Document:

Kraft Foods Group, Inc. Change in Control Plan

 Exhibit 10.18 
 KRAFT FOODS GROUP, INC. 
 CHANGE IN CONTROL PLAN FOR KEY EXECUTIVES 

ADOPTED: OCTOBER 2, 2012 

 KRAFT FOODS GROUP, INC.

 CHANGE IN CONTROL PLAN FOR KEY
EXECUTIVES 
 1. Definitions 
 For purposes of the Change in Control Plan for Key Executives, the following terms are defined as set forth below (unless the context clearly indicates otherwise): 

 

			
	Affiliate	  	Any entity controlled by, controlling or under common control with the Company.
		
	Annual Base Salary	  	Twelve times the higher of (i) the highest monthly base salary paid or payable to the Participant by the Company and its Affiliates in respect of the twelve-month period immediately
preceding the month in which the Change in Control occurs, or (ii) the highest monthly base salary in effect at any time thereafter, in each case including any base salary that has been earned and deferred.
		
	Board	  	The Board of Directors of the Company.
		
	Annual Incentive Award Target	  	The annual incentive award that the Participant would receive in a fiscal year under the Management Incentive Plan or any comparable annual incentive plan if the target goals are
achieved.
		
	Cause	  	As defined in Section 3.2(b)(i) of this Plan.
		
	Change in Control	  	 “Change in Control” means the occurrence of any of the following events: (A) Acquisition of 20% or more of the
outstanding voting securities of the Company by another entity or group; excluding, however, the following:
  
 (1) any acquisition by the Company or any of its Affiliates;
  
 (2) any acquisition by an employee benefit plan or related trust sponsored or maintained by the Company or any of its Affiliates; or

 
 (3) any acquisition pursuant to a merger or consolidation described in clause (C) of
this definition.
  
 (B) During any consecutive 24 month period, persons who
constitute the Board at the beginning of such period cease to constitute at least 50% of the Board; provided that each new Board member who is approved by a majority of the directors who began such 24 month period shall be deemed to have been a
member of the Board at the beginning of such 24 month period;
  
 (C) The
consummation of a merger or consolidation of the Company with another company, and the Company is not the surviving company; or, if after such transaction, the other entity owns, directly or indirectly, 50% or more of the outstanding voting
securities of the Company; excluding, however, a transaction pursuant to which all or substantially all of the

  
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		    	 individuals or entities who are the beneficial owners of the outstanding voting securities of the Company immediately prior
to such transaction will beneficially own, directly or indirectly, more than 50% of the combined voting power of the outstanding securities entitled to vote generally in the election of directors (or similar persons) of the entity resulting from
such transaction (including, without limitation, an entity which as a result of such transaction owns the Company either directly or indirectly) in substantially the same proportions relative to each other as their ownership, immediately prior to
such transaction, of the outstanding voting securities of the Company; or
  

(D) The consummation of a plan of complete liquidation of the Company or the sale or disposition of all or substantially all of the Company’s assets,
other than a sale or disposition pursuant to which all or substantially all of the individuals or entities who are the beneficial owners of the outstanding voting securities of the Company immediately prior to such transaction will beneficially own,
directly or indirectly, more than 50% of the combined voting power of the outstanding securities entitled to vote generally in the election of directors (or similar persons) of the entity purchasing or acquiring the Company’s assets in
substantially the same proportions relative to each other as their ownership, immediately prior to such transaction, of the outstanding voting securities of the Company.
  

For the avoidance of doubt, the separation of the Company from Kraft Foods Inc. shall not be considered a Change in Control.

		
	Code	    	The Internal Revenue Code of 1986, as amended from time to time.
		
	Committee	    	The Board’s Compensation Committee or a subcommittee thereof, any successor thereto or such other committee or subcommittee as may be designated by the Board to
administer the Plan.
		
	Company	    	Kraft Foods Group, Inc., a corporation organized under the laws of the Commonwealth of Virginia, or any successor thereto.
		
	Date of Termination	    	If the Participant’s employment is terminated by:
			
		    	 (i)
	  	The Employer for Cause or by the Participant for Good Reason, the Date of Termination shall be the date on which the Participant or the Employer, as the case may be, receives the
Notice of Termination (as described in Section 3.2(c)) or any later date specified therein, as the case may be.
			
		    	 (ii)
	  	The Employer other than for Cause, death or Disability, the Date of Termination shall be the date on which the Employer notifies the Participant of such
termination.
			
		    	 (iii)
	  	Reason of death or Disability, the Date of Termination shall be the date of death of the Participant or the Disability Effective Date, as the case may be.
		
		    	Notwithstanding the above, in the event that the Date of Termination as determined above is not the last date on which the Participant is employed by the Employer, the
Participant’s Date of Termination shall be the last date on which the Participant is employed by the Employer.

  
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	Disability	  	As defined in Section 3.2(b) (ii).
		
	 Disability Effective

Date
	  	As defined in Section 3.2(b) (ii).
		
	Effective Date	  	October 2, 2012.
		
	Employer	  	The Company or any of its Affiliates.
		
	Excise Tax	  	The excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.
		
	Good Reason	  	As defined in Section 3.2(a).
		
	Key Executive	  	An employee who is employed on a regular basis by the Employer and (i) is serving as the Company’s Executive Chairman and/or Chief Executive Officer, (ii) is serving
in a position that reports directly to the Company’s Executive Chairman and/or Chief Executive Officer (“Direct Reports”) or (ii) is otherwise designated by the Committee as eligible to participate in this Plan.
		
	Long-Term Incentive Plan Award Target	  	The long-term award that the Participant would receive during a performance cycle under the Long-Term Incentive Plan or any comparable incentive plan if the target goals specified
under the Long-Term Incentive Plan or such comparable incentive plan are achieved.
		
	Net After-Tax Benefit	  	The present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of a Participant’s Payments less any Federal, state, and local income
taxes and any Excise Tax payable on such amount.
		
	Non-Competition Agreement	  	The agreement of a Participant, not to, without the Company’s prior written consent, engage in any activity or provide any services, whether as a director, manager, supervisor,
employee, adviser, consultant or otherwise, for a period of up to one (1) year following the Participant’s Date of Termination, with a company that is substantially competitive with a business conducted by the Company and its
Affiliates.
		
	Non-Solicitation Agreement	  	The agreement of a Participant that he or she will not solicit, directly or indirectly, any employee of the Company or an Affiliate, or a surviving entity following a Change in
Control, to leave the Company or an Affiliate and to work for any other entity, whether as an employee, independent contractor or in any other capacity, for a period of up to one (1) year following the Participant’s Date of
Termination.
		
	Non-U.S. Executive	  	A Key Executive whose designated home country, for purposes of the Employer’s personnel and benefits programs and policies, is other than the United
States.

  
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	Participant	  	A Key Executive who meets the eligibility requirements of Section 2.1; provided, however, that any Non-U.S. Executive who, under the laws of his or her designated home country or
the legally enforceable programs or policies of the Employer in such designated home country, is entitled to receive, in the event of termination of employment (whether or not by reason of a Change in Control), separation benefits at least equal in
aggregate amount to the Separation Pay prescribed under Section 3.3(b), of this Plan shall not be considered a Participant for the purposes of this Plan.
		
	Payment	  	Any payment or distribution in the nature of compensation (within the meaning of Section 280G (b) (2) of the Code) to or for the benefit of the Participant, whether paid or
payable pursuant to this Plan or otherwise.
		
	Plan	  	The Kraft Foods Group, Inc. Change in Control Plan for Key Executives, as set forth herein.
		
	Plan Administrator	  	The third-party accounting, actuarial, consulting or similar firm retained by the Company prior to a Change in Control to administer this Plan following a Change in
Control.
		
	Separation Benefits	  	The amounts and benefits payable or required to be provided in accordance with Section 3.3 of this Plan.
		
	Separation Pay	  	The amount or amounts payable in accordance with Section 3.3(b) of this Plan.
		
	Separation Pay Multiple	  	 For a Participant who served as Executive Chairman and/or Chief Executive Officer immediately prior to the Change in Control, the
Separation Pay Multiple is three (3).
  
 For a Participant who served as a
Direct Report immediately prior to the Change in Control, the Separation Pay Multiple is two (2).
  
 For all other Participants, the Separation Pay Multiple is one and one-half (1.5).

		
	U.S. Executive	  	A Participant whose designated home country, for purposes of the Employer’s personnel and benefits programs and policies, is the United States.

 2. Eligibility 
 2.1. Participation. Except as set forth in the definition of Participant above, each employee who is a Key Executive on the Effective Date shall be a Participant in the Plan effective as of the
Effective Date and each other employee shall become a Participant in the Plan effective as of the date of the employee’s promotion, hire or other designation as a Key Executive. 

  
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 2.2. Duration of Participation. A Participant shall cease to be a Participant in the Plan if
(i) the Participant terminates employment with the Employer under circumstances not entitling him or her to Separation Benefits or (ii) the Participant otherwise ceases to be (or to be designated) a Key Executive, provided that no Key
Executive may be so removed from Plan participation in connection with or in anticipation of a Change in Control that actually occurs. However, a Participant who is entitled, as a result of ceasing to be (or to be designated) a Key Executive of the
Employer, to receive benefits under the Plan shall remain a Participant in the Plan until the amounts and benefits payable under the Plan have been paid or provided to the Participant in full. 

3. Separation Benefits 
 3.1. Right to
Separation Benefits. A Participant shall be entitled to receive from the Employer the Separation Benefits as provided in Section 3.3, if a Change in Control has occurred and the Participant’s employment by the Employer is terminated
under circumstances specified in Section 3.2(a), whether the termination is voluntary or involuntary, and if (i) such termination occurs after such Change in Control and on or before the second anniversary thereof, or (ii) such
termination is reasonably demonstrated by the Participant to have been initiated by a third party that has taken steps reasonably calculated to effect a Change in Control or otherwise to have arisen in connection with or in anticipation of such
Change in Control and such Change in Control occurs within 90 days of the termination. Termination of employment shall have the same meaning as “separation from service” within the meaning of Treasury Regulation § 1.409A-1(h).

 3.2. Termination of Employment. 
  

	(a)	Terminations which give rise to Separation Benefits under this Plan. The circumstances specified in this Section 3.2(a) are any termination of
employment with the Employer by action of the Company or any of its Affiliates or by a Participant for Good Reason, other than as set forth in Section 3.2(b) below. For purposes of this Plan, “Good Reason” shall mean:

  

	 	(i)	the assignment to the Participant of any duties substantially inconsistent with the Participant’s position, authority, duties or responsibilities in effect
immediately prior to the Change in Control, or any other action by the Company or the Employer that results in a marked diminution in the Participant’s position, authority, duties or responsibilities, excluding for this purpose:

  

	 	a.	changes in the Participant’s position, authority, duties or responsibilities which are consistent with the Participant’s education, experience, etc.;

  

	 	b.	an isolated, insubstantial and inadvertent action not taken in bad faith and that is remedied by the Company and/or the Employer promptly after receipt of notice
thereof given by the Participant; 

  

	 	(ii)	any material reduction in the Participant’s base salary, annual incentive or long-term incentive opportunity as in effect immediately prior to the Change in
Control; 

  
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	 	(iii)	the Employer requiring the Participant to be based at any office or location other than any other location which does not extend the Participant’s home to work
commute as of the time of the Change in Control by more than 50 miles; 

  

	 	(iv)	the Employer requiring the Participant to travel on business to a substantially greater extent than required immediately prior to the Change in Control; or

  

	 	(v)	any failure by the Company to require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to assume expressly and agree to perform this Plan in the same manner and to the same extent that the Company or the Employer would be required to perform it if no such succession had taken place, as required by
Article 5. 

 The Participant must notify the Company of any event purporting to constitute Good Reason within 45 days following
the Participant’s knowledge of its existence, and the Company or the Employer shall have 20 days in which to correct or remove such Good Reason, or such event shall not constitute Good Reason. 

 

	(b)	Terminations which DO NOT give rise to Separation Benefits under this Plan. Notwithstanding Section 3.2(a), if a Participant’s employment is
terminated for Cause or Disability (as those terms are defined below) or as a result of the Participant’s death, or the Participant terminates his or her own employment other than for Good Reason, the Participant shall not be entitled to
Separation Benefits under the Plan, regardless of the occurrence of a Change in Control. 

  

	 	(i)	A termination for “Cause” shall have occurred where a Participant is terminated because of: 

 

	 	a.	Continued failure to substantially perform the Participant’s job’s duties (other than resulting from incapacity due to disability); 

 

	 	b.	Gross negligence, dishonesty, or violation of any reasonable rule or regulation of the Company or the Employer where the violation results in significant damage to the
Company or the Employer; or 

  

	 	c.	Engaging in other conduct which adversely reflects on the Company or the Employer in any material respect. 

