Document:

<PAGE>

                                                                    EXHIBIT 10.3

                   THE EXECUTIVE SALARY CONTINUATION PLAN II

                                      FOR

                              ALCON UNIVERSAL LTD.

                                      AND

                              AFFILIATED COMPANIES

                           EFFECTIVE JANUARY 1, 2001

                           EFFECTIVE JANUARY 1, 2001
<PAGE>

                               TABLE OF CONTENTS

<Table>
<S>                                                           <C>
ARTICLE I: Plan Description.................................     I-1
ARTICLE II: Definitions.....................................    II-1
ARTICLE III: ESCP II Benefits...............................   III-1
ARTICLE IV: Vesting.........................................    IV-1
ARTICLE V: Ownership Change Benefits........................     V-1
ARTICLE VI: Limitations and Forfeitures.....................    VI-1
ARTICLE VII: Authority to Administer........................   VII-1
ARTICLE VIII: Miscellaneous.................................  VIII-1
</Table>

                           EFFECTIVE JANUARY 1, 2001                      TOC- 1
<PAGE>

                                   ARTICLE I

                                PLAN DESCRIPTION

     The Executive Salary Continuation Plan II ("ESCP II") is an unfunded
retirement plan with certain death and disability benefits. Participation is
limited to key employees ("ESCP II Participants") of Alcon Universal Ltd. and
its operationally related affiliates who adopt the ESCP II and agree to pay the
amounts necessary to fulfill its obligation for administrative expenses and
benefits under ESCP II.

                                END OF ARTICLE I

                           EFFECTIVE JANUARY 1, 2001                        I- 1
<PAGE>

                                   ARTICLE II

                                  DEFINITIONS

     For purposes of the ESCP II, the following definitions shall apply unless
the context requires otherwise:

     2.01 "Alcon Affiliated Company" means any legal entity directly or
indirectly owned or controlled by Nestle S.A.

     2.02 "Applicable Penalty Percentage" means the percentage by which an ESCP
II Participant's Normal Retirement Benefit will be reduced based upon the ESCP
II Participant's age on the date of separation from service as determined
pursuant to subparagraph 3.01(b)(ii).

     2.03 "Averaged Annual Base Salary" means one-third ( 1/3) of the ESCP II
Participant's aggregate annual base salary in effect the year of such ESCP II
Participant's separation from service and for the two (2) years preceding such
ESCP II Participant's separation from service.

     2.04 "AUL Compensation Committee" means the officers of Alcon Universal
Ltd. who have been delegated authority by the Board of Directors of Alcon
Universal Ltd. to administer this ESCP II.

     2.05 "Disability" shall mean a condition arising out of any injury or
disease which the disability insurance carrier and/or the employer determines is
permanent and prevents an ESCP II Participant from engaging in any occupation
with an Alcon Affiliated Company commensurate with the ESCP II Participant's
education, training, and experience, excluding:

          (a) any condition incurred as a result of or incidental to a criminal
     act perpetrated by the ESCP II Participant; and

          (b) any condition resulting from excessive use of drugs or narcotics
     or from willful, self-inflicted injury;

provided, however, that a condition shall constitute a Disability only if the
ESCP II Participant incurs such condition prior to the termination of his/her
employment with all Alcon Affiliated Companies.

     2.06 "Early Retirement Age" means age fifty-five (55).

     2.07 "Eligible Employee" means an individual employed by an Alcon
Affiliated Company who is determined by the AUL Compensation Committee to be a
key employee based upon grade level, job duties, and/or job performance and who
is not a participant in the Alcon Pharmaceuticals Ltd. International Umbrella
Plan or any other retirement plan sponsored by an Alcon Affiliated Company
determined by AUL Compensation Committee to be similar to or the equivalent of
the ESCP II.

     2.08 "ESCP II Benefit(s)" means the Normal Retirement Benefit or Reduced
Normal Retirement due an ESCP II Participant, Surviving Spouse, as a result of
termination of employment of an ESCP II Participant with a Vested Percentage, an
ESCP II Participant's Disability while employed by an Alcon Affiliated Company
or an ESCP II Participant's death.

     2.09 "ESCP II Participant" means an Eligible Employee who has been
designated as an ESCP II Participant in ESCP II by the AUL Compensation
Committee in its sole and absolute discretion.

     2.10 "Normal Retirement Age" means age sixty-two (62).

     2.11 "Normal Retirement Benefit" means an amount equal to the Vested
Percentage times the ESCP II Participant's Averaged Annual Base Salary.

     2.12 "Reduced Normal Retirement Benefit" means the Normal Retirement
Benefit reduced by the Applicable Penalty Percentage as determined pursuant to
subparagraph 3.01(b) with the resulting amount multiplied times the Vested
Percentage.

     2.13 "Surviving Spouse" shall mean:

          (a) in the case of an ESCP II Participant who dies while employed by
     an Alcon Affiliated Company and prior to commencement of an ESCP II
     Benefit, an individual who was the spouse of such ESCP II Participant at
     the time of his/her death;

          (b) in the case of an ESCP II Participant who is no longer employed by
     an Alcon Affiliated Company but has a vested ESCP II Benefit that has not
     yet commenced, an individual who was the

                           EFFECTIVE JANUARY 1, 2001                       II- 1
<PAGE>

     spouse of such ESCP II Participant both at the time of such ESCP II
     Participant's termination of employment with the Alcon Affiliated Company
     and at the time of death; or

          (c) in the case of an ESCP II Participant whose ESCP II Benefit has
     commenced or who is receiving Disability benefits, an individual who was
     the spouse of the ESCP II Participant both at the time such ESCP II
     Participant's ESCP II Benefit or Disability benefit commenced, and at the
     time of the ESCP II Participant's death.

     2.14 "Vested Percentage" means the percentage of an ESCP II Participant's
Averaged Annual Base Salary that is vested pursuant to Article IV. The Vested
Percentage shall never exceed sixty percent (60%).

