Document:

exv10w29

Exhibit 10.29

Notice to Holders of

United Chile Synthetic Options

Right to Amend Grant Agreement

December 16, 2008

     This Notice is delivered to you as a holder of United Chile Synthetic Options (“United Chile
Options”) granted pursuant to the Letter Agreement dated December 22, 2006 (the “Grant Agreement”)
between you and United Chile LLC. Capitalized terms used but not defined in this Notice have the
meaning given to such terms in the Grant Agreement, a copy of which is attached hereto.

     The Term of your United Chile Options will expire on the date set forth in Schedule A of the
Grant Agreement or, if earlier, the expiration date established under Section 2(d) of the Grant
Agreement. Section 2(d)(iii) of the Grant Agreement provides that if your employment or consulting
relationship with LGI and its Subsidiaries (collectively, the “Company”) terminates for any reason
other than for cause, Disability or death, then the Term of your United Chile Options will expire
on the last day of the 90-day period beginning on the date of termination of such employment or
consulting relationship. Under Section 2(d)(ii), if you die during the 90-day period referenced in
the preceding sentence, the Term of your United Chile Options would expire on the date that is
one-year after the date of your death.

     This Notice is delivered to advise you of the determination by the LGI Committee to afford
each holder of United Chile Options a one-time opportunity to amend Section 2(d)(iii) of the Grant
Agreement to extend the 90-day period therein to a period of one year following the termination of
such holder’s employment or consulting relationship with the Company. A conforming amendment would
also be made to Section 2(d)(ii). If you elect to so amend the Grant Agreement, the amendment will
apply to all of your United Chile Options.

     As provided in the Grant Agreement, although the United Chile Options may be exercised at any
time during the applicable Term, payment by United Chile will not be made with respect to such
exercise until after the Term has expired. As such, if you elect to amend Section 2(d)(iii) of the
Grant Agreement and your employment or consulting relationship with the Company terminates for any
reason other than cause, Disability or death, then both the exercise period and payment date
applicable to your United Chile Options would be extended from 90 days to one year (or, if shorter,
to the end of the Term as set forth on Schedule A of the Grant Agreement) from the date of such
termination. If you die during the one-year period described above regarding terminations to which
Section 2(d)(iii) applies, the Term applicable to your United Chile Options would continue to be
extended for a period of one year (or, if shorter, to the end of the Term as set forth on Schedule
A of the Grant Agreement) from the date of your death, as is currently the case under Section
2(d)(ii).

 

 

     You may elect to amend Section 2(d)(ii) and Section 2(d)(iii) as provided above only by
executing and returning the attached Amendment Election Form to United Chile LLC, attention
Elizabeth Markowski, no later than Tuesday, December 30, 2008. Delivery of the Amendment Election
Form may be effected through any of the following means: (1) personal delivery to LGI’s corporate
headquarters at 12300 Liberty Boulevard, Englewood Colorado, 80112, USA, (2) facsimile delivery to
+1 303.220.6691, or (3) email delivery to liz@lgi.com. If delivery is by facsimile or email,
please also forward an original executed copy by courier to the attention of Elizabeth M. Markowski
at LGI’s corporate headquarters at the address set forth above. If you fail to timely deliver the
duly executed Amendment Election Form to United Chile LLC, you will be deemed to have elected not
to amend the Grant Agreement with respect to your United Chile Synthetic Options.

     As a separate matter, Section 5 of the Grant Agreement is being amended pursuant to its terms
to delete the word “Disability” from the first sentence. This amendment is required to comply with
Internal Revenue Code Section 409A and recently adopted rules related thereto.

     Except as specifically set forth in this Notice, all provisions of the Grant Agreement will
remain unchanged and in full force and effect. If you have any questions regarding the foregoing,
please contact Elizabeth Markowski by phone at 303.220.6648 or in writing at the following email
address: liz@lgi.com.

