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<title>Mentor Corporation - Form 8-K</title>







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<b>UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br></b></font>
<font face="Times New Roman">Washington, DC 20549</font></p>
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<p align=center style='text-align:center'><font face="Times New Roman" size="4">
<b>FORM 8&#8209;K</b></font></p>
<p align=center style='text-align:center'><font face="Times New Roman" 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="Times New Roman" size="2">Date of Report (Date of
earliest event reported)<br></font><font face="Times New Roman" size="4"><b>
July 13,
2006</b></font></p>
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<p align=center style='text-align:center'><font face="Times New Roman" size="4">
<b>MENTOR CORPORATION<br></b></font><font face="Times New Roman" 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="Times New Roman" size="2"><b><u>Minnesota</u></b></font></p>
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			<p><font face="Times New Roman" 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="Times New Roman" size="2"><b><u>001-31744</u></b></font></p>
			</td>
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			<p><font face="Times New Roman" 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="Times New Roman" size="2"><b><u>41-0950791</u></b></font></p>
			</td>
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			<font face="Times New Roman" size="2">(State or other
  jurisdiction of incorporation)</font></p></td>
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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="Times New Roman" size="2">(Commission File
  Number)</font></p></td>
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			</td>
			<td width="32%" valign=top style='width:32.54%;padding:0in .7pt 0in .7pt'>
			<p align=center style='text-align:center'>
			<font face="Times New Roman" size="2">(IRS Employer<br>Identification No.)</font></p>
			</td>
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	</table></div>
<p align=center style='text-align:center'><font face="Times New Roman" 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="Times New Roman" size="2">
<b>(805) 879-6000<br></b>(Registrant's
telephone number, including area code)</font></p>
<p><font face="Times New Roman" 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="Times New Roman" size="2">[&nbsp;
] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
<p><font face="Times New Roman" size="2">[&nbsp;
] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
<p><font face="Times New Roman" 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="Times New Roman" 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><b><font face="Times New Roman" size="2">Item 1.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Entry
into a Material Definitive Agreement.</font></b></p>
<p style="margin-top:12.0pt;text-indent:.5in">
<font face="Times New Roman" size="2">On
July 13, 2006, the Compensation Committee of the Board of Directors of Mentor
Corporation (the &quot;Company&quot;)&nbsp; approved a grant of&nbsp; 45,000 performance
stock units award (the
&quot;PSU&quot;) under the Company's 2005 Long Term Incentive Plan to Mr. Joshua Levine,
Chief Executive Officer and President .&nbsp; The PSU will vest subject to the
attainment of specified targets for &quot;total shareholder return&quot; as defined by the
Compensation Committee from June&nbsp;24, 2006 to March&nbsp;31, 2009 and Mr. Levine and
other participants will receive as little as zero shares of the Company's common
stock if less than 85% of the
total shareholder return criteria is met, and up to 200% of the targeted number of
shares if the total shareholder return meets or exceeds 150% of the targeted
criteria. &nbsp;Mr. Levine was awarded 45,000 PSUs, which at the maximum 200% of
target number of shares could ultimately result in 90,000 units vesting on March
31, 2009 and the issuance of 90,000 shares of Company Common Stock. </font> </p>
<p style="margin-top:12.0pt;text-indent:.5in">
<font face="Times New Roman" size="2">Pursuant to the terms of the Plan and the Executive Performance Stock Unit Award
Agreement (the &quot;PSU Award Agreement&quot;), the PSUs shall vest as to an applicable
percentage of the award, based upon, during a period from June&nbsp;23, 2006 to March&nbsp;31,
2009, the change in the market price of the Company's common stock on the New
York Stock Exchange relative to the total change in price of the Russell 2500
Growth Index (such quotient, the &quot;TSR Percentage&quot;).&nbsp; If the TSR Percentage is
less than 85%, no portion of the PSU will vest.&nbsp; If the TSR Percentage meets or
exceeds 150%, then 200% of the targeted PSU number will vest. The PSU will not
vest unless the participant is continuously employed or providing service
through March&nbsp;31, 2009.&nbsp; Any unvested portion of the PSU or any interest
therein, generally may not be sold, assigned, pledged or otherwise disposed of,
alienated or encumbered.&nbsp; The participant shall be entitled to cash dividends
with respect to the shares underlying the PSU but such payments shall not be
made unless the PSU vests.&nbsp; The participant shall not have any voting rights
with respect to the PSU until the PSU vests.&nbsp; Any such rights, however, shall
terminate as to any shares subject to the PSU forfeited to the Company (as
described below). </font> </p>
<p style="text-indent:.5in;line-height:10.85pt">
<font face="Times New Roman" size="2">If the participant ceases to be employed or ceases to provide services to the
