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<title>MENTOR CORPORATION - Rabobank Loan and Overdraft Facility Borrowing</title>



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



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<p align=center style='text-align:center'><b><font size="4" face="Arial">FORM 8&#8209;K</font></b></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"><font size="2">Date of Report
(Date of earliest event reported)<br>
</font><b><font size="4">March 23,
 2006</font></b></font></p>



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<p align=center style='text-align:center'><b><font size="4" face="Arial">MENTOR
CORPORATION<br>
</font></b><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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  <td width="31%" valign=top style='width:31.78%;padding:0in .7pt 0in .7pt'>
  <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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  <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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  <td width="31%" valign=top style='width:31.78%;padding:0in .7pt 0in .7pt'>
  <p align=center style='text-align:center'><font face="Arial" size="2">(Commission
  File Number)</font></p>
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  <td width="2%" valign=bottom style='width:2.5%;padding:0in .7pt 0in .7pt'>

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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 style='margin-top:0in' align="center"><br>
<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 align=center style='text-align:center'><font face="Arial" size="2"><b>Not Applicable<br>
</b>(Former name or
former address, if changed since last report)</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:</font></p>

<p style='margin-left:14.25pt;text-indent:-14.25pt'><font face="Arial" size="2">[&nbsp; ] Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)</font></p>

<p style='margin-left:14.25pt;text-indent:-14.25pt'><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 style='margin-left:14.25pt;text-indent:-14.25pt'><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 style='margin-left:14.25pt;text-indent:-14.25pt'><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</b>&nbsp;&nbsp;&nbsp; <b>Entry into a Material
Definitive Agreement</b></font></p>

<p><font face="Arial" size="2">On March 23, 2006, Mentor Medical Systems BV, a
wholly owned subsidiary of Mentor Corporation, borrowed approximately $14
million under the terms of the existing Loan and Overdraft Facility (the
&quot;Facility&quot;) with Cooperative RaboBank Leiden, Leiderdorp en Oestgstgeest U.A.
(&quot;RaboBank&quot;), entered into on October 4, 2005.&nbsp; The borrowed funds were used to
partially fund a dividend of retained earnings under the American Jobs Creation Act of 2004 (see
item 8.01 below). </font></p>



<p><font face="Arial" size="2">The Facility provides Mentor BV with an initial
</font><font size="2" face="Times New Roman">&euro</font><font face="Arial" size="2">15
million loan and overdraft facility, which decreases by </font>
<font size="2" face="Times New Roman">&euro</font><font face="Arial" size="2">375,000
quarterly starting in September 2006.&nbsp; Under the Facility, Mentor BV may
borrow up to </font><font size="2" face="Times New Roman">&euro</font><font face="Arial" size="2">12.5
million in fixed amount advances, with terms of three to six months, and a
further sublimit of up to </font><font size="2" face="Times New Roman">&euro</font><font face="Arial" size="2">5
million of loans in fixed amount advances with a term of up to 5 years.&nbsp; Up
to </font><font size="2" face="Times New Roman">&euro</font><font face="Arial" size="2">10
million of the Facility may be drawn in the form of U.S. Dollars.&nbsp; Funds
under the Facility are available to Mentor BV to finance certain dividend
payments to Mentor Corporation and for other normal business purposes.&nbsp;
Prior to March 23, 2006, there were no borrowings outstanding under the
Facility.</font></p>



<p><font face="Arial" size="2">Interest on
borrowings under the Facility is at a rate equal to 0.55% over the RaboBank
base lending rate, Euribor, or LIBOR depending upon the currency and term of
each borrowing.&nbsp; Interest rates on borrowings other than overdrafts, are
fixed for the term of the advance.</font></p>



<p><font face="Arial" size="2">Borrowings
by Mentor BV under the Facility are guaranteed
by Mentor's wholly-owned subsidiary, Mentor
Medical Systems C.V., through a Joint and Several Debtorship agreement.&nbsp;
In addition, borrowings under the Facility are secured by a mortgage on certain
real estate owned by Mentor
  BV.</font></p>



<p><font face="Arial" size="2">The
Facility imposes certain financial and operational restrictions on Mentor BV,
including financial covenants that require Mentor BV and Mentor Medical Systems
CV to maintain a minimum combined defined solvency ratio, a maximum combined
debt leverage ratio of not greater than 4 to 1, a senior funded debt ratio of
not greater than 2.5 to 1, minimum quarterly operational results, and a minimum
interest coverage ratio of greater than 5 to 1. &nbsp;The Facility also
contains customary events of default, including cross default and material or
adverse change provisions.&nbsp; If an event of default occurs, the commitments
under the Facility may be terminated and the principal amount and all accrued
but unpaid interest and other amounts owed thereunder may be declared
immediately due and payable. &nbsp;As of March 23, 2006, all covenants and restrictions have
been satisfied.</font></p>



<p><font face="Arial" size="2">Mentor BV paid </font>
<font size="2" face="Times New Roman">&euro</font><font face="Arial" size="2">15,000 in certain fees to the
RaboBank upon entry into the Facility, and Mentor BV will be obligated to pay, over the 10 year term of the Facility, a
commitment fee of 0.25% of the committed and unborrowed balances.&nbsp; Fees
are payable quarterly in arrears.&nbsp; <br>
&nbsp;</font></p>





<p style='margin-left:54.15pt;text-indent:-54.15pt'><font face="Arial" size="2"><b>Item 2.03&nbsp;&nbsp;&nbsp; Creation of a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet Arrangement of a
Registrant</b></font></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;
margin-bottom:.0001pt;text-indent:-.75in;text-autospace:none'>
<font face="Arial" size="2">See Item 1.01 which is incorporated
by reference herein.&nbsp; <br>
&nbsp;</font></p>
<p><font face="Arial" size="2"><b>Item
8.01</b>&nbsp;&nbsp;&nbsp; <b>Other Events</b></font></p>