 

	 	(ii)	A termination upon Disability shall have occurred where a Participant is absent from the Participant’s duties with the Employer on a full-time basis for 180
consecutive days as a result of incapacity due to mental or physical illness which is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Participant or the Participant’s legal
representative. In such event, the Participant’s employment with the Employer shall terminate effective on the 30th day after receipt of such notice by the Participant (the “Disability Effective Date”), provided that, within the 30
days after such receipt, the Participant shall not have returned to full-time performance of the Participant’s duties. 

  
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	(c)	Notice of termination. Any termination of employment initiated by the Employer for Cause, or by the Participant for Good Reason, shall be communicated by
a Notice of Termination to the other party. For purposes of this Plan, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Plan relied upon, (ii) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Participant’s employment under the provision so indicated, and (iii) specifies the date upon which the
Participant’s termination of employment is expected to occur (which date shall be not more than 30 days after the giving of such notice), provided, however, that such specified date shall not be considered the Date of Termination for any
purpose of this Plan if such date differs from the Participant’s actual Date of Termination. The failure by the Participant or the Employer to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of
Good Reason or Cause shall not waive any right of the Participant or the Employer, respectively, hereunder or preclude the Participant or the Employer, respectively, from asserting such fact or circumstance in enforcing the Participant’s or the
Employer’s rights hereunder. 

 3.3. Separation Benefits. If a Participant’s employment is terminated under the
circumstances set forth in Section 3.2(a) entitling the Participant to Separation Benefits, and if the Participant signs a Non-Competition Agreement and a Non-Solicitation Agreement, the Company shall pay or provide, as the case may be, to the
Participant the amounts and benefits set forth in items (a) through (e) below (the “Separation Benefits”): 
  

	(a)	The Employer shall pay to the Participant, in a lump sum in cash within 30 days after the Date of Termination (or, if later, 30 days after the date of the Change in
Control), or on such later date as required under Section 3.3(g), the sum of (A) the Participant’s Annual Base Salary through the Date of Termination to the extent not theretofore paid, (B) the product of (x) the
Participant’s Annual Incentive Award Target and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination and the denominator of which is 365, (C) the product of
(x) the Participant’s Long-Term Incentive Award Target and (y) a fraction, the numerator of which is the number of days completed in the applicable performance cycle through the Date of Termination and the denominator of which is the
total number of days in the performance cycle, and (D) any accrued vacation pay, in each case to the extent not theretofore paid. The sum of the amounts described in sub clauses (A), (B), (C) and (D), shall be referred to as the
“Accrued Obligations”, and, in the case of the amounts described in sub clauses (B) and (C), shall be reduced by any amount paid or payable under the Kraft Foods Group, Inc. 2012 Performance Incentive Plan on account of the same
fiscal year or performance cycle, as applicable. 

  

	(b)	The Employer also shall pay to the Participant, in a lump sum in cash within 30 days after the Date of Termination (or, if later, 30 days after the date of the Change
in Control), or on such later date as required under Section 3.3(g), an amount (“Separation Pay”) equal to the product of (A) the applicable Separation Pay Multiple and (B) the sum of (x) the Participant’s Annual
Base Salary and (y) the Participant’s Annual Incentive Award Target, reduced (but not below zero) in the case of any Participant who is a Non-U.S. Executive 

  
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by the U.S. dollar equivalent (determined as of the Participant’s Date of Termination) of any payments made to the Participant under the laws of his or her designated home country or any
program or policy of the Employer in such country on account of the Participant’s termination of employment. 

  

	(c)	Solely with respect to U.S. Participants, for a number of years equal to the applicable Separation Pay Multiple after the Participant’s Date of Termination (or, if
later, the date of the Change in Control), or such longer period as may be provided by the terms of the appropriate plan, program, practice or policy, the Employer shall continue welfare benefits to the Participant and/or the Participant’s
family at least equal to those which would have been provided to them in accordance with the plans, programs, practices and policies (including, without limitation, medical, prescription, dental, disability, employee/spouse/child life insurance,
executive life, estate preservation (second-to-die life insurance) and travel accident insurance plans and programs), as if the Participant’s employment had not been terminated, or, if more favorable to the Participant, as in effect generally
at any time thereafter with respect to other peer executives of the Company and its Affiliates and their families; provided, however, that if the Participant becomes reemployed with another employer and is eligible to receive medical or other
welfare benefits under another employer-provided plan, the medical and other welfare benefits described herein shall be secondary to those provided under such other plan during such applicable period of eligibility. The period of continuation of any
group medical plan coverage under Section 4980B of the Code (the “COBRA Period”) shall run concurrently during the period for which medical coverage is provided to the Participant pursuant to this Section 3.3(c). The provision of
medical coverage made during the COBRA Period is intended to qualify for the exception to deferred compensation as a medical benefit provided in accordance with the provisions of Section 409A of the Code and Treasury Regulation
§1.409A-1(b)(9)(v)(B). Any reimbursements required to be made to a Participant under any arrangement pursuant to this Section 3.3(c) that is not described in the preceding sentence or is not excepted from Section 409A of the Code
under Treasury Regulation § 1.409A-1(a)(5) shall be made to the Participant no later than the end of the Participant’s second taxable year following the expense being reimbursed was incurred. The maximum amount of any such welfare benefits
provided to a Participant under this provision in any calendar year shall not be increased or decreased to reflect the amount of such welfare benefits provided to such Participant under this provision in a prior or subsequent calendar year. For
purposes of determining the Participant’s eligibility for retiree benefits pursuant to such welfare plans, practices, programs and policies, the Participant shall be considered to have remained employed for a number of years equal to the
applicable Separation Pay Multiple after the Date of Termination; provided, however, that the Participant’s commencement of such retiree benefits shall not be any sooner than the date on which the Participant attains 55 years of age and
provided, further, that the Participant’s costs under any such retiree benefits plans, practices, programs or policies shall be based upon actual service with the Company and its Affiliates. 

 

	(d)	 The Employer shall, at its sole expense, provide the Participant with outplacement services through the provider of the Company’s choice, the
scope of which shall be chosen by the Participant in his or her sole discretion within the terms and conditions of the Company’s 

  
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outplacement services policy as in effect immediately prior to the Change in Control, but in no event shall such outplacement services continue for more than two years after the calendar year in
which the Participant terminates employment. 

  

	(e)	The Employer shall, for a number of years equal to the applicable Separation Pay Multiple after the Participant’s Date of Termination, or after the Change in
Control, if later, or such longer period as may be provided by the terms of the appropriate perquisite, continue the perquisites at least equal to those which would have been provided to them in accordance with the perquisites in effect immediately
prior to the Change in Control; provided, however, that the maximum value of perquisites provided to a Participant under this provision in any calendar year shall not be increased or decreased to reflect the value of perquisites provided to such
Participant under this provision in a prior or subsequent calendar year. Any reimbursements to a Participant for costs associated with such continued perquisites shall be made no later than the end of the Participant’s second taxable year
following the date the Participant incurred such cost. This clause does not apply to personal use of the Company aircraft to the extent that this perquisite is in effect for any Key Executive immediately prior to the Change in Control.

  

	(f)	To the extent not theretofore paid or provided, the Employer shall pay or provide to the Participant, at the time otherwise payable, any other amounts or benefits
required to be paid or provided or that the Participant is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company and its Affiliates. 

 

	(g)	Notwithstanding the foregoing, if the Participant is a “specified employee” within the meaning of Section 409A of the Code, then (i) any payments
described in Sections 3.3(a) and (b) which the Company determines constitute the payment of nonqualified deferred compensation, within the meaning of Section 409A of the Code, shall be delayed and become payable within five days after the
six-month anniversary of the Participant’s termination of employment and (ii) any benefits provided under Sections 3.3(c) and (e) which the Company determines constitute the payment of nonqualified deferred compensation, within the
meaning of Section 409A of the Code, shall be provided at the Participant’s sole cost during the six-month period after the date of the Participant’s termination of employment, and within five days after the expiration of such period
the Company shall reimburse the Participant for the portion of such costs payable by the Company pursuant to Sections 3.3(c) and (e) hereof. 

  

	(h)	For all purposes under the applicable Company non-qualified defined benefit pension plan, the Company shall credit the Participant with a number of additional years of
service equal to the applicable Separation Pay Multiple and shall add a number of years equal to the applicable Separation Pay Multiple to the Participant’s age. 

 3.4. Certain Additional Payments by the Employer. 
  

	(a)	Anything in this Plan to the contrary notwithstanding, with respect to any Participant who is a citizen or resident of the United States, in the event it shall be
determined that any Payment would be subject to the Excise Tax, then the Payments to the Participant, in the aggregate, shall be the greater of: 

  

	 	(i)	The Net After-Tax Benefit, or 

  
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	 	(ii)	An amount (the “Reduced Amount”) that is one dollar less than the smallest amount that would give rise to any Excise Tax. 

The Company and its Affiliates shall bear no responsibility for any Excise Tax payable on any Reduced Amount pursuant to a subsequent
claim by the Internal Revenue Service or otherwise. For purposes of determining the Reduced Amount under this Section 3.4(a), amounts otherwise payable to the Participant under the Plan shall be reduced, to the extent necessary, in the
following order: first, Separation Pay under Section 3.3(b), then Accrued Obligations payable under Section 3.3(a), other than Annual Base Salary through the Date of Termination, followed by outplacement services payable under
Section 3.3(d), welfare benefits payable under Section 3.3(c), and, finally, perquisites payable under Section 3.3(e). In the event that such reductions are not sufficient to reduce the aggregate Payments to the Participant to the
Reduced Amount, then Payments due the Participant under any other plan shall be reduced in the order determined by the Plan Administrator in its sole discretion. 
  

	(b)	All determinations required to be made under this Section 3.4, including whether a Reduced Amount or a Net After-Tax Benefit is payable, and the assumptions to be
utilized in arriving at such determinations, shall be made by the Company’s independent auditors or such other nationally recognized certified public accounting firm as may be designated by the Company and approved by the Participant (the
“Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Participant within 15 business days of the receipt of notice from the Participant that there has been a Payment, or such earlier time as
is requested by the Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any determination by the Accounting Firm shall be binding upon the Company, its Affiliates and the Participant. 

3.5. Payment Obligations Absolute. Upon a Change in Control and termination of employment under the circumstances described in
Section 3.2(a), the obligations of the Company and its Affiliates to pay or provide the Separation Benefits described in Section 3.3 shall be absolute and unconditional and shall not be affected by any circumstances, including, without
limitation, any set-off, counterclaim, recoupment, defense or other right which the Company or any of the Affiliates may have against any Participant. In no event shall a Participant be obligated to seek other employment or take any other action by
way of mitigation of the amounts payable to a Participant under any of the provisions of this Plan, nor shall the amount of any payment or value of any benefits hereunder be reduced by any compensation or benefits earned by a Participant as a result
of employment by another employer, except as specifically provided under Section 3.3. 
 3.6. Non-Competition and Non-Solicitation.
Upon a Change in Control and termination of employment under the circumstances described in Section 3.2(a), the obligations of the Company and its Affiliates to pay or provide the Separation Benefits described in Section 3.3 are contingent
on the Participant’s adhering to the Non-Competition Agreement and the Non-Solicitation Agreement. Should the Participant violate the Non-Competition Agreement or Non-

  
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Solicitation Agreement, the Participant will be obligated to pay back to the Employer all payments received pursuant to this Plan and the Employer will have no further obligation to pay the
Participant any payments that may be remaining due under this Plan. 
 3.7. Non-Disparagement. Upon a Change in Control and termination
of employment under the circumstances described in Section 3.2(a), the obligations of the Company and its Affiliates to pay or provide the Separation Benefits described in Section 3.3 are contingent on the Participant’s adhering to
certain non-disparagement provisions. The Participant agrees that, in discussing their relationship with the Employer, such Participant will not disparage, discredit or otherwise treat in a detrimental manner the Employer, its affiliated and parent
companies or their officers, directors and employees. The Employer agrees that, in discussing its relationship with the Participant, it will not disparage or discredit such Participant or otherwise treat such Participant in a detrimental way.

