Document:

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                                                                   EXHIBIT 10.33

July 20, 2001

Mr. Francis R. Tunney, Jr.
1207 Oxford Lane
Newport Beach, California 92660

Dear Frank:

As a follow-up to your discussions with David Pyott, and your intention to
retire from Allergan on August 23, 2002, this letter agreement (the "Letter
Agreement") outlines your rights, duties and responsibilities to Allergan (the
"Company" or "Allergan") for the period commencing on the effective date of this
Letter Agreement through July 31, 2001 and further outlines the terms and
conditions of your retirement and separation from Allergan.

Your current position of Corporate Vice President, Administration will be
eliminated effective July 31, 2001 and your current duties and responsibilities
will be assumed by others in the company and an existing employee will assume
the position of Secretary. However, you will continue to be employed by the
Company in a consulting capacity until August 23, 2002 (your "Retirement Date"),
on which date you will be separated from the Company by early retirement (your
"Retirement"). Your Retirement Date shall be deemed your "Termination Date" for
all purposes under Allergan's various plans.

You will tender your resignation as a member of the Allergan Executive
Committee, as a member of The Allergan Foundation, and as a director and/or
officer of any Allergan or any Allergan subsidiary or affiliate on which you
serve effective July 31, 2001.

In your consulting capacity you will not be required to report to work. However,
you will be available as needed for David Pyott or Douglas Ingram for legal or
ethics counsel and/or other advice.

This Letter Agreement sets forth all of the agreements, understandings, and
release of all claims relative to your Retirement/Termination from Allergan.

1.   RETIREMENT DATE & PAY

     Effective August 23, 2002, your Retirement Date, your employment with
     Allergan, Inc. and its affiliates will end. You will be paid at your
     current salary rate through your Retirement Date on the same bi-weekly
     schedule as all regular employees.

                             Initialed by:                                     1

                             Thomas J. Burnham:                     Date
                                               --------------------     -------

                             Francis R. Tunney, Jr.:                Date
                                                    ---------------     -------

<PAGE>

2.   MEDICAL/DENTAL & VISION CARE BENEFITS

     Medical/Dental & Vision Care insurance benefits will continue until your
     Retirement Date. Regular employee benefits, including vacation accrual,
     LTD, SIP and ESOP participation, life insurance and personal accident
     coverage will end on your Retirement Date.

3.   VACATION

     You shall continue to earn vacation time at our current accrual rate
     through your Retirement Date. You will receive, on your Retirement Date;
     compensation for all earned but unused vacation up to your Retirement Date.

4.   RETIREMENT & DEFERRED INVESTMENT BENEFITS
     As of your Retirement Date:

          a) Saving & Investment Plan: Various distribution options are
          available from the Allergan Savings & Investment Plan. Please review
          the information previously provided to you or contact the Benefits
          Department. Termination withdrawal forms and tax information will be
          provided at your final exit interview.

          b) Employee Stock Ownership Plan: Various distribution options are
          available for the Employee Stock Ownership Plan. Please review the
          information previously provided to you or contact the Benefits
          Department. A termination withdrawal form will be provided at your
          final exit interview.

          c) Pension Plan: Please reviews the information previously provided to
          you or contacts the Benefits Department.

5.   RETIREE MEDICAL

     When your Allergan Group Medical/Dental & Vision Care coverage ends, you
     will be eligible for Retiree medical.

6.   MANAGEMENT BONUS PLAN

     Should bonuses be paid for 2001, you will be eligible to receive a
     pro-rated Management Bonus for the number of months you were employed as
     Corporate Vice President, Administration in 2001. Bonus payment will be
     made at the normal time in 2002 and will be based on your base compensation
     through July 31, 2001, the bonus percentage payable for employees in your
     grade level (15E), and the performance modifier determined for bonuses paid
     to the corporate staff. You will not be eligible to receive a Management
     Bonus for 2002.

                             Initialed by:                                     2

                             Thomas J. Burnham:                     Date
                                               --------------------     -------

                             Francis R. Tunney, Jr.:                Date
                                                    ---------------     -------

<PAGE>

7.   LONG TERM INCENTIVE PLAN

     You will not be eligible to receive Non-Qualified Stock Options ("NQSOs")
     or Special Incentive Plans granted to other grade level 15E employees as a
     participant in any general granting of NQSOs at any time between the date
     of this agreement and your Retirement Date. You will also not be eligible
     to receive a grant of Restricted Stock ("RS") granted to other grade level
     15E employees as a participant in any general granting of RS at any time
     between the date of this agreement and your Retirement Date.

     Attached hereto is a schedule listing the 109,950 NQSOs granted to you
     prior to the date of this Letter Agreement which remain outstanding. None
     are currently vested. All such outstanding NQSOs granted to you prior to
     the date of this Letter Agreement will continue in effect and vest
     according to the vesting provisions prescribed in the respective NQSO grant
     except as follows: If you sign this Letter Agreement (see Section 13.
     RELEASE OF ALL CLAIMS), as of your Retirement Date all outstanding options
     then held by you which remain unvested will then vest and with respect to
     all NQSOs then held by you the stock option exercise period will expire on
     the earlier of (a) the normal expiration date of the option, or (b) three
     years from your Retirement Date. NQSOs not exercised by the expiration date
     will be forfeited.

