Document:

<PAGE>

                                                                   Exhibit 10.40

                                                                  EXECUTION COPY

                             AMENDMENT NO. 2 TO THE
                     AMENDED AND RESTATED CREDIT AGREEMENT

     AMENDMENT dated as of June 7, 2002, to the Amended and Restated Credit
Agreement dated as of March 24, 1998 and amended as of December 8, 2000,
amending and restating the Credit Agreement dated as of May 10, 1996 and amended
as of March 5, 1998 (the "Credit Agreement") among ALLERGAN, INC. (the
"Company"), the ELIGIBLE SUBSIDIARIES referred to therein, the BANKS party
thereto, BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, as Co-Agent and
JPMORGAN CHASE BANK, as Agent (the "Agent").

                             W I T N E S S E T H :

     WHEREAS, the parties hereto desire (i) to amend the Minimum Consolidated
Net Worth Covenant in the Credit Agreement to reset the required amount to
adjust for the effect of the spin-off of the Company's ophthalmic surgical and
contact lens care businesses to launch an independent company called Advanced
Medical Optics, Inc. by means of a pro rata distribution to the Company's
stockholders of shares of a newly formed holding company (the "AMO Spin-off"),
(ii) to waive the application of Section 5.11 of the Credit Agreement to the
AMO Spin-off and (iii) to waive on a temporary basis compliance with Sections
5.07 and 5.08 of the Credit Agreement in connection with the AMO Spin-off;

     NOW, THEREFORE, the parties hereto agree as follows:

     SECTION 1. Defined Terms; References. Unless otherwise specifically defined
herein, each term used herein which is defined in the Credit Agreement has the
meaning assigned to such term in the Credit Agreement. Each reference to "hereof
", "hereunder", "herein" and "hereby" and each other similar reference and each
reference to "this Agreement" and each other similar reference contained in the
Credit Agreement shall, after this Amendment becomes effective, refer to the
Credit Agreement as amended hereby.

     SECTION 2. Definitions. The following new definition is added to Section
1.01 of the Credit Agreement in its appropriate alphabetical position:

          "AMO Spin-off" means the spin-off of the Company's ophthalmic surgical
     and contact lens care businesses to launch an independent company called
     Advanced Medical Optics, Inc. by means of a pro rata

<PAGE>

     distribution to the Company's stockholders of shares of a newly formed
     holding company.

     SECTION 3. Limited Waiver. (a) During the period this waiver remains in
effect in accordance with subsection (b) below, the Required Banks hereby waive
compliance by the Company with Sections 5.07 and 5.08 of the Credit Agreement,
and any Default by reason of a failure to comply therewith, but solely to the
extent that any failure to comply therewith is attributable to the incurrence in
anticipation of the AMO Spin-off by one or more Subsidiaries of the Company
(which Subsidiaries will cease to be Subsidiaries of the Company upon
consummation of the AMO Spin-off) of not more than $300,000,000 aggregate
principal amount of Debt or arises from the guarantee by the Company of such
Subsidiaries' obligations in connection with such Debt.

     (b) The waiver pursuant to subsection (a) shall terminate, on, and shall be
of no force and effect after, the date which is the earlier of (i) the date of
consummation of the AMO Spin-off and (ii) September 30, 2002.

     SECTION 4. Minimum Consolidated Net Worth. Effective immediately upon
consummation of the AMO Spin-off, Section 5.09 of the Credit Agreement is
amended to read as follows:

          "SECTION 5.09. Minimum Consolidated Net Worth. Consolidated Net Worth
     will at no time be less than the greater of (i) $400,000,000 and (ii) an
     amount equal to 80% of the Consolidated Net Worth of the Company based upon
     the first publicly available consolidated balance sheet of the Company and
     its Consolidated Subsidiaries which reflects consummation of the AMO
     Spin-off (the "Spin-off Balance Sheet"); provided that the foregoing amount
     shall be:

               (i) increased at the end of each of the Company's fiscal years
          ending after the date of the Spin-off Balance Sheet, by 50% of
          Consolidated Net Income (if positive) for such fiscal year (or, in the
          case of the fiscal year in which the AMO Spin-Off is consummated, the
          portion of such fiscal year subsequent to the date of the Spin-Off
          Balance Sheet); and

               (ii) increased by 100% of the amount by which Consolidated Net
          Worth is increased from time to time after the date of the Spin-off
          Balance Sheet as a result of the issuance or sale of the Company's
          capital stock."

     SECTION 5. Consolidations, Mergers and Sales of Assets. Section 5.11 of
the Credit Agreement shall not apply to the AMO Spin-off.

                                       2

<PAGE>

     SECTION 6. Representations of Company. The Company represents and warrants
that (i) the representations and warranties of the Company set forth in Article
4 of the Credit Agreement will be true on and as of the Amendment Effective Date
(as defined below) and (ii) no Default will have occurred and be continuing on
the Amendment Effective Date.

     SECTION 7. Governing Law. This Amendment shall be governed by and construed
in accordance with the laws of the State of New York.

     SECTION 8. Counterparts. This Amendment may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

     SECTION 9. Effectiveness. (a) This Amendment shall become effective as of
the date hereof on the date (the "Amendment Effective Date") when the Agent
shall have received from each of the Company and the Required Banks a
counterpart hereof signed by such party or facsimile or other written
confirmation (in form satisfactory to the Agent) that such party has signed a
counterpart hereof.

