Document:

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                                                                   EXHIBIT 10.38

                              TAX SHARING AGREEMENT

          THIS TAX SHARING AGREEMENT (this "Agreement"), is made and entered
into as of June 24, 2002, by and between ALLERGAN, INC., a Delaware corporation
("Allergan"), and ADVANCED MEDICAL OPTICS, INC., a Delaware corporation and
wholly owned subsidiary of Allergan ("AMO").

          WHEREAS, Allergan, AMO and Allergan's other subsidiaries have joined
in filing consolidated federal Income Tax Returns and certain consolidated,
combined, unitary or similar state, foreign and local Tax Returns;

          WHEREAS, pursuant to a Contribution and Distribution Agreement dated
as of June 24, 2002, by and among Allergan and AMO (the "Distribution
Agreement"), Allergan will distribute to the holders of its common stock all of
the shares of common stock of AMO (the "Distribution");

          WHEREAS, pursuant to the Distribution Agreement, AMO will leave the
Allergan Group (as defined herein); and

          WHEREAS, the parties hereto wish to provide for (i) the allocation of,
and indemnification against, certain liabilities for Taxes, (ii) the preparation
and filing of Tax Returns and the payment of Taxes with respect thereto, and
(iii) certain related matters.

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

                                   ARTICLE I.
                                   DEFINITIONS

          When used herein the following terms shall have the following
meanings:

          Actual Additional Taxes Payable: as defined in Section 3.6(f) of this
Agreement.

          Actual Taxes Payable: as defined in Section 3.4(a) of this Agreement.

          Acquisition: with respect to the stock of Allergan or AMO, as
applicable, any acquisition of stock or issuance of stock, excluding (a) any
acquisition of stock that qualifies under Treasury Regulation section
1.355-7T(d)(5) or any successor thereto, (b) any acquisition of stock that is in
connection with the performance of services as an employee or director and that
qualifies under Treasury Regulation section 1.355-7T(d)(6) or any successor
thereto, including, without limitation, any acquisition of stock pursuant to an
AMO Equity Plan, and (c) any acquisition of stock by a retirement plan of an
employer that qualifies under Treasury Regulation section 1.355-7T(d)(7) or any
successor thereto.

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          Acquisition Approval Process: as defined in Section 5.2(b) of this
Agreement.

          Additional Pre-Closing Straddle Period Portion: as defined in Section
3.6(f) of this Agreement.

          Adverse Consequence(s): all actions, suits, proceedings, hearings,
investigations, charges, complaints, claims, demands, injunctions, judgments,
orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid
in settlement, liabilities, obligations, liens, losses, expenses, and fees,
including court costs and reasonable attorney's fees and expenses.

          Affiliate: with respect to any corporation (the "given corporation"),
each entity that directly or indirectly, through one or more intermediaries,
controls, is controlled by, or is under common control with, the given
corporation. For purposes of this definition, "control" means the possession,
directly or indirectly, of 50% or more of the voting power or value of
outstanding equity interests.

          Affiliated Group: an affiliated group of corporations within the
meaning of Code Section 1504(a) (and without regard to the exclusions contained
in Code Section 1504(b)) for the Taxable Period or, for purposes of any state,
foreign or local Tax matters that are filed on a consolidated, combined, unitary
or similar basis, any consolidated, combined, unitary or similar group of
corporations within the meaning of the corresponding provisions of tax law for
the jurisdiction in question.

          After-Tax Basis: any indemnity payment made hereunder shall give
effect to, and be adjusted by the value of, any and all Income Tax Benefit(s)
for federal, state, foreign or other Income Tax purposes attributable to the
payment of the indemnified liability, which value shall be determined on an
assumed basis by (a) multiplying the amount of any applicable deductions,
losses, offsets or other Income Tax items (such amount determined as if such
deductions, losses, offsets or other Income Tax items will generate an immediate
deduction for the full amount ultimately available) by (i) 39%, (ii) if no state
Income Tax Benefit shall result therefrom (determined on a hypothetical basis by
using the highest marginal corporate Income Tax rate), 35% (such percentages to
increase or decrease on a percentage-for-percentage basis with any subsequent
increases or decreases in the current 35% maximum marginal federal Income Tax
rate for corporations, and 100% minus the maximum marginal federal Income Tax
rate for corporations (e.g., 65%) of any increases or decreases in the maximum
marginal state or local Income Tax rate for corporations), or (iii) if such
indemnity payment is made on account of the payment of a foreign Income Tax to
which an Income Tax Benefit in a foreign jurisdiction is attributable, the
applicable statutory rate of Income Tax in the foreign jurisdiction in which the
Income Tax Benefit results, and (b) valuing any credits or other direct
reductions of Income Tax on a dollar-for-dollar basis. For example, if a payment
of $100 (other than a payment of foreign Income Tax) that is deductible by the
indemnitee is indemnified hereunder, the indemnification payment with respect
thereto (applying the characterization set forth in Section 7.2) shall be
reduced by $39 to $61.

          Allergan: as defined in the preamble to this Agreement.

          Allergan Business: as defined in the Distribution Agreement.

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          Allergan Group: Allergan and each corporation that is a member of an
Affiliated Group with respect to which Allergan is the common parent.

          AMO: as defined in the preamble to this Agreement.

          AMO Business: as defined in the Distribution Agreement; provided,
however, that for Taxable Periods or portions thereof after the Closing Date,
the "AMO Business" shall include any business or operations conducted by any of
the AMO Members.

          AMO Equity Plan: each of the following stock option or employee stock
purchase plans adopted by AMO for the benefit of its employees and directors:
the AMO Incentive Compensation Plan, the AMO Employee Stock Purchase Plan, and
the AMO International Employee Stock Purchase Plan (each in the form and under
the plan name adopted by AMO as of the Distribution Date); provided, however,
that any acquisition of AMO stock shall not be treated as acquired pursuant to
an AMO Equity Plan for purposes of this Agreement if the acquiror or a
coordinating group of which the acquiror is a member is a controlling
shareholder or a 10-percent shareholder of AMO within the meaning of Treasury
Regulation section 1.355-7T(d)(6) or any successor thereto.

          AMO Group: AMO and each corporation that was a Pre-Distribution Member
and which, on the day after the Closing Date, will be a member of an Affiliated
Group with respect to which AMO is the common parent. For purposes of this
Agreement, the AMO Group shall exist as of the day after the Closing Date.

          AMO Group Allocable Portion: With respect to a Tax Return filed after
the Closing Date for either a Pre-Closing Taxable Period or Straddle Period, the
amount of Taxes for such period attributable to the AMO Business (net of any
previously paid estimated Taxes for such period that are attributable to the AMO
Business). The determination of the amount of Taxes attributable to the AMO
Business for a given Tax Return shall be calculated on a "with and without
basis," by calculating the amount of the excess (if any) of (i) the amount of
Taxes shown as due and payable on such Tax Return as filed, over (ii) the amount
of Taxes that would be shown as due and payable on such Tax Return if such Tax
Return was recalculated excluding the AMO Business. For purposes of this
determination, any Transaction Taxes incurred shall be deemed not to have been
incurred as part of the conduct of the AMO Business, regardless of which entity
incurs such Transaction Taxes.

          AMO Member: a corporation that is a member of the AMO Group.

          Audit: any audit, assessment of Taxes, other examination by any Taxing
Authority, proceeding or appeal of such a proceeding relating to Taxes, whether
judicial or administrative.

          Carrybacks: as defined in Section 4.3 of this Agreement.

          Carryforwards: as defined in Section 4.4 of this Agreement.

          Closing Date: the date on which the Distribution is effected by
Allergan.

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          Code: the Internal Revenue Code of 1986, as amended, or any successor
thereto, as in effect for the Taxable Year in question.

          Dispute Resolution Procedure: a procedure whereby (i) Allergan shall
select a representative of a nationally recognized accounting firm or nationally
recognized law firm; (ii) AMO shall select a representative of a second
nationally recognized accounting firm or nationally recognized law firm; (iii)
the two representatives so selected shall together select a representative of a
third nationally recognized accounting firm or nationally recognized law firm;
and (iv) the three representatives together (or, if they are unable to agree, a
majority of them) shall, within a reasonable period of time, decide the issue(s)
submitted to them. The fees of the three representatives and all other costs of
the dispute resolution shall be borne by the losing party in the dispute. Any
decision rendered pursuant to a Dispute Resolution Procedure shall be final and
binding on all Post-Distribution Members and AMO Members.

          Distribution: as defined in the preamble to this Agreement.

          Distribution Agreement: as defined in the preamble to this Agreement.

          Employment Tax(es): any federal, state, foreign or local payroll,
employment, occupation, social security, unemployment, disability, or other Tax
in respect of compensation of employees.

          Estimated Additional Pre-Closing Straddle Period Portion: as defined
in Section 3.6(e) of this Agreement.

          Estimated AMO Group Allocable Portion: as defined in Section 3.4(a) of
this Agreement.

          Final Determination: (i) a decision, judgment, decree, or other order
by a court of competent jurisdiction, which has become final and unappealable;
(ii) a closing agreement or accepted offer in compromise under Code Sections
7121 or 7122, or comparable agreements under the laws of other jurisdictions;
(iii) any other final settlement with the IRS or other Taxing Authority
(including the execution of IRS Form 870AD, or a comparable form under the laws
of other jurisdictions, but excluding any such form that reserves (whether by
its terms or by operation of law) the right of the taxpayer to file a claim for
refund and/or the right of the Taxing Authority to assert a further deficiency);
(iv) the expiration of an applicable statute of limitations; or (v) the
allowance of a refund or credit, but only after the expiration of all periods
during which such refund or credit may be recovered (including by way of
offset).

          Group: the Allergan Group, Pre-Distribution Allergan Group,
Post-Distribution Allergan Group or AMO Group, as the context requires.

          Implementation Agreements: as defined in the Distribution Agreement.

          Income Tax(es): with respect to any corporation or Affiliated Group,
any and all Taxes based upon or measured by net income (regardless of whether
denominated as an "income tax," a "franchise tax" or otherwise).

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          Income Tax Benefit: any Tax Benefit relating to Income Tax.

          Income Tax Return: a Tax Return relating to the payment of any Income
Tax or to the receipt of any refund of any Income Tax.

          Indemnification Threshold: as defined in Section 6.4 of this
Agreement.

          IRS: the Internal Revenue Service or any successor thereto, including
but not limited to its Representatives.

          IRS Ruling: The letter ruling issued by the IRS in response to the
Ruling Request.

          Newly Formed AMO Member: an AMO Member other than a Pre-Existing AMO
Member.

          Overdue Rate: a variable rate of interest per annum equal to the
Federal short-term rate as established from time to time pursuant to Code
Section 1274(d).

          Post-Closing Straddle Period: with respect to any Straddle Period, the
portion beginning after the Closing Date and ending on the last day of such
Taxable Year.

          Post-Closing Taxable Period: a Taxable Year that begins after the
Closing Date.

          Post-Distribution Allergan Group: Allergan and each corporation that
was a Pre-Distribution Member and which, on the day after the Closing Date, will
be a member of an Affiliated Group with respect to which Allergan is the common
parent. For purposes of this Agreement, the Post-Distribution Allergan Group
shall exist as of the day after the Closing Date.

          Post-Distribution Member: a corporation that was a Pre-Distribution
Member and is a member of the Post-Distribution Allergan Group as of the day
after the Closing Date.

          Pre-Closing Straddle Period: with respect to any Straddle Period, the
portion beginning on the first day of such Taxable Year and ending at the close
of business on the Closing Date.

          Pre-Closing Taxable Period: a Taxable Year that ends on or before the
Closing Date.

          Pre-Distribution Allergan Group: Allergan and each corporation that is
a member of an Affiliated Group with respect to which Allergan is the common
parent during any Pre-Closing Taxable Period. For purposes of this Agreement,
the Pre-Distribution Allergan Group shall terminate at the close of business on
the Closing Date.

          Pre-Distribution Member: a corporation that was a member of the
Pre-Distribution Allergan Group at any time on or prior to the Closing Date.

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          Pre-Existing AMO Member: each of Allergan K.K., Allergan (Hangzou)
Pharmaceutical Co. Ltd and Allergan Trading International Limited.

          Representative(s): with respect to any person or entity, any of such
person's or entity's directors, officers, employees, agents, consultants,
accountants, attorneys and other advisors.

          Ruling Request: The private letter ruling request filed by Allergan
with the IRS, as supplemented and amended from time to time, with respect to
certain federal Income Tax matters relating to the Distribution and other
related matters.

          Section 355 Tax Treatment: as defined in Section 5.1 of this
Agreement.

          Section 355(e) Gain: as defined in Section 5.2 of this Agreement.

          Special Year-End Item: any item of taxable income that, as a matter of
law, is taken into account at the end of a Taxable Year but relates to
operations throughout the year, including, without limitation, income taken into
account under Sections 951-964 of the Code, and profits splits in accordance
with Section 936 of the Code.

          Stock Option: when immediately preceded by "Allergan," means an option
to purchase Allergan common stock pursuant to an Allergan stock option plan.
When immediately preceded by "AMO," "Stock Option" means an option to purchase
AMO common stock pursuant to an AMO stock option plan.

          Straddle Period: any Taxable Year beginning before and ending after
the Closing Date.

