Document:

EX-4.2

 Exhibit 4.2 

Execution Version 
  

 
  

TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V., 

as Issuer 
 TEVA PHARMACEUTICAL
INDUSTRIES LIMITED, 
 as Guarantor 

and 
 THE BANK OF NEW YORK MELLON,

 as Trustee 
  

 
 FIRST
SUPPLEMENTAL SENIOR INDENTURE 
 Dated as of July 21, 2016 

to the Senior Indenture dated as of July 21, 2016 
  

 
 Creating the
series of Securities (as defined herein) designated 
 1.400% Senior Notes due 2018 

1.700% Senior Notes due 2019 

2.200% Senior Notes due 2021 

2.800% Senior Notes due 2023 

3.150% Senior Notes due 2026 
 and

 4.100% Senior Notes due 2046 
  

 
  

							
	ARTICLE 1	  
	DEFINITIONS AND INCORPORATION BY REFERENCE	  
			
	Section 1.1	    	Definitions	  	 	1	  
	Section 1.2	    	Incorporation by Reference of Trust Indenture Act	  	 	11	  
	Section 1.3	    	Rules of Construction	  	 	11	  
	
	ARTICLE 2	  
	THE NOTES AND THE GUARANTEES	  
			
	Section 2.1	    	Title and Terms	  	 	12	  
	Section 2.2	    	Form of Notes	  	 	13	  
	Section 2.3	    	Legends	  	 	13	  
	Section 2.4	    	Form of Guarantees	  	 	14	  
	Section 2.5	    	Book-Entry Provisions for the Global Notes	  	 	15	  
	Section 2.6	    	Defaulted Interest	  	 	16	  
	Section 2.7	    	Execution of Guarantees	  	 	16	  
	Section 2.8	    	Add On Notes	  	 	17	  
	
	ARTICLE 3	  
	ADDITIONAL COVENANTS	  
			
	Section 3.1	    	Payment of Additional Tax Amounts	  	 	19	  
	Section 3.2	    	Stamp Tax	  	 	20	  
	Section 3.3	    	Corporate Existence	  	 	20	  
	Section 3.4	    	Certificates of the Issuer and the Guarantor	  	 	21	  
	Section 3.5	    	Guarantor To Be the Sole Equityholder of the Issuer	  	 	21	  
	Section 3.6	    	Limitation on Liens	  	 	21	  
	Section 3.7	    	Limitation on Sales and Leasebacks	  	 	21	  
	Section 3.8	    	Waiver of Stay or Extension Laws	  	 	22	  
	
	ARTICLE 4	  
	REDEMPTION OF NOTES	  
			
	Section 4.1	    	Optional Redemption	  	 	22	  
	Section 4.2	    	Notice of Redemption	  	 	22	  
	Section 4.3	    	Deposit of Redemption Price	  	 	23	  
	Section 4.4	    	Tax Redemption	  	 	23	  
	Section 4.5	    	Special Mandatory Redemption	  	 	24	  

  
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	ARTICLE 5	  
	SATISFACTION AND DISCHARGE	  
			
	Section 5.1	    	Satisfaction and Discharge	  	 	25	  
	
	ARTICLE 6	  
	MISCELLANEOUS PROVISIONS	  
			
	Section 6.1	    	Scope of Supplemental Indenture	  	 	25	  
	Section 6.2	    	Provisions of Supplemental Indenture for the Sole Benefit of Parties and Holders of Notes	  	 	26	  
	Section 6.3	    	Successors and Assigns of Issuer and Guarantor Bound by Supplemental Indenture	  	 	26	  
	Section 6.4	    	Notices and Demands on Issuer, Trustee and Holders of Notes	  	 	26	  
	Section 6.5	    	Officers’ Certificates and Opinions of Counsel; Statements to be Contained Therein	  	 	28	  
	Section 6.6	    	Payments Due on Saturdays, Sundays and Holidays	  	 	29	  
	Section 6.7	    	Conflict of any Provisions of Supplemental Indenture with Trust Indenture Act of 1939	  	 	29	  
	Section 6.8	    	New York Law to Govern	  	 	29	  
	Section 6.9	    	Counterparts	  	 	29	  
	Section 6.10	    	Effect of Headings	  	 	29	  
	Section 6.11	    	Submission to Jurisdiction	  	 	29	  
	Section 6.12	    	Not Responsible for Recitals or Issuance of Securities	  	 	30	  
	
	ARTICLE 7	  
	SUPPLEMENTAL INDENTURES	  
			
	Section 7.1	    	Without Consent of Holders	  	 	30	  
			
	EXHIBIT A:	    	Form of Note	  	 	A-1	  

  
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 FIRST SUPPLEMENTAL SENIOR INDENTURE, dated as of July 21, 2016, among Teva Pharmaceutical
Finance Netherlands III B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under Dutch law (the “Issuer”), Teva Pharmaceutical Industries Limited, a
corporation incorporated under the laws of Israel (the “Guarantor”), and The Bank of New York Mellon, a New York banking corporation, as trustee (the “Trustee”), 

W I T N E S S E T H: 

WHEREAS, the Issuer has heretofore executed and delivered to the Trustee a Senior Debt Indenture, dated as of July 21, 2016 (the
“Base Indenture”), providing for the issuance from time to time of one or more series of its senior unsecured debentures, notes or other evidences of indebtedness (the “Securities”); 

WHEREAS, Section 7.01(e) of the Base Indenture provides that the Issuer, the Guarantor and the Trustee may from time to time enter into
one or more indentures supplemental thereto to establish the form or terms of Securities of a new series; 
 WHEREAS, the Issuer, pursuant
to the foregoing authority, proposes in and by this First Supplemental Senior Indenture (this “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”) to amend and supplement the Base
Indenture insofar as it will apply only to the 1.400% Senior Notes due 2018 (the “2018 Notes”), the 1.700% Senior Notes due 2019 (the “2019 Notes”), the 2.200% Senior Notes due 2021 (the “2021
Notes”), the 2.800% Senior Notes due 2023 (the “2023 Notes”), the 3.150% Senior Notes due 2026 (the “2026 Notes”) and the 4.100% Senior Notes due 2046 (the “2046 Notes”) issued hereunder
(and not to any other series of Securities). The 2018 Notes, 2019 Notes, 2021 Notes, 2023 Notes, 2026 Notes and 2046 Notes are collectively referred to as the “Notes”; and 

WHEREAS, all things necessary have been done to make the Notes, when executed by the Issuer and authenticated and delivered hereunder and duly
issued by the Issuer, the valid obligations of the Issuer, and to make this Supplemental Indenture a valid and legally binding agreement of the Issuer, in accordance with their and its terms; 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH: 

For and in consideration of the premises and the purchases of the Notes by the holders thereof, the Issuer, the Guarantor 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 
 DEFINITIONS
AND INCORPORATION BY REFERENCE 
 Section 1.1 Definitions. 

Capitalized terms used herein but not defined shall have the meanings assigned to them in the Base Indenture unless otherwise indicated. For
all purposes of this Supplemental Indenture and the Notes, the following terms are defined as follows: 

  
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 “2018 Note” has the meaning specified in the third recital paragraph of this
Supplemental Indenture. 
 “2019 Note” has the meaning specified in the third recital paragraph of this Supplemental
Indenture. 
 “2021 Note” has the meaning specified in the third recital paragraph of this Supplemental Indenture. 

“2023 Note” has the meaning specified in the third recital paragraph of this Supplemental Indenture. 

“2026 Note” has the meaning specified in the third recital paragraph of this Supplemental Indenture. 

“2046 Note” has the meaning specified in the third recital paragraph of this Supplemental Indenture. 

“Actavis Generics Acquisition” means the acquisition of the worldwide generic pharmaceuticals business and certain other
assets of Allergan plc by the Guarantor pursuant to the Master Purchase Agreement. 
 “Add On Notes” means any notes
originally issued after the date hereof pursuant to Section 2.8, including any replacement notes as specified in the relevant Add On Note Board Resolutions or Add On Note supplemental indenture issued therefor in accordance with the Base
Indenture. 
 “Additional Tax Amounts” has the meaning specified in Section 3.1. 

“Agent Member” has the meaning specified in Section 2.5. 

“Authorized Agent” has the meaning specified in Section 6.11. 

“Business Day” means a day other than (i) a Saturday or Sunday, (ii) a day on which banks in New York, New York are
authorized or obligated by law or executive order to remain closed or (iii) a day on which the trustee’s corporate trust office is closed for business. 

“Capital Stock” means: 
  

	 	(1)	in the case of a corporation, corporate stock; 

  

	 	(2)	in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; 

 

	 	(3)	in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited); and 

  
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	 	(4)	any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person. 

“Clearstream” means Clearstream Banking, société anonyme. 

“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 the relevant Notes. 
 “Comparable Treasury Price” means, with respect to any Redemption Date,
(1) the average of the Reference Treasury Dealer Quotations for such Redemption Date after excluding the highest and lowest of such Reference Treasury Dealer Quotations or (2) if the Independent Investment Banker obtains fewer than five
such Reference Treasury Dealer Quotations, the average of all such quotations. 
 “Consolidated Net Worth” means the
stockholders’ equity of the Guarantor and its consolidated subsidiaries, as shown on the audited consolidated balance sheet of the Guarantor’s latest annual report to stockholders, prepared in accordance with GAAP. 

“Corporate Trust Office” means the office of the Trustee located in The City of New York at which at any particular time its
corporate trust business shall be administered (which at the date of this Supplemental Indenture is located at 101 Barclay Street, 7th Floor East, New York, New York 10286, Attention: Corporate
Trust Administration) or such other address as the Trustee may designate from time to time by notice to the Holders and the Issuer, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may
designate from time to time by notice to the Holders and the Issuer). 
 “corporation” means corporations, associations,
limited liability companies, companies and business trusts. 
 “Default” means an event which is, or after notice or lapse
of time or both would be, an Event of Default. 
 “Depositary” means The Depository Trust Company, its nominees and their
respective successors. 
 “Defaulted Interest” has the meaning specified in Section 2.6. 

“Euroclear” means Euroclear Bank S.A./N.V. 

“Event of Default” with respect to the Notes of each series shall not have the meaning assigned to such term by
Section 4.01 of the Base Indenture. An Event of Default with respect to the Notes of each series means each one of the following events which shall have occurred and be continuing (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 

  
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 (a) the Issuer defaults in the payment of the principal and premium, if any, of any of the Notes
of such series when it becomes due and payable at Maturity, upon redemption or otherwise; 
 (b) the Issuer defaults in the payment of
interest (including Additional Tax Amounts, if any) on any of the Notes of such series when it becomes due and payable and such default continues for a period of 30 days; 

(c) the Guarantor fails to perform under the Guarantee relating to the Notes of such series; 

(d) except as otherwise permitted by the Indenture, the Guarantee is held in any final, nonappealable judicial proceeding to be unenforceable
or invalid or shall cease for any reason to be in full force and effect or the Guarantor, or any Person acting on behalf of the Guarantor, shall deny or disaffirm its obligations under the Guarantee; 

(e) either the Issuer or the Guarantor fails to perform or observe any other term, covenant or agreement contained in the Notes of such series
or this Supplemental Indenture and the default continues for a period of 60 days after written notice of such failure, requiring the Issuer or the Guarantor, respectively, to remedy the same, shall have been given to the Issuer or the Guarantor,
respectively, by the Trustee or to the Issuer or the Guarantor, respectively, and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Notes of such series; 

(f) (i) the Issuer or the Guarantor fails to make by the end of the applicable grace period, if any, any payment of principal or interest due
in respect of any Indebtedness for borrowed money, the aggregate outstanding principal amount of which is an amount in excess of $250,000,000; or (ii) there is an acceleration of any Indebtedness for borrowed money in an amount in excess of
$250,000,000 because of a default with respect to such Indebtedness without such Indebtedness having been discharged or such non-payment or acceleration having been cured, waived, rescinded or annulled, in the case of either (i) or
(ii) above, for a period of 30 days after written notice to the Issuer by the Trustee or to the Issuer and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Notes of such series; 

(g) the entry by a court having jurisdiction in the premises of (i) a decree or order for relief in respect of the Issuer or the
Guarantor in an involuntary case or proceeding under any applicable U.S. federal or state bankruptcy, insolvency, reorganization or other similar law or (ii) a decree or order adjudging the Issuer or the Guarantor as bankrupt or insolvent, or
approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Issuer or the Guarantor under any applicable U.S. federal or state law, or appointing a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of the Issuer or the Guarantor or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order for relief
or any such other decree or order unstayed and in effect for a period of 60 consecutive days; 

  
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 (h) the commencement by the Issuer or the Guarantor of a voluntary case or proceeding under any
applicable U.S. federal or state bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated as bankrupt or insolvent, or the consent by the Issuer to the entry of a decree or order for relief in
respect of the Issuer or the Guarantor in an involuntary case or proceeding under any applicable U.S. federal or state bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or
proceeding against the Issuer or the Guarantor, or the filing by the Issuer or the Guarantor of a petition or answer or consent seeking reorganization or relief under any applicable U.S. federal or state law, or the consent by the Issuer or the
Guarantor to the filing of such petition or to the appointment of or the taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Issuer or the Guarantor or of any substantial part of
its property, or the making by the Issuer or the Guarantor of an assignment for the benefit of creditors, or the admission by the Issuer or the Guarantor in writing of its inability to pay its debts generally as they become due, or the taking of
corporate action by the Issuer or the Guarantor expressly in furtherance of any such action; or 
 (i) failure to comply with the conditions
set forth in Section 4.5. 
 Except as otherwise provided herein, with respect to the Notes, the references in Section 4.01 of the
Base Indenture to “clauses 4.01(a), 4.01(b), 4.01(c) or 4.01(f) above” shall be construed as references to clauses (a), (b), (c), (d), (e), (f) or (i) of this definition and references to Sections 4.01(d) and (e) in the Base
Indenture shall be construed as references to clauses (g) and (h) of this definition. 
 “Exchange Act” means the
Securities Exchange Act of 1934, as amended. 
 “GAAP” means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity
as have been approved by a significant segment of the accounting profession, as in effect from time to time; provided, however, that any change in GAAP that would cause the Guarantor to record an existing item as a liability upon that
entity’s balance sheet, which item was not previously required by GAAP to be so recorded, shall not constitute an incurrence of Indebtedness for purposes of this Supplemental Indenture. 

“Global Note” has the meaning specified in Section 2.2(b). 

“guarantee” means any obligation, contingent or otherwise, of any Person, directly or indirectly guaranteeing any
Indebtedness of any other Person and any obligation, direct or indirect, contingent or otherwise, of such Person: 
 (1) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities or
services, to take-or-pay, or maintain financial statement conditions or otherwise); or 

  
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 (2) entered into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); 
 provided, however, that the
term “guarantee” will not include endorsements for collection or deposit in the ordinary course of business. The term “guarantee” used as a verb has a corresponding meaning. 

“Guarantees” means the guarantees of the Guarantor in respect of the Notes in the form provided in Section 2.4. 

“Guarantor” means the Person named as the “Guarantor” in the first paragraph of this instrument until a successor
Person shall have become such pursuant to the applicable provisions of the Indenture, and thereafter “Guarantor” shall mean such successor Person. 

“Holder,” “Holder of Notes” or other similar terms means the registered holder of any Note. 

“Indebtedness” means, with respect to any Person: 

(1) any liability for borrowed money, or evidenced by an instrument for the payment of money, or incurred in connection with the acquisition
of any property, services or assets (including securities), or relating to a capitalized lease obligation, other than accounts payable or any other indebtedness to trade creditors created or assumed by such Person in the ordinary course of business
in connection with the obtaining of materials or services; 
 (2) obligations under exchange rate contracts or interest rate protection
agreements; 
 (3) any obligations to reimburse the Issuer of any letter of credit, surety bond, performance bond or other guarantee of
contractual performance; 
 (4) any liability of another Person of the type referred to in clause (1), (2) or (3) of this
definition which has been assumed or guaranteed by such Person; and 
 (5) any obligations described in clauses (1) through (3) of
this definition secured by any mortgage, pledge, lien or other encumbrance existing on property which is owned or held by such Person, regardless of whether the indebtedness or other obligation secured thereby shall have been assumed by such Person.

