Document:

eix10K2012ex1019

Exhibit 10.19

EDISON INTERNATIONAL
2008 EXECUTIVE SEVERANCE PLAN
Amended and Restated Effective
December 12, 2012

	
					
	 
	TABLE OF CONTENTS
	 

	 
	 
	 

	 
	 
	Page
	

	 
	 
	 

	PREAMBLE
	1
	

	ARTICLE 1 DEFINITIONS
	1
	

	ARTICLE 2 SEVERANCE BENEFITS
	5
	

	2.1
	

	Right to Severance Benefits
	5
	

	2.2
	

	Right to Change in Control Severance Benefits
	5
	

	2.3
	

	Severance Benefit - Termination by Employer Without Cause (Other than a Qualifying Termination Event or Termination due to the Eligible Employee’s Disability)
	6
	

	 
	2.3.1  Cash Benefit
	6
	

	 
	2.3.2  Health Care Coverage Benefit
	7
	

	 
	2.3.3  [Reserved]
	7
	

	 
	2.3.4  Survivor Benefit Plan Extension
	7
	

	 
	2.3.5  Outplacement Benefit
	7
	

	 
	2.3.6  Educational Assistance Benefit
	8
	

	 
	2.3.7  [Reserved]
	8
	

	2.4
	

	Change in Control Severance Benefits
	8
	

	 
	2.4.1  Senior Officer Enhanced Benefit
	8
	

	 
	2.4.2  Certain Additional Enhanced Benefits
	8
	

	2.5
	

	Termination for Other Reasons
	9
	

	2.6
	

	Notice of Termination
	9
	

	ARTICLE 3 TAXES
	9
	

	ARTICLE 4 [RESERVED]
	10
	

	ARTICLE 5 BENEFICIARY DESIGNATION
	10
	

	ARTICLE 6 CONDITIONS RELATED TO BENEFITS
	10
	

	6.1
	

	Nonassignability
	10
	

	6.2
	

	No Right to Assets
	11
	

	6.3
	

	Payment of Obligations Absolute
	11
	

	6.4
	

	Other Benefit Plans
	11
	

	6.5
	

	Incapacity
	12
	

	6.6
	

	Six Month Delay
	12
	

	6.7
	

	Termination of Employment
	12
	

	
					
	 
	TABLE OF CONTENTS
	 

	 
	 
	 

	 
	 
	Page
	

	 
	 
	 

	6.8
	

	Re-Employment
	12
	

	ARTICLE 7 CLAIMS AND REVIEW PROCEDURES
	13
	

	7.1
	

	Claims Procedures
	13
	

	7.2
	

	Dispute Arbitration
	13
	

	ARTICLE 8 SUCCESSORS AND ASSIGNMENT
	15
	

	8.1
	

	Successors to an Employer
	15
	

	8.2
	

	Sale, Spin-Off, or Liquidation of an Employer
	15
	

	ARTICLE 9 ADMINISTRATION OF THE PLAN
	15
	

	9.1
	

	Administrator Action
	15
	

	9.2
	

	Powers and Duties of the Administrator
	16
	

	9.3
	

	Plan Interpretation
	16
	

	9.4
	

	Information
	16
	

	9.5
	

	Compensation, Expenses and Indemnity
	17
	

	ARTICLE 10 MISCELLANEOUS
	17
	

	10.1
	

	Release and Agreement
	17
	

	10.2
	

	Term of the Plan
	17
	

	10.3
	

	Employment Status
	18
	

	10.4
	

	Gender, Singular and Plural
	19
	

	10.5
	

	Validity
	19
	

	10.6
	

	Modification
	19
	

	10.7
	

	Notice
	19
	

	10.8
	

	Applicable Law
	19
	

	10.9
	

	WARN Act
	20
	

	10.10
	

	Statutes and Regulations
	20
	

ii

EDISON INTERNATIONAL
2008 EXECUTIVE SEVERANCE PLAN
PREAMBLE
Edison International hereby amends and restates the Edison International Executive Severance Plan effective December 12, 2012.  This Plan is intended to be an “employee benefit plan” within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended.
The purpose of this Plan is to provide for continuity in the management and operations of the Employers by offering Eligible Employees of the Affiliates employment protection and financial security.
ARTICLE 1
DEFINITIONS

Capitalized terms in the text of the Plan are defined as follows:
Administrator means the Compensation and Executive Personnel Committee of the Board of Directors of EIX.
Affiliate means EIX or any corporation or entity which (i) along with EIX, is a component member of a “controlled group of corporations' within the meaning of Section 414(b) of the Code, and (ii) has approved the participation of its Executives in the Plan.
Beneficiary means the person or persons or entity designated as such in accordance with Article 5 of the Plan.
Board means the Board of Directors of EIX.
Cause means the occurrence of either or both of the following:
		
	(1)
	The Eligible Employee's conviction for, or pleading guilty or nolo contendere to, committing an act of fraud, embezzlement, theft, or other act constituting a felony; or

		
	(2)
	The willful engaging by the Eligible Employee in misconduct that:

(i)if the event giving rise to the termination of the Eligible Employee's employment does not occur during a Protected Period, is in violation of EIX's and/or the Eligible Employee's Employer's policies and practices applicable to the Eligible Employee from time to time; or
(ii) if the event giving rise to the termination of the Eligible Employee's employment occurs during a Protected Period, would have resulted in the termination of the Eligible Employee's employment by EIX or the Eligible Employee's Employer under EIX's

and/or the Eligible Employee's Employer's policies and practices applicable to the Eligible Employee in effect immediately prior to the start of the Protected Period.

However, no act or failure to act, on the Eligible Employee's part, shall be considered “willful” unless done, or omitted to be done, by the Eligible Employee not in good faith and without reasonable belief that his or her action or omission was in the best interest of EIX and his or her Employer.
CEO means the Chief Executive Officer of EIX.
Change in Control means a change in control shall be deemed to have occurred as of the first day that any one or more of the following conditions shall have been satisfied:
(1)    Any Person (other than a trustee or other fiduciary holding securities under an employee benefit plan of EIX) becomes the Beneficial Owner, directly or indirectly, of securities of EIX representing thirty percent (30%) or more of the combined voting power of EIX's then outstanding securities.  For purposes of this clause, “Person” shall mean any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), except that such term shall not include one or more underwriters acquiring newly-issued voting securities (or securities convertible into voting securities) directly from EIX with a view towards distribution; and the term “Beneficial Owner” shall mean as defined under Rule 13d-3 promulgated under the Exchange Act.

(2)    On any day after the Effective Date (the “Reference Date”) Continuing Directors cease for any reason to constitute a majority of the Board.  A director is a “Continuing Director” if he or she either:

(i)    was a member of the Board on the applicable Initial Date (an “Initial Director”); or

(ii)    was elected to the Board, or was nominated for election by EIX's shareholders, by a vote of at least two-thirds (2/3) of the Initial Directors then in office.

A member of the Board who was not a director on the applicable Initial Date shall be deemed to be an Initial Director for purposes of clause (ii) above if his or her election, or nomination for election by EIX's shareholders, was approved by a vote of at least two-thirds (2/3) of the Initial Directors (including directors elected after the applicable Initial Date who are deemed to be Initial Directors by application of this provision) then in office.  For these purposes, “Initial Date” means the later of (i) the Effective Date or (ii) the date that is two years before the Reference Date.
(3)    EIX is liquidated; all or substantially all of EIX's assets are sold in one or a series of related transactions; or EIX is merged, consolidated, or reorganized with or involving any other corporation, other than a merger, consolidation, or reorganization that results in the voting securities of EIX outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of EIX (or such surviving entity) outstanding immediately after such merger, consolidation, or reorganization.  

 2

Notwithstanding the foregoing, a bankruptcy of EIX or a sale or spin-off of an affiliate of EIX (short of a dissolution of EIX or a liquidation of substantially all of EIX's assets, determined on an aggregate basis) will not constitute a Change in Control of EIX.

(4)    The consummation of such other transaction that the Board may, in its discretion in the circumstances, declare to be a Change in Control of EIX for purposes of this Plan.
COBRA means the health care continuation coverage requirements set forth in Section 4980B of the Code.
Code means the Internal Revenue Code of 1986, as amended.
Disability means the Eligible Employee (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve months or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve months, receiving income replacement benefits for a period of not less than three months under a plan covering employees of the Employer.
Effective Date means December 31, 2008.
EIX means Edison International, or any successor thereto as provided in Section 8.1.
Eligible Employee means an Executive of an Affiliate or an employee of an Affiliate who was an Executive of an Affiliate after a Potential Change in Control (unless and until the Board declares in good faith that the circumstances giving rise to the Potential Change in Control will not result in an actual Change in Control or an actual Change in Control occurs) or during a Protected Period.
Employer means the Affiliate employing the Eligible Employee.  As the context may require, an Eligible Employee's Employer means the Employer that employs or last employed the Eligible Employee.
Exchange Act means the United States Securities Exchange Act of 1934, as amended.
Executive means an Employee of an Affiliate who is designated an Executive by the Chief Executive Officer of that Affiliate or who is elected as a Vice President or officer of higher rank by the board of that Affiliate or the Board of EIX.
Executive Retirement Plan means the EIX 2008 Executive Retirement Plan, as amended from time to time, or any similar or successor plan sponsored by an Employer.
Good Reason means, without the Eligible Employee's express written consent, the occurrence of any one or more of the following during the Protected Period:
(1)    A material diminution in the Eligible Employee's authorities, duties, and/or responsibilities.

 3

(2)    A material diminution by the Eligible Employee's Employer of the Eligible Employee's Salary as in effect on the Effective Date, or as the same shall be increased from time to time.

(3)    The relocation of the Eligible Employee's principal office more than 50 miles from the Eligible Employee's principal office.

(4)    Any other action or inaction that constitutes a material breach by the Employer of the agreement under which the Eligible Employee provides services.

The foregoing events shall only constitute “Good Reason” if the Eligible Employee provides notice to the Employer of the existence of the condition within 90 days of its initial existence and the Employer does not remedy the condition within 30 days.
Person shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a group as contemplated by Sections 13(d)(3) and 14(d)(2) thereof.
Plan means the EIX 2008 Executive Severance Plan.
Potential Change in Control shall be deemed to have occurred as of the first day that any one or more of the following conditions shall have been satisfied:
		
	(1)
	Any Person (other than a trustee or other fiduciary holding securities under an employee benefit plan of EIX or of an EIX affiliate):

(i)    announces an intention to take action which, if consummated, would result in a Change in Control; or

(ii)    becomes the Beneficial Owner, directly or indirectly, of securities of EIX representing fifteen percent (15%) or more of the combined voting power of EIX's then outstanding securities.  For purposes of this clause, “Person” (and “group” as used in the definition of Person) shall not include one or more underwriters acquiring newly-issued voting securities (or securities convertible into voting securities) directly from EIX with a view towards distribution.

(2)    EIX enters into an agreement that, if consummated, would result in a Change in Control.

(3)    The Board declares that a Potential Change in Control has occurred for purposes of this Plan.

Protected Period means the period related to a Change in Control that is deemed to commence on the date that is six months before the date of the actual Change in Control and end on the date that is two years after the Change in Control.
Qualifying Termination Event means, as to an Eligible Employee, the occurrence of one or both of the following events within the Protected Period corresponding to a Change in Control:

 4

(1)    A termination of the Eligible Employee's employment by his or her Employer, without the Eligible Employee's consent, for reasons other than Cause or Disability; or

(2)    A termination of employment by the Eligible Employee for Good Reason; provided that the termination of employment is in no event later than two years following the initial existence of the Good Reason condition.

Salary means the Eligible Employee's basic pay from the Employer (excluding bonuses, special awards, commissions, severance pay, and other non-regular forms of compensation).
Separation from Service occurs when an Eligible Employee dies, retires, or otherwise has a termination of employment from the Employer that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder.
Target Bonus Percentage means the target, stated as a percentage of salary, fixed by the CEO of the Employer or by the Administrator for the bonus to be awarded to the Eligible Employee pursuant to the terms of the Executive Incentive Compensation Plan, the 2007 Performance Incentive Plan or a successor plan governing annual executive bonuses.
Termination Date means, in the case of an Eligible Employee who becomes entitled to benefits under this Plan, the day on which the Eligible Employee incurs a Separation from Service in connection with the event that entitles the Eligible Employee to such benefits.
ARTICLE 2
SEVERANCE BENEFITS

2.1    Right to Severance Benefits

Subject to Sections 8.2 and 10.1, an Eligible Employee shall be entitled to receive from his or her Employer the benefits described in Section 2.3 if the Eligible Employee's employment by his or her Employer is terminated by the Employer without Cause (and other than due to the Eligible Employee's Disability).  Notwithstanding anything else contained herein to the contrary, an Eligible Employee shall not be entitled to receive the benefits described in Section 2.3 if the Eligible Employee is entitled to benefits under or as described in Section 2.2.
2.2    Right to Change in Control Severance Benefits

Subject to Sections 8.2 and 10.1, an Eligible Employee shall be entitled to receive the benefits described in Section 2.4 if the Eligible Employee incurs a Qualifying Termination Event.  If more than one Qualifying Termination Event occurs with respect to an Eligible Employee, such events shall constitute a single Qualifying Termination Event and the provisions of Section 2.4 shall apply with respect to the Eligible Employee only once.  An Eligible Employee's continued employment shall not constitute a consent to, or a waiver of rights with respect to, any circumstances constituting Good Reason for purposes of determining if a Qualifying Termination Event has occurred with respect to the Eligible Employee.

 5

2.3    Severance Benefit - Termination by Employer Without Cause (Other than a Qualifying Termination Event or Termination due to the Eligible Employee's Disability)

In the event that an Eligible Employee becomes entitled to receive benefits in accordance with Section 2.1, then the Eligible Employee shall be entitled to the benefits described in Sections 2.3.1 through 2.3.6 below.
2.3.1    Cash Benefit

The Eligible Employee's Employer shall pay to the Eligible Employee a non-discounted cash amount equal to the sum of the following:
		
	(a)
	an amount equal to the greater of:

(1)one times the highest annualized rate of the Eligible Employee's Salary in effect at any time during the 24-month period ending on the Eligible Employee's Termination Date, or

(2)one times the highest weekly rate of the Eligible Employee's Salary in effect at any time during the 24-month period ending on the Eligible Employee's Termination Date multiplied by the number of weeks that would have been used (if the Eligible Employee had not been an Executive) to determine the Eligible Employee's cash severance benefit under the non-executive severance plan (if any) maintained by the Eligible Employee's Employer and as in effect on the Eligible Employee's Termination Date;

(b)except as provided in EIX's 2008 Executive Bonus Program (or successor annual bonus program for the relevant year) as to an Eligible Employee who is covered by such program, in the calendar year in which the Eligible Employee's Termination Date occurs, a pro rata portion (based on the number of weekdays that elapsed in the calendar year in which the Eligible Employee's Termination Date occurs between the start of that calendar year and the Eligible Employee's Termination Date) of the Eligible Employee's highest Target Bonus Percentage in effect at any time during the 24-month period ending on the Eligible Employee's Termination Date multiplied by the Eligible Employee's highest annualized Salary in effect at any time during such 24-month period; and

(c)an amount equal to one times the highest annualized rate of the Eligible Employee's Salary in effect at any time during the 24-month period ending on the Eligible Employee's Termination Date times the Eligible Employee's highest Target Bonus Percentage in effect at any time during the 24-month period ending on the Eligible Employee's Termination Date.

The amount determined under this Section 2.3.1 shall be paid as a lump sum without notice or demand within 65 days following the date of the Eligible Employee's Separation from Service, but only if EIX has timely received from the Eligible Employee the agreement referenced in Section 10.1.

 6

2.3.2    Health Care Coverage Benefit

(a)    The Eligible Employee will be eligible to participate in EIX's retiree health care program if, under the terms of the non-executive severance plan (if any) maintained by the Eligible Employee's Employer and as in effect on the Eligible Employee's Termination Date, the Eligible Employee would otherwise have been eligible (if he or she had not been an Executive) for participation in EIX's retiree health care program by virtue of his or her age and service.  For purposes of clarity, any healthcare benefits and subsidy (as opposed to eligibility) will be determined under the EIX retiree health care program and not the non-executive severance plan.

(b)    If the Eligible Employee is not eligible for EIX's retiree health care program in accordance with Section 2.3.2(a) or is not otherwise eligible for EIX's retiree health care program, the Eligible Employee will receive an extension of health care coverage for a period following the Eligible Employee's Termination Date that is the greater of 12 months or the extension period for which the Eligible Employee would have been eligible (if he or she had not been an Executive) under the non-executive severance program (if any) maintained by the Eligible Employee's Employer and as in effect on the Eligible Employee's Termination Date but in no event longer than the maximum period the Eligible Employee would be entitled to continuation coverage under COBRA.  Any continued coverage in accordance with the preceding sentence shall be on terms similar to those as in effect under the Eligible Employee's Employer's health care program in effect with respect to the Eligible Employee immediately before the termination of his or her employment and based on the Eligible Employee's coverage elections in effect at such time.  Notwithstanding Section 6.3 to the contrary, EIX and/or the Eligible Employee's Employer, as applicable, shall not be obligated to continue such coverage if the Eligible Employee obtains similar coverage from any successor employer.  EIX and/or the Eligible Employee's Employer, as applicable, shall give the Eligible Employee the required COBRA benefit continuation notice prior to (and the Eligible Employee's eligibility for continuation benefits under COBRA shall commence as of) the end of the applicable period determined as set forth above.

2.3.3    [Reserved]

2.3.4    Survivor Benefit Plan Extension

If the Eligible Employee was eligible to participate in the EIX 2008 Survivor Benefit Plan (or predecessor plan) at any point during the 12 months preceding the Eligible Employee's Termination Date, the Eligible Employee will be entitled to continued coverage under such Survivor Benefit Plan for the one-year period commencing on the Eligible Employee's Termination Date.
2.3.5    Outplacement Benefit

The Eligible Employee shall be entitled to reimbursement of up to $20,000 for reasonable outplacement costs incurred in the two-year period commencing on his or her Termination Date.  Any such reimbursements shall be paid to the Eligible Employee by the end of the third taxable year of the Eligible Employee following the taxable year in which the Eligible Employee's Separation from Service occurred.

 7

2.3.6    Educational Assistance Benefit

The Eligible Employee shall be entitled to the educational assistance benefit to which he or she would have been entitled (if he or she had not been an executive) under the non-executive severance plan, if any, maintained by his or her Employer and as in effect on the Eligible Employee's Termination Date.  To the extent any educational assistance benefits or reimbursements are taxable to the Eligible Employee and provide for a deferral of compensation within the meaning of Section 409A of the Code, any such reimbursements or benefits shall be paid to the Eligible Employee on or before the last day of the Eligible Employee's taxable year following the taxable year in which the expense was incurred, shall not be subject to liquidation or exchange for other benefits and the reimbursements or benefits that the Eligible Employee receives in one taxable year shall not affect the amount of reimbursements or benefits that the Eligible Employee receives in any other taxable year.
2.3.7    [Reserved]

2.4    Change in Control Severance Benefits

If an Eligible Employee incurs a Qualifying Termination Event, the Eligible Employee shall be entitled to the benefits described in Sections 2.3.1 through 2.3.6 above, subject to the following subsections of this Section 2.4.
2.4.1    Senior Officer Enhanced Benefit

If the Eligible Employee was a Senior Vice President or an officer of higher rank within the 12‐month period preceding his or her Termination Date but is not covered by Section 2.4.2, then the Eligible Employee will be entitled to the benefit modifications described in this Section 2.4.1. “Two times” will be substituted for “one times” in Section 2.3.1, including for purposes of determining the Eligible Employee's benefit under Section 2.3.1(c). “Two-year period” will be substituted for “one-year period” in Section 2.3.4. “$30,000” will be substituted for “$20,000” in Section 2.3.5.  Benefits under Section 2.3.2 will be extended to the maximum period permitted under COBRA.
2.4.2    Certain Additional Enhanced Benefits

If the Eligible Employee was the Chief Executive Officer of EIX, Southern California Edison, Edison Mission Group, or the General Counsel or Chief Financial Officer of EIX within the 12‐month period preceding his or her Termination Date, then the Eligible Employee will be entitled to the benefit modifications described in this Section 2.4.2. “Three times” will be substituted for “one times” in Section 2.3.1, including for purposes of determining the Eligible Employee's benefit under Section 2.3.1(c). “Three-year period” will be substituted for “one-year period” in Section 2.3.4. “$50,000” will be substituted for “$20,000” in Section 2.3.5.  Benefits under Section 2.3.2 will be extended to the maximum period permitted under COBRA.

 8

2.5    Termination for Other Reasons

Except as expressly provided below, EIX and an Eligible Employee's Employer shall have no obligations (or no further obligations, as the case may be) to the Eligible Employee under this Plan if:
		
	(a)
	the Eligible Employee's employment is terminated by his or her Employer for Cause;

(b)    the Eligible Employee terminates his or her employment with his or her Employer during a Protected Period other than for Good Reason;

(c)    the Eligible Employee's employment by his or her Employer terminates due to the Eligible Employee's Disability or death;

(d)the Eligible Employee terminates his or her employment with his or her Employer for any reason if the termination occurs outside of a Protected Period; or

(e)the Eligible Employee is employed by an Employer that is sold, spun off, or liquidated and the Eligible Employee is no longer covered by this Plan as provided in Section 8.2 or the Eligible Employee does not timely comply with Section 10.1. 

Notwithstanding anything else contained herein to the contrary, a termination of an Eligible Employee's employment on account of the Eligible Employee reaching mandatory retirement age, as such age may be defined from time to time in policies adopted by EIX or his or her Employer prior to the commencement of the Protected Period, to the extent such policies are applicable to the Eligible Employee immediately prior to the commencement of the Protected Period and to the extent such policies are consistent with applicable law, shall not entitle the Eligible Employee to the benefits described in Section 2.3 and shall not be a Qualifying Termination Event unless the Eligible Employee was otherwise able to terminate employment for Good Reason immediately prior to his or her retirement and his or her retirement occurred during a Protected Period.
2.6    Notice of Termination

Any termination of an Eligible Employee's employment by his or her Employer for Cause or by an Eligible Employee for Good Reason shall be communicated by Notice of Termination.  For purposes of this Plan, a “Notice of Termination” shall mean a written notice which shall indicate the specific termination provision in this Plan relied upon, and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Eligible Employee's employment under the provision so indicated.  The Notice of Termination shall be effective on the date specified in Section 10.7 of this Plan.
ARTICLE 3
TAXES

EIX and/or the Eligible Employee's Employer, as applicable, has the right to withhold from any amount otherwise payable to an Eligible Employee under or pursuant to this Plan the amount of any taxes that EIX or such Employer may legally be required to withhold with respect to such

 9

payment (including, without limitation, any United States Federal taxes, and any other state, city, or local taxes).  In the event that tax withholding is required with respect to amounts or benefits payable or deliverable by EIX or the Eligible Employee's Employer to an Eligible Employee and EIX or the Employer cannot satisfy its tax withholding obligations in the manner described in the preceding sentence, EIX or the Employer may require the Eligible Employee to pay or provide for the payment of such required tax withholding as a condition to the payment or delivery of such amounts or benefits.  Each Eligible Employee, former Eligible Employee and Beneficiary shall be solely responsible for all income and employment taxes arising in connection with participation in this Plan or benefits hereunder.
ARTICLE 4
[RESERVED]

ARTICLE 5
BENEFICIARY DESIGNATION

The Eligible Employee will have the right, at any time, to designate any person or persons as Beneficiary (both primary and contingent) to whom payment under the Plan will be made in the event of the Eligible Employee's death.  The Beneficiary designation will be effective when it is submitted to the Administrator during the Eligible Employee's lifetime in accordance with procedures established by the Administrator.
The submission of a new Beneficiary designation will cancel all prior Beneficiary designations.  Any finalized divorce or marriage of an Eligible Employee subsequent to the date of a Beneficiary designation will revoke such designation, unless in the case of divorce the previous spouse was not designated as a Beneficiary, and unless in the case of marriage the Eligible Employee's new spouse has previously been designated as Beneficiary.  The spouse of a married Eligible Employee must consent in writing to any designation of a Beneficiary other than the spouse.
If an Eligible Employee fails to designate a Beneficiary as provided above, or if the Beneficiary designation is revoked by marriage, divorce, or otherwise without execution of a new designation, or if every person designated as Beneficiary predeceases the Eligible Employee, then the Administrator will direct the distribution of the benefits to the Eligible Employee's estate.  If a primary Beneficiary dies after commencement of payments to the Beneficiary but prior to completion of benefits under this Plan, and no contingent Beneficiary has been designated by the Eligible Employee, any remaining payments will be paid to the primary Beneficiary's Beneficiary, if one has been designated, or to the Beneficiary's estate.
ARTICLE 6
CONDITIONS RELATED TO BENEFITS

6.1    Nonassignability

The benefits provided under the Plan may not be alienated, assigned, transferred, pledged or hypothecated by or to any person or entity, at any time or any manner whatsoever.  These benefits will be exempt from the claims of creditors of any Eligible Employee or other claimants

 10

and from all orders, decrees, levies, garnishment or executions against any Eligible Employee to the fullest extent allowed by law.
6.2    No Right to Assets

The benefits paid under the Plan will be paid from the general funds of the Employer who last employs the Eligible Employee immediately prior to the time that the Eligible Employee becomes entitled to benefits hereunder, and the Eligible Employee and any Beneficiary will be no more than unsecured general creditors of the Employer with no special or prior right to any assets of the Employer for payment of any obligations hereunder.  Neither the Eligible Employee nor the Beneficiary will have a claim to benefits from any other Affiliate.
6.3    Payment of Obligations Absolute

Subject to the Eligible Employee's timely compliance with Section 10.1 and the agreement contemplated thereby, each Employer's obligation to make the payments and the arrangements provided for herein shall be absolute and unconditional, and shall not be affected by any circumstances, including, without limitation, any offset, counterclaim, recoupment, defense, or other right which the Employer may have against the Eligible Employee or anyone else.  Each and every payment made hereunder by an Employer shall be final, and the Employer shall not seek to recover all or any part of such payment from the Eligible Employee or from whomsoever may be entitled thereto, for any reasons whatsoever, except as otherwise provided in Article 4 or Article 8 and subject to the Eligible Employee's timely compliance with Section 10.1 and the agreement contemplated thereby.  Eligible Employees shall not be obligated to seek other employment in mitigation of the amounts payable or arrangements made under any provision of this Plan, and the obtaining of any such other employment shall in no event effect any reduction of an Employer's obligations to make the payments and arrangements required to be made under this Plan except as provided in Section 2.3.2(b).
6.4    Other Benefit Plans

All payments, benefits and amounts provided under this Plan shall be in addition to and not in substitution for any pension rights under EIX's or other Employer's tax-qualified pension plans in which the Eligible Employee participates, and any disability, workers' compensation or EIX or other Employer benefit plan distribution that an Eligible Employee is entitled to, under the terms of any such plan, at the time his or her employment by his or her Employer terminates.  Notwithstanding the foregoing, this Plan shall not create an inference that any duplicate payments shall be required, and notwithstanding anything else contained herein to the contrary, any severance benefits otherwise payable or deliverable under this Plan to a Participant shall be offset or reduced by the amount of severance benefits payable or deliverable to the Participant under any other plan, program, or agreement of or with EIX, the Participant's Employer, or their respective Affiliates.  Payments received by a person under this Plan shall not be deemed a part of the person's compensation for purposes of determining the person's benefits under any employee welfare, pension or other benefit plan or arrangement, if any, provided by an Employer, except where explicitly provided under the terms of such plan or arrangement.

 11

6.5    Incapacity

If any person entitled to payments under this Plan is incapacitated and unable to use such payments in his or her own best interest, EIX may direct that payments (or any portion) be made to that person's legal guardian or conservator, or that person's spouse, as an alternative to payment to the person unable to use the payments.  EIX will have no obligation to supervise the use of such payments, and court-appointed guardianship or conservatorship may be required.
6.6    Six Month Delay

Notwithstanding any other provisions of the plan, any payment or benefit otherwise required to be made after an Eligible Employee's Separation from Service that the Employer reasonably determines is subject to Section 409A(a)(2)(B)(i) of the Code shall not be paid until the earlier of (1) six months after the date of the Eligible Employee's Separation from Service or (2) the Eligible Employee's death.
6.7    Termination of Employment

Notwithstanding anything else contained herein to the contrary, a Participant shall not be deemed to have terminated employment or had a Separation from Service if his or her employment by an Employer terminates but he or she continues as an employee of another Affiliate.
6.8    Re-Employment

Notwithstanding anything else contained herein to the contrary, a Participant shall have no right to severance benefits hereunder (pursuant to Sections 2.3 or 2.4 or otherwise) with respect to a termination of his or her employment if, in connection with such termination, he or she is otherwise entitled to severance benefits under this Plan but, prior to the payment or delivery (or commencement of payment or delivery, as the case may be) of such benefits, the Participant becomes re-employed by his or her Employer or by another Affiliate.  Notwithstanding anything else contained herein to the contrary, a Participant's right to continuing or additional benefits under this Plan (including any right to continue participating in or receive benefits under a plan as provided for in Section 2.3) shall automatically terminate (but the Participant shall have no obligation to re-pay benefits previously paid) if the Participant becomes re-employed by his or her Employer or by another Affiliate.  If a Participant is re-employed and his or her employment is subsequently terminated and the Participant again becomes entitled to severance benefits under the terms of this Plan in connection with such later termination of employment, the amount of cash severance payments otherwise payable to the Participant pursuant to Section 2.3.1 in connection with such later termination of employment shall be reduced by the amount of any severance payments paid under this Plan to the Participant within the 24 months prior to such later termination of employment in connection with any prior termination of his or her employment.

 12

ARTICLE 7
CLAIMS AND REVIEW PROCEDURES

7.1    Claims Procedures

(a)    The Administrator will notify an Eligible Employee or his or her Beneficiary (or person submitting a claim on behalf of an Eligible Employee or Beneficiary) (a “claimant”) in writing, within 90 days after his or her written application for benefits, of his or her eligibility or noneligibility for benefits under the Plan.  If the Administrator determines that a claimant is not eligible for benefits or full benefits, the notice will set forth (1) the specific reasons for the denial, (2) a specific reference to the provisions of the Plan on which the denial is based, (3) a description of any additional information or material necessary for the claimant to perfect his or her claim, and a description of why it is needed, and (4) an explanation of the Plan's claims review procedure and other appropriate information as to the steps to be taken if the claimant wishes to have the claim reviewed.  If the Administrator determines that there are special circumstances requiring additional time to make a decision, the Administrator will notify the claimant of the special circumstances and the date by which a decision is expected to be made, and may extend the time for up to an additional 90-day period.

