Document:

Employee Stock Ownership Plan (Restated 2008)

 EXHIBIT 10.15 
  
  
  
 ALLERGAN,
INC. 
 EMPLOYEE STOCK OWNERSHIP PLAN 
  
  
  
  
  
 RESTATED 
 2008 

 TABLE OF CONTENTS 
  

					
	 	  	PAGE
		
	 ARTICLE I
	  	
	 INTRODUCTION
	  	1
			
	 1.1
	  	 Plan Name
	  	1
	 1.2
	  	 Plan Purpose
	  	1
	 1.3
	  	 Effective Date of 2008 Restated Plan
	  	1
	 1.4
	  	 Amendments to Plan
	  	1
	 1.5
	  	 Plan Qualification
	  	2
		
	 ARTICLE II
	  	
	 DEFINITIONS
	  	3
			
	 2.1
	  	 Affiliated Company
	  	3
	 2.2
	  	 Beneficiary
	  	3
	 2.3
	  	 Board of Directors
	  	3
	 2.4
	  	 Break in Service
	  	3
	 2.5
	  	 Code
	  	3
	 2.6
	  	 Committee
	  	3
	 2.7
	  	 Company
	  	3
	 2.8
	  	 Company Stock
	  	3
	 2.9
	  	 Compensation
	  	3
	 2.10
	  	 Credited Service
	  	5
	 2.11
	  	 Disability
	  	6
	 2.12
	  	 Effective Date
	  	6
	 2.13
	  	 Eligible Employee
	  	7
	 2.14
	  	 Eligible Retirement Plan
	  	7
	 2.15
	  	 Eligible Rollover Distribution
	  	7
	 2.16
	  	 Employee
	  	7
	 2.17
	  	 Employment Commencement Date
	  	8
	 2.18
	  	 ERISA
	  	8
	 2.19
	  	 ESOP Account
	  	8
	 2.20
	  	 Exempt Loan
	  	8
	 2.21
	  	 Exempt Loan Suspense Subfund
	  	9
	 2.22
	  	 415 Suspense Account
	  	9
	 2.23
	  	 Highly Compensated Employee
	  	9
	 2.24
	  	 Hour of Service
	  	10
	 2.25
	  	 Investment Manager
	  	10
	 2.26
	  	 Leased Employee
	  	10
	 2.27
	  	 Leave of Absence
	  	10
	 2.28
	  	 Normal Retirement Age
	  	11
	 2.29
	  	 Participant
	  	11
	 2.30
	  	 Period of Severance
	  	12
	 2.31
	  	 Plan
	  	12
	 2.32
	  	 Plan Administrator
	  	12

 TABLE OF CONTENTS 
  

					
	 	  	PAGE
			
	 2.33
	  	 Plan Year
	  	12
	 2.34
	  	 Reemployment Commencement Date
	  	12
	 2.35
	  	 Severance
	  	12
	 2.36
	  	 Severance Date
	  	13
	 2.37
	  	 Sponsor
	  	13
	 2.38
	  	 Trust
	  	13
	 2.39
	  	 Trust Agreement
	  	13
	 2.40
	  	 Trustee
	  	13
	 2.41
	  	 Valuation Date
	  	13
		
	 ARTICLE III
	  	
	 ELIGIBILITY AND PARTICIPATION
	  	14
			
	 3.1
	  	 Participation
	  	14
	 3.2
	  	 Duration of Participation
	  	14
	 3.3
	  	 Participation after Reemployment
	  	14
	 3.4
	  	 Participation After Normal Retirement Age
	  	14
		
	 ARTICLE IV
	  	
	 CONTRIBUTIONS AND ALLOCATION TO ACCOUNTS
	  	15
			
	 4.1
	  	 Contributions to the Trust Fund
	  	15
	 4.2
	  	 Allocation of Contributions to Trust Fund
	  	15
	 4.3
	  	 Forfeitures
	  	17
	 4.4
	  	 Employee Contributions and Rollovers
	  	17
		
	 ARTICLE V
	  	
	 VESTING AND DISTRIBUTIONS
	  	18
			
	 5.1
	  	 No Vested Rights Except as Herein Specified
	  	18
	 5.2
	  	 Vesting
	  	18
	 5.3
	  	 Severance When Less Than Fully Vested
	  	18
	 5.4
	  	 Distribution upon Severance
	  	19
	 5.5
	  	 Distribution upon Death
	  	19
	 5.6
	  	 Distribution upon Disability
	  	20
	 5.7
	  	 Withdrawal upon Age 59-1/2
	  	20
	 5.8
	  	 Designation of Beneficiary
	  	20
	 5.9
	  	 Form of Distribution
	  	21
	 5.10
	  	 Distribution Rules
	  	22
	 5.11
	  	 Put Option for Company Stock Allocated to ESOP Accounts
	  	24
	 5.12
	  	 Diversification Rule
	  	28
	 5.13
	  	 Lapsed Benefits
	  	30

  

 ii 

 TABLE OF CONTENTS 
  

					
	 	  	PAGE
		
	 ARTICLE VI
	  	
	 TRUST FUND AND INVESTMENTS
	  	32
			
	 6.1
	  	 General
	  	32
	 6.2
	  	 Single Trust
	  	32
	 6.3
	  	 Investment of the Trust
	  	32
	 6.4
	  	 Certain Offers for Company Stock
	  	34
	 6.5
	  	 Securities Law Limitation
	  	39
	 6.6
	  	 Accounting and Valuations
	  	39
	 6.7
	  	 Dividends
	  	40
	 6.8
	  	 Non-Diversion of Trust Fund
	  	42
	 6.9
	  	 Company, Committee and Trustee Not Responsible for Adequacy of Trust Fund
	  	42
	 6.10
	  	 Distributions
	  	43
	 6.11
	  	 Taxes
	  	43
	 6.12
	  	 Trustee Records to be Maintained
	  	43
	 6.13
	  	 Annual Report of Trustee
	  	43
	 6.14
	  	 Appointment of Investment Manager
	  	44
		
	 ARTICLE VII
	  	
	 OPERATION AND ADMINISTRATION
	  	45
			
	 7.1
	  	 Appointment of Committee
	  	45
	 7.2
	  	 Appointment of Investment Subcommittee
	  	45
	 7.3
	  	 Transaction of Business
	  	45
	 7.4
	  	 Voting
	  	46
	 7.5
	  	 Responsibility of Committees
	  	46
	 7.6
	  	 Committee Powers
	  	47
	 7.7
	  	 Additional Powers of Committee
	  	48
	 7.8
	  	 Investment Subcommittee Powers
	  	48
	 7.9
	  	 Periodic Review of Funding Policy
	  	49
	 7.10
	  	 Claims Procedures
	  	49
	 7.11
	  	 Appeals Procedures
	  	50
	 7.12
	  	 Limitation on Liability
	  	51
	 7.13
	  	 Indemnification and Insurance
	  	51
	 7.14
	  	 Compensation of Committees and Plan Expenses
	  	51
	 7.15
	  	 Resignation
	  	52
	 7.16
	  	 Voting of Company Stock
	  	52
	 7.17
	  	 Reliance Upon Documents and Opinions
	  	54
		
	 ARTICLE VIII
	  	
	 AMENDMENT AND ADOPTION OF PLAN
	  	55
			
	 8.1
	  	 Right to Amend Plan
	  	55
	 8.2
	  	 Adoption of Plan by Affiliated Companies
	  	55

  

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 TABLE OF CONTENTS 
  

					
	 	  	PAGE
		
	 ARTICLE IX
	  	
	 DISCONTINUANCE OF CONTRIBUTIONS
	  	56
		
	 ARTICLE X
	  	
	 TERMINATION AND MERGER
	  	57
			
	 10.1
	  	 Right to Terminate Plan
	  	57
	 10.2
	  	 Effect on Trustee and Committee
	  	57
	 10.3
	  	 Merger Restriction
	  	57
	 10.4
	  	 Effect of Reorganization, Transfer of Assets or Change in Control
	  	57
		
	 ARTICLE XI
	  	
	 LIMITATION ON ALLOCATIONS
	  	61
			
	 11.1
	  	 General Rule
	  	61
	 11.2
	  	 Annual Additions
	  	61
	 11.3
	  	 Other Defined Contribution Plans
	  	62
	 11.4
	  	 Adjustments for Excess Annual Additions
	  	62
	 11.5
	  	 Compensation
	  	63
	 11.6
	  	 Treatment of 415 Suspense Account Upon Termination
	  	63
		
	 ARTICLE XII
	  	
	 TOP-HEAVY RULES
	  	65
			
	 12.1
	  	 Applicability
	  	65
	 12.2
	  	 Definitions
	  	65
	 12.3
	  	 Top-Heavy Status
	  	66
	 12.4
	  	 Minimum Contributions
	  	67
	 12.5
	  	 Minimum Vesting Rules
	  	68
	 12.6
	  	 Non-Eligible Employees
	  	68
		
	 ARTICLE XIII
	  	
	 RESTRICTION ON ASSIGNMENT OR OTHER ALIENATION OF PLAN BENEFITS
	  	69
			
	 13.1
	  	 General Restrictions Against Alienation
	  	69
	 13.2
	  	 Qualified Domestic Relations Orders
	  	69
		
	 ARTICLE XIV
	  	
	 MISCELLANEOUS PROVISIONS
	  	73
			
	 14.1
	  	 No Right of Employment Hereunder
	  	73
	 14.2
	  	 Limitation on Company Liability
	  	73
	 14.3
	  	 Effect of Article Headings
	  	73
	 14.4
	  	 Gender
	  	73

  

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 TABLE OF CONTENTS 
  

					
	 	  	PAGE
			
	 14.5
	  	 Interpretation
	  	73
	 14.6
	  	 Withholding For Taxes
	  	73
	 14.7
	  	 California Law Controlling
	  	73
	 14.8
	  	 Plan and Trust as One Instrument
	  	73
	 14.9
	  	 Invalid Provisions
	  	73
	 14.10
	  	 Counterparts
	  	74

  

 v 

 ALLERGAN, INC. 
 EMPLOYEE STOCK OWNERSHIP PLAN 
 ARTICLE I 
 INTRODUCTION 
 1.1        Plan Name.    This document, made and entered into by Allergan, Inc., a Delaware corporation (“Allergan”), amends and restates in its entirety the
Allergan, Inc. Employee Stock Ownership Plan (Restated 2005) and shall be known hereafter as the “Allergan, Inc. Employee Stock Ownership Plan (Restated 2008).” 
 1.2        Plan Purpose.    The purpose of the Allergan, Inc. Employee Stock Ownership Plan (Restated 2008), hereinafter referred to as the
“Plan,” is to offer Participants a systematic program for accumulation of beneficial ownership interests in Company Stock and to encourage and develop employee interest and involvement in the Company. Through the beneficial ownership of
Company Stock, enhanced by means of possible debt financed acquisition of Company Stock, Allergan intends to provide Participants with a meaningful voice in matters affecting both it and Participants as shareholders. In order to accomplish these
objectives, the Plan is expressly authorized and directed to acquire and hold Company Stock as its primary investment. All assets acquired under the Plan shall be administered, distributed, forfeited and otherwise governed by the provisions of the
Plan, which is to be administered by the Committee for the exclusive benefit of Participants in the Plan and their Beneficiaries. 
 1.3        Effective Date of 2008 Restated Plan.    The Effective Date of this amended and restated Plan shall be January 1, 2008 unless otherwise specified in the
Plan. The provisions of this Plan document apply generally only to Employees who have completed at least one (1) Hour of Service for Allergan or any Affiliated Companies on or after January 1, 2008 and the rights and benefits, if any, of
Employees or Participants whose employment with Allergan or any Affiliated Companies terminated prior to January 1, 2008 shall be determined in accordance with the provisions of the Plan then in effect unless otherwise provided herein and
subject to any modification provided herein that may affect the holding or distribution of Participants’ Accounts. 
 1.4        Amendments to Plan.    The Plan has been amended from time to time since its Original Effective Date of July 26, 1989 to reflect changes in the Plan’s
operations and applicable law including, but not limited to, the following: 
 (a)        This Plan document that amends the Plan:  (i) to comply with all changes made by the Economic Growth and Tax Relief Reconciliation Act of 2001 (with technical corrections
made by the Job Creation and Worker Assistance Act of 2002), the Pension Funding Equity Act of 2004, the American Jobs Creation Act of 2004, and the Gulf Opportunity Zone Act of 2005 as well as the changes to the qualification requirements listed on
the “2006 Cumulative List of Changes in Plan Qualification Requirements” as set forth in Notice 2007-3 and (ii) to comply with a change made by the Pension 

 
Protection Act of 2006 by permitting non-spouse beneficiaries to elect direct rollovers of lump sum distributions. 
 (b)        The Plan document for the Allergan, Inc. Employee Stock Ownership Plan (Restated 2005)
that incorporated the provisions of the amendments made under the First, Second, and Third Amendments to the Allergan, Inc. Employee Stock Ownership Plan (Restated 2003) and amended the Plan, effective March 28, 2005, so that the Plan’s
mandatory distribution rule applies only to Accounts, the vested portions of which, do not exceed $1,000. 
 (c)        Amendments to the Plan that (i) limited participation in the Plan to those Employees who were Participants in the Plan as of December 31, 2002 and (ii) in connection with the
distribution of the stock of Advanced Medical Optics, Inc. (“AMO”) by Allergan to its stockholders on June 29, 2002, provided for the transfer of the assets and liabilities attributable to the ESOP Accounts of “AMO
Employees” (as defined in Section 2.16) from the Plan 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(l), Regulation
Section 1.414(1)-1, and Section 208 of ERISA, and the allocation of AMO stock to Participants’ ESOP Accounts and the Exempt Loan Suspense Subfund and the treatment of AMO stock not yet allocated to Participants’ ESOP Accounts.

 1.5        Plan Qualification.    The Plan is an employee benefit plan
that is intended to qualify under Code Section 401(a) as a qualified stock bonus plan and under Code Section 4975(e)(7) as an employee stock ownership plan. The Plan’s last determination letter was issued by the Internal Revenue
Service on March 7, 2003 with respect to the Allergan, Inc. Employee Stock Ownership Plan (Restated 2003). This Plan document is intended to reflect all law changes made by the Economic Growth and Tax Relief Reconciliation Act of 2001 (with
technical corrections made by the Job Creation and Worker Assistance Act of 2002), the Pension Funding Equity Act of 2004, the American Jobs Creation Act of 2004, and the Gulf Opportunity Zone Act of 2005 as well as the changes to the qualification
requirements listed on the “2006 Cumulative List of Changes in Plan Qualification Requirements” as set forth in Notice 2007-3. 
  

 2 

 ARTICLE II 
 DEFINITIONS 
 2.1.        Affiliated
Company.    “Affiliated Company” shall mean (i) any corporation, other than the Sponsor, which is included in a controlled group of corporations (within the meaning of Code Section 414(b)) of which the
Sponsor is a member, (ii) any trade or business, other than the Sponsor, which is under common control (within the meaning of Code Section 414(c)) with the Sponsor, (iii) any entity or organization, other than the Sponsor, which is a
member of an affiliated service group (within the meaning of Code Section 414(m)) of which the Sponsor is a member, and (iv) any entity or organization, other than the Sponsor, which is affiliated with the Sponsor under Code
Section 414(o). An entity shall be an Affiliated Company pursuant to this Section only during the period of time in which such entity has the required relationship with the Sponsor under clauses (i), (ii), (iii) or (iv) of this
Section after the Original Effective Date of the Plan. 
 2.2.        Beneficiary.    “Beneficiary” or “Beneficiaries” shall mean the person or persons last designated by a Participant as set forth in
Section 5.8 or, if there is no designated Beneficiary or surviving Beneficiary, the person or persons designated pursuant to Section 5.8 to receive the interest of a deceased Participant in such event. 
 2.3.        Board of Directors.    “Board of Directors” shall mean the Board
of Directors of the Sponsor (or its delegate) as it may from time to time be constituted. 
 2.4.        Break in Service.    “Break in Service” shall mean, with respect to an Employee, each period of 12 consecutive months during a Period of Severance
that commences on the Employee’s Severance Date or on any anniversary of such Severance Date. 
 2.5.        Code.    “Code” shall mean the Internal Revenue Code of 1986 and the regulations thereunder. Reference to a specific Code Section shall be deemed also
to refer to any applicable regulations under that Section, and shall also include any comparable provisions of future legislation that amend, supplement or supersede that specific Section. 
 2.6.        Committee.    “Committee” shall mean the committee appointed
under the provisions of Section 7.1. 
 2.7.        Company.    “Company” shall mean collectively the Sponsor and each Affiliated Company that adopts the Plan in accordance with Section 8.2.

 2.8.        Company Stock.    “Company Stock” shall mean any
class of stock of the Sponsor which both constitutes “qualifying employer securities” as defined in Section 407(d)(5) of ERISA and “employer securities” as defined in Code Section 409(1). 
 2.9.        Compensation.    “Compensation” shall mean the following:

  

 3 

 (a)        Compensation shall include amounts
paid during a Plan Year to a Participant by the Company for services rendered, including base earnings, commissions and similar incentive compensation, cost of living allowances earned within the United States of America, holiday pay, overtime
earnings, pay received for election board duty, pay received for jury and witness duty, pay received for military service (annual training), pay received for being available for work, if required (call-in premium), shift differential and premium,
sickness/accident related pay, vacation pay (other than as excluded in paragraph (c) below), vacation shift premium, and bonus amounts paid under the (i) Sales Bonus Program, (ii) Management Bonus Plan or Executive Bonus Plan, either
in cash or in restricted stock, and (iii) group performance sharing payments, such as the “Partners for Success.” 
 (b)        Compensation shall include amounts of salary reduction elected by a Participant under a Code Section 401(k) cash or deferred arrangement or a Code Section 125 cafeteria plan.

 (c)        Compensation shall not include business expense reimbursements; Company
gifts or the value of Company gifts; Company stock related options and payments; employee referral awards; flexible compensation credits paid in cash; special overseas payments, allowances and adjustments including, but not limited to, pay for cost
of living adjustments and differentials paid for service outside of the United States, expatriate reimbursement payments, and tax equalization payments; forms of imputed income; long-term disability pay; payment for loss of Company car; Company car
allowance; payments for patents or for writing articles; relocation and moving expenses; retention and employment incentive payments; severance pay; long-term incentive awards, bonuses or payments; “Impact Award” payments; “Employee
of the Year” payments; “Awards for Excellence” payments; “Hidden Gem Award” payments; special group incentive payments and individual recognition payments which are nonrecurring in nature; tuition reimbursement; lump sum
amounts paid to Employees under the Company’s vacation buy-back policy on or after October 1, 2004; and contributions by the Company under the Plan or distributions hereunder, any contributions or distributions pursuant to any other plan
sponsored by the Company and qualified under Code Section 401(a) (other than contributions constituting salary reduction amounts elected by the Participant under a Code Section 401(k) cash or deferred arrangement), any payments under a
health or welfare plan sponsored by the Company, or premiums paid by the Company under any insurance plan for the benefit of Employees. 
 (d)        Compensation for any Plan Year shall not include amounts in excess of $210,000, as adjusted for cost-of-living increases in accordance with Code
Section 401(a)(17)(B) for purposes of determining all benefits provided under the Plan for any Plan Year. Any cost-of-living adjustments in effect for a calendar year shall apply to the Plan Year beginning with or within such calendar year.

  

 4 

 (e)        Notwithstanding the foregoing, for
purposes of applying the provisions of Articles XI and XII, a Participant’s Compensation shall be determined pursuant to the definition of “Compensation” as set forth in Section 11.5 or 12.2(i), as the case may be.

 2.10.      Credited Service.    “Credited Service” shall mean, with
respect to each Employee, his or her years and months of Credited Service determined in accordance with the following rules: 
 (a)        In the case of any Employee who was employed by the Company on the Original Effective Date, for the period prior to such Effective Date such Employee shall be credited with Credited Service
under the Plan equal to the period (if any) of uninterrupted employment of such Employee with the Company up to and including the day before the Original Effective Date. For purposes of this paragraph (a), such a period of pre-Effective Date
employment shall not be deemed to have been interrupted by reason of (i) any break in or interruption of employment which continued for less than one year, or (ii) any Leave of Absence granted to such Employee under applicable Company
policies regarding Leaves of Absence. 
 (b)        On and after the Effective Date,
an Employee shall receive Credited Service credit for the elapsed period of time between each Employment Commencement Date (or Reemployment Commencement Date) of the Employee and the Severance Date which immediately follows that Employment
Commencement Date (or Reemployment Commencement Date). Solely for the purpose of determining an Employee’s Credited Service under this paragraph (b), in the case of an Employee who is employed on the Effective Date, that date shall be
deemed to be an Employment Commencement Date of the Employee (with service credit for periods prior to the Effective Date to be determined under paragraph (a) above). An Employee who is absent from work on an authorized Leave of Absence shall
be deemed to have incurred a Severance (if any) in accordance with the rules of Section 2.35. 
 (c)        An Employee shall receive Credited Service credit for periods between a Severance and his or her subsequent Reemployment Commencement Date in accordance with the following rules:

 (i)      If an Employee incurs a Severance by reason of a quit, discharge or retirement
(other than such a Severance occurring during an approved Leave of Absence, which situation is covered under the provisions of subparagraph (ii) below), and the Employee is later reemployed by the Company prior to his or her incurring a Break
in Service, he or she shall receive Credited Service for the period commencing with his or her Severance Date and ending with his or her subsequent Reemployment Commencement Date. 
 (ii)     If an Employee is on an approved Leave of Absence and then incurs a Severance by reason of a quit,
discharge or retirement during the Leave of Absence, or a failure to return to work as scheduled following such Leave, and 

  

 5 

 
such Employee is later reemployed by the Company within 12 months of the date on which he or she discontinued active employment and commenced such Leave, he
or she shall receive Credited Service for the period commencing with his or her Severance Date and ending with his or her subsequent Reemployment Commencement Date. For such purposes an Employee shall be deemed to have incurred a Severance (if any)
in accordance with the rules of Section 2.35. 
 (iii)    Other than as expressly set forth above
in this paragraph (c), an Employee shall receive no Credited Service with respect to periods between a Severance and a subsequent Reemployment Commencement Date. 
 (d)        For all purposes of the Plan, an Employee’s total Credited Service shall be
determined by aggregating any separate periods of Credited Service separated by any Breaks in Service. 
 (e)        An Employee shall be credited with Credited Service with respect to a period of employment with an Affiliated Company, but only to the extent that such period of employment would be so
credited under the foregoing rules set forth in this Section had such Employee been employed during such period by the Company. 
 (f)        Notwithstanding the foregoing, unless the Sponsor shall so provide by resolution of its Board of Directors, or unless otherwise expressly stated in the Plan, an Employee shall not receive
such Credited Service credit for any period of employment with an Affiliated Company prior to such entity becoming an Affiliated Company, except that Employees of Allergan Optical, Inc., Allergan Humphrey, and Allergan Medical Optics shall receive
Credited Service credit for any period of employment with such companies prior to the time such companies became Affiliated Companies. 
 (g)        Notwithstanding any provision of the Plan to the contrary, contributions, benefits and service credit with respect to qualified military service shall be provided in
accordance with Code Section 414(u). 
 2.11.      Disability.    “Disability” shall mean any mental or physical condition which, in the judgment of the Committee, based on such competent medical evidence as the
Committee may require, renders an individual unable to engage in any substantial gainful activity for the Company for which he or she is reasonably fitted by education, training, or experience and which condition can be expected to result in death
or which has lasted or can be expected to last for a continuous period of at least 12 months. The determination by the Committee, upon opinion of a physician selected by the Committee, as to whether a Participant has incurred a Disability shall
be final and binding on all persons. 
 2.12.      Effective
Date.    “Effective Date” of this restated Plan shall mean January 1, 2008 unless otherwise specified in the Plan. The “Original Effective Date” of the Plan shall mean July 26, 1989. 

 

 6 

 2.13.      Eligible Employee.    “Eligible
Employee” shall mean any Employee who was a Participant in the Plan on December 31, 2002 and who has not incurred a Severance on or after January 1, 2003. 
 2.14.      Eligible Retirement Plan.    “Eligible Retirement Plan” shall mean (i) an individual retirement account or annuity described in Code
Section 408(a) or 408(b), (ii) a qualified retirement plan described in Code Section 401(a) or 403(a) that accepts Eligible Rollover Distributions, (iii) an annuity contract described in Code Section 403(b) that accepts
Eligible Rollover Distributions, and (iv) an eligible plan described in Code Section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state
and which agrees to separately account for amounts transferred into such plan from this Plan. Notwithstanding the foregoing, “Eligible Retirement Plan” shall mean an individual retirement account or annuity described in Code
Section 408(a) or 408(b) with respect to a non-spouse Beneficiary. 
 2.15.      Eligible Rollover
Distribution.    “Eligible Rollover Distribution” shall mean any distribution of all or any portion of the balance to the credit of the Distributee, except that an Eligible Rollover Distribution does not include:

 (a)        any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee’s designated beneficiary, or for a specified
period of ten years or more; 
 (b)        any distribution to the extent such
distribution is required under Code Section 401(a)(9); and 
 (c)        the
portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities). 
 (d)        any other distribution that is reasonably expected to total less than $200 during the
year. 
 For purposes of this Section, “Distributee” shall mean any Employee or former Employee receiving a distribution from the
Plan. A Distributee also includes the Employee or former Employee’s surviving spouse and the Employee or former Employee’s spouse or former spouse who is the Alternate Payee under a Qualified Domestic Relations Order (as defined in Article
XIII) with regard to the interest of the spouse or former spouse and, on or after, January 1, 2007, the Employee or former Employee’s Beneficiary. 
 2.16.      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 

  

 7 

 
are made by the Sponsor or an Affiliated Company; provided, however, that such term shall not include: 
 (a)        Any individual who performs services for the Sponsor or an Affiliated Company and who
is classified or paid as an independent contractor as determined by the payroll records of the Sponsor or an Affiliated Company even if a court or administrative agency determines that such individual is a common-law employee and not an independent
contractor; 
 (b)        Any individual who performs services for the Sponsor or an
Affiliated Company pursuant to an agreement between the Sponsor or an Affiliated Company and any other person including a leasing organization except to the extent such individual is a Leased Employee; and 
 (c)        Any individual whose employment is transferred from the Sponsor or an Affiliated
Company to Advanced Medical Optics, Inc. (“AMO”) in connection with the distribution of the stock of AMO by the Sponsor to its stockholders, effective as of the day following such transfer, hereinafter referred to as an “AMO
Employee.” An individual is an AMO Employee if classified or identified as such in the payroll records of the Sponsor or an Affiliated Company or in the Employee Matters Agreement entered into between the Sponsor and AMO. 
 2.17.      Employment Commencement Date.    “Employment Commencement Date” shall mean
the date on which an Employee is first credited with an Hour of Service for the Sponsor or an Affiliated Company. An Employee shall not, for the purpose of determining his or her Employment Commencement Date, be deemed to have commenced employment
with an Affiliated Company prior to the effective date on which the entity became an Affiliated Company unless the Sponsor expressly determines otherwise, and except as is expressly provided otherwise in the Plan or in resolutions of the Board of
Directors. 
 2.18.      ERISA.    “ERISA” shall mean the Employee
Retirement Income Security Act of 1974 and the regulations thereunder. Reference to a specific ERISA Section shall be deemed also to refer to any applicable regulations under that Section, and shall also include any comparable provisions of future
legislation that amend, supplement or supersede that specific Section. 
 2.19.      ESOP
Account.    “ESOP Account” shall mean, with respect to each Participant, the account established and maintained for purposes of holding and accounting for the Participant’s allocated share of assets of the
Plan, including any subaccounts established thereunder from time to time (including his or her Stock Subaccount and Non-Stock Subaccount established pursuant to Section 6.6). 
 2.20.      Exempt Loan.    “Exempt Loan” shall mean any loan to the Plan or Trust, the
proceeds of which are used to finance the acquisition of Company Stock or to refinance such a prior Exempt Loan, which is not prohibited by Code Section 4975(c) and meets the requirements 

  

 8 

 
set forth in Code Section 4975(d)(3) and Treasury Regulation § 54.4975-7(b)(5), including the requirements that (i) any collateral for
such loan shall be limited to Company Stock purchased with the proceeds of the loan or the proceeds from any prior Exempt Loan, (ii) no person entitled to payment under the loan shall have any right to Plan assets other than collateral given
for such loan, contributions (other than contributions of Company Stock) made to repay such loan, and earnings attributable to such collateral and the investment of such contributions, and (iii) any payments made with respect to such loan by
the Plan during a Plan Year must not exceed an amount equal to the sum of contributions and earnings received during or prior to such Plan Year less such payments in prior Plan Year. 
 2.21.      Exempt Loan Suspense Subfund.    “Exempt Loan Suspense Subfund” shall mean
the subfund established under Section 4.1 hereof as part of the Trust Fund to hold Company Stock purchased with the proceeds of an Exempt Loan pending the allocation of such Company Stock to individual ESOP Accounts. 
 2.22.      415 Suspense Account.    “415 Suspense Account” shall mean the account (if
any) established and maintained in accordance with the provisions of Article XI for the purpose of holding and accounting for allocations of excess Annual Additions (as defined in Article XI). 
 2.23.      Highly Compensated Employee.    “Highly Compensated Employee” shall mean:

 (a)        An Employee who performed services for the Employer during the Plan
Year or preceding Plan Year and is a member of one or more of the following groups: 
 (i)      Employees who at any time during the Plan Year or preceding Plan Year were Five Percent Owners (as defined in Section 12.2). 
 (ii)     Employees who received Compensation during the preceding Plan Year from the Employer in excess of
$80,000 (as adjusted in such manner as permitted under Code Section 414(q)(1)). 
 (b)        For the purpose of this Section, the term “Compensation” means compensation as defined in Code Section 415(c)(3), as set forth in Section 11.5. 
 (c)        The term “Highly Compensated Employee” includes a Former Highly Compensated
Employee. A Former Highly Compensated Employee is any Employee who was (i) a Highly Compensated Employee when he or she terminated employment with the Employer or (ii) a Highly Compensated Employee at any time after attaining age 55.
Notwithstanding the foregoing, an Employee who separated from service prior to 1987 shall be treated as a Former Highly Compensated Former Employee only if during the separation year (or year preceding the separation year) or any year after the
Employee attains age 55 (or the last year ending before the Employee’s 55th birthday), the Employee either received Compensation in excess of $50,000 or was a Five Percent Owner. 
  

 9 

 (d)        For the purpose of this Section, the
term “Employer” shall mean the Sponsor and any Affiliated Company. 
 (e)        The determination of who is a Highly Compensated Employee, including the determination of the Compensation that is considered, shall be made in accordance with Code Section 414(q) and
the regulations thereunder. 
 2.24.      Hour of Service.    “Hour of
Service” shall mean an hour for which an Employee is paid or entitled to payment for the performance of duties for the Sponsor and any Affiliated Company. 
 2.25.      Investment Manager.    “Investment Manager” shall mean the one or more investment managers, if any, appointed pursuant to Section 6.14
and who constitute investment managers under Section 3(38) of ERISA. 
 2.26.      Leased
Employee.    “Leased Employee” shall mean any person (other than an Employee of the recipient) who pursuant to an agreement between the recipient and any other person (“leasing organization”) has performed
services for the recipient (or for the recipient and related persons determined in accordance with Code Section 414(n)(6)) on a substantially full time basis for a period of at least one (1) year, and such services are performed under the
primary direction or control by recipient employer. Contributions or benefits provided to a Leased Employee by a leasing organization which are attributable to services performed for the recipient employer shall be treated as provided by the
recipient employer. A Leased Employee shall not be considered an Employee of the recipient if Leased Employees do not constitute more than 20 percent of the recipient’s nonhighly compensated workforce and such Leased Employee is covered by
a money purchase pension plan providing (i) a nonintegrated employer contribution rate of at least ten (10) percent of compensation as defined under Code Section 415(c)(3); (ii) immediate participation; and (iii) full and
immediate vesting. 
 2.27.      Leave of Absence. 
 (a)        “Leave of Absence”    shall mean any personal leave from
active employment (whether with or without pay) duly authorized by the Company under the Company’s standard personnel practices. All persons under similar circumstances shall be treated alike in the granting of such Leaves of Absence. Leaves of
Absence may be granted by the Company for reasons of health (including temporary sickness or short term disability) or public service or for any other reason determined by the Company to be in its best interests. 
 (b)        In addition to Leaves of Absence as defined in paragraph (a) above, the term
Leave of Absence shall also mean a Maternity or Paternity Leave, as defined herein, but only to the extent and for the purposes required under paragraph (c) below. As used herein, “Maternity or Paternity Leave” shall mean an absence
from work for any period (i) by reason of the pregnancy of the Employee, (ii) by reason of the birth of a child of the Employee, (iii) by reason of the placement of a child with the Employee in 

  

 10 

 
connection with the adoption of the child by the Employee, or (iv) for purposes of caring for the child for a period beginning immediately following the
birth or placement referred to in clauses (ii) or (iii) above. 
 (c)        Subject to the provisions of paragraph (d) below, a Maternity or Paternity Leave described in paragraph (b) above shall be deemed to constitute an authorized Leave of Absence for
purposes of the Plan only to the extent consistent with the following rules: 
 (i)      For
purposes of determining whether a Break in Service has occurred, the Severance Date of a Participant who is absent by reason of a Maternity or Paternity Leave shall not be deemed to occur any earlier than the second anniversary of the date upon
which such Maternity or Paternity Leave commences. 
 (ii)     The Maternity or Paternity Leave
shall be treated as a Leave of Absence solely for purposes of determining whether or not an Employee has incurred a Break in Service. Accordingly, such a Maternity or Paternity Leave shall not result in an accrual of Credited Service for purposes of
the vesting provisions of the Plan or for purposes of determining eligibility to participate in the Plan (except only in determining whether a Break in Service has occurred). 
 (iii)    A Maternity or Paternity Leave shall not be treated as a Leave of Absence unless the Employee provides such
timely information as the Committee may reasonably require to establish that the absence is for the reasons listed in paragraph (b) above and to determine the number of days for which there was such an absence. 
 (d)        Notwithstanding the limitations provided in paragraph (c) above, a Maternity or
Paternity Leave described in paragraph (b) above shall be treated as an authorized Leave of Absence, as described in paragraph (a), for all purposes of the Plan to the extent the period of absence is one authorized as a Leave of Absence
under the Company’s standard personnel practices and thus is covered by the provisions of paragraph (a) above without reference to the provisions of paragraph (b) above, provided, however, that the special rule provided under this
paragraph (d) shall not apply if it would result in a Participant who is absent on a Maternity or Paternity Leave being deemed to have incurred a Break in Service sooner than under the rules set forth in paragraph (c). 
 2.28.      Normal Retirement Age.    “Normal Retirement Age” shall mean a
Participant’s sixty-fifth (65th) birthday. 
 2.29.      Participant.    “Participant” shall mean any Eligible Employee or former Eligible Employee who has commenced participation in the Plan pursuant to
Section 3.1 and who retains rights under the Plan. 
  

 11 

 2.30.      Period of Severance.    “Period
of Severance” shall mean the period of time commencing on an Employee’s Severance Date and ending on the Employee’s subsequent Reemployment Commencement Date, if any. 
 2.31.      Plan.    “Plan” shall mean the Allergan, Inc. Employee Stock Ownership Plan
described herein and as amended from time to time. 
 2.32.      Plan
Administrator.    “Plan Administrator” shall mean the administrator of the Plan within the meaning of Section 3(16)(A) of ERISA. The Plan Administrator shall be the Allergan Executive Committee whose members
are appointed by the Board of Directors pursuant to the provisions of Section 7.1 to administer the Plan. 
 2.33.      Plan Year.    “Plan Year” shall mean the calendar year. 
 2.34.      Reemployment Commencement Date.    “Reemployment Commencement Date” shall mean, in the case of an Employee who incurs a Severance and who is subsequently
reemployed by the Sponsor or an Affiliated Company, the first day following the Severance on which the Employee is credited with an Hour of Service for the Sponsor or an Affiliated Company with respect to which he or she is compensated or entitled
to compensation by the Sponsor or an Affiliated Company. An Employee shall not, for the purpose of determining his or her Reemployment Commencement Date, be deemed to have commenced employment with an Affiliated Company prior to the effective date
on which such entity becomes an Affiliated Company unless the Sponsor shall expressly determine otherwise, and except as is expressly provided otherwise in the Plan or in resolutions of the Board of Directors. 
 2.35.      Severance.    “Severance” shall mean the termination of an Employee’s
employment with the Sponsor or an Affiliated Company by reason of such Employee’s quit, discharge, Disability, death, retirement, or otherwise. For purposes of determining whether an Employee has incurred a Severance, the following rules shall
apply: 
 (a)        An Employee shall not be deemed to have incurred a Severance
(i) because of his or her absence from employment with the Sponsor or an Affiliated Company by reason of any paid vacation or holiday period, or (ii) by reason of any Leave of Absence, subject to the provisions of paragraph (b) below.

 (b)        For purposes of the Plan, an Employee shall be deemed to have incurred
a Severance on the earlier of (i) the date on which he or she dies, resigns, is discharged, or otherwise terminates his or her employment with the Sponsor or an Affiliated Company; or (ii) the date on which he or she is scheduled to return
to work after the expiration of an approved Leave of Absence, if he or she does not in fact return to work on the scheduled expiration date of such Leave; or (iii) in the case of a Leave of Absence for longer than one year, the first
anniversary of the commencement of such Leave, provided such Employee does not actually return to work on or before said first anniversary date. In no event shall an Employee’s Severance be deemed to have occurred before the last day on which
such Employee performs any services for the Sponsor or an Affiliated Company in 

  

 12 

 
the capacity of an Employee with respect to which he or she is compensated or entitled to compensation by the Sponsor or an Affiliated Company. 

(c)        Notwithstanding the foregoing, in the case of a Participant who is absent by reason
of a Maternity or Paternity Leave, the provisions of Section 2.27(c)-(d) shall apply for purposes of determining whether such a Participant has incurred a Break in Service by reason of such Leave. 
 2.36.      Severance Date.    “Severance Date” shall mean, in the case of any Employee
who incurs a Severance, the day on which such Employee is deemed to have incurred said Severance as determined in accordance with the provisions of Section 2.35, provided, however, that the special rule set forth under
Section 2.27(c)-(d) shall apply with respect to determining whether a Participant on a Maternity or Paternity Leave has incurred a Break in Service. In the case of any Employee who incurs a Severance as provided under Section 2.35 and
who is entitled to a subsequent payment of compensation for reasons other than future services (e.g., as back pay for past services rendered or as payments in the nature of severance pay), the Severance Date of such Employee shall be as of the
effective date of the Severance event (e.g., the date of his or her death, effective date of a resignation or discharge, etc.), and the subsequent payment of the aforementioned type of post-Severance compensation shall not operate to postpone the
timing of the Severance Date for purposes of the Plan. 
 2.37.      Sponsor.    “Sponsor” shall mean Allergan, Inc., a Delaware corporation, and any successor corporation or entity. 
 2.38.      Trust.    “Trust” or “Trust Fund” shall mean the trust maintained
pursuant to the Trust Agreement and as described in Section 6.1 hereof, which shall hold all cash and securities and all other assets of whatsoever nature deposited with or acquired by the Trustee in its capacity as Trustee hereunder, together
with accumulated net earnings. 
 2.39.      Trust Agreement.    “Trust
Agreement” shall mean the agreement between the Trustee and the Sponsor pursuant to which the Trust is maintained. 
 2.40.      Trustee.    “Trustee” shall mean the one or more trustees of the Trust established pursuant to Section 6.1 hereof. 
 2.41.      Valuation Date.    “Valuation Date” shall mean the last day of each Plan
Year and any other date which the Committee may designate from time to time. 
  

 13 

 ARTICLE III 
 ELIGIBILITY AND PARTICIPATION 
 3.1.        Participation.    Each Employee or former Employee who was a Participant in the Plan as of December 31, 2002 shall continue as a Participant. Any other
Employee shall not be eligible to participate in the Plan. 
 3.2.        Duration of
Participation.    A Participant shall remain an active Participant until he or she incurs a Severance, at which time he or she shall become an inactive Participant until he or she receives a distribution of the entire vested
portion of his or her ESOP Account. Once such a distribution is made, such Participant shall no longer be considered a Participant in the Plan. Any Participant who (i) transfers out of employment with the Company but who remains an Employee of
an Affiliated Company that has not adopted the Plan pursuant to Section 8.2, or (ii) remains an Employee of the Company but is no longer an Eligible Employee, shall become an inactive Participant. 
 3.3.        Participation after Reemployment.    A Participant who incurs a Severance
after he or she is fully vested in his or her ESOP Account and who is subsequently reemployed prior to receiving a distribution of his or her entire ESOP Account shall continue as an inactive Participant (but shall not be reinstated as an Eligible
Participant as defined in Section 4.2(d)). A Participant who incurs a Severance before he or she is fully vested in his or her ESOP Account and who is subsequently reemployed shall be reinstated as an inactive Participant (but shall not be
reinstated as an Eligible Participant as defined in Section 4.2(d)) as of his or her Reemployment Commencement Date; provided, that such Participant has a right to reinstatement of his or her forfeited ESOP Account upon his or her Reemployment
Commencement Date pursuant to Section 5.3. Any other Participant who incurs a Severance and who is subsequently reemployed, including a Participant who incurs a Severance after he or she is fully vested in his or her ESOP Account and who
receives a distribution of his or her entire ESOP Account, shall not be eligible to participate in the Plan. 
 3.4.        Participation After Normal Retirement Age.    An Eligible Employee may continue as a Participant after reaching his or her Normal Retirement Age in the same
manner as an Eligible Employee who has not reached his or her Normal Retirement Age. 
  

 14 

 ARTICLE IV 
 CONTRIBUTIONS AND ALLOCATION TO ACCOUNTS 
 4.1.        Contributions to the Trust Fund.    The Company may contribute to the Trust Fund for each Plan Year an amount to be determined by the Board of Directors solely
in its discretion. Such amount shall be contributed in cash or Company Stock and paid over to the Trustee for allocation to the Trust Fund not later than the date prescribed for filing the Sponsor’s federal income tax return (including all
extensions thereto) for its fiscal year corresponding to such Plan Year. Contributions shall first be applied, if necessary, to reinstate the ESOP Accounts of applicable reemployed Participants who had previously forfeited their ESOP Accounts
pursuant to Section 5.3 of the Plan, but only after all forfeitures for the Plan Year have been so applied pursuant to Section 4.3. Some or all of the remaining contributions under this Section 4.1 may be applied to repay any
principal and/or interest outstanding on any Exempt Loan or to pay Plan expenses as provided in Section 7.14. The determination of the extent to which such contributions shall be used to repay such Exempt Loans or pay Plan expenses shall be
made at the sole discretion of the Committee. Company Stock acquired by the Trust Fund through an Exempt Loan shall be added to and maintained in the Exempt Loan Suspense Subfund and shall thereafter be released from the Exempt Loan Suspense Subfund
and allocated to Participants’ ESOP Accounts as provided in Section 4.2. Contributions in excess of amounts used for other purposes described in this Section 4.1 shall be allocated to the ESOP Accounts of Participants as provided in
Section 4.2. 
 4.2.        Allocation of Contributions to Trust Fund. 
 (a)        As of a date not later than the last day of each Plan Year, an allocation shall be
made to the ESOP Account of the allocable share of each “Eligible Participant” as defined in paragraph (d) below for such Plan Year of (i) Company contributions of Company Stock contributed in kind to the Trust Fund and
(ii) Company contributions in other than Company Stock, which are not used for other purposes described in Section 4.1. Such allocations shall be made in the same proportion that the Compensation for the Plan Year for such Eligible
Participant bears to the total Compensation of all Eligible Participants for such Plan Year. 
 (b)        Company Stock acquired for the Trust Fund through an Exempt Loan shall be released from the Exempt Loan Suspense Subfund as the Exempt Loan is repaid, in accordance with the provisions of
this Section 4.2(b). 
 (i)      For each Plan Year until the Exempt Loan is fully
repaid, the number of shares of Company Stock released from the Exempt Loan Suspense Subfund shall equal the number of unreleased shares immediately before such release for the current Plan Year multiplied by the “Release Fraction.” As
used herein, the Release Fraction shall be a fraction, the numerator of which is the amount of principal and interest paid on the Exempt Loan for such current Plan Year, and the denominator of which is the sum of the numerator plus the principal and
interest to be paid on such Exempt Loan for all future years during the 

  

 15 

 
duration of the term of such Loan (determined without reference to any possible extensions or renewals thereof). Notwithstanding the foregoing, in the event
such Loan shall be repaid with the proceeds of a subsequent Exempt Loan (the “Substitute Loan”), such repayment shall not operate to release all such Company Stock in the Exempt Loan Suspense Subfund, but, rather, such release shall be
effected pursuant to the foregoing provisions of this Section 4.2(b) on the basis of payments of principal and interest on such Substitute Loan. 
 (ii)     If the Committee so determines in its discretion, then in lieu of applying the provisions of Section 4.2(b)(i) hereof with respect to such Exempt Loan or Substitute Loan, shares
shall be released from the Exempt Loan Suspense Subfund as the principal amount of an Exempt Loan is repaid (and without regard to interest payments), provided the following three conditions are satisfied: 
 (A)        The Exempt Loan must provide for annual payments of principal and interest at a
cumulative rate that is not less rapid at any time than level annual payments of such amounts for ten years. 
 (B)        The interest portion of any payment is disregarded only to the extent it would be treated as interest under standard loan amortization tables. 
 (C)        If the Exempt Loan is renewed, extended or refinanced, the sum of the expired
duration of the Exempt Loan and the renewal, extension or new Exempt Loan period must not exceed ten years. 
 (iii)    It is intended that the provisions of this Section 4.2(b) shall be applied and construed in a manner consistent with the requirements and provisions of Treasury Regulation § 54.4975-7(b)(8), and
any successor regulation thereto. All Company Stock released from the Exempt Loan Suspense Subfund during any Plan Year shall be allocated among Participants as prescribed by Section 4.2(c) hereof, except to the extent provided in
Section 6.7. 
 (c)        Shares of Company Stock released from the Exempt Loan
Suspense Subfund for a Plan Year in accordance with Section 4.2(b) hereof and Section 6.7(b)(i) shall be held in the Trust Fund on an unallocated basis until allocated by the Committee as of not later than the last day of that Plan Year.
The allocation of such shares shall be made among the ESOP Accounts of Eligible Participants (as that term is defined in paragraph (d) below). The number of shares allocable to each such Eligible Participant’s ESOP Account shall be the
number of shares which bears the same ratio to the total shares released for such Plan Year as the Compensation for the Plan Year for such Eligible Participant bears to the total Compensation of all Eligible Participants for such Plan Year.

  

 16 

 (d)        For purposes of Section 4.2, an
“Eligible Participant” shall mean any Participant who is an Eligible Employee on the last business day of such Plan Year or who ceased to be an Eligible Employee during such Plan Year due to death, Disability, or retirement at or after
age 55 (as such retirement is determined under the Allergan, Inc. Pension Plan). Any Eligible Participant who, on or after January 1, 2003, (i) incurs a Severance and is subsequently reemployed or (ii) transfers out of employment
with the Company to employment with an Affiliated Company that has not adopted the Plan pursuant to Section 8.2 and is subsequently transferred back to employment with Company, shall not be an Eligible Participant following his or her
Reemployment Commencement Date or transfer date. 
 4.3.        Forfeitures.    Any amount which is forfeited pursuant to Section 5.3 or 5.13 during a Plan Year shall be segregated from other amounts held under the Plan
and shall first be used to reinstate the ESOP Accounts of reemployed Participants (or Beneficiaries, if applicable) who had previously forfeited such ESOP Accounts and who have a right to reinstatement of their forfeited ESOP Accounts pursuant to
Section 5.3 or 5.13. Should any forfeitures then remain, they may next be used to pay Plan expenses as provided under Section 7.14. Should any forfeitures then remain, they shall be allocated as of the last day of the Plan Year to the ESOP
Accounts of Eligible Participants (as that term is defined in Section 4.2(d)) based on Compensation in the same manner as allocations under Section 4.2(a) and (c). 
 4.4.        Employee Contributions and Rollovers.    No Employee contributions are
permitted under the Plan. No rollover contributions to the Plan are permitted whether or not any such contributions would satisfy the applicable requirements of Code Sections 402, 403, 408 or 409. 
  