 3.8 General Release of Claims. Upon a Change in Control and termination of employment under the circumstances described in
Section 3.2(a), the obligations of the Company and its Affiliates to pay or provide the Separation Benefits described in Section 3.3 are contingent on the Participant’s (for him/herself, his/her heirs, legal representatives and
assigns) agreement to execute a general release in the form and substance to be provided by Employer, releasing the Employer, its affiliated companies and their officers, directors, agents and employees from any claims or causes of action of any
kind that the Participant might have against any one or more of them as of the date of this Release, regarding his/her employment or the termination of that employment. The Participant understands that this Release applies to all claims (s)he might
have under any federal, state or local statute or ordinance, or the common law, for employment discrimination, wrongful discharge, breach of contract, violations of Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age
Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Employee Retirement Income Security Act, the Americans With Disabilities Act, or the Family and Medical Leave Act, and all other claims related in any way to
Participant’s employment or the termination of that employment. 
 3.9. Non-Exclusivity of Rights. Nothing in this Plan shall
prevent or limit the Participant’s continuing or future participation in any plan, program, policy or practice provided by the Company or any of the Affiliates and for which the Participant may qualify, nor, subject to Section 6.2, shall
anything herein limit or otherwise affect such rights as the Participant may have under any contract or agreement with the Company or any of the Affiliates. Amounts or benefits which the Participant is otherwise entitled to receive under any plan,
policy, practice or program of or any contract or agreement with the Company or any of the Affiliates shall be payable in accordance with such plan, policy, practice or program or contract or agreement, except as explicitly modified by this Plan.

 4. Successor to Company 

This Plan shall bind any successor of the Company, its assets or its businesses (whether direct or indirect, by purchase, merger, consolidation or
otherwise), in the same manner and to the same extent that the Company or its Affiliates would be obligated under this Plan if no succession had taken place. 

  
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 In the case of any transaction in which a successor would not by the foregoing provision or by operation of
law be bound by this Plan, the Company shall require such successor expressly and unconditionally to assume and agree to perform the Company’s or its Affiliates’ obligations under this Plan, in the same manner and to the same extent that
the Company would be required to perform if no such succession had taken place. The term “Company,” as used in this Plan, shall mean the Company as hereinbefore defined and any successor or assignee to the business or assets which by
reason hereof becomes bound by this Plan. 
 5. Duration, Amendment and Termination 

5.1. Duration. This Plan shall remain in effect until terminated as provided in Section 5.2. Notwithstanding the foregoing, if a Change in
Control occurs, this Plan shall continue in full force and effect and shall not terminate or expire until after all Participants who become entitled to any payments or benefits hereunder shall have received such payments or benefits in full.

 5.2. Amendment and Termination. The Plan may be terminated or amended in any respect by resolution adopted by the Committee unless a
Change in Control has previously occurred. However, after the Board has knowledge of a possible transaction or event that if consummated would constitute a Change in Control, this Plan may not be terminated or amended in any manner which would
adversely affect the rights or potential rights of Participants, unless and until the Board has determined that all transactions or events that, if consummated, would constitute a Change in Control have been abandoned and will not be consummated,
and, provided that, the Board does not have knowledge of other transactions or events that, if consummated, would constitute a Change in Control. If a Change in Control occurs, the Plan shall no longer be subject to amendment, change, substitution,
deletion, revocation or termination in any respect that adversely affects the rights of Participants, and no Participant shall be removed from Plan participation. 
 6. Miscellaneous 
 6.1. Legal Fees. The Company agrees to pay, to the full extent
permitted by law, all legal fees and expenses which the Participant may reasonably incur as a result of any contest by the Company or the Affiliates, the Participant or others of the validity or enforceability of, or liability under, any provision
of this Plan or any guarantee of performance thereof (including as a result of any contest by the Participant about the amount of any payment pursuant to this Plan), plus in each case interest on any delayed payment at the applicable Federal rate
provided for in Section 7872(f)(2)(A) of the Code; provided that the Company shall have no obligation under this Section 6.1 to the extent the resolution of any such contest includes a finding denying, in total, the Participant’s
claims in such contest. 
 6.2. Employment Status. This Plan does not constitute a contract of employment or impose on the Participant,
the Company or the Participant’s Employer any obligation to retain the Participant as an employee, to change the status of the Participant’s employment as an “at will” employee, or to change the Company’s or the
Affiliates’ policies regarding termination of employment. 

  
 13 

 6.3. Tax Withholding. The Employer may withhold from any amounts payable under this Plan such
Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
 6.4. Validity and
Severability. The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect, and any prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 6.5. Governing
Law. The validity, interpretation, construction and performance of the Plan shall in all respects be governed by the laws of the Commonwealth of Virginia, without reference to principles of conflict of law. 

6.6. Section 409A of the Code. The Plan shall be interpreted, construed and operated to reflect the intent of the Company that all aspects of
the Plan shall be interpreted either to be exempt from the provisions of Section 409A of the Code or, to the extent subject to Section 409A of the Code, comply with Section 409A of the Code and any regulations and other guidance
thereunder. Notwithstanding anything to the contrary in Section 5.2, this Plan may be amended at any time, without the consent of any Participant, to avoid the application of Section 409A of the Code in a particular circumstance or to the
extent determined necessary or desirable to satisfy any of the requirements under Section 409A of the Code, but the Employer shall not be under any obligation to make any such amendment. Nothing in the Plan shall provide a basis for any person
to take action against the Employer based on matters covered by Section 409A of the Code, including the tax treatment of any award made under the Plan, and the Employer shall not under any circumstances have any liability to any Participant or
other person for any taxes, penalties or interest due on amounts paid or payable under the Plan, including taxes, penalties or interest imposed under Section 409A of the Code. 
 6.7 Claim Procedure. If a Participant makes a written request alleging a right to receive Separation Benefits under the Plan or alleging a right to receive an adjustment in benefits being paid
under the Plan, the Company shall treat it as a claim for benefits. All claims for Separation Benefits under the Plan shall be sent to the General Counsel of the Company and must be received within 30 days after the Date of Termination. If the
Company determines that any individual who has claimed a right to receive Separation Benefits under the Plan is not entitled to receive all or a part of the benefits claimed, it will inform the claimant in writing of its determination and the
reasons therefore in terms calculated to be understood by the claimant. The notice will be sent within 90 days of the written request, unless the Company determines additional time, not exceeding 90 days, is needed and provides the Participant with
notice, during the initial 90-day period, of the circumstances requiring the extension of time and the length of the extension. The notice shall make specific reference to the pertinent Plan provisions on which the denial is based, and describe any
additional material or information that is necessary. Such notice shall, in addition, inform the claimant what procedure the claimant should follow to take advantage of the review procedures set forth below in the event the claimant desires to
contest the denial of the claim. The claimant may within 90 days thereafter submit in writing to the Plan Administrator a notice that the claimant contests the denial of his or her claim by the Company

  
 14 

 
and desires a further review. The Plan Administrator shall within 60 days thereafter review the claim and authorize the claimant to appear personally and review the pertinent documents and submit
issues and comments relating to the claim to the persons responsible for making the determination on behalf of the Plan Administrator. The Plan Administrator will render its final decision with specific reasons therefor in writing and will transmit
it to the claimant within 60 days of the written request for review, unless the Plan Administrator determines additional time, not exceeding 60 days, is needed, and so notifies the Participant during the initial 60-day period. If the Plan
Administrator fails to respond to a claim filed in accordance with the foregoing within 60 days or any such extended period, the Plan Administrator shall be deemed to have denied the claim. The Committee may revise the foregoing procedures as it
determines necessary to comply with changes in the applicable U.S. Department of Labor regulations. 
 6.8. Unfunded Plan Status. This
Plan is intended to be an unfunded plan and to qualify as a severance pay plan within the meaning of Labor Department Regulations Section 2510.3-2(b). All payments pursuant to the Plan shall be made from the general funds of the Employer and no
special or separate fund shall be established or other segregation of assets made to assure payment. No Participant or other person shall have under any circumstances any interest in any particular property or assets of the Company or its Affiliates
as a result of participating in the Plan. Notwithstanding the foregoing, the Committee may authorize the creation of trusts or other arrangements to assist in accumulating funds to meet the obligations created under the Plan; provided, however,
that, unless the Committee otherwise determines, the existence of such trusts or other arrangements is consistent with the “unfunded” status of the Plan. 
 6.9. Reliance on Adoption of Plan. Subject to Section 5.2, each person who shall become a Key Executive shall be deemed to have served and continue to serve in such capacity in reliance upon
the Change in Control provisions contained in this Plan. 
 6.10. Plan Supersedes prior U.S. Arrangements with one Exception. For the
period of two years following the occurrence of a Change in Control, the provisions of this Program shall supersede, with respect to U.S. Participants, any and all plans, programs, policies and arrangements of the Company or its Affiliates providing
severance benefits, EXCEPT FOR the 2012 Performance Incentive Plan. 
 IN WITNESS WHEREOF, the Company has caused this Plan to be executed by
its duly authorized officer effective as of the Effective Date set forth above. 
  

							
		  	KRAFT FOODS GROUP, INC.	  	
				
		  	By:	  	 /s/ Diane Johnson May
	  	
		  		  	Diane Johnson May	  	
		  		  	Executive Vice President, Human Resources	  	

  
 15Third Supplemental Indenture between the Company and Wells Fargo Bank, N.A.

 Exhibit 4.2 
 WATSON PHARMACEUTICALS, INC., 
 as Issuer 

and 

Wells Fargo Bank, National Association, 
 as Trustee 
 THIRD SUPPLEMENTAL INDENTURE 

Dated as of October 2, 2012 
 to the Indenture dated as of August 24, 2009 
 1.875% Senior Notes
due 2017 
 3.250% Senior Notes due 2022 
 4.625% Senior Notes due 2042 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
		  	ARTICLE 1	  			
		  	APPLICATION OF SUPPLEMENTAL INDENTURE	  			
			
	Section 1.01	  	Application of Third Supplemental Indenture	  	 	2	  
			
		  	ARTICLE 2	  			
		  	DEFINITIONS	  			
			
	Section 2.01	  	Certain Terms Defined in the Indenture	  	 	2	  
	Section 2.02	  	Definitions	  	 	2	  
			
		  	ARTICLE 3	  			
		  	FORM AND TERMS OF THE NOTES	  			
			
	Section 3.01	  	Form and Dating	  	 	6	  
	Section 3.02	  	Terms of the Notes	  	 	7	  
	Section 3.03	  	Optional Redemption	  	 	8	  
	Section 3.04	  	Special Mandatory Redemption	  	 	10	  
	Section 3.05	  	Repurchase of Notes upon a Change of Control	  	 	11	  
	Section 3.06	  	Amendment of Limitations on Liens	  	 	12	  
	Section 3.07	  	Amendment of Events of Default	  	 	13	  
			
		  	ARTICLE 4	  			
		  	MISCELLANEOUS	  			
			
	Section 4.01	  	Conflict with Trust Indenture Act	  	 	13	  
	Section 4.02	  	New York Law to Govern	  	 	13	  
	Section 4.03	  	Counterparts	  	 	14	  
	Section 4.04	  	Separability Clause	  	 	14	  
	Section 4.05	  	Ratification	  	 	14	  
	Section 4.06	  	Effectiveness	  	 	14	  
		
	EXHIBIT A – Form of 1.875% Senior Notes due 2017	  	 	A-1	  
		
	EXHIBIT B – Form of 3.250% Senior Notes due 2022	  	 	B-1	  
		
	EXHIBIT C – Form of 4.625% Senior Notes due 2042	  	 	C-1	  

  
 -i-

 THIRD SUPPLEMENTAL INDENTURE 

SUPPLEMENTAL INDENTURE (this “Third Supplemental Indenture”), dated as of October 2, 2012, between WATSON
PHARMACEUTICALS, INC., a Nevada corporation (the “Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee (the “Trustee”). 
 RECITALS OF THE COMPANY 
 WHEREAS, the Company and the Trustee
executed and delivered an Indenture, dated as of August 24, 2009 (the “Base Indenture,” and together with this Third Supplemental Indenture, the “Indenture”), to provide for the issuance by the Company from
time to time of Securities (as defined below) to be issued in one or mores series as provided in the Indenture; 

WHEREAS, Section 901 of the Base Indenture provides, among other things, that the Company and the Trustee may enter into
indentures supplemental to the Base Indenture, without the consent of any Holders (as defined below) of Securities, to establish the form of any Security, as permitted by Section 201 of the Base Indenture, and to provide for the issuance of the
Notes (as defined below), as permitted by Section 301 of the Base Indenture, and to set forth the terms thereof; 

WHEREAS, the Company desires to execute this Third Supplemental Indenture pursuant to Section 201 of the Base Indenture to
establish the form, and pursuant to Section 301 of the Base Indenture to provide for the issuance, of a series of its senior notes designated as its 1.875% Senior Notes due 2017 (the “2017 Notes”), a series of its senior notes
designated as its 3.250% Senior Notes due 2022 (the “2022 Notes”) and a series of its senior notes designated as its 4.625% Senior Notes due 2042 (the “2042 Notes,” and together with the 2017 Notes and the 2022
Notes, the “Notes”), in an initial aggregate principal amount of $1,200,000,000 in the case of the 2017 Notes, $1,700,000,000 in the case of the 2022 Notes and $1,000,000,000 in the case of the 2042 Notes. The 2017 Notes, the 2022
Notes and the 2042 Notes are each a series of Securities as referred to in Section 301 of the Base Indenture; 