 “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Issuer. 

“Interest Payment Date” means, (a) for the 2018 Notes, each of January 20 and July 20 of each year, beginning
January 20, 2017, (b) for the 2019 Notes, each of January 19 and July 19 of each year, beginning January 19, 2017, (c) for the 2021 Notes, each of January 21 and July 21 of

  
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each year, beginning January 21, 2017, (d) for the 2023 Notes, each of January 21 and July 21 of each year, beginning January 21, 2017, (e) for the 2026 Notes, each
of April 1 and October 1 of each year, beginning April 1, 2017 and (f) for the 2046 Notes, each of April 1 and October 1 of each year, beginning April 1, 2017; provided, however, in each case, that if any
such date is not a Business Day, the Interest Payment Date shall be the next succeeding Business Day. 
 “Interest Rate”
means (a) 1.400% per annum in the case of the 2018 Notes, (b) 1.700% per annum in the case of the 2019 Notes, (c) 2.200% per annum in the case of the 2021 Notes, (d) 2.800% per annum in the case of the 2023
Notes, (e) 3.150% per annum in the case of the 2026 Notes and (f) 4.100% per annum in the case of the 2046 Notes. 

“Issuer” means the company named as the “Issuer” in the first paragraph of this instrument until a successor Person
shall have become such pursuant to the applicable provisions of the Indenture, and thereafter “Issuer” shall mean such successor Person. 

“Issuer Order” means a written order signed in the name of the Issuer by any two Officers of the Issuer or a duly authorized
Attorney-in-Fact of the Issuer, and delivered to the Trustee. 
 “Lien” means, with respect to any asset, any mortgage,
lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement, any lease in
the nature thereof, any option or other agreement to give a security interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction. 

“Master Purchase Agreement” means the Master Purchase Agreement, dated as of July 26, 2015, by and between Allergan plc
and the Guarantor. 
 “Maturity” means the date on which the principal of the Notes of a given series becomes due and
payable as therein or herein provided, whether at the Stated Maturity or by acceleration, call for redemption or otherwise. 

“Note” or “Notes” has the meaning specified to it in the third recital paragraph of this Supplemental
Indenture. 
 “Officer of the Guarantor” and “Officer of the Issuer” mean the Chairman of the Board, the
Chief Executive Officer, Chief Operating Officer, the President, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, any Vice President, the Corporate Treasurer, the Head of Corporate Treasury, the Secretary or any Assistant
Secretary of the Guarantor and of the Issuer, respectively, any managing director or supervisory director of the Issuer, or a duly authorized Attorney-in-Fact. 

“Paying Agent” means an office or agency where Notes may be presented for payment. The term “Paying Agent” includes
any additional paying agent. 
 “Permitted Liens” means: 

 

	 	(1)	Liens existing on the date of this Supplemental Indenture; 

  
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	 	(2)	Liens on property created prior to, at the time of or within 120 days after the date of acquisition, completion of construction or completion of improvement of such property to secure all or part of the cost of
acquiring, constructing or improving all or any part of such property; 

  

	 	(3)	landlord’s, material men’s, carriers’, workmen’s, repairmen’s and other like Liens arising in the ordinary course of business in respect of obligations which are not overdue or which are being
contested in good faith in appropriate proceedings; 

  

	 	(4)	Liens on property of any Person existing at the time such Person became or becomes a subsidiary of the Guarantor (provided that the Lien has not been created or assumed in contemplation of such Person becoming a
subsidiary of the Guarantor); 

  

	 	(5)	Liens securing Indebtedness of a subsidiary to the Guarantor or to one or more of its subsidiaries; 

  

	 	(6)	Liens in favor of the United States of America, or any State or agency thereof or of any foreign country, or any agency, department or other instrumentality thereof, to secure progress, advance or other payments or
obligations pursuant to any contract or provision of any statute; or 

  

	 	(7)	any extension, renewal, substitution or replacement (or successive extensions, renewals, substitutions or replacements), as a whole or in part, of any Lien referred to in the foregoing clauses (1) to (6),
inclusive, or the Indebtedness secured thereby; provided, however, that (i) the principal amount of Indebtedness secured thereby and not otherwise authorized by said clauses (1) to (6), inclusive, shall not exceed the principal
amount of Indebtedness so secured at the time of such extension, renewal, substitution or replacement; and (ii) any such extension, renewal, substitution or replacement Lien shall be limited to the property covered by the Lien extended,
renewed, substituted or replaced. 

 “Person” means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity. 

“Physical Notes” means Notes issued in definitive, fully registered form without interest coupons, substantially in the form
of Exhibits A-1 - A-6 hereto (“Exhibit A”), as applicable. 
 “Primary Treasury Dealer” has the meaning assigned
to it in the definition of Reference Treasury Dealer. 

  
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 “Record Date” means either a Regular Record Date or a Special Record Date, as
the case may be. 
 “Redemption Date,” when used with respect to any Note to be redeemed, means the date fixed for such
redemption by or pursuant to this Supplemental Indenture. 
 “Redemption Price” when used (a) with respect to any
Notes to be redeemed pursuant to Section 4.1 of this Supplemental Indenture, means an amount that is equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed or (ii) the sum of the present values of the
Remaining Scheduled Payments discounted, on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), at a rate equal to the sum of the Treasury Rate plus 12.5 basis points in the case of the 2018 notes, 15 basis points in
the case of the 2019 notes, 20 basis points in the case of the 2021 notes, 25 basis points in the case of the 2023 notes, 25 basis points in the case of the 2026 notes or 30 basis points in the case of the 2046 notes, plus accrued and unpaid
interest, if any, to, but excluding, the redemption date, and (B) with respect to any Notes to be redeemed pursuant to Section 4.4 of this Supplemental Indenture, means an amount that is equal to 100% of the principal amount thereof. 

“Reference Treasury Dealer” means each of Barclays Capital Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA)
LLC, HSBC Securities (USA) Inc., Merrill Lynch, Pierce Fenner & Smith Incorporated and Mizuho Securities USA Inc. and their respective successors. If any of the foregoing shall cease to be a Primary Treasury Dealer, the Issuer will
substitute another nationally recognized investment banking firm that is a Primary Treasury Dealer. 
 “Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, 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 Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such Redemption Date. 

“Registrar” means the office or agency where Notes may be presented for registration of transfer or for exchange. 

“Regular Record Date” means with respect to (i) the 2018 Notes, (ii) the 2019 Notes, (iii) the 2021 Notes,
(iv) the 2023 Notes, (v) the 2026 Notes and (vi) the 2046 Notes, the close of business on the preceding (i) January 5 and July 5, (ii) January 4 and July 4, (iii) January 6 and July 6,
(iv) January 6 and July 6, (v) March 15 and September 15, and (vi) March 15 and September 15, respectively, in each case whether or not a Business Day. 

“Remaining Scheduled Payments” means, with respect to each Note to be redeemed, the remaining scheduled payments of principal
of and interest on such Note that would be due after the related Redemption Date but for such redemption. If such Redemption Date is not an interest payment date with respect to such Note, the amount of the next succeeding scheduled interest payment
on such Note will be reduced by the amount of interest accrued on such Note to such Redemption Date. 

  
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 “Sale-Leaseback Transaction” means the sale or transfer by the Guarantor or any
subsidiary of any property to a Person and the taking back by the Guarantor or any subsidiary, as the case may be, of a lease of such property. 

“Securities Act” means the Securities Act of 1933, as amended. 

“Special Mandatory Redemption Notice” shall have the meaning set forth in Section 4.5. 

“Special Redemption Date” means the date fixed for any special mandatory redemption in a Special Mandatory Redemption Notice.

 “Special Redemption Price” shall have the meaning set forth in Section 4.5. 

“Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to
Section 2.6. 
 “Stated Maturity” means the date specified in any Note as the fixed date for the payment of principal
on such Note or on which an installment of interest on such Note is due and payable. 
 “subsidiary” means, with respect to
any Person, a corporation more than 50% of the outstanding voting stock of which is owned, directly or indirectly, by such Person or by one or more other subsidiaries, or by such Person and one or more other subsidiaries. For the purposes of this
definition only, “voting stock” means stock which ordinarily has voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency. 

“Taxing Jurisdiction” means, with respect to the Notes, The Netherlands, Israel or any jurisdiction where a successor to the
Issuer or the Guarantor is incorporated or organized or considered to be a resident, if other than The Netherlands or Israel, respectively, or any jurisdiction through which payments will be made. 

“TIA” means the Trust Indenture Act of 1939, as amended, as in effect on the date of this Supplemental Indenture;
provided, however, that in the event the TIA is amended after such date, “TIA” means, to the extent such amendment is applicable to this Supplemental Indenture and the Base Indenture, the Trust Indenture Act of 1939, as so amended,
or any successor statute. 
 “Treasury Rate” means, with respect to any Redemption Date, the rate per year equal to the
semi-annual equivalent yield to maturity (computed as of the second Business Day immediately preceding such 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 such Redemption Date. 
 “Trustee” means the Person named as
the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Supplemental Indenture, and thereafter “Trustee” shall mean such successor
Trustee. 

  
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 “U.S. Dollar” means the coin or currency of the United States of America as at
the time of payment is legal tender for the payment of public and private debts. 
 “Underwriting Agreement” means the
Underwriting Agreement, dated July 18, 2016 among the Issuer, the Guarantor and the underwriters named in Schedule I thereto. 

“Vice President,” when used with respect to the Issuer or the Guarantor, as the case may be, means any vice president,
whether or not designated by a number or a word or words added before or after the title “vice president.” 
 Section 1.2
Incorporation by Reference of Trust Indenture Act. 
 Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Supplemental Indenture. 
 The following TIA terms used in this Indenture have the
following meanings: 
 “indenture securities” means the Notes of each series and the Guarantees; 

“indenture security holder” means a Holder; 

“indenture to be qualified” means this Supplemental Indenture; 

“indenture trustee” or “institutional trustee” means the Trustee; and 

“obligor” on the Notes of each series means the Issuer and on the Guarantee means the Guarantor and any other obligor on the
indenture securities. 
 All other TIA terms used in this Supplemental Indenture that are defined by the TIA, defined by TIA reference to
another statute or defined by SEC rule have the meanings assigned to them by such definitions. 
 Section 1.3 Rules of
Construction. 
 For all purposes of this Supplemental Indenture, except as otherwise expressly provided or unless the context otherwise
requires: 
 (1) the terms defined in this Article have the meanings assigned to them in this Article and include the plural
as well as the singular; 
 (2) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with accounting principles generally accepted in the United States prevailing at the time of any relevant computation hereunder; and 

(3) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this
Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision. 

  
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 ARTICLE 2 

THE NOTES AND THE GUARANTEES 

Section 2.1 Title and Terms. 

(a) The 2018 Notes, 2019 Notes, 2021 Notes, 2023 Notes, 2026 Notes and 2046 Notes shall be known and designated as the “1.400% Senior
Notes due 2018”, the “1.700% Senior Notes due 2019”, the “2.200% Senior Notes due 2021”, the “2.800% Senior Notes due 2023”, the “3.150% Senior Notes due 2026” and the “4.100% Senior Notes due
2046” of the Issuer, respectively. The aggregate principal amount that may be authenticated and delivered under this Supplemental Indenture of (i) the 2018 Notes is limited to $1,500,000,000, (ii) the 2019 Notes is limited to
$2,000,000,000, (iii) the 2021 Notes is limited to $3,000,000,000, (iv) the 2023 Notes is limited to $3,000,000,000, (v) the 2026 Notes is limited to $3,500,000,000 and (vi) the 2046 Notes is limited to $2,000,000,000; except, in
each case, for Add On Notes of the applicable series issued in accordance with Section 2.8 and Notes of any series authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Notes of the same series
pursuant to Section 2.5. The Notes of each series shall be issuable in minimum denominations of $2,000 principal amount and integral multiples of $1,000 in excess of $2,000. 

(b) The 2018 Notes shall mature on July 20, 2018, the 2019 Notes shall mature on July 19, 2019, the 2021 Notes shall mature on
July 21, 2021, the 2023 Notes shall mature on July 21, 2023, the 2026 Notes shall mature on October 1, 2026 and the 2046 Notes shall mature on October 1, 2046. 

(c) Interest on the Notes shall accrue from July 21, 2016, at the Interest Rate applicable to Notes of such series until the principal
thereof is paid or made available for payment. Interest shall be payable semiannually in arrears on each Interest Payment Date. 
 (d)
Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. 
 (e) A Holder of any Note at the close of
business on a Regular Record Date shall be entitled to receive interest on such Note on the corresponding Interest Payment Date. 
 (f)
Principal of and interest on Global Notes shall be payable to the Depositary in immediately available funds. 
 (g) Principal on Physical
Notes shall be payable at the office or agency of the Issuer maintained for such purpose, initially the Corporate Trust Office of the Trustee. Interest on Physical Notes will be payable by (i) U.S. Dollar check drawn on a bank in The City
of New York mailed to the address of the Person entitled thereto as such address shall appear in the register of the Notes, or (ii) upon written application to the Registrar not later than the relevant Record Date by a Holder of an aggregate
principal amount of Notes in excess of $5,000,000, wire transfer in immediately available funds, which application and written wire instructions shall remain in effect until the Holder notifies, in writing, the Registrar to the contrary. 

  
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 (h) The Notes shall be redeemable at the option of the Issuer as provided in Article 4. 

Section 2.2 Form of Notes. 

(a) Except as otherwise provided pursuant to this Section 2.2, the Notes are issuable in fully registered form without coupons in
substantially the form of Exhibit A hereto with such applicable legends as are provided for in Section 2.3. The Notes are not issuable in bearer form. The terms and provisions contained in the form of Notes shall constitute, and are hereby
expressly made, a part of this Supplemental Indenture and to the extent applicable, the Issuer, the Guarantor and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be
bound thereby. Any of the Notes may have such letters, numbers or other marks of identification and such notations, legends and endorsements as the officers executing the same may approve (execution thereof to be conclusive evidence of such
approval) and as are not inconsistent with the provisions of this Supplemental Indenture and the Base Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any
securities exchange or automated quotation system on which the Notes of any series may be listed or designated for issuance, or to conform to usage. 

(b) The Notes and the Guarantees are being offered and sold by the Issuer pursuant to the Underwriting Agreement. The Notes shall be issued
initially in the form of one or more permanent global Notes in fully registered form without interest coupons, substantially in the form of Exhibit A hereto (the “Global Notes”), each with the applicable legends as provided in
Section 2.3. Each Global Note shall be duly executed by the Issuer and authenticated and delivered by the Trustee, shall have endorsed thereon the applicable Guarantee executed by the Guarantor and shall be registered in the name of the
Depositary or its nominee and retained by the Trustee, as custodian, at its Corporate Trust Office, for credit to the accounts of the Agent Members holding the Notes evidenced thereby. The aggregate principal amount of each Global Note may from time
to time be increased or decreased by adjustments made on the records of the Trustee, as custodian, and of the Depositary or its nominee, as hereinafter provided. 

Section 2.3 Legends. 

Each Global Note shall also bear the following legend on the face thereof: 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE SUPPLEMENTAL INDENTURE REFERRED TO HEREIN. THIS GLOBAL NOTE MAY NOT BE EXCHANGED, IN WHOLE
OR IN PART, FOR A NOTE REGISTERED IN THE NAME OF ANY PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES SET FORTH IN THE SUPPLEMENTAL INDENTURE AND MAY NOT BE TRANSFERRED , IN WHOLE OR IN PART,
EXCEPT IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE SUPPLEMENTAL INDENTURE. 

  
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 Section 2.4 Form of Guarantees. 