8.   EXECUTIVE PERQUISITES

     You have been eligible for certain executive perquisites at your salary
     grade, which will end on your Retirement Date. You may submit perquisite
     expenses eligible for reimbursement, up to your Retirement Date. These
     benefits include:

     -    Tax and financial planning

     -    Club Dues

     -    Auto Allowance

     -    Gasoline Allowance

     -    Club Allowance

     -    Tax and Financial Planning

     Submit eligible expenses on the usual reimbursement form through Tom
     Burnham in Human Resources.

9.   EXPENSES

     As of July 31, 2001, you will incur no expenses on behalf of Allergan nor
     will you have authority to act on behalf of Allergan. Any advances should
     be repaid by your Retirement Date. Any loans must be repaid in accordance
     with their terms.

                             Initialed by:                                     3

                             Thomas J. Burnham:                     Date
                                               --------------------     -------

                             Francis R. Tunney, Jr.:                Date
                                                    ---------------     -------

<PAGE>

10.  COMPANY INFORMATION

     You acknowledge that during the term of your employment you had, and that
     during the term of this Letter Agreement and subsequent thereto you may
     have, access to information confidential and/or proprietary to Allergan
     including but not limited to, trade secrets, technical data or know-how
     relating to investigational or marketed products, research, or
     manufacturing processes, information concerning the skills and
     qualifications of Allergan employees, or any other information of a
     business, financial or technical nature (not already publicly available in
     a reasonably integrated form), and that such information is and will remain
     at all times the exclusive property of Allergan. You will maintain such
     information in confidence and will not disclose such information to anyone
     else, nor will you use it for your own benefit or for the benefit of
     others, except as expressly directed in writing by Allergan during the term
     of this Letter Agreement or at any time thereafter.

11.  COMPANY PROPERTY

     You must return all Company property on your Retirement Date. This
     includes, but is not limited to, credit, phone and travel cards, building
     and card keys, office equipment such as calculators, dictation equipment,
     computers, modems, and all other items which are company property. This
     also includes any report, customer list, price list, files, notebooks or
     other materials pertaining to the company's business which are in your
     possession or under your control.

12.  CHANGE OF CONTROL

     This agreement voids and supercedes any Change of Control agreement
     previously executed.

13.  RELEASE ALL CLAIMS

     You expressly understand that you are remaining on the payroll until August
     23, 2002 because you have agreed to the following release (and, at the
     request of the Company, will re-execute this Release on August 23, 2002 to
     cover any activity between the date of this Letter Agreement and August 23,
     2002).

     A. Applicable to All Released Employees: For the sum of your salary
     continuation, (gross pay, less standard withholding and authorized
     deductions) based upon your base salary at the termination date and for the
     acceleration of your NQSO's and for other good and valuable consideration,
     receipt of which is hereby acknowledged, I, Francis R. Tunney, Jr., hereby
     release and discharge Allergan, Inc. and each and every one of its
     affiliates, officers, directors, agents, employees, representatives, and
     lawyers (collectively, the "Releasees") from any and all claims, debts,
     wages, liabilities, promises, contracts, agreements, obligations,
     undertakings and causes of action whatsoever, whether known or unknown,
     arising out of, or in any way connected with, any transaction, event, act
     or omission occurring on or prior to the date of this Letter Agreement.

                             Initialed by:                                     4

                             Thomas J. Burnham:                 Date
                                               ----------------     -------

                             Francis R. Tunney, Jr.:            Date
                                                    -----------     -------

<PAGE>

13.  RELEASE ALL CLAIMS - (Continued)

     IT IS MY INTENTION IN EXECUTING THIS AGREEMENT THAT I WAIVE AND RELINQUISH
     ALL RIGHTS AND BENEFITS I HAVE OR MAY HAVE PURSUANT TO THE PROVISIONS OF
     SECTION 1542 OF THE CALIFORNIA CIVIL CODE, WHICH PROVIDES AS FOLLOWS:

         "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
         NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE
         RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
         SETTLEMENT WITH THE DEBTOR."

     Without limiting the foregoing, I acknowledge and agree that the benefits
     provided to me in this Agreement supersede and replace any benefits that
     might be owed to me under California, or any other state or federal law as
     a result of my employment relationship with Allergan and the termination of
     my employment.

     Furthermore, I agree that if I am entitled to Workers' Compensation
     benefits as a result of a work-related injury incurred during my employment
     with Allergan, for which no claim presently is pending, Allergan may offset
     from the above-quoted severance pay any such Workers' Compensation benefits
     to be paid in lieu of salary in a pro rata amount so that my full
     compensation for 12 months is equal to and does not exceed my base salary
     for 12 months as of the date of this Letter Agreement.

     I have read the foregoing release and understand, accept and agree to its
     contents and sign this Letter Agreement voluntarily without coercion and
     with full understanding that I am releasing and waiving any and all claims
     that I have or might have against Allergan and/or any of the Releasees. I
     expressly understand that I am receiving the above sum of severance pay and
     other consideration because I have executed this Letter Agreement.