WHEREAS, the Company has delivered to the Trustee an Opinion of Counsel and an Officers’ Certificate pursuant to Sections 102
and 903 of the Base Indenture to the effect that the execution and delivery of the Third Supplemental Indenture is authorized or permitted under the Base Indenture and that all conditions precedent provided for in the Base Indenture to the execution
and delivery of this Third Supplemental Indenture to be complied with by the Company have been complied with; 
 WHEREAS,
the Company has requested that the Trustee execute and deliver this Third Supplemental Indenture; 
 WHEREAS, all things
necessary have been done by the Company to make this Third Supplemental Indenture, when executed and delivered by the Company, a valid and legally binding instrument; and 

 WHEREAS, all things necessary have been done by the Company to make the Notes, when
executed by the Company and authenticated and delivered in accordance with the provisions of this Indenture, the valid obligations of the Company; 
 NOW, THEREFORE: 
 In consideration of the premises stated herein and the
purchase of the Notes by the Holders thereof, the Company and the Trustee mutually covenant and agree for the equal and proportionate benefit of the respective Holders from time to time of the Notes as follows: 

ARTICLE 1 

APPLICATION OF SUPPLEMENTAL INDENTURE 
 Section 1.01 Application of Third Supplemental Indenture. Notwithstanding any other provision of this Third Supplemental Indenture, all provisions of this Third Supplemental Indenture are
expressly and solely for the benefit of the Holders of the Notes and any such provisions shall not be deemed to apply to any other securities issued under the Base Indenture and shall not be deemed to amend, modify or supplement the Base Indenture
for any purpose other than with respect to the Notes. Unless otherwise expressly specified, references in this Supplemental Indenture to specific Article numbers or Section numbers refer to Articles and Sections contained in this Supplemental
Indenture as they amend or supplement the Base Indenture, and not the Base Indenture or any other document. All Initial 2017 Notes and Additional 2017 Notes, if any, Initial 2022 Notes and Additional 2022 Notes, if any, and all Initial 2042 Notes
and Additional 2042 Notes, if any, as the case may be, will each be treated as a single series for all purposes of this Indenture, including waivers, amendments, redemptions and offers to purchase. 

ARTICLE 2 

DEFINITIONS 
 Section 2.01 Certain Terms Defined in the Indenture. For purposes of this Third Supplemental Indenture, all capitalized terms used but not defined herein shall have the meanings ascribed to
such terms in the Base Indenture, as amended hereby. 
 Section 2.02 Definitions. For the benefit of the Holders of
the Notes, Section 101 of the Base Indenture shall be amended by adding the following new definitions: 

“Additional Notes” has the meaning specified in Section 3.02(b) hereto. 

“Below Investment Grade Rating Event” means the Notes are rated below Investment Grade Rating by both of the Rating
Agencies on any date commencing upon the first public notice by the Company of the occurrence of a Change of Control or the Company’ s intention to effect a Change of Control and ending 60 days following consummation of such Change of Control
(which period shall be extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by either of the Rating Agencies). 
 “Change of Control” means the occurrence of any of the following: (1) direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or

  
 2 

 
consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its subsidiaries taken as a whole to any “person”
(as that term is used in Section 13(d)(3) of the Exchange Act) other than the Company or one of its subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) as a result of which any
“person” (as that term is used in Section 13(d)(3) of the Exchange Act) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the
Company’s outstanding Voting Stock or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; provided, however,
that a transaction will not be deemed to involve a Change of Control if (a) the Company becomes a direct or indirect wholly owned subsidiary of a holding company and (b)(i) the holders of the Voting Stock of such holding company immediately
following that transaction are substantially the same as the holders of the Company’s Voting Stock immediately prior to that transaction or (ii) no “person” (as that term is used in Section 13(d)(3) of the Exchange Act)
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the voting power of the Voting Stock of such holding company immediately following such transaction;
(3) the Company consolidates with, or merges with or into, any “person” or “group” (as that term is used in Section 13(d)(3) of the Exchange Act), or any “person” or “group” consolidates with, or
merges with or into, the Company, in any such event pursuant to a transaction in which any of the Company’s Voting Stock or the Voting Stock of such other person is converted into or exchanged for cash, securities or other property, other than
any such transaction where the shares of the Company’s Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving person or any direct or
indirect parent company of the surviving person immediately after giving effect to such transaction; (4) the first day on which a majority of the members of the Company’s board of directors are not Continuing Directors; or (5) the
adoption of a plan relating to the Company’s liquidation or dissolution. 
 “Change of Control Offer” has
the meaning specified in Section 3.05(a) hereto. 
 “Change of Control Payment” has the meaning specified
in Section 3.05(a) hereto. 
 “Change of Control Payment Date” has the meaning specified in
Section 3.05(a) hereto. 
 “Change of Control Triggering Event” means the occurrence of both a Change of
Control and a Below Investment Grade Rating Event. 
 “Comparable Treasury Issue” means the United States
Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes to be redeemed. 

  
 3 

 “Comparable Treasury Price” means, with respect to any Redemption Date,
(1) the average of the bid and asked prices for the Comparable Treasury Issue, expressed in each case as a percentage of its principal amount, on the third Business Day preceding such Redemption Date, as contained in the daily statistical
release, or any successor release, published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (2) if the release, or any successor release, is not published or
does not contain these prices on that Business Day, (a) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of the Reference Treasury Dealer Quotations, or (b) if the
Company obtains fewer than four Reference Treasury Dealer Quotations, the average of all of these quotations. 

“Continuing Director” means, as of any date of determination, any member of the board of directors of the Company who
(1) was a member of the board of directors of the Company on the date hereof; or (2) was nominated for election or elected to the board of directors of the Company with the approval of a majority of the Continuing Directors who were
members of such board of directors of the Company at the time of such nomination or election (either by specific vote or by approval of the Company’ s proxy statement in which such member was named as a nominee for election as a director,
without objection to such nomination). 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 “Global Note” means, individually and collectively, each of the Notes in the form of Global Securities
issued to the Depositary or its nominee, substantially in the form of Exhibit A, Exhibit B and Exhibit C attached hereto. 
 “Independent Investment Banker” means the Reference Treasury Dealer appointed by the Company. 
 “Initial 2017 Notes” has the meaning specified in Section 3.02(b) hereto. 
 “Initial 2022 Notes” has the meaning specified in Section 3.02(b) hereto. 
 “Initial 2042 Notes” has the meaning specified in Section 3.02(b) hereto. 
 “Initial Notes” has the meaning specified in Section 3.02(b) hereto. 
 “Investment Grade Rating” means a rating by Moody’s equal to or higher than Baa3 (or the equivalent under a successor rating category of Moody’s) or a rating by S&P equal to
or higher than BBB- (or the equivalent under any successor rating category of S&P). 
 “Moody’s” means
Moody’s Investors Service, Inc., and any successor to its rating agency business. 
 “Notes” has the
meaning specified in the recitals hereto. 
 “Payment Default” has the meaning specified in Section 3.07
hereto. 

  
 4 

 “Principal Amount” means the aggregate principal amount of all Outstanding
Initial Notes and Additional Notes. 
 “Rating Agencies” means (1) Moody’s and S&P; and
(2) if either or both of Moody’s or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating
organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as certified by a resolution of the Company’s board of directors) as a replacement agency for either Moody’s, S&P, or
both of them, as the case may be. 
 “Redemption Date” when used with respect to the Notes to be redeemed,
means the date fixed for such redemption pursuant to the Indenture. 
 “Reference Treasury Dealer” means the
four primary U.S. government securities dealers consisting of Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC, Barclays Capital Inc. and J.P. Morgan Securities LLC and their respective successors, provided
that if at any time any of the above is not a primary U.S. Government securities dealer, the Company shall substitute that entity with another nationally recognized investment banking firm that the Company selects that is a primary U.S. Government
securities dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any Redemption Date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such
Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such Redemption Date. 

“Remaining Scheduled Payments” means, with respect to each Note to be redeemed, the remaining scheduled payments of the
principal thereof and interest thereon that would be due after the related Redemption Date for such redemption; provided, however, that, if such Redemption Date is not an Interest Payment Date with respect to such Note, the amount of the next
succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to such Redemption Date. 
 “Special Mandatory Redemption” has the meaning specified in Section 3.04(b) hereto. 
 “Special Mandatory Redemption Date” has the meaning specified in Section 3.04(c) hereto. 
 “Special Mandatory Redemption Notice” has the meaning specified in Section 3.04(f) hereto. 
 “Special Mandatory Redemption Price” has the meaning specified in Section 3.04(d) hereto. 
 “Special Mandatory Redemption Triggering Event” has the meaning specified in Section 3.04(b) hereto. 

  
 5 

 “S&P” means Standard & Poor’s Ratings Services, a
Standard & Poor’s Financial Services LLC business, and any successor to its rating agency business. 

“Transactions” means the acquisition of the entire issued share capital of Actavis, Inc., a Delaware corporation,
Actavis Pharma Holding 4 ehf., a company incorporated in Iceland, and Actavis S.à r.l., a company incorporated in Luxembourg (collectively, “Actavis”), and rights in respect of certain indebtedness owed by Actavis (the
“Actavis Acquisition”) pursuant to the Sale and Purchase Agreement, dated as of April 25, 2012, by and among Nitrogen DS Limited, Landsbanki Islands hf., ALMC Eignarhaldsfélag ehf., ALMC hf., Argon Management S.à
r.l., the Managers party thereto, Deutsche Bank AG, London Branch, Actavis Acquisition Debt S.à r.l., Watson Pharma S.à r.l. and the Company (the “Purchase Agreement”); the issuance of the 2017 Notes, the 2022 Notes or
the 2042 Notes; the application of the net proceeds of such issuance; the borrowings under the Term Loan Credit Agreement, dated as of June 22, 2012 (the “Term Loan”), by and among the Company, Bank of America, N.A., as
Administrative Agent, and the lenders party thereto to fund the cash consideration portion of the Actavis Acquisition; the application of the net proceeds of the borrowings under the Term Loan to fund the cash consideration portion of the Actavis
Acquisition; the borrowings, if any, to the extent necessary, under the Credit Agreement, dated September 16, 2011, as amended (the “Senior Revolving Credit Facility”), by and among the Company, Bank of America, N.A., as
Administrative Agent, Wells Fargo Bank, N.A., as Syndication Agent, and a syndicate of lenders to fund the cash consideration portion of the Actavis Acquisition; and the application of the net proceeds of such borrowings under the Senior Revolving
Credit Facility to fund the cash consideration portion of the Actavis Acquisition. 
 “Treasury Rate” means,
for any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to Maturity, computed as the second Business Day immediately preceding that Redemption Date, of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for that Redemption Date. 
 “Trustee” has the meaning specified in the first paragraph hereto. 
 “Voting Stock” means with respect to any specified person (as that term is used in Section 13(d)(3) of the Exchange Act) capital stock of any class or kind the holders of which are
ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such person, even if the right to vote has been suspended by the happening of such a contingency. 

ARTICLE 3 

FORM AND TERMS OF THE NOTES 
 Section 3.01 Form and Dating. The Notes and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A, Exhibit B and
Exhibit C attached hereto. The Notes shall be executed on behalf of the Company by two Officers of the Company. The Notes may have notations, legends or endorsements required by law, stock exchange rules or usage. Each Note shall be
dated the date of its authentication. The Notes and any beneficial interest in the Notes shall be in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. 

  
 6 

 The terms and notations contained in the Notes shall constitute, and are hereby expressly
made, a part of the Indenture, and the Company and the Trustee, by their execution and delivery of this Third Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. 

(a) Global Notes. The Notes shall be issued initially in permanent global form, which shall be deposited with the Trustee as
custodian for the Depositary and registered in the name of Cede & Co., the Depositary’s nominee, duly executed on behalf of the Company by two Officers of the Company, and authenticated by the Trustee in accordance with
Section 202 of the Base Indenture. 
 (b) Book-Entry Provisions. This Section 3.01(b) shall apply only to the
Global Notes deposited with the Trustee as custodian for the Depositary. 
 The Company shall execute and the Trustee shall, in
accordance with Section 202 of the Base Indenture, authenticate, and hold each Global Note as custodian for the Depositary. 
 Section 3.02 Terms of the Notes. The following terms relating to the Notes are hereby established pursuant to Section 301 of the Base Indenture: 

(a) Title. The 2017 Notes shall constitute a series of Securities having the title “1.875% Senior Notes due 2017”, the
2022 Notes shall constitute a series of Securities having the title “3.250% Senior Notes due 2022” and the 2042 Notes shall constitute a separate series of Securities having the title “4.625% Senior Notes due 2042”. 

