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<title>Mentor Corporation</title>







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<p style='border:none;padding:0in'><font face="Arial" size="2"><b>&nbsp;</b></font></p>

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<p align=center style='text-align:center'><font face="Arial"><b>UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
<font size="2">Washington, DC 20549</font></b></font></p>



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<p align=center style='text-align:center'><font face="Arial"><b>FORM 8&#8209;K</b></font></p>



<p align=center style='text-align:center'><font face="Arial" size="2">CURRENT REPORT<br>
Pursuant to Section 13 or 15(d) of<br>
the Securities Exchange Act of 1934</font></p>

<p align=center style='text-align:center'><font face="Arial" size="2">Date of Report
(Date of earliest event reported)<br>
</font><font face="Arial">
<b>May 31, 2006</b></font></p>



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<p align=center style='text-align:center'><font face="Arial"><b>MENTOR
CORPORATION<br>
</b></font><font face="Arial" size="2">(Exact
name of registrant as specified in its charter)</font></p>



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  <p align=center style='text-align:center'><font face="Arial" size="2"><b><u>Minnesota</u></b></font></p>
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  <p><font face="Arial" size="2"><b>&nbsp;</b></font></p>
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  <p align=center style='text-align:center'><font face="Arial" size="2"><b><u>0-7955</u></b></font></p>
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  <p><font face="Arial" size="2"><b>&nbsp;</b></font></p>
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  <td width="32%" valign=top style='width:32.54%;padding:0in .7pt 0in .7pt'>
  <p align=center style='text-align:center'><font face="Arial" size="2"><b><u>41-0950791</u></b></font></p>
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  <p align=center style='text-align:center'><font face="Arial" size="2">(State or
  other jurisdiction of
  incorporation)</font></p>
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  <p align=center style='text-align:center'><font face="Arial" size="2">(Commission
  File Number)</font></p>
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  <p align=center style='text-align:center'><font face="Arial" size="2">(IRS Employer<br>
  Identification No.)</font></p>
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<p align=center style='text-align:center'><font face="Arial" size="2"><b>201 Mentor Drive<br>
Santa Barbara, California&nbsp; 93111<br>
</b>(Address of
principal executive offices, including zip code)</font></p>



<p align=center style='text-align:center'><font face="Arial" size="2"><b>(805) 879-6000<br>
</b>(Registrant's
telephone number, including area code)</font></p>





<p><font face="Arial" size="2">Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (SEE General Instruction A.2. below):</font></p>



<p><font face="Arial" size="2">[&nbsp; ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)</font></p>



<p><font face="Arial" size="2">[&nbsp; ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)</font></p>



<p><font face="Arial" size="2">[&nbsp; ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))</font></p>



<p><font face="Arial" size="2">[&nbsp; ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))</font></p>





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<p><font face="Arial" size="2"><b>Item
1.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Entry into a Material Definitive Agreement.</b></font></p>



