultimately agree to sell, pursuant to the Purchase Agreements (defined
below), are entirely within its discretion. 

	2.
	The Agents' Role:  The Agents hereby accept the engagement described herein and, in that connection, agree to:

	(a)
	assist
in preparing a private placement memorandum (the "Memorandum") describing the Company and the Securities;

	(b)
	review
with the Company a list of the Investors to whom the Memorandum will be provided;

	(c)
	prepare
other communications to be used in placing the Securities, whether in the form of letter, circular, notice or otherwise, and

	(d)
	assist
and advise the Company with respect to the negotiation of the sale of the Securities to the Investors. 

	3.
	Due Diligence:  It is understood that the Agents' assistance in the Transaction will be subject to the satisfactory
completion of such investigation and inquiry into the affairs of the Company as the Agents deem appropriate under the circumstances (such investigation hereinafter to be referred to as "Due
Diligence") and the approval of each Agents' internal committees. Each Agent shall have the right, in its
sole discretion, to terminate its involvement in the Transaction if the outcome of the Due Diligence is not to its satisfaction or if approval of its internal committees is not obtained. The
termination by any one of the Agents shall not be imputed to the other Agents. If both Agents exercise their discretion to terminate their involvement in the Transaction, then this Agreement will
terminate ("Early Termination"). 

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	4.
	Term; Exclusivity:  The term of the Agreement shall extend from the date hereof until the earlier of September 8, 2001
or Early Termination, and that during the term of this Agreement: (1) the Company will not, and will not permit its representatives to, other than in coordination with the Lead Placement Agent,
contact or solicit institutions, corporations or other entities as potential purchasers of the Securities and (ii) the Company will not pursue any financing transaction which would be in lieu
of a Transaction. Futhermore, the Company agrees that during the term of the Agreement all inquiries, whether direct or indirect, from prospective Investors will be referred to the Lead Placement
Agent and will be deemed to have been contacted by the Lead Placement Agent in connection with the Transaction. The Company may reject any potential Investor if in its discretion, the Company believes
that the inclusion of such Investor in the Company would be incompatible with the best interests of the Company. The Company shall not be obligated to sell the Securities or to accept any offer
thereof, and the terms of such Securities and the final decision to issue the same shall be subject to the discretionary approval of the Company. 

Any
party may terminate its engagement at any time by giving the other parties at least thirty (30) days prior written notice of such termination, at which time the Company shall reimburse the Agents
for all reasonable expenses incurred, in accordance with Paragraph 9 hereof. The Company agrees to pay the Agents any fees specified in Paragraph 8 if the events specified therein shall
occur during the term of this Agreement or within twelve months after the termination or expiration of this Agreement. Any obligation pursuant to this Paragraph 4 shall survive the termination or
expiration of this Agreement. 

No
offers or sales of any securities of the same or similar class as the Securities will be made by the Company or any affiliate during the six-month period after the completion of the offering of the
Securities in each case except in compliance with the registration requirements of the Securities Act of 1933, as amended, or an exemption therefrom (the "Securities Act"). 

	5.
	Best Efforts:  It is understood that the Agents' involvement in the Transaction is strictly on a best efforts basis
and that the consummation of the Transaction will be subject to, among other things, market conditions.

	6.
	Information:  The Company shall furnish, or cause to be furnished, to the Agents and to the Investors all information
reasonably requested by the Agents for the purpose of rendering services hereunder or in connection with the purchase of the Securities, including the Memorandum (and together with all such other
information, the "Information"). In addition, the Company agrees to make available to the Agents upon request from time to time the officers, directors, accountants, counsel and other advisors of the
Company. The Company recognizes and confirms that the Agents (a) will use and rely on the information (including the Memorandum that will be delivered to each of the Investors) and on
information available from generally recognized public sources in performing the services contemplated by this Agreement without having independently verified the same; (b) does not assume
responsibility for the accuracy or completeness of the Memorandum or the Information and such other information; and (c) will not make an appraisal of any of the assets or liabilities of the
Company. 

The
Company represents and warrants to the he Agents that: (i) all such information, including the Memorandum, any documents attached as exhibits thereto and/or incorporated by reference
therein, and any communications prepared pursuant to paragraph 2(a) above, will be true and accurate in all material respects and does not and will not contain any untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements made in the light of the circumstances under which they were made, not misleading and (ii) any projected financial
information or other forward-looking information which the Campany provided to the 

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Agent will be made by the Company in good faith, based on management's best estimates then available and based on facts and assumptions which the Company believes to be reasonable. The Company agrees
that, upon reasonable request, it will meet with the Agents or its representatives to discuss all information relevant for disclosure in the Memorandum and will cooperate in any investigation
undertaken by the Agents thereof, including any document included or incorporated by reference therein. 