          Tax Benefit(s): (i) in the case of a Tax for which a consolidated
federal, or a consolidated, combined, unitary or similar state, foreign or local
Tax Return is filed, the amount by which the Tax liability of the Affiliated
Group is reduced (by deduction, entitlement to refund, credit, offset or
otherwise, whether available in the current Taxable Year, as an adjustment to
taxable income in any other Taxable Year or as a carryforward or carryback, and
including the effect on other Taxes of such reduction), plus any interest
received with respect to any related Tax refund, and (ii) in the case of any
other Tax, the amount by which the Tax liability of a corporation is reduced (by
deduction, entitlement to refund, credit, offset or otherwise, whether available
in the current Taxable Year, as an adjustment to taxable income in any other
Taxable Year or as a carryforward or carryback, and including the effect on
other Taxes of such reduction), plus any interest received with respect to any
related Tax refund, determined in the case of both (i) and (ii) on a basis
consistent with the computation of After-Tax Basis.

          Tax Practices: the most recently applied policies, procedures and
practices employed by the Allergan Group in the preparation and filing of, and
positions taken on, any Tax Returns of Allergan or any Pre-Distribution Member
or Allergan Affiliate for any Pre-Closing Taxable Period.

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          Tax Return(s): with respect to any corporation or Affiliated Group,
all returns, reports, estimates, statements, declarations, information returns,
claims for refund and other filings relating to, or required to be filed by any
taxpayer in connection with, Taxes, including any schedule or attachment
thereto.

          Taxable Period: a Pre-Closing Taxable Period, a Post-Closing Taxable
Period or a Straddle Period.

          Taxable Year: a taxable year (which may be shorter than a full
calendar or fiscal year) or similar period with respect to which any Tax may be
imposed.

          Tax(es): any federal, state, foreign or local income, gross receipts,
license, payroll, employment, excise, severance, stamp, occupation, premium,
windfall profits, environmental, customs duties, capital stock, franchise,
profits, withholding, social security, unemployment, disability, real property,
personal property, sales, use, transfer, registration, value added, alternative
or add-on minimum, estimated, or other tax of any kind whatsoever, including any
interest, penalty or addition thereto.

          Taxing Authority: the IRS or any other domestic or foreign
governmental authority responsible for the administration of any Tax.

          Transaction Taxes: all Taxes occurring solely as a result of the
Transactions, provided, however, that "Transaction Taxes" shall not include any
Taxes resulting from the failure of the Distribution to qualify as tax-free
under Section 355 of the Code.

          Transactions: the Contribution (as defined in the Distribution
Agreement), the Distribution, and the series of transactions constituting the
Restructuring Plan (as defined in the Distribution Agreement).

                                   ARTICLE II.
                              FILING OF TAX RETURNS

          Section 2.1 Preparation and Filing of Tax Returns.

               (a) By Allergan. Allergan shall prepare and timely file (or cause
to be prepared and timely filed):

                    (i) all Tax Returns of the Allergan Group or any
          Pre-Distribution Member or group of Pre-Distribution Members for all
          Pre-Closing Taxable Periods that are filed on or after the date of
          this Agreement;

                    (ii) all Tax Returns of the Allergan Group or any
          Pre-Distribution Member or group of Pre-Distribution Members, other
          than Newly Formed AMO Members, for all Straddle Periods; and

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                    (iii) all Tax Returns of the Post-Distribution Allergan
          Group or any Post-Distribution Member or group of Post-Distribution
          Members for all Post-Closing Taxable Periods.

               (b) By AMO. AMO shall prepare and timely file (or cause to be
prepared and timely filed):

                    (i) all Tax Returns of the Newly Formed AMO Members for all
          Straddle Periods; and

                    (ii) all Tax Returns of the AMO Group or any AMO Member or
          group of AMO Members for all Post-Closing Taxable Periods.

          Section 2.2 Provision of Filing Information. AMO (or Allergan, as the
case may be) shall cooperate and assist Allergan (or AMO) in the preparation and
filing of all Tax Returns subject to Section 2.1 and any tax planning related
thereto, and shall submit to Allergan (or AMO) (i) all necessary filing
information in a manner consistent with past Tax Practices and (ii) all other
information reasonably requested by Allergan (or AMO) in connection with the
preparation of such Tax Returns and any such tax planning promptly after such
request, including permission to copy any applicable documents. In particular,
with respect to any Tax Return described in Section 2(a)(ii) that relates to an
AMO Member, AMO shall sign the Tax Return as prepared by Allergan and shall
otherwise cooperate with Allergan so as to enable Allergan to file the Tax
Return on behalf of AMO. It is expressly understood and agreed that Allergan's
(or AMO's) ability to discharge its Tax Return preparation and filing
responsibilities is contingent upon AMO (or Allergan) providing Allergan (or
AMO) with all cooperation, assistance and information reasonably necessary or
requested for the filing of such Tax Returns and that AMO (or Allergan) shall
indemnify Allergan (or AMO), if, and to the extent that, Taxes are increased as
a result of material inaccuracies in such information or failures to provide
such information and assistance on a timely basis.

          Section 2.3 Taxable Year and Allocation of Tax Items. AMO and Allergan
agree that, to the extent permitted by applicable law:

               (a) the Taxable Year of the AMO Members included in the
consolidated federal Income Tax Return of the Allergan Group for the Taxable
Period that includes the Closing Date (and all corresponding consolidated,
combined, unitary or similar state, foreign or local Income Tax Returns of the
Allergan Group) shall end at the close of business on the Closing Date, and the
AMO Group and each AMO Member shall begin a new Taxable Year for purposes of
such federal, state, foreign or local Income Taxes on the day after the Closing
Date;

               (b) the determination of the items of income to be included in
Tax Returns of the Allergan Group for the Straddle Period and Tax Returns of AMO
Members for the initial Post-Closing Taxable Period shall be determined by
Allergan in the exercise of its discretion on a reasonable and equitable basis
consistent with Treasury Regulation section 1.1502-76 or any similar provisions
under state, local or foreign law;

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               (c) for purposes of this determination, any Taxes attributable to
a Special Year-End Item shall be treated as occurring ratably throughout the
applicable Taxable Year; and

               (d) all federal, state, foreign or local Tax Returns shall be
filed consistently with the positions adopted by Allergan pursuant to this
Section 2.3.

          Section 2.4 Advance Review of Tax Returns.

               (a) At least fifteen (15) days prior to the filing of any Tax
Return (including amendments thereto) of a Pre-Existing AMO Member for a
Straddle Period (excluding any Tax Return which includes both a Pre-Existing AMO
Member and an entity other than a Pre-Existing AMO Member), Allergan shall
provide AMO with a draft of such Tax Return. AMO and its Representatives shall
have the right to review all related work papers prior to the filing of any such
Tax Return. Allergan shall consult with AMO regarding AMO's comments with
respect to such Tax Returns and shall in good faith (i) consult with AMO in an
effort to resolve any differences with respect to the preparation and accuracy
of such Tax Returns, and (ii) consider AMO's recommendations for alternative
positions with respect to items reflected on such Tax Returns; provided,
however, that Allergan shall not be required to consider any such recommendation
if the result thereof would adversely affect the Taxes of the Allergan Group or
any Post-Distribution Member for any Taxable Period (including an increase in
the amount payable by Allergan pursuant to Section 3.2), and Allergan may
condition the acceptance of any such recommendation upon the receipt of
appropriate indemnification from AMO for any increases in Taxes that may result
from the adoption of the relevant alternative position.

               (b) In the case of each Tax Return (including amendments thereto)
subject to the conformity requirements of Section 2.5 and filed by AMO pursuant
to Section 2.1(b), AMO shall provide Allergan with a draft of any such Tax
Return at least fifteen (15) days prior to the filing thereof. Allergan and its
Representatives, shall have the right to review all related work papers prior to
the filing of any such Tax Return. AMO shall consult with Allergan regarding
Allergan's comments with respect to such Tax Returns and shall in good faith (i)
consult with Allergan in an effort to resolve any differences with respect to
the preparation and accuracy of such Tax Returns, their consistency with past
Tax Practices, and their consistency with the IRS Ruling and the Ruling Request,
and (ii) consider Allergan's recommendations for alternative positions with
respect to items reflected on such Tax Returns; provided, however, that AMO
shall not be required to consider any such recommendation if the result thereof
would adversely affect the Taxes of the AMO Group or any AMO Member for any
Taxable Period, and AMO may condition the acceptance of any such recommendation
upon the receipt of appropriate indemnification from Allergan for any increases
in Taxes that may result from the adoption of the relevant alternative position.

          Section 2.5 Consistent Positions on Tax Returns. AMO shall (a) prepare
all Tax Returns for Pre-Existing AMO Members filed pursuant to this Agreement
for all Taxable Years ended on or before December 31, 2004, in a manner
consistent with past Tax Practices, and (b) prepare all Tax Returns filed
pursuant to this Agreement in a manner consistent with the IRS Ruling and the
Ruling Request, except in either (a) or (b) as otherwise required by changes in
applicable

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law or material underlying facts, as the parties hereto shall otherwise consent
in writing, which consent shall not be unreasonably withheld, or as required by
a Final Determination.

                                  ARTICLE III.
                                PAYMENT OF TAXES

          Section 3.1 Pre-Closing Taxable Periods. Allergan shall pay and be
liable for all Taxes shown due and payable on all Tax Returns as filed pursuant
to Section 2.1(a)(i) hereof; provided, however, that AMO shall be liable for,
and shall indemnify Allergan for, the AMO Group Allocable Portion of such Taxes
shown to be due and payable on such Tax Returns as filed.

          Section 3.2 Straddle Periods.

               (a) Allergan shall pay and be liable for all Taxes shown due and
payable on all Tax Returns as filed pursuant to Section 2.1(a)(ii) hereof (other
than Tax Returns for Pre-Existing AMO Members); provided, however, that AMO
shall be liable for, and shall indemnify Allergan for, the AMO Group Allocable
Portion of such Taxes shown to be due and payable on such Tax Returns as filed.

               (b) AMO shall pay and be liable for all Taxes shown due and
payable on all Tax Returns as filed pursuant to Section 2.1(b)(i) hereof;
provided, however, that Allergan shall be liable for, and shall indemnify AMO
for, any Transaction Taxes shown to be due and payable on such Tax Returns as
filed.

               (c) AMO shall pay and be liable for all Taxes shown due and
payable on all Tax Returns of Pre-Existing AMO Members as filed by Allergan
pursuant to Section 2.1(a)(ii) hereof; provided, however, that Allergan shall be
liable for, and shall indemnify AMO for, the amount of the excess, if any, of
(i) such Taxes shown to be due and payable on such Tax Returns as filed over
(ii) the AMO Group Allocable Portion of such Taxes.

          Section 3.3 Post-Closing Taxable Periods.

               (a) Allergan shall pay and be liable for all Taxes shown to be
due and payable on all Tax Returns as filed pursuant to Section 2.1(a)(iii)
hereof.

               (b) AMO shall pay and be liable for all Taxes shown to be due and
payable on all Tax Returns as filed pursuant to Section 2.1(b)(ii) hereof.

          Section 3.4 Reimbursement Procedure for AMO Group Allocable Portion of
Taxes Shown on Tax Returns of Pre-Existing AMO Members for Straddle Periods.

               (a) Prior to the payment of Taxes shown due and payable on any
Tax Returns for a Pre-Existing AMO Member filed pursuant to Section 2.1(a)(ii)
hereof, (i) Allergan shall provide AMO with (A) an estimate of the AMO Group
Allocable Portion of the Taxes shown on such Pre-Existing AMO Member Tax Return
(the "Estimated AMO Group Allocable Portion") and (B) the amount of the Taxes
shown as due and payable on such Pre-Existing AMO Member Tax Returns (the
"Actual Taxes Payable"), (ii) AMO shall provide Allergan with a check made out

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to the appropriate taxing authority in the amount of the Actual Taxes Payable at
least ten (10) days prior to the filing of such Tax Return, and (iii) Allergan
shall pay AMO, within ten (10) days of Allergan's receipt of the amount set
forth in Section 3.4(a)(ii), an amount equal to the excess, if any, of (A) the
Actual Taxes Payable over (B) the Estimated AMO Group Allocable Portion.

               (b) Within one hundred twenty (120) days after Allergan files
each Tax Return for a Pre-Existing AMO Member filed pursuant to Section
2.1(a)(ii) hereof, Allergan shall notify AMO of the amount of Tax for which
Allergan is liable pursuant to Section 3.2(c) hereof. Any notification
contemplated by this Section 3.4(b) shall include the determination of the AMO
Group Allocable Portion for such Tax Return, supporting work papers and an
explanation of the basis for indemnification hereunder. Within sixty (60) days
of receipt of such notice, (i) AMO shall either notify Allergan of any
objections to the determination of the amount of Allergan's liability (whereupon
the parties shall use their best efforts to resolve any such disagreement), or
(ii) AMO (or Allergan, as the case may be) shall pay to Allergan (or AMO), in
accordance with Article VII, the amount by which the AMO Group Allocable Portion
for such Tax Return is greater than (or is less than) the Estimated AMO Group
Allocable Portion previously determined with respect to such Tax Return;
provided, however, that notwithstanding Section 7.1, any payment made after such
60-day period shall include interest at the Overdue Rate from the last day of
such 60-day period. Any disputes between the parties not settled within such
60-day period will be resolved through the Dispute Resolution Procedure in
accordance with Section 8.4 hereof.

          Section 3.5 Reimbursement Procedure for AMO Group Allocable Portion of
Taxes Shown on Other Tax Returns. Except as otherwise provided in Section 3.4
with respect to Pre-Existing AMO Member Straddle Period Tax Returns, within one
hundred twenty (120) days after Allergan files each Tax Return filed pursuant to
Section 2.1(a)(i) or 2.1(a)(ii) hereof, pursuant to which any AMO Member may be
liable for any Taxes pursuant to Sections 3.1 or 3.2, Allergan shall notify AMO
of the amount of Tax for which AMO is liable pursuant to Sections 3.1 and 3.2
hereof. Any notification contemplated by this Section 3.5 shall include the
determination of the AMO Group Allocable Portion for such Tax Return, supporting
work papers and an explanation of the basis for indemnification hereunder.
Within sixty (60) days of receipt of such notice, AMO shall either (a) notify
Allergan of any objections to the determination of the amount of AMO's liability
(whereupon the parties shall use their best efforts to resolve any such
disagreement) or (b) pay to Allergan the amount requested in the notice in
accordance with Article VII; provided, however, that notwithstanding Section
7.1, any payment made after such 60-day period shall include interest at the
Overdue Rate from the last day of such 60-day period. Any disputes between the
parties not settled within such 60-day period will be resolved through the
Dispute Resolution Procedure in accordance with Section 8.4 hereof.