<p style="text-indent: .5in; text-autospace: none; margin-left: 0in; margin-right: 0in; margin-top: 12.0pt; margin-bottom: 6.0pt">
<font size="2" face="Arial">(i)&nbsp; On May 31, 2006, Mentor Corporation (the
&quot;Company&quot;) entered into a First Amendment to Credit Agreement (the &quot;First
Amendment&quot;), which amends the Credit Agreement, dated as of May 25, 2005 (the
&quot;Credit Agreement&quot;), among the Company, Bank of the West, as administrative
agent, Union Bank of California, N. A., as syndication agent, Wells Fargo Bank,
National Association, as documentation agent, and the lenders from time to time
party thereto.</font></p>
<p style="text-indent: .5in; text-autospace: none; margin: 6.0pt 0in">
<font size="2" face="Arial">The First Amendment amends the Credit Agreement to
permit the Company to consummate the sale of the Company's surgical urology and
clinical and consumer healthcare business segments (collectively, the &quot;Urology
Business&quot;). &nbsp;Additionally, the First Amendment modifies the minimum Adjusted
Consolidated EBITDA covenant that the Company is required to comply with under
the Credit Agreement.&nbsp; The First Amendment also amends certain negative
covenants contained in the Credit Agreement, including amendments to the
covenants restricting the Company's ability to make investments and incur
indebtedness and an amendment increasing the amount of its equity securities
that the Company is permitted to repurchase.</font></p>
<p style="text-indent: .5in; text-autospace: none; margin: 6.0pt 0in">
<font face="Arial" size="2">The foregoing summary does not purport to be
complete and is qualified in its entirety by reference to the First Amendment,
attached hereto as Exhibit 10.1 <a name="OLE_LINK1">and incorporated by
reference in its entirety herein</a>.</font></p>
<p style="text-indent: .5in; text-autospace: none; margin-left: 0in; margin-right: 0in; margin-top: 12.0pt; margin-bottom: 6.0pt">
<font face="Arial" size="2">(ii)&nbsp; On June&nbsp;2, 2006, the Chairman of the
Compensation Committee pursuant to authority delegated to him by and based upon
the recommendations of the Compensation Committee (the &quot;Compensation Committee&quot;)
of the Board of Directors of the Company, approved new annual base salaries and
target bonus percentages for certain of its executive officers; awarded fiscal
year 2006 bonuses to the Company's executive officers under its fiscal year 2006
compensation plan (the &quot;Fiscal Year 2006 Bonuses&quot;) and awarded bonuses in
connection with the sale of the Company's Urology Business to Coloplast A/S (the
&quot;Urology Transaction Bonuses&quot;), as follows:</font></p>
<p style="text-indent: .5in; text-autospace: none; margin: 6.0pt 0in">
<font face="Arial"><i><font size="2">Base Salary and Target Bonus Percentages of
Executive Officers</font></i><font size="2">:&nbsp; Base salary and target bonus
percentages for Fiscal Year 2007 were set for the executive officers at the
Fiscal Year 2006 levels, other than with respect to David J. Adornetto, Vice
President, Operations, whose base salary was increased to $300,000, and Cathy
Ullery, Vice President, Human Resources, whose base salary was increased to
$225,000 and target bonus percentage was increased to 75%.&nbsp; The salary
adjustments were retroactive to April 1, 2006, the first day of fiscal 2007.&nbsp;
Fiscal Year 2006 base salaries and target bonus percentages are set forth in the
table below.&nbsp; The terms of the Company's annual incentive bonus plan for Fiscal
Year 2007 will be determined by the Compensation Committee at a later meeting.</font></font></p>
<p style="text-indent: .5in; text-autospace: none; margin: 6.0pt 0in">
<font face="Arial"><i><font size="2">Fiscal 2006 Bonuses and Urology Transaction
Bonuses</font></i><font size="2">:&nbsp; </font></font></p>
<p style="text-indent: 1.0in; margin-top:6pt; margin-bottom:6pt"><font face="Arial"><i>
<font size="2">Annual Incentive Bonus Plan.&nbsp; </font></i>
<font size="2">For fiscal year 2006, all U.S.
management employees were eligible to participate in this plan.&nbsp; Under this
plan, participants were eligible to receive an annual incentive bonus equal to a
designated percentage of their salaries.&nbsp; To receive the Annual Incentive Bonus,
a participant must be employed at the end of the fiscal year and when the bonus
is distributed, and participants who were not actively employed for the full
fiscal year will be eligible for a bonus on a pro-rated basis.&nbsp; The maximum
bonus percentage that participants can earn under this plan, assuming
achievement of all individual goals and Company targets, ranged from 6.6% to
100% of their base salary, depending on the participant's managerial level.&nbsp;
</font></font></p>
<p style="text-indent: .5in; margin-top:6pt; margin-bottom:6pt"><font face="Arial" size="2">
The Annual Incentive Bonus Plan was designed around
two general concepts: individual performance and Company achievement of its
consolidated operating income targets.&nbsp; </font></p>
<p style="text-indent: .5in; margin-top:6pt; margin-bottom:6pt"><font face="Arial" size="2">
Each participant was eligible to receive up to 30% of
his or her total bonus potential under the Annual Incentive Bonus Plan, provided
the Company's operating income, adjusted for extraordinary transactions, equals
or exceeds its threshold for the year, as established by the Board of Directors
at the beginning of the fiscal year. &nbsp;The actual pay-out for this portion of the
bonus was based on the participant's accomplishment of his or her specified
objectives, as well as an assessment of his or her overall performance.&nbsp;
</font></p>
<p style="text-indent: .5in">&nbsp;</p>

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<p style="text-indent: .5in; text-autospace: none; margin: 6.0pt 0in">
<font face="Arial" size="2">Each participant was also
eligible to receive up to an additional 70% of his or her total bonus potential
under the Annual Incentive Bonus Plan, provided the Company's operating income,
adjusted for extraordinary transactions, equals or exceeds its threshold for the
year, which was also established by the Board of Directors.&nbsp; This threshold was
set higher than the minimum threshold required to trigger the 30% portion of the
bonus described above.&nbsp; Once the minimum threshold is achieved, further
operating income targets on a sliding scale allow for a percentage of the bonus
pay-out based on the level of actual corporate operating income achieved.&nbsp; The
participant's actual pay-out was adjusted based on an assessment of the
individual's overall performance.&nbsp; </font></p>