(b) Principal Amount. The aggregate principal amount of the 2017 Notes (the “Initial 2017 Notes”), the 2022 Notes
(the “Initial 2022 Notes”) and the 2042 Notes (the “Initial 2042 Notes” and together with the Initial 2017 Notes and Initial 2022 Notes, the “Initial Notes”) that may be initially authenticated and
delivered under the Indenture shall be $1,200,000,000, $1,700,000,000 and $1,000,000,000, respectively. The Company may from time to time, without the consent of the Holders of Notes, issue additional 2017 Notes (in any such case,
“Additional 2017 Notes”), additional 2022 Notes (in any such case, “Additional 2022 Notes”) or additional 2042 Notes (in any such case, “Additional 2042 Notes”) having the same ranking and the same
interest rate, Maturity and other terms as the Initial 2017 Notes, the Initial 2022 Notes or the Initial 2042 Notes, as the case may be. Any Additional 2017 Notes and the Initial 2017 Notes, any Additional 2022 Notes and the Initial 2022 Notes and
any Additional 2042 Notes and the Initial 2042 Notes, as the case may be, shall each constitute a single series under the Indenture and all references to the 2017 Notes shall include the Initial 2017 Notes and any Additional 2017 Notes, all
references to the 2022 Notes shall include the Initial 2022 Notes and any Additional 2022 Notes and all references to the 2042 Notes shall include the Initial 2042 Notes and any Additional 2042 Notes, unless the context otherwise requires. The
aggregate principal amount of each of the Additional 2017 Notes, the Additional 2022 Notes and the Additional 2042 Notes shall be unlimited. 

  
 7 

 (c) Maturity Date. The entire Outstanding principal of the 2017 Notes, 2022 Notes and
2042 Notes shall be payable on October 1, 2017, October 1, 2022 and October 1, 2042, respectively. 
 (d)
Interest Rate. The rate at which the 2017 Notes shall bear interest shall be 1.875% per annum, the rate at which the 2022 Notes shall bear interest shall be 3.250% per annum and the rate at which the 2042 Notes shall bear interest
shall be 4.625% per annum; the date from which interest shall accrue on the Notes shall be October 2, 2012, or the most recent Interest Payment Date to which interest has been paid or provided for; the Interest Payment Dates for the Notes
shall be April 1 and October 1 of each year, beginning April 1, 2013; the interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, will be paid, in immediately available funds, to the Persons in
whose names the Notes are registered at the close of business on the Regular Record Date for such interest, which shall be the March 15 or September 15, as the case may be, immediately preceding such Interest Payment Date. 

(e) Payment. The Trustee shall be the initial Paying Agent and Security Registrar. Payment of the principal and interest shall be
at the corporate office of the Trustee in the Minneapolis, Minnesota; provided, however, that each installment of interest and principal on the 2017 Notes, the 2022 Notes or the 2042 Notes may at the Company’s option be paid by check to
the Holders at the Holder’s address in the Security Register. The 2017 Notes, the 2022 Notes and the 2042 Notes shall initially be issued as Global Securities. Payments with respect to Notes represented by one or more Global Securities shall be
made by wire transfer of immediately available funds to the account specified by the Depositary. Payments with respect to Notes represented by one or more Definitive Securities held by a Holder of at least U.S.$1,000,000 aggregate principal amount
of Notes shall be made by wire transfer to a U.S. dollar account maintained by the payee with a bank in the United States if such Holder elects payment by wire transfer by giving written notice to the Trustee or the Paying Agent to such effect
designating such account no later than 10 days immediately preceding the relevant due date for payment (or such other date as the Trustee or Paying Agent may accept in its discretion). If any Interest Payment Date or Maturity of a series of the
Notes falls on a day that is not a Business Day, then payment of interest or principal will be made on the next succeeding Business Day with the same force and effect as if made on the Interest Payment Date or Maturity, as the case may be, and no
interest will accrue for the period after such Interest Payment Date or Maturity, as the case may be. 
 (f) Currency.
The currency of denomination of the Notes is United States Dollars. Payment of principal of and interest and premium, if any, on the Notes shall be made in United States Dollars. 

Section 3.03 Optional Redemption. 
 (a) The provisions of Article Eleven of the Base Indenture, as amended by the provisions of this Third Supplemental Indenture, shall apply to the Notes. 

  
 8 

 (b) The 2017 Notes, the 2022 Notes and the 2042 Notes shall be redeemable, in each case, in
whole at any time or in part from time to time, at the Company’s option. 
 (i) Upon the redemption of the
2017 Notes, the 2022 Notes prior to July 1, 2022 and the 2042 Notes prior to April 1, 2042 , in each case, the Company shall pay a Redemption Price equal to the greater of: 

(A) 100% of the principal amount of the 2017 Notes, the 2022 Notes or the 2042 Notes to be redeemed, as the case may be,
and 
 (B) the sum of the present values of the Remaining Scheduled Payments of the 2017 Notes, the 2022 Notes or
the 2042 Notes to be redeemed, as the case may be, discounted to the Redemption Date on a semi-annual basis (assuming a 360 day year consisting of twelve 30-day months) at the Treasury Rate plus 20 basis points in the case of the 2017 Notes, 25
basis points in the case of the 2022 Notes and 30 basis points in the case of the 2042 Notes, 
 plus, in each case,
accrued and unpaid interest, if any, to, but excluding, the Redemption Date; or 
 (ii) Upon the redemption of
the 2022 Notes on or after July 1, 2022 and the 2042 Notes on or after April 1, 2042, in each case, the Company shall pay a Redemption Price equal to 100% of the aggregate principal amount of the notes being redeemed, plus, in each
case, accrued and unpaid interest, if any, to, but excluding, the Redemption Date. 
 (iii) Notwithstanding
clauses (i) and (ii) of this Section 3.03(b), installments of interest on the applicable series of Notes that are due and payable on Interest Payment Dates falling on or prior to a Redemption Date shall be payable on the Interest
Payment Date to the registered holders as of the close of business on the relevant record date according to the applicable series of Notes and the Indenture. 
 (c) On and after the Redemption Date for a series of Notes, interest shall cease to accrue on such Notes or any portion thereof called for redemption, unless the Company defaults in the payment of the
Redemption Price and accrued interest, if any. On or before the Redemption Date for such Notes, the Company shall deposit with the Trustee or a Paying Agent, funds sufficient to pay the Redemption Price of such Notes to be redeemed on the Redemption
Date, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest, if any. If less than all of the Notes of such series are to be redeemed, such Notes shall be redeemed in accordance with Section 1103 of the Base
Indenture. 
 (d) Notice of any redemption shall be mailed at least 15 days but not more than 60 days before the Redemption Date
to each holder of the series of Notes to be redeemed; provided, however, that the Company shall notify the Trustee of the Redemption Date at least 15 days prior to the date of the giving of such notice (unless a shorter notice shall be
satisfactory to the Trustee). Such notice shall be provided in accordance with Section 1104 of the Base Indenture. If the Redemption Price cannot be determined at the time such notice is to be given, the actual Redemption Price, calculated as
described above in clause (b), shall be set forth in an Officers’ Certificate of the Company delivered to the Trustee no later than two Business Days 

  
 9 

 
prior to the Redemption Date. Notice of redemption having been given as provided in the Indenture, the series of Notes called for redemption shall, on the Redemption Date, become due and payable
at the Redemption Price, and accrued and unpaid interest, if any, to, but excluding, the Redemption Date, and from and after such Redemption Date (unless the Company shall default in the payment of the Redemption Price and accrued interest, if any)
such Notes shall cease to bear interest. Notwithstanding the foregoing, installments of interest on the series of Notes to be redeemed that are due and payable on Interest Payment Dates falling on or prior to the Redemption Date shall be payable on
the Interest Payment Date in accordance with such Notes and the Indenture. 
 Section 3.04 Special Mandatory
Redemption. 
 (a) The provisions of Article Eleven of the Base Indenture, as amended by the provisions of this Third
Supplemental Indenture, shall apply to the Notes. 
 (b) The 2017 Notes, the 2022 Notes and the 2042 Notes shall be redeemed, in
each case, in whole and not in part (a “Special Mandatory Redemption”) in the event that (each, a “Special Mandatory Redemption Triggering Event”) either: 

(i) the Company does not consummate the Actavis Acquisition on or prior to February 28, 2013; or 

(ii) the Purchase Agreement is terminated any time prior thereto for any reason. 

(c) The Company shall redeem all of the aggregate principal amount of the Outstanding Notes on the earlier to occur of (i) in the
case of redemption pursuant to clause (b)(i) above, April 1, 2013 or (ii) in the case of redemption pursuant to clause (b)(ii) above, the 30th day (or if such day is not a Business Day, the first Business Day thereafter) following such
termination of the Purchase Agreement for any reason (the “Special Mandatory Redemption Date”). 
 (d) Upon
Special Mandatory Redemption, the Company shall pay the sum of 101% of the aggregate principal amount of the 2017 Notes, the 2022 Notes and the 2042 Notes to be redeemed (the “Special Mandatory Redemption Price”), plus, in
addition to such Special Mandatory Redemption Price, in each case, accrued and unpaid interest, if any, to, but excluding, the Special Mandatory Redemption Date. Notwithstanding the foregoing, installments of interest on the applicable series of
Notes that are due and payable on Interest Payment Dates falling on or prior to a Special Mandatory Redemption Date shall be payable on the Interest Payment Date to the Persons in whose name the Notes are registered at the close of business on the
relevant record date according to the Notes and the Indenture. 
 (e) On and after the Special Mandatory Redemption Date for the
Notes, interest shall cease to accrue on the Notes unless the Company defaults in the payment of the Special Mandatory Redemption Price and accrued interest, if any. On or before the Special Mandatory Redemption Date for the Notes, the Company shall
deposit with the Trustee or a Paying Agent, funds sufficient to pay the Special Mandatory Redemption Price of the Notes to be redeemed on the Special Mandatory Redemption Date, and (except if the Special Mandatory Redemption Date shall be an
Interest Payment Date) accrued interest, if any. 

  
 10 

 (f) Notice of Special Mandatory Redemption shall be mailed, with a copy to the Trustee, no
later than five Business Days following the Special Mandatory Redemption Triggering Event (a “Special Mandatory Redemption Notice”). The Special Mandatory Redemption Notice shall state the information set forth in, and shall be
provided in accordance with Section 1104 of the Base Indenture. Notice of Special Mandatory Redemption having been given as provided in the Indenture, the Notes called for Special Mandatory Redemption shall, on the Special Mandatory Redemption
Date, become due and payable at the Special Mandatory Redemption Price, and accrued and unpaid interest, if any, to, but excluding, the Special Mandatory Redemption Date. 
 Section 3.05 Repurchase of Notes upon a Change of Control. 
 (a) If a
Change of Control Triggering Event occurs with respect to the Notes, unless the Company shall have exercised its option to redeem the 2017 Notes, the 2022 Notes and the 2042 Notes in full, as set forth in Section 3.03 of this Third Supplemental
Indenture or a Special Mandatory Redemption Triggering Event has occurred as set forth in Section 3.04 of this Third Supplemental Indenture, the Company shall make an offer (the “Change of Control Offer”) to each Holder of
Notes to repurchase any and all (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of such Holder’s 2017 Notes, 2022 Notes and 2042 Notes at a repurchase price set forth in this Section 3.05. In the Change of Control
Offer, the Company shall be required to offer payment in cash equal to 101% of the aggregate principal amount of 2017 Notes, 2022 Notes and 2042 Notes to be repurchased, plus accrued and unpaid interest, if any, on the 2017 Notes, the 2022
Notes and the 2042 Notes to be repurchased up to, but excluding, the date of repurchase (the “Change of Control Payment”). With respect to the Notes, within 30 days following any Change of Control Triggering Event, the Company shall
mail a notice to Holders of Notes with a copy to the Trustee describing the transaction or transactions that constitute or may constitute the Change of Control Triggering Event and offering to repurchase the Notes on the date specified in the
notice, which date shall be no earlier than 15 days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”). 
 (b) On the Change of Control Payment Date, the Company shall, to the extent lawful: 
 (i) accept for payment all Notes or portions of Notes properly tendered pursuant to the Change of Control Offer; 
 (ii) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered; and 

(iii) deliver or cause to be delivered to the Trustee the Notes properly accepted, together with an Officers’
Certificate stating (1) the aggregate Principal Amount of Notes or portions of Notes being repurchased, (2) that all conditions 

  
 11 

 
precedent contained herein to make a Change of Control Offer have been complied with and (3) that the Change of Control Offer has been made in compliance with the Indenture. 