          Section 3.6 Additional Taxes.

               (a) Except as otherwise provided in Article V, Allergan shall pay
and be liable for, and shall indemnify AMO for, all additional Taxes that shall
become due and payable as a result of a Final Determination with respect to all
Taxes attributable to Pre-Closing Taxable Periods or Straddle Periods (other
than Taxes for Straddle Periods for either Newly Formed AMO Members or
Pre-Existing AMO Members), regardless of whether such additional Tax is part of
the AMO Group Allocable Portion of such Taxes.

                                       11

<PAGE>

               (b) Except as otherwise provided in Article V, for additional
Taxes that shall become due and payable as a result of a Final Determination
with respect to all Taxes attributable to Post-Closing Taxable Periods, Allergan
shall pay and be liable for such additional Taxes of the Post-Distribution
Allergan Group or any Post-Distribution Member or group of Post-Distribution
Members, and AMO shall pay and be liable for such additional Taxes of the AMO
Group or any AMO Member or group of AMO Members.

               (c) Except as otherwise provided in Article V, for additional
Taxes that shall become due and payable as a result of a Final Determination
with respect to all Taxes attributable to Straddle Periods for Newly Formed AMO
Members, AMO shall pay and be liable for such additional Taxes.

               (d) Except as otherwise provided in Article V, for additional
Taxes that shall become due and payable as a result of a Final Determination
with respect to all Taxes attributable to Straddle Periods for Pre-Existing AMO
Members, AMO shall pay and be liable for such additional Taxes; provided,
however that Allergan shall be liable for, and shall indemnify AMO for, any such
additional Taxes attributable to Pre-Closing Straddle Periods.

               (e) For purposes of Section 3.6(d), no later than ten (10) days
before AMO is required to pay any additional Taxes that shall become due and
payable as a result of a Final Determination with respect to all Taxes
attributable to Straddle Periods for Pre-Existing AMO Members, Allergan shall
(i) provide AMO with an estimate of the amount of such additional Taxes
attributable to the Pre-Closing Straddle Period (the "Estimated Additional
Pre-Closing Straddle Period Portion"), and (ii) pay AMO an amount equal to the
Estimated Additional Pre-Closing Straddle Period Portion.

               (f) For purposes of Section 3.6(d), within one hundred twenty
(120) days after AMO pays any additional Taxes that shall become due and payable
as a result of a Final Determination with respect to all Taxes attributable to
Straddle Periods for Pre-Existing AMO Members (the "Actual Additional Taxes
Payable"), Allergan shall allocate the Actual Additional Taxes Payable between
Pre- and Post-Closing Straddle Periods in its discretion using any reasonable
and equitable method that it determines to be appropriate, and Allergan shall
notify AMO of the amount of such Taxes allocable to Pre-Closing Straddle Periods
(the "Additional Pre-Closing Straddle Period Portion"). Any notification
contemplated by this Section 3.6(f) shall include the basis for the allocation
of the Actual Additional Taxes Payable between the Pre- and Post-Closing
Straddle Periods and supporting work papers. Within sixty (60) days of receipt
of such notice, AMO shall either (i) notify Allergan of any objections to the
determination of the Additional Pre-Closing Straddle Period Portion (whereupon
the parties shall use their best efforts to resolve any such disagreement) or
(ii) Allergan (or AMO, as the case may be) shall pay to AMO (or Allergan), in
accordance with Article VII, the amount by which the Additional Pre-Closing
Straddle Period Portion is greater than (or is less than) the Estimated
Additional Pre-Closing Straddle Period Portion previously determined; provided,
however, that notwithstanding Section 7.1, any payment made after such 60-day
period shall include interest at the Overdue Rate from the last day of such
60-day period. Any disputes between the parties not settled within such 60-day
period will be resolved through the Dispute Resolution Procedure in accordance
with Section 8.4 hereof.

                                       12

<PAGE>

                                   ARTICLE IV.
              REFUNDS, CARRYBACKS, TAX BENEFITS, AND TAX ATTRIBUTES

          Section 4.1 Amendments to Tax Returns. Allergan shall be entitled to
amend Tax Returns filed by it pursuant to Section 2.1(a), and AMO shall be
entitled to amend Tax Returns filed by it pursuant to Section 2.1(b); provided,
however, that, AMO (or Allergan) shall not amend any Tax Return of a
Pre-Existing AMO Member (excluding any Tax Return which includes both a
Pre-Existing AMO Member and an entity other than a Pre-Existing AMO Member) with
respect to issues for which Allergan (or AMO) may be responsible in part for
Taxes under Section 3.6, except (a) pursuant to the settlement or other
resolution of an Audit subject to Article XI or (b) with Allergan's (or AMO's)
written consent (which consent shall not be unreasonably withheld), provided,
however, that such consent may be conditioned upon the receipt of appropriate
indemnification for any increases in liability for Taxes that may result from
the amendment; and, provided, however, that such prohibition shall not extend to
the correction of mathematical or material factual errors or other adjustments
necessary to conform such Tax Returns to applicable law or to comply with
Section 2.5.

          Section 4.2 Refunds of Taxes. Allergan shall be entitled to any refund
of Taxes for which Allergan would be ultimately liable pursuant to a Final
Determination of such Taxes under Section 3.6, and AMO shall be entitled to any
refund of Taxes for which AMO would be ultimately liable pursuant to a Final
Determination of such Taxes under Section 3.6. If Allergan or any
Post-Distribution Member (or AMO or any AMO Member, as the case may be) receives
a Tax refund to which AMO or any AMO Member (or Allergan or any
Post-Distribution Member) is entitled pursuant to this Agreement, Allergan (or
AMO) shall pay (in accordance with Article VII) the amount of such refund
(including any interest received thereon) to AMO (or Allergan) within thirty
(30) days after receipt thereof.

          Section 4.3 Carrybacks. AMO shall notify Allergan promptly of the
existence of any items of deduction, loss or credit (the "Carrybacks") arising
in a Post-Closing Taxable Year that may be carried back to a Pre-Closing Taxable
Period or Straddle Period of the Allergan Group or any Pre-Distribution Member
if AMO would like to utilize such Carrybacks. AMO may carry such deduction, loss
or credit back to a Pre-Closing Taxable Period or Straddle Period, but AMO
hereby expressly agrees (on its behalf and on behalf of all AMO Members and
successors thereto) that Allergan or any Post-Distribution Member is entitled to
and may retain any cash refund or reduction of a Tax liability or any other Tax
Benefit obtained by Allergan, any Post-Distribution Member, AMO or any AMO
Member as a result of any Carrybacks without compensation to AMO or any AMO
Member, unless Allergan, in its sole discretion, agrees to compensate AMO or an
AMO Member for the use of such Carrybacks.

          Section 4.4 Carryforwards. If any AMO Members have attributable to
them, under applicable federal and state Income Tax law (including, without
limitation, Code Section 1502 and the Treasury Regulations promulgated
thereunder), any net operating loss carryforwards, investment tax credit
carryforwards, alternative minimum tax credit carryforwards or foreign tax
credit carryforwards (the "Carryforwards"), the parties hereto agree that the
AMO Group and the AMO Members shall be exclusively entitled to use and benefit
from the Carryforwards without compensation to the Allergan Group or any
Pre-Distribution Member. Allergan hereby agrees to

                                       13

<PAGE>

take any action or make any election reasonably required to permit AMO and the
AMO Members to utilize the Carryforwards; provided, however, that no such action
or election shall be required if it would adversely affect in any way the Income
Tax liabilities of the Allergan Group or any Post-Distribution Member for any
Taxable Year. The parties also hereby agree that the provisions of this Section
4.4 shall apply with respect to any similar carryforwards available under
applicable state, foreign or local Tax law.

          Section 4.5 Determination of Tax Attributes. In a reasonable and
equitable manner consistent with applicable law, Allergan shall determine the
allocation of all tax attributes of the Pre-Distribution Allergan Group,
including, but not limited to, earnings and profits, basis and net operating
losses, between the Post-Distribution Allergan Group and the AMO Group. Allergan
and AMO agree to file all federal, state, foreign or local Tax Returns in a
manner consistent with such allocation except as otherwise required by either
changes in applicable law or a Final Determination.

          Section 4.6 Tax Benefits from Exercise of Allergan Stock Options by
AMO Employees. After the Closing Date, AMO shall notify Allergan at the end of
each quarter of any event occurring during such quarter that gives rise to any
deduction in respect of the exercise of an Allergan Stock Option by an
individual who is an employee of the AMO Group on the day after the Closing
Date. Notwithstanding anything to the contrary in this Agreement, Allergan shall
be entitled to, and, within thirty (30) days of providing notice to Allergan in
accordance with the preceding sentence, AMO shall pay Allergan an amount equal
to the value of, such deduction, less an amount equal to the Employment Taxes
payable by AMO on account of such exercise of an Allergan Stock Option;
provided, however, that if Allergan determines that, under applicable law,
Allergan is entitled to include such deduction on its Tax Returns, Allergan
shall notify AMO promptly of such determination, and Allergan (and not AMO)
shall be entitled to include such deduction on its Tax Return, in which case,
(a) AMO shall not be required to pay to Allergan an amount equal to the value of
such deduction, but (b) AMO shall indemnify Allergan against the loss of such
deduction pursuant to a Final Determination (less an amount equal to the
Employment Taxes payable by AMO on account of the exercise of such Allergan
Stock Option). For purposes of determining AMO's indemnification obligation
under this Section 4.6, if any, the value of any deduction shall be determined
on an assumed basis by multiplying the amount of any applicable deductions by
(a) 39%, (b) if no state Income Tax Benefit shall result therefrom (determined
on a hypothetical basis by using the highest marginal corporate Income Tax
rate), 35% (such percentages to increase or decrease on a
percentage-for-percentage basis with any subsequent increases or decreases in
the current 35% maximum marginal federal Income Tax rate for corporations, and
100% minus the maximum marginal federal Income Tax rate for corporations (e.g.,
65%) of any increases or decreases in the maximum marginal state or local Income
Tax rate for corporations), or (c) if the Allergan Stock Option is exercised by
an AMO Group employee employed in a foreign jurisdiction and if any foreign
Income Tax Benefits shall result to AMO therefrom, the overall effective
economic rate of Income Tax in the foreign jurisdictions in which the Income Tax
Benefits result. For example, if, after the Closing Date, an AMO employee
exercises an Allergan Stock Option with respect to which exercise $100 is
deductible by AMO (and no foreign Income Tax Benefit results to AMO therefrom),
AMO shall make an indemnification payment to Allergan (applying the
characterization set forth in Section 7.2) of $39 (less the amount of Employment
Taxes payable by AMO on account of the AMO employee's exercise of the Allergan
Stock Option).

                                       14

<PAGE>

The parties hereby agree that if there is a change in generally accepted
accounting principles related to the issuance or exercise of stock options,
Allergan and AMO will negotiate in good faith a reasonable and equitable
amendment to this Section 4.6 to compensate for such change.

                                   ARTICLE V.
                           DISTRIBUTION TAX TREATMENT

          Section   5.1 Section 355 Tax Treatment.

               (a) The parties expressly agree for all purposes to treat the
Distribution as a tax-free distribution under Code Section 355 in accordance
with the IRS Ruling and Ruling Request (the "Section 355 Tax Treatment"). Each
party hereto also expressly agrees (i) to comply (and to cause each of its
Affiliates to comply) with the representations set forth in the Ruling Request,
(ii) not to take (and to cause each of its Affiliates not to take) any action
(except where such action is required by law) that is inconsistent with the
treatment of the Distribution and all related transactions in accordance with
the Section 355 Tax Treatment, and (iii) to take (and to cause each of its
Affiliates to take) any and all actions reasonably available to such party (or
Affiliate) to support and defend the Section 355 Tax Treatment.

               (b) Notwithstanding anything to the contrary in Article III,
Sections 6.1 or 6.2 herein:

                    (i) If there is a Final Determination that results in the
          disallowance, in whole or in part, of the Section 355 Tax Treatment
          (other than Section 355(e) Gain, which is addressed by Section 5.2),
          and any AMO Member (and no Post-Distribution Member) has breached
          Section 5.1(a) or has taken any action after the Distribution which
          breach or action results in such disallowance, then AMO shall be
          liable for, and shall indemnify and hold each Post-Distribution Member
          harmless for, any Taxes and other Adverse Consequences which would not
          have occurred but for such disallowance.

                    (ii) If there is a Final Determination that results in the
          disallowance, in whole or in part, of the Section 355 Tax Treatment
          (other than Section 355(e) Gain, which is addressed by Section 5.2),
          and any Post-Distribution Member (and no AMO Member) has breached
          Section 5.1(a) or has taken any action after the Distribution which
          breach or action results in such disallowance, then Allergan shall be
          liable for, and shall indemnify and hold each AMO Member harmless for,
          any Taxes and other Adverse Consequences which would not have occurred
          but for such disallowance.