A Guarantee substantially in the following form shall be endorsed on the reverse of each Note: 

Teva Pharmaceutical Industries Limited (the “Guarantor”) hereby unconditionally and irrevocably guarantees to
the Holder of this Note (the “Guarantee”) the due and punctual payment of the principal of and interest (including Additional Tax Amounts, if any), on this Note, when and as the same shall become due and payable, whether at Maturity
or upon redemption or upon declaration of acceleration or otherwise, according to the terms of this Note and of the Indenture. The Guarantor agrees that in the case of default by the Issuer in the payment of any such principal or interest (including
Additional Tax Amounts, if any), the Guarantor shall duly and punctually pay the same. The Guarantor hereby agrees that its obligations hereunder shall be absolute and unconditional irrespective of any extension of the time for payment of this Note,
any modification of this Note, any invalidity, irregularity or unenforceability of this Note or the Indenture, any failure to enforce the same or any waiver, modification, consent or indulgence granted to the Issuer with respect thereto by the
Holder of this Note or the Trustee, or any other circumstances which may otherwise constitute a legal or equitable discharge of a surety or guarantor. The Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a
court in the event of merger or bankruptcy of the Issuer, any right to require a demand or proceeding first against the Issuer, protest or notice with respect to this Note or the indebtedness evidenced hereby and all demands whatsoever, and
covenants that this Guarantee will not be discharged as to this Note except by payment in full of the principal of and interest (including Additional Tax Amounts, if any) on this Note. 

The Guarantor shall be subrogated to all rights of the Holders against the Issuer in respect of any amounts paid by the
Guarantor pursuant to the provisions of the Guarantees or the Indenture; provided, however, that the Guarantor hereby waives any and all rights to which it may be entitled, by operation of law or otherwise, upon making any payment
hereunder (i) to be subrogated to the rights of a Holder against the Issuer with respect to such payment or otherwise to be reimbursed, indemnified or exonerated by the Issuer in respect thereof or (ii) to receive any payment in the nature
of contribution or for any other reason, from any other obligor with respect to such payment, in each case, until the principal of and interest (including Additional Tax Amounts, if any) on this Note shall have been paid in full. 

The Guarantee shall not be valid or become obligatory for any purpose with respect to this Note until the certificate of
authentication on this Note shall have been signed by the Trustee. 
 The Guarantee shall be governed by and construed in
accordance with the laws of the State of New York. 

  
 14 

 IN WITNESS WHEREOF, Teva Pharmaceutical Industries Limited has caused the Guarantee to be signed
manually or by facsimile by its duly authorized officers. 
  

			
	TEVA PHARMACEUTICAL INDUSTRIES LIMITED
		
	By	 	  

		
	By	 	  

 Section 2.5 Book-Entry Provisions for the Global Notes. 

(a) The Global Notes initially shall be registered in the name of the Depositary (or a nominee thereof) and be delivered to the Trustee as
custodian for such Depositary. 
 (b) Members of, or participants in, the Depositary (“Agent Members”) shall have no rights
under this Supplemental Indenture with respect to any Global Note held on their behalf by the Depositary, or the Trustee as its custodian, or under such Global Note, and the Depositary may be treated by the Issuer, the Trustee and any agent of the
Issuer or the Trustee as the absolute owner of such Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing contained herein shall prevent the Issuer, the Trustee or any agent of the Issuer or the Trustee from giving effect
to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and the Agent Members, the operation of customary practices governing the exercise of the rights of a Holder of any Note.
With respect to any Global Note deposited on behalf of the subscribers for the Notes represented thereby with the Trustee as custodian for the Depositary for credit to their respective accounts (or to such other accounts as they may direct) at
Euroclear or Clearstream, the provisions of the “Operating Procedures of the Euroclear System” and the “Terms and Conditions Governing Use of Euroclear” and the “Management Regulations” and “Instructions to
Participants” of Clearstream, respectively, shall be applicable to the Global Notes. 
 (c) The Holder of a Global Note may grant
proxies and otherwise authorize any Person, including DTC Participants and Persons that may hold interests through DTC Participants, to take any action that a Holder is entitled to take under this Supplemental Indenture, the Base Indenture or the
Notes. 
 (d) A Global Note may not be transferred, in whole or in part, to any Person other than the Depositary (or a nominee thereof), and
no such transfer to any such other Person may be registered. Beneficial interests in a Global Note may be transferred in accordance with the rules and procedures of the Depositary. 

(e) If at any time: 

  
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 (1) the Depositary notifies the Issuer in writing that it is no longer willing or
able to continue to act as Depositary for the Global Notes or the Depositary ceases to be a “clearing agency” registered under the Exchange Act and a successor depositary for the Global Notes is not appointed by the Issuer within 90 days
of such notice or cessation; or 
 (2) an Event of Default has occurred and is continuing and the Registrar has received a
request from the Depositary for the issuance of Physical Notes in exchange for such Global Note or Global Notes; 
 such Global Note or Global Notes shall
be deemed to be surrendered to the Trustee for cancellation and the Issuer shall execute, and the Trustee, upon receipt of an Officers’ Certificate and Issuer Order for the authentication and delivery of Notes, shall authenticate and deliver,
in exchange for such Global Note or Global Notes, Physical Notes of the applicable series in an aggregate principal amount equal to the aggregate principal amount of such Global Note or Global Notes. Such Physical Notes shall be registered in such
names as the Depositary shall identify in writing as the beneficial owners of the Notes represented by such Global Note or Global Notes (or any nominee thereof). 

(f) Notwithstanding the foregoing, in connection with any transfer of beneficial interests in a Global Note to the beneficial owners thereof
pursuant to Section 2.5(c), the Registrar shall reflect on its books and records the date and a decrease in the principal amount of such Global Note in an amount equal to the principal amount of the beneficial interests in such Global Note to
be transferred. 
 Section 2.6 Defaulted Interest. 

If the Issuer fails to make a payment of interest on any Note when due and payable (“Defaulted Interest”), it shall pay such
Defaulted Interest plus (to the extent lawful) any interest payable on the Defaulted Interest, in any lawful manner. It may elect to pay such Defaulted Interest, plus any such interest payable on it, to the Persons who are Holders of such Notes on
which the interest is due on a subsequent Special Record Date. The Issuer shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Note. The Issuer shall fix any such Special Record Date and payment
date for such payment. At least 15 days before any such Special Record Date, the Issuer shall deliver to Holders affected thereby, with copy to the Trustee, a notice that states the Special Record Date, the Interest Payment Date and amount of such
interest to be paid. 
 Section 2.7 Execution of Guarantees. 

The Guarantor hereby agrees to execute the Guarantees in substantially the form above recited to be endorsed on each Note. If the Issuer shall
execute Physical Notes in accordance with Section 2.5, the Guarantor shall execute the Guarantees in substantially the form above recited to be endorsed on each such Note. Such Guarantee shall be executed on behalf of the Guarantor by an
Officer of the Guarantor. The signature of any of these officers on the Guarantees may be manual or facsimile. 

  
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 In case any Officer of the Guarantor who shall have signed the Guarantee endorsed on a Note shall
cease to be such officer before the Note so signed shall be authenticated and delivered by the Trustee, such Note nevertheless may be authenticated and delivered or disposed of as though the person who signed such Guarantee had not ceased to be such
Officer of the Guarantor; and any Guarantee endorsed on a Note may be signed on behalf of the Guarantor by such persons as, at the actual date of the execution of such Guarantee, shall be the proper officers of the Guarantor, although at the date of
the execution and delivery of this Supplemental Indenture any such person was not such an officer. 
 Section 2.8 Add On Notes.

 The Issuer may, from time to time, subject to compliance with any other applicable provisions of this Supplemental Indenture and the Base
Indenture, without the consent of the Holders, create and issue pursuant to this Supplemental Indenture and the Base Indenture Add On Notes having terms identical to those of the Outstanding Notes of any series, except that Add On Notes: 

 

	 	(a)	may have a different issue date from other Outstanding Notes; 

  

	 	(b)	may have a different first Interest Payment Date after issuance than other Outstanding Notes of such series; 

  

	 	(c)	may have a different amount of interest payable on the first Interest Payment Date after issuance than is payable on other Outstanding Notes of such series; and 

 

	 	(d)	may have terms specified in Add On Note Board Resolutions or the Add On Note supplemental indenture for such Add On Notes making appropriate adjustments to this Article 2 and Exhibit A (and related definitions), as the
case may be, applicable to such Add On Notes in order to conform to and ensure compliance with the Securities Act (or other applicable securities laws) and any registration rights or similar agreement applicable to such Add On Notes, which are not
adverse in any material respect to the Holder of any Outstanding Notes (other than such Add On Notes) and which shall not affect the rights, benefits, immunities or duties of the Trustee. 

In authenticating any Add On Notes, and accepting the additional responsibilities under this Indenture in relation to such Add On Notes, the
Trustee shall be entitled to receive, and shall be fully protected in relying upon: 
  

	 	(a)	the Add On Note Board Resolutions or Add On Note supplemental indenture relating thereto; 

  

	 	(b)	an Officers’ Certificate complying with Section 6.5; and 

  

	 	(c)	an Opinion of Counsel complying with Section 6.5 stating, 

  
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 (1) that the forms of such Notes have been established by or pursuant to Add On
Note Board Resolutions or by an Add On Note supplemental indenture, as permitted by this Section 2.8 and in conformity with the provisions of this Supplemental Indenture and the Base Indenture; 

(2) that the terms of such Notes have been established by or pursuant to Add On Note Board Resolutions or by an Add On Note
supplemental indenture, as permitted by this Section 2.8 and in conformity with the provisions of this Supplemental Indenture and the Base Indenture; 

(3) that such Notes and the related Guarantees, when authenticated and delivered by the Trustee and issued by the Issuer and
the Guarantor in the manner provided for herein and in the Base Indenture and the Guarantee, respectively, subject to any customary conditions specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Issuer
and the Guarantor, respectively, entitled to the benefits provided in this Supplemental Indenture and the Base Indenture, enforceable in accordance with their respective terms, except to the extent that the enforcement of such obligations may be
subject to bankruptcy laws or insolvency laws or other similar laws, general principles of equity and such other qualifications as such counsel shall conclude are customary or do not materially affect the rights of the Holders of such Notes; 

(4) that all laws and requirements in respect of the execution and delivery of the Notes have been complied with; and 

(5) such other matters as the Trustee may reasonably request. 

If such forms or terms have been so established by or pursuant to Add On Note Board Resolutions or an Add On Note supplemental indenture, the
Trustee shall have the right to decline to authenticate and deliver any Notes: 
 (1) if the Trustee, being advised by counsel, determines
that such action may not lawfully be taken; 
 (2) if the Trustee in good faith determines that such action would expose the Trustee to
personal liability to Holders of any Outstanding Notes; or 
 (3) if the issue of such Add On Notes pursuant to this Supplemental Indenture
and the Base Indenture will affect the Trustee’s own rights, duties, benefits and immunities under the Notes, this Supplemental Indenture and the Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee. 

Notwithstanding anything in this Section 2.8, the Issuer may not issue Add On Notes if an Event of Default shall have occurred and be
continuing. 

  
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 Section 2.9 CUSIP and ISIN Numbers  

The Issuer in issuing the Notes may use “CUSIP” numbers and “ISIN” Numbers (if then generally in use), and, if so, the
Trustee shall use “CUSIP” and “ISIN” numbers in notices of redemption and other notices to the Holders as a convenience to Holders; provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Notes of a given series or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes of a given series, and any such
redemption shall not be affected by any defect in or omission of such numbers. The Issuer will promptly notify the Trustee in writing of any change in the “ISIN” numbers or common codes. 

ARTICLE 3 
 ADDITIONAL
COVENANTS 
 In addition to the covenants set forth in Article 3 of the Base Indenture, the Notes shall be subject to the additional
covenants set forth in this Article 3. 
 Section 3.1 Payment of Additional Tax Amounts. 

All payments of interest and principal by the Issuer under the Notes of any series and by the Guarantor under the Guarantees shall be made
without withholding or deduction for, or on account of, any present or future taxes, duties, assessments or governmental charges of whatever nature imposed or levied by or on behalf of any Taxing Jurisdiction or any political sub-division thereof or
by any authority therein having power to tax unless such withholding or deduction is required by law. In that event, the Issuer or the Guarantor, as applicable, will (a) withhold or deduct such amounts, (b) pay such additional amounts as
may be necessary in order that the net amounts received by a Holder after such withholding or deduction shall equal the amount of interest and principal which would have been receivable in respect of the Notes in the absence of such withholding or
deduction (“Additional Tax Amounts”) and (c) pay the full amount withheld or deducted to the relevant tax or other authority in accordance with applicable law, except that no such Additional Tax Amounts shall be payable in
respect of any Note: 
 (1) to the extent that such Taxes are imposed or levied by reason of such Holder (or the beneficial
owner) having some present or former connection with the Taxing Jurisdiction other than the mere holding (or beneficial ownership) of such Note or receiving principal or interest payments on the Notes (including but not limited to citizenship,
nationality, residence, domicile, or the existence of a business, permanent establishment, a dependant agent, a place of business or a place of management present or deemed present in the Taxing Jurisdiction); 

(2) in respect of any Taxes that would not have been so withheld or deducted but for the failure by the Holder or the
beneficial owner of the Notes to make a declaration of non-residence, or any other claim or filing for exemption to which it is entitled or otherwise comply with any reasonable certification, identification, information, documentation or other
reporting requirement 

  
 19 

 
concerning nationality, residence, identity or connection with the Taxing Jurisdiction if (a) compliance is required by applicable law, regulation, administrative practice or treaty as a
precondition to exemption from all or part of the Taxes, (b) the Holder (or beneficial owner) is able to comply with these requirements without undue hardship and (c) the Issuer has given the Holders (or beneficial owners) at least 30
calendar days prior notice that they will be required to comply with such requirement; 
 (3) to the extent that such Taxes
are imposed by reason of any estate, inheritance, gift, sales, transfer or personal property taxes imposed with respect to the Notes, except as otherwise provided in the Indenture; 

(4) to the extent that any such Taxes would not have been imposed but for the presentation of such Notes, where presentation is
required, for payment on a date more than 30 days after the date on which such payment became due and payable or the date on which payment thereof is duly provided for, whichever is later, except to the extent that the Holder would have been
entitled to Additional Tax Amounts had the Notes been presented for payment on any date during such 30-day period; 
 (5) in
respect of any Taxes imposed under Sections 1471-1474 of the Internal Revenue Code of 1986, as amended, any applicable U.S. Treasury Regulations promulgated thereunder, or any judicial or administrative interpretations of any of the foregoing; or

 (6) any combination of items 1 through 5 above. 

For purposes of this Section 3.1, “Taxes” means, with respect to payments on the Notes, all taxes, withholdings, duties,
assessments or governmental charges of whatever nature imposed or levied by or on behalf of any Taxing Jurisdiction or any political subdivision thereof or any authority or agency therein or thereof having power to tax. 

Section 3.2 Stamp Tax. 

The Issuer and the Guarantor will pay any present or future stamp, court or documentary taxes or any other excise or property taxes, charges
or similar levies that arise from the execution, delivery, enforcement or registration of the Notes or any other document or instrument in relation thereto. 

Section 3.3 Corporate Existence. 

Subject to Article 8 of the Base Indenture, each of the Guarantor and the Issuer will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence, rights (charter and statutory) and franchises; provided, however, that the Issuer and the Guarantor shall not be required to preserve any such right or franchise if the
Issuer and the Guarantor determine that the preservation thereof is no longer desirable in the conduct of the business of the Issuer or the Guarantor and that the loss thereof is not disadvantageous in any material respect to the Holders.

  
 20 

 Section 3.4 Certificates of the Issuer and the Guarantor. 

The Issuer and the Guarantor will each furnish to the Trustee within 120 days after the end of each fiscal year of the Issuer or the
Guarantor, as the case may be, an Officers’ Certificate of the Issuer or the Guarantor, as the case may be, as to the signers’ knowledge of the Issuer’s or the Guarantor’s compliance with all conditions and covenants under this
Supplemental Indenture and the Base Indenture (such compliance to be determined without regard to any period of grace or requirement of notice provided under this Supplemental Indenture or the Base Indenture). In the event an Officer of the
Guarantor or an Officer of the Issuer comes to have actual knowledge of an Event of Default or an event which, with notice or the lapse of time or both, would constitute an Event of Default, regardless of the date, the Guarantor or the Issuer shall
deliver an Officers’ Certificate to the Trustee specifying such Default and the nature and status thereof. 
 Section 3.5
Guarantor To Be the Sole Equityholder of the Issuer. 
 So long as any Notes are outstanding, the Guarantor or its successor will
directly or indirectly own all of the outstanding Capital Stock of the Issuer. 
 Section 3.6 Limitation on Liens. 