 17 

 ARTICLE V 
 VESTING AND DISTRIBUTIONS 
 5.1.        No Vested
Rights Except as Herein Specified.    No Employee shall have any vested right or interest in any assets of the Trust, except as provided in this Article V. Neither the making of any allocations nor the credit to any ESOP
Account of a Participant in the Trust shall vest in any Participant any right, title, or interest in or to any assets of the Trust except as provided in this Article V. 
 5.2.        Vesting. 
 (a)        The interest of a Participant in amounts allocated to his or her ESOP Account,
including cash dividends on shares of Company Stock allocated to such Participant’s ESOP Account, shall vest in accordance with the following schedule: 
  

			
	 Year of Credited Service
	  	Vested Percentage
	 Less than 1
	  	    0%
	 1 but less than 2
	  	  20%
	 2 but less then 3
	  	  40%
	 3 but less than 4
	  	  60%
	 4 but less than 5
	  	  80%
	 5 or more
	  	100%

 (b)        Notwithstanding the above, a
Participant shall become fully vested in his or her ESOP Account upon the occurrence of the death, Disability, or attainment of age 62 of such Participant while an Employee, or upon the occurrence of a Change in Control pursuant to
Section 10.4(b). 
 5.3.        Severance When Less Than Fully
Vested.    Subject to Section 5.10(b), a Participant who incurs a Severance and who is not or does not become 100% vested pursuant to Section 5.2, may elect to receive a distribution of the vested portion of his or
her ESOP Account in a single lump sum payment in the form prescribed by Section 5.9 hereof, as soon as practicable following the Participant’s Severance Date. The non-vested portion of such Participant’s ESOP Account shall be
forfeited in accordance with the following rules: 
 (a)        In the event a
distribution of the entire vested portion of such Participant’s ESOP Account is made pursuant to this Section 5.3, the non-vested portion shall be forfeited as of such Participant’s distribution date. A Participant who incurs a
Severance when no portion of his or her ESOP Account is vested shall be deemed to have received a distribution pursuant to this paragraph (a) as of his or her Severance Date and his or her ESOP Account shall be forfeited as of the
Participant’s Severance Date. If the Participant is rehired by the Company prior to the date such Participant incurs five consecutive Breaks in Service, the amount forfeited under this paragraph (a) shall be reinstated to the 

  

 18 

 
Participant’s ESOP Account as of the Participant’s Reemployment Commencement Date (without regard to any interest or investment earnings on such
amount). 
 (b)        In the event a distribution of the entire vested portion of
such Participant’s ESOP Account is not made pursuant to this Section 5.3, the non-vested portion shall be forfeited as of such Participant’s Severance Date. If the Participant is rehired by the Company prior to the date such
Participant incurs five consecutive Breaks in Service, the amount so forfeited plus an amount equal to the rate of return that the amount forfeited would have received but for forfeiture pursuant to this paragraph (b) shall be reinstated to the
Participant’s ESOP Account as of the Participant’s Reemployment Commencement Date. The Company shall be obligated to contribute to the Trust Fund any amounts necessary after application of Section 4.3 to reinstate a Participant’s
ESOP Account if reinstatement is required under the provisions of this paragraph. 
 (c)        At any relevant time after Severance pursuant to paragraphs (a) and (b) above, the Participant’s vested portion of his or her ESOP Account shall be equal to an amount
(“X”) determined by the following formula: 
 X = P*(AB + D) - D 
 For the purposes of applying the formula: 
 P = the vested percentage at any relevant time determined pursuant to Section 5.2 
 AB
= the ESOP Account balance at the relevant time 
 D = the total amount of any distributions from the ESOP Account since such
Severance 
 5.4.        Distribution upon Severance.    Subject to
Section 5.10(b), a Participant who incurs a Severance on or after becoming 100% vested pursuant to Section 5.2, may elect to receive a distribution of his or her ESOP Account, in a single lump-sum payment in the form prescribed by
Section 5.9 hereof, as soon as practicable following the Participant’s Severance Date. Notwithstanding anything to the contrary, upon receipt of a Qualified Domestic Relations Order on or after a Participant is 100% vested pursuant to
Section 5.2, the amount payable to an Alternate Payee (as such terms are described in Section 13.2) shall be distributed to the Alternate Payee as soon as administratively feasible regardless of whether the Participant incurs a Severance.

 5.5.        Distribution upon Death. 
 (a)        Upon the death of a Participant while still an Employee, the Committee shall give such
directions as may be necessary to cause a distribution of his or her ESOP Account to be made in a single lump-sum payment to the Beneficiary designated by the deceased Participant in the form prescribed in Section 5.9 hereof, as soon as
practicable 

  

 19 

 
following the Participant’s death, but in no event later than the last day of the Plan Year following the Plan Year in which the Participant died.

 (b)        Upon the death of a Participant after he or she ceases to be an
Employee but before he or she receives his or her entire vested interest in the Trust, the Committee shall give such directions as may be necessary to cause a distribution, in the manner and time provided in Section 5.5(a) hereof, of any vested
balance remaining in the Participant’s ESOP Account to the Beneficiary designated by the Participant. 
 (c)        The Committee may require the execution and delivery of such documents, papers and receipts as the Committee may determine necessary or appropriate in order to establish the fact of death
of the deceased Participant and of the right and identity of any Beneficiary or other person or persons claiming any benefits under this Section 5.5. 
 5.6.        Distribution upon Disability.    Subject to Section 5.10(b), in the event the Committee shall determine that a Participant has
suffered a Disability while an Employee, the Committee shall proceed to cause a distribution to be made of such Participant’s ESOP Account in a single lump-sum payment in the form prescribed in Section 5.9 hereof as soon as practicable
following the Committee’s determination that the Participant has incurred a Disability. 
 5.7.        Withdrawal upon Age 59-1/2.    After attaining age 59-1/2, a Participant who is still an Employee may, following such reasonable advance notice as may be
required by the Committee, withdraw the entire vested amount credited to his or her ESOP Account. Such a withdrawal shall be in the same form and using the same valuation methods as provided for distributions pursuant to Section 5.9.

 5.8.        Designation of Beneficiary. 
 (a)        At any time, and from time to time, each Participant shall have the unrestricted right
to designate the Beneficiary to receive the portion of his or her death benefit and to revoke any such designation. Each such designation shall be evidenced by a written instrument signed by the Participant and filed with the Committee. 

(b)        If the Participant is married and designates a Beneficiary other than his or her
spouse, said designation shall not be honored by the Committee unless accompanied by the written consent of said spouse to said designation. Such consent (i) must designate a Beneficiary which may not be changed without the consent of the
spouse (or the consent of the spouse expressly permits designation by the Participant without any further consent by the spouse), (ii) must acknowledge the effect of the designation, and (iii) must be witnessed by a Plan representative or
a notary public. No consent of such spouse shall be necessary if it is established to the satisfaction of a Plan representative that the consent required under this paragraph (b) cannot or need not be obtained because (i) there is no
spouse, (ii) the spouse cannot be located, or (iii) there exist such other circumstances which, pursuant to regulations under Code Section 417, permit a distribution to another 

  

 20 

 
Beneficiary. Any consent of a spouse obtained pursuant to this paragraph (b) or any determination that the consent of the spouse cannot (or need not) be
obtained, shall be effective only with respect to that spouse. If a Participant becomes married following his or her designation of a Beneficiary other than his or her spouse, such designation shall be ineffective unless the spousal consent
requirements of this paragraph are satisfied with respect to such spouse (subject, however, to the provisions of Article XIII regarding Qualified Domestic Relations Orders). 
 (c)        If the Participant is married and does not designate a Beneficiary, the
Participant’s spouse shall be his or her Beneficiary for purposes of this Section. If the deceased Participant is not married and shall have failed to designate a Beneficiary, or if the Committee shall be unable to locate the designated
Beneficiary after reasonable efforts have been made, or if such Beneficiary shall be deceased, distribution of the Participant’s death benefit shall be made by payment of the deceased Participant’s entire interest in the Trust to his or
her personal representative in a single lump-sum payment. In the event the deceased Participant is not a resident of California at the date of his or her death, the Committee, in its discretion, may require the establishment of ancillary
administration in California. If the Committee cannot locate a qualified personal representative of the deceased Participant, or 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 to his or her heirs at law (determined in accordance with the laws of the State of California as they existed at the date of the Participant’s death). 
 5.9.        Form of Distribution. 
 (a)        All shares of Company Stock or Advanced Medical Optics, Inc. allocated to a
Participant’s ESOP Account shall be distributed in the form of cash, unless the Participant elects under paragraph (b) below to receive the distribution in the form of Company Stock or Advanced Medical Optics, Inc. stock, with cash in lieu
of fractional shares. To the extent that Company Stock or Advanced Medical Optics, Inc. stock must be valued to effect such a distribution, such valuation shall be equal to the fair market value of such stock determined as of the last Valuation Date
prior to the date of distribution. 
 (b)        A Participant may elect that all
shares of Company Stock or Advanced Medical Optics, Inc. allocated to his or her ESOP Account be distributed in the form of Company Stock or in the form of Advanced Medical Optics, Inc. stock, with cash in lieu of fractional shares. Notwithstanding
the foregoing, if applicable corporate charter or bylaw provisions restrict ownership of substantially all outstanding Company Stock to Employees or to a plan or trust described in Code Section 401(a), then any distribution of a
Participant’s ESOP Account shall only be in cash. 
  

 21 

 (c)        Notwithstanding the foregoing, in the
case of an Eligible Rollover Distribution, a Participant may elect that an Eligible Rollover Distribution be paid directly by the Trustee to the trustee of an Eligible Retirement Plan. 
 5.10.      Distribution Rules.    Notwithstanding the provisions of Sections 5.3, 5.4, 5.5,
5.6, 5.7, and 5.9 of the Plan regarding distributions of Participants’ ESOP Accounts, the following additional rules shall apply to all such distributions. 
 (a)        In no event shall any benefits under the Plan, including benefits upon retirement,
termination of employment, or Disability, be paid to a Participant prior to the “Consent Date” (as defined herein) unless the Participant consents in writing to the 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) to the extent paragraph (b) below applies. 
 (b)        Notwithstanding anything to the contrary in the Plan, if the total amount of the vested portion of a Participant’s ESOP Account does not exceed $1,000 ($5,000, prior to March 28,
2005), the vested portion of such Participant’s ESOP Account shall be distributed, in a single lump-sum payment in the form prescribed by Section 5.9 hereof, as soon as practicable following the Participant’s Severance Date.

 (c)        Unless the Participant elects otherwise pursuant to paragraph (a)
above, distributions of the vested portion of a Participant’s ESOP Accounts shall commence no later than the 60th day after the close of the Plan Year in which the latest of the following events occurs: (i) the Participant’s Normal
Retirement Age; (ii) the tenth anniversary of the year in which the Participant commenced participation in the Plan; or (iii) the Participant’s Severance. 
 (d)        Minimum Required Distributions during Participant’s Lifetime. Notwithstanding
anything to the contrary in the Plan, unless the entire vested portion of a Participant’s Accounts is distributed in a single sum on or before the Required Beginning Date, distributions shall be made in accordance with this paragraph (d)
as of the first Distribution Calendar Year and the entire vested portion of a Participant’s Accounts shall be distributed, or begin to be distributed, to the Participant no later than the Participant’s Required Beginning Date as set forth
below: 
 (i)      Amount of Minimum Required Distribution for each Distribution Calendar
Year. During the Participant’s lifetime, the minimum amount that shall be distributed for each Distribution Calendar Year is the lesser of: 
 (A)        the quotient obtained by dividing the Participant’s Account Balance by the distribution period in the Uniform Lifetime Table set forth in Regulation
Section 1.401(a)(9)-9, using the 

  

 22 

 
Participant’s age as of the Participant’s birthday in the Distribution Calendar Year; or 
 (B)        if the Participant’s sole Designated Beneficiary for the Distribution Calendar
Year is the Participant’s spouse, the quotient obtained by dividing the Participant’s Account Balance by the number in the Joint and Last Survivor Table set forth in Regulation Section 1.401(a)(9)-9, using the Participant’s and
spouse’s attained ages as of the Participant’s and spouse’s birthdays in the Distribution Calendar Year. 
 (ii)     Lifetime Minimum Required Distributions continue through Year of Participant’s Death. Minimum required distributions shall be determined under this paragraph (d) beginning with the first
Distribution Calendar Year and up to and including the Distribution Calendar Year that includes the Participant’s date of death. 
 (iii)    For purposes of this paragraph, the following definitions shall apply: 
 (A)        “Account Balance” shall mean the account balance of a Participant’s Account as of the last valuation date in the calendar year immediately preceding
the Distribution Calendar Year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to a Participant’s Accounts as of dates in the valuation calendar year after the valuation date
and decreased by distributions made in the valuation calendar year after the valuation date. The Account Balance for the valuation calendar year includes any amounts rolled over or transferred to the plan either in the valuation calendar year or in
the Distribution Calendar Year if distributed or transferred in the valuation calendar year. 
 (B)        “Designated Beneficiary” shall mean the individual who is designated as the Beneficiary under Section 5.8 and is the Designated Beneficiary under Code Section 401(a)(9)
and Regulation Section 1.401(a)(9)-1, Q&A-4. 
 (C)        “Distribution Calendar Year” shall mean a calendar year for which a minimum distribution is required. For distributions beginning before the Participant’s death, the first
Distribution Calendar Year is the calendar year immediately preceding the calendar year which contains the Participant’s Required Beginning Date. The minimum required distribution for the Participant’s first Distribution Calendar Year
shall be made on or before the Participant’s Required Beginning Date. The minimum required distribution for other 

  

 23 

 
Distribution Calendar Years, including the minimum required distribution for the Distribution Calendar Year in which the Participant’s Required
Beginning Date occurs, shall be made on or before December 31 of that Distribution Calendar Year. 
 (D)        “Life expectancy” shall mean as computed by use of the Single Life Table in Regulation Section 1.401(a)(9)-9. 
 (E)        “Required Beginning Date” shall mean April 1 of the calendar year
immediately following the later of the calendar year in which the Participant attains age 70-1/2 or incurs a Severance; provided, however, if such Participant is a Five Percent Owner (as defined in Code Section 416(i) and applicable
regulations) with respect to the Plan Year ending in the calendar year in which such Participant attains age 70-1/2, the Required Beginning Date shall be April 1 of the calendar year immediately following the year in which such Participant
attains age 70-1/2. 
 (iv)     Treasury Regulations Incorporated by Reference. All distributions
required under this subsection shall be determined and made in accordance with the Treasury Regulations under Code Section 401(a)(9). 
 (e)        Minimum Required Distributions following Participant’s Death. If a Participant dies before the entire vested portion of his or her ESOP Account is distributed,
the entire vested portion of the Participant’s ESOP Account shall be distributed as provided in Section 5.5. 
 (f)        If it is not administratively practical to calculate and commence payments by the latest date specified in the rules of paragraphs (b), (c), (d) and (e) above because the
amount of the Participant’s benefit cannot be calculated, or because the Committee is unable to locate the Participant after making reasonable efforts to do so, the payment shall be made as soon as is administratively possible (but not more
than 60 days) after the Participant can be located and the amount of the distributable benefit can be ascertained. 
 (g)        If any payee under the Plan is a minor or if the Committee reasonably believes that any payee is legally incapable of giving a valid receipt and discharge for any payment due him, the
Committee may have such payment, or any part thereof, made to the person (or persons or institution) whom it reasonably believes is caring for or supporting such payee, or, if applicable, to any duly appointed guardian or committee or other
authorized representative of such payee. Any such payment shall be a payment for the account of such payee and shall, to the extent thereof, be a complete discharge of any liability under the Plan to such payee. 
 5.11.      Put Option for Company Stock Allocated to ESOP Accounts. 
  

 24 

 (a)        Solely in the event that a Participant
receives a distribution consisting in whole or in part of Company Stock that at the time of distribution thereof is not readily tradable stock within the meaning of Code Section 409(h) then such distributed Company Stock shall be made subject
to a put option in the hands of a Qualified Holder (as defined herein below), with such put option to be subject to the following provisions: 
 (i)      As used herein, the term “Qualified Holder” shall mean the Participant or Beneficiary receiving the distribution of such Company Stock, any other party to whom such
stock is transferred by gift or by reason of death, and also any trustee of an Individual Retirement Account (as defined under Code Section 408) to which all or any portion of such distributed Company Stock is transferred pursuant to a tax-free
“rollover” transaction satisfying the requirements of Code Section 402. 
 (ii)     During the sixty (60) day period following any distribution of such Company Stock, a Qualified Holder shall have the right to require the Company to purchase all or any portion of said distributed
Company Stock held by said Qualified Holder. A Qualified Holder shall exercise such right by giving written notice to the Company within the aforesaid sixty (60) day period of the number of shares of distributed Company Stock that such
Qualified Holder intends to sell to the Company. The purchase price to be paid for any such Company Stock shall be its fair market value determined as of the Valuation Date coincident with or immediately preceding the date of the distribution.

 (iii)    If a Qualified Holder shall fail to exercise his or her put option right under subparagraph
(ii) above, such option right shall temporarily lapse upon the expiration of the sixty (60) day period thereof. As soon as is reasonably practicable following the last day of the Plan Year in which said sixty (60) day option period
expires, the Company shall notify each such non-electing Qualified Holder who is then a shareholder of record of the valuation of such Company Stock as of the most recent Valuation Date. During the sixty (60) day period following receipt of
such valuation notice, any such Qualified Holder shall have the right to require the Company to purchase all or any portion of such distributed Company Stock. The purchase price to be paid therefor shall be based on the valuation of such Company
Stock as of the Valuation Date coinciding with or next preceding the exercise of the option under this Section 5.11(c). If a Qualified Holder fails to exercise his or her option right under this subparagraph (iii) with respect to any
portion of such distributed Company Stock, no further options shall be applicable under the Plan and the Company shall have no further purchase obligations hereunder. 
 (iv)     In the event that a Qualified Holder shall exercise a put option under this Section, then the Company
shall have the option of paying the purchase price of the Company Stock which is subject to such put option (hereafter the “Option Stock”) under either of the following methods: 
  

 25 

 (A)        A lump sum payment of the purchase
price within ninety (90) days after the date upon which such put option is exercised (the “Exercise Date”) or 
 (B)        A series of six equal installment payments, with the first such payment to be made within thirty (30) days after the Exercise Date and the five remaining payments to be made on the
five anniversary dates of the Exercise Date, so that the full amount shall be paid as of the fifth anniversary of such Exercise Date. If the Company elects to pay the purchase price of the Option Stock under the installment method provided in this
clause (2), then the Company shall, within thirty (30) days after the Exercise Date, give the Qualified Holder who is exercising the put option the Company’s promissory note for the full unpaid balance of the option price. Such note
shall, at a minimum, provide adequate security (if required under applicable regulations), state a rate of interest reasonable under the circumstances (but at least equal to the imputed compound rate in effect as of the Exercise Date pursuant to the
regulations promulgated under Code Sections 483 or 1274, whichever shall be applicable) and provide that the full amount of such note shall accelerate and become due immediately in the event that the Company defaults in the payment of a
scheduled installment payment. 
 (v)      The put options under subparagraphs (ii)and
(iii) above shall be effective solely against the Company and shall not obligate the Plan in any manner; provided, however, with the Company’s consent, the Plan may elect to purchase any Company Stock that otherwise must be purchased by
the Company pursuant to a Qualified Holder’s exercise of any such option. 
 (vi)     If at
the time of any distribution of said Company Stock it is known that any applicable Federal or State law would be violated by the Company’s honoring of such a put option as provided under this Section, the Company shall designate another entity
that will honor such put option. Such other entity shall be one having a substantial net worth at the time such loan is made and whose net worth is reasonably expected to remain substantial. 
 (vii)    In the event that a Qualified Holder is unable to exercise the put option provided hereunder because the
Company (or other entity bound by such put option) is prohibited from honoring it by reason of any applicable Federal or State law, then the sixty (60) day option periods during which such put option is exercisable under subparagraphs (ii)
and (iii) shall not include any such time during which said put option may not be exercised due to such reason. 
 (viii)   Except as is expressly provided herein above with respect to any distributed Company Stock that is readily tradeable stock within the meaning of 

  

 26 

 
Code Section 409(h), no Participant shall have any put option rights with respect to Company Stock distributed under the Plan, and neither the Company
nor the Plan shall have any obligation whatsoever to purchase any such distributed Company Stock from any Participant or other Qualified Holder. 
 (ix)     At the time of distribution of Company Stock that is not readily tradable stock within the meaning of Code Section 409(h), to a Participant or Beneficiary, the Company shall
furnish to such Participant or Beneficiary the most recent annual certificate of value prepared by the Company with respect to such Stock. In addition, the Company shall furnish to such Participant or Beneficiary a copy of each subsequent annual
certificate of value until the put options provided for in this Section with respect to such distributed Company Stock shall expire. 
 (b)        Notwithstanding any other provisions of the Plan regarding a Participant’s right to exercise a put option, the put option described in paragraph (a) above
shall be subject to the following additional provisions: 
 (i)      If the distribution
constitutes a Total Distribution (as defined below), in the event that a Qualified Holder exercises a put option under this Section, then the Company shall have the right to pay the purchase price of the Option Stock under either of the following
methods: 
 (A)        A lump sum payment of the purchase price within
thirty (30) days after the Exercise Date; or 
 (B)        A series of five
substantially equal annual payments with the first such payment to be made within thirty (30) days after the Exercise Date. If the Company elects to pay the purchase price of the Option Stock under the installment method provided in this
clause (2), then the Company shall, within 30 days after the Exercise Date, give the Qualified Holder who is exercising the put option the Company’s promissory note for the full unpaid balance of the option price. Such note shall, at a
minimum, provide adequate security, state a rate of interest reasonable under the circumstances (but at least equal to the imputed compound rate in effect as of the Exercise Date pursuant to the regulations promulgated under Code Sections 483
or 1274, whichever shall be applicable) and provide that the full amount of such note shall accelerate and become due immediately in the event that the Company defaults in the payment of a scheduled installment payment. 
 (ii)     If the distribution does not constitute a Total Distribution (as defined below), in the event that a
Qualified Holder exercises a put option under this Section, then the Company shall pay the purchase price of the Option Stock in a lump sum within thirty (30) days after the Exercise Date. 
  

 27 

 For purposes of this Section, “Total Distribution” shall mean a distribution to
a Participant (or his or her Beneficiary, if applicable) within one taxable year of such recipient of the entire balance to the credit of the Participant. 
 (c)        This Section shall be applied to any securities of the Company held by the Plan to the extent required under Code Section 401(a)(23) and the regulations issued
thereunder and its provisions shall be interpreted and applied in accordance with all applicable requirements of Code Section 409(h) and the regulations issued thereunder. 
 5.12.      Diversification Rule. 
 (a)        For the purpose of Section 5.12 only, the following definitions shall apply:

 (i)      “Qualified Participant” shall mean a Participant who is fully vested in
his or her ESOP Account as determined under Section 5.2. 
 (ii)     “Insider” shall
mean any Participant who is directly or indirectly the beneficial owner of more than 10% of any class of any equity security (other than an exempted security) of the Sponsor (or the Company) which is registered pursuant to Section 12 of the
Securities Exchange Act of 1934, or who is a “director” or an “officer” of the sponsor or the Company as those terms are interpreted under the Securities Exchange Act of 1934 for the purpose of determining persons subject to
Section 16 of such Act. 
 (b)        Effective as of September 1, 2002 or
as soon as administratively practicable thereafter, a Participant may elect to diversify his or her ESOP Account as follows: 
 (i)      Any Participant who is a Qualified Participant may elect to diversify up to 50% of the Company Stock allocated to his or her ESOP Account. 
 (ii)     The number of shares of Company Stock that may be diversified shall be determined by applying the
diversification percentage of 50% to the total number of shares allocated to a Participant’s ESOP Account and reducing such number by the number of shares of Company Stock previously diversified under this Section. 
 (c)        Notwithstanding the foregoing, effective as of January 1, 2002 and ending on the
effective date of the diversification rules set forth in subsection (b) above, a Participant may elect to diversify his or her ESOP Account as follows: 
 (i)      Any Participant who is a Qualified Participant as of December 31, 2001 may elect to
diversify up to 50% of the Company Stock allocated to his or her ESOP Account in accordance with the following schedule that increases the Diversification Percentage over the following three Plan Years: 
  

 28 

			
	      Plan Year	  	Diversification Percentage
		
	 2002
	  	up to 25%
	 2003
	  	up to 40%
	 2004 and thereafter
	  	up to 50%

 (ii)     Any Participant who becomes a Qualified
Participant on or after January 1, 2002 may elect to diversify up to 50% of the Company Stock allocated to his or her ESOP Account in accordance with the following schedule that increases the Diversification Percentage over the following three
Plan Years: 
  

			
	      Plan Year	  	Diversification Percentage
		
	 Plan Year after becoming a Qualified Participant
	  	up to 25%
	 Next succeeding Plan Year
	  	up to 40%
	 Next succeeding Plan Year and thereafter
	  	up to 50%

 (iii)    The number of shares of Company Stock that may be
diversified in any given Plan Year shall be determined by applying the Diversification Percentage in the above schedules to the total number of shares allocated to a Participant’s ESOP Account as of the beginning of the Plan Year and reducing
such number by the number of shares of Company Stock previously diversified under this Section. 
 (d)        For Plan Years prior to the 2002 Plan Year, each Qualified Participant shall be permitted to direct the Plan as to the diversification of 25 percent of the value of the vested portion of
the Participant’s ESOP Account within 90 days after the last day of each Plan Year during the Participant’s Qualified Election Period. For the purpose of this paragraph (d), the term “Qualified Participant” means a Participant
who has attained age 55 and who has completed at least 10 years of participation in the Plan and the term “Qualified Election Period” shall mean the six Plan Year period beginning with the Plan Year in which the Participant first
becomes a Qualified Participant. Within 90 days after the close of the last Plan Year in the Participant’s Qualified Election Period, a Qualified Participant may direct the Plan as to the diversification of 50 percent of the value of the vested
portion of such ESOP Account. Upon such direction by a Qualified Participant, the Plan shall transfer to the Allergan, Inc. Savings and Investment Plan (the “SIP”) that portion of the Participant’s ESOP Account that is covered by the
election within 90 days after the last day of the period during which the election can be made which shall be allocated to a rollover account maintained on behalf of the Qualified Participant. Under the SIP, the Qualified Participant may invest the
amount so transferred under any of the investment options available under the SIP or may direct that the amount so transferred be distributed to him or her. 
  

 29 

 (e)        A Qualified Participant who elects to
diversify his or her ESOP Account as provided under this Section shall do so by transferring diversified amounts to any of the investment funds currently offered and currently available to Participants as determined by the Committee pursuant to
Section 6.3(c); provided, however, that any allocations among the investment funds shall be made in 1% increments. Any election to diversify shall be effective as soon as administratively feasible and subject to paragraph (f) below. A
Qualified Participant shall effect a diversification election under procedures established by the Committee for this purpose. 
 (f)        For purposes of this Section and consistent with the requirements of Code Section 401(a)(28) if applicable, a Qualified Participant who is an Insider may only elect to diversify his or
her ESOP Account if within six (6) months before the Participant’s election, he or she has not made an election under the Allergan, Inc. Savings and Investment Plan or the provision of any company plan covered by Rule 16b-3
(promulgated pursuant to the Securities Exchange Act of 1934) then in existence that would result in the transfer into a Company equity securities fund. 
 5.13.      Lapsed Benefits. 
 (a)        In the event that a Participant’s ESOP Account is payable under the Plan and after reasonable efforts the Participant cannot be located for the purpose of paying his or her ESOP
Account during a period of three consecutive years, the Participant shall be presumed dead and his or her ESOP Account shall, upon the expiration of that three year period, be paid to the Participant’s Beneficiary. If the Participant’s
Beneficiary cannot be located for the purpose of paying the Participant’s ESOP Account for the following two years, then the Participant’s ESOP Account shall, upon expiration of such two-year period, be forfeited and reallocated to the
ESOP Accounts of other Participants as provided in Section 4.3. 
 (b)        If
a Participant dies prior to receiving a distribution of the entire vested portion of his or her ESOP Account (other than a Participant presumed to have died as provided above) and if after reasonable efforts the Beneficiary of the Participant cannot
be located for the purpose of paying the Participant’s ESOP Account during a period of five consecutive years, the benefit shall, upon expiration of such five-year period, be forfeited and reallocated to the ESOP Accounts of the other
Participants as provided in Section 4.3. 
 (c)        For purposes of this
Section, the term “Beneficiary” shall include any person entitled under Section 5.8 to receive the vested interest of a deceased Participant or deceased designated Beneficiary. It is the intention of this Section that during the
relevant waiting period (two years or five years) the vested portion of a Participant’s ESOP Account shall be distributed to a Beneficiary in a lower priority category under Section 5.8 if no Beneficiary in a higher priority category can
be located by the Committee after reasonable efforts have been made. 
  

 30 

 (d)        Notwithstanding the foregoing rules,
if after such a forfeiture the Participant or a Beneficiary claims the forfeited ESOP Account, the amount forfeited shall be reinstated (without regard to any interest or investment earnings on such amount) and paid to the Participant or Beneficiary
as soon as practical following the production of reasonable proof of the identity of the Participant or Beneficiary and his or her entitlement to the amounts forfeited (determined pursuant to the Plan’s normal claim procedures under
Section 7.10). 
 (e)        The Committee shall direct the Trustee with respect
to the procedures to be followed concerning a missing Participant (or Beneficiary), and the Company shall be obligated to contribute to the Trust Fund any amounts necessary after the application of Section 4.3 to pay any reinstated benefit
after it has been forfeited pursuant to the provisions of this Section. 
  

 31 

 ARTICLE VI 
 TRUST FUND AND INVESTMENTS 
 6.1.        General.    All contributions made under the Plan and investments made and property of any kind or character acquired with any such funds or otherwise
contributed, and all income, profits, and proceeds derived therefrom, shall be held in Trust and shall be held and administered by the Trustee in accordance with the provisions of the Plan and Trust Agreement. 
 6.2.        Single Trust.    Assets of the Trust shall be held in a separate fund
which shall consist of the Trust Fund. Individual Participant interests in the Trust Fund shall be reflected in the ESOP Accounts maintained for the Participants. Notwithstanding the foregoing, the Trust Fund shall be treated as a single trust for
purposes of investment and administration, and nothing contained herein shall require a physical segregation of assets for any fund or for any Account maintained under the Plan. 
 6.3.        Investment of the Trust. 
 (a)        Subject to paragraph (c) below and Sections 6.4 and 5.12 hereof, the Trust
Fund shall be invested primarily in Company Stock and neither the Company nor the Committee nor the Trustee shall have any responsibility or duty to time any transaction involving Company Stock, in order to anticipate market conditions or changes in
stock value, nor shall any such person have any responsibility or duty to sell Company Stock held in the Trust Fund (or otherwise to provide investment management for Company Stock held in the Trust Fund) in order to maximize return or minimize
loss. The Committee may direct the Trustee to have the Plan enter into one or more Exempt Loans to finance the acquisition of Company Stock for the Trust Fund. Company contributions in cash, and other cash received or held by the Trustee, may be
used to acquire shares of Company Stock from the Company, Company shareholders, from the ESOP Accounts of Participants about to receive distributions under the Plan, or on the open market. 
 (b)        Notwithstanding anything contained herein to the contrary, proceeds of an Exempt Loan
shall be used, within a reasonable time after receipt by the Trust, only for the following purposes: 
 (i)      to acquire Company Stock; 
 (ii)     to repay the
same Exempt Loan; or 
 (iii)    to repay any previous Exempt Loan. 
 An Exempt Loan shall be repaid only from amounts loaned to the Trust and the proceeds of such loans, from Company contributions in cash
and earnings attributable thereto, from any collateral given for the loan (including, in the case where the Exempt Loan is a refinancing of a prior Exempt Loan, unallocated Company Stock acquired with 

  

 32 

 
the proceeds of the prior Exempt Loan), and from dividends paid on Company Stock acquired with proceeds of the Exempt Loan. Except as provided in
Section 5.11 or as otherwise required by applicable law, no Company Stock acquired with the proceeds of an Exempt Loan may be subject to a put, call, or other option or buy-sell or similar arrangement while held by and when distributed from the
Plan. 
 (c)        Notwithstanding paragraph (a) above, the Committee may
establish separate investment funds under the Plan, with each fund representing an investment alternative available to Participants for the investment of their ESOP Accounts as provided in paragraph (d) below and Section 5.12. Each
Participant shall have a subaccount under the Plan corresponding to the Participant’s interest which is allocated to each investment fund. Each such subaccount may be valued separately. The manner in which assets of the Trust shall be invested
in such investment funds, including the establishment of alternative investment funds, the elimination of any previously established funds, or the placement of limitations on the availability of an investment fund to Participants, shall be chosen by
the Committee at its discretion. Amounts invested in any one of the investment funds shall not share in gains and losses experienced by any other fund. Notwithstanding the establishment of separate investment funds within the Trust, the Trust shall
at all times constitute a single trust. 
 (d)        A Participant may elect at any
time to transfer any cash or other property, including shares of Advanced Medical Optics, Inc. (“non-Company Stock assets”) or amounts previously diversified under Section 5.12, accumulated in his or her ESOP Account among any of the
investment funds currently offered and currently available to Participants as determined by the Committee pursuant to paragraph (c) above; provided, however, the total amount transferred shall be made in 1% increments of the amount accumulated
in such funds. Any transfer among investment funds shall be effective as soon as administratively feasible. A Participant shall effect a transfer election under procedures established by the Committee for this purpose. 
 (e)        Notwithstanding anything in the Plan to the contrary, the following additional
transfer restrictions shall apply to all Participants who are Insiders as defined in Section 5.12. 
 (i)      Any Insider who transfers amounts invested in Company Stock and into another fund or withdraws cash in a transaction that results in the liquidation of Company Stock (pursuant to Sections 5.7 or to the
extent applicable under Section 5.12), may not for a period of six months following the Participant’s election to so transfer funds or withdraw cash, as the case may be, make an election to transfer amounts from another fund and invest in
Company Stock. 
 (ii)     Any Insider who transfers amounts invested in a non-Company Stock fund
to invest in Company Stock, may not for a period of six months following the Participant’s election to so transfer funds make an election to (1) sell Company Stock and transfer the proceeds to another fund, (2) withdraw 

  

 33 

 
cash that results in the liquidation of Company Stock or (3) make a diversification election under Section 5.12 subject to the requirements of Code
Section 401(a)(28), if applicable or (4) utilize the Allergan Inc. Savings and Investment Plan or the provision of any Company plan covered by Rule 16b-3 (promulgated pursuant to the Exchange Act) then in existence that would result in the
transfer out of a Company equity securities fund. 
 (f)        It is intended that
to the extent a Participant may diversify or direct the investment of his or her ESOP Account under the Plan that the Plan constitute a plan described in Section 404(c) of ERISA and the regulations thereunder, and neither the Company,
Committee, nor any fiduciary with respect to the Plan who is employed by the Company shall be liable for investment losses sustained by any Participant or Beneficiary as a direct and necessary result of the investment instructions given by such
Participant or Beneficiary. Such fiduciaries set forth in the preceding sentence shall be under no duty to question the investment direction of the Participant or Beneficiary or to advise a Participant or Beneficiary as to the manner in which his or
her ESOP Account is to be invested. The fact that an investment option is offered shall not be construed to be a recommendation of investment. 
 (g)        On June 29, 2002, Allergan spun-off AMO and distributed the stock of AMO (referred to in the Plan as “AMO Stock”) to its shareholders. The following
provisions of the Plan shall apply to AMO Stock as if the term “AMO Stock” was substituted for the term “Company Stock”: Section 6.4 (Certain Offers for Company Stock); Section 6.5 (Securities Law Limitation);
Section 6.7 (Dividends); Section 6.14 (Appointment of Investment Manager); Section 7.1 (Appointment of Committee); Section 7.2 (Appointment of Investment Subcommittee); Section 7.7 (Additional Powers of Committee);
Section 7.8 (Investment Subcommittee Powers); Section 7.14 (Compensation of Committees and Plan Expenses); and Section 7.16 (Voting of Company Stock), as applicable. 
 6.4.        Certain Offers for Company Stock.    Notwithstanding any other provision
of the Plan to the contrary, in the event an offer shall be received by the Trustee (including but not limited to a tender offer or exchange offer within the meaning of the Securities Exchange Act of 1934, as from time to time amended and in effect)
to acquire any or all shares of Company Stock held by the Trust (an “Offer”), whether or not such Company Stock is allocated to Participants’ ESOP Accounts, the discretion or authority to sell, exchange or transfer any of such shares
of Company Stock shall be determined in accordance with the following rules: 
 (a)        The Trustee shall have no discretion or authority to sell, exchange or transfer any Company Stock pursuant to an Offer except to the extent, and only to the extent that the Trustee is
timely directed to do so in writing (i) with respect to any Company Stock held by the Trustee subject to such Offer and allocated to any Participant’s ESOP Account, by each Participant to whose ESOP Account any of such Company Stock is
allocated and (ii) with respect to any Company Stock held by the Trustee subject to such Offer and not allocated to any Participant’s ESOP Account, by 

  

 34 

 
each Participant who is an Eligible Employee with respect to a number of shares (including fractional shares) of such unallocated Company Stock equal to the
total number of shares of such unallocated Company Stock multiplied by a fraction the numerator of which is the annualized Compensation of such Participant for the calendar year in which such Offer is made and the denominator of which is the total
annualized Compensation for the calendar year in which such Offer is made of all such Participants who are Eligible Employees. 
 (b)        To the extent there remains any residual fiduciary responsibility with respect to Company Stock pursuant to an Offer after application of paragraph (a) above, the Trustee shall sell,
exchange or transfer such Company Stock as directed by the Committee or as directed by an independent fiduciary if duly appointed by the Sponsor. To the extent the Committee or an independent fiduciary is required to exercise any residual fiduciary
responsibility with respect to an Offer, the Committee or independent fiduciary shall take into account in exercising its fiduciary judgment, unless it is clearly imprudent to do so, directions timely received from Participants, as such directions
are most indicative of what action is in the best interests of Participants. Further, the Committee or independent fiduciary, in addition to taking into consideration any relevant financial factors bearing on any such decision, shall take into
consideration any relevant non-financial factors, including, but not limited to, the continuing job security of Participants as employees of the Sponsor or any Affiliated Company, conditions of employment, employment opportunities and other similar
matters, and the prospect of the Participants and prospective Participants for future benefits under the Plan (including any subsequent release and allocation of Company Stock held in the Exempt Loan Suspense Subfund). 
 (c)        Upon timely receipt of such instructions, the Trustee shall, subject to the provisions
of paragraphs (e) and (o) of this Section, sell, exchange or transfer pursuant to such Offer, only such shares as to which such instructions were given. The Committee shall use its best efforts to communicate or cause to be communicated to
each Participant the consequences of any failure to provide timely instructions to the Trustee. 
 (d)        In the event, under the terms of an Offer or otherwise, any shares of Company Stock tendered for sale, exchange or transfer pursuant to such Offer may be withdrawn from such Offer, the
Trustee shall follow such instructions respecting the withdrawal of such shares from such Offer in the same manner and the same proportion as shall be timely received by the Trustee from the Participants entitled under this Section to give
instructions as to the sale, exchange or transfer of shares pursuant to such Offer. 
 (e)        In the event that an Offer for fewer than all of the shares of Company Stock held by the Trustee in the Trust shall be received by the Trustee, each Participant shall be entitled to direct
the Trustee as to the acceptance or rejection of such Offer (as set forth herein) with respect to the largest portion of such Company Stock as may be possible given the total number or amount of shares of Company Stock the Plan may sell, exchange or
transfer pursuant to the Offer based upon the instructions received by the 

  

 35 

 
Trustee from all other Participants who shall timely instruct the Trustee pursuant to this paragraph to sell, exchange or transfer such shares pursuant to
such Offer, each on a pro rata basis in accordance with the maximum number of shares each such Participant would have been permitted to direct under paragraph (a) had the Offer been for all shares of Company Stock held in the Trust.

 (f)        In the event an Offer is received by the Trustee and instructions have
been solicited from Participants regarding such Offer, and prior to termination of such Offer, another Offer is received by the Trustee for the Company Stock subject to the first Offer, the Trustee shall inform the Committee of such other Offer and
the Committee shall use its best efforts under the circumstances to solicit instructions from the Participants (i) with respect to securities tendered for sale, exchange or transfer pursuant to the first Offer, whether to withdraw such tender,
if possible, and, if withdrawn, whether to tender any Company Stock so withdrawn for sale, exchange or transfer pursuant to the second Offer and (ii) with respect to Company Stock not tendered for sale, exchange or transfer pursuant to the
first Offer, whether to tender or not to tender such Company Stock for sale, exchange or transfer pursuant to the second Offer. The Trustee shall follow all such instructions received in a timely manner from Participants in the same manner and in
the same proportion as provided in paragraph (a) of this Section. With respect to any further Offer for any Company Stock received by the Trustee and subject to any earlier Offer (including successive Offers from one or more existing offers),
the Trustee shall act in the same manner as described above. 
 (g)        With
respect to any Offer received by the Trustee, the Trustee shall inform the Sponsor of such Offer and the Sponsor shall distribute, at its expense, copies of all relevant material including but not limited to material filed with the Securities and
Exchange Commission with such Offer or regarding such Offer, which shall seek confidential written instructions from each Participant who is entitled to respond to such Offer pursuant to paragraph (a). The identities of Participants, the amount of
Company Stock allocated to their ESOP Accounts, and the Compensation of each Participant shall be determined from the list of Participants delivered to the Sponsor by the Committee which shall take all reasonable steps necessary to provide the
Sponsor with the latest possible information. 
 (h)        The Sponsor shall
distribute and/or make available to each Participant who is entitled to respond to an Offer pursuant to paragraphs (a), an instruction form to be used by each such Participant who wishes to instruct the Trustee. The instruction form shall state that
(i) if the Participant fails to return an instruction form to the Trustee by the indicated deadline, the Company Stock with respect to which he or she is entitled to give instructions shall not be sold, exchanged or transferred pursuant to such
Offer unless the Trustee is directed otherwise as provided in paragraph (b) above, (ii) the Participant shall be a named fiduciary (as described in paragraph (m) below) with respect to all shares of Company Stock for which he or she
is entitled to give instructions, and (iii) the Company acknowledges and agrees to honor the confidentiality of the Participant’s instructions to the Trustee. 
  

 36 

 (i)        Each Participant may choose to
instruct the Trustee in one of the following two ways: (i) not to sell, exchange or transfer any shares of Company Stock for which he or she is entitled to give instructions, or (ii) to sell, exchange or transfer all Company Stock for
which he or she is entitled to give instructions. The Sponsor shall follow up with additional mailings and postings of bulletins, as reasonable under the time constraints then prevailing, to obtain instructions from Participants not otherwise
responding to such requests for instructions. Subject to paragraph (e), the Trustee shall then sell, exchange or transfer shares according to instructions from Participants, except that shares for which no instructions are received shall not be
sold, exchanged or transferred unless directed otherwise as provided in paragraph (b) above. 
 (j)        The Sponsor shall furnish former Participants who have received distributions of Company Stock so recently as to not be shareholders of record with the information given to Participants
pursuant to paragraphs (g), (h) and (i) of this Section. The Trustee shall then sell, exchange or transfer shares according to instructions from such former Participants, except that shares for which no instructions are received shall
not be sold, exchanged or transferred. 
 (k)        Neither the Company, the
Committee nor the Trustee shall express any opinion or give any advice or recommendation to any Participant concerning the Offer, nor shall they have any authority or responsibility to do so. 
 (l)        The Trustee shall not reveal or release a Participant’s instructions to the
Company, its officers, directors, employees, or representatives. If some but not all Company Stock held by the Trust is sold, exchanged, or transferred pursuant to an Offer, the Company, with the Trustee’s cooperation, shall take such action as
is necessary to maintain the confidentiality of Participant’s records including, without limitation, establishment of a security system and procedures which restrict access to Participant records and retention of an independent agent to
maintain such records. If an independent record keeping agent is retained, such agent must agree, as a condition of its retention by the Sponsor, not to disclose the composition of any Participant ESOP Accounts to the Company, its officers,
directors, employees, or representatives. The Company acknowledges and agrees to honor the confidentiality of Participants’ instructions to the Trustee. 
 (m)        Each Participant shall be a named fiduciary (as that term is defined in
Section 402(a)(2) of ERISA) with respect to Company Stock allocated to his or her ESOP Account under the Plan and with respect to his or her pro-rata portion of the unallocated Company Stock for which he or she is entitled to issue instructions
in accordance with paragraph (a) of this Section solely for purposes of exercising the rights of a shareholder with respect to an Offer pursuant to this Section 6.4 and voting rights pursuant to Section 7.16. 
  

 37 

 (n)        To the extent that an Offer results in
the sale of Company Stock in the Trust and allocated to the ESOP Accounts of Participants, the Committee shall instruct the Trustee as to the investment of the proceeds of such sale. To the extent that an Offer results in the sale of Company Stock
in the Trust and not allocated to the ESOP Accounts of any Participant, the proceeds from such sale shall first be applied to repay the fullest extent possible, all Exempt Loans then outstanding. To effect such repayment, the Trustee shall seek such
consents and approvals from lenders under any Exempt Loans as may be necessary or convenient to permit the tender of shares of Company Stock held in the Exempt Loan Suspense Subfund. To the extent that proceeds from the sale of shares held in the
Exempt Loan Suspense Subfund exceed the outstanding principal and interest of all Exempt Loans, such excess proceeds shall be allocated to each Eligible Participant’s (as defined in Section 4.2(d)) Non-Stock Subaccount in the same manner
as allocations under Section 4.2(a); provided, however, that only an Eligible Participant who is employed on the date of the closing of the sale pursuant to the Offer shall be deemed an Eligible Participant entitled to an allocation of excess
sale proceeds for purposes of this Section 6.4(n) only. To the extent that less than all of the shares of Company Stock held in the Exempt Loan Suspense Subfund are tendered in an Offer and repayment of an Exempt Loan results in a release of
shares of Company Stock from the Exempt Loan Suspense Subfund in excess of those tendered in such Offer, the excess released shares of Company Stock shall be allocated to each Eligible Participant’s ESOP Account in the same manner as
allocations under Section 4.2(c); provided, however, that only an Eligible Participant who is employed on the date of the closing of the sale pursuant to the Offer shall be deemed an Eligible Participant entitled to an allocation of Company
Stock for purposes of this Section 6.4(n) only. To the extent that allocations to Eligible Participants under this Section 6.4(n) constitute Annual Additions, all such allocations shall be subject to the limitations set forth in
Article XI hereof. Any allocations to which Eligible Participants would be entitled under this Section 6.4(n) but for the limitations of Article XI, shall be held in the 415 Suspense Account and allocated to Eligible Participants in
accordance with Article XI. 
 (o)        In the event a court of competent
jurisdiction shall issue to the Plan, the Committee, the Sponsor or the Trustee an opinion or order, which shall, in the opinion of counsel to the Committee, the Sponsor or the Trustee, invalidate, in all circumstances or in any particular
circumstances, any provision or provisions of this Section regarding the determination to be made as to whether or not Company Stock held by the Trustee shall be sold, exchanged or transferred pursuant to an Offer or cause any such provision or
provisions to conflict with securities laws, then, upon notice thereof to the Committee, the Sponsor or the Trustee, as the case may be, such invalid or conflicting provisions of this Section shall be given no further force or effect. In such
circumstances, the Trustee shall continue to follow instructions received from Participants, to the extent such instructions have not been invalidated by such order or opinion. To the extent the Trustee is required by such opinion or order to
exercise any residual fiduciary responsibility with respect to such Offer, the Sponsor shall appoint an independent fiduciary who shall exercise such residual fiduciary responsibility as provided in paragraph (b) above and 

  

 38 

 
shall direct the Trustee as to whether or not Company Stock held by the Trustee shall be sold, exchanged or transferred pursuant to such Offer. 

