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                                                                    EXHIBIT 10.7


                        THIRD AMENDMENT TO ALLERGAN, INC.
                      EXECUTIVE DEFERRED COMPENSATION PLAN

The ALLERGAN, INC. EXECUTIVE DEFERRED COMPENSATION PLAN (the "Plan") is hereby
amended to read as follows:

1. Section 2.17 of the Plan is amended in its entirety as follows:

                  2.17 Eligible Employees. "Eligible Employee" means an employee
         of the Company who is a U.S. local or U.S. based expatriate that is
         either exempt grade 9E and above or is employed in another executive or
         management position as approved by the Committee. An employee shall be
         treated as an Eligible Employee only upon selection and notification in
         writing of such status by the Committee and only if (a) he or she is
         not classified or paid as an independent contractor (regardless of his
         or her classification for federal tax or other legal purposes) by the
         Company and (b) he or she does not perform services for the Company
         pursuant to an agreement between the Company and any other person
         including a leasing organization. An employee shall cease to be an
         Eligible Employee if he or she is reclassified below exempt grade 9E or
         as an independent contractor or a leased employee by the Company,
         except that, upon reclassification below exempt grade 9E, any Deferral
         Election which has been made (and deferrals having commenced) may be
         completed.

2. The effective date of this Third Amendment shall be January 1, 1999.

         IN WITNESS WHEREOF, Allergan, Inc. hereby executes this Third Amendment
on the 26th day of August, 1999.

ALLERGAN, INC.


By: /s/ Francis R. Tunney, Jr.
    -----------------------------------------
    Francis R. Tunney, Jr.,
    Corporate Vice President--Administration,
    General Counsel and Secretary