Document:

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                                                                    EXHIBIT 10.7

                               SECOND AMENDMENT TO

                                 ALLERGAN, INC.

                           1999 MANAGEMENT BONUS PLAN

      The ALLERGAN, INC. 1999 MANAGEMENT BONUS PLAN (the "Plan") is hereby
amended, effective January 1, 2000, to clarify that "Change in Control" as used
in the Plan means the following and shall be deemed to occur if any of the
following events occur:

               (a) Any "person," as such term is used in Sections 13(d) and
       14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
       Act") (a "Person"), is or becomes the "beneficial owner," as defined in
       Rule 13d-3 under the Exchange Act (a "Beneficial Owner"), directly or
       indirectly, of securities of Allergan, Inc. (the "Company") representing
       (i) 20% or more of the combined voting power of the Company's then
       outstanding voting securities, which acquisition is not approved in
       advance of the acquisition or within 30 days after the acquisition by a
       majority of the Incumbent Board (as hereinafter defined) or (ii) 33% or
       more of the combined voting power of the Company's then outstanding
       voting securities, without regard to whether such acquisition is approved
       by the Incumbent Board;

               (b) Individuals who, as of the date hereof, constitute the Board
       of Directors of the Company (the "Incumbent Board"), cease for any reason
       to constitute at least a majority of the Board of Directors of the
       Company, provided that any person becoming a director subsequent to the
       date hereof whose election, or nomination for election by the Company's
       stockholders, is approved by a vote of at least a majority of the
       directors then comprising the Incumbent Board (other than an election or
       nomination of an individual whose initial assumption of office is in
       connection with an actual or threatened election contest relating to the
       election of the directors of the Company, as such terms are used in Rule
       14a-11 of Regulation 14A promulgated under the Exchange Act) shall, for
       the purposes of this Plan, be considered as though such person were a
       member of the Incumbent Board of the Company;

               (c) The consummation of a merger, consolidation or reorganization
       involving the Company, other than one which satisfies both of the
       following conditions:

                     (1) a merger, consolidation or reorganization which would
              result in the voting securities of the Company outstanding
              immediately prior thereto continuing to represent (either by
              remaining outstanding or by being converted into voting securities
              of another entity) at least 55% of the combined voting power of
              the voting securities of the Company or such other entity
              resulting

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              from the merger, consolidation or reorganization (the "Surviving
              Corporation") outstanding immediately after such merger,
              consolidation or reorganization and being held in substantially
              the same proportion as the ownership in the Company's voting
              securities immediately before such merger, consolidation or
              reorganization, and

                     (2) a merger, consolidation or reorganization in which no
              Person is or becomes the Beneficial Owner, directly or indirectly,
              of securities of the Company representing 20% or more of the
              combined voting power of the Company's then outstanding voting
              securities; or

              (d) The stockholders of the Company approve a plan of complete
       liquidation of the Company or an agreement for the sale or other
       disposition by the Company of all or substantially all of the Company's
       assets.

       Notwithstanding the preceding provisions, a Change in Control shall not
       be deemed to have occurred if the Person described in the preceding
       provisions is (1) an underwriter or underwriting syndicate that has
       acquired any of the Company's then outstanding voting securities solely
       in connection with a public offering of the Company's securities, (2) the
       Company or any subsidiary of the Company or (3) an employee stock
       ownership plan or other employee benefit plan maintained by the Company
       (or any of its affiliated companies) that is qualified under the
       provisions of the Internal Revenue Code of 1986, as amended. In addition,
       notwithstanding the preceding provisions, a Change in Control shall not
       be deemed to have occurred if the Person described in the preceding
       provisions becomes a Beneficial Owner of more than the permitted amount
       of outstanding securities as a result of the acquisition of voting
       securities by the Company which, by reducing the number of voting
       securities outstanding, increases the proportional number of shares
       beneficially owned by such Person, provided, that if a Change in Control
       would occur but for the operation of this sentence and such Person
       becomes the Beneficial Owner of any additional voting securities (other
       than through the exercise of options granted under any stock option plan
       of the Company or through a stock dividend or stock split), then a Change
       in Control shall occur.