(b)    If a claimant is determined by the Administrator not to be eligible for benefits, or if the claimant believes that he or she is entitled to greater or different benefits, the claimant will have the opportunity to have the claim reviewed by the Administrator by filing a petition for review with the Administrator within 60 days after receipt of the notice issued by the Administrator.  Said petition will state the specific reasons which the claimant believes entitle him or her to benefits or to greater or different benefits.  Within 60 days after receipt by the Administrator of the petition, the Administrator will afford the claimant (and counsel, if any) an opportunity to present his or her position to the Administrator in writing, and the claimant (or counsel) will have the right to review the pertinent documents.  The Administrator will notify the claimant of its decision in writing within the 60-day period, stating specifically the basis of its decision, written in a manner calculated to be understood by the claimant and the specific provisions of the Plan on which the decision is based.  If, due to special circumstances (for example, because of the need for a hearing), the 60-day period is not sufficient, the decision may be deferred for up to another 60-day period at the election of the Administrator, but notice of this deferral will be given to the claimant.  In the event of the death of the Eligible Employee, the same procedures will apply to the Eligible Employee's Beneficiaries.

7.2    Dispute Arbitration

(a)    Notwithstanding the foregoing, and because it is agreed that time will be of the essence in determining whether any payments are due to the claimant under the Plan, a claimant may, if he or she desires, submit any claim for payment under the Plan to arbitration.  This right to select arbitration will be solely that of the claimant and the claimant may decide whether or not to arbitrate in his or her discretion.  The “right to select arbitration” is not mandatory on the claimant, and the claimant may choose in lieu thereof to bring an action in an appropriate civil court.  Once an arbitration is commenced, however, it may not be discontinued without the mutual consent of both parties to the arbitration.  During the lifetime of the Eligible Employee only he or she can use the arbitration procedure set forth in this section.

 13

(b)    Any claim for arbitration may be submitted as follows:  if a claimant has submitted a request to be paid under the Plan and the claim is finally denied by the Administrator in whole or in part, the claim may be filed in writing with an arbitrator of the claimant's choice who is selected by the method described in the next four sentences.  The first step of the selection will consist of the claimant submitting a list of five potential arbitrators to the Administrator.  Each of the five arbitrators must be either (1) a member of the National Academy of Arbitrators located in the State of California or (2) a retired California Superior Court or Appellate Court judge.  Within one week after receipt of the list, the Administrator will select one of the five arbitrators as the arbitrator for the dispute in question.  If the Administrator fails to select an arbitrator within one week after receipt of the list, the claimant will then designate one of the five arbitrators for the dispute in question.

(c)    The arbitration hearing will be held within seven days (or as soon thereafter as possible) after the picking of the arbitrator.  No continuance of said hearing will be allowed without the mutual consent of the claimant and the Administrator.  Absence from or nonparticipation at the hearing by either party will not prevent the issuance of an award.  Hearing procedures which will expedite the hearing may be ordered at the arbitrator's discretion, and the arbitrator may close the hearing in his or her sole discretion when he or she decides he or she has heard sufficient evidence to satisfy issuance of an award.

(d)    The arbitrator's award will be rendered as expeditiously as possible and in no event later than one week after the close of the hearing.

(e)    In the event the arbitrator finds that the Administrator or the Employer has breached the terms of the Plan, he or she will order the Employer to pay to the claimant within two business days after the decision is rendered the amount then due the claimant, plus, notwithstanding anything to the contrary in the Plan, an additional amount equal to 20% of the amount actually in dispute.  The award of the arbitrator will be final and binding upon the Parties.

(f)    The award may be enforced in any appropriate court as soon as possible after its rendition.  The Administrator will be considered the prevailing party in a dispute if the arbitrator determines (1) that neither the Administrator nor the Employer has breached the terms of the Plan and (2) the claim by the claimant was not made in good faith.  Otherwise, the claimant will be considered the prevailing party.  In the event that the Administrator is the prevailing party, the fee of the arbitrator and all necessary expenses of the hearing (excluding any attorneys' fees incurred by the Administrator) including the fees of a stenographic reporter, if employed, will be paid by the losing party.  In the event that the claimant is the prevailing party, the fee of the arbitrator and all necessary expenses of the hearing (including all attorneys' fees incurred by the claimant in pursuing his or her claim and the fees of a stenographic reporter, if employed) will be paid by the Employer by March 15 of the year following the year in which the arbitrator determines who is the prevailing party.

 14

ARTICLE 8
SUCCESSORS AND ASSIGNMENT

8.1    Successors to an Employer

Subject to Section 8.2, each Employer will require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) of all or substantially all of the business and/or assets of the Employer or of any division or subsidiary thereof (the business and/or assets of which constitute at least fifty percent (50%) of the total business and/or assets of the Employer) to expressly assume and agree to perform the Employer's obligations under this Plan in the same manner and to the same extent that the Employer would be required to perform them if such succession had not taken place.
8.2    Sale, Spin-Off, or Liquidation of an Employer

Except as provided in the following two sentences, if EIX sells (regardless of whether pursuant to a stock sale or sale of all or substantially all of the business and/or assets of the Employer), spins-off or liquidates an Employer (other than EIX), this Plan shall be deemed to have been terminated as to all Eligible Employees employed by that Employer and such Eligible Employees shall have no further rights under this Plan and shall have no right to any payment or benefits under this Plan in respect of such termination.  If such a sale, spin-off or liquidation occurs after a Potential Change in Control has occurred (and the Board has not declared in good faith that the circumstances giving rise to the Potential Change in Control will not result in an actual Change in Control) or during a Protected Period, the preceding sentence shall not apply with respect to any Eligible Employee who was employed immediately prior to the Potential Change in Control or start of the Protected Period, as applicable, by EIX or an Employer other than the Employer that is sold, spun off, or liquidated.  The first sentence of this Section 8.2 will not apply to an Eligible Employee if (i) the Employer has entered a written agreement with the Eligible Employee, (ii) the agreement has been approved by an officer of EIX, (iii) the agreement provides specific conditions under which the Eligible Employee will be eligible for the benefits described in Section 2.3 in connection with the sale or spin-off of the Employer, and (iv) those conditions are met.
ARTICLE 9
ADMINISTRATION OF THE PLAN

9.1    Administrator Action

The Administrator shall act at meetings by affirmative vote of a majority of the members of the Administrator.  Any action permitted to be taken at a meeting may be taken without a meeting if, prior to such action, a written consent to the action is signed by all members of the Administrator and such written consent is filed with the minutes of the proceedings of the Administrator.  A member of the Administrator shall not vote or act upon any matter which relates solely to himself or herself as an Eligible Employee.  The Chairman or any other member or members of the Administrator designated by the Chairman may execute any certificate or other written direction on behalf of the Administrator.

 15

9.2    Powers and Duties of the Administrator

The Administrator shall enforce this Plan in accordance with its terms, shall be charged with the general administration of this Plan, and shall have all powers necessary to accomplish its purposes, including, but not by way of limitation, the power and authority to do the following:
		
	(a)
	To determine eligibility for and participation in this Plan;

(b)    To construe and interpret the terms and provisions of this Plan;

(c)    To compute and certify to the amount and kind of benefits payable to Eligible Employees and their Beneficiaries, and to determine the amount of withholding taxes to be deducted pursuant to Article 3;

(d)    To maintain all records that may be necessary for the administration of this Plan;

(e)    To provide for the disclosure of all information and the filing or provision of all reports and statements to Eligible Employees, Beneficiaries or governmental agencies as shall be required by law;

(f)    To make and publish such rules for the regulation of this Plan and procedures for the administration of this Plan as are not inconsistent with the terms hereof; and

(g)    To appoint a plan administrator or any other agent (which may include, without limitation, one or more employees of EIX), and to delegate to them such powers and duties in connection with the administration of this Plan as the Administrator may from time to time prescribe.

9.3    Plan Interpretation

The Administrator will administer the Plan and interpret, construe and apply its provisions in accordance with its terms and will provide direction and oversight as necessary to management, staff, or contractors to whom day-to-day Plan operations may be delegated.  The Administrator will establish, adopt or revise such rules and regulations as it may deem necessary or advisable for the administration of the Plan.  The Administrator will interpret and construe the Plan to comply with Section 409A of the Code.  All decisions of the Administrator will be final and binding.
9.4    Information

To enable the Administrator to perform its functions, each Employer shall supply full and timely information to the Administrator on all matters relating to the compensation of all Eligible Employees, their death or other cause of termination, and such other pertinent facts as the Administrator may require.

 16

9.5    Compensation, Expenses and Indemnity

The members of the Administrator shall serve without additional compensation for their services hereunder beyond that which they are entitled as authorized by the Board.  The Administrator is authorized at the expense of EIX to employ such legal counsel as it may deem advisable to assist in the performance of its duties hereunder.  EIX shall pay expenses and fees in connection with the administration of this Plan.  To the extent permitted by applicable law, EIX shall indemnify and save harmless the Administrator and each member thereof, the Board and each member thereof, and delegates of the Administrator who are employees of EIX against any and all expenses, liabilities and claims, including legal fees to defend against such liabilities and claims arising out of their discharge in good faith of responsibilities under or incident to this Plan, other than expenses and liabilities arising out of willful misconduct.  This indemnity shall not preclude such further indemnities as may be available under insurance purchased by EIX or provided by EIX under any bylaw, agreement or otherwise, as such indemnities are permitted under state law.
ARTICLE 10
MISCELLANEOUS

10.1    Release and Agreement

Notwithstanding anything else contained herein to the contrary, each Employer's obligation to pay benefits to an Eligible Employee is subject to the condition precedent that the Eligible Employee execute, not later than 45 days after the Eligible Employee's receipt of the Severance Agreement, a valid and effective Severance Agreement in the form attached hereto as Exhibit A (or such other form, which is substantially the same as the form attached hereto as Exhibit A, as the Administrator may require) and such executed agreement is received by EIX and the Eligible Employee's Employer no later than 52 days after the Eligible Employee's receipt of the Severance Agreement and is not revoked by the Eligible Employee or otherwise rendered unenforceable by the Eligible Employee.  EIX will provide the applicable form of Severance Agreement to the Eligible Employee on or before the seventh day following the Eligible Employee's Termination Date.  EIX may modify the form of Severance Agreement from time to time to comply with applicable laws, rules and regulations.  If the 45-day period for the Eligible Employee to consider the Severance Agreement plus any revocation period afforded by applicable law (together, the “Release Period”) spans two different calendar years, payment of the cash severance benefits pursuant to Section 2.3.1 (including any enhancement thereto pursuant to Section 2.4.1), shall be made within the period of time prescribed by Section 2.3.1 but in the second of those two calendar years and, to the extent required to avoid any tax, penalty or interest under Section 409A of the Code, any benefit payment or reimbursement pursuant to Sections 2.3.2 through 2.3.6 (including any enhancement thereto pursuant to Sections 2.4.1 and 2.4.2) that would otherwise be paid in the first of those two years shall not be paid until the second of those two years.
10.2    Term of the Plan

(a)    This Plan will commence on the Effective Date and shall continue in effect through December 31, 2009.  However, at the end of such initial period and, if extended, at the end of each additional year thereafter, the term of this Plan shall be extended automatically for one 

 17

additional year, unless the Administrator (or the Board) delivers written notice at least six months prior to the end of such term, or extended term, to each Eligible Employee that this Plan will not be extended, and if such notice is timely given this Plan will terminate at the end of the term then in progress; provided, however, that this provision for automatic extension shall have no application following a Potential Change in Control (unless and until the Board declares in good faith that the circumstances giving rise to the Potential Change in Control will not result in an actual Change in Control) or a Change in Control, in which case the provisions of Section 10.2(b) or Section 10.2(c), respectively, shall apply.

(b)    If a Potential Change in Control occurs, the Administrator (or the Board) may not give notice that the term of this Plan will not be extended, or will not be further extended, as the case may be, unless and until the Board declares in good faith that the circumstances giving rise to the Potential Change in Control will not result in an actual Change in Control or an actual Change in Control occurs.

(c)    In the event a Change in Control occurs during the initial or any extended term, this Plan will remain in effect for the longer of:  twenty-four months beyond the month in which such Change in Control occurred; or

(1)as to any Eligible Employee who incurs a Qualifying Termination Event, until all obligations of each Employer hereunder to that Eligible Employee have been fulfilled.  Any subsequent Change in Control (“Subsequent Change in Control”) that occurs during the initial or any extended term shall also continue the term of this Plan until the later of:

(i)twenty-four months beyond the month in which such Subsequent Change in Control occurred; or

(ii)as to any Eligible Employee who incurs a Qualifying Termination Event, until all obligations of each Employer hereunder have been fulfilled to that Eligible Employee; provided, however, that if a Subsequent Change in Control occurs, it shall only be considered a Change in Control under this Plan if it occurs no later than twenty-four months after the immediately preceding Change in Control or Subsequent Change in Control.

(d)    The foregoing provisions of this Section 10.2 are subject to the provisions of Section 8.2 as to any Eligible Employee that is employed by an Employer that is sold or spun-off by EIX.

10.3    Employment Status

Except as may be provided under any other written agreement between an Eligible Employee and his or her Employer, the employment of the Eligible Employee by his or her Employer is “at will,” and may be terminated by either the Eligible Employee or the Employer at any time, subject to applicable law.  Payments made under this Plan shall not give any person the right to any benefits provided to persons retained in an Employer's employ (such as, without limitation, health and dental benefits).  Except as may otherwise be required by law or set forth specifically in such plans or as otherwise expressly provided in this Plan, such benefits shall terminate as of the date the Eligible Employee's employment by an Employer terminates.

 18

10.4    Gender, Singular and Plural

All pronouns and variations thereof will be deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may require.  As the context may require, the singular may be read as the plural and the plural as the singular.
10.5    Validity

If any provision of the Plan is held invalid, void or unenforceable, the same will not affect, in any respect whatsoever, the validity of any other provisions of the Plan.
10.6    Modification

The Administrator or the Board may from time to time amend this Plan in any way it determines to be advisable; provided, however, that no such amendment shall be effective without the consent of each affected Eligible Employee (or the Eligible Employee's legal representative) if it is adopted (a) after a Potential Change in Control (unless and until the Board determines in good faith that the circumstances giving rise to the Potential Change in Control will not result in an actual Change in Control or an actual Change in Control occurs), or (b) during a Protected Period.  No provision of this Plan may be waived unless as to an Eligible Employee such waiver is agreed to in writing and signed by the Eligible Employee (or the Eligible Employee's legal representative) and by an authorized member of the Administrator (or the Board) or its designee or legal representative.
10.7    Notice

For purposes of this Plan, notices, including Notice of Termination, and all other communications provided for in this Plan shall be in writing and shall be deemed to have been duly given when delivered or on the date stamped as received by the U.S.  Postal Service for delivery by certified or registered mail, postage prepaid and addressed:
(a)    if to the Eligible Employee, to his or her latest address as reflected on the records of EIX or his or her Employer, and

(b)    if to an Employer, to the attention of EIX's Corporate Secretary at the address of EIX's principal executive offices; or to such other address as either party may furnish to the other in writing for the delivery of notices to that party, with specific reference to this Plan and the importance of the notice, except that a notice of change of address shall be effective only upon receipt by the other party.

10.8    Applicable Law

The Plan will be governed and construed in accordance with the laws of California except where the laws of California are preempted by ERISA.

 19

10.9    WARN Act

Benefits payable under this Plan are intended to satisfy, where applicable, any EIX or other Employer's obligations under the Federal Worker Adjustment and Retraining Notification Act and any similar obligations that EIX or any other Employer may have under any successor or other severance pay statute.
10.10    Statutes and Regulations

Any reference to a statute or regulation herein shall include any successor to such statute or regulation.
IN WITNESS WHEREOF, EIX has caused its duly authorized officer to execute this amended and restated Plan effective December 12, 2012. 

EDISON INTERNATIONAL

/s/ Daryl D. David
________________________________________________    
Daryl D. David
Senior Vice President, Human Resources

 20

EXHIBIT A
SEVERANCE AGREEMENT
This Severance Agreement (this “Agreement”) is made as of the _____ day of __________, 20___, by and between [name], an individual (the “Individual”), and Edison International, a California corporation (the “Company”), it provides for a termination date of [date-usually the day after the last day on payroll] (the “Termination Date”), and it is a severance agreement that includes a release, a confidentiality agreement, and an agreement not to solicit employees or customers, and certain other terms and conditions.
RECITALS
A.    The Individual and the Company have reached agreement on the termination of the Individual's employment by the Company and/or one or more of its current or former subsidiaries or affiliates (collectively, the Company and its current or former subsidiaries and affiliates are referred to herein as the “Company Group”).
B.    The Individual and the Company further desire to resolve all pending and potential actions and issues between the Individual and each member of the Company Group without the further expenditure of time and expense of litigation and, for that reason, have entered into this Agreement.
C.    The Company maintains the Edison International 2008 Executive Severance Plan (the “Plan”). The Company's (and/or another member of the Company Group's) obligation to pay or continue paying severance benefits to the Individual under and in accordance with the terms of the Plan, which benefits are summarized and attached to this Agreement as Exhibit A (the “Severance Benefits”), is subject to the requirement that the Company timely receive this Agreement from the Individual and that the Individual does not revoke or otherwise render this Agreement unenforceable.
AGREEMENT
In consideration of the covenants undertaken and the releases contained in this Agreement, and the Individual's right to receive the Severance Benefits, the Individual and the Company agree as follows:
1.    Termination of Employment

The Individual and the Company agree that the Individual's employment by the Company and/or one or more of the other members of the Company Group shall be, and it hereby is, terminated.  Accordingly, the Individual hereby resigns any and all of his or her positions, offices, and/or directorships with each entity in the Company Group and any employment agreement(s) between the Individual and one or more members of the Company Group be, and they hereby are, terminated.

2.    Severance Benefit

The Company and/or the appropriate member of the Company Group will pay to the Individual the Severance Benefits in accordance with the terms of the Plan.
3.    Release by the Individual

Except for those obligations created by or arising out of this Agreement, the Individual on behalf of himself or herself, his or her descendants, dependents, heirs, executors, administrators, assigns, and successors, and each of them, hereby covenants not to sue and fully releases and discharges the Company, its parent (if any), the Company's subsidiaries and affiliates, past and present, and each of them, as well as its and their trustees, directors, officers, agents, attorneys, insurers, employees, stockholders, representatives, assigns, and successors, past and present, and each of them, hereinafter together and collectively referred to as “Releasees,” with respect to and from any and all claims, wages, demands, rights, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, debts, costs, expenses, attorneys' fees, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which he or she now owns or holds or he or she has at any time heretofore owned or held or may in the future hold as against said Releasees, arising out of or in any way connected with the Individual's employment relationship with any member of the Company Group, or the termination of his or her employment or any other transactions, occurrences, acts or omissions or any loss, damage or injury whatever, known or unknown, suspected or unsuspected, resulting from any act or omission by or on the part of said Releasees, or any of them, committed or omitted prior to the date of this Agreement including, without limiting the generality of the foregoing, any claim under Section 1981 of the Civil Rights Act of 1866, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Family and Medical Leave Act of 1993, the California Fair Employment and Housing Act, the California Family Rights Act, the California Labor Code, any other claim under any other federal, state or local law or regulation, and any other claim for severance pay, bonus or incentive pay, sick leave, holiday pay, vacation pay, life insurance, health or medical insurance or any other fringe benefit, medical expenses, or disability (except vested benefits that the Individual may be entitled to receive as outlined in Exhibit A hereto, or vested benefits that the Individual may be entitled to receive, if any, under and in accordance with the terms of the Southern California Edison Company Retirement Plan or other qualified Company Group pension plan, Edison 401(k) Savings Plan, Medical Program, Dental Program, Vision Care Plan, Health Care Reimbursement Account Program, Dependent Care Reimbursement Account Program, and Employee Assistance Program). Exhibit A is incorporated herein by this reference.  Nothing in this Agreement should be construed to release claims that cannot be released as a matter of law.
4.    Known and Unknown Claims

It is the intention of the Individual and the Company in executing this instrument that the same shall be effective as a bar to each and every claim, demand and cause of action hereinabove specified. In furtherance of this intention, the Individual hereby expressly waives any and all rights and benefits conferred upon him or her by the provisions of SECTION 1542 OF THE

2

CALIFORNIA CIVIL CODE and expressly consents that this Agreement shall be given full force and effect according to each and all of its express terms and provisions, including those related to unknown and unsuspected claims, demands and causes of action, if any, as well as those relating to any other claims, demands and causes of action hereinabove specified. SECTION 1542 provides: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” The Individual acknowledges that he or she may hereafter discover claims or facts in addition to or different from those which he or she now knows or believes to exist with respect to the subject matter of this Agreement and which, if known or suspected at the time of executing this Agreement, may have materially affected this settlement. Nevertheless, the Individual hereby waives any right, claim or cause of action that might arise as a result of such different or additional claims or facts. The Individual acknowledges that he or she understands the significance and consequence of such release and such specific waiver of SECTION 1542.
5.    Other Waiver by the Individual

The Individual expressly acknowledges and agrees that, by entering into this Agreement, he or she is waiving any and all rights or claims that he or she may have arising under the Age Discrimination in Employment Act of 1967, as amended, which have arisen on or before the date of execution of this Agreement.
6.    Confidentiality

The Individual represents and covenants that he or she has not previously and that he or she will not at any time, unless compelled by lawful process, disclose or use for his or her own benefit or purposes or the benefit or purposes of any other person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise other than the Company, any trade secrets, or other confidential data or information relating to customers, development programs, costs, marketing, trading, investment, sales activities, promotion, credit and financial data, financing methods, or plans of any member of the Company Group; provided that the foregoing shall not apply to information which is generally known to the industry or the public other than as a result of the Individual's breach of this covenant. The Individual agrees that he or she will return to the Company immediately all memoranda, books, papers, plans, information, letters and other data, and all copies thereof or therefrom, in any way relating to the business of any entity within the Company Group, except that he or she may retain personal notes, notebooks and diaries that do not contain confidential information of the type described in the preceding sentence. The Individual further agrees that he or she will not retain or use for his or her account at any time any trade names, trademark or other proprietary business designation used or owned in connection with the business of any entity within the Company Group.
7.    No Solicitation

The Individual represents and covenants that he or she has not previously and that during the period commencing on the date hereof and ending on the second anniversary of the date hereof (the “Limitation Period”) he or she will not influence or attempt to influence customers of

3

any entity within the Company Group (as it may now or in the future be composed), either directly or indirectly, to divert their business away from the Company Group to any individual, partnership, firm, corporation or other entity then in competition with the business of any entity within the Company Group.  The Individual represents and covenants that he or she has not previously and that he or she will not at any time during the Limitation Period directly or indirectly solicit any person who is then, or at any time within six months prior thereto was, an employee of an entity within the Company Group who earned annually $25,000 or more as an employee of such entity during the last six months of his or her own employment to work for any business, individual, partnership, firm, corporation, or other entity then in competition with the business of any entity within the Company Group.
8.    Representations by the Individual

The Individual further expressly acknowledges, represents, and agrees that:
a.He or she was not otherwise entitled to the Severance Benefits (in the event that the Individual is entitled to severance benefits under any federal or state law, the Individual acknowledges, represents and agrees that he or she was not otherwise entitled the level of Severance Benefits being offered and that such benefits exceed the minimum required statutory level of benefits that he or she may have otherwise been entitled to);

b.His or her right to receive the Severance Benefits is consideration for his or her agreements herein and the Severance Benefits (to the extent that they exceed any minimum required statutory level of benefits) would not be paid if he or she did not execute and deliver this Agreement;

c.The restrictions on him or her which are set forth in Sections 6 and 7 are reasonable;

d.He or she was orally advised by the Company and is hereby advised in writing by this Agreement to consult with an attorney before signing this Agreement;

e.He or she was given a copy of this Agreement prior to the date of its execution, and informed that he or she had up to forty-five (45) days within which to consider the Agreement (in the event that there are any changes to this Agreement, the Individual agrees that no changes, whether material or immaterial, will restart the running of the forty-five (45) day period);

f.He or she was informed that he or she has seven (7) days following the date of execution of the Agreement in which to revoke the Agreement; and
 
g.He or she has had the opportunity to consult with his or her advisors and attorneys regarding this Agreement (including, without limitation, its terms, conditions, and effects) and represents that he or she has so consulted with such advisors and attorneys.  

4

		
	9.
	Confidentiality of the Agreement

The parties agree that the terms and conditions of this Agreement shall remain confidential as between the parties and they shall not, except as required by law, disclose them to any other person other than family members, and legal and financial advisors. Without limiting the generality of the foregoing, the parties will not respond to or in any way participate in or contribute to any public discussion, notice or other publicity concerning, or in any way relating to, execution of this Agreement or the events (including any negotiations) which led to the termination of the Individual's employment. Without limiting the generality of the foregoing, the Individual specifically agrees that he or she shall not disclose information regarding this Agreement or the termination of his or her employment to any current or former employee of any entity in the Company Group (other than the Company's executive officers), except to the extent required by law or authorized in writing by the Company's General Counsel. The Individual hereby agrees that disclosure by him or her of any of the terms and conditions of this Agreement in violation of the foregoing shall constitute and be treated as a material breach of this Agreement.
10.    No Prior Assignment or Transfer

The Individual warrants and represents to the Company that he or she has not heretofore assigned or transferred to any person not a party to this Agreement any released matter or any part or portion thereof and he or she shall defend, indemnify and hold harmless the Releasees from and against any claim (including the payment of attorneys' fees and costs actually incurred whether or not litigation is commenced) based on or in connection with or arising out of any such assignment or transfer made, purported or claimed.
11.    No Further Employment Rights

The Individual and the Company acknowledge that any employment relationship between the Individual and the Company Group terminated on the Termination Date, and that they have no further employment or contractual relationship except as may arise out of this Agreement and that the Individual waives any right or claim to reinstatement as an employee of any member of the Company Group.  In the event any member of the Company Group receives inquiries about the Individual from prospective employers, such member shall provide to such persons or entities only the following information: confirmation of the Individual's employment dates, position history, salary history, and that the Individual's employment with the Company Group was mutually terminated.
12.    Taxes

The Individual agrees that he or she shall be exclusively liable for the payment of all federal and state taxes which may be due as the result of the consideration that he or she receives pursuant to this Agreement and the Individual hereby represents that he or she shall make payments on such taxes at the time and in the amount required of him or her. In addition, the Individual hereby agrees fully to defend, indemnify and hold harmless Releasees and each of them from payment of taxes or penalties that are required of them by any government agency at any time as the result of payment of the consideration set forth herein. The Individual further

5

agrees to provide the Releasees and each of them with any tax information that they or it may reasonably request.
13.    Beneficiaries and Successors

Each Releasee shall be deemed to be a beneficiary of the Individual's promises and representations made herein.  In the event of a merger, consolidation, or transfer or sale of all or substantially all of the assets of the Company with or to any other individual(s) or entity, this Agreement shall inure to the benefit of such successor. In the event of a merger, transfer or sale of the stock or assets of an entity in the Company Group that results in such entity not continuing as a member of the Company Group, the Individual's promises and representations made herein shall continue to inure to the benefit of such entity as well as the Company.
14.    Entire Agreement

This instrument constitutes and contains the entire agreement and understanding concerning the Individual's relationship with the Company Group, the termination of the Individual's employment, and the other subject matters addressed herein between the parties, and supersedes and replaces all prior negotiations and all agreements proposed or otherwise, whether written or oral, concerning the subject matters hereof.  This is an integrated document.
Notwithstanding the foregoing paragraph, any obligations of the Individual regarding confidentiality, trade secrets, inventions, no solicitation, or similar matters under an existing agreement or policy to which the Individual is a party or otherwise bound (“Additional Obligations”) shall continue in effect and, to that end, such Additional Obligations are outside of the scope of the foregoing paragraph.  The provisions of this Agreement pertaining to confidentiality, trade secrets, inventions, no solicitation, or similar matters are in addition to (and not in lieu of) any such Additional Obligations.
15.    Revocability

The Individual may revoke this Agreement in its entirety during the seven (7) days following execution of this Agreement by the Individual.  Any revocation of this Agreement must be in writing, clearly state that it is a revocation of this Agreement, and be hand delivered to, or delivered in such a manner to ensure receipt by, the General Counsel of the Company during the revocation period.  This Agreement will become effective, enforceable, and irrevocable upon seven (7) days following its execution by the Individual, unless it is revoked during the seven-day period.
16.    Severability

If any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable.

6

17.    Governing Law

This Agreement shall be deemed to have been executed and delivered within the State of California, and the rights and obligations of the parties hereunder shall be construed and enforced in accordance with, and governed by, the laws of the State of California without regard to principles of conflict of laws.
18.    Mandatory Arbitration

Except for the injunctive relief provided for and contemplated by the following paragraph, which is expressly hereby excluded from this paragraph, any dispute or controversy between the Individual, on the one hand, and the Company (or any other Releasee), on the other hand, in any way arising out of, related to, or connected with this Agreement or the subject matter thereof, or arising out of or related to any other dispute between the Individual and the Company or any other member of the Company Group, now or in the future, shall be resolved through final and binding arbitration in Los Angeles, California, in accordance with the arbitration provisions contained in the Plan.  It is further expressly agreed that Company will or would suffer irreparable injury if the Individual were to breach Section 6 or 7 of this Agreement and that, regardless of the dispute resolution provisions set forth in the foregoing paragraph, the Company would by reason of such breach or potential breach be entitled to injunctive relief in a court of appropriate jurisdiction, and the Individual further consents and stipulates to the entry of such injunctive relief in such a court prohibiting the Individual from engaging in any act, conduct, or relationship in violation of, or that would reasonably result in a violation of, this Agreement.
19.    Counterparts, Headings

This Agreement may be executed in counterparts, and each counterpart, when executed, shall have the efficacy of a signed original. Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose. The headings in this Agreement are only for convenience and ease of reference and are not to be considered in construction or interpretation.
20.    Waiver, Amendment

Failure to insist upon strict compliance with any of the terms, covenants, or conditions hereof shall not be deemed a waiver of such term, covenant, or condition, nor shall any waiver or relinquishment of, or failure to insist upon strict compliance with, any right or power hereunder at any one or more times be deemed a waiver or relinquishment of such right or power at any other time or times.  No waiver shall be binding unless in writing and signed by the party waiving the breach. No amendment of any term or provision of this Agreement shall be binding unless in writing and signed by all parties to this Agreement.
21.    No Presumption

In entering this Agreement, the parties represent that they have had full opportunity to consult with attorneys of their own choice, that the parties have completely read and understood the terms of this Agreement and voluntarily accepted such terms.  If an ambiguity or question of 

7

intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties, and no presumption or burden of proof will arise favoring or disfavoring any party because it or its representatives drafted any of the provisions of this Agreement.
22.    Additional Acts

All parties agree to cooperate fully and to execute any and all supplementary documents and to take all additional actions that may be necessary or appropriate to give full force to the basic terms and intent of this Agreement and which are not inconsistent with its terms.