The Guarantor shall not, and shall not permit any subsidiary to, directly or indirectly, create, incur, assume or suffer to exist any Lien,
other than a Permitted Lien, upon any of its property or assets (including any shares of Capital Stock or Indebtedness of any subsidiary), whether owned or leased on the date of this Supplemental Indenture or hereafter acquired, to secure any
Indebtedness incurred by the Guarantor or any subsidiary, without in any such case making effective provision whereby all of the Notes outstanding (together with, if the Guarantor so determines, any other Indebtedness by the Guarantor or any such
subsidiary ranking equally with the Notes or the Guarantees) shall be secured equally and ratably with, or prior to, such Indebtedness for so long as such Indebtedness shall be so secured unless, after giving effect to such Lien, the aggregate
amount of secured Indebtedness then outstanding (excluding Indebtedness secured solely by Permitted Liens) plus the value (as defined in Section 3.7) of all Sale-Leaseback Transactions (other than those described in clause (a) or clause
(b) of Section 3.7) then outstanding would not exceed 10% of the Guarantor’s Consolidated Net Worth. 
 Section 3.7
Limitation on Sales and Leasebacks. 
 The Guarantor will not, and will not permit any subsidiary to, enter into any Sale-Leaseback
Transaction after the date of this Supplemental Indenture unless: 
  

	 	(a)	the Sale-Leaseback Transaction: 

 (1) involves a lease for a period, including
renewals, of not more than five years; 
 (2) occurs within 270 days after the date of acquisition, completion of
construction or completion of improvement of such property; or 
 (3) is with the Guarantor or one of its subsidiaries; or

  
 21 

	 	(b)	the Guarantor or any subsidiary, within 270 days after the Sale-Leaseback Transaction shall have occurred, applies or causes to be applied an amount equal to the value of the property so sold and leased back at the time
of entering into such arrangement to the prepayment, repayment, redemption, reduction or retirement of any Indebtedness of the Guarantor or any subsidiary that is not subordinated to the Notes and that has a Stated Maturity of more than twelve
months; or 

  

	 	(c)	the Guarantor or such subsidiary would be entitled pursuant to Section 3.6 to create, incur, issue or assume Indebtedness secured by a Lien, other than a Permitted Lien, on the property without equally and ratably
securing the Notes. 

 As used in this Section 3.7, the term “value” shall mean, with respect to a
Sale-Leaseback Transaction, as of any particular time an amount equal to the greater of (i) the net proceeds of sale of the property leased pursuant to such Sale-Leaseback Transaction, or (ii) the fair value of such property at the time of
entering into such Sale-Leaseback Transaction as determined by the Board of Directors of the Guarantor, in each case multiplied by a fraction of which the numerator is the number of full years of remaining term of the lease (without regard to
renewal options) and the denominator is the full years of the full term of the lease (without regard to renewal options). 

Section 3.8 Waiver of Stay or Extension Laws. 

The Issuer covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim to take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Supplemental Indenture and the Base Indenture; and the
Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted. 
 ARTICLE 4 

REDEMPTION OF NOTES 

Section 4.1 Optional Redemption. 

The Issuer may redeem the Notes (or any series thereof) in whole or in part, at any time or from time to time, on any date prior to the Stated
Maturity, upon notice as set forth in Section 4.2, at the Redemption Price plus any interest accrued and unpaid to, but excluding, the Redemption Date. 

Section 4.2 Notice of Redemption. 

Notice of redemption shall be given in the manner provided in Section 6.4 to the Holders of Notes of the series to be redeemed, with a
copy of such notice delivered to the Trustee. Such notice shall be given not less than 20 nor more than 60 days prior to the intended Redemption Date. Notice shall be given by the Issuer to the Trustee at least five Business Days prior to delivery
of such notice of redemption to the Holders. 

  
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 Section 4.3 Deposit of Redemption Price. 

On the Business Day before any Redemption Date, the Issuer shall deposit with the Trustee or with a Paying Agent an amount of money sufficient
to pay the Redemption Price in respect of all the Notes to be redeemed on that Redemption Date and accrued and unpaid interest, if any, on such Notes. If less than all of the Notes (or any series thereof) are to be redeemed, the Notes to be redeemed
shall be selected by the Trustee on a pro rata basis, by lot or by such method as the Trustee shall deem fair and appropriate and subject to the rules of the applicable depositary. 

Section 4.4 Tax Redemption. 

(a) If, as a result of any amendment to, or change in, the laws (or any rulings or regulation thereunder) of any Taxing Jurisdiction or any
political subdivision or taxing authority thereof or therein affecting taxation or any change in an official interpretation or application of such laws, rulings or regulations, which amendment or change of such laws, rules or regulations becomes
effective or, in the case of a change in official position is announced on or after the date of this Supplemental Indenture, the Issuer or the Guarantor (or its successor), as the case may be, will be obligated to pay any Additional Tax Amount with
respect to the Notes (or any series thereof), and if the Issuer, in its business judgment, determines that such obligation cannot be avoided by the Issuer or the Guarantor (or its successor), after taking reasonable measures available to it, then at
the option of the Issuer or the Guarantor (or its successor), as the case may be, the Notes (or any series thereof) may be redeemed in whole, but not in part, at any time, on giving not less than 20 nor more than 60 days’ notice to the Trustee
and the Holders of such Notes, at 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest up to but not including the Redemption Date and any Additional Tax Amounts which would otherwise be payable; provided,
however, that (1) no notice of such tax redemption may be given earlier than 90 days prior to the earliest date on which the Issuer or the Guarantor (or its successor), as the case may be, would but for such redemption be obligated to
pay such Additional Tax Amounts were a payment on such Notes then due, and (2) at the time such notice is given, such obligation to pay such Additional Tax Amounts remains in effect. 

(b) Before any notice of tax redemption pursuant to Section 4.4(a) is given to the Trustee or the Holders of the Notes, the Issuer or the
Guarantor (or its successor), as the case may be, shall deliver to the Trustee 
 (i) an Officer’s Certificate stating that the Issuer
or the Guarantor (or its successor), is entitled to effect such redemption and setting forth a statement of facts showing that the condition or conditions precedent to the right of the Issuer or the Guarantor (or its successor) so to redeem have
occurred or been satisfied and (ii) an opinion of counsel to the effect that the Issuer or the Guarantor (or its successor) has or shall become obligated to pay Additional Tax Amounts as a result of a change or amendment described in
Section 4.4(a). Such notice, once given to the Trustee, shall be irrevocable. 

  
 23 

 Section 4.5 Special Mandatory Redemption. 

(a) In the event that (i) the closing of the Actavis Generics Acquisition does not occur on or prior to October 26, 2016, or
(ii) the Master Purchase Agreement is terminated at any time prior thereto, the Issuer will be required to redeem all of the Notes on the Special Redemption Date at a redemption price equal to 101% of the aggregate principal amount of such
Notes (the “Special Redemption Price”), plus accrued and unpaid interest to, but excluding, the Special Mandatory Redemption Date, subject to the rights of the holders of the applicable series on the relevant record date to receive
interest due on the relevant interest payment date. Each series of Notes shall on the Special Redemption Date become due and payable at the Special Redemption Price for such series. If funds sufficient to pay the Special Redemption Price of all
Notes on the Special Redemption Date are deposited with the Trustee or paying agent on or before such Special Redemption Date, plus accrued and unpaid interest, if any, to, but excluding, the Special Redemption Date, the Notes will cease to bear
interest and all rights under the Notes shall terminate (other than in respect of the right to receive the Special Redemption Price, plus accrued and unpaid interest, if any). 

(b) Notice of redemption (the “Special Mandatory Redemption Notice”) shall be mailed, or caused to be mailed, by the Issuer, with a
copy provided to the Trustee, by first class postage prepaid mail to each Holder of the Notes being redeemed at its registered address within five Business Days after the occurrence of the event triggering the special mandatory redemption. Failure
to give notice by mailing in the manner herein provided to such Holder, or any defect in the notice to any such Holder, shall not affect the validity of the proceedings for the redemption of any other Notes. 

(c) All Special Mandatory Redemption Notices shall state: 

(i) the Special Redemption Date, which date may not be any later than the 25th day (or, if such day is not a Business Day, the first Business
Day thereafter) from the date of such Special Mandatory Redemption Notice; 
 (ii) the Special Redemption Price for each series of Notes;

 (iii) that on the Special Redemption Date, the Special Redemption Price shall become due and payable with respect to each series of Notes;

 (iv) the place or places where such Notes are to be surrendered for payment of the Special Redemption Price; 

(v) the CUSIP, ISIN or “Common Code” number of such Notes, if any, or any other numbers used by the Depositary to identify such
Notes; and 
 (vi) if funds sufficient to pay the Special Redemption Price of all Notes on the Special Redemption Date are deposited with the
Trustee or paying agent on or before such Special Redemption Date, plus accrued and unpaid interest, if any, to, but not including, the Special Redemption Date, that the Notes will cease to bear interest and all rights under the Notes shall
terminate (other than in respect of the right to receive the Special Redemption Price, plus accrued and unpaid interest, if any). 

  
 24 

 (d) Notwithstanding the foregoing, installments of interest on any series of the Notes that are
due and payable on interest payment dates falling on or prior to the Special Redemption Date will be payable on such interest payment dates to the registered holders of the applicable Notes as of the close of business on the relevant record dates in
accordance with the applicable series of Notes and this Indenture. 
 (e) This Section 4.5 may not be waived or modified for any series
of the Notes without the written consent of Holders of at least a majority in principal amount of the series of Notes subject to such waiver or modification. 

(f) Upon the occurrence of the closing of the Actavis Generics acquisition, this Section 4.5 will cease to apply. 

ARTICLE 5  

SATISFACTION AND DISCHARGE 

Section 5.1 Satisfaction and Discharge. 

(a) With respect to the Notes, Section 9.01 of the Base Indenture is not applicable. 

(b) The Issuer and the Guarantor may satisfy and discharge their obligations under this Supplemental Indenture while the Notes remain
outstanding, if (a) all Outstanding Notes have become due and payable at their scheduled Maturity, or (b) all Outstanding Notes have been called for redemption, and in either case, the Issuer has deposited with the Trustee an amount
sufficient to pay and discharge all Outstanding Notes on the date of their scheduled Maturity or the scheduled Redemption Date. 
 ARTICLE
6 
 MISCELLANEOUS PROVISIONS 

Section 6.1 Scope of Supplemental Indenture. 

The changes, modifications and supplements to the Base Indenture effected by this Supplemental Indenture shall only be applicable with respect
to, and govern the terms of, the Notes and shall not apply to any other Securities that may be issued by the Issuer under the Base Indenture. 

  
 25 

 Section 6.2 Provisions of Supplemental Indenture for the Sole Benefit of Parties and
Holders of Notes. 
 Nothing in this Supplemental Indenture, the Base Indenture or in the Notes or the Guarantees, expressed or implied,
shall give or be construed to give to any person, firm or corporation, other than the parties hereto and their successors and the Holders of the Notes, any legal or equitable right, remedy or claim under this Supplemental Indenture or under any
covenant or provision herein contained, all such covenants and provisions being for the sole benefit of the parties hereto and their successors and of the Holders of the Notes. 

Section 6.3 Successors and Assigns of Issuer and Guarantor Bound by Supplemental Indenture. 

All the covenants, stipulations, promises and agreements in this Supplemental Indenture contained by or on behalf of the Issuer shall bind its
successors and assigns, whether so expressed or not. All the covenants, stipulations, promises and agreements in this Supplemental Indenture contained by or on behalf of the Guarantor shall bind its successors and assigns, whether so expressed or
not. 
 Section 6.4 Notices and Demands on Issuer, Trustee and Holders of Notes. 

Any notice or demand which by any provision of this Supplemental Indenture is required or permitted to be given or served by the Trustee or by
the Holders of Notes to or on the Issuer or the Guarantor may be given or served by being deposited postage prepaid, first-class mail (except as otherwise specifically provided herein) addressed (until another address is filed with the Trustee) as
follows: 
 If to the Issuer, to: 

Teva Pharmaceutical Finance Netherlands III B.V. 

Piet Heinkade 107, 1019 GM 

Amsterdam, Netherlands 

Attention: Managing Director 

Fax: +972-3-9062501 
 with a copy
to: 
 c/o Teva Pharmaceuticals USA, Inc. 

1090 Horsham Road 
 North Wales,
PA 19454 
 Attention: David M. Stark and Austin D. Kim 

Fax: (215) 293-6499 
 with a
copy (which shall not constitute notice) to: 
 Willkie Farr & Gallagher LLP 

787 Seventh Avenue 

  
 26 

 New York, NY 10019 

Attention: Jeffrey S. Hochman 

Fax: +1 (212) 728-9592 
 If
to the Guarantor: 
 Teva Pharmaceutical Industries Limited 

5 Basel Street, P.O. Box 3190 

Petach Tikva 4951033 Israel 

Attention: Eyal Desheh and Eran Ezra 

Facsimile: 011-972-3-914-8678 

with copies (which in the case of Willkie Farr & Gallagher LLP 

shall not constitute notice) to: 

Teva Pharmaceuticals USA, Inc. 

1090 Horsham Road 
 North Wales,
PA 19454 
 Attention: David M. Stark and Austin D. Kim 

Fax: +1 (215) 591-8811 

Willkie Farr & Gallagher LLP 

787 Seventh Avenue 
 New York, NY
10019 
 Attention: Jeffrey S. Hochman 

Fax: +1 (212) 728-9592 
 Any
notice, direction, request or demand by the Issuer, the Guarantor or any Holder of Notes to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if delivered in person or mailed by first-class mail to the
Trustee at 101 Barclay Street, Floor 7E, New York, NY 10286, Attention: Corporate Trust Administration – Global Finance Unit. 
 Where
this Supplemental Indenture provides for notice to Holders, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing, in the English language, and mailed, first-class postage prepaid, to each Holder entitled
thereto, at his last address as it appears in the register of the Notes of the applicable series. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to other Holders. Where this Supplemental Indenture provides for notice in any manner, such notice may be waived in writing by the person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver. 
 In case, by reason of the suspension of or irregularities in regular mail service, it shall be impracticable
to mail notice to the Issuer, the Guarantor or Holders of Notes when such notice is 

  
 27 

 
required to be given pursuant to any provision of this Supplemental Indenture, then any manner of giving such notice as shall be satisfactory to the Trustee shall be deemed to be a sufficient
giving of such notice. 
 Notwithstanding anything to the contrary contained herein, as long as the Securities are in the form of a
Registered Global Security, notice to the Holders may be made electronically in accordance with procedures of the Depositary. 

Section 6.5 Officers’ Certificates and Opinions of Counsel; Statements to be Contained Therein. 

Upon any application or demand by the Issuer or the Guarantor to the Trustee to take any action under any of the provisions of this
Supplemental Indenture, the Issuer or the Guarantor, as the case may be, shall furnish to the Trustee an Officers’ Certificate or Guarantor’s Officers’ Certificate, as the case may be, stating that all conditions precedent provided
for in this Supplemental Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent have been complied with. 

Each certificate or opinion provided for in this Supplemental Indenture and delivered to the Trustee with respect to compliance with a
condition or covenant provided for in this Supplemental Indenture shall include (a) a statement that the person making such certificate or opinion has read such covenant or condition, (b) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in such certificate or opinion are based, (c) a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable
him to express an informed opinion as to whether or not such covenant or condition has been complied with and (d) a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with. 

Any certificate, statement or opinion of an officer of the Issuer or the Guarantor may be based, insofar as it relates to legal matters, upon
a certificate or opinion of or representations by counsel, unless such officer knows that the certificate or opinion or representations with respect to the matters upon which his certificate, statement or opinion may be based as aforesaid are
erroneous, or in the exercise of reasonable care should know that the same are erroneous. Any certificate, statement or opinion of counsel may be based, insofar as it relates to factual matters, information with respect to which is in the possession
of the Issuer or the Guarantor, as the case may be, upon the certificate, statement or opinion of or representations by an officer of officers of the Issuer or the Guarantor, as the case may be, unless such counsel knows that the certificate,
statement or opinion or representations with respect to the matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care should know that the same are erroneous. 

