Document:

EX-10.2

 Exhibit 10.2 
  

					
		  	 Change of Control

Severance Pay Plan for

Certain Management Employees
 of Actavis,
Inc.
 and Its U.S. Subsidiaries
	  	
			
		  	(Effective January 1, 2014)	  	

  
  

 Contents 
  

					
	 Article 1. Introduction
	  	 	1	  
	 1.1 Establishment and Amendment of the Plan
	  	 	1	  
	 1.2 Status of the Plan
	  	 	1	  
		
	 Article 2. Definitions
	  	 	2	  
	 2.1 Actavis plc
	  	 	2	  
	 2.2 Actavis plc Board
	  	 	2	  
	 2.3 Affiliate
	  	 	2	  
	 2.4 Base Pay
	  	 	2	  
	 2.5 Board
	  	 	2	  
	 2.6 Broad-Based Severance Plan
	  	 	2	  
	 2.7 Change of Control
	  	 	2	  
	 2.8 Change of Control Severance Benefit
	  	 	4	  
	 2.9 Code
	  	 	4	  
	 2.10 Committee
	  	 	4	  
	 2.11 Company
	  	 	4	  
	 2.12 Disability
	  	 	4	  
	 2.13 Effective Date
	  	 	4	  
	 2.14 Eligible Employee
	  	 	4	  
	 2.15 Employee
	  	 	5	  
	 2.16 ERISA
	  	 	5	  
	 2.17 Laid Off
	  	 	6	  
	 2.18 Plan
	  	 	6	  
	 2.19 Plan Year
	  	 	6	  
	 2.20 Qualifying Termination of Employment
	  	 	6	  
	 2.21 Reduction in Base Pay
	  	 	6	  
	 2.22 Release
	  	 	6	  
	 2.23 Relocation
	  	 	6	  
	 2.24 Salary Grade Level
	  	 	6	  
	 2.25 Severance Benefits
	  	 	6	  
	 2.26 Specified Employee
	  	 	7	  
	 2.27 Substitute Severance Benefit
	  	 	7	  
	 2.28 Successor Employer
	  	 	7	  
	 2.29 Termination of Employment
	  	 	8	  
	 2.30 U.S. Subsidiary
	  	 	8	  
		
	 Article 3. Eligibility for Benefits
	  	 	9	  
	 3.1 Eligibility for Benefit
	  	 	9	  
	 3.2 Release
	  	 	10	  
	 3.3 409A Cure Period
	  	 	10	  
	 3.4 Employment with a Successor
	  	 	10	  

  
  

i 

					
	 Article 4. Amount of Benefits
	  	 	11	  
	 4.1 Change of Control Severance Benefit
	  	 	11	  
	 4.2 Substitute Severance Benefit
	  	 	11	  
	 4.3 Offsets
	  	 	11	  
		
	 Article 5. Benefits
	  	 	12	  
	 5.1 Timing
	  	 	12	  
	 5.2 Death While in Pay Status
	  	 	13	  
	 5.3 Health Benefits
	  	 	13	  
	 5.4 Career Transition Assistance
	  	 	14	  
	 5.5 Educational Reimbursement Benefits
	  	 	14	  
	 5.6 Status as Designated Reimbursement or In-Kind Payment Plans
	  	 	14	  
		
	 Article 6. Cost of the Plan
	  	 	15	  
	 6.1 Plan Costs
	  	 	15	  
		
	 Article 7. Reemployment
	  	 	16	  
	 7.1 Reemployment of Eligible Employee
	  	 	16	  
		
	 Article 8. Amendment or Termination
	  	 	17	  
	 8.1 Amendment or Termination
	  	 	17	  
	 8.2 One-Year Period Following Change of Control
	  	 	17	  
		
	 Article 9. Plan Administration
	  	 	18	  
	 9.1 Committee
	  	 	18	  
	 9.2 Operation of the Committee
	  	 	18	  
	 9.3 Agents
	  	 	18	  
	 9.4 Compensation and Expenses
	  	 	19	  
	 9.5 Committee’s Powers and Duties
	  	 	19	  
	 9.6 Committee’s Decisions Conclusive/Exclusive Benefit
	  	 	20	  
	 9.7 Indemnity
	  	 	20	  
	 9.8 Insurance
	  	 	21	  
	 9.9 Fiduciaries
	  	 	22	  
	 9.10 Notices
	  	 	22	  
	 9.11 Data
	  	 	23	  
	 9.12 Claims Procedure
	  	 	23	  
	 9.13 Effect of a Mistake
	  	 	25	  
		
	 Article 10. Miscellaneous Provisions
	  	 	26	  
	 10.1 No Enlargement of Employee Rights
	  	 	26	  
	 10.2 No Examination or Accounting
	  	 	26	  
	 10.3 Records Conclusive
	  	 	26	  
	 10.4 409A
	  	 	26	  
	 10.5 Service of Legal Process
	  	 	26	  
	 10.6 Governing Law
	  	 	26	  
	 10.7 Severability
	  	 	26	  
	 10.8 Missing Persons
	  	 	27	  

  
  

ii 

					
	 10.9 Facility of Payment
	  	 	27	  
	 10.10 General Restrictions Against Alienation
	  	 	27	  
	 10.11 Gender and Number
	  	 	28	  
	 10.12 Counterparts
	  	 	28	  
	 10.13 Withholding
	  	 	28	  
	 10.14 Limitation on Payments
	  	 	28	  

  
  

iii 

 Article 1. Introduction 

1.1 Establishment and Amendment of the Plan 
 Watson
Pharmaceuticals, Inc. (“Watson”) originally adopted this Change of Control Severance Pay Plan for Certain Management Employees of Watson Pharmaceuticals, Inc. and Its U.S. Subsidiaries (“Plan”) effective as of January 1,
2006. The Plan was amended, effective as of January 1, 2008, to clarify certain provisions regarding the eligibility to receive Severance Benefits, the amount of the Severance Benefits to which an Eligible Employee may be entitled and for
compliance with the final regulations under Internal Revenue Code (“Code”) section 409A. The Plan is now being amended, effective as of January 1, 2014, to reflect Actavis, Inc. as the sponsor of the Plan, and to make other
changes to update the terms of the Plan. The Plan is designed to provide certain Eligible Employees who are involuntarily terminated from the Company for specific reasons with Severance Benefits. 

1.2 Status of the Plan 
 The Plan is intended to provide a
severance or separation pay benefit and is intended to constitute an “employee welfare benefit plan” under ERISA section 3(1). The provisions of this restated Plan are effective for Eligible Employees who become eligible for Severance
Benefits on or after January 1, 2014. 

  
  

1 

 Article 2. Definitions 

2.1 Actavis plc 
 “Actavis plc” means Actavis
plc, a public limited company organized under the laws of Ireland. 
 2.2 Actavis plc Board 

“Actavis plc Board” means the Board of Directors of Actavis plc. 

2.3 Affiliate 
 “Affiliate” means: 

 

	(a)	Any entity or organization that, together with the Company, is part of a controlled group of corporations, within the meaning of Code section 414(b); 

 

	(b)	Any trade or business that, together with the Company, is under common control, within the meaning of Code section 414(c); and 

  

	(c)	Any entity or organization that is required to be aggregated with the Company, pursuant to Code section 414(m) or 414(o). An entity shall be an Affiliate only during the period when the entity has the required
relationship, under this Section 2.3, with the Company. 

 2.4 Base Pay 

“Base Pay” means an Eligible Employee’s gross, base weekly rate of pay or salary, excluding overtime, bonuses, commissions, premium pay, shift
differentials, employer-paid employee benefits, expense reimbursements, and similar amounts. If the Eligible Employee is paid by the hour, Base Pay is the Eligible Employee’s regular hourly rate multiplied by his or her regularly scheduled
hours per week. 
 2.5 Board 
 “Board” means
the Board of Directors of Actavis, Inc. 
 2.6 Broad-Based Severance Plan 

“Broad-Based Severance Plan” means the Employee Severance Pay Plan for Employees of Actavis, Inc. and Certain of Its U.S. Subsidiaries and any
similar broad-based severance plan provided by the Company for employees. 
 2.7 Change of Control 

“Change of Control” means the occurrence of any of the following: 
  

	(a)	A sale of assets representing fifty percent (50%) or more of the net book value and of the fair market value of Actavis plc’s consolidated assets (in a single transaction or in a series of related
transactions); 

  

	(b)	A liquidation or dissolution of Actavis plc; 

  
  

2 

	(c)	A merger or consolidation involving Actavis plc or any subsidiary of Actavis plc after the completion of which: 

  

	 	(1)	In the case of a merger (other than a triangular merger) or a consolidation involving Actavis plc, the shareholders of Actavis plc immediately prior to the completion of the merger or consolidation beneficially own
(within the meaning of Rule 13d–3 of the Securities Exchange Act of 1934, as amended, the “Exchange Act,” or comparable successor rules), directly or indirectly, outstanding voting securities representing less than sixty percent
(60%) of the combined voting power of the surviving entity in the merger or consolidation; and 

  

	 	(2)	In the case of a triangular merger involving Actavis plc or a subsidiary of Actavis plc, the shareholders of Actavis plc immediately prior to the completion of the merger beneficially own (within the meaning of Rule
13d–3 of the Exchange Act, or comparable successor rules), directly or indirectly, outstanding voting securities representing less than sixty percent (60%) of the combined voting power of the surviving entity in the merger and less than
sixty percent (60%) of the combined voting power of the parent of the surviving entity in the merger; 

  

	(d)	An acquisition within a 12-month period by any person, entity, or “group” (within the meaning of sections 13(d) or 14(d) of the Exchange Act or any comparable successor provisions), other than any
employee benefit plan, or related trust, sponsored or maintained by Actavis plc or an affiliate of Actavis plc and other than in a merger or consolidation of the type referred to in Section 2.7(c) above, of beneficial ownership (within the
meaning of Rule 13d–3 of the Exchange Act, or comparable successor rules) of outstanding voting securities of Actavis plc representing more than thirty percent (30%) of the combined voting power of Actavis plc (in a single transaction
or series of related transactions); or 

  

	(e)	In the event that the individuals who, as of the effective date of the Plan, are members of the Actavis plc Board (“Incumbent Board”) cease, for any reason to constitute at least fifty percent (50%) of
the Actavis plc Board; provided, that if the election, or nomination for election by the shareholders of Actavis plc, of any new member of the Actavis plc Board is approved by a vote of at least fifty percent (50%) of the Incumbent Board,
such new member of the Actavis plc Board shall be considered as a member of the Incumbent Board. 