The Company shall publicly announce the results of the Change of Control Offer on or as soon as possible after the date of purchase.

 (c) The Company shall comply in all material respects with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any such
securities laws or regulations conflict with the Change of Control Offer provisions of this Section 3.05, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations
under this Section 3.05 by virtue of any such conflict. 
 Section 3.06 Amendment of Limitations on Liens.
Section 1010 of the Base Indenture is hereby amended, in connection with this Third Supplemental Indenture, by inserting the following clause (8): 
 (8) any Lien to be incurred in connection with the Transactions; and 
 and by deleting clause
(8) in its entirety and inserting the following clause (9): 
 (9) any Lien that would not otherwise be
permitted by clauses (1) through (8) above, inclusive, securing indebtedness which, together with: 

(A) the aggregate outstanding principal amount of all other indebtedness of the Company and its Subsidiaries owning
property which would otherwise be subject to the foregoing restrictions, and 
 (B) the aggregate Value of
existing Sale and Leaseback Transactions which would be subject to the foregoing restrictions absent this clause, 
 does not
exceed the greater of $500 million or 15% of the Consolidated Net Worth of the Company. 

  
 12 

 Section 3.07 Amendment of Events of Default. Section 501 of the Base
Indenture is hereby amended, in connection with this Third Supplemental Indenture and with respect to the Notes, by deleting clause (4) in its entirety and inserting the following clause (4): 

(4) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured
or evidenced any indebtedness of the Company (or the payment of which is guaranteed by the Company), whether such indebtedness or guarantee now exists or is created after the date hereof, if that default: 

(A) is caused by a failure to make any payment when due (whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise, and after giving effect to applicable grace periods) of such indebtedness (a “Payment Default”); or 
 (B) results in the acceleration of such indebtedness prior to its scheduled maturity, 
 and, in each case, the amount of any such indebtedness, together with the amount of any other indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated,
aggregates $100.0 million or more; provided, however, that, if the default under the mortgage, indenture or instrument is cured by the Company, or waived by the holders of the indebtedness, in each case as permitted by the governing mortgage,
indenture or instrument, then the Event of Default caused by such default will be deemed likewise to be cured or waived. 
 and by deleting
clause (5) in its entirety and inserting the following clause (5): 
 (5) failure by the Company to pay or
discharge any final judgment or order (to the extent any such judgment or order is not paid or covered by insurance provided by a reputable carrier that has the ability to perform and has acknowledged coverage in writing) aggregating in excess of
$100.0 million which judgments are not paid, discharged or stayed for a period of 60 days. 
 and by inserting the following clause (9):

 (9) failure by the Company to comply with Sections 3.04 or 3.05 of the Third Supplemental Indenture between
the Company and the Trustee. 
 ARTICLE 4 
 MISCELLANEOUS 
 Section 4.01 Conflict with Trust Indenture Act.
If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture Act which is required under such Act or deemed to be a part of and govern this Third Supplemental Indenture, such required or deemed provision shall
control. If any provision of this Third Supplemental Indenture modifies or excludes any provision of the Trust Indenture Act which may be so modified or excluded, the latter provision shall be deemed to apply to this Third Supplemental Indenture as
so modified or to be excluded, as the case may be. 
 Section 4.02 New York Law to Govern. This indenture and the
Notes shall be governed by and construed in accordance with the laws of the State of New York (including without limitation Section 5-1401 of the New York General Obligations Law or any successor to such statute). The Trustee and the Company
agree to submit to the non-exclusive jurisdiction of any United States federal or state court located in the borough of Manhattan, in the city of New York in any action or proceeding arising out of or relating to this Third Supplemental Indenture or
the Notes. This Third Supplemental Indenture is subject to the provisions of the Trust Indenture Act that are required to be part of the Indenture and shall, to the extent applicable, be governed by such provisions. 

  
 13 

 The Trustee and the Company hereby knowingly, voluntarily and intentionally waive any rights
they may have to a trial by jury in respect of any litigation based hereon, or arising out of, under or in connection with this Third Supplemental Indenture or any course of conduct, course of dealing, statements (whether oral or written) or actions
of the Trustee or the Company relating thereto. The Company acknowledges and agrees that it has received full and sufficient consideration for this provision and that this provision is a material inducement for the Trustee and the Holders entering
into this Third Supplemental Indenture. 
 Section 4.03 Counterparts. This Third Supplemental Indenture may be
executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 

Section 4.04 Separability Clause. In case any provision in this Third Supplemental Indenture or in the Notes shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 Section 4.05 Ratification. The Base Indenture, as supplemented and amended by this Third Supplemental Indenture, is in all respects ratified and confirmed. The Indenture shall be read, taken
and construed as one and the same instrument. All provisions included in this Third Supplemental Indenture supersede any conflicting provisions included in the Base Indenture unless not permitted by law. The Trustee accepts the trusts created by the
Indenture, and agrees to perform the same upon the terms and conditions of the Indenture. 
 Section 4.06
Effectiveness. The provisions of this Third Supplemental Indenture shall become effective as of the date hereof. 

[Remainder of page intentionally left blank.] 

  
 14 

 IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be
duly executed as of the date first above written. 
  

			
	WATSON PHARMACEUTICALS, INC.
		
	By:	 	 /s/ David A. Buchen

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

  
 Signature Page to Third
Supplemental Indenture 

 
			
	 WELLS FARGO BANK, NATIONAL

	 ASSOCIATION, as Trustee

		
	By:	 	 /s/ Michael Tu

		 	Name: Michael Tu
		 	Title:   Assistant Vice President

  
 Signature Page to Third
Supplemental Indenture 

 EXHIBIT A 
 [FACE OF NOTE] 
 WATSON PHARMACEUTICALS, INC. 

[Global Securities Legend] 

THIS GLOBAL SECURITY IS HELD BY AND REGISTERED IN THE NAME OF THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS SECURITY), IS NOT EXCHANGEABLE
FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THIS GLOBAL
SECURITY MAY BE EXCHANGED PURSUANT TO SECTION 203(a) OF THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 309 OF THE INDENTURE AND (III) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  

			
	 REGISTERED
	 	REGISTERED    

 WATSON PHARMACEUTICALS, INC. 

1.875% Notes due 2017 
  

					
	CUSIP No. 942683AG8	 		 	
			
	ISIN No. US942683AG82	 		 	
			
	No. R – [    ]	 		 	US$[             ]

 Watson Pharmaceuticals, Inc., a corporation duly organized and existing under the laws of the State of
Nevada (herein called the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or its registered assigns, the principal sum of
[             ] Dollars ($[             ]) on 

 
October 1, 2017, and to pay interest thereon from October 2, 2012 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on
April 1 and October 1 in each year, commencing April 1, 2013, to the Persons in whose names the Securities are registered at the close of business on the immediately preceding March 15 or September 15, as the case may be, at
the rate of 1.875% per annum, until the principal hereof is paid or made available for payment, provided, however that any principal and premium, and any such installment of interest, which is overdue shall bear interest at the
rate of 1.875% per annum (to the extent that the payment of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on demand). The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, which shall be the March 15 or September 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holder of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

 Payment of the principal of (and premium, if any) and any such interest on this Security will be made at the office or agency
of the Company maintained for that purpose in The City of New York, New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided,
however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register. 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed. 
  

			
	 WATSON PHARMACEUTICALS, INC.

		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

  

	
	 Attest:

	
	  

	 Name:

	 Title:

 CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

Dated: 
  

			
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as Trustee

		
	 By:
	 	  

		 	 Authorized Signatory

 [Form of Reverse of Security] 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be
issued in one or more series under an Indenture, dated as of August 24, 2009, as supplemented by the Third Supplemental Indenture, dated as of October 2, 2012 (herein collectively called the “Indenture”, which term shall have the
meaning assigned to it in such instrument), between the Company and Wells Fargo Bank, National Association, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), and reference is hereby
made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on the face hereof, limited in aggregate principal amount to $[            ]. 

The Securities of this series are subject to redemption at any time, upon not less than 15 days’ and not more than 60 days’
notice by mail, as a whole or from time to time in part, at the election of the Company, on any date prior to their Stated Maturity at a Redemption Price equal to the greater of (i) 100% of the principal amount of such Securities to be
redeemed, and (ii) the sum of the present values of the Remaining Scheduled Payments (as defined below) of the Securities to be redeemed, discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Treasury Rate (as defined below) plus 20 basis points, plus, accrued and unpaid interest, if any, to, but excluding the Redemption Date. Notwithstanding the foregoing, installments of interest on the Securities that are
due and payable on interest payment dates falling on or prior to a Redemption Date will be payable on the interest payment date to the registered holders as of the close of business on the relevant record date according to the Securities and the
Indenture. 
 “Comparable Treasury Issue” means the United States Treasury security selected by an Independent
Investment Banker as having a maturity comparable to the remaining term of the Securities to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the remaining term of such Securities to be redeemed. 
 “Comparable Treasury
Price” means, with respect to any Redemption Date, (1) the average of the bid and asked prices for the Comparable Treasury Issue, expressed in each case as a percentage of its principal amount, on the third Business Day preceding such
Redemption Date, as contained in the daily statistical release, or any successor release, published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (2) if the
release, or any successor release, is not published or does not contain these prices on that Business Day, (a) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of the
Reference Treasury Dealer Quotations, or (b) if the Company obtains fewer than four Reference Treasury Dealer Quotations, the average of all of these quotations. 
 “Independent Investment Banker” means the Reference Treasury Dealer appointed by the Company. 

 “Reference Treasury Dealer” means the four primary U.S. government securities
dealers consisting of Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC, Barclays Capital Inc., and J.P. Morgan Securities LLC and their respective successors, provided that if at any time any of the above is
not a primary U.S. Government securities dealer, the Company shall substitute that entity with another nationally recognized investment banking firm that the Company selects that is a primary U.S. Government securities dealer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the
average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 3:30 p.m.,
New York City time, on the third Business Day preceding such Redemption Date. 
 “Remaining Scheduled Payments” means,
with respect to each Security to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related Redemption Date for such redemption; provided, however, that, if such Redemption Date is
not an Interest Payment Date with respect to such Security, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to such Redemption Date. 

“Treasury Rate” means, for any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity,
computed as the second Business Day immediately preceding that Redemption Date, of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury
Price for that Redemption Date. 
 In the event of redemption of this Security in part only, a new Security or Securities of
this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 
 In the event that either (i) the Company does not consummate the Actavis Acquisition on or prior to February 28, 2013 or (ii) the Purchase Agreement is terminated any time prior thereto for
any reason (each a “Special Mandatory Redemption Triggering Event”), the Securities of this series shall be redeemed, in each case, in whole and not in part, on the Special Mandatory Redemption Date at the Special Mandatory Redemption
Price, plus, in addition to such Special Mandatory Redemption Price, in each case, accrued and unpaid interest, if any, to, but excluding, the Special Mandatory Redemption Date. Notwithstanding the foregoing, installments of interest on the
Securities that are due and payable on Interest Payment Dates falling on or prior to a Special Mandatory Redemption Date shall be payable on the Interest Payment Date to the Persons in whose name the Securities are registered at the close of
business on the relevant record date according to the Securities and the Indenture. 
 On and after the Special Mandatory
Redemption Date for the Securities, interest shall cease to accrue on the Securities unless the Company defaults in the payment of the Special Mandatory Redemption Price and accrued interest, if any. On or before the Special Mandatory Redemption
Date for the Securities, the Company shall deposit with the Trustee or a Paying Agent, funds sufficient to pay the Special Mandatory Redemption Price of the Securities to be redeemed on the Special Mandatory Redemption Date, and (except if the
Special Mandatory Redemption Date shall be an Interest Payment Date) accrued interest, if any. 