                    (iii) If there is a Final Determination that results in the
          disallowance, in whole or in part, of the Section 355 Tax Treatment,
          and if one or more Post-Distribution Members and one or more AMO
          Members have breached Section 5.1(a) or have taken action(s) after the
          Distribution which breach or action result in such disallowance, then
          any Taxes and other Adverse Consequences which would not have occurred
          but for such disallowance shall be allocated between

                                       15

<PAGE>

          Allergan and AMO in accordance with their responsibility for such
          Taxes and other Adverse Consequences as determined pursuant to the
          Dispute Resolution Procedure.

          Section   5.2 Section 355(e) Taxes.

               (a) Unless, for each Acquisition described in this Section
5.2(a), the Acquisition Approval Process is first satisfied at AMO's expense,
AMO shall not take or allow any action, and shall cause its Affiliates to
refrain from taking or allowing any action, which would result in the direct or
indirect Acquisition by one or more persons of either:

                    (i) any interest in AMO, regardless of size, either (A)
          during the six month period following the Closing Date or (B) for
          which Acquisition there was any agreement, understanding, arrangement
          or substantial negotiations during the six month period following the
          Closing Date; or

                    (ii) a fifteen percent (15%) or greater interest in AMO,
          measured either individually or when cumulated with all prior
          Acquisitions occurring after the Closing Date, during the two year
          period following the Closing Date.

               (b) As used herein with reference to any Acquisition, the
"Acquisition Approval Process" shall be satisfied if and only if all of the
following requirements are satisfied in the order set forth below:

                    (i) AMO notifies Allergan of the proposed Acquisition;

                    (ii) AMO obtains either (A) an opinion of a nationally
          recognized law firm or a nationally recognized accounting firm
          (acceptable in either case to Allergan), which opinion may be relied
          upon by Allergan, that such Acquisition will not be treated as part of
          a plan or series of transactions with the Distribution within the
          meaning of Section 355(e); or (B) a ruling from the IRS that such
          Acquisition will not be treated as part of a plan or series of
          transactions with the Distribution within the meaning of Section
          355(e), provided, however, that no such ruling from the IRS may be
          sought without the prior approval of Allergan;

                    (iii) AMO submits the opinion or ruling described in Section
          5.2(b)(ii) to Allergan for Allergan's review; provided that if AMO
          submits an opinion to Allergan and Allergan finds the opinion
          unsatisfactory, Allergan may require AMO to obtain a ruling for
          Allergan's review prior to Allergan's approval of the proposed
          Acquisition; and

                    (iv) Allergan provides AMO with written approval of the
          proposed Acquisition; provided, however, that

                         (A) for any Acquisition described by Section 5.2(a)(i),
               Allergan's approval may be provided or withheld at Allergan's
               sole discretion; and

                                       16

<PAGE>

                         (B) for any Acquisition described by Section 5.2(a)(ii)
               (and not also described by Section 5.2(a)(i)), Allergan may not
               unreasonably withhold its approval, and Allergan may withhold its
               approval only for reasons related to the Section 355 Tax
               Treatment or AMO's ability to satisfy its indemnification
               obligations under this Agreement.

               (c) If Section 355(e) of the Code is applicable to the
Distribution because the Distribution was part of a plan (or series of related
transactions) pursuant to which one or more persons acquired directly or
indirectly AMO stock representing a "50-percent or greater interest" within the
meaning of Section 355(e), AMO shall pay and be liable for, and shall indemnify
Allergan against any liability for, any resulting Taxes (the "Section 355(e)
Gain") and other Adverse Consequences regardless of whether the Acquisition
Approval Process has been satisfied.

               (d) If Section 355(e) of the Code is applicable to the
Distribution because the Distribution was part of a plan (or series of related
transactions) pursuant to which one or more persons acquired directly or
indirectly Allergan stock representing a "50-percent or greater interest" within
the meaning of Section 355(e), Allergan shall pay and be liable for, and shall
indemnify AMO against any liability for, the Section 355(e) Gain and other
Adverse Consequences.

                                   ARTICLE VI.
                                INDEMNIFICATION.

          Section   6.1 By Allergan.

               (a) Taxes. Subject to Article V, Allergan shall indemnify and
hold AMO and each AMO Member harmless (on an After-Tax Basis) against any and
all Taxes for which Allergan is ultimately liable pursuant to Article III,
taking into account any reimbursement obligations described therein.

               (b) Member Liability. Subject to Section 6.2 and Article V,
Allergan shall indemnify and hold AMO and each AMO Member harmless (on an
After-Tax Basis) against each and every liability for Taxes of the Allergan
Group asserted by any Taxing Authority under Treasury Regulation Section
1.1502-6, or any similar law, rule or regulation to the extent applicable to any
state, foreign or local Tax matters that are filed on a consolidated, combined,
unitary or similar basis.

          Section 6.2 By AMO. Subject to Article V, AMO shall indemnify and hold
the Allergan Group and each Post-Distribution Member harmless (on an After-Tax
Basis) against the Taxes for which AMO is ultimately liable pursuant to Article
III, taking into account any reimbursement obligations described therein.

          Section 6.3 Procedure for Indemnification. (a) Except as otherwise
provided in Sections 3.4, 3.5 or 3.6, AMO (or Allergan, as the case may be)
shall notify Allergan (or AMO) of any Taxes paid by the AMO Group or any AMO
Member (or the Allergan Group or any Post-Distribution Member) which are subject
to indemnification under this Article VI. Any notification

                                       17

<PAGE>

contemplated by this Section 6.3 shall include a detailed calculation
(including, if applicable, separate allocations of such Taxes between Pre- and
Post-Closing Taxable Periods and supporting work papers) and a brief explanation
of the basis for indemnification hereunder. Whenever a notification described in
this Section 6.3 is given, the notified party shall pay the amount requested in
such notice to the notifying party in accordance with Article VII, but only to
the extent that the notified party agrees with such request. To the extent the
notified party disagrees with such request, it shall, within thirty (30) days of
receipt of such notice, so notify the notifying party, whereupon the parties
shall use their best efforts to resolve any such disagreement. To the extent not
otherwise provided for in this Article VI or in Article VII, any payment made
after such 30-day period shall include interest at the Overdue Rate from the
date of receipt of original notice of such payment. Any disputes between the
parties not settled within such 30-day period will be resolved through the
Dispute Resolution Procedure in accordance with Section 8.4 hereof.

          Section 6.4 Indemnification Threshold. No Tax liability of $250,000
(the "Indemnification Threshold") or less in the aggregate shall in any event be
indemnified under this Agreement; and provided, however, that after the
Indemnification Threshold is met by either AMO or Allergan, all indemnification
payments owed pursuant to this Agreement shall be paid relating back to the
first dollar without regard to any Indemnification Threshold.

          Section 6.5 Loss of Tax Benefits. Appropriate payments shall be made
between the parties to take account of a Final Determination which results in a
loss of, or change in any Tax Benefit that has been taken into account for
purposes of determining the After-Tax Basis of any indemnification payment.

                                  ARTICLE VII.
      METHOD, TIMING AND CHARACTER OF PAYMENTS REQUIRED BY THIS AGREEMENT.

          Section 7.1 Payment in Immediately Available Funds; Interest; Method.
All payments made pursuant to this Agreement shall be made in immediately
available funds. Except as otherwise provided herein, any payment not made
within thirty (30) days of receipt of notice of such payment (or, in the case
where no notice of payment is required, within thirty (30) days of the date on
which such payment first becomes due and payable) shall thereafter bear interest
at the Overdue Rate from the date of receipt of notice of such payment (or the
date on which such payment first becomes due and payable, as the case may be).
All indemnification payments made pursuant this Agreement shall be made by and
between Allergan (and not any other Post-Distribution Member) and AMO (and not
any other AMO Member).

          Section 7.2 Characterization of Payments. Any payment (other than
interest thereon) made hereunder by Allergan to AMO or by AMO to Allergan shall
be treated by all parties for all purposes to the extent permitted by law as a
non-taxable dividend distribution or capital contribution made prior to the
close of business on the Closing Date, except to the extent that Allergan and
AMO treat a payment as the settlement of an intercompany liability. If, pursuant
to a Final Determination or as mutually agreed by Allergan and AMO, it is
determined that the receipt or accrual of any payment under this Agreement
(other than interest thereon) is, itself, subject to, or will result in the
payment by the recipient of, any Tax (including, but not limited to, Taxes
resulting

                                       18

<PAGE>

from the creation of an excess loss account or from the loss of Tax Benefits),
the party making such payment shall be required to pay an additional amount to
cover the additional Tax (on an After-Tax Basis), together with interest at the
Overdue Rate from the date the Tax accrues through the date of payment of the
additional amount. For example, if AMO and Allergan agree that an
indemnification payment of $100 made hereunder by AMO to Allergan is fully
taxable to Allergan but not deductible to AMO, AMO shall pay Allergan an amount
equal to $100 plus the amount of Tax that Allergan will pay as a result having
received the payment (assuming that the payment of additional Tax does not
result in a Tax Benefit, which would reduce the total payment calculated on an
After-Tax Basis).

                                  ARTICLE VIII.
           COOPERATION; DOCUMENT RETENTION; CONFIDENTIALITY; DISPUTES.

          Section 8.1 Provision of Cooperation, Documents and Other Information.
Upon reasonable request by a requesting party, Allergan and AMO shall promptly
provide (and shall cause their respective Affiliates to provide) such requesting
party with such cooperation and assistance, documents, and other information,
without charge, as may be necessary or reasonably helpful in connection with (a)
the preparation and filing of any original or amended Tax Return, (b) the
conduct of any Audit involving to any extent Taxes or Tax Returns within the
scope of this Agreement, or (c) the verification by a party of an amount payable
hereunder to, or receivable hereunder from, another party. Such cooperation and
assistance shall include, without limitation: (i) the provision on demand of
books, records, Tax Returns, documentation or other information relating to any
relevant Tax Return; (ii) the execution of any document that may be necessary or
reasonably helpful in connection with the filing of any Tax Return by the
Allergan Group, a Pre-Distribution Member, a Post-Distribution Member, the AMO
Group or an AMO Member, or in connection with any Audit of the type generally
referred to in the preceding sentence, including, without limitation, the
execution of powers of attorney and extensions of applicable statutes of
limitations with respect to Tax Returns which Allergan may be obligated to file
on behalf of AMO Members pursuant to Section 2.1; (iii) the prompt and timely
filing of appropriate claims for refund; and (iv) the use of reasonable best
efforts to obtain any documentation from a governmental authority or a third
party that may be necessary or helpful in connection with the foregoing. Each
party shall make its employees and facilities available on a mutually convenient
basis to facilitate such cooperation.

          Section 8.2 Retention of Books and Records. Allergan, each
Post-Distribution Member, AMO and each AMO Member shall retain or cause to be
retained all Tax Returns, and all books, records, schedules, work papers, and
other documents relating thereto, until the expiration of the later of (a) seven
(7) years from the close of the applicable Taxable Year, (b) all applicable
statutes of limitations (including any waivers or extensions thereof), (c) the
completion of any audits with respect to the applicable Taxable Year, and (d)
any retention period required by law (e.g., depreciation or inventory records)
or pursuant to any record retention agreement. The parties hereto shall notify
each other in writing of any waivers, extensions or expirations of applicable
statutes of limitations. The parties hereto shall provide at least thirty (30)
days prior written notice of any intended destruction of the documents referred
to in this Section 8.3. A party giving such a notification shall not dispose of
any of the foregoing materials without first obtaining the written approval
(which may not be unreasonably withheld) of the notified party and, in lieu of
destruction

                                       19

<PAGE>

or disposition, the notified party shall be permitted to take possession, at its
sole cost, of the foregoing materials which affect (or potentially affect) its
liability for Tax.

          Section 8.3 Confidentiality of Documents and Information. Except as
required by law or with the prior written consent of the other party, all Tax
Returns, documents, schedules, work papers and similar items and all information
contained therein which are within the scope of this Agreement shall be kept
confidential by the parties hereto and their Representatives, shall not be
disclosed to any other person or entity and shall be used only for the purposes
provided herein.

          Section 8.4 Disputes. If Allergan and AMO are unable to agree on any
calculation, numerical value, procedure or payment set forth in or required by
this Agreement, including, but not limited to, any dispute under Sections
3.4(b), 3.5, 3.6(f) or 6.3, such item shall be determined pursuant to the
Dispute Resolution Procedure.

                                   ARTICLE IX.
                                     AUDITS.

          Section 9.1 Status and Other Information Regarding Audits and
Disputes. Upon the receipt by Allergan or any Post-Distribution Member (or AMO
or any AMO Member, as the case may be) of notice of, or relating to, an Audit
which asserts, proposes or recommends a deficiency, claim or adjustment
(including the receipt of a IRS Form 5701 or comparable form from any other
Taxing Authority) that, if sustained, would affect the liability for Taxes which
are subject to indemnification by AMO (or Allergan) under this Agreement,
Allergan (or AMO) shall promptly notify AMO (or Allergan) in writing of the
receipt of such notice. Allergan (or AMO) shall use reasonable best efforts to
keep AMO (or Allergan) advised as to the status of Audits pertaining to Taxes
subject to indemnification by AMO (or Allergan) under this Agreement. To the
extent relating to any such issue, Allergan (or AMO) shall promptly furnish AMO
(or Allergan) with copies of any inquiries or requests for information from any
Taxing Authority or any other administrative, judicial or other governmental
authority, as well as copies of any revenue agent's report or similar report,
notice of proposed adjustment or notice of deficiency.

          Section   9.2 Control and Settlement.

               (a) Pre-Closing Taxable Periods. Allergan shall have the right to
control, and to represent the interests of all affected taxpayers in, any Audit
relating, in whole or in part, to any Pre-Closing Taxable Period, and to employ
counsel of its choice at its expense.

               (b) Straddle Periods.