     (b) Except as expressly set forth herein, the waivers set forth in Sections
3 and 5 herein shall not constitute a waiver or amendment of any term or
condition of the Credit Agreement, and all such terms and conditions shall
remain in full force and effect and are hereby ratified and confirmed in all
respects.

                                       3

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the date first above written.

                        ALLERGAN, INC.

                        By: /s/ James M. Hindman
                            -------------------------------
                            Name:  James M. Hindman
                            Tit1e: Sr. V.P., Treasury, Risk & Investor Relations

                        By: /s/ Gary Prem
                            -------------------------------
                            Name:  Gary Prem
                            Title: Assistant Treasurer

                        JPMORGAN CHASE BANK

                        By: _______________________________
                            Name:
                            Title:

                        BANK OF AMERICA, N.A.

                        By: _______________________________
                            Name:
                            Title:

                        CITICORP USA, INC.

                        By: _______________________________
                            Name:
                            Title:

                                       4

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the date first above written.

                        ALLERGAN, INC.

                        By: _______________________________
                            Name:
                            Title:

                        By: _______________________________
                            Name:
                            Title:

                        JPMORGAN CHASE BANK

                        By: /s/ DAWN LEE LUM
                            -------------------------------
                            Name:  DAWN LEE LUM
                            Title: VICE PRESIDENT

                        BANK OF AMERICA, N.A.

                        By: _______________________________
                            Name:
                            Title:

                        CITICORP USA, INC.

                        By: _______________________________
                            Name:
                            Title:

                                       4

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the date first above written.

                        ALLERGAN, INC.

                        By: ______________________________
                            Name:
                            Title:

                        By: ______________________________
                            Name:
                            Title:

                        JPMORGAN CHASE BANK

                        By: ______________________________
                            Name:
                            Title:

                        BANK OF AMERICA, N.A.

                        By: /s/ JOSEPH L. CORAH
                            -------------------------------
                            Name:  JOSEPH L. CORAH
                            Title: PRINCIPAL

                        CITICORP USA, INC.

                        By: _______________________________
                            Name:
                            Title:

                                       4

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the date first above written.

                        ALLERGAN, INC.

                        By: _______________________________
                            Name:
                            Title:

                        By: _______________________________
                            Name:
                            Title:

                        JPMORGAN CHASE BANK

                        By: _______________________________
                            Name:
                            Title:

                        BANK OF AMERICA, N.A.

                        By: _______________________________
                            Name:
                            Title:

                        CITICORP USA, INC.

                        By: /s/ Deborah Ironson
                            -------------------------------
                            Name:  Deborah Ironson
                            Title: Vice-President

                                       4

<PAGE>

                        ABN AMRO BANK N.V.

                        By: /s/ Craig W. Trautwein
                            -------------------------------
                        Name:  Craig W. Trautwein
                        Title: Vice President

                        By: /s/ Todd J. Miller
                            -------------------------------
                        Name:  Todd J. Miller
                        Title: Credit Officer

                        BANK ONE, N.A.

                        By: _______________________________
                        Name:
                        Title:

                        MELLON BANK, N.A.

                        By: _______________________________
                        Name:
                        Title:

                        MIZUHO CORPORATE BANK, LTD.

                        By: _______________________________
                        Name:
                        Title:

                        UFJ BANK LIMITED

                        By: _______________________________
                        Name:
                        Title:

                                       5

<PAGE>

                        ABN AMRO BANK N.V.

                        By: _______________________________
                            Name:
                            Title:

                        By: _______________________________
                            Name:
                            Title:

                        BANK ONE, N.A.

                        By: /s/ Joseph R. Perdenza
                            -------------------------------
                            Name:  Joseph R. Perdenza
                            Title: Director

                        MELLON BANK, N.A.

                        By: _______________________________
                            Name:
                            Title:

                        MIZUHO CORPORATE BANK, LTD.

                        By: _______________________________
                            Name:
                            Title:

                        UFJ BANK LIMITED

                        By: _______________________________
                            Name:
                            Title:

                                       5

<PAGE>

                        ABN AMRO BANK N.V.

                        By: _______________________________
                            Name:
                            Title:

                        By: _______________________________
                            Name:
                            Title:

                        BANK ONE, N.A.

                        By: _______________________________
                            Name:
                            Title:

                        MELLON BANK. N.A.

                        By: /s/ JOHN CATE
                            -------------------------------
                            Name:  JOHN CATE
                            Title: VICE PRESIDENT

                        MIZUHO CORPORATE BANK, LTD.

                        By: _______________________________
                            Name:
                            Title:

                                       5

<PAGE>

                        ABN AMRO BANK N.V.

                        By: _______________________________
                            Name:
                            Title:

                        By: _______________________________
                            Name:
                            Title:

                        BANK ONE,N.A.

                        By: _______________________________
                            Name:
                            Title:

                        MELLON BANK, N.A.

                        By: _______________________________
                            Name:
                            Title:

                        MIZUHO CORPORATE BANK, LTD.

                        By: /s/ Masahito Fukuda
                            -------------------------------
                            Name:  Masahito Fukuda
                            Title: Sr. Vice President & G.H.