       IN WITNESS WHEREOF, Allergan, Inc. hereby executes this Second Amendment
on the 30th day of December, 1999.

ALLERGAN, INC.

BY:  /s/ Francis R. Tunney, Jr.
     ----------------------------
     Francis R. Tunney, Jr.,
     Corporate Vice President--Administration,
     General Counsel and Secretary<PAGE>   1
                                                                    EXHIBIT 10.8

                                    ALLERGAN

                                      2000
                              MANAGEMENT BONUS PLAN

                                  JANUARY 2000

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PURPOSE OF THE PLAN

The Allergan, Inc. 2000 Management Bonus Plan (the "Plan") is designed to reward
eligible management-level employees for their contributions to providing
Allergan's stockholders increased value for their investment through the
successful accomplishment of specific financial objectives and individual
performance objectives.

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PLAN YEAR

The Plan year runs from January 1, 2000 through December 31, 2000 for all
locations that have a fiscal year beginning January 1 and ending December 31.
For the international locations with fiscal years beginning December 1 and
ending November 1, the Plan year is December 1, 1999 to November 30, 2000.

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ELIGIBILITY

All regular full-time and part-time employees of Allergan, Inc. and its
subsidiaries (the "Company") scheduled to work 20 or more hours per week in
salary grades 7E and above who are not covered by any other bonus or sales
incentive plan are eligible to participate in the Plan. Notwithstanding anything
in this Plan to the contrary, any individual shall not be eligible to
participate in the Plan if such individual (a) performs services for the Company
and is classified or paid as an independent contractor (regardless of his or her
classification for federal tax or other legal purposes) by the Company or (b)
performs services for the Company pursuant to an agreement between the Company
and any other person including a leasing organization. For the locations where
the Plan year is January 1, 2000 through December 31, 2000, the participants
must be employed on or before June 30, 2000; for the locations where the Plan
year is December 1, 1999 through November 30, 2000, the participants must be
employed on or before May 31, 2000. Participants must be actively employed by
the Company on the date bonuses are paid in order to be eligible to receive a
bonus. Participants who resign or are terminated for reasons other than those
noted below will receive no bonus. Bonuses, if any, for participants who become
eligible after the beginning of the plan year, retire (defined as age 55 or over
with at least 5 years of service), become disabled, die or transfer into a
position covered by another incentive plan will be prorated. Bonuses, if any,
for participants who are laid-off will be prorated provided the participant was
eligible for at least six months of the Plan year. All proration will be based
on the number of months of participation in the Plan during the Plan year.

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PERFORMANCE OBJECTIVES

Bonuses for Plan participants are based on both corporate performance and
individual performance in relation to pre-established objectives, as follows:

CORPORATE OBJECTIVES

-      EARNINGS PER SHARE--Corporate performance is measured in terms of
       Allergan, Inc.'s Earnings Per Share (EPS) performance. EPS is defined as
       net earnings from continuing operations as measured by Wall Street
       divided by the weighted average number of common and common equivalent
       shares on a diluted basis.

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-      OPERATING INCOME--Operating Income compared to budget will be considered
       for allocation of bonus pools by Business Unit/Function. Operating Income
       is defined as Net Sales minus Cost of Goods minus Selling and General
       Administrative expenses minus Research & Development minus allocated
       corporate interest where applicable.

INDIVIDUAL OBJECTIVES

       Management Bonus Objectives (MBOs) are prepared by each participant and
       his or her supervisor at the beginning of the Plan year and may be
       modified throughout the year as necessary. Objectives should reflect
       major results and accomplishments to be achieved in order to meet short-
       and long-term business goals that contribute to increased stockholder
       value. MBOs are expressed as specific, quantifiable measures of
       performance in relation to key operating decisions for the participant's
       business unit, such as managing inventory levels, receivables, expenses,
       or payables; increasing sales; eliminating unnecessary capital
       expenditures, etc.

       At the end of the Plan year, the supervisor evaluates the participant's
       performance in relation to his or her objectives in order to determine
       the size of the bonus award, if any. A more detailed description of how
       the award is calculated is provided under "Individual Bonus Award
       Calculation."