 Notwithstanding the foregoing, if a Change
of Control constitutes a payment event with respect to any portion of a Severance Benefit that provides for the deferral of compensation and is subject to Section 409A of the Code, the transaction or event described in subsection (a), (b), (c),
(d) or (e) with respect to such Severance Benefit (or portion thereof) must also constitute a “change in control event,” as defined in Treasury Regulation section 1.409A-3(i)(5) to the extent required by Section 409A. 

The Committee shall have full and final authority, which shall be exercised in its sole discretion, to determine conclusively whether a Change of Control of
Actavis plc has occurred pursuant to the above definition, and the date of the occurrence of such Change of Control and any incidental matters relating thereto; provided that any exercise of authority in conjunction with a determination of whether a
Change of Control is a “change in control event” as defined in Treasury Regulation section 1.409A-3(i)(5) shall be consistent with such regulation. 

  
  

3 

 2.8 Change of Control Severance Benefit 

“Change of Control Severance Benefit” means the benefit payable under Section 4.1 following both a Change of Control and a qualifying
Termination of Employment. 
 2.9 Code 

“Code” means the Internal Revenue Code of 1986, as amended. 

2.10 Committee 
 “Committee” means the Actavis
Employee Benefit Plans Committee or such body designated by the Company’s Board of Directors to replace such committee. 
 2.11 Company 

“Company” means Actavis, Inc., a Nevada corporation, its U.S. Subsidiaries, and any successor in interest to Actavis or such U.S. Subsidiary. 

2.12 Disability 
 “Disability” means a total
physical or mental condition which, in the opinion of the Committee, causes an Eligible Employee to be totally and presumably permanently disabled, due to sickness or injury, so as to be completely and presumably permanently unable to perform the
regular full-time active duties of his or her usual course of employment with the Company. 
 2.13 Effective Date

 “Effective Date” means January 1, 2014. 

2.14 Eligible Employee 
 “Eligible Employee”
means an Employee who is employed at a Salary Grade Level of 13 or higher, as determined by the Company. Any Employee classified by the Company, in its sole discretion, as being in one or more of the following categories, shall not be an Eligible
Employee: 
  

	(a)	Any Employee with a currently effective employment agreement or contract (including a letter agreement) providing for severance benefits, unless such agreement or contract expressly refers to this Plan;

  

	(b)	Any Employee eligible for any other Change of Control pay plan, unless the Company notifies the individual in writing that he or she is eligible for this Plan; 

 

	(c)	Any Employee absent from work on an indefinite unpaid leave of absence expected to exceed 90 days, unless eligibility is required by applicable federal or state law or the Company, after the leave of absence is
approved, notifies the individual in writing that he or she is eligible for benefits under this Plan; 

  

	(d)	Any newly hired Employee who is on a probationary period; 

  
  

4 

	(e)	Any Employee or other individual classified by the Company, in its sole discretion, as a temporary employee regardless of how long the individual is employed by the Company; 

 

	(f)	Any individual whom the Company regards as an independent contractor, (including an employee of such contractor) as evidenced by the Company’s failure to withhold taxes from his or her compensation, even if such
status as a contractor (or employment status, as applicable) is subsequently reclassified by the Internal Revenue Service, the Department of Labor, or any other governmental agency, court or other tribunal, unless and until the Company in fact
designates such individual as an Employee and then only from the time of such designation forward without retroactive effect unless the Company, in its sole discretion, decides otherwise; 

 

	(g)	Any Employee or other individual classified by the Company, in its sole discretion, as a project employee, unless the Company notifies the individual in writing that he or she is eligible for this Plan;

  

	(h)	Individuals who are leased employees of the Company within the meaning of Code section 414(n); 

  

	(i)	Individuals classified by the Company as part-time employees and scheduled to work fewer than 30 hours per week; 

  

	(j)	Any Employee who is otherwise eligible to participate in the Plan who agreed, in writing, to waive eligibility for Severance Benefits under the Plan; 

 

	(k)	Employees classified by the Company as “foreign employees” meaning Employees based or employed in a foreign country or paid from a non-U.S. payroll (including an Employee based in the Commonwealth of Puerto
Rico and paid from a payroll in Puerto Rico); and 

  

	(l)	Employees whose terms and conditions of employment are subject to collective bargaining unless the applicable collective bargaining agreement specifically provides for their eligibility under this Plan.

 2.15 Employee 
 “Employee”
means an individual classified by the Company as a regular employee on the U.S. payroll, who is employed by the Company on a full-time basis (regularly scheduled to work 30 or more hours per week). Employees also include any such persons while on a
leave of absence granted by the Company. For the avoidance of doubt, “Employee” does not include any individual based or employed, or paid from a payroll, in the Commonwealth of Puerto Rico. 

2.16 ERISA 
 “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended. 

  
  

5 

 2.17 Laid Off 

“Laid Off” means the elimination of an Employee’s position due to a restructuring or workforce reduction that results in such Employee’s
employment being terminated. 
 2.18 Plan 

“Plan” means the Change of Control Severance Pay Plan for Certain Management Employees of Actavis, Inc. and Its U.S. Subsidiaries as restated herein
and as subsequently amended from time to time. 
 2.19 Plan Year 

“Plan Year” means the consecutive 12-month period beginning January 1 and ending December 31. 

2.20 Qualifying Termination of Employment 

“Qualifying Termination of Employment” means an Eligible Employee’s Termination of Employment that, in the Company’s sole discretion,
qualifies the Eligible Employee for Severance Benefits so long as the Eligible Employee meets all applicable requirements to receive Severance Benefits under the Plan. 

2.21 Reduction in Base Pay 
 “Reduction in Base
Pay” means a material reduction in Base Pay of 15 percent or more. 
 2.22 Release 

“Release” means the executed and delivered irrevocable general release, in a form satisfactory to the Company, from the Employee to the Company
releasing the Company from any and all claims relating to the Employee’s employment, including, but not limited to, retirement and welfare benefits with the Company. 

2.23 Relocation 
 “Relocation” means the
Company’s decision to relocate an Eligible Employee’s principal worksite such that it represents a material change in the geographic location at which the Eligible Employee must provide services to the Company (an increase in the one-way commute distance of 50 miles or more will be presumed to be material for purposes of this Plan and Treasury Regulation section 1.409A-1(n)). 

2.24 Salary Grade Level 
 “Salary Grade Level”
means the pay grade classification designated for each Employee by the Company at the Employee’s date of hire and as subsequently modified by the Company from time to time. 

2.25 Severance Benefits 
 “Severance Benefits”
means all benefits that may be payable under this Plan, including the: 
  

	(a)	Change of Control Severance Benefit described in Section 4.1, as applicable; 

  

	(b)	Substitute Severance Benefit described in Section 4.2, as applicable; 

  
  

6 

	(c)	Health Benefits described in Section 5.3, as applicable; 

  

	(d)	Career Transition Assistance described in Section 5.4, as applicable; and 

  

	(e)	Educational Reimbursement Benefits described in Section 5.5, as applicable. 

 2.26 Specified Employee

 “Specified Employee” means an Eligible Employee qualifying as a “key employee” for purposes of Code section 416(i)
(determined without regard to Code section 416(i)(5)) by satisfying any one of the following conditions at any time during the 12-month period ending on each December 31 (the “Identification
Date”): 
  

	(a)	The Eligible Employee is among the top-paid 50 officers of the Company with annual compensation (within the meaning of Code section 415(c)(3)) in excess of $165,000 (for the
December 31, 2013 Identification Date) (subject to cost-of-living adjustments in accordance with Code section 416(i)(1)); 

 

	(b)	The Eligible Employee is a five-percent owner; or 

  

	(c)	The Eligible Employee is a one-percent owner and has annual compensation (within the meaning of Code section 415(c)(3)) in excess of $150,000. 

If an individual is a key employee as of an Identification Date, the individual shall be treated as a Specified Employee for the 12-month period beginning on the April 1 following the Identification Date. For the limited purpose of applying the “one-percent” and “five-percent” ownership rules, ownership is determined with respect to the entity for which the Employee provides services. The Code’s controlled and affiliated service group rules do not apply when
determining an Employee’s ownership interests. 
 Notwithstanding the foregoing, an individual shall not be treated as a Specified Employee unless any
stock of the Company or a corporation affiliated with it pursuant to Code section 414(b) or (c) is publicly traded on an established securities market or otherwise. 

Notwithstanding the above, the Company may (but is not required to) adopt an alternative method for identifying Specified Employees, provided such method
satisfies the requirements set forth at Treasury Regulation section 1.409A-1(i)(5). 
 2.27 Substitute Severance Benefit 

“Substitute Severance Benefit” means a severance payment as provided in Section 4.2 meant to replace the Change of Control Severance Benefit.
The Substitute Severance Benefit payment, if applicable, will be described in writing to the Eligible Employee. 
 2.28 Successor Employer 

“Successor Employer” means any entity that acquires or assumes the Company’s facilities, operations or functions formerly carried out by the
Company (such as the buyer of a facility or an entity to which a Company operation or function has been outsourced), or any Affiliate making an offer of employment at the request of the Company. 

  
  

7 

 2.29 Termination of Employment 

“Termination of Employment” means the date of the termination of the employment relationship between the Employee and the Company (including an
Affiliate), when both the employee and the Company (including an Affiliate) reasonably anticipated that no future services would be performed after such date. For purposes of this Plan, the term Termination of Employment shall have the same meaning
as the term “separation from service” as defined in Treasury Regulation section 1.409A-1(h) and the rules of such Treasury Regulation (and other applicable guidance) will be applied to determine whether an Eligible Employee has a
Termination of Employment. 
 2.30 U.S. Subsidiary 

“U.S. Subsidiary” means any domestic entity (other than Actavis, Inc.) in an unbroken chain of entities beginning with Actavis, Inc. if each of the
entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities or interests representing at least eighty (80%) of the total combined voting power of all classes of securities or
interests in one of the other entities in such chain. 

  
  

8 

 Article 3. Eligibility for Benefits 

3.1 Eligibility for Benefit 
  

	(a)	Subject to the conditions provided in this Article 3, Severance Benefits will be payable to each Eligible Employee who: 

  

	 	(1)	Is employed by the Company on or after the Effective Date; and 

  

	 	(2)	Within 12 months after a Change of Control is either: 

  

	 	(A)	Permanently and involuntarily Laid Off by the Company or a Successor Employer (such that both the Eligible Employee and the Company or the Successor Employer have the reasonable belief at the time of the layoff, based
on all of the surrounding facts and circumstances, that the Eligible Employee will not perform any future services for the Company or the Successor Employer); 

  

	 	(B)	Subject to a Reduction in Base Pay; or 

  

	 	(C)	Subject to a Relocation. 

