Exhibit 10.1

AMENDMENT NO. 1 TO CREDIT AGREEMENT

AND JOINDER AGREEMENT

This AMENDMENT NO. 1 TO CREDIT AGREEMENT AND JOINDER AGREEMENT (this
“Agreement”) dated as of May 21, 2012 is made by and among WATSON
PHARMACEUTICALS, INC., a Nevada corporation (the “Company”), BANK OF AMERICA,
N.A., a national banking association organized and existing under the laws of
the United States, in its capacity as administrative agent for the Lenders (as
defined in the Credit Agreement (as defined below)) (in such capacity, the
“Administrative Agent”), and each of the existing Lenders under such Credit
Agreement (collectively, the “Existing Lenders”) signatory hereto, and each of
the Persons becoming Lenders by the execution of this Agreement (the “Joining
Lenders”).

W I T N E S S E T H:

WHEREAS, the Company, the Administrative Agent and the Lenders have entered into
that certain Credit Agreement dated as of September 16, 2011 (as hereby amended
and as from time to time hereafter further amended, modified, supplemented,
restated, or amended and restated, the “Credit Agreement”; capitalized terms
used in this Agreement and not otherwise defined herein shall have the
respective meanings given thereto in the Credit Agreement), pursuant to which
the Lenders have made available to the Company a revolving credit facility;

WHEREAS, the Company intends to acquire, directly or indirectly (the
“Acquisition”), all of the outstanding Equity Interests of Actavis Pharma
Holding 4 ehf., a company incorporated in Iceland, Actavis Inc., a Delaware
corporation, and Actavis S.à r.l., a company incorporated in the Grand Duchy of
Luxembourg (collectively, the “Acquired Business”) from their respective equity
holders (collectively. the “Sellers”) and certain debt claims owed by the
Acquired Business to the Sellers and other affiliates pursuant to that certain
Sale and Purchase Agreement dated as of April 25, 2012 among the Company, the
Sellers and the other persons party thereto;

WHEREAS, the Company has advised the Administrative Agent and the Existing
Lenders that it desires to replace Schedule 2.01 of the Credit Agreement with
Schedule 2.01 of this Agreement to reflect an increase in the Aggregate
Commitments from $500,000,000 to $750,000,000 (such increase to be allocated
among the Joining Lenders and certain of the Existing Lenders); and

WHEREAS, the Company has further advised the Administrative Agent, the Existing
Lenders and the Joining Lenders that it desires to amend certain other
provisions of the Credit Agreement as set forth below, and the Administrative
Agent, the Existing Lenders signatory hereto and the Joining Lenders are willing
to effect such amendment on the terms and conditions contained in this
Agreement.

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NOW, THEREFORE, in consideration of the premises and further valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

1. Amendments to Credit Agreement. Subject to the terms and conditions set forth
herein, the Credit Agreement is hereby amended as follows:

(a) Schedule 2.01 is amended by replacing such Schedule with Schedule 2.01
attached hereto.

(b) Section 1.01 is amended by adding the following definitions thereto in their
proper alphabetical order:

“Acquisition” shall have the meaning assigned to such term in the First
Amendment.

“Acquisition Indebtedness” means any debt or equity securities (including,
without limitation, any securities convertible or exchangeable into or
exercisable for equity securities, other equity-linked securities or hybrid
debt-equity securities) of the Company or any of its Affiliates that have been
issued for the purpose of financing, in part, the Acquisition (including
refinancing all or a portion of the Bridge Facility).

“Bridge Facility” means that certain senior unsecured bridge loan in aggregate
principal amount of $6,000,000,000 committed to be made to the Company pursuant
to that certain Commitment Letter dated April 25, 2012 among Bank of America,
N.A., Merrill Lynch, Pierce, Fenner and Smith Incorporated, Wells Fargo Bank,
National Association, Wells Fargo Securities, LLC and the Company.

