MANAGEMENT BONUS PLAN

EXHIBIT 10.36

ALLERGAN

2007

MANAGEMENT BONUS PLAN

PURPOSE OF THE PLAN

The Allergan, Inc. 2007 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.

PLAN YEAR

The Plan year runs from January 1, 2007 through December 31, 2007.

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. Participants must be employed on or before June 30, 2007 in order to be eligible to receive a bonus. 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 (“normal retirement” is defined as termination of employment after the Plan participant has attained age 55, provided that such participant has been employed by the Company for a minimum of 5 years), 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.

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

u		Earnings Per Share (“EPS”) —EPS is defined as adjusted 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.
u		Revenue Growth in Local Currency —Net sales stated in constant local currency compared to the prior year. Specifically defined as the percentage change in annual net sales in constant local currency from the previous fiscal year end to the current fiscal year end (“Revenue Growth”). The purpose of net sales stated in constant local currency is to remove any impact on net sales growth from changes in currency exchange rates from year to year.
u		Research and Development (“R&D”) Reinvestment Rate —R&D expense as a percentage of revenue. Specifically defined as the total annual R&D expense as a percentage of annual net sales as of the current fiscal year end.
u		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, 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.”

BONUS POOL CALCULATION

The components of this calculation for bonus pool funding are: (1) EPS, (2) Revenue Growth and (3) R&D Reinvestment Rate.

BONUS POOL FUNDING — Bonuses are funded when the Company achieves a threshold level of target EPS performance. The level of bonus funding is determined by EPS performance, Revenue Growth and R&D Reinvestment Rate as outlined in the table below.

u

Earnings Per Share, Revenue Growth and R&D Reinvestment Rate

														R&D								TOTAL
2007 EPS		BONUS %				REVENUE				BONUS %				REINVEST.				BONUS %				BONUS % OF
RANGE		OF TARGET				GROWTH				OF TARGET				RATE				OF TARGET				TARGET
-$0.150			0.0	%			15.1	%			0.0	%			15.31	%			0.0	%			0.0	%
-$0.120			50.0	%			16.1	%			2.0	%			15.56	%			2.0	%			54.0	%
-$0.090			60.0	%			17.1	%			4.0	%			15.81	%			4.0	%			68.0	%
-$0.060			70.0	%			18.1	%			6.0	%			16.06	%			6.0	%			82.0	%
-$0.03			80.0	%			19.1	%			8.0	%			16.31	%			8.0	%			96.0	%
Target			90.0	%			20.1	%			10.0	%			16.56	%			10.0	%			110.0	%
$0.025			95.0	%			21.1	%			13.8	%			16.81	%			13.8	%			122.5	%
$0.050			100.0	%			22.1	%			17.5	%			17.06	%			17.5	%			135.0	%
$0.075			105.0	%			23.1	%			21.3	%			17.31	%			21.3	%			147.5	%
$0.100			110.0	%			24.1	%			25.0	%			17.56	%			25.0	%			160.0	%

Revenue Growth and R&D Reinvestment Rate bonus funding may not exceed target unless EPS performance is equal to or greater than target. If actual results fall between the performance levels shown above, bonuses will be prorated accordingly.

u

Operating Income —The target bonus pool determined by EPS, Revenue Growth and R&D Reinvestment Rate 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. m