  

	(b)	An otherwise Eligible Employee shall forfeit his or her eligibility for Severance Benefits unless the Company is satisfied that such Employee has satisfactorily completed all reasonable transition requests made by the
Company, including, but not limited to, informing the Company of the location of business files and returning Company property to the Company. 

  

	(c)	An otherwise Eligible Employee will not be eligible for any benefits under this Plan if the otherwise Eligible Employee: 

  

	 	(1)	Resigns, or otherwise voluntarily terminates employment with the Company; 

  

	 	(2)	Terminates employment with the Company after being informed by the Company that he or she is being permanently and involuntarily Laid Off but prior to the date set by the Company for the Eligible Employee’s
Termination of Employment; 

  

	 	(3)	Dies; 

  

	 	(4)	Incurs a Disability; 

  

	 	(5)	Is discharged by the Company for unsatisfactory performance or misconduct (including, but not limited to, conviction of any felony or a material violation of a Company policy); or 

 

	 	(6)	Materially breaches his or her duties to the Company and does not correct the breach within 30 days of receiving written notice of the breach from his or her immediate supervisor, designated Company officer, or one of
their designees. 

  
  

9 

	(d)	The Company has the right to cancel or reschedule an Eligible Employee’s permanent layoff (or job loss from job elimination) from the Company or proposed Relocation or Reduction in Base Pay before the Eligible
Employee’s Termination of Employment. If the Company takes any of the actions set forth in the preceding sentence, the Eligible Employee shall not be eligible to receive Severance Benefits unless he or she has a subsequent event that entitles
him or her to receive Severance Benefits. 

 3.2 Release 

No Severance Benefits will be provided under this Plan to an Eligible Employee unless such Eligible Employee executes and delivers to the Company a Release,
and does not revoke such Release within the time period prescribed in the Release. The Release must be satisfactory to the Company in form and substance and must be delivered to the Company no later than the date prescribed by the Company. 

3.3 409A Cure Period 
 Any Eligible Employee who initiates
his or her own Termination of Employment in response to a Reduction in Base Pay or a Relocation will not be entitled to Severance Benefits unless such Eligible Employee: 
  

	(a)	has timely (within 60 days of receiving notice of such Reduction in Base Pay or Relocation) notified the Company that the Company, including any Successor Employer, has proposed a Reduction in Base Pay or has
proposed a change in the Eligible Employee’s principal work site which would constitute a Relocation; 

  

	(b)	requested the Company to remedy such condition; and 

  

	(c)	the Company, after receiving such notice, declines to remedy such condition within 30 days. 

 3.4
Employment with a Successor 
 An otherwise Eligible Employee will not be eligible for Severance Benefits if the Eligible Employee has been offered
comparable employment by a Successor Employer, as determined by the Company in its sole discretion, to commence promptly after the Eligible Employee’s Termination of Employment with the Company (including any successor in interest to the
Company). 

  
  

10 

 Article 4. Amount of Benefits 

4.1 Change of Control Severance Benefit 
 Subject to the
offset described below in this Article 4 and the timing described in Article 5, an Eligible Employee, who becomes eligible for benefits under this Plan in accordance with the requirements of Article 3, will be entitled to 52 weeks of Base Pay
payable in a lump sum. 
 4.2 Substitute Severance Benefit 

At its sole discretion, the Company, prior to a Change of Control, through the Committee or otherwise, may award a Substitute Severance Benefit to any Eligible
Employee in such amount, or to be computed on such basis, as it may determine, to the extent that awarding such Substitute Severance Benefit will not trigger an excise tax under Code section 409A(a)(1)(B). Such awards may be granted for any reason
deemed appropriate by the Committee. Such Substitute Severance Benefit payment will be in lieu of any benefit to which the Employee may otherwise be entitled under the above Change of Control Severance Benefit provisions as set forth in
Section 4.1. 
 4.3 Offsets 
 If an Eligible
Employee becomes entitled to severance benefits under any other severance plan, program or agreement maintained by the Company (including any Successor Employer or other successor in interest to the Company, but excluding any benefit payable under
this Plan) as a result of a Termination of Employment and the Company determines that the Eligible Employee is eligible to receive benefits under this Plan, the Change of Control Severance Benefit or Substitute Severance Benefit, as applicable,
payable under this Plan will be reduced by the severance benefits otherwise payable to the Eligible Employee under these other severance plans, programs, or agreements to the extent that making such a reduction will not trigger an excise tax under
Code section 409A(a)(1)(B). Additionally, severance and other additional benefits available under this Plan are not intended to duplicate workers’ compensation wage replacement benefits, disability benefits, pay-in-lieu-of-notice, severance pay, or similar benefits under other benefit plans, severance programs, employment contracts,
or applicable laws, such as the WARN act. Any such benefits to be paid under this Plan will be reduced by any such similar benefits required to be paid outside of the Plan to the extent that making such a reduction will not trigger an excise tax
under Code section 409A(a)(1)(B). 

  
  

11 

 Article 5. Benefits 

5.1 Timing 
  

	(a)	Subject to this Article 5, an Eligible Employee’s Change of Control Severance Benefit, or Substitute Severance Benefit, as applicable, will be paid in a lump sum in a manner as provided by the Release as soon as
administratively practicable after the latest of all of the following has occurred: 

  

	 	(1)	the Termination of Employment of the Eligible Employee; and 

  

	 	(2)	the Eligible Employee’s Release has been executed, become irrevocable and enforceable within the maximum time period for execution and revocation of the Release (as provided in the Release). 

 

	(b)	If the total Change of Control Severance Benefit (or, if applicable, the total Substitute Severance Benefit) of an Eligible Employee exceeds two times that Eligible Employee’s annual pay limit (or two times
annualized pay, if such amount is less) as determined under Treasury Regulation section 1.409A-1(b)(9)(iii), the amount that exceeds the two times annual pay limit (or two times annualized pay, if
applicable) will be paid in a lump sum no later than March 15th of the year next following the Eligible Employee’s Qualifying Termination of Employment. 

 

	(c)	All benefits payable pursuant to the terms of this Plan, including, for example, the Change of Control Severance Benefit, will be paid before the end of the second Plan Year following the Plan Year in which the
Qualifying Termination of Employment occurs. The intent of this provision is to satisfy the requirements for an exemption for certain separation pay plans as specified under Treasury Regulation
section 1.409A-1(b)(9) such that any benefit payable under this Plan, to the extent applicable, will not be treated as deferred compensation under Code section 409A. 

 

	(d)	If an Eligible Employee is a Specified Employee, payment of the Eligible Employee’s Severance Benefits, to the extent not otherwise exempt from Code section 409A, will not commence prior to the first day
of the month following the six-month anniversary of the Eligible Employee’s Termination of Employment. If a portion of the Eligible Employee’s Severance Benefits are subject to this
Code section 409A restriction, that portion of the Severance Benefits will be paid in a lump sum as soon as administratively practicable after the expiration of the six-month period described herein.

  

	(e)	 Provided that the Committee has determined that a portion or all of an Eligible Employee’s Change of Control Severance Benefit or Substitute
Severance Benefit, as applicable, is not subject to Code section 409A, the Committee has the unilateral right to accelerate payments to an Eligible Employee of the portion of the Eligible Employee’s Change of Control Severance Benefit or
Substitute Severance Benefit, as applicable, that is not subject to Code section 409A, up to and including the right to satisfy the entire severance obligation 

  
  

12 

	 	
arising under this Plan in a lump sum payment. However, an Eligible Employee has no right to request or demand that the payment of any Severance Benefits be accelerated. 

 

	(f)	An Eligible Employee’s right to receive any installment payments under this Plan shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all
times be considered a separate and distinct payment as permitted under Treasury Regulation Section 1.409A-2(b)(2)(iii). 

 5.2 Death
While in Pay Status 
 Payment of Severance Benefits will not be made to a deceased former Eligible Employee. An Eligible Employee who dies while
receiving Severance Benefits under this Plan will, upon his or her death, no longer be eligible to receive Severance Benefits. No surviving spouse or other beneficiary will be entitled to any benefits under this Plan, including, but not limited to,
payments scheduled to have been paid to the Eligible Employee prior to his or her death. 
 5.3 Health Benefits 

 

	(a)	After an Eligible Employee’s Termination of Employment from the Company and the Company’s determination that such Eligible Employee is entitled to a Change of Control Severance Benefit, or Substitute Severance
Benefit, as applicable, the Eligible Employee will also be entitled to certain additional benefits. The Company will contribute (if the Eligible Employee so selects) a portion of the total premium costs for medical, dental and vision coverages,
available under plans sponsored by the Company, on behalf of the Eligible Employee and the Eligible Employee’s enrolled dependents. 

  

	(b)	The Company’s contributions will be made for the same number of weeks that the Eligible Employee is entitled to receive a Change of Control Severance Benefit, or Substitute Severance Benefit, as applicable. For
example, if an Eligible Employee is entitled to receive a Change of Control Severance Benefit equal to 52 weeks of Base Pay, the Eligible Employee will be entitled to receive the above described Company contribution for health care coverages for 52
weeks, notwithstanding the fact that payment of the Eligible Employee’s Change of Control Severance Benefit is paid in one lump sum payment. 

  

	(c)	Such coverage will be provided in a manner allowing the Company (or a Successor Employer) to offset the otherwise applicable time periods for which the Company is required to offer health care continuation coverage in a
manner consistent with the provisions of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) or other applicable state law. 

  

	(d)	The Company will make a contribution equal to the contribution currently made by the Company on behalf of its then similarly situated active employees for such health care coverages. The Eligible Employee will be
required to pay directly to the Company the rate currently paid by regular, actively employed Company employees. 

  
  

13 

	(e)	After the expiration of the time period in which the Eligible Employee is entitled to receive Company contributions as described in Section 5.3(b), the Eligible Employee will be required to pay the portion of the
premium payment previously paid by the Company. 