[The remainder of this page has intentionally been left blank.]

8

I have read the foregoing Agreement and I accept and agree to the provisions it contains and hereby execute it voluntarily with full understanding of its consequences. 

EXECUTED on this ______ day of _________________ at                     ______________________ (County and State where agreement is signed).
The Individual Signature: ____________________    
Print Name: _______________________________

EXECUTED on this ______ day of _________________ at                             ______________________ (County and State where agreement is signed).
Edison International

By: _____________________________________    
Print Name: ______________________________    
Title:     _________________________________________
ENDORSEMENT
I __________________________ (the Individual named in the foregoing Agreement), hereby acknowledge that I was given 45 days to consider the foregoing Agreement and voluntarily chose to sign the Agreement prior to the expiration of the 45-day period. 

EXECUTED this _____ day of __________, ____, at                             ____________________ (County and State where endorsement is signed).

Signature: ____________________________
Print Name: ___________________________

9AGN EX 10.15 2012 12 31

EXHIBIT 10.15

FINAL

ALLERGAN, INC.
 
PENSION PLAN

RESTATEMENT 
January 1, 2013

TABLE OF CONTENTS

	
			
	 
	 
	Page

	
					
	ARTICLE I
	INTRODUCTION
	1
	

	 
	1.1
	Plan Name
	1
	

	 
	1.2
	Plan Purpose
	1
	

	 
	1.3
	Effective Date of 2013 Restated Plan
	1
	

	 
	1.4
	Amendments to Plan
	1
	

	 
	1.5
	Plan Qualification
	3
	

	ARTICLE II
	DEFINITIONS
	4
	

	 
	2.1
	Accrued Benefit
	4
	

	 
	2.2
	Active Participant
	4
	

	 
	2.3
	Actuarial Equivalent
	4
	

	 
	2.4
	Affiliated Company
	4
	

	 
	2.5
	Age
	4
	

	 
	2.6
	Annuity Starting Date
	4
	

	 
	2.7
	Average Earnings
	4
	

	 
	2.8
	Beneficiary
	5
	

	 
	2.9
	Benefit Year
	5
	

	 
	2.10
	Board of Directors
	5
	

	 
	2.11
	Code
	5
	

	 
	2.12
	Committee
	5
	

	 
	2.13
	Company
	5
	

	 
	2.14
	Earnings
	5
	

	 
	2.15
	Effective Date
	7
	

	 
	2.16
	Eligibility Computation Period
	7
	

	 
	2.17
	Eligible Employee
	7
	

	 
	2.18
	Eligible Retirement Plan
	8
	

	 
	2.19
	Eligible Rollover Distribution
	8
	

	 
	2.20
	Employee
	9
	

	 
	2.21
	Employment Commencement Date
	9
	

	 
	2.22
	ERISA
	9
	

	 
	2.23
	Fund
	9
	

	 
	2.24
	Highly Compensated Employee
	10
	

	 
	2.25
	Hour of Service
	11
	

	 
	2.26
	Investment Manager
	11
	

	 
	2.27
	Leased Employee
	11
	

	 
	2.28
	Normal Retirement Date
	11
	

	 
	2.29
	Participant
	11
	

	 
	2.30
	Period of Severance
	11
	

	 
	2.31
	Plan
	11
	

	 
	2.32
	Plan Administrator
	11
	

	 
	2.33
	Plan Year
	12
	

	
			
	 
	 
	 

TABLE OF CONTENTS
(continued)
	
			
	 
	 
	Page

	
					
	 
	2.34
	Primary Social Security Benefit
	12
	

	 
	2.35
	Qualified Joint and Survivor Annuity
	12
	

	 
	2.36
	Reemployment Commencement Date
	12
	

	 
	2.37
	Severance
	12
	

	 
	2.38
	Severance Date
	13
	

	 
	2.39
	Single Life Annuity
	13
	

	 
	2.40
	SKB Plan
	13
	

	 
	2.41
	Special Retirement Eligibility Date
	13
	

	 
	2.42
	Spin-Off Date
	13
	

	 
	2.43
	Sponsor
	14
	

	 
	2.44
	Trust
	14
	

	 
	2.45
	Trustee
	14
	

	 
	2.46
	Vesting Year
	14
	

	ARTICLE III
	PARTICIPATION
	15
	

	 
	3.1
	Participation for the 2003 Plan Year and thereafter
	15
	

	 
	3.2
	Participation for the 2002 Plan Year
	15
	

	 
	3.3
	Participation prior to the 2002 Plan Year
	15
	

	ARTICLE IV
	ACCRUAL OF BENEFITS
	16
	

	 
	4.1
	Accrued Benefit Formula
	16
	

	 
	4.2
	Minimum Accrued Benefit
	16
	

	 
	4.3
	Accrued Benefit for Participants with Earnings in excess of $150,000 prior to January 1, 1994
	16
	

	 
	4.4
	Accrued Benefit for Participants participating in the Voluntary Early Retirement Incentive Program (“VERI”)
	17
	

	 
	4.5
	Temporary Supplemental Monthly Benefit for Participants participating in the Voluntary Early Retirement Incentive Program
	17
	

	ARTICLE V
	BENEFITS
	19
	

	 
	5.1
	Normal Retirement
	19
	

	 
	5.2
	Postponed Retirement
	19
	

	 
	5.3
	Early Retirement
	19
	

	 
	5.4
	Termination of Employment
	22
	

	 
	5.5
	Consent to Pension Payments
	22
	

	 
	5.6
	Maximum Pension
	23
	

	 
	5.7
	Defined Benefit Fraction and Defined Contribution Fraction
	27
	

	 
	5.8
	Mandatory Commencement of Benefits
	28
	

	 
	5.9
	Reemployment
	29
	

	 
	5.10
	Other Disabled Participants
	30
	

	 
	5.11
	Nonforfeitable Interest
	30
	

	 
	5.12
	Compensation for Maximum Pension
	31
	

	ARTICLE VI
	FORM OF PENSIONS
	32
	

	 
	6.1
	Unmarried Participants
	32
	

	
			
	 
	 
	 

TABLE OF CONTENTS
(continued)
	
			
	 
	 
	Page

	
					
	 
	6.2
	Married Participants
	32
	

	 
	6.3
	Election of Optional Form of Benefit
	32
	

	 
	6.4
	Optional Forms of Benefit
	33
	

	 
	6.5
	Cash-Outs
	35
	

	 
	6.6
	Retroactive Annuity Starting Dates
	35
	

	ARTICLE VII
	PRE-RETIREMENT DEATH BENEFITS
	37
	

	 
	7.1
	Eligibility
	37
	

	 
	7.2
	Spousal Benefit
	37
	

	 
	7.3
	Alternate Death Benefit
	38
	

	 
	7.4
	Children’s Survivor Benefit
	38
	

	 
	7.5
	Waiver of Spousal Benefit
	39
	

	ARTICLE VIII
	CONTRIBUTIONS
	40
	

	 
	8.1
	Company Contributions
	40
	

	 
	8.2
	Source of Benefits
	40
	

	 
	8.3
	Irrevocability
	40
	

	 
	8.4
	Funding-Based Limits on Benefits and Benefit Accruals
	42
	

	ARTICLE IX
	ADMINISTRATION
	47
	

	 
	9.1
	Appointment of Committee
	47
	

	 
	9.2
	Appointment of Subcommittee
	47
	

	 
	9.3
	Transaction of Business
	47
	

	 
	9.4
	Voting
	48
	

	 
	9.5
	Responsibility of Committees
	48
	

	 
	9.6
	Committee Powers
	48
	

	 
	9.7
	Additional Powers of Committee
	49
	

	 
	9.8
	Subcommittee Powers
	49
	

	 
	9.9
	Periodic Review of Funding Policy
	50
	

	 
	9.10
	Claims Procedures
	51
	

	 
	9.11
	Appeals Procedures
	51
	

	 
	9.12
	Limitation on Liability
	52
	

	 
	9.13
	Indemnification and Insurance
	52
	

	 
	9.14
	Compensation of Committee and Plan Expenses
	52
	

	 
	9.15
	Resignation
	53
	

	 
	9.16
	Reliance Upon Documents and Opinions
	53
	

	 
	9.17
	Appointment of Investment Manager
	53
	

	ARTICLE X
	AMENDMENT AND ADOPTION OF PLAN
	55
	

	 
	10.1
	Right to Amend Plan
	55
	

	 
	10.2
	Adoption of Plan by Affiliated Companies
	55
	

	ARTICLE XI
	TERMINATION AND MERGER
	56
	

	 
	11.1
	Right to Terminate Plan
	56
	

	 
	11.2
	Merger Restriction
	56
	

	
			
	 
	 
	 

TABLE OF CONTENTS
(continued)
	
			
	 
	 
	Page

	
					
	 
	11.3
	Effect on Trustee and Committee
	56
	

	 
	11.4
	Effect of Reorganization, Transfer of Assets or Change in Control
	56
	

	 
	11.5
	Termination Restrictions
	58
	

	ARTICLE XII
	TOP-HEAVY RULES
	60
	

	 
	12.1
	Applicability
	60
	

	 
	12.2
	Definitions
	60
	

	 
	12.3
	Top-Heavy Status
	61
	

	 
	12.4
	Minimum Benefit
	62
	

	 
	12.5
	Maximum Benefit
	63
	

	 
	12.6
	Minimum Vesting Rules
	65
	

	 
	12.7
	Noneligible Employees
	65
	

	ARTICLE XIII
	RESTRICTION ON ASSIGNMENT OR OTHER ALIENATION OF PLAN BENEFITS
	66
	

	 
	13.1
	General Restrictions Against Alienation
	66
	

	 
	13.2
	Qualified Domestic Relations Orders
	66
	

	ARTICLE XIV
	MISCELLANEOUS
	69
	

	 
	14.1
	No Right of Employment Hereunder
	69
	

	 
	14.2
	Effect of Article Headings
	69
	

	 
	14.3
	Limitation on Company Liability
	69
	

	 
	14.4
	Interpretation
	69
	

	 
	14.5
	Withholding For Taxes
	69
	

	 
	14.6
	California Law Controlling
	69
	

	 
	14.7
	Plan and Trust as One Instrument
	69
	

	 
	14.8
	Invalid Provisions
	69
	

	 
	14.9
	Counterparts
	69
	

	 
	14.10
	Forfeitures
	70
	

	 
	14.11
	Facility of Payment
	70
	

	 
	14.12
	Lapsed Benefits
	70
	

	 
	14.13
	Correction of Errors
	70
	

	APPENDIX A
	1
	

	APPENDIX B
	1
	

	APPENDIX C
	1
	

	
			
	 
	 
	 

ALLERGAN, INC. 
PENSION PLAN
 
ARTICLE I
INTRODUCTION
1.1    Plan Name. This document, made and entered into by Allergan, Inc., a Delaware corporation (“Allergan”) amends and restates in its entirety the “Allergan, Inc. Pension Plan (Restated 2011)” and shall be known hereafter as the “Allergan, Inc. Pension Plan (Restated 2013).”
1.2    Plan Purpose. The purpose of the Allergan, Inc. Pension Plan (Restated 2013), hereinafter referred to as the “Plan,” is to provide additional retirement income to Eligible Employees of Allergan, and any Affiliated Companies that are authorized by the Board of Directors of Allergan to participate in the Plan for their future economic security. The Plan is fully funded through Company contributions and the assets of the Plan shall be administered, distributed, forfeited and otherwise governed by the provisions of the Plan, which is to be administered by the Committee for the exclusive benefit of Participants in the Plan and their Beneficiaries.
1.3    Effective Date of 2013 Restated Plan. The Effective Date of this amended and restated Plan shall be January 1, 2013 unless otherwise specified in the Plan. The provisions of this Plan document apply to Eligible Employees who have completed at least one (1) Hour of Service for Allergan or any Affiliated Companies on or after January 1, 2013 and the rights and benefits, if any, of Eligible Employees or Participants whose employment with Allergan or any Affiliated Companies terminated prior to January 1, 2013 shall be determined in accordance with the provisions of the Plan then in effect unless otherwise provided herein and subject to any modification provided herein that may affect the payment of benefits under the Plan.
1.4    Amendments to Plan. The Plan has been amended from time to time since its Original Effective Date of July 26, 1989 to reflect changes in the Plan’s operations and applicable law including, but not limited to, the following:
(a)    This Plan document for the Allergan, Inc. Pension Plan (Restated 2013) which restates the Plan to incorporate the provisions of the First and Second Amendments to the Allergan, Inc. Pension Plan (Restated 2011), which amended the Plan to reflect changes made by the Internal Revenue Code for a New Puerto Rico, revise the definition of “Earnings” to remove amounts deferred under the Executive Deferred Compensation Plan, incorporate certain provisions enacted under the Worker, Retiree, and Employer Recovery Act of 2008, and to comply with the changes to the qualification requirements listed on the “2011 Cumulative List of Changes in Plan Qualification Requirements” as set forth in Notice 2011-97.
(b)    The Plan document for the Allergan, Inc. Pension Plan (Restated 2011), that incorporated the provisions of the First, Second, and Third Amendments to the Allergan, Inc. Pension Plan (Restated 2008) and amended the Plan: (i) to comply with certain changes 

1

made by the Pension Protection Act (including authorizing rollovers to Roth IRAs, adding funding-based limitations under Code section 436 and reflecting new actuarial assumptions applicable under Code sections 417(e)(3) and 415) and the Heroes Earnings and Assistance Relief Tax Act of 2008, conformed Plan language with the updated Treasury Regulations issued under Code section 415, revised the definition of Compensation for Code section 415 purposes to include payments made to an Employee for services rendered during the course of employment and paid within two and a half months of Severance, changed the normal form of qualified joint and survivor annuity from 50% to 100%, and clarified that the children’s survivor benefit will equal the amount that would be paid to a spouse as a 50% joint and survivor annuity; and (ii) amended the Plan to change the “stability period” and “lookback month” used for interest rate assumptions under Code section 417(e)(3) for Annuity Starting Dates on and after January 1, 2011.
(c)    The Plan document for the Allergan, Inc. Pension Plan (Restated 2008) that incorporated the provisions of the First and Second Amendments to the Allergan, Inc. Pension Plan (Restated 2005) and amended the Plan: (i) to comply with all changes made by the Economic Growth and Tax Relief Reconciliation Act of 2001 (with technical corrections made by the Job Creation and Worker Assistance Act of 2002), the Pension Funding Equity Act of 2004, the American Jobs Creation Act of 2004, and the Gulf Opportunity Zone Act of 2005 as well as the changes to the qualification requirements listed on the “2006 Cumulative List of Changes in Plan Qualification Requirements” as set forth in Notice 2007-3, (ii) to comply with certain changes made by the Pension Protection Act of 2006 by (1) adding a 75% contingent beneficiary payment option, (2) extending the distribution election period from 90 days to up to 180 days and providing that distribution elections will include an explanation of a Participant’s right to defer and the effect of deferring benefit payment, and (3) permitting non-spouse beneficiaries to elect direct rollovers of lump sum distributions, and (iii) to clarify certain operational provisions regarding, including but not limited to, the pension amount paid for benefit commencement dates after age 65.
(d)    The Plan document for the Allergan, Inc. Pension Plan (Restated 2005) that incorporated the provisions of the amendments made under the First and Second Amendments to the Allergan, Inc. Pension Plan (Restated 2003) and amended the Plan to eliminate the mandatory cash-out of Accrued Benefits that do not exceed $5,000 effective March 28, 2005.
(e)    Amendments to the Plan that (i) limited participation in the Plan to those Employees who were Eligible Employees (as defined in Section 2.17(b)) on September 30, 2002 who made a one-time irrevocable election to continue active participation in the Plan for Plan Years beginning on and after January 1, 2003 until their participation is terminated under the terms of the Plan in lieu of ceasing active participation in the Plan and participating in the Retirement Contribution feature of the Allergan, Inc. Savings and Investment Plan as provided under and subject to the terms of that plan and (ii) provided further that those Employees who elected to cease active participation in the Plan: (1) shall not be credited with Benefit Years after December 31, 2002 but shall continue to be credited with Vesting Years as provided under the terms of the Plan and (2) shall be entitled to a monthly pension 

2

upon completing five (5) Vesting Years or upon reaching the Special Retirement Eligibility Date and completing one (1) Vesting Year, the amount of which shall be equal to their Accrued Benefit determined as of December 31, 2002, at such times and in such forms as permitted under the Plan.
(f)    Amendments to the Plan that in connection with the distribution of the stock of Advanced Medical Optics, Inc. (“AMO”) by Allergan to its stockholders on June 29, 2002, provided that (i) AMO Employees (as defined in Section 2.20) shall cease to be eligible to participate in the Plan and shall cease to be credited with Benefit Years and Vesting Years under the Plan, (ii) AMO Employees shall have a nonforfeitable interest in their Accrued Benefits notwithstanding Section 5.11, and (iii) the assets attributable to, and the liabilities relating to, arising out of, or resulting from the Accrued Benefits of AMO Employees shall remain with the Pension Plan and shall be payable from the Plan to AMO Employees at such times and in such forms as permitted under the Plan.
(g)    Amendments to the Plan that in connection with the closure of the Allergan, Inc. Medical Plastics facility in Santa Ana, California (“Medical Plastics”), provided that (i) Participants whose employment is terminated as a result of the closure of Medical Plastics, as determined by the payroll records of the Sponsor or any Affiliated Company shall have a nonforfeitable interest in their Accrued Benefits notwithstanding Section 5.11 effective as of their termination dates, and (ii) the Accrued Benefits of such Participants shall be payable from the Plan to such Participants at such times and in such forms as permitted under the Plan.
1.5    Plan Qualification. The Plan is an employee benefit plan that is intended to qualify under Code Section 401(a) as a qualified pension plan so as to assure that the trust created under the Plan is tax exempt pursuant to Code Section 501(a). The Plan’s last determination letter was issued by the Internal Revenue Service on September 22, 2010 with respect to the Allergan, Inc. Pension Plan (Restated 2008). This Plan document is intended to reflect all law changes made by the Pension Protection Act of 2006, the Heroes Earnings Assistance and Relief Tax Act of 2008 (the “HEART Act”), the Worker, Retiree and Employer Recovery Act of 2008 (“WRERA”), as well as the changes to the qualification requirements listed on the “2011 Cumulative List of Changes in Plan Qualification Requirements” as set forth in Notice 2011-97. 

3

ARTICLE II
DEFINITIONS
2.1    Accrued Benefit. “Accrued Benefit” shall mean, for each Participant, the amount of pension accrued by him or her under Article IV as of the date of reference.  An Accrued Benefit shall only be payable in accordance with Articles V and VII.
2.2    Active Participant. “Active Participant” shall mean a Participant who is an Eligible Employee.
2.3    Actuarial Equivalent. “Actuarial Equivalent” shall mean a benefit of equal actuarial value under the assumptions set forth in Appendix A.
2.4    Affiliated Company. “Affiliated Company” shall mean (i) any corporation, other than the Sponsor, which is included in a controlled group of corporations (within the meaning of Code Section 414(b)) of which the Sponsor is a member, (ii) any trade or business, other than the Sponsor, which is under common control (within the meaning of Code Section 414(c)) with the Sponsor, (iii) any entity or organization, other than the Sponsor, which is a member of an affiliated service group (within the meaning of Code Section 414(m)) of which the Sponsor is a member, and (iv) any entity or organization, other than the Sponsor, which is affiliated with the Sponsor under Code Section 414(o).  An entity shall be an Affiliated Company pursuant to this Section only during the period of time in which such entity has the required relationship with the Sponsor under clauses (i), (ii), (iii) or (iv) of this Section after the Original Effective Date of the Plan.
Notwithstanding any provision of the Plan to the contrary, effective as of January 1, 2011, for purposes of determining the entities considered “Affiliated Companies” under the Puerto Rico Code, the rules of Section 1081.01(a)(14) shall be followed to the extent adherence to such rules does not conflict with the Code.  
2.5    Age. “Age” shall mean a Participant’s age at his or her most recent birthday.
2.6    Annuity Starting Date. “Annuity Starting Date” shall mean the first day of the first period for which a Participant’s pension is paid as an annuity or as any other optional form of benefit.
2.7    Average Earnings. “Average Earnings” shall mean, for each Participant, 12 times the monthly average of his or her Earnings for the 60 consecutive months that yield the highest average. For purposes of this Section, (i) nonconsecutive months interrupted only by months in which a Participant has no Earnings shall be treated as consecutive and (ii) unless the Sponsor expressly determines otherwise, and except as is expressly provided otherwise in the Plan or in resolutions of the Board of Directors, amounts paid to a Participant by a domestic Affiliated Company prior to the effective date on which it became an Affiliated Company (that would have been Earnings if paid by the Company) before he or she became a Participant shall be treated as Earnings but only to the extent such Earnings when added to the Earnings actually paid by the Company do not result in more than 60 consecutive months of Earnings.  If a Participant does not 

4

have Earnings for 60 consecutive months, his or her Average Earnings shall be 12 times the monthly average of his or her Earnings.  For periods beginning on or after April 1, 2000, a partial month of employment shall be taken into account only if doing so yields a higher monthly average.
2.8    Beneficiary. “Beneficiary” or “Beneficiaries” shall mean the person or persons last designated by the Participant to receive the interest of a deceased Participant.
2.9    Benefit Year. “Benefit Year” shall mean a credit used to measure a Participant’s service in calculating his or her Accrued Benefit. Each Participant shall be credited with a number of Benefit Years equal to 1/365th of (i) the aggregate number of days between his or her Employment Commencement Date (or Reemployment Commencement Date) of the Employee and the Severance Date which immediately follows that Employment Commencement Date (or Reemployment Commencement Date) and (ii) the aggregate number of days during a Period of Severance of less than 30 days, but in each case, disregarding any day such Participant is not an Active Participant and, for periods beginning on or after January 1, 2003, any day such Participant is on an “Extended Leave of Absence” as such term is defined in the Allergan, Inc. Welfare Benefits Plan.
2.10    Board of Directors. “Board of Directors” shall mean the Board of Directors of the Sponsor (or its delegate) as it may from time to time be constituted.
2.11    Code. “Code” shall mean the United States Internal Revenue Code of 1986 and the regulations thereunder.  Effective January 1, 2011, “Puerto Rico Code” shall mean the  Internal Revenue Code for a New Puerto Rico and the regulations thereunder.  Reference to a specific United States Internal Revenue Code Section or Internal Revenue Code for a New Puerto Rico Section shall be deemed also to refer to any applicable regulations under that Section, and shall also include any comparable provisions of future legislation that amend, supplement or supersede that specific Section.
2.12    Committee. “Committee” shall mean the committee (or its delegate) appointed under the provisions of Section 9.1 to administer the Plan.
2.13    Company. “Company” shall mean collectively the Sponsor and each Affiliated Company that adopts the Plan in accordance with Section 10.2.
2.14    Earnings. “Earnings” shall mean the following:
(a)    Earnings shall include amounts paid during a Plan Year to an Employee by the Company for services rendered, including base earnings, commissions and similar incentive compensation, cost of living allowances earned within the United States of America, holiday pay, overtime earnings, pay received for election board duty, pay received for jury and witness duty, pay received for military service (annual training), pay received for being available for work, if required (call-in premium), shift differential and premium, sickness/accident related pay, vacation pay, vacation shift premium, and bonus amounts paid under the (i) Sales Bonus Program, (ii) Management Bonus Plan or Executive Bonus Plan, either in cash or in restricted stock, and (iii) group performance sharing payments, such as the “Partners for Success.”

5

(b)    Effective January 1, 2011, Earnings shall include amounts of salary reduction elected by the Employee under a Code Section 401(k) cash or deferred arrangement or a Code Section 125 cafeteria plan or a Puerto Rico Code Section 1081.01(d) cash or deferred arrangement, amounts paid to an Employee pursuant to a “split pay arrangement” between the Company and an Affiliated Company, and amounts deferred under the Executive Deferred Compensation Plan, that were otherwise payable in respect of services rendered on or before December 31, 2011.
(c)    Earnings shall not include business expense reimbursements; Company gifts or the value of Company gifts; Company stock related options and payments; employee referral awards; flexible compensation credits paid in cash; special overseas payments, allowances and adjustments including, but not limited to, pay for cost of living adjustments and differentials paid for service outside of the United States (including Puerto Rico), expatriate reimbursement payments, and tax equalization payments; forms of imputed income; long-term disability pay; payment for loss of Company car; Company car allowance; payments for patents or for writing articles; relocation and moving expenses; retention and employment incentive payments; severance pay; long-term incentive awards, bonuses or payments; “Impact Award” payments; “Employee of the Year” payments; “Awards for Excellence” payments; special group incentive payments and individual recognition payments which are nonrecurring in nature; tuition reimbursement; and contributions by the Company under the Plan or distributions hereunder, any contributions or distributions pursuant to any other plan sponsored by the Company and qualified under Code Section 401(a) and/or Puerto Rico Code Section 1081.01(d) (other than contributions constituting salary reduction amounts elected by the Employee under a Code Section 401(k) cash or deferred arrangement or a Puerto Rico Code Section 1081.01(d) cash or deferred arrangement), any payments under a health or welfare plan sponsored by the Company, or premiums paid by the Company under any insurance plan for the benefit of Employees.
(d)    For purposes of this Section and notwithstanding paragraph (a) above, (i) for periods on or after January 1, 2005, Earnings shall not include lump sum amounts paid to Employees under the Company’s vacation buy-back policy, (ii) for periods beginning on or after January 1, 2003, if a Participant is not an Active Participant at any time during the month, he or she shall be deemed to have no Earnings for that month, (iii) for the period beginning on April 1, 2001 and ending on December 31, 2002, if a Participant is an Employee at any time during a month, Earnings for that month shall be the Earnings actually paid to the Participant during such month, and (iv) for periods prior to April 1, 2001, if a Participant is not an Employee for the entire month, he or she shall be deemed to have no Earnings for that month.  For purposes of this Section and notwithstanding paragraphs (a) or (b) above, Earnings shall not include amounts deferred under the Executive Deferral Compensation Plan that were otherwise payable in respect of services rendered on or after January 1, 2012.
(e)    Earnings shall not exceed $200,000, as adjusted for cost-of-living increases in accordance with Code Section 401(a)(17)(B), for purposes of determining all benefits provided under the Plan.  Any cost-of-living adjustments in effect for a calendar year shall apply to the Plan Year beginning with or within such calendar year.  For purposes of 

6

determining benefits provided under the Plan in a Plan Year beginning on or after January 1, 2002, Earnings for any prior Plan Year shall not exceed $200,000.
2.15    Effective Date. “Effective Date” of this restated Plan shall mean January 1, 2013 except as provided herein or as otherwise required for the Plan to continue to maintain its qualified status under Code Section 401(a).  The “Original Effective Date” of the Plan shall mean July 26, 1989.
2.16    Eligibility Computation Period. “Eligibility Computation Period” shall mean a 365 day period used for determining whether an Employee is eligible to participate in the Plan. Each Employee shall be credited with (i) the aggregate number of days between each Employment Commencement Date (or Reemployment Commencement Date) of the Employee and the Severance Date which immediately follows that Employment Commencement Date (or Reemployment Commencement Date) and (ii) the aggregate number of days during a Period of Severance of less than twelve months.
2.17    Eligible Employee. “Eligible Employee” shall mean:
(a)    For Plan Years beginning on or after January 1, 2003 and subject to paragraph (d) below, an Eligible Employee is any “Election Eligible Employee” who makes a one-time irrevocable election under procedures established by the Sponsor to continue as an Active Participant for Plan Years beginning on or after January 1, 2003 and who did not incur a Severance on or after October 1, 2002.  An “Election Eligible Employee” is any Employee who is an Eligible Employee (as defined in paragraph (b) below) on September 30, 2002.  The classification of an Employee as an Eligible Employee for Plan Years beginning on or after January 1, 2003 shall be determined solely from the records obtained during the election period established by the Sponsor.
(b)    For the 2002 Plan Year only and subject to paragraph (d) below, an Eligible Employee is any Employee who is employed by the Company but not by a joint venture in which the Company is a joint venturer and whose Employment Commencement Date or most recent Reemployment Commencement Date is prior to October 1, 2002; provided, however, if a former Employee is rehired on or after October 1, 2002 but prior to January 1, 2003 and would be an Eligible Employee but for his or her Reemployment Commencement Date, he or she shall be an Eligible Employee commencing on his or her Reemployment Commencement Date but shall cease to be an Eligible Employee as of January 1, 2003.  Notwithstanding the foregoing, a Leased Employee or an Employee of the Company who, as of October 1, 2002, is neither a United States citizen nor a United States resident shall not be an Eligible Employee.
(c)    For Plan Years beginning prior to January 1, 2002 and subject to paragraph (d) below, an Eligible Employee is any Employee who is employed by the Company but not by a joint venture in which the Company is a joint venturer; provided, however, a Leased Employee or an Employee of the Company who is neither a United States citizen nor a United States resident shall not be an Eligible Employee.