 

 

United Chile Synthetic Option Holder

Amendment Election Form

     I hereby elect to amend Section 2(d)(ii) and Section 2(d)(iii) of the Grant Agreement (as
defined in the Amendment Notice to which this Election Form is attached) to read, in their
entirety, as follows:

“(ii) If you die while employed by or a consultant to LGI and its Subsidiaries or within
the one-year period referred to in clause (iii) below, your United Chile Synthetic Options
will terminate on the first Business Day following the expiration of the one-year period
which began on the date of your death; or

(iii) If your employment or consulting relationship with LGI and its Subsidiaries
terminates for any reason other than for cause, Disability or death, then your United Chile
Synthetic Options will terminate on the first Business Day following the expiration of the
one-year period which began on the date of termination of such relationship.”

     I understand and agree that this election is irrevocable and that, other than as set forth in
the Amendment Notice and in this Amendment Election Form, all terms and conditions of the Grant
Agreement remain unchanged and in full force and effect.

	 	 	 
	                                                            

EMPLOYEE

	 	                                                            

DATEexv10w6

Exhibit 10.6

AMENDMENT TO

KEY EMPLOYEE AGREEMENT

          This Amendment, effective as of December 31, 2008 (“Effective Date”), is entered into by and
between Watson Pharmaceuticals, Inc., a corporation organized under the laws of the State of Nevada
(the “Company”), and Thomas R. Russillo (the “Executive”). This Amendment amends that certain Key
Employee Agreement entered into by and between the Company and Executive dated effective as of
September 5, 2006 (the “Agreement”). This Amendment to the Agreement, together with the Agreement,
constitutes the entire Agreement as amended through the Effective Date.

          1. Definition of Good Reason. Effective as of the Effective Date, Section 6.5(a) of
the Agreement is hereby amended in its entirety to read as follows:

          (a) Definition of “Good Reason.” For purposes of this Agreement, “Good Reason” shall mean any
one of the following events which occurs on or after the Effective Date: (i) after a Change of
Control (as defined in Section 7.1), any material reduction of the Executive’s then existing annual
base salary, except to the extent the annual base salary of all other executive officers at levels
similar to Executive is similarly reduced (provided such reduction does not exceed fifteen percent
(15%) of Executive’s then existing annual base salary); (ii) after a Change of Control, any
material reduction in the package of benefits and incentives, taken as a whole, provided to the
Executive (except that employee contributions may be raised to the extent of any cost increases
imposed by third parties) or any action by the Company which would materially and adversely affect
the Executive’s participation or reduce the Executive’s benefits under any such plans, except to
the extent that such benefits and incentives of all other executive officers at levels similar to
Executive are similarly reduced; (iii) after a Change of Control, any material diminution of the
Executive’s duties and responsibilities, taken as a whole, excluding for this purpose an isolated,
insubstantial or inadvertent action not taken in bad faith which is remedied by the Company
immediately after notice thereof is given by the Executive; (iv) after a Change of Control, a
requirement that the Executive materially relocate to a work site that would increase the
Executive’s one-way commute distance by more than thirty-five (35) miles from his then principal
residence, unless the Executive accepts such relocation opportunity; (v) any material breach by the
Company of its obligations under this Agreement; or (vi) any failure by the Company to obtain the
assumption of this Agreement by any successor or assign of the Company; provided, however, that the
Executive may not resign his employment for Good Reason unless: (A) the Executive has provided the
Company with at least 30 days prior written notice of the Executive’s intent to resign for Good
Reason (which notice must be provided within 60 days following the occurrence of the event(s)
purported to constitute Good Reason); and (B) the Company has not remedied the alleged violation(s)
within 30-days following its receipt of the written notice of intent to resign for Good Reason.