     2.15 "Year of Service" means the following:

          (a) the calendar year of entry into ESCP II,

          (b) each calendar year of participation in ESCP II subsequent to such
     calendar year of entry, including any periods of Disability,

          (c) the calendar year of termination, retirement, or death
     (collectively, the "events") if the first of the events occurs on or after
     July 1 of such calendar year; if the first of the events occurs on or
     before June 30 of such calendar year, then the year shall not constitute a
     "Year of Service," and

          (d) one (1) year for every five (5) Years of Service with any Alcon
     Affiliated Company and/or any entity (incorporated or unincorporated)
     acquired by an Alcon Affiliated Company. Years of Service shall be counted
     from the first day of employment to the day before the first date of
     participation in ESCP II or any predecessor plan. Notwithstanding the
     foregoing, ESCP II Participants who have at least five (5) full years of
     employment with an Alcon Affiliated Company before the first date of
     participation in ESCP II or any predecessor plan, shall have years of
     service counted from the first day of such employment through the first
     year of participation in ESCP II.

                               END OF ARTICLE II

                           EFFECTIVE JANUARY 1, 2001                       II- 2
<PAGE>

                                  ARTICLE III

                                ESCP II BENEFITS

     3.01 Benefits.

          (a) Normal Retirement Benefit. ESCP II provides a Normal Retirement
     Benefit to each ESCP II Participant who separates from service or dies at
     or after attaining Normal Retirement Age provided such ESCP II Participant
     has a Vested Percentage. The Normal Retirement Benefit Amount is determined
     by multiplying the ESCP II Participant's Averaged Annual Base Salary times
     the ESCP II Participant's Vested Percentage.

          (b) Reduced Normal Retirement Benefit. ESCP II provides a Reduced
     Normal Retirement Benefit to each ESCP II Participant who separates from
     service or dies with a Vested Percentage prior to having attained Normal
     Retirement Age. The Reduced Normal Retirement Benefit is not payable to an
     ESCP II Participant prior to the date of attaining Early Retirement Age.
     However, a Surviving Spouse's ESCP II Benefit shall begin as soon as
     administratively practicable after the ESCP II Participant's death.

             (i) Calculation of Reduced Normal Retirement Benefit. The Reduced
        Normal Retirement Benefit is calculated by reducing the ESCP II
        Participant's Averaged Annual Base Salary by the Applicable Penalty
        Percentage set forth below in subparagraph 3.01(b)(ii), then multiplying
        such reduced Averaged Annual Base Salary by the ESCP II Participant's
        Vested Percentage.

             (ii) Applicable Penalty Percentage. The Applicable Penalty
        Percentage is as follows:

<Table>
<Caption>
                                       AGE AT
                                     SEPARATION                           APPLICABLE
                                    FROM SERVICE                           PENALTY
            ------------------------------------------------------------  ----------
            <S>                                                           <C>
                61......................................................      4%
                60......................................................      8%
                59......................................................     12%
                58......................................................     16%
                57......................................................     20%
                56......................................................     25%
             55 or less.................................................     30%
</Table>

          (c) Death Benefits.  The Surviving Spouse of an ESCP II Participant
     with a vested ESCP II Benefit shall receive a semi-monthly benefit equal to
     fifty percent (50%) of the ESCP II Participant's semi-monthly ESCP II
     Benefit payment until the Surviving Spouse's death. Vesting for a deceased
     ESCP II Participant shall be determined pursuant to paragraph 4.02. The
     amount of the deceased ESCP II Participant's benefit shall be determined
     pursuant to Article III.

          (d) Disability Benefits

             (i) ESCP II Participant Approved for Long Term Disability.  If an
        ESCP II Participant suffers a Disability and is approved for Long-Term
        Disability ("LTD") coverage by the LTD insurance carrier of any Alcon
        Affiliated Company (or LTD is approved by another LTD carrier which is
        concurred in by the AUL Compensation Committee), ESCP II Benefits shall
        begin when (aa) the ESCP II Participant attains Normal Retirement Age,
        or (bb) LTD benefits cease. An ESCP II Participant still receiving LTD
        benefits at Normal Retirement Age must choose between continuing LTD
        benefits or beginning ESCP II Benefits. ESCP II Benefits paid before
        Normal Retirement Age shall be subject to the Applicable Penalty
        Percentage described in subparagraph 3.01(b)(ii).

             (ii) ESCP II Participant No Longer Disabled.  Notwithstanding the
        foregoing provisions of this paragraph, if the ESCP II Participant,
        subsequent to approval for LTD coverage, is medically certified as no
        longer disabled and chooses not to resume employment with an Alcon
        Affiliated Company, the provisions of paragraphs 2.15 and 4.02 in their
        entirety shall cease to apply to the ESCP II Participant.

                           EFFECTIVE JANUARY 1, 2001
                         PAGE REVISED SEPTEMBER 1, 2001                   III- 1
<PAGE>

     3.02 Cost of Living Adjustment.  All ESCP II Benefit payments shall be
increased by a Cost of Living Adjustment as follows:

          (a) Each January 1, the ESCP II Benefit shall be increased by an
     annual percentage adjustment equal to the greater of (i) one and one-half
     percent (1.5%) or (ii) any cost-of-living adjustment taking effect on or
     immediately prior to such January 1 under Section 215(i) of the United
     States Social Security Act (relating to a cost-of-living increase) for
     benefits under Title II of such Act (relating to Federal old-age,
     survivors, and disability insurance benefits). The percentage adjustment
     shall be compounded annually. Any applicable percentage adjustment shall
     commence not earlier than the January payment immediately following the
     commencement of ESCP II Benefits.

          (b) Notwithstanding the provisions of the foregoing subparagraph
     3.02(a), in the event that other than an annual percentage becomes
     applicable for purposes of Section 215(i) of the Social Security Act or the
     cost-of-living adjustment becomes effective on a date other than January 1,
     the annual percentage adjustment for ESCP II Benefit payment purposes shall
     be redetermined and applied as of the date the adjustment becomes effective
     for benefits under Title II of the Social Security Act. If more than one
     rate is applicable for a calendar year, the rates should be combined or
     averaged, as the case may be, so that compounding occurs not more than
     annually. However, the annual percentage adjustment may never be less than
     one and one-half percent (1.5%).