<p style="text-indent: .5in; text-autospace: none; margin: 6.0pt 0in">
<font face="Arial" size="2">Consistent with prior years, the Chairman of the
Compensation Committee considered whether profitability objectives, adjusted to
exclude extraordinary transactions, such as the costs of the sale of the Urology
Business to Coloplast, were met in determining whether a given executive met the
criteria to receive a Fiscal Year 2006 bonus.&nbsp; The payout percentages were met
solely for the 30% of Target Bonus criteria.&nbsp; No bonuses were paid for the
remaining 70% of the Target Bonus criteria. </font></p>
<p style="text-indent: 1.0in; text-autospace: none; margin: 6.0pt 0in">
<font face="Arial"><i><font size="2">Urology Transaction Bonuses.&nbsp; </font></i>
<font size="2">The Urology Transaction bonuses were awarded to approximately 105
employees of the Company, including the officers set forth below, who had
significant involvement in the transaction upon its completion.&nbsp; The Urology
Transaction bonuses were awarded as a percentage of base salary, depending on
the level of involvement of the individual in the transaction, for those persons
not involved in sales activities, and based on the attainment of specified
goals, for those involved in sales activities.</font></font></p>
<p style="text-indent: .5in; text-autospace: none; margin: 6.0pt 0in">
<font face="Arial" size="2">The following table sets forth the Fiscal Year 2006
and Urology Transaction Bonuses approved by the Chairman of the Compensation
Committee for the Company's executive officers:</font></p>



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margin-left:0in'><font face="Arial" size="2">&nbsp;</font></p>
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			<p style="text-indent: 4.0pt; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2"><b>Name and Position</b></font></p>
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			<p style="text-autospace: none; margin: 6.0pt 0in">&nbsp;</td>
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			<font face="Arial" size="2"><b>Fiscal 2006 Base&nbsp;Salary</b></font></p>
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			<p align="center" style="text-align: center; text-indent: 1.4pt; text-autospace: none; margin: 6.0pt 0in">&nbsp;</td>
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			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2"><b>Fiscal 2006 Target&nbsp;Bonus<br>
			&nbsp;Percentage</b></font></p>
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			<p align="center" style="text-align: center; text-indent: 1.4pt; text-autospace: none; margin: 6.0pt 0in">&nbsp;</td>
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			<p align="center" style="text-align: center; text-indent: 1.4pt; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2"><b>Fiscal Year 2006 Bonuses<br>
			(30% of Target Bonus)</b></font></p>
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			<p align="center" style="text-align: center; text-indent: 1.4pt; text-autospace: none; margin: 6.0pt 0in">&nbsp;</td>
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			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2"><b>Urology Transaction&nbsp; Bonuses <br>
			(% of Fiscal 2006 Base Salary)</b></font></p>
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			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">&nbsp;</td>
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			<p style="text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">Joshua H. Levine<br>
			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive Officer</font></td>
			<td valign="bottom" style="width: 92px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">$500,000</font></td>
			<td valign="bottom" style="width: 104px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">100%</font></td>
			<td valign="bottom" style="width: 103px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">$150,000</font></td>
			<td valign="bottom" style="width: 91px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">40%</font></td>
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			<p style="text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">Loren L. McFarland<br>
			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President and Chief Financial Officer</font></td>
			<td valign="bottom" style="width: 92px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">300,000</font></td>
			<td valign="bottom" style="width: 104px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">75</font></td>
			<td valign="bottom" style="width: 103px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">67,500</font></td>
			<td valign="bottom" style="width: 91px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">75</font></td>
		</tr>
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			<td valign="top" style="width: 295px; padding: 0in">
			<p style="text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">Kathleen M. Beauchamp<br>
			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President, Sales and
			Marketing</font></p></td>
			<td valign="bottom" style="width: 92px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">300,000</font></td>
			<td valign="bottom" style="width: 104px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">75</font></td>
			<td valign="bottom" style="width: 103px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">67,500</font></td>
			<td valign="bottom" style="width: 91px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">40</font></td>
		</tr>
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			<p style="text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">David J. Adornetto<br>
			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President, Operations</font></td>
			<td valign="bottom" style="width: 92px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">275,000</font></td>
			<td valign="bottom" style="width: 104px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">75</font></td>
			<td valign="bottom" style="width: 103px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">61,875</font></td>
			<td valign="bottom" style="width: 91px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">40</font></td>
		</tr>
		<tr>
			<td valign="top" style="width: 295px; padding: 0in">
			<p style="text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">A. Christopher Fawzy<br>
			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President and General Counsel</font></td>
			<td valign="bottom" style="width: 92px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">240,000</font></td>
			<td valign="bottom" style="width: 104px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">60</font></td>
			<td valign="bottom" style="width: 103px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">43,200</font></td>
			<td valign="bottom" style="width: 91px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">75</font></td>
		</tr>
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			<td valign="top" style="width: 295px; padding: 0in">
			<p style="text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">Cathy Ullery<br>
			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President, Human Resources</font></td>
			<td valign="bottom" style="width: 92px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">206,000</font></td>
			<td valign="bottom" style="width: 104px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">75</font></td>
			<td valign="bottom" style="width: 103px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">37,080</font></td>
			<td valign="bottom" style="width: 91px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">60</font></td>
		</tr>
		<tr>
			<td valign="top" style="width: 295px; padding: 0in">
			<p style="text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">Clarke Scherff<br>
			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President, Regulatory Compliance/ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Quality
			Assurance</font></td>
			<td valign="bottom" style="width: 92px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">189,000</font></td>
			<td valign="bottom" style="width: 104px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">60</font></td>
			<td valign="bottom" style="width: 103px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">34,020</font></td>
			<td valign="bottom" style="width: 91px; padding: 0in">
			<p align="center" style="text-align: center; text-autospace: none; margin: 6.0pt 0in">
			<font face="Arial" size="2">10</font></td>
		</tr>
	</table>
</div>