	7.
	Company's Responsibilities, Representations and Warranties:

	(a)
	The
sale of Securities to any Investor will be evidenced by a purchase agreement ("Purchase Agreement") between the Company and such Investor in a form reasonably satisfactory to
the Company and the Agents. Prior to the signing of any Purchase Agreement, officers of the Company with responsibility for financial affairs will be available to answer inquires from prospective
investors.

	(b)
	The
selling price of the Securities to be issued and sold by the Company pursuant to the Purchase Agreements will be specified in writing by the Agents on behalf of the Company to
the prospective investors prior to the execution of the Purchase Agreements, subject to the Company's approval.

	(c)
	The
Company will perform the covenants set forth in the Purchase Agreements. The Purchase Agreements will require the Company to file, as soon as practicable after it has signed and
delivered such Purchase Agreements (the "Closing") but in any event no later than two weeks following the Closing, a registration statement with the Securities and Exchange Commission (the "SEC") for
the resale from time to time of the Securities to be issued pursuant to such Purchase Agreements (the "Registration Statement"). The Company will not modify any such Purchase Agreements, nor will it
execute and deliver any additional Purchase Agreements after the time it has filed the Registration Statement.

	(d)
	The
Company (i) represents and warrants that the representations and warranties contained in the Purchase Agreements will be true and correct in all respects on the date of such
Purchase Agreements and on the Closing Date and (ii) agrees that the Agents shall be entitled to rely on such representations and warranties as if they were made directly to the Agents.

	(e)
	The
Company agrees that the Company shall have sole responsibility for ensuring that the sale of Securities contemplated by this Agreement shall be exempt from registration
requirements of the Securities Act, and will otherwise comply with the securities laws of any applicable country or other jurisdiction. The Company shall not take any action or permit to be taken any
action on its behalf that would
cause such sale of securities to fail (i) qualify for such an exemption, or (ii) otherwise comply with such securities laws. The Company hereby represents, warrants and covenants
that the Company has not, and agrees that it will not, directly or indirectly, engage in any form of general solicitation or general advertising or directed selling efforts. 

	(f)
	At
the Closing, the Company will cause its independent public accountants to address and deliver to the Company and the Agents a letter or letters (which letters are frequently
referred to as "Comfort Letters") dated as of the Closing, which letter or letters shall be in the form reasonably satisfactory to the agents.

	(g)
	At
the Closing, the Company will cause its counsel to address and deliver to the Company and the Agents (stating that each of the Investors may rely thereon as if directly addressed
to each of them) an opinion satisfactory to the Agents, dated as of the Closing, with respect to such 

3

 

matters
as the Agents and its counsel shall reasonably request, including opinions customary for transactions of the type contemplated by this Agreement, including an opinion that the offering and
sale of the Securities are not required to be registered under the Securities Act, as well as an opinion substantially in the form of Annex A hereto. In rendering such opinion, such counsel may rely
upon the representations and warranties of the purchasers contained in the Purchase Agreements and upon certificates from officers of the company as to factual matters. 

	(h)
	The
Company will cause its outside intellectual property and/or regulatory counsel to deliver one or more opinions satisfactory to the Agents, dated as of the Closing, to the Agents
regarding such matters as the Agents and its counsel shall reasonably request. Furthermore, the Company acknowledges that the Purchase Agreements will require the Company's counsel, its intellectual
property counsel and/or its regulatory counsel to deliver one or more opinions to the Investors. The Company agrees that the Agents shall be entitled to rely on any opinions delivered as the Investors
in connection with the Transaction and resale of the Securities under the Registration Statement.

	(i)
	The
Company agrees that it will not consummate the sale of the Securities unless it delivers or causes to be delivered the items described in paragraphs (f) through (h) above to
the Agents at the Closing.

	(j)
	For
a period of ninety (90) days from the effective date of the Registration Statement, the Company will not, without the prior written consent of the Lead Placement Agent, sell,
contract to sell or otherwise dispose of or issue any securities of the Company, except pursuant to previously issued options, any agreements providing for anti-dilution or other stock purchase or
share issuance rights in existence on the date hereof, any employee benefit or similar plan of the Company in existence on the date hereof, or any technology license agreement, strategic alliance or
joint venture in existence on the date hereof or which the Company may enter into hereafter. This paragraph shall not apply to the sale of the Company to any third party.

	(k)
	During
the time the Registration Statement is effective covering the resales of any Securities sold to Investors, the Company will furnish to the Agents:

	(i)
	as
soon as practicable (but in the case of the annual report of the Company to its stockholders, within 120 days after the end of each fiscal year
of the Company), one copy of: (a) its annual report to its stockholders (which annual report shall contain financial statements audited in accordance with generally accepted accounting principles in
the United States by a firm of certified public accountants of recognized standing), (b) if not included in substance in its annual report to stockholders, its annual report on Form 10-K, (c) each of
its quarterly reports to its stockholders and, if not included in substance in its quarterly report to stockholders, its quarterly report on Form 10-Q and any other document or agreement that is
incorporated by reference into the Registration Statement, and (d) the full Registration Statement (the foregoing in each case, excluding exhibits); and

	(ii)
	upon
reasonable request, all exhibits excluded by the parenthetical to the last clause of the immediately preceding paragraph and all other
information that is generally available to the public. 