Any certificate, statement or opinion of an officer of the Issuer or the Guarantor or of counsel may be based, insofar as it relates to
accounting matters, upon a certificate or opinion of or representations by an accountant or firm of accountants in the employ of the Issuer, unless such officer or counsel, as the case may be, knows that the certificate or opinion or

  
 28 

 
representations with respect to the accounting matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care should know
that the same are erroneous. 
 Any certificate or opinion of any independent firm of public accountants filed with the Trustee shall
contain a statement that such firm is independent. 
 Section 6.6 Payments Due on Saturdays, Sundays and Holidays. 

If the date of maturity of interest on or principal of the Notes of any series or the date fixed for redemption of any such Note shall not be
a Business Day, then payment of interest or principal need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date of maturity or the date fixed for redemption, and no
interest shall accrue for the period after such date. 
 Section 6.7 Conflict of any Provisions of Supplemental Indenture with Trust
Indenture Act of 1939. 
 If and to the extent that any provision of this Supplemental Indenture limits, qualifies or conflicts with
another provision included in this Supplemental Indenture by operation of Sections 310 to 317, inclusive, of the TIA (an “incorporated provision”), such incorporated provision shall control. 

Section 6.8 New York Law to Govern. 

This Supplemental Indenture, each 2018 Note, each 2019 Note, each 2021 Note, each 2023 Note, each 2026 Note and each 2046 Note shall be deemed
to be a contract under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of such State. 

Section 6.9 Counterparts. 

This Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument. 
 Section 6.10 Effect of Headings. 

The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 

Section 6.11 Submission to Jurisdiction. 

Each of the Issuer and the Guarantor agrees that any legal suit, action or proceeding arising out of or based upon this Supplemental Indenture
may be instituted in any federal or state court sitting in the Borough of Manhattan in New York City, and, to the fullest extent permitted by law, waives any objection which it may now or hereafter have to the laying of venue of any such proceeding,
and irrevocably submits to the non-exclusive jurisdiction of such court in any 

  
 29 

 
law suit, action or proceeding. Each of the Issuer and the Guarantor, as long as any of the Notes remain Outstanding or the parties hereto have any obligation under this Supplemental Indenture,
shall have an authorized agent (the “Authorized Agent”) in the United States upon whom process may be served in any such legal action or proceeding. Service of process upon such agent and written notice of such service mailed or
delivered to it shall to the extent permitted by law be deemed in every respect effective service of process upon it in any such legal action or proceeding. The Issuer and the Guarantor each hereby appoints Teva Pharmaceuticals USA, Inc. (1090
Horsham Road, North Wales, PA 19454) as its agent for such purposes, and covenants and agrees that service of process in any legal action or proceeding may be made upon it at such office of such agent. The Issuer will provide written notice to the
Trustee of any change in the Authorized Agent. In the event that any Authorized Agent resigns, is removed or becomes incapable of so acting, the Issuer shall promptly appoint a successor Authorized Agent and shall notify the Trustee in writing of
such change in Authorized Agent. 
 Section 6.12 Not Responsible for Recitals or Issuance of Securities. 

The recitals contained herein and in the Notes, except the Trustee’s certificates of authentication, shall be taken as the statements of
the Issuer and the Guarantor, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture or of the Notes. The Trustee shall not be
accountable for the use or application by the Issuer of Notes or the proceeds thereof. 
 ARTICLE 7  

SUPPLEMENTAL INDENTURES 

Section 7.1 Without Consent of Holders. 
  

	 	(a)	Section 7.01(d) of the Base Indenture is not applicable with respect to the Notes. 

  

	 	(b)	In addition to the provisions set forth in Section 7.01 of the Base Indenture as amended by Section 7.1(a) above, the Issuer, the Guarantor and the Trustee may amend, modify or supplement the Base Indenture or
this Supplemental Indenture without the consent of any Holder for one or more of the following purposes: 

 (1)
to cure any ambiguity or to correct or supplement any provision contained herein or in any supplemental indenture which may be defective or inconsistent with any other provision contained herein or in any supplemental indenture; provided that
such amendment, modification or supplement shall not, in the good faith opinion of the Board, adversely affect the interests of the Holders of the Notes in any material respect; provided, further, that any amendment made solely to
conform the provisions of this Supplemental Indenture to the description of the Notes contained in the Issuer’s prospectus supplement dated July 18, 2016 will not be deemed to adversely affect the interests of the Holders of the Notes;

  
 30 

 (2) to make such other provisions in regard to matters or questions arising
hereunder or any supplemental indenture as the Issuer and the Trustee may deem necessary or desirable and which shall not adversely affect the interests of the Holders of the Notes; 

(3) to surrender any right or power conferred upon the Issuer or the Guarantor hereunder; and 

(4) to comply with the requirements of the Commission in order to effect or maintain the qualification of the Indenture under
the TIA. 
 Section 7.2 With Consent of Majority of Affected Holders. 

In addition to the provisions set forth in Section 7.02(a) of the Base Indenture, the Issuer, the Guarantor and the Trustee may not
amend, modify or supplement the Base Indenture or this Supplemental Indenture for one or more of the following purposes without the consent of each Holder so affected: 
  

	 	(a)	to modify the Issuer’s obligation to maintain an office or agency in New York City pursuant to Section 3.02 of the Base Indenture; 

 

	 	(b)	to modify the Guarantor’s obligation to directly or indirectly own all of the outstanding Capital Stock of the Issuer pursuant to Section 3.5 of this Supplemental Indenture; 

 

	 	(c)	to modify any provision of Article 4 relating to redemption of the Notes; 

  

	 	(d)	to modify the Guarantee in a manner that would adversely affect the interests of the Holders of the Notes; and 

  

	 	(e)	to reduce the percentage in aggregate principal amount of the Notes at the time Outstanding necessary (i) to modify, amend or supplement the Base Indenture or this Supplemental Indenture or (ii) to waive any
past default or Event of Default pursuant to Section 4.10 of the Base Indenture. 

  
 31 

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

					
	Very truly yours,
	
	 TEVA PHARMACEUTICAL FINANCE
NETHERLANDS III, AS ISSUER

		
	By:	 	/s/ Frank Kimick 
		 	Name: 	 	Frank Kimick 
		 	Title: 	 	Attorney-In-Fact
		
	By:	 	/s/ Austin Kim
		 	Name: 	 	Austin Kim 
		 	Title: 	 	Attorney-In-Fact
	
	 TEVA PHARMACEUTICAL INDUSTRIES
LIMITED, AS GUARANTOR

		
	By:	 	/s/ Eyal Desheh 
		 	Name: 	 	Eyal Desheh 
		 	Title: 	 	 Group Vice President and
 Chief Financial
Officer

		
	By:	 	/s/ Eyal Rubin 
		 	Name: 	 	Eyal Rubin 
		 	Title: 	 	 Vice President and Head of
 Corporate
Treasury

	
	 THE BANK OF NEW
YORK MELLON, AS TRUSTEE

		
	By:	 	/s/ James W. Briggs 
		 	Name: 	 	James W. Briggs 
		 	Title: 	 	Vice President

 EXHIBIT A-1 

[FORM OF FACE OF NOTE] 
 UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO TEVA PHARMACEUTICAL FINANCE III, B.V. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IN
EXCHANGE FOR THIS NOTE IS REGISTERED IN THE NAME OF CEDE & CO. (“CEDE”) OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE 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, HAS AN INTEREST HEREIN. 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE SUPPLEMENTAL INDENTURE REFERRED TO HEREIN. THIS GLOBAL NOTE MAY NOT BE EXCHANGED, IN WHOLE OR IN
PART, FOR A NOTE REGISTERED IN THE NAME OF ANY PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES SET FORTH IN THE SUPPLEMENTAL INDENTURE AND MAY NOT BE TRANSFERRED, IN WHOLE OR IN PART, EXCEPT
IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE SUPPLEMENTAL INDENTURE. 
  

			
	No.    	  	U.S.$         

 CUSIP No. 88167A AA9 
 ISIN
No. US88167AAA97 
 GLOBAL NOTE 

TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V. 

1.400% Senior Notes due 2018 

Payment of Principal, Interest and Additional Tax Amounts, if any, Unconditionally 

Guaranteed By 
 TEVA
PHARMACEUTICAL INDUSTRIES LIMITED 
 This Global Note is in respect of an issue of 1.400% Senior Notes due 2018 (the
“Notes”) of Teva Pharmaceutical Finance Netherlands III B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under Dutch law (the “Issuer”, which
term includes any successor corporation under the Supplemental Indenture 

  
 A-1-1 

 
and Indenture hereinafter referred to), and issued pursuant to a supplemental indenture and a base indenture, each dated as of July 21, 2016 (respectively, the “Supplemental
Indenture” and the “Base Indenture” and together, the “Indenture”) among the Issuer, Teva Pharmaceutical Industries Limited, as guarantor (the “Guarantor”), and The Bank of New York Mellon,
a New York banking corporation, as trustee (the “Trustee”). Unless the context otherwise requires, the terms used herein shall have the meanings specified in the Supplemental Indenture and the Base Indenture. 

The Issuer, for value received, hereby promises to pay to Cede & Co. or its
registered assigns, the principal amount of                      United States Dollars (U.S.$        ) on
July 20, 2018, and to pay interest on such principal amount in U.S. Dollars at the rate of 1.400% per annum, computed on a basis of a 360 day year consisting of twelve 30 day months, from the date hereof until payment of such principal amount has
been made or duly provided for, such interest to be paid semi-annually on January 20 and July 20 of each year, commencing January 20, 2017. The interest so payable on January 20 and July 20 will, subject to certain
exceptions provided in the Supplemental Indenture, be paid to the person in whose name this Note is registered at the close of business on the immediately preceding January 5 and July 5, respectively (whether or not a Business Day). 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 This Note shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by the Trustee. 

  
 A-1-2 

 IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed manually or by facsimile
by its duly authorized officers. 
 Dated: July 21, 2016 
  

			
	TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V.
		
	By	 	  

		 	Name:
		 	Title:
		
	By	 	  

		 	Name:
		 	Title:

  

			
	Trustee’s Certificate of Authentication
	
	This is one of the 1.400% Senior Notes due 2018 described in the within-named Indenture.
	
	THE BANK OF NEW YORK MELLON,
	as Trustee
		
	By:	 	  

		 	Authorized Signatory
	
	Dated: July 21, 2016

  
 A-1-3 

 Teva Pharmaceutical Industries Limited (the “Guarantor”) hereby unconditionally and
irrevocably guarantees to the Holder of this Note (the “Guarantee”) the due and punctual payment of the principal of and interest (including Additional Tax Amounts, if any), on this Note, when and as the same shall become due and payable,
whether at Maturity or upon redemption or upon declaration of acceleration or otherwise, according to the terms of this Note and of the Indenture. The Guarantor agrees that in the case of default by the Issuer in the payment of any such principal or
interest (including Additional Tax Amounts, if any), the Guarantor shall duly and punctually pay the same. The Guarantor hereby agrees that its obligations hereunder shall be absolute and unconditional irrespective of any extension of the time for
payment of this Note, any modification of this Note, any invalidity, irregularity or unenforceability of this Note or the Indenture, any failure to enforce the same or any waiver, modification, consent or indulgence granted to the Issuer with
respect thereto by the Holder of this Note or the Trustee, or any other circumstances which may otherwise constitute a legal or equitable discharge of a surety or guarantor. The Guarantor hereby waives diligence, presentment, demand of payment,
filing of claims with a court in the event of merger or bankruptcy of the Issuer, any right to require a demand or proceeding first against the Issuer, protest or notice with respect to this Note or the indebtedness evidenced hereby and all demands
whatsoever, and covenants that this Guarantee will not be discharged as to this Note except by payment in full of the principal of and interest (including Additional Tax Amounts, if any) on this Note. 

The Guarantor shall be subrogated to all rights of the Holders against the Issuer in respect of any amounts paid by the Guarantor pursuant to
the provisions of the Guarantees or the Indenture; provided, however, that the Guarantor hereby waives any and all rights to which it may be entitled, by operation of law or otherwise, upon making any payment hereunder (i) to be subrogated to the
rights of a Holder against the Issuer with respect to such payment or otherwise to be reimbursed, indemnified or exonerated by the Issuer in respect thereof or (ii) to receive any payment in the nature of contribution or for any other reason, from
any other obligor with respect to such payment, in each case, until the principal of and interest (including Additional Tax Amounts, if any) on this Note shall have been paid in full. 

The Guarantee shall not be valid or become obligatory for any purpose with respect to this Note until the certificate of authentication on
this Note shall have been signed by the Trustee. 
 The Guarantee shall be governed by and construed in accordance with the laws of the
State of New York.

  
 A-1-4 

 IN WITNESS WHEREOF, Teva Pharmaceutical Industries Limited has caused the Guarantee to be signed
manually or by facsimile by its duly authorized officers. 
 Dated: July 21, 2016 

 

			
	TEVA PHARMACEUTICAL INDUSTRIES LIMITED
		
	By	 	  

		 	Name:
		 	Title:
		
	By	 	  

		 	Name:
		 	Title:

  
 A-1-5 

 [REVERSE OF NOTE] 

TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V. 

1.400% Senior Notes due 2018 

Payment of Principal, Interest and Additional Tax Amounts, if any, Unconditionally 

Guaranteed By 
 TEVA
PHARMACEUTICAL INDUSTRIES LIMITED 
 Capitalized terms used herein but not defined shall have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated. 
  

	1.	Principal and Interest. 

 Teva Pharmaceutical Finance Netherlands III B.V., a private
company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under Dutch law (the “Issuer”), promises to pay interest on the principal amount of this Note at 1.400% per annum from July
21, 2016 until the principal thereof is paid or made available for payment. Interest shall be payable semi-annually in arrears on each January 20 and July 20 of each year (each an “Interest Payment Date”), commencing
January 20, 2017. 
 Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. 

A Holder of any Note at the close of business on a Regular Record Date shall be entitled to receive interest on such Note on the corresponding
Interest Payment Date. 
  

	2.	Method of Payment. 

 Interest on any Note which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the person in whose name that Note (or one or more Predecessor Notes) is registered at the close of business on the relevant Regular Record Date for such interest. 

Principal of and interest on Global Notes shall be payable to the Depositary in immediately available funds. 

Principal of Physical Notes will be payable at the office or agency of the Issuer maintained for such purpose, initially the Corporate Trust
Office of the Trustee. Interest on Physical Notes will be payable by (i) U.S. Dollar check drawn on a bank in The City of New York mailed to the address of the Person entitled thereto as such address shall appear in the register of the Notes,
or (ii) upon written application to the Registrar not later than the relevant Record Date by a Holder of an aggregate principal amount of Notes in excess of $5,000,000, wire transfer in immediately available funds, which application and written wire
instructions shall remain in effect until the Holder notifies, in writing, the Registrar to the contrary. 

  
 A-1-6 

	3.	Paying Agent and Registrar. 

 Initially, The Bank of New York Mellon, the Trustee under
the Supplemental Indenture, will act as Paying Agent and Registrar. The Issuer may change the Paying Agent or Registrar without notice to any Holder. 
  

	4.	Supplemental Indenture and Indenture. 

 The Issuer issued this Note under a Supplemental
Indenture and a Base Indenture, each dated as of July 21, 2016 (respectively, the “Supplemental Indenture” and the “Base Indenture” and together, the “Indenture”), among the Issuer, the Guarantor
and The Bank of New York Mellon, as trustee (the “Trustee”). The terms of the Note include those stated in the Indenture, and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended
(“TIA”). This Note is subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms
of this Note and the terms of the Indenture, the terms of the Indenture shall control. 
  