 5.4 Career Transition Assistance 

After an Eligible Employee’s Termination of Employment from the Company and the Company’s determination that such Eligible Employee is entitled to a
Change of Control Severance Benefit, or Substitute Severance Benefit, as applicable, the Eligible Employee will be entitled to receive career transition assistance provided that the Eligible Employee will receive such transition assistance for the
same number of weeks that the Eligible Employee is entitled to receive a Change of Control Severance Benefit, or Substitute Severance Benefit, as applicable. The amount and type of these benefits will be determined in the Company’s sole
discretion. 
 5.5 Educational Reimbursement Benefits 

After an Eligible Employee’s Termination of Employment from the Company and the Company’s determination that such Eligible Employee is entitled to a
Change of Control Severance Benefit, or Substitute Severance Benefit, as applicable, the Company will continue to honor the contractual terms of any currently effective educational reimbursement agreement previously made between the Company and the
Eligible Employee provided that the Eligible Employee commenced classes before the Company first notified such Eligible Employee of the Employee’s permanent layoff or the Relocation of the Eligible Employee’s work site. Additionally, to
continue to be eligible for reimbursement, consistent with the terms of such reimbursement arrangement, as reflected in writing between the Company and the Eligible Employee, the Eligible Employee will need to continue to satisfy all the
requirements of the educational reimbursement agreement when the agreement was made effective other than the requirement to remain employed with the Company, which the Company specifically waives for purposes of this Plan only. 

5.6 Status as Designated Reimbursement or In-Kind Payment Plans 

For purposes of applicable federal law, including Code section 409A, the benefits described in Sections 5.3, 5.4 and 5.5 above shall be treated as
being provided from a designated reimbursement or in-kind payment plan as defined in Treasury Regulation section 1.409A-1(b)(9)(v). 

  
  

14 

 Article 6. Cost of the Plan 

6.1 Plan Costs 
 All costs of the Plan, including all
administrative costs, will be borne by the Company. 
 Nothing in the establishment of this Plan is to be construed as requiring the Company to create or
maintain any separate fund, account or reserve to provide for the payment of the Company’s obligations under the Plan. All benefits under the Plan shall be paid from the general assets of the Company, or from a grantor trust established for the
purpose of making such payments. 

  
  

15 

 Article 7. Reemployment 

7.1 Reemployment of Eligible Employee 
 If an Eligible
Employee is reemployed by the Company or a Successor Employer (or provides services to the Company or a Successor Employer as an independent contractor) while any Severance Benefits are still payable under the Plan, then all remaining Severance
Benefits will cease, except as otherwise specified by the Company, in its sole discretion. A rehired Eligible Employee who received some or all of the Severance Benefits shall be entitled to retain such benefits. 

  
  

16 

 Article 8. Amendment or Termination 

8.1 Amendment or Termination 
  

	(a)	The Company, acting through its Board or an appropriate officer, has the right, in its non-fiduciary settlor capacity, to amend or to terminate the Plan at any time, prospectively
or retroactively, for any reason, without notice, including the right to discontinue or eliminate benefits. 

  

	(b)	The Company shall amend the Plan by action of any of its officers. An officer of the Company shall execute the amendment, evidencing the adoption of such amendment. 

8.2 One-Year Period Following Change of Control 

Notwithstanding the Company’s general right to amend or terminate the Plan at any time, the Company, including any successor entity to the Company, may
not, for a period of one year following a Change of Control, amend or terminate this Plan in any manner that would adversely affect the rights of an Eligible Employee to Severance Benefits under this Plan. 

  
  

17 

 Article 9. Plan Administration 

9.1 Committee 
  

	(a)	Except as otherwise provided in the Plan, the Committee shall be the administrator of the Plan, within the meaning of ERISA section 3(16)(A). 

 

	(b)	As of the Effective Date, the Committee is the Actavis Employee Benefit Plans Committee. The Committee may be composed of as many members as the Board may appoint in writing from time to time. Members of the Committee
may, but need not, be Employees. 

  

	(c)	A member of the Committee may resign by delivering his or her written resignation to the Board. The resignation shall be effective as of the date it is received by the Committee or such other later date as is specified
in the resignation notice. A Committee member may be removed at any time and for any reason by the Board. 

 9.2 Operation of the Committee

  

	(a)	A majority of the members of the Committee then in office shall constitute a quorum for the transaction of business. The Committee shall act by vote of a majority of the members present at a meeting at which there is a
quorum, or by the unanimous written consent of all of the Committee members then in office. 

  

	(b)	The Board shall designate a member of the Committee as the Chairperson of the Committee, and may designate a member of the Committee as the Vice Chairperson of the Committee. 

 

	(c)	The members of the Committee may authorize one or more of their members to execute or deliver any instrument or instruments, or take other action on their behalf. The members of the Committee may allocate any of the
Committee’s powers and duties among individual members of the Committee, or to one or more officers or employees of Actavis, Inc. or a subsidiary of Actavis, Inc. 

 

	(d)	All resolutions, proceedings, acts, and determinations of the Committee, with respect to the administration of the Plan, shall be recorded; and all such records, together with such documents and instruments as may be
necessary for the administration of the Plan, shall be preserved by the Committee. 

  

	(e)	Subject to the limitations contained in the Plan, the Committee shall be empowered from time to time in its discretion to establish rules for the exercise of the duties imposed upon the Committee under the Plan.

 9.3 Agents 
  

	(a)	The Board, Company, or the Committee may delegate such of its powers and duties as it deems desirable to any person, in which case every reference herein made to the Board, Company, or the Committee (as applicable)
shall be deemed to mean or include the delegated persons as to matters within their jurisdiction. 

  
  

18 

	(b)	The Board, Company, or the Committee may also appoint one or more persons or agents to aid it in carrying out its duties and delegate such of its powers and duties as it deems desirable to such persons or agents.

  

	(c)	The Board, Company, or the Committee may employ such counsel, auditors, and other specialists and such clerical and other services as it may require in carrying out the provisions of the Plan, with the expenses
therefore paid, as provided in Section 9.4. 

 9.4 Compensation and Expenses 

 

	(a)	A member of the Committee shall serve without compensation for services as a member. Any member of the Committee may receive reimbursement of expenses properly and actually incurred in connection with his or her
services as a member of the Committee, as provided in this Article 9. 

  

	(b)	All expenses of administering the Plan shall be paid by the Company. 

 9.5 Committee’s Powers and
Duties 
 The Committee shall have such powers and duties as may be necessary to discharge its functions hereunder, including the following: 

 

	(a)	To engage actuaries, attorneys, accountants, appraisers, brokers, consultants, administrators, physicians or other persons and to rely upon the reports, advice, opinions or valuations of any such person except as
required by law; 

  

	(b)	To adopt administrative rules of the Plan that are not inconsistent with the Plan or applicable law and to amend or revoke any such rule; 

 

	(c)	To construe the Plan and the administrative rules of the Plan; 

  

	(d)	To determine questions of eligibility and vesting of Plan participants and beneficiaries; 

  

	(e)	To determine entitlement to a benefit and to distributions or other rights of Plan participants and beneficiaries, and all other persons; 

 

	(f)	To make findings of fact as necessary to make any determinations and decisions in the exercise of such discretionary duty, power and responsibility; 

 

	(g)	To appoint claims and review officials to conduct claims procedures; 

  

	(h)	To comply with the reporting and disclosure requirements of ERISA and other applicable law with respect to the Plan; 

  

	(i)	To establish and maintain all Plan documents, provided legal approval has been obtained from Actavis, Inc.s’ Legal Department or its designee; and 

 

	(j)	To delegate any duty, power or responsibility to any person or persons. 

  
  

19 

 9.6 Committee’s Decisions Conclusive/Exclusive Benefit 

The Committee shall have the exclusive right and discretionary authority to interpret the terms and provisions of the Plan and to resolve all questions arising
thereunder, including the right to resolve and remedy ambiguities, inconsistencies, or omissions in the Plan, provided, however, that the construction necessary for the Plan to conform to the Code and ERISA shall in all cases control. Benefits under
this Plan will be paid only if the Committee decides, in its discretion, that the Eligible Employee is entitled to them. Any and all disputes with respect to the Plan that may arise involving Eligible Employees shall be referred to the Committee,
and its decisions shall be final, conclusive, and binding, except to the extent found by a court of competent jurisdiction to constitute an abuse of discretion. All findings of fact, interpretations, determinations, and decisions of the Committee in
respect of any matter or question arising under the Plan shall be final, conclusive, and binding upon all persons, including, without limitation, Employees, and any and all other persons having, or claiming to have, any interest in or under the Plan
and shall be given the maximum possible deference allowed by law. The Committee shall administer the Plan for the exclusive benefit of Eligible Employees. 

9.7 Indemnity 
  

	(a)	The Company (including any Successor Employer, as applicable) shall indemnify and hold harmless each of the following persons (“Indemnified Persons”) under the terms and conditions of Section 9.7(b):

  

	 	(1)	The Committee; and 

  

	 	(2)	Each Employee, former Employee, current and former members of the Committee, or current or former members of the Board who has, or had, responsibility (whether by delegation from another person, an allocation of
responsibilities under the terms of this Plan document, or otherwise) for a fiduciary duty, a non-fiduciary settlor function (such as deciding whether to approve a plan amendment), or a non-fiduciary administrative task relating to the Plan. 

  

	(b)	The Company shall indemnify and hold harmless each Indemnified Person against any and all claims, losses, damages, and expenses, including reasonable attorneys’ fees and court costs, incurred by that person on
account of his or her good-faith actions or failures to act with respect to his or her responsibilities relating to the Plan. The Company’s indemnification shall include payment of any amounts due under a settlement of any lawsuit or
investigation, but only if the Company agrees to the settlement. 

  

	 	(1)	An Indemnified Person shall be indemnified under this Section 9.7 only if he or she notifies an Appropriate Person (defined below) at the Company of any claim asserted against or any investigation of the
Indemnified Person that relates to the Indemnified Person’s responsibilities with respect to the Plan. 

  

	 	(A)	A person is an “Appropriate Person” to receive notice of the claim or investigation if a reasonable person would believe that the person notified would initiate action to protect the interests of the Company
in response to the Indemnified Person’s notice. 

  
  

20 

	 	(B)	The notice may be provided orally or in writing. The notice must be provided to the Appropriate Person promptly after the Indemnified Person becomes aware of the claim or investigation. No indemnification shall be
provided under this Section 9.7 to the extent that the Company is materially prejudiced by the unreasonable delay of the Indemnified Person in notifying an Appropriate Person of the claim or investigation. 

 

	 	(2)	An Indemnified Person shall be indemnified under this Section 9.7 with respect to attorneys’ fees, court costs, or other litigation expenses or any settlement of such litigation only if the Indemnified Person
agrees to permit the Company to select counsel and to conduct the defense of the lawsuit and agrees not to take any action in the lawsuit that the Company believes would be prejudicial to the Company’s interests. 