	8.
	Fees.  As compensation for the services to be rendered by the Agents hereunder, the
Company will pay the Agents at the Closing, by wire transfer of immediately available funds, from the 

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proceeds
of the sale of the Securities, a transaction fee (the "Transaction Fee") equal to 7.0% of the gross proceeds raised from the sale of the Securities. 70.0% of the Transaction Fee shall be paid
to CIBC World Markets Corp. and 30.0% of the Transaction Fee shall be paid to Adams, Harkness & Hill, Inc. Further, the Company will pay the Agents the Transaction Fee if within twelve months from the
termination of this Agreement the Company reaches an agreement in principle for the sale of the Securities to any Investors which the Agents previously solicited or sought to solicit (but were not
permitted to do so due to the Company's rejection of such proposed Investors pursuant to the third sentence of Section 4 hereof) on its behalf or from which the Company has received any inquiry
pursuant to Section 4 hereof. The preceding sentence will not apply to any securities sold to Pharmacia Corporation. Upon the Company's request, at the termination or expiration of this Agreement, the
Agents will supply the Company with a list of Investors which the Agents have solicited or sought to solicit (but were not permitted to do so due to the Company's rejection of such proposed Investors
pursuant to the third sentence of Section 4 hereof) on its behalf. The Company's obligations hereunder shall survive the termination or expiration of this Agreement. 

	9.
	Expense Reimbursement:  In addition to the Transaction Fee, and regardless of whether
the sale of the Securities contemplated hereby is consummated, the Company agrees to reimburse the Agents for all of its reasonable out-of-pocket expenses in connection with the performance of its
activities under the terms of this Agreement. Reasonable out-of-pocket expenses include, but are not limited to, costs such as printing, telephone, telex, courier service, direct computer expenses,
accommodations and travel. The Company will reimburse the Agents for fees and expenses of legal counsel employed by and for the Agents, if any, in connection with this Agreement and the engagement
hereunder. All such fees, expenses and costs shall be reimbursed promptly upon submission by the Lead Placement Agent of the expenses to be reimbursed to each of the Agents. The parties' obligations
under this paragraph shall survive the termination or expiration of this Agreement. The Agents estimate that the expenses will be approximately $50,000.

	10.
	Indemnity.  In addition to the fees and reimbursement of expenses provided for above,
the parties agree to the indemnification provisions set forth as Annex B hereto, which are incorporated herein by reference as if fully set forth below. The parties' obligations under this paragraph
shall survive the termination or expiration of this Agreement.

	11.
	GOVERNING LAWS:  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.  

THE COMPANY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK, IN NEW YORK, NEW YORK, FOR THE PURPOSE OF ANY SUIT, ACTION OR OTHER PROCEEDING
ARISING OUT OF THIS LETTER AGREEMENT OR OUR ENGAGEMENT HEREUNDER. EACH OF THE COMPANY AND CIBC WORLD MARKETS HEREBY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BROUGHT BY
OR ON BEHALF OF EITHER PARTY BASED UPON, ARISING OUT OF OR IN CONNECTION WITH THIS LETTER AGREEMENT, OUR ENGAGEMENT HEREUNDER OR THE TRANSACTIONS CONTEMPLATED HEREBY.  

	12.
	 Confidentiality.  Except as required by law, this Agreement and the services and advice to be provided by the
Agents hereunder, shall not be disclosed to third parties without the Agents' prior written permission. Notwithstanding, the Agents shall be permitted to advertise the services it provided in
connection with the private placement subsequent to the consummation of the private placement. Such expense shall not be reimbursable under paragraph 9 hereof. 

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	13.
	No Brokers:  The company represents and warrants to the Agents that there are no
brokers, representatives or other persons which have an interest in compensation due to the Agents from any transaction contemplated herein or which would otherwise be due any fee, commission or
remuneration upon consummation of any Transaction. The Company hereby represents and warrants to the Agents that during the term of this engagement, the Company will not have, prior to the Closing,
any discussions with any person other than representatives of the Agents for the purpose of engaging, or considering the engagement of, such person as a finder or broker in connection with the sale by
the Company of the Securities covered by this letter to prospects in the United States of America or overseas.

	14.
	Authorization:  The Company and the Agents represent and warrant that each has all
requisite power and authority to enter into and carry out the terms and provisions of this Agreement and the execution, delivery and performance of this Agreement does not breach or conflict with any
agreement, document or instrument to which it is a party or bound.