7

(d)    Notwithstanding paragraphs (a), (b), and (c) above, (i) an Employee with respect to whom retirement benefits have been the subject of good faith collective bargaining shall be an Eligible Employee to the extent a collective bargaining agreement relating to him or her so provides and (ii) a temporary employee classified as such by the Sponsor or an Affiliated Company shall not be an Eligible Employee for Plan Years beginning prior to January 1, 1996.
2.18    Eligible Retirement Plan. “Eligible Retirement Plan” shall mean (i) an individual retirement account or annuity described in Code Section 408(a) or 408(b) or a Roth IRA described in Code Section 408A(b), (ii) a qualified retirement plan described in Code Section 401(a) or 403(a) that accepts Eligible Rollover Distributions, (iii) an annuity contract described in Code Section 403(b) that accepts Eligible Rollover Distributions, and (iv) an eligible plan described in Code Section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan.  Notwithstanding the foregoing, “Eligible Retirement Plan” shall refer only to (i) with respect to a Participant or Beneficiary who is a resident of Puerto Rico, a qualified retirement plan described in Code Section 401(a) or 403(a) that accepts Eligible Rollover Distributions and that is also a qualified plan under Puerto Rico Code Section 1081.01 and (ii) with respect to a non-spouse Beneficiary, an individual retirement account or annuity described in Code Section 408(a) or 408(b) or a Roth IRA described in Code Section 408A(b).
2.19    Eligible Rollover Distribution. “Eligible Rollover Distribution” shall mean any distribution of all or any portion of the balance to the credit of the Distributee, except that an Eligible Rollover Distribution shall not include:
(a)    any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee’s designated beneficiary, or for a specified period of ten years or more;
(b)    any distribution to the extent such distribution is required under Code Section 401(a)(9);
(c)    the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); and
(d)    any other distribution that is reasonably expected to total less than $200 during the year.
For purposes of this Section, ‘Distributee’ shall mean any Employee or former Employee receiving a distribution from the Plan.  A Distributee also includes the Employee or former Employee’s Beneficiary and the Employee or former Employee’s spouse or former spouse who is the Alternate Payee under a Qualified Domestic Relations Order (as defined in Article XIII) with regard to the interest of the spouse or former spouse.  For purposes of the Puerto Rico Code, any 

8

distribution to a Distributee who is a resident of Puerto Rico shall be an Eligible Rollover Distribution.
2.20    Employee. “Employee” shall mean, for purposes of the Plan, any individual who is employed by the Sponsor or an Affiliated Company, any portion of whose income is subject to withholding of income tax and/or for whom Social Security contributions are made by the Sponsor or an Affiliated Company; provided, however, that such term shall not include:
(a)    Any individual who performs services for the Sponsor or an Affiliated Company and who is classified or paid as an independent contractor as determined by the payroll records of the Sponsor or an Affiliated Company even if a court or administrative agency determines that such individual is a common-law employee and not an independent contractor;
(b)    Any individual who performs services for the Sponsor or an Affiliated Company pursuant to an agreement between the Sponsor or an Affiliated Company and any other person including a leasing organization except to the extent such individual is a Leased Employee; and
(c)    Any individual whose employment is transferred from the Sponsor or an Affiliated Company to Advanced Medical Optics, Inc. (“AMO”) in connection with the distribution of the stock of AMO by the Sponsor to its stockholders, effective as of the day following such transfer, hereinafter referred to as an “AMO Employee.”  An individual is an AMO Employee if classified or identified as such in the payroll records of the Sponsor or an Affiliated Company or in the Employee Matters Agreement entered into between the Sponsor and AMO.
Effective January 1, 2009, solely to the extent required by Code Section 414(u)(12), the term “Employee” shall include an individual receiving differential wage payments (within the meaning of Code Section 414(u)(12)(D)) from the Sponsor or an Affiliated Company.
2.21    Employment Commencement Date. “Employment Commencement Date” shall mean the date on which an Employee is first credited with an Hour of Service for the Sponsor or an Affiliated Company.  An Employee shall not, for the purpose of determining his or her Employment Commencement Date, be deemed to have commenced employment with an Affiliated Company prior to the effective date on which the entity became an Affiliated Company unless the Sponsor expressly determines otherwise, and except as is expressly provided otherwise in the Plan, in Appendix C to the Plan, or in resolutions of the Board of Directors.
2.22    ERISA. “ERISA” shall mean the Employee Retirement Income Security Act of 1974 and the regulations thereunder. Reference to a specific ERISA Section shall be deemed also to refer to any applicable regulations under that Section, and shall also include any comparable provisions of future legislation that amend, supplement or supersede that specific Section.
2.23    Fund. “Fund” shall mean the assets accumulated for purposes of the Plan.

9

2.24    Highly Compensated Employee. “Highly Compensated Employee” shall mean:
(a)    An Employee who performed services for the Company during the Plan Year or preceding Plan Year and is a member of one or more of the following groups:
(i)    Employees who at any time during the Plan Year or preceding Plan Year are or were Five Percent Owners (as defined in Section 12.2).
(ii)    Employees who received Compensation during the preceding Plan Year from the Company in excess of $80,000 (as adjusted in such manner as permitted under Code Section 414(q)(1)).
(b)    The term “Highly Compensated Employee” includes a Former Highly Compensated Employee.  A Former Highly Compensated Employee is any Employee who was (i) a Highly Compensated Employee when he or she terminated employment with the Company or (ii) a Highly Compensated Employee at any time after attaining age 55. Notwithstanding the foregoing, an Employee who separated from service prior to 1987 shall be treated as a Former Highly Compensated Former Employee only if during the separation year (or year preceding the separation year) or any year after the Employee attains age 55 (or the last year ending before the Employee’s 55th birthday), the Employee either received Compensation in excess of $50,000 or was a Five Percent Owner (as defined in Section 12.2).
(c)    For the purpose of this Section, the term “Compensation” means compensation as defined in Code Section 415(c)(3), as set forth in Section 5.12.
(d)    For the purpose of this Section, the term “Company” shall mean the Sponsor and any Affiliated Company.
(e)    Effective January 1, 2011, an Employee is a Highly Compensated Employee under the Puerto Rico Code if such Employee performed services for the Company during the Plan Year and meets one or more of the following criteria:
(i)    such Employee is an officer of the Company at any time during the Plan Year;
(ii)    such Employee is, at any time during the Plan Year, an owner of more than 5% of stock with voting rights or of  the value of all classes of stock of the Company.  For purposes of this Subsection (ii), the controlled group rules of Section 1010.04 of the Puerto Rico Code, the affiliated entity rules of Section 1010.05 of the Puerto Rico Code and the affiliated service group rules of Section 1081.01(a)(14) of the Puerto Rico Code shall be used in computing the ownership percentage; and

10

(iii)    such Employee received Compensation during the preceding Plan Year from the Company in excess of the limit under Code Section 414(q)(1)(B).
The determination of who is a Highly Compensated Employee, including the determination of the Compensation that is considered, shall be made in accordance with Code Section 414(q) and applicable regulations to the extent permitted thereunder.
2.25    Hour of Service. “Hour of Service” shall mean an hour for which an Employee is paid or entitled to payment for the performance of duties for the Sponsor and any Affiliated Company.
2.26    Investment Manager. “Investment Manager” shall mean the one or more Investment Managers, if any, that are appointed pursuant to the provisions of Section 9.15 and who constitute investment managers under Section 3(38) of ERISA.
2.27    Leased Employee. “Leased Employee” shall mean any person (other than an Employee of the recipient) who pursuant to an agreement between the recipient and any other person (“leasing organization”) has performed services for the recipient (or for the recipient and related persons determined in accordance with Code Section 414(n)(6)) on a substantially full time basis for a period of at least one (1) year, and such services are performed under the primary direction or control by recipient employer.  Contributions or benefits provided to a Leased Employee by a leasing organization which are attributable to services performed for the recipient employer shall be treated as provided by the recipient employer.  A Leased Employee shall not be considered an Employee of the recipient if Leased Employees do not constitute more than 20 percent of the recipient’s nonhighly compensated workforce and such Leased Employee is covered by a money purchase pension plan providing (i) a nonintegrated employer contribution rate of at least ten (10) percent of compensation as defined under Code Section 415(c)(3); (ii) immediate participation; and (iii) full and immediate vesting.
2.28    Normal Retirement Date. “Normal Retirement Date” shall mean the date a Participant attains age 65.
2.29    Participant. “Participant” shall mean: (i) an Active Participant, or (ii) a former Active Participant who is eligible for an immediate or deferred benefit under Article V.
2.30    Period of Severance. “Period of Severance” shall mean the period of time commencing on an Employee’s Severance Date and ending on the Employee’s subsequent Reemployment Commencement Date, if any.
2.31    Plan. “Plan” shall mean the Allergan, Inc. Pension Plan described herein and as amended from time to time.
2.32    Plan Administrator. “Plan Administrator” shall mean the administrator of the Plan within the meaning of Section 3(16)(A) of ERISA.  The Plan Administrator shall be the Allergan Executive Committee whose members are appointed by the Board of Directors pursuant to the provisions of Section 9.1 to administer the Plan.

11

2.33    Plan Year. “Plan Year” shall mean the calendar year.  The Plan Year shall be the limitation year for purposes of computing limitations on contributions, benefits and allocations.
2.34    Primary Social Security Benefit. “Primary Social Security Benefit” shall mean for purposes of determining a Participant’s Accrued Benefit:
(a)    for an Employee whose Severance occurs on or after the date he or she attains Age 62, the immediate benefit that is or would have been payable to him or her at Age 65 or his or her actual retirement, if earlier, under the Social Security Act (or foreign equivalent) as then in effect; or
(b)    for an Employee whose Severance occurs prior to Age 62, the benefit that would be payable to him or her at Age 62 under the Social Security Act (or foreign equivalent) as in effect when he or she incurs a Severance, without adjustments for cost of living, projected on the assumption that for each month before Age 60, he or she continues to receive wages for Social Security purposes equal to one-twelfth of his or her Earnings for the calendar year preceding the year in which his or her Severance occurs, and that he or she shall receive no further wages for Social Security purposes after the later of Age 60 or his or her actual Severance.
2.35    Qualified Joint and Survivor Annuity. “Qualified Joint and Survivor Annuity” shall mean the form of pension benefit described in this Section.  Under a Qualified Joint and Survivor Annuity, monthly payments to the Participant shall begin on the date provided in Article V and continue until the last day of the month in which the Participant’s death occurs. On the first day of the following month, monthly payments in an amount equal to 100% of the monthly payment to the Participant which is attributable to his or her Accrued Benefit shall begin to his or her surviving spouse but only if the spouse was married to the Participant on the date as of which payments to the Participant began.  Payments to a surviving spouse under a Qualified Joint and Survivor Annuity shall end on the last day of the month in which the spouse’s death occurs.  The anticipated payments under a Qualified Joint and Survivor Annuity shall be the actuarial equivalent of a pension in the form of a Single Life Annuity in the amount set forth in Article V.
2.36    Reemployment Commencement Date. “Reemployment Commencement Date” shall mean, in the case of an Employee who incurs a Severance and who is subsequently reemployed by the Sponsor or an Affiliated Company, the first day following the Severance on which the Employee is credited with an Hour of Service for the Sponsor or an Affiliated Company with respect to which he or she is compensated or entitled to compensation by the Sponsor or an Affiliated Company.  An Employee shall not, for the purpose of determining his or her Reemployment Commencement Date, be deemed to have commenced employment with an Affiliated Company prior to the effective date on which the entity became an Affiliated Company unless the Sponsor shall expressly determine otherwise, and except as is expressly provided otherwise in the Plan or in resolutions of the Board of Directors.
2.37    Severance. “Severance” shall mean the termination of an Employee’s employment with the Sponsor or an Affiliated Company by reason of such Employee’s death, retirement, 

12

resignation or discharge, or otherwise. For purposes of determining a Participant’s Vesting Years and Benefit Years, such Participant shall not incur a Severance by reason of the following:
(a)    absence due to service in the Armed Forces of the United States, if: (i) the Employee makes application to the Company for resumption of work with the Company, following discharge, within the time specified by then applicable law or absence due to qualified military service if so required by Code Section 414(u); or (ii) solely for the purpose of determining Vesting Years, the Participant dies on or after January 1, 2007 while performing “qualified military service,” as defined in Code Section 414(u)(5);
(b)    absence resulting from temporary disability on account of illness or accident; 
(c)    absence while covered by a long term disability plan maintained by the Company that is prior to the earlier of (i) a Participant’s Normal Retirement Date (or, if later, such date the Participant is no longer classified as an Eligible Employee as determined by the payroll records of the Sponsor or Affiliated Company or (ii) the date his or her pension under the Plan commences, provided that the Participant has at least five (5) Vesting Years as of the first date of such absence; or
(d)    such other types of absence as the Company may determine by uniform policy.
2.38    Severance Date. “Severance Date” shall mean, in the case of any Employee who incurs a Severance, the day on which such Employee is deemed to have incurred such Severance as determined in accordance with the provisions of Section 2.37.  In the case of any Employee who incurs a Severance as provided under Section 2.37 and who is entitled to a subsequent payment of compensation for reasons other than future services (e.g., as back pay for past services rendered or as payments in the nature of severance pay), the Severance Date of such Employee shall be as of the effective date of the Severance event (e.g., the date of his or her death, effective date of a resignation or discharge, etc.), and the subsequent payment of the aforementioned type of post-Severance compensation shall not operate to postpone the timing of the Severance Date for purposes of the Plan except as provided in Section 2.37.
2.39    Single Life Annuity. “Single Life Annuity” shall mean the form of pension benefit described in this Section.  Under a Single Life Annuity, monthly payments to the Participant shall begin on the date provided in Article V and continue until the last day of the month in which the Participant’s death occurs.
2.40    SKB Plan. “SKB Plan” shall mean the Retirement Plan for Employees of SmithKline Beckman Corporation.
2.41    Special Retirement Eligibility Date. “Special Retirement Eligibility Date” shall mean the date a Participant attains age 62.
2.42    Spin-Off Date. “Spin-Off Date” shall mean on or about July 26, 1989, SmithKline Beckman Corporation distributed the stock of the Sponsor to its shareholders, rendering Eligible 

13

Employees of the Company ineligible to participate in the SKB Plan.  The liability for the accrued benefits of Eligible Employees under the SKB Plan and assets sufficient to satisfy applicable legal requirements were transferred to the Plan in November of 1989.  The benefits which were previously provided by the SKB Plan for former employees of Company who terminated prior to the Spin-Off Date shall be paid under the Plan.
2.43    Sponsor. “Sponsor” shall mean Allergan, Inc., a Delaware corporation, and any successor corporation or entity.
2.44    Trust. “Trust” or” Trust Fund” shall mean the one or more trusts created for funding purposes under the Plan.
2.45    Trustee. “Trustee” shall mean the individual or entity acting as a trustee of the Trust Fund.
2.46    Vesting Year. “Vesting Year” shall mean a credit awarded as follows:
(a)    In the case of any Employee who was employed by the Sponsor or an Affiliated Company at any time prior to the Original Effective Date, for the period prior to the Original Effective Date, such Employee shall be credited with that number of Vesting Years under this Plan equal to the number of Vesting Years (as that term is defined in the SKB Plan) credited to such Employee under the SKB Plan as of the Original Effective Date.
(b)    In the case of any Employee who is employed by the Sponsor or an Affiliated Company on or after the Original Effective Date, an Employee shall be credited with a number of Vesting Years equal to 1/365th of (i) the aggregate number of days between each Employment Commencement Date (or Reemployment Commencement Date) of the Employee and the Severance Date which immediately follows that Employment Commencement Date (or Reemployment Commencement Date) and (ii) the aggregate number of days for any Period of Severance of less than twelve months. Solely for the purpose of determining an Employee’s Vesting Years under this paragraph (b), in the case of an Employee who is employed by the Sponsor or an Affiliated Company on the Original Effective Date, that date shall be deemed to be an Employment Commencement Date of the Employee (with Vesting Years for the period prior to the Original Effective Date determined under paragraph (a) above).
(c)    In the case of any Employee who is employed under Departments 120 through 130 at the Allergan Medical Optics - Lenoir facility, such Employee shall be credited with a number of Vesting Years equal to 1/365th of (i) the aggregate number of days between each Employment Commencement Date (or Reemployment Commencement Date) of the Employee and the Severance Date which immediately follows that Employment Commencement Date (or Reemployment Commencement Date) and (ii) the aggregate number of days for any Period of Severance of less than twelve months. Solely for the purpose of determining an Employee’s Vesting Years under this paragraph (c), an Employee’s Employment Commencement Date or Reemployment Commencement Date shall include dates prior to Allergan Medical Optics - Lenoir facility becoming an Affiliated Company.

14

ARTICLE III
PARTICIPATION
3.1    Participation for the 2003 Plan Year and thereafter.  For Plan Years beginning on or after January 1, 2003, participation in the Plan shall be determined as follows:
(a)    Each Employee or former Employee who is a Participant in the Plan as of December 31, 2002 shall continue as a Participant and each Participant who is an Active Participant in the Plan as of December 31, 2002 shall continue as an Active Participant so long as he or she is an Eligible Employee (as defined in Section 2.17(a)).  Any other Employee shall not be eligible to become a Participant in the Plan and any Participant who is not an Active Participant on January 1, 2003 shall not be eligible to become an Active Participant in the Plan.
(b)    If an Active Participant incurs a Severance after January 1, 2003 and is subsequently reemployed, he or she shall not be reinstated as an Active Participant but shall continue to be credited with Vesting Service in accordance with Section 2.46 and shall be entitled to a monthly pension upon completing five (5) Vesting Years or reaching the Special Retirement Eligibility Date and completing one (1) Vesting Year, the amount of which shall be equal to his or her Accrued Benefit determined as of his or her first Severance Date following January 1, 2003, at such times and in such forms as permitted under Article V.
3.2    Participation for the 2002 Plan Year.  For the 2002 Plan Year, each Employee or former Employee who is a Participant in the Plan as of December 31, 2001 shall continue as a Participant and each Participant who is an Active Participant in the Plan as of December 31, 2001 shall continue as an Active Participant so long as he or she is an Eligible Employee (as defined in Section 2.17(b)).  Any other Eligible Employee (as defined in Section 2.17(b)) shall become a Participant in the Plan on the later of: (i) the date the Eligible Employee completes his or her Eligibility Computation Period, or December 31, 2002, if earlier, or (ii) the date the Employee becomes an Eligible Employee, and shall continue as an Active Participant so long as he or she is an Eligible Employee.
3.3    Participation prior to the 2002 Plan Year.  For Plan Years prior to January 1, 2002, each Eligible Employee (as defined in Section 2.17(c)) became a Participant in the Plan on the later of: (i) the date the Employee completed his or her Eligibility Computation Period or (ii) the date the Employee became an Eligible Employee, and continued as an Active Participant so long as he or she was an Eligible Employee.

15

ARTICLE IV
ACCRUAL OF BENEFITS
4.1    Accrued Benefit Formula.  Each Participant shall have an Accrued Benefit equal to one-twelfth (1/12) of the sum of:
(a)    1.23% of his or her Average Earnings not in excess of Covered Compensation multiplied by the number of his or her Benefit Years to a maximum of 35 Benefit Years; plus
(b)    1.73% of his or her Average Earnings in excess of Covered Compensation multiplied by the number of his or her Benefit Years to a maximum of 35 Benefit Years; plus
(c)    .50% of his or her Average Earnings multiplied by the number of his or her Benefit Years in excess of 35 Benefit Years.
For purposes of this Section, “Covered Compensation” is the average (without indexing) of the social security wage bases in effect for each calendar year during the 35-year period ending with the calendar year in which the Participant attains (or will attain) the social security retirement age as defined in Code Section 415(b)(8).  In determining a Participant’s Covered Compensation for a Plan Year, it is assumed that the social security wage base in effect at the beginning of the Plan Year will remain the same for all future calendar years.”
4.2    Minimum Accrued Benefit. Notwithstanding any other provision of the Plan, under no circumstances shall any Participant’s Accrued Benefit under the Plan be less than the amount of his or her accrued benefit under the SKB Plan as of the Spin-Off Date under the terms of the SKB Plan in effect as of that date, including any amendments made to the SKB Plan which are effective on the Spin-Off Date, notwithstanding the fact that they may have been adopted after such date.
4.3    Accrued Benefit for Participants with Earnings in excess of $150,000 prior to January 1, 1994. The Accrued Benefit of a “Section 401(a)(17) Employee” shall be the greater of:
(a)    The Section 401(a)(17) Employee’s Accrued Benefit determined under the benefit formula in effect on or after January 1, 1994 taking into account all Benefit Years of the Section 401(a)(17) Employee; or
(b)    The sum of:
(i)    the Section 401(a)(17) Employee’s Accrued Benefit determined as of December 31, 1993 frozen in accordance with Section 1.401(a)(4)-13 of the Treasury Regulations; and
(ii)    the Section 401(a)(17) Employee’s Accrued Benefit determined under the benefit formula applicable for Plan Years beginning on or after January 1, 

16

1994 taking into account only those Benefit Years of the Section 401(a)(17) Employee credited on or after January 1, 1994; or
(c)    The sum of: 
(i)    the Employee’s Accrued Benefit determined as of December 31, 1988 under the SKB Plan and frozen in accordance with Section 1.401(a)(4)-13 of the Treasury Regulations; and
(ii)    the Section 401(a)(17) Employee’s Accrued Benefit determined under the benefit formula applicable for Plan Years beginning on or after January 1, 1989 taking into account only those Benefit Years of the Section 401(a)(17) Employee credited on or after January 1, 1989 and before January 1, 1994; and
(iii)    the Section 401(a)(17) Employee’s Accrued Benefit determined under the benefit formula applicable for Plan Years beginning on or after January 1, 1994 taking into account only those Benefit Years of the Section 401(a)(17) Employee credited on or after January 1, 1994.
For purposes of this Section, a “Section 401(a)(17) Employee” means a Participant whose current Accrued Benefit as of January 1, 1994 is based on Earnings in excess of $150,000.
4.4    Accrued Benefit for Participants participating in the Voluntary Early Retirement Incentive Program (“VERI”). The Accrued Benefit of a “VERI Employee” shall be determined as follows:
(a)    For the purpose of calculating the Accrued Benefit of a VERI Employee under Section 4.1, a VERI Employee shall be credited with five (5) Benefit Years in addition to the number of Benefit Years credited under Section 2.9.
(b)    The early retirement reduction factors of Sections 5.3(a) and 5.3(b) shall not apply to reduce the monthly pension derived from the Accrued Benefit of a VERI Employee.
For purposes of this Section 4.4 and Section 4.5 below, a “VERI Employee” means a Participant who has elected by August 31, 1998 (or such later date as approved by the Sponsor but in no event later than September 30, 1998) to participate in the Voluntary Early Retirement Incentive program offered by the Sponsor.
4.5    Temporary Supplemental Monthly Benefit for Participants participating in the Voluntary Early Retirement Incentive Program. In addition to his or her Accrued Benefit, a VERI Employee shall receive a temporary supplemental monthly pension determined as follows:
(a)    A VERI Employee who is unmarried when his or her monthly pension payments begin shall receive a temporary supplemental monthly pension following the month in which his or her retirement occurs and continuing until the earlier of (i) the  month in which the VERI Employee attains age 62 or (ii) the month in which the VERI Employee 

17

dies. The amount of the temporary supplemental monthly pension shall be determined in accordance with the following Table:
	
		
	Age at
	Amount of

	December 31, 1998
	Supplemental Monthly Pension

	60-61
	$500.00

	55-59
	$400.00

	50-54
	$300.00

(b)    A VERI Employee who is married when his or her monthly pension payments begin shall receive a temporary supplemental monthly pension following the month in which his or her retirement occurs and continuing until the earlier of (i) the month in which the VERI Employee attain age 62 or (ii) the month in which the VERI Employee dies unless the VERI Employee elects to receive his or her monthly pension in the form of (i) a contingent beneficiary option, (ii) a guaranteed payment option, or (iii) a level income option as described in Section 6.4. In such case, if the married VERI Employee dies before reaching age 62, his or her temporary supplemental monthly pension shall be paid to his or her spouse, if living, and shall continue until the month in which the VERI Employee would have attained age 62. The amount of the temporary supplemental monthly pension shall be determined in accordance with the Table set forth in subsection (a) above.

18

ARTICLE V
BENEFITS
5.1    Normal Retirement. If a Participant incurs a Severance on account of retirement on or between the Special Retirement Eligibility Date and the Normal Retirement Date, he or she shall be entitled to a monthly pension that begins as of the first day of the month coincident with or next following his or her Severance Date which is equal to his or her Accrued Benefit.
5.2    Postponed Retirement. If a Participant incurs a Severance on account of retirement after attaining the Normal Retirement Date, he or she shall be entitled to a monthly pension that begins as of the first day of the month coincident with or next following his or her Severance Date which is equal to his or her Accrued Benefit determined as of the Normal Retirement Date increased by the greater of (i) any additional benefit accruals provided under Article IV after the Normal Retirement Date, or (ii) an actuarial adjustment to take into account a delay in the payment of the Participant’s Accrued Benefit using the actuarial assumptions set forth in Appendix A for determining actuarial equivalence. The foregoing provisions of this Section 5.2 shall be interpreted and applied in accordance with the provisions of Proposed Treasury Regulation Section 1.411(b)-2(b)(4)(iii) or the corresponding provision of any subsequently adopted final regulations.
5.3    Early Retirement. A Participant shall be eligible for Early Retirement as set forth below:
(a)    If a Participant who has at least five (5) Vesting Years and whose age is at least 55 incurs a Severance on account of retirement, he or she shall be eligible for Early Retirement as set forth in this paragraph (a):
(i)    Such Participant shall be entitled to a monthly pension that begins as of the first day of the month coincident with or next following his or her Severance Date or, at his or her election, a monthly pension that begins as of the first day of any subsequent month not later than the Normal Retirement Date.
(ii)    Such Participant’s monthly pension shall be equal to his or her Accrued Benefit but reduced in accordance with the following Table, with the percentage for a fractional part of a year of age being prorated on the basis of a number of full months.

19

	
				
	Age When
	% of Normal Pension
	Age When
	% of Normal Pension

	Payments
	Computed Under
	Payments
	Computed Under

	Begin
	Article IV
	Begin
	Article IV

	61
	94
	57
	70

	60
	88
	56
	64

	59
	82
	55
	58

	58
	76
	 
	 

(iii)    A Participant who is an AMO Employee (as defined in Section 2.20) shall be treated as having not less than five (5) Vesting Years as of the day following his or her transfer to Advanced Medical Optics, Inc. for purposes of this paragraph (a).
(b)    If a Participant who was a Participant on June 26, 1990, and who has at least five (5) Vesting Years, and whose age plus Benefit Years sum to at least 55 incurs a Severance on account of retirement, he or she shall be eligible for Early Retirement as set forth in this paragraph (b):
(i)    Such Participant shall be entitled to a monthly pension that begins as of the first day of the month coincident with or next following his or her Severance Date or, at his or her election, a monthly pension that begins as of the first day of any subsequent month not later than the Normal Retirement Date.
(ii)    Such Participant’s monthly pension shall be equal to his or her Accrued Benefit determined as of June 26, 1990, as set forth under the formula contained in Appendix B, but reduced in accordance with the following Table, with the percentage for a fractional part of a year of age being prorated on the basis of a number of full months.

20

	
				
	Age When
Payments
Begin
	% of Normal Pension
Computed Under
Article IV
	Age When
Payments
Begin
	% of Normal Pension
Computed Under
Article IV

	61
	94
	48
	36

	60
	88
	47
	34

	59
	82
	46
	32

	58
	76
	45
	30

	57
	70
	44
	28

	56
	64
	43
	27

	55
	58
	42
	26

	54
	52
	41
	25

	53
	46
	40
	24

	52
	44
	39
	23

	51
	42
	38
	22

	50
	40
	37
	21

	49
	38
	 
	 

Provided, that the above percentages shall be increased by 1% to a maximum of 10% for each of the Participant’s Benefit Years in excess of 20, with the percentage for a fractional part of a Benefit Year being prorated on the basis of the number of full months. In no event, however, shall a percentage be increased above 100%.
(iii)    Notwithstanding subparagraph (ii) above, (1) if the Participant is age 55 or older when payments begin, the Participant shall receive a total monthly pension which is the greater of the amount determined under paragraph (a)(ii) or paragraph (b)(ii) above, and (2) if the Participant is less than age 55 when benefit payments begin, the Participant shall receive a monthly pension which is determined under paragraph (b)(ii) plus an additional monthly pension commencing at age 55 which is actuarially equivalent to the excess, if any, of the actuarial equivalent value of the monthly pension under paragraph (a)(ii) determined at age 55 over the actuarial equivalent value of the monthly pension under paragraph (b)(ii) determined at age 55.
(c)    A Participant who has elected by August 31, 1998 (or such later date as approved by the Sponsor but in no event later than September 30, 1998) to participate in the Voluntary Early Retirement Incentive program offered by the Sponsor shall be entitled to a monthly pension that begins as of the first day of the month coincident with or next following his or her Severance Date or, at his or her election, a monthly pension that begins as of the first day of any subsequent month not later than the Normal Retirement Date.
(d)    If a Participant incurs a Severance and retires under this Section, and his or her monthly pension begins after the first day of the month coincident with or next following the Special Retirement Eligibility Date, such Participant shall be entitled to the monthly pension payments he or she would have received had his or her pension began as of the first day of the month following the Special Retirement Eligibility Date.

