Document:

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                                                                   Exhibit 10.36

                         TRANSITIONAL SERVICES AGREEMENT

                                 BY AND BETWEEN

                                 ALLERGAN, INC.

                                       AND

                          ADVANCED MEDICAL OPTICS, INC

                            Dated as of June 24, 2002

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                                TABLE OF CONTENTS

ARTICLE 1. DEFINITIONS...............................................1

ARTICLE 2. TRANSITION SERVICE SCHEDULES..............................2

ARTICLE 3. SERVICES..................................................2
     3.1    Services Generally.......................................2
     3.2    Service Boundaries.......................................3
     3.3    Impracticability.........................................3
     3.4    Additional Resources.....................................3

ARTICLE 4. TERM......................................................3

ARTICLE 5. COMPENSATION..............................................3
     5.1    Charges for Services.....................................3
     5.2    Payment Terms............................................4
     5.3    Performance Under Ancillary Agreements...................4
     5.4    Error Correction; True-Ups; Accounting...................4
     5.5    Pricing Adjustments......................................4

ARTICLE 6. GENERAL OBLIGATIONS; STANDARD OF CARE.....................4
     6.1    Performance Metrics: Allergan............................4
     6.2    Performance Metrics: AMO.................................5
     6.3    Disclaimer of Warranties.................................5
     6.4    Transitional Nature of Services; Changes.................5
     6.5    Responsibility for Errors; Delays........................5
     6.6    Good Faith Cooperation; Consents.........................5
     6.7    Alternatives.............................................6

ARTICLE 7. TERMINATION...............................................6
     7.1    Termination..............................................6
     7.2    Survival.................................................6
     7.3    User IDs, Passwords......................................6

ARTICLE 8. RELATIONSHIP BETWEEN THE PARTIES..........................7

ARTICLE 9. SUBCONTRACTORS............................................7

ARTICLE 10. INTELLECTUAL PROPERTY....................................7
    10.1   Allocation of Rights by Ancillary Agreements..............7
    10.2   Existing Ownership Rights Unaffected......................7
    10.3   Cross License to Preexisting Works........................7

ARTICLE 11. NO OBLIGATIONS...........................................8

ARTICLE 12. CONFIDENTIALITY..........................................8

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ARTICLE 13. LIMITATION OF LIABILITY..................................8

ARTICLE 14. DISPUTE RESOLUTION.......................................8

ARTICLE 15. MISCELLANEOUS............................................8
    15.1   Counterparts..............................................8
    15.2   Entire Agreement..........................................8
    15.3   Corporate Power...........................................9
    15.4   Signatures................................................9
    15.5   Governing Law.............................................9
    15.6   Assignability.............................................9
    15.7   Third Party Beneficiaries.................................9
    15.8   Notices...................................................9
    15.9   Severability.............................................10
    15.10  Force Majeure............................................10
    15.11  Headings.................................................11
    15.12  Survival of Covenants....................................11
    15.13  Waivers of Default.......................................11
    15.14  Amendments...............................................11
    15.15  Interpretation...........................................11

Annex A  Form of Transition Service Schedule to Transitional Services Agreement

List of Transition Service Schedules as of the Distribution Date

<TABLE>
<CAPTION>
Transition Service Schedule #                       Functional Area
-----------------------------   --------------------------------------------------------
<S>                             <C>
1A..............................Facilities Sharing Services Allergan to AMO

1B..............................Facilities Sharing Services AMO to Allergan

1C..............................General Administrative Services

2...............................Toxicology and Vivarium Research & Development Services

3...............................Research & Development Support Services

4A..............................Shared Service Centers

4B..............................Treasury - Foreign Currency Option Contracts for the Yen

5...............................Information Systems

6...............................Retail Channel Support & Product Promotion

7...............................World Wide Specifications; World Wide Operations

8...............................Legal

9...............................Allergan EAME Region Research and Development
</TABLE>

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                         TRANSITIONAL SERVICES AGREEMENT

          This TRANSITIONAL SERVICES AGREEMENT is dated as of June 24, 2002,
between ALLERGAN, INC., a Delaware corporation ("Allergan"), and ADVANCED
MEDICAL OPTICS, INC., a Delaware corporation ("AMO").

                                   ARTICLE 1.
                                   DEFINITIONS

          For the purpose of this Agreement, the following capitalized terms
shall have the following meanings. Other capitalized terms defined elsewhere in
this Agreement shall have the respective meanings assigned to them at the
location of their definition. Capitalized terms used in this Agreement without
definition which are defined in the Contribution and Distribution Agreement
shall have the meaning ascribed thereto in the Contribution and Distribution
Agreement.

          "Allergan Group" shall the have the meaning set forth in the
Contribution and Distribution Agreement.

          "AMO Group" shall the have the meaning set forth in the Contribution
and Distribution Agreement.

          "Ancillary Agreements" shall the have the meaning set forth in the
Contribution and Distribution Agreement.

          "Confidential Information" shall have the meaning set forth in the
Contribution and Distribution Agreement.

          "Contribution" shall the have the meaning set forth in the
Contribution and Distribution Agreement.

          "Contribution and Distribution Agreement" shall mean that certain
Contribution and Distribution Agreement between Allergan and AMO.

          "Distribution" shall the have the meaning set forth in the
Contribution and Distribution Agreement.

          "Distribution Date" shall have the meaning set forth in the
Contribution and Distribution Agreement.

          "Impracticable" shall have the meaning set forth in Section 3.3.

          "Person" shall the have the meaning set forth in the Contribution and
Distribution Agreement.

          "Prime Rate" means the rate which The Chase Manhattan Bank (or any
successor thereto or other major money center commercial bank agreed to by the
parties hereto) announces from time to time as its prime lending rate in the
United States, as in effect from time to time.

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          "Service(s)" shall have the meaning set forth in Section 3.1.

          "Service Provider" means Allergan or a member of the Allergan Group
when it is providing a Service to AMO or a member of the AMO Group hereunder in
accordance with a Transition Service Schedule, and AMO or a member of the AMO
Group when it is providing a Service to Allergan or a member of the Allergan
Group hereunder in accordance with a Transition Service Schedule.

          "Service Recipient" means AMO or a member of the AMO Group when it is
receiving a Service from Allergan or a member of the Allergan Group hereunder in
accordance with a Transition Service Schedule, and Allergan or a member of the
Allergan Group when it is receiving a Service from AMO or a member of the AMO
Group hereunder in accordance with a Transition Service Schedule.

          "Subsidiary" shall have the meaning set forth in the Contribution and
Distribution Agreement.

                                   ARTICLE 2.
                          TRANSITION SERVICE SCHEDULES

          This Agreement will govern individual transitional services as
requested by AMO and provided by Allergan, the details of which are set forth in
the Transition Service Schedules attached to and made a part of this Agreement.
This Agreement will also govern individual transitional services as requested by
Allergan and provided by AMO, the details of which are set forth in the
Transition Service Schedules attached to and made a part of this Agreement. Each
Service shall be covered by this Agreement upon execution of a transition
service schedule in the form attached hereto (each transition service schedule,
a "Transition Service Schedule").

          For each Service, the parties shall set forth in a Transition Service
Schedule substantially in the form of Annex A hereto, among other things, (i)
the time period during which the Service will be provided if different from the
term of this Agreement determined pursuant to Article 4 hereof; (ii) a summary
of the Service to be provided; and (iii) the method for determining the charge,
if any, for the Service and any other terms applicable thereto on the Transition
Service Schedule. Obligations regarding each Transition Service Schedule shall
be effective upon the later of execution of this Agreement or of the applicable
Transition Service Schedule. This Agreement and all the Transition Service
Schedules shall be defined as the "Agreement" and incorporated herein wherever
reference to it is made.

                                   ARTICLE 3.
                                    SERVICES

          3.1 Services Generally. Except as otherwise provided herein, for the
term determined pursuant to Article 4 hereof, Allergan shall provide or cause to
be provided to AMO (or AMO shall provide, or cause to be provided to Allergan)
the service(s) described in the Transition Service Schedule(s) attached hereto.
The service(s) described on a single Transition Service Schedule shall be
referred to herein as a "Service." Collectively, the services described on all
the Transition Service Schedules shall be referred to herein as "Services."

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          3.2 Service Boundaries. Except as otherwise provided in a Transition
Service Schedule for a specific service: (i) a Service Provider shall be
required to provide the Services only to the extent and only at the locations
such Services are being provided by the Service Provider for the Service
Recipient immediately prior to the Distribution Date; and (ii) the services will
be available only for purposes of conducting the business of the Service
Recipient substantially in the manner it was conducted prior to the Distribution
Date.

          3.3 Impracticability. A Service Provider shall not be required to
provide any Service to the extent the performance of such Service becomes
"Impracticable" as a result of a cause or causes outside the reasonable control
of the Service Provider including unfeasible technological requirements, or to
the extent the performance of such Services would require the Service Provider
to violate any applicable laws, rules or regulations, would result in the breach
of any software license or other applicable contract

          3.4 Additional Resources. Except as provided in a Transition Service
Schedule for a specific service, in providing the Services, a Service Provider
shall not be obligated to: (i) hire any additional employees; (ii) maintain the
employment of any specific employee; (iii) purchase, lease or license any
additional facilities, equipment or software; or (iv) pay any costs related to
the transfer or conversion of the Service Recipient's data to the Service
Recipient or any alternate supplier of Services.

                                   ARTICLE 4.
                                      TERM

          The term of this Agreement shall commence on the Distribution Date and
shall remain in effect until one (1) year after the Distribution Date (the
"Expiration Date"), unless earlier terminated under Article 7. The parties shall
be deemed to have extended this Agreement with respect to a specific Service if
the Transition Service Schedule for such Service specifies a completion date
beyond the aforementioned Expiration Date. The parties may agree on an earlier
expiration date respecting a specific Service by specifying such date on the
Transition Service Schedule for that Service. Services shall be provided up to
and including the date set forth in the applicable Transition Service Schedule,
subject to earlier termination as provided herein.

                                   ARTICLE 5.
                                  COMPENSATION

          5.1 Charges for Services. The Service Recipient shall pay the Service
Provider the charges, if any, set forth on the Transition Service Schedules for
each of the Services listed therein as adjusted, from time to time, in
accordance with the processes and procedures established under Section 5.4 and
Section 5.5 hereof. Unless specifically indicated otherwise on a Transition
Service Schedule, such fees shall include the direct and indirect costs of
providing the Services and shall be calculated by using the same procedures used
by Allergan prior to the Distribution Date. If there is any inconsistency
between the Transition Service Schedule and this Section 5.1, the terms of the
Transition Service Schedule shall govern. In addition to any fees referenced in
this Transition Service Schedules, the Service Recipient shall pay to the
Service Provider any value added tax or other similar tax associated with the
services,

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if applicable. The parties also intend for charges to be easy to administer and
justify and, therefore, they hereby acknowledge it may be counterproductive to
try to recover every cost, charge or expense, particularly those that are
insignificant or de minimus. The parties shall use good faith efforts to discuss
any situation in which the actual cost for a Service exceeds the charge, if any,
set forth on a Transition Service Schedule for a particular Service; provided,
however, that the incurrence of charges in excess of any such cost on such
Transition Service Schedule shall not justify stopping the provision of, or
payment for, Services under this Agreement.