	15.
	Miscellaneous:  This Agreement constitutes the entire understanding and agreement
between the Company and the Agents with respect to the subject matter hereof and supersedes all prior understanding or agreements between the parties with respect thereto, whether oral or written,
express or implied. Any amendments or modifications must be executed in writing by both parties. This Agreement and all rights, liabilities and obligations hereunder shall be binding upon and inure to
the benefit of each party's successors but may not be assigned without the prior written approval of the other party. This Agreement may be executed in any number of counterparts, each of which shall
be deemed to be an original, but such counterparts shall, together, constitute only one instrument. The descriptive headings of the Paragraphs of this Agreement are inserted for convenience only, do
not constitute a part of this Agreement and shall not affect in any way the meaning or interpretation of this Agreement. 

    The
Agents are delighted to accept this engagement and look forward to working with you. Please confirm that the foregoing correctly sets forth our agreement by signing the enclosed
duplicate of this 

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letter in the space provided and returning it, whereupon this letter shall constitute a binding agreement as of the date first above written. 

	 	 	Very truly yours,
	

 	
 	
CIBC WORLD MARKETS CORP.
	

 	
 	

By:	
 	

/s/ MICHAEL FEKETE   
 Michael Fekete
 Managing Director
	

 	
 	
ADAMS, HARKNESS & HILL, INC.
	

 	
 	

By:	
 	

/s/ GREGORY BROWN, M.D.   
 Gregory Brown, M.D.
 Managing Director

	ACCEPTED AND AGREED TO

AS OF THE ABOVE DATE:	 	 
	

STAAR Surgical Company	
 	

 
	

By:	
 	

/s/ ANDREW F. POLLET   
 Andrew F. Pollet
 Chairman	
 	

 

8

 
 
 

ANNEX A    
  

    The opinion of counsel to the Company shall be to the effect that nothing has come to their attention that caused them to believe that either the Registration
Statement of the Company (the "Registration Statement") or the Private Placement Memorandum (the "Private Placement Memorandum"), each as of its date (or if any amendment thereof or supplement thereto
has been made on or prior to the date of such opinion, then as of the date of such amendment or supplement) and as of the Closing, contained or contains an untrue statement of a material fact or
omitted or omits to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading (it being understood no opinion is expressed with respect to
the financial statements and related notes, financial statement schedules and other financial information included or incorporated by reference therein or omitted therefrom.) 

9

 
 
 

ANNEX B: INDEMNIFICATION    
  

    The Company agrees to indemnify and hold harmless the Agents and their affiliates and their respective directors, officers, employees, agents and controlling
persons (each such person, including the Agents, an "Indemnified Party") from and against any losses, claims, damages and liabilities, joint or several (collectively, the "Damages"), to which such
Indemnified Party may become subject in connection with or otherwise relating to or arising from (i) any transaction contemplated by this Agreement or the engagement of or performance of
services by an Indemnified Party thereunder or (ii) an untrue statement or an alleged untrue statement of a material fact or the omission or alleged omission to state a material fact necessary
in order to make a statement not misleading in light of the circumstances under which its was made, and will reimburse each Indemnified Party for all fees and expenses (including the fees and expenses
of counsel) (collectively, "Expenses") as incurred in connection with investigating, preparing, pursuing or defending any threatened or pending claim, action, proceeding or investigation
(collectively, the "Proceedings") arising therefrom, whether or not such Indemnified Party is a formal party to such Proceeding; provided, that the
Company will not be liable to any such Indemnified Party to the extent that any Damages are found in a final non-appealable judgment by a court of competent jurisdiction to have resulted from the
gross negligence or willful misconduct of the Indemnified Party seeking indemnification hereunder. The Company also
agrees that no Indemnified Party will have any liability (whether direct or indirect, in contract, tort or otherwise) to the Company or any person asserting claims on behalf of the Company arising out
of or in connection with any transactions contemplated by this Agreement or the engagement of or performance of services by any Indemnified Party thereunder except to the extent that any Damages are
found in a final non-appealable judgment by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Indemnified Party. 

    If
for any reason other than in accordance with this Agreement, the foregoing indemnity is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless,
then the Company will contribute to the amount paid or payable by an Indemnified Party as a result of such Damages (including all Expenses incurred) in such proportion as is appropriate to reflect the
relative benefits to the Company and/or its stockholders on the one hand, and the Agents on the other hand, in connection with the matters covered by this Agreement or, if the foregoing allocation is
not permitted by applicable law, not only such relative benefits but also the relative faults of such parties as well as any relevant equitable considerations. The Company agrees that for purposes of
this paragraph the relative benefits to the Company and/or its stockholders and the Agents in connection with the matters covered by this Agreement will be deemed to be in the same proportion that the
total value paid or received or to be paid or received by the Company and/or its stockholders in connection with the transactions contemplated by this Agreement, whether or not consummated, bears to
the fees paid to the Agents under this Agreement; provided, that in no event will the total contribution of all Indemnified Parties to all such Damages
exceed the amount of fees actually received and retained by the Agents hereunder (excluding any amounts received by the Agents as reimbursement of expenses). 

    The
Company agrees not to enter into any waiver, release or settlement of any Proceeding (whether or not the Agent or any other Indemnified Party is a formal party to such Proceeding)
in respect of which indemnification may be sought hereunder without the prior written consent of the Agents (which consent will not be unreasonably withheld), unless such waiver, release or settlement
includes an unconditional release of Agents and each Indemnified Party from all liability arising out of such Proceeding. 