 

	 	(3)	No Indemnified Person, including an Indemnified Person who is a Former Eligible Employee, shall be indemnified under this Section 9.7 unless he or she makes himself or herself reasonably available to assist the
Company with respect to the matters in issue and agrees to provide whatever documents, testimony, information, materials, or other forms of assistance that the Company shall reasonably request. 

 

	 	(4)	No Indemnified Person shall be indemnified under this Section 9.7 with respect to any action or failure to act that is judicially determined to constitute or be attributable to the gross negligence or willful
misconduct of the Indemnified Person. 

  

	 	(5)	Payments of any indemnity under this Section 9.7 shall only be made from assets of the Company. The provisions of this Section 9.7 shall not preclude or limit such further indemnities or reimbursement under
this Plan as allowable under applicable law, as may be available under insurance purchased by the Company, or as may be provided by the Company under any by-law, agreement or otherwise, provided that no expense shall be indemnified under this
Section 9.7 that is otherwise indemnified by the Company, by an insurance contract purchased by the Company, or by this Plan. 

 9.8
Insurance 
 The Company may authorize the purchase of insurance to cover any liabilities or losses occurring by reason of the act or omission of any
fiduciary. To the extent permitted by law, the Company may purchase insurance covering any fiduciary for any personal liability of such fiduciary with respect to any fiduciary responsibilities under this Plan. Any fiduciary may purchase insurance
for his or her own account covering any personal liability under this Plan. 

  
  

21 

 9.9 Fiduciaries 
  

	(a)	The fiduciaries named in this Plan shall have only those specific powers, duties, responsibilities, and obligations as are specifically given to them under this Plan. The Company shall have the sole responsibility for
making the payments specified under the Plan. 

  

	(b)	Except as otherwise provided under the Plan, the Committee shall be the named fiduciary under the Plan and shall be the administrator of the Plan, within the meaning of Code section 414(g) and ERISA
section 3(16)(A). 

  

	(c)	A fiduciary may rely upon any direction, information, or action of another fiduciary as being proper under this Plan and is not required under this Plan to inquire into the propriety of any such direction, information,
or action. It is intended under this Plan that each fiduciary shall be responsible for the proper exercise of his, her, or its own powers, duties, responsibilities, and obligations under this Plan and shall not be responsible for any act or failure
to act of another fiduciary. 

  

	(d)	Any person or group of persons may serve in more than one fiduciary capacity, with respect to the Plan. Nothing in this Section 9.9 shall be interpreted as preventing a fiduciary from properly delegating or
allocating its responsibilities to other appropriate persons, in accordance with this Plan. 

 9.10 Notices 

Each Eligible Employee shall be responsible for furnishing to the Company his or her current address. The Eligible Employee shall also be responsible for
notifying the Company of any change in the above information. If an Eligible Employee does not provide the above information to the Company, the Committee may rely on the address of record of the Eligible Employee on file with the Company’s
personnel office. 
 All notices or other communications from the Committee to an Eligible Employee shall be deemed given and binding upon that person for
all purposes of the Plan when delivered to, or when mailed first-class mail, postage prepaid, and addressed to that person at his or her address last appearing on the Committee’s records, and the
Committee, and the Company shall not be obliged to search for or ascertain his or her whereabouts. 
 All notices or other communications from an Employee
required or permitted under this Plan shall be provided to the person specified by the Committee, using such procedures as are prescribed by the Committee. The Committee may require that the oral notice or communication be provided by telephoning a
specific telephone number and, after calling that telephone number, by following a specified procedure. Any oral notice or oral communication from an Employee that is made in accordance with procedures prescribed by the Committee shall be deemed to
have been duly given when all information requested by the person specified by the Committee is provided to such person, in accordance with the specified procedures. 

  
  

22 

 9.11 Data 

All persons entitled to benefits from the Plan must furnish to the Committee such documents, evidence, or information, as the Committee considers necessary or
desirable for the purpose of administering the Plan, and it shall be a condition of the Plan that each such person must furnish such information and sign such documents as the Committee may require (such as the Release) before any benefits become
payable from the Plan. 
 9.12 Claims Procedure 
 All
decisions made under the procedure set out in this Section 9.12 shall be final, and there shall be no further right of appeal. No lawsuit may be initiated by any person before fully pursuing the procedures set out in this Section 9.12,
including the appeal permitted pursuant to Section 9.12(c). 
  

	(a)	The right of an Employee or any other person entitled to claim a benefit under the Plan (collectively “Claimants”) to a benefit shall be determined by the Committee, provided, however, that the Committee may
delegate its responsibility to any person. 

  

	 	(1)	The Claimant (or an authorized representative of a Claimant) may file a claim for benefits by written notice to the Committee. The Committee shall establish procedures for determining whether a person is authorized to
represent a Claimant. 

  

	 	(2)	Any claim for benefits under the Plan, pursuant to this Section 9.12, shall be filed with the Committee no later than one year after the date of the Employee’s Termination of Employment. The Committee in its
sole discretion shall determine whether this limitation period has been exceeded. 

  

	 	(3)	Notwithstanding anything to the contrary in this Plan, the following shall not be a claim for purposes of this Section 9.12: 

  

	 	(A)	A request for determination of eligibility, participation, or benefit calculation under the Plan without an accompanying claim for benefits under the Plan. The determination of eligibility, participation, or benefit
calculation under the Plan may be necessary to resolve a claim, in which case such determination shall be made in accordance with the claims procedures set forth in this Section 9.12. 

 

	 	(B)	Any casual inquiry relating to the Plan, including an inquiry about benefits or the circumstances under which benefits might be paid under the Plan. 

  
  

23 

	 	(C)	A claim that is defective or otherwise fails to follow the procedures of the Plan (e.g., a claim that is addressed to a party other than the Committee or an oral claim). 

 

	 	(D)	An application or request for benefits under the Plan. 

  

	(b)	If a claim for benefits is wholly or partially denied, the Committee shall, within a reasonable period of time, but no later than 90 days after receipt of the claim, notify the Claimant of the denial of benefits. If
special circumstances justify extending the period up to an additional 90 days, the Claimant shall be given written notice of this extension within the initial 90-day period, and such notice shall set
forth the special circumstances and the date a decision is expected. A notice of denial: 

  

	 	(1)	Shall be written in a manner calculated to be understood by the Claimant; and 

  

	 	(2)	Shall contain 

  

	 	(A)	The specific reasons for denial of the claim; 

  

	 	(B)	Specific reference to the Plan provisions on which the denial is based; 

  

	 	(C)	A description of any additional material or information necessary for the Claimant to perfect the claim, along with an explanation as to why such material or information is necessary; and 

 

	 	(D)	An explanation of the Plan’s claim review procedures and the time limits applicable to such procedures, including a statement of the Claimant’s right to bring a civil action under ERISA section 502(a)
following an adverse determination on review. 

  

	(c)	Within 60 days of the receipt by the Claimant of the written denial of his or her claim or, if the claim has not been granted, within a reasonable period of time (which shall not be less than the 90 or 180 days
described in Section 9.12(b)), the Claimant (or an authorized representative of a Claimant) may file a written request with the Committee that it conduct a full review of the denial of the claim. In connection with the Claimant’s appeal,
upon request, the Claimant may review and obtain copies of all documents, records and other information relevant to the Claimant’s claim for benefits (but not including any document, record or information that is subject to any
attorney–client or work–product privilege) and may submit issues and comments in writing. The Claimant may submit written comments, documents, records, and other information relating to the claim for benefits. All comments, documents,
records, and other information submitted by the Claimant shall be taken into account in the appeal without regard to whether such information was submitted or considered in the initial benefit determination. 

  
  

24 

	(d)	The Committee shall deliver to the Claimant a written decision on the claim promptly, but no later than 60 days after the receipt of the Claimant’s request for such review, unless special circumstances exist that
justify extending this period up to an additional 60 days. If the period is extended, the Claimant shall be given written notice of this extension during the initial 60-day period and such notice shall set forth the special circumstances and
the date a decision is expected. The decision on review of the denial of the claim: 

  

	 	(1)	Shall be written in a manner calculated to be understood by the Claimant; 

  

	 	(2)	Shall include specific reasons for the decision; 

  

	 	(3)	Shall contain specific references to the Plan provisions on which the decision is based; 

  

	 	(4)	Shall contain a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and other information relevant to the Claimant’s claim for benefits. Whether a document,
record, or other information is relevant to a claim for benefits shall be determined by reference to U.S. Department of Labor Regulations section 2560; and 

  

	 	(5)	Shall contain a statement of the Claimant’s right to bring a civil action under ERISA section 502(a) following an adverse determination on review. 

 

	(e)	No lawsuit may be initiated by any person before fully pursuing the procedures set out in this Section 9.12, including the appeal permitted pursuant to Section 9.12(c). In addition, no legal action may be
commenced later than 365 days subsequent to the date of the written response of the Committee to a Claimant’s request for review pursuant to Section 9.12(d). 

9.13 Effect of a Mistake 
 In the event of a mistake or
misstatement as to the eligibility, participation, or service of any Employee or the amount of payments made or to be made to an Eligible Employee, the Committee shall, if possible, cause to be withheld or accelerated or otherwise make adjustment of
the amounts of payments as will, in its sole judgment, result in the Eligible Employee receiving the proper amount of payments under the Plan. No withholding or acceleration will be done unless the Company determines that the Severance Benefits
subject to acceleration or other adjustment are treated as being paid from a separation pay arrangement that is exempt from Code section 409A and such acceleration or other adjustment will not trigger an excise tax under Code section 409A(a)(1)(B).

  
  

25 

 Article 10. Miscellaneous Provisions 

10.1 No Enlargement of Employee Rights 
 This Plan is
strictly a voluntary undertaking on the part of the Company and shall not be deemed to constitute a contract between the Company with any Employee or to be consideration for, or an inducement to, or a condition of, the employment of any Employee.
Nothing contained in the Plan shall be deemed to give any Employee the right to be retained in the service of the Company or any Affiliate or to interfere with the right of any of them to discharge or retire any person at any time. No one shall have
any right to benefits, except to the extent provided in this Plan. 
 10.2 No Examination or Accounting 

Neither this Plan nor any action taken thereunder shall be construed as giving any person the right to an accounting or to examine the books or affairs of the
Company or an Affiliate. 
 10.3 Records Conclusive 

The records of the Company shall be conclusive in respect to all matters involved in the administration of the Plan. 

