Document:

Exhibit 10.8(e)

 

	
  AMO
  BONUS PLAN

  	
  

  

 

2006 PERFORMANCE OBJECTIVE

 

2006 PERFORMANCE OBJECTIVE

 

The 2006 performance objective for the Bonus Plan is 75%
based on Adjusted Operating Income and 25% based on Revenue for the full year
of AMO performance. “Adjusted Operating Income” is defined as sales less cost of goods sold and all basic
operating expenses of the business. “Adjusted Operating Income” excludes
special charges associated with AMO’s rationalization and repositioning program
and the effect of stock option expense. “Revenue” is defined as the total
dollar payment for goods and services that are credited to the income statement
over the measurement period.

 

Each segment of the bonus is funded when AMO achieves
the threshold levels of Adjusted Operating Income and Revenue performance, respectively,
as indicated below. If the Adjusted Operating Income funding trigger threshold
is not met, the 75% element of the plan is not funded. If the Revenue funding
trigger threshold is not met, the 25% element of the plan is not funded. If
neither funding trigger threshold is met, no bonuses will be paid out.

 

FUNDING TRIGGER ELEMENTS

 

	
  75% - ADJUSTED
  OPERATING INCOME

  	
   

  
	
  PERFORMANCE
  

  LEVEL

  	
   

  	
  2006 ADJ OP

  INCOME 

  RANGE

  	
   

  	
  BONUS 

  AWARD AS A

  % OF TARGET

  	
   

  
	
  Below Threshold

  	
   

  	
  -38.26 mm

  	
   

  	
  0%

  	
   

  
	
  Threshold

  	
   

  	
  -38.25 mm

  	
   

  	
  40%

  	
   

  
	
   

  	
   

  	
  Target

  	
   

  	
  100%

  	
   

  
	
  Maximum

  	
   

  	
  +38.25 mm

  	
   

  	
  150%

  	
   

  
	
  If actual Adjusted Operating Income results fall
  between the performance levels shown above, the portion of bonus will be
  prorated accordingly.

  	
   

  

 

	
  25%
  - REVENUE

  	
   

  
	
  PERFORMANCE
  

  LEVEL

  	
   

  	
  2006

  REVENUE

  RANGE

  	
   

  	
  BONUS 

  AWARD AS A

  % OF TARGET

  	
   

  
	
  Below Threshold

  	
   

  	
  -51.06 mm

  	
   

  	
  0%

  	
   

  
	
  Threshold

  	
   

  	
  -51.05 mm

  	
   

  	
  50%

  	
   

  
	
   

  	
   

  	
  Target

  	
   

  	
  100%

  	
   

  
	
  Maximum

  	
   

  	
  +157.15 mm

  	
   

  	
  150%

  	
   

  
	
  If actual Revenue results fall between the
  performance levels shown above, the portion of bonus will be prorated
  accordingly.

  	
   

  

 

 

BONUS POOL FUNDING

 

At the end of the year,
the President and Chief Executive Officer of Advanced Medical Optics, Inc. may
recommend adjustments to the bonus funding levels to the Organization,
Compensation and Corporate Governance Committee (the “Committee”) after
consideration of key operating results. When calculating Adjusted Operating
Income and Revenue performance for purposes of this Plan, the Committee has the
discretion to include or exclude any or all of the following items:

 

•                  Extraordinary,
unusual or non-recurring items

 

•                  Effects of
accounting changes

 

•                  Effects of
financing activities

 

•                  Expenses for
restructuring or productivity initiatives

 

•                  Other
non-operating items

 

•                  Spending for
acquisitions

 

•                  Effects of
divestitures

 

BONUS POOL DIFFERENTIATION BY
BUSINESS UNIT/FUNCTION

 

The target bonus pool is
determined by performance against Adjusted Operating Income (75%) and Revenue (25%).
The factors below will be considered for allocation of region/function bonus
pools:

 

CORPORATE
& GLOBAL MARKETING

 

•                  Corporate Adjusted
Operating Income (60%)

 

•                  Corporate
Revenue (40%)

 

STRATEGIC
BUSINESS UNITS

 

•                  Business Unit Adjusted
Operating Income (40%)

 

•                  Business Unit
Revenue (60%)

 

RESEARCH
& DEVELOPMENT

 

•                  Corporate Adjusted
Operating Income (20%)

 

•                  Corporate
Revenue (20%)