    The
indemnity, reimbursement and contribution obligations of the Company hereunder will be in addition to any liability which the Company may otherwise have to any Indemnified Party
and will be 

10

 

binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company or an Indemnified Party. The provisions of this Annex will survive the modification,
termination or expiration of this Agreement. 

11

 

    The Agents are delighted to accept this engagement and look forward to working with you. Please confirm that the foregoing correctly sets forth our agreement by signing the enclosed
duplicate of this letter in the space provided and returning it, whereupon this letter shall constitute a binding agreement as of the date first above written. 

	

 	
 	

 	
 	

Very truly yours,
	

 	
 	

 	
 	

CIBC World Markets Corp.
	

 	
 	

 	
 	

By:	
 	

/s/ MICHAEL FEKETE   
 Michael Fekete
 Managing Director
	

 	
 	

 	
 	

Adams, Harkness & Hill, Inc.
	

 	
 	

 	
 	

By:	
 	

/s/ GREGORY BROWN, M.D.   
 Gregory Brown, M.D.
 Managing Director
	

ACCEPTED AND AGREED TO

AS OF THE ABOVE DATE:	
 	

 	
 	

 
	

STAAR Surgical Company	
 	

 	
 	

 
	

By:	
 	

/s/ ANDREW F. POLLET   
 Andrew F. Pollet
 Chairman
 	
 	

 	
 	

 

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Exhibit 10.58

ANNEX A

ANNEX B: INDEMNIFICATIONPrepared by MERRILL CORPORATION www.edgaradvantage.com

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CONSULTING AGREEMENT    
  

    This Consulting Agreement ("Agreement") is made on the 19th day of September 2000 by and among Donald R. Sanders, Ltd., an Illinois corporation
doing business as Center for Clinical Research, whose address is 180 West Park Avenue, Suite 150, Elmhurst, Illinois 60126 (the "Consultant"), and STAAR Surgical Company, whose address is 1911 Walker
Avenue, Monrovia, California 91016 (the "Company"), in reference to the following: 

 
 

RECITALS    
  

    A.  The Company is a developer, manufacturer and global distributor of products used by ophthalmologists and other eye
care professionals to improve or correct vision in patients suffering from refractive conditions, cataracts and glaucoma. 

    B.  The Consultant specializes in research relating to the human eye. 

    C.  The Company wishes to retain the Consultant, and the Consultant wishes to be retained by the Company, to assist the
Company in its continued efforts to enhance its current products and to develop new products. 

    NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the
Consultant agree as follows: 

 
 

AGREEMENT    
  

    1.  Term.  The Company retains the Consultant and the Consultant accepts this appointment with the
Company for a period of fifteen (15) months, beginning on September 1, 2000 and ending on December 31, 2001 (the "Term"). This Agreement will continue on a month to month basis
after December 31, 2001 until terminated by written notice given by either party at least thirty (30) days prior to the end of any calendar month. This Agreement supersedes and replaces
any and all other consulting agreements or arrangements entered into by and between the Company and the Consultant and, upon execution of this Agreement, any such consulting agreements or arrangements
shall have no further force or effect. 

    2.  Duties of Consultant.  The Consultant agrees to perform the services described in Exhibit "A",
attached to this Agreement and made a part of it (the "Services"). The Consultant will determine the method, details and means of performing the Services, provided that the Consultant agrees that
Donald R. Sanders, M.D. will supervise the Services. 

    3.  Compensation for Other Staff and Experts.  The Company agrees that if the Consultant's employee, Kim
Doney, performs any of the Services, the Company will compensate the Consultant at the rate of One Hundred Fifty Dollars ($150) per hour for the time expended by her, in addition to the compensation
provided for in paragraph 4 below. The Consultant will provide a detailed description of the work performed by Ms. Doney, including the time spent on each project, with its invoice. The
number of hours during any calendar month that Ms. Doney provides services to the Company shall not exceed ten (10) without the prior written consent of the Company. The Consultant may,
with the prior written consent of the Company, engage unaffliliated third parties to assist the Consultant in connection with the Services where the expertise provided by such third parties is not
otherwise available to the Consultant. The Company will be responsible for compensating any such third parties directly, so long as the Company approved the engagement in writing. 

    4.  Compensation.  The Company shall pay to the Consultant, as compensation for the Services performed
pursuant to this Agreement, the sum of Thirty Thousand Dollars ($30,000) per month. If this Agreement is terminated by the Company during the Term due to a Change of Control (as defined in
paragraph 8.1), the Consultant shall receive the balance of the Consultant's unpaid compensation as 

1

 

set forth in this paragraph 4, through the expiration date of the Term, in lieu of any remedy or damages to which the Consultant may be entitled, at law or in equity. 