6.5.        Securities Law Limitation.    Neither the Committee nor the Trustee
shall be required to engage in any transaction, including without limitation, directing the purchase or sale of Company Stock, which either determines in its sole discretion might tend to subject itself, its members, the Plan, the Company, or any
Participant or Beneficiary to a liability under federal or state securities laws. 
 6.6.        Accounting and Valuations. 
 (a)        The following special accounting rules shall apply to the Trust Fund. 
 (i)      Each Participant’s ESOP Account shall consist of (1) a portion comprised of cash and all other assets except for Company Stock and AMO Stock (the “Non-Stock Subaccount”); (2) a
portion comprised solely of AMO Stock (the “AMO Subaccount”); and (3) a portion comprised solely of Company Stock (the “Stock Subaccount”). 
 (ii)     Gains or losses on Non-Stock Subaccounts shall be credited in accordance with this Section as if the
Non-Stock Subaccounts collectively constituted a separate pooled investment fund. 
 (iii)    Stock
Subaccounts shall be credited with a specific number of shares of Company Stock rather than an individual interest in a pool of Company Stock. 
 (iv)     AMO Subaccounts shall be credited with a specific number of shares of AMO Stock rather than an individual interest in a pool of AMO Stock. 
 (b)        Non-Stock Subaccounts may be invested in Company Stock from time to time, and Company
Stock so acquired shall be allocated among Stock Subaccounts in proportion to the amount debited to the corresponding Non-Stock Subaccounts. 
 (c)        As of each Valuation Date each Participant’s Non-Stock Subaccount shall be credited (debited) with the “allocable share” of the net income (loss) of
the non-Company Stock portion of the Trust Fund valued as of such Valuation Date in proportion to Non-Stock Subaccount balances. For this purpose, except as provided in Section 6.7, the net income (loss) of the Trust Fund shall not include any
income with respect to securities in the Exempt Loan Suspense Subfund acquired with the proceeds of an Exempt Loan. 
 (d)        In making valuations required by the Plan, the Trustee shall value all assets of the Trust at fair market value. Such fair market value shall be determined from facts reasonably available
to the Trustee. In making said determination, the Trustee may, 

  

 39 

 
but need not, select and rely upon the advice and opinions of appraisers, brokers, investment counsel, or any other persons believed by the Trustee to be
competent. Any determination of value so made shall, for all purposes of the Plan, conclusively establish such value. 
 (e)        If Company Stock is readily tradeable stock (as that term is used under Code Section 409(h)), valuation of each Participant’s Stock Subaccount shall, at any relevant times, be
worth the fair market value on that date of the shares of Company Stock credited to it. Valuations of any Company Stock held by the Trust which is not readily tradable stock shall be performed by an independent appraiser or valuation consultant.

 (f)        The Committee shall establish accounting procedures for the purpose of
making the allocations, valuations and adjustments to Participants’ ESOP Accounts provided for in Article VI hereof. Such accounting procedures shall include adequate records of the cost basis of Company Stock allocated to ESOP Accounts
and the identity of shares acquired with the proceeds of an Exempt Loan. From time to time, the Committee may modify its accounting procedures for the purpose of achieving equitable and nondiscriminatory allocations among the ESOP Accounts of
Participants in accordance with the provisions of the Plan. 
 (g)        In the
event any rights, warrants, or options are issued with respect to Company Stock held in Stock Subaccounts, the Committee shall direct the Trustee as to whether such rights, warrants, or options shall be exercised for such Subaccounts using cash as
may be available in corresponding Non-Stock Subaccounts. Company Stock so acquired shall be credited to corresponding Stock Subaccounts in proportion to the amount of cash withdrawn from the corresponding Non-Stock Subaccounts. A Participant shall
have no right to request, direct, or demand that the Trust exercise on his or her behalf rights to purchase Company Stock. 
 (h)        The Participants and their Beneficiaries shall assume all risks in connection with any decrease in the value of any assets invested in the Trust Fund which are allocated to their ESOP
Accounts. 
 (i)        Paragraphs (e) and (g) of this Section 6.6
shall apply to AMO Stock as if the term “AMO Stock” was substituted for the term “Company Stock” and the term “AMO Subaccount” was substituted for the term “Stock Subaccount,” as applicable. 
 6.7.        Dividends. 
 (a)        As determined by the Committee, dividends on shares of Company Stock allocated to ESOP
Accounts shall be either (i) applied to repay an Exempt Loan then outstanding; (ii) paid directly to Participants or Beneficiaries; or (iii) retained in the Trust and treated as net income of the Trust. Any resulting allocation shall
be made according to the following rules: 
  

 40 

 (i)      If cash dividends are used to repay an Exempt
Loan, the appropriate number of shares of Company Stock shall be released from the Exempt Loan Suspense Subfund pursuant to Section 4.2(b). Notwithstanding the foregoing, if the fair market value of the shares released pursuant to
Section 4.2(b) from the application of cash dividends to repay an Exempt Loan under this Section 6.7(a)(i) is less than such cash dividends, additional shares shall be released from the Exempt Loan Suspense Subfund until the fair market
value of such released shares equals the amount of such cash dividends. Such Company Stock shall be allocated to Participants’ Stock Subaccounts in proportion to the number of shares of Company Stock allocated to Participants’ Stock
Subaccounts for which such cash dividend was paid. 
 (ii)     If cash dividends are retained in
the Trust and are not used to pay expenses of the Plan, such dividends shall be allocated as of the date specified by the Committee to Non-Stock Subaccounts in proportion to the shares of Company Stock held in corresponding Stock Subaccounts for
which such dividends were distributed to the Trust. 
 (iii)    If stock dividends are retained in the
Trust and are not used to pay expenses of the Plan, such dividends shall be credited on the date specified by the Committee to Stock Subaccounts in proportion to the shares of Company Stock held in such Subaccounts for which such dividends were
distributed to the Trust. 
 (iv)     If the Committee determines that cash or stock dividends
shall be distributed directly to Participants or Beneficiaries, such dividends shall be distributed on the date specified by the Committee in proportion to the shares of Company Stock held in such Participant’s or Beneficiary’s Stock
Subaccount for which such dividends were distributed. 
 (v)     If cash dividends are received by
the Trust on or after January 1, 2002, such dividends to the extent received on shares of Company Stock allocable to a Participant’s ESOP Account shall be reinvested in Company Stock and held in such Participant’s or
Beneficiary’s Stock Subaccounts, or to the extent such dividends are vested, shall be distributed to the Participant or Beneficiary not later than 90 days after the close of the Plan Year in which such dividends are paid if so elected by
the Participant or Beneficiary. 
 (b)        As determined by the Committee,
dividends on shares of Company Stock held in the Exempt Loan Suspense Subfund or on shares of Company Stock contributed to the Trust Fund but not yet allocated to Participant’s ESOP Accounts shall be either (i) applied to repay an Exempt
Loan then outstanding or (ii) retained in the Trust. Any resulting allocation shall be made according to the following rules: 
  

 41 

 (i)      If cash or stock dividends are used to repay an
Exempt Loan, the appropriate number of shares of Company Stock shall be released from the Exempt Loan Suspense Subfund pursuant to Section 4.2(b). Such Company Stock shall be allocated to Participants Stock Subaccounts pursuant to
Section 4.2(c). 
 (ii)     If cash dividends are not used to repay an Exempt Loan, they shall
be considered income of the Trust and, if not used to pay expenses of the Plan, shall be allocated to Participants’ ESOP Accounts in proportion to their respective ESOP Account balances. 
 (iii)    If stock dividends are not used to repay an Exempt Loan or used to pay expenses of the Plan, they shall be
retained in the Exempt Loan Suspense Subfund until released from such Subfund pursuant to Section 4.2(b) and allocated to Participants Stock Subaccounts pursuant to Section 4.2(c). 
 6.8.        Non-Diversion of Trust Fund.    Except as hereinafter provided, all assets
of the Trust shall be held by the Trustee for the exclusive benefit of Plan Participants and Beneficiaries. At no time shall any part of the Trust be used for or diverted to purposes other than for the exclusive benefit of the Participants and
Beneficiaries under the Plan except as follows: 
 (a)        In the case of a
contribution which is made by a mistake of fact, that contribution at the Sponsor’s written request, shall be returned to the Company as directed by the Sponsor within one (1) year after it is made. 
 (b)        All contributions to the Trust are hereby conditioned upon the Plan satisfying all of
the requirements of Code Section 401(a), as evidenced by the issuance by the Internal Revenue Service of a favorable determination letter with respect to the Plan. If the Plan does not qualify, the Plan may be revoked at the Sponsor’s
written election, and any or all such contributions with respect to the portion revoked may be returned to the Company within one year after the date of the Internal Revenue Service’s denial of the qualification of the Plan or a portion
thereof. Upon such a revocation the affairs of the Plan and Trust shall be terminated and wound up as the Sponsor shall direct. 
 (c)        Contributions to the Trust Fund are conditioned on deductibility under Code Section 404. To the extent a deduction is disallowed and at the Sponsor’s written request, such
contributions shall be returned to the Company as directed by the Sponsor within one year after the disallowance. 
 (d)        The residue of the 415 Suspense Account that cannot be allocated to Participants upon a Plan termination shall revert to the Company as directed by the Sponsor in accordance with the
provisions of Section 11.6. 
 6.9.        Company, Committee and Trustee Not Responsible for
Adequacy of Trust Fund.    Neither any member of the Committee, any Trustee nor the Company shall be liable or 

  

 42 

 
responsible for the adequacy of the Trust to meet and discharge any or all payments and liabilities hereunder. All Plan benefits will be paid only from the
Trust assets, and neither any member of the Committee, any Trustee, nor the Company shall have any duty or liability to furnish the Trust with any funds, securities or other assets except as expressly provided in the Plan. Except as required under
the Plan or Trust or under Part 4 of Subtitle B, Title I of ERISA, the Company shall not be responsible for any decision, act, or omission of a Trustee or a member of the Committee or any Investment Manager (if applicable), or responsible for
the application of any moneys, securities, investments, or other property paid or delivered to the Trustee. 
 6.10.      Distributions.    Money and property of the Trust shall be paid out, disbursed, or applied by the Trustee for the benefit of Participants and Beneficiaries under the Plan
in accordance with directions received by the Trustee from the Committee. Upon direction of the Committee, the Trustee may pay money or deliver property from the Trust for any purpose authorized under the Plan. The Trustee shall be fully protected
in paying out money or delivering property from the Trust from time to time upon written order of the Committee and shall not be liable for the application of such money or property by the Committee. 
 The Trustee shall not be required to determine or to make any investigation to determine the identity or mailing address of any person entitled to
benefits hereunder and shall have discharged its obligation in that respect when it shall have sent checks or other property by first-class mail to such persons at their respective addresses as may be certified to it by the Committee. 
 6.11.      Taxes.    If the whole or any part of the Trust, or the proceeds thereof, shall
become liable for the payment of any estate, inheritance, income or other tax, charge, or assessment which the Trustee shall be required to pay, the Trustee shall have full power and authority to pay such tax, charge, or assessment out of any moneys
or other property in its hands for the account of the person whose interests hereunder are so liable, but at least ten (10) days prior to making any such payment, the Trustee shall mail notice to the Committee of its intention to make such
payment. Prior to making any transfers or distributions of any of the Trust, the Trustee may require such releases or other documents from any lawful taxing authority as it shall deem necessary. 
 6.12.      Trustee Records to be Maintained.     The Trustee shall keep accurate and detailed
accounts of all investments, receipts, disbursements, and other transactions hereunder, and all accounts, books, and records relating thereto shall be open to inspection and audit at all reasonable times by any person designated by the Company
(subject to the provisions of Sections 6.4(1) and 7.13(c)). 
 6.13.      Annual Report of
Trustee.    Promptly following the close of each Plan Year (or such other period as may be agreed upon between the Trustee and Committee), or promptly after receipt of a written request from the Company, the Trustee shall
prepare for the Company a written account which will enable the Company to satisfy the annual financial reporting requirements of ERISA, and which will set forth among other things all investments, receipts, disbursements, and other transactions
effected by the Trustee during such Plan Year or during the 

  

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period from the close of the last Plan Year to the date of such request. Such account shall also describe all securities and other investments purchased and
sold during the period to which it refers, the cost of acquisition or net proceeds of sale, the securities and investments held as of the date of such account, and the cost of each item thereof as carried on the books of the Trustee. All accounts so
filed shall be open to inspection during business hours by the Company, the Committee, and by Participants and Beneficiaries of the Plan (subject to the provisions of Sections 6.4(1) and 7.13(c)). 
 6.14.      Appointment of Investment Manager.    From time to time the Committee, in accordance
with Section 7.7 hereof, may appoint one or more Investment Managers who shall have investment management and control over assets of the Trust not invested or to be invested in Company Stock. The Committee shall notify the Trustee of such
assets of the appointment of the Investment Manager. In the event more than one Investment Manager is appointed, the Committee shall determine which assets shall be subject to management and control by each Investment Manager and shall also
determine the proportion in which funds withdrawn or disbursed shall be charged against the assets subject to each Investment Manager’s management and control. As shall be provided in any contract between an Investment Manager and the
Committee, such Investment Manager shall hold a revocable proxy with respect to all securities which are held under the management of such Investment Manager pursuant to such contract (except for Company Stock), and such Investment Manager shall
report the voting of all securities subject to such proxy on an annual basis to the Committee. 
  

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 ARTICLE VII 
 OPERATION AND ADMINISTRATION 
 7.1.        Appointment of Committee.    There is hereby created a committee (the “Committee”) which shall exercise such powers and have such duties in
administering the Plan as are hereinafter set forth. The Board of Directors shall determine the number of members of such Committee. The members of the Committee shall be appointed by the Board of Directors and such Board shall from time to time
fill all vacancies occurring in said Committee. The members of the Committee shall constitute the Named Fiduciaries of the Plan within the meaning of Section 402(a)(2) of ERISA; provided that solely for purposes of Section 6.4 hereof,
Participants shall be Named Fiduciaries with respect to shares of Company Stock for which they have the right to sell, transfer, or exchange pursuant to Section 6.4 and solely for purposes of Section 7.16, Participants shall be Named
Fiduciaries with respect to shares of Company Stock on matters as to which they are entitled to provide voting directions pursuant to Section 7.16. 
 7.2.        Appointment of Investment Subcommittee.    There is hereby created an investment subcommittee of the Committee (hereinafter referred to as
the “Investment Subcommittee” for purposes of this Article VII) which shall exercise management and control over the assets of the Trust. The Board of Directors, acting through its Organization and Compensation Committee, shall
determine the number of members of the Investment Subcommittee. The members of the Investment Subcommittee shall be appointed by the Board of Directors, acting through its Organization and Compensation Committee, and shall from time to time appoint
such members to or fill any vacancies in the Investment Subcommittee. The members of the Investment Subcommittee shall constitute the Named Fiduciaries of the Plan within the meaning of Section 402(a)(2) of ERISA with respect to the management
and control of the assets of the Trust; provided that solely for purposes of Section 6.4 hereof, Participants shall be Named Fiduciaries with respect to shares of Company Stock for which they have the right to sell, transfer, or exchange
pursuant to Section 6.4 and solely for purposes of Section 7.16, Participants shall be Named Fiduciaries with respect to shares of Company Stock on matters as to which they are entitled to provide voting directions pursuant to
Section 7.16. 
 7.3.        Transaction of Business.    The
Committee and Investment Subcommittee shall transact business as provided in paragraphs (a) and (b), respectively: 
 (a)        A majority of the Committee shall constitute a quorum for the transaction of business. Actions of the Committee may be taken either by vote at a meeting or in writing without a meeting. All
action taken by the Committee at any meeting shall be by a vote of the majority of those present at such meeting. All action taken in writing without a meeting shall be by a vote of the majority of those responding in writing. All notices, advices,
directions and instructions to be transmitted by the Committee shall be in writing and signed by or in the name of the Committee. In all its communications with the Trustee, the Committee may, by either of the majority actions specified above,
authorize any one or more of its members to execute any document or documents on behalf of the Committee, in which event it shall notify the Trustee in writing of such 

  

 45 

 
action and the name or names of its members so designated and the Trustee shall thereafter accept and rely upon any documents executed by such member or
members as representing action by the Committee until the Committee shall file with the Trustee a written revocation of such designation. 
 (b)        A majority of the Investment Subcommittee shall constitute a quorum for the transaction of business. Actions of the Investment Subcommittee may be taken either by
vote at a meeting or in writing without a meeting. All action taken by the Investment Subcommittee at any meeting shall be by a vote of the majority of those present at such meeting. All action taken in writing without a meeting shall be by a vote
of the majority of those responding in writing. All notices, advices, directions and instructions to be transmitted by the Investment Subcommittee shall be in writing and signed by or in the name of the Investment Subcommittee. In all its
communications with the Trustee, the Investment Subcommittee may, by action specified above, authorize any one or more of its members to execute any document or documents on behalf of the Investment Subcommittee, in which event it shall notify the
Trustee in writing of such action and the name or names of its members so designated and the Trustee shall thereafter accept and rely upon any documents executed by such member or members as representing action by the Investment Subcommittee until
the Investment Subcommittee shall file with the Trustee a written revocation of such designation. 
 7.4.        Voting.    Any member of the Committee who is also a Participant hereunder shall not be qualified to act or vote on any matter relating solely to himself or
herself, and upon such matter his or her presence at a meeting shall not be counted for the purpose of determining a quorum. If, at any time a member of the Committee is not so qualified to act or vote and the qualified members of the Committee
shall be reduced below two (2), the Board of Directors shall promptly appoint one or more special members to the Committee so that there shall be at least one qualified member to act upon the matter in question. Such special Committee members shall
have power to act only upon the matter for which they were especially appointed and their tenure shall cease as soon as they have acted upon the matter for which they were especially appointed. 
 7.5.        Responsibility of Committees.    The responsibilities of the Committee and
Investment Subcommittee shall be as provided in paragraphs (a) and (b), respectively: 
 (a)        The authority to manage and control the operation and administration of the Plan, the general administration of the Plan, the responsibility for carrying out the Plan, and to the extent
provided in Section 7.7(f), the authority and responsibility to manage and control the assets of the Trust are hereby delegated by the Board of Directors to and vested in the Committee except to the extent reserved to the Board of Directors,
the Sponsor, or the Company. Subject to the limitations of the Plan, the Committee shall, from time to time, establish rules for the performance of its functions and the administration of the Plan. In the performance of its functions, the Committee
shall not discriminate in favor of Highly Compensated Employees. 
  

 46 

 (b)        The authority and responsibility to
manage and control the assets of the Trust are hereby delegated by the Board of Directors, acting through its Organization and Compensation Committee, to and vested in the Investment Subcommittee except to the extent reserved to the Board of
Directors or the Board of Directors, acting through its Organization and Compensation Committee, or the Sponsor. Subject to the limitations of the Plan, the Investment Subcommittee shall, from time to time, establish rules for the performance of its
functions. 
 7.6.        Committee Powers.    The Committee shall have
all discretionary powers necessary to supervise the administration of the Plan and control its operations. In addition to any discretionary powers and authority conferred on the Committee elsewhere in the Plan or by law, the Committee shall have,
but not by way of limitation, the following discretionary powers and authority: 
 (a)        To designate agents to carry out responsibilities relating to the Plan, other than fiduciary responsibilities as provided in Section 7.7. 
 (b)        To employ such legal, actuarial, medical, accounting, clerical, and other assistance
as it may deem appropriate in carrying out the provisions of the Plan, including one or more persons to render advice with regard to any responsibility any Named Fiduciary or any other fiduciary may have under the Plan. 
 (c)        To establish rules and regulations from time to time for the conduct of the
Committee’s business and the administration and effectuation of the Plan. 
 (d)        To administer, interpret, construe, and apply the Plan and to decide all questions which may arise or which may be raised under the Plan by any Employee, Participant, former Participant,
Beneficiary or other person whatsoever, including but not limited to all questions relating to eligibility to participate in the Plan, the amount of Credited Service of any Participant, and the amount of benefits to which any Participant or his or
her Beneficiary may be entitled. 
 (e)        To determine the manner in which the
assets of the Plan, or any part thereof, shall be disbursed. 
 (f)        Subject to
provisions (a) through (d) of Section 8.1, to make administrative amendments to the Plan that do not cause a substantial increase or decrease in benefit accruals to Participants and that do not cause a substantial increase in the cost
of administering the Plan. 
 (g)        To perform or cause to be performed such
further acts as it may deem to be necessary, appropriate or convenient in the efficient administration of the Plan. 
 Any action taken in
good faith by the Committee in the exercise of discretionary power conferred upon it by the Plan shall be conclusive and binding upon the Participants and their 

  

 47 

 
Beneficiaries. All discretionary powers conferred upon the Committee shall be absolute; provided, however, that all such discretionary power shall be
exercised in a uniform and nondiscriminatory manner. 
 7.7.        Additional Powers of
Committee.    In addition to any discretionary powers or authority conferred on the Committee elsewhere in the Plan or by law, such Committee shall have the following discretionary powers and authority: 
 (a)        To appoint one or more Investment Managers to manage and control any or all of the
assets of the Trust not invested or to be invested in Company Stock. 
 (b)        To
designate persons (other than the members of the Committee) to carry out fiduciary responsibilities, other than any responsibility to manage or control the assets of the Trust; 
 (c)        To allocate fiduciary responsibilities among the members of the Committee, other than
any responsibility to manage or control the assets of the Trust; 
 (d)        To
cancel any such designation or allocation at any time for any reason; 
 (e)        To direct the voting of any Company Stock or any other security held by the Trust subject to Section 7.16 hereof; and 
 (f)        To exercise management and control over the assets of the Trust to the extent provided
in paragraph (a) above and in Section 7.9 (relating to review by the Committee of the long-run and short-run financial needs of the Plan and the determination of the funding policy for the Plan). 
 Any action under this Section 7.7 shall be taken in writing, and no designation or allocation under Subsection (a), (b) or (c) shall
be effective until accepted in writing by the indicated responsible person. 
 7.8.        Investment Subcommittee Powers.    The Investment Subcommittee shall have all discretionary powers necessary to manage and control the assets of the Trust,
including but not limited to, the following: 
 (a)        To exercise management and
control over the assets of the Trust except to the extent the Committee appoints an Investment Manager pursuant to Section 7.7(a) and subject to the requirement that all action taken by the Investment Subcommittee shall be in accordance and
consistent with the funding policy established by the Committee and shall be communicated to the Committee at periodic intervals. 
 (b)        To employ consulting, actuarial, and other assistance as it may deem appropriate in carrying out its responsibilities under the Plan, including one or more 

  

 48 

 
persons to render advice with regard to any fiduciary responsibility the Investment Subcommittee may have under the Plan. 
 (c)        To establish rules and regulations from time to time for the conduct of the Investment
Subcommittee’s business. 
 (d)        To direct the Trustee, in writing, from
time to time, to invest and reinvest the Trust Fund, or any part thereof, or to purchase, exchange, or lease any property, real or personal, which the Investment Subcommittee may designate. This shall include the right to direct the investment of
all or any part of the Trust in any one security or any one type of securities permitted hereunder. 
 (e)        To direct the purchase and sale of Company Stock (and any other securities that are “qualifying employer securities” as defined in Code Section 4975(e)) for the Trust.

 Any action taken in good faith by the Investment Subcommittee in the exercise of discretionary powers conferred upon it by the Plan shall
be conclusive and binding upon the Participants and their Beneficiaries. 
 7.9.        Periodic
Review of Funding Policy.    Notwithstanding the delegation of authority and responsibility to manage and control the assets of the Trust to the Investment Subcommittee, the Committee, at periodic intervals, shall review the
long-run and short-run financial needs of the Plan and shall determine a funding policy for the Plan consistent with the objectives of the Plan and the minimum funding standards of ERISA, if applicable. In determining such funding policy the
Committee shall take into account, at a minimum, not only the long-term investment objectives of the Trust Fund consistent with the prudent management of the assets thereof, but also the short-run needs of the Plan to pay benefits. All actions taken
by the Committee with respect to the funding policy of the Plan, including the reasons therefor, shall be fully reflected in the minutes of the Committee. 
 7.10.      Claims Procedures.    If a Participant or his or her Beneficiary believes that he or she is being denied any rights or benefits under the Plan, the
Participant, Beneficiary, or in either case, his or her authorized representative (the “Claimant”) shall follow the administrative procedures for filing a claim for benefits as set forth in this Section. A claim for benefits shall be in
writing and shall be reviewed by the Committee or a claims official designated by the Committee. The Committee or claims official shall review a claim for benefits in accordance with the procedures established by the Committee subject to the
following administrative procedures set forth in this Section. 
 (a)        The
Committee shall furnish the Claimant with written or electronic notice of the decision rendered with respect to a claim for benefits within 90 days following receipt by the Committee (or its delegate) of the claim unless the Committee
determines that special circumstances require an extension of time for processing the claim. In the event an extension is necessary, written or electronic notice of the extension shall be 

  

 49 

 
furnished to the Claimant prior to the expiration of the initial 90 day period. The notice shall indicate the special circumstances requiring an
extension of time and the date by which a final decision is expected to be rendered. In no event shall the period of the extension exceed 90 days from the end of the initial 90 day period. 
 (b)        In the case of a denial of the Claimant’s claim, the written or electronic notice
of such denial shall set forth (i) the specific reasons for the denial, (ii) references to the Plan provisions upon which the denial is based, (iii) a description of any additional information or material necessary for perfection of
the claim (together with an explanation why such material or information is necessary), (iv) an explanation of the Plan’s appeals procedures, and (v) a statement of the Claimant’s right to bring a civil action under
Section 502(a) of ERISA if his or her claim is denied upon appeal. 
 (c)        In the case of a denial of a claim, a Claimant who wishes to appeal the decision shall follow the administrative procedures for an appeal as set forth in Section 7.11 below.

 7.11.      Appeals Procedures.    A Claimant who wishes to appeal the denial of
his or her claim for benefits shall follow the administrative procedures for an appeal as set forth in this Section and shall exhaust such administrative procedures prior to seeking any other form of relief. Appeals shall be reviewed in accordance
with the procedures established by the Committee subject to the following administrative procedures set forth in this Section. 
 (a)    In order to appeal a decision rendered with respect to his or her claim for benefits, a Claimant must file an appeal with the Committee in writing within 60 days following his or her receipt of the notice of
denial with respect to the claim. 
 (b)    The Claimant’s appeal may include written comments,
documents, records and other information relating to his or her claim. The Claimant may review all pertinent documents and, upon request, shall have reasonable access to or be provided free of charge, copies of all documents, records, and other
information relevant to his or her claim. 
 (c)    The Committee shall provide a full and fair review of
the appeal and shall take into account all claim related comments, documents, records, and other information submitted by the Claimant without regard to whether such information was submitted or considered under the initial determination or review
of the initial determination. Where appropriate, the Committee will overturn a notice of denial if it determines that an error was made in the interpretation of the controlling plan documents or if the Committee determines that an existing
interpretation of the controlling plan documents should be changed on a prospective basis. In the event the Claimant is a subordinate, as determined by the Committee, to an individual conducting the review, such individual shall recuse himself or
herself from the review of the appeal. 
  

 50 

 (d)        The Committee shall furnish the
Claimant with written or electronic notice of the decision rendered with respect to an appeal within 60 days following receipt by the Committee of the appeal unless the Committee determines that special circumstances require an extension of
time for processing the appeal. In the event an extension is necessary, written or electronic notice of the extension shall be furnished to the Claimant prior to the expiration of the initial 60 day period. The notice shall indicate the special
circumstances requiring an extension of time and the date by which a final decision is expected to be rendered. In no event shall the period of the extension exceed 60 days from the end of the initial 60 day period. 
 (e)        In the case of a denial of an appeal, the written or electronic notice of such denial
shall set forth (i) the specific reasons for the denial, (ii) references to the Plan provisions upon which the denial is based, (iii) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records, and other information relating to his or her claim for benefits, and (iv) a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA. 
 7.12.      Limitation on Liability.    Each of the fiduciaries under the Plan shall be solely
responsible for its own acts and omissions and no fiduciary shall be liable for any breach of fiduciary responsibility resulting from the act or omission of any other fiduciary or person to whom fiduciary responsibilities have been allocated or
delegated pursuant to Section 7.2 or 7.7, except as provided in Sections 405(a) and 405(c)(2)(A) or (B) of ERISA. Neither the Committee nor the Investment Subcommittee shall have responsibility over assets as to which management and
control has been delegated to an Investment Manager appointed pursuant to Section 6.14 hereof or as to which management and control has been retained by the Trustee. 
 7.13.      Indemnification and Insurance.    To the extent permitted by law, the Company shall indemnify and hold harmless the Committee, the Investment
Subcommittee and each member thereof, the Board of Directors and each member thereof, and such other persons as the Board of Directors may specify, from the effects and consequences of his or her acts, omissions, and conduct in his or her official
capacity in connection with the Plan and Trust. To the extent permitted by law, the Company may also purchase liability insurance for such persons. 
 7.14.      Compensation of Committees and Plan Expenses.    Members of the Committee and the Investment Subcommittee shall serve as such without compensation unless the Board of
Directors shall otherwise determine, but in no event shall any member of the Committee or Investment Subcommittee who is an Employee receive compensation from the Plan for his or her services as a member of the Committee or the Investment
Subcommittee. All members shall be reimbursed for any necessary expenditures incurred in the discharge of duties as members of the Committee or the Investment Subcommittee. The compensation or fees, as the case may be, of all officers, agents,
counsel, the Trustee or other persons retained or employed by the Committee or the Investment Subcommittee shall be fixed by the Committee, subject to approval by the Board of Directors. The expenses incurred in the administration and operation of
the Plan, including but not limited to the expenses incurred by the members of the Committee or the 

  

 51 

 
Investment Subcommittee in exercising their duties, shall be paid by the Plan from the Trust Fund, unless paid by the Company, provided, however, that the
Plan and not the Company shall bear the cost of interest and normal brokerage charges which are included in the cost of securities purchased by the Trust Fund (or charged to proceeds in the case of sales). If such expenses are to be paid by the Plan
from the Trust Fund, the Investment Subcommittee may direct the Trustee to use forfeitures and dividends (and to sell the shares of Company Stock that represent such forfeitures or dividends) to pay such expenses. 
 7.15.      Resignation.    Any member of the Committee or Investment Subcommittee may resign by
giving fifteen (15) days notice to the Board of Directors, and any member shall resign forthwith upon receipt of the written request of the Board of Directors, whether or not said member is at that time the only member of the Committee or the
Investment Subcommittee. 
 7.16.      Voting of Company Stock.    Notwithstanding
any other provision of the Plan to the contrary, the Trustee shall have no discretion or authority to vote Company Stock held in the Trust on any matter presented for a vote by the stockholders of the Company except in accordance with timely
directions received by the Trustee either from the Committee or from Participants, depending on who has the right to direct the voting of such Company Stock as provided in the following provisions of this Section 7.16. 
 (a)        All Company Stock held in the Trust Fund shall be voted by the Trustee as the
Committee directs in its absolute discretion, except as provided in this Section 7.16(a). 
 (i)      If the Sponsor has a registration-type class of securities (as defined in Code Section 409(e)(4)), then with respect to all corporate matters, (1) each Participant shall be entitled to direct
the Trustee as to the voting of all Company Stock allocated and credited to his or her ESOP Account and (2) each Participant who is an Eligible Employee shall be entitled to direct the Trustee as to the voting of a portion of all Company Stock
not allocated to the ESOP Accounts of Participants, with such portion equal to the total number of shares of such unallocated stock multiplied by a fraction the numerator of which is the number of shares of Company Stock allocated and credited to
his or her ESOP account and the denominator of which is the total number of shares of Company Stock allocated and credited to all ESOP Accounts of Participants. 
 (ii)     If the Sponsor does not have a registration-type class of securities, then only with respect to such
matters as the approval or disapproval of any corporate merger or consolidation, recapitalization, reclassification, liquidation, dissolution, sale of substantially all assets of trade or business, or such similar transactions as may be prescribed
in Code Section 409(e)(4) and the regulations thereunder, (1) each Participant shall be entitled to direct the Trustee as to the voting of all Company Stock allocated and credited to his or her ESOP Account and (2) each Participant
who is an Eligible Employee shall be entitled to direct the Trustee as to the voting of a portion of all Company Stock not allocated to the 

  

 52 

 
ESOP Accounts of Participants, with such portion determined in the same manner as under paragraph (a)(i) above. 
 (b)        To the extent there remains any residual fiduciary responsibility with respect to the
voting of Company Stock after application of paragraph (a) above, the Trustee shall vote such Company Stock as directed by the Committee or as directed by an independent fiduciary if duly appointed by the Sponsor. To the extent the Committee or
an independent fiduciary is required to exercise any residual fiduciary responsibility with respect to the voting of Company Stock, the Committee or independent fiduciary shall take into account in exercising its fiduciary judgment, unless it is
clearly imprudent to do so, directions timely received from Participants, as such directions are most indicative of what action is in the best interests of Participants. Further, the Committee or independent fiduciary, in addition to taking into
consideration any relevant financial factors bearing on any such decision, shall take into consideration any relevant non-financial factors, including, but not limited to, the continuing job security of Participants as employees of the Sponsor or
any Affiliated Company, conditions of employment, employment opportunities and other similar matters, and the prospect of the Participants and prospective Participants for future benefits under the Plan. 
 (c)        All Participants entitled to direct such voting shall be notified by the Sponsor,
pursuant to its normal communications with shareholders, of each occasion for the exercise of such voting rights within a reasonable time before such rights are to be exercised. Such notification shall include all information distributed to
shareholders either by the Sponsor or any other party regarding the exercise of such rights. Such Participants shall be so entitled to direct the voting of fractional shares (or fractional interests in shares); provided, however, that the Trustee
may, to the extent possible, vote the combined fractional shares (or fractional interests in shares) so as to reflect the aggregate direction of all Participants giving directions with respect to fractional shares (or fractional interests in
shares). To the extent that a Participant shall fail to direct the Trustee as to the exercise of voting rights arising under Company Stock credited to his or her ESOP Account, such Company Stock shall not be voted unless the Trustee is directed
otherwise as provided in paragraph (b) above. The Trustee shall maintain confidentiality with respect to the voting directions of all Participants. 
 (d)        Each Participant shall be a named fiduciary (as that term is defined in Section 402(a)(2) of ERISA) with respect to Company Stock for which he or she has the
right to direct the voting under the Plan but solely for the purpose of exercising voting rights pursuant to this Section 7.16 or certain Offers pursuant to Section 6.4. 
 (e)        In the event a court of competent jurisdiction shall issue an opinion or order to the
Plan, the Committee, the Sponsor or the Trustee, which shall, in the opinion of counsel to the Committee, the Sponsor or the Trustee, invalidate under ERISA, in all circumstances or in any particular circumstances, any provision or provisions of
this paragraph regarding the manner in which Company Stock held in the Trust shall be voted or cause any such provision or provisions to conflict with ERISA, then, upon notice 

  

 53 

 
thereof to the Committee, the Sponsor or the Trustee, as the case may be, such invalid or conflicting provisions of this Section shall be given no further
force or effect. In such circumstances the Trustee shall continue to follow instructions received from Participants, to the extent such instructions have not been invalidated by such order or opinion. To the extent the Trustee is required by such
opinion or order to exercise any residual fiduciary responsibility with respect to voting, the Sponsor shall appoint an independent fiduciary who shall exercise such residual fiduciary responsibility as provided in paragraph (b) above and shall
direct the Trustee as to the manner in which Company Stock held by the Trustee shall be voted. 
 7.17.      
Reliance Upon Documents and Opinions.    The members of the Committee, the Investment Subcommittee, the Board of Directors, the Company and any person delegated to carry out any fiduciary responsibilities under the Plan
(hereinafter a “delegated fiduciary”), shall be entitled to rely upon any tables, valuations, computations, estimates, certificates and reports furnished by any consultant, or firm or corporation which employs one or more consultants, upon
any opinions furnished by legal counsel, and upon any reports furnished by the Trustee or any Investment Manager. The members of the Committee, the Investment Subcommittee, the Board of Directors, the Company and any delegated fiduciary shall be
fully protected and shall not be liable in any manner whatsoever for anything done or action taken or suffered in reliance upon any such consultant, or firm or corporation which employs one or more consultants, Trustee, Investment Manager, or
counsel. Any and all such things done or such action taken or suffered by the Committee, the Investment Subcommittee, the Board of Directors, the Company and any delegated fiduciary shall be conclusive and binding on all Employees, Participants,
Beneficiaries, and any other persons whomsoever, except as otherwise provided by law. The Committee, the Investment Subcommittee, and any delegated fiduciary may, but are not required to, rely upon all records of the Company with respect to any
matter or thing whatsoever, and may likewise treat such records as conclusive with respect to all Employees, Participants, Beneficiaries, and any other persons whomsoever, except as otherwise provided by law. 
  

 54 

 ARTICLE VIII 
 AMENDMENT AND ADOPTION OF PLAN 
 8.1.        Right
to Amend Plan.    The Sponsor, by resolution of the Board of Directors, shall have the right to amend the Plan and Trust Agreement at any time and from time to time and in such manner and to such extent as it may deem
advisable, including retroactively, subject to the following provisions: 
 (a)        No amendment shall have the effect of reducing any Participant’s vested interest in the Plan or eliminating an optional form of distribution. 
 (b)        No amendment shall have the effect of diverting any part of the assets of the Plan to
persons or purposes other than the exclusive benefit of the Participants or their Beneficiaries. 
 (c)        No amendment shall have the effect of increasing the duties or responsibilities of a Trustee without its written consent. 
 (d)        No amendment shall result in discrimination in favor of officers, shareholders, or
other highly compensated or key employees. 
 The Committee shall have the right to amend the Plan, subject to paragraphs (a) through
(d), in accordance with the provisions of Section 7.6(f). 
 8.2.        Adoption of Plan by
Affiliated Companies.    Subject to approval by the Board of Directors and consistent with the provisions of ERISA, an Affiliated Company may adopt the Plan for all or any specified group of its Eligible Employees by entering
into an adoption agreement in the form and substance prescribed by the Committee. The adoption agreement may include such modification of the Plan provisions with respect to such Eligible Employees as the Committee approves after having determined
that no prohibited discrimination or other threat to the qualification of the Plan is likely to result. The Board of Directors may prospectively revoke or modify an Affiliated Company’s participation in the Plan at any time and for any or no
reason, without regard to the terms of the adoption agreement, or terminate the Plan with respect to such Affiliated Company’s Eligible Employees and Participants. By execution of an adoption agreement (each of which by this reference shall
become part of the Plan), the Affiliated Company agrees to be bound by all the terms and conditions of the Plan. 
  

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 ARTICLE IX 
 DISCONTINUANCE OF CONTRIBUTIONS 
 In the event the Company decides it is impossible or
inadvisable for business reasons to continue to make contributions under the Plan, it may, by resolution of the Board of Directors, discontinue contributions to the Plan. Upon the permanent discontinuance of contributions to the Plan and
notwithstanding any other provisions of the Plan, the rights of Participants shall become fully vested and nonforfeitable unless replaced by a comparable plan. The permanent discontinuance of contributions on the part of the Company shall not
terminate the Plan as to the funds and assets then held in the Trust, or operate to accelerate any payments of distributions to or for the benefit of Participants or Beneficiaries, and the Trust shall continue to be administered in accordance with
the provisions hereof until the obligations hereunder shall have been discharged and satisfied. If, at the time of discontinuance, there is any amount outstanding on an Exempt Loan, any amount remaining in the Exempt Loan Suspense Subfund shall be
disposed of as provided in any applicable loan agreement. 
  

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 ARTICLE X 
 TERMINATION AND MERGER 
 10.1.      Right to Terminate
Plan.    In the event the Board of Directors decides it is impossible or inadvisable for business reasons to continue the Plan, then it may, by resolution, terminate the Plan. Upon and after the effective date of such
termination, the Company shall not make any further contributions under the Plan. Upon the termination or partial termination of the Plan for any reason, the interest in the Trust of each affected Participant shall automatically become fully vested
unless the Plan is continued after its termination by conversion of the Plan into a comparable Plan through Plan amendment or through merger. If, at the time of termination, there is any amount outstanding in an Exempt Loan, any amount remaining in
the Exempt Loan Suspense Subfund shall be disposed of in a manner that provides for the repayment of amounts outstanding in any such Exempt Loan. After the satisfaction of all outstanding liabilities of the Plan to persons other than Participants
and Beneficiaries, all unallocated assets shall be allocated to the ESOP Accounts of Eligible Participants as defined in Section 4.2(d) to the maximum extent permitted by law. The Trust Fund may not be fully or finally liquidated until all
assets are allocated to ESOP Accounts; alternatively any unallocated assets may be transferred to another defined contribution plan maintained by the Sponsor or an Affiliated Company qualified under Code Section 401 where such assets shall be
allocated among the accounts of Participants herein who are participants in such transferee plan. In no event, however, shall any part of the Plan revert to or be recoverable by the Company, or be used for or diverted to purposes other than for the
exclusive benefit of the Participants or their Beneficiaries. Notwithstanding the foregoing, amounts held in the 415 Suspense Account may revert to the Company in accordance with Section 11.6. 
 10.2.      Effect on Trustee and Committee.    The Trustee and the Committee shall continue to
function as such for such period of time as may be necessary for the winding up of the Plan and for the making of distributions in the manner prescribed by the Board of Directors at the time of termination of the Plan. 
 10.3.      Merger Restriction.    Notwithstanding any other provision in the Plan, the Plan
shall not in whole or in part merge or consolidate with, or transfer its assets or liabilities to, any other plan unless each affected Participant in the Plan would (if such other plan then terminated) receive a benefit immediately after the merger,
consolidation, or transfer which is equal to or greater than the benefit he or she would have been entitled to receive immediately before the merger, consolidation, or transfer (if the Plan had then terminated). 
 10.4.      Effect of Reorganization, Transfer of Assets or Change in Control. 
 (a)        In the event of a consolidation or merger of the Company, or in the event of a sale
and/or any other transfer of the operating assets of the Company, any ultimate successor or successors to the business of the Company may continue the Plan in full force and effect by adopting the same by resolution of its board of directors and by
executing a proper supplemental or transfer agreement with the Trustee. 
  

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 (b)        In the event of a Change in Control
(as herein defined), all Participants who were Participants on the date of such Change in Control shall become 100% vested in any amounts allocated to their ESOP Accounts on the date of such Change in Control and in any amounts allocated to their
ESOP Accounts subsequent to the date of the Change in Control. Notwithstanding the foregoing, the Board of Directors may, at its discretion, amend or delete this paragraph (b) in its entirety prior to the occurrence of any such Change in
Control. For the purpose of this paragraph (b) and prior to January 1, 2000, a “Change in Control” shall be as defined in the Plan prior to this restatement. On or after January 1, 2000, a “Change in Control” shall
mean the following and shall be deemed to occur if any of the following events occur: 
 (i)      Any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (a “Person”), is or becomes the
“beneficial owner,” as defined in Rule 13d-3 under the Exchange Act (a “Beneficial Owner”), directly or indirectly, of securities of the Sponsor representing (1) 20% or more of the combined voting power of the Sponsor’s
then outstanding voting securities, which acquisition is not approved in advance of the acquisition or within 30 days after the acquisition by a majority of the Incumbent Board (as hereinafter defined) or (2) 33% or more of the combined voting
power of the Sponsor’s then outstanding voting securities, without regard to whether such acquisition is approved by the Incumbent Board; 
 (ii)     Individuals who, as of the date hereof, constitute the Board of Directors (the “Incumbent Board”), cease for any reason to constitute at least a majority of the Board of
Directors, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Sponsor’s stockholders, is approved by a vote of at least a majority of the directors then comprising the
Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Sponsor, as such terms are used
in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) shall, for the purposes of this Plan, be considered as though such person were a member of the Incumbent Board of the Sponsor; 
 (iii)    The consummation of a merger, consolidation or reorganization involving the Sponsor, other than one which
satisfies both of the following conditions: 
 (A)        a merger, consolidation or
reorganization which would result in the voting securities of the Sponsor outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities 

  

 58 

 
of another entity) at least 55% of the combined voting power of the voting securities of the Sponsor or such other entity resulting from the merger,
consolidation or reorganization (the “Surviving Corporation”) outstanding immediately after such merger, consolidation or reorganization and being held in substantially the same proportion as the ownership in the Sponsor’s voting
securities immediately before such merger, consolidation or reorganization, and 
 (B)        a merger, consolidation or reorganization in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Sponsor representing 20% or more of the
combined voting power of the Sponsor’s then outstanding voting securities; or 
 (iv)     The
stockholders of the Sponsor approve a plan of complete liquidation of the Sponsor or an agreement for the sale or other disposition by the Sponsor of all or substantially all of the Sponsor’s assets. 
 Notwithstanding the preceding provisions of this paragraph (b), a Change in Control shall not be deemed to have occurred if the
Person described in the preceding provisions of this paragraph (b) is (i) an underwriter or underwriting syndicate that has acquired any of the Sponsor’s then outstanding voting securities solely in connection with a public offering
of the Sponsor’s securities, (ii) the Sponsor or any subsidiary of the Sponsor or (iii) an employee stock ownership plan or other employee benefit plan maintained by the Company or an Affiliated Company that is qualified under the
provisions of the Code. In addition, notwithstanding the preceding provisions of this paragraph (b), a Change in Control shall not be deemed to have occurred if the Person described in the preceding provisions of this paragraph (b) becomes
a Beneficial Owner of more than the permitted amount of outstanding securities as a result of the acquisition of voting securities by the Company or an Affiliated Company which, by reducing the number of voting securities outstanding, increases the
proportional number of shares beneficially owned by such Person, provided, that if a Change in Control would occur but for the operation of this sentence and such Person becomes the Beneficial Owner of any additional voting securities (other than
through the exercise of options granted under any stock option plan of the Sponsor or through a stock dividend or stock split), then a Change in Control shall occur. 
 (c)        In the event of a Change in Control (as defined in Section 10.4(b) above), the
Company shall be required to repay in full, solely from its own funds and within thirty (30) days following the date of such Change in Control, all Exempt Loans and Substitute Loans outstanding on the date of the Change in Control.
Notwithstanding any other provision of the Plan to the contrary, all assets (including Company Stock) and funds that released from the Exempt Loan Suspense Subfund on account of repayment by 

  

 59 

 
the Company under this Section 10.4(c) shall be allocated, for the Plan Year in which the Change in Control occurs, in accordance with the formula set
forth herein (consistent with the requirements imposed under Article XI and other requirements of the Code). Under the formula for allocation set forth herein, assets and funds that are released shall be allocated to Employees who are Eligible
Participants (as defined in Section 4.2(d)) as of the date of the Change in Control (or who would have been Eligible Participants but for their death, Disability or retirement at or after age 55 during the Plan Year) in the same ratio that each
such Participant’s Compensation for the Plan Year through the last pay period ending on or before the date of such Change in Control bears to the total Compensation of all such Participants for the Plan Year through their last pay periods
ending on or before the date of such Change in Control. 
 (d)        For purposes of
this Section 10.4, 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. 
  