                        UFJ BANK LIMITED

                        By: _______________________________
                            Name:
                            Title:

                                       5<PAGE>

                                                                   Exhibit 10.41

                                FIRST AMENDMENT
                                       TO
                                 ALLERGAN, INC.
                          SAVINGS AND INVESTMENT PLAN
                                (RESTATED 2001)

     The ALLERGAN, INC. SAVINGS AND INVESTMENT PLAN (the "Plan") is hereby
amended as follows:

1.   Article I of the Plan is amended by renumbering Section 1.5 as Section
     1.6 and adding the following Section 1.5:

               1.5    Spin-off of Advanced Medical Optics, Inc. In connection
          with the distribution of the stock of Advanced Medical Optics, Inc.
          ("AMO") by Allergan to its stockholders (the "AMO Spin-off") and
          effective June 29, 2002 which shall be the AMO Spin-off Date: (i)
          AMO Employees (as defined in Section 2.24) shall cease to be eligible
          to make Participant Deposits or to receive allocations of Company
          Contributions, (ii) the assets and liabilities attributable to the
          Accounts of AMO Employees shall be transferred to the Advanced Medical
          Optics, Inc. 401(k) Plan, a qualified profit sharing plan with a
          qualified cash or deferred arrangement, in accordance with Code
          Section 414(1), Regulation Section 1.414(1)-1, and Section 208 of
          ERISA, and (iii) the AMO stock received with respect to Company
          Stock allocated to Participants' Accounts shall be held in a separate
          investment fund established by the Committee pursuant to Section 5.5
          and Participants shall have subaccounts under the Plan corresponding
          to their interests in such investment fund.

2.   Section 2.24 of the Plan is amended as follows:

               2.24   Employee. "Employee" shall mean, for purposes of the Plan,
          any individual who is employed by the Sponsor or an Affiliated Company
          in any capacity, 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, including any Puerto Rico-
          based payroll Employee of 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

<PAGE>

               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.

3.   Section 2.38 of the Plan is amended as follows:

               2.38   Participant Deposits. "Participant Deposits" shall mean
          all of a Participant's deposits to the Plan, including After Tax
          Deposits, Before Tax Deposits, and Rollover Contributions.

4.   Section 5.5(c) of the Plan is amended as follows:

               (c)    A Participant may elect the investment fund to which his
          or her Participant Deposits are invested under the Plan or may change
          such elections at any time; provided, however, that any allocations
          among the investment funds shall be made in 1% increments. Any change
          in investment funds shall be effective as soon as administratively
          feasible. Any investment elections shall be limited to the investment
          funds currently offered and currently available to Participants as
          determined by the Committee pursuant to paragraphs (a) and (b) above.
          A Participant shall effect an investment election by properly
          completing and submitting the form authorized by the Committee for
          this purpose.

5.   Section 5.5(d) of the Plan is amended as follows:

               (d)    A Participant may elect at any time to transfer amounts
          accumulated in his or her Accounts (his or her Before Tax Deposits
          Account, After Tax Deposits Account, or Rollover Account prior to June
          1, 2002) among any of the investment funds currently offered and
          currently available to Participants as determined by the Committee
          pursuant to paragraphs (a) and (b) above; provided, however, the total
          amount transferred shall be made in 1% increments of the amount
          accumulated in the investment fund. Any transfer among investment
          funds shall be effective as soon as administratively feasible. A
          Participant shall effect a transfer election by properly completing
          and submitting the form authorized by the Committee for this purpose.

                                      2

<PAGE>

6.   Section 5.5(e) of the Plan is amended as follows:

               (e)    Notwithstanding the requirement of paragraph (a) above
          that Matching Contributions be invested in the Company Stock Fund, (i)
          any Participant, on or after June 1, 2002, may elect that amounts
          accumulated in his or her Company Contribution Account which are held
          in the Company Stock Fund be reinvested and (ii) any Participant on or
          after the date he or she attains age 55 may elect that any future
          Matching Contribution that may be allocated to his or her Company
          Contribution Account be invested, in any of the investment funds
          currently offered and currently available to Participants as
          determined by the Committee pursuant to paragraphs (a) and (b) above.
          An election made under this paragraph (e) shall be effective as soon
          as administratively feasible. A Participant shall make any election,
          and may change any election, at such times and in accordance with the
          requirements imposed by paragraphs (c) and (d) above.

7.   Section 8.l(f) of the Plan is amended as follows:

               (f)    Except as provided in Section 8.5(c), all withdrawals
          shall be made in cash, except to the extent any of the vested portion
          of a Participant's Account to be withdrawn is invested in the Company
          Stock Fund or in the stock of Advanced Medical Optics, Inc., then such
          withdrawal may be made in Company Stock or in the stock of Advanced
          Medical Optics, Inc. at the election of the Participant to the extent
          so invested.

8.   Section 8.2(b) of the Plan is amended as follows:

               (b)    Any distribution made pursuant to paragraph (a) shall be
          paid no more than once in any calendar quarter in amounts of at least
          $500 (or the Participant's entire vested portion of his or her
          Accounts under the Plan if lesser) and shall be made in cash except to
          the extent any of the vested portion of such Participant's Accounts is
          invested in the Company Stock Fund or in the stock of Advanced Medical
          Optics, Inc. then, to the extent so invested, such distribution may be
          made in Company Stock or in the stock of Advanced Medical Optics, Inc.
          at the election of the Participant.