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BONUS POOL CALCULATION

The two components of this calculation are: Earnings Per Share; and Operating
Income.

BONUS POOL FUNDING - Bonuses are funded when the Company achieves the threshold
                     level of EPS performance. The level of bonus funding is
                     first determined by EPS performance as outlined in the
                     table below.

-      EARNINGS PER SHARE
<TABLE>
<CAPTION>
                              2000 EPS RANGE                BONUS % OF TARGET
                              --------------                -----------------
<S>                                                         <C>
                                  -$0.16                           40%
                                  -$0.13                           49%
                                  -$0.09                           58%
                                  -$0.06                           70%
                                  -$0.03                           83%
                                  TARGET                          100%
                                  +$0.03                          117%
                                  +$0.06                          130%
                                  +$0.09                          142%
                                  +$0.13                          151%
                                  +$0.16                          160%
</TABLE>

       If actual EPS results fall between the performance levels shown above,
       bonuses will be prorated accordingly.

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BONUS POOL DIFFERENTIATION BY BUSINESS UNIT/FUNCTION

-      OPERATING INCOME--The target bonus pool determined by EPS performance is
       modified for each business unit/function based on Operating Income
       results vs. budget. That is, a business unit that exceeds budget will
       receive a greater share of the total Company pool than a business unit
       that is below budget.

At the end of the year, the Chief Executive Officer of Allergan, Inc. may
recommend adjustments to the bonus funding levels to the Organization and
Compensation Committee (the "Committee") after consideration of key operating
results. When calculating EPS performance for purposes of this Plan, the
Committee has the discretion to include or exclude any or all of the following
items:

-      extraordinary, unusual or non-recurring items

-      effects of accounting changes

-      effects of financing activities

-      expenses for restructuring or productivity initiatives

-      other non-operating items

-      spending for acquisitions

-      effects of divestitures

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INDIVIDUAL BONUS AWARD CALCULATION

Target bonus awards are expressed as a percentage of the participant's year-end
annualized base salary. The target percentages vary by salary grade (see
Attachment No. 1).

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

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METHOD OF PAYMENT

Cash awards are paid following the close of the Plan year after the review and
authorization of bonuses by the Committee. Bonuses will be paid within 30 days
following management communication of the award, through the participant's
normal payroll channel. In the event of a Change in Control (as defined in
Attachment No. 2), bonuses will be paid within 30 days of the effective date of
the Change in Control.

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CHANGE IN CONTROL

If a Change in Control occurs after the close of the Plan year and Company
performance supports bonus pool funding, participants will be paid a bonus based
on performance in relation to the EPS target.

If the Change in Control occurs during the Plan year, participants will be paid
a bonus prorated to the effective date of the Change in Control and EPS
performance will be deemed to be the greater of:

-      100% of the EPS target or

-      the prorated actual year-to-date EPS performance

In either case, a participant's actual bonus may vary above or below the
targeted level according to the provisions outlined in "Individual Bonus Award
Calculation" above. Participants must be employed by the Company or its
successor on the effective date of the Change in Control in order to receive the
prorated payment, unless their employment is terminated for retirement, death,
disability or otherwise without cause. For purposes of this plan, "cause" shall
be limited to only three types of events: the willful refusal to comply with a
lawful, written instruction of the Board so long as the instruction is
consistent with the scope and responsibilities of the participant's position
prior to the Change in Control; dishonesty which results in a material financial
loss to the Company (or to any of its affiliated companies) or material injury
to its public reputation (or to the public reputation of any of its affiliated
companies); or conviction of any felony involving an act of moral turpitude.

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GENERAL

Management reserves the right to define corporate performance and individual
performance and to review, alter, amend, or terminate the Plan at any time. This
Plan does not constitute a contract of employment and cannot be relied upon as
such. Any questions regarding this Plan should be directed to the Human
Resources department or the Director, Compensation. This Management Bonus Plan
document supersedes any previous document you may have received.