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 ARTICLE XI 
 LIMITATION ON ALLOCATIONS 
 11.1.      General Rule.

 (a)        The total Annual Additions under the Plan to a Participant’s ESOP
Account shall not exceed the lesser of: 
 (i)      Forty Thousand Dollars ($40,000), as
adjusted for increases in the cost-of-living under Code Section 415(d); or 
 (ii)     One
Hundred Percent (100%) of the Participant’s Compensation (as defined in Section 11.5), from the Company for the Limitation Year. 
 Notwithstanding the foregoing sentence, the compensation limit set forth in subparagraph (ii) shall not apply to any contribution for medical benefits after separation from service (within the meaning of Code Section 401(h) or
Code Section 419A(f)(2)) which is otherwise treated as an Annual Addition. 
 (b)        For the purpose of this Article XI, the term “Company” shall mean the Sponsor and any Affiliated Company (determined by reference to Code Section 415(h)) whether or not such
Affiliated Company has adopted the Plan pursuant to Section 8.2 and the term “Limitation Year” shall mean the Plan Year. 
 11.2.      Annual Additions.    For purposes of Section 11.1, the term “Annual Additions” shall mean with respect to a Participant, for any Limitation Year with respect
to the Plan, the sum of the amounts described below: 
 (a)        All amounts
contributed or deemed contributed by the Company, except that the Annual Addition shall exclude the portion of the Company contribution representing interest on an Exempt Loan, provided that no more than one-third of the Company’s contributions
to the Trust Fund deductible under Code Section 404(a)(9) for a Limitation Year are allocated to Highly Compensated Employees. 
 (b)        All amounts contributed by the Participant. 
 (c)        Forfeitures allocated to such Participant. For purposes of this Section 11.2, forfeitures shall not include forfeitures of Company Stock acquired through the Trust Fund with the
proceeds of an Exempt Loan, provided that no more than one-third of the Company’s contributions to the Trust Fund deductible under Code Section 404(a)(9) for a Limitation Year are allocated to Highly Compensated Employees. 
  

 61 

 (d)        Any amounts allocated, after
March 31, 1984, to an individual medical account as defined in Code Section 415(l)(2) established under a pension or annuity plan maintained by the Company. 
 (e)        Any amounts allocated for such Plan Year which amounts are derived from contributions
paid or accrued after December 31, 1985, in taxable years ending after such date, which are attributable to postretirement medical benefits allocated to the separate account of a key employee (as defined in Code Section 419A(d)(3)) under a
welfare benefit fund (as defined in Code Section 419(e)) maintained by the Company. 
 11.3.      Other
Defined Contribution Plans.    If the Company maintains any other defined contribution plan, then each Participant’s Annual Additions under such defined contribution plan shall be aggregated with the Participant’s
Annual Additions under the Plan for the purposes of applying the limitations of Section 11.1. 
 11.4.      Adjustment for Excess Annual Additions.    If as a result of the allocation of forfeitures, a reasonable error in estimating a Participant’s Compensation, or under
other limited facts and circumstances that the Commissioner of Internal Revenue finds justify the availability of the rules set forth in Regulation Section 1.415-6(b)(6), the Annual Additions on behalf of any Participant in a Limitation Year to
the Plan and all other defined contribution plans maintained by the Company exceed the limitations set forth in Section 11.1, then excess Annual Additions shall be eliminated in accordance with the following rules and in the following order:

 (a)        Excess Annual Additions shall be eliminated by reducing the allocation
to the Participant’s ESOP Account by the amount of the excess and treating such amount as a forfeiture under Section 5.3 hereof and reallocating such amount proportionately to the ESOP Accounts of other Participants receiving allocations
for the Limitation Year up to the limits set forth in Section 11.1. 
 (b)        After each Participant’s ESOP Account has been credited under paragraph (a) with an amount bringing his or her ESOP Account up to his or her maximum Annual Addition (determined
under the provisions of this Article XI), any remaining excess Annual Addition shall be transferred and credited to a 415 Suspense Account established for the purpose of this Section 11.4. This paragraph shall only apply on or after
January 1, 2008, if the establishment of a 415 Suspense Account is permitted under Revenue Procedure 2006-27 (or its successor). 
 (c)        Any amounts held in the 415 Suspense Account shall be treated as Company contributions and allocated to the ESOP Accounts of Eligible Participants (as defined in
Section 4.2(d)) as of the last day of the next succeeding Plan Year in accordance with the allocation formula applicable to Company contributions provided in Section 4.2. The 415 Suspense Account shall be exhausted before any Company
contributions shall be allocated to the ESOP Accounts of Participants subsequent to the date upon which any residue excess Annual Addition as described in paragraph (c) is credited to the 415 Suspense Account. 
  

 62 

 11.5.      Compensation.    For the purpose of
this Article XI, Compensation shall mean a Participant’s earned income, wages, salaries, fees for professional services, and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually
rendered in the course of employment with the Company maintaining the Plan and shall be determined as described below: 
 (a)        Compensation shall include to the extent that the amounts are includible in gross income (including, but not limited to, commissions paid salespeople, compensation for services on the basis
of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements or other expense allowances under a nonaccountable plan as described in Regulation 1.62-2(c)). 
 (b)        Compensation shall include any elective deferral as defined in Code
Section 402(g)(3), any amount which is contributed or deferred by the Company at the election of the Employee that is excludable from an Employee’s gross income under Code Sections 125 or 457 and, for Plan Years beginning on or after
January 1, 1998, any elective amount that is excludable from an Employee’s gross income under Code Section 132(f)(4). 
 (d)        Compensation shall not include (i) any employer contributions to a plan of deferred compensation which are not included in the Employee’s gross income for
the taxable year in which contributed, (ii) any distributions from a plan of deferred compensation, (iii) any amounts realized from the exercise of a non-qualified stock option or when restricted stock or property held by the Employee
becomes either freely transferable or is no longer subject to a substantial risk of forfeiture under Code Section 83 if such option, stock, or property was granted to the Employee by the Company, (iv) any amounts realized from the sale,
exchange, or other disposition of stock acquired under a qualified stock option, (v) any contribution for medical benefits (within the meaning of Code Section 419(f)(2) after termination of employment which is otherwise treated as an
Annual Addition, and (vi) any amount otherwise treated as an Annual Addition under Code Section 415(l)(1). 
 (d)        Notwithstanding anything in the Plan to the contrary, Compensation shall be determined in accordance with Code Section 415(c)(3) as in effect for Plan Years beginning prior to
January 1, 1998 where required by applicable law. 
 11.6.      Treatment of 415 Suspense Account Upon
Termination.    In the event the Plan shall terminate at a time when all amounts in the 415 Suspense Account have not been allocated to the ESOP Accounts of the Participants, the 415 Suspense Account amounts shall be applied
as follows: 
 (a)        The amount in the 415 Suspense Account shall first be
allocated, as of the Plan termination date, to Participants in accordance with the allocation formula applicable to Company contributions provided under Section 4.2(a). 
  

 63 

 (b)        If, after those allocations have been
made, any further residue funds remain in the 415 Suspense Account, the residue may revert to the Company in accordance with applicable provisions of the Code, ERISA, and the regulations thereunder. 
 (c)        Notwithstanding paragraphs (a) and (b) above, in the event that termination
of the plan occurs after a Change in Control, all amounts in the 415 Suspense Account shall be allocated to Participants only in accordance with Section 10.4 hereof, and no part of the 415 Suspense Account shall revert to or be recoverable by
the Company, or be used for or diverted to purposes other than for the exclusive benefit of the Participants or their Beneficiaries. 
  

 64 

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

 

 65 

 (g)        For purposes of determining ownership
under paragraphs (a), (b) and (c) above, the following special rules shall apply: (i) Code Section 318(a)(2)(C) shall be applied by substituting “5%” for “50%”, and (ii) the aggregation rules of Code
Sections 414(b), (c) and (m) shall not apply, with the result that the ownership tests of this Section 12.2 shall apply separately with respect to each Affiliated Company. 
 (h)        The terms “Key Employee” and “Non-Key Employee” shall include
their Beneficiaries, and the definitions provided under this Section 12.2 shall be interpreted and applied in a manner consistent with the provisions of Code Section 416(i) and the regulations thereunder. 
 (i)        For purposes of this Article XII, an Employee’s Compensation shall be determined
in accordance with the rules of Section 11.5. 
 12.3.      Top-Heavy Status 
 (a)        The term “Top-Heavy Plan” means, with respect to any Plan Year: 

(i)      Any defined benefit plan if, as of the Determination Date, the present value of the cumulative
accrued benefits under the plan for Key Employees exceeds 60% of the present value of the 
 (ii)     cumulative accrued benefits under the plan for all Employees; and 
 (iii)    Any defined contribution plan if, as of the Determination Date, the aggregate of the account balances of Key Employees under the plan exceeds 60% of the aggregate of the account balances of all Employees under
the plan. 
 In applying the foregoing provisions of this paragraph (a), the valuation date to be used in valuing Plan
assets shall be (i) in the case of a defined benefit plan, the same date which is used for computing costs for minimum funding purposes, and (ii) in the case of a defined contribution plan, the most recent valuation date within a 12-month
period ending on the applicable Determination Date. 
 (b)        Each plan
maintained by the Company required to be included in an Aggregation Group shall be treated as a Top-Heavy Plan if the Aggregation Group is a Top-Heavy Group. 
 (c)        The term “Top-Heavy Group” means any Aggregation Group if the sum (as of the
Determination Date) of (i) the present value of the cumulative accrued benefits for Key Employees under all defined benefit plans included in the group, and (ii) the aggregate of the account balances of Key Employees under all defined
contribution plans included in the group exceeds 60% of a similar sum determined for all Employees. For purposes of determining the present value of the cumulative accrued benefit of any Employee, or the amount of the account balance of any
Employee, such present value or 

  

 66 

 
amount shall be increased by the aggregate distributions made with respect to the Employee under the plan (including a terminated plan which, had it not been
terminated, would have been aggregated with the plan under Code Section 416(g)(2)(A)(i))during the one year period ending on the Determination Date. In the case of distributions made for a reason other than separation from service, death,
or disability, the preceding sentence shall be applied by substituting “5-year period” for “l -year period.” Any rollover contribution or similar transfer initiated by the Employee and made after December 31, 1983, to a plan
shall not be taken into account with respect to the transferee plan for purposes of determining whether such plan is a Top-Heavy Plan (or whether any Aggregation Group which includes such plan is a Top-Heavy Group). 
 (d)        If any individual is a Non-Key Employee with respect to any plan for any plan year,
but the individual was a Key Employee with respect to the plan for any prior plan year, any accrued benefit for the individual (and the account balance of the individual) shall not be taken into account for purposes of this Section 12.3.

 (e)        If any individual has not performed services for the Company at any
time during the one year period ending on the Determination Date, any accrued benefit for such individual (and the account balance of the individual) shall not be taken into account for purposes of this Section 12.3. 
 (f)        In applying the foregoing provisions of this Section, the accrued benefit of a Non-Key
Employee shall be determined (i) under the method, if any, which is used for accrual purposes under all plans of the Company and any Affiliated Companies, or (ii) if there is no such uniform method, as if such benefit accrued not more
rapidly than the slowest accrual rate permitted under Code Section 411(b)(1)(C). 
 (g)        For all purposes of this Article XII, the definitions provided under this Section 12.3 shall be applied and interpreted in a manner consistent with the provisions of Code
Section 416(g) and the regulations thereunder. 
 12.4.      Minimum
Contributions.    For any Plan Year in which the Plan is determined to be a Top-Heavy Plan, the minimum Company Contributions for that year shall be determined in accordance with the rules of this Section 12.4.

 (a)        Except as provided below, the minimum contribution for each Non-Key
Employee shall be not less than 3% of his or her compensation. 
 (b)        Subject
to the following rules of this paragraph (b), the percentage set forth in paragraph (a) above shall not be required to exceed the percentage at which contributions are made (or are required to be made) under the Plan for the year for the
Key Employee for whom the percentage is the highest for the year. This determination shall be made by dividing the contributions for each Key Employee by so much of his or her total compensation for the Plan Year as does not exceed the applicable
Compensation limit. For purposes of this paragraph (b), all defined contribution plans required to be 

  

 67 

 
included in an Aggregation Group shall be treated as one plan. Notwithstanding the foregoing, the exceptions to paragraph (a) as provided under this
paragraph (b) shall not apply to any plan required to be included in an Aggregation Group if the plan enables a defined benefit plan to meet the requirements of Code Sections 401(a)(4) or 410. 
 (c)        The Participant’s minimum contribution determined under this Section 12.4
shall be calculated without regard to any Social Security benefits payable to the Participant. 
 (d)        In the event a Participant is covered by both a defined contribution and a defined benefit plan maintained by the Company, both of which are determined to be Top-Heavy Plans, the Company
shall satisfy the minimum benefit requirements of Code Section 416 by providing (in lieu of the minimum contribution described in paragraph (a) above) a minimum benefit under the defined benefit plan so as to prevent the duplication of
required minimum benefits hereunder. 
 12.5.      Minimum Vesting Rules.    For any
Plan Year in which it is determined that the Plan is a Top-Heavy Plan, the vesting schedule shall be the vesting schedule set forth in Section 5.2. 
 12.6.      Non-Eligible Employees.    The rules of this Article XII shall not apply to any Employee included in a unit of employees covered by a collective
bargaining agreement between employee representatives and one or more employers if retirement benefits were the subject of good faith bargaining between such employee representatives and the employer or employers. 
  

 68 

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

 69 

 (i)      Creates or recognizes the existence of an
Alternate Payee’s right to, or assigns to an Alternate Payee the right to, receive all or a portion of the benefits payable under the Plan with respect to a Participant, 
 (ii)     Relates to the provision of child support, alimony payments, or marital property rights to a spouse,
former spouse, child or other dependent of a Participant, 
 (iii)    Is made pursuant to a State
domestic relations law (including a community property law), and 
 (iv)     Clearly specifies:
(1) the name and last known mailing address (if any) of the Participant and the name and mailing address of each Alternate Payee covered by the order (if the Committee does not have reason to know that address independently of the order);
(2) the amount or percentage of the Participant’s benefits to be paid to each Alternate Payee, or the manner in which the amount or percentage is to be determined; (3) the number of payments or period to which the order applies; and
(4) each plan to which the order applies. 
 For purposes of this Section 13.2, “Alternate Payee” means
any spouse, former spouse, child or other dependent of a Participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable with respect to the Participant. 
 (b)        A domestic relations order is not a Qualified Domestic Relations Order if it requires:

 (i)      The Plan to provide any type or form of benefit, or any option, not otherwise
provided under the Plan; 
 (ii)     The Plan to provide increased benefits; or 
 (iii)    The payment of benefits to an Alternate Payee that are required to be paid to another Alternate Payee under
a previous Qualified Domestic Relations Order. 
 (c)        A domestic relations
order shall not be considered to fail to satisfy the requirements of paragraph (b)(i) above with respect to any payment made before a Participant has separated from service solely because the order requires that payment of benefits be made to
an Alternate Payee: 
 (i)      On or after the date on which the Participant attains (or
would have first attained) his or her earliest retirement age (as defined in Code Section 414(p)(4)(B)); 
  

 70 

 (ii)     As if the Participant had retired on the date on which
such payment is to begin under such order (but taking into account only the present value of accrued benefits and not taking into account the present value of any subsidy for early retirement benefits); and 
 (iii)    In any form in which such benefits may be paid under the Plan to the Participant (other than in the form of
a joint and survivor annuity with respect to the Alternate Payee and his or her subsequent spouse). 
 Notwithstanding the
foregoing, if the Participant dies before his or her earliest retirement age (as defined in Section 414(p)(4)(B)), the Alternate Payee is entitled to benefits only if the Qualified Domestic Relations Order requires survivor benefits to be paid
to the Alternate Payee. 
 (d)        To the extent provided in any Qualified
Domestic Relations Order, the former spouse of a Participant shall be treated as a surviving Spouse of the Participant for purposes of applying the rules (relating to minimum survivor annuity requirements) of Code Sections 401(a)(11) and 417,
and any current spouse of the Participant shall not be treated as a spouse of the Participant for such purposes. 
 (e)        In the case of any domestic relations order received by the Plan, the Committee shall promptly notify the Participant and any Alternate Payee named in the order that an order has been
received and shall provide a copy of the Plan’s procedures for determining the qualified status of domestic relations orders. An Alternate Payee may designate a representative for receipt of copies of notices and plan information that are sent
to the Alternate Payee with respect to domestic relations order. Within a reasonable period after the receipt of the order, the Committee shall determine whether the order is a Qualified Domestic Relations Order and shall notify the Participant and
each Alternate Payee of such determination. 
 (f)        The Committee shall
establish reasonable procedures to determine the qualified status of domestic relations orders and to administer distributions under Qualified Domestic Relations Orders. During any period in which the issue of whether a domestic relations order is a
Qualified Domestic Relations Order is being determined (by the Committee, by a court of competent jurisdiction, or otherwise), the Committee shall direct the Trustee to segregate in a separate account in the Plan (or in an escrow account) the
amounts which would have been payable to the Alternate Payee during the period if the order had been determined to be a Qualified Domestic Relations Order. If within the 18 Month Period (as defined below), the order (or modification thereof) is
determined to be a Qualified Domestic Relations Order, the Committee shall direct the Trustee to pay the segregated amounts (plus any interest thereon) to the person or persons entitled thereto. However, if within the 18 Month Period
(i) it is determined that the order is not a Qualified Domestic Relations Order, or (ii) the issue as to whether the order is a Qualified Domestic Relations Order is not resolved, then the Committee shall direct the Trustee to pay the
segregated amounts (plus any interest thereon) to the person or persons who 

  

 71 

 
would have been entitled to the amounts if there had been no order (assuming such benefits were otherwise payable). Any determination that an order is a
Qualified Domestic Relations Order that is made after the close of the 18 Month Period shall be applied prospectively only. For purposes of this Section 13.2, the “18 Month Period” shall mean the 18 month period beginning
with the date on which the first payment would be required to be made under the domestic relations order. 
  

 72 

 ARTICLE XIV 
 MISCELLANEOUS PROVISIONS 
 14.1.      No Right of Employment
Hereunder.    The adoption and maintenance of the Plan and Trust shall not be deemed to constitute a contract of employment or otherwise between the Company and any Employee or Participant, or to be a consideration for, or an
inducement or condition of, any employment. Nothing contained herein shall be deemed to give any Employee the right to be retained in the service of the Company or to interfere with the right of the Company to discharge, with or without cause, any
Employee or Participant at any time, which right is hereby expressly reserved. 
 14.2.      Limitation on
Company Liability.    Any benefits payable under the Plan shall be paid or provided for solely from the Plan and the Company assumes no liability or responsibility therefor. 
 14.3.      Effect of Article Headings.    Article headings are for convenient reference only and
shall not be deemed to be a part of the substance of this instrument or in any way to enlarge or limit the contents of any Article. 
 14.4.      Gender.    Masculine gender shall include the feminine and the singular shall include the plural unless the context clearly indicates otherwise. 
 14.5.      Interpretation.    The provisions of the Plan shall in all cases be interpreted in a
manner that is consistent with the Plan satisfying (a) the requirements of Code Section 401(a) and related statutes for qualification as a stock bonus plan and (b) the requirements of Code Section 4975(e)(7) and related statutes
for qualification as an employee stock ownership plan and eligibility for the prohibited transaction exemption provided under Code Section 4975(d)(3) and its related statutes under ERISA. 
 14.6.      Withholding For Taxes.    Any payments from the Trust Fund may be subject to
withholding for taxes as may be required by any applicable federal or state law. 
 14.7.      California
Law Controlling.    All legal questions pertaining to the Plan which are not controlled by ERISA shall be determined in accordance with the laws of the State of California and all contributions made hereunder shall be deemed
to have been made in that State. 
 14.8.      Plan and Trust as One
Instrument.    The Plan and the Trust Agreement shall be construed together as one instrument. In the event that any conflict arises between the terms and/or conditions of the Trust Agreement and the Plan, the provisions of
the Plan shall control, except that with respect to the duties and responsibilities of the Trustee, the Trust Agreement shall control. 
 14.9.      Invalid Provisions.    If any paragraph, section, sentence, clause or phrase contained in the Plan shall become illegal, null or void or against public policy, for any
reason, or shall be 

  

 73 

 
held by any court of competent jurisdiction to be incapable of being construed or limited in a manner to make it enforceable, or is otherwise held by such
court to be illegal, null or void or against public policy, the remaining paragraphs, sections, sentences, clauses or phrases contained in the Plan shall not be affected thereby. 
 14.10.      Counterparts.    This instrument may be executed in one or more counterparts each of
which shall be legally binding and enforceable. 
  

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 IN WITNESS WHEREOF, Allergan, Inc. hereby executes this instrument, evidencing the terms of the
Allergan, Inc. Employee Stock Ownership Plan as restated this 29th day of January, 2008. 
  

			
	ALLERGAN, INC.
		
	By:	 	/s/ Douglas S. Ingram
		 	Douglas S. Ingram
		 	 Executive Vice President, Chief Administrative Officer, General Counsel
 and Secretary

  

 75Savings and Investment Plan (Restated 2008)

 EXHIBIT 10.16 
 ALLERGAN, INC. 
 SAVINGS AND INVESTMENT PLAN 
  
 RESTATED 
 2008 

 TABLE OF CONTENTS 
  

					
		  		  	PAGE
		
	ARTICLE I	  	
	INTRODUCTION	  	  1
			
	1.1	  	Plan Name	  	  1
	1.2	  	Plan Purpose	  	  1
	1.3	  	Effective Date of 2008 Restated Plan	  	  1
	1.4	  	Amendments to Plan	  	  1
	1.5	  	Plan Qualification	  	  2
		
	ARTICLE II	  	
	DEFINITIONS	  	  4
			
	2.1	  	Accounts	  	  4
	2.2	  	Affiliated Company	  	  4
	2.3	  	After Tax Deposits	  	  4
	2.4	  	After Tax Deposits Account	  	  4
	2.5	  	Anniversary Date	  	  4
	2.6	  	Before Tax Deposits	  	  4
	2.7	  	Before Tax Deposits Account	  	  4
	2.8	  	Beneficiary	  	  4
	2.9	  	Board of Directors	  	  5
	2.10	  	Break in Service	  	  5
	2.11	  	Code	  	  5
	2.12	  	Committee	  	  5
	2.13	  	Company	  	  5
	2.14	  	Company Contributions	  	  5
	2.15	  	Company Contributions Accounts	  	  5
	2.16	  	Company Stock	  	  5
	2.17	  	Compensation	  	  5
	2.18	  	Credited Service	  	  7
	2.19	  	Disability	  	  8
	2.20	  	Effective Date	  	  9
	2.21	  	Eligible Employee	  	  9
	2.22	  	Eligible Retirement Plan	  	  9
	2.23	  	Eligible Rollover Distribution	  	  9
	2.24	  	Employee	  	10
	2.25	  	Employment Commencement Date	  	11
	2.26	  	ERISA	  	11
	2.27	  	Forfeitures	  	11
	2.28	  	415 Suspense Account	  	11
	2.29	  	Highly Compensated Employee	  	11
	2.30	  	Hour of Service	  	12
	2.31	  	Investment Manager	  	12
	2.32	  	Leased Employee	  	12

 TABLE OF CONTENTS 
  

					
		  		  	PAGE
			
	2.33	  	Leave of Absence	  	12
	2.34	  	Matched Deposits	  	14
	2.35	  	Matching Contributions	  	14
	2.36	  	Matching Contributions Account	  	14
	2.37	  	Normal Retirement Age	  	14
	2.38	  	Participant	  	14
	2.39	  	Participant Deposits	  	14
	2.40	  	Period of Severance	  	14
	2.41	  	Plan	  	14
	2.42	  	Plan Administrator	  	15
	2.43	  	Plan Year	  	15
	2.44	  	Reemployment Commencement Date	  	15
	2.45	  	Retirement Account Participant	  	15
	2.46	  	Retirement Contributions	  	15
	2.47	  	Retirement Contributions Account	  	15
	2.48	  	Rollover Contributions	  	15
	2.49	  	Rollover Contributions Account	  	15
	2.50	  	Severance	  	15
	2.51	  	Severance Date	  	16
	2.52	  	Sponsor	  	16
	2.53	  	Trust	  	16
	2.54	  	Trust Agreement	  	16
	2.55	  	Trustee	  	16
	2.56	  	Valuation Date	  	17
		
	ARTICLE III	  	
	ELIGIBILITY AND PARTICIPATION	  	18
			
	3.1	  	General Eligibility and Participation	  	18
	3.2	  	Eligibility for Retirement Contributions	  	18
	3.3	  	Duration of Participation	  	19
	3.4	  	Eligibility and Participation After Normal Retirement Age	  	19
		
	ARTICLE IV	  	
	PARTICIPANT DEPOSITS	  	20
			
	4.1	  	Election	  	20
	4.2	  	Amount Subject to Election	  	21
	4.3	  	Limitation on Compensation Deferrals	  	22
	4.4	  	Provisions for Return of Excess Before Tax Deposits	  	25
	4.5	  	 Provision for Recharacterization or Return of Excess Deferrals
 by Highly Compensated Participants
	  	27
	4.6	  	 Termination, Change in Rate, or Resumption of
 Before
Tax Deposits or After Tax Deposits
	  	29

  

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 TABLE OF CONTENTS 
  

					
		  		  	PAGE
			
	4.7	  	Character of Deposits	  	29
	4.8	  	Rollover Contributions	  	29
		
	ARTICLE V	  	
	TRUST FUND AND COMPANY CONTRIBUTIONS	  	32
			
	5.1	  	General	  	32
	5.2	  	Single Trust	  	32
	5.3	  	Matching Contributions	  	32
	5.4	  	Retirement Contributions	  	33
	5.5	  	Form of Company Contributions	  	33
	5.6	  	Investment of Trust Assets	  	33
	5.7	  	Irrevocability	  	36
	5.8	  	Company, Committee and Trustee Not Responsible for Adequacy of Trust Fund	  	37
	5.9	  	Certain Offers for Company Stock	  	37
	5.10	  	Voting of Company Stock	  	41
	5.11	  	Securities Law Limitation	  	42
	5.12	  	Distributions	  	43
	5.13	  	Taxes	  	43
	5.14	  	Trustee Records to be Maintained	  	43
	5.15	  	Annual Report of Trustee	  	43
	5.16	  	Appointment of Investment Manager	  	43
		
	ARTICLE VI	  	
	ACCOUNTS AND ALLOCATIONS	  	45
			
	6.1	  	Participants’ Accounts	  	45
	6.2	  	Allocation of Participant Deposits	  	45
	6.3	  	Allocation of Company Contributions and Forfeitures	  	45
	6.4	  	Valuation of Participants’ Accounts	  	46
	6.5	  	Valuation of Company Stock	  	46
	6.6	  	Dividends, Splits, Recapitalizations, Etc.	  	46
	6.7	  	Stock Rights, Warrants or Options	  	46
	6.8	  	Treatment of Accounts Upon Severance	  	47
	6.9	  	Cash Dividends	  	47
	6.10	  	Miscellaneous Allocation Rules	  	47
	6.11	  	Limitations on After Tax Deposits and Matching Contributions	  	48
	6.12	  	 Provision for Disposition of Excess After Tax Deposits or Matching Contributions
 on Behalf of Highly Compensated Participants
	  	52

  

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		  		  	PAGE
		
	ARTICLE VII	  	
	VESTING IN PLAN ACCOUNTS	  	55
			
	7.1	  	No Vested Rights Except as Herein Provided	  	55
	7.2	  	Vesting of Participant Deposits	  	55
	7.3	  	Vesting of Company Contributions	  	55
		
	ARTICLE VIII	  	
	PAYMENT OF PLAN BENEFITS	  	57
			
	8.1	  	Withdrawals During Employment	  	57
	8.2	  	Distributions Upon Termination of Employment or Disability	  	58
	8.3	  	Distribution Upon Death of Participant	  	59
	8.4	  	Designation of Beneficiary	  	59
	8.5	  	Hardship Withdrawal Rules	  	60
	8.6	  	Distribution Rules	  	61
	8.7	  	Forfeitures	  	67
	8.8	  	Valuation of Accounts Upon Distribution	  	68
	8.9	  	Lapsed Benefits	  	68
	8.10	  	Persons Under Legal Disability	  	69
	8.11	  	Additional Documents	  	70
	8.12	  	Trustee-to-Trustee Transfers	  	70
	8.13	  	Loans to Participants	  	70
		
	ARTICLE IX	  	
	OPERATION AND ADMINISTRATION	  	73
			
	9.1	  	Appointment of Committee	  	73
	9.2	  	Appointment of Investment Subcommittee	  	73
	9.3	  	Transaction of Business	  	73
	9.4	  	Voting	  	74
	9.5	  	Responsibility of Committees	  	74
	9.6	  	Committee Powers	  	75
	9.7	  	Additional Powers of Committee	  	76
	9.8	  	Investment Subcommittee Powers	  	76
	9.9	  	Periodic Review of Funding Policy	  	77
	9.10	  	Claims Procedures	  	77
	9.11	  	Appeals Procedures	  	78
	9.12	  	Limitation on Liability	  	79
	9.13	  	Indemnification and Insurance	  	79
	9.14	  	Compensation of Committees and Plan Expenses	  	79
	9.15	  	Resignation	  	80
	9.16	  	Reliance Upon Documents and Opinions	  	80

  

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 TABLE OF CONTENTS 
  

					
		  		  	PAGE
		
	ARTICLE X	  	
	AMENDMENT AND ADOPTION OF PLAN	  	81
			
	10.1	  	Right to Amend Plan	  	81
	10.2	  	Adoption of Plan by Affiliated Companies	  	81
		
	ARTICLE XI	  	
	DISCONTINUANCE OF CONTRIBUTIONS	  	82
		
	ARTICLE XII	  	
	TERMINATION AND MERGER	  	83
			
	12.1	  	Right to Terminate Plan	  	83
	12.2	  	Merger Restriction	  	83
	12.3	  	Effect on Trustee and Committee	  	83
	12.4	  	Effect of Reorganization, Transfer of Assets or Change in Control	  	83
		
	ARTICLE XIII	  	
	LIMITATION ON ALLOCATIONS	  	86
			
	13.1	  	General Rule	  	86
	13.2	  	Annual Additions	  	86
	13.3	  	Other Defined Contribution Plans	  	87
	13.4	  	Adjustments for Excess Annual Additions	  	87
	13.5	  	Compensation	  	87
	13.6	  	Treatment of 415 Suspense Account Upon Termination	  	88
		
	ARTICLE XIV	  	
	TOP-HEAVY RULES	  	89
			
	14.1	  	Applicability	  	89
	14.2	  	Definitions	  	89
	14.3	  	Top-Heavy Status	  	90
	14.4	  	Minimum Contributions	  	91
	14.5	  	Minimum Vesting Rules	  	92
	14.6	  	Noneligible Employees	  	92
		
	ARTICLE XV	  	
	RESTRICTION ON ASSIGNMENT OR OTHER ALIENATION OF PLAN BENEFITS	  	93
			
	15.1	  	General Restrictions Against Alienation	  	93
	15.2	  	Qualified Domestic Relations Orders	  	93

  

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 TABLE OF CONTENTS 
  

					
		  		  	PAGE
		
	ARTICLE XVI	  	
	MISCELLANEOUS PROVISIONS	  	97
			
	16.1	  	No Right of Employment Hereunder	  	97
	16.2	  	Effect of Article Headings	  	97
	16.3	  	Limitation on Company Liability	  	97
	16.4	  	Gender	  	97
	16.5	  	Interpretation	  	97
	16.6	  	Withholding For Taxes	  	97
	16.7	  	California Law Controlling	  	97
	16.8	  	Plan and Trust as One Instrument	  	97
	16.9	  	Invalid Provisions	  	97
	16.10	  	Counterparts	  	98
		
	APPENDIX A	  	

  

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 ALLERGAN, INC. 
 SAVINGS AND INVESTMENT PLAN 
 ARTICLE I 
 INTRODUCTION 
 1.1          Plan Name.  This document, made and entered into by Allergan, Inc., a Delaware corporation (“Allergan”), amends and restates in its entirety the
“Allergan, Inc. Savings and Investment Plan (Restated 2005)” and shall be known hereafter as the “Allergan, Inc. Savings and Investment Plan (Restated 2008).” 
 1.2          Plan Purpose.  The purpose of the Allergan, Inc. Savings and Investment
Plan (Restated 2008), hereinafter referred to as the “Plan,” is to enable Eligible Employees of Allergan, and any Affiliated Companies that are authorized by the Board of Directors to participate in the Plan, to share in the growth and
prosperity of the Company and to provide Participants with an opportunity to accumulate capital for their future economic security. All assets acquired under the Plan as a result of Participant Deposits and Company Contributions, income, and other
additions to the Fund under the Plan shall be administered, distributed, forfeited and otherwise governed by the provisions of the Plan, which is to be administered by the Committee for the exclusive benefit of Participants in the Plan and their
Beneficiaries. 
 1.3          Effective Date of 2008 Restated Plan.  The
Effective Date of this amended and restated Plan shall be January 1, 2008 unless otherwise specified in the Plan. The provisions of this Plan document apply generally to Employees who have completed at least one (1) Hour of Service for
Allergan or any Affiliated Companies on or after January 1, 2008 and the rights and benefits, if any, of Employees or Participants whose employment with Allergan or any Affiliated Companies terminated prior to January 1, 2008 shall be
determined in accordance with the provisions of the Plan then in effect unless otherwise provided herein and subject to any modification provided herein that may affect the holding or distribution of Participants’ Accounts. 
 1.4          Amendments to Plan.  The Plan has been amended from time to time since
its Original Effective Date of July 26, 1989 to reflect changes in the Plan’s operations and applicable law including, but not limited to, the following: 
 (a)        This Plan document that restates the Plan by incorporating the provisions of the
First, Second, and Third Amendments to the Allergan, Inc. Savings and Investment Plan (Restated 2005) and amends the Plan: (i) to comply with all changes made by the Economic Growth and Tax Relief Reconciliation Act of 2001 (with technical
corrections made by the Job Creation and Worker Assistance Act of 2002), the Pension Funding Equity Act of 2004, the American Jobs Creation Act of 2004, and the Gulf Opportunity Zone Act of 2005 as well as the changes to the qualification
requirements listed on the “2006 Cumulative List of Changes in Plan Qualification Requirements” as set forth in Notice 2007-3, and (ii) to comply with certain changes made by the Pension Protection Act of 2006 by (1) by treating
a Participant’s Beneficiary the same as the Participant’s spouse or dependent for purposes of the Plan’s hardship withdrawals, (2) expanding the 

 
Plan’s rollover distribution provisions to permit the direct rollover of after-tax contributions to and from an annuity contract described in Code
Section 403(b), and (3) permitting non-spouse beneficiaries to elect direct rollovers of lump sum distributions. 
 (b)        The Plan document for the Allergan, Inc. Savings and Investment Plan (Restated 2005) that incorporated the provisions of the First, Second, and Third Amendments to the Allergan, Inc.
Savings and Investment Plan (Restated 2003) and amended the Plan, effective March 28, 2005, so that the Plan’s mandatory distribution rule applies only to Accounts, the vested portions of which, do not exceed $1,000. 
 (c)        The Plan document for the Allergan, Inc. Savings and Investment Plan (Restated 2003)
that incorporated the provisions of the First Amendment to the Allergan, Inc. Savings and Investment Plan (Restated 2001) and amended the Plan to enhance Company Contributions made to the Plan by (i) increasing the Company’s Matching
Contributions from an average 50% match on certain Participant Deposits not to exceed 5% of Compensation to a 100% match on certain Participant Deposits not to exceed 4% of Compensation and (ii) adding a Retirement Contribution feature for
certain Eligible Employees hired on or after October 1, 2002 and other Eligible Employees who made a one-time irrevocable election to cease active participation in the Allergan, Inc. Pension Plan. 
 (d)        Amendments to the Plan that in accordance with Code Section 414(l), Regulation
Section 1.414(1)-1, and Section 208 of ERISA, (i) provided for the merger of the Inamed Corporation Retirement Savings Plan was with and into the Plan effective as of December 31, 2006 and provided further that all account
balances transferred to the Plan as a result of the merger are to be administered, distributed, forfeited and otherwise governed by the provisions of the Plan, (ii) in connection with the distribution of the stock of Advanced Medical Optics,
Inc. (“AMO”) by the Plan Sponsor to its stockholders on June 29, 2002, provided for the transfer of assets and liabilities attributable to the Accounts of AMO Employees (as defined in Section 2.24) from the Plan to the Advanced
Medical Optics, Inc. 401(k) Plan, a qualified profit sharing plan with a qualified cash or deferred arrangement, and the allocation of AMO stock to Participants’ Accounts, and (iii) provided for the merger of the Allergan, Inc. Puerto Rico
Savings and Investment Plan with and into the Plan effective as of January 1, 1999 and provided further that all account balances transferred to the Plan as a result of the merger are to be administered, distributed, forfeited and otherwise
governed by the provisions of the Plan and Appendix A, which is attached hereto and made a part hereof. 
 1.5          Plan Qualification.  The Plan is an employee benefit plan that is intended to qualify under Code Section 401(a) as a qualified profit sharing plan and
under Code Section 401(k) as a qualified cash or deferred arrangement. The Plan’s last determination letter was issued by the Internal Revenue Service on July 22, 2002 with respect to the Allergan, Inc. Savings and Investment Plan
(Restated 2001). This Plan document is intended to reflect all law changes made by the Economic Growth and Tax Relief Reconciliation Act of 2001 (with technical corrections made by the Job Creation and Worker Assistance Act of 2002), the Pension

  

 2 

 
Funding Equity Act of 2004, the American Jobs Creation Act of 2004, and the Gulf Opportunity Zone Act of 2005 as well as the changes to the qualification
requirements listed on the “2006 Cumulative List of Changes in Plan Qualification Requirements” as set forth in Notice 2007-3. 
  

 3 

 ARTICLE II 
 DEFINITIONS 
 2.1.          Accounts.  “Accounts” or “Participant’s Accounts” shall mean the After Tax Deposits Accounts, Before Tax Deposits Accounts, Matching
Contributions Accounts, Retirement Contributions Accounts, and Rollover Contributions Accounts maintained for the various Participants. 
 2.2.          Affiliated Company.  “Affiliated Company” shall mean (i) any corporation, other than the Sponsor, which is included in a controlled group of
corporations (within the meaning of Code Section 414(b)) of which the Sponsor is a member, (ii) any trade or business, other than the Sponsor, which is under common control (within the meaning of Code Section 414(c)) with the Sponsor,
(iii) any entity or organization, other than the Sponsor, which is a member of an affiliated service group (within the meaning of Code Section 414(m)) of which the Sponsor is a member, and (iv) any entity or organization, other than
the Sponsor, which is affiliated with the Sponsor under Code Section 414(o). An entity shall be an Affiliated Company pursuant to this Section only during the period of time in which such entity has the required relationship with the Sponsor
under clauses (i), (ii), (iii) or (iv) of this Section after the Original Effective Date of the Plan. 
 2.3.          After Tax Deposits.  “After Tax Deposits” shall mean those contributions made by a Participant which represent after-tax contributions. 

2.4.          After Tax Deposits Account.    “After Tax Deposits
Account” shall mean a Participant’s individual account in the Trust Fund in which are held his or her After Tax Deposits and the earnings thereon. 
 2.5.          Anniversary Date.  “Anniversary Date” shall mean the last day of each Plan Year. 
 2.6.          Before Tax Deposits.    “Before Tax Deposits” shall
mean those contributions made by a Participant which represent pre-tax contributions. 
 2.7.          Before Tax Deposits Account.    “Before Tax Deposits Account” shall mean a Participant’s individual account in the Trust Fund in which
are held his or her Before Tax Deposits, any pre-tax contributions (elective deferrals as defined in Code Section 402(g)(3)) transferred from the Participant’s account in the Inamed Corporation Retirement Savings Plan, and the earnings
thereon. Any pre-tax contributions transferred from a Participant’s account in the Inamed Corporation Retirement Savings Plan shall be fully vested 
 2.8.          Beneficiary.  “Beneficiary” or “Beneficiaries” shall mean the person or persons last designated by a Participant as
set forth in Section 8.4 or, if there is no designated Beneficiary or surviving Beneficiary, the person or persons designated pursuant to Section 8.4 to receive the interest of a deceased Participant in such event. 
  

 4 

 2.9.          Board of
Directors.  “Board of Directors” shall mean the Board of Directors of the Sponsor (or its delegate) as it may from time to time be constituted. 
 2.10.        Break in Service.  “Break in Service” shall mean, with respect to an Employee, each period of 12 consecutive months during a Period of
Severance that commences on the Employee’s Severance Date or on any anniversary of such Severance Date. 
 2.11.        Code.  “Code” shall mean the Internal Revenue Code of 1986 and the regulations thereunder. Reference to a specific Code Section shall be deemed also to
refer to any applicable regulations under that Section, and shall also include any comparable provisions of future legislation that amend, supplement or supersede that specific Section. 
 2.12.        Committee.  “Committee” shall mean the committee to be appointed under
the provisions of Section 9.1 to administer the Plan. 
 2.13.        Company.  “Company” shall mean collectively the Sponsor and each Affiliated Company that adopts the Plan in accordance with Section 10.2. 
 2.14.        Company Contributions.    “Company Contributions” shall mean
Matching Contributions and Retirement Contributions (whether in cash or other property, including Company Stock), paid by the Company pursuant to Sections 5.3 and 5.4 into the Trust Fund established and maintained under the provisions of the
Plan for the purpose of providing benefits for Participants and their Beneficiaries. Unless expressly stated otherwise in the Plan, Company Contributions shall not include Before Tax Deposits, After Tax Deposits, or Rollover Contributions.

 2.15.        Company Contributions Accounts.    “Company
Contributions Accounts” shall mean a Participant’s Matching Contributions Account and Retirement Contributions Account. 
 2.16.        Company Stock.  “Company Stock” shall mean any class of stock of the Sponsor which both constitutes “qualifying employer securities” as defined in
Section 407(d)(5) of ERISA and “employer securities” as defined in Code Section 409(l). 
 2.17.        Compensation.  “Compensation” shall mean the following: 
 (a)        Compensation shall include amounts paid during a Plan Year to a Participant by the Company for services rendered, including base earnings, commissions and similar
incentive compensation, cost of living allowances earned within the United States of America, holiday pay, overtime earnings, pay received for election board duty, pay received for jury and witness duty, pay received for military service (annual
training), pay received for being available for work, if required (call-in premium), shift differential and premium, sickness/accident related pay, vacation pay (other than as excluded in paragraph (c) below), vacation shift premium, and bonus
amounts paid under the (i) Sales Bonus Program, (ii) Management Bonus Plan or Executive Bonus Plan, either in cash or in restricted stock, and (iii) group performance sharing payments, such as the “Partners for Success.”

  

 5 

 (b)        Compensation shall include amounts of
salary reduction elected by a Participant under a Code Section 401(k) cash or deferred arrangement, a Code Section 125 cafeteria plan and, solely for purposes of determining Retirement Contributions under Section 5.4, amounts deferred
under the Executive Deferred Compensation Plan. 
 (c)        Compensation shall not
include business expense reimbursements; Company gifts or the value of Company gifts; Company stock related options and payments; employee referral awards; flexible compensation credits paid in cash; special overseas payments, allowances and
adjustments including, but not limited to, pay for cost of living adjustments and differentials paid for service outside of the United States, expatriate reimbursement payments, and tax equalization payments; forms of imputed income; long-term
disability pay; payment for loss of Company car; Company car allowance; payments for patents or for writing articles; relocation and moving expenses; retention and employment incentive payments; severance pay; long-term incentive awards, bonuses or
payments; “Impact Award” payments; “Employee of the Year” payments; “Awards for Excellence” payments; “Hidden Gem Award” payments; special group incentive payments and individual recognition payments which are
nonrecurring in nature; tuition reimbursement; lump sum amounts paid to Employees under the Company’s vacation buy-back policy; and contributions by the Company under the Plan or distributions hereunder, any contributions or distributions
pursuant to any other plan sponsored by the Company and qualified under Code Section 401(a) (other than contributions constituting salary reduction amounts elected by the Participant under a Code Section 401(k) cash or deferred
arrangement), any payments under a health or welfare plan sponsored by the Company, or premiums paid by the Company under any insurance plan for the benefit of Employees. 
 (d)        Solely for purposes of determining Retirement Contributions under Section 5.4,
Compensation shall include compensation paid by Oculex Pharmaceuticals, Inc. to an Eligible Employee prior to Oculex Pharmaceuticals, Inc. becoming an Affiliated Company but only to the extent provided in paragraphs (a), (b), and (c) above
and only to the extent of compensation paid by Oculex Pharmaceuticals, Inc. in 2003. 
 (e)        Compensation for any Plan Year shall not include amounts in excess of $210,000, as adjusted for cost-of-living increases in accordance with Code Section 401(a)(17)(B) for purposes of
determining all benefits provided under the Plan for any Plan Year. Any cost-of-living adjustments in effect for a calendar year shall apply to the Plan Year beginning with or within such calendar year. 
 (f)        Notwithstanding the foregoing, for purposes of applying the provisions of
Articles XIII and XIV, a Participant’s Compensation shall be determined pursuant to the definition of “Compensation” as set forth in Section 13.5 or 14.2(i), as the case may be. 
  

 6 

 2.18.      Credited Service.  “Credited Service”
shall mean, with respect to each Employee, his or her years and months of Credited Service determined in accordance with the following rules: 
 (a)        In the case of any Employee who was employed by the Company at any time prior to the Original Effective Date, for the period prior to January 1, 1989 such
Employee shall be credited with Credited Service under the Plan equal to the period (if any) of service credited to such Employee under the SmithKline Beckman Savings and Investment Plan. 
 (b)        In the case of any Employee who is employed by the Company on or after the Original
Effective Date, an Employee shall receive Credited Service for the elapsed period of time between each Employment Commencement Date (or Reemployment Commencement Date) of the Employee and the Severance Date which immediately follows that Employment
Commencement Date (or Reemployment Commencement Date). Solely for the purpose of determining an Employee’s Credited Service under this paragraph (b), in the case of an Employee who is employed on January 1, 1989, that date shall be
deemed to be an Employment Commencement Date of the Employee (with service credit for periods prior to January 1, 1989 to be determined under paragraph (a) above). An Employee who is absent from work on an authorized Leave of Absence shall
be deemed to have incurred a Severance (if any) in accordance with the rules of Section 2.50. 
 (c)        An Employee shall receive Credited Service credit for periods between a Severance and his or her subsequent Reemployment Commencement Date in accordance with the following rules:

 (i)        If an Employee incurs a Severance by reason of a quit, discharge,
Disability, or retirement whether or not such a Severance occurs during an approved Leave of Absence and the Employee is later reemployed by the Company prior to his or her incurring a Break in Service, he or she shall receive Credited Service for
the period commencing with his or her Severance Date and ending with his or her subsequent Reemployment Commencement Date. 
 (ii)       Other than as expressly set forth above in this paragraph (c), an Employee shall receive no Credited Service with respect to periods between a Severance and a subsequent Reemployment
Commencement Date. 
 (d)        For all purposes of the Plan, an Employee’s
total Credited Service shall be determined by aggregating any separate periods of Credited Service separated by any Breaks in Service. 
 (e)        An Employee shall be credited with Credited Service with respect to a period of employment with an Affiliated Company, but only to the extent that such period of
employment would be so credited under the foregoing rules set forth in this Section had such Employee been employed during such period by the Company. 
  