<div>

<p align="center" style="text-autospace: none; margin: 6.0pt 0in">&nbsp;</p>
<p align="center" style="text-autospace: none; margin: 6.0pt 0in">&nbsp;</p>

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  <p><font face="Arial" size="2">3</font></p>
  </td>
 </tr>
</table>

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</font>
<p style="text-autospace: none; margin: 6.0pt 0in"><font face="Arial" size="2">
<b>Item 2.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Completion of Acquisition or Disposition of Assets.</b>&nbsp;</font></p>
<p style="text-indent:.5in"><font size="2" face="Arial">On June 2, 2006, the
Company completed the disposition of its Urology Business to Coloplast A/S, a
Danish Corporation (&quot;Coloplast&quot;), for a total consideration of $463,225,000, of
which $456,137,500 was in cash and the remainder of which consisted of the value
of certain foreign tax credits that the Company expects to realize arising from
the transaction prior to the close.&nbsp; On June 1, 2006 the Company's Porges SAS
subsidiary sold certain intellectual property to Coloplast for $52 million which
is included in the total consideration shown above.&nbsp; The purchase price is
subject to a post-closing adjustment based on the working capital of the
acquired business as of the closing date, and a downward reduction in an amount
equal to 50% of the amount of certain transfer taxes and related fees incurred
in connection with the transaction, 50% of the cost of severance obligations in
respect of certain former employees of the Urology Business who will not
continue with the Urology Business following the closing of the transaction, and
certain other administrative costs, all as set forth in the purchase agreement
governing the transaction (the &quot;Purchase Agreement&quot;).&nbsp; A description of the
Purchase Agreement is set forth in the Company's Current Report on Form 8-K
filed with the Securities and Exchange Commission on May 23, 2006 and is
incorporated by reference in its entirety herein.&nbsp;</font></p>
<p style="text-indent:.5in"><font face="Arial" size="2">On June 2, 2006, the
Company also completed the sale of its intellectual property, raw materials and
tangible assets for the production of silicone male external catheters (&quot;SMEC&quot;)
relating to the Company's SMEC production facility in Anoka, Minnesota and its
inventory of SMECs to Rochester Medical Corporation, for an aggregate purchase
price of approximately $1.6 million.&nbsp; </font></p>
<p style="text-autospace: none; margin-left: 0in; margin-right: 0in; margin-top: 12.0pt; margin-bottom: 6.0pt">
<font face="Arial" size="2"><b>Item 8.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Events.&nbsp;</b></font></p>
<p style="text-indent:.5in"><font face="Arial" size="2">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On June 2,
2006, the Company issued a press release relating to the closing of the
disposition of its Urology Business.&nbsp; The text of the press release is attached
hereto as Exhibit 99.1 and is incorporated in its entirety herein by reference.
&nbsp;</font></p>
<p style="text-indent:.5in"><font face="Arial" size="2">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As part of
the Company's share repurchase program, the Company agreed on June&nbsp;5, 2006, to
repurchase from an investment partnership managed by ValueAct Capital 2,000,000
shares of its common stock at $42 per share, a 0.5% discount from the closing
market price quoted on the New York Stock Exchange of $42.21 on June&nbsp;5,
2006.&nbsp;&nbsp;The 2.0 million shares were repurchased for a total of $84 million
pursuant to the Company's continuing stock repurchase program and represent
approximately 4.6% of outstanding shares before the transactions.&nbsp; After the
transactions, ValueAct Capital, through several of its investment partnerships,
continues to own more than 2 million shares of Common Stock, or approximately
5% of the outstanding shares of the Company, and continues to be represented
on the Company's Board of Directors by Mr. Jeff Ubben.&nbsp; The repurchase of these
shares was pre-approved by the Audit Committee and the Board of Directors with
interested parties abstaining or not in attendance.&nbsp;</font></p>
<p style="text-indent:.5in"><font face="Arial" size="2">Approximately 3.3
million shares remain authorized for repurchase under the Company's stock
repurchase program.&nbsp; All shares repurchased under the program have been retired
and are no longer deemed to be outstanding.&nbsp; There is no guarantee that the
remaining shares authorized for repurchase will ultimately be repurchased.&nbsp;
</font></p>
<p style="margin-top:12.0pt;text-indent:.5in"><font size="2" face="Arial">The
additional shares available for repurchase are subject to limitations set forth
in the Company's Credit Agreement previously entered into on May 26, 2005 and
amended on May&nbsp;31, 2006.&nbsp; The amended Credit Agreement now permits the
repurchase of up to $250,000,000 of equity securities, a portion of which was
utilized in the repurchase described in the previous paragraph, leaving a
remaining amount of $166,000,000.&nbsp; In addition, after the entire $250,000,000 is
utilized for such repurchases, the Company may repurchase during any four
consecutive quarters additional equity securities in an amount limited to the
Company's consolidated net income, less dividends paid, for the four most recent
trailing quarters.</font></p>