 Notice of Special Mandatory Redemption shall be mailed, with a copy to the Trustee, no later
than five Business Days following the Special Mandatory Redemption Triggering Event (a “Special Mandatory Redemption Notice”). The Special Mandatory Redemption Notice shall state the information set forth in, and shall be provided in
accordance with Section 1104 of the Base Indenture. Notice of Special Mandatory Redemption having been given as provided in the Indenture, the Securities called for Special Mandatory Redemption shall, on the Special Mandatory Redemption Date,
become due and payable at the Special Mandatory Redemption Price, and accrued and unpaid interest, if any, to, but excluding, the Special Mandatory Redemption Date. 
 If a Change of Control Triggering Event occurs with respect to the Securities, unless the Company shall have exercised its option to redeem the Securities in full, as set forth above or a Special
Mandatory Redemption Triggering Event has occurred as set forth above, the Company shall make an offer (the “Change of Control Offer”) to each holder of the Securities to repurchase any and all (equal to $2,000 or an integral multiple of
$1,000 in excess of $2,000 thereof) of such holder’s Securities at a repurchase price set forth below. 
 In the Change of
Control Offer, the Company shall be required to offer payment in cash equal to 101% of the aggregate principal amount of the Securities to be repurchased, plus accrued and unpaid interest, if any, on the Securities to be repurchased up to, but
excluding, the date of repurchase (the “Change of Control Payment”). With respect to the Securities, within 30 days following any Change of Control Triggering Event, the Company shall mail a notice to Holders of the Securities with a copy
to the Trustee describing the transaction or transactions that constitute or may constitute the Change of Control Triggering Event and offering to repurchase the Securities on the date specified in the notice, which date shall be no earlier than 15
days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”). 
  

	 	On	the Change of Control Payment Date, the Company shall, to the extent lawful: 

 

	 	(i)	accept for payment all Securities or portions of Securities properly tendered pursuant to the Change of Control Offer; 

 

	 	(ii)	deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities or portions of Securities properly tendered; and

  

	 	(iii)	deliver or cause to be delivered to the Trustee the Securities properly accepted, together with an Officers’ Certificate stating (1) the aggregate Principal
Amount of Securities or portions of Securities being repurchased, (2) that all conditions precedent contained herein to make a Change of Control Offer have been complied with and (3) that the Change of Control Offer has been made in
compliance with the Indenture. 

 The Company shall publicly announce the results of the Change of Control Offer on or as soon
as possible after the date of purchase. 
 The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security or certain restrictive covenants and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture. 

If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this
series may be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages
in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any
proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default
as Trustee and offered the Trustee indemnity or security reasonably satisfactory to it, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for
the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of
and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

 As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security may be registered and this Security may be exchanged as provided in the Indenture. 
 The Securities
of this series are issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. 
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith. 
 Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and
any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary. 
 The Securities of this series shall be governed by and construed in accordance with the
laws of the State of New York (including without limitation Section 5-1401 of the New York General Obligations Law or any successor to such statute). The Trustee and the Company agree to submit to the non-exclusive jurisdiction of any United
States federal or state court located in the borough of Manhattan, in the city of New York in any action or proceeding arising out of or relating to the Securities. 
 All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

 ASSIGNMENT FORM 
 To assign this Security, fill in the form below: 
 I or we assign and transfer this Security to:

  
   

 
 (Insert assignee’s social
security or tax I.D. no.) 
  
   

 
  
   
  
  

  
  

 
   

 
 (Print or type assignee’s
name, address and zip code) 
 and irrevocably appoint
                                        
as agent to transfer this Security on the books of the Company. The agent may substitute another to act for him. 
  
   
  
  

			
	Your Signature:	 	  

		 	(Sign exactly as your name appears on the other side of this Security)

  

			
	Your Name:	 	  

Date:                     

 

			
	Signature Guarantee:	 	 *

  

	*	NOTICE: The Signature must be guaranteed by an Institution which is a member of one of the following recognized signature Guarantee Programs: (i) The Securities
Transfer Agent Medallion Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP); or (iv) such other guarantee program acceptable to the Trustee.

 [TO BE ATTACHED TO GLOBAL SECURITIES] 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY 
 The following exchanges of an interest in this Global Security for an interest in another Global Security or for a Definitive Security, or exchanges of an interest in another Global Security or a
Definitive Security for an interest in this Global Security have been made: 
  

									
	 Date of Exchange
	  	Amount of decrease in
Principal Amount of this
Global Security	  	Amount of increase in
Principal Amount of this
Global Security	  	Principal Amount of this
Global Security following
such decrease or increase	  	Signature of authorized
signatory of Trustee or
Securities Custodian
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

 EXHIBIT B 
 [FACE OF NOTE] 
 WATSON PHARMACEUTICALS, INC. 

[Global Securities Legend] 

THIS GLOBAL SECURITY IS HELD BY AND REGISTERED IN THE NAME OF THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS SECURITY), IS NOT EXCHANGEABLE
FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THIS GLOBAL
SECURITY MAY BE EXCHANGED PURSUANT TO SECTION 203(a) OF THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 309 OF THE INDENTURE AND (III) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  

			
	 REGISTERED
	  	REGISTERED    

 WATSON PHARMACEUTICALS, INC. 

3.250% Notes due 2022 
  

			
	CUSIP No. 942683AF0	  	
		
	ISIN No. US942683AF00	  	
		
	No. R – [    ]	  	US$[                    ]

 Watson Pharmaceuticals, Inc., a corporation duly organized and existing under the laws of the State of
Nevada (herein called the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or its registered assigns, the principal sum of
[                    ] Dollars ($[            ]) on

 
October 1, 2022, and to pay interest thereon from October 2, 2012 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on
April 1 and October 1 in each year, commencing April 1, 2013, to the Persons in whose names the Securities are registered at the close of business on the immediately preceding March 15 or September 15, as the case may be, at
the rate of 3.250% per annum, until the principal hereof is paid or made available for payment, provided, however that any principal and premium, and any such installment of interest, which is overdue shall bear interest at the
rate of 3.250% per annum (to the extent that the payment of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on demand). The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, which shall be the March 15 or September 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holder of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

 Payment of the principal of (and premium, if any) and any such interest on this Security will be made at the office or agency
of the Company maintained for that purpose in The City of New York, New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided,
however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register. 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed. 
  

			
	WATSON PHARMACEUTICALS, INC.
		
	By:	 	  

		 	Name:
		 	Title:
		
	 By:
	 	  

		 	Name:
		 	Title:

  

	
	Attest:
	
	  

	Name:
	Title:

 CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

Dated: 
  

			
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as Trustee

		
	 By:
	 	  

		 	 Authorized Signatory

 [Form of Reverse of Security] 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be
issued in one or more series under an Indenture, dated as of August 24, 2009, as supplemented by the Third Supplemental Indenture, dated as of October 2, 2012 (herein collectively called the “Indenture”, which term shall have the
meaning assigned to it in such instrument), between the Company and Wells Fargo Bank, National Association, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), and reference is hereby
made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on the face hereof, limited in aggregate principal amount to $[             ]. 

The Securities of this series are subject to redemption at any time, upon not less than 15 days’ and not more than 60 days’
notice by mail, as a whole or from time to time in part, at the election of the Company, on any date prior to their Stated Maturity at a Redemption Price equal to: prior to July 1, 2022, the greater of (i) 100% of the principal amount of
such Securities to be redeemed, and (ii) the sum of the present values of the Remaining Scheduled Payments (as defined below) of the Securities to be redeemed, discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 25 basis points, plus, accrued and unpaid interest, if any, to, but excluding the Redemption Date; or on or after July 1, 2022, 100% of the principal amount
of such Securities to be redeemed, plus, accrued and unpaid interest, if any, to, but excluding the Redemption Date. Notwithstanding the foregoing, installments of interest on the Securities that are due and payable on interest payment dates
falling on or prior to a Redemption Date will be payable on the interest payment date to the registered holders as of the close of business on the relevant record date according to the Securities and the Indenture. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a
maturity comparable to the remaining term of the Securities to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Securities to be redeemed. 
 “Comparable Treasury Price” means, with respect
to any Redemption Date, (1) the average of the bid and asked prices for the Comparable Treasury Issue, expressed in each case as a percentage of its principal amount, on the third Business Day preceding such Redemption Date, as contained in the
daily statistical release, or any successor release, published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (2) if the release, or any successor release, is
not published or does not contain these prices on that Business Day, (a) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of the Reference Treasury Dealer Quotations, or
(b) if the Company obtains fewer than four Reference Treasury Dealer Quotations, the average of all of these quotations. 

 “Independent Investment Banker” means the Reference Treasury Dealer appointed by
the Company. 
 “Reference Treasury Dealer” means the four primary U.S. government securities dealers consisting of
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC, Barclays Capital Inc., and J.P. Morgan Securities LLC and their respective successors, provided that if at any time any of the above is not a primary U.S.
Government securities dealer, the Company shall substitute that entity with another nationally recognized investment banking firm that the Company selects that is a primary U.S. Government securities dealer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the
average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 3:30 p.m.,
New York City time, on the third Business Day preceding such Redemption Date. 
 “Remaining Scheduled Payments” means,
with respect to each Security to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related Redemption Date for such redemption; provided, however, that, if such Redemption Date is
not an Interest Payment Date with respect to such Security, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to such Redemption Date. 

“Treasury Rate” means, for any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity,
computed as the second Business Day immediately preceding that Redemption Date, of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury
Price for that Redemption Date. 
 In the event of redemption of this Security in part only, a new Security or Securities of
this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 
 In the event that either (i) the Company does not consummate the Actavis Acquisition on or prior to February 28, 2013 or (ii) the Purchase Agreement is terminated any time prior thereto for
any reason (each a “Special Mandatory Redemption Triggering Event”), the Securities of this series shall be redeemed, in each case, in whole and not in part, on the Special Mandatory Redemption Date at the Special Mandatory Redemption
Price, plus, in addition to such Special Mandatory Redemption Price, in each case, accrued and unpaid interest, if any, to, but excluding, the Special Mandatory Redemption Date. Notwithstanding the foregoing, installments of interest on the
Securities that are due and payable on Interest Payment Dates falling on or prior to a Special Mandatory Redemption Date shall be payable on the Interest Payment Date to the Persons in whose name the Securities are registered at the close of
business on the relevant record date according to the Securities and the Indenture. 
 On and after the Special Mandatory
Redemption Date for the Securities, interest shall cease to accrue on the Securities unless the Company defaults in the payment of the Special 

 
Mandatory Redemption Price and accrued interest, if any. On or before the Special Mandatory Redemption Date for the Securities, the Company shall deposit with the Trustee or a Paying Agent, funds
sufficient to pay the Special Mandatory Redemption Price of the Securities to be redeemed on the Special Mandatory Redemption Date, and (except if the Special Mandatory Redemption Date shall be an Interest Payment Date) accrued interest, if any.

 Notice of Special Mandatory Redemption shall be mailed, with a copy to the Trustee, no later than five Business Days
following the Special Mandatory Redemption Triggering Event (a “Special Mandatory Redemption Notice”). The Special Mandatory Redemption Notice shall state the information set forth in, and shall be provided in accordance with
Section 1104 of the Base Indenture. Notice of Special Mandatory Redemption having been given as provided in the Indenture, the Securities called for Special Mandatory Redemption shall, on the Special Mandatory Redemption Date, become due and
payable at the Special Mandatory Redemption Price, and accrued and unpaid interest, if any, to, but excluding, the Special Mandatory Redemption Date. 
 If a Change of Control Triggering Event occurs with respect to the Securities, unless the Company shall have exercised its option to redeem the Securities in full, as set forth above or a Special
Mandatory Redemption Triggering Event has occurred as set forth above, the Company shall make an offer (the “Change of Control Offer”) to each holder of the Securities to repurchase any and all (equal to $2,000 or an integral multiple of
$1,000 in excess of $2,000 thereof) of such holder’s Securities at a repurchase price set forth below. 
 In the Change of
Control Offer, the Company shall be required to offer payment in cash equal to 101% of the aggregate principal amount of the Securities to be repurchased, plus accrued and unpaid interest, if any, on the Securities to be repurchased up to, but
excluding, the date of repurchase (the “Change of Control Payment”). With respect to the Securities, within 30 days following any Change of Control Triggering Event, the Company shall mail a notice to Holders of the Securities with a copy
to the Trustee describing the transaction or transactions that constitute or may constitute the Change of Control Triggering Event and offering to repurchase the Securities on the date specified in the notice, which date shall be no earlier than 15
days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”). 
 On the
Change of Control Payment Date, the Company shall, to the extent lawful: 
  

	 	(i)	accept for payment all Securities or portions of Securities properly tendered pursuant to the Change of Control Offer; 

 

	 	(ii)	deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities or portions of Securities properly tendered; and

  

	 	(iii)	deliver or cause to be delivered to the Trustee the Securities properly accepted, together with an Officers’ Certificate stating (1) the aggregate Principal
Amount of Securities or portions of Securities being repurchased, (2) that all conditions precedent contained herein to make a Change of Control Offer have been complied with and (3) that the Change of Control Offer has been made in
compliance with the Indenture. 

 The Company shall publicly announce the results of the Change of Control Offer on or as soon
as possible after the date of purchase. 
 The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security or certain restrictive covenants and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture. 