     3.03 Payment of Benefit.  ESCP II Benefits shall be paid to the ESCP II
Participant each year in equal semi-monthly installments until and including the
month in which such ESCP II Participant shall die. Such installments shall
commence not later than the first day of the second month after such ESCP II
Participant's employment by any and all Alcon Affiliated Companies has
terminated. Notwithstanding the foregoing, if the ESCP II Participant terminates
employment prior to attaining Early Retirement Age, ESCP II Benefit payments
shall commence the first day of the second month following ESCP II Participant's
attainment of Early Retirement Age. Payments to the Surviving Spouse shall begin
as soon as administratively practicable. The first payment to the Surviving
Spouse shall include all previous amounts due beginning as of the first day of
the month immediately following ESCP II Participant's death.

                               END OF ARTICLE III

                           EFFECTIVE JANUARY 1, 2001
                         PAGE REVISED SEPTEMBER 1, 2001                   III- 2
<PAGE>

                                   ARTICLE IV

                                    VESTING

     4.01 Vested Percentage.  An ESCP II Participant is entitled to a vested
(nonforfeitable) percentage of Averaged Annual Base Salary pursuant to the
following schedule:

<Table>
<Caption>
                          YEARS OF                             VESTED
                          SERVICE                            PERCENTAGE
------------------------------------------------------------ ----------
<S>                                                          <C>
Less than 10................................................      0%
     10.....................................................     30%
     11.....................................................     33%
     12.....................................................     36%
     13.....................................................     39%
     14.....................................................     42%
     15.....................................................     45%
     16.....................................................     48%
     17.....................................................     51%
     18.....................................................     54%
     19.....................................................     57%
     20.....................................................     60%
</Table>

     The Vested Percentage shall never exceed sixty percent (60%).

     4.02 Years of Service and Minimum Vested Percentage Due to ESCP II
Participant's Death or Disability.  For purposes of determining the Vested
Percentage of ESCP II Participants who die or become disabled while employed by
an Alcon Affiliated Company, such ESCP II Participant shall retain his/her
accrued Years of Service in ESCP II, but shall be deemed to have not less than
ten (10) Years of Service.

                               END OF ARTICLE IV

                           EFFECTIVE JANUARY 1, 2001                       IV- 1
<PAGE>

                                   ARTICLE V

                           OWNERSHIP CHANGE BENEFITS

     5.01 Vesting on Change of Ownership.

          (a) Vested Percentage.  An ESCP II Participant who is employed by an
     Alcon Affiliated Company on the date that Nestle S.A. ceases to hold direct
     or indirect Majority Ownership of the Alcon Affiliated Company by which
     such ESCP II Participant is employed shall retain his/her accrued Years of
     Service in ESCP II for the purposes of this paragraph 5.01, but shall be
     deemed to have a minimum Vested Percentage of thirty percent (30%).

          (b) "Majority Ownership" as used in this paragraph 5.01 means more
     than fifty percent (50%) direct or indirect ownership (i) of the
     outstanding shares of each class of stock of any Alcon Affiliated Company
     and/or (ii) of the assets of any Alcon Affiliated Company by Nestle S.A.

          (c) Benefit.  Should Nestle S.A. cease to hold Majority Ownership of
     the an Alcon Affiliated Company by which an ESCP II Participant is
     employed, such ESCP II Participant shall be paid an annual benefit equal to
     the Vested Percentage as determined under subparagraphs 5.01(a) or (b) of
     such ESCP II Participant's Averaged Annual Base Salary, for the ESCP II
     Participant's lifetime, and a fifty percent (50%) ESCP II Benefit shall be
     paid to the affected ESCP II Participant's Surviving Spouse upon the ESCP
     II Participant's death. Further, the benefit (i) shall be increased in the
     manner described in paragraph 3.02 above, (ii) shall not be subject to the
     Applicable Percentage Penalty reduction described in subparagraph 3.01(b)
     above, and (iii) shall commence to be paid not later than the first day of
     the second month following the cessation of Majority Ownership. The
     provisions of this Article V supercede all other provisions of the ESCP II
     regarding benefit calculation and payment; however, this Article V does not
     affect ESCP II Benefits of ESCP II Participants or Surviving Spouses being
     paid or pending ESCP II Benefits of ESCP II Participants who separated from
     service prior to Early Retirement Age at the time Nestle S.A. ceases to
     hold Majority Ownership of the Alcon Affiliated Company.

                                END OF ARTICLE V

                           EFFECTIVE JANUARY 1, 2001                        V- 1
<PAGE>

                                   ARTICLE VI

                          LIMITATIONS AND FORFEITURES

     6.01 Limitations and Forfeiture of Right to Benefits.

          (a) If a non-vested ESCP II Participant's employment is terminated
     voluntarily or involuntarily, such ESCP II Participant forfeits all rights
     to the benefits provided by ESCP II.

          (b) If an ESCP II Participant has chosen to participate in the Alcon
     Pharmaceuticals Ltd. International Umbrella Plan or any other retirement
     plan sponsored by an Alcon Affiliated Company determined by the AUL
     Compensation Committee to be similar to or the equivalent of ESCP II, such
     ESCP II Participant forfeits all rights to the benefits provided by ESCP
     II.

          (c) If a vested ESCP II Participant's employment is terminated
     voluntarily or involuntarily by retirement or otherwise, such ESCP II
     Participant must agree not to compete in the same or substantially similar
     businesses as those in which Alcon and its Alcon Affiliated Companies are
     engaged at the time of termination of employment for a period of five (5)
     years or the ESCP II Participant will forfeit all ESCP II Benefits. The
     determination of whether a terminated ESCP II Participant's
     post-termination activities are competitive within the meaning of this
     Article VI shall be made by the AUL Compensation Committee.

          (d) If an ESCP II Participant who has a Vested Percentage is
     terminated voluntarily or involuntarily from employment with any Alcon
     Affiliated Company for reason of activity or conduct which results in
     felony conviction under the law of any jurisdiction, such ESCP II
     Participant shall forfeit all right to benefits under the ESCP II at the
     discretion of the AUL Compensation Committee.

                               END OF ARTICLE VI

                           EFFECTIVE JANUARY 1, 2001                       VI- 1
<PAGE>

                                  ARTICLE VII
                            AUTHORITY TO ADMINISTER

     7.01  The Board of Directors of Alcon Universal Ltd. shall have the right,
at any time, to amend or terminate the ESCP II, except that it may not terminate
a vested benefit hereunder except as provided in Article VI.