                    (i) Allergan shall have the right to control, and to
          represent the interests of all affected taxpayers in, any Audit
          relating, in whole or in part to any Straddle Period (other than Tax
          Returns for a Straddle Period of a Newly Formed AMO Member which Tax
          Returns do not also include an entity other than a Newly Formed AMO
          Member), and to employ counsel of its choice at its expense; provided,
          however, that, with respect to such issues for which AMO may be
          responsible in part for Taxes under Section 3.6 and Article V,
          Allergan shall in good

                                       20

<PAGE>

          faith (A) afford AMO full opportunity to observe at any such
          proceedings and to review any submissions related to such issues, (B)
          consult with AMO regarding its comments with respect to such
          proceedings and submissions in an effort to resolve any differences
          with respect to Allergan's positions with regard to such issues, (C)
          in good faith consider AMO's recommendations for alternative positions
          with respect to such issues, (D) advise AMO of the reasons for
          rejecting any such alternative position, and (E) provide AMO with
          final copies of such submissions. In the event of any disagreement
          regarding the proceedings, Allergan shall have the ultimate control of
          the Audit and any settlement or other resolution thereof.

                    (ii) AMO shall have the right to control, and to represent
          the interests of all affected taxpayers in, any Audit relating, in
          whole or in part to any Straddle Period for any Newly Formed AMO
          Members, and to employ counsel of its choice at its expense; provided,
          however, that AMO shall in good faith (A) afford Allergan full
          opportunity to observe at any such proceedings and to review any
          submissions related thereto and (B) not agree to settle any such
          proceeding in a manner that could reasonably be expected to have a
          material and adverse effect on (x) any indemnification obligation of
          Allergan hereunder or (y) any Tax liability of the Allergan Group or
          any Post-Distribution Member for any Taxable Period, without the prior
          written consent of Allergan, which consent shall not be unreasonably
          withheld.

               (c) Post-Closing Taxable Periods.

                    (i) Allergan shall have the right to control, and to
          represent the interests of all affected taxpayers in, any Audit
          relating solely to any Post-Closing Taxable Period of the
          Post-Distribution Allergan Group or any Post-Distribution Member, and
          to employ counsel of its choice at its expense.

                    (ii) AMO shall have the right to control, and to represent
          the interests of all affected taxpayers in, any Audit relating solely
          to any Post-Closing Taxable Period of the AMO Group or any AMO Member,
          and to employ counsel of its choice at its expense; provided, however,
          that for any Audit of Tax Returns for Taxable Years ending on or
          before December 31, 2004, AMO shall in good faith (A) afford Allergan
          full opportunity to observe at any such proceedings and to review any
          submissions related thereto and (B) not agree to settle any such
          proceeding in a manner that could reasonably be expected to have a
          material and adverse effect on (x) any indemnification obligation of
          Allergan hereunder or (y) any Tax liability of the Allergan Group or
          any Post-Distribution Member for any Taxable Period, without the prior
          written consent of Allergan, which consent shall not be unreasonably
          withheld.

                                   ARTICLE X.
                                 MISCELLANEOUS.

                                       21

<PAGE>

          Section 10.1 Effectiveness. This Agreement shall be effective from and
after the Closing Date and shall survive until the expiration of any applicable
statute of limitations.

          Section 10.2 Entire Agreement. This Agreement and the Distribution
Agreement, together with all documents and instruments referred to herein and
therein constitute the entire agreement and supersede and terminate all prior
agreements and understandings, both written and oral, among the parties with
respect to the subject matter hereof.

          Section 10.3 Guarantees of Performance. Allergan and AMO hereby
guarantee the complete and prompt performance by the members of their respective
Affiliated Groups of all of their obligations and undertakings pursuant to this
Agreement. If after the Closing Date either Allergan or AMO shall be acquired by
another entity such that 50% or more of its common stock is in common control by
the acquirer, such acquirer shall, by making such acquisition, simultaneously
agree to jointly and severally guarantee the complete and prompt performance by
the acquired corporation and any Affiliate of the acquired corporation of all of
their obligations and undertakings pursuant to this Agreement.

          Section 10.4 Severability. The invalidity of any portion hereof shall
not affect the validity, force or effect of the remaining portions hereof. If it
is ever held that any restriction hereunder is too broad to permit enforcement
of such restriction to its fullest extent, each party agrees that a court of
competent jurisdiction may enforce such restriction to the maximum extent
permitted by law, and each party hereby consents and agrees that such scope may
be judicially modified accordingly in any proceeding brought to enforce such
restriction.

          Section 10.5 Indulgences, etc. Neither the failure nor any delay on
the part of any party hereto to exercise any right under this Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right preclude any other or further exercise of the same or any other right, nor
shall any waiver of any right with respect to any occurrence be construed as a
waiver of such right with respect to any other occurrence.

          Section 10.6 Governing Law. This Agreement shall be governed and
construed in accordance with the laws of the State of California, without regard
to any applicable conflicts of laws.

          Section 10.7 Notices. All notices, requests, demands and other
communications required or permitted under this Agreement shall be made in the
manner provided in Section 12.09 of the Distribution Agreement.

          Section 10.8 Amendments. This Agreement may be amended at any time
only by written agreement executed and delivered by duly authorized officers of
AMO and Allergan.

          Section 10.9 Assignments. Neither this Agreement nor any of the
rights, interests or obligations hereunder shall be assigned by either of the
parties hereto (whether by operation of law or otherwise) without the prior
written consent of the other party. Subject to the preceding sentence, this
Agreement will be binding upon, inure to the benefit of and be enforceable by
the parties and their respective successors and assigns.

                                       22

<PAGE>

          Section 10.10 Headings; References. The article, section and paragraph
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement. All
references herein to "Article", "Sections" or "Exhibits" shall be deemed to be
references to Articles or Sections hereof or Exhibits hereto unless otherwise
indicated.

          Section 10.11 Counterparts. This Agreement may be executed in two or
more counterparts, all of which shall be considered one and the same agreement
and shall become effective when two or more counterparts have been signed by
each of the parties and delivered to the other parties, it being understood that
all parties need not sign the same counterpart.

          Section 10.12 Predecessors and Successors. To the extent necessary to
give effect to the purposes of this Agreement, any reference to any corporation,
Affiliated Group or member of an Affiliated Group shall also include any
predecessors or successors thereto, by operation of law or otherwise.

          Section 10.13 Tax Elections. Nothing in this Agreement is intended to
change or otherwise affect any previous tax election made by or on behalf of the
Allergan Group. Allergan, as common parent of the Allergan Group, shall continue
to have sole discretion to make any and all elections with respect to all
members of the Allergan Group for all Taxable Periods for which it is obligated
to file Tax Returns under Section 2.1(a). AMO, as common parent of the AMO
Group, shall have sole discretion to make any and all elections with respect to
all members of the AMO Group for all Taxable Periods for which it is obligated
to file Tax Returns under Section 2.1(b).

          Section 10.14 Specific Performance. The parties hereto agree that the
remedy at law for any breach of this Agreement will be inadequate and that any
party by whom this Agreement is enforceable shall be entitled to specific
performance in addition to any other appropriate relief or remedy. Such party
may, in its sole discretion, apply to a court of competent jurisdiction for
specific performance or injunctive or such other relief as such court may deem
just and proper in order to enforce this Agreement or prevent any violation
hereof and, to the extent permitted by applicable laws, each party waives any
objection to the imposition of such relief.

          Section 10.15 Further Assurances. Subject to the provisions hereof,
the parties hereto shall make, execute, acknowledge and deliver such other
instruments and documents, and take all such other actions, as may be reasonably
required in order to effectuate the purposes of this Agreement and to consummate
the transactions contemplated hereby. Subject to the provisions hereof, each
party shall, in connection with entering into this Agreement, performing its
obligations hereunder and taking any and all actions relating hereto, comply
with all applicable laws, regulations, orders and decrees, obtain all required
consents and approvals and make all required filings with any governmental
agency, other regulatory or administrative agency, commission or similar
authority and promptly provide the other party with all such information as it
may reasonably request in order to be able to comply with the provisions of this
sentence.

          Section 10.16 Governing Provisions for Certain Foreign Taxes. To the
extent that an Implementation Agreement for a particular foreign jurisdiction
explicitly addresses the allocation and liability of VAT, sales and similar
Taxes, and as a consequence the Implementation Agreement

                                       23

<PAGE>

conflicts with certain provisions of this Agreement, then, to such extent, the
provisions of the Implementation Agreement shall govern.

          Section 10.17 Setoff. All payments to be made by any party under this
Agreement shall be made without setoff, counterclaim or withholding, all of
which are expressly waived.

          Section 10.18 Expenses. Except as specifically provided in this
Agreement or in a Related Agreement, all fees and expenses incurred in
connection with this Agreement and the consummation of the transactions
contemplated hereby shall be paid by the party incurring such expenses.

          Section 10.19 Rules of Construction. Any ambiguities shall be resolved
without regard to which party drafted the Agreement.

                           [Signature Page To Follow]

                                       24

<PAGE>

          IN WITNESS WHEREOF, Allergan and AMO have caused this Agreement to be
signed by their respective duly authorized officers as of the date 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

                                      S-1<PAGE>

                                                                   EXHIBIT 10.39

                       MANUFACTURING AND SUPPLY AGREEMENT

THIS MANUFACTURING AND SUPPLY AGREEMENT this ("Agreement") is effective as of
June 30, 2002 the ("Effective Date") by and between Allergan, Inc., a Delaware
corporation, on behalf of itself and its Affiliates ("Allergan"), having an
address at 2525 Dupont Drive, Irvine, California 92612 and Advanced Medical
Optics, Inc., a Delaware corporation, on behalf of itself and its affiliates
("AMO").

                                    RECITALS

A. Prior to the date hereof, AMO was a wholly owned subsidiary of Allergan.

B. Pursuant to that certain Contribution and Distribution Agreement, by and
between Allergan and AMO (the "Contribution Agreement"), Allergan by the
effective date hereof, will have spun off AMO by distributing a special dividend
to all of the Allergan stockholders consisting of all of the outstanding shares
of stock of AMO held by Allergan (the "Distribution").

C. Allergan currently manufactures and distributes various optical medical
devices and contact lens care products for AMO, each as more particularly
described in Exhibit "A" attached hereto.

D. AMO desires that Allergan continue, after the Distribution, to manufacture
and supply to AMO the Product(s) (as that term is defined herein) upon the terms
and conditions contained herein and Allergan desires to manufacture and supply
to AMO the Product(s) upon the terms and conditions contained herein.

                                    AGREEMENT

NOW THEREFORE, in consideration of the covenants contained herein, the above
recitals, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

Section 1. Definitions

A. "Affiliates" of a party shall mean any corporation or other business entity
controlling, controlled by, or under common control with such party.

B."Batch" shall mean that predetermined  quantity of finished  Product(s) listed
on and associated with a Product on Exhibit "A".

C. "CE Mark" shall mean the mark of conformity with one or more applicable
directives of the European Union.

D. "CFR" shall mean the United States Code of Federal Regulations.

                                                                          Page 1

<PAGE>

E. "COA" has the meaning given to it in Section 2.4.

F. "Control" (including "controlling", "controlled by" and "under common control
with" of any party, corporation, or other business entity) shall mean the direct
or indirect ownership of more than fifty percent (50%) of the voting or income
interest in such party, corporation, or other business entity, respectively.

G. "Contract Year" shall mean the twelve (12) month period following the
Effective Date of this Agreement and each subsequent twelve (12) month period
during the term of this Agreement.

H. "Cost" shall mean Allergan's cost to manufacture including direct labor,
direct material and overhead. Allergan uses full absorption inventory costing,
which includes all direct and indirect production costs. Direct and indirect
production costs are those costs incident to and necessary for production or
manufacturing operations or processes. Cost shall be consistent with the costing
methodology used by Allergan in determining 2002 prices and will be determined
in accordance with generally accepted accounting principles ("GAAP").

I. "cGMPs" shall mean the standards established by the FDA for current Good
Manufacturing Practices, as specified in 21 CFR Section 820 Quality System
Regulations; 21CFR Section 807 Establishment Registration and Device Listing for
Manufacturers of Devices; 21 CFR Section 803 Medical Device Reporting; 21CFR
Section 801 Labeling; 21CFR Section 810 Medical Devices Recall Authority; 21 CFR
Section 806 Medical Devices Reports of Corrections and Removals; the Federal
Food, Drug and Cosmetic Act, as amended; EN46000, 1 and/or 2; ISO 9001 and/or
9002; and the standards established in the European Union's Council Directive
93/42/EEC of 6/14/93 Concerning Medical Devices (the "MDD").

J. "ECR" (Engineering Change Request) shall mean the master change control form
defined by the Allergan Worldwide Specifications Change Control System used to
document requested changes to Product(s) Specifications or Packaging and
Labeling Specifications.

K. "Ex works" (or "EXW") means that the seller delivers title when it places the
goods at the disposal of the buyer at the seller's premises or another named
place not cleared for export and not loaded on any collecting vehicle, as
defined in the International Chamber of Commerce Incoterms 2000.

L. "Excess Materials" shall mean Raw Materials on hand and ordered consistent
with AMO's forecast at the agreed upon lead times and for which the forecasted
use is in excess of twelve (12) months. This would be a result of cancellations,
reschedules or other changes caused by AMO.

M. "Facilities" shall mean, collectively, the Waco Facility, the Westport
Facility and the Sao Paulo Facility and "Facility" shall refer to any one of
them, as the case maybe.

N. "FCA", as defined in the International Chamber of Commerce Incoterms 2000,
means that the seller delivers the goods, cleared for export, to the carrier
named by the buyer at the named place. The seller is responsible for loading the
goods. If the delivery to the carrier takes place at the buyer's named place,
the seller shall not be responsible for unloading the goods.