21

5.4    Termination of Employment.
(a)    If a Participant who has at least five (5) Vesting Years incurs a Severance for any reason other than death and is not eligible to retire under Section 5.3, he or she shall be entitled to a monthly pension that begins on the first day of the month coincident with or next following the date he or she attains age 55, or at his or her election, a monthly pension that begins as of the first day of any subsequent month not later than the Normal Retirement Date. In the event a Participant elects that his or her monthly pension begin prior to the Special Retirement Eligibility Date, the amount of his or her monthly pension shall be determined as provided in Section 5.3(a).
(b)    If a Participant who has at least five (5) Vesting Years incurs a Severance for any reason other than death and is not eligible to retire under Section 5.3 but was a Participant on June 26, 1990, he or she shall be entitled to a monthly pension that begins on the first day of the month coincident with or next following the date his or her Age and Benefit Years total 55 years, or at his or her election, a monthly pension that begins as of the first day of any subsequent month not later than the Normal Retirement Date. In the event a Participant elects that his or her monthly pension begin prior to the Special Retirement Eligibility Date, the amount of his or her monthly pension shall be determined as provided in Section 5.3(b).
(c)    If a Participant incurs a Severance and is entitled to a monthly pension under this Section, and his or her monthly pension begins after the first day of the month coincident with or next following the Special Retirement Eligibility Date, such Participant shall be entitled to the monthly pension payments he or she would have received had his or her pension began as of the first day of the month following the Special Retirement Eligibility Date. If a Participant incurs a Severance and is entitled to a monthly pension under this Section, and his or her monthly pension begins after the first day of the month coincident with or next following the Normal Retirement Date, such Participant shall be entitled to the monthly pension payments he or she would have received had his or her pension began as of the first day of the month following the Special Retirement Eligibility Date (or, if later, his or Severance Date) or, in lieu thereof, a monthly pension which is equal to his or her Accrued Benefit determined as of the Special Retirement Eligibility increased by an actuarial adjustment to take into account a delay in the payment of the Participant’s Accrued Benefit using the actuarial assumptions set forth in Appendix A for determining actuarial equivalence.
5.5    Consent to Pension Payments. The Participant and, if applicable, the Participant’s spouse must consent to the payment or commencement of the Participant’s pension prior to the Normal Retirement Date in accordance with the following rules:
(a)    The consent of the Participant shall be obtained in writing within the election period established by the Committee which shall commence no more than 180 days prior to the Participant’s Annuity Starting Date. No such consent shall be effective with respect to a married Participant unless the Participant’s spouse consents thereto in writing. Spousal consent shall not be required if a married Participant elects a joint and survivor option providing for payment of at least 50% of his or her annuity to his or her surviving spouse 

22

or the Sponsor determines there is no spouse or the spouse cannot be located. Neither the consent of the Participant nor the Participant’s spouse shall be required to the extent the payment or commencement of the Participant’s pension is required to begin under Section 5.8.
(b)    Each Participant shall receive in written nontechnical language, a notice which shall include a general description of the material features, and an explanation of the relative values of, the available optional forms of benefit. Such notice shall be furnished to the Participant no less than 30 days and no more than 180 days prior to the Participant’s Annuity Starting Date; provided, however, the Participant’s pension may be paid or commence less than 30 days after such notice is furnished if the notice clearly informs the Participant that he or she has at least 30 days after receiving the notice to consider the decision of whether or not to elect the commencement of his or her pension (and, if applicable, an optional form of benefit), and the Participant, after receiving the notice, affirmatively elects to commence his or her pension.
5.6    Maximum Pension. The largest aggregate annual pension that may be paid to any Participant in any Plan Year under the Plan shall be determined as follows:
(a)    Subject to paragraphs (b) through (d), the largest aggregate annual pension that may be paid to any Participant in any Plan Year, when added to the pension under any other qualified defined benefit plan maintained by the Sponsor or any Affiliated Company, shall not exceed the lesser of:
(i)    The Defined Benefit Dollar Limitation of $160,000 ($90,000 for Plan Years prior to the 2002 Limitation Year), multiplied by a fraction the numerator of which is the number of the Participant’s years of participation (or a part thereof) in the Plan or, up to the Spin-Off Date in the SKB Plan or in the Beckman Instruments, Inc. Pension Plan, not in excess of ten, and the denominator of which is ten; or
(ii)    The Defined Benefit Compensation Limitation of 100% of the Participant’s average annual total cash remuneration from the Company in the thirty-six consecutive months which yield the highest average, multiplied by a fraction the numerator of which is the number of the Participant’s Vesting Years (or a part thereof) not in excess of ten and the denominator of which is ten.
Benefit increases resulting from the increase in the Defined Benefit Dollar Limitation and the Defined Benefit Compensation Limitation under the Economic Growth and Tax Relief Reconciliation Act of 2001 shall apply to all Employees participating in the Plan who have one (1) Hour of Service on or after January 1, 2002. Notwithstanding anything in this Section to the contrary, in accordance with Code Section 415(b)(4) and the Treasury Regulations thereunder, the provisions of which are incorporated by reference, the annual pension paid to any Participant shall be deemed not to exceed limitations of this paragraph if the benefit payable for a Limitation Year under any form of benefit with respect to such Participant under this Plan and any other qualified defined benefit plan (without regard to whether a plan has been terminated) ever maintained by the Sponsor or any Affiliated 

23

Company does not exceed $10,000 multiplied by a fraction the numerator of which is the number of the Participant’s Vesting Years (or a part thereof) not in excess of ten and the denominator of which is ten; provided, that the Sponsor or any Affiliated Company (or a predecessor) has not at any time maintained a defined contribution plan in which the Participant participated.
(b)    The limitations set forth in this Section 5.6 shall be determined as provided below:
(i)    The Defined Benefit Dollar Limitation shall automatically be adjusted annually for increases in the cost of living as provided in Code Section 415(d). The adjusted limitation shall be effective as of January 1st of each calendar year and shall be applicable to Limitation Years ending with or within that calendar year. Such new limitation is incorporated herein by this reference and shall be substituted for the Defined Benefit Dollar Limitation set forth in paragraph (a) above.
(ii)    “Cash remuneration” shall mean “compensation” as defined in Section 5.12.
(iii)    For purposes of this Section, a Participant’s pension shall be measured as a Single Life Annuity or Qualified Joint and Survivor Annuity. A pension benefit shall be treated as a Qualified Joint and Survivor Annuity if it meets all of the requirements as defined in Section 2.35 except that the periodic payments to the spouse may be equal to or greater than 50%, but not more than 100%, of those to the Participant.
(iv)    A benefit payable in a form other than a Single Life Annuity or Qualified Joint and Survivor Annuity described in subparagraph (iii) above shall be adjusted to the Actuarial Equivalent of a Straight Life Annuity before applying the limitations of this Section.  Effective for Limitation Years commencing on or after January 1, 1995, Actuarial Equivalent for the form of benefit shall be determined using (1) the interest rate and mortality table specified in Appendix A or (2) 5% interest rate (or for lump sums or other benefits subject to Code Section 417(e)(3), the applicable interest rate under Code Section 415(b)(2)(E)(ii) as determined as provided in Appendix A) and the applicable mortality table under Code Section 415(b)(2)(E)(v), whichever produces the greater Actuarial Equivalent value.  Notwithstanding the foregoing sentence, if a benefit is payable in a form other than a Single Life Annuity and the benefit is subject to Code Section 417(e)(3), the benefit shall be adjusted to the Actuarial Equivalent of a Straight Life Annuity as follows:
(A)    If the Annuity Starting Date is in a Limitation Year beginning after 2005, the benefit shall be adjusted to the annual amount of the Single Life Annuity commencing at the same Annuity Starting Date that has the same actuarial present value as the Participant’s form of benefit using whichever of the following produces the greatest annual amount: (1) the interest rate and mortality table or other tabular factor specified in the Plan 

24

for adjusting benefits in the same form, (2) A 5.5% interest and the applicable mortality table specified in Appendix A, and (3) the applicable interest rate under Code Section 417(e)(3) and the applicable mortality table specified in Appendix A divided by 1.05.
(B)    If the Annuity Starting Date is in the 2004 and 2005 Limitation Year, the benefit shall be adjusted to the annual amount of the Single Life Annuity commencing at the same Annuity Starting Date that has the same actuarial present value as the Participant’s form of benefit using whichever of the following produces the greatest annual amount: (1) the interest rate and mortality table or other tabular factor specified in the Plan for adjusting benefits in the same form and (2) a 5.5% interest and the applicable mortality table specified in Appendix A.
Effective for Limitation Years commencing on or after January 1, 2006, the Actuarial Equivalent for any form of benefit not subject to Code Section 417(e)(3) shall be equal to the greater of (1) the annual amount of the Straight Life Annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the Participant, computed using a 5% interest rate and the mortality table specified in Appendix A.2(a)(i) or (2) the annual amount of the Straight Life Annuity payable under the Plan commencing at the same annuity starting date as the form of benefit payable to the Participant.
(v)    In addition to other limitations set forth in the Plan and notwithstanding any other provisions of the Plan, the accrued benefit, including the right to any optional benefits provided in the Plan (and all other defined benefit plans required to be aggregated with this Plan under the provisions of Code Section 415) shall not increase to an amount in excess of the amount permitted under Code Section 415 at any time.
(c)    For limitation years beginning on or after January 1, 2002 and before January 1, 2008, the Defined Benefit Dollar Limitation for any Participant shall be adjusted as follows:
(i)    If a Participant’s pension begins prior to age 62, the Defined Benefit Dollar Limitation applicable to the Participant at such earlier age is an annual benefit payable in the form of a straight life annuity beginning at the earlier age that is the actuarial equivalent of the Defined Benefit Dollar Limitation applicable to the Participant at age 62 (as adjusted under paragraph (a) above, if required). The Defined Benefit Dollar Limitation applicable at an age prior to age 62 is determined as the lesser of (1) the Actuarial Equivalent (at such age) of the Defined Benefit Dollar Limitation computed using the factors specified in Section 5.3 or (2) the actuarial equivalent (at such age) of the Defined Benefit Dollar Limitation computed using a 5 percent interest rate and the applicable mortality table specified in Appendix A to the Plan. Any decrease in the Defined Benefit Dollar Limitation determined in accordance with this paragraph (c) shall not reflect a mortality decrement if benefits 

25

are not forfeited upon the death of the Participant. If any benefits are forfeited upon death, the full mortality decrement is taken into account.
(ii)    If a Participant’s pension begins after age 65, the Defined Benefit Dollar Limitation applicable to the Participant at such later age is the annual benefit payable in the form of a straight life annuity beginning at the later age that is actuarially equivalent to the defined benefit dollar limitation applicable to the Participant at age 65 (as adjusted under paragraph (a) above, if required). The Defined Benefit Dollar Limitation applicable at an age after age 65 is determined as the lesser of (1) the Actuarial Equivalent (at such age) of the Defined Benefit Dollar Limitation computed using the interest rate and mortality table specified in Appendix A to the Plan or (2) the actuarial equivalent (at such age) of the Defined Benefit Dollar Limitation computed using a 5 percent interest rate assumption and the applicable mortality table specified in Appendix A to the Plan. For these purposes, mortality between age 65 and the age at which benefits commence shall be ignored.
(d)    For Limitation Years beginning prior to January 1, 2002, the Defined Benefit Dollar Limitation for any Participant shall be adjusted if a Participant’s pension begins before or after he or she attains his or her Social Security Retirement Age. In such case, the Defined Benefit Dollar Limitation shall be adjusted to its Actuarial Equivalent beginning at the Participant’s Social Security Retirement Age; except that if his or her pension begins before he or she attains his or her Social Security Retirement Age, but after he or she attains age 62, the Defined Benefit Dollar Limitation shall be reduced by 5/9 of 1% for each of the first 36 months and 5/12 of 1% for each additional month by which the Participant’s benefit commencement date precedes his or her Social Security Retirement Age. The Defined Benefit Dollar Limitation applicable at an age prior to age 62 is determined as the lesser of (1) the Actuarial Equivalent (at such age) of the Defined Benefit Dollar Limitation computed using the factors specified in Section 5.3 or (2) the actuarial equivalent (at such age) of the Defined Benefit Dollar Limitation computed using a 5 percent interest rate and the applicable mortality table specified in Appendix A to the Plan. The interest rate used to determine the Actuarial Equivalent shall be the rate stated in the Plan, but shall be 5% if the pension begins after the Social Security Retirement Age. For purposes of this Section and Section 5.7, “Social Security Retirement Age” means (i) for any Participant born before January 1, 1938, Age 65, (ii) for any Participant born after December 31, 1937 but before January 1, 1955, Age 66, or (iii) for any other Participant, Age 67. A Participant’s pension shall be measured as a Single Life Annuity beginning at his or her Social Security Retirement Age.
(e)    For Limitation Years beginning on or after January 1, 2008, 
(i)    if a Participant’s pension begins prior to age 62, the determination of whether the limitation set forth in Subsection (a) of this Section 5.6 (the “Dollar Limit”) has been satisfied shall be made, in accordance with regulations prescribed by the Secretary of the Treasury, by reducing the Dollar Limit so that the Dollar Limit (as so reduced) is equal to an annual benefit payable in the form of a Straight Life Annuity, commencing when such benefit under the Plan commences, which is 

26

actuarially equivalent to a benefit in the amount of the Dollar Limit commencing at age 62; provided, however, if the Plan has an immediately commencing Straight Life Annuity commencing both at age 62 and the age of benefit commencement, then the Dollar Limit (as so reduced) shall equal the lesser of (1) the amount determined under Subsection (e)(i) without regard to this proviso or (2) the Dollar Limit multiplied by a fraction the numerator of which is the annual amount of the immediately commencing Straight Life Annuity under the Plan and the denominator of which is the annual amount of the Straight Life Annuity under the Plan, commencing at age 62, with both numerator and denominator determined in accordance with regulations prescribed by the Secretary of the Treasury; and
(ii)    if a Participant’s pension begins after age 65, the determination of whether the Dollar Limit has been satisfied shall be made, in accordance with regulations prescribed by the Secretary of the Treasury, by increasing the Dollar Limit so that the Dollar Limit (as so increased) is equal to an annual benefit payable in the form of a Straight Life Annuity, commencing when the benefit under the Plan commences, which is actuarially equivalent to a benefit in the amount of the Dollar Limit commencing at age 65; provided, however, if the Plan has an immediately commencing Straight Life Annuity commencing both at age 65 and the age of benefit commencement, the Dollar Limit (as so increased) shall equal the lesser of (i) the amount determined under this Subsection (e)(ii) without regard to this proviso or (ii) the Dollar Limit multiplied by a fraction the numerator of which is the annual amount of the immediately commencing Straight Life Annuity under the Plan and the denominator of which is the annual amount of the immediately commencing Straight Life Annuity under the Plan, commencing at age 65, with both numerator and denominator determined in accordance with regulations prescribed by the Secretary of the Treasury.
5.7    Defined Benefit Fraction and Defined Contribution Fraction. For Plan Years beginning prior to the 2000 Plan Year, the largest aggregate annual pension that may be paid to any Participant in any Plan Year under the Plan shall not, when added to the pension under any other qualified defined benefit plan maintained by the Sponsor or any Affiliated Company, exceed the lesser of the dollar limitation described in Section 5.6 or the amount that would cause the sum of a Participant’s Defined Benefit Fraction and Defined Contribution Fraction for the Plan Year in which the Participant’s Severance occurs to equal 1.0.  To the extent the sum of a Participant’s Defined Benefit Fraction and Defined Contribution Fraction exceeds 1.0, adjustments shall be made first by reducing the Participant’s benefit under any defined benefit plan maintained by the Sponsor or an Affiliated Company.
(a)    A Participant’s Defined Benefit Fraction for a given Plan Year is a fraction, the numerator of which is his or her projected annual benefit for the Plan Year and the denominator of which is the lesser of (i) 1.25 multiplied by $90,000, adjusted to reflect commencement before or after Social Security Retirement Age, or (ii) 1.4 multiplied by 100% of his or her average annual total cash remuneration from the Sponsor or any Affiliated Company in the thirty-six consecutive months which yield the highest average. 

27

(b)    A Participant’s Defined Contribution Fraction for a given Plan Year is a fraction, the numerator of which is the sum of his or her annual additions for all calendar years and the denominator of which is the sum of his or her maximum aggregate amounts for all calendar years in which he or she is an Employee.  A Participant’s maximum aggregate amounts for any Plan Year shall equal the lesser of 1.25 multiplied by the dollar limitation for such Plan Year or 1.4 multiplied by the percentage limitation for such Plan Year.
(c)    The annual addition to a Participant’s account for any year is the sum, determined with respect to all defined contribution plans maintained by the Sponsor or an Affiliated Company (including any voluntary contributions feature of any defined benefit plan thereof), of:
(i)    Company contributions and forfeitures allocated to the Participant’s account;
(ii)    For Plan Years beginning after December 31, 1986, the amount of the Participant’s contributions; for Plan Years beginning before January 1, 1987, the lesser of:
(A)    50% of his or her contributions; or
(B)    For each calendar year after 1975 the amount by which the Participant’s contributions exceed 6% of his or her cash remuneration; for each calendar year before 1976 during which he or she was a Participant, the excess of the aggregate amount of his or her contributions for all such years over 10% of his or her aggregate cash remuneration from the Sponsor or an Affiliated Company for all such years, multiplied by a fraction the numerator of which is one and the denominator of which is the number of such years.
(iii)    Amounts allocated after March 31, 1984 to an individual medical account (as defined in Code Section 415(l)(2)) that is part of a pension or annuity plan maintained by the Sponsor or an Affiliated Company;
(iv)    Amounts derived from contributions paid or accrued after December 31, 1985, in taxable years ending after such date, that are attributable to post-retirement medical benefits allocated to the separate account of a key employee (as defined in Code Section 419A(d)(3)) under a welfare benefit fund (as defined in Code Section 419(e)) maintained by the Sponsor or an Affiliated Company; and
(v)    allocations under a simplified employee pension. 
5.8    Mandatory Commencement of Benefits.
(a)    A Participant’s pension shall begin no later than sixty days after the close of the Plan Year in which falls the later of his or her attainment of the Normal Retirement Date or the date he or she incurs a Severance.

28

(b)    In the case of a Participant, payment shall begin no later than a Participant’s required beginning date determined under the rules of subparagraphs (i) or (ii) below:
(i)    Active Participants attaining age 70-1/2 prior to 1999: The required beginning date of an Active Participant who attains age 70-1/2 prior to 1999 shall be April 1 of the calendar year immediately following the year in which the Active Participant attains age 70-1/2; provided, however, that an Active Participant, other than an Active Participant who is a Five Percent Owner (as defined in Section 12.2), who attains age 70-1/2 in 1996, 1997, or 1998 may elect to defer the required beginning date until the first day of the month coincident with or next following his or her Severance Date.
(ii)    Participants attaining age 70-1/2 after 1998:  The required beginning date of a Participant who attains age 70-1/2 after 1998 shall be the first day of the month coincident with or next following his or her Severance Date; provided, however, if such Participant is a Five Percent Owner (as defined in Section 12.2) with respect to the Plan Year ending in the calendar year in which such Participant attains age 70-1/2, the required beginning date shall be April 1 of the calendar year immediately following the year in which such Participant attains age 70-1/2.
(c)    Notwithstanding anything in the Plan to the contrary, the distribution of a Participant’s pension including amounts paid in the form of a pre-retirement death benefit shall be made in accordance with Code Section 401(a)(9), including the incidental death benefit requirement of Code Section 401(a)(9)(G), and Treasury Regulations Sections 1.401(a)(9)-0 through 1.401(a)(9)-9, the provisions of which are hereby incorporated by reference and shall override any distribution option in the Plan inconsistent with Code Section 401(a)(9).
5.9    Reemployment. If a Participant who is receiving benefits again becomes an Employee, his or her pension shall be subject to the following rules:
(a)    A Participant’s pension shall not be suspended if he or she is subsequently reemployed on or after October 1, 2002.
(b)    A Participant’s pension shall be suspended if he or she was subsequently reemployed as an Eligible Employee prior to October 1, 2002 as follows:
(i)    The Participant’s pension shall be suspended and recomputed upon his or her Severance Date if he or she has not reached the Normal Retirement Date.
(ii)    The Participant’s pension shall be suspended for each calendar month or for each four or five week payroll period ending in a calendar month during which the Participant either completes 40 or more Hours of Service (counting each day of employment in a position designated by the Company as full time as five (5) Hours of Service), or receives payment for any such Hours of Service performed on each of eight or more days or separate work shifts in such month or payroll period if the 

29

Participant has reached the Normal Retirement Date.  No adjustment to the Participant’s pension shall be made on account of such non-payment.  No payment shall be withheld pursuant to this subparagraph (ii) until the Participant is notified by personal delivery or first class mail during the first calendar month or payroll period in which payments are suspended that his benefits are suspended. Such notification shall contain a description of the specific reasons why benefit payments are being suspended, a general description of the Plan provisions relating to the suspension of payments, a copy of such provisions, and a statement to the effect that applicable Department of Labor regulations may be found in § 2530.203-3 of the Code of Federal Regulations.  In addition, the suspension notification shall inform the Participant of the Plan’s procedures for affording a review of the suspension of benefits.
(iii)    A Participant described in subparagraphs (i) or (ii) above, shall be eligible to receive credit for additional Benefit Years for any period of reemployment (as an Eligible Employee).  The pension of such Participant shall be reduced by the Actuarial Equivalent of any payment received by the Participant under the Plan prior to his or her attainment of the Special Retirement Eligibility Date, or, if earlier, the first day on which he or she would have been entitled to 100% of his or her Accrued Benefit under Section 5.3(b) (if on his or her prior Severance Date he or she had deferred his or her benefit until that date).
5.10    Other Disabled Participants. A former Active Participant who is covered under a long term disability plan maintained by the Company, who has at least five (5) Vesting Years, and who becomes eligible for benefits under such plan, shall be eligible to accrue Benefit Years pursuant to this Section for the duration of his or her disability until the earlier of (i) the later of his or her Normal Retirement Date or Severance Date or (ii) the date he or she commences to receive a pension under the Plan. The following rules shall apply to benefit accruals under this Section:
(a)    The Employee’s Average Earnings during his or her disability shall be deemed to be his or her Average Earnings calculated at the time his or her disability commenced.
(b)    The Employee’s Primary Social Security Benefit shall be as defined in and the Employee’s Covered Compensation as defined in Section 4.1 shall be determined as of the year for which he or she is credited with his or her final Benefit Year.
(c)    In addition, a former Active Participant described in this Section shall be treated as an Employee for purposes of the survivor income benefits described in Section 7.1 while he or she is eligible to accrue Benefit Years pursuant to this Section.
5.11    Nonforfeitable Interest. Notwithstanding any other provision in the Plan to the contrary, a Participant shall have a nonforfeitable interest in his or her Accrued Benefit upon reaching the Normal Retirement Date, or if earlier, upon being credited with five (5) or more Vesting Years. In addition, a Participant shall have a nonforfeitable interest in his or her Accrued Benefit upon 

30

reaching the Special Retirement Eligibility Date or if later, upon being credited with one (1) Vesting Year.
5.12    Compensation for Maximum Pension. For purposes of Sections 5.6 and 5.7, Compensation shall mean an Employee’s earned income, wages, salaries, fees for professional services, and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with the Company maintaining the Plan and shall be determined in accordance with Treasury Regulation Section 1.415(c)-2, the provisions of which are incorporated herein by reference unless otherwise set forth below:
(a)    Compensation shall include to the extent that the amounts are includible in gross income (including, but not limited to, commissions paid salespeople, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements or other expense allowances under a nonaccountable plan as described in Treasury Regulation Section 1.62-2(c)).
(b)    Compensation shall include (i) any elective deferral as defined in Code Section 402(g)(3) or Puerto Rico Code Section 1081.01(d), any amount which is contributed or deferred by the Company at the election of the Employee that is excludable from an Employee’s gross income under Code Sections 125 or 457, (ii) for Plan Years beginning on or after January 1, 1998, any elective amount that is excludable from an Employee’s gross income under Code Section 132(f)(4), (iii) for Plan Years beginning on or after January 1, 2008, amounts paid after an Employee’s Severance Date, provided that such amounts (1) represent payment for regular compensation for services during the Employee’s regular working hours, or compensation for services outside the employee’s regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments and would have been paid to the Employee prior to his or her Severance Date if the Employee had continued in employment with the Company and (2) are paid by the later of 2 1⁄2 months after the Employee’s Severance Date or the end of the Plan Year that includes the Employee’s Severance Date, and (iv) effective January 1, 2009, differential wage payments within the meaning of Code Section 414(u)(12)(D).
(c)    Compensation shall not include those items listed in Treasury Regulation Section 1.415(c)-2(c), the provisions of which are incorporated under this paragraph (c) by this reference.
(d)    Notwithstanding anything in the Plan to the contrary, Compensation shall be determined in accordance with Code Section 415(c)(3) as in effect for Plan Years beginning prior to January 1, 1998 where required by applicable law.
(e)    Notwithstanding the definition of Compensation contained in subsections (a), (b), (c) and (d), for the purposes of this Article V and Section 2.24, for Plan Years and Limitation Years (as applicable) beginning on and after January 1, 2000, Compensation shall mean wages within the meaning of Code Section 3401(a) and all other payments of compensation to an Employee by the Employer (in the course of the Employer’s trade or business) for which the Employer is required to furnish the Employee a written statement 

31

under Code Sections 6041(d), 6051(a)(3), and 6052.  Compensation must be determined without regard to any rules under Code Section 3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Code Section 3401(a)(2)).  Compensation paid or made available during each such Plan Year and Limitation Year also shall include any elective deferral (as defined in Code Section 402(g)(3) or Puerto Rico Code Section 1081.01(d) or its predecessor Section 1165(e) of the Puerto Rico Internal Revenue Code of 1994), and any amount which is contributed or deferred by the Employer at the election of the Employee and which is not includible in the gross income of the Employee by reason of Code Sections 125 or 457.  For Plan Years and Limitation Years (as applicable) beginning on and after January 1, 2001, Compensation as defined in this paragraph also shall include any elective amounts that are not includible in the gross income of the Employee by reason of Code Section 132(f)(4).
(f)    Notwithstanding any provision of the Plan to the contrary, effective January 1, 2012, for purposes of the application of Sections 5.6 and 5.7 to a Participant who is a resident of Puerto Rico and to whom the Puerto Rico Code is applicable, Compensation considered under such Sections may not exceed the limit under Code Section 401(a)(17), as adjusted from time to time.  Provided, that the application of this limitation shall not operate to reduce any benefit accrual as of December 31, 2011.
ARTICLE VI
FORM OF PENSIONS
6.1    Unmarried Participants. The pension of a Participant who is unmarried when payments begin shall be paid as a Single Life Annuity unless he or she elects an optional form of benefit under Section 6.3 or receives a lump sum distribution under Section 6.5.
6.2    Married Participants. The pension of a Participant who is married when payments begin shall be paid as a Qualified Joint and Survivor Annuity, unless he or she elects an optional form of benefit under Section 6.3 or receives a lump sum distribution under Section 6.5.
6.3    Election of Optional Form of Benefit. A Participant may waive the Single Life Annuity or, in the case of a married Participant, the Qualified Joint and Survivor Annuity and elect any optional form of benefit described in Section 6.4 in accordance with the following rules:
(a)    The election shall be made in writing in a manner prescribed by the Committee on a form that clearly states that the Participant is electing to receive his or her pension other than as a Single Life Annuity or, in the case of a married Participant, his or her pension other than as a Qualified Joint and Survivor Annuity.  No such election shall be effective with respect to a married Participant unless: (i) the Participant’s spouse consents in writing to the election; (ii) such election designates the form of benefit and a specific beneficiary; (iii) the consent acknowledges the effect of the election; and (iv) the consent is witnessed by a notary public or by a Plan representative.  Notwithstanding the foregoing, an election without spousal consent shall be effective if a married Participant elects a joint 

32

and survivor option providing for payment of at least 50% of his or her annuity to his or her surviving spouse, the Sponsor determines there is no spouse, or the spouse cannot be located.
(b)    The election may be made or revoked at any time during an election period established by the Committee.  Such election period shall begin when the information described in paragraph (d) is furnished to the Participant and, subject to paragraphs (c) through (e), shall end, with no opportunity for a further election, on the Participant’s Annuity Starting Date.  For purposes of Article VII (pertaining to pre-retirement death benefits), if an optional form of benefit is elected in accordance with this Section 6.3 within the 90 day period ending on the Participant’s date of death, the Participant’s pension shall be deemed to have commenced even if the Participant dies prior to the Annuity Starting Date.
(c)    Subject to paragraphs (d) and (e), in the case of a Participant who retires after attaining age 55, the election period described in paragraph (b) shall end on the date of the Participant’s Severance, or on such later date as the Committee shall fix, but an election made during the election period may be revoked at any time before the later of the end of the election period or the Participant’s Annuity Starting Date.
(d)    Each Participant shall receive a written explanation of a Single Life Annuity or, in the case of a married Participant, a Qualified Joint and Survivor Annuity which shall include: (i) the terms and conditions of such annuity form of benefit; (ii) the Participant’s right to make and the effect of waiving such annuity form of benefit; (iii) the rights of a spouse; (iv) the right to make, and the effect of, a revocation of a previous election to waive such annuity form of benefit; (v) the relative values of the optional forms of benefit available under the Plan; and (vi) on or after December 31, 2006 and if applicable, the Participant’s right to defer and the effect of deferring the payment of his or her benefit.  Such explanation shall be furnished to the Participant no less than 30 days and no more than 180 days prior to the Participant’s Annuity Starting Date except as provided in paragraph (e).
(e)    The written explanation described in paragraph (d) may be furnished to the Participant less than 30 days prior to the Participant’s Annuity Starting Date; provided, that, the written explanation: (i) clearly indicates that the Participant has at least 30 days to consider whether to waive the Single Life Annuity or, in the case of a married Participant, the Qualified Joint and Survivor Annuity and to elect with spousal consent, if applicable, an optional form of benefit; (ii) the Participant is permitted to revoke any affirmative distribution election at least until the Annuity Starting Date or, if later, at any time prior to the expiration of the 7-day period that begins the day after the written explanation is provided to the Participant; and (iii) the Annuity Starting Date is a date after the date that the written explanation was provided to the Participant. Notwithstanding the foregoing, the Annuity Starting Date may be a date prior to the date the written explanation is provided to the Participant; provided, that, the Participant’s pension is not paid or does not commence until at least 30 days after such written explanation is furnished, subject to the waiver of the 30-day period as provided in the foregoing sentence.
6.4    Optional Forms of Benefit. Subject to the provisions of Sections 6.3 and 6.5, a Participant may elect to receive the Actuarial Equivalent of his or her pension in another form. The 

33

specific options shall be (i) a Single Life Annuity which pays a monthly benefit for the Participant’s lifetime; (ii) a contingent beneficiary option which pays a reduced monthly benefit for the Participant’s lifetime, then continues 100%, 75%, 66-2/3%, or 50% of the reduced monthly benefit for the lifetime of one designated beneficiary; (iii) a guaranteed payment option which pays a reduced monthly benefit for the longer of the Participant’s lifetime or a specified number of months (60, 120, 180, or 240) with any remaining guaranteed payments on the Participant’s death to a designated beneficiary or beneficiaries (as more fully described in Appendix B); or (iv) a level income option (as more fully described in Appendix B) which pays an increased monthly benefit to a Participant (if payments begin between the ages of 55 and 62) until age 62, and a reduced monthly benefit beginning at age 62. Under each such option the Actuarial Equivalent of the anticipated payments to the Participant shall be greater than that of those to his or her beneficiary, except that if the beneficiary is the Participant’s spouse, the option may provide for a joint and survivor annuity under which the periodic payments to the spouse are no greater than those to the Participant and each option shall otherwise comply with Code Section 401(a)(9) and the final and temporary Treasury Regulations thereunder.