          5.2 Payment Terms. The Service Provider shall bill the Service
Recipient monthly for all charges pursuant to this Agreement. Such bills shall
be accompanied by reasonable documentation or other reasonable explanation
supporting such charges. The Service Recipient shall pay the Service Provider
for all Services provided hereunder within forty-five (45) days after receipt of
an invoice therefor. Late payments shall bear interest at the lesser of the
Prime Rate plus 2% or the maximum rate allowed by law.

          5.3 Performance Under Ancillary Agreements. Notwithstanding anything
to the contrary contained herein, a Service Recipient shall not be charged under
this Agreement for any obligations that are specifically required to be
performed under the Contribution and Distribution Agreement or any other
Ancillary Agreement and any such other obligations shall be performed and
charged for (if applicable) in accordance with the terms of the Contribution and
Distribution Agreement or such other Ancillary Agreement.

          5.4 Error Correction; True-Ups; Accounting. The parties shall agree to
develop mutually acceptable reasonable processes and procedures for conducting
internal audits and making adjustments to charges as a result of the movement of
employees and functions between parties, the discovery of errors or omissions in
charges, as well as a true-up of amounts owed. In no event shall such processes
and procedures extend beyond two (2) years after completion of a Service.

          5.5 Pricing Adjustments. If in order to comply with any non-U.S. legal
requirement, some of the services provided outside the U.S. need to be performed
on a basis other than cost, adjustments shall be made between the parties to
make the pricing for such services consistent with the intention of this
Agreement.

                                   ARTICLE 6.
                      GENERAL OBLIGATIONS; STANDARD OF CARE

          6.1 Performance Metrics: Allergan. Subject to Section 3.2, Section 3.4
and any other terms and conditions of this Agreement, Allergan shall maintain
sufficient resources to perform its obligations hereunder. Specific performance
metrics for Allergan for a specific Service may be set forth in the
corresponding Transition Service Schedule. Where none is set forth, Allergan
shall use reasonable efforts to provide Services in accordance with the
policies, procedures and practices in effect before the Distribution Date and
shall exercise the same care and skill as Allergan exercises in performing
similar services for itself. In addition, to the extent within the possession
and control of Allergan, Allergan shall provide AMO with information and
documentation sufficient for AMO to perform the Services it is obligated to
provide hereunder as

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they were performed before the Distribution Date and shall make available, as
reasonably requested by AMO, sufficient resources and timely decisions,
approvals and acceptances in order that AMO may accomplish its obligations
hereunder in a timely manner.

          6.2 Performance Metrics: AMO. Subject to Section 3.2, Section 3.4 and
any other terms and conditions of this Agreement, AMO shall maintain sufficient
resources to perform its obligations hereunder. Specific performance metrics for
AMO for a specific Service may be set forth in the corresponding Transition
Service Schedule. Where none is set forth, AMO shall use reasonable efforts to
provide Services in accordance with Allergan's policies, procedures and
practices in effect before the Distribution Date and shall exercise the same
care and skill as AMO exercises in performing similar services for itself. In
addition, to the extent within the possession and control of AMO, AMO shall
provide Allergan with information and documentation sufficient for Allergan to
perform the Services it is obligated to provide hereunder as they were performed
before the Distribution Date and shall make available, as reasonably requested
by Allergan, sufficient resources and timely decisions, approvals and
acceptances in order that Allergan may accomplish its obligations hereunder in a
timely manner.

          6.3 Disclaimer of Warranties. NEITHER ALLERGAN NOR AMO MAKES ANY
WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO THE
IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE) WITH
RESPECT TO THE SERVICES OR OTHER DELIVERABLES PROVIDED BY IT HEREUNDER.

          6.4 Transitional Nature of Services; Changes. The parties acknowledge
the transitional nature of the Services and that a Service Provider may make
changes from time to time in the manner of performing the Services if the
Service Provider is making similar changes in performing similar services for
itself and if the Service Provider furnishes to the Service Recipient sixty (60)
days written notice regarding such changes.

          6.5 Responsibility for Errors; Delays. Except in the case of a Service
Provider's gross negligence or willful misconduct, a Service Provider's sole
responsibility to a Service Recipient:

               (a) for errors or omissions in Services, shall be to furnish
correct information, payment and/or adjustment in the Services, at no additional
cost or expense to the Service Recipient; provided, the Service Recipient must
promptly advise the Service Provider of any such error or omission of which it
becomes aware after having used reasonable efforts to detect any such errors or
omissions in accordance with the standard of care set forth in Section 6.1; and

               (b) for failure to deliver any service because of
Impracticability, shall be to use reasonable efforts, subject to Section 3.3, to
make the Services available and/or to resume performing the Services as promptly
as reasonably practicable.

          6.6 Good Faith Cooperation; Consents. The parties will use good faith
efforts to cooperate with each other in all matters relating to the provision
and receipt of Services. Such cooperation shall include exchanging information,
performing true-ups and adjustments, and

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obtaining all third party consents, licenses, sublicenses or approvals necessary
to permit each party to perform its obligations hereunder (including by way of
example, not by way of limitation, rights to use third party software needed for
the performance of Services). The costs of obtaining such third party consents,
licenses, sublicenses or approvals shall be borne by the Service Recipient. The
parties will maintain in accordance with its standard document retention
procedures, documentation supporting the information relevant to cost
calculations contained in the Transition Service Schedules and cooperate with
each other in making such information available as needed in the event of a tax
audit, whether in the United States or any other country.

          6.7 Alternatives. If a Service Provider reasonably believes it is
unable to provide any service because of a failure to obtain necessary consents,
licenses, sublicenses or approvals pursuant to Section 6.6 or because of
Impracticability, the parties shall cooperate to determine the best alternative
approach. Until such alternative approach is found or the problem otherwise
resolved to the satisfaction of the parties, the Service Provider shall use
reasonable efforts subject to Section 3.3 and Section 3.4, to continue providing
the Service. To the extent an agreed upon alternative approach requires payment
above and beyond that which is included in the Service Provider's charge for the
service in question, the parties shall share equally in making any such payment
unless they otherwise agree in writing.

                                   ARTICLE 7.
                                   TERMINATION

          7.1 Termination. Unless otherwise provided in a particular Service
schedule or unless the actual term of the Services is less than 60 days, a
Service Recipient may terminate this Agreement, either with respect to all or
with respect to any one or more of the Services provided to the Service
Recipient hereunder, for any reason or for no reason, at any time upon sixty
(60) days prior written notice to the Service Provider, unless the specific
Transition Service Schedule requires otherwise. In addition, subject to the
provisions of Article 14 below, either party may terminate this Agreement with
respect to a specific Service if the other party materially breaches a material
provision with regard to that particular Service and does not cure such breach
(or does not take reasonable steps required under the circumstances to cure such
breach going forward) within sixty (60) days after being given notice of the
breach; provided, however, that the non-terminating party may request that the
parties engage in a dispute resolution negotiation as specified in Article 14
below prior to termination for breach.

          7.2 Survival. Notwithstanding the foregoing, in the event of any
termination with respect to one or more, but less than all Services, this
Agreement shall continue in full force and effect with respect to any Services
not terminated.

          7.3 User IDs, Passwords. The parties shall use good faith efforts at
the termination or expiration of this Agreement or any specific Service hereto
to ensure that all applicable user IDs and passwords are cancelled.

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                                   ARTICLE 8.
                        RELATIONSHIP BETWEEN THE PARTIES

          The relationship between the parties established under this Agreement
is that of independent contractors and neither party is an employee, agent,
partner, or joint venturer of or with the other. Each Service Provider will be
solely responsible for any employment-related taxes, insurance premiums or other
employment benefits respecting its personnel's performance of Services under
this Agreement. Each Service Recipient agrees to grant the Service Provider
personnel access to sites, systems and information (subject to the provisions of
confidentiality in Article 12 below) as necessary for the Service Provider to
perform its obligations hereunder. Each Service Provider agrees to cause its
personnel to agree to obey any and all security regulations and other published
policies of the Service Recipient.

                                   ARTICLE 9.
                                 SUBCONTRACTORS

          A Service Provider may engage a "Subcontractor" to perform all or any
portion of the Service Provider's duties under this Agreement, provided that any
such Subcontractor agrees in writing to be bound by confidentiality obligations
at least as protective as the terms of Section 7.08 of the Contribution and
Distribution Agreement regarding confidentiality, and provided further that the
Service Provider remains responsible for the performance of such Subcontractor.
As used in this Agreement, "Subcontractor" will mean any individual,
partnership, corporation, firm, association, unincorporated organization, joint
venture, trust or other entity engaged to perform hereunder.

                                   ARTICLE 10.
                              INTELLECTUAL PROPERTY

          10.1 Allocation of Rights by Ancillary Agreements. This Agreement and
the performance of this Agreement will not affect the ownership of any patent,
trademark or copyright or other intellectual property rights allocated in the
Ancillary Agreements.

          10.2 Existing Ownership Rights Unaffected. Neither party will gain, by
virtue of this Agreement, any rights of ownership of copyrights, patents, trade
secrets, trademarks or any other intellectual property rights owned by the
other.

          10.3 Cross License to Preexisting Works. Allergan grants AMO a
non-exclusive, worldwide, royalty-free license to use, copy, and make derivative
works of, distribute, display, perform and transmit Allergan's pre-existing
copyrighted works or other intellectual property rights solely to the extent
necessary to perform its obligations under this Agreement. AMO grants Allergan a
non-exclusive, worldwide, royalty-free license to use, copy, and make derivative
works of, distribute, display, perform and transmit AMO's pre-existing
copyrighted works or other intellectual property rights solely to the extent
necessary to perform its obligations under this Agreement.

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                                   ARTICLE 11.
                                 NO OBLIGATIONS

          NEITHER PARTY ASSUMES ANY RESPONSIBILITY OR OBLIGATIONS WHATSOEVER,
OTHER THAN THE RESPONSIBILITIES AND OBLIGATIONS EXPRESSLY SET FORTH IN THIS
AGREEMENT (INCLUDING THE EXHIBITS AND SCHEDULES HERETO) OR A SEPARATE WRITTEN
AGREEMENT BETWEEN THE PARTIES.

                                   ARTICLE 12.
                                 CONFIDENTIALITY

          The terms of the Confidentiality provision set forth in Section 7.08
of the Contribution and Distribution Agreement shall apply to any and all
Confidential Information disclosed in the course of the parties' interactions
under this Agreement.