“First Amendment” means that certain Amendment No. 1 to Credit Agreement and
Joinder Agreement dated as of May 21, 2012 by and among the Company, the
Administrative Agent and each of the Lenders party thereto.

(c) Section 1.01 is amended by replacing the definition of “Consolidated Total
Debt” contained therein with the following:

“Consolidated Total Debt” means, at any time, for the Company and its
Subsidiaries on a consolidated basis, the aggregate amount of (a) all
Indebtedness for borrowed money, (b) all Receivables Facility Attributable
Indebtedness, and (c) all Capital Lease Obligations and Synthetic Lease
Obligations. Notwithstanding the foregoing, solely for the purposes of
determining Consolidated Total Debt at any time on or prior to the consummation
of the Acquisition, the aggregate principal amount of Acquisition Indebtedness
that would otherwise be included in “Consolidated Total Debt” shall exclude any
such Acquisition Indebtedness that includes a “special mandatory redemption”
provision (or other similar provision) requiring the Company (within a
reasonable period of time following the occurrence of an event set forth in
clause (a) or (b)) to redeem such Acquisition Indebtedness if (a) the
Acquisition is not consummated on or prior to February 28, 2013 or (b) the
Acquisition Agreement terminates in accordance with its terms. For avoidance of
doubt, the exclusion in the immediately preceding sentence shall not apply after
consummation of the Acquisition.

 

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(d) Section 7.02 is amended by (i) deleting “and” at the end of clause
(h) thereof, (ii) deleting “.” at the end of clause (i) thereof and inserting “;
and” in lieu thereof and (iii) adding the following new clause (j):

(j) any Acquisition Indebtedness.

(e) Section 7.05 is amended by (i) deleting “or” before “(ii)” in the proviso
thereof and inserting “,” in lieu thereof and (ii) adding the following
immediately before the “.” in the proviso thereof: “or (iii) any transaction
between the Company and an Affiliate of the Company resulting in a transfer to
the Company of the proceeds of any Acquisition Indebtedness issued by such
Affiliate”.

(f) Section 7.08 is amended by replacing such Section with the following:

7.08 Consolidated Leverage Ratio. (a) Prior to the date the Acquisition is
consummated (such date, the “Acquisition Date”), permit the Consolidated
Leverage Ratio as of the last day of any period of four consecutive fiscal
quarters of the Company to exceed 3.50 to 1.00; and (b) on the “Acquisition
Date” and thereafter, permit the Consolidated Leverage Ratio as of the last day
of any period of four consecutive fiscal quarters of the Company set forth below
to exceed the ratio set forth below opposite such period:

 

Four consecutive

fiscal quarters ending:

   Maximum Consolidated
Leverage Ratio:

Acquisition Date through December 31, 2013

   4.25 to 1.00

January 1, 2014 through December 31, 2014

   4.00 to 1.00

January 1, 2015 and thereafter

   3.50 to 1.00

2. Joinder of the Joining Lenders; Funding of Loans with Additional Commitments.

(a) By its execution of this Agreement, each Joining Lender hereby confirms and
agrees that, on and after the Amendment Effective Date (defined in Section 3
below), it shall be and become a party to the Credit Agreement as a Lender, and
shall have all of the rights and be obligated to perform all of the obligations
of a Lender thereunder with the Commitment applicable to such Lender identified
on Schedule 2.01 attached hereto. Each Joining Lender further (i) acknowledges
that it has received a copy of the Credit Agreement and the schedules and
exhibits thereto and such other documents and information as it has deemed
appropriate to make its own credit and legal analysis and decision to enter into
this Agreement; (ii) acknowledges that it has independently and without reliance
upon the Administrative Agent, the L/C Issuer, or any other Lender and based on
such documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement and to become a Lender, and
(iii) agrees that it will, independently and without reliance upon the
Administrative

 

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Agent, the L/C Issuer or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit and legal decisions in taking or not taking action under the Credit
Agreement and the other Loan Documents. On and after the Amendment Effective
Date, all references to the “Lenders” in the Credit Agreement shall be deemed to
include the Joining Lenders.