34

6.5    Cash-Outs.
(a)    Notwithstanding anything in this Article to the contrary, if the lump sum Actuarial Equivalent of a Participant’s nonforfeitable Accrued Benefit does not exceed or has never exceeded $5,000, the Participant, or the Participant’s beneficiary in the event of the Participant’s death, may only elect (i) to be paid the lump sum Actuarial Equivalent, or (ii) to have the lump sum Actuarial Equivalent paid directly by the Trustee to the trustee of an Eligible Retirement Plan.
(b)    If the lump sum Actuarial Equivalent of a Participant’s nonforfeitable Accrued Benefit exceeds $5,000 but does not exceed $10,000, the Participant, or the Participant’s beneficiary in the event of the Participant’s death, may elect (i) to be paid the lump sum Actuarial Equivalent, or (ii) to have the lump sum Actuarial Equivalent paid directly by the Trustee to the trustee of an Eligible Retirement Plan. No distribution may be elected under this paragraph (b) unless the Participant has attained at least age 55 with five (5) or more Vesting Years. For purposes of this paragraph (b), a Participant who is an AMO Employee (as defined in Section 2.20) shall be treated as having not less than five (5) Vesting Years as of the day following his or her transfer to Advanced Medical Optics, Inc. In addition, the election may not be made after pension payments start, except that a Participant or a Participant’s beneficiary whose payments started prior to September 1, 1993, and whose lump sum Actuarial Equivalent did not exceed $10,000 at the date payments started, may elect to be paid the remaining lump sum Actuarial Equivalent. A married Participant who elects a lump sum under this paragraph (b) must comply with the applicable requirements for spousal consent.
(c)    A Participant who has no nonforfeitable Accrued Benefit in the Plan at the time of his or her Severance shall be deemed to have been cashed out with a zero cash benefit upon such Severance Date.
6.6    Retroactive Annuity Starting Dates. Notwithstanding anything in the Plan to the contrary, in the case of pensions paid to a Participant and spousal benefits (as described in Section 7.2) paid to a Participant’s surviving spouse, a Participant or a surviving spouse may elect a Retroactive Annuity Starting Date under this Section; provided, that the requirements of this Section are met.
(a)    A Retroactive Annuity Starting Date shall be permitted under this Section only if the following requirements are met:
(i)    The Retroactive Annuity Starting Date may not be earlier than the date on which benefit payments otherwise could have commenced under the terms of the Plan in effect as of the Retroactive Annuity Starting Date.
(ii)    Any future periodic payments shall be the same as the future periodic payments (if any) that would have been paid had payment actually begun on the Retroactive Annuity Starting Date.

35

(iii)    A make-up payment shall be made in an amount equal to any missed payment or payments for the period from the Retroactive Annuity Starting Date to the date of the actual make-up payment (with an appropriate interest adjustment for that period).
(iv)    In determining whether any Retroactive Annuity Starting Date pension (including the required interest adjustment for the make-up payment described above) satisfies Code Section 415, the date that distribution commences shall be treated as the Annuity Starting Date for all purposes, including the determination of the applicable interest rate and the applicable mortality table; provided, that this requirement shall not apply to any form of payment if:
(A)    The form of payment would not have been subject to the present value requirements under Regulation Section 1.417(e)-1(d)(6) had payment commenced on the Retroactive Annuity Starting Date; and
(B)    The date payment commences in that form begins no more than twelve (12) months after the Retroactive Annuity Starting Date.
(b)    The election of a Retroactive Annuity Starting Date shall be made in writing in a manner prescribed by the Committee on a form that clearly states that the Participant is electing a Retroactive Annuity Starting Date. No such election shall be effective with respect to a married Participant unless his or her spouse consents to such election as provided in Section 6.3(a); provided that, this requirement shall not apply if the amount of the spouse’s survivor annuity payments under the Retroactive Annuity Starting Date election is no less than the survivor benefit amount the spouse would have been entitled to receive under the Qualified Joint and Survivor Annuity with an Annuity Starting Date after the date that the required written explanation was provided to the Participant.
(c)    For any form of benefit that would have been subject to Code Section 417(e)(3) had distribution commenced as of the Retroactive Annuity Starting Date, the amount of the distribution must be no less than what the amount would have been as of the date the distribution actually begins, using the (i) applicable interest rate and the applicable mortality table in effect under the Plan on that date and (ii) same annuity form in determining present value. 
(d)    If a Participant or a surviving spouse elects a Retroactive Annuity Starting Date, the date that benefit payments actually begin shall be treated as the Annuity Starting Date for purposes of satisfying the notice and other requirements for commencing benefit payments to the Participant or surviving spouse under this Article VI and Article VII.
(e)    For purposes of this Section, a Retroactive Annuity Starting Date means an annuity starting date affirmatively elected by a Participant or surviving spouse that (i) is on or before the date that the written explanation required under Section 6.3 is provided and (ii) otherwise meets the requirements of this Section and Treasury Regulations under Code Section 417.

36

ARTICLE VII
PRE-RETIREMENT DEATH BENEFITS
7.1    Eligibility. A death benefit shall be payable under Section 7.2 with respect to a Participant if, on the date of his or her death:
(a)    he or she is an Employee who has met the requirements for normal or early retirement under Sections 5.1 or 5.3;
(b)    he or she is an Employee not described in paragraph (a), above, who has a nonforfeitable interest in his or her Accrued Benefit; or
(c)    he or she is a former Employee who has a nonforfeitable interest in his or her Accrued Benefit and whose pension has not yet commenced to be paid.
7.2    Spousal Benefit. Upon the death of a Participant described in Section 7.1, the Participant’s surviving spouse, if living on the date set forth in this Section, shall receive a lump sum distribution if applicable under Section 6.5 or a pension in accordance with the following rules:
(a)    If the Participant is an Employee who has met the requirements for normal or early retirement under Sections 5.1 or 5.3, the pension to the surviving spouse shall begin as of the first day of the month following the Participant’s date of death, shall end on the last day of the month in which the spouse’s death occurs, and shall be in a monthly amount equal to the amount the spouse would have received if the Participant had retired on the date of his or her death and had elected an immediate pension in the form of a Qualified Joint and Survivor Annuity beginning on the first day of the month following the day of his or her death with the spouse as joint annuitant.
(b)    If the Participant is an Employee who has not met the requirements for normal or early retirement under Sections 5.1 or 5.3 but at the time of death has a nonforfeitable interest in his or her Accrued Benefit, the pension to the surviving spouse shall begin on the first day of the month following the month in which the Participant would have first met the requirements for early retirement, shall end on the last day of the month in which the spouse’s death occurs, and shall be in a monthly amount equal to the amount the spouse would have received if (i) the Participant’s Severance had occurred on the date of his or her death, (ii) the Participant had survived to meet the requirements for early retirement, (iii) the Participant had elected an immediate pension in the form of a Qualified Joint and Survivor Annuity beginning on the first day of the month coincident with or next following his or her attainment of the earliest retirement age with the spouse as joint annuitant, and (iv) the Participant had died the day after the date his or her pension commenced.
(c)    If the Participant is a former Employee who retired under Section 5.1, the pension to the surviving spouse shall begin as of the first day of the month coincident with or next following the Participant’s date of death, shall end on the last day of the month in which the spouse’s death occurs, and shall be in a monthly amount equal to the amount the 

37

spouse would have received if the Participant had elected an immediate pension in the form of a Qualified Joint and Survivor Annuity beginning on the first day of the month coincident with or next following the date of his or her death with the spouse as joint annuitant. 
(d)    If the Participant is a former Employee who retired under Section 5.3, the pension to the surviving spouse shall begin as of the first day of the month coincident with or next following the Participant’s date of death, shall end on the last day of the month in which the spouse’s death occurs, and shall be in a monthly amount equal to the amount the spouse would have received if the Participant had elected an immediate pension in the form of a Qualified Joint and Survivor Annuity beginning on the first day of the month coincident with or next following the date of his or her death with the spouse as joint annuitant.
(e)    If the Participant is a former Employee who did not meet the requirements for normal or early retirement under Sections 5.1 or 5.3 but has a nonforfeitable interest in his or her Accrued Benefit, the pension to the surviving spouse shall begin on the first day of the month coincident with or next following the date the Participant would have first met the requirements for early retirement if he or she had not died but had lived, shall end on the last day of the month in which the spouse’s death occurs, and shall be in a monthly amount equal to the amount the spouse would have received if (i) the Participant had survived to meet the requirements for early retirement, (ii) the Participant had elected an immediate pension in the form of a Qualified Joint and Survivor Annuity beginning on the first day of the month coincident with or next following his or her attainment of the earliest retirement age with the spouse as joint annuitant, and (iii) the Participant had died the day after the date his or her pension commenced.
7.3    Alternate Death Benefit. In lieu of the benefit provided in Section 7.2, a Participant described in Section 7.1(a) may, at any time before his or her pension commences, select a beneficiary or beneficiaries other than his or her spouse for a survivor income benefit subject to Section 7.5. The monthly payment to the beneficiary shall equal the payment the beneficiary would have received and which would have been attributable to the Participant’s Accrued Benefit, if the Participant had retired on the day of his or her death with a pension in the form of a 50% joint and survivor annuity beginning as of the first day of the month following the day of his or her death with the beneficiary as joint annuitant.
7.4    Children’s Survivor Benefit. In lieu of the benefit provided in Section 7.2, a Participant described in Section 7.1(a) may, at any time before his or her pension commences, select his or her child or children as beneficiary or beneficiaries for the survivor income benefit subject to Section 7.5. The aggregate monthly payment to the child or children shall equal the monthly payment a surviving spouse of an age equal to that of the Participant would have received under a 50% joint and survivor annuity and which would have been attributable to the Participant’s Accrued Benefit, if the Participant had been covered by Section 7.2 and had left such a surviving spouse. Payments to each child shall continue during such child’s life or until the end of the month in which the child attains age 19, whichever is earlier except that if the child is enrolled as a full-time student in an academic institution, payments shall continue until the earlier of the end of the month in which the child attains age 23 or the termination of the child’s education.

38

7.5    Waiver of Spousal Benefit.  An election under Section 7.3 or 7.4 shall be effective with respect to a married Participant only if he or she waives the benefit provided in Section 7.2 in accordance with the following rules:
(a)    A waiver shall be made in writing in a manner prescribed by the Committee on a form that clearly states that the Participant is waiving the benefit provided in Section 7.2. No such waiver shall be effective unless: (i) the Participant’s spouse consents in writing to the waiver; (ii) the waiver election designates the form of benefit and a specific beneficiary; (iii) the spouse’s consent to the waiver acknowledges the effect of the waiver; and (iv) the spouse’s consent is witnessed by a notary public or by a Plan representative. A waiver without spousal consent shall be effective if the Sponsor determines there is no spouse or the spouse cannot be located.
(b)    Each Participant and his or her spouse shall receive a written explanation of the benefit provided in Section 7.2 which shall include: (i) the terms and conditions of the benefit; (ii) the Participant’s right to make and the effect of waiving the benefit; (iii) the rights of a spouse; and (iv) the right to make, and the effect of, a revocation of a previous election to waive the benefit. Such explanation shall be furnished to the Participant within the applicable period. The term “applicable period” means, with respect to a Participant, whichever of the following periods ends earliest: (i) the period beginning with the first day of the Plan Year in which the Participant becomes a Participant described in Section 7.1(a) and ending on the date of the Participant’s death or (ii) the period beginning with the first day of the Plan Year in which the Participant becomes a Participant described in Section 7.1(a) and ending on the date his or her pension commences.

39

ARTICLE VIII
CONTRIBUTIONS
8.1    Company Contributions. The Company shall contribute each year an amount actuarially determined to be sufficient to provide the benefits under the Plan. Notwithstanding the foregoing, Company contributions for any Plan Year shall be conditioned upon the deductibility of such contributions by the Company under Code Section 404. The Company reserves the right, however, to reduce, suspend or discontinue its contributions under the Plan for any reason at any time. Except as provided in Section 8.3, it shall be impossible for any part of the Company’s contributions to revert to the Company, or to be used for, or diverted to, any purpose other than for the exclusive benefit of Participants and their Beneficiaries.
8.2    Source of Benefits. All benefits under the Plan shall be paid exclusively from the Fund, and the Company shall have no duty to contribute thereto except as provided in this Article.
8.3    Irrevocability. The Company shall have no right or title to, nor interest in, the Company contributions made to the Fund, and no part of the Fund shall revert to the Company, except that on and after the Effective Date funds may be returned to the Company as follows:
(a)    In the case of a contribution which is made by a mistake of fact, such contribution may be returned to the Company within one year after it is made.
(b)    In the case of a contribution conditioned on the initial qualification of the Plan under Code Section 401 (or any successor statute thereto), and the Plan does not initially qualify upon the filing of a timely determination letter request, such contribution may be returned to the Company within one year after the date of denial of the initial qualification of the Plan.
(c)    In the case of a contribution conditioned on the deductibility thereof under Code Section 404 (or any successor statute thereto), such contribution shall, to the extent such deduction is disallowed, be returned to the Company within one year after such disallowance.
(d)    In the case of a contribution conditioned on the initial qualification of the Plan under Puerto Rico Code Section 1081.01 (or any successor statute thereto), and the Plan does not initially qualify upon the filing of a timely determination letter request, such contribution may be returned to the Company within one year after the date of denial of the initial qualification of the Plan, provided, such return of such contribution does not cause the Plan to be disqualified under the Code.
(e)    In the case of a contribution conditioned on the deductibility thereof under Puerto Rico Code Section 1033.09 (or any successor statute thereto), such contribution shall, to the extent such deduction is disallowed, be returned to the Company within one year after 

40

such disallowance, provided, such return of such contribution does not cause the Plan to be disqualified under the Code.

41

8.4    Funding-Based Limits on Benefits and Benefit Accruals.
(a)    Effective as of January 1, 2008, notwithstanding any other provision of the Plan, no benefit shall accrue or be paid under the Plan, and no amendment increasing liability for benefits shall take effect to the extent prohibited by the funding-based limits in Code Section 436 (or any successor provision thereto) and effective as of January 1, 2010, the final regulations issued thereunder (the “Limits”). 
(b)    The Limits imposed by Code Section 436 and guidance issued thereunder on (i) Plan amendments, (ii) accelerated benefit payments, (iii) benefit accruals, and (iv) unpredictable contingent event benefits are set forth below.  The Limits shall be applied on a Participant by Participant and Beneficiary by Beneficiary basis.
 The Committee shall provide notification to affected Participants and Beneficiaries, as applicable, in accordance with the requirements of Section 1.436-1(a)(6) of the Treasury Regulations if the Plan becomes subject to the Limits of Code Sections 436(b), (d), or (e).
Except to the extent required by law or provided in a subsequent amendment to the Plan, the Plan shall not restore any benefits that did not accrue (by reason of a cessation of accruals or failure of an amendment to take effect), and shall not make any payment in lieu of any benefits that are not paid, by reason of the Limits unless the provisions of Subsection (h) below apply and the Limits are lifted within the same Plan Year.
This Section 8.4 is intended to comply with the requirements of Code Section 436 and guidance issued thereunder.  If there is any discrepancy or ambiguity between this Section 8.4 and Code Section 436 and applicable guidance, Code Section 436 and such guidance shall control.  This Section 8.4 shall not be construed in a manner that would impose limitations that are more stringent than those required by Code Section 436 and applicable guidance.  If any limitation described in this Section 8.4 is determined not to be required by Code Section 436 and guidance issued thereunder, such limitation shall not apply.
(c)    No amendment to the Plan which would increase the Plan’s liabilities by increasing benefits, establishing new benefits, or changing the rate of benefit accrual or vesting of benefits shall take effect during a Plan Year if the Plan’s AFTAP for such Plan Year is less than 80% or would be less than 80% if the Plan amendment were taken into account.  However, this Subsection (c) shall not apply to any amendment that (i) implements a mandatory change in the vesting requirements applicable to the Plan under the Code or ERISA, (ii) provides for a benefit increase under a formula that is not compensation-based and the rate of such increase does not exceed the contemporaneous increase in average wages for Participants covered by the amendment (provided that the limit described in Subsection (d) below does not also apply), or (iii) is excepted under guidance issued by the Commissioner of Internal Revenue.
If any Plan amendment cannot take effect during the Plan Year in which it would otherwise have become effective by reason of the limit described in this Subsection (c), then 

42

such amendment, if previously adopted, shall be treated as if it were never adopted unless the amendment specifically provides otherwise; provided, however, that if the Plan amendment does not go into effect for a Plan Year because of the application of a presumed AFTAP determined under Code Section 436(h) and Section 1.436-1(h) of the Treasury Regulations, then the Plan amendment must go into effect for the Plan Year if it would be permitted under the rules of Code Section 436 based on a certified AFTAP for the Plan Year which takes into account the increase in the funding target attainment percentage attributable to the Plan amendment, unless the Plan amendment provides otherwise.
(d)    If the Plan’s AFTAP for a Plan Year is less than 80%, the following limits on accelerated benefit payments shall apply:
(i)    Subject to Subsection (iii) below, if the Plan’s AFTAP for a Plan Year is at least 60% but is less than 80%, a Participant or Beneficiary may not elect an optional benefit form that includes a Prohibited Payment, and the Plan shall not make a Prohibited Payment, with an Annuity Starting Date on or after the Section 436 Measurement Date as of which the limit described in this Subsection (d)(i) begins to apply and before the Section 436 Measurement Date as of which it ceases to apply, unless the present value (determined using the Applicable Interest Rate and Applicable Mortality Table) of the portion of the benefit that is being paid in a Prohibited Payment (i.e., the unrestricted portion) does not exceed the lesser of:
(A)    50% of the present value of the benefit payable in the optional form of benefit that includes the Prohibited Payment; or
(B)    100% of the present value of the maximum guaranteed benefit applicable to the Participant under Section 4022 of ERISA for the year in which the Annuity Starting Date occurs.
For purposes of this paragraph (B), the portion of the benefit that is being paid in a Prohibited Payment is deemed to be the excess of each payment over the smallest payment during the Participant’s lifetime under the optional form of benefit (treating a period after the Annuity Starting Date and during the Participant’s lifetime in which no payments are made as a payment of zero).
(ii)    If the Plan’s AFTAP for a Plan Year is less than 60%, a Participant or Beneficiary may not elect an optional benefit form that includes a Prohibited Payment, and the Plan shall not make a Prohibited Payment, with an Annuity Starting Date on or after the Section 436 Measurement Date as of which the limit described in this Subsection (ii) begins to apply and before the Section 436 Measurement Date as of which it ceases to apply.
For any period in which the Plan sponsor is a debtor in a case under Title 11 of the United States Code, or a similar federal or state law, a Participant or Beneficiary may not elect an optional benefit form that includes a Prohibited Payment, and the Plan shall not make a Prohibited Payment, with an Annuity Starting Date during 

43

such period and before the date the actuary for the Plan certifies that the Plan’s AFTAP is not less than 100%.
(iii)    The following special rules shall apply:
(A)    Only one Prohibited Payment may be made with respect to any Participant during any period of consecutive Plan Years during which the limits described in this Subsection (iii) apply.
(B)    If an optional form of benefit that is otherwise available under the Plan is not available as of an Annuity Starting Date due to the limits described in this Subsection (iii), the Participant or Beneficiary may elect to bifurcate his benefit into unrestricted and restricted portions as described in Section 1.436-1(d)(3)(ii) of the Treasury Regulations.
(C)    Participants or Beneficiaries shall not be permitted to have a new Annuity Starting Date for which the form of payment previously elected may be modified with respect to a period of time during which the limitations of Code Section 436 cease to apply and benefits shall continue to be paid in the normal or optional form of payment previously applied or elected after the limits cease to apply.
(D)    If a Participant or Beneficiary requests a distribution in an optional form of payment that includes a Prohibited Payment not permitted to be currently paid, the Participant or Beneficiary retains the right to defer payment until his Normal Retirement Date or his Later Retirement Date, as applicable, subject to the requirements of Code Sections 411(a)(11) and 401(a)(9) and regulations thereunder.
(E)    Benefits provided to a Participant and any Beneficiary (including an Alternate Payee) of such Participant are aggregated as described in Section 1.436-1(d)(3)(iv)(B) of the Treasury Regulations.
(F)    If the limits described in this Subsection (iii) apply as of a Section 436 Measurement Date, but the limits subsequently cease to apply to the Plan as of a later Section 436 Measurement Date, then the limits shall not apply to benefits with Annuity Starting Dates that occur on or after that later Section 436 Measurement Date.
(e)    If the Plan’s AFTAP for a Plan Year is less than 60%, all benefit accruals under the Plan other than interest credits shall cease as of the applicable Section 436 Measurement Date.  During any period that the Plan is required to cease accruals under this Subsection (e) the Plan may not be amended to increase Plan liabilities by increasing benefits or providing new benefits.  If the limit described in this Subsection (e), ceases to apply to the Plan, the limit does not apply to benefit accruals based on service on or after the Section 436 Measurement Date as of which the limit ceases to apply.

44

(f)    No Unpredictable Contingent Event Benefit shall be paid with respect to an unpredictable contingent event occurring during a Plan Year if the Plan’s AFTAP for the Plan Year is less than 60% or would be less than 60% taking into account any benefits that could be payable with respect to such event.  If any benefit does not become payable during the Plan Year by reason of the limit described in this Subsection (f), the Plan is treated as if it does not provide for such benefit.  Notwithstanding the foregoing, if an Unpredictable Contingent Event Benefit is not paid for a Plan Year because of application of a presumed AFTAP determined under Code Section 436(h) and Section 1.436-1(h) of the Treasury Regulations, then the Unpredictable Contingent Event Benefit must be paid if it would be permitted under the rules of Code Section 436 based on a certified AFTAP for the Plan Year which takes into account the increase in the funding target attainment percentage attributable to the Unpredictable Contingent Event Benefit.
(g)    Any Code Section 436 limitation in effect immediately prior to termination of the Plan shall continue to apply after such termination, provided however, that the restriction of Code Section 436(d) shall not apply to a Prohibited Payment made to carry out the termination of the Plan in accordance with applicable law.
(h)    The Employer may use any method permitted under Code Section 436 and guidance issued thereunder to avoid application of any limit described in this Section 8.4, including providing security in the form described in Section 1.436-1(f)(3) of the Treasury Regulations.  However, the Employer shall not be required (i) to make additional contributions, (ii) to provide additional security to the Plan, or (iii) to alter the method or timing of any actuarial valuation, in order to avoid the application of the funding-based limits described in this Section 8.4.
(i)    For purposes of this Section 8.4, the following special definitions shall apply:
(i)    “AFTAP” means the “adjusted funding target attainment percentage” as described in Code Section 436(j) and Section 1.436-1(j)(1) of the Treasury Regulations.  Notwithstanding the foregoing, for Plan Years beginning on or after October 1, 2008 and before October 1, 2010:
(A)    for the purpose of determining if the funding limits would apply to a payment under a social security leveling option as defined in Code Section 436(j)(3)(C) and in accordance with Section 203 of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 (“PRA 2010”), the AFTAP shall be determined in accordance with the special rules set forth in Code Sections 436(j)(3)(A) and (B) and in accordance with PRA 2010 Section 203; and
(B)    for the purpose of determining if the Plan’s AFTAP for a Plan Year is less than 60%, the AFTAP shall be determined in accordance with the special rules set forth in Code Sections 436(j)(3)(A) and (B) and in accordance with Section 203 of the Worker, Retiree, and Employer Recovery Act of 2008 which shall apply only to the extent that such Section produces 

45

a higher AFTAP for the Plan Year than under Code Sections 436(j)(3)(A) and (B).
(ii)    “Annuity Starting Date” means the “annuity starting date” as defined in Section 1.436-1(j)(2) of the Treasury Regulations.
(iii)    “Prohibited Payment” means a “prohibited payment” as defined in Code Section 436(d)(5) and Section 1.436-1(j)(6) of the Treasury Regulations and generally includes: (A) any payment in excess of the monthly amount paid under a life annuity (plus any social security supplement described in the last sentence of Code Section 411(a)(9)), to a Participant or Beneficiary whose Annuity Starting Date occurs during any period in which a limitation under Subsection (d) above is in effect; (B) any payment for the purchase of an irrevocable commitment from an insurer to pay benefits; (C) any transfer of assets and liabilities to another plan maintained by the Employer or an Affiliated Company that is made in order to avoid or terminate application of the limitations described in this Section 8.4, and (D) any other payment specified by the Secretary of the Treasury.  However, such term shall not include a payment that may be immediately distributed without consent pursuant to Code Section 411(a)(11).
(iv)    “Section 436 Measurement Date” means the “section 436 measurement date” as defined in Section 1.436-1(j)(8) of the Treasury Regulations that is used to determine when the limitations described in this Section 8.4 apply or cease to apply.
(v)    “Unpredictable Contingent Event Benefit” means an “unpredictable contingent event benefit” as defined in Code Section 436(b)(3) and Section 1.436-1(j)(9) of the Treasury Regulations.

46

ARTICLE IX
ADMINISTRATION
9.1    Appointment of Committee. There is hereby created a committee (the “Committee”) which shall exercise such powers and have such duties in administering the Plan as are hereinafter set forth. The Board of Directors shall determine the number of members of such Committee. The members of the Committee shall be appointed by the Board of Directors and such Board shall from time to time fill all vacancies occurring in said Committee. The members of the Committee shall constitute the Named Fiduciaries of the Plan within the meaning of Section 402(a)(2) of ERISA.
9.2    Appointment of Subcommittee. The Global Investments & Benefits Subcommittee established by the Company (the “Subcommittee”) shall exercise management and control over the assets of the Trust. The Board of Directors, acting through the Committee, shall determine the number of members of the Subcommittee. The members of the Subcommittee shall be appointed by the Board of Directors, acting through the Committee, and shall from time to time appoint such members to or fill any vacancies in the Subcommittee. The members of the Subcommittee shall constitute the Named Fiduciaries of the Plan within the meaning of Section 402(a)(2) of ERISA with respect to the management and control of the assets of the Trust.
9.3    Transaction of Business. The Committee and Subcommittee shall transact business as provided in paragraphs (a) and (b), respectively:
(a)    A majority of the Committee shall constitute a quorum for the transaction of business. Actions of the Committee may be taken either by vote at a meeting or in writing without a meeting. All action taken by the Committee at any meeting shall be by a vote of the majority of those present at such meeting. All action taken in writing without a meeting shall be by a vote of the majority of those responding in writing. All notices, advices, directions and instructions to be transmitted by the Committee shall be in writing and signed by or in the name of the Committee. In all its communications with the Trustee, the Committee may, by either of the majority actions specified above, authorize any one or more of its members to execute any document or documents on behalf of the Committee, in which event it shall notify the Trustee in writing of such action and the name or names of its members so designated and the Trustee shall thereafter accept and rely upon any documents executed by such member or members as representing action by the Committee until the Committee shall file with the Trustee a written revocation of such designation.
(b)    A majority of the Subcommittee shall constitute a quorum for the transaction of business. Actions of the Subcommittee may be taken either by vote at a meeting or in writing without a meeting. All action taken by the Subcommittee at any meeting shall be by a vote of the majority of those present at such meeting. All action taken in writing without a meeting shall be by a vote of the majority of those responding in writing. All notices, advices, directions and instructions to be transmitted by the Subcommittee shall be in writing and signed by or in the name of the Subcommittee. In all its communications with the Trustee, the Subcommittee may, by action specified above, authorize any one or more of its members 

47

to execute any document or documents on behalf of the Subcommittee, in which event it shall notify the Trustee in writing of such action and the name or names of its members so designated and the Trustee shall thereafter accept and rely upon any documents executed by such member or members as representing action by the Subcommittee until the Subcommittee shall file with the Trustee a written revocation of such designation.
9.4    Voting. Any member of the Committee who is also a Participant hereunder shall not be qualified to act or vote on any matter relating solely to himself or herself, and upon such matter his or her presence at a meeting shall not be counted for the purpose of determining a quorum. If, at any time a member of the Committee is not so qualified to act or vote, the qualified members of the Committee shall be reduced below two (2) and the Board of Directors shall promptly appoint one or more special members to the Committee so that there shall be at least one qualified member to act upon the matter in question. Such special Committee members shall have power to act only upon the matter for which they were especially appointed and their tenure shall cease as soon as they have acted upon the matter for which they were especially appointed.
9.5    Responsibility of Committees. The responsibilities of the Committee and Subcommittee shall be as provided in paragraphs (a) and (b), respectively:
(a)    The authority to manage and control the operation and administration of the Plan, the general administration of the Plan, the responsibility for carrying out the Plan, and to the extent provided in Section 9.7(e), the authority and responsibility to manage and control the assets of the Trust are hereby delegated by the Board of Directors to and vested in the Committee except to the extent reserved to the Board of Directors, the Sponsor, or the Company. Subject to the limitations of the Plan, the Committee shall, from time to time, establish rules for the performance of its functions and the administration of the Plan. In the performance of its functions, the Committee shall not discriminate in favor of Highly Compensated Employees.
(b)    The authority and responsibility to manage and control the assets of the Trust are hereby delegated by the Board of Directors, acting through the Committee, to and vested in the Subcommittee except to the extent reserved to the Board of Directors or the Board of Directors, acting through the Committee, or the Sponsor. Subject to the limitations of the Plan, the Subcommittee shall, from time to time, establish rules for the performance of its functions.
9.6    Committee Powers. The Committee shall have all discretionary powers necessary to supervise the administration of the Plan and control its operations. In addition to any discretionary powers and authority conferred on the Committee elsewhere in the Plan or by law, the Committee shall have, but not by way of limitation, the following discretionary powers and authority:
(a)    To designate agents to carry out responsibilities relating to the Plan, other than fiduciary responsibilities as provided in Section 9.7.
(b)    To employ such legal, actuarial, medical, accounting, clerical, and other assistance as it may deem appropriate in carrying out the provisions of the Plan, including 

48

one or more persons to render advice with regard to any responsibility any Named Fiduciary or any other fiduciary may have under the Plan.
(c)    To establish rules and regulations from time to time for the conduct of the Committee’s business and the administration and effectuation of the Plan.
(d)    To administer, interpret, construe, and apply the Plan and to decide all questions which may arise or which may be raised under the Plan by any Employee, Participant, former Participant, Beneficiary or other person whatsoever, including but not limited to all questions relating to eligibility to participate in the Plan, the amount of Benefit Years or Vesting Years of any Participant, and the amount of benefits to which any Participant or his or her Beneficiary may be entitled.
(e)    To determine the manner in which the assets of the Plan, or any part thereof, shall be disbursed.
(f)    Subject to provisions (a) through (d) of Section 10.1, to make administrative amendments to the Plan that do not cause a substantial increase or decrease in benefit accruals to Participants and that do not cause a substantial increase in the cost of administering the Plan. 
(g)    To perform or cause to be performed such further acts as it may deem to be necessary, appropriate or convenient in the efficient administration of the Plan.
Any action taken in good faith by the Committee in the exercise of discretionary powers conferred upon it by the Plan shall be conclusive and binding upon the Participants and their Beneficiaries. All discretionary powers conferred upon the Committee shall be absolute; provided, however, that all such discretionary power shall be exercised in a uniform and nondiscriminatory manner.
9.7    Additional Powers of Committee. In addition to any discretionary powers or authority conferred on the Committee elsewhere in the Plan or by law, such Committee shall have the following discretionary powers and authority:
(a)    To appoint one or more Investment Managers pursuant to Section 9.17 to manage and control any or all of the assets of the Trust.
(b)    To designate persons (other than the members of the Committee) to carry out fiduciary responsibilities, including the power to appoint one or more Investment Managers pursuant to Section 9.17 but excluding any other responsibility to manage or control the assets of the Trust;
(c)    To allocate fiduciary responsibilities among the members of the Committee, including the power to appoint one or more Investment Managers pursuant to Section 9.17 but excluding any other responsibility to manage or control the assets of the Trust;
(d)    To cancel any such designation or allocation at any time for any reason;

49

(e)    To exercise management and control over the assets of the Trust to the extent provided in paragraph (a) above and in Section 9.9 (relating to review by the Committee of the long-run and short-run financial needs of the Plan and the determination of the funding policy for the Plan).
Any action under this Section 9.7 shall be taken in writing, and no designation or allocation under paragraphs (a), (b) or (c) shall be effective until accepted in writing by the indicated responsible person.
9.8    Subcommittee Powers. The Subcommittee shall have all discretionary powers necessary to manage and control the assets of the Trust, including but not limited to, the following:
(a)    To exercise management and control over the assets of the Trust except to the extent the Committee appoints an Investment Manager pursuant to Section 9.7(a) and subject to the requirement that all action taken by the Subcommittee shall be in accordance and consistent with the funding policy established by the Committee and shall be communicated to the Committee at periodic intervals.
(b)    To employ consulting, actuarial, and other assistance as it may deem appropriate in carrying out its responsibilities under the Plan, including one or more persons to render advice with regard to any fiduciary responsibility the Subcommittee may have under the Plan.
(c)    To establish rules and regulations from time to time for the conduct of the Subcommittee’s business.
(d)    To direct the Trustee, in writing, from time to time, to invest and reinvest the Trust Fund, or any part thereof, or to purchase, exchange, or lease any property, real or personal, which the Subcommittee may designate. This shall include the right to direct the investment of all or any part of the Trust in any one security or any one type of securities permitted hereunder. Among the securities which the Subcommittee may direct the Trustee to purchase are “qualifying employer securities” as defined in ERISA Section 407(d)(5).
Any action taken in good faith by the Subcommittee in the exercise of discretionary powers conferred upon it by the Plan shall be conclusive and binding upon the Participants and their Beneficiaries.
9.9    Periodic Review of Funding Policy. Notwithstanding the delegation of authority and responsibility to manage and control the assets of the Trust to the Subcommittee, the Committee, at periodic intervals, shall review the long-run and short-run financial needs of the Plan and shall determine a funding policy for the Plan consistent with the objectives of the Plan and the minimum funding standards of ERISA, if applicable. In determining such funding policy the Committee shall take into account, at a minimum, not only the long-term investment objectives of the Trust Fund consistent with the prudent management of the assets thereof, but also the short-run needs of the Plan to pay benefits. All actions taken by the Committee with respect to the funding policy of the Plan, including the reasons therefor, shall be fully reflected in the minutes of the Committee.