                                   ARTICLE 13.
                             LIMITATION OF LIABILITY

          NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR ANY LOST PROFITS, LOSS
OF DATA, LOSS OF USE, COST OF COVER, BUSINESS INTERRUPTION OR OTHER SPECIAL,
INCIDENTAL, INDIRECT, PUNITIVE OR CONSEQUENTIAL DAMAGES, HOWEVER CAUSED, UNDER
ANY THEORY OF LIABILITY, ARISING FROM THE PERFORMANCE OF, OR RELATING TO, THIS
AGREEMENT.

                                   ARTICLE 14.
                               DISPUTE RESOLUTION

          If a dispute, controversy or claim arises under this Agreement it
shall be settled in accordance with the provisions of Article VIII of the
Contribution and Distribution Agreement.

                                   ARTICLE 15.
                                  MISCELLANEOUS

          15.1 Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more counterparts have been signed by each of
the parties and delivered to the other party.

          15.2 Entire Agreement. This Agreement, the Contribution and
Distribution Agreement, the other Ancillary Agreements, the exhibits, schedules
and appendices hereto and thereto and the specific agreements contemplated
herein or thereby contain the entire agreement between the parties with respect
to the subject matter hereof and supersede all previous agreements,
negotiations, discussions, writings, understandings, commitments and
conversations with respect to such subject matter. No agreements or
understandings exist between the parties other than those set forth or referred
to herein or therein.

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          15.3 Corporate Power. Allergan represents on behalf of itself and each
other member of the Allergan Group, and AMO represents on behalf of itself and
each other member of the AMO Group, as follows:

               (a) each such Person has the requisite corporate or other power
and authority and has taken all corporate or other action necessary in order to
execute, deliver and perform this Agreement and to consummate the transactions
contemplated hereby; and

               (b) this Agreement has been duly executed and delivered by it and
constitutes a valid and binding agreement of it enforceable in accordance with
the terms thereof.

          15.4 Signatures. Each party hereto acknowledges that it and each other
party hereto is executing certain of the Transition Services Schedules by
facsimile, stamp or mechanical signature. Each party hereto expressly adopts and
confirms each such facsimile, stamp or mechanical signature made in its
respective name as if it were a manual signature, agrees that it will not assert
that any such signature is not adequate to bind such party to the same extent as
if it were signed manually and agrees that at the reasonable request of any
other party hereto at any time it will as promptly as reasonably practicable
cause each such Transition Services Schedule to be manually executed (any such
execution to be as of the date of the initial date thereof).

          15.5 Governing Law. This Agreement shall be governed by and construed
and interpreted in accordance with the laws of the State of California
irrespective of the choice of laws principles of the State of California, as to
all matters, including matters of validity, construction, effect,
enforceability, performance and remedies.

          15.6 Assignability. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and thereto, respectively, and their
respective successors and assigns; provided, however, that no party hereto or
thereto may assign its respective rights or delegate its respective obligations
under this Agreement without the express prior written consent of the other
parties hereto or thereto.

          15.7 Third Party Beneficiaries. The provisions of this Agreement are
solely for the benefit of the parties hereto and are not intended to confer upon
any Person, except the parties hereto, any rights or remedies hereunder. There
are no third party beneficiaries of this Agreement, and this Agreement shall not
provide any third Person with any remedy, claim, liability, reimbursement, claim
of action or other right in excess of those existing without reference to this
Agreement.

          15.8 Notices. All notices and other communications hereunder shall be
in writing and shall be deemed duly given (a) on the date of delivery if
delivered personally, (b) on the first business day following the date of
dispatch if delivered by a nationally recognized next-day courier service, (c)
on the fifth business day following the date of mailing if delivered by
registered or certified mail, return receipt requested, postage prepaid or (d)
if sent by facsimile transmission, when transmitted and receipt is confirmed by
telephone. All notices hereunder shall be delivered as follows:

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               If to Allergan, to:

               2525 Dupont Drive
               Irvine, CA  92612
               Fax:  714-246-6987
               Attn: General Counsel

               If to AMO to:

               Prior to September 1, 2002:
               Advanced Medical Optics
               2525 Dupont Drive
               Irvine, CA  92612
               Fax:  714-246-6987
               Attn: General Counsel

               After September 1, 2002:
               1700 St. Andrew Place
               P.O. Box 25162
               Santa Ana, CA  92799-5162
               Fax:  To be provided
               Attn: General Counsel

Any party may, by notice to the other party given in the form specified in this
Section 15.8, change the address to which such notices are to be given.

          15.9 Severability. If any provision of this Agreement or the
application thereof to any Person or circumstance is determined by a court of
competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions hereof or thereof, or the application of such provision to Persons or
circumstances or in jurisdictions other than those as to which it has been held
invalid or unenforceable, shall remain in full force and effect and shall in no
way be affected, impaired or invalidated thereby, so long as the economic or
legal substance of the transactions contemplated hereby or thereby, as the case
may be, is not affected in any manner adverse to any party. Upon such
determination, the parties shall negotiate in good faith in an effort to agree
upon such a suitable and equitable provision to effect the original intent of
the parties.

          15.10 Force Majeure. No party shall be deemed in default of this
Agreement to the extent that any delay or failure in the performance of its
obligations under this Agreement results from any cause beyond its reasonable
control and without its fault or negligence, such as acts of God, acts of civil
or military authority, acts of terrorism, embargoes, epidemics, war, riots,
insurrections, fires, explosions, earthquakes, floods, unusually severe weather
conditions, labor problems or unavailability of parts, or, in the case of
computer systems, any failure in electrical or air conditioning equipment. In
the event of any such excused delay, the time for performance shall be extended
for a period equal to the time lost by reason of the delay.

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          15.11 Headings. The article, section and paragraph headings contained
in this Agreement and in the Ancillary Agreements are for reference purposes
only and shall not affect in any way the meaning or interpretation of this
Agreement or any Ancillary Agreement.

          15.12 Survival of Covenants. Except as expressly set forth in any
Ancillary Agreement, the covenants, representations and warranties contained in
this Agreement, and liability for the breach of any obligations contained herein
or therein, shall survive the Distribution Date and shall remain in full force
and effect.

          15.13 Waivers of Default. Waiver by any party of any default by the
other party of any provision of this Agreement shall not be deemed a waiver by
the waiving party of any subsequent or other default, nor shall it prejudice the
rights of the other party.

          15.14 Amendments. No provisions of this Agreement shall be deemed
waived, amended, supplemented or modified by any party, unless such waiver,
amendment, supplement or modification is in writing and signed by the authorized
representative of the party against whom it is sought to enforce such waiver,
amendment, supplement or modification.

          15.15 Interpretation. Words in the singular shall be held to include
the plural and vice versa and words of one gender shall be held to include the
other genders as the context requires. The terms "hereof," "herein," and
"herewith" and words of similar import shall, unless otherwise stated, be
construed to refer to this Agreement as a whole (including all of the Transition
Services Schedules and appendices hereto) and not to any particular provision of
this Agreement. The word "including" and words of similar import when used in
this Agreement shall mean "including, without limitation," unless the context
otherwise requires or unless otherwise specified. The word "or" shall not be
exclusive.

          IN WITNESS WHEREOF, each of the parties has caused this Agreement to
be executed in duplicate originals by its duly authorized representatives.

ALLERGAN, INC.                           ADVANCED MEDICAL OPTICS, INC.

By:    /s/ David E. I. Pyott             By:    /s/ James V. Mazzo
      --------------------------------         ---------------------------------
Name: David E. I. Pyott                  Name: James V. Mazzo
Its:  Chairman of the Board, President   Its:  President and Chief Executive
          and Chief Executive Officer              Officer

Date:   June 24, 2002                    Date:   June 24, 2002
      --------------------------------         ---------------------------------

                                      11<PAGE>

                                                                   EXHIBIT 10.37

                                     FORM OF

                           EMPLOYEE MATTERS AGREEMENT

                                     BETWEEN

                                 ALLERGAN, INC.

                                       AND

                          ADVANCED MEDICAL OPTICS, INC.

                                 EFFECTIVE AS OF

                                  JUNE 24, 2002

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          PAGE
<S>              <C>                                                                       <C>
ARTICLE I.       DEFINITIONS................................................................1
      1.1        Affiliate..................................................................1
      1.2        Agreement..................................................................1
      1.3        Allergan...................................................................1
      1.4        Allergan 401(k) Plan.......................................................1
      1.5        Allergan Business..........................................................1
      1.6        Allergan Deferred Compensation Plan........................................1
      1.7        Allergan Employee..........................................................1
      1.8        Allergan ESOP..............................................................1
      1.9        Allergan Foreign Plan......................................................1
      1.10       Allergan Group.............................................................2
      1.11       Allergan Incentive Plan....................................................2
      1.12       Allergan Management Bonus Plan.............................................2
      1.13       Allergan Option............................................................2
      1.14       Allergan Pension Plan......................................................2
      1.15       Allergan Plan..............................................................2
      1.16       Allergan Supplemental Benefits Plan........................................2
      1.17       Allergan Supplemental Retirement Plans.....................................2
      1.18       Allergan Welfare Plan......................................................2
      1.19       AMO........................................................................2
      1.20       AMO 401(k) Plan............................................................2
      1.21       AMO Beneficiary............................................................2
      1.22       AMO Bonus Plans............................................................2
      1.23       AMO Business...............................................................2
      1.24       AMO Deferred Compensation Plan.............................................2
      1.25       AMO Employee...............................................................3
      1.26       AMO Group..................................................................3
      1.27       AMO Incentive Plan.........................................................3
      1.28       AMO International Stock Purchase Plan......................................3
      1.29       AMO Plan...................................................................3
      1.30       AMO Pre-Spin Bonus Plans...................................................3
      1.31       AMO Rabbi Trust............................................................3
      1.32       AMO Stock Purchase Plan....................................................3
      1.33       AMO Supplemental Benefits Plan.............................................3
      1.34       AMO Welfare Plan...........................................................3
      1.35       Ancillary Agreements.......................................................3
      1.36       Assets.....................................................................3
      1.37       COBRA......................................................................3
      1.38       Code.......................................................................3
      1.39       Contribution and Distribution Agreement....................................3
      1.40       Distribution...............................................................4
      1.41       Distribution Date..........................................................4
      1.42       DOL........................................................................4
      1.43       ERISA......................................................................4
      1.44       IRS........................................................................4
      1.45       Liabilities................................................................4
      1.46       Material Feature...........................................................4
      1.47       Person.....................................................................4
      1.48       SEC........................................................................4
      1.49       Subsidiary.................................................................4

ARTICLE II.      GENERAL PRINCIPLES.........................................................4
      2.1        Assumption of Liabilities..................................................4
      2.2        Establishment of AMO Plans.................................................5
</TABLE>

                                        ii

<PAGE>

                                TABLE OF CONTENTS
                                   (Continued)