9.   Section 12.4 of the Plan is amended by adding the following paragraph (c):

               (c)   For purposes of this Section 12.4, 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.

                                      3

<PAGE>

10.  Appendix A of the Plan is amended in its entirety as set forth in the
     Exhibit attached hereto.

     IN WITNESS WHEREOF, Allergan, Inc. hereby executes this First Amendment to
the Allergan, Inc. Savings and Investment Plan on this 26th day of June, 2002.

ALLERGAN, INC.

BY:  /s/ Eric Brandt
     -----------------------------------
     Eric Brandt
     Corporate Vice President

                                      4

<PAGE>

                                   APPENDIX A
           SPECIAL PROVISIONS FOR PUERTO RICO-BASED PAYROLL EMPLOYEES
           ----------------------------------------------------------

                                     PART I
                                  INTRODUCTION
                                  ------------

     1.1   Effective Date. The effective date of this Appendix A is January 1,
1999.

     1.2   Purpose of Appendix A. The provisions of the Plan shall apply to all
Puerto Rico-based payroll Employees except as specifically provided in this
Appendix A.

     1.3   Plan Intended to Qualify. The Plan is an employee benefit plan that
is intended to qualify under PR-Code Section 1165(a) as a qualified profit
sharing plan and under PR-Code Section 1165(e) as a qualified cash or deferred
arrangement.

                                    PART II
                                  DEFINITIONS
                                  -----------

     The Definitions of Article II of the Plan shall apply to all Puerto
Rico-based Employees and shall have the same meaning for the purpose of this
Appendix A except as set forth below:

     2.1   Plan Section 2.17. "Compensation" shall have the same meaning as set
forth in Plan Section 2.17 except that in the case of a Puerto Rico-based
Employee, Compensation shall also include cost of living allowances earned
within Puerto Rico, amounts paid under the Christmas bonus program, and amounts
of salary reduction elected by a Puerto Rico-based Participant under a PR-Code
Section 1165(e) cash or deferred arrangement, but shall exclude contributions or
distributions pursuant to any other plan sponsored by the Company and qualified
under PR-Code Section 1165(a).

     2.2   Plan Section 2.18. "Credited Service" shall have the same meaning as
set forth in Plan Section 2.18 except that in the case of a Puerto Rico-based
Employee who was employed by the Company at any time prior to the original
Effective Date, for the period prior to January 1, 1989, Credited Service shall
include service, if any, credited to such Employee under the Savings and
Investment Plan for Employees of Subsidiaries of SmithKline Beckman Corporation
Whose Principal Office is Located in Puerto Rico.

     2.3   Plan Section 2.21. For the purpose of this Appendix A only, the
definition of "Eligible Employee" as defined in Plan Section 2.21 shall not
apply and "Eligible Employee" or "Eligible Puerto Rico-based Employee" shall
mean any Puerto Rico-based Employee but shall exclude any non-regular
manufacturing site transition employee, any non-resident alien of Puerto Rico
and the United States, any Leased Employee, and any Employee covered by a
collective bargaining agreement.

                                      5

<PAGE>

     2.4   Plan Section 2.24. For the purpose of this Appendix A only, the
definition of "Employee" as defined in Plan Section 2.24 shall not apply and
"Employee" or "Puerto Rico-based Employee" shall mean any person who is
employed in any capacity by the Sponsor or any Affiliated Company at its Puerto
Rico locations, any portion of whose income is subject to withholding of income
tax and/or for whom Social Security contribution are made by the Sponsor or an
Affiliated Company except that such term shall not include (i) 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 and (ii) 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.

     2.5   Plan Section 2.34. Notwithstanding the provisions of Plan Section
2.34, "Matched Deposits" of a Puerto Rico-based Participant shall mean his or
her Deposits (whether Before Tax or After Tax) not in excess of six percent (6%)
of Compensation. Matched Deposits shall participate in allocations of Company
Contributions and Forfeitures.

     2.6   Plan Section 2.37. For the purpose of this Appendix A only,
"Participant" as defined in Plan Section 2.37 shall not apply and "Participant"
or "Puerto Rico-based Participant" shall mean a Puerto Rico-based Employee who
is eligible to participate in the Plan and elects to participate in the Plan in
accordance with Plan Section 3.1.

     2.7   Additional Terms. Additional terms shall have the following meaning:

           (a) "PR-Code" shall mean the Puerto Rico Internal Revenue Code of
     1994, as amended. Where the context so requires a reference to a particular
     PR-Code Section shall also refer to any successor provision of the PR-Code
     to such PR-Code Section.

           (b) "Top One-Third Highly Compensated Employee" shall mean any
     Eligible Puerto Rico-based Employee who has Compensation for a Plan Year
     that is greater than the Compensation for such Plan Year of two-thirds
     (2/3) of all Eligible Puerto Rico-based Employees.

                                    PART III
                          ELIGIBILITY AND PARTICIPATION
                          -----------------------------

     The provisions of Article III of the Plan shall apply to all Puerto
Rico-based Employees.

