Advanced Medical Optics (EYE)

FINANCIAL HARDSHIP WITHDRAWALS

10.1 Entitlement to Financial Hardship Withdrawal. A Participant may elect that one or more of his or her Deferral Accounts or a portion thereof be paid as a Financial Hardship Withdrawal or may elect that one or more remaining installments of a Retirement Benefit, Termination Benefit, Death Benefit or Scheduled In-Service Withdrawal or a portion thereof be immediately paid in a lump sum as a Financial Hardship Withdrawal.

10.2 Termination of Deferral Election. Any Deferral Election shall be immediately terminated upon a Financial Hardship Withdrawal.

10.3 Financial Hardship Defined. A Financial Hardship Withdrawal shall be authorized by the Committee only if the Committee, based upon the Participant’s representation and such other facts as are known to the Committee, determines that the withdrawal is on the account of a severe financial hardship resulting from:

(a) An illness or accident of the Participant, the Participant’s spouse, beneficiary, or dependents (as defined in Code Section 152, without regard to Code Section 152(b)(1), (b)(2), and (d)(1)(B));

(b) The loss of the Participant’s property due to casualty;

(c) The need to prevent an imminent eviction of the Participant from his or her principal residence or foreclosure on the mortgage of the Participant’s principal residence;

(d) The need to pay medical expenses previously incurred by the Participant, the Participant’s spouse, beneficiary, or dependents (as defined in subsection (a) above) or expenses necessary for such persons to obtain medical care;

(e) The need to pay the funeral expenses for the Participant’s spouse, beneficiary, or dependents (as defined in subsection (a) above); or

(f) Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant or deemed to be a severe financial hardship by the Secretary of Treasury or the Internal Revenue Service through the publication of revenue rulings, notices, and other documents of general applicability.

It is intended that a Financial Hardship determination shall be consistent with the requirements of Code Section 409A and the Treasury regulations thereunder; provided, however, if the Committee determines that a Participant has not suffered a severe financial hardship for purposes of this Article X, such determination shall be binding and conclusive on the Participant.

10.4 Amount of Financial Hardship Withdrawal. The amount of a Financial Hardship Withdrawal shall be determined by the Committee, based upon the Participant’s representation and such other facts as are known to the Committee, and shall be limited to that amount as is reasonably necessary to satisfy the hardship (including amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the withdrawal). The Committee shall make its determination taking into account the following:

(a) The amount of additional compensation that is available from the termination of a Deferral Election; and

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(b) The amount of funds available (i) from reimbursement or compensation from insurance or otherwise or (ii) through liquidation of Participant’s assets, to the extent the liquidation of such assets would not cause a severe financial hardship.

It is intended that the amount of a Financial Hardship Withdrawal shall be determined in a manner consistent with the requirements of Code Section 409A and the Treasury regulations thereunder. Notwithstanding the foregoing, any determination made by the Committee under this Section 10.4 shall be binding and conclusive on the Participant.

10.5 Source of Financial Hardship Withdrawal. A Financial Hardship Withdrawal shall be paid as follows:

(a) A Financial Hardship Withdrawal prior to Termination of Employment shall be funded in the following order: (i) from remaining installment payments due under Scheduled In-Service Withdrawals beginning with the Scheduled In-Service Withdrawal with the least remaining installment payments, (ii) from Scheduled In-Service Withdrawals not in pay status beginning with the Scheduled In-Service Withdrawal scheduled to begin the earliest, and (iii) from Deferral Accounts beginning with the Deferral Account that would be scheduled to begin the earliest if the Participant had a Termination of Employment.

(b) A Financial Hardship Withdrawal following Termination of Employment shall be funded in the following order: (i) from remaining installment payments due under Scheduled In-Service Withdrawals beginning with the Scheduled In-Service Withdrawal with the least remaining installment payments, (ii) from remaining installment payments due under Retirement Benefits or Termination Benefits, whichever is applicable, beginning with the Retirement Benefit or Termination Benefit with the least remaining installment payments, and (iii) from Retirement Benefits or Termination Benefits, whichever is applicable, not in pay status beginning with the Retirement Benefit or Termination Benefit scheduled to begin the earliest.

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FINANCIAL HARDSHIP WITHDRAWALS

A Participant may request a withdrawal or withdrawals on account of Financial Hardship (as defined in Section 2.19). In such event, the Committee shall determine in its sole discretion whether a Financial Hardship exists. The Committee shall also determine the amount of the permitted withdrawal, which shall not exceed the amount necessary to address the Financial Hardship plus taxes reasonably anticipated as a result of the distribution after taking into account

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the extent to which the Financial Hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship). In the event a withdrawal on account of Financial Hardship is granted, the Participant’s current Deferral Election, if any, shall be terminated and the Participant shall not be permitted to make a Deferral Election until the next Deferral Period or such later time as may be determined by the Secretary of Treasury.