     7.02  Neither the AUL Compensation Committee nor any members of the Board
of Directors of any Alcon Affiliated Company shall be liable to any person for
any action taken or omitted in connection with the administration or
interpretation of the ESCP II.

     7.03  Subject to the limitations herein set forth, the AUL Compensation
Committee shall establish from time to time the rules or regulations for the
administration of the ESCP II and the transaction of its business, provided that
no such rule or regulation shall be contrary to the specific provisions of the
ESCP II. The AUL Compensation Committee has full discretion to interpret the
ESCP II to determine whether a claimant is eligible for benefits; to decide the
amount, form, and timing of benefits; and to resolve any other matter under the
ESCP II which is raised by a claimant or identified by the AUL Compensation
Committee. All questions arising from or in connection with the provisions of
the ESCP II and its administration shall be determined by the AUL Compensation
Committee, and any determination so made shall be conclusive and binding upon
all persons affected thereby.

          (a) Claims under the ESCP II by an ESCP II Participant or anyone
     claiming through an ESCP II Participant shall be presented to the AUL
     Compensation Committee, which shall either arrange for payment of the claim
     or otherwise dispose of it. Adequate notice shall be provided in writing to
     any person whose claim has been denied, setting forth the specific reasons
     for such denial.

          (b) Any person whose claim for benefits has been denied may, within
     sixty (60) days after receipt of notice of denial, submit a written request
     for review of the decision denying the claim. In such case, the AUL
     Compensation Committee shall make a full and fair review of such decision
     within sixty (60) days after receipt of a request for review and notify the
     claimant in writing of the review decision, specifying the reasons for such
     decision.

     7.04  Communications to the AUL Compensation Committee shall be addressed
to the Chairman of the AUL Compensation Committee, Bosch 69, P.O. Box 62,
CH-6331, Hunenberg, Switzerland. The Secretary of the AUL Compensation Committee
is hereby designated as agent for service of legal process with respect to any
claims arising under the ESCP II.

                               END OF ARTICLE VII

                           EFFECTIVE JANUARY 1, 2001                      VII- 1
<PAGE>

                                  ARTICLE VIII
                                 MISCELLANEOUS

     8.01  The ESCP II Participant's ESCP II Benefit granted hereunder or any
interest therein are not transferable or assignable and shall not be subject to
alienation, encumbrance, garnishment, attachment, execution, or levy of any
kind, voluntary or involuntary, except when, where, and if compelled by any
applicable law.

     8.02  As used in this ESCP II, reference to any gender shall include the
masculine and feminine genders, and the number of all words shall include the
singular or plural, as appropriate.

     8.03  The amount payable to an ESCP II Participant hereunder at any time is
an unsecured and unfunded obligation of Alcon and/or any Alcon Affiliated
Company.

     8.04  The obligations of Alcon and/or any Alcon Affiliated Company under
the ESCP II shall be binding upon its successors and assigns.

     8.05  In the event that any provision of the ESCP II is determined by any
judicial, quasi-judicial, or administrative body to be invalid or unenforceable
for any reason, all other provisions of the ESCP II shall remain in full force
and effect as if such provision had never been a part of the ESCP II.

     8.06  Nothing herein shall be construed as an offer or commitment by Alcon
and/or any Alcon Affiliated Company to continue any ESCP II Participant's
employment for any period of time.

     8.07  Amounts paid to an ESCP II Participant or his/her designated
Surviving Spouse under the ESCP II shall be net of any taxes or other amounts
required to be withheld by the payor under any applicable law, rule, or
regulation.

     8.08  This writing constitutes the final and complete embodiment of the
terms of the ESCP II, and all prior or earlier dated documents and
communications, oral or written, concerning ESCP II are hereby renounced,
revoked, and superseded.

                              END OF ARTICLE VIII

                           EFFECTIVE JANUARY 1, 2001                     VIII- 1
<PAGE>

SIGNATURE AND ATTESTATION

     Effective as of the 1st day of January, 2001.

                                          ALCON UNIVERSAL LTD.

                                          By: /s/ MARTIN SCHNEIDER
                                            ------------------------------------

                                          Printed Name: Martin Schneider
                                                  ------------------------------
                                          Title: Area Controller
                                             -----------------------------------
                                          Date: March 27, 2001
                                             -----------------------------------

                                          By: /s/ STEFAN BASLER
                                            ------------------------------------
                                          Printed Name: Stefan Basler
                                                  ------------------------------
                                          Title: Finance Manager
                                             -----------------------------------
                                          Date: March 27, 2001
                                             -----------------------------------
ATTEST:

/s/ O. DUPONT
--------------------------------------
              Secretary

                           EFFECTIVE JANUARY 1, 2001                 APPENDIX- i<PAGE>

                                                                    EXHIBIT 10.4

                     THE EXECUTIVE SALARY CONTINUATION PLAN

                                      FOR

                             ALCON UNIVERSAL, LTD.

                                      AND

                              AFFILIATED COMPANIES

                          EFFECTIVE DECEMBER 31, 1998

                          EFFECTIVE DECEMBER 31, 1998
<PAGE>

                               TABLE OF CONTENTS

<Table>
<S>                                                           <C>
ARTICLE I: Plan Description.................................     I-1
ARTICLE II: Definitions.....................................    II-1
ARTICLE III: ESCP Benefits..................................   III-1
ARTICLE IV: Vesting.........................................    IV-1
ARTICLE V: Ownership Change Benefits........................     V-1
ARTICLE VI: Limitations and Forfeitures.....................    VI-1
ARTICLE VII: Authority to Administer........................   VII-1
ARTICLE VIII: Miscellaneous.................................  VIII-1
</Table>

                          EFFECTIVE DECEMBER 31, 1998                     TOC- 1
<PAGE>

                                   ARTICLE I

                                PLAN DESCRIPTION

     The Executive Salary Continuation Plan ("ESCP") is an unfunded retirement
plan with certain death and disability benefits. Participation is limited to key
employees ("ESCP Participants") of Alcon Universal, Ltd. and its operationally
related affiliates who adopt the ESCP and agree to pay the amounts necessary to
fulfill its obligation for administrative expenses and benefits under ESCP.