 7 

 (f)        Notwithstanding the foregoing, unless
the Sponsor shall so provide by resolution of its Board of Directors, or unless otherwise expressly stated in the Plan, an Employee shall not receive such Credited Service credit for any period of employment with an Affiliated Company prior to such
entity becoming an Affiliated Company. 
 (g)        In accordance with
paragraph (f) above, an Eligible Employee shall receive Credited Service for any period of employment with Allergan Medical Optics - Lenoir facility, Oculex Pharmaceuticals, Inc., or Inamed Corporation and any subsidiary of Inamed Corporation
prior to each becoming an Affiliated Company but only to the extent provided in paragraph (e) above. Notwithstanding anything in this Section to the contrary and for purposes of this Plan only, the Employment Commencement Date (or Reemployment
Commencement Date) of an Eligible Employee described in this paragraph (g) shall mean, for purposes of paragraph (b), the date (or, in the case of a Reemployment Commencement Date, the date following a Severance) on which the Eligible Employee
was first credited with an Hour of Service with Allergan Medical Optics - Lenoir facility, Oculex Pharmaceuticals, Inc., or Inamed Corporation and any subsidiary of Inamed Corporation including any date prior to Allergan Medical Optics - Lenoir
facility, Oculex Pharmaceuticals, Inc., or Inamed Corporation and any subsidiary of Inamed Corporation becoming an Affiliated Company. 
 (h)        In accordance with paragraph (f) above, an Eligible Employee who was employed by Esprit Pharma, Inc. on October 16, 2007 and who is classified or identified
as such in the payroll records of the Company or in the Stock Purchase Agreement by and between Allergan, Inc. and Esprit Pharma, Inc. shall, for purposes of the vesting and in-service withdrawal provisions of the Plan only, receive Credited
Service for any period of employment with Esprit Pharma, Inc. prior to it becoming an Affiliated Company but only to the extent provided in paragraph (e) above. Notwithstanding anything in this Section to the contrary and for purposes of
determining Credited Service under this paragraph, the Employment Commencement Date (or Reemployment Commencement Date) of an Eligible Employee described in this paragraph (i) shall mean, for purposes of paragraph (b), the date (or, in the case
of a Reemployment Commencement Date, the date following a Severance) on which the Eligible Employee was first credited with an Hour of Service with Esprit Pharma, Inc. including any date prior to Esprit Pharma, Inc. becoming an Affiliated Company.

 (i)        Notwithstanding any provision of the Plan to the contrary,
contributions, benefits and service credit with respect to qualified military service shall be provided in accordance with Code Section 414(u). 
 2.19.      Disability.  “Disability” shall mean any mental or physical condition which, in the judgment of the Committee, based on such competent medical
evidence as the Committee may require, renders an individual unable to engage in any substantial gainful activity for the Company for which he or she is reasonably fitted by education, training, or experience and which condition can be expected to
result in death or which has lasted or can be expected to last for a continuous period of at least 12 months. The determination by the Committee, upon 

  

 8 

 
opinion of a physician selected by the Committee, as to whether a Participant has incurred a Disability shall be final and binding on all persons.

 2.20.      Effective Date.  “Effective Date” of this restated Plan shall mean
January 1, 2008 unless otherwise specified in the Plan. The “Original Effective Date” of the Plan shall mean July 26, 1989. 
 2.21.      Eligible Employee.  “Eligible Employee” shall mean any United States-based payroll Employee and any Puerto Rico-based payroll Employee of the Company and any expatriate
Employee of the Company who is a United States citizen or permanent resident, but excluding: 
 (a)        any non-resident alien of the United States and Puerto Rico, non-regular manufacturing site transition Employee, Leased Employee, or Employee covered by a collective bargaining agreement;
and 
 (b)        prior to January 1, 2007, any Employee who is employed by
(i) Inamed Corporation and any of its subsidiaries (or any Affiliated Company that is designated by the Sponsor as a successor thereto) on or after the “Effective Time” as defined in the Agreement and Plan of Merger dated as of
December 20, 2005 by and among Allergan, Inc., Banner Acquisition, Inc., and Inamed Corporation or (ii) the Company as of the date he or she becomes classified as “Inamed-benefited” in the payroll records of the Company.

 2.22.      Eligible Retirement Plan.  “Eligible Retirement Plan” shall mean
(i) an individual retirement account or annuity described in Code Section 408(a) or 408(b), (ii) a qualified retirement plan described in Code Section 401(a) or 403(a) that accepts Eligible Rollover Distributions, (iii) an
annuity contract described in Code Section 403(b) that accepts Eligible Rollover Distributions, and (iv) an eligible plan described in Code Section 457(b) which is maintained by a state, political subdivision of a state, or any agency
or instrumentality of a state or political subdivision of a state that accepts Eligible Rollover Distributions and agrees to separately account for amounts transferred into such plan from this Plan. Notwithstanding the foregoing, “Eligible
Retirement Plan” shall mean an individual retirement account or annuity described in Code Section 408(a) or 408(b) with respect to a non-spouse Beneficiary. 
 2.23.      Eligible Rollover Distribution.  “Eligible Rollover Distribution” shall mean any distribution of all or any portion of the balance to the credit of
the Distributee, except that an Eligible Rollover Distribution shall not include: 
 (a)        any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the Distributee of the joint
lives (or joint life expectancies) of the Distributee and the Distributee’s designated beneficiary, or for a specified period of ten years or more; 
 (b)        any distribution to the extent such distribution is required under Code Section 401(a)(9); 
  

 9 

 (c)        the portion of any distribution that
is not includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); 
 (d)        any hardship withdrawal made pursuant to Section 8.1(e); and 
 (e)        any other distribution that is reasonably expected to total less than $200 during the year. 
 A portion of a distribution shall not fail to be an Eligible Rollover Distribution merely because the portion consists of After Tax Deposits or the
portion consists of rollover after tax employee contributions made pursuant to Section 4.8. which are not includible in gross income. However, such portion(s) may be transferred only to an individual retirement account or annuity described in
Code Section 408(a) or 408(b), to a qualified defined contribution plan described in Code Section 401(a) or 403(a) or, on or after January 1, 2007, to an annuity contract described in Code Section 403(b) that agrees to separately
account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. For purposes of this Section,
“Distributee” shall mean any Employee or former Employee receiving a distribution from the Plan. A Distributee also includes the Employee or former Employee’s surviving spouse and the Employee or former Employee’s spouse or
former spouse who is the Alternate Payee under a Qualified Domestic Relations Order (as defined in Article XV) with regard to the interest of the spouse or former spouse and, on or after, January 1, 2007, the Employee or former Employee’s
Beneficiary. 
 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 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 

  

 10 

 
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. 
 2.25.      Employment Commencement Date.    “Employment Commencement Date” shall mean
the date on which an Employee is first credited with an Hour of Service for the Sponsor or an Affiliated Company. An Employee shall not, for the purpose of determining his or her Employment Commencement Date, be deemed to have commenced employment
with an Affiliated Company prior to the effective date on which the entity became an Affiliated Company unless the Sponsor expressly determines otherwise, and except as is expressly provided otherwise in the Plan or in resolutions of the Board of
Directors. 
 2.26.      ERISA.    “ERISA” shall mean the Employee
Retirement Income Security Act of 1974 and the regulations thereunder. Reference to a specific ERISA Section shall be deemed also to refer to any applicable regulations under that Section, and shall also include any comparable provisions of future
legislation that amend, supplement or supersede that specific Section. 
 2.27.      Forfeitures.    “Forfeitures” shall mean the nonvested portion of a Participant’s Matching Contributions Account or Retirement Contributions Account,
whichever the case may be, that is forfeited in accordance with the provisions of Article VIII. 
 2.28.      415 Suspense Account.    “415 Suspense Account” shall mean the account (if any) established and maintained in accordance with the provisions of Article XIII for
the purpose of holding and accounting for allocations of excess Annual Additions (as defined in Article XIII). 
 2.29.      Highly Compensated Employee.    “Highly Compensated Employee” shall mean: 
  (a)        An Employee who performed services for the Employer during the Plan Year or
preceding Plan Year and is a member of one or more of the following groups: 
 (i)        Employees who at any time during the Plan Year or preceding Plan Year were Five Percent Owners (as defined in Section 14.2). 
 (ii)       Employees who received Compensation during the preceding Plan Year from the Employer in
excess of $80,000 (as adjusted in such manner as permitted under Code Section 414(q)(1)). 
  (b)        For the purpose of this Section, the term “Compensation” means compensation as defined in Code Section 415(c)(3), as set forth in Section 13.5. 

 (c)        The term “Highly Compensated Employee” includes a Former Highly
Compensated Employee. A Former Highly Compensated Employee is any Employee who was (i) a Highly Compensated Employee when he or she terminated employment 

  

 11 

 
with the Employer or (ii) a Highly Compensated Employee at any time after attaining age 55. Notwithstanding the foregoing, an Employee who
separated from service prior to 1987 shall be treated as a Former Highly Compensated Former Employee only if during the separation year (or year preceding the separation year) or any year after the Employee attains age 55 (or the last year ending
before the Employee’s 55th birthday), the Employee either received Compensation in excess of $50,000 or was a Five Percent Owner. 
  (d)        For the purpose of this Section, the term “Employer” shall mean the Sponsor and any Affiliated Company. 
  (e)        The determination of who is a Highly Compensated Employee, including the
determination of the Compensation that is considered, shall be made in accordance with Code Section 414(q) and applicable regulations to the extent permitted thereunder. The Committee, for administrative convenience, may establish rules and
procedures for purposes of identifying Highly Compensated Employees, which rules and procedures may result in an Eligible Employee being deemed to be a Highly Compensated Employee for purposes of the limitations of Article IV and Article VI, whether
or not such Eligible Employee is a Highly Compensated Employee described in Code Section 414(q). 
 2.30.      Hour of Service.    “Hour of Service” shall mean an hour for which an Employee is paid or entitled to payment for the performance of duties for the Sponsor and
any Affiliated Company. 
 2.31.      Investment Manager.    “Investment
Manager” shall mean the one or more Investment Managers, if any, that are appointed pursuant to Section 5.16 and who constitute investment managers under Section 3(38) of ERISA. 
 2.32.      Leased Employee.    “Leased Employee” shall mean any person (other than an
Employee of the recipient) who pursuant to an agreement between the recipient and any other person (“leasing organization”) has performed services for the recipient (or for the recipient and related persons determined in accordance with
Code Section 414(n)(6)) on a substantially full time basis for a period of at least one (1) year, and such services are performed under the primary direction or control by recipient employer. Contributions or benefits provided to a Leased
Employee by a leasing organization which are attributable to services performed for the recipient employer shall be treated as provided by the recipient employer. A Leased Employee shall not be considered an Employee of the recipient if Leased
Employees do not constitute more than 20 percent of the recipient’s nonhighly compensated workforce and such Leased Employee is covered by a money purchase pension plan providing (i) a nonintegrated employer contribution rate of at
least ten (10) percent of compensation as defined under Code Section 415(c)(3); (ii) immediate participation; and (iii) full and immediate vesting. 
 2.33.      Leave of Absence. 
  (a)        “Leave of Absence” shall mean any personal leave from active employment (whether with or without pay) duly authorized by the Company under the 

  

 12 

 
Company’s standard personnel practices. All persons under similar circumstances shall be treated alike in the granting of such Leaves of Absence. Leaves
of Absence may be granted by the Company for reasons of health (including temporary sickness or short term disability) or public service or for any other reason determined by the Company to be in its best interests. 
  (b)        In addition to Leaves of Absence as defined in paragraph (a) above, the
term Leave of Absence shall also mean a Maternity or Paternity Leave, as defined herein, but only to the extent and for the purposes required under paragraph (c) below. As used herein, “Maternity or Paternity Leave” shall mean an
absence from work for any period (i) by reason of the pregnancy of the Employee, (ii) by reason of the birth of a child of the Employee, (iii) by reason of the placement of a child with the Employee in connection with the
adoption of the child by the Employee, or (iv) for purposes of caring for the child for a period beginning immediately following the birth or placement referred to in clauses (ii) or (iii) above. 
  (c)        Subject to the provisions of paragraph (d) below, a Maternity or Paternity
Leave described in paragraph (b) above shall be deemed to constitute an authorized Leave of Absence for purposes of the Plan only to the extent consistent with the following rules: 
 (i)        For purposes of determining whether a Break in Service has occurred, the Severance
Date of a Participant who is absent by reason of a Maternity or Paternity Leave shall not be deemed to occur any earlier than the second anniversary of the date upon which such Maternity or Paternity Leave commences. 
 (ii)       The Maternity or Paternity Leave shall be treated as a Leave of Absence solely for
purposes of determining whether or not an Employee has incurred a Break in Service. Accordingly, such a Maternity or Paternity Leave shall not result in an accrual of Credited Service for purposes of the vesting provisions of the Plan or for
purposes of the eligibility and participation provisions of Article III (except only in determining whether a Break in Service has occurred). 
 (iii)      A Maternity or Paternity Leave shall not be treated as a Leave of Absence unless the Employee provides such timely information as the Committee may reasonably require to
establish that the absence is for the reasons listed in paragraph (b) above and to determine the number of days for which there was such an absence. 
  (d)        Notwithstanding the limitations provided in paragraph (c) above, a Maternity or Paternity Leave described in paragraph (b) above shall be treated as
an authorized Leave of Absence, as described in paragraph (a), for all purposes of the Plan to the extent the period of absence is one authorized as a Leave of Absence under the Company’s standard personnel practices and thus is covered by
the provisions of 

  

 13 

 
paragraph (a) above without reference to the provisions of paragraph (b) above, provided, however, that the special rule provided under this
paragraph (d) shall not apply if it would result in a Participant who is absent on a Maternity or Paternity Leave being deemed to have incurred a Break in Service sooner than under the rules set forth in paragraph (c). 
 2.34.      Matched Deposits.    “Matched Deposits” of a Participant shall mean his or
her Participant Deposits (whether Before Tax, including “catch up” Before Tax Deposits described in Section 4.2(e) or After Tax but excluding Rollover Contributions) not in excess of four percent (4%) of Compensation. Matched
Deposits shall participate in allocations of Matching Contributions and Matching Contribution Forfeitures. 
 2.35.      Matching Contributions.    “Matching Contributions” shall mean all amounts (whether in cash or other property, including Company Stock) paid by the Company
pursuant to Sections 5.3(a) and 5.3(b) into the Trust Fund established and maintained under the provisions of the Plan for the purpose of providing benefits for Participants and their Beneficiaries. 
 2.36.      Matching Contributions Account.    “Matching Contributions Account” shall
mean a Participant’s individual account in the Trust Fund in which are held Matching Contributions, any amounts transferred from the Participant’s account in the SmithKline Beckman Savings and Investment Plan to the Plan, any matching
contributions transferred from the Participant’s account in the Inamed Corporation Retirement Savings Plan, and the earnings thereon. Any amounts transferred from the Participant’s account in the SmithKline Beckman Savings and Investment
Plan shall be fully vested. Any matching contributions transferred from a Participant’s account in the Inamed Corporation Retirement Savings Plan shall be fully vested including the matching contributions of a Participant who terminated prior
to December 31, 2006 so long as his or her Participant’s account in the Inamed Corporation Retirement Savings Plan was greater than zero on December 31, 2006. 
 2.37.      Normal Retirement Age.    “Normal Retirement Age” shall mean a
Participant’s sixty-fifth (65th) birthday. 
 2.38.      Participant.      “Participant” shall mean any Eligible Employee or former Eligible Employee who has commenced participation in the Plan pursuant to
Section 3.1 and who retains rights under the Plan. 
 2.39.      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. 
 2.40.      Period of Severance.    “Period of Severance” shall mean the period of time
commencing on an Employee’s Severance Date and ending on the Employee’s subsequent Reemployment Commencement Date, if any. 
 2.41.      Plan.    “Plan” shall mean the Allergan, Inc. Savings and Investment Plan described herein and as amended from time to time. 
  

 14 

 2.42.      Plan Administrator.    “Plan
Administrator” shall mean the administrator of the Plan within the meaning of Section 3(16)(A) of ERISA. The Plan Administrator shall be the Allergan Executive Committee whose members are appointed by the Board of Directors pursuant to the
provisions of Section 9.1 to administer the Plan. 
 2.43.      Plan
Year.    “Plan Year” shall mean the calendar year. 
 2.44.      Reemployment Commencement Date.    “Reemployment Commencement Date” shall mean, in the case of an Employee who incurs a Severance and who is subsequently
reemployed by the Sponsor or an Affiliated Company, the first day following the Severance on which the Employee is credited with an Hour of Service for the Sponsor or an Affiliated Company with respect to which he or she is compensated or entitled
to compensation by the Sponsor or an Affiliated Company. An Employee shall not, for the purpose of determining his or her Reemployment Commencement Date, be deemed to have commenced employment with an Affiliated Company prior to the effective date
on which such entity becomes an Affiliated Company unless the Sponsor shall expressly determine otherwise, and except as is expressly provided otherwise in the Plan or in resolutions of the Board of Directors. 
 2.45.      Retirement Account Participant.    “Retirement Account Participant” shall
mean any Eligible Employee who has met the eligibility requirements of Section 3.2 but excluding any Eligible Employee who is an “Active Participant” in the Allergan, Inc. Pension Plan as such term is defined therein. 
 2.46.      Retirement Contributions.    “Retirement Contributions” shall mean all
amounts (whether in cash or other property, including Company Stock) paid by the Company pursuant to Section 5.4 into the Trust Fund established and maintained under the provisions of the Plan for the purpose of providing benefits for
Participants and their Beneficiaries. 
 2.47.      Retirement Contributions
Account.    “Retirement Contributions Account” shall mean a Participant’s individual account in the Trust Fund in which are held Retirement Contributions and the earnings thereon. 
 2.48.      Rollover Contributions.    “Rollover Contributions” shall mean those
contributions made by a Participant pursuant to Section 4.8. 
 2.49.      Rollover Contributions
Account.    “Rollover Contributions Account” shall mean a Participant’s individual account in the Trust Fund in which are held Rollover Contributions made pursuant to Section 4.8. 
 2.50.      Severance.    “Severance” shall mean the termination of an Employee’s
employment with the Sponsor or an Affiliated Company by reason of such Employee’s quit, discharge, Disability, death, retirement, or otherwise. For purposes of determining whether an Employee has incurred a Severance, the following rules shall
apply: 
 (a)        An Employee shall not be deemed to have incurred a Severance
(i) because of his or her absence from employment with the Sponsor or an Affiliated 

  

 15 

 
Company by reason of any paid vacation or holiday period, or (ii) by reason of any Leave of Absence, subject to the provisions of paragraph (b)
below. 
  (b)        For purposes of the Plan, an Employee shall be deemed to
have incurred a Severance on the earlier of (i) the date on which he or she dies, resigns, is discharged, or otherwise terminates his or her employment with the Sponsor or an Affiliated Company; or (ii) the date on which he or she is
scheduled to return to work after the expiration of an approved Leave of Absence, if he or she does not in fact return to work on the scheduled expiration date of such Leave. In no event shall an Employee’s Severance be deemed to have occurred
before the last day on which such Employee performs any services for the Sponsor or an Affiliated Company in the capacity of an Employee with respect to which he or she is compensated or entitled to compensation by the Sponsor or an Affiliated
Company. 
  (c)        Notwithstanding the foregoing, in the case of a
Participant who is absent by reason of a Maternity or Paternity Leave, the provisions of Section 2.33(c)-(d) shall apply for purposes of determining whether such a Participant has incurred a Break in Service by reason of such Leave.

 2.51.      Severance Date.    “Severance Date” shall mean, in the case
of any Employee who incurs a Severance, the day on which such Employee is deemed to have incurred said Severance as determined in accordance with the provisions of Section 2.50, provided, however, that the special rules set forth under
Section 2.33(c)-(d) shall apply with respect to determining whether a Participant on a Maternity or Paternity Leave has incurred a Break in Service. In the case of any Employee who incurs a Severance as provided under Section 2.50 and
who is entitled to a subsequent payment of compensation for reasons other than future services (e.g., as back pay for past services rendered or as payments in the nature of severance pay), the Severance Date of such Employee shall be as of the
effective date of the Severance event (e.g., the date of his or her death, effective date of a resignation or discharge, etc.), and the subsequent payment of the aforementioned type of post-Severance compensation shall not operate to postpone the
timing of the Severance Date for purposes of the Plan. 
 2.52.      Sponsor.    “Sponsor” shall mean Allergan, Inc., a Delaware corporation, and any successor corporation or entity. 
 2.53.      Trust.    “Trust” or “Trust Fund” shall mean the trust maintained
pursuant to the Trust Agreement and as described in Section 5.1 hereof, which shall hold all cash and securities and all other assets of whatsoever nature deposited with or acquired by the Trustee in its capacity as Trustee hereunder, together
with accumulated net earnings. 
 2.54.      Trust Agreement.    “Trust
Agreement” shall mean the agreement between the Trustee and the Sponsor pursuant to which the Trust is maintained. 
 2.55.      Trustee.    “Trustee” shall mean the individual or entity acting as a trustee of the Trust Fund. 
  

 16 

 2.56.      Valuation Date.    “Valuation
Date” shall mean the date as of which the Trustee shall determine the value of the assets in the Trust Fund for purposes of determining the value of each Account, which shall be each business day in accordance with rules applied in a consistent
and uniform basis. 
  

 17 

 ARTICLE III 
 ELIGIBILITY AND PARTICIPATION 
 3.1        General
Eligibility and Participation.    An Eligible Employee shall participate in the Plan on the later of: (i) his or her Employment Commencement Date or (ii) the date he or she becomes an Eligible Employee. A
Participant who incurs a Severance shall participate in the Plan immediately upon his or her Reemployment Commencement Date so long as he or she is reemployed as an Eligible Employee. 
 3.2        Eligibility for Retirement Contributions.    An Eligible Employee shall be
eligible to receive allocations of Retirement Contributions as provided in Section 5.4 only if he or she is a Retirement Account Participant as described below: 
  (a)        An Eligible Employee shall become a Retirement Account Participant on the date
that immediately follows the later of: 
 (i)        The date such Eligible Employee
performs an Hour of Service as an Eligible Employee; 
 (ii)       The date such Eligible
Employee completes six (6) months of Credited Service with the Sponsor or an Affiliated Company as an Employee; or 
 (iii)      The date such Eligible Employee ceases to be an “Active Participant” in the Allergan, Inc. Pension Plan as such term is defined therein. 
  (b)        A Participant who becomes a Retirement Account Participant shall remain an
active Retirement Account Participant until he or she: (i) incurs a Severance, (ii) transfers employment to an Affiliated Company that has not adopted the Plan pursuant to Section 10.2, or (iii) is no longer an Eligible Employee
even though he or she remains an Employee of the Company, at which time such Retirement Account Participant shall become an inactive Retirement Account Participant and shall no longer be eligible to receive allocations of Retirement Contributions as
provided in Section 5.4. 
  (c)        A Retirement Account Participant or
an Employee who is not a Retirement Account Participant but who has completed the service requirement specified in paragraph (a)(i) above shall, if he or she incurs a Severance and is subsequently reemployed as an Eligible Employee, become a
Retirement Account Participant immediately upon his or her Reemployment Commencement Date. A Retirement Account Participant who becomes an inactive Retirement Account Participant shall become a Retirement Account Participant upon the date he or she
resumes Eligible Employee status. An Employee who has not completed the service requirement specified in paragraph (a)(i) above shall, if he or she incurs a Severance and is subsequently reemployed, become a Retirement Account Participant on
the date determined under paragraph (a) above. 
  

 18 

 3.3        Duration of
Participation.    An Eligible Employee who becomes a Participant shall remain an active Participant until he or she incurs a Severance, at which time he or she shall become an inactive Participant until he or she receives a
distribution of the entire vested portion of his or her Accounts. Once such a distribution is made, such Participant shall no longer be considered a Participant in the Plan. A Participant who (i) transfers out of employment with the Company but
who remains an Employee of an Affiliated Company that has not adopted the Plan pursuant to Section 10.2, or (ii) remains an Employee of the Company but is no longer an Eligible Employee, shall become an inactive Participant. 
 3.4        Eligibility and Participation After Normal Retirement Age.    An Eligible
Employee may become, or continue as, a Participant or a Retirement Account Participant after reaching his or her Normal Retirement Age in the same manner as an Eligible Employee who has not reached his or her Normal Retirement Age. 
  

 19 

 ARTICLE IV 
 PARTICIPANT DEPOSITS 
 4.1        Election.

  (a)        Each Eligible Employee may elect to defer the receipt of a
portion of his or her Compensation and to have the deferred amount contributed directly by the Company to the Plan as Before Tax Deposits. Before Tax Deposits may be made only by means of payroll deduction. 
  (b)        Each Eligible Employee may elect to contribute to the Plan a portion of his or
her Compensation as After Tax Deposits. After Tax Deposits may be made only by means of payroll deduction. 
  (c)        The Committee shall prescribe procedures to implement automatic enrollment elections, pursuant to which an Eligible Employee or, if limited to newly hired Eligible Employees as
determined by the Committee, shall be deemed to have elected to defer the receipt of three percent (3%) of his or her Compensation and to have such deferred amount contributed directly by the Company to the Plan as Before Tax Deposits if such
Eligible Employee fails to change or terminate the automatic election for any Plan Year within the time period prescribed by the Committee (or, in the case of newly hired Eligible Employee, he or she fails to change or terminate the automatic
election within 30 days of his or her hire date). Such procedures shall require that an Eligible Employee receive a written notice of explanation of the automatic election informing the Eligible Employee of the effective date of the automatic
election, the automatic deferral percentage and his or her right to terminate the automatic election or to change the amount of his or her Before Tax Deposits made to the Plan as well as the procedures for exercising such rights and the timing for
implementing a different election. An automatic election under this paragraph (c) shall be effective as of the first pay period of the Plan Year (or, in the case of newly hired Eligible Employee, the first pay period following the 30-day period
beginning on his or her date of hire) and shall remain in effect until superseded by a subsequent election by the Eligible Employee. Amounts contributed directly by the Company to the Plan under this paragraph (c) shall be invested in the
Balanced Fund described in Section 5.6(b) until superseded by a subsequent election by the Eligible Employee. 
  (d)        Notwithstanding anything in this Section to the contrary, a Participant who makes a withdrawal of After Tax Deposits (whether Matched Deposits or non-Matched Deposits) pursuant to
Section 8.1(a) or a hardship withdrawal pursuant to Section 8.1(e) shall not be permitted to make Before Tax Deposits or After Tax Deposits to the Plan during the 6-month period beginning as soon as administratively feasible following the
date of the hardship withdrawal. The foregoing sentence shall not apply to a withdrawal of After Tax Deposits if the After Tax Deposits can also be withdrawn under Section 8.1(d) or the withdrawal is comprised solely of After Tax Deposits which
are not Matched Deposits and which were contributed prior to July 1, 2000. 
  

 20 

  (e)        The Committee shall prescribe
such procedures, either in writing or in practice, and provide such forms as are necessary or appropriate for each Participant and each Eligible Employee who will become a Participant to make Deposits pursuant to this Article IV subject,
however to the requirement that an election by a Participant shall not be adopted retroactively. 
 4.2        Amount Subject to Election. 
  (a)        Each Participant may elect to contribute a whole percentage of his or her Compensation to the Plan as Before Tax Deposits not to exceed the lesser of one hundred percent
(100%) when aggregated with the After Tax Deposits contributed by such Participant pursuant to paragraph (b) below. Notwithstanding the foregoing except to the extent permitted under the catch-up provisions of paragraph (e) below and
Code Section 414(v), no Participant shall be permitted to make Before Tax Deposits to the Plan during any taxable year in excess of: (i) $12,000 (or such larger amount as may be determined by the Secretary of the Treasury pursuant to Code
Section 402(g), hereinafter referred to as the “Before Tax Deposit Limit”, (ii) the Actual Deferral Percentage test limitation set forth in Section 4.3, or (iii) the Annual Addition limitation set forth in
Section 13.1. For purposes of the Before Tax Deposit Limit described in preceding clause (i), the Before Tax Deposits of a Participant for any taxable year is the sum of all Before Tax Deposits under the Plan and all salary reduction amounts
under any other qualified cash or deferred arrangement (as defined in Code Section 401(k)), a simplified employee pension (as defined in Code Section 408(k) and Code Section 402(h)(1)(B)), a deferred compensation plan under Code
Section 457, a trust described in Code Section 501(c)(18) and any salary reduction amount used to purchase an annuity contract under Code Section 403(b) whether or not sponsored by the Company but shall not include any amounts
properly distributed as excess annual additions. 
  (b)        Each Participant
may elect to contribute a whole percentage of his or her Compensation to the Plan as After Tax Deposits not to exceed one hundred percent (100%) when aggregated with the Before Tax Deposits contributed by such Participant pursuant to paragraph
(a) above. Notwithstanding the foregoing, no Participant shall be permitted to make After Tax Deposits to the Plan during any Plan Year in excess of the Actual Contribution Percentage test limitation set forth in Section 6.11 or the Annual
Addition limitation set forth in Section 13.1 and the Committee may, in its discretion, establish an “After Tax Deposit Limit” for a Plan Year. 
  (c)        Notwithstanding paragraphs (a) and (b), a Participant’s combined
Before Tax Deposits and After Tax Deposits shall not exceed a Participant’s Compensation net of his or her salary deductions or reductions (including but not limited to, federal withholding taxes and “FICA” taxes deducted pursuant
Code Sections 3102 and 3402, respectively, withholding of state taxes, and amounts contributed by the Company pursuant to a salary reduction agreement which are excludable from an Employee’s gross income under Code Sections 125,
132(f)(4), 402(e)(3), 402(h)(1)(B) and 403(b)) as determined by the payroll records of the Sponsor or an Affiliated Company. 
  

 21 

 (d)        Notwithstanding paragraphs
(a) and (b), a Participant who makes a hardship withdrawal pursuant to Section 8.1(e) or a withdrawal of After Tax Deposits (whether Matched Deposits or non-Matched Deposits) pursuant to Section 8.1(a) shall not be permitted to make
Before Tax Deposits or After Tax Deposits to the Plan during the 6-month period beginning as soon as administratively feasible following the date of the withdrawal. The preceding sentence shall not apply to a withdrawal of After Tax Deposits if such
Deposits can also be withdrawn under Section 8.1(d) or the withdrawal is comprised solely of After Tax Deposits which are not Matched Deposits and which were contributed prior to July 1, 2000. 
 (e)        Each Participant who has attained age 50 before the close of the Plan Year may
elect to contribute a percentage of his or her Compensation to the Plan as “catch-up” Before Tax Deposits in accordance with, and subject to the limitations of, Code Section 414(v). Such catch-up Before Tax Deposits shall not be taken
into account under paragraph (a) above or Section 13.1 or any other provision of the Plan implementing the contribution limitations of Code Sections 402(g) and 415. Moreover, the Plan shall not be treated as failing to satisfy the
provisions of the plan implementing the requirements of Code Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416, as applicable, by reason of a Participant electing to contribute catch-up Before Tax Deposits to the Plan pursuant to this
paragraph. 
 (f)        The Committee shall prescribe such procedures, either in
writing or in practice, as it deems necessary or appropriate regarding the maximum amount that a Participant may elect to defer and the timing of such an election. These procedures shall apply to all individuals eligible to make an election
described in Section 4.1. The Committee may, at any time during a Plan Year, require the suspension, reduction, or recharacterization of Before Tax Deposits or the suspension or reduction of After Tax Deposits of any Highly Compensated Employee
such that the limitations of Section 4.2(a) and (b) are satisfied. 
 4.3        Limitation on Compensation Deferrals. With respect to each Plan Year, Compensation Deferral Contributions by a Participant for the Plan Year shall not exceed the limitation on
contributions by or on behalf of Highly Compensated Participants under Code Section 401(k), as provided in this Section. In the event that Compensation Deferral Contributions under the Plan by or on behalf of Highly Compensated Participants
exceed the limitations of this Section for any reason, either 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 the
Participant, as provided in Section 4.5. 
 (a)        The Compensation Deferral
Contributions by Participants for a Plan Year shall satisfy the Actual Deferral Percentage Test set forth in (i) below, or, to the extent not precluded by applicable regulations, the alternative Actual Deferral Percentage test set forth in
(ii) below: 
  

 22 

 (i)      The average Actual Deferral Percentage of Highly
Compensated Participants for the Plan Year shall not be more than the prior Plan Year’s average Actual Deferral Percentage of Participants who were not Highly Compensated Employees for the prior Plan Year multiplied by 1.25, or 
 (ii)     The average Actual Deferral Percentage of Highly Compensated Participants for the Plan Year shall not
be more than the prior Plan Year’s Actual Deferral Percentage of Participants who were not Highly Compensated Employees for the prior Plan Year multiplied by 2.0, provided that the average Actual Deferral Percentage of Highly Compensated
Participants does not exceed the average Actual Deferral Percentage of Participants who were not Highly Compensated Employees for the prior Plan Year by more than two (2) percentage points. 
 (b)        Notwithstanding any other provisions of the Plan, for the purposes of the limitations
of this Section 4.3 and Section 4.5 only, the following definitions shall apply: 
 (i)      “Actual Deferral Percentage” shall mean, with respect to the group of Highly Compensated Participants and the group of all other Participants for a Plan Year, the ratios calculated separately
and to the nearest one-hundredth of one percent for each Participant in such group, as follows: 
 (A)        For a Highly Compensated Participant, the ratio of such Participant’s Compensation Deferral Contributions for the current Plan Year to such Participant’s Compensation for the
current Plan Year; provided, however, that the Actual Deferral Percentage of a Highly Compensated Participant with no Compensation Deferral Contributions made on his or her behalf shall be zero. 
 (B)        For any other Participant, the ratio of such Participant’s Compensation Deferral
Contributions for the preceding Plan Year to such Participant’s Compensation for the preceding Plan Year; provided, however, that the Actual Deferral Percentage of a Participant with no Compensation Deferral Contributions made on his or her
behalf shall be zero. 
 To the extent determined by the Committee and in accordance with regulations issued by the
Secretary of the Treasury, qualified nonelective contributions on behalf of a Participant that satisfy the requirements of Code Section 401(k)(3)(c)(ii) may also be taken into account for the purpose of determining the Actual Deferral
Percentage of a Participant. 
 (ii)     “Highly Compensated Participant” shall mean for
any Plan Year any Participant who is a Highly Compensated Employee. A Participant is a Highly Compensated Employee for a particular Plan Year if he or she meets the definition of a Highly Compensated Employee in effect for that Plan Year. 

  

 23 

 
Similarly, a Participant is not a Highly Compensated Employee for a particular Plan Year if he or she does not meet the definition of a Highly Compensated
Employee in effect for that Plan Year. 
 (iii)    “Participant” shall mean any Eligible
Employee who satisfied the requirements of Section 3.1 during the Plan Year, whether or not such Eligible Employee has elected to contribute to the Plan for such Plan Year. 
 (iv)     “Compensation Deferral Contributions” shall mean amounts contributed to the Plan by a
Participant as Before Tax Deposits pursuant to Section 4.2(a), including excess Before Tax Deposits (as defined in Section 4.4(a)) of Highly Compensated Participants but excluding (1) excess Before Tax Deposits of all other
Participants that arise solely from Before Tax Deposits made under the Plan or plans of the Company, (2) Before Tax Deposits that are taken into account in the Actual Contribution Percentage test (as defined in Section 6.11) provided that
the Actual Deferral Percentage test is satisfied both with and without exclusions of these Before Tax Deposits, and (3) any deferrals properly distributed as excess Annual Additions. Compensation Deferral Contributions may include, at the
election of the Company, any Company Contributions that meet the requirements for such inclusion under Code Section 401(k)(3)(C). 
 (v)      “Compensation” shall mean compensation as described below: 
 (A)        Compensation means compensation determined by the Company in accordance with the requirements of Code Section 414(s) and the regulations thereunder. 

(B)        For purposes of this Section 4.3, Compensation may, at the Company’s
election, exclude amounts which are excludable from a Participant’s gross income under Code Section 125 (pertaining to cafeteria plans) and Code Section 402(e)(3) (pertaining to 401(k) salary reductions). The Company may change its
election provided such change does not discriminate in favor of Highly Compensated Employees. 
 (C)        Compensation taken into account for any Plan Year shall not exceed $210,000, as adjusted for cost-of-living increases in accordance with Code Section 401(a)(17)(B). Any cost-of-living
adjustments in effect for a calendar year shall apply to the Plan Year beginning with or within such calendar year. 
 (c)        In the event the Plan satisfies the requirements of Code Sections 401(k), 401(a)(4) or 410(b) only if aggregated with one or more other plans which include arrangements under Code
Section 401(k), 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 

  

 24 

 
Treasury under Code Section 401(k). Any adjustments to the Actual Deferral Percentage of Participants who are not Highly Compensated Employees for the
prior year shall be made in accordance with Notice 98-1 and any superseding guidance. Plans may be aggregated in order to satisfy Code Sections 401(k) only if they have the same Plan Year and use the same Actual Deferral Percentage testing
method. 
 (d)        For the purposes of this Section 4.3, the “Actual
Deferral Percentage” for any Highly Compensated Participant who is a Participant under two or more Code Section 401(k) arrangements of the Company shall be determined by taking into account the Highly Compensated Participant’s
compensation under each such arrangement and contributions under each such arrangement which qualify for treatment under Code Section 401(k), in accordance with regulations prescribed by the Secretary of the Treasury under Code
Section 401(k). 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, 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 shall satisfy such other requirements as may be prescribed by the 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 Code Section 401(k) and (m) and the regulations thereunder, in accordance with regulations prescribed by the Secretary of the Treasury. 
 4.4        Provisions for Return of Excess Before Tax Deposits. 
 (a)        In the event that due to error or otherwise, an amount of a Participant’s
Compensation in excess of the Before Tax Deposit Limit (after application of any necessary adjustment) described in Section 4.2(a) is deferred under the Plan in any calendar year pursuant to such Participant’s Compensation deferral
agreement (but without regard to amounts deferred under any other plan) the excess Before Tax Deposits, if any, together with income allocable to such amount shall be returned to the Participant (after withholding applicable federal, state and local
taxes due on such amounts) on or before the first April 15 following the close of the calendar year in which such excess contribution is made; provided, however, if there is a loss allocable to the excess Before Tax Deposits, the amount
distributed shall be the amount of the excess as adjusted to reflect such loss. Any Matching Contributions allocated to the Participant’s Matched Deposits pursuant to Section 6.3(b) which are attributable to any excess Before Tax Deposits
by a Participant, and any income or loss allocable to such Matching 

  

 25 

 
Contributions, shall either be returned to the Company or applied to reduce any future Matching Contributions by the Company. 
 (b)        The amount of income or loss attributable to any excess Before Tax Deposits described
in paragraph (a) above shall be equal to the sum of the following: 
 (i)      The income
or loss allocable to the Participant’s Before Tax Deposits Account for the Plan Year multiplied by a fraction, the numerator of which is the excess Before Tax Deposits as determined under paragraph (a) above, and the denominator of which
is the balance of the Participant’s Before Tax Deposits Account as of the last day of the Plan Year, without regard to any income or loss allocable to such Account during the Plan Year; and 
 (ii)     The amount of allocable income or loss for the Gap Period using the “safe harbor” method set
forth in regulations prescribed by the Secretary of the Treasury under Code Section 402(g). Under the “safe harbor” method, such allocable income or loss is equal to 10% of the amount calculated under Section 4.4(b)(i) above,
multiplied by the number of calendar months from the last day of the Plan Year until the date of distribution of the Participant’s excess Before Tax Deposits. A distribution on or before the 15th of the month is treated as made on the last day
of the preceding month, a distribution after the 15th of the month is treated as made on the first day of the next month. 
 (c)        For the purpose of this Section 4.4, “Gap Period” shall mean the period between the last day of the Plan Year and the date of distribution of any excess Before Tax Deposits.

 (d)        In accordance with procedures as may be established, either in writing
or in practice, by the Committee, not later than March 1 of a calendar year a Participant may submit a claim to the Committee in which he or she certifies in writing the specific amount of his or her Before Tax Deposits for the preceding
calendar year which, when added to amounts deferred for such calendar year under other plans or arrangements described in Code Sections 401(k), 408(k) or 403(b), shall cause the Participant to exceed the Before Tax Deposit Limit (after
application of any necessary adjustment) described in Section 4.2(a) for such preceding calendar year. Notwithstanding the amount of the Participant’s Before Tax Deposits under the Plan for such preceding calendar year, the Committee shall
treat the amount specified by the Participant in his or her claim as a Before Tax Deposit in excess of the Before Tax Deposit Limit (after application of any necessary adjustment) for such calendar year and return it to the Participant in accordance
with Section 4.4(a) above. A Participant is deemed to notify the Committee of any excess Before Tax Deposits that arise by taking into account only those Before Tax Deposits made to the Plan and other plans of the Company. 
 (e)        Any Before Tax Deposits in excess of the Before Tax Deposit Limit (after application
of any necessary adjustment) described in Section 4.2(a) which are distributed to a Participant in accordance with this Section, shall to the extent required by regulations 

  

 26 

 
issued by the Secretary of the Treasury be treated as Annual Additions under Article XIII for the Plan Year for which the excess Before Tax Deposits
were made, unless such amounts are distributed no later than the first April 15th following the close of the Participant’s taxable year. 
 (f)        The Committee shall not be liable to any Participant (or his or her Beneficiary, if applicable) for any losses caused by a mistake in calculating the amount of any
Participant’s excess Before Tax Deposits or the income or losses attributable thereto. 
 4.5
        Provision for Recharacterization or Return of Excess Deferrals by Highly Compensated Participants. The provisions of this Section 4.5 shall be applied after implementation of the provisions
of Section 4.4. 
 (a)        The Committee shall determine in accordance with
the procedures set forth in Section 4.3, as soon as is reasonably possible following the close of each Plan Year, the extent (if any) to which deferral treatment under Code Section 401(k) may not be available for Compensation Deferral
Contributions on behalf of any Highly Compensated Participants. If, pursuant to these determinations by the Committee, a Highly Compensated Participant’s Compensation Deferral Contributions are not eligible for tax-deferral treatment then, as
determined by the Committee, either (i) any excess Compensation Deferral Contributions shall be recharacterized as After Tax Deposits in accordance with regulations issued under Code Section 401(k), or (ii) any excess Compensation
Deferral Contributions together with any income or loss allocable thereto shall be returned to the Highly Compensated Participant (after withholding applicable federal, state, and local taxes due on such amounts). Such return or recharacterization
shall be made within the first two and one-half (2-1/2) months following the close of the Plan Year for which such excess deferrals were made, provided however, that if any excess deferrals and income or loss allocable thereto are, due to error or
otherwise, not returned by such date, such amounts as are required to be returned shall be returned not later than the end of the first Plan Year following the Plan Year for which such excess deferrals were made. 
 (b)        For purposes of satisfying the Actual Deferral Percentage test of Section 4.3(a),
the amount of any excess Compensation Deferral Contributions by a Highly Compensated Participant shall be determined by the Committee by application of a leveling method under which the Compensation Deferral Contributions of the Highly Compensated
Participant who has the highest dollar amount of Compensation Deferral Contributions for such Plan Year is reduced to the extent required to cause such Highly Compensated Participant’s Compensation Deferral Contributions to equal the
Compensation Deferral Contributions of the Highly Compensated Participant with the next highest Compensation Deferral Contributions; provided, however, if a lesser amount, when added to the total dollar amount already returned under this
paragraph (b), equals the total excess Compensation Deferral Contributions that are required to be returned to enable the Plan to satisfy the Actual Deferral Percentage test, the lesser amount shall be returned. This process shall be repeated
until the Plan satisfies the Actual Deferral Percentage test. 
  

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 (c)        The amount of income or loss
attributable to any excess Compensation Deferral Contributions by a Highly Compensated Participant for a Plan Year shall be equal to the sum of the following: 
 (i)      The income or loss allocable to the Highly Compensated Participant’s Compensation Deferral
Contribution Accounts for the Plan Year multiplied by a fraction, the numerator of which is the excess Compensation Deferral Contribution as determined under Section 4.3, and the denominator of which is the balance of the Highly Compensated
Participant’s Compensation Deferral Contribution Accounts as of the last day of the Plan Year without regard to any income or loss allocable to such Accounts during the Plan Year; and 
 (ii)     The amount of allocable income or loss for the Gap Period using the “safe harbor” method set
forth in the regulations prescribed by the Secretary of the Treasury under Code Section 401(k). Under the “safe harbor” method, such allocable income or loss is equal to 10% of the amount calculated under Section 4.5(c)(i) above,
multiplied by the number of calendar months from the last day of the Plan Year until the date of distribution of the Participant’s excess Compensation Deferral Contribution. A distribution on or before the 15th of the month is treated as made
on the last day of the preceding month, a distribution after the 15th of the month is treated as made on the first day of the next month. 
 (d)        For the purpose of this Section 4.5 the following shall apply: 
 (i)      “Compensation Deferral Contribution Accounts” shall mean the Participant’s Before Tax Deposits Account and shall mean any other accounts of the Participant to
which Company Contributions has been allocated where such Company Contributions has been included as Compensation Deferral Contributions pursuant to Section 4.3(b)(iv). 
 (ii)     “Gap Period” shall mean the period beginning with the last day of the Plan Year and the date
of distribution of any excess Compensation Deferral Contributions. 
 (e)        For
purposes of this Section, the amount of Compensation Deferral Contributions by a Participant who is not a Highly Compensated Participant for a Plan Year shall be reduced by any Before Tax Deposits which have been distributed to the Participant under
Section 4.4, in accordance with regulations prescribed by the Secretary of the Treasury under Code Section 401(k). 
 (f)        In the event that the Committee determines that an amount to be deferred pursuant to the Compensation deferral agreement provided in Section 4.1 would cause Company Contributions under
this and any other tax-qualified retirement plan maintained by the Company to exceed the applicable deduction limitations contained in Code Section 404, or to exceed the maximum Annual Addition determined in accordance with 

  

 28 

 
Article XIII, the Committee may treat such amount in accordance with the rules set forth above in Section 4.5(a). 
 (g)        The Committee shall not be liable to any Participant (or his or her Beneficiary, if
applicable) for any losses caused by a mistake in calculating the amount of any Participant’s excess Compensation Deferral Contribution or the income or losses attributable thereto. 
 (h)        To the extent required by regulations under Code Sections 401(k) or 415, any
excess Compensation Deferral Contributions with respect to a Highly Compensated Participant shall be treated as Annual Additions under Article XIII for the Plan Year for which the excess Compensation Deferral Contributions were made, notwithstanding
the distribution of such excess in accordance with the provisions of this Section. 
 4.6        Termination, Change in Rate, or Resumption of Before Tax Deposits or After Tax Deposits. 
 (a)        A Participant may, at any time, terminate, change the rate, or resume Before Tax
Deposits or After Tax Deposits in 1% increments. 
 (b)        The right of a
Participant to make Before Tax Deposits or After Tax Deposits shall cease during any Period of Severance. 
 (c)        Any termination, change in rate or resumption of Before Tax Deposits or After Tax Deposits made by a Participant pursuant to paragraph (a) above shall be effective as of the following
pay period or, if later, as soon as administratively feasible. 
 4.7        Character of
Deposits. Before Tax Deposits shall be treated as Company Contributions for purposes of Code Sections 401(k) and 414(h). After Tax Deposits shall not constitute “qualified voluntary employee contributions” under Code
Section 219 (relating to the deductibility of those amounts). 
 4.8        Rollover
Contributions. 
 (a)        Pursuant to procedures as the Committee may
prescribe (either in writing or practice), an Eligible Employee may make a Direct Rollover Contribution, a Participant Rollover Contribution, or an IRA Rollover Contribution to the Plan. 
 (b)        A “Direct Rollover Contribution” shall mean a contribution by an Eligible
Employee which is a direct rollover of an Eligible Rollover Distribution from: 
 (i)      A
qualified plan described in Code Section 401(a) or 403(a) including any portion attributable to after-tax employee contributions; provided, that such portion can be accounted for separately, including separately accounting for the portion which
is includible in gross income and the portion of which is not so includible; 
  

 29 

 (ii)     An annuity contract described in Code
Section 403(b) including, on or after January 1, 2007, any portion attributable to after-tax employee contributions; provided, that such portion can be accounted for separately, including separately accounting for the portion which is
includible in gross income and the portion of which is not so includible; or 
 (iii)    An eligible
plan under Code Section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state; provided, that such Direct Rollover Contribution can be accounted
for separately. 
 (c)        A “Participant Rollover Contribution” shall
mean a contribution by an Eligible Employee which is an Eligible Rollover Distribution (excluding any portion attributable to after-tax employee contributions) received by the Trustee not later than 60 days after such distribution was received
by the Eligible Employee; provided, such Eligible Rollover Distribution is from: 
 (i)      A
qualified plan described in Code Section 401(a) or 403(a); 
 (ii)     An annuity contract
described in Code Section 403(b); or 
 (iii)    An eligible plan under Code Section 457(b)
which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state. 
 The 60-day rollover requirement shall not apply if the Participant substantiates that the 60-day rollover requirement has been waived by the Secretary of the Treasury. 
 (d)        An “IRA Rollover Contribution” shall mean a contribution by an Eligible
Employee which is a distribution (excluding any portion attributable to after-tax employee contributions) from an individual retirement account or annuity described in Code Section 408(a) or 408(b) received by the Trustee not later than 60 days
after such distribution was received by the Eligible Employee or received by the Plan through a direct trustee-to-trustee transfer from such individual retirement arrangement or annuity. The 60-day rollover requirement shall not apply if the
Participant substantiates that the 60-day rollover requirement has been waived by the Secretary of the Treasury. 
 (e)        Pursuant to procedures as the Committee may prescribe (either in writing or practice), a former Eligible Employee who commenced participation in the Plan pursuant to Section 3.1 may
make Rollover Contributions to the Plan from his or her account in the Allergan, Inc. Employee Stock Ownership Plan so long as he or she retains rights under the Plan. 
 (f)        An Eligible Employee’s Rollover Contributions made pursuant the rules of this
Section 4.8 shall be held in a separate Rollover Contributions Account for the 

  

 30 

 
Eligible Employee. A Rollover Contributions Account shall not share in any allocations of Company Contributions or Forfeitures under Section 6.3.