<TABLE>
<CAPTION>
                                                                                          PAGE
<S>              <C>                                                                       <C>
      2.3        AMO under No Obligation to Maintain Plans..................................5
      2.4        Terms of Participation by AMO Employees in AMO Plans.......................6
      2.5        Dispute Resolution.........................................................6
      2.6        Foreign Plans..............................................................6

ARTICLE III.     ALLERGAN 401(K) PLAN.......................................................6
      3.1        Allergan 401(k) Plan.......................................................6

ARTICLE IV.      ALLERGAN PENSION PLAN......................................................7
      4.1        Pension Plan...............................................................7

ARTICLE V.       ALLERGAN EMPLOYEE STOCK OWNERSHIP PLAN.....................................7
      5.1        ESOP.......................................................................7

ARTICLE VI.      ALLERGAN SUPPLEMENTAL RETIREMENT PLANS.....................................8
      6.1        Supplemental Retirement Plans..............................................8

ARTICLE VII.     ALLERGAN HEALTH AND WELFARE PLANS..........................................8
      7.1        Health and Welfare Plans as of the Distribution Date.......................8
      7.2        Health Plans through the Distribution Date.................................9
      7.3        COBRA......................................................................9

ARTICLE VIII.    EQUITY AND OTHER COMPENSATION.............................................10
      8.1        Allergan Bonus Plans......................................................10
      8.2        Deferred Compensation Plan................................................10
      8.3        AMO Incentive Plan........................................................10
      8.4        Allergan Options..........................................................11
      8.5        AMO Stock Purchase Plan and AMO International Stock Purchase Plan.........11

ARTICLE IX.      ADMINISTRATIVE PROVISIONS.................................................11
      9.1        Contributions to Trusts...................................................11
      9.2        Sharing of Participant Information........................................11
      9.3        Beneficiary Designations..................................................12
      9.4        Requests for IRS and DOL Opinions.........................................12
      9.5        Fiduciary Matters.........................................................12
      9.6        Consent of Third Parties..................................................12

ARTICLE X.       EMPLOYMENT-RELATED MATTERS................................................12
      10.1       Employment of Employees with U.S. Work Visas..............................12
      10.2       Confidentiality and Proprietary Information...............................12
      10.3       Personnel Records.........................................................12
      10.4       Medical Records...........................................................12
      10.5       Unemployment Insurance Program............................................12
      10.6       Worker's Compensation Claims..............................................13
      10.7       No Third-Party Beneficiaries..............................................13

ARTICLE XI.      GENERAL PROVISIONS........................................................13
      11.1       Effect if Distribution Does Not Occur.....................................13
      11.2       Relationship of Parties...................................................13
      11.3       Affiliates................................................................13
      11.4       Governing Law.............................................................13
      11.5       Assignment................................................................13
      11.6       Severability..............................................................13
      11.7       Interpretation............................................................13
      11.8       Amendment.................................................................14
      11.9       Termination...............................................................14
      11.10      Conflict..................................................................14
      11.11      Entire Agreement..........................................................14
      11.12      Counterparts..............................................................14
</TABLE>

                                       iii

<PAGE>

<TABLE>
<CAPTION>
SCHEDULES PAGE                                                                            Page
<S>              <C>                                                                       <C>
SCHEDULE 1.25    AMO TRANSFERRED EMPLOYEES.................................................18

SCHEDULE 2.6     FOREIGN PLANS.............................................................55

SCHEDULE 8.4     OPTIONS HELD BY CERTAIN NON-U.S. AMO TRANSFERRED EMPLOYEES................56
</TABLE>

                                       iv

<PAGE>

                           EMPLOYEE MATTERS AGREEMENT

     This EMPLOYEE MATTERS AGREEMENT is entered into on June 24, 2002, between
Allergan, Inc., a Delaware corporation, and Advanced Medical Optics, Inc., a
Delaware corporation. Capitalized terms used herein (other than the formal names
of Allergan Plans (as defined below) and related trusts of Allergan) and not
otherwise defined, shall have the respective meanings assigned to them in
Article I hereof.

     WHEREAS, the Board of Directors of Allergan has determined that it is in
the best interests of Allergan and its shareholders to separate Allergan's
existing businesses into two independent businesses, the Allergan Business (as
defined below) and the AMO Business (as defined below); and

     WHEREAS, in furtherance of the foregoing, Allergan and AMO have agreed to
enter into this Agreement to allocate between them assets, liabilities and
responsibilities with respect to certain employee compensation, benefit plans,
programs and arrangements, and certain employment matters;

     NOW, THEREFORE, in consideration of the foregoing and the covenants and
agreements set forth below, the parties hereto agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

     Wherever used in this Agreement, the following terms shall have the
meanings indicated below, unless a different meaning is plainly required by the
context. The singular shall include the plural, unless the context indicates
otherwise. Headings of sections are used for convenience of reference only, and
in case of conflict, the text of this Agreement, rather than such headings,
shall control:

     1.1 Affiliate. "Affiliate" has the meaning given it in the Contribution and
Distribution Agreement.

     1.2 Agreement. "Agreement" means this Employee Matters Agreement, including
all the Schedules hereto, and all amendments made hereto from time to time.

     1.3 Allergan. "Allergan" means Allergan, Inc., a Delaware corporation. In
all such instances in which Allergan is referenced in this Agreement, it shall
also be deemed to include a reference to each member of the Allergan Group,
unless it specifically provides otherwise; Allergan shall be solely responsible
to AMO for ensuring that each member of the Allergan Group complies with the
applicable terms of this Agreement.

     1.4 Allergan 401(k) Plan. "Allergan 401(k) Plan" means the Allergan, Inc.
Savings and Investment Plan, a qualified profit sharing plan.

     1.5 Allergan Business. "Allergan Business" has the meaning given it in the
Contribution and Distribution Agreement.

     1.6 Allergan Deferred Compensation Plan. "Allergan Deferred Compensation
Plan" means the Allergan, Inc. Executive Deferred Compensation Plan.

     1.7 Allergan Employee. "Allergan Employee" means an individual who, as of
the Distribution Date: (a) is actively employed by, or on an approved leave of
absence from, the Allergan Group, and (b) is not an AMO Employee.

     1.8 Allergan ESOP. "Allergan ESOP" means the Allergan, Inc. Employee Stock
Ownership Plan, a qualified employee stock ownership plan.

     1.9 Allergan Foreign Plan. "Allergan Foreign Plan" means an Allergan Plan
maintained by the Allergan Group for the benefit of its employees outside the
U.S. and Puerto Rico.

                                       1

<PAGE>

     1.10 Allergan Group. "Allergan Group" has the meaning given it in the
Contribution and Distribution Agreement; provided, however, that, prior to the
Distribution Date, the Allergan Group shall include the AMO Group and, effective
as of the Distribution Date, the Allergan Group shall exclude the AMO Group.

     1.11 Allergan Incentive Plan. "Allergan Incentive Plan" means the Allergan,
Inc. 1989 Incentive Compensation Plan. For the avoidance of doubt, Allergan
Incentive Plan shall not mean the Allergan, Inc. 2001 Premium Priced Stock
Option Plan.

     1.12 Allergan Management Bonus Plan. "Allergan Management Bonus Plan" means
the 2002 Allergan, Inc. Management Bonus Plan.

     1.13 Allergan Option. "Allergan Option" means an option to purchase
Allergan common stock, $0.01 par value, granted pursuant to the Allergan
Incentive Plan.

     1.14 Allergan Pension Plan. "Allergan Pension Plan" means the Allergan,
Inc. Pension Plan, a qualified pension plan.

     1.15 Allergan Plan. "Allergan Plan" means any plan, policy, program,
payroll practice, arrangement, contract, trust, insurance policy, or any
agreement or funding vehicle providing compensation or benefits to employees,
former employees, directors or consultants of Allergan.

     1.16 Allergan Supplemental Benefits Plan. "Allergan Supplemental Benefits
Plan" means the Allergan Supplemental Benefits Plan and the health and welfare
programs established thereunder for the benefit of the eligible employees of
Allergan and its U.S. and Puerto Rican Subsidiaries.

     1.17 Allergan Supplemental Retirement Plans. "Allergan Supplemental
Retirement Plans" shall mean the Allergan, Inc. Supplemental Retirement Income
Plan and the Allergan, Inc. Supplemental Executive Benefit Plan.

     1.18 Allergan Welfare Plan. "Allergan Welfare Plan" means the Allergan
Welfare Benefits Plan and the health and welfare programs established thereunder
for the benefit of the eligible employees of Allergan and its U.S. and Puerto
Rican Subsidiaries.

     1.19 AMO. "AMO" means Advanced Medical Optics, Inc., a Delaware
corporation. In all such instances in which AMO is referred to in this
Agreement, it shall also be deemed to include a reference to each member of the
AMO Group, unless it specifically provides otherwise; AMO shall be solely
responsible to Allergan for ensuring that each member of the AMO Group complies
with the applicable terms of this Agreement.

     1.20 AMO 401(k) Plan. "AMO 401(k) Plan" means the qualified profit sharing
plan to be established by AMO pursuant to Section 2.2 and Article III.

     1.21 AMO Beneficiary. "AMO Beneficiary" means a covered spouse or
dependent, or qualified beneficiary (as such term is defined under COBRA), in
each case, of an AMO Employee with respect to that AMO Employee's benefit under
the applicable Allergan Plan.

     1.22 AMO Bonus Plans. "AMO Bonus Plans" means the bonus plans to be
established by AMO pursuant to Sections 2.2 and 8.1.

     1.23 AMO Business. "AMO Business" has the meaning given it in the
Contribution and Distribution Agreement.

     1.24 AMO Deferred Compensation Plan. "AMO Deferred Compensation Plan" means
the deferred compensation plan to be established by AMO pursuant to Sections 2.2
and 8.2.

                                       2

<PAGE>

     1.25 AMO Employee. "AMO Employee" means any individual who, as of the
Distribution Date, is: (a) an individual who prior to the Distribution Date was
actively employed by, or on an approved leave of absence from, the Allergan
Group, and (b) whose employment is transferred from the Allergan Group to the
AMO Group on or before the Distribution Date. Schedule 1.25 sets forth the names
of the AMO Employees. Allergan shall prepare a preliminary Schedule 1.25, which
shall be modified by Allergan to add or delete names, as necessary, before the
Distribution Date.

     1.26 AMO Group. "AMO Group" has the meaning given it in the Contribution
and Distribution Agreement.

     1.27 AMO Incentive Plan. "AMO Incentive Plan" means the stock plan to be
established by AMO pursuant to Sections 2.2 and 8.3.

     1.28 AMO International Stock Purchase Plan. "AMO International Stock
Purchase Plan" means the employee stock purchase plan to be established by AMO
for the employees of its non-U.S. Subsidiaries pursuant to Section 2.2 and
Subsection 8.5(b).