 

•                  Achievement of R
& D and Business Development Milestones (60%)

 

WORLD
WIDE MANUFACTURING

 

•                  Corporate Adjusted
Operating Income (20%)

 

•                  Corporate
Revenue (20%)

 

•                  Achievement of
World Wide Manufacturing Milestones (60%)

 

 

INDIVIDUAL BONUS AWARD
CALCULATION

 

Target bonus awards are
expressed as a percentage of the participant’s year-end annualized base salary.
The target percentages for managers other than corporate officers vary by salary
grade:

 

	
  SALARY GRADE

  	
   

  	
  TARGET BONUS

  
	
  6E *

  	
   

  	
  10%

  
	
   

  	
   

  	
   

  
	
  7E

  	
   

  	
  15%

  
	
   

  	
   

  	
   

  
	
  8E

  	
   

  	
  20%

  
	
   

  	
   

  	
   

  
	
  9E

  	
   

  	
  25%

  
	
   

  	
   

  	
   

  
	
  10E

  	
   

  	
  30%

  
	
   

  	
   

  	
   

  
	
  11E

  	
   

  	
  35%

  

 

Target percentages for
corporate officers are individually established by the Committee.

 

A participant’s actual
bonus award may vary above or below the targeted level based on the supervisor’s
evaluation of his or her performance in relation to the predetermined MBOs. Each
participant may receive from 0% to 150% of his or her target bonus amount. However,
the total of all bonus awards given within each region/function must total no
more than 100% of the total bonus pool dollars allocated to that
region/function.

 

* U.S. and Puerto Rico
employees only.EXHIBIT 10.9(d)

 

THIRD
AMENDMENT

TO

ADVANCED
MEDICAL OPTICS, INC.

401(K) PLAN

 

The
ADVANCED MEDICAL OPTICS, INC.
401(k) PLAN (the “Plan”) is hereby amended
as follows:

 

I.                                         Section 2.20 of the Plan is amended by
renumbering subsection (g) as subsection (i) and by adding the following new
subsection (g):

 

(g)         An
Eligible Employee whose employment was transferred from Pfizer Inc. or a
subsidiary of Pfizer Inc. to the Company in connection with the Stock and Asset Purchase Agreement between Pfizer
Inc. and Advanced Medical Optics, Inc. dated as of April 21, 2004, as amended (the “Stock and Asset
Purchase Agreement”), and who is classified or identified as such in the
payroll records of the Company or in the Stock and Asset Purchase Agreement, hereinafter referred to as a “Pfizer
Transferred Employee” for purposes of this paragraph, shall receive additional
Credited Service for any accrued service under the qualified plans of Pfizer
Inc. or a subsidiary of Pfizer Inc. but only to the extent required under the
Stock and Asset Purchase Agreement.

 

II.                                     Section 2.20 of the Plan is amended further by
adding the following new subsection (h):

 

(h)                         An
Eligible Employee in the United States who was employed by Visx Incorporated or
any of its subsidiaries on May 27, 2005, and who is classified or identified as
such in the payroll records of the Company or in the Agreement and Plan of Merger between Visx Incorporated, Vault Merger
Corporation and Advanced Medical Optics, Inc. dated as of November 9, 2004
(the “Merger Agreement”), hereinafter
referred to as a “Visx Transferred Employee” for purposes of this paragraph, or an Eligible Employee whose employment with
Visx Incorporated or any of its subsidiaries in the United States was
terminated before May 27, 2005, hereinafter referred to as a “Former Visx
Employee” for purposes of this paragraph, shall receive additional Credited
Service under the Plan determined as follows:

 

(i)             A
Visx Transferred Employee shall receive Credited Service for any period of
employment with Visx Incorporated or any of its subsidiaries in the United
States but only to the extent required under the Merger Agreement.

 

(ii)          A
Former Visx Employee whose Employment Commencement Date is both prior to May 26,
2010 and within five (5) years of his or her Severance Date (as such term is
defined under this 

 

 

Plan) from Visx Incorporated or any of its
subsidiaries in the United States shall receive Credited Service for any period
of employment with Visx Incorporated or any of its subsidiaries in the United
States, but only to the extent that such Former Visx Employee would have
received Credited Service for such period(s) of employment or military service
under the rules set forth in paragraphs (b), (c), (d), and (i) of this Section
had he or she been employed by the Company during such period(s) or on a
military leave of absence from the Company.