                                                                          Page 2

<PAGE>

O. "FDA" means the United States Food and Drug Administration.

P. "Lead-time" shall mean the time period that begins on the day Allergan
receives an order for the Product(s) and ends on the day Allergan is to deliver
the Product(s) to AMO.

Q. "Obsolete Inventory" shall mean (i) Raw Materials on hand that are no longer
in the Product(s) bill of material, (ii) Product(s) that are no longer
forecasted, or (iii) filters that are no longer used due to a mutually agreed
manufacturing process change.

R. "Packaging and Labeling Specifications" means the written specifications for
packaging and labeling the Product(s) set forth in Exhibit "B", which may be
amended from time to time by the written agreement of the parties.

S. "Product(s)" shall mean the products listed on Exhibit A hereto, which may be
amended from time to time by written agreement of the parties.

T. "Product(s) in Quarantine" shall have the meaning set forth in Section 4.1 of
this Agreement.

U. "Product(s) Specifications" shall mean the specifications set forth in
Exhibit "C", which may be amended from time to time by written agreement of the
parties.

V. "Quality Control" means the testing, other than clinical evaluation and on
going stability testing, associated with the manufacturing of the Product(s),
including but not limited to incoming component and Raw Material testing, in
process testing, and final testing, in accordance with cGMPs and the Product
Specifications.

W. "Quarantine Period" shall be sixteen (16) days.

X. "Raw Materials" shall mean all raw chemicals, packaging, labeling, filters,
components and work in process required to produce the Product(s).

Y. "Regulatory Approvals" means the approvals obtained through meeting the
requirements of the Federal Food, Drug and Cosmetic Act, as amended, and its
attendant regulations in addition to any approvals, licenses, registrations or
authorizations of any federal, state, local, or foreign regulatory agency,
department, bureau or other government entity, necessary for the manufacture,
storage, or export of Product(s) in the Territory.

Z. "Sao Paulo Facility" means the manufacturing plant operated by Allergan in
Sao Paulo Brazil as of the Effective date.

AA. "Territory" means the entire world.

BB. "Waco Facility" means the manufacturing plant operated by Allergan in Waco
Texas as of the Effective Date.

                                                                          Page 3

<PAGE>

CC. "Westport Facility" means the manufacturing plant operated by Allergan in
Westport Ireland as of the Effective Date.

Section 2. Manufacture and Sale of Product(s)

2.1  Subject to the terms of this Agreement and in compliance with cGMP's,
     Allergan shall manufacture and sell to AMO and AMO shall purchase from
     Allergan all Product(s) that AMO desires during the term of this Agreement
     in accordance with the Product(s) Specifications set out in Exhibit "C" and
     the Packaging and Labeling Specifications set out in Exhibit "B". Allergan
     will not make substantial changes to the manufacturing capabilities,
     processes or locations of the Facilities associated with the manufacture of
     Products for AMO without the prior written consent of AMO, including
     changes in significant subcontractors, suppliers or Raw Materials.

2.2  For any Product(s) with an expiration date, Allergan shall deliver those
     Product(s) with no less than seventy five percent (75%) of the original
     expiration date remaining, except that Vitrax shall be delivered with no
     less than fourteen (14) months of the expiration period remaining. Allergan
     will use its commercially reasonable efforts to (a) ensure that Product(s)
     are delivered with the maximum shelf life remaining and (b) ship Product(s)
     using the "first to expire shall be the first to ship" method. Allergan
     shall provide AMO with monthly written notice of all Product(s) in
     inventory with its expiration date. For the purpose of this Agreement, the
     expiration period ends on the last day of the month indicated on the label.

2.3  Allergan will manufacture all products in a good and workmanlike manner and
     will comply with and maintain all applicable federal, state, local, and
     environmental laws, ordinances and regulations, including but not limited
     to ISO 9002 and EN 46002 standards, as amended, and the Federal Food, Drug
     and Cosmetic Act as amended, including regulations relating thereto,
     pertinent to the services it performs relative to the manufacture of the
     Product(s).

2.4  Allergan shall test the Product(s) and provide the results for each Batch
     of Product(s) to AMO in the form of a certificate of analysis ("COA") as
     set forth in Exhibit "D".

2.5  Allergan and AMO operations management personnel shall meet quarterly to
     review and discuss operations, including but not limited to performance,
     quality of Product(s), delivery timeliness, forecast accuracy, and cost
     analysis.

Section 3. Forecast and Purchase Orders

3.1  AMO shall send purchase orders to Allergan Facilities on the following
     basis:

     (a)  Waco Facility: AMO shall send purchase orders to the Waco facility on
          a (i) weekly basis for all Product(s) that are to be shipped in the
          United States and (ii) on a

                                                                          Page 4

<PAGE>

          monthly basis, on the second Tuesday of each month, for all orders of
          Product(s) that are to be shipped outside the United States;

     (b)  Westport Facility: AMO shall send purchase orders to the Westport
          Facility on a monthly basis, on the second Tuesday of each month,
          except for orders of "A" Product(s) identified on Exhibit "H", which
          orders shall be provided on a weekly basis; and

     (c)  Sao Paulo Facility: AMO shall send purchase orders to the Sao Paulo
          Facility on a monthly basis on the second Tuesday of each month.

     The minimum information required on all purchase orders shall be part
     number, description, quantity, price and delivery date. The purchase order
     quantities must be in multiples of the Batch quantities indicated in
     Exhibit "A", and the combined total purchase order quantities must consume
     manufacturing batch quantities indicated in Exhibit "C".

3.2  Allergan shall acknowledge AMO's purchase orders within ten (10) working
     days of receipt, and shall deliver the Product(s) as indicated on the
     purchase order. Allergan is allowed a delivery quantity tolerance of plus
     or minus ten percent (10%) of the quantity requested. Except as provided in
     Section 13, AMO shall provide Lead-time on the shipment of Product(s) from
     the Allergan Facilities as follows:

     (a)  Waco Facility: AMO shall provide Lead-time of no less than fifty-six
          (56) calendar days for Product(s) to be distributed in the U.S. and no
          less than eighty (80) days for other Product(s). Lead-times for
          Product(s) distributed in the U.S. do not include the Quarantine
          Period.

     (b)  Sao Paulo Facility: AMO shall provide Lead-time of no less than
          seventy-seven (77) calendar days. Sao Paulo Lead-time includes the
          Quarantine Period; and

     (c)  Westport Facility: AMO shall provide Lead-time of no less than
          forty-two (42) calendar days for "A" Product(s) identified on Exhibit
          H shipped to Europe, and between fifty-six (56) and eighty (80)
          calendar days for all other Product(s). Westport Lead-times for "A"
          Product(s) include the Quarantine Period.

     (d)  The terms for delivery shall be FCA, Allergan's Facility.

3.3  On a monthly basis AMO shall also provide Allergan with an eighteen (18)
     month forecast by month of its orders for all Product. Such forecast will
     be provided to Waco on the second Friday of each month and to Westport and
     Sao Paulo on the second Tuesday of each month. Allergan shall review such
     forecasts provided by AMO and advise AMO by the last calendar day of each
     month if Allergan anticipates any manufacturing capacity or raw material
     constraint that would make Allergan unable to achieve the requested
     volumes. Allergan shall use commercially reasonable efforts to maintain
     capacity to achieve the forecasted volumes.

                                                                          Page 5

<PAGE>

     The following forecast period for the Facilities shall be deemed firm
     purchase orders for the Product(s):

     (a)  Waco Facility: The first eight (8) weeks of each eighteen (18) month
          forecast;

     (b)  Westport Facility: The first three (3) months of each eighteen (18)
          month forecast; and

     (c)  Sao Paulo Facilities: The first eleven (11) weeks of each eighteen
          (18) month forecast.

     For "A" Product(s) identified in Exhibit "H", month three (3) of the
     forecast will be used by Allergan to manufacture Product(s) and AMO will
     take delivery of these Product(s) over the following two (2) months.

3.4  The following forecast period for the Facilities shall be binding for the
     purpose of Allergan purchasing Raw Materials and will also be used to plan
     manufacturing resource requirements:

     (a)  Waco Facility: The first four (4) months of each eighteen (18) month
          forecast;

     (b)  Westport Facility: The first six (6) months of each eighteen (18)
          month forecast; and

     (c)  Sao Paulo Facility: The first six (6) months of each eighteen (18)
          month forecast.

     A firm purchase order quantity for a specific  Product may not vary by more
     than  twenty-five  percent (25%) from the forecasted  quantity  provided to
     Allergan  three (3) months  previous to the purchase order for the Westport
     and Sao Paulo  facilities and two (2) months previous to the purchase order
     for the Waco facility.

     Example:

     In January AMO submits a forecast for Product X of 10,000 units to be
     delivered in June. In April AMO's firm order for Product X for delivery in
     June cannot be less than 7,500 units or more than 12,500 units. Subsequent
     forecasts for Product X must reflect the preceding firm order variability
     constraints.

Section 4. Quarantine Shipments

4.1  AMO is responsible for the Quality Control release of Product(s) into the
     commercial marketplace once Allergan has released Product(s) to AMO. Except
     as provided below, Allergan shall be responsible for the timely performance
     of all Quality Control procedures which shall occur before the release of
     Product to AMO or its named carrier and Quality Control release of
     Product(s) to AMO or its named carrier. Allergan may deliver to AMO or its
     named carrier for shipment to an AMO warehouse or location,

                                                                          Page 6

<PAGE>

     which has been previously approved by AMO for such quarantine shipments,
     Product(s) that has been manufactured in its Waco or Westport facilities
     that has not yet been Quality Control released to AMO ("Products in
     Quarantine"). It is AMO's obligation to ensure that it has qualified AMO
     warehouses or locations that can accept Products in Quarantine and the
     parties anticipate that most Products in Quarantine will be held at an AMO
     warehouse or location. For such Products in Quarantine, Allergan shall
     provide a COA to AMO when such Products in Quarantine have successfully
     passed Quality Control. Allergan may not deliver any Products in Quarantine
     to an AMO distributor or customer. For deliveries by Allergan of Products
     in Quarantine for shipment to a pre-approved AMO warehouse or location, AMO
     shall be responsible for quarantine storage of Product(s) and shall ensure
     that the Product(s) does not enter the commercial market until Allergan has
     provided AMO with a COA.

4.2  AMO or its warehouse agents shall have appropriate physical or electronic
     systems that prevent the delivery of Products in Quarantine to customers
     until Allergan has provided a COA to AMO.

4.3  Any indirect and direct incremental costs associated with holding inventory
     at Allergan locations until Quality Control release is obtained, that has
     not already been included in the cost of the Products(s) shall be charged
     to AMO in the amount of the actual such costs plus ten percent (10%).

Section 5. Pricing and Payment

5.1  The initial pricing for the Product(s) shall be as set forth in Exhibit
     "A".

5.2  The parties agree to adjust prices once per year, as necessary, to reflect
     changes in Cost and currency exchange rates so that pricing of the
     Product(s) equals Cost plus an additional ten percent (10%). The adjusted
     pricing will utilize unit volume for AMO Product(s) submitted to Allergan
     on the second Tuesday of October each calendar year. The volume forecasted
     for January through December will be the "Base Units" and used to develop
     pricing. Once the pricing is developed, Allergan will communicate the new
     pricing to AMO by the following November 15. New prices will be effective
     for Product(s) shipped on or after the following January 1.

5.3  On an annual basis, a pricing "true up" calculation will be made during the
     beginning of the first calendar quarter immediately following the cut off
     for year-end shipments. This pricing "true up" calculation will be made
     based on the actual volume of Product(s) shipped during the pricing period
     versus the volume submitted by AMO on the second Tuesday of October that
     was used to calculate the invoiced prices. The volume to be utilized for
     the 2002 calendar year pricing "true up" will be the July through December
     2002 shipped units for each Allergan facility as identified in Exhibit "F".
     The result of this true up will either be invoiced or credited to AMO no
     later than March 31 following the true up period.

                                                                          Page 7

<PAGE>

5.4  The pricing "true up" calculation will be equal to the actual units shipped
     less Base Units, multiplied by the Product's current overhead cost
     multiplied by the Product's fixed cost factor, multiplied by one hundred
     ten (110%) percent: i.e., [(Actual units shipped - Base Units) * (Product's
     current overhead cost * Product's fixed cost factor)] * 110%.

     The  fixed cost factors for the term of the agreement are as follows:

     Vitrax - Sixty-five (65%) percent
     All  other products - Seventy-five (75%) percent

     For calculation purposes the unit volume will be adjusted in the event that
     Allergan is unable to ship a significant quantity of Product(s) ordered by
     AMO in accordance with the terms of this Agreement.

5.5  If a Product(s) Specification or Packaging and Labeling change results in a
     cost change, Allergan will adjust the price as soon as the change becomes
     effective.

5.6  Terms of payment shall be net forty-five (45) days from the date of
     delivery to AMO's specified carrier, provided however, that payment shall
     be net sixty (60) days for any shipments to Asia and Australia, and
     provided further that payment shall be extended an extra day for each day
     Quality Control exceeds the Quarantine Period. All Product(s) shall be
     shipped FCA, Allergan's Facility. Allergan will not be responsible for
     damage caused to Product(s) while in transit to AMO. Any storage and
     freight fees are in addition to the Product(s) prices contained within
     Exhibit "A".

Section 6. Ongoing Stability Testing and Reference Standards

6.1  Allergan shall perform all on-going stability testing of the Product(s)
     according to ICH guidelines then in effect as long as Allergan is
     manufacturing and supplying the specific Product(s) to AMO. During the
     period Allergan manufactures the Product(s) for which stability testing is
     being performed, the cost of such stability testing is included in the
     prices set forth in Exhibit "A".