     1.29 AMO Plan. "Plan" means any plan, policy, program, payroll practice,
arrangement, contract, trust, insurance policy, or any agreement or funding
vehicle providing compensation or benefits to employees, former employees,
directors or consultants of AMO.

     1.30 AMO Pre-Spin Bonus Plans. "AMO Pre-Spin Bonus Plans" means the 2002
AMO Pre-Spin Management Bonus Plan and any other Allergan bonus plans in which
AMO Employees participated before the Distribution Date.

     1.31 AMO Rabbi Trust. "AMO Rabbi Trust" shall mean the grantor trust to be
established by AMO pursuant to Section 8.2 for holding assets under the AMO
Deferred Compensation Plan.

     1.32 AMO Stock Purchase Plan. "AMO Stock Purchase Plan," means the
"employee stock purchase plan" (within the meaning of Section 423(b) of the
Code) to be established by AMO for the benefit of the eligible employees of AMO
and its U.S. Subsidiaries pursuant to Section 2.2 and Subsection 8.5(a).

     1.33 AMO Supplemental Benefits Plan. "AMO Supplemental Benefits Plan" means
the supplemental benefits plan, and the health and welfare programs under such
supplemental benefits plan, to be established by AMO pursuant to Section 2.2 and
Article VII for the benefit of the eligible employees of AMO and its U.S. and
Puerto Rican Subsidiaries.

     1.34 AMO Welfare Plan. "AMO Welfare Plan" means the welfare benefits plan,
and the health and welfare programs under such welfare plan, to be established
by AMO for the benefit of the eligible employees of AMO and its U.S. and Puerto
Rican Subsidiaries pursuant to Section 2.2 and Article VII.

     1.35 Ancillary Agreements. "Ancillary Agreements" has the meaning given it
in the Contribution and Distribution Agreement.

     1.36 Assets. "Assets" has the meaning given it in the Contribution and
Distribution Agreement.

     1.37 COBRA. "COBRA" means the continuation coverage requirements for "group
health plans" under Title X of the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended from time to time, and as codified in Code Section 4980B
and ERISA Sections 601 through 608.

     1.38 Code. "Code" means the Internal Revenue Code of 1986, as amended from
time to time.

     1.39 Contribution and Distribution Agreement. "Contribution and
Distribution Agreement" means the Contribution and Distribution Agreement of
even date herwith of which this is Exhibit C thereto.

                                       3

<PAGE>

     1.40 Distribution. "Distribution" means Allergan's pro rata distribution to
the holders of its common stock, $0.01 par value, of all the shares of AMO
common stock owned by Allergan.

     1.41 Distribution Date. "Distribution Date" means the date that the
Distribution is effective.

     1.42 DOL. "DOL" means the United States Department of Labor.

     1.43 ERISA. "ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time.

     1.44 IRS. "IRS" means the United States Internal Revenue Service.

     1.45 Liabilities. "Liabilities" has the meaning given it in the
Contribution and Distribution Agreement.

     1.46 Material Feature. "Material Feature" means any feature of a Plan that
could reasonably be expected to be of material importance, in the aggregate, to
the sponsoring employer or the participants (or their dependents or
beneficiaries) of that Plan, which could include, depending on the type and
purpose of the particular Plan, the class or classes of employees eligible to
participate in such Plan, the nature, type, form, source, and level of benefits
provided under such Plan, the amount or level of contributions, if any, required
to be made by participants (or their dependents or beneficiaries) to such Plan,
and the costs and expenses incurred by the sponsoring employer for implementing
and/or maintaining such Plan.

     1.47 Person. "Person" has the meaning given it in the Contribution and
Distribution Agreement.

     1.48 SEC. "SEC" means the United States Securities and Exchange Commission.

     1.49 Subsidiary. "Subsidiary" has the meaning given it in the Contribution
and Distribution Agreement.

                                   ARTICLE II
                               GENERAL PRINCIPLES

     2.1  Assumption of Liabilities.

          (a) AMO Liabilities. Effective as of Distribution Date, and except as
otherwise specifically provided in this Agreement, AMO hereby assumes and agrees
to pay, perform, fulfill and discharge: (i) all of the Liabilities to, or
relating to, AMO Employees relating to, arising out of, or resulting from actual
or alleged employment with the AMO Group after the Distribution Date (including
all of the Liabilities relating to, arising out of, or resulting from the AMO
Plans) and (ii) all Liabilities relating to, arising out of, or resulting from
obligations, liabilities and responsibilities expressly assumed by the AMO
Group, or an AMO Plan, pursuant to this Agreement.

          (b) Allergan Liabilities. Effective as of the Distribution Date, and
except as otherwise specifically provided in this Agreement, Allergan shall
retain and hereby agrees to pay, perform, fulfill and discharge: (i) all of the
Liabilities to, or relating to, Allergan Employees relating to, arising out of,
or resulting from actual or alleged employment with the Allergan Group after the
Distribution Date (including all of the Liabilities relating to, arising out of,
or resulting from the Allergan Plans), (ii) all obligations to all Allergan
employees (including AMO Employees) base salaries, wages and commissions (but,
for the avoidance of doubt, not including any bonuses except as expressly
provided in this Agreement) that are accrued in the ordinary course of business
prior to the Distribution Date (unless, with respect to AMO Employees, Allergan
transfers to AMO cash equivalent to such accruals upon the Distribution) and
(iii) all Liabilities relating to, arising out of, or resulting from
obligations, liabilities and responsibilities expressly retained by the Allergan
Group, or an Allergan Plan, pursuant to this Agreement.

          (c) Employee Actions. Except as otherwise provided in this Agreement,
any claim or lawsuit brought by a current or former employee of an AMO Group
member or an Allergan Group member, whether

                                       4

<PAGE>

brought on, before or after the Distribution Date, and which has not been
dismissed, waived, settled or otherwise finally adjudicated as of the
Distribution Date, against an AMO Group member or Allergan Group member and
relating to alleged wrongful acts shall be treated as follows.

               (i) To the extent such claim or lawsuit relates to, arises out
of, or results from events, facts, conduct or circumstances occurring on or
prior to the Distribution Date, such liability shall be a "Shared Contingent
Liability" within the meaning of Subsection 5.01(l) and shall be subject to
Section 5.04 of the Contribution and Distribution Agreement.

               (ii) To the extent such claim or lawsuit relates to, arises out
of, or results from events, facts, conduct or circumstances occurring after the
Distribution Date: (1) Liability arising from events, facts, conduct or
circumstances related to, or arising out of, actual or alleged employment with
the Allergan Group shall be an "Allergan Exclusive Contingent Liability" within
the meaning of Subsection 5.01(e) of the Contribution and Distribution Agreement
and shall be subject to Section 5.03 of the Contribution and Distribution
Agreement and (2) Liability arising from events, facts, conduct or circumstances
related to, or arising out of, actual or alleged employment with the AMO Group
shall be an "AMO Exclusive Contingent Liability" within the meaning of
Subsection 5.01(i) of the Contribution and Distribution Agreement and shall be
subject to Section 5.03 of the Contribution and Distribution Agreement.
Contingent liabilities relating to, arising out of, or resulting from an actual
or alleged breach of contract shall be treated as arising at the time of the
occurrence of the events, facts, conduct or circumstances resulting in the
actual or alleged breach.

          (d) Employee-Related Liabilities of Foreign AMO Entities. In the event
that the Allergan Group establishes one or more foreign corporations or other
entities prior to the Distribution Date in connection with or as part of, the
contribution of the AMO Business to the AMO Group (a "Pre-Distribution
Restructuring"), Allergan and AMO agree that all Liabilities (including
Contingent Liabilities) relating to Allergan Employees and AMO Employees that
are paid by any such foreign corporation or entity after the Pre-Distribution
Restructuring and prior to the Distribution Date, shall be allocated among
Allergan and AMO in the manner in which such Liabilities (and Contingent
Liabilities) would have been allocated in accordance with this Section 2.1,
assuming the Pre-Distribution Restructuring occurred on the Distribution Date.
Effective as of the Distribution Date (or such other date as Allergan and AMO
may mutually agree), Allergan shall reimburse AMO, or such foreign corporation
or entity, for any such Liabilities paid by such foreign corporation or entity
properly allocated to Allergan, and AMO shall reimburse Allergan for any such
Liabilities paid by Allergan properly allocated to AMO, or such foreign
corporation or entity.

     2.2 Establishment of AMO Plans. Prior to the Distribution Date, AMO shall
adopt the following employee benefit plans: (a) the AMO Welfare Plan, (b) the
AMO Supplemental Benefits Plan, (c) the AMO 401(k) Plan, (d) the AMO Incentive
Compensation Plan, (e) the AMO Deferred Compensation Plan, (f) the AMO Bonus
Plans, (g) the AMO Stock Purchase Plan and (h) the AMO International Stock
Purchase Plan. Except as otherwise provided herein, each of the foregoing AMO
Plans (except for the AMO Stock Purchase Plan, the AMO International Stock
Purchase Plan and the AMO Deferred Compensation Plan), as in effect as of the
Distribution Date (or such other date(s) as Allergan and AMO may mutually
agree), shall be comparable in the aggregate in all Material Features to the
corresponding Allergan Plan as in effect on the Distribution Date.
Notwithstanding the foregoing, Allergan and AMO agree that the costs and
expenses that would be incurred by AMO in establishing and maintaining a defined
benefit "pension plan" (within the meaning of Section 3(2) of ERISA) or a
retiree medical program, make it financially impracticable for AMO to establish
such plans. As specified in this Agreement or as otherwise mutually agreed upon
by Allergan and AMO from time to time, Allergan shall, or shall cause each
Allergan Plan to, transfer to AMO or the relevant AMO Plan, amounts equal to
trust assets, insurance reserves, and other related assets of each Allergan Plan
relating to the liabilities of such Allergan Plan assumed by AMO or such AMO
Plan. As specified in this Agreement or as otherwise mutually agreed upon by
Allergan and AMO from time to time, AMO shall, or shall cause the relevant AMO
Plan to, assume the liabilities of the corresponding Allergan Plan with respect
to all benefits accrued under such Allergan Plan prior to the Distribution Date
by AMO Employees.

     2.3 AMO under No Obligation to Maintain Plans. Except as specified
otherwise in this Agreement, nothing in this Agreement shall preclude AMO, at
any time after the Distribution Date, from amending, merging, modifying,
terminating, eliminating, reducing, or otherwise altering in any respect any AMO
Plan, any benefit under

                                       5

<PAGE>

any AMO Plan or any trust, insurance policy or funding vehicle related to any
AMO Plans, or any employment or other service arrangement with AMO Employees or
vendors (to the extent permitted by law).