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<p style="text-indent: .5in; margin-top: 12.0pt">&nbsp;</p>

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  <font face="Arial" size="2">4</font></td>
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<p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><font face="Arial" size="2"><b>Item
9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and Exhibits.</b></font></p>



<p><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro Forma Financial Information.</font></p>
<p style="text-indent:1.0in"><font face="Arial" size="2">Pro forma financial
information for the transactions described in Item 2.01 above will be filed by
amendment to this Current Report on Form 8-K not later than 71 calendar days
after the required filing date for this Current Report on Form 8-K, in
accordance with Item 9.01(b) of Form 8-K.</font></p>
<p><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Exhibits.</font></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:77.4pt;border-collapse:collapse'>
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  <td width=104 valign=top style='width:78.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:12.0pt; margin-top:6pt'><font face="Arial" size="2"><b><u>Exhibit No.</u></b></font></p>
  </td>
  <td width=430 valign=top style='width:322.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:12.0pt; margin-top:6pt'><font face="Arial" size="2"><b><u>Exhibit Title or Description</u></b></font></p>
  </td>
 </tr>
 <tr>
  <td width=104 valign=top style='width:78.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:12.0pt; margin-top:6pt'><font face="Arial" size="2">10.1</font></p>
  </td>
  <td width=430 valign=top style='width:322.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:12.0pt; margin-top:6pt'>
	<font size="2" face="Arial">First Amendment to Credit Agreement dated as of May 31, 2006,
	amending that certain Credit Agreement, dated as of May 25, 2005, by and
	among the Company, Bank of the West, as administrative agent, Union Bank of
	California, N. A., as syndication agent, Wells Fargo Bank, National
	Association, as documentation agent, and the lenders from time to time party
	thereto.</font></p>
  </td>
 </tr>
 <tr>
  <td width=104 valign=top style='width:78.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:12.0pt; margin-top:6pt'><font face="Arial" size="2">99.1</font></p>
  </td>
  <td width=430 valign=top style='width:322.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:12.0pt; margin-top:6pt'><font face="Arial" size="2">
	Press Release Issued by Mentor Corporation, dated June 2, 2006</font></p>
  </td>
 </tr>
</table>


















<p align=center style='text-align:center'><font face="Arial" size="2"><b>SIGNATURE</b></font></p>



<p><font face="Arial" size="2">Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</font></p>





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  </td>
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  height:12.95pt'>
  <p><font face="Arial" size="2"><b>&nbsp;</b></font></p>
  </td>
  <td width="48%" valign=bottom style='width:48.6%;padding:0in .7pt 0in .7pt;
  height:12.95pt'>
  <p><font face="Arial" size="2"><b>Mentor Corporation</b></font></p>
  </td>
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  height:12.95pt'>

  </td>
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  height:12.95pt'>

  </td>
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  height:12.95pt'>

  </td>
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  height:12.95pt'>

  </td>
  <td width="23%" valign=bottom style='width:23.6%;padding:0in .7pt 0in .7pt;
  height:12.95pt'>

  </td>
  <td width="48%" valign=bottom style='width:48.6%;padding:0in .7pt 0in .7pt;
  height:12.95pt'>

  </td>
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  <td width="27%" valign=bottom style='width:27.8%;padding:0in .7pt 0in .7pt;
  height:12.95pt'>
  <p><font face="Arial" size="2">Date:&nbsp; June 6, 2006</font></p>
  </td>
  <td width="23%" valign=bottom style='width:23.6%;padding:0in .7pt 0in .7pt;
  height:12.95pt'>
  <p align=right style='text-align:right'><font face="Arial" size="2">By:&nbsp;
	</font> </p>
  </td>
  <td width="48%" valign=bottom style='width:48.6%;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;height:12.95pt'>
  <p><font face="Arial" size="2">/s/Loren
  L. McFarland</font></p>
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  height:12.95pt'>

  </td>
  <td width="23%" valign=bottom style='width:23.6%;padding:0in .7pt 0in .7pt;
  height:12.95pt'>

  </td>
  <td width="48%" valign=bottom style='width:48.6%;padding:0in .7pt 0in .7pt;
  height:12.95pt'>
  <p><font face="Arial" size="2">Loren L.
  McFarland</font></p>
  </td>
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  </td>
  <td width="23%" valign=bottom style='width:23.6%;padding:0in .7pt 0in .7pt;
  height:12.95pt'>