     B. Applicable to Released Employees Covered by the Older Workers Benefit
     Protection Act (Age 40 or older):

     You have forty-five (45) days to consider this Letter Agreement before you
     sign it. You may sign it earlier if you so wish, but the decision is
     entirely yours. Once you sign this Letter Agreement, you have seven (7)
     days after signing to revoke it. To revoke this Letter Agreement, please
     contact your Human Resources representative, Thomas J. Burnham, in writing.

     You have the right to consult with an attorney of your own choosing and at
     your own expense prior to executing this Letter Agreement.

     This Letter Agreement, among other things, waives rights that you may have
     under the Age Discrimination in Employment Act (the "ADEA"). Nothing in
     this Letter Agreement waives rights or claims under the ADEA that may arise
     after the date that this Letter Agreement is executed.

                             Initialed by:                                     5

                             Thomas J. Burnham:                 Date
                                               ----------------     -------

                             Francis R. Tunney, Jr.:            Date
                                                    -----------     -------

<PAGE>

13.  RELEASE ALL CLAIMS - (Continued)

     I declare under penalty of perjury under the laws of the State of
     California that this Section 13.B. is true and correct. Your initials below
     and signature on the last page of this Letter Agreement acknowledges that
     you have read this section and that you agree to these terms.

14.  CONSULTATION WITH AN ATTORNEY

     You have the right to consult with an attorney regarding the consequences
     of this Letter Agreement and release and I encourage you to do so.

15.  CONFIDENTIALITY

     Neither party shall reveal or discuss the contents of this Letter
     Agreement, unless compelled to do so in order to enforce the terms hereof
     or required to do so by law. You understand and agree that unauthorized
     disclosure of the terms and conditions of this Letter Agreement to a third
     party will result in the termination of all non-ERISA benefits and payments
     contained herein.

16.  SAVINGS CLAUSE

     If any term of this Letter Agreement is declared void or is otherwise
     unenforceable, it shall not alter the enforceability or validity of the
     remaining paragraphs and terms of this Letter Agreement and release, all of
     which shall remain fully binding on the parties.

17.  CONTROLLING LAW

     Should any dispute arise as to the interpretation, application or breach of
     this Letter Agreement, the resolution of such dispute shall be governed by
     the laws of the State of California.

18.  ARBITRATION

     Any future dispute related to this Letter Agreement, shall be resolved by
     reference pursuant to Section 638 of the California Code of Civil Procedure
     and all disputes shall be resolved by binding arbitration before the
     Judicial Arbitration and Mediation Service ("JAMS") in Orange County,
     California. Attorney's fees and costs shall be awarded to the party
     prevailing in the dispute and any resolution, opinion, or order of JAMS may
     be entered as a judgment of the Superior Court and appealed to the
     appropriate appellate court pursuant to Section 644 of the California Code
     of Civil Procedure. JAMS will control any discovery, rights, or privileges,
     the hearing dates and all other matters connected therewith.

                             Initialed by:                                     6

                             Thomas J. Burnham:                 Date
                                               ----------------     -------

                             Francis R. Tunney, Jr.:            Date
                                                    -----------     -------

<PAGE>

19.  ENTIRE AGREEMENT

     This Letter Agreement is the entire agreement concerning the benefits and
     obligations relating to your rights, duties and responsibilities from July
     31, 2002 and your Retirement from the Company and supersedes all prior
     writings and discussions and there are no representations, warranties or
     commitments other than those set forth in this Letter Agreement. This
     Letter Agreement may be amended only in writing, signed by both parties.

Please acknowledge your agreement with the terms outlined in this Letter
Agreement by signing below and by initialing each preceding page as indicated.

Sincerely,

/s/ Thomas J. Burnham
Thomas J. Burnham
Vice President Human Resources

Agreed to and accepted by  /s/ Francis R. Tunney, Jr.           July 20, 2001
                           --------------------------           -------------
                           Francis R. Tunney, Jr.                    Date

                                                                               7<PAGE>

                                                                   EXHIBIT 10.34

                               RETENTION AGREEMENT

                  This Retention Agreement (the "Agreement") is made and entered
into as of January 18, 2002, by and among Advanced Medical Optics, Inc., a
Delaware corporation (the "Company"), Allergan, Inc., a Delaware corporation
("Allergan"), and James V. Mazzo ("Executive").

                                    RECITALS

                  WHEREAS, the Company is a wholly-owned subsidiary of Allergan.

                  WHEREAS, Executive is employed by, and receives compensation
and benefits from, Allergan.

                  WHEREAS, during the Term of the Agreement, Executive shall
additionally be employed as the Chief Executive Officer of the Company, without
entitlement to any additional compensation or benefits from the Company for such
employment.

                  WHEREAS, the parties anticipate the consummation of the
spinoff transactions approved by the Board of Directors of Allergan by
resolutions approved on January 18, 2002 (the consummation of such transactions
referred to herein as the "Spinoff").

                  NOW, THEREFORE, in consideration of the foregoing recitals and
the respective covenants and agreements of the parties contained herein, the
parties agree as follows:

                                   ARTICLE 1.