  

 31 

 ARTICLE V 
 TRUST FUND AND COMPANY CONTRIBUTIONS 
 5.1          General.    All contributions made under the Plan and investments made and property of any kind or character acquired with any such funds or otherwise
contributed, and all income, profits, and proceeds derived therefrom, shall be held in Trust and shall be held and administered by the Trustee in accordance with the provisions of the Plan and Trust Agreement. 
 5.2          Single Trust.     Assets of the Trust shall be held in a
separate fund which shall consist of the Trust Fund. Individual Participant interests in the Trust Fund shall be reflected in the Accounts maintained for the Participants. Notwithstanding the foregoing, the Trust Fund shall be treated as a single
trust for purposes of investment and administration, and nothing contained herein shall require a physical segregation of assets for any fund or for any Account maintained under the Plan. 
 5.3          Matching Contributions.  Subject to the limitations of Article XIII, the
suspension provisions of Section 8.1 and to the extent that the Company has current or accumulated profits, the Company shall make Matching Contributions to the Plan on behalf of Participants in accordance with the following rules: 

(a)        The Company shall contribute and allocate Matching Contributions on a pay period
basis which, when added to Matching Contribution Forfeitures available after application of Section 6.3, is equal to 100% of each Participant’s Matched Deposits for the pay period. 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%.

 (b)        For each Plan Year, the Company shall contribute on behalf of each
Eligible Participant, additional Matching Contributions which, when added to Matching Contribution Forfeitures available after application of Section 6.3, is equal to the difference, if any, between the amount of each Eligible
Participant’s Matching Contributions determined under paragraph (a) and the amount of such Eligible Participant’s Matching Contributions if paragraph (a) was applied on a Plan Year basis instead of a pay period basis. For the
purpose of this paragraph (b), the term “Eligible Participant” shall include only those Participants who are Eligible Employees on the first and last business day of the Plan Year and who did not incur a Severance during the Plan Year. The
additional Matching Contributions contributed on behalf of Eligible Participants shall be allocated to the Matching Contributions Account of such Eligible Participants as of the last day of each Plan Year and shall be paid to the Trust at such times
as determined by the Sponsor. 
 (c)        The Company shall contribute amounts
sufficient to satisfy the Matching Contributions reinstatement requirements of Section 8.7 to the extent Matching 

  

 32 

 
Contribution Forfeitures are insufficient to satisfy the reinstatement requirement of Section 8.7 if so directed and at such times as may be determined
by the Committee. 
 5.4          Retirement Contributions.  Subject to
the limitations of Article XIII and to the extent that the Company has current or accumulated profits, the Company shall make Retirement Contributions to the Plan on behalf of Retirement Account Participants in accordance with the following rules:

 (a)        The Company shall contribute and allocate Retirement Contributions on
a Plan Year basis for each Retirement Account Participant who is employed by the Company or an Affiliated Company on the last day of such Plan Year or who incurred a Severance during the Plan Year by reason of Disability, death, or retirement on or
after age 55; the amount of which, when added to Retirement Contribution Forfeitures available after the application of Section 6.3, shall be equal to five percent (5%) of the Retirement Account Participant’s Compensation (as adjusted
pursuant to paragraph (c) below) for such Plan Year. A Retirement Account Participant’s Compensation received while such Retirement Account Participant is an inactive Participant as defined in Section 3.2(b) or an “Active
Participant” in the Allergan, Inc. Pension Plan as such term is defined therein or while he or she is not an Eligible Employee shall not be taken into account in determining such Participant’s Retirement Contributions. 
 (b)        Retirement Contributions contributed on behalf of Retirement Account Participants
shall be allocated to the Retirement Contributions Account of such Retirement Account Participants as of the last day of each Plan Year and shall be paid to the Trust at such times as determined by the Sponsor. 
 (c)        Solely for the purpose of determining Retirement Contributions pursuant to this
Section 5.4, a Retirement Account Participant’s Compensation shall include his or her “Annual Deferrals” (as defined in the Allergan, Inc. Executive Deferred Compensation Plan) for the Plan Year. 
 (d)        The Company shall contribute amounts sufficient to satisfy the Retirement
Contributions reinstatement requirements of Section 8.7 to the extent Retirement Contribution Forfeitures are insufficient to satisfy the reinstatement requirement of Section 8.7 if so directed and at such times as may be determined by the
Committee. 
 5.5          Form of Company Contributions.  Company
Contributions to the Trust Fund shall be paid in cash, property, or Company Stock as the Sponsor may from time to time determine. 
 5.6          Investment of Trust Assets. 
 (a)        The manner in which assets of the Trust will be invested shall be chosen by the Committee at its discretion, although the Committee may delegate the management to one or more Investment
Managers appointed pursuant to Section 5.16. Notwithstanding the foregoing, Matching Contributions shall be invested in Company Stock except to the extent invested pursuant to Section 5.6(e). 
  

 33 

 (b)        The Committee may establish separate
investment funds under the Plan, with each fund representing an investment alternative available to Participants for the investment of their Accounts as provided in Section 5.6(c) and (d) below. Each Participant shall have a subaccount
under the Plan corresponding to the Participant’s interest which is allocated to each investment fund. Each such subaccount may be valued separately. The Committee may, at its discretion, establish alternative investment funds or eliminate any
previously established funds, including but not limited to the following types of investment funds: 
 (i)          The Interest Income Fund investing in group annuity contracts with major insurance companies. 
 (ii)         The Balanced Fund investing in common stocks, bonds, government securities and
similar types of investments. 
 (iii)        The Equity Fund investing in a mutual
fund which may invest in equity securities, bonds, preferred stocks, and interest-bearing cash investments. 
 (iv)        The Company Stock Fund consisting exclusively of Company Stock. 
 (v)         The AMO Stock Fund consisting exclusively of AMO Stock. 
 Notwithstanding the establishment of separate investment funds, up to one hundred percent (100%) of the assets of the Plan may be invested in Company Stock. 
 (c)        A Participant may elect the investment fund to which his or her Participant Deposits
or Retirement Contributions 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. 
 (d)        A Participant may elect at any time to transfer amounts accumulated in his or her Accounts 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. 
  

 34 

 (e)        Notwithstanding the requirement of
paragraph (a) above that Matching Contributions be invested in the Company Stock Fund, (i) any Participant may elect that amounts accumulated in his or her Matching Contributions 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 Contributions 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. 
 (f)        Amounts invested in any one of the investment funds shall not share in gains and losses experienced by any other fund. 
 (g)        Notwithstanding the establishment of separate investment funds within the Trust, the
Trust shall at all times constitute a single trust. 
 (h)        Notwithstanding
anything to the contrary in this Section 5.6 or Section 4.1 or Section 8.1, the following additional transfer and withdrawal restrictions shall apply to all Participants who are Insiders. For the purpose of this Section 5.6, the
term “Insider” shall mean any Participant who is directly or indirectly the beneficial owner of more than 10% of any class of any equity security (other than an exempted security) of the Sponsor (or the Company) which is registered
pursuant to Section 12 of the Securities Exchange Act of 1934 (the “Exchange Act”) or who is a “director” or an “officer” of the Sponsor or the Company as those terms are interpreted for the purpose of determining
persons subject to Section 16 of the Exchange Act. 
 (i)          Any Insider who transfers amounts invested in the Company Stock Fund out of such fund and into another fund or withdraws cash in a transaction that results in the liquidation of
amounts in the Company Stock Fund (pursuant to Sections 8.1 or 8.13), may not for a period of six months following the Participant’s election to so transfer funds, withdraw cash or take a loan, as the case may be, make an election to transfer
amounts from another fund into the Company Stock Fund. 
 (ii)         Any
Insider who transfers amounts invested in a fund other than the Company Stock Fund into the Company Stock Fund, may not for a period of six months following the Participant’s election to so transfer funds make an election to (1) transfer
amounts from the Company Stock Fund into another fund, (2) withdraw cash or take a loan in a transaction that results in the liquidation of amounts in the Company Stock Fund or (3) utilize the diversification rule of Section 5.12 of
the Allergan Inc. Employee Stock Ownership Plan or the provision of any Company plan covered by Rule 16b-3 (promulgated pursuant to the Exchange Act) then in existence that would result in the transfer out of a Company equity securities fund.

  

 35 

 (i)        It is intended that to the extent a
Participant may direct the investment of his or her Accounts under the Plan that the Plan constitute a plan described in Section 404(c) of ERISA and the regulations thereunder, and neither the Company, Committee, nor any fiduciary with respect
to the Plan who is employed by the Company shall be liable for investment losses sustained by any Participant or Beneficiary as a direct and necessary result of the investment instructions given by such Participant or Beneficiary. Such fiduciaries
set forth in the preceding sentence shall be under no duty to question the investment direction of the Participant or Beneficiary or to advise a Participant or Beneficiary as to the manner in which his or her Accounts is to be invested. The fact
that an investment option is offered shall not be construed to be a recommendation of investment. 
 (j)        The Committee, in its sole discretion, may select a default investment fund that meets the requirements of a “qualified default investment alternative” or “QDIA” as
described in Section 2550.404c-5 of the Department of Labor Regulations as amended from time to time. In such case: (i) a Participant on whose behalf an investment in a QDIA may be made shall be notified at least 30 days in advance of the
first such investment and shall be notified at least 30 days in advance of each subsequent Plan Year and (2) any material relating to the Participant’s investment in the QDIA (e.g., account statements, prospectuses) shall be provided to
such Participant. If a QDIA is selected by the Committee, it is intended that to the extent provided under Section 2550.404c-5 of the Department of Labor Regulations, as amended from time to time, neither the Company nor the Committee shall be
liable for investment losses sustained by any Participant or Beneficiary that is the direct and necessary result of (i) investing all or a part of a Participant’s or Beneficiary’s Account in a QDIA and (ii) investment decisions
made in connection with the management of the QDIA. 
 (k)        On June 29,
2002, Allergan spun-off AMO and distributed the stock of AMO (referred to in the Plan as “AMO Stock”) to its shareholders. The following provisions of the Plan shall apply to AMO Stock as if the term “AMO Stock” was substituted
for the term “Company Stock”: Section 5.9 (Certain Offers for Company Stock); Section 5.10 (Voting of Company Stock); Section 5.11 (Securities Law Limitation); Section 5.16 (Appointment of Investment Manager);
Section 6.4 (Valuation of Participants’ Accounts); Section 6.5 (Valuation of Company Stock); Section 6.6 (Dividends, Splits, Recapitalizations, Etc.); Section 6.7 (Stock Rights, Warrants or Options); Section 6.9 (Cash
Dividends); Section 6.10 (Miscellaneous Allocation Rules); Section 9.1 (Appointment of Committee); Section 9.2 (Appointment of Investment Subcommittee); Section 9.7 (Additional Powers of Committee); and Section 9.14
(Compensation of Committees and Plan Expenses), as applicable. 
 5.7        Irrevocability.  The Company shall have no right or title to, nor interest in, the contributions made to the Trust Fund, and no part of the Trust Fund shall revert to the
Company except that on or after the Original Effective Date funds may be returned to the Company as follows: 
  

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 (a)        In the case of Company Contributions
which are made by a mistake of fact and at the Sponsor’s written request, such contributions shall be returned to the Company as directed by the Sponsor within one (1) year after it is made. 
 (b)        All Company Contributions contributed to the Trust are hereby conditioned upon the
Plan satisfying all of the requirements of Code Section 401(a). If the Plan does not qualify, the Plan may be revoked at the Sponsor’s written election and all such contributions shall be returned to the Company as directed by the Sponsor
within one year after the date of Internal Revenue Service denial of the qualification of the Plan. Upon such a revocation the affairs of the Plan and Trust shall be terminated and wound up as the Sponsor shall direct. 
 (c)        All Company Contributions to the Plan are conditioned upon the deductibility of those
contributions under Code Section 404. To the extent a deduction is disallowed and at the Sponsor’s written request, such contributions shall be returned to the Company as directed by the Sponsor within one year after the disallowance.

 (d)        In the event that the Plan is terminated when there are amounts
remaining in the Suspense Account, the excess funds shall revert to the Company as directed by the Sponsor to the extent provided in Section 13.6. 
 5.8        Company, Committee and Trustee Not Responsible for Adequacy of Trust Fund. 
 (a)        The Company, Committee, and the Trustee shall not be liable or responsible for the
adequacy of the Trust Fund to meet and discharge any or all payments and liabilities hereunder. All Plan benefits will be paid only from the Trust assets, and neither the Company, the Committee nor the Trustee shall have any duty or liability to
furnish the Trust with any funds, securities or other assets except as expressly provided in the Plan. 
 (b)        Except as required under the Plan or Trust or under Part 4 of Subtitle B of Title I of ERISA, the Company shall not be responsible for any decision, act or omission of the Trustee, the
Committee, or the Investment Manager (if applicable), and shall not be responsible for the application of any moneys, securities, investments or other property paid or delivered to the Trustee. 
 5.9        Certain Offers for Company Stock.  Notwithstanding any other provision of the Plan to
the contrary, in the event an offer shall be received by the Trustee (including but not limited to a tender offer or exchange offer within the meaning of the Securities Exchange Act of 1934, as from time to time amended and in effect) to acquire any
or all shares of Company Stock held by the Trust (an “Offer”), the discretion or authority to sell, exchange or transfer any of such shares of Company Stock shall be determined in accordance with the following rules: 
 (a)        The Trustee shall have no discretion or authority to sell, exchange or transfer any
Company Stock pursuant to an Offer except to the extent, and only to the 

  

 37 

 
extent, that the Trustee is timely directed to do so in writing by each Participant with respect to shares of Company Stock that are allocated to such
Participant’s Accounts. 
 (b)        To the extent there remains any residual
fiduciary responsibility with respect to Company Stock pursuant to an Offer after application of paragraph (a) above, the Trustee shall sell, exchange or transfer such Company Stock as directed by the Committee or as directed by an independent
fiduciary if duly appointed by the Sponsor. To the extent the Committee or an independent fiduciary is required to exercise any residual fiduciary responsibility with respect to an Offer, the Committee or independent fiduciary shall take into
account in exercising its fiduciary judgment, unless it is clearly imprudent to do so, directions timely received from Participants, as such directions are most indicative of what action is in the best interests of Participants. Further, the
Committee or independent fiduciary, in addition to taking into consideration any relevant financial factors bearing on any such decision, shall take into consideration any relevant non-financial factors, including, but not limited to, the continuing
job security of Participants as employees of the Sponsor or any Affiliated Company, conditions of employment, employment opportunities and other similar matters, and the prospect of the Participants and prospective Participants for future benefits
under the Plan. 
 (c)        Upon timely receipt of such instructions, the Trustee
shall, subject to the provisions of paragraphs (e) and (o) of this Section, sell, exchange or transfer pursuant to such Offer, only such shares as to which such instructions were given. The Committee shall use its best efforts to
communicate or cause to be communicated to each Participant the consequences of any failure to provide timely instructions to the Trustee. 
 (d)        In the event, under the terms of an Offer or otherwise, any shares of Company Stock tendered for sale, exchange or transfer pursuant to such Offer may be withdrawn
from such Offer, the Trustee shall follow such instructions respecting the withdrawal of such shares from such Offer in the same manner and the same proportion as shall be timely received by the Trustee from the Participants entitled under this
paragraph (a) to give instructions as to the sale, exchange or transfer of shares pursuant to such Offer. 
 (e)        In the event that an Offer for fewer than all of the shares of Company Stock held by the Trustee in the Trust shall be received by the Trustee, each Participant shall be entitled to direct
the Trustee as to the acceptance or rejection of such Offer (as set forth herein) with respect to the largest portion of such Company Stock as may be possible given the total number or amount of shares of Company Stock the Plan may sell, exchange or
transfer pursuant to the Offer based upon the instructions received by the Trustee from all other Participants who shall timely instruct the Trustee pursuant to this paragraph to sell, exchange or transfer such shares pursuant to such Offer, each on
a pro rata basis in accordance with the maximum number of shares each such Participant would have been permitted to direct under paragraph (a) had the Offer been for all shares of Company Stock held in the Trust. 
  

 38 

 (f)        In the event an Offer is received by
the Trustee and instructions have been solicited from Participants regarding such Offer, and prior to termination of such Offer, another Offer is received by the Trustee for the Company Stock subject to the first Offer, the Trustee shall inform the
Committee of such other Offer and the Committee shall use its best efforts under the circumstances to solicit instructions from the Participants (i) with respect to securities tendered for sale, exchange or transfer pursuant to the first Offer,
whether to withdraw such tender, if possible, and, if withdrawn, whether to tender any Company Stock so withdrawn for sale, exchange or transfer pursuant to the second Offer and (ii) with respect to Company Stock not tendered for sale, exchange
or transfer pursuant to the first Offer, whether to tender or not to tender such Company Stock for sale, exchange or transfer pursuant to the second Offer. The Trustee shall follow all such instructions received in a timely manner from Participants
in the same manner and in the same proportion as provided in paragraph (a) of this Section. With respect to any further Offer for any Company Stock received by the Trustee and subject to any earlier Offer (including successive Offers from one
or more existing offers), the Trustee shall act in the same manner as described above. 
 (g)        With respect to any Offer received by the Trustee, the Trustee shall inform the Sponsor of such Offer and the Sponsor shall distribute, at its expense, copies of all relevant material
including but not limited to material filed with the Securities and Exchange Commission with such Offer or regarding such Offer, which shall seek confidential written instructions from each Participant who is entitled to respond to such Offer
pursuant to paragraph (a). The identities of Participants, the amount of Company Stock allocated to their Accounts, and the Compensation of each Participant shall be determined from the list of Participants delivered to the Sponsor by the Committee
which shall take all reasonable steps necessary to provide the Sponsor with the latest possible information. 
 (h)        The Sponsor shall distribute and/or make available to each Participant who is entitled to respond to an Offer pursuant to paragraph (a), an instruction form to be used by each such
Participant who wishes to instruct the Trustee. The instruction form shall state that (i) if the Participant fails to return an instruction form to the Trustee by the indicated deadline, the Company Stock with respect to which he or she is
entitled to give instructions shall not be sold, exchanged or transferred pursuant to such Offer, (ii) the Participant shall be a named fiduciary (as described in paragraph (m) below) with respect to all shares of Company Stock for which
he or she is entitled to give instructions, and (iii) the Company acknowledges and agrees to honor the confidentiality of the Participant’s instructions to the Trustee. 
 (i)        Each Participant may choose to instruct the Trustee in one of the following two ways:
(i) not to sell, exchange or transfer any shares of Company Stock for which he or she is entitled to give instructions, or (ii) to sell, exchange or transfer all Company Stock for which he or she is entitled to give instructions. The
Sponsor shall follow up with additional mailings and postings of bulletins, as reasonable under the time constraints then prevailing, to obtain instructions from Participants not otherwise responding to such requests for instructions. Subject to
paragraph (e), the Trustee shall 

  

 39 

 
then sell, exchange or transfer shares according to instructions from Participants, except that shares for which no instructions are received shall not be
sold, exchanged or transferred unless directed otherwise as provided in paragraph (b) above. 
 (j)        The Sponsor shall furnish former Participants who have received distributions of Company Stock so recently as to not be shareholders of record with the information given to Participants
pursuant to paragraphs (g), (h) and (i) of this Section. The Trustee shall then sell, exchange or transfer shares according to instructions from such former Participants, except that shares for which no instructions are received shall
not be sold, exchanged or transferred. 
 (k)        Neither the Company, the
Committee nor the Trustee shall express any opinion or give any advice or recommendation to any Participant concerning the Offer, nor shall they have any authority or responsibility to do so. 
 (l)        The Trustee shall not reveal or release a Participant’s instructions to the
Company, its officers, directors, employees, or representatives. If some but not all Company Stock held by the Trust is sold, exchanged, or transferred pursuant to an Offer, the Company, with the Trustee’s cooperation, shall take such action as
is necessary to maintain the confidentiality of Participant’s records including, without limitation, establishment of a security system and procedures which restrict access to Participant records and retention of an independent agent to
maintain such records. If an independent record keeping agent is retained, such agent must agree, as a condition of its retention by the Sponsor, not to disclose the composition of any Participant Accounts to the Company, its officers, directors,
employees, or representatives. The Company acknowledges and agrees to honor the confidentiality of Participants’ instructions to the Trustee. 
 (m)        Each Participant shall be a named fiduciary (as that term is defined in Section 402(a)(2) of ERISA) with respect to Company Stock allocated to his or her
Accounts under the Plan solely for purposes of exercising the rights of a shareholder with respect to an Offer pursuant to this Section 5.9 and voting rights pursuant to Section 5.10. 
 (n)        To the extent that an Offer results in the sale of Company Stock in the Trust, the
Committee or the Participants, if so permitted under the terms of the Plan, shall instruct the Trustee as to the investment of the proceeds of such sale. 
 (o)        In the event a court of competent jurisdiction shall issue to the Plan, the Committee, the Sponsor or the Trustee an opinion or order, which shall, in the opinion of
counsel to the Committee, the Sponsor or the Trustee, invalidate, in all circumstances or in any particular circumstances, any provision or provisions of this Section regarding the determination to be made as to whether or not Company Stock held by
the Trustee shall be sold, exchanged or transferred pursuant to an Offer or cause any such provision or provisions to conflict with securities laws, then, upon notice thereof to the Committee, the Sponsor or the Trustee, as the case may be, such
invalid or conflicting provisions of this Section shall be given no further force or effect. In such circumstances, the Trustee 

  

 40 

 
shall continue to follow instructions received from Participants, to the extent such instructions have not been invalidated by such order or opinion. To the
extent the Trustee is required by such opinion or order to exercise any residual fiduciary responsibility with respect to such Offer, the Sponsor shall appoint an independent fiduciary who shall exercise such residual fiduciary responsibility as
provided in paragraph (b) above and shall direct the Trustee as to whether or not Company Stock held by the Trustee shall be sold, exchanged or transferred pursuant to such Offer. 
 5.10      Voting of Company Stock.  Notwithstanding any other provision of the Plan to the contrary, the
Trustee shall have no discretion or authority to vote Company Stock held in the Trust on any matter presented for a vote by the stockholders of the Company except in accordance with timely directions received by the Trustee from either the Committee
or Participants, depending on who has the right to direct the voting of such Company Stock as provided in the following provisions of this Section 5.10. 
  (a)        All Company Stock held in the Trust Fund shall be voted by the Trustee as the
Committee directs in its absolute discretion, except as provided in this Section 5.10(a). 
 (i)        If the Sponsor has a registration-type class of securities (as defined in Code Section 409(e)(4)), then with respect to all corporate matters, each Participant shall be entitled to
direct the Trustee as to the voting of all Company Stock allocated and credited to his or her Accounts. 
 (ii)       If the Sponsor does not have a registration-type class of securities, then only with respect to such matters as the approval or disapproval of any corporate merger or consolidation,
recapitalization, reclassification, liquidation, dissolution, sale of substantially all assets of trade or business, or such similar transactions as may be prescribed in Code Section 409(e)(4) and the regulations thereunder, each Participant
shall be entitled to direct the Trustee as to the voting of all Company Stock allocated and credited to his or her Accounts. 
  (b)        To the extent there remains any residual fiduciary responsibility with respect to the voting of Company Stock after application of paragraph (a) above, the Trustee shall vote
such Company Stock as directed by the Committee or as directed by an independent fiduciary if duly appointed by the Sponsor. To the extent the Committee or an independent fiduciary is required to exercise any residual fiduciary responsibility with
respect to the voting of Company Stock, the Committee or independent fiduciary shall take into account in exercising its fiduciary judgment, unless it is clearly imprudent to do so, directions timely received from Participants, as such directions
are most indicative of what action is in the best interests of Participants. Further, the Committee or independent fiduciary, in addition to taking into consideration any relevant financial factors bearing on any such decision, shall take into
consideration any relevant non-financial factors, including, but not limited to, the continuing job security of Participants as employees of the Sponsor or any Affiliated Company, conditions of employment, employment 

  

 41 

 
opportunities and other similar matters, and the prospect of the Participants and prospective Participants for future benefits under the Plan. 
  (c)        All Participants entitled to direct such voting shall be notified by the
Sponsor, pursuant to its normal communications with shareholders, of each occasion for the exercise of such voting rights within a reasonable time before such rights are to be exercised. Such notification shall include all information distributed to
shareholders either by the Sponsor or any other party regarding the exercise of such rights. Such Participants shall be so entitled to direct the voting of fractional shares (or fractional interests in shares), provided, however, that the Trustee
may, to the extent possible, vote the combined fractional shares (or fractional interests in shares) so as to reflect the aggregate direction of all Participants giving directions with respect to fractional shares (or fractional interests in
shares). To the extent that a Participant shall fail to direct the Trustee as to the exercise of voting rights arising under any Company Stock credited to his or her Accounts, such Company Stock shall not be voted unless the Trustee is directed
otherwise as provided in paragraph (b) above. The Trustee shall maintain confidentiality with respect to the voting directions of all Participants. 
  (d)        Each Participant shall be a named fiduciary (as that term is defined in Section 402(a)(2) of ERISA) with respect to Company Stock for which he or she has
the right to direct the voting under the Plan but solely for the purpose of exercising voting rights pursuant to this Section 5.10 or certain Offers pursuant to Section 5.9. 
  (e)        In the event a court of competent jurisdiction shall issue an opinion or order
to the Plan, the Committee, the Sponsor or the Trustee, which shall, in the opinion of counsel to the Committee, the Sponsor or the Trustee, invalidate under ERISA, in all circumstances or in any particular circumstances, any provision or provisions
of this Section regarding the manner in which Company Stock held in the Trust shall be voted or cause any such provision or provisions to conflict with ERISA, then, upon notice thereof to the Committee, the Sponsor or the Trustee, as the case may
be, such invalid or conflicting provisions of this Section shall be given no further force or effect. In such circumstances the Trustee shall continue to follow instructions received from Participants, to the extent such instructions have not been
invalidated by such order or opinion. To the extent the Trustee is required by such opinion or order to exercise any residual fiduciary responsibility with respect to voting, the Sponsor shall appoint an independent fiduciary who shall exercise such
residual fiduciary responsibility as provided in paragraph (b) above and shall direct the Trustee as to the manner in which Company Stock held by the Trustee shall be voted. 
 5.11      Securities Law Limitation.    Neither the Committee nor the Trustee shall be required
to engage in any transaction, including without limitation, directing the purchase or sale of Company Stock, which either determines in its sole discretion might tend to subject itself, its members, the Plan, the Company, or any Participant or
Beneficiary to a liability under federal or state securities laws. 
  

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 5.12      Distributions.  Money and property of the Trust
shall be paid out, disbursed, or applied by the Trustee for the benefit of Participants and Beneficiaries under the Plan in accordance with directions received by the Trustee from the Committee. Upon direction of the Committee, the Trustee may pay
money or deliver property from the Trust for any purpose authorized under the Plan. The Trustee shall be fully protected in paying out money or delivering property from the Trust from time to time upon written order of the Committee and shall not be
liable for the application of such money or property by the Committee. The Trustee shall not be required to determine or to make any investigation to determine the identity or mailing address of any person entitled to benefits hereunder and shall
have discharged its obligation in that respect when it shall have sent checks or other property by first-class mail to such persons at their respective addresses as may be certified to it by the Committee. 
 5.13      Taxes.  If the whole or any part of the Trust, or the proceeds thereof, shall become liable for
the payment of any estate, inheritance, income or other tax, charge, or assessment which the Trustee shall be required to pay, the Trustee shall have full power and authority to pay such tax, charge, or assessment out of any moneys or other property
in its hands for the account of the person whose interests hereunder are so liable, but at least ten (10) days prior to making any such payment, the Trustee shall mail notice to the Committee of its intention to make such payment. Prior to
making any transfers or distributions of any of the Trust, the Trustee may require such releases or other documents from any lawful taxing authority as it shall deem necessary. 
 5.14      Trustee Records to be Maintained.  The Trustee shall keep accurate and detailed accounts of all
investments, receipts, disbursements, and other transactions hereunder, and all accounts, books, and records relating thereto shall be open to inspection and audit at all reasonable times by any person designated by the Company (subject to the
provisions of Sections 5.9(l) and 5.10(c)). 
 5.15      Annual Report of
Trustee.  Promptly following the close of each Plan Year (or such other period as may be agreed upon between the Trustee and Committee), or promptly after receipt of a written request from the Company, the Trustee shall prepare for the
Company a written account which will enable the Company to satisfy the annual financial reporting requirements of ERISA, and which will set forth among other things all investments, receipts, disbursements, and other transactions effected by the
Trustee during such Plan Year or during the period from the close of the last Plan Year to the date of such request. Such account shall also describe all securities and other investments purchased and sold during the period to which it refers, the
cost of acquisition or net proceeds of sale, the securities and investments held as of the date of such account, and the cost of each item thereof as carried on the books of the Trustee. All accounts so filed shall be open to inspection during
business hours by the Company, the Committee, and by Participants and Beneficiaries of the Plan (subject to the provisions of Sections 5.9(l) and 5.10(c)). 
 5.16      Appointment of Investment Manager.    From time to time the Committee, in accordance with Section 9.7 hereof, may appoint one or more Investment
Managers who shall have investment management and control over assets of the Trust not invested or to be invested in Company Stock. The Committee shall notify the Trustee of such assets of the appointment of 

  

 43 

 
the Investment Manager. In the event more than one Investment Manager is appointed, the Committee shall determine which assets shall be subject to management
and control by each Investment Manager and shall also determine the proportion in which funds withdrawn or disbursed shall be charged against the assets subject to each Investment Manager’s management and control. As shall be provided in any
contract between an Investment Manager and the Committee, such Investment Manager shall hold a revocable proxy with respect to all securities which are held under the management of such Investment Manager pursuant to such contract (except for
Company Stock), and such Investment Manager shall report the voting of all securities subject to such proxy on an annual basis to the Committee. 
  

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 ARTICLE VI 
 ACCOUNTS AND ALLOCATIONS 
 6.1        Participants’ Accounts.    In order to account for the allocated interest of each Participant in the Trust Fund, there shall be established and maintained
for each Participant (making such form of contribution) a Before Tax Deposits Account, an After Tax Deposits Account, a Matching Contributions Account, a Retirement Contributions Account, and a Rollover Contributions Account. 
 6.2        Allocation of Participant Deposits.  All Participant Deposits shall be allocated to
the separate Accounts established and maintained for that Participant. Participant Deposits shall be paid by the Company to the Trustee as soon as the amount can reasonably be identified and separated from the Company’s other assets, but in any
event no later than the 15th business day of the month following the month in which such amounts would otherwise be payable to the Participant, or such other time provided in applicable regulations under the Code or ERISA. 
 6.3        Allocation of Company Contributions and Forfeitures.  Company Contributions and
Forfeitures shall be allocated as follows: 
 (a)        Matching Contributions shall
be allocated to the Matching Contributions Accounts of all Participants who made Matched Deposits in such amounts and at such times as provided in Sections 5.3(a) and 5.3(b). 
 (b)        Retirement Contributions shall be allocated to the Retirement Contributions Accounts
of all Retirement Account Participants in such amounts and at such times as provided in Sections 5.4(a) and 5.4(b). 
 (c)        Matching Contribution Forfeitures and Retirement Contribution Forfeitures shall first be used to restore the Matching Contributions Accounts of rehired Participants and the Retirement
Contributions Accounts of rehired Retirement Account Participants, respectively, if so required under Section 8.7 and shall then be allocated to the Matching Contributions Accounts of Participants and Retirement Contributions Accounts of
Retirement Account Participants, respectively, to the extent necessary to correct insufficient allocations made to such Accounts in prior months discovered during the Plan Year to which such Forfeitures are attributable. 
 (d)        After application of paragraph (c) above, any remaining Matching Contribution
Forfeitures and Retirement Contribution Forfeitures shall be used to reduce Matching Contributions and Retirement Contributions, respectively, made by the Company pursuant to Sections 5.3 and 5.4 unless applied towards plan expenses consistent
with the allocation described under Section 9.14. 
 (e)        Any other
Company Contributions shall be used to restore the Accounts of rehired Participants if so required under Section 8.7 and to the extent Forfeitures are 

  

 45 

 
unavailable. Any amounts remaining may be used to pay Plan expenses to the extent described in Section 9.14. 
 The allocations of Company Contributions under this Section 6.3 shall be made only after any allocations required by Sections 6.10 and 13.4 have
been made. 
 6.4        Valuation of Participants’ Accounts.  Within sixty
(60) days after each Valuation Date the Trustee shall value the assets of the Trust on the basis of fair market values. Company Stock held by the Trust shall be valued in accordance with Section 6.5. If separate investment funds are
maintained under the Trust pursuant to Section 5.6(b) then each such fund shall be valued separately so that gains or losses of the various funds shall not be commingled. Upon receipt of these valuations from the Trustee, the Committee shall
revalue the Accounts and subaccounts (as established pursuant to Section 5.6(b)), if any, of each Participant as of the applicable Valuation Date so as to reflect, among other things, a proportionate share in any increase or decrease in the
fair market value of the assets in the Trust Fund, determined by the Trustee as of that date as compared with the value of the assets in the Trust Fund as of the immediately preceding Valuation Date. 
 6.5        Valuation of Company Stock.  Company Stock held by the Trust shall be valued
according to the following rules: 
 (a)        In the case of Company Stock that is
publicly traded on a national securities exchange, such stock shall be valued by reference to the closing price of such stock on such exchange on the last trading day of the month for which such stock is being valued. 
 (b)        In the case of Company Stock that is not publicly traded on a national securities
exchange, such stock shall be valued as of the first day of each Plan Year, or such other time as established by the Committee, by determining the fair market value of such stock through the use of an independent appraiser. Such fair market
valuation shall be used to determine the valuation of each Participant’s Company Stock Account on each Valuation Date in such Plan Year pursuant to Section 6.4. 
 6.6        Dividends, Splits, Recapitalizations, Etc.  Any Company Stock received by the Trustee as a stock split, dividend, or as a result of a reorganization
or other recapitalization of the Company shall be allocated in the same manner as the Company Stock to which it is attributable is then allocated. 
 6.7        Stock Rights, Warrants or Options. 
 (a)        In the event any rights, warrants, or options are issued on Company Stock held in the Trust Fund, the Trustee shall exercise them for the acquisition of additional Company Stock as directed
by the Committee to the extent that cash is then available in the Trust Fund. 
  

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 (b)        Any Company Stock acquired in this
fashion shall be treated as Company Stock purchased by the Trustee for the net price paid and shall be allocated in the same manner as the funds used to purchase the Company Stock were or would be allocated under the provisions of the Plan. Thus, if
the funds used to purchase the stock consisted of unallocated Company Contributions, the stock would be allocated under the terms of Section 6.3; if the funds used consisted of the unallocated net income of the Trust, the stock would be
allocated as provided in Section 6.4; and if the funds used consisted of funds previously allocated to the Accounts, the stock would be allocated in the manner in which the Accounts or subaccounts are debited and credited. 
 (c)        Any rights, warrants, or options on Company Stock which cannot be exercised for lack
of cash may, as directed by the Committee, be sold by the Trustee and the proceeds allocated in accordance with the source of the Company Stock with respect to which the rights, warrants, or options were issued in accordance with rules of paragraph
(b) above. 
 6.8        Treatment of Accounts Upon
Severance.    Upon a Participant’s Severance, pending distribution of the Participant’s benefit pursuant to the provisions of Article VIII, the Participant’s Accounts shall continue to be maintained and
accounted for in accordance with all applicable provisions of the Plan, including but not limited to the allocation of Company Contributions and net income or loss to which the Accounts are entitled under the applicable provisions of
Sections 6.3 and 6.4 as of any Valuation Date or other date preceding the distribution of the Participant’s entire benefit under the Plan. 
 6.9        Cash Dividends. 
 (a)        All cash dividends paid to the Trustee with respect to Company Stock that has been allocated to a Participant’s Account as of the quarterly date on which the dividend is received by
the Trustee shall be allocated to the Participant’s Account. 
 (b)        If a
Participant (or Beneficiary) has a current right to a distribution in Company Stock pursuant to Article VIII and such stock has not yet been re-registered in the name of the Participant (or Beneficiary) as of the record date of any dividend on
such stock, such dividend shall be distributed to the Participant (or Beneficiary). 
 (c)        Notwithstanding the provisions of paragraphs (a) and (b) above, the Committee may determine, in its discretion, that cash dividends on such shares may be used to purchase
additional shares of Company Stock, or in whatever other manner it deems appropriate. 
 6.10      Miscellaneous Allocation Rules. 
 (a)        In the event that there is more than one class of Company Stock to be allocated to Participants’ Accounts, there shall be allocated to the Account of each Participant (entitled to
share in allocations of Company Stock as of any applicable date) the portion of each class of Company Stock (to be allocated as of that date) which the 

  

 47 

 
amount to be allocated to the Account of the Participant bears to the total amount to be allocated to the Accounts of all Participants entitled to share in
such allocation. 
 (b)        Allocations of all assets other than Company Stock
shall be made on the basis of, and expressed in terms of dollar value. Allocations of Company Stock shall be on the basis of the number of shares of Company Stock (including fractional shares) and valuations, as of each Valuation Date, shall be
expressed in terms of number of shares and dollar value. 
 (c)        The Committee
and the Trustee shall establish such additional accounting procedures as may be necessary for the purpose of making the allocations, valuations, withdrawals, and adjustments to Participants’ Accounts provided for in this Article VI. From
time to time the Committee and Trustee may modify such additional accounting procedures for the purpose of achieving equitable, nondiscriminatory, and administratively feasible allocations among the Accounts of Participants in accordance with the
general concepts of the Plan and the provisions of this Article VI. 
 (d)        The Company, the Committee and Trustee do not in any manner or to any extent whatsoever warrant, guarantee or represent that the value of a Participant’s Account shall at any time
equal or exceed the amount previously contributed thereto. 
 6.11      Limitations on After Tax Deposits
and Matching Contributions.  With respect to each Plan Year, After Tax Deposits and Matching Contributions under the Plan for the Plan Year shall not exceed the limitations by or on behalf of Highly Compensated Participants under Code
Section 401(m), as provided in this Section. In the event that After Tax Deposits and Matching Contributions under the Plan by or on behalf of Highly Compensated Participants for any Plan Year exceed the limitations of this Section for any
reason, such excess After Tax Deposits and Matching Contributions and any income or loss allocable thereto shall be disposed of in accordance with Section 6.12. 
 (a)        The After Tax Deposits by Participants and Matching Contributions on behalf of
Participants for a Plan Year shall satisfy the Actual Contribution Percentage test set forth in (i) below, or, to the extent not precluded by applicable regulations, the alternative Actual Contribution Percentage test set forth in
(ii) below: 
 (i)        The Actual Contribution Percentage of Highly
Compensated Participants for the Plan Year shall not be more than the prior Plan Year’s Actual Contribution Percentage of Participants who were not Highly Compensated Employees for the prior Plan Year multiplied by 1.25, or 
 (ii)       The Actual Contribution Percentage of Highly Compensated Participants for the Plan Year
shall not be more than the prior Plan Year’s Actual Contribution Percentage of Participants who were not Highly Compensated Employees for the prior Plan Year multiplied by 2.0, provided that the Actual Contribution Percentage of Highly
Compensated Participants does not exceed the Actual Contribution Percentage of Participants who were not Highly 

  

 48 

 
Compensated Employees for the prior Plan Year by more than two (2) percentage points. 
 (iii)      If one or more Highly Compensated Employees participate in both a cash or deferred arrangement
and a plan subject to the Actual Contribution Percentage test maintained by the Sponsor or an Affiliated Company and the sum of the Actual Deferral Percentage and Contribution Percentage of those Highly Compensated Employees subject to either or
both test exceeds the Aggregate Limit, then the Contribution Percentages of those Highly Compensated Employees who also participate in the cash or deferred arrangement shall be reduced (beginning with such Highly Compensated Employee whose Actual
Contribution Percentage is the highest) so that the limit is not exceeded. The amount by which each Highly Compensated Employee’s Contribution Percentage is reduced shall be treated as an Excess Aggregate Contribution. The Actual Deferral
Percentage and Contribution Percentage of the Highly Compensated Employee are determined after any corrections required to meet the Actual Deferral Percentage and Actual Contribution Percentage tests and are deemed to be the maximum permitted under
such tests for the Plan Year. 
 (b)       For purposes of this Section 6.11 and
Section 6.12 the following definitions shall apply: 
 (i)        “Actual
Contribution Percentage” shall mean the average of the Contribution Percentages, with respect to the group of Highly Compensated Participants and the group of all other Participants for a Plan Year. The “Contribution Percentage” for
any Participant shall mean the ratio, calculated separately and to the nearest one-hundredth of one percent for each Participant in such group, determined as follows: 
 (A)        For a Highly Compensated Participant, the ratio of such Participant’s After Tax
Deposits and Matching Contributions for the current Plan Year to such Participant’s Compensation for the current Plan Year; provided, however, that the Contribution Percentage of a Highly Compensated Participant with no After Tax Deposits and
Matching Contributions made on his or her behalf shall be zero. 
 (B)        For
any other Participant, the ratio of such Participant’s After Tax Deposits and Matching Contributions for the preceding Plan Year to such Participant’s Compensation for the preceding Plan Year; provided, however, that the Contribution
Percentage of a Participant with no After Tax Deposits and Matching Contributions made on his or her behalf shall be zero. 
 The Contribution Percentage, in each case, however, shall not include Matching Contributions that are forfeited either to correct Excess Aggregate Contributions or because the contribution to which they relate are excess Before Tax
Deposits, excess After Tax Deposits, or Excess Aggregate Contributions. To the extent determined by the Committee and in accordance with regulations issued by the Secretary of the Treasury under Code Section 401(m)(3), Before 

  

 49 

 
Tax Deposits and any qualified nonelective contributions, within the meaning of Code Section 401(m)(4)(C) on behalf of a Participant may also be taken
into account for purposes of calculating the Contribution Percentage of a Participant. However, if any Before Tax Deposits are taken into account for purposes of determining Actual Deferral Percentages under Section 4.3 then such Before Tax
Deposits shall not be taken into account under this Section 6.11. 
 (ii)       “Highly Compensated Participant” shall mean for any Plan Year any Participant who is a Highly Compensated Employee. A Participant is a Highly Compensated Employee for a particular Plan
Year if he or she meets the definition of a Highly Compensated Employee in effect for that Plan Year. Similarly, a Participant is not a Highly Compensated Employee for a particular Plan Year if he or she does not meet the definition of a Highly
Compensated Employee in effect for that Plan Year. 
 (iii)      “Participant” shall
mean any Eligible Employee who satisfied the requirements of Section 3.1 during the Plan Year whether or not such Eligible Employee has elected to contribute to the Plan for such Plan Year. 
 (iv)      “Compensation” shall mean compensation as described below: 
 (A)        Compensation means compensation determined by the Company in accordance with the
requirements of Code Section 414(s) and the regulations thereunder. 
 (B)        For purposes of this Section 6.11, Compensation may, at the Company’s election, exclude amounts which are excludable from a Participant’s gross income under Code
Section 125 (pertaining to cafeteria plans) and Code Section 402(e)(3) (pertaining to 401(k) salary reductions). The Company may change its election provided such change does not discriminate in favor of Highly Compensated Employees.

 (C)        Compensation taken into account for any Plan Year shall not exceed
$210,000, as adjusted for cost-of-living increases in accordance with Code Section 401(a)(17)(B). Any cost-of-living adjustments in effect for a calendar year shall apply to the Plan Year beginning with or within such calendar year. 

(v)       “Aggregate Limit” shall mean the sum of (1) 125 percent of the greater of
the average Actual Deferral Percentage of all Non-Highly Compensated Participants for the Plan Year or the Actual Contribution Percentage of Non-Highly Compensated Participants under the Plan subject to Code Section 401(m) for the Plan Year
beginning with or within the Plan Year of the cash or deferred 

  

 50 

 
arrangement and (2) the lesser of 200% or two plus the lesser of such average Actual Deferral Percentage or Actual Contribution Percentage.
“Lesser” is substituted for “greater” in (1) above, and “greater” is substituted for “lesser” after “two plus the” in (2) above if it would result in a larger Aggregate Limit. 

