Exhibit 10.25



 EXHIBIT 10.25 
  

	
	2010 PERFORMANCE OBJECTIVES – CEO AND PRESIDENT

  
  
 TARGET BONUS AS A PERCENTAGE OF BASE SALARY 
 The 2010 target bonus for the Chief Executive Officer (“CEO”) of Allergan, Inc. (the “Company”) will be an amount equal to 130% of the CEO’s annual base salary as of
the last day of the 2010 fiscal year. The 2010 target bonus for the President of the Company (“President”) will be an amount equal to 77% of the President’s annual base salary as of the last day of the 2010 fiscal year. The
2010 target bonus amounts for the CEO and the President are referred to herein individually as a “Target Bonus Amount” and collectively as the “Target Bonus Amounts.” 
  
  
 2010 PERFORMANCE OBJECTIVES AND BONUS AMOUNT DETERMINATION 
 If the
Company’s 2010 Adjusted EPS is greater than the Threshold EPS, the CEO and President will be eligible to receive a bonus based on the following three criteria: (i) 2010 Adjusted EPS, (ii) 2010 Revenue Growth and (iii) 2010
R&D Reinvestment Rate. The bonus (if any) payable will be an amount determined by multiplying (i) the Target Bonus Amount by (ii) the Target Bonus Multiplier. In no event, however, will the CEO or President be eligible to receive all
or any portion of such bonus if the Company’s 2010 Adjusted EPS does not exceed the Threshold EPS. For sake of clarity, if the Company’s performance exceeds any of the targets for 2010 Revenue Growth and/or 2010 R&D Reinvestment Rate,
but actual 2010 Adjusted EPS does not exceed the Threshold EPS, no bonus will be payable. Payment of the CEO’s and President’s 2010 performance bonus (if any) will be made in accordance with, and subject to, the terms of the Allergan, Inc.
2006 Executive Bonus Plan, as in effect on the date hereof (the “Plan”), including, without limitation, the provisions of Sections 2.4, 3.3 and 6.3 of the Plan. 
 For purposes of determining the CEO’s and President’s 2010 performance bonus, the following terms will have the following meanings: 
 “2010 Adjusted EPS” means the Company’s 2010 Adjusted Net Earnings divided by the weighted average
number of common shares outstanding on a diluted basis during 2010, rounded to the fourth decimal place. 
 “2010 Adjusted Net Earnings” means the Company’s net earnings from continuing operations for the 2010 fiscal year, adjusted to: 
  

	 	•	 	 remove the effects of extraordinary, unusual or non-recurring items; 


  

	 	•	 	 remove the effects of items that are outside the scope of the Company’s core, on-going business activities; 


  

	 	•	 	 remove the effects of accounting changes required by United States generally accepted accounting principles; 


  

	 	•	 	 remove the effects of financing activities; 


  

	 	•	 	 remove the effects of expenses for restructuring or productivity initiatives; 


  

	 	•	 	 remove the effects of non-operating items; 


  

	 	•	 	 remove the effects of spending for acquisitions; 


  


	 	•	 	 remove the effects of divestitures; and 


  

	 	•	 	 remove the effects of amortization of acquired intangible assets. 


  

  
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	 2010 PERFORMANCE OBJECTIVES
	  	ALLERGAN, INC.

  
  
 “2010 Revenue
Growth” means the percentage increase (if any) in net product sales for the 2010 fiscal year relative to net product sales for the 2009 fiscal year, adjusted for the translation effect of changes in foreign exchange rates between each
fiscal year, rounded to the nearest one-hundredth of one percent. 
 “2010 R&D Reinvestment
Rate” means total research and development expenses for the 2010 fiscal year as a percentage of the Company’s total net sales, for the 2010 fiscal year, rounded to the nearest one-hundredth of one percent. 
 “EPS Target” means an amount per share specified by the Organization and Compensation Committee at the time
of adoption of these performance objectives. 
 “Target Bonus Multiplier” means the sum of the
“% of Target Bonus Amount” corresponding to: (a) the Company’s 2010 Adjusted EPS, (b) the Company’s 2010 Revenue Growth, and (c) the Company’s 2010 R&D Reinvestment Rate, in each case as determined in
accordance with the tables set forth on Exhibit A. 
 “Threshold EPS” means the EPS
Target, less $0.15. 
  