10.4 409A 
 Notwithstanding any provision of this Plan to
the contrary, the Committee shall administer this Plan in a manner designed to comply with Code section 409A and the Committee shall disregard any Plan provision if the Committee determines that application of such Plan provision would subject the
Eligible Employee to additional tax liability under Code section 409A(a)(1)(B). 
 10.5 Service of Legal Process 

The members of the Committee are hereby designated as agent(s) of the Plan for the purpose of receiving legal process. 

10.6 Governing Law 
  

	(a)	The Plan shall be construed, administered, and governed in all respects under the applicable laws of the State of New Jersey, except to the extent pre-empted by federal law. 

 

	(b)	Upon any change in the law or other determination that any term, condition or other provision of the Plan has been altered in any way, the Committee shall administer this Plan in accordance with such change,
notwithstanding the terms of the Plan pending an amendment to this Plan. 

 10.7 Severability 

If any provision of this Plan is held illegal or invalid for any reason, such illegality or invalidity will not affect the remaining provisions; instead, each
provision is fully severable, and the Plan will be construed and enforced as if any illegal or invalid provision had never been included. 

  
  

26 

 10.8 Missing Persons 

The Committee shall establish rules if the Committee is unable to make payment of a benefit due under the terms of the Plan to an Eligible Employee because the
whereabouts of the Eligible Employee cannot be ascertained. 
 10.9 Facility of Payment 

Every person receiving or claiming benefits under this Plan is presumed to be mentally competent and of age until the date on which the Committee receives a
written notice, in a form and manner acceptable to it, that such person is mentally incompetent or a minor, and that a guardian or other person legally vested with the care of such person or his or her estate has been appointed. 

However, if the Committee should find that any person to whom a benefit is payable under this Plan is unable to care for his or her affairs because of any
incompetency or is a minor, any payment due (unless a prior claim was made by a duly appointed legal representative) may be paid to the spouse, a child, a parent, or a brother or sister, or to any other person or institution that the Committee
determines to have incurred expense for such person otherwise entitled to payment. To the extent permitted by law, any such payment so made shall be a complete discharge of any liability therefore under the Plan. 

If a guardian of the estate or other person legally vested with the care of the estate of any person receiving or claiming benefits under the Plan is
appointed by a court of competent jurisdiction, payments shall be made to such guardian or other person provided that proper proof of appointment and continuing qualification is furnished in a form and manner suitable to the Committee. To the extent
permitted by law, such guardian or other person may act for the Eligible Employee and make any election required of or permitted by the Eligible Employee under this Plan, and such action or election shall be deemed to have been done by the Eligible
Employee, and benefit payments may be made to such guardian or other person and any such payment shall be a complete discharge of any such liability under the Plan. 

10.10 General Restrictions Against Alienation 
 The
interest of any Eligible Employee under this Plan shall not in any event be subject to sale, assignment, or transfer, and each Eligible Employee is hereby prohibited from anticipating, encumbering, assigning, or in any manner alienating his or her
interest hereunder and is without power to do so; provided, however, this provision shall not restrict the power or authority of the Committee, in accordance with the applicable provisions of the Plan, to disburse funds to the legally appointed
guardian, executor, administrator, or personal representative of any Eligible Employee or pursuant to a valid domestic relations order certified and issued by a court of competent jurisdiction. 

If any person attempts to take any action contrary to this Section 10.10, such action shall be void and the Company may disregard such action and is not
in any manner bound thereby, and it shall suffer no liability for any such disregard thereof. If the Committee is notified that any Eligible Employee has been adjudicated bankrupt or has purported to anticipate, sell, transfer, assign, or encumber
any Plan distribution or payment, voluntarily or involuntarily, the Committee shall hold or apply such distribution or payment or any part thereof to, or for the benefit of, such Eligible Employee in such manner as the Committee finds appropriate.

  
  

27 

 10.11 Gender and Number 

Except as otherwise indicated by the context, any masculine or feminine terminology shall also include the opposite gender, and the definition of any term in
the singular or plural shall also include the opposite number. 
 10.12 Counterparts 

This Plan may be executed in any number of counterparts, each of which shall be deemed to be an original. All the counterparts shall constitute but one and the
same instrument and may be sufficiently evidenced by any one counterpart. 
 10.13 Withholding 

The Company may withhold, or require the withholding, from any payment that is made under this Plan of any federal, state, or local taxes required by law to be
withheld with respect to such payment. If the Company (or other person required by law to withhold a portion of a payment) is unable to withhold the full amount required to be withheld, the Eligible Employee shall make a cash payment to the Company
of the difference between the amount required to be withheld and the amount that the Company was able to withhold. If the Eligible Employee does not make a cash payment to the Company of the amount set forth above, then the Company may withhold from
any other amounts payable to the Eligible Employee by the Company the additional amount that is required to be withheld with respect to any benefit under this Plan. 

10.14 Limitation on Payments 
  

	(a)	 Notwithstanding any other provisions of this Plan, in the event that any payment or benefit received or to be received by the Eligible Employee
(whether pursuant to the terms of this Plan or any other plan, arrangement or agreement) (all such payments and benefits, including the payments and benefits under Article 4 of this Plan, being hereinafter referred to as the “Total
Payments”) would be subject (in whole or part), to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of
Section 280G of the Code in such other plan, arrangement or agreement, the Total Payments shall be reduced to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (i) the net amount of such
Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to
such reduced Total Payments) is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of
Excise Tax to which the Eligible Employee would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal

  
  

28 

	 	
exemptions attributable to such unreduced Total Payments). The Total Payments shall be reduced in the following order: (A) reduction of any cash severance payments otherwise payable to the
Eligible Employee that are exempt from Section 409A of the Code, (B) reduction of any other cash payments or benefits otherwise payable to the Eligible Employee that are exempt from Section 409A of the Code, but excluding any payment
attributable to the acceleration of vesting or payment with respect to any stock option or other equity award with respect to the Company or Actavis plc’s common stock that are exempt from Section 409A of the Code, (C) reduction of
any other payments or benefits otherwise payable to the Eligible Employee on a pro-rata basis or such other manner that complies with Section 409A of the Code, but excluding any payment attributable to the acceleration of vesting and payment
with respect to any stock option or other equity award with respect to the Company or Actavis plc’s common stock that are exempt from Section 409A of the Code, and (D) reduction of any payments attributable to the acceleration of
vesting or payment with respect to any stock option or other equity award with respect to the Company or Actavis plc’s common stock that are exempt from Section 409A of the Code. The foregoing reductions shall be made in a manner that
results in the maximum economic benefit to the Eligible Employee and, to the extent economically equivalent, in a pro rata manner. 

  

	(b)	For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which the Eligible Employee shall
have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall be taken into account, (ii) no portion of the Total Payments shall be taken into account which,
in the written opinion of an accounting firm or compensation consulting firm with nationally recognized standing and substantial expertise and experience on Section 280G matters (the “280G Firm”) selected by the Company, does not
constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken
into account which, in the opinion of the 280G Firm, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the Base Amount (as defined in
Section 280G(b)(3) of the Code) allocable to such reasonable compensation, and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the 280G Firm in accordance
with the principles of Sections 280G(d)(3) and (4) of the Code. 

  

	(c)	 The 280G Firm will be directed to submit its determination and detailed supporting calculations to both the Eligible Employee and the Company within
fifteen (15) days after notification from either the Company or the Eligible Employee that the Eligible Employee may receive payments which may be “parachute payments.” The Eligible Employee and the Company will each provide the 280G
Firm access to and copies of any books, records, and 

  
  

29 

	 	
documents in their possession as may be reasonably requested by the 280G Firm, and otherwise cooperate with the 280G Firm in connection with the preparation and issuance of the determinations and
calculations contemplated by this Section 10.14(c). The fees and expenses of the 280G Firm for its services in connection with the determinations and calculations contemplated by this Section 10.14(c) will be borne by the Company.

  
  

30 

 In Witness Whereof, the authorized officers of the Company have signed this document and have affixed the
corporate seal on this the 1st day of May, 2014, but effective as of January 1, 2014. 
  

													
		 		 		 		 	Actavis, Inc.
					
	Attest:	 		 		 		 	
		 		 		 		 	By	 	 /s/ Patrick Eagan

		 		 		 		 		 	Its	 	 Chief Human Resources Officer – Global

	By	 	 /s/ Ann Verillo
	 		 		 		 	
		 	Its	 	 VP, Global Compensation & Benefits
	 		 		 		 	
		 		 		 		 	(Corporate Seal)

  
  

31EX-4.7

 Exhibit 4.7 

CEPHEID 
 NON-PLAN
STOCK OPTION AGREEMENT 
 (INDUCEMENT STOCK OPTION AWARD) 

This Stock Option Agreement (this “Agreement”) is made and entered into as of the date of grant set forth below (the
“Date of Grant”) by and between Cepheid, a California corporation (the “Company”), and the optionee named below (“Optionee”). Capitalized terms not defined herein shall have the
meaning ascribed to them in Section 24 or, if not defined therein, in the Company’s 2006 Equity Incentive Plan (the “Plan”). 
  

					
			
	Optionee:	  	 James Post
	  	
			
	Social Security Number:	  	  
	  	
			
	Optionee’s Address:	  	 22 Hearthstone Drive
	  	
			
		  	 Brookfield, CT 06804
	  	
			
	Total Option Shares:	  	 100,000
	  	
			
	Exercise Price Per Share:	  	  
	  	
			
	Date of Grant:	  	 December 16, 2013
	  	
			
	First Vesting Date:	  	 December 16, 2014
	  	
			
	Expiration Date:	  	 December 16, 2020
	  	
			
	Type of Stock Option:	  	 Non-Qualified Stock Option
	  	

 1. Grant of Option. The Company hereby grants to Optionee an option (this
“Option”) to purchase up to the total number of shares of common stock of the Company (“Common Stock”), set forth above (collectively, the “Shares”) at the Exercise Price Per
Share set forth above (the “Exercise Price”), subject to all of the terms and conditions of this Agreement. This option is not being granted under the terms of the Plan and is instead an inducement grant pursuant to
Section 5635(c)(4) of The NASDAQ Stock Market Rules. 
 2. Vesting; Exercise Period. 