                                END OF ARTICLE I

                          EFFECTIVE DECEMBER 31, 1998                       I- 1
<PAGE>

                                   ARTICLE II

                                  DEFINITIONS

     For purposes of the ESCP, the following definitions shall apply unless the
context requires otherwise:

     2.01 "Alcon Affiliated Company" means any legal entity directly or
indirectly owned or controlled by Nestle S.A.

     2.02 "Applicable Penalty Percentage" means the percentage by which an ESCP
Participant's Normal Retirement Benefit will be reduced based upon the ESCP
Participant's age on the date of separation from service as determined pursuant
to subparagraph 3.01(b)(ii).

     2.03 "Averaged Annual Base Salary" means one-third ( 1/3) of the ESCP
Participant's aggregate annual base salary in effect the year of such ESCP
Participant's separation from service and for the two (2) years preceding such
ESCP Participant's separation from service.

     2.04 "AUL Compensation Committee" means the officers of Alcon Universal
Ltd. who have been delegated authority by the Board of Directors of Alcon
Universal Ltd. to administer this ESCP.

     2.05 "Beneficiary" means the person to whom the Normal Retirement Benefit
or Reduced Normal Retirement Benefit is payable upon the ESCP Participant's or
Surviving Spouse's death when the guaranteed minimum payment period pursuant to
subparagraph 3.01(c) has not expired. An ESCP Participant or a Surviving Spouse
may designate a Beneficiary (or Beneficiaries) by properly completing a form
provided to the ESCP Participant or Surviving Spouse by the Director,
Compensation and Benefits of Alcon Laboratories, Inc. and by delivering said
completed form to said Director. Married ESCP Participants cannot designate a
Beneficiary other than their spouse.

     2.06 "Disability" shall mean a condition arising out of any injury or
disease which the disability insurance carrier and/or the employer determines is
permanent and prevents an ESCP Participant from engaging in any occupation with
an Alcon Affiliated Company commensurate with the ESCP Participant's education,
training, and experience, excluding:

          (a) any condition incurred as a result of or incidental to a criminal
     act perpetrated by the ESCP Participant; and

          (b) any condition resulting from excessive use of drugs or narcotics
     or from willful, self-inflicted injury;

provided, however, that a condition shall constitute a Disability only if the
ESCP Participant incurs such condition prior to the termination of his/her
employment with all Alcon Affiliated Companies.

     2.07 "Early Retirement Age" means age fifty-five (55).

     2.08 "Eligible Employee" means an individual employed by an Alcon
Affiliated Company who is determined by the AUL Compensation Committee to be a
key employee based upon grade level, job duties, and/or job performance and who
is not a participant in the Alcon Pharmaceuticals Ltd. International Umbrella
Plan or any other retirement plan sponsored by an Alcon Affiliated Company
determined by the AUL Compensation Committee to be similar to or the equivalent
of the ESCP.

     2.09 "ESCP Benefit(s)" means the Normal Retirement Benefit or Reduced
Normal Retirement due an ESCP Participant, Surviving Spouse, Beneficiary or
estate as a result of termination of employment of an ESCP Participant with a
Vested Percentage, an ESCP Participant's Disability while employed by an Alcon
Affiliated Company or an ESCP Participant's death.

     2.10 "ESCP Participant" means an Eligible Employee who has been designated
as an ESCP Participant in ESCP by the AUL Compensation Committee in its sole and
absolute discretion.

     2.11 "Normal Retirement Age" means age sixty-two (62).

                          EFFECTIVE DECEMBER 31, 1998                      II- 1
<PAGE>

     2.12 "Normal Retirement Benefit" means an amount equal to the Vested
Percentage times the ESCP Participant's Averaged Annual Base Salary.

     2.13 "Pre-1994 ESCP Participant" means an ESCP Participant who was
designated as a ESCP Participant in any previous version of ESCP maintained by
an Alcon Affiliated Company prior to January 1, 1994.

     2.14 "Post-1993 ESCP Participant" means an ESCP Participant who was
designated as a ESCP Participant in any previous version of ESCP maintained by
an Alcon Affiliated Company after December 31, 1993.

     2.15 "Reduced Normal Retirement Benefit" means the Normal Retirement
Benefit reduced by the Applicable Penalty Percentage as determined pursuant to
subparagraph 3.01(b).

     2.16 "Surviving Spouse" shall mean:

          (a) in the case of an ESCP Participant who dies while employed by an
     Alcon Affiliated Company and prior to commencement of an ESCP Benefit, an
     individual who was the spouse of such ESCP Participant at the time of
     his/her death;

          (b) in the case of an ESCP Participant who is no longer employed by an
     Alcon Affiliated Company but has a vested ESCP Benefit that has not yet
     commenced, an individual who was the spouse of such ESCP Participant both
     at the time of such ESCP Participant's termination of employment with the
     Alcon Affiliated Company and at the time of death; or

          (c) in the case of an ESCP Participant whose ESCP Benefit has
     commenced or who is receiving Disability benefits, an individual who was
     the spouse of the ESCP Participant both at the time such ESCP Participant's
     ESCP Benefit or Disability benefit commenced, and at the time of the ESCP
     Participant's death.

     2.17 "Vested Percentage" means the percentage of an ESCP Participant's
Averaged Annual Base Salary that is vested pursuant to Article IV. The Vested
Percentage shall never exceed sixty percent (60%).

     2.18 "Year of Service" means the following:

          (a) the calendar year of entry into ESCP,

          (b) each calendar year of participation in ESCP subsequent to such
     calendar year of entry, including any periods of Disability,

          (c) Years of Service recognized under prior ESCP Plans,

          (d) the calendar year of termination, retirement, or death
     (collectively, the "events") if the first of the events occurs on or after
     July 1 of such calendar year; if the first of the events occurs on or
     before June 30 of such calendar year, then the year shall not constitute a
     "Year of Service," and

          (e) one (1) year for every five (5) Years of Service with any Alcon
     Affiliated Company and/or any entity (incorporated or unincorporated)
     acquired by an Alcon Affiliated Company. Years of Service shall be counted
     from the first day of employment to the day before the first date of
     participation in ESCP or any predecessor plan. Notwithstanding the
     foregoing, ESCP Participants who have at least five (5) full years of
     employment with an Alcon Affiliated Company before the first date of
     participation in ESCP or any predecessor plan, shall have years of service
     counted from the first day of such employment through the first year of
     participation in ESCP.