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                                ATTACHMENT NO. 1

                                    ALLERGAN

                           2000 MANAGEMENT BONUS PLAN

                                  TARGET AWARDS
<TABLE>
<CAPTION>
                        SALARY GRADE                        TARGET BONUS*
<S>                                                         <C>
                             7E                                  10%
                             8E                                  15%
                             9E                                  20%
                            10E                                  25%
                            11E                                  30%
                            12E                                  35%
                            13E                                  40%
                            14E                                  50%
                            15E                                  55%
</TABLE>
----------------
*      Expressed as a percentage of year-end base salary.

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                                ATTACHMENT NO. 2
                          CHANGE IN CONTROL DEFINITION

"Change in Control" shall mean the following and shall be deemed to occur if any
of the following events occur:

               (a) Any "person," as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (a
"Person"), is or becomes the "beneficial owner," as defined in Rule 13d-3 under
the Exchange Act (a "Beneficial Owner"), directly or indirectly, of securities
of Allergan, Inc., a Delaware corporation ("Allergan") representing (i) 20% or
more of the combined voting power of Allergan's then outstanding voting
securities, which acquisition is not approved in advance of the acquisition or
within 30 days after the acquisition by a majority of the Incumbent Board (as
hereinafter defined) or (ii) 33% or more of the combined voting power of
Allergan's then outstanding voting securities, without regard to whether such
acquisition is approved by the Incumbent Board;

               (b) Individuals who, as of the date hereof, constitute the Board
of Directors of Allergan (the "Incumbent Board"), cease for any reason to
constitute at least a majority of the Board of Directors, provided that any
person becoming a director subsequent to the date hereof whose election, or
nomination for election by Allergan's stockholders, is approved by a vote of at
least a majority of the directors then comprising the Incumbent Board (other
than an election or nomination of an individual whose initial assumption of
office is in connection with an actual or threatened election contest relating
to the election of the directors of Allergan, as such terms are used Rule 14a-11
of Regulation 14A promulgated under the Exchange Act) shall, for the purposes of
this Agreement, be considered as though such person were a member of the
Incumbent Board of Allergan;

               (c) The consummation of a merger, consolidation or reorganization
involving Allergan, other than one which satisfies both of the following
conditions:

                       (1) a merger, consolidation or reorganization which would
result in the voting securities of Allergan outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of another entity) at least 55% of the combined
voting power of the voting securities of Allergan or such other entity resulting
from the merger, consolidation or reorganization (the "Surviving Corporation")
outstanding immediately after such merger, consolidation or reorganization and
being held in substantially the same proportion as the ownership in Allergan's
voting securities immediately before such merger, consolidation or
reorganization, and

                       (2) a merger, consolidation or reorganization in which no
Person is or becomes the Beneficial Owner directly or indirectly, of securities
of Allergan representing 20% or more of the combined voting power of Allergan's
then outstanding voting securities; or

               (d) The stockholders of Allergan approve a plan of complete
liquidation of Allergan or an agreement for the sale or other disposition by
Allergan of all or substantially all of Allergan's assets.

Notwithstanding the preceding provisions of this Section, a Change in Control
shall not be deemed to have occurred if the Person described in the preceding
provisions of this Section is (1) an underwriter or underwriting syndicate that
has acquired the ownership of any of Allergan's then outstanding voting
securities solely in connection with a public offering of Allergan's securities,
(2) Allergan or any subsidiary of Allergan or (3) an employee stock ownership
plan or other employee benefit plan maintained by Allergan (or any of its
affiliated companies) that is qualified under the provisions of the Internal
Revenue Code of 1986, as amended. In addition, notwithstanding the preceding
provisions of this Section, a Change in Control shall not be deemed to have
occurred if the Person described in the preceding provisions of this Section
becomes a Beneficial Owner of more than the permitted amount of outstanding
securities as a result of the acquisition of voting securities by Allergan
which, by reducing the number of voting securities outstanding, increases the
proportional number of shares beneficially owned by such Person, provided, that
if a Change in Control would occur but for the operation of this sentence and
such Person becomes the Beneficial Owner of any additional voting securities
(other than through the exercise of options granted under any stock option plan
of Allergan or through a stock dividend or stock split), then a Change in
Control shall occur.

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