	5.	Optional Redemption. 

 This Note may be redeemed in whole at any time or in part from
time to time, at the option of the Issuer, on any date prior to Maturity, upon notice as set forth in Section 4.2 of the Supplemental Indenture, at a Redemption Price equal to the greater of (1) 100% of the principal amount of the Notes to be
redeemed or (2) the sum of the present values of the Remaining Scheduled Payments discounted, on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), at a rate equal to the sum of the Treasury Rate and 12.5 basis points,
plus any interest accrued and unpaid to, but excluding, the Redemption Date. 
 On and after the Redemption Date, interest shall cease to
accrue on Notes or portions of Notes called for redemption, unless the Issuer defaults in the payment of the Redemption Price. 
 Notice of
redemption will be given by the Issuer to the Holders as provided in the Supplemental Indenture. 
  

	6.	Tax Redemption. 

 The Notes may be redeemed as a whole but not in part, at the option of
the Issuer at any time prior to Stated Maturity, upon the giving of a notice of tax redemption to the Holders, at a Redemption Price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest, if the Issuer determines that,
as a result of any change in or amendment in the laws of any Taxing Jurisdiction, or any change in official position regarding the application or interpretation of the laws, which change or amendment becomes effective or, in the case of a
change in official position, is announced on or after the issuance of the Notes, the Issuer or the Guarantor (or its successor) will be obligated to pay Additional Tax Amounts with respect to the Notes; provided, however, that the
Issuer, in its business judgment, determines that such obligation cannot be avoided by the Issuer or the Guarantor (or its successor), taking reasonable measures avoidable to it. 

  
 A-1-7 

	7.	Special Mandatory Redemption. 

 In the event that (i) the closing of the Actavis Generics
acquisition does not occur on or prior to October 26, 2016, or (ii) the Master Purchase Agreement is terminated at any time prior thereto, the Issuer will be required to redeem the Securities on the Special Redemption Date at the Special Redemption
Price. 
  

	8.	Denominations; Transfer; Exchange. 

 The Notes are issuable in registered form, without
coupons, in minimum denominations of $2,000 principal amount and integral multiples of $1,000 in excess of $2,000. A Holder may register the transfer or exchange of Notes in accordance with the Indenture. The Issuer or the Trustee may
require a Holder, among other things, to furnish appropriate endorsements and transfer documents, and the Issuer may require a Holder to pay any taxes or other governmental charges that may be imposed in connection with any exchange or registration
of transfer of Notes. 
 The Issuer shall not be required to exchange or register a transfer of (a) any Note for a period of 15 days next
preceding the first mailing of notice of redemption of Notes to be redeemed, (b) any Notes selected, called or being called for redemption except, in the case of any Note where notice has been given that such Note is to be redeemed in part, the
portion thereof not so to be redeemed or (c) any Notes between a record date and the next succeeding payment date. 
 In the event of
redemption of the Notes in part only, a new Note or Notes for the unredeemed portion thereof will be issued in the name of the Holder hereof. 
  

	9.	Holders to be Treated as Owners. 

 The registered Holder of this Note shall be treated as
its owner for all purposes. 
  

	10.	Unclaimed Money. 

 Any moneys deposited with or paid to the Trustee or any Paying Agent
for the payment of the principal of or interest on any Note and not applied but remaining unclaimed for two years after the date upon which such principal or interest shall have become due and payable, shall, upon the written request of the Issuer
and unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be repaid to the Issuer by the Trustee or such Paying Agent, and the Holder of the Note shall, unless otherwise required by mandatory
provisions of applicable escheat or abandoned or unclaimed property laws, thereafter look only to the Issuer for any payment which such Holder may be entitled to collect, and all liability of the Trustee or any Paying Agent with respect to such
moneys shall thereupon cease. 
  

	11.	Satisfaction and Discharge. 

 The Issuer and the Guarantor may satisfy and discharge
their obligations under the Indenture while the Notes remain outstanding, if (a) all Outstanding Notes have become due 

  
 A-1-8 

 
and payable at their scheduled Maturity, or (b) all Outstanding Notes have been called for redemption, and in either case, the Issuer has deposited with the Trustee an amount sufficient to pay
and discharge all Outstanding Notes on the date of their scheduled Maturity or the scheduled Redemption Date. 
  

	12.	Supplement; Waiver. 

 The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Outstanding Notes (or such lesser amount as shall have acted at a meeting pursuant to the provisions of the Indenture). The Indenture also contains provisions permitting the Holders of specified percentages in
principal amount of the Notes at the time Outstanding, on behalf of the Holders of all the Notes, to waive compliance by the Issuer 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 Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon 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 Note or such other Note. 
 No reference herein to the
Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, places and rate, and in the coin or
currency, herein prescribed. 
  

	13.	Defaults and Remedies. 

 The Indenture provides that an Event of Default with respect to
the Notes occurs when any of the following occurs: 
 (a) the Issuer defaults in the payment of the principal and premium, if
any, of any of the Notes when it becomes due and payable at Maturity, upon redemption or otherwise; 
 (b) the Issuer
defaults in the payment of interest (including Additional Tax Amounts, if any) on any of the Notes when it becomes due and payable and such default continues for a period of 30 days; 

(c) the Guarantor fails to perform under the Guarantee; 

(d) either the Issuer or the Guarantor fails to perform or observe any other term, covenant or agreement contained in the Notes
or the Indenture and the default continues for a period of 60 days after written notice of such failure, requiring the Issuer or the Guarantor, respectively, to remedy the same, shall have been given to the Issuer or the Guarantor, respectively, by
the Trustee or to the Issuer or the Guarantor, respectively, and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Notes; 

  
 A-1-9 

 (e) except as otherwise permitted by the Indenture, the Guarantee is held in any
final, nonappealable judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full force and effect or the Guarantor, or any person acting on behalf of the Guarantor, shall deny or disaffirm its obligations under the
Guarantee; 
 (f) (i) the Issuer or the Guarantor fails to make by the end of the applicable grace period, if any, any
payment of principal or interest due in respect of any Indebtedness for borrowed money, the aggregate outstanding principal amount of which is an amount in excess of $250,000,000; or (ii) there is an acceleration of any Indebtedness for
borrowed money in an amount in excess of $250,000,000 because of a default with respect to such Indebtedness without such Indebtedness having been discharged or such non-payment or acceleration having been cured, waived, rescinded or annulled, in
the case of either (i) or (ii) above, for a period of 30 days after written notice to the Issuer by the Trustee or to the Issuer and the Trustee by Holders of at least 25% in aggregate principal amount of the Outstanding Notes; or 

(g) the occurrence of events of bankruptcy, insolvency or reorganization of the Issuer or Guarantor as specified in the
Indenture; or 
 (h) failure to comply with the conditions set forth in Section 4.5 of the Indenture. 

If an Event of Default shall occur and be continuing, the principal of all the Notes may be declared due and payable in the manner and with
the effect provided in the Supplemental Indenture. 
  

	14.	Authentication. 

 This Note shall not be valid until the Trustee (or authenticating
agent) executes the certificate of authentication on the other side of this Note. 
  

	15.	CUSIP and ISIN Numbers. 

 The Issuer has caused CUSIP and ISIN numbers to be printed on
this Note and, therefore, the Trustee shall use CUSIP and ISIN numbers in notices of redemption as a convenience to Holders. Any such notice may state that no representation is made as to the correctness of such numbers either as printed on the
Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. 

 

	16.	Governing Law. 

 The Supplemental Indenture, the Base Indenture and this Note shall be
governed by, and construed in accordance with, the law of the State of New York. 

  
 A-1-10 

	17.	Successor Corporation. 

 In the event a successor corporation legal entity assumes all
the obligations of the Issuer or the Guarantor under this Note, pursuant to the terms hereof and of the Indenture, the Issuer or Guarantor, as the case may be, will be released from all such obligations. 

  
 A-1-11 

 ASSIGNMENT FORM 
  

			
		 	To assign this Note, fill in the form below and have your signature guaranteed: (I) or (we) assign and transfer this Note to:
		
		 	  

	(Insert assignee’s soc. sec. or tax I.D. no.)
		
		 	  

		
		 	  

		
		 	  

		
		 	  

	(Print or type assignee’s name, address and zip code)

  

			
	and irrevocably appoint	 	  

	to transfer this Note on the books of the Issuer. The agent may substitute another to act for him.

  

									
	Dated:	 	  
	 		 	Your Name:	 	  

		 		 		 	(Print your name exactly as it appears on the face of this Note)
					
		 		 		 	Your Signature:	 	  

		 		 		 	 (Sign exactly as your name appears on the face of this Note)

				
		 		 		 	Signature Guarantee*:

  

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  
 A-1-12 

 EXHIBIT A-2 

[FORM OF FACE OF NOTE] 
 UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO TEVA PHARMACEUTICAL FINANCE III, B.V. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IN
EXCHANGE FOR THIS NOTE IS REGISTERED IN THE NAME OF CEDE & CO. (“CEDE”) OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE 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, HAS AN INTEREST HEREIN. 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE SUPPLEMENTAL INDENTURE REFERRED TO HEREIN. THIS GLOBAL NOTE MAY NOT BE EXCHANGED, IN WHOLE OR IN
PART, FOR A NOTE REGISTERED IN THE NAME OF ANY PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES SET FORTH IN THE SUPPLEMENTAL INDENTURE AND MAY NOT BE TRANSFERRED, IN WHOLE OR IN PART, EXCEPT
IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE SUPPLEMENTAL INDENTURE. 
  

			
	No.    	  	U.S.$        

 CUSIP No. 88167A AB7 
 ISIN
No. US88167AAB70 
 GLOBAL NOTE 

TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V. 

1.700% Senior Notes due 2019 

Payment of Principal, Interest and Additional Tax Amounts, if any, Unconditionally 

Guaranteed By 
 TEVA
PHARMACEUTICAL INDUSTRIES LIMITED 
 This Global Note is in respect of an issue of 1.700% Senior Notes due 2019 (the
“Notes”) of Teva Pharmaceutical Finance Netherlands III B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under Dutch law (the “Issuer”, which
term includes any successor corporation under the Supplemental Indenture 

  
 A-2-1 

 
and Indenture hereinafter referred to), and issued pursuant to a supplemental indenture and a base indenture, each dated as of July 21, 2016 (respectively, the “Supplemental
Indenture” and the “Base Indenture” and together, the “Indenture”) among the Issuer, Teva Pharmaceutical Industries Limited, as guarantor (the “Guarantor”), and The Bank of New York Mellon,
a New York banking corporation, as trustee (the “Trustee”). Unless the context otherwise requires, the terms used herein shall have the meanings specified in the Supplemental Indenture and the Base Indenture. 

The Issuer, for value received, hereby promises to pay to Cede & Co. or its
registered assigns, the principal amount of                     United States Dollars (U.S.$        ) on July
19, 2019, and to pay interest on such principal amount in U.S. Dollars at the rate of 1.700% per annum, computed on a basis of a 360 day year consisting of twelve 30 day months, from the date hereof until payment of such principal amount has been
made or duly provided for, such interest to be paid semi-annually on January 19 and July 19 of each year, commencing January 19, 2017. The interest so payable on January 19 and July 19 will, subject to certain exceptions
provided in the Supplemental Indenture, be paid to the person in whose name this Note is registered at the close of business on the immediately preceding January 4 and July 4, respectively (whether or not a Business Day). 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 This Note shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by the Trustee. 

  
 A-2-2 

 IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed manually or by facsimile
by its duly authorized officers. 
 Dated: July 21, 2016 
  

					
	TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V.
		
	By	 	  

		 	Name:	 	
		 	Title:	 	
		
	By	 	  

		 	Name:	 	
		 	Title:	 	

  

			
	Trustee’s Certificate of Authentication
	
	This is one of the 1.700% Senior Notes due 2019 described in the within-named Indenture.
	
	THE BANK OF NEW YORK MELLON,
	as Trustee
		
	By:	 	  

		 	Authorized Signatory
	
	Dated: July 21, 2016

  
 A-2-3 

 Teva Pharmaceutical Industries Limited (the “Guarantor”) hereby unconditionally and
irrevocably guarantees to the Holder of this Note (the “Guarantee”) the due and punctual payment of the principal of and interest (including Additional Tax Amounts, if any), on this Note, when and as the same shall become due and payable,
whether at Maturity or upon redemption or upon declaration of acceleration or otherwise, according to the terms of this Note and of the Indenture. The Guarantor agrees that in the case of default by the Issuer in the payment of any such principal or
interest (including Additional Tax Amounts, if any), the Guarantor shall duly and punctually pay the same. The Guarantor hereby agrees that its obligations hereunder shall be absolute and unconditional irrespective of any extension of the time for
payment of this Note, any modification of this Note, any invalidity, irregularity or unenforceability of this Note or the Indenture, any failure to enforce the same or any waiver, modification, consent or indulgence granted to the Issuer with
respect thereto by the Holder of this Note or the Trustee, or any other circumstances which may otherwise constitute a legal or equitable discharge of a surety or guarantor. The Guarantor hereby waives diligence, presentment, demand of payment,
filing of claims with a court in the event of merger or bankruptcy of the Issuer, any right to require a demand or proceeding first against the Issuer, protest or notice with respect to this Note or the indebtedness evidenced hereby and all demands
whatsoever, and covenants that this Guarantee will not be discharged as to this Note except by payment in full of the principal of and interest (including Additional Tax Amounts, if any) on this Note. 

The Guarantor shall be subrogated to all rights of the Holders against the Issuer in respect of any amounts paid by the Guarantor pursuant to
the provisions of the Guarantees or the Indenture; provided, however, that the Guarantor hereby waives any and all rights to which it may be entitled, by operation of law or otherwise, upon making any payment hereunder (i) to be subrogated to the
rights of a Holder against the Issuer with respect to such payment or otherwise to be reimbursed, indemnified or exonerated by the Issuer in respect thereof or (ii) to receive any payment in the nature of contribution or for any other reason, from
any other obligor with respect to such payment, in each case, until the principal of and interest (including Additional Tax Amounts, if any) on this Note shall have been paid in full. 

The Guarantee shall not be valid or become obligatory for any purpose with respect to this Note until the certificate of authentication on
this Note shall have been signed by the Trustee. 
 The Guarantee shall be governed by and construed in accordance with the laws of the
State of New York.

  
 A-2-4 

 IN WITNESS WHEREOF, Teva Pharmaceutical Industries Limited has caused the Guarantee to be signed
manually or by facsimile by its duly authorized officers. 
 Dated: July 21, 2016 

 

					
	TEVA PHARMACEUTICAL INDUSTRIES LIMITED
		
	By	 	  

		 	Name:	 	
		 	Title:	 	
		
	By	 	  

		 	Name:	 	
		 	Title:	 	

  
 A-2-5 

 [REVERSE OF NOTE] 

TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V. 

1.700% Senior Notes due 2019 

Payment of Principal, Interest and Additional Tax Amounts, if any, Unconditionally 

Guaranteed By 
 TEVA
PHARMACEUTICAL INDUSTRIES LIMITED 
 Capitalized terms used herein but not defined shall have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated. 
  

	1.	Principal and Interest. 

 Teva Pharmaceutical Finance Netherlands III B.V., a private
company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under Dutch law (the “Issuer”), promises to pay interest on the principal amount of this Note at 1.700% per annum from July
21, 2016 until the principal thereof is paid or made available for payment. Interest shall be payable semi-annually in arrears on each January 19 and July 19 of each year (each an “Interest Payment Date”), commencing
January 19, 2017. 
 Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. 

A Holder of any Note at the close of business on a Regular Record Date shall be entitled to receive interest on such Note on the corresponding
Interest Payment Date. 
  

	2.	Method of Payment. 

 Interest on any Note which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the person in whose name that Note (or one or more Predecessor Notes) is registered at the close of business on the relevant Regular Record Date for such interest. 

Principal of and interest on Global Notes shall be payable to the Depositary in immediately available funds. 

Principal of Physical Notes will be payable at the office or agency of the Issuer maintained for such purpose, initially the Corporate Trust
Office of the Trustee. Interest on Physical Notes will be payable by (i) U.S. Dollar check drawn on a bank in The City of New York mailed to the address of the Person entitled thereto as such address shall appear in the register of the Notes,
or (ii) upon written application to the Registrar not later than the relevant Record Date by a Holder of an aggregate principal amount of Notes in excess of $5,000,000, wire transfer in immediately available funds, which application and written wire
instructions shall remain in effect until the Holder notifies, in writing, the Registrar to the contrary. 

