Advanced Medical Optics (EYE)

ADDITIONAL BENEFIT PAYMENT RULES

11.1 Constructive Receipt. To the extent permitted under Code Section 409A, the Committee may change any election or option available under the Plan, or the form or timing of any benefit payment, if the Committee determines, based on the advice of counsel or other consultants to the Company, that such a change is necessary or advisable in order to avoid or limit the risk of adverse tax consequences to Participants or Beneficiaries under Code Section 409A or based on application of the doctrine of “constructive receipt” or a similar Federal or State tax principle.

11.2 Postponement of Payment. To the extent permitted under Code Section 409A, if the distribution of a Deferral Account would not be deductible to the Company because of the restrictions imposed by Code Section 162(m) (or any successor provision), such distribution shall be postponed (to the extent necessary) to the first business day of the first Plan Year in which the limitation on deductibility would not apply. Any postponed distribution under this Section shall be credited with interest or investment earnings at the Fund Rate otherwise applicable to the Deferral Account at the time when the distribution was originally scheduled for payment.

11.3 Installment Payments. Installment payments shall be made on the same day of each quarter or year (depending on whether quarterly or annual installments apply) following the initial payment. Investment earnings shall be credited to the date that the Committee selects in its sole discretion for valuation for distribution purposes and the Committee shall make appropriate adjustments to an installment amount to reflect investment gains or losses by dividing the remaining amount of a Participant’s Deferral Account by the remaining number of installments. For purposes of Code Section 409A, the entitlement to a series of installment payments shall be treated as the entitlement to a single payment.

11.4 Transition Election Rule. To the extent permitted under Sections 6.4, 7.4, 8.4, and 9.4, a Participant may change the time and/or form of payment of a Deferral Account by submitting a new Distribution Election Form by such date as is established by the Company but in no event later than December 31, 2008. A change in the time and/or form of payment of a Deferral Account shall only be permitted under this Section if the Deferral Account would not otherwise be paid in 2008 and the change does not cause a Deferral Account to be paid in 2008 that would not otherwise be paid in 2008. Analogous transition election rules are authorized for election changes made during the 2005, 2006, and 2007 Plan Years.

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ADDITIONAL BENEFIT PAYMENT RULES

12.1 Constructive Receipt. The Committee may change any election or option available under the Plan, or the form or timing of any benefit payment, if the Committee determines, based on the advice of counsel or other consultants to the Company, that such a change is necessary or advisable in order to avoid or limit the risk of adverse tax consequences to Participants or Beneficiaries under Section 409A of the Code or based on application of the doctrine of “constructive receipt” or a similar Federal or State tax principle.

12.2 Postponement of Payment. To the extent permitted under Section 409A of the Code, if a distribution of all or part of a Deferral Account would not be deductible to the Company because of the restrictions imposed by Section 162(m) of the Code (or any successor provision), such distribution shall be postponed (to the extent necessary) to the first business day of the first Plan Year in which the limitation on deductibility would not apply. Any postponed distribution under this Section 12.2 shall be credited with interest or investment earnings at the Fund Rate otherwise applicable to the Deferral Account at the time when the distribution was originally scheduled for payment.

12.3 Commencement Date and Investment Crediting for Benefit Payments. Unless the Plan specifically provides otherwise, benefit payments (whether a single lump sum payment or installments) shall commence to a Participant or Beneficiary no later than sixty (60) days from the date of the event, e.g., Termination of Employment or Financial Hardship, that gives rise to such payments. Installment payments shall be made on the same day of each quarter or year (depending on whether quarterly or annual installments apply) following the initial payment. Investment earnings shall be credited to the date that the Committee selects in its sole discretion for valuation for distribution purposes and the Committee shall make appropriate adjustments to reflect investment earnings where benefit payments are to be paid in installments.