                               END OF ARTICLE II

                          EFFECTIVE DECEMBER 31, 1998                      II- 2
<PAGE>

                                  ARTICLE III

                                 ESCP BENEFITS

     3.01 Benefits.

          (a) Normal Retirement Benefit.  ESCP provides a Normal Retirement
     Benefit to each ESCP Participant who separates from service at or after
     attaining Normal Retirement Age provided such ESCP Participant has a Vested
     Percentage. The Normal Retirement Benefit Amount is determined by
     multiplying the ESCP Participant's Averaged Annual Base Salary times the
     ESCP Participant's Vested Percentage.

          (b) Reduced Normal Retirement Benefit.  ESCP provides a Reduced Normal
     Retirement Benefit to each ESCP Participant who separates from service or
     dies with a Vested Percentage prior to having attained Normal Retirement
     Age. The Reduced Normal Retirement Benefit is not payable to an ESCP
     Participant prior to the date of attaining Early Retirement Age.

             (i) Calculation of Reduced Normal Retirement Benefit.  The Reduced
        Normal Retirement Benefit is calculated by reducing the ESCP
        Participant's Averaged Annual Base Salary by the Applicable Penalty
        Percentage set forth below in subparagraph 3.01(b)(ii), then multiplying
        such reduced Averaged Annual Base Salary by the ESCP Participant's
        Vested Percentage.

             (ii) Applicable Penalty Percentage.  The Applicable Penalty
        Percentage is as follows:

<Table>
<Caption>
  AGE AT     APPLICABLE      APPLICABLE
SEPARATION     PENALTY      PENALTY POST-
   FROM     PRE-1994 ESCP     1993 ESCP
 SERVICE    PARTICIPANTS    PARTICIPANTS
----------  -------------   -------------
<S>         <C>             <C>
    61            2%              4%
    60            5%              8%
    59            8%             12%
    58           12%             16%
    57           16%             20%
    56           20%             25%
  55 or
  less....       25%             30%
</Table>

          (c) Death Benefits.

             (i) Guaranteed Minimum Benefit Period for Pre-1994 ESCP
        Participants.  ESCP provides a minimum guaranteed ESCP Benefit payment
        period for Pre-1994 ESCP Participants equal to the greater of

                (aa) one hundred forty-four (144) months; or

                (bb) two hundred forty (240) months less the number of whole
           months by which the Pre-1994 ESCP Participant's age exceeds
           fifty-five (55) years at the date of retirement or death.

             (ii) Guaranteed Minimum Benefit Period for Post-1993 ESCP
        Participants.  ESCP provides a minimum guaranteed ESCP Benefit payment
        period for Post-1993 ESCP Participants of two hundred forty (240) months
        less the number of whole months by which the Post-1993 ESCP
        Participant's age exceeds fifty-five (55) years at the date of
        retirement or death.

             In the event an ESCP Participant dies prior to receiving ESCP
        Benefits for the entire guaranteed minimum benefit period, the ESCP
        Participant's Surviving Spouse shall receive a semi-monthly benefit
        equal to one hundred percent (100%) of the ESCP Participant's ESCP
        Benefit until such time as the total combined months of benefit payments
        to the ESCP Participant and the Surviving Spouse equal the ESCP
        Participant's guaranteed minimum benefit payment period. If the
        Surviving Spouse dies before expiration of the guaranteed minimum

                          EFFECTIVE DECEMBER 31, 1998                     III- 1
<PAGE>

        benefit period, one hundred percent (100%) of the ESCP Participant's
        semi-monthly ESCP Benefit amount shall be paid to the Surviving Spouse's
        Beneficiary or estate until such time as the total combined months of
        benefit payments made to the ESCP Participant, ESCP Participant's
        Surviving Spouse and Surviving Spouse's Beneficiary, or estate equal the
        guaranteed minimum benefit period. At the time of the ESCP Participant's
        death, if there is no Surviving Spouse, ESCP Benefits shall be paid to
        the ESCP Participant's Beneficiary or estate until such time as the
        total combined months benefit payments have been made to the ESCP
        Participant or ESCP Participant's Beneficiary or estate, as the case may
        be, equal the guaranteed minimum benefit period.

             (iii) Surviving Spouse's Benefit.  After the guaranteed minimum
        benefit period expires, the Surviving Spouse of an ESCP Participant with
        a vested ESCP Benefit shall receive a semi-monthly benefit equal to
        fifty percent (50%) of the ESCP Participant's semi-monthly ESCP Benefit
        payment until the Surviving Spouse's death. Payments under this
        subparagraph shall begin after all payments have been made pursuant to
        subparagraph 3.01(c)(i) or (ii).

          (d) Disability Benefits

             (i) ESCP Participant Approved for Long Term Disability.  If an ESCP
        Participant suffers a Disability and is approved for Long-Term
        Disability ("LTD") coverage by the LTD insurance carrier of any Alcon
        Affiliated Company (or LTD is approved by another LTD carrier which is
        concurred in by the AUL Compensation Committee), ESCP Benefits shall
        begin when (aa) the ESCP Participant attains Normal Retirement Age, or
        (bb) LTD benefits cease. An ESCP Participant still receiving LTD
        benefits at Normal Retirement Age must choose between continuing LTD
        benefits or beginning ESCP Benefits. ESCP Benefits paid before Normal
        Retirement Age shall be subject to the Applicable Penalty Percentage
        described in subparagraph 3.01(b)(ii).

             (ii) ESCP Participant No Longer Disabled.  Notwithstanding the
        foregoing provisions of this paragraph, if the ESCP Participant,
        subsequent to approval for LTD coverage, is medically certified as no
        longer disabled and chooses not to resume employment with an Alcon
        Affiliated Company, the provisions of paragraphs 2.18 and 4.02 in their
        entirety shall cease to apply to the ESCP Participant.

     3.02 Cost of Living Adjustment.  All ESCP Benefit payments shall be
increased by a Cost of Living Adjustment as follows:

          (a) Each January 1, the ESCP Benefit shall be increased by an annual
     percentage adjustment equal to the greater of (i) one and one-half percent
     (1.5%) or (ii) any cost-of-living adjustment taking effect on or
     immediately prior to such January 1 under Section 215(i) of the United
     States Social Security Act (relating to a cost-of-living increase) for
     benefits under Title II of such Act (relating to Federal old-age,
     survivors, and disability insurance benefits). The percentage adjustment
     shall be compounded annually. Any applicable percentage adjustment shall
     commence not earlier than the January payment immediately following the
     commencement of ESCP Benefits.