     2.4 Terms of Participation by AMO Employees in AMO Plans.

          (a) Non-Duplication of Benefits. Except as specified otherwise in this
Agreement, as of the Distribution Date, or other later date that applies to the
particular AMO Plan established thereafter, the AMO Plans shall be, with respect
to AMO Employees and AMO Beneficiaries, in all respects the successors in
interest to, and shall not provide benefits that duplicate benefits provided by,
the corresponding Allergan Plans. Allergan and AMO shall agree on methods and
procedures, including amending the respective Plan documents, to prevent AMO
Employees and AMO Beneficiaries from receiving duplicate benefits from the
Allergan Plans and the AMO Plans.

          (b) Service and Other Credit. Except as specified otherwise in this
Agreement, with respect to AMO Employees, each AMO Plan shall provide that all
service (as reflected in Allergan's human resources records), compensation and
all other benefit-affecting credits that, as of the Distribution Date, were
recognized for purposes of service or other credit under the corresponding
Allergan Plan shall, as of the Distribution Date, receive full recognition and
credit and be taken into account under such AMO Plan to the same extent as if
such items occurred under such AMO Plan, except to the extent that duplication
of benefits would result. The service crediting provisions shall be subject to
any respectively applicable service bridging, break in service, employment date,
eligibility date or similar rules under the Allergan Plans and the AMO Plans.

          (c) Assumption of Liabilities. Except as specified otherwise in this
Agreement, the provisions of this Agreement for the transfer of assets relating
to Allergan Plans to AMO and/or the appropriate AMO Plans are based upon the
understanding of the parties that AMO and/or the appropriate AMO Plan will
assume all liabilities of the corresponding Allergan Plan to or relating to AMO
Employees and AMO Beneficiaries, as provided for herein. If any such liabilities
are not effectively assumed by AMO and/or the appropriate AMO Plan, then the
amount of transferred assets shall be recomputed accordingly, taking into
account the retention of such liabilities by such Allergan Plan, and assets
shall be transferred from AMO and/or the appropriate AMO Plan to Allergan and/or
the appropriate Allergan Plan so as to place Allergan and/or the appropriate
Allergan Plan and AMO and/or the appropriate AMO Plan in the position it would
have been in had the initial asset transfer been made in accordance with such
recomputed amount of assets.

     2.5 Dispute Resolution. Any dispute, controversy or claim between or among
Allergan and AMO with respect to the matters covered by this Agreement shall be
resolved in accordance with Section 8.02 of the Contribution and Distribution
Agreement.

     2.6 Foreign Plans. AMO and Allergan each intend that the matters, issues or
liabilities relating to, arising out of, or resulting from the Allergan Foreign
Plans and non-U.S. related employment and employee benefit matters be resolved
in a manner that is in compliance with the requirements of applicable local law
and, to the extent permitted by applicable local law, in a manner consistent
with comparable U.S. matters, issues or liabilities as reflected in this
Agreement. Without in any way limiting the general principle set forth in the
preceding sentence, Schedule 2.6 sets forth a general summary of the manner in
which certain Allergan Foreign Plans shall be resolved, effective as of the
Distribution Date (or such other date(s) as Allergan and AMO may mutually agree)
consistent with the provisions of this Section 2.6 or as permitted under
applicable local law.

                                   ARTICLE III
                              ALLERGAN 401(K) PLAN

     3.1 Allergan 401(k) Plan. Allergan and AMO shall each take actions or cause
actions to be taken as necessary to accomplish the following with respect to the
Allergan 401(k) Plan.

          (a) Spinoff of Assets and Liabilities. Effective as of the
Distribution Date: (i) AMO Employees shall cease to be eligible to make
contributions to, or receive allocations under, the Allergan 401(k) Plan and
(ii) Allergan and AMO shall cause the assets and liabilities attributable to the
accounts of AMO Employees in the Allergan 401(k) Plan that are held by its
related trust to be "spun off" in accordance with Section 414(l) of the

                                       6

<PAGE>

Code, Treasury Regulation Section 1.414(l)-1, and Section 208 of ERISA, to
establish the AMO 401(k) Plan. Such assets of the Allergan 401(k) Plan shall be
transferred in-kind to the trust established under the AMO 401(k) Plan as soon
as administratively practicable. The AMO 401(k) Plan is intended to be a
tax-qualified 401(k) profit sharing plan under the Code. AMO shall adopt the AMO
401(k) Plan, which shall be effective as of the Distribution Date, and may amend
the AMO 401(k) Plan on or after the Distribution Date in such manner as AMO
determines appropriate, provided, however, that no such amendment shall cause
the AMO 401(k) Plan to fail to be tax-qualified as of the Distribution Date.
Effective as of the Distribution Date (or such other date as Allergan and AMO
may mutually agree), AMO shall use its commercially reasonable best efforts to
enter into agreements satisfactory to AMO to accomplish such spinoff, the
maintenance of the necessary participant records, the appointment of an initial
trustee under the AMO 401(k) Plan, and the engagement of an initial record
keeper under the AMO 401(k) Plan. AMO and Allergan each agree to use their
commercially reasonable best efforts to accomplish this 401(k) Plan and related
trust spinoff.

          (b) Stock Considerations. As a result of the Distribution, and to the
extent that immediately prior to the spinoff of the AMO 401(k) Plan, the
Allergan 401(k) Plan continues to consist of Allergan employer securities, the
resulting Allergan 401(k) Plan and AMO 401(k) Plan shall each hold, in part,
Allergan and AMO securities. AMO and Allergan each agree to use their
commercially reasonable best efforts to ensure that their respective Allergan
and AMO securities funds, and underlying securities held in each such fund, are
maintained in compliance with all requirements of applicable law.

          (c) No Distribution to AMO Employees. Allergan and AMO each agree to
take action or cause action to be taken to ensure that no distribution of
account balances from the Allergan 401(k) Plan or AMO 401(k) Plan are made to
any AMO Employee on account of the transfer of employment to the AMO Group, or
the AMO Group ceasing to be an Affiliate of the Allergan Group as of the
Distribution Date.

                                   ARTICLE IV
                              ALLERGAN PENSION PLAN

     4.1 Pension Plan. Allergan and AMO shall each take actions or cause actions
to be taken as necessary to accomplish the following with respect to the
Allergan Pension Plan.

          (a) Effective as of the Distribution Date, AMO Employees shall cease
to accrue benefits under the Allergan Pension Plan. The Allergan Pension Plan
shall retain liability for all benefits accrued before the Distribution Date by
AMO Employees under the Allergan Pension Plan. Allergan shall take action or
cause action to be taken to ensure that all AMO Employees have a fully vested
interest in their benefits accrued under the Allergan Pension Plan as of the
Distribution Date.

          (b) Allergan shall take action or cause action to be taken to ensure
that effective as of the Distribution Date, all AMO Employees will be eligible
for distribution of their accrued benefits from the Allergan Pension Plan in
accordance with the terms of the Allergan Pension Plan. AMO Employees shall be
eligible for such distribution in the same manner as if they terminated
employment as of the Distribution Date.

                                    ARTICLE V
                     ALLERGAN EMPLOYEE STOCK OWNERSHIP PLAN

     5.1 ESOP. Allergan and AMO shall each take actions or cause actions to be
taken as necessary to accomplish the following with respect to the Allergan
ESOP.

          (a) Effective as of the Distribution Date, AMO Employees shall cease
to be eligible to receive allocations under the Allergan ESOP, including
allocation of unallocated assets in the event of the termination of the Allergan
ESOP.

          (b) Effective as of the Distribution Date, Allergan shall take action
or cause action to be taken to transfer the assets and liabilities attributable
to the accounts of the AMO Employees under the Allergan ESOP that are held by
its related trust to the AMO 401(k) Plan and its related trust in accordance
with Section 414(l)

                                       7

<PAGE>

of the Code, Treasury Regulation Section 1.414(l)-1, and Section 208 of ERISA.
Such assets of the Allergan ESOP shall be transferred in-kind to the trust
established under the AMO 401(k) Plan. AMO shall take action or cause action to
be taken to cause the AMO 401(k) Plan to assume and be solely responsible for
all liabilities relating to, arising out of, or resulting from AMO Employees
under the Allergan ESOP.

          (c) Allergan and AMO each agree to take action or cause action to be
taken to ensure that no distribution of account balances from the Allergan ESOP
or the AMO 401(k) Plan are made to any AMO Employee with respect to AMO
Employees' accounts under the Allergan ESOP on account of the transfer of
employment to the AMO Group, or the AMO Group ceasing to be an Affiliate of the
Allergan Group as of the Distribution Date.

                                   ARTICLE VI
                     ALLERGAN SUPPLEMENTAL RETIREMENT PLANS

     6.1 Supplemental Retirement Plans. Allergan and AMO shall each take actions
or cause actions to be taken as necessary to accomplish the following with
respect to the Allergan Supplemental Retirement Plans.

          (a) Effective as of the Distribution Date, AMO Employees shall cease
to accrue benefits under each Allergan Supplemental Retirement Plan. The
Allergan Supplemental Retirement Plans shall retain liability for all benefits
accrued before the Distribution Date by AMO Employees under the Allergan
Supplemental Retirement Plans. Allergan shall take action or cause action to be
taken to ensure that all AMO Employees have a fully vested interest in their
benefits accrued under the Allergan Supplemental Retirement Plans as of the
Distribution Date.

          (b) Allergan shall take action or cause action to be taken to ensure
that effective as of the Distribution Date, all AMO Employees will be eligible
for distribution of their accrued benefits from the Allergan Supplemental
Retirement Plans in accordance with the terms of the respective Allergan
Supplemental Retirement Plan. AMO Employees shall be eligible for such
distributions in the same manner as if they terminated employment as of the
Distribution Date.

                                  ARTICLE VII
                        ALLERGAN HEALTH AND WELFARE PLANS

     7.1 Health and Welfare Plans as of the Distribution Date. Allergan and AMO
shall each take actions or cause actions to be taken as necessary to accomplish
the following with respect to the Allergan Welfare Plan and the Allergan
Supplemental Benefits Plan.

          (a) Allergan Health and Welfare Plans. Effective as of the
Distribution Date (or such other date(s) as Allergan and AMO may mutually
agree), AMO Employees shall cease to be eligible to participate in the Allergan
Welfare Plan and the Allergan Supplemental Benefits Plan. AMO shall adopt the
AMO Welfare Plan and the AMO Supplemental Benefits Plan, which AMO Plans will be
effective as of the Distribution Date. AMO shall be solely responsible for the
administration of the AMO Welfare Plan and the AMO Supplemental Benefits Plan,
including the payment of all employer-related costs in establishing and
maintaining the AMO Welfare Plan and the AMO Supplemental Benefits Plan, and for
the collection and remittance of employee premiums. AMO shall bear liability
with respect to the AMO Welfare Plan and the AMO Supplemental Benefits Plan.