                                      6

<PAGE>

                                     PART IV
                              PARTICIPANT DEPOSITS
                              --------------------

     The provisions of Article IV of the Plan shall apply to all Puerto
Rico-based Employees except as set forth below:

     4.1   Plan Section 4.1. The provisions of Plan Section 4.l(d) shall apply
to all Puerto Rico-based Participants except that Puerto Rico-based Participants
who make hardship withdrawals pursuant to Plan Section 8.l(e) shall not be
permitted to make Before Tax Deposits or After Tax Deposits to the Plan during
the 12-month period beginning as soon as administratively feasible following the
date of the hardship withdrawal. Also, to the extent permissible by ERISA and
the Code, each contribution made by the Company to the Plan under Plan Section
4.1 with respect to the Before Tax Deposits of a Puerto Rico-based Participant
shall be made only to the extent that the Company has current or accumulated
earnings and profits, as determined under the PR-Code, and is expressly
conditioned on the deductibility of such contribution under Section 1023(n) of
the PR-Code for the taxable year for which contributed. If the Puerto Rico
Secretary of the Treasury disallows the deduction, or if the contribution was
made by a mistake of fact, such contribution shall be returned to the Company
within one (1) year after the disallowance of the deduction (to the extent
disallowed), or after the payment of such contribution, respectively. Such
contributions to the Plan by the Company shall be paid to the Trustee not later
than the date for filing the Company's Puerto Rico income tax return for the
taxable year in which such payroll period falls, including any extensions
thereof.

     4.2   Plan Section 4.2. The provisions of Plan Section 4.2 shall apply to
all Puerto Rico-based Employees except as set forth below:

     (a)   Notwithstanding the provisions of paragraph (a) of Plan Section 4.2,
a Puerto Rico-based Participant may elect to contribute a whole percentage of
his or her Compensation to the Plan as Before Tax Deposits; provided, however,
that no Puerto Rico-based Participant shall be permitted to make Before Tax
Deposits to the Plan during any taxable year in excess of (i) ten percent (10%)
of Compensation up to a maximum of $8,000, or such larger amount as may be
determined by the Puerto Rico Secretary of the Treasury pursuant to the PR-Code;
provided that, if a Puerto Rico-based Participant contributes to a Puerto Rico
individual retirement account as described in PR-Code Section 1169, the maximum
amount of his or her Before Tax Deposits may not exceed the difference, if any,
between the amount available as a contribution up to the limit of $8,000 and the
contribution made to a Puerto Rico individual retirement account, or as
otherwise provided by the PR-Code, (ii) the Actual Deferral Percentage test
limitation set forth in Plan Section 4.3 and Section 4.3 of this Appendix, and
(iii) the Annual Addition limitation set forth in Plan Section 13.1.

     (b)   The provisions of paragraph (e) of Plan Section 4.2 pertaining to
"catch-up" Before Tax Deposits shall not apply to Puerto Rico-based
Participants.

     4.3    Additional Contribution Deferral Limitation. In addition to the
limitations on Compensation Deferral Contributions set forth in Plan Section
4.3, Compensation Deferral Contributions by a Puerto Rico-based Participant
shall not exceed the limitation on contributions

                                      7

<PAGE>

by or on behalf of the Top One-Third Highly Compensation Employees under PR-Code
Section 1165(e), as provided in this Section 4.3 with respect to each Plan Year.
In the event that Compensation Deferrals Contributions under the Plan by or on
behalf of the Top One-Third Highly Compensated Employees exceed the limitations
of this Section for any reason, such excess contributions shall be
recharacterized as After Tax Deposits or such excess contributions, adjusted for
any income or loss allocable thereto, shall be returned to such Participant, as
provided in Plan Section 4.5.

           (a)   The Compensation Deferral Contributions by Participants for a
     Plan Year shall satisfy the Actual Deferral Percentage test under the
     PR-Code as set forth in subparagraph (i) below, or to the extent not
     precluded by applicable regulations, the alternate Actual Deferral
     Percentage test as set forth in (ii) below:

                 (i)  The average "Actual Deferral Percentage" for the Top
           One-Third Highly Compensated Employees shall not be more than the
           average Actual Deferral Percentage of all non-Top One-Third Highly
           Compensated Employees multiplied by 1.25, or

                 (ii)  The excess of the average Actual Deferral Percentage for
           the Top One-Third Highly Compensated Employees over the average
           Actual Deferral Percentage for all non-Top One-Third Highly
           Compensated Employees shall not be more than two (2) percentage
           points and the average Actual Deferral Percentage for the Top
           One-Third Highly Compensated Employee shall not be more than the
           average Actual Deferral Percentage of all non-Top One-Third Highly
           Compensated Employees multiplied by 2.0.

           (b)   For the purpose of this Section 4.3 only, the following
     definitions shall apply:

                 (i)   "Actual Deferral Percentage" shall mean, with respect to
           the group of all Top One-Third Highly Compensated Employees and the
           group of all non-Top One-Third Highly Compensated Employees for a
           Plan Year, the ratio, calculated separately for each Participant in
           such group, of the amount of the Participant's Compensation Deferral
           Contribution for such Plan Year, to such Participant's Compensation
           for such Plan Year, in accordance with regulations prescribed by the
           Puerto Rico Secretary of the Treasury under PR-Code Section 1165(e).
           For purposes of computing the Actual Deferral Percentage, an Eligible
           Employee who would be a Participant but for the failure to make
           Before Tax Deposits shall be treated as a Participant on whose behalf
           no Before Tax Deposits are made.