    5.  Bonus.  

    5.1  Option Grant.  On July 7, 2000 the Company authorized, subject to the conditions set forth
herein, a grant to Donald R. Sanders of an option to purchase Seventy-Five Thousand (75,000) shares of the Company's common stock at a price of Eleven Dollars and Twenty-Five
Cents ($11.25) per share. Said grant is conditioned upon the receipt by the Company, on or before November 30, 2000, of a favorable recommendation from the FDA Advisory Panel after its review
of the clinical data relating to the AquaFlowTM Glaucoma Device. If the FDA Advisory Panel fails to give a favorable recommendation by November 30, 2000, then the number of shares
which the Consultant will have the option to purchase shall be reduced from Seventy-Five Thousand (75,000) to Twenty-Five Thousand (25,000), so long as the FDA Advisory Panel
review is completed and a favorable recommendation given to the Company by January 31, 2001. If the FDA Advisory Panel fails to give a favorable recommendation to the Company by
January 31, 2001, the grant of the option shall lapse and shall be of no further force and effect. The option must be exercised, or it will lapse, by July 31, 2001. The option discussed
herein shall be referred to in this Agreement as the "Bonus Option". 

    5.2  Cash Bonus.  On July 7, 2000 the Company authorized, subject to the conditions set forth
herein, the payment of a bonus to any five (5) employees chosen by the Consultant. Said bonus, in the amount of Nine Thousand Dollars ($9,000) per employee, shall be paid upon the receipt by
the Company, on or before November 30, 2000, of a favorable recommendation from the FDA Advisory Panel after its review of the clinical data relating to the AquaFlowTM Glaucoma
Device. If the FDA Advisory Panel fails to give the Company a favorable recommendation by November 30, 2000, the bonus shall be reduced to the amount of Four Thousand Five Hundred Dollars
($4,500) per employee, so long as the FDA Advisory Panel gives a favorable recommendation to the Company by January 31, 2001. If the FDA Advisory Panel fails to give a favorable recommendation
to the Company by January 31, 2001, the grant of the cash bonus shall lapse and shall be of no further force and effect. 

    6.  Acceleration of Options in the Possession of the Consultant.  As of the date of this Agreement,
Donald R. Sanders, M.D. has options to purchase one hundred sixty thousand (160,000) shares of the Company's common stock ("Consultant's Options"). (The Consultant's Options do not include the Bonus
Option.) Upon execution of this Agreement by the Consultant and the Company, and on the condition that the sale of the common stock acquired through exercise of the Consultant's Options and the Bonus
Option is made pursuant to the terms of this paragraph 6, the Company shall accelerate the vesting date of those of the Consultant's Options that are unvested, so that they shall be deemed
vested on the date of execution of this Agreement. If Donald R. Sanders, M.D. exercises some or all of the Consultant's Options, or if the Bonus Option is granted to Donald R. Sanders, M.D. and he
exercises a portion or all of it, Donald R. Sanders, M.D. agrees that he will sell any of the Company's common stock acquired through the exercise of the Consultant's Options or the Bonus Option
through the institutional department of CIBC World Markets Corp. The obligations of Donald R. Sanders, M.D. under this paragraph 6 shall survive the expiration or termination of this Agreement
for a period of thirty-six (36) months. 

    7.  Nondisclosure.  

    7.1  Property Belonging to Company.  The Consultant agrees that all developments, ideas, devices,
improvements, discoveries, apparatus, practices, processes, methods, concepts and products relating to microsurgical and/or implantable devices, ("inventions") developed by the Consultant during the
term of this Agreement are the exclusive property of the Company and shall belong to 

2

 

the Company. The Consultant agrees to assign all such inventions to the Company, if the Company so requests. 

    7.2  Access to Confidential Information.  The Consultant agrees that during the term of the business
relationship between the Consultant and the Company, the Consultant will have access to and become acquainted with confidential proprietary information that is owned by the Company and is regularly
used in the operation of the Company's business. The Consultant acknowledges that all files, records, documents, drawings, specifications, equipment and similar items relating to the business of the
Company and to its confidential proprietary information, whether they are prepared by the Consultant or come into the Consultant's possession in any other way, shall remain the exclusive property of
the Company. 

    7.3  No Unfair Use by Consultant.  The Consultant promises and agrees that the Consultant shall not
misuse, misappropriate, or disclose in any way to any person or entity any of the Company's confidential proprietary information, either directly or indirectly, nor will the Consultant use the
confidential proprietary information in any way or at any time except as required in the course of the Consultant's business relationship with the Company. The Consultant agrees that the sale or
unauthorized use or disclosure of any of the Company's confidential proprietary information which is obtained by the Consultant during the Consultant's business relationship with the Company
constitutes unfair competition. The Consultant promises and agrees not to engage in any unfair competition with the Company. 