50

9.10    Claims Procedures. If a Participant or his or her Beneficiary believes that he or she is being denied any rights or benefits under the Plan, the Participant, Beneficiary, or in either case, his or her authorized representative (the “Claimant”) shall follow the administrative procedures for filing a claim for benefits as set forth in this Section. A claim for benefits shall be in writing and shall be reviewed by the Committee or a claims official designated by the Committee. The Committee or claims official shall review a claim for benefits in accordance with the procedures established by the Committee subject to the following administrative procedures set forth in this Section.
(a)    The Committee shall furnish the Claimant with written or electronic notice of the decision rendered with respect to a claim for benefits within 90 days following receipt by the Committee of the claim unless the Committee determines that special circumstances require an extension of time for processing the claim. In the event an extension is necessary, written or electronic notice of the extension shall be furnished to the Claimant prior to the expiration of the initial 90 day period. The notice shall indicate the special circumstances requiring an extension of time and the date by which a final decision is expected to be rendered. In no event shall the period of the extension exceed 90 days from the end of the initial 90 day period.
(b)    In the case of a denial of the Claimant’s claim, the written or electronic notice of such denial shall set forth (i) the specific reasons for the denial, (ii) references to the Plan provisions upon which the denial is based, (iii) a description of any additional information or material necessary for perfection of the claim (together with an explanation why such material or information is necessary), (iv) an explanation of the Plan’s appeals procedures, and (v) a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA if his or her claim is denied upon appeal.
(c)    In the case of a denial of a claim, a Claimant who wishes to appeal the decision shall follow the administrative procedures for an appeal as set forth in Section 9.11 below.
9.11    Appeals Procedures. A Claimant who wishes to appeal the denial of his or her claim for benefits shall follow the administrative procedures for an appeal as set forth in this Section and shall exhaust such administrative procedures prior to seeking any other form of relief. Appeals shall be reviewed in accordance with the procedures established by the Committee subject to the following administrative procedures set forth in this Section.
(a)    In order to appeal a decision rendered with respect to his or her claim for benefits, a Claimant must file an appeal with the Committee in writing within 60 days following his or her receipt of the notice of denial with respect to the claim.
(b)    The Claimant’s appeal may include written comments, documents, records and other information relating to his or her claim. The Claimant may review all pertinent documents and, upon request, shall have reasonable access to or be provided free of charge, copies of all documents, records, and other information relevant to his or her claim.
(c)    The Committee shall provide a full and fair review of the appeal and shall take into account all claim related comments, documents, records, and other information 

51

submitted by the Claimant without regard to whether such information was submitted or considered under the initial determination or review of the initial determination. Where appropriate, the Committee will overturn a notice of denial if it determines that an error was made in the interpretation of the controlling plan documents or if the Committee determines that an existing interpretation of the controlling plan documents should be changed on a prospective basis. In the event the Claimant is a subordinate, as determined by the Committee, to an individual conducting the review, such individual shall recuse himself or herself from the review of the appeal.
(d)    The Committee shall furnish the Claimant with written or electronic notice of the decision rendered with respect to an appeal within 60 days following receipt by the Committee of the appeal unless the Committee determines that special circumstances require an extension of time for processing the appeal. In the event an extension is necessary, written or electronic notice of the extension shall be furnished to the Claimant prior to the expiration of the initial 60 day period. The notice shall indicate the special circumstances requiring an extension of time and the date by which a final decision is expected to be rendered. In no event shall the period of the extension exceed 60 days from the end of the initial 60 day period.
(e)    In the case of a denial of an appeal, the written or electronic notice of such denial shall set forth (i) the specific reasons for the denial, (ii) references to the Plan provisions upon which the denial is based, (iii) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relating to his or her claim for benefits, and (iv) a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA.
9.12    Limitation on Liability. Each of the fiduciaries under the Plan shall be solely responsible for its own acts and omissions and no fiduciary shall be liable for any breach of fiduciary responsibility resulting from the act or omission of any other fiduciary or person to whom fiduciary responsibilities have been allocated or delegated pursuant to Section 9.2 or 9.7, except as provided in Sections 405(a) and 405(c)(2)(A) or (B) of ERISA. Neither the Committee nor the Subcommittee shall have responsibility over assets as to which management and control has been delegated to an Investment Manager appointed pursuant to Section 9.17 hereof or as to which management and control has been retained by the Trustee.
9.13    Indemnification and Insurance. To the extent permitted by law, the Company shall indemnify and hold harmless the Committee, the Subcommittee and each member thereof, the Board of Directors and each member thereof, and such other persons as the Board of Directors may specify, from the effects and consequences of his or her acts, omissions, and conduct in his or her official capacity in connection with the Plan and Trust. To the extent permitted by law, the Company may also purchase liability insurance for such persons.
9.14    Compensation of Committee and Plan Expenses. Members of the Committee and the Subcommittee shall serve as such without compensation unless the Board of Directors shall otherwise determine, but in no event shall any member of the Committee or Subcommittee who is an Employee receive compensation from the Plan for his or her services as a member of the 

52

Committee or the Subcommittee. All members shall be reimbursed for any necessary expenditures incurred in the discharge of duties as members of the Committee or the Subcommittee. The compensation or fees, as the case may be, of all officers, agents, counsel, the Trustee or other persons retained or employed by the Committee or the Subcommittee shall be fixed by the Committee, subject to approval by the Board of Directors. The expenses incurred in the administration and operation of the Plan, including but not limited to the expenses incurred by the members of the Committee or the Subcommittee in exercising their duties, shall be paid by the Plan from the Trust Fund, unless paid by the Company, provided, however, that the Plan and not the Company shall bear the cost of interest and normal brokerage charges which are included in the cost of securities purchased by the Trust Fund (or charged to proceeds in the case of sales).
9.15    Resignation. Any member of the Committee or Subcommittee may resign by giving fifteen (15) days notice to the Board of Directors, and any member shall resign forthwith upon receipt of the written request of the Board of Directors, whether or not said member is at that time the only member of the Committee or the Subcommittee.
9.16    Reliance Upon Documents and Opinions. The members of the Committee, the Subcommittee, the Board of Directors, the Company and any person delegated to carry out any fiduciary responsibilities under the Plan (hereinafter a “delegated fiduciary”), shall be entitled to rely upon any tables, valuations, computations, estimates, certificates and reports furnished by any consultant, or firm or corporation which employs one or more consultants, upon any opinions furnished by legal counsel, and upon any reports furnished by the Trustee or any Investment Manager. The members of the Committee, the Subcommittee, the Board of Directors, the Company and any delegated fiduciary shall be fully protected and shall not be liable in any manner whatsoever for anything done or action taken or suffered in reliance upon any such consultant, or firm or corporation which employs one or more consultants, Trustee, Investment Manager, or counsel. Any and all such things done or such action taken or suffered by the Committee, the Subcommittee, the Board of Directors, the Company and any delegated fiduciary shall be conclusive and binding on all Employees, Participants, Beneficiaries, and any other persons whomsoever, except as otherwise provided by law. The Committee, the Subcommittee, and any delegated fiduciary may, but are not required to, rely upon all records of the Company with respect to any matter or thing whatsoever, and may likewise treat such records as conclusive with respect to all Employees, Participants, Beneficiaries, and any other persons whomsoever, except as otherwise provided by law.
9.17    Appointment of Investment Manager. From time to time the Committee, in accordance with Section 9.7 hereof, may appoint one or more Investment Managers who shall have investment management and control over assets of the Trust. The Committee shall notify the Trustee of such assets of the appointment of the Investment Manager. In the event more than one Investment Manager is appointed, the Committee shall determine which assets shall be subject to management and control by each Investment Manager and shall also determine the proportion in which funds withdrawn or disbursed shall be charged against the assets subject to each Investment Manager’s management and control. As shall be provided in any contract between an Investment Manager and the Committee, such Investment Manager shall hold a revocable proxy with respect to all securities which are held under the management of such Investment Manager pursuant to such contract, and 

53

such Investment Manager shall report the voting of all securities subject to such proxy on an annual basis to the Committee.

54

ARTICLE X
AMENDMENT AND ADOPTION OF PLAN
10.1    Right to Amend Plan. The Sponsor, by resolution of the Board of Directors, shall have the right to amend the Plan and any trust agreement with the Trustee at any time and from time to time and in such manner and to such extent as it may deem advisable, including retroactively, subject to the following provisions:
(a)    No amendment shall have the effect of reducing any Participant’s vested interest in the Plan or eliminating an optional form of distribution.
(b)    No amendment shall have the effect of diverting any part of the assets of the Plan to persons or purposes other than the exclusive benefit of the Participants or their Beneficiaries.
(c)    No amendment shall have the effect of increasing the duties or responsibilities of a Trustee without its written consent.
(d)    No amendment shall result in discrimination in favor of officers, shareholders, or other highly compensated or key employees.
The Committee shall have the right to amend the Plan, subject to paragraphs (a) through (d) above, in accordance with the provisions of Section 9.6(f).
10.2    Adoption of Plan by Affiliated Companies. Subject to approval by the Board of Directors and consistent with the provisions of ERISA, an Affiliated Company may adopt the Plan for all or any specified group of its Eligible Employees by entering into an adoption agreement in the form and substance prescribed by the Committee. The adoption agreement may include such modification of the Plan provisions with respect to such Eligible Employees as the Committee approves after having determined that no prohibited discrimination or other threat to the qualification of the Plan is likely to result. The Board of Directors may prospectively revoke or modify an Affiliated Company’s participation in the Plan at any time and for any or no reason, without regard to the terms of the adoption agreement, or terminate the Plan with respect to such Affiliated Company’s Eligible Employees and Participants. By execution of an adoption agreement (each of which by this reference shall become part of the Plan), the Affiliated Company agrees to be bound by all the terms and conditions of the Plan.

55

ARTICLE XI
TERMINATION AND MERGER
11.1    Right to Terminate Plan. The Sponsor, by resolution of the Board of Directors, may terminate or partially terminate the Plan. If the Plan is terminated or partially terminated, the assets of the Plan shall be allocated, subject to Section 11.3, as provided in Section 4044 of the Employee Retirement Income Security Act of 1974 (as it may be from time to time amended or construed by any appropriate governmental agency or corporation), without subclasses. Effective as of the first day of the sixth calendar year following the adoption date of this amended and restated Plan, in the event of a termination of the Plan (other than a partial termination), any amount remaining after all fixed and contingent liabilities of the Plan have been satisfied shall revert to the Company notwithstanding any provision in the Plan to the contrary. In the event of a termination of the Plan (other than a partial termination) prior to the first day of the sixth calendar year following the adoption date of this amended and restated Plan, any amount remaining after all fixed and contingent liabilities of the Plan have been satisfied shall be allocated to each Participant in proportion to the present value of a benefit commencing at Normal Retirement Date equal to such Participant’s Average Earnings times Benefit Years. Any allocations under this Section to Participants with respect to whom the Plan is terminating shall be nonforfeitable. Except as otherwise required by law, the time and manner of distribution of the assets or the time and manner of any reversion of assets to the Company shall be determined by the Sponsor by amendment to the Plan.
11.2    Merger Restriction. No merger or consolidation with, or transfer of any of the Plan’s assets or liabilities to, any other plan shall occur at any time unless each Participant would (if the Plan had then terminated) receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit he or she would have been entitled to receive immediately before the merger, consolidation, or transfer (if the Plan had then terminated).
11.3    Effect on Trustee and Committee. The Trustee and the Committee shall continue to function as such for such period of time as may be necessary for the winding up of the Plan and for the making of distributions in the manner prescribed by the Board of Directors at the time of termination of the Plan.
11.4    Effect of Reorganization, Transfer of Assets or Change in Control. 
(a)    In the event of a consolidation or merger of the Company, or in the event of a sale and/or any other transfer of the operating assets of the Company, any ultimate successor or successors to the business of the Company may continue the Plan in full force and effect by adopting the same by resolution of its board of directors and by executing a proper supplemental or transfer agreement with the Trustee.
(b)    In the event of a Change in Control (as herein defined), all Participants who were Participants on the date of such Change in Control shall become 100% vested in their Accrued Benefit on the date of such Change in Control and in any benefit accruals subsequent to the date of the Change in Control. Notwithstanding the foregoing, the Board of Directors 

56

may, at its discretion, amend or delete this paragraph (b) in its entirety prior to the occurrence of any such Change in Control. For the purpose of this paragraph (b), “Change in Control” shall mean the following and shall be deemed to occur if any of the following events occur:
(i)    Any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (a “Person”), is or becomes the “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act (a “Beneficial Owner”), directly or indirectly, of securities of the Sponsor representing (1) 20% or more of the combined voting power of the Sponsor’s then outstanding voting securities, which acquisition is not approved in advance of the acquisition or within 30 days after the acquisition by a majority of the Incumbent Board (as hereinafter defined) or (2) 33% or more of the combined voting power of the Sponsor’s then outstanding voting securities, without regard to whether such acquisition is approved by the Incumbent Board;
(ii)    Individuals who, as of the date hereof, constitute the Board of Directors (the “Incumbent Board”), cease for any reason to constitute at least a majority of the Board of Directors, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Sponsor’s stockholders, is approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Sponsor, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) shall, for the purposes of the Plan, be considered as though such person were a member of the Incumbent Board of the Sponsor;
(iii)    The consummation of a merger, consolidation or reorganization involving the Sponsor, other than one which satisfies both of the following conditions:
(A)    a merger, consolidation or reorganization which would result in the voting securities of the Sponsor outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of another entity) at least 55% of the combined voting power of the voting securities of the Sponsor or such other entity resulting from the merger, consolidation or reorganization (the “Surviving Corporation”) outstanding immediately after such merger, consolidation or reorganization and being held in substantially the same proportion as the ownership in the Sponsor’s voting securities immediately before such merger, consolidation or reorganization, and
(B)    a merger, consolidation or reorganization in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Sponsor representing 20% or more of the combined voting power of the Sponsor’s then outstanding voting securities; or

57

(iv)    The stockholders of the Sponsor approve a plan of complete liquidation of the Sponsor or an agreement for the sale or other disposition by the Sponsor of all or substantially all of the Sponsor’s assets.
Notwithstanding the preceding provisions of this paragraph (b), a Change in Control shall not be deemed to have occurred if the Person described in the preceding provisions of this paragraph (b) is (i) an underwriter or underwriting syndicate that has acquired any of the Sponsor’s then outstanding voting securities solely in connection with a public offering of the Sponsor’s securities, (ii) the Sponsor or any subsidiary of the Sponsor or (iii) an employee stock ownership plan or other employee benefit plan maintained by the Sponsor or an Affiliated Company that is qualified under the provisions of the Code. In addition, notwithstanding the preceding provisions of this paragraph (b), a Change in Control shall not be deemed to have occurred if the Person described in the preceding provisions of this paragraph (b) becomes a Beneficial Owner of more than the permitted amount of outstanding securities as a result of the acquisition of voting securities by the Sponsor or an Affiliated Company which, by reducing the number of voting securities outstanding, increases the proportional number of shares beneficially owned by such Person, provided, that if a Change in Control would occur but for the operation of this sentence and such Person becomes the Beneficial Owner of any additional voting securities (other than through the exercise of options granted under any stock option plan of the Sponsor or through a stock dividend or stock split), then a Change in Control shall occur.
(c)    For purposes of this Section 11.4, a Change of Control shall not be deemed to have occurred upon the distribution of the stock of Advanced Medical Optics, Inc. on June 29, 2002 by the Sponsor to its stockholders.
11.5    Termination Restrictions. The following termination restrictions shall apply: 
(a)    In the event the Plan is terminated, the Accrued Benefit of any Highly Compensated Employee (active or former) shall be limited to an Accrued Benefit that is nondiscriminatory under Code Section 401(a)(4).
(b)    The Accrued Benefit distributed to any of the 25 most Highest Compensated Employees (active or former) with the greatest Earnings in the current or any prior year shall be restricted so that the annual payments to such Highest Compensated Employee are no greater than an amount equal to the payment that would be made on behalf of the Highly Compensated Employee under a straight life annuity that is the actuarial equivalent of the sum of the Highly Compensated Employee’s Accrued Benefit, other benefits under the Plan (other than social security supplement, within the meaning of Section 1.411(a)-7(c)(4)(ii) of the Income Tax Regulations), and the amount that he or she is entitled to receive under a social security supplement.
(c)    Paragraph (b) shall not apply if:
(i)    After payment of the Accrued Benefit to an Employee described in paragraph (a), the value of Plan assets equals or exceeds 110% of the value of current liabilities, as defined in Code Section 412(1)(7),

58

(ii)    The value of the Accrued Benefit for an Employee described in paragraph (a) is less than 1% of the value of current liabilities before distribution, or
(iii)    The value of the Accrued Benefit payable under the Plan to an Employee described in paragraph (b) does not exceed $3,500.
For purposes of this paragraph (c), the Accrued Benefit includes loans in excess of the amount set forth in Code Section 72(p)(2)(A), any periodic income, any withdrawal values payable to a living Employee, and any death benefits not provided for by insurance on the Employee’s life.

59

ARTICLE XII
TOP-HEAVY RULES
12.1    Applicability. Notwithstanding any provision in the Plan to the contrary, and subject to the limitations set forth in Section 12.7, the requirements of Sections 12.4, 12.5, and 12.6 shall apply under the Plan in the case of any Plan Year in which the Plan is determined to be a Top-Heavy Plan under the rules of Section 12.3. For the purpose of this Article XII, the term “Company” shall mean the Sponsor and any Affiliated Company whether or not such Affiliated Company has adopted the Plan.
12.2    Definitions. For purposes of this Article XII, the following special definitions and rules shall apply:
(a)    The term “Key Employee” means any Employee or former Employee (including any deceased Employee) who, at any time during the Plan Year that includes the Determination Date, was an officer of the Company having annual Compensation greater than $130,000 (as adjusted under Code Section 416(i)(1) for Plan Years beginning after December 31, 2002), a Five Percent Owner of the Company, or an One Percent Owner of the Company having annual Compensation of more than $150,000.
(b)    The term “Five Percent Owner” means any person who owns (or is considered as owning within the meaning of Code Section 318) more than 5% of the outstanding stock of the Company or stock possessing more than 5% of the total combined voting power of all stock of the Company.
(c)    The term “One Percent Owner” means any person who would be described in paragraph (b) if “1%” were substituted for “5%” each place where it appears therein.
(d)    The term “Non-Key Employee” means any Employee who is not a Key Employee.
(e)    The term “Determination Date” means, with respect to any plan year, the last day of the preceding plan year. In the case of the first plan year of any plan, the term “Determination Date” shall mean the last day of that plan year.
(f)    The term “Aggregation Group” means (i) each qualified plan of the Company in which at least one Key Employee participates or participated at any time during the determination period (regardless of whether the plan has terminated), and (ii) any other qualified plan of the Company which enables a plan described in clause (i) to meet the requirements of Code Sections 401(a)(4) or 410. Any plan not required to be included in an Aggregation Group under the preceding rules may be treated as being part of such group if the group would continue to meet the requirements of Code Sections 401(a)(4) and 410 with the plan being taken into account.

60

(g)    For purposes of determining ownership under paragraphs (a), (b) and (c) above, the following special rules shall apply: (i) Code Section 318(a)(2)(C) shall be applied by substituting “5%” for “50%”, and (ii) the aggregation rules of Code Sections 414(b), (c) and (m) shall not apply, with the result that the ownership tests of this Section 12.2 shall apply separately with respect to each Affiliated Company.
(h)    The terms “Key Employee” and “Non-Key Employee” shall include their Beneficiaries, and the definitions provided under this Section 12.2 shall be interpreted and applied in a manner consistent with the provisions of Code Section 416(i) and the regulations thereunder.
(i)    For purposes of this Article XII, an Employee’s Compensation shall be determined in accordance with the rules of Code Section 415 and the regulations thereunder.
12.3    Top-Heavy Status.
(a)    The term “Top-Heavy Plan” means, with respect to any Plan Year:
(i)    Any defined benefit plan if, as of the Determination Date, the present value of the cumulative accrued benefits under the plan for Key Employees exceeds 60% of the present value of the cumulative accrued benefits under the plan for all Employees; and
(ii)    Any defined contribution plan if, as of the Determination Date, the aggregate of the account balances of Key Employees under the plan exceeds 60% of the aggregate of the account balances of all Employees under the plan.
In applying the foregoing provisions of this paragraph (a), the valuation date to be used in valuing Plan assets shall be (i) in the case of a defined benefit plan, the same date which is used for computing costs for minimum funding purposes, and (ii) in the case of a defined contribution plan, the most recent valuation date within a 12-month period ending on the applicable Determination Date.
(b)    Each plan maintained by the Company required to be included in an Aggregation Group shall be treated as a Top-Heavy Plan if the Aggregation Group is a Top-Heavy Group.
(c)    The term “Top-Heavy Group” means any Aggregation Group if the sum (as of the Determination Date) of (i) the present value of the cumulative accrued benefits for Key Employees under all defined benefit plans included in the group, and (ii) the aggregate of the account balances of Key Employees under all defined contribution plans included in the group exceeds 60% of a similar sum determined for all Employees. For purposes of determining the present value of the cumulative accrued benefit of any Employee, or the amount of the account balance of any Employee, such present value or amount shall be increased by the aggregate distributions made with respect to the Employee under the plan (including a terminated plan which, had it not been terminated, would have been aggregated 

61

with the plan under Code Section 416(g)(2)(A)(i)) during the one year period ending on the Determination Date. In the case of distributions made for a reason other than severance from employment, death, or disability, the preceding sentence shall be applied by substituting “5-year period” for “1-year period.” Any rollover contribution or similar transfer initiated by the Employee and made after December 31, 1983, to a plan shall not be taken into account with respect to the transferee plan for purposes of determining whether such plan is a Top-Heavy Plan (or whether any Aggregation Group which includes such plan is a Top-Heavy Group).
(d)    If any individual is a Non-Key Employee with respect to any plan for any plan year, but the individual was a Key Employee with respect to the plan for any prior plan year, any accrued benefit for the individual (and the account balance of the individual) shall not be taken into account for purposes of this Section 12.3.
(e)    If any individual has not performed services for the Company at any time during the one year period ending on the Determination Date, any accrued benefit for such individual (and the account balance of the individual) shall not be taken into account for purposes of this Section 12.3.
(f)    In applying the foregoing provisions of this Section, the accrued benefit of a Non-Key Employee shall be determined (i) under the method, if any, which is used for accrual purposes under all plans of the Company and any Affiliate, or (ii) if there is no such uniform method, as if such benefit accrued not more rapidly than the slowest accrual rate permitted under Code Section 411(b)(1)(C).
(g)    For all purposes of this Article XII, the definitions provided under this Section 12.3 shall be applied and interpreted in a manner consistent with the provisions of Code Section 416(g) and the Regulations thereunder.
12.4    Minimum Benefit.
(a)    The Plan shall provide a minimum benefit for each Participant who is not classified as a “Key Employee.” This minimum benefit, when expressed as an annual retirement benefit payable in the form of a single life annuity beginning when the Participant attains Age 65, shall not be less than the Participant’s average annual compensation during the period of consecutive years (not exceeding five (5)) during which the Participant had the greatest aggregate compensation from the Company multiplied by the lesser of:
(i)    Two percent (2%) multiplied by the number of his or her Vesting Years; or
(ii)    Twenty percent (20%).
(b)    For purposes of this Section 12.4, Vesting Years shall be determined under Code Sections 411(a)(4), (5), and (6), but excluding:

62

(i)    Any Vesting Year if the Plan was not a Top-Heavy Plan for the Plan Year ending during such Vesting Year;
(ii)    Any Vesting Year which was completed in a Plan Year beginning before January 1, 1984; and
(iii)    Any Vesting Year which was completed in a Plan Year beginning on or after January 1, 2002 during which the Plan benefits (within the meaning of Code Section 410(b)) no Key Employee or former Key Employee.
(c)    The Participant’s minimum benefit determined under this Section 12.4 shall be calculated without regard to any Social Security benefits payable to the Participant.
(d)    In the event a Participant is covered by both a defined contribution and a defined benefit plan maintained by the Company, both of which are determined to be Top-Heavy Plans, the Company shall satisfy the minimum benefit requirements of Code Section 416 by providing (in lieu of the minimum contribution described under the defined contribution plan) a minimum benefit under the Plan so as to prevent the duplication of required minimum benefits hereunder.
12.5    Maximum Benefit.
(a)    Except as set forth below, in the case of any Top-Heavy Plan the rules of Sections 5.7(a)(i) and 5.7(b) shall be applied by substituting “1.0” for “1.25.”
(b)    The rule set forth in paragraph (a) above shall not apply if the requirements of both subparagraphs (i) and (ii) are satisfied.
(i)    The requirements of this subparagraph (i) are satisfied if the rules of Section 12.4(a) above would be satisfied after substituting “three percent (3%)” for “two percent (2%)” where it appears therein and by increasing (but not by more than ten (10) percentage points) twenty percent (20%) by one (1) percentage point for each year for which the Plan is a Top Heavy Plan.
(ii)    The requirements of this subparagraph (ii) are satisfied if the Plan would not be a Top-Heavy Plan if “ninety percent (90%)” were substituted for “sixty percent (60%)” each place it appears in Sections 12.3(a) and 12.3(c).
(c)    The rules of paragraph (a) shall not apply with respect to any Employee as long as there are no --
(i)    Company contributions, forfeitures, or voluntary nondeductible contributions allocated to the Employee under a defined contribution plan maintained by the Company, or
(ii)    Accruals by the Employee under a defined benefit plan maintained by the Company.

63

(d)    In the case where the Plan is subject to the rules of paragraph (a) above, the transition fraction rules of Code Section 415(e)(6) shall be applied by substituting “$41,500” for “$51,875.”

64

12.6    Minimum Vesting Rules.
(a)    For any Plan Year in which it is determined that the Plan is a Top-Heavy Plan, the vesting schedule of the Plan shall be changed to that set forth below (unless the Plan’s vesting schedule otherwise provides for vesting at a rate at least as rapid as that set forth below):
Number of Vesting Years        Nonforfeitable Percentage

Less than 3 years                        0%
3 or more                        100%

(b)    If the Plan ceases to be a Top-Heavy Plan, the vesting schedule of the Plan shall (for such Plan Years as the Plan is not a Top-Heavy Plan) revert to that provided in Section 5.11 (the “Regular Vesting Schedule”). If such reversion to the Regular Vesting Schedule is deemed to constitute a vesting schedule change that is attributable to a Plan amendment (within the meaning of Code Section 411(a)(10)), then such reversion to said Regular Vesting Schedule shall be subject to the requirements of Code Section 411(a)(10). For such purposes, the date of the adoption of such deemed amendment shall be the Determination Date as of which it is determined that the Plan has ceased to be a Top-Heavy Plan.
12.7    Noneligible Employees. The rules of this Article XII shall not apply to any Employee included in a unit of employees covered by a collective bargaining agreement between employee representatives and one or more employers if retirement benefits were the subject of good faith bargaining between such employee representatives and the employer or employers.  The rules of this Article XII shall not apply to a Participant who is a resident of Puerto Rico unless such exclusion is impermissible under the Code, in which case the application of the rules of Article XII to a Participant who is a resident of Puerto Rico shall not cause the Participant’s maximum permissible benefit to exceed the limits of Section 5.7.