2.1 Vesting of Shares. This Option shall be exercisable as it vests and shall not be exercisable with respect to any of the Shares
until the First Vesting Date. Subject to the terms and conditions of this Agreement, this Option shall vest and become exercisable as to portions of the Shares as follows: If Optionee has continuously provided services to the Company, or any Parent
or Subsidiary of the Company from the Date of Grant through and including the First Vesting Date, then on the First Vesting Date, this Option shall become exercisable as to twenty-five percent (25%) of the Shares. This Option shall become
exercisable as to an additional 2.08333% of the Shares on each monthly anniversary after the First Vesting Date, provided that Optionee has continuously provided services to the Company, or any Parent or Subsidiary of the Company, at all times
during the relevant month; provided, however, that in the event of Optionee’s Termination Upon Change of Control, as defined in Optionee’s Change of Control Retention and Severance Agreement with the Company (the
“Change of Control Agreement”), the terms of the Change of Control Agreement shall be applicable to and shall 

 
govern the vesting and exercise periods of the Option and shall supersede all provisions to the contrary in this Agreement. Optionee shall in no event be entitled under this Option to purchase a
number of shares of the Company’s Common Stock greater than the Total Option Shares set forth above. 
 2.2 Expiration. This
Option shall expire on the Expiration Date set forth above and must be exercised, if at all, on or before the earlier of the Expiration Date or the date on which this Option is earlier terminated in accordance with the provisions of Section 3,
provided, however, that this Option will be not be exercisable after the expiration of seven (7) years from the Date of Grant. 

2.3 Cessation of Vesting Due to Schedule Change. In the event Optionee voluntarily chooses (i.e., other than for reasons protected by
law) to reduce his work schedule with the Company to fewer than twenty (20) hours per week, the Shares subject to the Option shall cease to vest during the period of time in which Optionee regularly maintains such a schedule. Shares subject to
the Option shall begin to vest again once Optionee is regularly scheduled to work twenty (20) hours or more per week. The Committee shall make the determination as to when vesting shall cease or begin again. The Committee may, in its
discretion, permit Shares subject to the Option to continue to vest during the time that Optionee is regularly scheduled to work fewer than (20) hours per week. 

3. Termination. 

3.1 Termination for Any Reason Except Death, Disability or Cause. If Optionee is Terminated for any reason except Optionee’s
death, Disability or Cause, then this Option, to the extent (and only to the extent) that it is vested in accordance with the schedule set forth in Section 2.1 of this Agreement on the date of Termination, may be exercised by Optionee no later
than three (3) months after the date of Termination, but in any event no later than the Expiration Date. 
 3.2 Termination Because
of Death. If the Optionee is Terminated because of Optionee’s death (or the Optionee dies within three (3) months after a Termination other than for Cause or because of the Optionee’s Disability), then the Option may be exercised
only to the extent that such Option would have been exercisable by the Optionee on the Termination Date and must be exercised by the Optionee’s legal representative or authorized assignee no later than twelve (12) months after the
Termination Date (or such shorter time period not less than six (6) months or longer time period not exceeding five (5) years as may be determined by the Committee), but in any event no later than the Expiration Date. 

3.3 Termination Because of Disability. If the Optionee is Terminated because of Optionee’s Disability, then the Option may be
exercised only to the extent that such Option would have been exercisable by the Optionee on the Termination Date and must be exercised by the Optionee (or the Optionee’s legal representative or authorized assignee) no later than twelve
(12) months after the Termination Date, but in any event no later than the Expiration Date. 

  
 -2- 

 3.4 Termination for Cause. If Optionee is Terminated for Cause, this Option will expire on
the Optionee’s date of Termination, or at such later time and on such conditions as are determined by the Compensation Committee of the Company’s Board of Directors. 

3.5 No Obligation to Employ. Nothing in this Agreement shall confer on Optionee any right to continue in the employ of, or other
relationship with, the Company or any Parent or Subsidiary of the Company, or limit in any way the right of the Company or any Parent or Subsidiary of the Company to terminate Optionee’s employment or other relationship at any time, with or
without Cause. 
 4. Manner of Exercise. 

4.1 Stock Option Exercise Agreement. To exercise this Option, Optionee (or in the case of exercise after Optionee’s death,
Optionee’s executor, administrator, heir or legatee, as the case may be) must deliver to the Company an executed stock option exercise agreement in the form attached hereto as Exhibit A, or in such other form as may be approved by the
Company from time to time (the “Exercise Agreement”), which shall set forth, inter alia, Optionee’s election to exercise this Option, the number of shares being purchased (the “Exercised
Shares”), any restrictions imposed on the Shares and any representations, warranties and agreements regarding Optionee’s investment intent and access to information as may be required by the Company to comply with applicable
securities laws, together with payment in full of the Exercise Price for the number of Shares being purchased. Assuming such compliance, for income tax purposes the Exercised Shares shall be considered transferred to the Optionee on the date the
Option is exercised with respect to such Exercised Shares. If someone other than Optionee exercises this Option, then such person must submit documentation reasonably acceptable to the Company that such person has the right to exercise this Option.

 4.2 Limitations on Exercise. This Option may not be exercised unless such exercise is in compliance with all applicable federal
and state securities laws, as they are in effect on the date of exercise. This Option may not be exercised as to fewer than 100 Shares unless it is exercised as to all Shares as to which this Option is then exercisable. 

4.3 Payment. Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the
Optionee: 
 (a) cash; or 

(b) check; or 
 (c) provided
that a public market for the Company’s Common Stock exists and subject to the Company’s insider trading policies, through a “same day sale” commitment from the Optionee and a broker-dealer that is a member of the National
Association of Securities Dealers (an “NASD Dealer”) whereby the Optionee irrevocably elects to exercise 

  
 -3- 

 
the Option and to sell a portion of the Shares so purchased to pay for the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the Exercise
Price directly to the Company; or 
 (d) other method authorized by the Company. 

4.4 Tax Withholding. Prior to the issuance of the Shares upon exercise of this Option, Optionee must pay or provide for any applicable
federal or state withholding obligations of the Company. If the Committee permits, Optionee may provide for payment of withholding taxes upon exercise of this Option by requesting that the Company retain Shares with a Fair Market Value equal to the
minimum amount of taxes required to be withheld determined on the date that the amount of tax to be withheld is to be determined. In such case, the Company shall issue the net number of Shares to the Optionee by deducting the Shares retained from
the Shares issuable upon exercise. 
 4.5 Issuance of Shares. Provided that the Exercise Agreement and payment are in form and
substance satisfactory to counsel for the Company, the Company shall issue the Shares registered in the name of Optionee, Optionee’s authorized assignee, or Optionee’s legal representative, and shall deliver certificates representing the
Shares with the appropriate legends affixed thereto. 
 5. Compliance with Laws and Regulations. The exercise of this Option
and the issuance and transfer of Shares shall be subject to compliance by the Company and Optionee with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the
Company’s Common Stock may be listed at the time of such issuance or transfer. Optionee understands that the Company is under no obligation to register or qualify the Shares with the Securities and Exchange Commission
(“SEC”), any state securities commission or any stock exchange to effect such compliance. 
 6.
Nontransferability of Option. This Option may not be transferred in any manner other than by will or by the laws of descent and distribution and may be exercised (i) during the lifetime of Optionee only by Optionee, and
(ii) after Optionee’s death, by the legal representative of the Optionee’s heirs or legatees. The terms of this Option shall be binding upon the executors, administrators, successors and assigns of Optionee. 

7. Tax Consequences. Set forth below is a brief summary of some of the federal and California tax consequences of exercise of
this Option and disposition of the Shares, as of the date of the Option. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISOR BEFORE EXERCISING THE OPTION OR DISPOSING
OF THE SHARES. 
 7.1 Exercise of Nonqualified Stock Option. There may be a regular federal and California income tax liability upon
the exercise of this Option. Optionee will be treated as having received compensation income (taxable at ordinary income tax rates) equal to 

  
 -4- 

 
the excess, if any, of the fair market value of the Shares on the date of exercise over the Exercise Price. The Company will be required to withhold from Optionee’s compensation or collect
from Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise, and may refuse to honor the exercise and refuse to deliver the Shares if such withholding amounts are not
delivered at the time of exercise. 
 7.2 Disposition of Shares. If the Shares are held for more than twelve (12) months after
the date of the transfer of the Shares pursuant to the exercise of an NQSO, any gain realized on disposition of the Shares will be treated as long-term capital gain, as the case may be for federal income tax purposes. 

7.3 Possible Effect of Section 409A of the Code. Section 409A of the Code applies to arrangements that provide for the
deferral of compensation. Generally, a stock option granted with an exercise price per share of not less than the “fair market value” (determined in a manner consistent with Section 409A of the Code and the regulations and other
guidance promulgated thereunder) per share on the date of grant of the stock option and with no other feature providing for the deferral of compensation will not be subject to Section 409A of the Code. However, if the exercise price of the
stock option is less than such “fair market value” or the stock option has another feature for the deferral of compensation, then if the stock option is not administered within the parameters established under Section 409A the
optionholder will be subject to additional taxes. Also, the amount deemed to be deferred compensation under Section 409A of the Code will be subject to ordinary income and employment taxes. If Section 409A of the Code does apply to this
Option, then special rules apply to the timing of making and effecting certain amendments of this Option with respect to distribution of any deferred compensation. 

8. Privileges of Stock Ownership. Optionee shall not have any of the rights of a shareholder with respect to any Shares until
Optionee exercises this Option and pays the Exercise Price. After Shares are issued to the Optionee, the Optionee will be a shareholder and have all the rights of a shareholder with respect to such Shares, including the right to vote and receive all
dividends or other distributions made or paid with respect to such Shares. 
 9. Interpretation. Any dispute regarding the
interpretation of this Agreement shall be submitted by Optionee or the Company to the Committee for review. The resolution of such a dispute by the Committee shall be final and binding on the Company and Optionee. 

10. Entire Agreement. This Agreement, the Exercise Agreement and the Change in Control Agreement constitute the entire agreement
and understanding of the parties hereto with respect to the subject matter hereof and supersede all prior understandings and agreements with respect to such subject matter. 

11. Notices. Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in writing
and addressed to the Corporate Secretary of the Company at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the address indicated above or to such

  
 -5- 

 
other address as such party may designate in writing from time to time to the Company. All notices shall be deemed to have been given or delivered upon: personal delivery; three (3) days
after deposit in the United States mail by certified or registered mail (return receipt requested); one (1) business day after deposit with any return receipt express courier (prepaid); or one (1) business day after transmission via
electronic means. Optionee agrees to notify the Company upon any change in the residence address indicated on the first page of the Agreement. 

12. Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement shall be binding upon
and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon Optionee and Optionee’s heirs, executors, administrators, legal
representatives, successors and assigns. 
 13. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of California, without regard to that body of law pertaining to choice of law or conflict of law. 