(vi)        “Excess Aggregate Contributions” shall mean, with respect to any Plan
Year, the excess of: 
 (A)        The aggregate After Tax Deposits and Matching
Contributions taken into account in computing the numerator of the Contribution Percentage actually made on behalf of Highly Compensated Employees for such Plan year, over 
 (B)        The maximum After Tax Deposits and Matching Contributions permitted under the Actual
Contribution Percentage test as determined by reducing such Matching Contributions made on behalf of Highly Compensated Employees in order of their Contribution Percentages, beginning with the highest of such percentages. 
 Such determination shall be made after first determining excess Before Tax Deposits pursuant to Sections 4.2(a) and 4.3. 
 (c)        In the event the Plan satisfies the requirements of Code Sections
401(m), 401(a)(4) or 410(b) only if aggregated with one or more other plans which include arrangements under Code Section 401(k), then this Section 6.11 shall be applied by determining the Contribution Percentages of Participants as
if all such plans were a single plan. Any adjustments to the Contribution Percentages of Participants who are not Highly Compensated Employees for the prior year shall be made in accordance with Notice 98-1 and any superseding guidance. Plans may be
aggregated in order to satisfy Code Section 401(m) only if they have the same Plan Year and use the same Actual Contribution Percentage testing method. 
 (d)        For purposes of this Section 6.11, the Contribution Percentage for any Highly
Compensated Participants who is eligible to have After Tax Deposits or Matching Contributions allocated to his or her account under two or more plans maintained by the Sponsor or an Affiliated Company shall be determined as if the total of such
After Tax Deposits or Matching Contributions was made under each plan. If a Highly Compensated Employee participates in two or more cash or deferred arrangements that have different plan years, all cash or deferred arrangements that have different
plan years, all cash or deferred arrangements ending with or within the same calendar year shall be treated 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(m). 
 (e)        For purposes of
the Actual Contribution Percentage test, After Tax Deposits shall be considered to have been made in the Plan Year in which contributed to 

  

 51 

 
the Trust. Matching Contributions shall be considered made for a Plan Year if made no later than the end of the twelve-month period beginning on the day
after the close of the Plan Year. 
 (f)        The determination and treatment of
the Contribution Percentage of any Participant shall satisfy such other requirements as may be prescribed by the 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 Code Section 401(m) and
the regulations thereunder, in accordance with regulations prescribed by the Secretary of the Treasury. 
 6.12      Provision for Disposition of Excess After Tax Deposits or Matching Contributions on Behalf of Highly Compensated Participants.  After application of the provisions of Section 4.4
and 4.5, the following provisions shall be implemented: 
 (a)        The Committee
shall determine, as soon as is reasonably possible following the close of each Plan Year, the extent (if any) to which contributions by or on behalf of Highly Compensated Participants may cause the Plan to exceed the limitations of Section 6.11
for such Plan Year. If, pursuant to the determination by the Committee and as required by the leveling method described in paragraph (b) below, contributions by or on behalf of a Highly Compensated Participant may cause the Plan to exceed such
limitations, then the Committee shall take the following steps: 
 (i)        First,
any excess After Tax Deposits that were not matched by Matching Contributions, together with income or loss allocable to such amount (determined in accordance with paragraph (c) below) shall be returned to the Highly Compensated Participant.

 (ii)       Second, if any excess remains after the provisions of (i) above are
applied, to the extent necessary to eliminate the excess, Matching Contributions with respect to the Highly Compensated Participant, any corresponding matched After Tax Deposits, and any income or loss allocable thereto, shall either be distributed
(if non-forfeitable) to the Highly Compensated Participant or forfeited (to the extent forfeitable under the Plan) on a pro-rata basis. Amounts of excess Matching Contributions forfeited by Highly Compensated Participants under this
Section 6.12, including any income or loss allocable thereto, shall be applied to reduce Matching Contributions by the Company or the Affiliated Company that made the Matching Contribution on behalf of the Highly Compensated Participant for the
Plan Year for which the excess contribution was made. 
 (iii)      If administratively
feasible, any amounts distributed pursuant to subparagraphs (i) or (ii) above shall be returned within two and one-half (2-1/2) months following the close of the Plan Year for which such excess After Tax Deposits or Matching Contributions
were made, but in any event no later than the 

  

 52 

 
end of the first Plan Year following the Plan Year for which the excess After Tax Deposits or Matching Contributions were made. After Tax Deposits and
Matching Contributions for any Plan Year shall be made on the basis of the respective portions of such excess After Tax Deposits and Matching Contributions attributable to each Highly Compensated Participant. 
 (b)        For purposes of satisfying the Actual Contribution Percentage test, the amount of any
excess After Tax Deposits or Matching Contributions by or on behalf of Highly Compensated Participants for a Plan Year under Section 6.11 shall be determined by application of a leveling method under which the After Tax Deposits or Matching
Contributions of the Highly Compensated Participant who has the highest dollar amount of After Tax Deposits or Matching Contributions for such Plan Year is reduced to the extent required to cause such Highly Compensated Participant’s After Tax
Deposits and Matching Contributions to equal the After Tax Deposits and Matching Contributions of the Highly Compensated Participant with the next highest After Tax Deposits and Matching Contributions; provided, however, if a lesser amount, when
added to the total dollar amount already distributed under this paragraph (b), equals the total excess After Tax Deposits and Matching Contributions that are required to be distributed to enable the Plan to satisfy the Actual Contribution
Percentage test, the lesser amount shall be distributed. This process shall be repeated until the Plan satisfies the Actual Contribution Percentage test. 
 (c)        The amount of income or loss attributable to any excess After Tax Deposits or Matching Contributions, as determined under this Section 6.12 (the “Excess
Aggregate Contribution”) by a Highly Compensated Participant for a Plan Year shall be equal to the sum of the following: 
 (i)        The income or loss allocable to the Highly Compensated Participant’s Excess Aggregate Contribution Accounts for the Plan Year multiplied by a fraction, the numerator of which is the
Excess Aggregate Contribution and the denominator of which is the sum of the balance of the Highly Compensated Participant’s Excess Aggregate Contribution Accounts without regard to any income or loss allocable to such Accounts during the Plan
Year; and 
 (ii)       The amount of allocable income or loss for the Gap Period using
the “safe harbor” method set forth in regulations prescribed by the Secretary of the Treasury under Code Section 401(m). Under the “safe harbor” method, such allocable income or loss is equal to 10% of the amount calculated
under Section 6.12(c)(i) above, multiplied by the number of calendar months from the last day of the Plan Year until the date of distribution of the Participant’s excess After Tax Deposits or Matching Contributions. A distribution on or
before the 15th of the month is treated as made on the last day of the preceding month, a distribution after the 15th of the month is treated as made on the first day of the next month. 
  

 53 

 (d)        For the purpose of this
Section 6.12, the following shall apply: 
 (i)        “Excess Aggregate
Contribution Accounts” shall mean the Participant’s After Tax Deposits Account and Matching Contributions Account. 
 (ii)       “Gap Period” shall mean the period between last day of the Plan Year and the date of distribution of any Excess Aggregate Contributions. 
 (e)        Any excess After Tax Deposits and/or Matching Contributions distributed to a Highly
Compensated Participant or forfeited by a Highly Compensated Participant in accordance with this Section 6.12, shall be treated as Annual Additions under Article XIII for the Plan Year for which the excess contribution was made. 
 (f)        Neither the Committee nor the Company shall be liable to any Participant (or his or
her Beneficiary, if applicable) for any losses caused by a mistake in calculating the amount of any Excess Aggregate Contributions by or on behalf of a Highly Compensated Participant and the income or loss allocable thereto. 
  

 54 

 ARTICLE VII 
 VESTING IN PLAN ACCOUNTS 
 7.1        No Vested
Rights Except as Herein Provided.    No Participant shall have any vested right or interest to, or any right of payment of, any assets of the Trust Fund, except as expressly provided in the Plan. Neither the making of any
allocations nor the credit to any Account of a Participant shall vest in any Participant any right, title, or interest in or to any assets of the Trust Fund. 
 7.2        Vesting of Participant Deposits.  A Participant shall be fully vested at all times in the amounts allocated to his or her Before Tax Deposits
Account, After Tax Deposits Account, and Rollover Contributions Account. 
 7.3        Vesting of
Company Contributions. 
 (a)        A Participant’s interest in his or her
Matching Contributions Account shall vest in accordance with the following schedule: 
  

			
	 Years of Credited Service
	  	Vested Percentage
		
	Less than 3	  	    0%
	3 or more	  	100%

 (b)        A Participant’s interest
in his or her Retirement Contributions Account shall vest in accordance with the following schedule: 
  

			
	 Years of Credited Service
	  	Vested Percentage
		
	Less than 1	  	    0%
	1 but less than 2	  	  20%
	2 but less than 3	  	  40%
	3 but less than 4	  	  60%
	4 but less than 5	  	  80%
	5 or more	  	100%

 (c)        A Participant shall at all
times be 100% vested in all amounts transferred from the SmithKline Beckman Corporation Savings and Investment Plan and all amounts transferred from the Inamed Corporation Retirement Savings Plan to the Plan. 
 (d)        Notwithstanding paragraphs (a) and (b) above, a Participant shall become
fully vested in his or her Matching Contributions Account and Retirement Contributions Account upon the occurrence of any of the following events, if such Participant is then still an Employee: 
 (i)        Attainment of age sixty-two (62); 
  

 55 

 (ii)        Death; 
 (iii)       Severance due to a Disability; or 
 (iv)       Occurrence of a Change in Control pursuant to Section 12.4. 
  

 56 

 ARTICLE VIII 
 PAYMENT OF PLAN BENEFITS 
 8.1        Withdrawals
During Employment.    A Participant may withdraw, once in any calendar quarter, amounts of at least $500 from his or her Accounts while an Employee in accordance with the following rules: 
 (a)        A Participant may, for any reason, withdraw any portion of the amount allocated to his
or her After Tax Deposits Account (excluding any After Tax Deposits recharacterized as such under Section 4.5). A Participant who makes a withdrawal of After Tax Deposits (whether Matched Deposits or non-Matched Deposits) shall not be permitted
to make any After Tax or and Before Tax Deposits during the six (6) month period beginning as soon as administratively feasible following the date of the withdrawal unless the After Tax Deposits can also be withdrawn under paragraph (d)
below or the withdrawal is comprised solely of After Tax Deposits which are not Matched Deposits and which were contributed prior to July 1, 2000. 
 (b)        A Participant may, for any reason, withdraw any portion of the amount allocated to his or her Rollover Contributions Account. 
 (c)        After withdrawing all After Tax Deposits pursuant to paragraph (a) and all
amounts allocated to his or her Rollover Contributions Account under paragraph (b) above, a Participant with 3 or more years of Credited Service may, for any reason, withdraw any portion of the amount allocated to his or her Matching
Contributions Account that was so allocated 2 or more years prior to the date of such a withdrawal. 
 (d)        On or after the attainment of age 59-1/2, a Participant may withdraw any vested portion of the amounts allocated to any of his or her Accounts. 
 (e)        After withdrawing all amounts permitted pursuant to paragraphs (a), (b) (c), and
(d) above, a Participant may withdraw amounts from his or her Before Tax Deposits Account (excluding any earnings attributable to such Account after December 31, 1988), the vested portion of his or her Matching Contributions Account, and
any remaining amount in his or her After Tax Deposits (amounts which were recharacterized as After Tax Deposits under Section 4.5 but excluding any earnings attributable to recharacterized After Tax Deposits after December 31, 1988) but
excluding amounts from his or her Retirement Contributions Account upon incurring a hardship as defined in Section 8.5. 
 (f)        Except as provided in paragraphs (a) through (e) above, Participants may not receive a distribution of their benefits under the Plan prior to termination of employment.

 (g)        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 

  

 57 

 
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. 
 (h)        Except as provided in Section 8.5(c), all withdrawals shall be made to Participants as soon as reasonably practicable following the Valuation Date in the month for which a properly
completed withdrawal request is deemed perfected. All withdrawals shall be based on the Account balances of a Participant as of such Valuation Date. If a properly completed withdrawal request is received by the Company during any month and on or
before the fifteenth day of such month, the withdrawal request shall be deemed perfected in such month, otherwise such withdrawal request shall be deemed perfected in the immediately following month. 
 (i)        Notwithstanding anything to the contrary in this Section 8.1 or Section 4.1,
the additional withdrawal restrictions stated in Section 5.6(h) shall apply to all Participants who are Insiders, as that term is defined Section 5.6(h). 
 8.2        Distributions Upon Termination of Employment or Disability. 
 (a)        Subject to the provisions of Section 8.6, if a Participant incurs a Severance for any reason (including Disability) other than death, all or a portion of such
Participant’s entire vested portion of his or her Accounts under the Plan shall be (i) distributed directly to such Participant or (ii) at the election of the Participant, distributed as an Eligible Rollover Distribution and paid
directly by the Trustee to the trustee of an Eligible Retirement Plan. 
 (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. 
 (c)        Notwithstanding the provisions contained in the foregoing paragraphs of this
Section 8.2 or Section 8.1, any provision which restricts or would deny a Participant through the withholding of consent or the exercise of discretion by some person or persons other than the Participant (and where relevant, other than the
Participant’s spouse) of an alternative form of benefit, in violation of Code Section 411(d)(6) and the regulation promulgated thereunder, is hereby amended by the deletion of the consent and/or discretion requirement. 
 (d)        Notwithstanding the provisions contained in the foregoing paragraphs of this
Section 8.2 or Section 8.1, upon receipt of a Qualified Domestic Relations Order, the amount payable to an Alternate Payee (as such terms are described in Section 15.2) may be distributed to the Alternate Payee as soon as
administratively feasible. 
  

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 8.3        Distribution Upon Death of
Participant.  Subject to the provisions of Section 8.6, in the event of the death of a Participant, the entire vested portion of the Participant’s Accounts shall be distributed to the surviving spouse as Beneficiary (if still
alive) unless the Participant designated another Beneficiary pursuant to Section 8.4. The Participant’s Beneficiary (or prior to January 1, 2007, a Beneficiary who is the surviving spouse of the Participant), may elect to have an
Eligible Rollover Distribution paid directly by the Trustee to the trustee of an Eligible Retirement Plan. Distributions to the Beneficiary pursuant to this Section 8.3 shall be in the same form as specified in Section 8.2(b) above, as
elected by the Beneficiary. All such distributions shall be made as soon as practicable after the death of the Participant. A Beneficiary may not elect to defer such a distribution. 
 8.4        Designation of Beneficiary.  At any time, and from time to time, each Participant
shall have the unrestricted right to designate the Beneficiary or Beneficiaries to receive the entire vested portion of his or her Accounts upon his or her death and to revoke any such designation subject to paragraphs (a) and (b) below.
Each such designation shall be evidenced by a written instrument signed by the Participant and filed with the Committee. 
 (a)        If the Participant is married and designates a Beneficiary other than his or her spouse, said designation shall not be honored by the Committee unless accompanied by the written consent of
said spouse to said designation. Such consent (i) must designate a Beneficiary which may not be changed without the consent of the spouse (or the consent of the spouse expressly permits designation by the Participant without any further consent
by the spouse), (ii) must acknowledge the effect of the designation, and (iii) must be witnessed by a Plan representative or a notary public. No consent of such spouse shall be necessary if it is established to the satisfaction of a Plan
representative that the consent required under this paragraph (a) cannot or need not be obtained because (i) there is no spouse, (ii) the spouse cannot be located, or (iii) there exist such other circumstances which, pursuant to
regulations under Code Section 417, permit a distribution to another Beneficiary. Any consent of a spouse obtained pursuant to this paragraph (a) or any determination that the consent of the spouse cannot (or need not) be obtained, shall
be effective only with respect to that spouse. If a Participant becomes married following his or her designation of a Beneficiary other than his or her spouse, such designation shall be ineffective unless the spousal consent requirements of this
paragraph are satisfied with respect to such spouse (subject, however, to the provisions of Article XV regarding Qualified Domestic Relations Orders). 
 (b)        If the Participant is married and does not designate a Beneficiary, the Participant’s spouse shall be his or her Beneficiary for purposes of this Section. If the
deceased Participant is not married and shall have failed to designate a Beneficiary, or if the Committee shall be unable to locate the designated Beneficiary after reasonable efforts have been made, or if such Beneficiary shall be deceased,
distribution of the Participant’s death benefit shall be made by payment of the deceased Participant’s entire interest in the Trust to his or her personal representative in a single lump-sum payment. In the event the deceased Participant
is not a resident of California at the date of his or her death, the Committee, in its discretion, may require the establishment of ancillary 

  

 59 

 
administration in California. 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 to his or her heirs at law (determined in accordance with the laws of the State of
California as they existed at the date of the Participant’s death). 
 8.5        Hardship
Withdrawal Rules.    A hardship withdrawal shall be made to a Participant only if the Committee (or its representative) determines that the Participant has an immediate and heavy financial need and that a withdrawal from the
Plan is necessary to satisfy such need as set forth in paragraphs (a) and (b) below. 
 (a)        A hardship withdrawal shall be authorized by the Committee only if the Committee, 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: 
 (i)        Medical
expenses described in Code Section 213(d) incurred by the Participant or the Participant’s spouse, Beneficiary or any dependents of the Participant (as defined in Code Section 152, without regard to Code Section 152(b)(1),
(b)(2), and (d)(1)(B)); 
 (ii)       The purchase (excluding mortgage payments) of a
principal residence for the Participant only; 
 (iii)      The payment of tuition and related
educational fees for the next twelve (12) months of post-secondary education for the Participant or the Participant’s spouse, Beneficiary, children, or dependents (as defined in subparagraph (i) above); 
 (iv)      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; 
 (v)       The payment of burial or funeral expenses for the Participant’s parents, spouse, Beneficiary, children, or dependents (as defined in subparagraph (i) above); 
 (vi)      The payment of expenses to repair damage of the Participant’s principal residence that
would qualify as a casualty loss under Code Section 165; or 
 (vii)      Any other
situation deemed as immediate and heavy financial needs by the Internal Revenue Service through the publication of revenue rulings, notices, and other documents of general applicability. 
  

 60 

 (b)        A hardship withdrawal shall be
authorized by the Committee only if the Committee, based upon the Participant’s representation and such other facts as are known to the Committee, determines that all of the following conditions are or will be satisfied: 
 (i)              The amount of the withdrawal is not in excess of
the amount required to relieve the financial need (including amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the withdrawal). 
 (ii)             The Participant has obtained all distributions
(including distributions of ESOP dividends or Code Section 404(k)), other than hardship withdrawals, and all nontaxable (at the time of the loan) loans from the Plan or any other plan maintained by the Company. 
 (iii)            The Participant shall not be permitted to make Before Tax
Deposits or After Tax Deposits during the 6-month period beginning as soon as administratively feasible following the date of the hardship withdrawal from the Plan or any other plan maintained by the Company. 
 (c)        Notwithstanding the provisions of Section 8.1(g), all hardship withdrawals shall
be made in cash regardless of the fund from which such withdrawal is made. The Committee may, at its discretion, establish written procedures whereby Participants may receive an estimated prepayment of a hardship withdrawal based on the last
available valuation of such Participant’s Accounts with a reconciling adjustment made to such Participant’s Accounts after current valuation data is available. 
 8.6        Distribution Rules.  Notwithstanding any other provisions of this Article VIII of the Plan regarding distributions of Participant’s
Accounts, the following additional rules shall apply to all such distributions. 
 (a)        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) to the extent
paragraph (b) below applies. 
 (b)        Notwithstanding anything to the
contrary in the Plan, if the total amount of the vested portion of a Participant’s Accounts does not exceed $1,000 ($5,000, prior to March 28, 2005), the vested portion of such Participant’s Accounts shall be distributed, in a single
lump-sum payment, as soon as practicable following the Participant’s Severance Date. For purposes of this paragraph (b), Rollover Contributions and the earnings thereon, shall be included in determining the value of the vested portion of a
Participant’s 

  

 61 

 
Accounts for distributions made after December 31, 2001 with respect to Participants who incur a Severance after December 31, 2001. 
 (c)        Unless a Participant elects otherwise pursuant to paragraph (a) above,
distributions of the vested portion of a Participant’s Accounts shall commence no later than the 60th day after the close of the Plan Year in which the latest of the following events occurs: (i) the Participant’s Normal Retirement
Age; (ii) the tenth anniversary of the year in which the Participant commenced participation in the Plan; or (iii) the termination of the Participant’s employment with the Company. 
 (d)        Minimum Required Distributions during Participant’s Lifetime. Notwithstanding
anything to the contrary in the Plan unless the entire vested portion of a Participant’s Accounts is distributed in a single sum on or before the Required Beginning Date, distributions shall be made in accordance with this paragraph (d) as
of the first Distribution Calendar Year and the entire vested portion of a Participant’s Accounts shall be distributed, or begin to be distributed, to the Participant no later than the Participant’s Required Beginning Date as set forth
below: 
 (i)          Amount of Minimum Required Distribution for each
Distribution Calendar Year. During the Participant’s lifetime, the minimum amount that shall be distributed for each Distribution Calendar Year is the lesser of: 
     (A)        the quotient obtained by dividing the Participant’s
Account Balance by the distribution period in the Uniform Lifetime Table set forth in Regulation Section 1.401(a)(9)-9, using the Participant’s age as of the Participant’s birthday in the Distribution Calendar Year; or 
     (B)        if the Participant’s sole Designated Beneficiary for the
Distribution Calendar Year is the Participant’s spouse, the quotient obtained by dividing the Participant’s Account Balance by the number in the Joint and Last Survivor Table set forth in Regulation Section 1.401(a)(9)-9, using the
Participant’s and spouse’s attained ages as of the Participant’s and spouse’s birthdays in the Distribution Calendar Year. 
 (ii)         Lifetime Minimum Required Distributions continue through Year of Participant’s Death. Minimum required distributions shall be determined under this
paragraph (d) beginning with the first Distribution Calendar Year and up to and including the Distribution Calendar Year that includes the Participant’s date of death. 
 (iii)        Minimum Required Distributions for the 2002 Distribution Calendar Year.
Notwithstanding the foregoing, with respect to distributions made for the 2002 Distribution Calendar Year, the Plan will apply the minimum distribution requirements of Code Section 401(a)(9) in accordance with the 

  

 62 

 
regulations under Code Section 401(a)(9) that were proposed on January 17, 2001, notwithstanding any provision of the Plan to the contrary.

   (iv)        Treasury Regulations Incorporated by Reference. All
distributions required under this paragraph shall be determined and made in accordance with the Treasury Regulations under Code Section 401(a)(9). 
 (e)        Minimum Required Distributions following Participant’s Death. Notwithstanding anything to the contrary in the Plan if a Participant dies before the entire vested
portion of his or her Accounts is distributed, the following rules shall apply: 
 (i)        Required Distribution Dates. If a Participant dies before the entire vested portion of his or her Accounts is distributed, distributions shall be made, or begin to be made, no later than as
follows: 
 (A)    If the Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary, then, except as provided in subparagraph (iv) below, distributions to the surviving spouse shall begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by
December 31 of the calendar year in which the Participant would have attained age 70-1/2, if later. 
 (B)    If the Participant’s surviving spouse is not the Participant’s sole Designated Beneficiary, then, except as provided in subparagraph (iv) below, distributions to the Designated Beneficiary shall
begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. 
 (C)    If there is no Designated Beneficiary as of September 30 of the year following the year of the Participant’s death, the Participant’s entire interest shall be distributed by December 31 of the
calendar year containing the fifth anniversary of the Participant’s death. 
 (D)    If the
Participant’s surviving spouse is the Participant’s sole Designated Beneficiary and the surviving spouse dies after the Participant but before distributions to the surviving spouse begin, this subparagraph (i), other than
clause (A), shall apply as if the surviving spouse were the Participant. 
     For purposes of
this subparagraph (i) and subparagraphs (ii) and (iii) below, unless clause (D) above applies, distributions are considered to begin on the Participant’s Required Beginning Date. If clause (D) applies, distributions are
considered to begin on the date distributions are required to begin to the surviving spouse under clause (A). 
  

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     (ii)        Forms of
Distribution if Participant Dies On or After Distributions Begin. Unless the entire vested portion of a Participant’s Accounts is distributed in a single sum on or before the dates set forth in subparagraph (i) above, the entire vested
portion of a Participant’s Accounts shall be distributed, or begin to be distributed, as set forth below: 
 (A)    Participant Survived by Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is a Designated Beneficiary, the minimum amount that shall be distributed for each
Distribution Calendar Year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s Account Balance by the longer of the remaining life expectancy of the Participant or the remaining life expectancy
of the Participant’s Designated Beneficiary, determined as follows: 
 (1)        The Participant’s remaining life expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. 
 (2)        If the Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary, the remaining life expectancy of the surviving spouse is calculated for each Distribution Calendar Year after the year of the Participant’s death using the surviving spouse’s age as of the spouse’s birthday in that year.
For Distribution Calendar Years after the year of the surviving spouse’s death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse’s birthday in the calendar year of
the spouse’s death, reduced by one for each subsequent calendar year. 
 (3)        If the Participant’s surviving spouse is not the Participant’s sole Designated Beneficiary, the Designated Beneficiary’s remaining life expectancy is calculated using the age
of the beneficiary in the year following the year of the Participant’s death, reduced by one for each subsequent year. 
 (B)    No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is no Designated Beneficiary as of September 30 of the year after the year of the Participant’s
death, the minimum amount that shall be distributed for each Distribution Calendar Year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s Account Balance by the Participant’s remaining
life expectancy calculated 

  

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using the age of the Participant in the year of death, reduced by one for each subsequent year. 
     (iii)        Forms of Distribution if Participant Dies Before
Distributions Begin. Unless the entire vested portion of a Participant’s Accounts is distributed in a single sum on or before the dates set forth in subparagraph (i) above, the entire vested portion of a Participant’s Accounts shall
be distributed, or begin to be distributed, as set forth below: 
 (A)        Participant Survived by Designated Beneficiary. Except as provided in subparagraph (iv) below, if the Participant dies before the date distributions begin and there is a Designated
Beneficiary, the minimum amount that shall be distributed for each Distribution Calendar Year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s Account Balance by the remaining life expectancy
of the Participant’s Designated Beneficiary, determined as provided in subparagraph (ii)(A) above. 
 (B)        No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no Designated Beneficiary as of September 30 of the year following the year of the
Participant’s death, distribution of the Participant’s entire interest shall be completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. 
 (C)        Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to
Begin. If the Participant dies before the date distributions begin, the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary, and the surviving spouse dies before distributions are required to begin to the
surviving spouse under subparagraph (i)(A) above, this subparagraph (iii) shall apply as if the surviving spouse were the Participant. 
     (iv)        Election to Apply 5-Year Rule to Distributions to Designated Beneficiaries. If the Participant dies before the entire vested portion of his
or her Accounts is distributed and there is a Designated Beneficiary, distribution to the Designated Beneficiary is not required to begin by the date specified in subparagraph (i) if the Participant or Designated Beneficiary elects that the
entire vested portion of the Participant’s Accounts be distributed to the Designated Beneficiary by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. If the Participant’s surviving
spouse is the Participant’s sole Designated Beneficiary and the surviving spouse dies after the Participant but before distributions to either the Participant or the surviving spouse begin, an election under this subparagraph shall apply as if
the surviving spouse were the Participant. The election must be made no later than the earlier of September 30 of the calendar year in which distribution would be required to begin under 

  

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subparagraph (i), or by September 30 of the calendar year which contains the fifth anniversary of the Participant’s (or, if applicable,
surviving spouse’s) death. If neither the Participant nor Designated Beneficiary makes an election under this subparagraph, distributions shall be made in accordance with subparagraphs (i) and (iii). 
 (v)        Election to Allow Designated Beneficiary Receiving Distributions under 5-Year Rule to
Elect Life Expectancy Distributions. A Designated Beneficiary who is receiving payments under the 5-year rule described in subparagraph (iv) above, may make a new election to receive payments under the life expectancy rule until
December 31, 2003, provided that all amounts that would have been required to be distributed under the life expectancy rule for all Distribution Calendar Years before 2004 are distributed by the earlier of December 31, 2003 or the end of
the 5-year period. 
 (vi)       Minimum Required Distributions for the 2002 Distribution
Calendar Year. Notwithstanding the foregoing, with respect to distributions made for the 2002 Distribution Calendar Year, the Plan shall apply the minimum distribution requirements of Code Section 401(a)(9) in accordance with the regulations
under Code Section 401(a)(9) that were proposed on January 17, 2001, notwithstanding any provision of the Plan to the contrary. 
 (vii)      Treasury Regulations Incorporated by Reference. All distributions required under this paragraph shall be determined and made in accordance with the Treasury Regulations under
Code Section 401(a)(9). 
 (f)        Definitions for Minimum Required
Distribution Rules. For purposes of paragraphs (d) and (e) above, the following definitions shall apply: 
 (i)        “Account Balance” shall mean the account balance of a Participant’s Account as of the last valuation date in the calendar year immediately preceding the Distribution Calendar
Year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to a Participant’s Accounts as of dates in the valuation calendar year after the valuation date and decreased by
distributions made in the valuation calendar year after the valuation date. The Account Balance for the valuation calendar year includes any amounts rolled over or transferred to the plan either in the valuation calendar year or in the Distribution
Calendar Year if distributed or transferred in the valuation calendar year. 
 (ii)       “Designated Beneficiary” shall mean the individual who is designated as the Beneficiary under Section 8.4 and is the Designated Beneficiary under Code Section 401(a)(9) and
Regulation Section 1.401(a)(9)-1, Q&A-4. 
 (iii)      “Distribution Calendar
Year” shall mean a calendar year for which a minimum distribution is required. For distributions beginning before the 

  

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Participant’s death, the first Distribution Calendar Year is the calendar year immediately preceding the calendar year which contains the
Participant’s Required Beginning Date. For distributions beginning after the Participant’s death, the first Distribution Calendar Year is the calendar year in which distributions are required to begin under paragraph (e). The minimum
required distribution for the Participant’s first Distribution Calendar Year shall be made on or before the Participant’s Required Beginning Date. The minimum required distribution for other Distribution Calendar Years, including the
minimum required distribution for the Distribution Calendar Year in which the Participant’s Required Beginning Date occurs, shall be made on or before December 31 of that Distribution Calendar Year. 
 (iv)        “Life expectancy” shall mean as computed by use of the Single Life Table
in Regulation Section 1.401(a)(9)-9. 
 (v)         “Required
Beginning Date” shall mean the April 1 of the calendar year immediately following the later of the calendar year in which the Participant attains age 70-1/2 or incurs a Severance; provided, however, if such Participant is a Five Percent
Owner (as defined in Code Section 416(i) and applicable regulations) with respect to the Plan Year ending in the calendar year in which such Participant attains age 70-1/2, the Required Beginning Date shall be April 1 of the calendar year
immediately following the year in which such Participant attains age 70-1/2. 
 (g)        If it is not administratively practical to calculate and commence payments by the latest date specified in the rules of paragraphs (b), (c), (d) and (e) above because the
amount of the Participant’s benefit cannot be calculated, or because the Committee is unable to locate the Participant (or eligible Beneficiary) after making reasonable efforts to do so, the payment shall be made as soon as is administratively
possible (but not more than 60 days) after the amount of the benefit can be ascertained or the Participant (or Beneficiary) can be located. 
 8.7        Forfeitures.  The non-vested portion of a Participant’s Accounts shall be forfeited in accordance with the following rules: 
 (a)        In the event a Participant who incurs a Severance receives a distribution of the
entire vested portion of his or her Accounts when he or she is not fully vested in such Accounts, the non-vested portion of the Participant’s Accounts shall be forfeited as of the Participant’s distribution date. A Participant who incurs a
Severance when no portion of his or her Accounts are vested shall be deemed to have received a distribution pursuant to this paragraph (a) as of his or her Severance Date and his or her Accounts shall be forfeited as of the Participant’s
Severance Date. If the Participant is rehired by the Company prior to the date he or she incurs five consecutive Breaks in Service, the amounts forfeited shall be reinstated to the Participant’s Accounts as of the Participant’s
Reemployment Commencement Date (without regard to any interest or investment earnings on such amount). 
  

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 (b)        In the event a Participant who incurs
a Severance does not receive a distribution of the entire vested portion of his or her Accounts when he or she is not fully vested in such Accounts, the Participant’s Accounts shall be held by the Trustee as provided in Section 6.8 for
90 days at which time, the nonvested portion of the Participant’s Accounts shall be forfeited as of the last day of the month in which the 90-day period ends. If the Participant is rehired by the Company prior to the date he or she incurs
five consecutive Breaks in Service, the amount so forfeited plus an amount equal to the rate of return that the amount forfeited would have received but for forfeiture pursuant to this paragraph (b) shall be reinstated to the Participant’s
Accounts as of the Participant’s Reemployment Commencement Date. The Company shall be obligated to contribute to the Trust Fund any amounts necessary after application of Section 6.3 to reinstate a Participant’s Accounts if
reinstatement is required under the provisions of this paragraph. 
 (c)        At
any relevant time after application of paragraphs (a) and (b) above, a Participant’s vested portion of his or her Accounts shall be equal to an amount (“X”) determined by the following formula: 
 X = P*(AB + D) - D 
 For the purposes of
applying the formula: 
 P = the vested percentage at any relevant time determined pursuant to Section 7.2 

AB = the Account balance at the relevant time 
 D = the total amount of any distributions from the Accounts since such Severance 
 (d)        Forfeitures shall be allocated in the manner provided in Section 6.3 at such
times as determined by the Committee and to the extent available shall be used to reduce contributions made by the Company pursuant to Sections 5.3 and 5.4. 
 8.8        Valuation of Accounts Upon Distribution.  For the purpose of any distribution of Accounts under this Article VIII, the amount of such
distribution shall be based on the value of a Participant’s Accounts as of the Valuation Date in the month in which the application for such distribution is deemed perfected. If a properly completed distribution application is received by the
Committee during any month and on or before the fifteenth day of such month, the distribution application shall be deemed perfected in such month, otherwise such distribution application shall be deemed perfected in the immediately following month.

 8.9        Lapsed Benefits. 
 (a)        In the event that a Participant’s Accounts is payable under the Plan and after
reasonable efforts the Participant cannot be located for the purpose of paying his or her Accounts during a period of three consecutive years, the Participant shall be 

  

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presumed dead and his or her Accounts shall, upon the expiration of that three year period, be paid to the Participant’s Beneficiary. If the
Participant’s Beneficiary cannot be located for the purpose of paying the Participant’s Accounts for the following two years, then the Participant’s Accounts shall, upon expiration of such two-year period, be forfeited and reallocated
to the Accounts of other Participants in accordance with Section 6.3. 
 (b)        If a Participant dies prior to receiving a distribution of the entire vested portion of his or her Accounts (other than a Participant presumed to have died as provided above) and if after
reasonable efforts the Beneficiary of the Participant cannot be located for the purpose of paying the Participant’s Accounts during a period of five consecutive years, the benefit shall, upon expiration of such five-year period, be forfeited
and reallocated to the Accounts of the other Participants in accordance with Section 6.3. 
 (c)        For purposes of this Section, the term “Beneficiary” shall include any person entitled under Section 8.4 to receive the vested interest of a deceased Participant or deceased
designated Beneficiary. It is the intention of this Section that during the relevant waiting period (two years or five years) the vested portion of a Participant’s Accounts shall be distributed to a Beneficiary in a lower priority category
under Section 8.4 if no Beneficiary in a higher priority category can be located by the Committee after reasonable efforts have been made. 
 (d)        Notwithstanding the foregoing rules, if after such a forfeiture the Participant or a Beneficiary claims the forfeited Accounts, the amount forfeited shall be
reinstated (without regard to any interest or investment earnings on such amount) and paid to the Participant or Beneficiary as soon as practical following the production of reasonable proof of the identity of the Participant or Beneficiary and his
or her entitlement to the amounts forfeited (determined pursuant to the Plan’s normal claim procedures under Section 9.10). 
 (e)        The Committee shall direct the Trustee with respect to the procedures to be followed concerning a missing Participant (or Beneficiary), and the Company shall be
obligated to contribute to the Trust Fund any amounts necessary after the application of Section 6.3 to pay any reinstated benefit after it has been forfeited pursuant to the provisions of this Section. 
 8.10      Persons Under Legal Disability. 
 (a)        If any payee under the Plan is a minor or if the Committee reasonably believes that
any payee is legally incapable of giving a valid receipt and discharge for any payment due him/her, the Committee may have the payment, or any part thereof, made to the person (or persons or institution) whom it reasonably believes is caring for or
supporting the payee, unless it has received due notice of claim therefor from a duly appointed guardian or committee of the payee. 
  

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 (b)        Any such payment shall be a payment
from the Accounts of the payee and shall, to the extent thereof, be a complete discharge of any liability under the Plan to the payee. 
 8.11      Additional Documents. 
 (a)        The Committee or the Company may require satisfactory proof of any matter under the Plan from or with respect to any Employee, Participant, or Beneficiary, and no person shall be entitled
to receive any benefits under the Plan until the required proof shall be furnished. 
 (b)        The Committee or Trustee, or both, may require the execution and delivery of such documents, papers and receipts as the Committee or Trustee may determine necessary or appropriate in order
to establish the fact of death of the deceased Participant and of the right and identity of any Beneficiary or other person or persons claiming any benefits under this Article VIII. 
 (c)        The Committee or the Trustee, or both, may, as a condition precedent to the payment of
death benefits hereunder, require an inheritance tax release and/or such security as the Committee or Trustee, or both, may deem appropriate as protection against possible liability for State or Federal death taxes attributable to any death
benefits. 
 8.12      Trustee-to-Trustee Transfers.  In the case of any Participant or
Participants who have terminated employment with the Company and all Affiliated Companies and subsequently become employed by an unrelated successor employer, the Committee, shall at the request of such Participant or Participants, direct the
Trustee to transfer the assets in the Accounts of such Participant or Participants directly to the trustee of any retirement plan maintained by such successor employer or employers in lieu of any distribution described in the preceding provisions of
this Article VIII but only if (i) the retirement plan maintained by such successor employer is determined to the satisfaction of the Committee to be qualified under Code Section 401, (ii) the sponsor and trustee of such plan
consent to the transfer, and (iii) such transfer satisfies the conditions of Section 12.2 hereof. 
 8.13      Loans to Participants.  A Participant may borrow from his or her Accounts except from his or her Retirement Contributions Account while an Employee in accordance with the following
rules: 
 (a)        Subject to minimum and maximum loan requirements, a Participant
may borrow up to 50% of his or her After Tax Deposits Account, Before Tax Deposits Account, Rollover Contributions Account, and the vested portion of his or her Matching Contributions Account. Only one loan may be outstanding to a Participant any
time. The minimum loan amount shall be $1,000 and the maximum loan amount shall be $50,000. The $50,000 maximum loan amount shall be reduced by the excess, if any, of the highest outstanding balance of loans from the Plan to the Participant during
the one-year period 

  

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ending on the day before the loan is made over the outstanding balance of loans on the date the loan is made. 
 (b)        A loan to a Participant shall be made solely from his or her Account(s) and shall be
considered an investment directed by the Participant. Loan amounts shall be funded from the Participant’s Accounts as determined under procedures established by the Committee; provided, however, that principal repayments shall be credited to
the Participant’s Accounts in the inverse of the order used to fund the loan and interest payments shall be credited to the Participant’s Accounts in direct proportion to the principal repayments. 
 (c)        A loan to a Participant shall bear an interest rate equal to the prime rate reported
in the Wall Street Journal on first business day of the month in which the loan is granted (the last business day of the previous month for loans made prior to July 1, 2000) plus one percent (1%) and shall remain fixed throughout the term
of the loan. Notwithstanding the preceding sentence, if the Committee determines that such rate is not reasonable or otherwise not in accordance with applicable requirements under the Code or ERISA, the Committee shall set an alternate interest rate
at the time that the loan is taken. 
 (d)        A loan to a Participant shall have
a definite maturity date. Loans, other than loans made for the purpose of acquiring the principal residence of the Participant, shall be made for a period not to exceed five (5) years. Loans made for the purpose of acquiring the principal
residence of the Participant shall be made for a period not to exceed fifteen (15) years. 
 (e)        A loan to a Participant shall have a definite repayment schedule and shall be amortized on a substantially level basis with repayments occurring not less frequently than quarterly.
Notwithstanding the foregoing, the loan repayments shall be suspended during an unpaid Leave of Absence not to exceed one year at which time loan repayments shall resume in accordance with Regulation Section 1.72(p)-1. In the case of a Leave of
Absence due to uniformed service, loan repayments shall be suspended as permitted under Code Section 414(u)(4) and in accordance with Regulation Section 1.72(p)-1. 
 (f)        A loan to a Participant shall be secured by the vested portion of the
Participant’s Account(s). No more than 50% of the Participant’s vested Account(s) as determined on the date the loan is issued shall be considered by the Plan as security for a loan. A Participant who borrows from the Plan hereby agrees
that, unless expressly provided otherwise in loan documents, any such loan is automatically secured by 50% of his or her vested Account(s). 
 (g)        A loan to a Participant shall be evidenced by a promissory note and/or such other documentation as required by the Committee. 
  

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 (h)        A loan to a Participant shall be
treated as a distribution unless the entire principal amount and any interest accrued thereon is repaid within ninety (90) days after the occurrence of a Participant’s Severance. Absent repayment by the Participant, the Committee shall
instruct the Trustee to distribute the note to the Participant as part of his or her distribution and the Participant’s vested Account(s) shall be reduced to the extent of such distribution and treatment shall be in accordance with Regulation
Section 1.72(p)-1. 
 (i)        The Committee shall establish the participant
loan program and have the duty to manage and administer the participant loan program in accordance with the terms and provisions of this Section. The Committee shall have, but not by way of limitation, the following discretionary powers and
authority: 
 (i)        To determine the manner in which loan repayments shall
occur whether it be through automatic payroll deductions or otherwise. 
 (ii)       To
determine the amount of loan repayments following suspension due to an unpaid Leave of Absence subject to the requirement that the loan must be repaid by the latest date permitted under paragraph (d). 
 (iii)      To establish any fees, including but not limited to application fees and maintenance fees, and
the manner in which such fees are collected from the Participant. 
 (iv)      To consider
only those factors which would be considered in a normal commercial setting by persons in the business of making similar types of loans in establishing the participant loan program. Such factors may include the applicant’s credit worthiness and
financial need, but may not include any factor which would discriminate against Participants who are not Highly Compensated Employees. Loans shall be made available to all Participants without regard to a Participant’s race, color, religion,
sex, age or national origin and shall not be made available to Participants who are Highly Compensated Employees in an amount greater than the amount made available to Participants who are not Highly Compensated Employees. 
  

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 ARTICLE IX 
 OPERATION AND ADMINISTRATION 
 9.1        Appointment of Committee.  There is hereby created a committee (the “Committee”) which shall exercise such powers and have such duties in administering the Plan
as are hereinafter set forth. The Board of Directors shall determine the number of members of such Committee. The members of the Committee shall be appointed by the Board of Directors and such Board shall from time to time fill all vacancies
occurring in said Committee. The members of the Committee shall constitute the Named Fiduciaries of the Plan within the meaning of Section 402(a)(2) of ERISA; provided that solely for purposes of Section 5.9 hereof, Participants shall be
Named Fiduciaries with respect to shares of Company Stock allocated to their respective Accounts and solely for purposes of Section 5.10, Participants shall be Named Fiduciaries with respect to shares of Company Stock allocated to their
respective Accounts on matters as to which they are entitled to provide voting directions. 
 9.2        Appointment of Investment Subcommittee.  There is hereby created an investment subcommittee of the Committee (hereinafter referred to as the “Investment
Subcommittee” for purposes of this Article IX) which shall exercise management and control over the assets of the Trust. The Board of Directors, acting through its Organization and Compensation Committee, shall determine the number of members
of the Investment Subcommittee. The members of the Investment Subcommittee shall be appointed by the Board of Directors, acting through its Organization and Compensation Committee, and shall from time to time appoint such members to or fill any
vacancies in the Investment Subcommittee. The members of the Investment Subcommittee shall constitute the Named Fiduciaries of the Plan within the meaning of Section 402(a)(2) of ERISA with respect to the management and control of the assets of
the Trust; provided that solely for purposes of Section 5.9 hereof, Participants shall be Named Fiduciaries with respect to shares of Company Stock allocated to their respective Accounts and solely for purposes of Section 5.10,
Participants shall be Named Fiduciaries with respect to shares of Company Stock allocated to their respective Accounts on matters as to which they are entitled to provide voting directions. 
 9.3        Transaction of Business.  The Committee and Investment Subcommittee shall transact
business as provided in paragraphs (a) and (b), respectively: 
 (a)        A
majority of the Committee shall constitute a quorum for the transaction of business. Actions of the Committee may be taken either by vote at a meeting or in writing without a meeting. All action taken by the Committee at any meeting shall be by a
vote of the majority of those present at such meeting. All action taken in writing without a meeting shall be by a vote of the majority of those responding in writing. All notices, advices, directions and instructions to be transmitted by the
Committee shall be in writing and signed by or in the name of the Committee. In all its communications with the Trustee, the Committee may, by either of the majority actions specified above, authorize any one or more of its members to execute any
document or documents on behalf of the Committee, in which event it shall notify the Trustee in writing of such action and the name or names of its members so designated and the Trustee shall 

  

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thereafter accept and rely upon any documents executed by such member or members as representing action by the Committee until the Committee shall file with
the Trustee a written revocation of such designation. 
 (b)        A majority of the
Investment Subcommittee shall constitute a quorum for the transaction of business. Actions of the Investment Subcommittee may be taken either by vote at a meeting or in writing without a meeting. All action taken by the Investment Subcommittee at
any meeting shall be by a vote of the majority of those present at such meeting. All action taken in writing without a meeting shall be by a vote of the majority of those responding in writing. All notices, advices, directions and instructions to be
transmitted by the Investment Subcommittee shall be in writing and signed by or in the name of the Investment Subcommittee. In all its communications with the Trustee, the Investment Subcommittee may, by action specified above, authorize any one or
more of its members to execute any document or documents on behalf of the Investment Subcommittee, in which event it shall notify the Trustee in writing of such action and the name or names of its members so designated and the Trustee shall
thereafter accept and rely upon any documents executed by such member or members as representing action by the Investment Subcommittee until the Investment Subcommittee shall file with the Trustee a written revocation of such designation.

 9.4        Voting.  Any member of the Committee who is also a Participant
hereunder shall not be qualified to act or vote on any matter relating solely to himself or herself, and upon such matter his or her presence at a meeting shall not be counted for the purpose of determining a quorum. If, at any time a member of the
Committee is not so qualified to act or vote, the qualified members of the Committee shall be reduced below two (2) and the Board of Directors shall promptly appoint one or more special members to the Committee so that there shall be at least
one qualified member to act upon the matter in question. Such special Committee members shall have power to act only upon the matter for which they were especially appointed and their tenure shall cease as soon as they have acted upon the matter for
which they were especially appointed. 
 9.5        Responsibility of
Committees.  The responsibilities of the Committee and Investment Subcommittee shall be as provided in paragraphs (a) and (b), respectively: 
 (a)        The authority to manage and control the operation and administration of the Plan, the
general administration of the Plan, the responsibility for carrying out the Plan, and to the extent provided in Section 9.7(f), the authority and responsibility to manage and control the assets of the Trust are hereby delegated by the Board of
Directors to and vested in the Committee except to the extent reserved to the Board of Directors, the Sponsor, or the Company. Subject to the limitations of the Plan, the Committee shall, from time to time, establish rules for the performance of its
functions and the administration of the Plan. In the performance of its functions, the Committee shall not discriminate in favor of Highly Compensated Employees. 
 (b)        The authority and responsibility to manage and control the assets of the Trust are
hereby delegated by the Board of Directors, acting through its Organization and 

  

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Compensation Committee, to and vested in the Investment Subcommittee except to the extent reserved to the Board of Directors or the Board of Directors,
acting through its Organization and Compensation Committee, or the Sponsor. Subject to the limitations of the Plan, the Investment Subcommittee shall, from time to time, establish rules for the performance of its functions. 
 9.6        Committee Powers.  The Committee shall have all discretionary powers necessary to
supervise the administration of the Plan and control its operations. In addition to any discretionary powers and authority conferred on the Committee elsewhere in the Plan or by law, the Committee shall have, but not by way of limitation, the
following discretionary powers and authority: 
 (a)        To designate agents to
carry out responsibilities relating to the Plan, other than fiduciary responsibilities as provided in Section 9.7. 
 (b)        To employ such legal, actuarial, medical, accounting, clerical, and other assistance as it may deem appropriate in carrying out the provisions of the Plan, including one or more persons to
render advice with regard to any responsibility any Named Fiduciary or any other fiduciary may have under the Plan. 
 (c)        To establish rules and regulations from time to time for the conduct of the Committee’s business and the administration and effectuation of the Plan. 
 (d)        To administer, interpret, construe, and apply the Plan and to decide all questions
which may arise or which may be raised under the Plan by any Employee, Participant, former Participant, Beneficiary or other person whatsoever, including but not limited to all questions relating to eligibility to participate in the Plan, the amount
of Credited Service of any Participant, and the amount of benefits to which any Participant or his or her Beneficiary may be entitled. 
 (e)        To determine the manner in which the assets of the Plan, or any part thereof, shall be disbursed. 
 (f)        Subject to provisions (a) through (d) of Section 10.1, to make
administrative amendments to the Plan that do not cause a substantial increase or decrease in benefit accruals to Participants and that do not cause a substantial increase in the cost of administering the Plan. 
 (g)        To perform or cause to be performed such further acts as it may deem to be necessary,
appropriate or convenient in the efficient administration of the Plan. 
 Any action taken in good faith by the Committee in the exercise of
discretionary powers conferred upon it by the Plan shall be conclusive and binding upon the Participants and their Beneficiaries. All discretionary powers conferred upon the Committee shall be absolute; provided, however, that all such discretionary
power shall be exercised in a uniform and nondiscriminatory manner. 
  