                 (ii)   "Participant" shall mean any Eligible Puerto Rico-based
           Employee who satisfied the requirements under Plan Article III during
           the Plan Year, whether or not such Eligible Employee elected to
           contribute to the Plan for such Plan Year.

                                      8

<PAGE>

                 (iii)  "Compensation Deferral Contributions" shall mean amounts
           contributed to the Plan by a Participant as Before Tax Deposits
           pursuant to Section 4.1 of this Appendix, including any other amounts
           prescribed under PR-Code Section 1165(e) and applicable regulations.
           To the extent determined by the Committee and in accordance with
           regulations issued by the Puerto Rico Secretary of the Treasury,
           matching contributions and qualified nonelective contributions on
           behalf of a Participant that satisfy the requirements of PR-Code
           Section 1165(e)(3)(D)(ii) may also be taken into account for the
           purpose of determining the Actual Deferral Percentage of such
           Participant.

                 (iv)   "Compensation" shall mean compensation as defined in
           PR-Code Section 1165(e) and applicable regulations.

           (c)   In the event that as of the first day of Plan Year, the Plan
     satisfies the requirements of PR-Code Section 1165(a) only if aggregated
     with one or more other plans which include arrangements under PR-Code
     Section 1165(e), then this Section 4.3 shall be applied by determining the
     Actual Deferral Percentages of Participants as if all such plans were a
     single plan, in accordance with regulations prescribed by the Secretary of
     the Treasury under PR-Code Section 1165(e). Plans may be considered one
     plan for purposes of satisfying PR-Code Section 1165(e) only if they have
     the same Plan Year.

           (d)   For the purpose of this Section 4.3, the "Actual Deferral
     Percentage" for any Top One-Third Highly Compensated Employee who is a
     Participant under two or more PR-Code Section 1165(e) arrangements of the
     Company shall be determined by taking into account the Top One-Third Highly
     Compensated Employee's Compensation under each such arrangement and
     contributions under each such arrangement which qualify for treatment under
     PR-Code Section 1165(e) in accordance with regulations prescribed by the
     Puerto Rico Secretary of the Treasury under PR-Code Section 1165(e). If the
     arrangements have different Plan Years, this paragraph shall be applied by
     treating all such arrangements ending with or within the same calendar year
     as a single arrangement. Notwithstanding the foregoing, certain plans shall
     be treated as separate plans if mandatorily disaggregated pursuant to
     regulations under Code Section 401(k).

           (e)   For purposes of the Actual Deferral Percentage test under the
     PR-Code, Compensation Deferral Contributions must be made before the last
     day of the twelve-month period immediately following the Plan Year to
     which such contributions relate.

           (f)   The determination and treatment of Compensation Deferral
     Contributions and the Actual Deferral Percentage of any Participant under
     this Section 4.3 shall satisfy such other requirements as may be prescribed
     by the Puerto Rico Secretary of the Treasury.

           (g)   The Committee shall keep or cause to have kept such records as
     are necessary to demonstrate that the Plan satisfies the requirements of
     PR-Code Section 1165(e) and the regulations thereunder, in accordance with
     regulations prescribed by the Puerto Rico Secretary of the Treasury.

                                      9

<PAGE>

           (h)   Notwithstanding any provision of this Appendix A to the
     contrary, to the extent permitted by the PR-Code and its regulations, all
     Employees employed by the Sponsor and any Affiliated Company that
     participates in the Plan may be aggregated for purposes of determining
     compliance by the Plan with the Actual Deferral Percentage test under the
     PR-Code and the determination of Top One-Third Highly Compensated
     Employees.

     4.4   Plan Section 4.4. The provisions of Plan Section 4.4 entitled
"Provisions for Return of Excess Before Tax Deposits over $11,000" shall be
applied by substituting the dollar limitation contained in Section 4.2 of this
Appendix for the "$11,000 limitation" in each place it appears.

     4.5   Plan Section 4.5. The provisions of Plan Section 4.5 entitled
"Provision for Recharacterization or Return of Excess Deferrals by Highly
Compensated Participants" shall be applied as follows:

           (a)   "Highly Compensated Participant and Top One-Third Highly
     Compensated Employee" shall be substituted for "Highly Compensated
     Participant" in each place it appears.

           (b)   For purposes of satisfying the Actual Deferral Percentage test
     under the PR-Code, the amount of any excess Compensation Deferral
     Contributions by a Top One-Third Highly Compensated Employee shall be
     determined by the Committee taking into account the leveling method applied
     under the PR-Code and its regulations that provide that the leveling method
     shall begin with the Top One-Third Highly Compensated Employee who has the
     highest deferral percentage.

           (c)   Any reference to Code Sections shall include reference to the
     corresponding PR-Code Section unless the context clearly indicates
     otherwise. For example, references to "Code Section 401(k)" and "Code
     Section 404" shall include references to PR-Code Section 1165(e) and
     PR-Code Section 1023(n), respectively.

     4.6   Reserved for Future Modification.

     4.7   Plan Section 4.7. In addition to the provisions of Plan Section 4.7
entitled "Character of Deposits," Before Tax Deposits shall be treated as
employer contributions for purposes of PR-Code Section 1165(e).

     4.8   Plan Section 4.8. For purposes of Plan Section 4.8, a "Direct
Rollover Contribution" or a "Participant Rollover Contribution" from a
retirement plan qualified under PR-Code Section 1165(a) (unless such plan is
also qualified under Code Section 401(a)) or an "IRA Rollover Contribution" from
a Puerto-Rico individual retirement account or annuity shall not be permitted
under the Plan.