Company, the participant's unvested PSU shall be forfeited; however, if such
termination is a termination for death, total disability, without cause, or
resignation for
Good Reason, the PSUs shall remain eligible to vest and if the TSR Percentages
are satisfied, shall be paid to the participant.&nbsp; If there is a Change in
Control Event (as defined in the PSU Award Agreement) prior to March&nbsp;31, 2009,
the PSUs shall vest as to the greater of: (i) the TSR Percentage was 100% or
(ii) the actual TSR Percentage for the period between June&nbsp;23, 2006 and the
closing of the Change of Control transaction.</font></p>
<p style="text-indent:.5in"><font face="Times New Roman" size="2">A copy of the form of
PSU Award Agreement is filed as Exhibit 10.1 and the prior description is qualified entirely by such agreement, which
is deemed incorporated by reference herein.</font></p>



<p style='margin-top:12.0pt'><font face="Times New Roman" size="2"><b>Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and
Exhibits.</b></font></p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:
12.0pt;margin-left:.5in'><font face="Times New Roman" size="2">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.</font></p>
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		<font face="Times New Roman" size="2"><b><u>Exhibit
  No.</u></b></font></td>
		<td width=458 valign=top style='width:343.3pt;padding:0in 5.4pt 0in 5.4pt'>
		<p style="margin-top: 6px; margin-bottom: 6px">
		<font face="Times New Roman" size="2"><b><u>Description</u></b></font></td>
	</tr>
	<tr>
		<td width=101 valign=top style='width:76.1pt;padding:0in 5.4pt 0in 5.4pt'>
		<p style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'><font face="Times New Roman" size="2">10.1</font></p>
		</td>
		<td width=458 valign=top style='width:343.3pt;padding:0in 5.4pt 0in 5.4pt'>
		<p style='page-break-after:avoid; margin-top:6px; margin-bottom:6px'><font face="Times New Roman" size="2">Form of Executive Performance Stock Unit Award Agreement</font></p></td>
	</tr>
	</table>



<p align=center style='text-align:center'>&nbsp;</p>
<p align=center style='text-align:center'><font face="Times New Roman" size="2">
<b>SIGNATURES<br>&nbsp;</b></font></p>
<p style='text-indent:.5in'><font face="Times New Roman" 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.<br>
&nbsp;</font></p>
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		<p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
  1.0pt;margin-left:0in'><font face="Times New Roman" size="2"><b>&nbsp;</b></font></p>
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		<p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
  1.0pt;margin-left:0in'><font face="Times New Roman" size="2"><b>MENTOR
  CORPORATION</b></font></p></td>
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		<td width=105 valign=top style='width:78.8pt;padding:0in 5.4pt 0in 5.4pt'>
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		<td width=335 style='width:251.4pt;padding:0in 5.4pt 0in 5.4pt'>&nbsp;</td>
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		<td width=198 style='width:148.6pt;padding:0in 5.4pt 0in 5.4pt'><font face="Times New Roman" size="2">Date:&nbsp;
  July 17,
   2006</font></td>
		<td width=105 valign=top style='width:78.8pt;padding:0in 5.4pt 0in 5.4pt'>
		<p align=right style='margin-top:1.0pt;margin-right:0in;
  margin-bottom:1.0pt;margin-left:0in;text-align:right'>
		<font face="Times New Roman" size="2">By:</font></p></td>
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		<p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
  1.0pt;margin-left:0in'><font face="Times New Roman" size="2"><u>/s/LOREN
  L. MCFARLAND&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
		</u></font></p></td>
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		<td width=105 valign=top style='width:78.8pt;padding:0in 5.4pt 0in 5.4pt'>
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  margin-bottom:1.0pt;margin-left:0in;text-align:right'>
		<font face="Times New Roman" size="2">Name:<br>Title:</font></p></td>
		<td width=335 style='width:251.4pt;padding:0in 5.4pt 0in 5.4pt'>
		<p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
  1.0pt;margin-left:0in'><font face="Times New Roman" size="2">Loren
  L. McFarland<br>Vice President, Treasurer and Chief Financial Officer</font></p>
		</td>
	</tr>
</table>




























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<p align=center style='text-align:center'><font face="Times New Roman" size="2">
<b>Exhibit Index</b></font></p>
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			<p style="margin-top: 6px; margin-bottom: 6px"><font face="Times New Roman" 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-top: 6px; margin-bottom: 6px"><font face="Times New Roman" size="2"><b><u>Description</u></b></font></p>
			</td>
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			<td width=97 valign=top style='width:72.8pt;padding:0in 5.4pt 0in 5.4pt'>
			<p style='page-break-after:avoid; margin-top:6px; margin-bottom:6px'>
			<font face="Times New Roman" 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='page-break-after:avoid; margin-top:6px; margin-bottom:6px'>
			<font face="Times New Roman" size="2">Form of Executive Performance Stock Unit Award Agreement</font></p></td>
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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": "06965355"}, "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 - Form 8-K
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)
July 13,
2006
MENTOR CORPORATION
(Exact
name of registrant as specified in its charter)
Minnesota
001-31744
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.