  </td>
  <td width="48%" valign=bottom style='width:48.6%;padding:0in .7pt 0in .7pt;
  height:12.95pt'>
  <p><font face="Arial" size="2">Chief
  Financial Officer</font></p>
  </td>
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&nbsp;<p>&nbsp;</p>

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	<p><font face="Arial" size="2">5</font></p>
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<p align=center style='text-align:center'><font face="Arial" size="2"><b>Exhibit Index</b></font></p>





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  <td width=97 valign=top style='width:72.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:12.0pt; margin-top:6pt'><font face="Arial" size="2"><b><u>Exhibit No.</u></b></font></p>
  </td>
  <td width=479 valign=top style='width:359.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:12.0pt; margin-top:6pt'><font face="Arial" size="2"><b><u>Exhibit Title or Description</u></b></font></p>
  </td>
 </tr>
 <tr>
  <td width=97 valign=top style='width:72.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:12.0pt; margin-top:6pt'><font face="Arial" size="2">10.1</font></p>
  </td>
  <td width=479 valign=top style='width:359.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:12.0pt; margin-top:6pt'>
	<font size="2" face="Arial">First Amendment to Credit Agreement dated as of May 31, 2006,
	amending that certain Credit Agreement, dated as of May 25, 2005, by and
	among the Company, Bank of the West, as administrative agent, Union Bank of
	California, N. A., as syndication agent, Wells Fargo Bank, National
	Association, as documentation agent, and the lenders from time to time party
	thereto.</font></p>
  </td>
 </tr>
 <tr>
  <td width=97 valign=top style='width:72.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:12.0pt; margin-top:6pt'><font face="Arial" size="2">99.1</font></p>
  </td>
  <td width=479 valign=top style='width:359.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:12.0pt; margin-top:6pt'><font face="Arial" size="2">
	Press Release Issued by Mentor
  Corporation, dated June 2, 2006</font></p>
  </td>
 </tr>
</table>

<div>

<p style="margin-bottom: 12.0pt">&nbsp;</p>
<p style="margin-bottom: 12.0pt">&nbsp;</p>