    7.4  Further Acts.  The Consultant agrees that, at any time during the term of this Agreement or any
extension thereof, upon the request of the Company and without further compensation, but at no expense to the Consultant, the Consultant shall perform any lawful acts, including the execution of
papers and oaths and the giving of testimony, that in the opinion of the Company, its successors or assigns, may be necessary or desirable in order to obtain, sustain, reissue and renew, and in order
to enforce, perfect, record and maintain, patent applications and United States and foreign patents on the Company's inventions, and copyright registrations on the Company's inventions. 

    7.5  Obligations Survive Agreement.  The Consultant's obligations under this section 7 shall
survive the expiration or termination, for any reason, of this Agreement. 

    8.  Termination.  

    8.1  Termination as a Result of a Change of Control.  Subject to the payment required by
paragraph 4 above, the Company may terminate this Agreement as a result of a Change of Control. A "Change of Control" shall be defined as any of the following events: (i) the sale by the
Company of substantially all of its business or assets, or (ii) the sale of the capital stock of the Company in connection with the sale or transfer of a controlling interest in the Company to
a third party, or (iii) the merger or consolidation of the Company with another corporation as part of a sale or transfer of a controlling interest in the Company to a third party. "A
controlling interest" shall be defined as 50% or more of the common stock of the Company. 

    8.2  Termination on Default.  Should either party default in the performance of this Agreement or
materially breach any of its provisions, the non-breaching party may terminate this Agreement by giving written notification to the breaching party. Termination shall be effective
immediately on receipt of said notice. For purposes of this section, material breaches of this Agreement shall include, but not be limited to, (i) non-payment by the Company of any
sum due the Consultant hereunder which remains unpaid after twenty (20) days written demand for payment; (ii) the willful and continuing failure of the Consultant to perform the
Services, which failure, if it can be cured, is not cured within twenty (20) days of the Consultant's receipt from the Company of written notice thereof, which notice shall specify such failure
to perform in detail; 

3

 

(iii) the Consultant's commission of acts of dishonesty or fraud; (iv) the failure by the Consultant to comply in any material respect with any applicable laws and regulations governing
the Consultant's duties under this Agreement; or (v) the commission by the Consultant of any act that does or will materially reflect unfavorably on the reputation of the Company. Termination
of this Agreement for cause by the Consultant shall not relieve the Company of its obligations to make payments to the Consultant for the balance of the Term, or its obligations under paragraphs 5.1
and 5.2. 

    8.3  Automatic Termination.  This Agreement terminates automatically on the occurrence of any of the
following events: (i) upon the Company's receipt of FDA approval of both of its Implantable Contact Lens ("ICL") (both for myopia and hyperopia) and its
AQUA-FLOWTM Glaucoma Device; or (ii) the death of Dr. Donald R. Sanders or a disability sustained by Dr. Donald R. Sanders that prevents him from rendering
the Services required by this Agreement in a timely manner. 

    8.4  Affect on Options and Other Obligations.  Notwithstanding the expiration or termination of this
Agreement, the provisions of paragraph 6 above shall survive in full force and effect, as shall all options which have theretofore vested pursuant to paragraph 5.1 above. Further, no
such expiration or termination shall relieve the Company of any accrued but unpaid obligations under paragraphs 3 and 4 above. 

    9.  Status of Consultant.  The Consultant understands and agrees that its employees are  not employees of the
Company and that they shall not be entitled to receive employee benefits from the
Company, including, but not limited to, sick leave, vacation, retirement, death benefits, an automobile, stock in the Company and/or participation in profits earned by Company. The Consultant shall be
responsible for providing, at the Consultant's expense and in the Consultant's name, disability, worker's compensation or other insurance as well as licenses and permits usual or necessary for
conducting the Services hereunder. Furthermore, the Consultant shall pay, when and as due, any and all taxes incurred as a result of the Consultant's compensation hereunder, including estimated taxes,
and shall provide the Company with proof of said payments, upon demand. The Consultant hereby agrees to indemnify the Company for any claims, losses, costs, fees, liabilities, damages or injuries
suffered by the Company arising out of the Consultant's breach of this section. 

    10.  Representations by Consultant.  The Consultant represents that the Consultant has the qualifications
and ability to perform the Services in a professional manner, without the advice, control, or supervision of the Company. 

    11.  Business Expenses.  The Company shall reimburse the Consultant for all reasonable business expenses
(which shall include travel expenses) incurred by the Consultant provided that each such expenditure qualifies as a proper deduction on the Company's federal and state income tax return. Each such
expenditure shall be reimbursable only if the Consultant furnishes to the Company adequate records and other documentary evidence required by federal and state statutes and regulations issued by the
appropriate taxing authorities for the substantiation of that expenditure as an income tax deduction. The Consultant may not incur any single business expense (exclusive of reasonable travel expenses)
in an amount exceeding Five Hundred Dollars ($500.00) without the express prior written consent of the Company. The Company shall, in its sole discretion, reimburse the Consultant or not, for any
business expense which exceeds such amount and which is incurred by the Consultant without the prior written consent of the Company. 