  
 A-2-6 

	3.	Paying Agent and Registrar. 

 Initially, The Bank of New York Mellon, the Trustee under
the Supplemental Indenture, will act as Paying Agent and Registrar. The Issuer may change the Paying Agent or Registrar without notice to any Holder. 
  

	4.	Supplemental Indenture and Indenture. 

 The Issuer issued this Note under a Supplemental
Indenture and a Base Indenture, each dated as of July 21, 2016 (respectively, the “Supplemental Indenture” and the “Base Indenture” and together, the “Indenture”), among the Issuer, the Guarantor
and The Bank of New York Mellon, as trustee (the “Trustee”). The terms of the Note include those stated in the Indenture, and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended
(“TIA”). This Note is subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms
of this Note and the terms of the Indenture, the terms of the Indenture shall control. 
  

	5.	Optional Redemption. 

 This Note may be redeemed in whole at any time or in part from
time to time, at the option of the Issuer, on any date prior to Maturity, upon notice as set forth in Section 4.2 of the Supplemental Indenture, at a Redemption Price equal to the greater of (1) 100% of the principal amount of the Notes to be
redeemed or (2) the sum of the present values of the Remaining Scheduled Payments discounted, on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), at a rate equal to the sum of the Treasury Rate and 15 basis points,
plus any interest accrued and unpaid to, but excluding, the Redemption Date. 
 On and after the Redemption Date, interest shall cease to
accrue on Notes or portions of Notes called for redemption, unless the Issuer defaults in the payment of the Redemption Price. 
 Notice of
redemption will be given by the Issuer to the Holders as provided in the Supplemental Indenture. 
  

	6.	Tax Redemption. 

 The Notes may be redeemed as a whole but not in part, at the option of
the Issuer at any time prior to Stated Maturity, upon the giving of a notice of tax redemption to the Holders, at a Redemption Price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest, if the Issuer determines that,
as a result of any change in or amendment in the laws of any Taxing Jurisdiction, or any change in official position regarding the application or interpretation of the laws, which change or amendment becomes effective or, in the case of a
change in official position, is announced on or after the issuance of the Notes, the Issuer or the Guarantor (or its successor) will be obligated to pay Additional Tax Amounts with respect to the Notes; provided, however, that the
Issuer, in its business judgment, determines that such obligation cannot be avoided by the Issuer or the Guarantor (or its successor), taking reasonable measures avoidable to it. 

  
 A-2-7 

	7.	Special Mandatory Redemption. 

 In the event that (i) the closing of the Actavis Generics
acquisition does not occur on or prior to October 26, 2016, or (ii) the Master Purchase Agreement is terminated at any time prior thereto, the Issuer will be required to redeem the Securities on the Special Redemption Date at the Special Redemption
Price. 
  

	8.	Denominations; Transfer; Exchange. 

 The Notes are issuable in registered form, without
coupons, in minimum denominations of $2,000 principal amount and integral multiples of $1,000 in excess of $2,000. A Holder may register the transfer or exchange of Notes in accordance with the Indenture. The Issuer or the Trustee may
require a Holder, among other things, to furnish appropriate endorsements and transfer documents, and the Issuer may require a Holder to pay any taxes or other governmental charges that may be imposed in connection with any exchange or registration
of transfer of Notes. 
 The Issuer shall not be required to exchange or register a transfer of (a) any Note for a period of 15 days next
preceding the first mailing of notice of redemption of Notes to be redeemed, (b) any Notes selected, called or being called for redemption except, in the case of any Note where notice has been given that such Note is to be redeemed in part, the
portion thereof not so to be redeemed or (c) any Notes between a record date and the next succeeding payment date. 
 In the event of
redemption of the Notes in part only, a new Note or Notes for the unredeemed portion thereof will be issued in the name of the Holder hereof. 
  

	9.	Holders to be Treated as Owners. 

 The registered Holder of this Note shall be treated as
its owner for all purposes. 
  

	10.	Unclaimed Money. 

 Any moneys deposited with or paid to the Trustee or any Paying Agent
for the payment of the principal of or interest on any Note and not applied but remaining unclaimed for two years after the date upon which such principal or interest shall have become due and payable, shall, upon the written request of the Issuer
and unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be repaid to the Issuer by the Trustee or such Paying Agent, and the Holder of the Note shall, unless otherwise required by mandatory
provisions of applicable escheat or abandoned or unclaimed property laws, thereafter look only to the Issuer for any payment which such Holder may be entitled to collect, and all liability of the Trustee or any Paying Agent with respect to such
moneys shall thereupon cease. 
  

	11.	Satisfaction and Discharge. 

 The Issuer and the Guarantor may satisfy and discharge
their obligations under the Indenture while the Notes remain outstanding, if (a) all Outstanding Notes have become due 

  
 A-2-8 

 
and payable at their scheduled Maturity, or (b) all Outstanding Notes have been called for redemption, and in either case, the Issuer has deposited with the Trustee an amount sufficient to pay
and discharge all Outstanding Notes on the date of their scheduled Maturity or the scheduled Redemption Date. 
  

	12.	Supplement; Waiver. 

 The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Outstanding Notes (or such lesser amount as shall have acted at a meeting pursuant to the provisions of the Indenture). The Indenture also contains provisions permitting the Holders of specified percentages in
principal amount of the Notes at the time Outstanding, on behalf of the Holders of all the Notes, to waive compliance by the Issuer 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 Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon 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 Note or such other Note. 
 No reference herein to the
Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, places and rate, and in the coin or
currency, herein prescribed. 
  

	13.	Defaults and Remedies. 

 The Indenture provides that an Event of Default with respect to
the Notes occurs when any of the following occurs: 
 (a) the Issuer defaults in the payment of the principal and premium, if
any, of any of the Notes when it becomes due and payable at Maturity, upon redemption or otherwise; 
 (b) the Issuer
defaults in the payment of interest (including Additional Tax Amounts, if any) on any of the Notes when it becomes due and payable and such default continues for a period of 30 days; 

(c) the Guarantor fails to perform under the Guarantee; 

(d) either the Issuer or the Guarantor fails to perform or observe any other term, covenant or agreement contained in the Notes
or the Indenture and the default continues for a period of 60 days after written notice of such failure, requiring the Issuer or the Guarantor, respectively, to remedy the same, shall have been given to the Issuer or the Guarantor, respectively, by
the Trustee or to the Issuer or the Guarantor, respectively, and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Notes; 

  
 A-2-9 

 (e) except as otherwise permitted by the Indenture, the Guarantee is held in any
final, nonappealable judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full force and effect or the Guarantor, or any person acting on behalf of the Guarantor, shall deny or disaffirm its obligations under the
Guarantee; 
 (f) (i) the Issuer or the Guarantor fails to make by the end of the applicable grace period, if any, any
payment of principal or interest due in respect of any Indebtedness for borrowed money, the aggregate outstanding principal amount of which is an amount in excess of $250,000,000; or (ii) there is an acceleration of any Indebtedness for
borrowed money in an amount in excess of $250,000,000 because of a default with respect to such Indebtedness without such Indebtedness having been discharged or such non-payment or acceleration having been cured, waived, rescinded or annulled, in
the case of either (i) or (ii) above, for a period of 30 days after written notice to the Issuer by the Trustee or to the Issuer and the Trustee by Holders of at least 25% in aggregate principal amount of the Outstanding Notes; or 

(g) the occurrence of events of bankruptcy, insolvency or reorganization of the Issuer or Guarantor as specified in the
Indenture; or 
 (h) failure to comply with the conditions set forth in Section 4.5 of the Indenture. 

If an Event of Default shall occur and be continuing, the principal of all the Notes may be declared due and payable in the manner and with
the effect provided in the Supplemental Indenture. 
  

	14.	Authentication. 

 This Note shall not be valid until the Trustee (or authenticating
agent) executes the certificate of authentication on the other side of this Note. 
  

	15.	CUSIP and ISIN Numbers. 

 The Issuer has caused CUSIP and ISIN numbers to be printed on
this Note and, therefore, the Trustee shall use CUSIP and ISIN numbers in notices of redemption as a convenience to Holders. Any such notice may state that no representation is made as to the correctness of such numbers either as printed on the
Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. 

 

	16.	Governing Law. 

 The Supplemental Indenture, the Base Indenture and this Note shall be
governed by, and construed in accordance with, the law of the State of New York. 

  
 A-2-10 

	17.	Successor Corporation. 

 In the event a successor corporation legal entity assumes all
the obligations of the Issuer or the Guarantor under this Note, pursuant to the terms hereof and of the Indenture, the Issuer or Guarantor, as the case may be, will be released from all such obligations. 

  
 A-2-11 

 ASSIGNMENT FORM 
  

			
		 	To assign this Note, fill in the form below and have your signature guaranteed: (I) or (we) assign and transfer this Note to:
		
		 	  

	(Insert assignee’s soc. sec. or tax I.D. no.)
		
		 	  

		
		 	  

		
		 	  

		
		 	  

	(Print or type assignee’s name, address and zip code)

  

			
	and irrevocably appoint	 	  

	to transfer this Note on the books of the Issuer. The agent may substitute another to act for him.

  

									
	Dated:	 	  
	 		 	Your Name:	 	  

		 		 		 	(Print your name exactly as it appears on the face of this Note)
					
		 		 		 	Your Signature:	 	  

		 		 		 	(Sign exactly as your name appears on the face of this Note)
				
		 		 		 	Signature Guarantee*:

  

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  
 A-2-12 

 EXHIBIT A-3 

[FORM OF FACE OF NOTE] 
 UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO TEVA PHARMACEUTICAL FINANCE III, B.V. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IN
EXCHANGE FOR THIS NOTE IS REGISTERED IN THE NAME OF CEDE & CO. (“CEDE”) OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE 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, HAS AN INTEREST HEREIN. 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE SUPPLEMENTAL INDENTURE REFERRED TO HEREIN. THIS GLOBAL NOTE MAY NOT BE EXCHANGED, IN WHOLE OR IN
PART, FOR A NOTE REGISTERED IN THE NAME OF ANY PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES SET FORTH IN THE SUPPLEMENTAL INDENTURE AND MAY NOT BE TRANSFERRED, IN WHOLE OR IN PART, EXCEPT
IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE SUPPLEMENTAL INDENTURE. 
  

			
	No.     	  	U.S.$         

 CUSIP No. 88167A AC5 
 ISIN
No. US88167AAC53 
 GLOBAL NOTE 

TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V. 

2.200% Senior Notes due 2021 

Payment of Principal, Interest and Additional Tax Amounts, if any, Unconditionally 

Guaranteed By 
 TEVA
PHARMACEUTICAL INDUSTRIES LIMITED 
 This Global Note is in respect of an issue of 2.200% Senior Notes due 2021 (the
“Notes”) of Teva Pharmaceutical Finance Netherlands III B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under Dutch law (the “Issuer”, which
term includes any successor corporation under the Supplemental Indenture 

  
 A-3-1 

 
and Indenture hereinafter referred to), and issued pursuant to a supplemental indenture and a base indenture, each dated as of July 21, 2016 (respectively, the “Supplemental
Indenture” and the “Base Indenture” and together, the “Indenture”) among the Issuer, Teva Pharmaceutical Industries Limited, as guarantor (the “Guarantor”), and The Bank of New York Mellon,
a New York banking corporation, as trustee (the “Trustee”). Unless the context otherwise requires, the terms used herein shall have the meanings specified in the Supplemental Indenture and the Base Indenture. 

The Issuer, for value received, hereby promises to pay to Cede & Co. or its
registered assigns, the principal amount of                      United States Dollars (U.S.$        ) on
July 21, 2021, and to pay interest on such principal amount in U.S. Dollars at the rate of 2.200% per annum, computed on a basis of a 360 day year consisting of twelve 30 day months, from the date hereof until payment of such principal amount has
been made or duly provided for, such interest to be paid semi-annually on January 21 and July 21 of each year, commencing January 21, 2017. The interest so payable on January 21 and July 21 will, subject to certain
exceptions provided in the Supplemental Indenture, be paid to the person in whose name this Note is registered at the close of business on the immediately preceding January 6 and July 6, respectively (whether or not a Business Day). 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 This Note shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by the Trustee. 

  
 A-3-2 

 IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed manually or by facsimile
by its duly authorized officers. 
 Dated: July 21, 2016 
  

					
	TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V.
		
	By	 	  

		 	Name:	 	
		 	Title:	 	
		
	By	 	  

		 	Name:	 	
		 	Title:	 	

  

			
	Trustee’s Certificate of Authentication
	
	This is one of the 2.200% Senior Notes due 2021 described in the within-named Indenture.
	
	 THE BANK OF NEW YORK MELLON,

as Trustee

		
	By:	 	  

		 	Authorized Signatory

 Dated: July 21, 2016 

  
 A-3-3 

 Teva Pharmaceutical Industries Limited (the “Guarantor”) hereby unconditionally and
irrevocably guarantees to the Holder of this Note (the “Guarantee”) the due and punctual payment of the principal of and interest (including Additional Tax Amounts, if any), on this Note, when and as the same shall become due and payable,
whether at Maturity or upon redemption or upon declaration of acceleration or otherwise, according to the terms of this Note and of the Indenture. The Guarantor agrees that in the case of default by the Issuer in the payment of any such principal or
interest (including Additional Tax Amounts, if any), the Guarantor shall duly and punctually pay the same. The Guarantor hereby agrees that its obligations hereunder shall be absolute and unconditional irrespective of any extension of the time for
payment of this Note, any modification of this Note, any invalidity, irregularity or unenforceability of this Note or the Indenture, any failure to enforce the same or any waiver, modification, consent or indulgence granted to the Issuer with
respect thereto by the Holder of this Note or the Trustee, or any other circumstances which may otherwise constitute a legal or equitable discharge of a surety or guarantor. The Guarantor hereby waives diligence, presentment, demand of payment,
filing of claims with a court in the event of merger or bankruptcy of the Issuer, any right to require a demand or proceeding first against the Issuer, protest or notice with respect to this Note or the indebtedness evidenced hereby and all demands
whatsoever, and covenants that this Guarantee will not be discharged as to this Note except by payment in full of the principal of and interest (including Additional Tax Amounts, if any) on this Note. 

The Guarantor shall be subrogated to all rights of the Holders against the Issuer in respect of any amounts paid by the Guarantor pursuant to
the provisions of the Guarantees or the Indenture; provided, however, that the Guarantor hereby waives any and all rights to which it may be entitled, by operation of law or otherwise, upon making any payment hereunder (i) to be subrogated to the
rights of a Holder against the Issuer with respect to such payment or otherwise to be reimbursed, indemnified or exonerated by the Issuer in respect thereof or (ii) to receive any payment in the nature of contribution or for any other reason, from
any other obligor with respect to such payment, in each case, until the principal of and interest (including Additional Tax Amounts, if any) on this Note shall have been paid in full. 

The Guarantee shall not be valid or become obligatory for any purpose with respect to this Note until the certificate of authentication on
this Note shall have been signed by the Trustee. 
 The Guarantee shall be governed by and construed in accordance with the laws of the
State of New York.

  
 A-3-4 

 IN WITNESS WHEREOF, Teva Pharmaceutical Industries Limited has caused the Guarantee to be signed
manually or by facsimile by its duly authorized officers. 
 Dated: July 21, 2016 

 

			
	TEVA PHARMACEUTICAL INDUSTRIES LIMITED
		
	By	 	  

		 	Name:
		 	Title:
		
	By	 	  

		 	Name:
		 	Title:

  
 A-3-5 

 [REVERSE OF NOTE] 

TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V. 

2.200% Senior Notes due 2021 

Payment of Principal, Interest and Additional Tax Amounts, if any, Unconditionally 

Guaranteed By 
 TEVA
PHARMACEUTICAL INDUSTRIES LIMITED 
 Capitalized terms used herein but not defined shall have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated. 
  

	1.	Principal and Interest. 

 Teva Pharmaceutical Finance Netherlands III B.V., a private
company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under Dutch law (the “Issuer”), promises to pay interest on the principal amount of this Note at 2.200% per annum from July
21, 2016 until the principal thereof is paid or made available for payment. Interest shall be payable semi-annually in arrears on each January 21 and July 21 of each year (each an “Interest Payment Date”), commencing
January 21, 2017. 
 Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. 