  
 2010 METHOD OF BONUS PAYMENT 
 Bonuses will be paid in cash up to a maximum bonus pool equal to 100% of Plan participants’ bonus targets. Bonuses will be paid in restricted stock or restricted stock units to the extent the bonus
pool exceeds 100% of Plan participants’ bonus targets. Such restricted stock or restricted stock units will provide for cliff vesting two years from the award effective date. Any payment in the form of restricted stock or restricted stock units
will be issued under the Company’s 2008 Incentive Award Plan. Subject to the terms of the 2008 Incentive Award Plan, upon a recipient’s death or Total Disability (as defined below), or upon a recipient’s Normal Retirement Eligibility
Date (as defined below), all of the restrictions imposed on the recipient’s restricted stock or restricted stock units shall lapse. For purposes of the foregoing, (i) “Total Disability” has the meaning set forth in
Section 22(e)(3) of the Internal Revenue Code (generally defined as the inability of a recipient, by reason of mental or physical illness, to perform any substantial gainful activity, which disability is expected to result in death or continue
for a period of at least 12 months) and (ii) a recipient’s “Normal Retirement Eligibility Date” means the date on which the recipient has (a) attained age 55 and (b) been employed by the Company for a minimum of 5
years. 
  

  
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	 2010 PERFORMANCE OBJECTIVES
	  	ALLERGAN, INC.

  
  
 EXHIBIT A 
 TO 
 2010
PERFORMANCE OBJECTIVES – CEO AND PRESIDENT 
 2010 ADJUSTED EPS, 2010 REVENUE GROWTH AND 
 2010 R&D REINVESTMENT RATE PERFORMANCE 
  
  
  
  

																	
	  
 Earnings Per Share
  
	  		 	  
 Revenue Growth
  
	  		 	  
 R&D Reinvest Rate
  

	 EPS Range %
  
	  	 EPS Range
  
	 	  
 Bonus % of
 Target
  
	  		 	  
 Revenue Growth
  
	 	  
 Bonus % of
 Target
  
	  		 	  
 ~R&D Reinvest Rate
  
	 	  
 Bonus % of
 Target
  

	 		 		 	 		 	 
	 -4.8%
	  	-$0.150	 	  0.0%	  		 		 	 	  		 		 	 
	 		 		 	 		 	 
	 -2.6%
	  	-$0.080	 	46.0%	  		 	0.4%	 	  0.0%	  		 	14.75%	 	  0.0%
	 		 		 	 		 	 
	 -2.2%
	  	-$0.070	 	57.0%	  		 	1.4%	 	  2.0%	  		 	15.00%	 	  2.0%
	 		 		 	 		 	 
	 -1.4%
	  	-$0.045	 	68.0%	  		 	2.4%	 	  4.0%	  		 	15.25%	 	  4.0%
	 		 		 	 		 	 
	 -1.1%
	  	-$0.035	 	72.0%	  		 	3.4%	 	  6.0%	  		 	15.50%	 	  6.0%
	 		 		 	 		 	 
	 -0.6%
	  	-$0.020	 	76.0%	  		 	4.4%	 	  8.0%	  		 	15.75%	 	  8.0%
	 		 		 	 		 	 
	 	  	Target	 	80.0%	  		 	5.4%	 	10.0%	  		 	16.00%	 	10.0%
	 		 		 	 		 	 
	  1.0%
	  	 $0.030	 	84.0%	  		 	6.4%	 	13.8%	  		 	16.25%	 	13.8%
	 		 		 	 		 	 
	  1.9%
	  	 $0.060	 	88.0%	  		 	7.4%	 	17.5%	  		 	16.50%	 	17.5%
	 		 		 	 		 	 
	  2.6%
	  	 $0.080	 	92.0%	  		 	8.4%	 	21.3%	  		 	16.75%	 	21.3%
	 		 		 	 		 	 
	  3.2%
	  	 $0.100	 	96.0%	  		 	9.4%	 	25.0%	  		 	17.00%	 	25.0%

 If the Company’s performance exceeds the highest performance level shown above for one or more of the specified performance measures (i.e., 2010 Adjusted EPS, 2010
Revenue Growth, and 2010 R&D Reinvestment Rate), the “% of Target Bonus Amount” achieved with respect to that performance measure will be the maximum “% of Target Bonus Amount” specified for that performance measure. For
example, if 2010 Adjusted EPS equals EPS Target + $0.11, the “% of Target Bonus Amount” will nonetheless be 96% for that performance measure. 
 If actual results for any one or more of the performance measures falls between the performance levels shown above, the bonus will be prorated accordingly. 
 Each component of the Target Bonus Multiplier will be determined independently of each other component of the Target Bonus Multiplier;
provided that no bonus will be payable in the event the Company’s 2010 Adjusted EPS does not exceed the Threshold EPS. 
  

  
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