If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this
series may be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages
in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any
proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default
as Trustee and offered the Trustee indemnity or security reasonably satisfactory to it, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for
the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of
and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

 As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security may be registered and this Security may be exchanged as provided in the Indenture. 
 The Securities
of this series are issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. 
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith. 
 Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and
any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary. 
 The Securities of this series shall be governed by and construed in accordance with the
laws of the State of New York (including without limitation Section 5-1401 of the New York General Obligations Law or any successor to such statute). The Trustee and the Company agree to submit to the non-exclusive jurisdiction of any United
States federal or state court located in the borough of Manhattan, in the city of New York in any action or proceeding arising out of or relating to the Securities. 
 All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

 ASSIGNMENT FORM 
 To assign this Security, fill in the form below: 
 I or we assign and transfer this Security to:

  
   

 
 (Insert assignee’s social
security or tax I.D. no.) 
  
   

 
  
   
  
  

  
  

 
   

 
 (Print or type assignee’s
name, address and zip code) 
 and irrevocably
appoint                                        
 as agent to transfer this Security on the books of the Company. The agent may substitute another to act for him. 
  

  
  

 

			
	 Your Signature:
	 	  

		 	(Sign exactly as your name appears on the other side of this Security)

  

			
	Your Name:	 	  

Date:                     

 

			
	Signature Guarantee:	 	 *

  

	*	NOTICE: The Signature must be guaranteed by an Institution which is a member of one of the following recognized signature Guarantee Programs: (i) The Securities
Transfer Agent Medallion Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP); or (iv) such other guarantee program acceptable to the Trustee.

 [TO BE ATTACHED TO GLOBAL SECURITIES] 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY 
 The following exchanges of an interest in this Global Security for an interest in another Global Security or for a Definitive Security, or exchanges of an interest in another Global Security or a
Definitive Security for an interest in this Global Security have been made: 
  

									
	 Date of Exchange
	  	Amount of decrease in
Principal Amount of this
Global Security	  	Amount of increase in
Principal Amount of this
Global Security	  	Principal Amount of this
Global Security following
such decrease or increase	  	Signature of authorized
signatory of Trustee or
Securities Custodian
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

 EXHIBIT C 
 [FACE OF NOTE] 
 WATSON PHARMACEUTICALS, INC. 

[Global Securities Legend] 

THIS GLOBAL SECURITY IS HELD BY AND REGISTERED IN THE NAME OF THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS SECURITY), IS NOT EXCHANGEABLE
FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THIS GLOBAL
SECURITY MAY BE EXCHANGED PURSUANT TO SECTION 203(a) OF THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 309 OF THE INDENTURE AND (III) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  

			
	    REGISTERED	  	REGISTERED    

 WATSON PHARMACEUTICALS, INC. 

4.625% Notes due 2042 

CUSIP No. 942683AH6 
 ISIN No. US942683AH65

			
		
	No. R – [    ]	  	US$[                    ]

 Watson Pharmaceuticals, Inc., a corporation duly organized and existing under the laws of the State of
Nevada (herein called the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or its registered assigns, the principal sum of
[                    ] Dollars
($[                    ]) on 

 
October 1, 2042, and to pay interest thereon from October 2, 2012 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on
April 1 and October 1 in each year, commencing April 1, 2013, to the Persons in whose names the Securities are registered at the close of business on the immediately preceding March 15 or September 15, as the case may be, at
the rate of 4.625% per annum, until the principal hereof is paid or made available for payment, provided, however that any principal and premium, and any such installment of interest, which is overdue shall bear interest at the
rate of 4.625% per annum (to the extent that the payment of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on demand). The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, which shall be the March 15 or September 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holder of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

 Payment of the principal of (and premium, if any) and any such interest on this Security will be made at the office or agency
of the Company maintained for that purpose in The City of New York, New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided,
however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register. 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed. 
  

			
	 WATSON PHARMACEUTICALS, INC.

		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

  

	
	Attest:
	
	  

	Name:
	Title:

 CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

Dated: 
  

			
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as Trustee

		
	By:	 	  

		 	Authorized Signatory

 [Form of Reverse of Security] 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be
issued in one or more series under an Indenture, dated as of August 24, 2009, as supplemented by the Third Supplemental Indenture, dated as of October 2, 2012 (herein collectively called the “Indenture”, which term shall have the
meaning assigned to it in such instrument), between the Company and Wells Fargo Bank, National Association, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), and reference is hereby
made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on the face hereof, limited in aggregate principal amount to $[            ]. 

The Securities of this series are subject to redemption at any time, upon not less than 15 days’ and not more than 60 days’
notice by mail, as a whole or from time to time in part, at the election of the Company, on any date prior to their Stated Maturity at a Redemption Price equal to: prior to April 1, 2042, the greater of (i) 100% of the principal amount of
such Securities to be redeemed, and (ii) the sum of the present values of the Remaining Scheduled Payments (as defined below) of the Securities to be redeemed, discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 30 basis points, plus, accrued and unpaid interest, if any, to, but excluding the Redemption Date; or on or after April 1, 2042, 100% of the principal
amount of such Securities to be redeemed, plus, accrued and unpaid interest, if any, to, but excluding the Redemption Date. Notwithstanding the foregoing, installments of interest on the Securities that are due and payable on interest payment
dates falling on or prior to a Redemption Date will be payable on the interest payment date to the registered holders as of the close of business on the relevant record date according to the Securities and the Indenture. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a
maturity comparable to the remaining term of the Securities to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Securities to be redeemed. 
 “Comparable Treasury Price” means, with respect
to any Redemption Date, (1) the average of the bid and asked prices for the Comparable Treasury Issue, expressed in each case as a percentage of its principal amount, on the third Business Day preceding such Redemption Date, as contained in the
daily statistical release, or any successor release, published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (2) if the release, or any successor release, is
not published or does not contain these prices on that Business Day, (a) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of the Reference Treasury Dealer Quotations, or
(b) if the Company obtains fewer than four Reference Treasury Dealer Quotations, the average of all of these quotations. 

 “Independent Investment Banker” means the Reference Treasury Dealer appointed by
the Company. 
 “Reference Treasury Dealer” means the four primary U.S. government securities dealers consisting of
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC, Barclays Capital Inc., and J.P. Morgan Securities LLC and their respective successors, provided that if at any time any of the above is not a primary U.S.
Government securities dealer, the Company shall substitute that entity with another nationally recognized investment banking firm that the Company selects that is a primary U.S. Government securities dealer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the
average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 3:30 p.m.,
New York City time, on the third Business Day preceding such Redemption Date. 
 “Remaining Scheduled Payments” means,
with respect to each Security to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related Redemption Date for such redemption; provided, however, that, if such Redemption Date is
not an Interest Payment Date with respect to such Security, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to such Redemption Date. 

“Treasury Rate” means, for any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity,
computed as the second Business Day immediately preceding that Redemption Date, of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury
Price for that Redemption Date. 
 In the event of redemption of this Security in part only, a new Security or Securities of
this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 
 In the event that either (i) the Company does not consummate the Actavis Acquisition on or prior to February 28, 2013 or (ii) the Purchase Agreement is terminated any time prior thereto for
any reason (each a “Special Mandatory Redemption Triggering Event”), the Securities of this series shall be redeemed, in each case, in whole and not in part, on the Special Mandatory Redemption Date at the Special Mandatory Redemption
Price, plus, in addition to such Special Mandatory Redemption Price, in each case, accrued and unpaid interest, if any, to, but excluding, the Special Mandatory Redemption Date. Notwithstanding the foregoing, installments of interest on the
Securities that are due and payable on Interest Payment Dates falling on or prior to a Special Mandatory Redemption Date shall be payable on the Interest Payment Date to the Persons in whose name the Securities are registered at the close of
business on the relevant record date according to the Securities and the Indenture. 
 On and after the Special Mandatory
Redemption Date for the Securities, interest shall cease to accrue on the Securities unless the Company defaults in the payment of the Special 

 
Mandatory Redemption Price and accrued interest, if any. On or before the Special Mandatory Redemption Date for the Securities, the Company shall deposit with the Trustee or a Paying Agent, funds
sufficient to pay the Special Mandatory Redemption Price of the Securities to be redeemed on the Special Mandatory Redemption Date, and (except if the Special Mandatory Redemption Date shall be an Interest Payment Date) accrued interest, if any.

 Notice of Special Mandatory Redemption shall be mailed, with a copy to the Trustee, no later than five Business Days
following the Special Mandatory Redemption Triggering Event (a “Special Mandatory Redemption Notice”). The Special Mandatory Redemption Notice shall state the information set forth in, and shall be provided in accordance with
Section 1104 of the Base Indenture. Notice of Special Mandatory Redemption having been given as provided in the Indenture, the Securities called for Special Mandatory Redemption shall, on the Special Mandatory Redemption Date, become due and
payable at the Special Mandatory Redemption Price, and accrued and unpaid interest, if any, to, but excluding, the Special Mandatory Redemption Date. 
 If a Change of Control Triggering Event occurs with respect to the Securities, unless the Company shall have exercised its option to redeem the Securities in full, as set forth above or a Special
Mandatory Redemption Triggering Event has occurred as set forth above, the Company shall make an offer (the “Change of Control Offer”) to each holder of the Securities to repurchase any and all (equal to $2,000 or an integral multiple of
$1,000 in excess of $2,000 thereof) of such holder’s Securities at a repurchase price set forth below. 
 In the Change of
Control Offer, the Company shall be required to offer payment in cash equal to 101% of the aggregate principal amount of the Securities to be repurchased, plus accrued and unpaid interest, if any, on the Securities to be repurchased up to, but
excluding, the date of repurchase (the “Change of Control Payment”). With respect to the Securities, within 30 days following any Change of Control Triggering Event, the Company shall mail a notice to Holders of the Securities with a copy
to the Trustee describing the transaction or transactions that constitute or may constitute the Change of Control Triggering Event and offering to repurchase the Securities on the date specified in the notice, which date shall be no earlier than 15
days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”). 
 On the
Change of Control Payment Date, the Company shall, to the extent lawful: 
  

	 	(i)	accept for payment all Securities or portions of Securities properly tendered pursuant to the Change of Control Offer; 

 

	 	(ii)	deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities or portions of Securities properly tendered; and

  

	 	(iii)	deliver or cause to be delivered to the Trustee the Securities properly accepted, together with an Officers’ Certificate stating (1) the aggregate Principal
Amount of Securities or portions of Securities being repurchased, (2) that all conditions precedent contained herein to make a Change of Control Offer have been complied with and (3) that the Change of Control Offer has been made in
compliance with the Indenture. 

 The Company shall publicly announce the results of the Change of Control Offer on or as soon
as possible after the date of purchase. 
 The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security or certain restrictive covenants and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture. 

If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this
series may be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages
in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any
proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default
as Trustee and offered the Trustee indemnity or security reasonably satisfactory to it, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for
the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of
and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

 As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security may be registered and this Security may be exchanged as provided in the Indenture. 
 The Securities
of this series are issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. 
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith. 
 Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and
any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary. 
 The Securities of this series shall be governed by and construed in accordance with the
laws of the State of New York (including without limitation Section 5-1401 of the New York General Obligations Law or any successor to such statute). The Trustee and the Company agree to submit to the non-exclusive jurisdiction of any United
States federal or state court located in the borough of Manhattan, in the city of New York in any action or proceeding arising out of or relating to the Securities. 
 All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

 ASSIGNMENT FORM 
 To assign this Security, fill in the form below: 
 I or we assign and transfer this Security to:

  
   

 
 (Insert assignee’s social
security or tax I.D. no.) 
  
   

 
  
   
  
  

  
  

 
   

 
 (Print or type assignee’s
name, address and zip code) 
 and irrevocably
appoint                                        
 as agent to transfer this Security on the books of the Company. The agent may substitute another to act for him. 
  

  
  

 

			
	 Your Signature:
	 	  

		 	(Sign exactly as your name appears on the other side of this Security)

  

			
	 Your Name:
	 	  

Date:                     

 

			
	 Signature Guarantee:
	 	 *

  

	*	NOTICE: The Signature must be guaranteed by an Institution which is a member of one of the following recognized signature Guarantee Programs: (i) The Securities
Transfer Agent Medallion Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP); or (iv) such other guarantee program acceptable to the Trustee.

 [TO BE ATTACHED TO GLOBAL SECURITIES] 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY 
 The following exchanges of an interest in this Global Security for an interest in another Global Security or for a Definitive Security, or exchanges of an interest in another Global Security or a
Definitive Security for an interest in this Global Security have been made: 
  

									
	 Date of Exchange
	  	Amount of decrease in
Principal Amount of this
Global Security	  	Amount of increase in
Principal Amount of this
Global Security	  	Principal Amount of this
Global Security following
such decrease or increase	  	Signature of authorized
signatory of Trustee or
Securities Custodian

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