65

ARTICLE XIII
RESTRICTION ON ASSIGNMENT OR 
OTHER ALIENATION OF PLAN BENEFITS
13.1    General Restrictions Against Alienation.
(a)    The interest of any Participant or his or her Beneficiary in the income, benefits, payments, claims or rights hereunder, or in the Trust Fund, shall not in any event be subject to sale, assignment, hypothecation, or transfer. Each Participant and Beneficiary is prohibited from anticipating, encumbering, assigning, or in any manner alienating his or her interest under the Trust Fund, and is without power to do so. The interest of any Participant or Beneficiary shall not be liable or subject to his or her debts, liabilities, or obligations, now contracted, or which may hereafter be contracted, and such interest shall be free from all claims, liabilities, or other legal process now or hereafter incurred or arising. Neither the interest of a Participant or Beneficiary, nor any part thereof, shall be subject to any judgment rendered against any such Participant or Beneficiary. Notwithstanding the foregoing, a Participant’s or Beneficiary’s interest in the Plan may be subject to the enforcement of a federal tax levy made pursuant to Code Section 6331 or the collection by the United States on a judgment resulting from an unpaid tax assessment.
(b)    In the event any person attempts to take any action contrary to this Article XIII, such action shall be null and void and of no effect, and the Company, the Committee, the Trustee and all Participants and their Beneficiaries, may disregard such action and are not in any manner bound thereby, and they, and each of them, shall suffer no liability for any such disregard thereof, and shall be reimbursed on demand out of the Trust Fund for the amount of any loss, cost or expense incurred as a result of disregarding or of acting in disregard of such action.
(c)    The foregoing provisions of this Section shall be interpreted and applied by the Committee in accordance with the requirements of Code Section 401(a)(13) and Section 206(d) of ERISA as construed and interpreted by authoritative judicial and administrative rulings and regulations.
13.2    Qualified Domestic Relations Orders. The rule set forth in Section 13.1 above shall not apply with respect to a “Qualified Domestic Relations Order” as described below.
(a)    A “Qualified Domestic Relations Order” is a judgment, decree, or order (including approval of a property settlement agreement) that:
(i)    Creates or recognizes the existence of an Alternate Payee’s right to, or assigns to an Alternate Payee the right to, receive all or a portion of the benefits payable under this Plan with respect to a Participant,

66

(ii)    Relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child or other dependent of a Participant,
(iii)    Is made pursuant to a State domestic relations law (including a community property law), and
(iv)    Clearly specifies: (1) the name and last known mailing address (if any) of the Participant and the name and mailing address of each Alternate Payee covered by the order (if the Committee does not have reason to know that address independently of the order); (2) the amount or percentage of the Participant’s benefits to be paid to each Alternate Payee, or the manner in which the amount or percentage is to be determined; (3) the number of payments or period to which the order applies; and (4) each plan to which the order applies.
For purposes of this Section 13.2, “Alternate Payee” means any spouse, former spouse, child or other dependent of a Participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable with respect to the Participant.
(b)    A domestic relations order is not a Qualified Domestic Relations Order if it requires:
(i)    The Plan to provide any type or form of benefit, or any option, not otherwise provided under the Plan;
(ii)    The Plan to provide increased benefits; or
(iii)    The payment of benefits to an Alternate Payee that are required to be paid to another Alternate Payee under a previous Qualified Domestic Relations Order.
(c)    A domestic relations order shall not be considered to fail to satisfy the requirements of paragraph (b)(i) above with respect to any payment made before a Participant has separated from service solely because the order requires that payment of benefits be made to an Alternate Payee:
(i)    On or after the date on which the Participant attains (or would have first attained) his earliest retirement age (as defined in Code Section 414(p)(4)(B));
(ii)    As if the Participant had retired on the date on which such payment is to begin under such order (but taking into account only the present value of accrued benefits and not taking into account the present value of any subsidy for early retirement benefits); and

67

(iii)    In any form in which such benefits may be paid under the Plan to the Participant (other than in the form of a joint and survivor annuity with respect to the Alternate Payee and his or her subsequent spouse).
Notwithstanding the foregoing, if the Participant dies before his or her earliest retirement age (as defined in Code Section 414(p)(4)(B)), the Alternate Payee is entitled to benefits only if the Qualified Domestic Relations Order requires survivor benefits to be paid to the Alternate Payee.
(d)    To the extent provided in any Qualified Domestic Relations Order, the former spouse of a Participant shall be treated as a surviving spouse of the Participant for purposes of applying the rules (relating to minimum survivor annuity requirements) of Code Sections 401(a)(11) and 417, and any current spouse of the Participant shall not be treated as a spouse of the Participant for such purposes.
(e)    In the case of any domestic relations order received by the Plan, the Committee shall promptly notify the Participant and any Alternate Payee of the receipt of the order and the Plan’s procedures for determining the qualified status of domestic relations orders. Within a reasonable period after the receipt of the order, the Committee shall determine whether the order is a Qualified Domestic Relations Order and shall notify the Participant and each Alternate Payee of such determination.
(f)    The Committee shall establish reasonable procedures to determine the qualified status of domestic relations orders and to administer distributions under Qualified Domestic Relations Orders. During any period in which the issue of whether a domestic relations order is a Qualified Domestic Relations Order is being determined (by the Committee, by a court of competent jurisdiction, or otherwise), the Committee shall segregate in a separate account in the Plan (or in an escrow account) the amounts which would have been payable to the Alternate Payee during the period if the order had been determined to be a Qualified Domestic Relations Order. If within the 18 Month Period (as defined below), the order (or modification thereof) is determined to be a Qualified Domestic Relations Order, the Committee shall pay the segregated amounts (plus any interest thereon) to the person or persons entitled thereto. However, if within the 18 Month Period (i) it is determined that the order to not a Qualified Domestic Relations Order, or (ii) the issue as to whether the order is a Qualified Domestic Relations Order is not resolved, then the Committee shall pay the segregated amounts (plus any interest thereon) to the person or persons who would have been entitled to the amounts if there had been no order (assuming such benefits were otherwise payable). Any determination that an order is a Qualified Domestic Relations Order that is made after the close of the 18 Month Period shall be applied prospectively only. For purposes of this Section 13.2, the “18 Month Period” shall mean the 18 month period beginning with the date on which the first payment would be required to be made under the domestic relations order.

68

ARTICLE XIV
MISCELLANEOUS
14.1    No Right of Employment Hereunder. The adoption and maintenance of the Plan and Trust shall not be deemed to constitute a contract of employment or otherwise between the Company and any Employee or Participant, or to be a consideration for, or an inducement or condition of, any employment. Nothing contained herein shall be deemed to give any Employee the right to be retained in the service of the Company or to interfere with the right of the Company to discharge, with or without cause, any Employee or Participant at any time, which right is hereby expressly reserved.
14.2    Effect of Article Headings. Article headings are for convenient reference only and shall not be deemed to be a part of the substance of this instrument or in any way to enlarge or limit the contents of any Article.
14.3    Limitation on Company Liability. Any benefits payable under the Plan shall be paid or provided for solely from the Plan and the Company assumes no liability or responsibility therefor.
14.4    Interpretation. The provisions of the Plan shall in all cases be interpreted in a manner that is consistent with the Plan satisfying the requirements of Code Section 401(a) and related statutes for qualification as a defined benefit plan.
14.5    Withholding For Taxes. Any payments from the Trust Fund may be subject to withholding for taxes as may be required by any applicable federal or state law.
14.6    California Law Controlling. All legal questions pertaining to the Plan which are not controlled by ERISA shall be determined in accordance with the laws of the State of California and all contributions made hereunder shall be deemed to have been made in that State.
14.7    Plan and Trust as One Instrument. The Plan and any trust agreement adopted hereunder shall be construed together as one instrument. In the event that any conflict arises between the terms and/or conditions of any trust agreement with the Trustee and the Plan, the provisions of the Plan shall control, except that with respect to the duties and responsibilities of the Trustee, the trust agreement shall control.
14.8    Invalid Provisions. If any paragraph, section, sentence, clause or phrase contained in the Plan shall become illegal, null or void or against public policy, for any reason, or shall be held by any court of competent jurisdiction to be incapable of being construed or limited in a manner to make it enforceable, or is otherwise held by such court to be illegal, null or void or against public policy, the remaining paragraphs, sections, sentences, clauses or phrases contained in the Plan shall not be affected thereby.
14.9    Counterparts. This instrument may be executed in one or more counterparts each of which shall be legally binding and enforceable.

69

14.10    Forfeitures. All forfeitures arising under the Plan shall be used as soon as possible to reduce the Company’s contributions and shall not be applied to increase the benefits any person would otherwise receive under the Plan.
14.11    Facility of Payment. If the Committee deems any person incapable of receiving benefits to which he is entitled by reason of minority, illness, infirmity, or other incapacity, it may direct that payment be made directly for the benefit of such person or to any person selected by the Committee to disburse it, whose receipt shall be a complete acquittance therefor. Such payments shall, to the extent thereof, discharge all liability of the Company and the party making the payment.
14.12    Lapsed Benefits.
(a)    In the event that a benefit is payable under the Plan to a Participant and after reasonable efforts the Participant cannot be located for the purpose of paying the benefit during a period of three consecutive years, the Participant shall be presumed dead and the benefit (if any) shall, upon the termination of that three year period, be paid to the Participant’s Beneficiary.
(b)    If any eligible Beneficiary cannot be located for the purpose of paying the benefit for the following two years, then the benefit shall be forfeited and applied in accordance with the provisions of Section 14.10.
(c)    Notwithstanding the foregoing rules, if after such a forfeiture the Participant or an eligible Beneficiary shall claim the forfeited benefit, the amount forfeited shall be reinstated and paid to the claimant as soon as practical following the claimant’s production of reasonable proof of his or her identity and entitlement to the benefit (determined pursuant to the Plan’s normal claim review procedures under Sections 9.8 and 9.9). 
(d)    The Committee shall direct the Trustee with respect to the procedures to be followed concerning a missing Participant (or Beneficiary), and the Company shall be obligated to contribute to the Trust Fund any amounts necessary after the application of Section 14.10 to pay any reinstated benefit after it has been forfeited pursuant to the provisions of this Section.
14.13    Correction of Errors.
(a)    Recovery of Overpayment.  The Plan has the right to recover any mistaken payment, overpayment, or any payment made to any individual who was not eligible for that payment (“Overpayment”).  Any Overpayment creates a lien by agreement, and the Plan, or its designee, may withhold or offset future benefit payments, sue to recover any Overpayment, or use any other lawful remedy to recoup any Overpayment.  
(b)    Maintenance of Compliance.  The Committee may take whatever action they determine to be appropriate to correct any error, or any Plan operational or document defect, including but not limited to those that may be necessary to maintain the Plan’s qualified status or compliance with applicable law.  The Committee shall also have the discretion to 

70

correct any operational or qualification defect or failure of this Plan pursuant to any program of voluntary correction sponsored by the Internal Revenue Service or the Department of Labor, or any other agency of the federal government.
IN WITNESS WHEREOF, Allergan, Inc. hereby executes this instrument, evidencing the terms of the Allergan, Inc. Pension Plan as restated this 31day of January, 2013.

ALLERGAN, INC.

By:        /s/ Scott D. Sherman                    
Title:    Executive Vice President, Human Resources            
        

71

APPENDIX A
A.1.The Actuarial Equivalent of a benefit other than a lump sum shall be determined as follows:
(a)    For Annuity Starting Dates on or after July 1, 2002, the Actuarial Equivalent of a benefit other than a lump sum shall be determined by applying a 7% interest rate and the 1994 Group Annuity Reserving Table; provided, however, the Actuarial Equivalent of a contingent benefit option which provides a benefit following a Participant’s death to the Participant’s surviving spouse shall be determined by the factors set forth in Table I under this Appendix A if greater.
(b)    For Annuity Starting Dates commencing as of the Plan’s Original Effective Date and ending June 30, 2002, the Actuarial Equivalent of a benefit other than a lump sum shall be determined by applying a 7% interest rate and the 1971 GAM Mortality Table -- Males (age set-back 2 years); provided, however, the Actuarial Equivalent of a contingent benefit option which provides a benefit following a Participant’s death to the Participant’s surviving spouse shall be determined by the factors set forth in Table II under this Appendix A.
A.2.    The Actuarial Equivalent of a Participant’s nonforfeitable Accrued Benefit payable in the form of a lump sum benefit shall, for purposes of Section 6.5, be determined as follows:
(a)    The Actuarial Equivalent for a lump sum benefit with an Annuity Starting Date on or after January 1, 2008 shall mean an amount of equal actuarial value based on the Applicable Mortality Table and the Applicable Interest Rate where:
(i)    “Applicable Mortality Table” is the table prescribed by the Secretary of the Treasury pursuant to Code Section 417(e)(3); and
(ii)    “Applicable Interest Rate” is the interest rate set forth in Code Section 417(e)(3) for the December prior to the Plan Year in which the Annuity Starting Date occurs.
(b)    The Actuarial Equivalent of a lump sum benefit with an Annuity Starting Date on or after July 1, 2002 and prior to January 1, 2008 shall mean an amount of equal actuarial value based on the Applicable Mortality Table and the Applicable Interest Rate where:
(i)    “Applicable Mortality Table” means the 1994 Group Annuity Reserving Table; and
(ii)    “Applicable Interest Rate” means the annual interest rate on 30- year Treasury securities as specified by the Commissioner of Internal Revenue for the first full calendar month preceding the Plan Year that contains the annuity starting date.

1

(c)    The Actuarial Equivalent of a lump sum benefit with an Annuity Starting Date on or after January 1, 1995 and prior to July 1, 2002 shall mean an amount of equal actuarial value based on the Applicable Mortality Table and the Applicable Interest Rate where:
(i)    “Applicable Mortality Table” means the 1983 Group Annuity Mortality Table; and
(ii)    “Applicable Interest Rate” means the annual interest rate on 30- year Treasury securities as specified by the Commissioner of Internal Revenue for the first full calendar month preceding the Plan Year that contains the annuity starting date.
(d)    The Actuarial Equivalent of a lump sum benefit with an Annuity Starting Date prior to January 1, 1995, shall mean an amount equal to the actuarial value based on the interest rate(s) which would be used (as of the first day of the Plan Year in which falls the annuity starting date) by the Pension Benefits Guaranty Corporation (PBGC) for a trusteed single-employer plan to value a benefit upon termination of an insufficient trusteed single-employer plan and the 1971 GAM Mortality Table – Males (age set-back 2 years).
A.3.    The Actuarial Equivalent of a Participant’s pension payable in the form of a level income option under Section 6.4(iv) with an Annuity Starting Date on or after January 1, 2009, shall be the greater of the benefit determined using the interest and mortality factors set forth in Section A.1(a) or the benefit using the interest and mortality factors set forth Section A.2(a) of this Appendix A.

2

	
									
	ATTACHMENT TO APPENDIX A
TABLE I
OPTIONAL BENEFIT FORM FACTORS
(TO BE APPLIED TO STRAIGHT LIFE ANNUITY)
7%/1994 Group Annuity Reserving Table

	Retire
Age
	50%
J&S
	66-2/3%
J&S
	75%
J&S
	100%
J&S
	5 Yr
C&C
	10 Yr
C&C
	15 Yr
C&C
	20 Yr
C&C

	35
	0.984
	0.979
	0.977
	0.969
	1.000
	0.998
	0.997
	0.994

	36
	0.984
	0.978
	0.976
	0.968
	1.000
	0.998
	0.996
	0.994

	37
	0.983
	0.977
	0.974
	0.966
	1.000
	0.998
	0.996
	0.994

	38
	0.982
	0.976
	0.973
	0.964
	1.000
	0.998
	0.996
	0.993

	39
	0.981
	0.974
	0.971
	0.962
	0.999
	0.998
	0.995
	0.992

	40
	0.980
	0.973
	0.970
	0.960
	0.999
	0.998
	0.995
	0.992

	41
	0.979
	0.972
	0.968
	0.958
	0.999
	0.998
	0.995
	0.991

	42
	0.977
	0.970
	0.967
	0.956
	0.999
	0.997
	0.994
	0.990

	43
	0.976
	0.968
	0.965
	0.953
	0.999
	0.997
	0.994
	0.989

	44
	0.975
	0.967
	0.963
	0.951
	0.999
	0.997
	0.993
	0.987

	45
	0.973
	0.965
	0.961
	0.948
	0.999
	0.996
	0.992
	0.986

	46
	0.972
	0.963
	0.959
	0.946
	0.999
	0.996
	0.991
	0.984

	47
	0.970
	0.961
	0.956
	0.943
	0.999
	0.996
	0.990
	0.982

	48
	0.969
	0.959
	0.954
	0.939
	0.999
	0.995
	0.989
	0.980

	49
	0.967
	0.957
	0.951
	0.936
	0.999
	0.995
	0.988
	0.977

	50
	0.965
	0.954
	0.949
	0.933
	0.998
	0.994
	0.986
	0.974

	51
	0.963
	0.952
	0.946
	0.929
	0.998
	0.993
	0.984
	0.971

	52
	0.961
	0.949
	0.943
	0.925
	0.998
	0.992
	0.982
	0.967

	53
	0.959
	0.946
	0.940
	0.921
	0.998
	0.991
	0.979
	0.963

	54
	0.957
	0.943
	0.937
	0.917
	0.997
	0.990
	0.976
	0.958

	55
	0.954
	0.940
	0.933
	0.913
	0.997
	0.988
	0.973
	0.953

	56
	0.952
	0.937
	0.930
	0.908
	0.997
	0.986
	0.969
	0.947

	57
	0.949
	0.934
	0.926
	0.904
	0.996
	0.984
	0.965
	0.941

	58
	0.947
	0.930
	0.922
	0.899
	0.995
	0.982
	0.960
	0.934

	59
	0.944
	0.927
	0.918
	0.894
	0.995
	0.979
	0.955
	0.926

	60
	0.941
	0.923
	0.915
	0.889
	0.994
	0.976
	0.949
	0.918

	61
	0.939
	0.920
	0.911
	0.884
	0.993
	0.973
	0.943
	0.909

	62
	0.936
	0.916
	0.906
	0.879
	0.992
	0.969
	0.937
	0.899

	63
	0.933
	0.912
	0.902
	0.874
	0.991
	0.965
	0.929
	0.888

	64
	0.930
	0.909
	0.898
	0.869
	0.989
	0.961
	0.921
	0.877

	65
	0.927
	0.905
	0.894
	0.864
	0.988
	0.956
	0.913
	0.865

	66
	0.924
	0.901
	0.890
	0.859
	0.986
	0.951
	0.904
	0.852

	67
	0.921
	0.898
	0.887
	0.854
	0.985
	0.946
	0.894
	0.838

	68
	0.919
	0.894
	0.883
	0.850
	0.983
	0.940
	0.883
	0.824

3

	
									
	ATTACHMENT TO APPENDIX A
TABLE I
OPTIONAL BENEFIT FORM FACTORS
(TO BE APPLIED TO STRAIGHT LIFE ANNUITY)
7%/1994 Group Annuity Reserving Table

	69
	0.916
	0.891
	0.879
	0.845
	0.981
	0.933
	0.871
	0.808

	70
	0.913
	0.887
	0.875
	0.840
	0.979
	0.926
	0.858
	0.791

	71
	0.910
	0.883
	0.871
	0.835
	0.976
	0.917
	0.844
	0.773

	72
	0.907
	0.879
	0.866
	0.829
	0.973
	0.907
	0.828
	0.754

	73
	0.904
	0.875
	0.862
	0.824
	0.970
	0.896
	0.811
	0.734

	74
	0.900
	0.871
	0.857
	0.819
	0.966
	0.884
	0.792
	0.712

	75
	0.897
	0.867
	0.853
	0.813
	0.961
	0.870
	0.772
	0.690

	76
	0.893
	0.863
	0.848
	0.807
	0.955
	0.854
	0.750
	0.667

	77
	0.890
	0.858
	0.843
	0.801
	0.948
	0.837
	0.727
	0.643

	78
	0.886
	0.854
	0.838
	0.795
	0.941
	0.819
	0.703
	0.619

	79
	0.883
	0.849
	0.834
	0.790
	0.932
	0.798
	0.678
	0.595

	80
	0.879
	0.845
	0.829
	0.784
	0.923
	0.777
	0.653
	0.570

4

	
								
	ATTACHMENT TO APPENDIX A
TABLE II
OPTIONAL BENEFIT FORM FACTORS
(TO BE APPLIED TO STRAIGHT LIFE ANNUITY)
7%/ 1971 GAM Mortality Table -- Males (age set-back 2 years)

	Retire
Age
	50%
J&S
	75%
J&S
	100%
J&S
	5 Yr
C&C
	10 Yr
C&C
	15 Yr
C&C
	20 Yr
C&C

	35
	0.984
	0.977
	0.969
	1.000
	0.998
	0.997
	0.994

	40
	.975
	.960
	.945
	.999
	.996
	.990
	.983

	41
	.973
	.958
	.942
	.999
	.995
	.989
	.981

	42
	.971
	.956
	.939
	.999
	.995
	.988
	.979

	43
	.969
	.954
	.936
	.999
	.994
	.986
	.976

	44
	.967
	.952
	.933
	.998
	.993
	.984
	.973

	45
	.965
	.950
	.930
	.998
	.992
	.982
	.970

	46
	.963
	.948
	.926
	.998
	.991
	.980
	.967

	47
	.961
	.946
	.922
	.997
	.990
	.978
	.963

	48
	.959
	.944
	.918
	.997
	.988
	.975
	.959

	49
	.957
	.942
	.914
	.997
	.987
	.972
	.954

	50
	.955
	.940
	.910
	.996
	.985
	.969
	.950

	51
	.953
	.937
	.906
	.996
	.984
	.966
	.945

	52
	.951
	.934
	.902
	.995
	.982
	.962
	.939

	53
	.949
	.931
	.898
	.995
	.980
	.959
	.933

	54
	.947
	.928
	.894
	.994
	.978
	.954
	.926

	55
	.945
	.925
	.890
	.993
	.975
	.950
	.919

	56
	.942
	.921
	.885
	.993
	.973
	.945
	.911

	57
	.939
	.917
	.880
	.992
	.970
	.939
	.902

	58
	.936
	.913
	.875
	.991
	.967
	.933
	.893

	59
	.933
	.909
	.870
	.990
	.963
	.926
	.883

	60
	.930
	.905
	.865
	.989
	.959
	.918
	.872

	61
	.927
	.901
	.860
	.987
	.954
	.909
	.860

	62
	.924
	.897
	.855
	.986
	.949
	.899
	.847

	63
	.921
	.893
	.850
	.984
	.943
	.889
	.833

	64
	.918
	.889
	.845
	.982
	.937
	.877
	.818

	65
	.915
	.885
	.840
	.980
	.929
	.865
	.802

	66
	.911
	.881
	.834
	.977
	.921
	.851
	.785

	67
	.907
	.877
	.828
	.974
	.911
	.836
	.768

	68
	.903
	.873
	.822
	.971
	.901
	.821
	.749

	69
	.899
	.869
	.816
	.967
	.890
	.804
	.730

	70
	.895
	.865
	.810
	.962
	.878
	.787
	.711

	71
	.892
	.862
	.805
	.957
	.865
	.769
	.691

	72
	.889
	.859
	.800
	.952
	.851
	.750
	.671

5

	
								
	ATTACHMENT TO APPENDIX A
TABLE II
OPTIONAL BENEFIT FORM FACTORS
(TO BE APPLIED TO STRAIGHT LIFE ANNUITY)
7%/ 1971 GAM Mortality Table -- Males (age set-back 2 years)

	73
	.886
	.856
	.795
	.946
	.837
	.731
	.651

	74
	.883
	.853
	.790
	.940
	.822
	.711
	.631

	75
	.880
	.850
	.785
	.934
	.806
	.691
	.610

	76
	.877
	.846
	.781
	.927
	.789
	.671
	.590

	77
	.874
	.842
	.777
	Left intentionally blank

	78
	.871
	.838
	.773
	Left intentionally blank

	79
	.868
	.834
	.769
	Left intentionally blank

	80
	.865
	.830
	.765
	Left intentionally blank

6

APPENDIX B
B.1.For purposes of Section 4.3(b) of the Plan, the Accrued Benefit of a Participant shall be equal to one-twelfth (1/12) of the difference between:
(a)    the sum of: 
(i)    1.7% of his or her Average Earnings multiplied by the number of his or her Benefit Years to a maximum of 35 Benefit Years; plus
(ii)    0.5% of his or her Average Earnings for each Benefit Year in excess of 35 Benefit Years; and
(b)    1.43% of the Participant’s Primary Social Security Benefit multiplied by the number of his or her Benefit Years to a maximum of 35 Benefit Years.
Notwithstanding the foregoing, the Accrued Benefit of a Participant who is considered a highly compensated employee in 1989 within the meaning of Code Section 414(q)(1)(A) or (B) is limited to the Participant’s Accrued Benefit under the SKB Plan as of the Spin-Off Date. The Accrued Benefit of a Participant who is considered a highly compensated employee in 1990 within the meaning of Code Section 414(q)(1)(A) or (B), and is not considered a highly compensated employee in 1989 within the meaning of Code Section 414(q)(1)(A) or (B) is limited to the Participant’s Accrued Benefit as of December 31, 1989.
B.2.    The level income option offered as an optional form of benefit under Section 6.4(b) of the Plan, provides a monthly pension payable as a Single Life Annuity or under a contingent beneficiary option. For purposes of this paragraph, the Single Life Annuity or, if a contingent beneficiary option is elected, the monthly amount payable to a Participant as reduced for the contingent beneficiary option shall be referred to as the Participant’s Life Pension. In order to recognize the increased benefits payable until age 62 (the “Temporary Pension”), the Participant’s Life Pension is reduced. The Temporary Pension shall end on the earlier of the Participant’s death or his or her attainment of age 62. If a contingent beneficiary option is elected and the Participant dies, then 100%, 75%, 66 2/3% or 50% (as previously elected by the Participant) of the Participant’s Life Pension as determined prior to the adjustment for the Temporary Pension shall be payable for the lifetime of his or her designated beneficiary.
B.3.    The guaranteed payment option offered as an optional form of benefit under Section 6.4(b) of the Plan, provides a reduced benefit for the longer of the Participant’s lifetime or a specified number of months (60, 120, 180, or 240) with payments made to the Participant and any remaining guaranteed payments on the Participant’s death to a designated beneficiary or beneficiaries (hereinafter referred to as the “designated beneficiary”). For purposes of the guaranteed payment option, the following rules shall apply to beneficiary designations:
(a)    A Participant may change his or her designated beneficiary at any time and may designate a secondary beneficiary or beneficiaries to receive any remaining guaranteed 

1

payments on the Participant’s death in the event his or her designated beneficiary predeceases the Participant or dies during the guaranteed payment period.
(b)    If the Participant fails to designate a secondary beneficiary and the Participant’s designated beneficiary predeceases the Participant, any guaranteed payments on the Participant’s death shall be paid in a lump sum to either the Participant’s personal representative or heirs at law as determined under paragraph (d) below.
(c)    If the Participant fails to designate a secondary beneficiary and the Participant’s designated beneficiary dies while receiving payments during the guaranteed payment period, the designated beneficiary’s interest in the remaining guaranteed payments shall be paid in a lump sum to either the designated beneficiary’s personal representative or heirs at law as determined under paragraph (d) below.
(d)    In the event the deceased Participant or deceased designated beneficiary under paragraphs (b) and (c) above, respectively, is not a resident of California at the date of his or her death, the Committee, in its discretion, may require the establishment of ancillary administration in California. If the Committee cannot locate a qualified personal representative of the deceased Participant or deceased designated beneficiary, or if administration of the deceased Participant’s or deceased designated beneficiary’s estate is not otherwise required, the Committee, in its discretion, may pay the remaining guaranteed payments (or interest therein) to the deceased Participant’s or deceased designated beneficiary’s heirs at law (determined in accordance with the laws of the State of California as they existed at the date of the Participant’s or designated beneficiary’s death).
B.4.    Notwithstanding anything in the Plan to the contrary, the reductions applied to the Accrued Benefits of Participants whose last Severance Date was prior to July 27, 1989 to reflect the value of coverage for pre-retirement death benefits shall no longer apply to benefits with Annuity Starting Dates on or after July 1, 2002.

2

APPENDIX C
Benefit Years and Vesting Years include service with the following Affiliated Companies (or their predecessors) effective on the dates shown:
	
			
	 
	Vesting
	Benefit

	 
	Service
	Service

	 
	Effective
	Effective

	 
	Date
	Date

	 
	 
	 

	Allergan America
	At hire
	04/11/80

	Allergan Corporate
	At hire
	At hire*

	Allergan Humphrey
	02/07/80
	01/01/87

	Allergan International
	At hire
	At hire*

	Allergan Medical Optics
	At hire
	04/30/86

	Allergan Medical Optics-Ioptex
	At hire
	09/08/94

	Allergan Medical Optics-Lenoir
	At hire
	03/01/92

	(Departments 120-130)
	 
	 

	Allergan Medical Optics-Puerto Rico
	At hire
	04/30/86

	Allergan Optical Inc.
	At hire
	11/13/87

	(formerly International Hydron Corporation)
	 
	 

	Allergan Optical Puerto Rico, Inc.
	At hire
	11/13/87

	Allergan Optical
	At hire
	At hire*

	Allergan Pharmaceuticals
	At hire
	At hire*

	Allergan Phoenix
	At hire
	12/01/95

	Allergan Puerto Rico, Inc.
	At hire
	04/11/80

	(formerly Allergan Caribbean)
	 
	 

	Allergan Surgical
	At hire
	At hire*

	(formerly Innovative Surgical Products)
	 
	 

	Herbert Labs
	At hire
	At hire*

	Herald Pharmacal
	At hire
	08/03/95

	Oculinum, Inc.
	At hire
	06/28/91

	Optical Micro Systems, Inc.
	At hire
	01/27/95

*    If employment terminated between April 11, 1980 and January 1, 1986, Benefit Years shall be credited from April 11, 1980 or date of hire, whichever is later.

GP:3326525 v2     

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}]]