                              EFFECTIVE DATE; TERM

         1.1 Effective Date. This Agreement shall become effective as of the
date herein above written (the "Effective Date").

         1.2 Term of Agreement. The term of this Agreement shall commence on the
Effective Date and shall continue through December 31, 2002 (the "Term"), unless
terminated earlier in accordance with Article 2 of this Agreement, in which case
the Term shall expire upon such earlier termination. Upon the expiration of the
Term, Executive's employment with the Company hereunder shall terminate.

         1.3 Concurrent Employment with Allergan. Effective as of the Effective
Date, Executive's employment with the Company as the Chief Executive Officer of
the Company shall commence. During the Term, Executive shall continue to be
employed by Allergan and shall continue to receive his compensation and benefits
from Allergan, in accordance with the terms of his employment with Allergan as
it existed immediately prior to the Effective Date. During the Term, Executive
shall not be entitled to receive any additional compensation or benefits from
the Company for his employment with the Company.

<PAGE>

                                   ARTICLE 2.

                         EARLY TERMINATION OF AGREEMENT

         2.1 Termination of Agreement. Notwithstanding the provisions of Article
1, if the Spinoff occurs on or before December 31, 2002, then, upon the Spinoff,
the Term shall immediately end, this Agreement shall immediately terminate and
all rights and obligations hereunder shall immediately terminate.

         2.2 Effectiveness of Employment Agreement. In the event the Spinoff
occurs on or before December 31, 2002, then upon the Spinoff and the concurrent
termination of this Agreement pursuant to Section 2.1, above, the Employment
Agreement by and between the Company and Executive dated as of January 18, 2002
(the "Employment Agreement"), shall immediately become effective.

                                   ARTICLE 3.

                                RETENTION PAYMENT

         3.1 Retention Payment. Allergan shall pay Executive a cash lump sum (a
"Retention Payment") in the event of the circumstances described in Section 3.2,
3.3 or 3.4, in such amount as is determined below in this Article 3; provided,
however, that in no event shall Executive be paid more than one Retention
Payment under this Article 3.

         3.2 Pre-Spinoff Sale without Termination of Employment. If there is a
Pre-Spinoff Sale, and Executive is employed by Allergan on the date of the
Pre-Spinoff Sale, and Executive is employed with Allergan on the date that is 30
days after the date of the Pre-Spinoff Sale, then Allergan shall pay Executive a
Retention Payment in an amount equal to three times the Executive's
Compensation.

         3.3 Pre-Spinoff Sale with Termination of Employment. If there is a
Pre-Spinoff Sale, and either (a) Executive is employed by Allergan on the date
of the Pre-Spinoff Sale, and Executive's employment with Allergan is terminated
in a Qualifying Termination, or is terminated by Executive without Good Reason,
within 30 days after the date of the Pre-Spinoff Sale, or (b) Executive's
employment with Allergan is terminated in a Qualifying Termination during the
Term and prior to the date of such Pre-Spinoff Sale, then Allergan shall pay
Executive a Retention Payment in an amount equal to six times the Executive's
Compensation, plus a lump sum payment equal to Executive's accrued unused
vacation.

         3.4 No Pre-Spinoff Sale on or before December 31, 2002. If neither the
Spinoff nor a Pre-Spinoff Sale occurs on or before December 31, 2002, and if:
(a) Executive is employed by Allergan on December 31, 2002, and Executive's
employment with Allergan is terminated in a Qualifying Termination, or is
terminated by Executive without Good Reason, on or before January 30, 2003, or
(b) Executive's employment with Allergan is terminated in a Qualifying
Termination prior to December 31, 2002, then Allergan shall pay Executive a
Retention Payment in an amount equal to three times the Executive's
Compensation.

         3.5 Compensation. "Compensation" means Executive's Base Salary under
the Employment Agreement plus a 100% bonus at a target of 75% of such Base
Salary.

                                       2
<PAGE>

         3.6 General Release. Notwithstanding anything else in this Agreement,
the obligation of Allergan to pay Executive a Retention Payment (whether or not
such obligation is delegated to the Company pursuant to Section 8.3, below)
shall be conditioned on Executive's execution of a general release of claims in
the form required by Allergan. In addition, in any situation in which
Executive's employment with Allergan terminates, Allergan will continue to honor
its agreement to repatriate Executive to the United States in accordance with
Executive's current agreements with Allergan and Allergan's standard
repatriation policies.

                                   ARTICLE 4.

                   DEFINITIONS APPLICABLE TO RETENTION PAYMENT

         4.1 Spinoff. For purposes of this Agreement, "Spinoff" shall mean the
consummation of the spinoff transaction approved by the Board of Directors of
Allergan by resolutions adopted on January 18, 2002.

         4.2 Pre-Spinoff Sale. For purposes of this Agreement, "Pre-Spinoff
Sale" shall mean the consummation of any of the following transactions during
the Term:

                  (a) The sale, transfer, exchange or other disposition of all
or substantially all of the assets of the Company or of one or both of the
businesses which are contemplated to comprise the Company as of the Spinoff;

                  (b) The sale, transfer, exchange or other disposition of a
majority of the equity interest in the Company other than to an affiliate of
Allergan; or

                  (c) A merger, consolidation or reorganization involving the
Company, in which an entity which is not an affiliate of Allergan or the Company
acquires a majority equity interest in the Company and in which transaction the
Company is not the surviving corporation.