          2. Release. Effective as of the Effective Date, Section 9 of the Agreement is hereby
amended in its entirety to read as follows:

     9. Release. In exchange for the severance compensation and benefits
provided under this Agreement to which Executive would not otherwise be entitled, Executive shall
enter into and execute a release substantially in the form attached hereto as Exhibit B, as may be

 

 

revised and updated as determined to be appropriate by the Company (the “Release”). Unless the
Release is executed by Executive following termination of employment, delivered to the Company
within fifty (50) days following the Executive’s termination of employment, and not subsequently
revoked, the Company shall not be required to provide any severance benefits pursuant to this
Agreement, any vesting of acceleration of Executive’s Awards as provided in this Agreement shall
not apply, and Executive’s Awards in such event shall vest or, in the case of stock options, be
exercisable following the date of Executive’s termination only to the extent provided under their
original terms in accordance with the applicable plan and Award agreements.

          3. Exhibit A, Section 4.1. Effective as of the Effective Date, Section 4.1(a)(ii) of
Exhibit A to the Agreement is hereby amended to incorporate the following proviso at the end
thereof:

provided, however, that the terms of any such consulting arrangement shall not provide for the
provision of bona fide services to the Company to any extent that would prevent Executive from
having a Separation from Service.

          4. Section 409A. Effective as of the Effective Date, the Agreement is hereby amended
to incorporate a new Section therein to read in its entirety as follows:

Notwithstanding anything contained in this Agreement to the contrary, to the maximum extent
permitted by applicable law, severance amounts payable pursuant to this Agreement shall be made in
reliance upon Treas. Reg. Section 1.409A-1(b)(9) (Separation Pay Plans) or Treas. Reg. Section
1.409A-1(b)(4) (Short-Term Deferrals). For this purpose each installment payment to which you are
entitled under the severance pay provisions of this Agreement shall be considered a separate and
distinct payment. In addition, (i) Subject to Section 9 of this Agreement, all severance payments
payable pursuant this Agreement shall commence within sixty (60) days after the Executive’s
Separation from Service, (ii) no amount deemed deferred compensation subject to Section 409A shall
be payable pursuant to the severance pay provisions of this Agreement unless your termination of
employment constitutes a Separation from Service, and (ii) if you are deemed at the time of your
separation from service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of
the Code, then to the extent delayed commencement of any portion of the termination benefits to
which you are entitled under this Agreement is required in order to avoid a prohibited distribution
under Section 409A(a)(2)(B)(i) of the Code, such portion of your termination benefits shall not be
provided to you prior to the earlier of (A) the expiration of the six-month period measured from
the date of your Separation from Service with the Company or (B) the date of your death. Upon the
earlier of such dates, all payments deferred pursuant to this paragraph shall be paid in a lump sum
to you, and any remaining payments due under this Agreement shall be paid as otherwise provided
herein. For purposes of this Agreement, Separation from Service shall mean a “separation from
service” within the meaning of Treasury Regulation Section 1.409A-1(h). The determination of
whether you are a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of
the time of your separation from service shall be made by the Company in accordance with the terms
of Section 409A of the Code and applicable guidance thereunder (including without limitation Treas.
Reg. Section 1.409A-1(i) and any successor provision thereto). The payment of any reimbursement of
any expense under this Agreement (including without limitation, any Gross-Up Payments

 

 

pursuant to Section 7.3 of this Agreement) shall be made no later than December 31 of the year
following the year in which the expense was incurred. The amount of expenses reimbursed in one
year shall not affect the amount eligible for reimbursement in any subsequent year. The payment of
any bonus earned pursuant to this Agreement shall be made no later than two and one-half months
following the end of the fiscal year in which such bonus was earned.

          2. No Other Changes. Except as provided in this Amendment, the Agreement shall remain
in full force and effect.

     IN WITNESS WHEREOF, the Company has caused this Amendment to be executed by its duly
authorized officer and the Executive has executed this Amendment as of the Effective Date.

	 	 	 	 	 	 	 	 	 
	WATSON PHARMACEUTICALS, INC.	 	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ CLARE CARMICHAEL
	 	 	 	/s/ THOMAS R. RUSSILLO	 	 
	 

	 	 
	 	 	 	 	 	 
	Its:

	 	SVP Human Resources
	 	 	 	Thomas R. Russillo	 	 
	 
	 	 	 	 	 	 	 	 
	Date: December 29, 2008	 	 	 	Date: December 29, 2008

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