          (b) Notwithstanding the provisions of the foregoing subparagraph
     3.02(a), in the event that other than an annual percentage becomes
     applicable for purposes of Section 215(i) of the Social Security Act or the
     cost-of-living adjustment becomes effective on a date other than January 1,
     the annual percentage adjustment for ESCP Benefit payment purposes shall be
     redetermined and applied as of the date the adjustment becomes effective
     for benefits under Title II of the Social Security Act. If more than one
     rate is applicable for a calendar year, the rates should be combined or
     averaged, as the case may be, so that compounding occurs not more than
     annually. However, the annual percentage adjustment may never be less than
     one and one-half percent (1.5%).

     3.03 Payment of Benefit.  ESCP Benefits shall be paid to the ESCP
Participant each year in equal semi-monthly installments until and including the
month in which such ESCP Participant shall die. Such installments shall commence
not later than the first day of the second month after such ESCP

                          EFFECTIVE DECEMBER 31, 1998                     III- 2
<PAGE>

Participant's employment by any and all Alcon Affiliated Companies has
terminated. Notwithstanding the foregoing, if the ESCP Participant terminates
employment prior to attaining Early Retirement Age, ESCP Benefit payments shall
commence the first day of the second month following ESCP Participant's
attainment of Early Retirement Age. Payments to the Surviving Spouse,
Beneficiary(ies), or estate shall begin as soon as administratively practicable.
The first payment to the Surviving Spouse, Beneficiary(ies), or estate shall
include all previous amounts due beginning as of the first day of the month
immediately following ESCP Participant's death.

                               END OF ARTICLE III

                          EFFECTIVE DECEMBER 31, 1998                     III- 3
<PAGE>

                                   ARTICLE IV

                                    VESTING

     4.01 Vested Percentage.  An ESCP Participant is entitled to a vested
(nonforfeitable) percentage of Averaged Annual Base Salary pursuant to the
following schedule:

<Table>
<Caption>
                                                                  VESTED
YEARS OF SERVICE                                                PERCENTAGE
----------------                                                ----------
<S>                                                             <C>
Less than 10................................................         0%
     10.....................................................        30%
     11.....................................................        33%
     12.....................................................        36%
     13.....................................................        39%
     14.....................................................        42%
     15.....................................................        45%
     16.....................................................        48%
     17.....................................................        51%
     18.....................................................        54%
     19.....................................................        57%
     20.....................................................        60%
</Table>

The Vested Percentage shall never exceed sixty percent (60%).

     4.02 Years of Service and Minimum Vested Percentage Due to ESCP
          Participant's Death or Disability.  For purposes of determining the
          Vested Percentage of ESCP Participants who die or become disabled
          while employed by an Alcon Affiliated Company, such ESCP Participant
          shall retain his/her accrued Years of Service in ESCP, but shall be
          deemed to have not less than ten (10) Years of Service.

                               END OF ARTICLE IV

                          EFFECTIVE DECEMBER 31, 1998                      IV- 1
<PAGE>

                                   ARTICLE V

                           OWNERSHIP CHANGE BENEFITS

     5.01 Vesting on Change of Ownership.

          (a) Vested Percentage.  An ESCP Participant who is employed by an
     Alcon Affiliated Company on the date that Nestle S.A. ceases to hold direct
     or indirect Majority Ownership of the Alcon Affiliated Company by which
     such ESCP Participant is employed shall retain his/her accrued Years of
     Service in ESCP for the purposes of this paragraph 5.01, but shall be
     deemed to have a minimum Vested Percentage of thirty percent (30%).

          (b) "Majority Ownership" as used in this paragraph 5.01 means more
     than fifty percent (50%) direct or indirect ownership (i) of the
     outstanding shares of each class of stock of any Alcon Affiliated Company
     and/or (ii) of the assets of any Alcon Affiliated Company by Nestle S.A.
     (Nestle).

          (c) Benefit.  Should Nestle S.A. cease to hold Majority Ownership of
     the an Alcon Affiliated Company by which an ESCP Participant is employed,
     such ESCP Participant shall be paid an annual benefit equal to the Vested
     Percentage as determined under subparagraphs 5.01(a) or (b) of such ESCP
     Participant's Averaged Annual Base Salary, for the ESCP Participant's
     lifetime, and a fifty percent (50%) ESCP Benefit shall be paid to the
     affected ESCP Participant's Surviving Spouse upon the ESCP Participant's
     death. Further, the benefit (i) shall be increased in the manner described
     in paragraph 3.02 above, (ii) shall not be subject to the Applicable
     Percentage Penalty reduction described in subparagraph 3.01(b) above, and
     (iii) shall commence to be paid not later than the first day of the second
     month following the cessation of Majority Ownership. The provisions of this
     Article V supercede all other provisions of the ESCP regarding benefit
     calculation and payment; however, this Article V does not affect ESCP
     Benefits of ESCP Participants, Surviving Spouses, Beneficiaries, or estates
     being paid or pending ESCP Benefits of ESCP Participants who separated from
     service prior to Early Retirement Age at the time Nestle S.A. ceases to
     hold Majority Ownership of the Alcon Affiliated Company.

                                END OF ARTICLE V

                          EFFECTIVE DECEMBER 31, 1998                       V- 1
<PAGE>

                                   ARTICLE VI

                          LIMITATIONS AND FORFEITURES

     6.01 Limitations and Forfeiture of Right to Benefits.

          (a) If a non-vested ESCP Participant's employment is terminated
     voluntarily or involuntarily, such ESCP Participant forfeits all rights to
     the benefits provided by ESCP.

          (b) If an ESCP Participant has chosen to participate in the Alcon
     Pharmaceuticals Ltd. International Umbrella Plan or any other retirement
     plan sponsored by an Alcon Affiliated Company determined by the AUL
     Compensation Committee to be similar to or the equivalent of ESCP, such
     ESCP Participant forfeits all rights to the benefits provided by ESCP.

