Exhibit 10(b)

                     THIRD AMENDMENT TO EMPLOYMENT AGREEMENT

This Third Amendment to Employment Agreement is dated as of December 27, 2006
(this "Amendment") by and between Perrigo Company, a placeStateMichigan
corporation (the "Company"), and David T. Gibbons (the "Executive").

      WHEREAS the Company and the Executive are parties to an Employment
Agreement (the "Employment Agreement") dated as of April 19, 2000, as amended
pursuant to an Amendment dated as of June 30, 2005 and a Second Amendment dated
as of September 9, 2006.

      WHEREAS the Compensation Committee has determined that it is appropriate
to amend the Employment Agreement to revise the changes made by the Second
Amendment with respect to section 409A of the Internal Revenue Code.

      NOW, THEREFORE, in consideration of the foregoing premises, the mutual
covenants, promises and representations set forth herein, and for other good and
valuable consideration, the receipt and sufficiency of which are acknowledged,
the parties agree as follows:

      1. AMENDMENT.

      (a) The change made by Section 1(g) of the Second Amendment (which deleted
      the extension of the stock options) is hereby rescinded as it applies to
      the Executive's stock options that were granted in 2001 and 2003.

      (b) The changes made by the third, fourth and fifth sentences of Section
      1(h) of the Second Amendment (which relate to section 409A of the Internal
      Revenue Code) are hereby rescinded as they apply to the Executive's stock
      options that were granted in 2001 and 2003. After final regulations are
      issued under section 409A of the Internal Revenue Code, the parties intend
      to take appropriate actions to cause the Executive's stock options to
      comply with section 409A.

      2. EFFECT OF AMENDMENT. Except to the extent expressly amended hereby, the
      Employment Agreement shall remain in full force and effect in all
      respects.

      3. APPLICABLE LAW. This Amendment shall be governed by and construed and
      enforced in accordance with the laws of the State of placeStateMichigan,
      without giving effect to any choice of law or conflict of law provision or
      rule that would cause the application of the laws of any other
      jurisdiction.

      4. COUNTERPARTS. This Amendment may be executed in one or more
      counterparts (including counterparts executed and delivered by facsimile,
      which shall be as counterparts executed and delivered manually), all of
      which shall be considered one and the same agreement and shall become
      effective when one or more counterparts have been signed by each of the
      parties and delivered to the other party, it being understood that all
      parties need not sign the same counterpart.


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IN WITNESS WHEREOF, this Amendment has been duly executed by the parties hereto
as of the day and year first written above.

                                     PERRIGO COMPANY


                                     By:  /s/ Michael Stewart
                                         -----------------------------
                                          Name: Michael Stewart
                                          Title: Sr. V.P. Global Human Resources


                                     DAVID T. GIBBONS


                                     By:  /s/ David T. Gibbons
                                         -----------------------------


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