                                     10

<PAGE>

                                     PART V
                      TRUST FUND AND MATCHING CONTRIBUTIONS
                      -------------------------------------

     The provisions of Article V shall apply to all Puerto Rico-based Employees
except as set forth below:

     5.1   Plan Section 5.3(a). Notwithstanding the provisions of Plan Section
5.3(a) entitled "Company Contributions," the Company shall contribute and
allocate on a pay period basis which, when added to Forfeitures available after
application of Section 6.3 is equal to:

           (a)   7.5% of each Participant's Matched Deposits for the pay period
     which are not in excess of two percent (2%) of such Participant's
     Compensation.

           (b)   50% of each Participant's Matched Deposits for the pay period
     which are in excess of two percent (2%) of such Participant's Compensation
     but not in excess of four percent (4%) of such Participant's Compensation.

           (c)   25% of each Participant's Matched Deposits for the pay period
     which are in excess of four percent (4%) of such Participant's
     Compensation.

     The Board of Directors, acting upon the advice and direction of the
Committee, may authorize and direct that Matching Contributions (expressed as a
percentage of Participants' Matched Deposits as set forth above) be changed from
time to time from a minimum of 0% to a maximum of 100%.

     5.2   Plan Section 5.6. The provisions of Plan Section 5.6 entitled
"Irrevocability" shall be applied by including a corresponding reference to
"PR-Code Section 1165(a)" and "PR-Code Section 1023(n)" in each place "Code
Section 401(a)" and "Code Section 404" appears, respectively.

                                    PART VI
                            ACCOUNTS AND ALLOCATIONS
                            ------------------------

     The provisions of Article VI of the Plan shall apply to all Puerto
Rico-based Employees.

                                    PART VII
                            VESTING IN PLAN ACCOUNTS
                            ------------------------

     The provisions of Article VII of the Plan shall apply to all Puerto
Rico-based Employees.

                                     11

<PAGE>

                                   PART VIII
                            PAYMENT OF PLAN BENEFITS
                            ------------------------

     The provisions of Article VIII of the Plan shall apply to all Puerto
Rico-based Employees except as set forth below:

     8.1   Plan Section 8.2(a). For purposes of Plan Section 8.2(a), a Puerto
Rico-based Participant may elect, at the time and in the manner prescribed by
the Committee, to have the entire portion of a lump-sum distribution from the
Plan paid directly to a qualified trust described in PR-Code Section 1165(a)
that accepts the Puerto Rico-based Participant's distribution or an individual
retirement account or annuity described in PR-Code Sections 1169(a) and (b),
respectively.

     8.2   Plan Section 8.4. In addition to the provisions of Plan Section 8.4
entitled "Designation of Beneficiary," the following rules shall apply to a
Participant, as defined in Section 2.6 of this Appendix:

           (a)   In the event a deceased Participant is not a resident of Puerto
     Rico at the date of his or her death, the Committee, in its discretion, may
     require the establishment of ancillary administration in Puerto Rico.

           (b)   If the Committee cannot locate a qualified personal
     representative of the deceased Participant, or if administration of the
     deceased Participant's estate is not otherwise required, the Committee, in
     its discretion, may pay the deceased Participant's interest in the Trust
     Fund to his or her heirs at law (determined in accordance with the laws of
     the Commonwealth of Puerto Rico) as they existed at the date of the
     Participant's death.

     8.3   Plan Section 8.5. Notwithstanding the provisions of Plan Section 8.5,
a hardship withdrawal shall be made to a Puerto Rico-based Participant only if
the Committee (or its representative), based upon the Participant's
representation and such other facts as are known to the Committee, determines
that the requested withdrawal is on the account of:

           (a)   A deductible medical expense (within the meaning of PR-Code
     Section 1023(aa)(2)(p)) incurred by the Participant, his or her spouse,
     children or dependents;

           (b)   The purchase (excluding mortgage payments) of a principal
     residence for the Participant;

           (c)   The payment of tuition for the next twelve (12) months of
     post-secondary education for the Participant, the Participant's spouse,
     children, or dependents;

           (d)   The need to prevent the eviction of the Participant from his or
     her principal residence or foreclosure on the mortgage of the Participant's
     principal residence; and

                                     12

<PAGE>

           (e) Such other events as the PR-Code, regulations or the Puerto Rico
     Secretary of the Treasury may allow.

     In addition, Puerto Rico-based Participants who make hardship withdrawals
pursuant to Plan Section 8.l(e) shall not be permitted to make Before Tax
Deposits or After Tax Deposits to the Plan during the 12-month period beginning
as soon as administratively feasible following the date of the hardship
withdrawal.

     8.4   Plan Section 8.6(a). Notwithstanding the provisions of Plan Section
8.6(a) entitled "Distribution Rules," in the case of a Puerto Rico-based
Participant in no event shall any benefits under the Plan, including benefits
upon retirement, Severance, or Disability, be paid (or commence to be paid) to a
participant prior to the "Consent Date" (as defined herein) unless the
Participant consents in writing to the payment (or commencement of payment) of
such benefits prior to said Consent Date. As used herein, the term "Consent
Date" shall mean the later of (i) the Participant's 62nd birthday, or (ii) the
Participant's Normal Retirement Age. Notwithstanding the foregoing, the
provisions of this Paragraph shall not apply (i) following the Participant's
death, or (ii) with respect to a lump sum distribution of the vested portion of
a Participant's Accounts if the total amount of such vested portion does not
exceed or has never exceeded $5,000.

