2008 Performance Objective



 EXHIBIT 10.8(f) 
  

	 AMO BONUS PLAN 
	 

 


 2008 PERFORMANCE OBJECTIVE 
  
  
 2008 PERFORMANCE OBJECTIVE 
 The 2008 performance objective for the Bonus Plan is 75% based on Adjusted Operating Income and 25% based on
Revenue for the full year of AMO performance. “Adjusted Operating Income” is defined as sales less cost of goods sold and all basic operating expenses of the business. “Adjusted Operating Income” excludes the impact of charges or
write-offs associated with acquisitions, reorganizations and recapitalizations, unrealized gains or losses on derivative instruments and other periodic or one-time charges. “Revenue” is defined as the total dollar payment for goods and
services that are credited to the income statement over the measurement period. 
 Each segment of the bonus is funded when AMO achieves the threshold levels
of Adjusted Operating Income and Revenue performance, respectively, as indicated below. If the Adjusted Operating Income funding trigger threshold is not met, the 75% element of the plan is not funded. If the Revenue funding trigger threshold is not
met, the 25% element of the plan is not funded. If neither funding trigger threshold is met, no bonuses will be funded. 
  
  
 FUNDING TRIGGER ELEMENTS 
  

																			
	 75% - ADJUSTED OPERATING INCOME
	 	    	 25% - REVENUE
	 
	 Performance Level
	  	 2008
Adj Op Range
Variance
to
Target
	  	Funding %
to Adj Op
Target	 	 	Plan
Funding	 	    	 Performance Level
	  	 2008
Revenue Range
Variance to
Target
	  	Funding %
to Revenue
Target	 	 	Plan
Funding	 
	 Below Threshold
	  	-33.01 mm	  	0	%	 	0.0	%	    	Below Threshold	  	-61.76 mm	  	0	%	 	0.0	%
	 Threshold
	  	-33.0 mm	  	50	%	 	37.5	%	    	Threshold	  	-61.75 mm	  	50	%	 	12.5	%
	 Tier 1
	  	-22.0 mm	  	90	%	 	67.5	%	    	Tier 1	  	-10.00 mm	  	95	%	 	23.8	%
		  	Target	  	100	%	 	75.0	%	    		  	Target	  	100	%	 	25.0	%
	 Maximum
	  	+33.0 mm	  	200	%	 	150.0	%	    	Maximum	  	+185.25 mm	  	200	%	 	50.0	%
		
	 If actual Adjusted Operating Income results fall
 between the performance levels shown above, the
 portion of bonus funding will be
prorated accordingly.
	  
  
  
	    	 If actual Revenue results fall between the Tiers shown
 above, the portion of bonus funding will be prorated
 accordingly.
	  
  
  


  







  
 BONUS POOL
FUNDING 
 At the end of the year, the Chief Executive Officer of Advanced Medical Optics, Inc. may recommend adjustments to the bonus funding levels to
the Organization, Compensation and Corporate Governance Committee (the “Committee”) after consideration of key operating results. When calculating Adjusted Operating Income and Revenue performance for purposes of this Plan, the Committee
has the discretion to include or exclude any or all of the following items: 
  

	 	•	 	 Extraordinary, unusual or non-recurring items 


  

	 	•	 	 Effects of accounting changes 


  

	 	•	 	 Effects of financing activities 


  

	 	•	 	 Expenses for restructuring or productivity initiatives 


  

	 	•	 	 Other non-operating items 


  

	 	•	 	 Spending for acquisitions 


  

	 	•	 	 Effects of divestitures 


  
  
 BONUS POOL DIFFERENTIATION BY BUSINESS UNIT/FUNCTION

 The target bonus pool is determined by performance against Adjusted Operating Income (75%) and Revenue (25%). The factors below will be
considered for allocation of SBU/function bonus pools: 
 CORPORATE STAFFS 
  

	 	•	 	 Corporate Adjusted Operating Income 


  

	 	•	 	 Corporate Revenue 


  

	 	•	 	 Strategic metrics and milestones 


 STRATEGIC
BUSINESS UNITS 
  

	 	•	 	 Business Unit Adjusted Operating Income 


  

	 	•	 	 Business Unit Revenue 


  

	 	•	 	 Strategic metrics 


 RESEARCH &
DEVELOPMENT, WORLD WIDE MANUFACTURING, GLOBAL CUSTOMER SERVICES, IT 
  

	 	•	 	 Strategic metrics and milestones 


  







  
 INDIVIDUAL
BONUS AWARD CALCULATION 
 Target bonus awards are expressed as a percentage of the participant’s year-end annualized base salary. The target
percentages for managers other than corporate officers vary by salary grade: 
  

			
	 SALARY GRADE
	 	 TARGET BONUS

	  5E*	 	  5%
	  6E*	 	10%
	7E	 	15%
	8E	 	20%
	9E	 	25%
	10E	 	30%
	11E	 	35%

 Target percentages or amounts for corporate officers are individually established by the Committee.

 A participant’s actual bonus award may vary above or below the targeted level based on the supervisor’s evaluation of his or her performance in
relation to the predetermined MBOs. Within the funded bonus pool, each participant may receive from 0% to 150% of his or her target bonus amount. 
  

	*	U.S. and Puerto Rico employees only.