Notwithstanding the foregoing, the Spinoff shall not be treated as a Pre-Spinoff
Sale, nor will a Change in Control of Allergan, as defined in Allergan's current
change in control agreements.

         4.3 Qualifying Termination. For purposes of this Agreement, a
"Qualifying Termination" shall mean termination of Executive's employment with
Allergan during the Term due to a termination of Executive's employment either
(i) by Allergan without Cause, (ii) by Executive for Good Reason (a "Voluntary
Resignation for Good Reason"), (iii) by reason of Executive's death, or (iv) by
reason of Executive's physical or mental disability or infirmity which, in the
opinion of a competent physician selected by Allergan's Board of Directors,
renders Executive unable to perform his duties for more than 120 days during any
180-day period.

                  (a) For purposes of this Agreement, "Cause" shall be limited
to only three types of events:

                           (i) the willful and continued refusal of Executive to
         comply with a lawful, written instruction of Allergan's Board of
         Directors so long as the instruction is

                                       3
<PAGE>

         consistent with the scope and responsibilities of Executive's position
         and Executive has failed to end such willful and continued refusal
         within fifteen (15) business days of written notice thereof from
         Allergan;

                           (ii) willful misconduct by Executive which results in
         a material financial loss to Allergan (or to any of its affiliated
         companies) or material injury to its public reputation (or to the
         public reputation of any of its affiliated companies); or

                           (iii) Executive's conviction of any felony.

Notwithstanding the foregoing, no act or failure to act on Executive's part
shall be deemed "willful" unless done, or omitted to be done, by Executive not
in good faith and without reasonable belief that the action or omission was in
the best interest of Allergan.

                  (b) A Voluntary Resignation for Good Reason shall require
Executive to provide at least sixty (60) days' written notice to Allergan in the
form of a notice of resignation (the "Notice of Resignation"). The Notice of
Resignation shall set forth the circumstances which in Executive's view
constitute Good Reason hereunder and shall be delivered to Allergan within sixty
(60) days of the occurrence of the applicable Good Reason event. For purposes of
this Agreement, "Good Reason" means:

                           (i) Executive's overall compensation is reduced or
         adversely modified in any material respect, or

                           (ii) Executive's duties are materially changed.

For purposes of subsection (ii), above, Executive's duties shall be considered
to have been "materially changed" if, without Executive's express written
consent, there is any substantial diminution or adverse modification in
Executive's overall position, responsibilities or reporting relationship, or if,
without Executive's express written consent, Executive's job location is
transferred to a site more than fifty (50) miles away from his or her then
current place of employment (except for a repatriation of Executive in 2003 back
to the United States). During the period of notice set forth above in this
subsection (b), Allergan shall be afforded reasonable opportunity to establish,
to the reasonable satisfaction of Executive, that the Good Reason circumstances
cited in Executive's Notice of Resignation were not present on the date of such
Notice of Resignation, or are no longer present, in which case Executive's
employment shall not terminate due to a Voluntary Resignation for Good Reason.
Notwithstanding the foregoing, the termination of Executive's employment with
Allergan in accordance with the Employment Agreement, and Executive's employment
under the Employment Agreement, shall not constitute "Good Reason."

                                       4
<PAGE>

                                   ARTICLE 5.

                                  EXCISE TAXES

         5.1 Indemnification for Excise Tax. In the event that Executive becomes
entitled to receive a Retention Payment hereunder, and such payment or any other
benefits or payments (including transfers of property, within the meaning of
Section 280G of the Internal Revenue Code of 1986, as amended (the "Code") (or
any successor thereto) or the regulations thereunder) that Executive receives,
or is to receive, pursuant to this Agreement or any other agreement, plan or
arrangement with the Company or Allergan in connection with a Pre-Spinoff Sale
of the Company ("Other Benefits") shall be subject to the tax imposed pursuant
to Section 4999 of the Code (or any successor thereto) or any comparable
provision of state law (an "Excise Tax"), the following rules shall apply:

                  (a) Allergan shall pay to Executive, within 30 days after a
Qualifying Termination, an additional amount (the "Gross-Up Payment") such that
the net amount retained by Executive, after deduction of any Excise Tax with
respect to the Retention Payment or the Other Benefits and any federal, state
and local income tax, employment tax and Excise Tax upon such Gross-Up Payment,
is equal to the amount that would have been retained by Executive if such Excise
Tax were not applicable, as determined by the accounting firm (the "Auditors")
serving as the Company's independent auditors immediately prior to the
Pre-Spinoff Sale. It is intended that Executive shall not suffer any loss or
expense resulting from the assessment of any Excise Tax or the Company's
reimbursement of Executive for payment of any such Excise Tax.