<p><font face="Arial" size="2">On March 24, 2006, Mentor Medical Systems, C.V. made
a distribution of retained earnings in the total amount of $32 million to its
two limited members and two general members, all of which are wholly owned
subsidiaries of Mentor Corporation. &nbsp;This dividend is intended to meet the
requirements under the provisions of the American Jobs Creation Act of 2004 and to be
eligible for the 85% dividends received deduction.&nbsp;&nbsp; </font> </p>

<p><font face="Arial" size="2"><b>&nbsp;</b></font></p>
<p align="center"><font face="Arial" size="2">2</font></p>



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<p align="center"><font face="Arial" size="2"><b>&nbsp;SIGNATURE</b></font></p>



<p style='margin:0in;margin-bottom:.0001pt;line-height:
normal'><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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  <b><font face="Arial" size="2">Mentor
  Corporation</font></b></td>
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  <p><font face="Arial" size="2">Date:&nbsp; March 29, 2006</font></p>
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  <p align=right style='text-align:right'><font face="Arial" size="2">By:</font></p>
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  <p><font face="Arial" size="2">/s/Joshua H. Levine</font></p>
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  <p><font face="Arial" size="2">Joshua H. Levine</font></p>
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  <p><font face="Arial" size="2">Chief Executive Officer</font></p>
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  <p><font face="Arial" size="2">Date:&nbsp; March 29, 2006</font></p>
  </td>
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  height:12.95pt'>
  <p align=right style='text-align:right'><font face="Arial" size="2">By:</font></p>
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  <p><font face="Arial" size="2">/s/Loren L. McFarland</font></p>
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  <p><font face="Arial" size="2">Loren L. McFarland</font></p>
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  <p><font face="Arial" size="2">Chief Financial Officer</font></p>
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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": "06719875"}, "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 - Rabobank Loan and Overdraft Facility Borrowing
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)
March 23,
 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)
Not Applicable
(Former name or
former address, if changed since last report)
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:
[  ] 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
On March 23, 2006, Mentor Medical Systems BV, a
wholly owned subsidiary of Mentor Corporation, borrowed approximately $14
million under the terms of the existing Loan and Overdraft Facility (the
"Facility") with Cooperative RaboBank Leiden, Leiderdorp en Oestgstgeest U.A.
("RaboBank"), entered into on October 4, 2005.  The borrowed funds were used to
partially fund a dividend of retained earnings under the American Jobs Creation Act of 2004 (see
item 8.01 below).
The Facility provides Mentor BV with an initial
&euro
15
million loan and overdraft facility, which decreases by
&euro
375,000
quarterly starting in September 2006.  Under the Facility, Mentor BV may
borrow up to
&euro
12.5
million in fixed amount advances, with terms of three to six months, and a
further sublimit of up to
&euro
5
million of loans in fixed amount advances with a term of up to 5 years.  Up
to
&euro
10
million of the Facility may be drawn in the form of U.S. Dollars.  Funds
under the Facility are available to Mentor BV to finance certain dividend
payments to Mentor Corporation and for other normal business purposes. 
Prior to March 23, 2006, there were no borrowings outstanding under the
Facility.
Interest on
borrowings under the Facility is at a rate equal to 0.55% over the RaboBank
base lending rate, Euribor, or LIBOR depending upon the currency and term of
each borrowing.  Interest rates on borrowings other than overdrafts, are
fixed for the term of the advance.
Borrowings
by Mentor BV under the Facility are guaranteed
by Mentor's wholly-owned subsidiary, Mentor
Medical Systems C.V., through a Joint and Several Debtorship agreement. 
In addition, borrowings under the Facility are secured by a mortgage on certain
real estate owned by Mentor
  BV.
The
Facility imposes certain financial and operational restrictions on Mentor BV,
including financial covenants that require Mentor BV and Mentor Medical Systems
CV to maintain a minimum combined defined solvency ratio, a maximum combined
debt leverage ratio of not greater than 4 to 1, a senior funded debt ratio of
not greater than 2.5 to 1, minimum quarterly operational results, and a minimum
interest coverage ratio of greater than 5 to 1.  The Facility also
contains customary events of default, including cross default and material or
adverse change provisions.  If an event of default occurs, the commitments
under the Facility may be terminated and the principal amount and all accrued
but unpaid interest and other amounts owed thereunder may be declared
immediately due and payable.  As of March 23, 2006, all covenants and restrictions have
been satisfied.
Mentor BV paid
&euro
15,000 in certain fees to the
RaboBank upon entry into the Facility, and Mentor BV will be obligated to pay, over the 10 year term of the Facility, a
commitment fee of 0.25% of the committed and unborrowed balances.  Fees
are payable quarterly in arrears.
Item 2.03    Creation of a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet Arrangement of a
Registrant
See Item 1.01 which is incorporated
by reference herein.
Item
8.01
Other Events
On March 24, 2006, Mentor Medical Systems, C.V. made
a distribution of retained earnings in the total amount of $32 million to its
two limited members and two general members, all of which are wholly owned
subsidiaries of Mentor Corporation.  This dividend is intended to meet the
requirements under the provisions of the American Jobs Creation Act of 2004 and to be
eligible for the 85% dividends received deduction.
2
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:  March 29, 2006
By:
/s/Joshua H. Levine
Joshua H. Levine
Chief Executive Officer
Date:  March 29, 2006
By:
/s/Loren L. McFarland
Loren L. McFarland
Chief Financial Officer
3