(b) On the Amendment Effective Date, (i) each Existing Lender that is increasing
its Commitment and each Joining Lender shall make available to the
Administrative Agent such amounts in immediately available funds as the
Administrative Agent shall determine, for the benefit of the other relevant
Existing Lenders, as being required in order to cause, after giving effect to
such increase and joinder and the application of such amounts to make payments
to such other relevant Existing Lenders, the outstanding Committed Loans (and
risk participations in outstanding Swing Line Loans and L/C Obligations) to be
held ratably by all Lenders in accordance with their respective Applicable
Percentages (as revised by this Agreement) and (ii) the Company shall be deemed
to have prepaid and reborrowed the outstanding Committed Loans as of the
Amendment Effective Date to the extent necessary to keep the outstanding
Committed Loans ratable with any Applicable Percentages (as revised by this
Agreement) arising from any nonratable increase in the Commitments under this
Agreement and the joinder of the Joining Lenders.

(c) Upon the Amendment Effective Date, the Commitment and Applicable Percentage
of each Lender will be as set forth on Schedule 2.01 attached hereto and
Schedule 2.01 to the Credit Agreement as in effect prior to the Amendment
Effective Date will be deleted and replaced in its entirety thereby.

(d) The parties hereto acknowledge that, notwithstanding the increase in the
Commitments provided herein, Section 2.15 of the Credit Agreement shall remain
in full force and effect after giving effect to the amendments and joinders
provided herein and the amount of any additional increase in Commitments made
after the Amendment Effective Date in accordance with Section 2.15 of the Credit
Agreement shall not exceed $350,000,000.

3. Effectiveness; Conditions Precedent. This Agreement and the amendments to the
Credit Agreement herein provided shall become effective as of the date hereof
subject to the satisfaction of the following conditions precedent (the
“Amendment Effective Date”):

(a) the Administrative Agent shall have received each of the following documents
or instruments in form and substance reasonably acceptable to the Administrative
Agent:

(i) original counterparts of this Agreement, duly executed by the Company, the
Administrative Agent, each of the Existing Lenders constituting Required Lenders
under the Credit Agreement, and each of the Joining Lenders, together with all
schedules and exhibits hereto duly completed;

 

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(ii) a Note executed by the Company in favor of each Existing Lender that is
increasing its Commitment and each Joining Lender, in each case that has
requested a Note at least one Business Day prior to the Amendment Effective
Date; and

(iii) a certificate dated as of the Amendment Effective Date signed by a
Responsible Officer of the Company (A) certifying and attaching the resolutions
adopted by the Company, (B) evidencing the identity, authority and capacity of
each Responsible Officer thereof authorized to act as a Responsible Officer in
connection with this Agreement and the Notes and (C) attaching evidence that the
Company is duly organized or formed, and that the Company is validly existing
and in good standing in the state of Nevada.

(b) all fees and expenses payable to the Existing Lenders and the Joining
Lenders per that certain Amendment No. 1 to Credit Agreement and Joinder
Agreement Fee Letter dated May 21, 2012 between the Administrative Agent and the
Company shall have been paid in full (without prejudice to final settling of
accounts for such fees and expenses).

(c) all fees, charges and disbursements of one counsel to the Administrative
Agent (directly to such counsel if requested by the Administrative Agent)
required to be paid by the Company under the Credit Agreement to the extent
invoiced at least one Business Day prior to the Closing Date, which invoice may
include reasonable estimates of fees, charges and disbursements incurred or to
be incurred by such counsel through the closing proceedings (provided that such
estimate will not thereafter preclude a final settling of accounts between the
Company and the Administrative Agent).