14. Acceptance. Optionee hereby acknowledges receipt of a copy of this Agreement. Optionee has read and understands the terms
and provisions thereof, and accepts this Option subject to all the terms and conditions of this Agreement. Optionee has had an opportunity to obtain the advice of counsel prior to executing this Agreement. Optionee acknowledges that there may be
adverse tax consequences upon exercise of this Option or disposition of the Shares and that the Company has advised Optionee to consult a tax advisor prior to such exercise or disposition. 

15. Modification, Extension or Renewal. The Committee may modify, extend or renew this Option and authorize the grant of new
options in substitution therefor, provided that any such action may not, without the written consent of the Optionee, impair any of such Optionee’s rights under this Option. 

16. Certificates. All certificates for Shares or other securities delivered upon exercise of this Option will be subject to such
stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable, including restrictions under any applicable federal, state or foreign securities law, or any rules, regulations and other requirements of the SEC
or any stock exchange or automated quotation system upon which the Shares may be listed or quoted. 
 17. Adjustment of
Shares. In the event that the number of outstanding shares is changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the
Company without consideration, then the Exercise Price of and the number of Shares subject to this Option will be proportionately adjusted, subject to any required action by the Board or the Optionee and compliance with applicable securities laws;
provided, however, that fractions of a Share will not be issued but will either be replaced by a cash payment equal to the Fair Market Value of such fraction of a Share or will be rounded up to the nearest whole Share, as determined by
the Committee. 

  
 -6- 

 18. Corporate Transactions. 

18.1 Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Company shall notify the
Optionee at least thirty (30) days prior to such proposed action. The Option will terminate immediately prior to the consummation of such proposed action. 

18.2 Assumption or Replacement of Option by Successor. In the event of a merger of the Company with or into another corporation, or the
sale of substantially all of the assets of the Company, the Option shall be assumed or an equivalent award substituted by the successor corporation (including as a “successor” any purchaser of substantially all of the assets of the
Company) or a parent or subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the Option, the Optionee shall have the right to exercise the Option as to all of the shares of Common
Stock covered by the Option, including Shares as to which it would not otherwise be exercisable. If an Option is exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Company shall notify the Optionee that
the Option shall be fully exercisable for a period of fifteen (15) days from the date of such notice, and the Option shall terminate upon the expiration of such period. For the purposes of this paragraph, the Option shall be considered assumed
if, following the merger or sale of assets, the Option confers the right to purchase or receive, for each share of Common Stock subject to the Option immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other
securities or property) received in the merger or sale of assets by holders of Common Stock for each share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding shares); provided, however, that if such consideration received in the merger or sale of assets was not solely common stock of the successor corporation or its parent entity, the Company may, with the consent
of the successor corporation, provide for the consideration to be received upon the exercise of the Option, for each share of Common Stock subject to the Option, to be solely common stock of the successor corporation or its parent entity equal in
fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 
 18.3 Other
Treatment of Option. Subject to any greater rights granted to the Optionee under the foregoing provisions of this section, in the event of the occurrence of any transaction described in Section 18.1, this Option will be treated as provided
in the applicable agreement or plan of merger, consolidation, dissolution, liquidation, or sale of assets. 
 19. Insider Trading
Policy. Optionee shall comply with the Insider Trading Policy adopted by the Company from time to time covering transactions in the Company’s securities by employees, officers and/or directors of the Company. 

  
 -7- 

 20. Administration. This Agreement shall be administered by the Committee or by the
Board acting as the Committee. The Committee shall have the authority to (i) construe and interpret this Agreement, (ii) prescribe, amend and rescind rules and regulations relating to the Option; (iii) grant waivers of conditions
subject to the Option; (iv) correct any defect, supply any omission or reconcile any inconsistency in this Agreement; and (v) make all other determinations necessary or advisable for the administration of this Agreement. 

21. Committee Discretion. Any determination made by the Committee with respect to the Option may be made in its sole discretion
at any time, unless in contravention of any express term of this Agreement which requires such determination to be made at the time of grant of the Option, and such determination will be final and binding on the Company and the Optionee.
Notwithstanding anything to the contrary, administration of this Agreement shall at all times be limited by the requirement that any administrative action or exercise of discretion shall be void (or suitably modified when possible) if necessary to
avoid the application to Optionee of taxation under Section 409A of the Code. 
 22. Disputes. Any dispute regarding the
interpretation of this Agreement shall be submitted by Optionee or the Company to the Committee for review. The resolution of such a dispute by the Committee shall be final and binding on the Company and Optionee. 

23. Amendment or Termination of the Agreement. The Committee may at any time terminate or amend this Agreement in any respect;
provided, however, that the Committee will not, without the approval of the Optionee, amend this Agreement in any manner that impairs the rights of Optionee. 

24. Definitions. As used in this Agreement, the following terms will have the following meanings: 

“Board” means the Board of Directors of the Company. 

“Cause” has the meaning set forth in the Change of Control Agreement. 

“Change of Control Agreement” means the Change of Control Retention and Severance Agreement between Participant and
the Company dated on or about December 16, 2013. 
 “Code” means the Internal Revenue Code of 1986, as amended.

 “Committee” means the Compensation Committee of the Board. 

“Disability” means a disability, whether temporary or permanent, partial or total, as determined by the Committee.

 “Exercise Price” means the price at which a holder of an Option may purchase the Shares issuable upon exercise of
the Option. 

  
 -8- 

 “Fair Market Value” means, as of any date, the value of a share of the
Company’s Common Stock determined as follows: 
  

	 	(a)	if such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal national securities exchange on which the Common Stock is
listed or admitted to trading as reported in The Wall Street Journal; 

  

	 	(b)	if such Common Stock is publicly traded but is not quoted on the Nasdaq Stock Market nor listed or admitted to trading on a national securities exchange, the average of the closing bid and asked prices on the date of
determination as reported in The Wall Street Journal; or 

  

	 	(c)	if none of the foregoing is applicable, by the Committee in good faith. 

“Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company
if each of such corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the
Company if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

“Termination” or “Terminated” means, for purposes of this Agreement with respect to the
Optionee, that the Optionee has for any reason ceased to provide services as an employee, officer, director, consultant, independent contractor, or advisor to the Company or a Parent or Subsidiary of the Company. An employee will not be deemed to
have ceased to provide services in the case of (i) sick leave, (ii) military leave, or (iii) any other leave of absence approved by the Committee, provided, that such leave is for a period of not more than 90 days, unless reemployment
upon the expiration of such leave is guaranteed by contract or statute or unless provided otherwise pursuant to formal policy adopted from time to time by the Company and issued and promulgated to employees in writing. In the case of the Optionee is
on an approved leave of absence, the Committee may make such provisions respecting suspension of vesting of this Option while on leave from the employ of the Company or a Subsidiary as it may deem appropriate, except that in no event may this Option
be exercised after the expiration of the term set forth in this Agreement. The Committee will have sole discretion to determine whether the Optionee has ceased to provide services and the effective date on which the Optionee ceased to provide
services (the “Termination Date”). 
 [Remainder of Page Intentionally Left Blank] 

  
 -9- 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in duplicate by
its duly authorized representative and Optionee has executed this Agreement in duplicate as of the Date of Grant. 
  

							
	CEPHEID	 		 	JAMES POST, OPTIONEE
				
	By: 	 	 /s/ John L. Bishop
	 		 	/s/ James Post
		 		 		 	(Signature)
			
	 	 		 	
	(Please print name)	 		 	
			
	John L. Bishop	 		 	
	 Chairman and CEO
	 		 	
	(Please print title)	 		 	

  
 -10- 

 EXHIBIT A 

NON-PLAN STOCK OPTION EXERCISE AGREEMENT 

 Exhibit A 

CEPHEID 
 NON-PLAN
STOCK OPTION EXERCISE AGREEMENT 
 I hereby elect to purchase the number of shares of Common Stock (the
“Shares”) of Cepheid (the “Company”) as set forth below: 
  

									
	Optionee:	 	 James Post
	 		 	Number of Shares Purchased:	 	  

	Social Security Number:	 	  
	 		 	Purchase Price per Share:	 	 $

	Address:	 	  
	 		 	Aggregate Purchase Price:	 	  

		 	  
	 		 	Date of Option Agreement:	 	 December 16, 2013

	Type of Option:	 	 Non-Qualified Stock Option
	 		 	Exact Name of Title to Shares:	 	
		 		 		 	  

 1. Delivery of Purchase Price. Optionee hereby delivers to the Company the Aggregate Purchase Price for the Shares, to
the extent permitted in the Non-Plan Stock Option Agreement (the “Option Agreement”) as follows (check as applicable and complete): 
  

	 ̈	in cash (by check) in the amount of $        , receipt of which is acknowledged by the Company; 

 

	 ̈	through a “same-day-sale” commitment, delivered herewith, from Optionee and the NASD Dealer named therein, in the amount of $        ; or 

 

	 ̈	through a “margin” commitment, delivered herewith from Optionee and the NASD Dealer named therein, in the amount of $        . 

2. Undertakings. If Optionee is married, the Spousal Consent, attached hereto as Exhibit 1, should be completed by Optionee’s spouse and
returned with this Agreement. Optionee understands that any purchase or sale of the Shares must be in compliance with the Company’s insider trading policy, as such policy may be amended from time to time. 

3. Tax Consequences. OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF OPTIONEE’S PURCHASE OR DISPOSITION
OF THE SHARES. OPTIONEE REPRESENTS THAT OPTIONEE HAS CONSULTED WITH ANY TAX CONSULTANT(S) OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE SHARES AND THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE. 

 4. Entire Agreement. The Option Agreement is incorporated herein by reference. This Non-Plan Stock Option Exercise Agreement and the Option
Agreement constitute the 

 
entire agreement and understanding of the parties and supersede in their entirety all prior understandings and agreements of the Company and Optionee with respect to the subject matter hereof,
and are governed by California law except for that body of law pertaining to choice of law or conflict of law. 
  

							
	Date:	 	  
	 		 	  

		 		 		 	Signature of Optionee

 Spousal Consent 

I have read the foregoing Non-Plan Stock Option Exercise Agreement (the “Agreement”) and I know its contents. I
consent to and approve of the Agreement, and agree that the shares of the Common Stock of Cepheid purchased pursuant to the Agreement (the “Shares”) including any interest I may have in the Shares are subject to all the
provisions of the Agreement. I will take no action at any time to hinder application of the Agreement to the Shares or any interest I may have in the Shares. 
  

							
	  
	 		 	Date:	 	  

	Signature of Optionee’s Spouse	 		 		 	
				
	  
	 		 		 	
	Spouse’s Name	 		 		 	
				
	 James Post
	 		 		 	
	Optionee’s Name

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00230-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00230-of-00352.parquet"}]]