                  (b) For purposes of determining whether any of the Retention
Payment or Other Benefits will be subject to an Excise Tax and the amount of
such Excise Tax, (i) any other payment or benefits received or to be received by
Executive in connection with a Pre-Spinoff Sale of the Company or Executive's
termination of employment (whether pursuant to the terms of this Agreement or
any other plan, arrangement or agreement with the Company or Allergan, any
person whose actions result in a Pre-Spinoff Sale or any person affiliated with
the Company or Allergan or such person) shall be treated as "parachute payments"
within the meaning of Section 280G(b)(2) of the Code (or any successor thereto),
and all "excess parachute payments" within the meaning of Section 280G(b)(1) of
the Code (or any successor thereto) shall be treated as subject to the Excise
Tax, unless in the opinion of tax counsel selected by the Auditors and
acceptable to Executive such other payments or benefits (in whole or in part) do
not constitute parachute payments, or such excess parachute payments (in whole
or in part) represent reasonable compensation for services actually rendered
within the meaning of Section 280G(b)(4) of the Code (or any successor thereto),
(ii) the amount of the Retention Payment and Other Benefits which shall be
treated as subject to the Excise Tax shall be equal to the lesser of (A) the
total amount of the Retention Payment or Other Benefits or (B) the amount of
excess parachute payments within the meaning of Sections 280G(b)(1) and (4) of
the Code (or any successor or successors thereto), after applying clause (i),
above, and (iii) the value of any non-cash benefits or any deferred payment or
benefit shall be determined by the Company's independent auditors in accordance
with the principles of Sections 280G(d)(3) and (4) of the Code (or any successor
or successors thereto).

                  (c) For purposes of determining the amount of the Gross-Up
Payment, Executive shall be deemed to pay federal income taxes at the highest
marginal rate of federal

                                       5
<PAGE>

income taxation in the calendar year in which the Gross-Up Payment is to be made
and state and local income taxes at the highest marginal rates of taxation in
the state and locality of Executive's residence on the date of Executive's
Qualifying Termination, net of the maximum reduction in federal income taxes
which could be obtained from deduction of such state and local taxes.

                  (d) In the event that the Excise Tax is subsequently
determined to be less than the amount taken into account hereunder at the time
of Executive's Qualifying Termination, Executive shall repay to Allergan (or the
Company, as the case may be), at the time that the amount of such reduction in
Excise Tax is finally determined, the portion of the Gross-Up Payment
attributable to such reduction plus interest on the amount of such repayment at
the rate provided in Section 1274(b)(2)(B) of the Code (or any successor
thereto) (the "Applicable Rate"). In the event that the Excise Tax is determined
to exceed the amount taken into account hereunder at the time of such Qualifying
Termination (including by reason of any payment the existence or amount of which
cannot be determined at the time of the Gross-Up Payment), Allergan shall make
an additional Gross-Up Payment in respect of such excess (plus interest,
determined at the Applicable Rate, payable with respect to such excess) at the
time that the amount of such excess is finally determined.

                                   ARTICLE 6.

                              MITIGATION OR OFFSET

                  (a) Executive shall not be required to seek other employment
(in the event of a termination of employment with the Company) or to reduce any
amount payable to him under Article 3 or 5 hereof, and no such amount shall be
reduced on account of any compensation received by Executive from other
employment which may be obtained in the event of a termination of employment
with the Company. However, Allergan's obligation to pay any amount under this
Agreement shall be reduced by any amount owed by the Executive to Allergan or
the Company.

                                   ARTICLE 7.

                              RESTRICTIVE COVENANTS

         7.1 Confidentiality Covenant. Executive hereby agrees that Executive
shall not, directly or indirectly, disclose or make available to any person,
firm, corporation, association or other entity for any reason or purpose
whatsoever, any Confidential Information (as hereinafter defined). For a period
of five (5) years after the termination of this Agreement, Executive agrees
that, upon termination of Executive's employment with the Company, all
Confidential Information in Executive's possession that is in written or other
tangible form (together with all copies or duplicates thereof, including
computer files) shall be returned to the Company and shall not be retained by
Executive or furnished to any third party, in any form except as provided
herein; provided, however, that Executive shall not be obligated to treat as
confidential, or return to the Company copies of any Confidential Information
that (i) was publicly known at the time of disclosure to Executive, (ii) becomes
publicly known or available thereafter other than by any means in violation of
this Agreement or any other duty owed to the Company by any person or entity, or
(iii) is lawfully disclosed to Executive by a third party. As used in this
Agreement, the

                                       6
<PAGE>

term "Confidential Information" means: information disclosed to Executive or
known by Executive as a consequence of or through Executive's relationship with
the Company, about the products, research and development efforts, regulatory
efforts, manufacturing processes, customers, employees, business methods, public
relations methods, organization, procedures or finances, including, without
limitation, information of or relating to customer lists, of the Company and its
affiliates.

         7.2 Solicitation of Employees. Executive hereby agrees that during the
Term, Executive shall not, either on Executive's own account or jointly with or
as a manager, agent, officer, employee, consultant, partner, joint venturer,
owner or stockholder or otherwise on behalf of any other person, firm or
corporation, directly or indirectly solicit or attempt to solicit away from the
Company any of its officers or employees or offer employment to any person who,
on or during the six (6) months immediately preceding the date of such
solicitation or offer, is or was an officer or employee of the Company;
provided, however, that a general advertisement to which an employee of the
Company responds shall in no event be deemed to result in a breach of this
Section 7.2.