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 9.7        Additional Powers of
Committee.    In addition to any discretionary powers or authority conferred on the Committee elsewhere in the Plan or by law, such Committee shall have the following discretionary powers and authority: 
 (a)        To appoint one or more Investment Managers pursuant to Section 5.16 to manage and
control any or all of the assets of the Trust not invested or to be invested in Company Stock. 
 (b)        To designate persons (other than the members of the Committee) to carry out fiduciary responsibilities, other than any responsibility to manage or control the assets of the Trust;

 (c)        To allocate fiduciary responsibilities among the members of the
Committee, other than any responsibility to manage or control the assets of the Trust; 
 (d)        To cancel any such designation or allocation at any time for any reason; 
 (e)        To direct the voting of any Company Stock or any other security held by the Trust subject to Sections 5.10 and 9.16 hereof; and 
 (f)        To exercise management and control over the assets of the Trust to the extent provided
in paragraph (a) above and in Section 9.9 (relating to review by the Committee of the long-run and short-run financial needs of the Plan and the determination of the funding policy for the Plan). 
 Any action under this Section 9.7 shall be taken in writing, and no designation or allocation under paragraphs (a), (b) or (c) shall be
effective until accepted in writing by the indicated responsible person. 
 9.8        Investment
Subcommittee Powers.    The Investment Subcommittee shall have all discretionary powers necessary to manage and control the assets of the Trust, including but not limited to, the following: 
 (a)        To exercise management and control over the assets of the Trust except to the extent
the Committee appoints an Investment Manager pursuant to Section 9.7(a) and subject to the requirement that all action taken by the Investment Subcommittee shall be in accordance and consistent with the funding policy established by the
Committee and shall be communicated to the Committee at periodic intervals. 
 (b)        To employ consulting, actuarial, and other assistance as it may deem appropriate in carrying out its responsibilities under the Plan, including one or more persons to render advice with
regard to any fiduciary responsibility the Investment Subcommittee may have under the Plan. 
  

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 (c)        To establish rules and regulations
from time to time for the conduct of the Investment Subcommittee’s business. 
 (d)        To direct the Trustee, in writing, from time to time, to invest and reinvest the Trust Fund, or any part thereof, or to purchase, exchange, or lease any property, real or personal, which
the Investment Subcommittee may designate. This shall include the right to direct the investment of all or any part of the Trust in any one security or any one type of securities permitted hereunder. 
 (e)        To direct the purchase and sale of Company Stock (and any other securities that are
“qualifying employer securities” as defined in Code Section 4975(e)) for the Trust. 
 Any action taken in good faith by the
Investment Subcommittee in the exercise of discretionary powers conferred upon it by the Plan shall be conclusive and binding upon the Participants and their Beneficiaries. 
 9.9        Periodic Review of Funding Policy.  Notwithstanding the delegation of authority and
responsibility to manage and control the assets of the Trust to the Investment Subcommittee, the Committee, at periodic intervals, shall review the long-run and short-run financial needs of the Plan and shall determine a funding policy for the Plan
consistent with the objectives of the Plan and the minimum funding standards of ERISA, if applicable. In determining such funding policy the Committee shall take into account, at a minimum, not only the long-term investment objectives of the Trust
Fund consistent with the prudent management of the assets thereof, but also the short-run needs of the Plan to pay benefits. All actions taken by the Committee with respect to the funding policy of the Plan, including the reasons therefor, shall be
fully reflected in the minutes of the Committee. 
 9.10      Claims Procedures.  If a
Participant or his or her Beneficiary believes that he or she is being denied any rights or benefits under the Plan, the Participant, Beneficiary, or in either case, his or her authorized representative (the “Claimant”) shall follow the
administrative procedures for filing a claim for benefits as set forth in this Section. A claim for benefits shall be in writing and shall be reviewed by the Committee or a claims official designated by the Committee. The Committee or claims
official shall review a claim for benefits in accordance with the procedures established by the Committee subject to the following administrative procedures set forth in this Section. 
 (a)        The Committee shall furnish the Claimant with written or electronic notice of the
decision rendered with respect to a claim for benefits within 90 days following receipt by the Committee (or its delegate) of the claim unless the Committee determines that special circumstances require an extension of time for processing the
claim. In the event an extension is necessary, written or electronic notice of the extension shall be furnished to the Claimant prior to the expiration of the initial 90 day period. The notice shall indicate the special circumstances requiring
an extension of time and the date by which a final decision is expected to be rendered. In no event shall the period of the extension exceed 90 days from the end of the initial 90 day period. 
  

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 (b)        In the case of a denial of the
Claimant’s claim, the written or electronic notice of such denial shall set forth (i) the specific reasons for the denial, (ii) references to the Plan provisions upon which the denial is based, (iii) a description of any
additional information or material necessary for perfection of the claim (together with an explanation why such material or information is necessary), (iv) an explanation of the Plan’s appeals procedures, and (v) a statement of the
Claimant’s right to bring a civil action under Section 502(a) of ERISA if his or her claim is denied upon appeal. 
 (c)        In the case of a denial of a claim, a Claimant who wishes to appeal the decision shall follow the administrative procedures for an appeal as set forth in Section 9.11 below.

 9.11      Appeals Procedures.  A Claimant who wishes to appeal the denial of his or her
claim for benefits shall follow the administrative procedures for an appeal as set forth in this Section and shall exhaust such administrative procedures prior to seeking any other form of relief. Appeals shall be reviewed in accordance with the
procedures established by the Committee subject to the following administrative procedures set forth in this Section. 
 (a)        In order to appeal a decision rendered with respect to his or her claim for benefits, a Claimant must file an appeal with the Committee in writing within 60 days following his or her
receipt of the notice of denial with respect to the claim. 
 (b)        The
Claimant’s appeal may include written comments, documents, records and other information relating to his or her claim. The Claimant may review all pertinent documents and, upon request, shall have reasonable access to or be provided free of
charge, copies of all documents, records, and other information relevant to his or her claim. 
 (c)        The Committee shall provide a full and fair review of the appeal and shall take into account all claim related comments, documents, records, and other information submitted by the Claimant
without regard to whether such information was submitted or considered under the initial determination or review of the initial determination. Where appropriate, the Committee will overturn a notice of denial if it determines that an error was made
in the interpretation of the controlling plan documents or if the Committee determines that an existing interpretation of the controlling plan documents should be changed on a prospective basis. In the event the Claimant is a subordinate, as
determined by the Committee, to an individual conducting the review, such individual shall recuse himself or herself from the review of the appeal. 
 (d)        The Committee shall furnish the Claimant with written or electronic notice of the decision rendered with respect to an appeal within 60 days following receipt by
the Committee of the appeal unless the Committee determines that special circumstances require an extension of time for processing the appeal. In the event an extension is necessary, written or electronic notice of the extension shall be furnished
to the Claimant prior to the expiration of the initial 60 day period. The notice shall indicate the special circumstances requiring an extension of time and the date by which a final decision is 

  

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expected to be rendered. In no event shall the period of the extension exceed 60 days from the end of the initial 60 day period. 
 (e)        In the case of a denial of an appeal, the written or electronic notice of such denial
shall set forth (i) the specific reasons for the denial, (ii) references to the Plan provisions upon which the denial is based, (iii) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records, and other information relating to his or her claim for benefits, and (iv) a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA. 
 9.12      Limitation on Liability  Each of the fiduciaries under the Plan shall be solely responsible for
its own acts and omissions and no fiduciary shall be liable for any breach of fiduciary responsibility resulting from the act or omission of any other fiduciary or person to whom fiduciary responsibilities have been allocated or delegated pursuant
to Section 9.2 or 9.7, except as provided in Sections 405(a) and 405(c)(2)(A) or (B) of ERISA. Neither the Committee nor the Investment Subcommittee shall have responsibility over assets as to which management and control has been
delegated to an Investment Manager appointed pursuant to Section 5.16 hereof or as to which management and control has been retained by the Trustee. 
 9.13      Indemnification and Insurance.  To the extent permitted by law, the Company shall indemnify and hold harmless the Committee, the Investment Subcommittee and
each member thereof, the Board of Directors and each member thereof, and such other persons as the Board of Directors may specify, from the effects and consequences of his or her acts, omissions, and conduct in his or her official capacity in
connection with the Plan and Trust. To the extent permitted by law, the Company may also purchase liability insurance for such persons. 
 9.14      Compensation of Committees and Plan Expenses.  Members of the Committee and the Investment Subcommittee shall serve as such without compensation unless the Board of Directors shall
otherwise determine, but in no event shall any member of the Committee or Investment Subcommittee who is an Employee receive compensation from the Plan for his or her services as a member of the Committee or the Investment Subcommittee. All members
shall be reimbursed for any necessary expenditures incurred in the discharge of duties as members of the Committee or the Investment Subcommittee. The compensation or fees, as the case may be, of all officers, agents, counsel, the Trustee or other
persons retained or employed by the Committee or the Investment Subcommittee shall be fixed by the Committee, subject to approval by the Board of Directors. The expenses incurred in the administration and operation of the Plan, including but not
limited to the expenses incurred by the members of the Committee or the Investment Subcommittee in exercising their duties, shall be paid by the Plan from the Trust Fund, unless paid by the Company, provided, however, that the Plan and not the
Company shall bear the cost of interest and normal brokerage charges which are included in the cost of securities purchased by the Trust Fund (or charged to proceeds in the case of sales). With respect to the expenses that are paid by the Plan from
the Trust Fund, such expenses shall be allocated among Participants’ Accounts in a manner determined by the Committee. Any Forfeitures remaining after application of Section 6.3(c) shall share in such allocation to the extent required
under applicable law. The Investment Subcommittee shall direct the Trustee to use Plan assets (and, if 

  

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necessary, to sell the shares of Company Stock that represent such Plan assets) to pay such expenses. 
 9.15      Resignation.  Any member of the Committee or Investment Subcommittee may resign by giving
fifteen (15) days notice to the Board of Directors, and any member shall resign forthwith upon receipt of the written request of the Board of Directors, whether or not said member is at that time the only member of the Committee or the
Investment Subcommittee. 
 9.16      Reliance Upon Documents and Opinions.  The members of
the Committee, the Investment Subcommittee, the Board of Directors, the Company and any person delegated to carry out any fiduciary responsibilities under the Plan (hereinafter a “delegated fiduciary”), shall be entitled to rely upon any
tables, valuations, computations, estimates, certificates and reports furnished by any consultant, or firm or corporation which employs one or more consultants, upon any opinions furnished by legal counsel, and upon any reports furnished by the
Trustee or any Investment Manager. The members of the Committee, the Investment Subcommittee, the Board of Directors, the Company and any delegated fiduciary shall be fully protected and shall not be liable in any manner whatsoever for anything done
or action taken or suffered in reliance upon any such consultant, or firm or corporation which employs one or more consultants, Trustee, Investment Manager, or counsel. Any and all such things done or such action taken or suffered by the Committee,
the Investment Subcommittee, the Board of Directors, the Company and any delegated fiduciary shall be conclusive and binding on all Employees, Participants, Beneficiaries, and any other persons whomsoever, except as otherwise provided by law. The
Committee, the Investment Subcommittee, and any delegated fiduciary may, but are not required to, rely upon all records of the Company with respect to any matter or thing whatsoever, and may likewise treat such records as conclusive with respect to
all Employees, Participants, Beneficiaries, and any other persons whomsoever, except as otherwise provided by law. 
  

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 ARTICLE X 
 AMENDMENT AND ADOPTION OF PLAN 
 10.1      Right to Amend
Plan.   The Sponsor, by resolution of the Board of Directors, shall have the right to amend the Plan and Trust Agreement at any time and from time to time and in such manner and to such extent as it may deem advisable, including
retroactively, subject to the following provisions: 
 (a)        No amendment shall
have the effect of reducing any Participant’s vested interest in the Plan or eliminating an optional form of distribution. 
 (b)        No amendment shall have the effect of diverting any part of the assets of the Plan to persons or purposes other than the exclusive benefit of the Participants or their Beneficiaries.

 (c)        No amendment shall have the effect of increasing the duties or
responsibilities of a Trustee without its written consent. 
 (d)        No amendment
shall result in discrimination in favor of officers, shareholders, or other highly compensated or key employees. 
 The Committee shall have
the right to amend the Plan, subject to paragraphs (a) through (d), in accordance with the provisions of Section 9.6(f). 
 10.2      Adoption of Plan by Affiliated Companies.  Subject to approval by the Board of Directors and consistent with the provisions of ERISA, an Affiliated Company may adopt the Plan for all
or any specified group of its Eligible Employees by entering into an adoption agreement in the form and substance prescribed by the Committee. The adoption agreement may include such modification of the Plan provisions with respect to such Eligible
Employees as the Committee approves after having determined that no prohibited discrimination or other threat to the qualification of the Plan is likely to result. The Board of Directors may prospectively revoke or modify an Affiliated
Company’s participation in the Plan at any time and for any or no reason, without regard to the terms of the adoption agreement, or terminate the Plan with respect to such Affiliated Company’s Eligible Employees and Participants. By
execution of an adoption agreement (each of which by this reference shall become part of the Plan), the Affiliated Company agrees to be bound by all the terms and conditions of the Plan. 
  

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 ARTICLE XI 
 DISCONTINUANCE OF CONTRIBUTIONS 
 In the event the Company decides it is impossible or
inadvisable for business reasons to continue to make contributions under the Plan, it may, by resolution of the Board of Directors, discontinue contributions to the Plan. Upon the permanent discontinuance of contributions to the Plan and
notwithstanding any other provisions of the Plan, the rights of Participants shall become fully vested and nonforfeitable unless replaced by a comparable plan. The permanent discontinuance of contributions on the part of the Company shall not
terminate the Plan as to the funds and assets then held in the Trust, or operate to accelerate any payments of distributions to or for the benefit of Participants or Beneficiaries, and the Trust shall continue to be administered in accordance with
the provisions hereof until the obligations hereunder shall have been discharged and satisfied. 
  

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 ARTICLE XII 
 TERMINATION AND MERGER 
 12.1      Right to Terminate
Plan.    In the event the Board of Directors decides it is impossible or inadvisable for business reasons to continue the Plan, then it may, by resolution, terminate the Plan. Upon and after the effective date of such
termination, the Company shall not make any further contributions under the Plan. Upon the termination or partial termination of the Plan for any reason, the interest in the Trust of each affected Participant shall automatically become fully vested
unless the Plan is continued after its termination by conversion of the Plan into a comparable Plan through Plan amendment or through merger. After the satisfaction of all outstanding liabilities of the Plan to persons other than Participants and
Beneficiaries, all unallocated assets shall be allocated to the Accounts of Participants to the maximum extent permitted by law. The Trust Fund may not be fully or finally liquidated until all assets are allocated to Accounts; alternatively any
unallocated assets may be transferred to another defined contribution plan maintained by the Sponsor or an Affiliated Company qualified under Code Section 401 where such assets shall be allocated among the accounts of Participants herein who
are participants in such transferee plan. In no event, however, shall any part of the Plan revert to or be recoverable by the Company, or be used for or diverted to purposes other than for the exclusive benefit of the Participants or their
Beneficiaries. Notwithstanding the foregoing, amounts held in the 415 Suspense Account may revert to the Company in accordance with Section 13.6. 
 12.2      Merger Restriction.    Notwithstanding any other provision in the Plan, the Plan shall not in whole or in part merge or consolidate with, or transfer
its assets or liabilities to, any other plan unless each affected Participant in the Plan would (if such other plan then terminated) receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the
benefit he or she would have been entitled to receive immediately before the merger, consolidation, or transfer (if the Plan had then terminated). 
 12.3      Effect on Trustee and Committee.  The Trustee and the Committee shall continue to function as such for such period of time as may be necessary for the winding up of the Plan and for
the making of distributions in the manner prescribed by the Board of Directors at the time of termination of the Plan. 
 12.4      Effect of Reorganization, Transfer of Assets or Change in Control. 
 (a)        In the event of a consolidation or merger of the Company, or in the event of a sale and/or any other transfer of the operating assets of the Company, any ultimate successor or successors to
the business of the Company may continue the Plan in full force and effect by adopting the same by resolution of its board of directors and by executing a proper supplemental or transfer agreement with the Trustee. 
 (b)        In the event of a Change in Control (as herein defined), all Participants who were
Participants on the date of such Change in Control shall become 100% vested in any amounts allocated to their Company Contributions 

  

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Accounts on the date of such Change in Control and in any amounts allocated to their Company Contributions Accounts subsequent to the date of the Change in
Control. Notwithstanding the foregoing, the Board of Directors may, at its discretion, amend or delete this paragraph (b) in its entirety prior to the occurrence of any such Change in Control. For the purpose of this paragraph (b), “Change
in Control” shall mean the following and shall be deemed to occur if any of the following events occur: 
 (i)        Any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (a “Person”), is or
becomes the “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act (a “Beneficial Owner”), directly or indirectly, of securities of the Sponsor representing (1) 20% or more of the combined voting power of the
Sponsor’s then outstanding voting securities, which acquisition is not approved in advance of the acquisition or within 30 days after the acquisition by a majority of the Incumbent Board (as hereinafter defined) or (2) 33% or more of the
combined voting power of the Sponsor’s then outstanding voting securities, without regard to whether such acquisition is approved by the Incumbent Board; 
 (ii)       Individuals who, as of the date hereof, constitute the Board of Directors (the
“Incumbent Board”), cease for any reason to constitute at least a majority of the Board of Directors, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the
Sponsor’s stockholders, is approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual
or threatened election contest relating to the election of the directors of the Sponsor, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) shall, for the purposes of the Plan, be considered as though such
person were a member of the Incumbent Board of the Sponsor; 
 (iii)      The consummation of
a merger, consolidation or reorganization involving the Sponsor, other than one which satisfies both of the following conditions: 
  (A)        a merger, consolidation or reorganization which would result in the voting securities of the Sponsor outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of another entity) at least 55% of the combined voting power of the voting securities of the Sponsor or such other entity resulting from the merger, consolidation or reorganization (the
“Surviving Corporation”) outstanding immediately after such merger, consolidation or reorganization and being held in substantially the same proportion as the ownership in the Sponsor’s voting 

  

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securities immediately before such merger, consolidation or reorganization, and 
  (B)        a merger, consolidation or reorganization in which no Person is or becomes the
Beneficial Owner, directly or indirectly, of securities of the Sponsor representing 20% or more of the combined voting power of the Sponsor’s then outstanding voting securities; or 
 (iv)      The stockholders of the Sponsor approve a plan of complete liquidation of the Sponsor or an
agreement for the sale or other disposition by the Sponsor of all or substantially all of the Sponsor’s assets. 
 Notwithstanding the preceding provisions of this paragraph (b), a Change in Control shall not be deemed to have occurred if the Person described in the preceding provisions of this paragraph (b) is (i) an underwriter or
underwriting syndicate that has acquired any of the Sponsor’s then outstanding voting securities solely in connection with a public offering of the Sponsor’s securities, (ii) the Sponsor or any subsidiary of the Sponsor or
(iii) an employee stock ownership plan or other employee benefit plan maintained by the Sponsor or an Affiliated Company that is qualified under the provisions of the Code. In addition, notwithstanding the preceding provisions of this paragraph
(b), a Change in Control shall not be deemed to have occurred if the Person described in the preceding provisions of this paragraph (b) becomes a Beneficial Owner of more than the permitted amount of outstanding securities as a result of the
acquisition of voting securities by the Sponsor or an Affiliated Company which, by reducing the number of voting securities outstanding, increases the proportional number of shares beneficially owned by such Person, provided, that if a Change in
Control would occur but for the operation of this sentence and such Person becomes the Beneficial Owner of any additional voting securities (other than through the exercise of options granted under any stock option plan of the Sponsor or through a
stock dividend or stock split), then a Change in Control shall occur. 
 (c)        For purposes of this Section 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. 
  

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 ARTICLE XIII 
 LIMITATION ON ALLOCATIONS 
 13.1      General Rule.

 (a)        The total Annual Additions under the Plan to a Participant’s
Accounts shall not exceed the lesser of: 
 (i)        Forty Thousand Dollars
($40,000) as adjusted for increases in the cost-of-living under Code Section 415(d); or 
 (ii)       One Hundred Percent (100%) of the Participant’s Compensation (as defined in Section 13.5), from the Company for the Limitation Year, 
 except to the extent “catch-up” contributions are permitted under Section 4.2(e) and Code Section 414(v). Notwithstanding the
foregoing sentence, the compensation limit set forth in subparagraph (ii) shall not apply to any contribution for medical benefits after separation from service (within the meaning of Code Section 401(h) or Code Section 419A(f)(2))
which is otherwise treated as an Annual Addition. 
 (b)        For the purpose of
this Article XIII, the term “Company” shall mean the Sponsor and any Affiliated Company (determined by reference to Code Section 415(h)) whether or not such Affiliated Company has adopted the Plan pursuant to Section 10.2 and the
term “Limitation Year” shall mean the Plan Year. 
 13.2      Annual Additions.  For
purposes of Section 13.1, the term “Annual Additions” shall mean with respect to a Participant, for any Limitation Year with respect to the Plan, the sum of the amounts described below: 
 (a)        All amounts contributed or deemed contributed by the Company. 
 (b)        All amounts contributed by the Participant. 
 (c)        Forfeitures allocated to such Participant. 
 (d)        Any amounts allocated, after March 31, 1984, to an individual medical account as
defined in Code Section 415(l)(2) established under a pension or annuity plan maintained by the Company. 
 (e)        Any amounts allocated for such Plan Year which amounts are derived from contributions paid or accrued after December 31, 1985, in taxable years ending after such date, which are
attributable to postretirement medical benefits allocated to the separate account of a key employee (as defined in Code Section 419A(d)(3)) under a welfare benefit fund (as defined in Code Section 419(e)) maintained by the Company.

  

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 (f)        Excess deferral amounts determined
pursuant to Sections 4.5 and 6.12. 
 (g)       Excess deferral amounts determined
pursuant to Section 4.4 to the extent such amounts are distributed after the first April 15th following the close of the Participant’s taxable year. 
 Notwithstanding the foregoing, a Participant’s Rollover Contributions shall not be considered an Annual Addition. 
 13.3      Other Defined Contribution Plans.  If the Company maintains any other defined contribution plan, then each Participant’s Annual Additions under such
defined contribution plan shall be aggregated with the Participant’s Annual Additions under the Plan for the purposes of applying the limitations of Section 13.1. 
 13.4      Adjustments for Excess Annual Additions.    If as a result of the allocation of
forfeitures, a reasonable error in estimating a Participant’s Compensation, or under other limited facts and circumstances that the Commissioner of Internal Revenue finds justify the availability of the rules set forth in Regulation
Section 1.415-6(b)(6), the Annual Additions on behalf of any Participant in a Limitation Year to the Plan and all other defined contribution plans maintained by the Company exceed the limitation set forth in Section 13.1, such
Participant’s Annual Additions for the Plan shall be reduced in the following order: (i) After Tax Deposits that are not Matched Deposits, (ii) After Tax Deposits that are Matched Deposits, (iii) Before Tax Deposits that are not
Matched Deposits, (iv) Before Tax Deposits that are Matched Deposits, (v) Matching Contributions, and (vi) Retirement Contributions. The portion of the reduction attributable to After Tax Deposits and Before Tax Deposits shall be
refunded to the Participants and the balance attributable to Matching Contributions, if any, shall be held unallocated in a 415 Suspense Account established for the purpose of this Section 13.4 and shall be used to reduce Company Contributions
for the next limitation year (and succeeding limitation year, as necessary) for all Participants in the Plan. The 415 Suspense Account shall be exhausted before any Company contributions shall be allocated to the Accounts of Participants.

 13.5      Compensation.  For the purpose of this Article XIII, Compensation shall mean a
Participant’s earned income, wages, salaries, fees for professional services, and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with the
Company maintaining the Plan and shall be determined as described below: 
 (a)        Compensation shall include to the extent that the amounts are includible in gross income (including, but not limited to, commissions paid salespeople, compensation for services on the basis
of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements or other expense allowances under a nonaccountable plan as described in Regulation 1.62-2(c)). 
 (b)        Compensation shall include any elective deferral as defined in Code
Section 402(g)(3), any amount which is contributed or deferred by the Company at the election of the Employee that is excludable from an Employee’s gross income under 

  

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Code Sections 125 or 457 and, for Plan Years beginning on or after January 1, 1998, any elective amount that is excludable from an Employee’s gross
income under Code Section 132(f)(4). 
 (c)        Compensation shall not
include (i) any employer contributions to a plan of deferred compensation which are not included in the Employee’s gross income for the taxable year in which contributed, (ii) any distributions from a plan of deferred compensation,
(iii) any amounts realized from the exercise of a non-qualified stock option or when restricted stock or property held by the Employee becomes either freely transferable or is no longer subject to a substantial risk of forfeiture under Code
Section 83 if such option, stock, or property was granted to the Employee by the Company, (iv) any amounts realized from the sale, exchange, or other disposition of stock acquired under a qualified stock option, (v) any contribution
for medical benefits (within the meaning of Code Section 419(f)(2) after termination of employment which is otherwise treated as an Annual Addition, and (vi) any amount otherwise treated as an Annual Addition under Code
Section 415(l)(1). 
 13.6      Treatment of 415 Suspense Account Upon Termination.  In
the event the Plan shall terminate at a time when all amounts in the 415 Suspense Account have not been allocated to the Accounts of the Participants, the 415 Suspense Account amounts shall be applied as follows: 
 (a)        The amount in the 415 Suspense Account shall first be allocated, as of the Plan
termination date, to Participants in accordance with the allocation formula applicable to Company Contributions provided under Section 6.3. 
 (b)        If, after those allocations have been made, any further residue funds remain in the 415 Suspense Account, the residue may revert to the Company in accordance with
applicable provisions of the Code, ERISA, and the regulations thereunder. 
  

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 ARTICLE XIV 
 TOP-HEAVY RULES 
 14.1      Applicability.  Notwithstanding any provision in the Plan to the contrary, and subject to the limitations set forth in Section 14.6, the requirements of Sections 14.4 and
14.5 shall apply under the Plan in the case of any Plan Year in which the Plan is determined to be a Top-Heavy Plan under the rules of Section 14.3. For the purpose of this Article XIV, the term “Company” shall mean the Sponsor and
any Affiliated Company whether or not such Affiliated Company has adopted the Plan. 
 14.2      Definitions.  For purposes of this Article XIV, the following special definitions and rules shall apply: 
 (a)        The term “Key Employee” means any Employee or former Employee (including any
deceased Employee) who, at any time during the Plan Year that includes the Determination Date, was an officer of the Company having annual Compensation greater than $130,000 (as adjusted under Code Section 416(i)(1) for Plan Years beginning
after December 31, 2002), a Five Percent Owner of the Company, or an One Percent Owner of the Company having annual Compensation of more than $150,000. 
 (b)        The term “Five Percent Owner” means any person who owns (or is considered as
owning within the meaning of Code Section 318) more than 5% of the outstanding stock of the Company or stock possessing more than 5% of the total combined voting power of all stock of the Company. 
 (c)        The term “One Percent Owner” means any person who would be described in
paragraph (b) if “1%” were substituted for “5%” each place where it appears therein. 
 (d)        The term “Non-Key Employee” means any Employee who is not a Key Employee. 
 (e)        The term “Determination Date” means, with respect to any plan year, the last day of the preceding plan year. In the case of the first plan year of any plan,
the term “Determination Date” shall mean the last day of that plan year. 
 (f)        The term “Aggregation Group” means (i) each qualified plan of the Company in which at least one Key Employee participates or participated at any time during the determination
period (regardless of whether the plan has terminated), and (ii) any other qualified plan of the Company which enables a plan described in clause (i) to meet the requirements of Code Sections 401(a)(4) or 410. Any plan not required to
be included in an Aggregation Group under the preceding rules may be treated as being part of such group if the group would continue to meet the requirements of Code Sections 401(a)(4) and 410 with the plan being taken into account. 

 

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 (g)        For purposes of determining ownership
under paragraphs (a), (b) and (c) above, the following special rules shall apply: (i) Code Section 318(a)(2)(C) shall be applied by substituting “5%” for “50%”, and (ii) the aggregation rules of Code
Sections 414(b), (c) and (m) shall not apply, with the result that the ownership tests of this Section 14.2 shall apply separately with respect to each Affiliated Company. 
 (h)        The terms “Key Employee” and “Non-Key Employee” shall include
their Beneficiaries, and the definitions provided under this Section 14.2 shall be interpreted and applied in a manner consistent with the provisions of Code Section 416(i) and the regulations thereunder. 
 (i)        For purposes of this Article XIV, an Employee’s Compensation shall be determined
in accordance with the rules of Section 13.5. 
 14.3      Top-Heavy Status. 
 (a)        The term “Top-Heavy Plan” means, with respect to any Plan Year: 

(i)        Any defined benefit plan if, as of the Determination Date, the present value of
the cumulative accrued benefits under the plan for Key Employees exceeds 60% of the present value of the cumulative accrued benefits under the plan for all Employees; and 
 (ii)       Any defined contribution plan if, as of the Determination Date, the aggregate of the
account balances of Key Employees under the plan exceeds 60% of the aggregate of the account balances of all Employees under the plan. 
 In applying the foregoing provisions of this paragraph (a), the valuation date to be used in valuing Plan assets shall be (i) in the case of a defined benefit plan, the same date which is used for computing
costs for minimum funding purposes, and (ii) in the case of a defined contribution plan, the most recent valuation date within a 12-month period ending on the applicable Determination Date. 
 (b)        Each plan maintained by the Company required to be included in an Aggregation Group
shall be treated as a Top-Heavy Plan if the Aggregation Group is a Top-Heavy Group. 
 (c)        The term “Top-Heavy Group” means any Aggregation Group if the sum (as of the Determination Date) of (i) the present value of the cumulative accrued benefits for Key Employees
under all defined benefit plans included in the group, and (ii) the aggregate of the account balances of Key Employees under all defined contribution plans included in the group exceeds 60% of a similar sum determined for all Employees. For
purposes of determining the present value of the cumulative accrued benefit of any Employee, or the amount of the account balance of any Employee, such present value or amount shall be increased by the aggregate distributions made with respect to
the Employee under the plan (including a terminated plan which, had it not been terminated, 

  

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would have been aggregated with the plan under Code Section 416(g)(2)(A)(i)) during the one year period ending on the Determination Date. In the
case of distributions made for a reason other than separation from service, death, or disability, the preceding sentence shall be applied by substituting “five year period” for “one year period.” Any rollover contribution or
similar transfer initiated by the Employee and made after December 31, 1983, to a plan shall not be taken into account with respect to the transferee plan for purposes of determining whether such plan is a Top-Heavy Plan (or whether any
Aggregation Group which includes such plan is a Top-Heavy Group). 
 (d)        If
any individual is a Non-Key Employee with respect to any plan for any plan year, but the individual was a Key Employee with respect to the plan for any prior plan year, any accrued benefit for the individual (and the account balance of the
individual) shall not be taken into account for purposes of this Section 14.3. 
 (e)        If any individual has not performed services for the Company at any time during the one year period ending on the Determination Date, any accrued benefit for such individual (and the
account balance of the individual) shall not be taken into account for purposes of this Section 14.3. 
 (f)        In applying the foregoing provisions of this Section, the accrued benefit of a Non-Key Employee shall be determined (i) under the method, if any, which is used for accrual purposes
under all plans of the Company and any Affiliated Companies, or (ii) if there is no such uniform method, as if such benefit accrued not more rapidly than the slowest accrual rate permitted under Code Section 411(b)(1)(C). 
 (g)        For all purposes of this Article XIV, the definitions provided under this
Section 14.3 shall be applied and interpreted in a manner consistent with the provisions of Code Section 416(g) and the regulations thereunder. 
 14.4      Minimum Contributions.  For any Plan Year in which the Plan is determined to be a Top-Heavy Plan, the minimum employer contributions for that year shall be
determined in accordance with the rules of this Section 14.4. 
 (a)        Except as provided below, the minimum contribution for each Non-Key Employee shall be not less than 3% of his or her compensation. Before Tax Deposits shall not be taken into account but
Matching Contributions as defined in Section 6.11 shall be taken into account for purposes of satisfying the minimum contribution requirement. Matching Contributions that are used to satisfy the minimum contribution requirement shall be treated
as matching contributions for purposes of the actual contribution percentage test and other requirements of Code Section 401(m). 
 (b)        Subject to the following rules of this paragraph (b), the percentage set forth in paragraph (a) above shall not be required to exceed the percentage at
which contributions (including amounts deferred under a cash or deferred arrangement under Code Section 401(k)) are made (or are required to be made) under the Plan for the year for the Key Employee for whom the percentage is the highest for
the year. This 

  

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determination shall be made by dividing the contributions for each Key Employee by so much of his or her total compensation for the Plan Year as does not
exceed the applicable Compensation limit. For purposes of this paragraph (b), all defined contribution plans required to be included in an Aggregation Group shall be treated as one plan. Notwithstanding the foregoing, the exceptions to
paragraph (a) as provided under this paragraph (b) shall not apply to any plan required to be included in an Aggregation Group if the plan enables a defined benefit plan to meet the requirements of Code Sections 401(a)(4) or 410.

 (c)        The Participant’s minimum contribution determined under this
Section 14.4 shall be calculated without regard to any Social Security benefits payable to the Participant. 
 (d)        In the event a Participant is covered by both a defined contribution and a defined benefit plan maintained by the Company, both of which are determined to be Top-Heavy Plans, the Company
shall satisfy the minimum benefit requirements of Code Section 416 by providing (in lieu of the minimum contribution described in paragraph (a) above) a minimum benefit under the defined benefit plan so as to prevent the duplication of
required minimum benefits hereunder. 
 14.5      Minimum Vesting Rules.  For any Plan Year in
which it is determined that the Plan is a Top-Heavy Plan, the vesting schedule for Matching Contributions shall be the vesting schedule set forth in Section 7.2(a) and the vesting schedule for Retirement Contributions shall be the vesting
schedule set forth in Section 7.2(b). 
 14.6      Noneligible
Employees.    The rules of this Article XIV shall not apply to any Employee included in a unit of employees covered by a collective bargaining agreement between employee representatives and one or more employers if
retirement benefits were the subject of good faith bargaining between such employee representatives and the employer or employers. 
  

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 ARTICLE XV 
 RESTRICTION ON ASSIGNMENT OR 
 OTHER ALIENATION OF PLAN BENEFITS 
 15.1      General Restrictions Against Alienation. 
 (a)        The interest of any Participant or his or her Beneficiary in the income, benefits,
payments, claims or rights hereunder, or in the Trust Fund, shall not in any event be subject to sale, assignment, hypothecation, or transfer. Each Participant and Beneficiary is prohibited from anticipating, encumbering, assigning, or in any manner
alienating his or her interest under the Trust Fund, and is without power to do so, except as may be permitted in connection with providing security for a loan from the Plan to the Participant pursuant to the provisions of the Plan as it may be
amended from time to time. The interest of any Participant or Beneficiary shall not be liable or subject to his or her debts, liabilities, or obligations, now contracted, or which may hereafter be contracted, and such interest shall be free from all
claims, liabilities, or other legal process now or hereafter incurred or arising. Neither the interest of a Participant or Beneficiary, nor any part thereof, shall be subject to any judgment rendered against any such Participant or Beneficiary.
Notwithstanding the foregoing, a Participant’s or Beneficiary’s interest in the Plan may be subject to the enforcement of a Federal tax levy made pursuant to Code Section 6331 or the collection by the United States on a judgment
resulting from an unpaid tax assessment. 
 (b)        In the event any person
attempts to take any action contrary to this Article XV, such action shall be null and void and of no effect, and the Company, the Committee, the Trustee and all Participants and their Beneficiaries, may disregard such action and are not in any
manner bound thereby, and they, and each of them, shall suffer no liability for any such disregard thereof, and shall be reimbursed on demand out of the Trust Fund for the amount of any loss, cost or expense incurred as a result of disregarding or
of acting in disregard of such action. 
 (c)        The foregoing provisions of this
Section shall be interpreted and applied by the Committee in accordance with the requirements of Code Section 401(a)(13) and Section 206(d) of ERISA as construed and interpreted by authoritative judicial and administrative rulings and
regulations. 
 15.2      Qualified Domestic Relations Orders.  The rules set forth in
Section 15.1 above shall not apply with respect to a “Qualified Domestic Relations Order” as described below. 
 (a)        A “Qualified Domestic Relations Order” is a judgment, decree, or order (including approval of a property settlement agreement) that: 
 (i)        Creates or recognizes the existence of an Alternate Payee’s right to, or assigns
to an Alternate Payee the right to, receive all or a portion of the benefits payable under the Plan with respect to a Participant, 
  

 93 

 (ii)        Relates to the provision of child
support, alimony payments, or marital property rights to a spouse, former spouse, child or other dependent of a Participant, 
 (iii)       Is made pursuant to a State domestic relations law (including a community property law), and 
 (iv)      Clearly specifies: (A) the name and last known mailing address (if any) of the Participant and the name and mailing address of each Alternate Payee covered by the order (if
the Committee does not have reason to know that address independently of the order); (B) the amount or percentage of the Participant’s benefits to be paid to each Alternate Payee, or the manner in which the amount or percentage is to be
determined; (C) the number of payments or period to which the order applies; and (D) each plan to which the order applies. 
 For purposes of this Section 15.2, “Alternate Payee” means any spouse, former spouse, child or other dependent of a Participant who is recognized by a domestic relations order as having a right to
receive all, or a portion of, the benefits payable with respect to the Participant. 
 (b)        A domestic relations order is not a Qualified Domestic Relations Order if it requires: 
 (i)        The Plan to provide any type or form of benefit, or any option, not otherwise provided under the Plan; 
 (ii)       The Plan to provide increased benefits; or 
 (iii)      The payment of benefits to an Alternate Payee that are required to be paid to another Alternate
Payee under a previous Qualified Domestic Relations Order. 
 (c)        A domestic
relations order shall not be considered to fail to satisfy the requirements of paragraph (b)(i) above with respect to any payment made before a Participant has separated from service solely because the order requires that payment of benefits be
made to an Alternate Payee: 
 (i)        On or after the date on which the
Participant attains (or would have first attained) his or her earliest retirement age (as defined in Code Section 414(p)(4)(B)); 
  

 94 

 (ii)        As if the Participant had retired on
the date on which such payment is to begin under such order (but taking into account only the present value of accrued benefits and not taking into account the present value of any subsidy for early retirement benefits); and 
 (iii)       In any form in which such benefits may be paid under the Plan to the Participant (other
than in the form of a joint and survivor annuity with respect to the Alternate Payee and his or her subsequent spouse). 
 Notwithstanding the foregoing, if the Participant dies before his or her earliest retirement age (as defined in Code Section 414(p)(4)(B)), the Alternate Payee is entitled to benefits only if the Qualified Domestic Relations Order
requires survivor benefits to be paid to the Alternate Payee. 
 (d)        To the
extent provided in any Qualified Domestic Relations Order, the former spouse of a Participant shall be treated as a surviving Spouse of the Participant for purposes of applying the rules (relating to minimum survivor annuity requirements) of Code
Sections 401(a)(11) and 417, and any current spouse of the Participant shall not be treated as a spouse of the Participant for such purposes. 
 (e)        In the case of any domestic relations order received by the Plan, the Committee shall promptly notify the Participant and any Alternate Payee named in the order that
an order has been received and shall provide a copy of the Plan’s procedures for determining the qualified status of domestic relations orders. An Alternate Payee may designate a representative for receipt of copies of notices and plan
information that are sent to the Alternate Payee with respect to domestic relations order. Within a reasonable period after the receipt of the order, the Committee shall determine whether the order is a Qualified Domestic Relations Order and shall
notify the Participant and each Alternate Payee of such determination. 
 (f)        The Committee shall establish reasonable procedures to determine the qualified status of domestic relations orders and to administer distributions under Qualified Domestic Relations Orders.
During any period in which the issue of whether a domestic relations order is a Qualified Domestic Relations Order is being determined (by the Committee, by a court of competent jurisdiction, or otherwise), the Committee shall direct the Trustee to
segregate in a separate account in the Plan (or in an escrow account) the amounts which would have been payable to the Alternate Payee during the period if the order had been determined to be a Qualified Domestic Relations Order. If within the
18 Month Period (as defined below), the order (or modification thereof) is determined to be a Qualified Domestic Relations Order, the Committee shall direct the Trustee to pay the segregated amounts (plus any interest thereon) to the person or
persons entitled thereto. However, if within the 18 Month Period (i) it is determined that the order is not a Qualified Domestic Relations Order, or (ii) the issue as to whether the order is a Qualified Domestic Relations Order is not
resolved, then the Committee shall direct the Trustee to pay the segregated amounts (plus any interest thereon) to the person or persons who would have been entitled to the amounts if there had been no order (assuming such 

  

 95 

 
benefits were otherwise payable).   Any determination that an order is a Qualified Domestic Relations Order that is made after the close of the
18 Month Period shall be applied prospectively only. For purposes of this Section 15.2, the “18 Month Period” shall mean the 18 month period beginning with the date on which the first payment would be required to be made
under the domestic relations order. 
  

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 ARTICLE XVI 
 MISCELLANEOUS PROVISIONS 
 16.1      No Right of Employment
Hereunder.  The adoption and maintenance of the Plan and Trust shall not be deemed to constitute a contract of employment or otherwise between the Company and any Employee or Participant, or to be a consideration for, or an inducement
or condition of, any employment. Nothing contained herein shall be deemed to give any Employee the right to be retained in the service of the Company or to interfere with the right of the Company to discharge, with or without cause, any Employee or
Participant at any time, which right is hereby expressly reserved. 
 16.2      Effect of Article
Headings.  Article headings are for convenient reference only and shall not be deemed to be a part of the substance of this instrument or in any way to enlarge or limit the contents of any Article. 
 16.3      Limitation on Company Liability.  Any benefits payable under the Plan shall be paid or provided
for solely from the Plan and the Company assumes no liability or responsibility therefor. 
 16.4      Gender.  Masculine gender shall include the feminine and the singular shall include the plural unless the context clearly indicates otherwise. 
 16.5      Interpretation.  The provisions of the Plan shall in all cases be interpreted in a manner that
is consistent with the Plan satisfying (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. 
 16.6      Withholding For Taxes.  Any
payments from the Trust Fund may be subject to withholding for taxes as may be required by any applicable federal or state law. 
 16.7      California Law Controlling.  All legal questions pertaining to the Plan which are not controlled by ERISA shall be determined in accordance with the laws of the State of California
and all contributions made hereunder shall be deemed to have been made in that State. 
 16.8      Plan and
Trust as One Instrument.  The Plan and the Trust Agreement shall be construed together as one instrument. In the event that any conflict arises between the terms and/or conditions of the Trust Agreement and the Plan, the provisions of
the Plan shall control, except that with respect to the duties and responsibilities of the Trustee, the Trust Agreement shall control. 
 16.9      Invalid Provisions.  If any paragraph, section, sentence, clause or phrase contained in the Plan shall become illegal, null or void or against public policy, for any reason, or shall
be held by any court of competent jurisdiction to be incapable of being construed or limited in a manner to make it enforceable, or is otherwise held by such court to be illegal, null 

  

 97 

 
or void or against public policy, the remaining paragraphs, sections, sentences, clauses or phrases contained in the Plan shall not be affected thereby.

 16.10      Counterparts.  This instrument may be executed in one or more counterparts each
of which shall be legally binding and enforceable. 
  

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 IN WITNESS WHEREOF, Allergan, Inc. hereby executes this instrument, evidencing the terms of the Allergan,
Inc. Savings and Investment Plan as restated this 29th day of January, 2008. 
  

			
	ALLERGAN, INC.
		
	By:	 	/s/ Douglas S. Ingram        
		 	Douglas S. Ingram
		 	 Executive Vice President, Chief Administrative Officer, General Counsel
 and Secretary

  

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 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, 2008. 
 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 Qualification.  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. 

 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, (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, and (iii) 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. 
 2.5          Plan Section 2.38.  For the purpose
of this Appendix A only, “Participant” as defined in Plan Section 2.38 shall not apply and “Participant” or “Puerto Rico-based Participant” shall mean a Puerto Rico-based Employee or former Puerto Rico-based
Employee who has commenced participation in the Plan pursuant to Section 3.1 and who retains rights under the Plan. 
 2.6          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. 
  

 A-2 

 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 4.1(d) shall apply to all Puerto Rico-based Participants except that Puerto Rico-based Participants who make hardship withdrawals pursuant to Plan Section 8.1(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)        Notwithstanding the
provisions of paragraph (e) of Plan Section 4.2, a Puerto Rico-based Participant who has attained age 50 before the close of the Plan Year may elect to contribute a percentage of his or her Compensation to the Plan as
“catch-up” Before Tax Deposits in accordance with, and subject to the limitations of, the PR-Code. Such catch-up Before Tax Deposits shall not be taken into account under paragraph (a) above, Section 4.3 of this Appendix to the
extent permitted under the PR-Code, Plan Section 4.3, Plan Section 13.1 or 

  

 A-3 

 
any other provision of the Plan implementing the contribution limitations of Code Sections 402(g) and 415. 
 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 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. 
  

 A-4 

 (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. 
 (iii)        “Compensation Deferral Contributions” shall mean amounts contributed to
the Plan by a Participant as Before Tax Deposits pursuant to Section 4.1(a) 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. 
  

 A-5 

 (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.

 (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” shall be applied by
substituting the dollar limitation contained in Section 4.2 of this Appendix for the “Before Tax Deposit Limit” 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. 
  

 A-6 

 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 5.6.    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. 
 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. 
  

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 (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 
 (e)        Such other events as the PR-Code, regulations or the Puerto Rico Secretary of the Treasury may allow. 
 Notwithstanding anything in the Plan to the contrary, Puerto Rico-based Participants who make hardship withdrawals pursuant to Plan Section 8.1(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 Account if the total amount of such vested portion does not exceed $1,000 ($5,000 for lump sum distributions made prior to March 28, 2005). 
  

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 8.5        Plan Section 8.11(c).  The
provisions of Plan Section 8.11(c) entitled “Additional Documents” shall be applied by including reference to “Puerto Rico” in each place “State or Federal” appears. 
 8.6        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 XI 
 PLAN ARTICLES XIII THROUGH XV 

 The provisions of Articles XIII through XV of the Plan shall apply to all Puerto Rico-based Employees. 
 PART XII 
 MISCELLANEOUS PROVISIONS 

  

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 The provisions of Article XVI of the Plan shall apply to all Puerto Rico-based Employees except as
follows: 
 12.1        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.

 12.2        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. 
 12.3        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. 
  

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