4. Representations and Warranties. In order to induce the Administrative Agent,
the Existing Lenders signatory hereto and the Joining Lenders to enter into this
Agreement, the Company represents and warrants to the Administrative Agent, the
Existing Lenders signatory hereto and the Joining Lenders as follows:

(a) the representations and warranties of the Company contained in Article V of
the Credit Agreement are true and correct in all material respects on and as of
the Amendment Effective Date, except to the extent that such representations and
warranties are already qualified by materiality, in which case such
representations and warranties shall be true and correct in all respects, and
except to the extent that such representations and warranties specifically refer
to an earlier date, in which case they are true and correct as of such earlier
date, and except that the representations and warranties contained in
subsections (a), (b) and (c) of Section 5.05 of the Credit Agreement shall be
deemed to refer to the most recent statements furnished pursuant to subsections
(a) and (b), respectively, of Section 6.01 of the Credit Agreement;

 

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(b) this Agreement has been duly authorized, executed and delivered by the
Company and constitutes a legal, valid and binding obligation of the Company,
except as may be limited by general principles of equity or by the effect of any
applicable bankruptcy, insolvency, reorganization, moratorium or similar law
affecting creditors’ rights generally; and

(c) on the Amendment Effective Date, no Default has occurred and is continuing.

5. Entire Agreement. This Agreement, together with all the Loan Documents which,
for purposes of the “Credit Agreement” shall mean the Credit Agreement as
defined herein (collectively, the “Relevant Documents”), sets forth the entire
understanding and agreement of the parties hereto in relation to the subject
matter hereof and supersedes any prior negotiations and agreements among the
parties relating to such subject matter. No promise, condition, representation
or warranty, express or implied, not set forth in the Relevant Documents shall
bind any party hereto, and no such party has relied on any such promise,
condition, representation or warranty. Each of the parties hereto acknowledges
that, except as otherwise expressly stated in the Relevant Documents, no
representations, warranties or commitments, express or implied, have been made
by any party to the other in relation to the subject matter hereof or thereof.
None of the terms or conditions of this Agreement may be changed, modified,
waived or canceled orally or otherwise, except in writing and in accordance with
Section 10.01 of the Credit Agreement.

6. Full Force and Effect of Agreement. Except as hereby specifically amended,
modified or supplemented, the Credit Agreement and all other Loan Documents are
hereby confirmed and ratified in all respects and shall be and remain in full
force and effect according to their respective terms.

7. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same
instrument.

8. Governing Law. This Agreement shall in all respects be governed by, and
construed in accordance with, the laws of the State of New York applicable to
contracts executed and to be performed entirely within such State, and shall be
further subject to the provisions of Sections 10.14 and 10.15 of the Credit
Agreement.

9. Enforceability. Should any one or more of the provisions of this Agreement be
determined to be illegal or unenforceable as to one or more of the parties
hereto, all other provisions nevertheless shall remain effective and binding on
the parties hereto.

10. References. All references in any of the Loan Documents to the “Credit
Agreement” shall mean the Credit Agreement, as amended hereby.

 

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11. Successors and Assigns. This Agreement shall be binding upon the Company,
the Administrative Agent, each Existing Lender and each Joining Lender and inure
to the benefit of the Company, the Administrative Agent, each Existing Lender
signatory hereto and each Joining Lender, and their respective successors, legal
representatives, and assignees to the extent such assignees are permitted
assignees as provided in Section 10.06 of the Credit Agreement.

[Signature pages follow.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be made,
executed and delivered by their duly authorized officers as of the day and year
first above written.

 

COMPANY: WATSON PHARMACEUTICALS, INC. By:  

/s/ David A. Buchen

  Name: David A. Buchen   Title: Chief Legal Officer - Global

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EXISTING LENDERS: BANK OF AMERICA, N.A. By:  

/s/ Robert LaPorte

  Name: Robert LaPorte   Title: Vice President

 

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WELLS FARGO BANK, NATIONAL ASSOCIATION By:  

/s/ Kirk Tesch

  Name: Kirk Tesch   Title: Director

 

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BARCLAYS BANK PLC By:  

/s/ Diane Rolfe

  Name: Diane Rolfe   Title: Director

 