          (b) Transfer of FSA accounts. The AMO Welfare Plan shall include a
"cafeteria plan" feature intended to satisfy Section 125 of the Code and the
regulations thereunder. Effective as of the Distribution Date (or such other
date as Allergan and AMO may mutually agree) Allergan and AMO shall cause the
liabilities attributable to the accounts of AMO Employees in the Allergan Health
Care Flexible Spending Account Program and the Allergan Dependent Care Flexible
Spending Account Program (together, the "FSA Programs") maintained under the
Allergan Welfare Plan to be assumed by the AMO Welfare Plan. The AMO Welfare
Plan (1) shall assume liability for all claims with respect to AMO Employees
submitted on or after the Distribution Date, including claims incurred but not
reported before the Distribution Date; (2) shall assume liability for all claims
with respect to AMO Employees submitted before the Distribution Date but not
paid by Allergan as of the Distribution Date; and (3) will collect and retain
all employee contributions made after the Distribution Date. Within 30 days
after the Distribution Date, Allergan will calculate the following amounts and
submit to AMO a report, with

                                       8

<PAGE>

appropriate back-up documentation, of: (i) the aggregate amount withheld by
Allergan for AMO Employees in the FSA Programs between January 1, 2002 and the
Distribution Date (the "Withheld Amount"), and (ii) the aggregate amount of
payments made by Allergan for AMO Employees out of the FSA Programs between
January 1, 2002 and the Distribution Date (the "Paid Amount"). If the Withheld
Amount exceeds the Paid Amount, Allergan will also include with the report
payment to AMO in the amount of the difference between the Withheld Amount and
the Paid Amount. If the Paid Amount exceeds the Withheld Amount, AMO will pay to
Allergan the difference between the Paid Amount and the Withheld Amount within
30 days thereafter.

          (c) Pending Treatments. Notwithstanding Subsection 7.1(a) above, all
treatments which have been pre-certified for or are being provided to an AMO
Transferred Employee or AMO Beneficiary as of the Distribution Date shall be
provided without interruption under the appropriate Allergan Plan (to the extent
such continued treatment is not provided under an AMO Plan as of the
Distribution Date) until such treatment is concluded or discontinued pursuant to
applicable Plan rules and limitations, but AMO shall continue to be responsible
for all liabilities relating to, arising out of, or resulting from such on-going
treatments as of the Distribution Date.

          (d) Retiree Medical. Notwithstanding Subsection 7.1(a) above, Allergan
shall cause, or shall cause action to be taken, to ensure that AMO Employees,
who as of the Distribution Date otherwise meet the eligibility requirements of
the Allergan Retiree Medical Program under the Allergan Welfare Plan but have
not yet retired, remain eligible to participate in the Allergan Retiree Medical
Program after the Distribution Date, for so long as Allergan maintains the
program for its own employees. The Allergan Welfare Plan shall retain liability
with respect to such AMO Employees.

          (e) Continuance of Elections, Co-Payments and Maximum Benefits.

               (i) As of the Distribution Date and for the remainder of the plan
year in which the Distribution Date occurs (or such other period as Allergan and
AMO may mutually agree), AMO shall make its commercially reasonable best efforts
to cause the AMO Welfare Plan and the AMO Supplemental Benefits Plan to
recognize and maintain all coverage and contribution elections made by AMO
Employees under the Allergan Welfare Plan and the Allergan Supplemental Benefits
Plan and apply such elections under the AMO Welfare Plan and the AMO
Supplemental Benefits Plan for the remainder of the period or periods for which
such elections are by their terms applicable. The transfer of employment of the
AMO Employees from Allergan to AMO at any time upon or before the Distribution
Date shall neither constitute nor be treated as a "status change" or termination
of employment under the Allergan Welfare Plan and the Allergan Supplemental
Benefits Plan or the AMO Welfare Plan and the AMO Supplemental Benefits Plan.

               (ii) On and after the Distribution Date, AMO shall cause the AMO
Welfare Plan and the AMO Supplemental Benefits Plan to recognize and give credit
for (A) all amounts applied to deductibles, out-of-pocket maximums, co-payments
and other applicable benefit coverage limits with respect to which such expenses
have been incurred by AMO Employees under the Allergan Welfare Plan and the
Allergan Supplemental Benefits Plan for the remainder of the calendar year in
which the Distribution Date occurs, and (B) all benefits paid to AMO Employees
under the Allergan Welfare Plan and the Allergan Supplemental Benefits Plan for
purposes of determining when such persons have reached their lifetime maximum
benefits under the AMO Welfare Plan and the AMO Supplemental Benefits Plan.

     7.2 Health Plans through the Distribution Date. Except as provided in
Subsection 7.1(b) of this Agreement, Allergan shall retain financial and
administrative liability and all related obligations and responsibilities for
all claims incurred but not reported by AMO Employees and AMO Beneficiaries
before the Distribution Date (or such other date(s) as Allergan and AMO may
mutually agree) under the Allergan Welfare Plan, including any claims that were
administered by Allergan as of, on, or after the Distribution Date (or such
other date(s) as Allergan and AMO may mutually agree).

     7.3 COBRA. Effective as of the Distribution Date (or such other date as
Allergan and AMO may mutually agree), and to the extent otherwise permitted
under applicable law, AMO shall assume, or shall cause the AMO Welfare Plan and
AMO Supplemental Benefits Plan to assume, responsibility for compliance with the
health care continuation coverage requirements of COBRA under the Allergan
Welfare Plan and the Allergan

                                       9

<PAGE>

Supplemental Benefits Plan for AMO Employees and the AMO Beneficiaries that are
qualified beneficiaries (as such term is defined under COBRA). As soon as
administratively practicable after the Distribution Date (or such other date as
Allergan and AMO may mutually agree), Allergan shall provide AMO (through hard
copy, electronic format, or such other mechanism as is appropriate under the
circumstances), with a list of all such AMO Employees and AMO Beneficiaries and
the relevant information pertaining to their coverage elections and remaining
COBRA time periods.

                                  ARTICLE VIII
                          EQUITY AND OTHER COMPENSATION

     8.1 Allergan Bonus Plans.

          (a) Participants in the AMO Pre-Spin Bonus Plans who are employees of
the AMO Business shall cease their participation in the AMO Pre-Spin Bonus Plans
on the Distribution Date (or such other date as Allergan and AMO may mutually
agree). AMO shall assume any and all liability with respect to AMO Employees
under such AMO Pre-Spin Bonus Plans; provided, however, that during such period
until the Distribution Date, Allergan's Chief Financial Officer, in his sole
discretion, shall determine whether: (i) any bonus pool, or portion thereof
shall be accrued under any AMO Pre-Spin Bonus Plans for the benefit of AMO
Employees and (ii) the amount of any such accruals. To the extent any such
amounts are accrued, they shall be based, with respect to corporate objectives,
on the corporate performance of AMO and shall be reserved by Allergan and the
cash for such accruals transferred to AMO and paid to such AMO Employees by AMO
pursuant to the terms and conditions of the AMO Pre-Spin Bonus Plans for which
such accruals are made, except that such payment shall be made on such date as
Allergan and AMO may mutually agree.

          (b) AMO shall establish the AMO Bonus Plans for AMO Employees for AMO
fiscal period(s) beginning on and after the Distribution Date (or such other
date as Allergan and AMO may mutually agree), to be administered by the
Compensation Committee of the AMO Board of Directors.

     8.2 Deferred Compensation Plan.

          (a) AMO shall adopt the AMO Deferred Compensation Plan and the AMO
Rabbi Trust prior to the Distribution Date.

          (b) Effective as of the Distribution Date (or such other date as
Allergan and AMO may mutually agree): (i) AMO Employees shall cease to be
eligible to make deferrals to, or receive allocations under, the Allergan
Deferred Compensation Plan, (ii) Allergan shall cause the assets attributable to
the accounts of AMO Employees in the Allergan Deferred Compensation Plan to be
transferred to AMO or the trustee of the AMO Rabbi Trust as soon as
administratively feasible, and (iii) AMO shall assume, or shall cause the AMO
Deferred Compensation Plan to assume, all liabilities relating to, arising out
of, or resulting from AMO Employees under the Allergan Deferred Compensation
Plan.

          (c) Allergan and AMO each agree to take action or cause action to be
taken to ensure that no distribution of account balances from the Allergan
Deferred Compensation Plan or AMO Deferred Compensation Plan are made to any AMO
Employee on account of the transfer of employment to the AMO Group, or the AMO
Group ceasing to be an Affiliate of the Allergan Group as of the Distribution
Date.

     8.3 AMO Incentive Plan. AMO shall adopt the AMO Incentive Plan prior to the
Distribution Date. Allergan, as sole shareholder of AMO, shall approve the
adoption of the AMO Incentive Plan prior to the Distribution Date. The AMO
Incentive Plan shall provide for the granting of "incentive stock options"
(within the meaning of Section 422 of the Code and the regulations promulgated
thereunder), non-qualified stock options, restricted stock, dividend
equivalents, stock appreciation rights, and stock payments, to eligible
employees of the AMO Group.

                                       10

<PAGE>

     8.4 Allergan Options.

          (a) Option Assumption by AMO. Effective as of the Distribution Date,
each unvested outstanding Allergan Option issued under the Allergan Incentive
Plan and held by an AMO Employee, shall be, in connection with the Distribution,
cancelled and reissued as an option to purchase shares of common stock of AMO
under the AMO Incentive Plan. Each Allergan Option so cancelled and reissued by
AMO shall continue to have, and be subject to, the same terms and conditions set
forth in the Allergan Incentive Plan and as provided in the respective award
terms and conditions and the AMO Incentive Plan governing such option as of the
Distribution Date (or such other date as Allergan and AMO may mutually agree),
except that with respect to such unvested options, the number shares of AMO
common stock underlying such unvested option, and the exercise price therefor,
shall be determined in the manner set forth in the Minutes of the Special
Meeting of the Organization and Compensation Committee of the Board of Directors
of Allergan, Inc., held on January 18, 2002, as amended.

          (b) Assumption Criteria. The intention of Allergan and AMO is that the
cancellation and reissuance of Allergan Options pursuant to Subsection 8.4(a)
shall meet the criteria set forth with respect thereto in the Minutes of the
Special Meeting of the Organization and Compensation Committee of the Board of
Directors of Allergan, Inc., held on January 18, 2002.

          (c) Certain Non-U.S. Optionees. Except as may otherwise be agreed upon
by Allergan and AMO and/or as set forth in Schedule 8.4, this Section 8.4 shall
govern the treatment of unvested outstanding Allergan Options held by non-U.S.
AMO Employees.

     8.5 AMO Stock Purchase Plan and AMO International Stock Purchase Plan.

          (a) AMO Stock Purchase Plan. AMO shall adopt the AMO Stock Purchase
Plan prior to the Distribution Date. Allergan, as sole shareholder of AMO, shall
approve the adoption of the AMO Stock Purchase Plan prior to the Distribution
Date. The AMO Stock Purchase Plan is intended to be an "employee stock purchase
plan," qualified under Section 423(b) of the Code, and shall be for the benefit
of the eligible employees of AMO and its U.S. Subsidiaries.