         7.3 Enforcement.

                  (a) The parties intend that the provisions of this Article 7
shall be fully enforceable as set forth herein. To the extent that any court of
competent jurisdiction finds that any such provision is enforceable by reason of
its duration or scope, the parties agree that it shall be enforced insofar as it
may be enforced within the limits of the law of that jurisdiction, but that the
Agreement as a whole shall be unaffected elsewhere.

                  (b) Executive agrees that it would be difficult to compensate
Allergan or the Company fully for damages for any violation of the provisions of
this Agreement, including, without limitation, the provisions of this Article 7.
Accordingly, Executive specifically agrees that Allergan and the Company and
their respective successors and assigns shall be entitled to temporary and
permanent injunctive relief to enforce the provisions of this Agreement. This
provision with respect to injunctive relief shall not, however, diminish the
right of Allergan or the Company to claim and recover damages in addition to
injunctive relief.

                  (c) If Executive breaches any provision of Article 7, the
rights of Executive (or Executive's estate) to a benefit under the Agreement,
and the rights of a surviving spouse or any other person to a benefit under the
Agreement, shall be forfeited, unless the Company's Board of Directors (the
"Board") determines that such activity is not detrimental to the best interests
of the Company and its affiliates. Such forfeiture shall be in addition to any
other remedy of the Company under the Agreement or at law and in equity with
respect to such breach. However, if Executive ceases such activity and notifies
the Board of this action, Executive's (or Executive's estate's) right to receive
a benefit, and any right of a surviving spouse or any other person to a benefit,
may be restored within sixty (60) days of said notification, unless the Board in
its sole discretion determines that the prior activity has caused serious injury
to the Company and its affiliates, which determination shall be final and
conclusive.

                                       7
<PAGE>

                                   ARTICLE 8.

                               GENERAL PROVISIONS

         8.1 Entire Agreement and Modification. This Agreement constitutes the
entire agreement between the parties relating to the employment of the Executive
by the Company during the Term or relating to retention payments with respect to
the Term, and there are no representations, warranties or commitments, other
than those set forth herein, which relate to such subject matter. This Agreement
may be amended or modified only by an instrument in writing executed by all of
the parties hereto.

         8.2 Successors.

                  (a) This Agreement is personal to Executive, and without the
prior written consent of Allergan and the Company shall not be assignable by
Executive other than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by Executive's legal
representatives.

                  (b) The rights and obligations of Allergan and the Company
under this Agreement shall inure to the benefit of and shall be binding upon
their respective successors and assigns.

         8.3 Delegation of Payment Obligations. Allergan may, in its sole
discretion, delegate to the Company any or all of the obligations of Allergan to
make payments to Executive hereunder. To the extent that The Company actually
makes such payments, such actions shall be in satisfaction of the obligations of
Allergan hereunder. To the extent that The Company does not make such payments,
such payments shall remain the obligation of Allergan hereunder.

         8.4 No Waiver. No waiver, by conduct or otherwise, by any party of any
term, provision, or condition of this Agreement, shall be deemed or construed as
a further or continuing waiver of any such term, provision, or condition nor as
a waiver of a similar or dissimilar condition or provision at the same time or
at any prior or subsequent time.

         8.5 Remedies Not Exclusive. No remedy conferred by any of the specific
provisions of this Agreement is intended to be exclusive of any other remedy,
except as expressly provided in this Agreement, and each and every remedy shall
be cumulative and shall be in addition to every other remedy given hereunder or
now or hereafter existing in law or in equity or by statute or otherwise. No
failure by any party to exercise, and no delay in exercising, any rights shall
be construed or deemed to be a waiver thereof, nor shall any single or partial
exercise by any party preclude any other or future exercise thereof or the
exercise of any other right.

         8.6 Notices. Any notice or communications required or permitted to be
given to the parties hereto shall be delivered personally, sent via facsimile or
via an overnight courier service or be sent by United States registered or
certified mail, postage prepaid and return receipt requested, and addressed or
delivered as follows, or as such other addresses the party addressed may have
substituted by notice pursuant to this Section:

                  (a) If to the Company:           Advanced Medical Optics, Inc.
                                                   2525 Dupont Drive
                                                   Irvine, CA 92612
                                                   Attn: General Counsel

                                       8
<PAGE>

                  (b) If to Allergan:              Allergan,  Inc.
                                                   2525 Dupont Drive
                                                   Irvine, CA 92612
                                                   Attn: General Counsel

                  (c) If to Executive:             James V. Mazzo
                                                   P.O. Box 19648
                                                   Irvine, CA 92623

Such notices or communications shall be deemed given upon delivery or, if
earlier, one (1) day after being sent by overnight courier or three (3) days
after being mailed by registered or certified mail, as provided above.

         8.7 Governing Law. This Agreement is made and entered into in the State
of California, and shall be governed by the laws of California, without giving
effect to the principles of conflict of laws thereof.

         8.8 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which shall
together constitute one Agreement.

         8.9 Captions. The captions of this Agreement are inserted for
convenience and do not constitute a part hereof.

         8.10 Severability. In case any one or more of the provisions contained
in this Agreement shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision of this Agreement, but this Agreement shall
be construed as if such invalid, illegal or unenforceable provision had never
been contained herein and there shall be deemed substituted for such invalid,
illegal or unenforceable provision such other provision as will most nearly
accomplish the intent of the parties to the extent permitted by the applicable
law. In case this Agreement, or any one or more of the provisions hereof, shall
be held to be invalid, illegal or unenforceable within any governmental
jurisdiction or subdivision thereof, this Agreement or any such provision
thereof shall not as a consequence thereof be deemed to be invalid, illegal or
unenforceable in any other governmental jurisdiction or subdivision thereof.