On
July 13, 2006, the Compensation Committee of the Board of Directors of Mentor
Corporation (the "Company")  approved a grant of  45,000 performance
stock units award (the
"PSU") under the Company's 2005 Long Term Incentive Plan to Mr. Joshua Levine,
Chief Executive Officer and President .  The PSU will vest subject to the
attainment of specified targets for "total shareholder return" as defined by the
Compensation Committee from June 24, 2006 to March 31, 2009 and Mr. Levine and
other participants will receive as little as zero shares of the Company's common
stock if less than 85% of the
total shareholder return criteria is met, and up to 200% of the targeted number of
shares if the total shareholder return meets or exceeds 150% of the targeted
criteria.  Mr. Levine was awarded 45,000 PSUs, which at the maximum 200% of
target number of shares could ultimately result in 90,000 units vesting on March
31, 2009 and the issuance of 90,000 shares of Company Common Stock.
Pursuant to the terms of the Plan and the Executive Performance Stock Unit Award
Agreement (the "PSU Award Agreement"), the PSUs shall vest as to an applicable
percentage of the award, based upon, during a period from June 23, 2006 to March 31,
2009, the change in the market price of the Company's common stock on the New
York Stock Exchange relative to the total change in price of the Russell 2500
Growth Index (such quotient, the "TSR Percentage").  If the TSR Percentage is
less than 85%, no portion of the PSU will vest.  If the TSR Percentage meets or
exceeds 150%, then 200% of the targeted PSU number will vest. The PSU will not
vest unless the participant is continuously employed or providing service
through March 31, 2009.  Any unvested portion of the PSU or any interest
therein, generally may not be sold, assigned, pledged or otherwise disposed of,
alienated or encumbered.  The participant shall be entitled to cash dividends
with respect to the shares underlying the PSU but such payments shall not be
made unless the PSU vests.  The participant shall not have any voting rights
with respect to the PSU until the PSU vests.  Any such rights, however, shall
terminate as to any shares subject to the PSU forfeited to the Company (as
described below).
If the participant ceases to be employed or ceases to provide services to the
Company, the participant's unvested PSU shall be forfeited; however, if such
termination is a termination for death, total disability, without cause, or
resignation for
Good Reason, the PSUs shall remain eligible to vest and if the TSR Percentages
are satisfied, shall be paid to the participant.  If there is a Change in
Control Event (as defined in the PSU Award Agreement) prior to March 31, 2009,
the PSUs shall vest as to the greater of: (i) the TSR Percentage was 100% or
(ii) the actual TSR Percentage for the period between June 23, 2006 and the
closing of the Change of Control transaction.
A copy of the form of
PSU Award Agreement is filed as Exhibit 10.1 and the prior description is qualified entirely by such agreement, which
is deemed incorporated by reference herein.
Item 9.01               Financial Statements and
Exhibits.
(c)           Exhibits.
Exhibit
  No.
Description
10.1
Form of Executive Performance Stock Unit Award Agreement
SIGNATURES
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: 
  July 17,
   2006
By:
/s/LOREN
  L. MCFARLAND
Name:
Title:
Loren
  L. McFarland
Vice President, Treasurer and Chief Financial Officer
2
Exhibit Index
Exhibit
  No.
Description
10.1
Form of Executive Performance Stock Unit Award Agreement
3