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	<p><font face="Arial" size="2">6</font></p>
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</html>
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{"company-data": {"conformed-name": "MENTOR CORP /MN/", "cik": "0000064892", "assigned-sic": "3842", "irs-number": "410950791", "state-of-incorporation": "MN", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-31744", "film-number": "06890024"}, "business-address": {"street1": "201 MENTOR DR", "city": "SANTA BARBARA", "state": "CA", "zip": "93111", "phone": "8058796000"}, "mail-address": {"street1": "201 MENTOR DR", "city": "SANTA BARBARA", "state": "CA", "zip": "93111"}}
Mentor Corporation
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8‑K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
May 31, 2006
MENTOR
CORPORATION
(Exact
name of registrant as specified in its charter)
Minnesota
0-7955
41-0950791
(State or
  other jurisdiction of
  incorporation)
(Commission
  File Number)
(IRS Employer
Identification No.)
201 Mentor Drive
Santa Barbara, California  93111
(Address of
principal executive offices, including zip code)
(805) 879-6000
(Registrant's
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (SEE General Instruction A.2. below):
[  ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[  ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[  ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[  ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Item
1.01          Entry into a Material Definitive Agreement.
(i)  On May 31, 2006, Mentor Corporation (the
"Company") entered into a First Amendment to Credit Agreement (the "First
Amendment"), which amends the Credit Agreement, dated as of May 25, 2005 (the
"Credit Agreement"), among the Company, Bank of the West, as administrative
agent, Union Bank of California, N. A., as syndication agent, Wells Fargo Bank,
National Association, as documentation agent, and the lenders from time to time
party thereto.
The First Amendment amends the Credit Agreement to
permit the Company to consummate the sale of the Company's surgical urology and
clinical and consumer healthcare business segments (collectively, the "Urology
Business").  Additionally, the First Amendment modifies the minimum Adjusted
Consolidated EBITDA covenant that the Company is required to comply with under
the Credit Agreement.  The First Amendment also amends certain negative
covenants contained in the Credit Agreement, including amendments to the
covenants restricting the Company's ability to make investments and incur
indebtedness and an amendment increasing the amount of its equity securities
that the Company is permitted to repurchase.
The foregoing summary does not purport to be
complete and is qualified in its entirety by reference to the First Amendment,
attached hereto as Exhibit 10.1
and incorporated by
reference in its entirety herein
.
(ii)  On June 2, 2006, the Chairman of the
Compensation Committee pursuant to authority delegated to him by and based upon
the recommendations of the Compensation Committee (the "Compensation Committee")
of the Board of Directors of the Company, approved new annual base salaries and
target bonus percentages for certain of its executive officers; awarded fiscal
year 2006 bonuses to the Company's executive officers under its fiscal year 2006
compensation plan (the "Fiscal Year 2006 Bonuses") and awarded bonuses in
connection with the sale of the Company's Urology Business to Coloplast A/S (the
"Urology Transaction Bonuses"), as follows:
Base Salary and Target Bonus Percentages of
Executive Officers
:  Base salary and target bonus
percentages for Fiscal Year 2007 were set for the executive officers at the
Fiscal Year 2006 levels, other than with respect to David J. Adornetto, Vice
President, Operations, whose base salary was increased to $300,000, and Cathy
Ullery, Vice President, Human Resources, whose base salary was increased to
$225,000 and target bonus percentage was increased to 75%.  The salary
adjustments were retroactive to April 1, 2006, the first day of fiscal 2007. 
Fiscal Year 2006 base salaries and target bonus percentages are set forth in the
table below.  The terms of the Company's annual incentive bonus plan for Fiscal
Year 2007 will be determined by the Compensation Committee at a later meeting.
Fiscal 2006 Bonuses and Urology Transaction
Bonuses
:
Annual Incentive Bonus Plan.
For fiscal year 2006, all U.S.
management employees were eligible to participate in this plan.  Under this
plan, participants were eligible to receive an annual incentive bonus equal to a
designated percentage of their salaries.  To receive the Annual Incentive Bonus,
a participant must be employed at the end of the fiscal year and when the bonus
is distributed, and participants who were not actively employed for the full
fiscal year will be eligible for a bonus on a pro-rated basis.  The maximum
bonus percentage that participants can earn under this plan, assuming
achievement of all individual goals and Company targets, ranged from 6.6% to
100% of their base salary, depending on the participant's managerial level.
The Annual Incentive Bonus Plan was designed around
two general concepts: individual performance and Company achievement of its
consolidated operating income targets.
Each participant was eligible to receive up to 30% of
his or her total bonus potential under the Annual Incentive Bonus Plan, provided
the Company's operating income, adjusted for extraordinary transactions, equals
or exceeds its threshold for the year, as established by the Board of Directors
at the beginning of the fiscal year.  The actual pay-out for this portion of the
bonus was based on the participant's accomplishment of his or her specified
objectives, as well as an assessment of his or her overall performance.
2
Each participant was also
eligible to receive up to an additional 70% of his or her total bonus potential
under the Annual Incentive Bonus Plan, provided the Company's operating income,
adjusted for extraordinary transactions, equals or exceeds its threshold for the
year, which was also established by the Board of Directors.  This threshold was
set higher than the minimum threshold required to trigger the 30% portion of the
bonus described above.  Once the minimum threshold is achieved, further
operating income targets on a sliding scale allow for a percentage of the bonus
pay-out based on the level of actual corporate operating income achieved.  The
participant's actual pay-out was adjusted based on an assessment of the
individual's overall performance.
Consistent with prior years, the Chairman of the
Compensation Committee considered whether profitability objectives, adjusted to
exclude extraordinary transactions, such as the costs of the sale of the Urology
Business to Coloplast, were met in determining whether a given executive met the
criteria to receive a Fiscal Year 2006 bonus.  The payout percentages were met
solely for the 30% of Target Bonus criteria.  No bonuses were paid for the
remaining 70% of the Target Bonus criteria.
Urology Transaction Bonuses.