         8.11 Survival. The representations and warranties contained herein and
the Executive's obligations under Article 7 shall survive termination of the
Term and of the Agreement as provided herein.

         8.12 Dispute Resolution.

                  (a) Any controversy or dispute between the parties involving
the construction, interpretation, application or performance of the terms,
covenants, or conditions of this Agreement or in any way arising under this
Agreement (a "Covered Dispute") shall, on demand

                                       9
<PAGE>

by either of the parties by written notice served on the other party in the
manner prescribed in Section 8.6 hereof, be referenced pursuant to the
procedures described in California Code of Civil Procedure ("CCP") Sections 638,
et seq., as they may be amended from time to time (the "Reference Procedures"),
to a retired Judge from the Superior Court for the County of Los Angeles or the
County of Orange for a decision.

                  (b) The Reference Procedures shall be commenced by either
party by the filing in the Superior Court of the State of California for the
County of Orange of a petition pursuant to CCP Section 638(1) (a "Petition").
Said Petition shall designate as a referee a Judge from the list of retired Los
Angeles County and Orange County Superior Court Judges who have made themselves
available for trial or settlement of civil litigation under said Reference
Procedures. If the parties hereto are unable to agree on the designation of a
particular retired Los Angeles County or Orange County Superior Court Judge or
the designated Judge is unavailable or unable to serve in such capacity, request
shall be made in said Petition that the Presiding or Assistant Presiding Judge
of the Orange County Superior Court appoint as referee a retired Los Angeles
County or Orange County Superior Court Judge from the aforementioned list.

                  (c) Except as hereafter agreed by the parties, the referee
shall apply the law of California in deciding the issues submitted hereunder.
Unless formal pleadings are waived by agreement among the parties and the
referee, the moving party shall file and serve its complaint within 15 days from
the date a referee is designated as provided herein, and the other party shall
have 15 days thereafter in which to plead to said complaint. Each of the parties
reserves its respective rights to allege and assert in such pleadings all
claims, causes of action, contentions and defenses which it may have arising out
of or relating to the general subject matter of the Covered Dispute that is
being determined pursuant to the Reference Procedures. Reasonable notice of any
motions before the referee shall be given, and all matters shall be set at the
convenience of the referee. Discovery shall be conducted as the parties agree or
as allowed by the referee. Unless waived by each of the parties, a reporter
shall be present at all proceedings before the referee.

                  (d) It is the parties' intention by this Section 8.11 that all
issues of fact and law and all matters of a legal and equitable nature related
to any Covered Dispute will be submitted for determination by a referee
designated as provided herein. Accordingly, the parties hereby stipulate that a
referee designated as provided herein shall have all powers of a Judge of the
Superior Court including, without limitation, the power to grant equitable and
interlocutory and permanent injunctive relief.

                  (e) Each of the parties specifically (i) consents to the
exercise of jurisdiction over his or her person by a referee designated as
provided herein with respect to any and all Covered Disputes; and (ii) consents
to the personal jurisdiction of the California courts with respect to any appeal
or review of the decision of any such referee.

                  (f) Each of the parties acknowledges that the decision by a
referee designated as provided herein shall be a basis for a judgment as
provided in CCP Section 644 and shall be subject to exception and review as
provided in CCP Section 645.

         8.13 Attorneys' Fees. If any legal action or other proceeding is
brought for the enforcement of the Agreement, or because of an alleged dispute,
breach or default in connection

                                       10
<PAGE>

with any of the provisions of the Agreement, the successful or prevailing party
shall be entitled to recover attorneys' fees and other expenses and costs
incurred in that action or proceeding, in addition to any other relief that may
be granted.

                [Remainder of this page intentionally left blank]

                                       11
<PAGE>

         8.14 Executive's Acknowledgment. Executive acknowledges (a) that he has
consulted with or has had the opportunity to consult with independent counsel of
his own choice concerning this Agreement and has been advised to do so by
Allergan and the Company, and (b) that he has read and understands the
Agreement, is fully aware of its legal effect, and has entered into it freely
based on his own judgment.

                  IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first above written.

                                                   "COMPANY"

                                   Advanced Medical Optics, Inc., a Delaware
                                   corporation

                                   By: /s/ William R. Grant
                                      -----------------------------------------
                                      Title:
                                            -----------------------------------

                                   Date:  January 18, 2002

                                                   "ALLERGAN"

                                   Allergan, Inc., a Delaware corporation

                                   By: /s/ David E. I. Pyott
                                      -----------------------------------------
                                      Title: Chairman, President & CEO
                                            -----------------------------------

                                   Date:  January 18, 2002

                                                   "EXECUTIVE"

                                   By: /s/ James V. Mazzo
                                      -----------------------------------------
                                                 James V. Mazzo

                                      -----------------------------------------
                                                    Signature

                                   Date:  January 18, 2002

                                       12

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