          (b) AMO International Stock Purchase Plan. AMO shall adopt the AMO
International Stock Purchase Plan prior to the Distribution Date. Allergan, as
sole shareholder of AMO, shall approve the adoption of the AMO International
Stock Purchase Plan prior to the Distribution Date. The AMO International Stock
Purchase Plan is not intended to be an "employee stock purchase plan," qualified
under Section 423(b) of the Code, and shall be for the benefit of the eligible
employees of AMO's non-U.S. Subsidiaries.

                                   ARTICLE IX
                            ADMINISTRATIVE PROVISIONS

     9.1 Contributions to Trusts. With respect to Allergan Plans to which AMO
Employees make contributions, Allergan shall use reasonable procedures to
determine assets and liabilities attributable to AMO Employees under each such
Plan through the Distribution Date, taking into account such contributions,
settlements, refunds and similar payments.

     9.2 Sharing of Participant Information. In addition to the responsibilities
and obligations of Allergan and AMO specified in the Contribution and
Distribution Agreement, Allergan and AMO shall share, or cause to be shared, all
participant information that is necessary or appropriate for the efficient and
accurate administration of each of the Allergan Plans and the AMO Plans during
the respective periods applicable to such Plans as AMO and Allergan may mutually
agree. Allergan and AMO and their respective authorized agents shall, subject to
applicable laws of confidentiality and data protection, be given reasonable and
timely access to, and may make copies of, all information relating to the
subjects of this Agreement in the custody of the other party or its agents, to
the extent necessary or appropriate for such administration in accordance with
Section 7.01 of the Contribution and Distribution Agreement.

                                       11

<PAGE>

     9.3 Beneficiary Designations. All beneficiary designations made by AMO
Employees for the Allergan Plans shall be transferred to and be in full force
and effect under the corresponding AMO Plans, in accordance with the terms of
each such applicable AMO Plan, until such beneficiary designations are replaced
or revoked by the AMO Employees who made the beneficiary designations.

     9.4 Requests for IRS and DOL Opinions. Allergan and AMO shall make such
applications to regulatory agencies, including the IRS and DOL, as may be
necessary or appropriate. AMO and Allergan shall cooperate fully with one
another on any issue relating to the transactions contemplated by this Agreement
for which Allergan and/or AMO elects to seek a determination letter or private
letter ruling from the IRS or an advisory opinion from the DOL.

     9.5 Fiduciary Matters. Allergan and AMO each acknowledge that actions
contemplated to be taken pursuant to this Agreement may be subject to fiduciary
duties or standards of conduct under ERISA or other applicable law, and that no
party shall be deemed to be in violation of this Agreement if such party fails
to comply with any provisions hereof based upon such party's good faith
determination that to do so would violate such a fiduciary duty or standard.

     9.6 Consent of Third Parties. If any provision of this Agreement is
dependent on the consent of any third party (such as a vendor) and such consent
is withheld, Allergan and AMO shall use their commercially reasonable best
efforts to implement the applicable provisions of this Agreement. If any
provision of this Agreement cannot be implemented due to the failure of such
third party to consent, Allergan and AMO shall negotiate in good faith to
implement such provision in a mutually satisfactory manner.

                                   ARTICLE X
                           EMPLOYMENT-RELATED MATTERS.

     10.1 Employment of Employees with U.S. Work Visas. AMO will request
amendments to the nonimmigrant visa status of AMO Employees with U.S. work visas
authorizing them to work for Allergan, excluding the AMO Group, to request
authorization to work for AMO effective as of the Distribution Date.

     10.2 Confidentiality and Proprietary Information. No provision of this
Agreement shall be deemed to release any individual for any violation of the
Allergan non-competition guideline or any agreement or policy pertaining to
confidential or proprietary information of any member of the Allergan Group, or
otherwise relieve any individual of his or her obligations under such
non-competition guideline, agreement, or policy.

     10.3 Personnel Records. Within the United States, to the extent personnel
records relate to AMO Employees' active employment by, leave of absence from, or
termination of employment with AMO and subject to applicable laws on
confidentiality and data protection, AMO shall have access to the personnel
records of AMO Employees maintained by Allergan in accordance with Section 7.01
of the Contribution and Distribution Agreement. Outside of the United States,
AMO shall take custody of such records.

     10.4 Medical Records. Within the United States, to the extent medical
records relate to AMO Employees' active employment by, leave of absence from, or
termination of employment with AMO and subject to applicable laws on
confidentiality and data protection, AMO shall have access to the medical
records of AMO Employees maintained by Allergan in accordance with Section 7.01
of the Contribution and Distribution Agreement. Outside of the United States,
AMO shall take custody of such records.

     10.5 Unemployment Insurance Program. Allergan shall retain liability for
all unemployment compensation claims filed before the Distribution Date by AMO
Employees. Before the Distribution Date, Allergan shall use its commercially
reasonable best efforts for and on behalf of AMO to procure an agreement with
its third party unemployment insurance administrator comparable in the aggregate
in all Material Features to the Allergan third party unemployment insurance
agreement. AMO shall not unreasonably withhold its consent to adopt such an
agreement with such administrator.

                                       12

<PAGE>

     10.6 Worker's Compensation Claims. All worker's compensation claims shall
be treated as Liabilities subject to Section 2.1 of this Agreement.

     10.7 No Third-Party Beneficiaries. The provisions of this Agreement, the
Contribution and Distribution Agreement and the Ancillary Agreement are solely
for the benefit of the parties and are not intended to confer upon any Person,
except the parties hereto, any rights or remedies hereunder, and there are no
third party beneficiaries of this Agreement, the Contribution and Distribution
Agreement, and any Ancillary Agreement. Neither this Agreement, the Contribution
and Distribution Agreement nor any Ancillary Agreement shall provide any third
Person with any remedy, claim, liability, reimbursement, claim of action or
other right in excess of those existing without reference to this Agreement, the
Contribution and Distribution Agreement, or any Ancillary Agreement. No
provision of this Agreement, the Contribution and Distribution Agreement, or any
Ancillary Agreement shall be construed to create any right or accelerate
entitlement to any compensation or benefit whatsoever on the part of any
Allergan Employee or AMO Employee, or any other former, present or future
employee of Allergan or AMO under any Allergan Plan or AMO Plan or otherwise.

                                   ARTICLE XI
                               GENERAL PROVISIONS

     11.1 Effect if Distribution Does Not Occur. If the Distribution does not
occur, then all actions and events that are, under this Agreement, to be taken
or occur effective as of the Distribution Date, or otherwise in connection with
the Distribution, shall not be taken or occur except to the extent specifically
agreed by Allergan and AMO.

     11.2 Relationship of Parties. Nothing in this Agreement shall be deemed or
construed by the parties or any third party as creating the relationship of
principal and agent, partnership or joint venture between the parties, the
understanding and agreement being that no provision contained herein, and no act
of the parties, shall be deemed to create any relationship between the parties
other than the relationship set forth herein.

     11.3 Affiliates. Each of Allergan and AMO shall cause to be performed and
hereby guarantee the performance of any and all actions of the Allergan Group or
the AMO Group, respectively.

     11.4 Governing Law. To the extent not preempted by applicable federal law,
including, without limitation, ERISA, the Code and applicable securities laws,
this Agreement shall be governed by, construed and interpreted in accordance
with the laws of the State of California, irrespective of the choice of law
principles of the State of California, as to all matters, including matters of
validity, construction, effect, performance and remedies.

     11.5 Assignment. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective legal representatives and
successors, and nothing in this Agreement, express or implied, is intended to
confer upon any other Person any rights or remedies of any nature whatsoever
under or by reason of this Agreement. This Agreement may be enforced separately
by each member of the Allergan Group and each member of the AMO Group. Neither
party may assign this Agreement or any rights or obligations hereunder, without
the prior written consent of the other party, and any such assignment shall be
void; provided, however, either party may assign this Agreement to a successor
entity in conjunction with such party's reincorporation.

     11.6 Severability. If any term or other provision of this Agreement is
determined to be invalid, illegal or incapable of being enforced by any rule of
law or public policy, all other conditions and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to either party. Upon such determination that any term
or other provision is invalid, illegal or incapable of being enforced, the
parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible and in an
acceptable manner to the end that transactions contemplated hereby are fulfilled
to the fullest possible extent.

     11.7 Interpretation. The headings contained in this Agreement or any
Schedule hereto and in the table of contents to this Agreement are for reference
purposes only and shall not affect in any way the meaning or

                                       13

<PAGE>

interpretation of this Agreement. Any capitalized term used in any Schedule but
not otherwise defined therein shall have the meaning assigned to such term in
this Agreement. When a reference is made in this Agreement to an Article,
Section or Schedule, such reference shall be to an Article of, Section of, or
Schedule to this Agreement unless otherwise indicated.

     11.8 Amendment. The Board of Directors of AMO and Allergan may mutually
agree to amend the provisions of this Agreement at any time or times, for any
reason, either prospectively or retroactively, to such extent and in such manner
as the Boards mutually deem advisable. Each Board may delegate its amendment
power, in whole or in part, to one or more Persons or committees as it deems
advisable. No change or amendment will be made to this Agreement, except by an
instrument in writing signed by authorized individuals.

     11.9 Termination. This Agreement may be terminated and the Distribution
abandoned at any time prior to the Distribution Date by and in the sole
discretion of Allergan without the approval of AMO. In the event of termination
pursuant to this Section, no party shall have any liability of any kind to the
other party.

     11.10 Conflict. In the event of any conflict between the provisions of this
Agreement and the Contribution and Distribution Agreement or any Ancillary
Agreement, the provisions of this Agreement shall control.

     11.11 Entire Agreement. This Agreement and the Schedules hereto and the
specific agreements contemplated herein contain the entire agreement between the
parties with respect to the subject matter hereof and supersede all previous
agreements, negotiations, discussions, writings, understandings, commitments and
conversations with respect to such subject matter. No agreements or
understandings exist between the parties other than those set forth or referred
to herein or therein.

     11.12 Counterparts. This Agreement, including the Schedules hereto and the
other documents referred to herein, may be executed in counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one and the same agreement.

     IN WITNESS WHEREOF, each of the parties have caused this Employee Matters
Agreement to be executed on its behalf by its officers thereunto duly authorized
on the day and year first above written.

                               ALLERGAN, INC.,
                               a Delaware corporation

                               By: /s/ David E.I. Pyott
                                  ----------------------------------------------
                               Name:  David E.I. Pyott
                               Title: Chairman of the Board, President and Chief
                                       Executive Officer

                               ADVANCED MEDICAL OPTICS, INC.,
                               a Delaware corporation

                               By: /s/ James V. Mazzo
                                  ----------------------------------------------
                               Name:  James V. Mazzo
                               Title: President and Chief Executive Officer

                                       14

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