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JPMORGAN CHASE BANK, N.A. By:  

/s/ Philip Mousin

  Name: Philip Mousin   Title: Credit Executive

 

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MIZUHO CORPORATE BANK (USA) By:  

/s/ Betram H. Tang

  Name: Betram H. Tang   Title: Senior Vice President

 

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HSBC BANK USA, NATIONAL ASSOCIATION By:  

/s/ Robert L. Moravec

  Name: Robert L. Moravec   Title: Senior Relationship Manager

 

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THE ROYAL BANK OF SCOTLAND PLC By:  

/s/ William McGinty

  Name: William McGinty   Title: Director

 

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UNION BANK, N.A. By:  

/s/ Lauren Hom

  Name: Lauren Hom   Title: Vice President

 

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THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. By:  

/s/ George Stoecklein

  Name: George Stoecklein   Title: Vice President

 

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U.S. BANK NATIONAL ASSOCIATION By:  

/s/ Joseph M. Schnorr

  Name: Joseph M. Schnorr   Title: Vice President

 

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DNB NOR BANK ASA, Grand Cayman Branch

(f/k/a DNB NOR BANK ASA)

By:  

/s/ Kristie Li

  Name: Kristie Li   Title: First Vice President By:  

/s/ Thomas Tangen

  Name: Thomas Tangen   Title: Senior Vice President

 

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DEUTSCHE BANK AG NEW YORK BRANCH By:  

/s/ Ming K. Chu

  Name: Ming K. Chu   Title: Vice President By:  

/s/ Virginia Cosenza

  Name: Virginia Cosenza   Title: Vice President

 

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JOINING LENDERS: TD BANK, N.A. By:  

/s/ Marla Willner

  Name: Marla Willner   Title: Senior Vice President

 

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AUSTRALIA AND NEW ZEALAND

BANKING GROUP LIMITED

By:  

/s/ Robert Grillo

  Name: Robert Grillo   Title: Director

 

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SUMITOMO MITSUI BANKING

CORPORATION

By:  

/s/ David W. Kee

  Name: David W. Kee   Title: Managing Director

 

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Acknowledged by: BANK OF AMERICA, N.A., as Administrative Agent By:  

/s/ Darleen R. Parmelee

  Name: Darleen R. Parmelee   Title: Assistant Vice President

 

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Schedule 2.01

APPLICABLE PERCENTAGES; COMMITMENTS

 

Lender

   Commitment      Applicable
Percentage  

Bank of America, N.A.

   $ 84,500,000         11.266666667 % 

Wells Fargo Bank, National Association

   $ 84,500,000         11.266666667 % 

Barclays Bank PLC

   $ 61,250,000         8.166666667 % 

JPMorgan Chase Bank, N.A.

   $ 61,250,000         8.166666667 % 

Mizuho Corporate Bank (USA)

   $ 55,000,000         7.333333333 % 

Deutsche Bank AG New York Branch

   $ 55,000,000         7.333333333 % 

HSBC Bank USA, National Association

   $ 45,000,000         6.000000000 % 

The Royal Bank of Scotland plc

   $ 45,000,000         6.000000000 % 

U.S. Bank National Association

   $ 45,000,000         6.000000000 % 

Dnb Bank ASA, Grand Cayman Branch

(f/k/a DnB NOR Bank ASA)

   $ 45,000,000         6.000000000 % 

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

   $ 31,000,000         4.133333333 % 

TD Bank, N.A.

   $ 30,000,000         4.000000000 % 

Sumitomo Mitsui Banking Corporation

   $ 30,000,000         4.000000000 % 

Australia and New Zealand Banking Group Limited

   $ 30,000,000         4.000000000 % 

Union Bank, N.A.

   $ 24,000,000         3.200000000 % 

Svenska Handelsbanken AB (publ)

   $ 23,500,000         3.133333333 %    

 

 

    

 

 

 

Total

   $ 750,000,000         100.000000000 %    

 

 

    

 

 

 

 

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