6.2  On the earlier of (i) the expiration or termination date of this Agreement
     or (ii) six months after Allergan has delivered to AMO its final order for
     a discontinued Product(s) to AMO, AMO will be solely responsible for all
     on-going stability testing of the Product(s). It is the responsibility of
     AMO to select the laboratory that AMO will use and the physical storage
     location for stability and retained samples. Allergan will ship Ex works
     all stability and retained samples to AMO's designated storage location no
     later than the earlier of (i) six months after Allergan had delivered its
     final order for that Product(s) or (ii) the expiration or termination date
     of this Agreement.

6.3  It is the sole responsibility of AMO to transfer all analytical and
     stability testing technology to a new site or sites of its choice. Allergan
     will provide its existing written methods for these tests to AMO to assist
     AMO in this effort. Additionally, Allergan will permit AMO to send not more
     than two (2) AMO representatives to Allergan's European

                                                                          Page 8

<PAGE>

     Technical Center for one three-day period for each Product not currently
     manufactured (as of the Effective Date) by AMO in its Hangzhou
     manufacturing facility to observe technology associated with such
     formulation. By way of example, the Product Total(R) is manufactured in the
     Westport Facility but not in AMO's Hangzhou manufacturing facility, and
     thus AMO may request a three-day period for this Product. On the other
     hand, Complete(R) brand Multipurpose Solution is manufactured in AMO's
     Hangzhou manufacturing facility and thus no three-day period is available
     for this Product.

     In the event AMO wishes a three-day period of observation for a formula, it
     shall make such request in writing. Allergan's European Technical Center
     shall accommodate that request at the next regularly scheduled test period
     for that Product formula. During that three-day period, AMO's
     representatives may observe Allergan's analysts as they perform the testing
     and may reasonably ask questions concerning testing procedures and
     practices, which Allergan's analysts will attempt to answer in good faith.

6.4  Allergan will provide to AMO its existing written procedures which are used
     to establish the chemical reference standards necessary to release and
     perform stability testing on Product(s). Until Product(s) are discontinued
     under the terms of this Agreement, Allergan will supply to AMO the
     reference standards that it requires to maintain its production in
     Hangzhou. Once AMO discontinues a Product under the terms of this
     Agreement, all chemical reference standards associated with that Product
     shall be the sole responsibility of AMO.

6.5  On-going stability testing costs incurred by Allergan on Products that AMO
     has discontinued from being manufactured by Allergan are the responsibility
     of AMO. The direct and indirect costs associated with that testing plus ten
     (10%) percent will be charged to AMO separately. Allergan will invoice AMO
     for on-going stability related to these Product(s) on a quarterly basis
     which will be payable by AMO within thirty (30) days.

Section 7. Product(s) Specifications and Documentation

AMO, by means of an ECR submitted to Allergan, may make changes to the Packaging
and Labeling Specifications from time to time. Allergan will make all changes to
the Packaging and Labeling Specifications requested by AMO on the ECR if the
parties agree on the applicable price and material terms associated with the
change. All terms and conditions regarding such change shall be negotiated in
good faith by the parties. AMO agrees to pay all third party supplier fees
charged to Allergan for set up, plus ten percent (10%), including charges for
printing plates, artwork and tooling. AMO must approve amounts in excess of
$1,200 before such amounts are incurred. Allergan will issue AMO an invoice for
all related costs with payment due within thirty (30) days of invoice receipt.
If the ECR change affects an open purchase order, Allergan will advise AMO of
the impact on delivery date. Unused Raw Materials as a result of the ECR will be
considered Obsolete Inventory and dispositioned as provided in Section 9.

Section 8. Long Lead Time Raw Materials

                                                                          Page 9

<PAGE>

8.1  AMO authorizes Allergan to purchase the (i) long lead time Raw Materials,
     (ii) minimum buy items and (iii) economic order quantities of Raw
     Materials, listed in Exhibit E, in accordance with AMO's forecast
     requirements. These materials may be in excess of six (6) months supply.

8.2  AMO further authorizes Allergan to purchase minimum buy items or economic
     order quantities of Raw Materials not listed in Exhibit E as reasonably
     necessary to support material requirements planning which may exceed
     authorized forecasts and purchase orders, subject to AMO written approval
     for all purchases ordered in excess of six (6) months forecast for Westport
     and Sao Paulo facilities or four (4) months for the Waco facility.

Section 9. Excess Materials and Obsolete Inventory

9.1  All Raw Materials in Allergan's possession and on order on the Effective
     Date of this Agreement shall be considered to have been purchased to
     support AMO's future purchase orders to Allergan and any Excess Material or
     Obsolete Inventory associated with these Raw Materials is the
     responsibility of AMO. Allergan will use commercially reasonable efforts to
     return Raw Material for credit and cancel open orders if it is determined
     that the Raw Material is Excess Material or Obsolete Inventory.

9.2  Allergan shall provide to AMO a monthly written report identifying all Raw
     Materials on hand for which the forecasted use is in excess of six (6)
     months. Allergan will notify AMO of Excess Materials and Obsolete Inventory
     and associated costs on a quarterly basis. At Allergan's discretion, AMO
     shall purchase, via purchase order, all Excess Inventory and Obsolete
     Inventory at Allergan's Cost. Terms will be FCA.

Section 10. New Product(s)

10.1 In the event that AMO desires to commercialize and Allergan agrees to
     manufacture items not contained in Exhibit "A", both parties may amend
     Exhibit "A" in writing to reflect the new Product(s). AMO agrees to bear
     all direct and indirect costs associated with new product validations, as
     submitted to AMO in a cost quotation. Further, AMO acknowledges that while
     a validation is intended to challenge the design of a new Product, Allergan
     will not be held liable for the outcome, provided Allergan has performed
     its activities, as defined in mutually approved protocols.

10.2 In the event AMO desires to conduct new Product validations during the term
     of this Agreement, AMO will submit to Allergan a Master Validation Plan and
     required validation protocols for approval, which shall not be unreasonably
     withheld. Mutual approval is required, as indicated by the signatures of
     both parties on the Master Validation Plan, as well as the required
     protocols. Following approval, Allergan will provide a cost quotation to
     AMO listing all Allergan costs associated with the validation including
     clinical supplies. Upon approval of such costs, AMO will submit a purchase
     order to Allergan reflecting the costs as detailed in AMO's cost quotation.
     Allergan will

                                                                         Page 10

<PAGE>

     invoice AMO upon completion of each validation activity detailed in the
     cost quotation which shall be payable by AMO within thirty (30) days of
     invoice receipt.

10.3 The Lead-time for new Product(s) launches will be stipulated by a project
     plan as agreed to in writing by both parties. The project plan will include
     forecast requirements for the new Product(s) and define lead time for the
     initial deliveries of Product. In the event that the Raw Material is
     purchased pursuant to the Master Validation Plan and such Raw Material is
     unusable upon completion of the project, the Raw Material will be treated
     as Obsolete Inventory. Upon completion of the validation project,
     subsequent purchase requirements will follow the purchase order and
     forecast process contained within Section 3 of this Agreement.

10.4 Allergan will provide AMO with cost estimates for the remaining portion of
     any validations in progress as of the Effective Date. Upon approval of such
     costs, AMO will submit a purchase order to Allergan for the remaining
     costs, to be invoiced by Allergan upon completion of each validation
     activity. If AMO elects to cancel any validation in progress, Allergan will
     invoice all unpaid costs incurred to date, payable by AMO within thirty
     (30) days of receipt.

Section 11. Miscellaneous

Allergan and AMO recognize and agree that following the Effective Date it may be
necessary or desirable for AMO to provide to Allergan Raw Materials or other
goods to facilitate the performance by Allergan of its obligations under this
Agreement. To the extent that AMO provides such Raw Materials or other goods to
Allergan without payment of consideration by Allergan and such Raw Materials or
other goods are used to manufacture products for AMO, the parties agree that the
value of such Raw Materials or goods will not be included in Allergan's fully
allocated cost to manufacture Product(s) for AMO under this Agreement. For
administrative convenience, Allergan will remove the value of such AMO provided
Raw Material or other goods from invoices to AMO by providing AMO with a credit
during the first three months of this Agreement in the amount of the value of
the Raw Material or other goods plus ten percent (10%). Allergan will supply to
AMO those items listed in Exhibit "G" in accordance with the terms of this
Agreement except as modified in Exhibit "G".

Section 12. Term and Termination

12.1 The Term of this Agreement shall begin on the Effective Date and end at
     midnight on the day prior to the three (3) year anniversary of the
     Effective Date.

12.2 This Agreement may be immediately terminated by either of the parties for
     cause by giving written notice to the other upon the occurrence of any of
     the following events:

     (a)  The other party breaches any material provision of this Agreement and
          fails to substantially cure such breach within thirty (30) days
          following the receipt from the

                                                                         Page 11

<PAGE>

          non-breaching party of a written notice of such breach; which notice
          reasonably specifies the extent and nature of such breach.

     (b)  The other party (i) commences a voluntary case or other proceeding
          seeking liquidation, reorganization or other relief with respect to
          its debts under any bankruptcy, insolvency, or other similar law now
          or hereafter in effect; (ii) makes a general assignment for the
          benefit of creditors, (iii) becomes insolvent, (iv) ceases doing
          business, and/or (v) takes any corporate action to authorize any of
          the foregoing.

12.3 AMO shall have the right to terminate this Agreement in its entirety at any
     time upon providing twelve (12) months written notice to Allergan. AMO may
     also discontinue the manufacture of any individual Product upon providing
     twelve (12) months written notice to Allergan. AMO shall send firm purchase
     orders to Allergan six (6) months prior to expiration or termination of
     this Agreement for all Product(s) AMO desires Allergan to deliver during
     the six (6) month period prior to termination. Allergan agrees to review
     these orders by the last calendar day of the month and advise AMO that it
     will be able, or unable, to achieve the requested volumes with either (i)
     confirmation of the purchase order(s) or (ii) notice of specific
     feasibility issues. Allergan shall use commercially reasonable efforts to
     maintain capacity in order to achieve the requested volumes.

12.4 Upon expiration or termination of this Agreement, the rights and
     obligations of the parties pursuant to this Agreement shall cease, except
     as follows: (i) Obligations of confidentiality and use of information under
     Section 16 of this Agreement shall survive such expiration or termination;
     (ii) the indemnity obligations under Section 17 shall survive such
     expiration or termination; and (iii) expiration or termination of this
     Agreement for any reason by a party shall not relieve the parties of any
     obligation accruing prior to such expiration or termination.

12.5 It is AMO's sole responsibility to transfer the technology required to
     manufacture Product(s) from Allergan to other manufacturers upon the
     expiration or termination of this Agreement. Allergan's assistance in such
     transfer will be provided at either the Waco Facility, Westport Facility or
     Sao Paulo Facility, as applicable, under the same conditions, both in terms
     of duration and substantive assistance, as the analytical technology
     transfer assistance described in Section 6.3.

12.6 Upon expiration of this Agreement, or in the event this Agreement is
     terminated for any reason including force majeure, AMO shall purchase all
     Raw Materials and Product(s) existing at the time of expiration or
     termination at Cost, provided that such Raw Materials and Product(s) were
     produced or purchased pursuant to Section 3 or Section 8 in response to
     actual purchase orders and forecasts submitted by AMO. Payment is due
     within thirty (30) days of invoice receipt from Allergan.

12.7 Upon expiration or termination of the Agreement, AMO has the option to
     purchase from Allergan, at Allergan's depreciated book value, production
     assets used by Allergan solely to manufacture Product(s), for AMO. Allergan
     will provide a list of these production

                                                                         Page 12

<PAGE>

     assets to AMO twelve (12) months prior to the expiration of the Agreement.
     AMO must submit purchase orders for these assets at least six (6) months
     prior to the termination of the Agreement. AMO will be responsible for
     removal, crate and freight on this equipment.

12.8 Upon expiration or termination of this Agreement, AMO shall assume sole
     responsibility for all reference standards and ongoing stability testing of
     the Product(s). All stability and retained samples will be shipped by
     Allergan EXW to the physical storage location of AMO's choice at AMO's
     request, but no later than six (6) months from the expiration or
     termination of the Agreement. Allergan will cooperate with AMO in the
     stability testing technology transfer to a new site, to the extent provided
     in Section 6.3.

Section 13. Rejections and Claims

13.1 Once the Product(s) is Quality Control released by Allergan, Allergan will
     not accept any claims for rework or rejection of the Product(s) unless the
     Product(s) is determined by both Allergan and AMO to fail to meet the
     Packaging and Labeling Specifications in Exhibit "B" or the Product(s)
     Specifications in Exhibit "C". Upon such a rejection or upon the request
     and requirement by Allergan that a Product in Quarantine be returned to
     Allergan because it cannot be Quality Control released and without
     prejudice to any of AMO's other rights under this Agreement, Allergan will
     have the sole discretion to rework or replace the Product(s) with
     conforming Product(s) as soon as possible thereafter. In addition, Allergan
     will reimburse AMO for the rejected Product(s) shipping and storage costs,
     and disposal fees within thirty (30) days from notification by AMO of such
     costs and fees.

13.2 Allergan and AMO agree that in the event of a disagreement regarding
     whether the Product meets the specifications, they shall first attempt to
     resolve disputes by mutual agreement of the parties. If any dispute is not
     resolved within thirty (30) days following written notification, both
     parties agree to submit the rejected unit to a mutually acceptable
     independent test facility. Further, both Allergan and AMO shall accept the
     results of the testing performed by that facility as binding with regard to
     that Batch. The expense of such testing shall be borne by the losing party.