          (c) If a vested ESCP Participant's employment is terminated
     voluntarily or involuntarily by retirement or otherwise, such ESCP
     Participant must agree not to compete in the same or substantially similar
     businesses as those in which Alcon and its Alcon Affiliated Companies are
     engaged at the time of termination of employment for a period of five (5)
     years or the ESCP Participant will forfeit all ESCP Benefits. The
     determination of whether a terminated ESCP Participant's post-termination
     activities are competitive within the meaning of this Article VI shall be
     made by the AUL Compensation Committee.

          (d) If an ESCP Participant who has a Vested Percentage is terminated
     voluntarily or involuntarily from employment with any Alcon Affiliated
     Company for reason of activity or conduct which results in felony
     conviction under the law of any jurisdiction, such ESCP Participant shall
     forfeit all right to benefits under the ESCP at the discretion of the AUL
     Compensation Committee.

                               END OF ARTICLE VI

                          EFFECTIVE DECEMBER 31, 1998                      VI- 1
<PAGE>

                                  ARTICLE VII

                            AUTHORITY TO ADMINISTER

     7.01 The Board of Directors of Alcon Universal, Ltd. shall have the right,
at any time, to amend or terminate the ESCP, except that it may not terminate a
vested benefit hereunder except as provided in Article VI.

     7.02 Neither the AUL Compensation Committee nor any members of the Board of
Directors of any Alcon Affiliated Company shall be liable to any person for any
action taken or omitted in connection with the administration or interpretation
of the ESCP.

     7.03 Subject to the limitations herein set forth, the AUL Compensation
Committee shall establish from time to time the rules or regulations for the
administration of the ESCP and the transaction of its business, provided that no
such rule or regulation shall be contrary to the specific provisions of the
ESCP. The AUL Compensation Committee has full discretion to interpret the ESCP
to determine whether a claimant is eligible for benefits; to decide the amount,
form, and timing of benefits; and to resolve any other matter under the ESCP
which is raised by a claimant or identified by the AUL Compensation Committee.
All questions arising from or in connection with the provisions of the ESCP and
its administration shall be determined by the AUL Compensation Committee, and
any determination so made shall be conclusive and binding upon all persons
affected thereby.

          (a) Claims under the ESCP by an ESCP Participant or anyone claiming
     through an ESCP Participant shall be presented to the AUL Compensation
     Committee, which shall either arrange for payment of the claim or otherwise
     dispose of it. Adequate notice shall be provided in writing to any person
     whose claim has been denied, setting forth the specific reasons for such
     denial.

          (b) Any person whose claim for benefits has been denied may, within
     sixty (60) days after receipt of notice of denial, submit a written request
     for review of the decision denying the claim. In such case, the AUL
     Compensation Committee shall make a full and fair review of such decision
     within sixty (60) days after receipt of a request for review and notify the
     claimant in writing of the review decision, specifying the reasons for such
     decision.

     7.04 Communications to the AUL Compensation Committee shall be addressed to
the Chairman of the AUL Compensation Committee, Bosch 69, P.O. Box 62, CH-6331,
Hunenberg, Switzerland. The Secretary of the AUL Compensation Committee is
hereby designated as agent for service of legal process with respect to any
claims arising under the ESCP.

                               END OF ARTICLE VII

                          EFFECTIVE DECEMBER 31, 1998                     VII- 1
<PAGE>

                                  ARTICLE VIII

                                 MISCELLANEOUS

          8.01 The ESCP Participant's ESCP Benefit granted hereunder or any
     interest therein are not transferable or assignable and shall not be
     subject to alienation, encumbrance, garnishment, attachment, execution, or
     levy of any kind, voluntary or involuntary, except when, where, and if
     compelled by any applicable law.

          8.02 As used in this ESCP, reference to any gender shall include the
     masculine and feminine genders, and the number of all words shall include
     the singular or plural, as appropriate.

          8.03 The amount payable to an ESCP Participant hereunder at any time
     is an unsecured and unfunded obligation of Alcon and/or any Alcon
     Affiliated Company.

          8.04 The obligations of Alcon and/or any Alcon Affiliated Company
     under the ESCP shall be binding upon its successors and assigns.

          8.05 In the event that any provision of the ESCP is determined by any
     judicial, quasi-judicial, or administrative body to be invalid or
     unenforceable for any reason, all other provisions of the ESCP shall remain
     in full force and effect as if such provision had never been a part of the
     ESCP.

          8.06 Nothing herein shall be construed as an offer or commitment by
     Alcon and/or any Alcon Affiliated Company to continue any ESCP
     Participant's employment for any period of time.

          8.07 Amounts paid to an ESCP Participant or his/her designated
     Beneficiary under the ESCP shall be net of any taxes or other amounts
     required to be withheld by the payor under any applicable law, rule, or
     regulation.

          8.08 This writing constitutes the final and complete embodiment of the
     terms of the ESCP, and all prior or earlier dated documents and
     communications, oral or written, concerning ESCP are hereby renounced,
     revoked, and superseded.

                              END OF ARTICLE VIII

                          EFFECTIVE DECEMBER 31, 1998                    VIII- 1
<PAGE>

                           SIGNATURE AND ATTESTATION

     Effective as of the 31st day of December, 1998.

                                          ALCON UNIVERSAL LTD.

                                          By: /s/ GUIDO KOLLER
                                            ------------------------------------
                                                        Guido Koller
                                                       Vice President

ATTEST:

/s/ O. DUPONT
---------------------------------------------------------
Secretary

                          EFFECTIVE DECEMBER 31, 1998                APPENDIX- 1
<PAGE>

     This copy of the "Executive Salary Continuation Plan for Alcon
Laboratories, Inc. and Affiliated Companies" constitutes an Agreement between
participant and his/her employer company (one of the Alcon Affiliated
Companies). Accordingly, participant signifies his/her legally binding
acceptance of the Agreement by placing and dating his/her signature below; and
the employer company signifies its legally binding acceptance of the Agreement
by executing the Signature and Attestation on the following page.

<Table>
<S>                                            <C>

Date:
      ---------------------------------------  By:
                                               -----------------------------------------

                                               -----------------------------------------
                                               Printed Name
</Table>

                          EFFECTIVE DECEMBER 31, 1998                APPENDIX- 2

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