Advanced Medical Optics (EYE)

DEFERRAL ELECTIONS

4.1 Deferral Election. For each Plan Year, an Eligible Employee may make a Deferral Election on a voluntary basis by properly completing and submitting Enrollment Forms during the applicable Open Enrollment Period for the Plan Year subject to the following:

(a) A Deferral Election shall be irrevocable for the Plan Year or, if applicable, the remainder of the Plan Year unless terminated under Section 4.4.

(b) If an Eligible Employee ceases to be an Eligible Employee during a Plan Year, a Deferral Election shall continue in effect for the remainder of the Plan Year unless terminated under Section 4.4.

(c) A Deferral Election may only apply to amounts paid for an Eligible Employee’s services performed after the date he or she properly completes and submits his or her Deferral Election Form.

(d) A Deferral Election shall be subject to the requirements set forth in Sections 4.2 and 4.3 below.

4.2 Maximum Deferral Amount. An Eligible Employee may elect to defer up to one hundred percent (100%) of Base Salary or, in the case of an Eligible Employee who enrolls in the Plan under Section 3.1, up to one hundred percent (100%) of any Bonus earned during the Plan Year. The Committee, in its sole discretion, may change the maximum deferral percentage for a Plan Year or may replace or provide other Deferral Election options, including that an Eligible Employee may elect to defer a specified dollar amount or a percentage of any Bonus earned during the Plan Year but limited to the extent such Bonus exceeds a specified dollar amount. A Deferral Election shall be automatically reduced or adjusted if the Committee determines that such action is necessary or appropriate to meet Federal, State or other applicable tax withholding obligations or, to the extent permitted by Code Section 409A, to pay for benefits or other obligations arising from the Participant’s relationship with the Company.

4.3 Minimum Deferral Amount. An Eligible Employee must elect to defer at least five thousand dollars ($5,000) (or such other amount as may be designated by the Committee) for a Plan Year from either Base Salary or, if eligible, from any Bonus or a combination of Base Salary and Bonus. Compliance with this Section 4.3 shall be determined prior to the beginning of each Plan Year or, in the case of an enrollment pursuant to Section 3.2, by the end of the Open Enrollment Period. If an Eligible Employee’s Deferral Election is stated in the form of a percentage of Base Salary or, if eligible, Bonus, the adequacy of the deferral amount shall be based on the Base Salary and any Bonus earned by the Eligible Employee in the Plan Year preceding the current Plan Year. If it is determined that a Deferral Election does not meet the minimum deferral requirements of this Section after it has been placed in effect for a Plan Year, the Deferral Election, notwithstanding this Section, shall continue in effect for the Plan Year.

4.4 Termination of Deferral Election. An Eligible Employee’s Deferral Election for a Plan Year shall be immediately terminated upon his or her Termination of Employment, a hardship withdrawal under the AMO 401(k) Plan, or a Financial Hardship Withdrawal under

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Article X. An Eligible Employee may request that his or her Deferral Election for a Plan Year be terminated upon Disability or severe financial hardship as defined in Section 10.1; provided, that, in the case of Disability, the Deferral Election is terminated by the 15^th day of the third month following the date the Eligible Employee incurs the Disability. If an Eligible Employee’s Deferral Election is terminated under this Section, any Deferral Election for a subsequent Plan Year shall be made in accordance with Article III.

4.5 Time and Form of Payment. During the applicable Open Enrollment Period, an Eligible Employee shall elect the time and/or form of payment for each Plan Year’s Deferral Account upon payment as a Retirement Benefit, Termination Benefit, Death Benefit or Scheduled In-Service Withdrawal. If an Eligible Employee fails to timely submit a properly completed Distribution Election Form during an Open Enrollment Period, e.g., is automatically enrolled in the Plan pursuant to Section 3.3, the time and form of payment of such Plan Year’s Deferral Account shall default to the time and form of payment as hereinafter provided.

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DEFERRAL ELECTIONS

4.1 Deferral Election. For each Deferral Period, an Eligible Employee may make a Deferral Election on a voluntary basis by properly completing and submitting a Deferral Election Form and Investment Election Form during the Open Enrollment Period for the Deferral Period for which the Deferral Election is effective. A Participant shall not be obligated to make a Deferral Election in each Deferral Period, and (subject to the requirements set forth in Sections 4.2 and 4.3 below) a Participant may change the amount of each future Deferral Election. Once a Deferral Period commences for which a Deferral Election is made, such Deferral Election shall continue for the entire Deferral Period except that it shall terminate on Termination of Employment or as otherwise provided in Section 4.4 or Article XI.

4.2 Maximum Deferral Election. A Participant may elect in the Deferral Election Form to defer up to one hundred percent (100%) of Base Salary and/or one hundred percent

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(100%) of Bonuses earned during the Deferral Period. Prior to each Deferral Period, the Committee, in its sole discretion, may replace or provide other Deferral Election options, including that (i) a Participant may elect to defer a specified dollar amount or a percentage of Bonuses earned during the Deferral Period but limited to the extent such Bonuses exceed a specified dollar amount or (ii) a Participant may elect to defer such amounts as such Participant otherwise would have deferred as “Before Tax Deposits” (as defined in the AMO 401(k) Plan) under the AMO 401(k) Plan, but which may not be deferred under the AMO 401(k) Plan as a result of the limitations imposed under Section 402(g) of the Code. Such Deferral Elections may be made as a Participant’s sole election, or in addition to another Deferral Election. A Deferral Election shall be automatically reduced or adjusted if the Committee determines that such action is necessary or appropriate to meet Federal, State or other applicable tax withholding obligations or to pay for benefits or other obligations arising from the Participant’s relationship with the Company.

4.3 Minimum Deferral Election.

(a) In order for a Deferral Election Form to be valid, the Participant must elect to defer at least five thousand dollars ($5,000) (or such other amount as may be designated by the Committee) in the Deferral Period from either Base Salary or Bonuses or a combination of Base Salary and Bonuses. Thus, Deferral Elections of Base Salary and Bonuses for the same Deferral Period shall be aggregated for the purpose of determining whether the Participant has elected at least the minimum Deferral Election.

(b) In determining whether the Participant has made the minimum Deferral Election, if the amount is stated in the form of a percentage of Base Salary or Bonuses, the adequacy of the deferral shall be based on the Base Salary and Bonuses earned by the Participant in the Plan Year immediately preceding the Deferral Period. The Committee may, in its sole discretion, permit Participants to elect to defer amounts in the form of a percentage based on anticipated Base Salary and Bonuses.

4.4 Termination of Deferral. If it is evident that a Participant has not or will not actually defer the minimum Deferral Election required by Section 4.3 (whether due to Termination of Employment or otherwise) for a Deferral Period, the Committee shall, to extent permitted under Section 409A of the Code, terminate the Deferral Election and distribute the portion of the Participant’s Deferral Account attributable to such Deferral Election in a single lump sum payment with investment earnings or interest credited to the last day of the month preceding distribution at the Fund Rate.