Section 14. Product Warranty

Allergan warrants that the Product(s) supplied under this Agreement shall, when
they leave Allergan's possession and control, conform with the Packaging and
Labeling Specifications in Exhibit "B" and the Product(s) Specifications in
Exhibit "C",

Section 15. Regulatory

15.1 AMO will be responsible for obtaining and maintaining all worldwide
     Regulatory Approvals and any amendments or supplements as required in order
     for AMO to sell or distribute the Product(s) worldwide. Allergan shall
     provide routine and customary information and data to AMO for the purpose
     of seeking or transferring Regulatory

                                                                         Page 13

<PAGE>

     Approvals. AMO will be responsible for maintaining Product complaint files
     and for submitting reports to Allergan, the FDA and all other regulatory
     agencies as appropriate. AMO shall, in a timely manner, provide to Allergan
     trend reports of Product(s) complaints and summaries of material
     correspondence or conversations with the FDA or other government agencies
     regarding the quality of the Product(s).

15.2 AMO, at AMO's expense, shall be responsible for handling all complaints,
     inquiries and any medical or non-medical device reporting requirements
     related to the Product(s) manufactured hereunder, including the expense of
     any related investigation and Product(s) testing performed by AMO. At the
     written request of AMO, Allergan will investigate manufacturing related
     complaints at Allergan's cost. A written report will be provided to AMO
     within forty-five (45) days following Allergan's receipt of the
     nonconforming product. If Allergan receives any information regarding real
     or potential adverse reactions or defects of the Product(s) or any
     information that might otherwise constitute a complaint about the
     Product(s), Allergan shall promptly provide to AMO all information that it
     has concerning the same. AMO shall have responsibility to comply with all
     federal, state and local laws and their foreign counterparts regarding the
     reporting of such medical and non-medical device reports and complaints.
     AMO shall promptly provide Allergan with trend reports summarizing any
     medical or non-medical reports or complaints. Each party shall reasonably
     cooperate with the other in sharing information that may constitute a
     medical or non-medical device complaint related to Product(s) and shall
     designate a representative responsible for the exchange of such information
     and all other regulatory information required to be shared under this
     Agreement.

15.3 AMO shall have the right, at AMO's expense, to declare any recall of, or
     field corrective action to, any Product(s) manufactured by Allergan for AMO
     after consultation with Allergan. Allergan agrees to indemnify AMO for that
     portion of the expenses in any such recall directly attributable to a
     breach by Allergan of its obligations under Section 2.3 or any of the
     warranties provided in this Agreement.

15.4 AMO shall promptly inform Allergan of the existence and substance of any
     inquiry, investigation or inspection initiated by any government agency,
     department or body relating to the manufacture of the Product(s) during the
     term of this Agreement. The existence of any such inquiry, investigation or
     inspection shall not alone constitute a breach of this Agreement or excuse
     any performance due under this Agreement.

15.5 Allergan shall permit AMO or its agents, once each calendar year, for a
     period not to exceed three days, during reasonable business hours and upon
     at least 72 hours notice, access to inspect the Facilities where the
     Products are manufactured, handled, stored or tested. AMO or its agents may
     observe all processes relating to the manufacture, storage, handling, or
     testing of the Products and all manufacturing, handling, storage and test
     records regarding the Products. Allergan shall provide reasonable and
     customary assistance during such inspections.

     Allergan shall extend inspection privileges to agents of the FDA or other
     governmental authorities, as required. Allergan shall notify AMO within 24
     hours of any such

                                                                         Page 14

<PAGE>

     inspection related to the Product(s).  In addition,  Allergan shall provide
     AMO with  copies of any and all  inspection  reports  from the FDA or other
     relevant   governmental   authorities  regarding  the  manufacture  of  the
     Product(s) within three (3) days of receipt of such reports.

Section 16. Confidentiality

The parties acknowledge that it may be necessary or desirable, before or during
the performance of this Agreement, to exchange information in order to
facilitate the manufacture and supply of Product(s), as contemplated hereby.
Allergan possesses proprietary and trade secret information, including, but not
limited to, its manufacturing capabilities, methods and processes and financial
information related thereto, and AMO possesses proprietary and trade secret
information, including, but not limited to, the Product(s), the Product(s)
Specifications, the Packaging and Labeling Specifications and marketing and
financial information related thereto. Each party desires to preserve the
confidential nature of such information and agrees as follows. Confidential
Information of a disclosing party shall be clearly marked "confidential" at the
time of disclosure, or indicated as such in a written memorandum delivered to
the receiving party within thirty (30) days following the date of disclosure. A
party receiving Confidential Information from a disclosing party shall not use
the Confidential Information except in furtherance of this Agreement and shall
not disclose Confidential Information to any third party other than to a
receiving party's employees and agents who agree to be bound by an obligation to
keep such Confidential Information secret and who have a need to know such
information in order to further the purposes of this Agreement. This obligation
shall survive the termination of this Agreement, and shall remain binding on the
parties hereto for a period of five (5) years following the date of such
disclosure. Allergan Confidential Information shall not include intellectual
property or confidential information transferred, assigned or licensed to AMO
under the Intellectual Property Assignment and License Agreement executed by the
parties concurrently herewith. Such intellectual property or confidential
information shall be AMO Confidential Information. This Agreement imposes no
obligation on a receiving party with regard to that portion of the Confidential
Information which a receiving party can demonstrate by written records was known
to it prior to the Effective Date; or which is now generally known to the
public, or becomes generally known in the future other than by breach of this
Agreement by a receiving party; or which is lawfully disclosed to a receiving
party by a third party who is not obligated to the disclosing party to retain
such information in confidence; or which is required to be produced pursuant to
a legal proceeding, provided the receiving party gives the disclosing party
prompt prior written notice of such requirement. Disclosure of Confidential
Information under this Agreement will create no license, right, interest or
ownership in any such information in a receiving party.

Section 17. Indemnification

Each party (the "Indemnitor") shall indemnify the other (the "Indemnitee") for
any and all Liability or Loss (as defined below) it incurs from any and all
claims, suits, demands or proceedings (collectively referred to as "Claims")
brought against it by unrelated third parties for personal injury, death, or
damage to real or personal property arising out of the Indemnitor's negligence,
willful misconduct or breach of warranty under this Agreement. Without limiting

                                                                         Page 15

<PAGE>

the foregoing, AMO agrees to indemnify and defend Allergan for any Liability or
Loss Allergan incurs from any Claim brought against Allergan alleging that
Allergan has infringed the intellectual property rights of a third party by
virtue of properly performing its obligations to manufacture Products pursuant
to Packaging and Labeling Specifications and the Product(s) Specifications under
this Agreement. For purposes of indemnification under this section, "Liability"
or "Loss" shall include, but shall not be limited to, all defense costs,
settlement costs, court costs, damages, interests, penalties, judgments,
expenses, and reasonable fees of attorneys and professionals. The parties agree
that the Indemnitee shall only be entitled to such indemnification if: (a) the
Indemnitee had, at its own expense, promptly given the Indemnitor written notice
of such Claims upon their filing or creation; and (b) the Indemnitor had been
granted the right to take control of the settlement and defense of such Claims
with counsel reasonably acceptable to the Indemnitee in exchange for the
Indemnitor's written agreement to accept the defense and all liability for the
claim without reservation. The Indemnitee shall at all times reasonably
cooperate in the settlement and defense of all Claims and shall make available
all records, materials and other relevant matter reasonably requested by the
Indemnitor in connection with such Claims. No party shall have the right to
settle any Claims in a manner that materially diminishes the rights or interests
of the other without that party's prior written consent, which shall not be
unreasonably withheld or delayed. The Indemnitor shall not be liable for any
settlement made without its prior written consent. These indemnification
obligations shall survive the expiration or termination of this Agreement.

Section 18. Notices

Any notices to be given under this Agreement must be in writing and delivered
either in person, by any method of mail (postage prepaid) requiring return
receipt, or by overnight courier, to the party to be notified at its address
given below, or at any address such party has previously designated by prior
written notice to the other. Notice shall be presumptively deemed to be
sufficiently given for all purposes upon the earlier of: (a) the date of actual
receipt; (b) if mailed, three calendar days after the date of postmark; or (c)
if delivered by overnight courier, the next business day the overnight courier
regularly makes deliveries.

If to AMO:

Advanced Medical Optics, Inc.
1700 East St. Andrew Place
P.O. Box 25162
Santa Ana, California 92799-5162
Attn:  Vice President, Operations
Fax:

with a copy to the General Counsel at the same address.

                                                                         Page 16

<PAGE>

If to Allergan:
Allergan, Inc.
2525 Dupont Drive
Irvine, California 92612
Attn: Manager of Contracts
Fax:  (714) 246-5598

With a copy to the General Counsel at the same address.

Section 19. Force Majeure

Except for the obligation to make payment when due, each party shall be excused
from liability for the failure or delay in performance of any obligation under
this Agreement by reason of any event beyond such party's reasonable control
including but not limited to Acts of God, fire, flood, explosion, earthquake, or
other natural forces, war, civil unrest, accident, destruction or other
casualty, any act, inaction or delay of any government or government agency, any
lack or failure of transportation facilities, any lack or failure of supply of
raw materials, any strike or labor disturbance. Such excuse from liability shall
be effective only to the extent and duration of the event(s) causing the failure
or delay in performance and provided that the party has not caused such event(s)
to occur. Notice of a party's failure or delay in performance due to force
majeure must be given to the other party within three (3) calendar days after
its occurrence. All delivery dates under this Agreement that have been affected
by force majeure shall be tolled for the duration of such force majeure. In no
event shall any party be required to prevent or settle any labor disturbance or
dispute.

Section 20. Assignment

This Agreement is binding upon and inures to the benefit of the parties to it,
and to their successors and assigns. No party may assign or delegate any or all
of its rights or obligations under this Agreement without the prior written
consent of the other party to this Agreement. Any assignment or delegation, or
attempt at the same, made in the absence of such prior written consent shall be
void and without effect. Either party may, however, without notice or consent
and at its sole discretion, assign any or all of its rights and obligations
under this Agreement to an Affiliate of such party.

Section 21. Governing Law

This Agreement shall be construed, and the rights of the parties determined, in
accordance with the laws of the State of California, without regard to that
State's rules regarding choice or conflict of laws.

Section 22. Relationship between the Parties

Following the Effective Date, the parties will have no ownership interest in the
other and their relationship, as established by this Agreement, is solely that
of Buyer and Seller. This Agreement does not create any partnership, joint
venture or similar business relationship between the parties.

                                                                         Page 17

<PAGE>

Neither party is a legal representative of the other party, and neither party
can assume or create any obligation, representation, warranty or guarantee,
express or implied, on behalf of the other party for any purpose whatsoever.

Section 23. Intellectual Property

Allergan agrees that AMO individually, or through its Affiliates, is the sole
and exclusive owner of the Product(s) Specifications and/or Packaging and
Labeling Specifications (collectively defined as "Intellectual Property") in the
Territory. No such Intellectual Property is being assigned, licensed or
otherwise transferred to any person or entity hereunder. Allergan further agrees
that it has no rights to the Intellectual Property and that Allergan will not
contest or dispute the validity of or title to any Intellectual Property.
Allergan shall not take or cooperate in any action or threatened action which
might in any way impair or attack the Intellectual Property or the rights or
interests of AMO, its Affiliates, licensees or assignees in the same.

Section 24. Severability

If any provision of this Agreement is adjudged to be invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the remaining
provisions shall not in any way be affected or impaired, and the parties shall
use their best efforts to substitute a valid, legal, and enforceable provision
which, insofar as practical, implements the purposes of this Agreement.

Section 25. Waiver

The failure of either party to enforce, at any time or for any period of time,
the provisions hereof, or the failure of either party to exercise any option
herein shall not be construed as a waiver of such provision or option and shall
in no way affect that party's right to enforce such provisions or exercise such
option. No waiver of any provision hereof shall be deemed a waiver of any
succeeding breach of the same or any other provisions of this Agreement.

Section 26. Modification

This Agreement cannot be changed orally, and no modification of this Agreement
shall be recognized nor have any effect, unless the writing in which it is set
forth is signed by Allergan and AMO, nor shall any waiver of any of the
provisions of this Agreement be effective unless in writing and signed by the
party to be charged therewith.

Section 27. 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 sole and entire
understanding of the parties related to its subject matter, and supersedes all
oral or written agreements concerning this subject matter made prior to the date
of this Agreement.

                                                                         Page 18

<PAGE>

Section 28. Incorporation of Exhibits

Exhibits A, B, C, D, E, F, G, and H attached hereto are hereby incorporated
herein by this reference.

Section 29. Audit

Audit Rights. AMO, directly or through a third party, may audit the books,
records and operations of Allergan upon reasonable notice and during regular
business hours for the purpose of determining Allergan's compliance with the
terms of this Agreement. Allergan will cooperate with AMO and/or its independent
auditor in any such audit. Allergan shall provide AMO with information
reasonably requested before an on-site audit is to be conducted and shall
provide AMO with all information necessary to accurately complete the audit in a
timely fashion. Any information obtained during any such audit shall be
considered Confidential and shall be used only in connection with determining
compliance with the applicable terms of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Manufacturing and
Supply Agreement as of the date first written above.

--------------------------------------------------------------------------------
ALLERGAN, INC., a Delaware corporation   ADVANCED MEDICAL OPTICS, INC., a
                                         Delaware corporation

By:   /s/ Jacqueline Schiavo             By:   /s/ James V. Mazzo
   -------------------------------          ------------------------------------
Name:  Jacqueline Schiavo                Name:  James V. Mazzo
Title: Corporate Vice President,         Title: President and Chief Executive
          Worldwide Operations                     Officer
--------------------------------------------------------------------------------

                                                                         Page 19

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