    12.  Notices.  Unless otherwise specifically provided in this Agreement, all notices or other
communications (collectively and severally called "Notices") required or permitted to be given under this Agreement, shall be in writing, and shall be given by: (A) personal delivery (which
form of Notice shall be deemed to have been given upon delivery), (B) by telegraph or by private airborne/overnight delivery service (which forms of Notice shall be deemed to have been given
upon confirmed delivery by 

4

 

the delivery agency), or (C) by electronic or facsimile or telephonic transmission, provided the receiving party has a compatible device or confirms receipt thereof (which forms of Notice shall
be deemed delivered upon confirmed transmission or confirmation of receipt). Notices shall be addressed to the address set forth in the introductory section of this Agreement, or to such other address
as the receiving party shall have specified most recently by like Notice, with a copy to the other party. 

    13.  Other Engagements.  The Consultant shall be free to accept other engagements during the Term so long
as they do not interfere with the Consultant's ability to perform the Services or otherwise comply with the terms of this Agreement. 

    14.  Choice of Law/Arbitration.  This Agreement shall be governed according to the laws of the state of
California. The parties hereby agree that all controversies, claims and matters of difference shall be resolved by binding arbitration before the American Arbitration Association (the "AAA") according
to the rules and practices of the AAA from time-to-time in force; provided, however, that the parties hereto reserve their rights to seek and obtain injunctive or other
equitable relief from a court of competent jurisdiction without waiving the right to compel such arbitration pursuant to this paragraph. If the Consultant initiates any proceeding contemplated by the
foregoing, it shall do so in Los Angeles County, California. If the Company initiates any proceeding contemplated by the foregoing, it shall do so in Cook County, Illinois. In the event that the
Consultant initiates any such proceeding in order to obtain any compensation, of any form, owed to the Consultant under this Agreement, and if the Consultant prevails in such proceeding, the Company
shall reimburse the Consultant for all fees and expenses, including, attorneys' and arbitrators' fees, incurred by the Consultant in connection therewith. 

    15.  Entire Agreement.  This Agreement supersedes any and all other agreements, either oral or in
writing, between the parties hereto with respect to the services to be rendered by the Consultant to the Company and contains all of the covenants and agreements between the parties with respect to
the services to be rendered by the Consultant to the Company in any manner whatsoever. Each party to this agreement acknowledges that no representations, inducements, promises, or agreements, orally
or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement
shall be valid or binding on either party. 

    16.  Counterparts.  This Agreement may be executed manually or by facsimile signature in two or more
counterparts, each of which shall be deemed an original, and all of which together shall constitute but one and the same instrument. 

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

    18.  Preparation of Agreement.  It is acknowledged by each party that such party either had separate and
independent advice of counsel or the opportunity to avail itself or himself of same. In light of these facts it is acknowledged that no party shall be construed to be solely responsible for the
drafting hereof, and therefore any ambiguity shall not be construed against any party as the alleged draftsman of this Agreement. 

5

 

    WHEREFORE, the parties have executed this Agreement on the date first written above. 

	 	 	"CONSULTANT"

Donald R. Sanders, Ltd, d/b/a

Center for Clinical Research
	

 	
 	

By:	
 	

/s/ DONALD R. SANDERS   
 Donald R. Sanders, M.D., President
	

 	
 	

 	
 	

/s/ DONALD R. SANDERS   
 Donald R. Sanders, M.D.
	

 	
 	
"COMPANY"

STAAR Surgical Company
	

 	
 	

By:	
 	

/s/ ANDREW F. POLLET   
 Andrew F. Pollet, Chairman of the Board

6

 
 
 

EXHIBIT "A"
  DUTIES OF CONSULTANT    
  

    The Consultant shall act in conjunction with other physicians in the United States in making clinical trials of the Company's Implantable Contact Lenses
("ICL") and AQUA-FLOWTM Glaucoma Device. The Consultant, through its President, shall report on a regular basis to the Company's Chief Executive Officer and/or
Chairman of the Board. In discharging its duties, the Consultant shall be responsible for: 

    (1) adjudicating
adverse events that relate to the implantation of an ICL; 

    (2) corresponding
with investigational sites regarding protocol and providing general information updates; 

    (3) discussing
patient care related issues with investigators; 

    (4) approving
secondary procedures on study patients; 

    (5) managing
investigator related issues regarding enrollment in studies, compliance, data collections, and clinical results; 

    (6) acting
as chairman for investigator meetings in conjunction with the Director of Clinical Affairs; 

    (7) coordinating
with Promedica issues related to data collection; 

    (8) coordinating
with the Vice President of Regulatory Affairs issues relating to ICL clinical trials; 

    (9) providing
product education services to physicians; 

    (10) participating
in Company sponsored courses and seminars; 

    (11) presenting
data at peer review conferences and meetings; and 

    (12) consulting
and participating in the development of optometric education programs. 

7

QuickLinks

CONSULTING AGREEMENT

RECITALS

AGREEMENT

EXHIBIT "A" DUTIES OF CONSULTANT

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