     8.5   Plan Section 8.6(c). Notwithstanding the provisions of Plan Section
8.6(c) entitled "Distribution Rules," Section 8.3 of this Appendix or Plan
Section 8.6(b), in the case of a Puerto Rico-based Participant distributions of
the entire vested portion of a Participant's Accounts shall be made no later
than the Participant's Required Beginning Date, or, if such distribution is to
be made over the life of such Participant or over the lives of such Participant
and a Beneficiary (or over a period not extending beyond the life expectancy of
such participant and Beneficiary) then such distribution shall commence no later
than the Participant's Required Beginning Date. Required Beginning Date shall
mean:

           (a)   For the period prior to January 1, 1989, April 1 of the
     calendar year following the later of the calendar year in which the
     Participant (i) attains age 70-1/2, or (ii) retires; provided, however, the
     foregoing clause (ii) shall not apply with respect to a Participant who is
     a Five Percent Owner (as defined in Code Section 416(i)) at any time during
     the five Plan Year period ending in the calendar year in which the
     Participant attains age 70-1/2. If the Participant becomes a Five Percent
     Owner during any Plan Year subsequent to the five Plan Year period
     referenced above, the Required Beginning Date under this Paragraph (a)
     shall be April 1 of the calendar year following the calendar year in which
     such subsequent Plan year ends.

           (b) For the period after December 31, 1988, April 1 of the calendar
     year following the calendar year in which the Participant attains age
     70-1/2; provided, however, if the Participant attains age 70-1/2 before
     January 1, 1988 and the Participant was not a Five Percent Owner at any
     time during the Plan Year ending with or within the calendar year in which
     such Participant attains age 66-1/2 or any subsequent Plan Year, then this
     Paragraph (b) shall not apply and the Required Beginning Date shall be
     determined under Paragraph (a) above.

                                     13

<PAGE>

     8.6   Plan Section 8.1l(c). The provisions of Plan Section 8.1l(c)
entitled "Additional Documents" shall be applied by including reference to
"Puerto Rico" in each place "State or Federal" appears.

     8.7   Plan Section 8.12. The provisions of Plan Section 8.12 entitled
"Trustee-Trustee Transfers" shall be applied by including a corresponding
reference to "PR-Code Section 1165" in each place "Code Section 401" appears.

                                    PART IX
                          PLAN ARTICLES IX THROUGH XI
                          ---------------------------

     The provisions of Articles IX through XI of the Plan shall apply to all
Puerto Rico-based Employees.

                                     PART X
                             TERMINATION AND MERGER
                             ---------------------

     The provisions of Articles XII of the Plan shall apply to all Puerto
Rico-based Employees except as follows:

     10.1   Plan Section 12.1. In addition to the provisions of Plan
Section 12.1, the Committee may determine that no distributions shall be made to
a Puerto Rico-based Participant in the event the Plan is terminated, until such
time as the Puerto Rico Department of the Treasury shall have determined in
writing that such termination will not adversely affected the prior
qualification of the Plan under the PR-Code.

     10.2   Plan Section 12.2. In addition to the provisions of Plan
Section 12.2, any merger or consolidation of the Plan with, or transfer in whole
or in part of the assets and liabilities of the Trust to, another trust fund as
applied to a Puerto Rico-based Participant will be limited to the extent such
other plan and trust are qualified under PR-Code Section 1165(a).

                                    PART IX
                          PLAN ARTICLES IX THROUGH XV
                          ---------------------------

     The provisions of Articles IX through XV of the Plan shall apply to all
Puerto Rico-based Employees.

                                     14

<PAGE>

                                PART X
                       MISCELLANEOUS PROVISIONS
                       ------------------------

     The provisions of Article XVI of the Plan shall apply to all Puerto
Rico-based Employees except as follows:

     10.1   Plan Section 16.5. In addition to the provisions of Plan
Section 16.5 entitled "Interpretation," the provisions of the Plan shall be
interpreted in a manner consistent with the Plan satisfying (i) the requirements
of PR-Code Section 1165(a) and related statutes for qualification as a defined
contribution plan and (ii) the requirements of PR-Code Section 1165(e) and
related statutes for qualification as a cash or deferred arrangement to the
extent such interpretation would not violate (i) the requirements of Code
Section 401(a) and related statutes for qualification as a defined contribution
plan and (ii) the requirements of Code Section 401(k) and related statutes for
qualification as a cash or deferred arrangement.

     10.2   Plan Section 16.6. In addition to the provisions of Plan
Section 16.6 entitled "Withholding for Taxes," any payments from the Trust Fund
may be subject to withholding for taxes as may be required by any applicable
Puerto Rico law.

     10.3   Plan Section 16.7. In addition to the provisions of Plan
Section 16.7 entitled "California Law Controlling," the Committee shall
determine whether all legal questions pertaining to the Plan which are not
controlled by ERISA shall be determined in accordance with the laws of the
Commonwealth of Puerto Rico or the laws of the State of California in the case
of a Puerto Rico-based Employee or Participant.

                                     15

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