The Urology Transaction bonuses were awarded to approximately 105
employees of the Company, including the officers set forth below, who had
significant involvement in the transaction upon its completion.  The Urology
Transaction bonuses were awarded as a percentage of base salary, depending on
the level of involvement of the individual in the transaction, for those persons
not involved in sales activities, and based on the attainment of specified
goals, for those involved in sales activities.
The following table sets forth the Fiscal Year 2006
and Urology Transaction Bonuses approved by the Chairman of the Compensation
Committee for the Company's executive officers:
Name and Position
Fiscal 2006 Base Salary
Fiscal 2006 Target Bonus
Percentage
Fiscal Year 2006 Bonuses
(30% of Target Bonus)
Urology Transaction  Bonuses
(% of Fiscal 2006 Base Salary)
Joshua H. Levine
President and Chief Executive Officer
$500,000
100%
$150,000
40%
Loren L. McFarland
Vice President and Chief Financial Officer
300,000
75
67,500
75
Kathleen M. Beauchamp
Vice President, Sales and
			Marketing
300,000
75
67,500
40
David J. Adornetto
Vice President, Operations
275,000
75
61,875
40
A. Christopher Fawzy
Vice President and General Counsel
240,000
60
43,200
75
Cathy Ullery
Vice President, Human Resources
206,000
75
37,080
60
Clarke Scherff
Vice President, Regulatory Compliance/             Quality
			Assurance
189,000
60
34,020
10
3
Item 2.01        Completion of Acquisition or Disposition of Assets.
On June 2, 2006, the
Company completed the disposition of its Urology Business to Coloplast A/S, a
Danish Corporation ("Coloplast"), for a total consideration of $463,225,000, of
which $456,137,500 was in cash and the remainder of which consisted of the value
of certain foreign tax credits that the Company expects to realize arising from
the transaction prior to the close.  On June 1, 2006 the Company's Porges SAS
subsidiary sold certain intellectual property to Coloplast for $52 million which
is included in the total consideration shown above.  The purchase price is
subject to a post-closing adjustment based on the working capital of the
acquired business as of the closing date, and a downward reduction in an amount
equal to 50% of the amount of certain transfer taxes and related fees incurred
in connection with the transaction, 50% of the cost of severance obligations in
respect of certain former employees of the Urology Business who will not
continue with the Urology Business following the closing of the transaction, and
certain other administrative costs, all as set forth in the purchase agreement
governing the transaction (the "Purchase Agreement").  A description of the
Purchase Agreement is set forth in the Company's Current Report on Form 8-K
filed with the Securities and Exchange Commission on May 23, 2006 and is
incorporated by reference in its entirety herein.
On June 2, 2006, the
Company also completed the sale of its intellectual property, raw materials and
tangible assets for the production of silicone male external catheters ("SMEC")
relating to the Company's SMEC production facility in Anoka, Minnesota and its
inventory of SMECs to Rochester Medical Corporation, for an aggregate purchase
price of approximately $1.6 million.
Item 8.01        Other Events.
(i)         On June 2,
2006, the Company issued a press release relating to the closing of the
disposition of its Urology Business.  The text of the press release is attached
hereto as Exhibit 99.1 and is incorporated in its entirety herein by reference.
(ii)        As part of
the Company's share repurchase program, the Company agreed on June 5, 2006, to
repurchase from an investment partnership managed by ValueAct Capital 2,000,000
shares of its common stock at $42 per share, a 0.5% discount from the closing
market price quoted on the New York Stock Exchange of $42.21 on June 5,
2006.  The 2.0 million shares were repurchased for a total of $84 million
pursuant to the Company's continuing stock repurchase program and represent
approximately 4.6% of outstanding shares before the transactions.  After the
transactions, ValueAct Capital, through several of its investment partnerships,
continues to own more than 2 million shares of Common Stock, or approximately
5% of the outstanding shares of the Company, and continues to be represented
on the Company's Board of Directors by Mr. Jeff Ubben.  The repurchase of these
shares was pre-approved by the Audit Committee and the Board of Directors with
interested parties abstaining or not in attendance.
Approximately 3.3
million shares remain authorized for repurchase under the Company's stock
repurchase program.  All shares repurchased under the program have been retired
and are no longer deemed to be outstanding.  There is no guarantee that the
remaining shares authorized for repurchase will ultimately be repurchased.
The
additional shares available for repurchase are subject to limitations set forth
in the Company's Credit Agreement previously entered into on May 26, 2005 and
amended on May 31, 2006.  The amended Credit Agreement now permits the
repurchase of up to $250,000,000 of equity securities, a portion of which was
utilized in the repurchase described in the previous paragraph, leaving a
remaining amount of $166,000,000.  In addition, after the entire $250,000,000 is
utilized for such repurchases, the Company may repurchase during any four
consecutive quarters additional equity securities in an amount limited to the
Company's consolidated net income, less dividends paid, for the four most recent
trailing quarters.
4
Item
9.01          Financial Statements and Exhibits.
(b)        Pro Forma Financial Information.
Pro forma financial
information for the transactions described in Item 2.01 above will be filed by
amendment to this Current Report on Form 8-K not later than 71 calendar days
after the required filing date for this Current Report on Form 8-K, in
accordance with Item 9.01(b) of Form 8-K.
(d)       
Exhibits.
Exhibit No.
Exhibit Title or Description
10.1
First Amendment to Credit Agreement dated as of May 31, 2006,
	amending that certain Credit Agreement, dated as of May 25, 2005, by and
	among the Company, Bank of the West, as administrative agent, Union Bank of
	California, N. A., as syndication agent, Wells Fargo Bank, National
	Association, as documentation agent, and the lenders from time to time party
	thereto.
99.1
Press Release Issued by Mentor Corporation, dated June 2, 2006
SIGNATURE
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Mentor Corporation
Date:  June 6, 2006
By:
/s/Loren
  L. McFarland
Loren L.
  McFarland
Chief
  Financial Officer
5
Exhibit Index
Exhibit No.
Exhibit Title or Description
10.1
First Amendment to Credit Agreement dated as of May 31, 2006,
	amending that certain Credit Agreement, dated as of May 25, 2005, by and
	among the Company, Bank of the West, as administrative agent, Union Bank of
	California, N. A., as syndication agent, Wells Fargo Bank, National
	Association, as documentation agent, and the lenders from time to time party
	thereto.
99.1
Press Release Issued by Mentor
  Corporation, dated June 2, 2006
6