 

(iii)                                   Notwithstanding
subparagraphs (i) and (ii) above, a Visx Transferred Employee or Former Visx
Employee shall not receive duplicative credit for any period of employment with
Visx Incorporated or any of its subsidiaries in the United States under
subparagraph (i) and subparagraph (ii) above.

 

III.                                 Section 4.9 of the Plan is amended by adding the
following new subsection (g):

 

(g)                                Notwithstanding
paragraph (a) above, a former Eligible Employee pursuant to procedures as the
Committee may prescribe (either in writing or practice) and subject to the
provisions of this paragraph (g), may make a Direct Rollover Contribution or a
Participant Rollover Contribution of an Eligible Rollover Distribution from the
Visx Incorporated 401(k) Plan to the Plan. A Rollover Contribution made
pursuant to this paragraph (g) shall be held in a separate Rollover Account for
the former Eligible Employee, shall not be considered a Participant Deposit,
and shall not share in any allocations of Company Contributions or Forfeitures
under Section 6.3.

 

IV.                                 Section 5.3 is amended by renumbering subsection
(d) as subsection (e) and by adding the following new subsection (d):

 

(d)                                For
the 2005 Plan Year, the Company shall contribute and allocate, for each
Participant set forth in Appendix C – Special Provisions for Transferred
Pharmacia Employees, which is hereby attached and made a part of the Plan, a
Profit Sharing Contribution in addition to the Profit-Sharing Contribution
described in subsection (c) above which, when added to Forfeitures available
after the application of Section 6.3, is equal to the allocation amount set
forth for each such Participant in the attached Appendix C.

 

V.                                     Section 6.3(c) of the Plan is amended as follows:

 

(c)                                 Profit
Sharing Contributions shall be allocated to the Profit Sharing Accounts of
eligible Participants at such times and in such amounts as provided in Section
5.3(c) and 5.3(d).

 

2

 

VI.                                 Section 8.6(a) of the Plan is amended as follows:

 

(a)                                 In
no event shall any benefits under the Plan, including benefits upon retirement,
Severance, or Disability, be paid (or commence to be paid) to a Participant
prior to Normal Retirement Age unless the Participant consents in writing to
the payment (or commencement of payment) of such benefits prior to Normal
Retirement Age. Notwithstanding the foregoing, the provisions of this paragraph
shall not apply (i) following the Participant’s death, or (ii) with
respect to a lump sum distribution of the vested portion of a Participant’s
Accounts if the total amount of such vested portion does not exceed $1,000
($5,000 for distributions made prior to March 28, 2005). For purposes of
clause (ii), Rollover Contributions and the earnings thereon, shall be
included in determining the value of the vested portion of a Participant’s
Account for distributions made after December 31, 2001 with respect to
Participants who incur a Severance after December 31, 2001.

 

VII.                             Section 8.4 of Appendix A of the Plan is amended as follows:

 

8.4                                Plan
Section 8.6(a). Notwithstanding the provisions of Plan
Section 8.6(a) entitled “Distribution Rules,” in the case of a Puerto
Rico-based Participant in no event shall any benefits under the Plan, including
benefits upon retirement, Severance, or Disability, be paid (or commence to be
paid) to a participant prior to the “Consent Date” (as defined herein) unless
the Participant consents in writing to the payment (or commencement of payment)
of such benefits prior to said Consent Date. As used herein, the term “Consent
Date” shall mean the later of (i) the Participant’s 62nd birthday, or (ii)
the Participant’s Normal Retirement Age. Notwithstanding the foregoing, the
provisions of this Paragraph shall not apply (i) following the Participant’s
death, or (ii) with respect to a lump sum distribution of the vested portion of
a Participant’s Accounts if the total amount of such vested portion does not
exceed or has never exceeded $1,000.

 

IN WITNESS WHEREOF,
Advanced Medical Optics, Inc. hereby executes this Third Amendment to the
Advanced Medical Optics, Inc. 401(k) Plan on this   28th  
day of December, 2005.

 

 

	
  ADVANCED MEDICAL OPTICS, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
  /s/ AIMEE S. WEISNER

  	
   

  	
   

  
	
   

  	
  Aimee Weisner

  	
   

  
	
   

  	
  Corporate Vice
  President, General Counsel, and Secretary

  	
   

  
				

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]