A Holder of any Note at the close of business on a Regular Record Date shall be entitled to receive interest on such Note on the corresponding
Interest Payment Date. 
  

	2.	Method of Payment. 

 Interest on any Note which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the person in whose name that Note (or one or more Predecessor Notes) is registered at the close of business on the relevant Regular Record Date for such interest. 

Principal of and interest on Global Notes shall be payable to the Depositary in immediately available funds. 

Principal of Physical Notes will be payable at the office or agency of the Issuer maintained for such purpose, initially the Corporate Trust
Office of the Trustee. Interest on Physical Notes will be payable by (i) U.S. Dollar check drawn on a bank in The City of New York mailed to the address of the Person entitled thereto as such address shall appear in the register of the Notes,
or (ii) upon written application to the Registrar not later than the relevant Record Date by a Holder of an aggregate principal amount of Notes in excess of $5,000,000, wire transfer in immediately available funds, which application and written wire
instructions shall remain in effect until the Holder notifies, in writing, the Registrar to the contrary. 

  
 A-3-6 

	3.	Paying Agent and Registrar. 

 Initially, The Bank of New York Mellon, the Trustee under
the Supplemental Indenture, will act as Paying Agent and Registrar. The Issuer may change the Paying Agent or Registrar without notice to any Holder. 
  

	4.	Supplemental Indenture and Indenture. 

 The Issuer issued this Note under a Supplemental
Indenture and a Base Indenture, each dated as of July 21, 2016 (respectively, the “Supplemental Indenture” and the “Base Indenture” and together, the “Indenture”), among the Issuer, the Guarantor
and The Bank of New York Mellon, as trustee (the “Trustee”). The terms of the Note include those stated in the Indenture, and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended
(“TIA”). This Note is subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms
of this Note and the terms of the Indenture, the terms of the Indenture shall control. 
  

	5.	Optional Redemption. 

 This Note may be redeemed in whole at any time or in part from
time to time, at the option of the Issuer, on any date prior to Maturity, upon notice as set forth in Section 4.2 of the Supplemental Indenture, at a Redemption Price equal to the greater of (1) 100% of the principal amount of the Notes to be
redeemed or (2) the sum of the present values of the Remaining Scheduled Payments discounted, on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), at a rate equal to the sum of the Treasury Rate and 20 basis points,
plus any interest accrued and unpaid to, but excluding, the Redemption Date. 
 On and after the Redemption Date, interest shall cease to
accrue on Notes or portions of Notes called for redemption, unless the Issuer defaults in the payment of the Redemption Price. 
 Notice of
redemption will be given by the Issuer to the Holders as provided in the Supplemental Indenture. 
  

	6.	Tax Redemption. 

 The Notes may be redeemed as a whole but not in part, at the option of
the Issuer at any time prior to Stated Maturity, upon the giving of a notice of tax redemption to the Holders, at a Redemption Price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest, if the Issuer determines that,
as a result of any change in or amendment in the laws of any Taxing Jurisdiction, or any change in official position regarding the application or interpretation of the laws, which change or amendment becomes effective or, in the case of a
change in official position, is announced on or after the issuance of the Notes, the Issuer or the Guarantor (or its successor) will be obligated to pay Additional Tax Amounts with respect to the Notes; provided, however, that the
Issuer, in its business judgment, determines that such obligation cannot be avoided by the Issuer or the Guarantor (or its successor), taking reasonable measures avoidable to it. 

  
 A-3-7 

	7.	Special Mandatory Redemption. 

 In the event that (i) the closing of the Actavis Generics
acquisition does not occur on or prior to October 26, 2016, or (ii) the Master Purchase Agreement is terminated at any time prior thereto, the Issuer will be required to redeem the Securities on the Special Redemption Date at the Special Redemption
Price. 
  

	8.	Denominations; Transfer; Exchange. 

 The Notes are issuable in registered form, without
coupons, in minimum denominations of $2,000 principal amount and integral multiples of $1,000 in excess of $2,000. A Holder may register the transfer or exchange of Notes in accordance with the Indenture. The Issuer or the Trustee may
require a Holder, among other things, to furnish appropriate endorsements and transfer documents, and the Issuer may require a Holder to pay any taxes or other governmental charges that may be imposed in connection with any exchange or registration
of transfer of Notes. 
 The Issuer shall not be required to exchange or register a transfer of (a) any Note for a period of 15 days next
preceding the first mailing of notice of redemption of Notes to be redeemed, (b) any Notes selected, called or being called for redemption except, in the case of any Note where notice has been given that such Note is to be redeemed in part, the
portion thereof not so to be redeemed or (c) any Notes between a record date and the next succeeding payment date. 
 In the event of
redemption of the Notes in part only, a new Note or Notes for the unredeemed portion thereof will be issued in the name of the Holder hereof. 
  

	9.	Holders to be Treated as Owners. 

 The registered Holder of this Note shall be treated as
its owner for all purposes. 
  

	10.	Unclaimed Money. 

 Any moneys deposited with or paid to the Trustee or any Paying Agent
for the payment of the principal of or interest on any Note and not applied but remaining unclaimed for two years after the date upon which such principal or interest shall have become due and payable, shall, upon the written request of the Issuer
and unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be repaid to the Issuer by the Trustee or such Paying Agent, and the Holder of the Note shall, unless otherwise required by mandatory
provisions of applicable escheat or abandoned or unclaimed property laws, thereafter look only to the Issuer for any payment which such Holder may be entitled to collect, and all liability of the Trustee or any Paying Agent with respect to such
moneys shall thereupon cease. 
  

	11.	Satisfaction and Discharge. 

 The Issuer and the Guarantor may satisfy and discharge
their obligations under the Indenture while the Notes remain outstanding, if (a) all Outstanding Notes have become due 

  
 A-3-8 

 
and payable at their scheduled Maturity, or (b) all Outstanding Notes have been called for redemption, and in either case, the Issuer has deposited with the Trustee an amount sufficient to pay
and discharge all Outstanding Notes on the date of their scheduled Maturity or the scheduled Redemption Date. 
  

	12.	Supplement; Waiver. 

 The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Outstanding Notes (or such lesser amount as shall have acted at a meeting pursuant to the provisions of the Indenture). The Indenture also contains provisions permitting the Holders of specified percentages in
principal amount of the Notes at the time Outstanding, on behalf of the Holders of all the Notes, to waive compliance by the Issuer 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 Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon 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 Note or such other Note. 
 No reference herein to the
Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, places and rate, and in the coin or
currency, herein prescribed. 
  

	13.	Defaults and Remedies. 

 The Indenture provides that an Event of Default with respect to
the Notes occurs when any of the following occurs: 
 (a) the Issuer defaults in the payment of the principal and premium, if
any, of any of the Notes when it becomes due and payable at Maturity, upon redemption or otherwise; 
 (b) the Issuer
defaults in the payment of interest (including Additional Tax Amounts, if any) on any of the Notes when it becomes due and payable and such default continues for a period of 30 days; 

(c) the Guarantor fails to perform under the Guarantee; 

(d) either the Issuer or the Guarantor fails to perform or observe any other term, covenant or agreement contained in the Notes
or the Indenture and the default continues for a period of 60 days after written notice of such failure, requiring the Issuer or the Guarantor, respectively, to remedy the same, shall have been given to the Issuer or the Guarantor, respectively, by
the Trustee or to the Issuer or the Guarantor, respectively, and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Notes; 

  
 A-3-9 

 (e) except as otherwise permitted by the Indenture, the Guarantee is held in any
final, nonappealable judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full force and effect or the Guarantor, or any person acting on behalf of the Guarantor, shall deny or disaffirm its obligations under the
Guarantee; 
 (f) (i) the Issuer or the Guarantor fails to make by the end of the applicable grace period, if any, any
payment of principal or interest due in respect of any Indebtedness for borrowed money, the aggregate outstanding principal amount of which is an amount in excess of $250,000,000; or (ii) there is an acceleration of any Indebtedness for
borrowed money in an amount in excess of $250,000,000 because of a default with respect to such Indebtedness without such Indebtedness having been discharged or such non-payment or acceleration having been cured, waived, rescinded or annulled, in
the case of either (i) or (ii) above, for a period of 30 days after written notice to the Issuer by the Trustee or to the Issuer and the Trustee by Holders of at least 25% in aggregate principal amount of the Outstanding Notes; or 

(g) the occurrence of events of bankruptcy, insolvency or reorganization of the Issuer or Guarantor as specified in the
Indenture; or 
 (h) failure to comply with the conditions set forth in Section 4.5 of the Indenture. 

If an Event of Default shall occur and be continuing, the principal of all the Notes may be declared due and payable in the manner and with
the effect provided in the Supplemental Indenture. 
  

	14.	Authentication. 

 This Note shall not be valid until the Trustee (or authenticating
agent) executes the certificate of authentication on the other side of this Note. 
  

	15.	CUSIP and ISIN Numbers. 

 The Issuer has caused CUSIP and ISIN numbers to be printed on
this Note and, therefore, the Trustee shall use CUSIP and ISIN numbers in notices of redemption as a convenience to Holders. Any such notice may state that no representation is made as to the correctness of such numbers either as printed on the
Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. 

 

	16.	Governing Law. 

 The Supplemental Indenture, the Base Indenture and this Note shall be
governed by, and construed in accordance with, the law of the State of New York. 

  
 A-3-10 

	17.	Successor Corporation. 

 In the event a successor corporation legal entity assumes all
the obligations of the Issuer or the Guarantor under this Note, pursuant to the terms hereof and of the Indenture, the Issuer or Guarantor, as the case may be, will be released from all such obligations. 

  
 A-3-11 

 ASSIGNMENT FORM 
  

			
		 	To assign this Note, fill in the form below and have your signature guaranteed: (I) or (we) assign and transfer this Note to:
		
		 	  

	(Insert assignee’s soc. sec. or tax I.D. no.)
		
		 	  

		
		 	  

		
		 	  

		
		 	  

	(Print or type assignee’s name, address and zip code)

  

			
	and irrevocably appoint	 	  

	to transfer this Note on the books of the Issuer. The agent may substitute another to act for him.

  

									
	Dated:	 	  
	 		 	Your Name:	 	  

		 		 		 	(Print your name exactly as it appears on the face of this Note)
					
		 		 		 	Your Signature:	 	  

		 		 		 	(Sign exactly as your name appears on the face of this Note)
				
		 		 		 	Signature Guarantee*:

  

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  
 A-3-12 

 EXHIBIT A-4 

[FORM OF FACE OF NOTE] 
 UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO TEVA PHARMACEUTICAL FINANCE III, B.V. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IN
EXCHANGE FOR THIS NOTE IS REGISTERED IN THE NAME OF CEDE & CO. (“CEDE”) OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE 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, HAS AN INTEREST HEREIN. 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE SUPPLEMENTAL INDENTURE REFERRED TO HEREIN. THIS GLOBAL NOTE MAY NOT BE EXCHANGED, IN WHOLE OR IN
PART, FOR A NOTE REGISTERED IN THE NAME OF ANY PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES SET FORTH IN THE SUPPLEMENTAL INDENTURE AND MAY NOT BE TRANSFERRED, IN WHOLE OR IN PART, EXCEPT
IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE SUPPLEMENTAL INDENTURE. 
  

			
	No.     	  	U.S.$         

 CUSIP No. 88167A AD3 
 ISIN
No. US88167AAD37 
 GLOBAL NOTE 

TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V. 

2.800% Senior Notes due 2023 

Payment of Principal, Interest and Additional Tax Amounts, if any, Unconditionally 

Guaranteed By 
 TEVA
PHARMACEUTICAL INDUSTRIES LIMITED 
 This Global Note is in respect of an issue of 2.800% Senior Notes due 2023 (the
“Notes”) of Teva Pharmaceutical Finance Netherlands III B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under Dutch law (the “Issuer”, which
term includes any successor corporation under the Supplemental Indenture 

  
 A-4-1 

 
and Indenture hereinafter referred to), and issued pursuant to a supplemental indenture and a base indenture, each dated as of July 21, 2016 (respectively, the “Supplemental
Indenture” and the “Base Indenture” and together, the “Indenture”) among the Issuer, Teva Pharmaceutical Industries Limited, as guarantor (the “Guarantor”), and The Bank of New York Mellon,
a New York banking corporation, as trustee (the “Trustee”). Unless the context otherwise requires, the terms used herein shall have the meanings specified in the Supplemental Indenture and the Base Indenture. 

The Issuer, for value received, hereby promises to pay to Cede & Co. or its
registered assigns, the principal amount of                      United States Dollars (U.S.$        ) on
July 21, 2023, and to pay interest on such principal amount in U.S. Dollars at the rate of 2.800% per annum, computed on a basis of a 360 day year consisting of twelve 30 day months, from the date hereof until payment of such principal amount has
been made or duly provided for, such interest to be paid semi-annually on January 21 and July 21 of each year, commencing January 21, 2017. The interest so payable on January 21 and July 21 will, subject to certain
exceptions provided in the Supplemental Indenture, be paid to the person in whose name this Note is registered at the close of business on the immediately preceding January 6 and July 6, respectively (whether or not a Business Day). 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 This Note shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by the Trustee. 

  
 A-4-2 

 IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed manually or by facsimile
by its duly authorized officers. 
 Dated: July 21, 2016 
  

			
	TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V.
		
	By	 	  

		 	Name:
		 	Title:
		
	By	 	  

		 	Name:
		 	Title:

  

			
	Trustee’s Certificate of Authentication
	
	This is one of the 2.800% Senior Notes due 2023 described in the within-named Indenture.
	
	THE BANK OF NEW YORK MELLON,
	as Trustee
		
	By:	 	  

		 	Authorized Signatory
		
	Dated:	 	July 21, 2016

  
 A-4-3 

 Teva Pharmaceutical Industries Limited (the “Guarantor”) hereby unconditionally and
irrevocably guarantees to the Holder of this Note (the “Guarantee”) the due and punctual payment of the principal of and interest (including Additional Tax Amounts, if any), on this Note, when and as the same shall become due and payable,
whether at Maturity or upon redemption or upon declaration of acceleration or otherwise, according to the terms of this Note and of the Indenture. The Guarantor agrees that in the case of default by the Issuer in the payment of any such principal or
interest (including Additional Tax Amounts, if any), the Guarantor shall duly and punctually pay the same. The Guarantor hereby agrees that its obligations hereunder shall be absolute and unconditional irrespective of any extension of the time for
payment of this Note, any modification of this Note, any invalidity, irregularity or unenforceability of this Note or the Indenture, any failure to enforce the same or any waiver, modification, consent or indulgence granted to the Issuer with
respect thereto by the Holder of this Note or the Trustee, or any other circumstances which may otherwise constitute a legal or equitable discharge of a surety or guarantor. The Guarantor hereby waives diligence, presentment, demand of payment,
filing of claims with a court in the event of merger or bankruptcy of the Issuer, any right to require a demand or proceeding first against the Issuer, protest or notice with respect to this Note or the indebtedness evidenced hereby and all demands
whatsoever, and covenants that this Guarantee will not be discharged as to this Note except by payment in full of the principal of and interest (including Additional Tax Amounts, if any) on this Note. 

The Guarantor shall be subrogated to all rights of the Holders against the Issuer in respect of any amounts paid by the Guarantor pursuant to
the provisions of the Guarantees or the Indenture; provided, however, that the Guarantor hereby waives any and all rights to which it may be entitled, by operation of law or otherwise, upon making any payment hereunder (i) to be subrogated to the
rights of a Holder against the Issuer with respect to such payment or otherwise to be reimbursed, indemnified or exonerated by the Issuer in respect thereof or (ii) to receive any payment in the nature of contribution or for any other reason, from
any other obligor with respect to such payment, in each case, until the principal of and interest (including Additional Tax Amounts, if any) on this Note shall have been paid in full. 

The Guarantee shall not be valid or become obligatory for any purpose with respect to this Note until the certificate of authentication on
this Note shall have been signed by the Trustee. 
 The Guarantee shall be governed by and construed in accordance with the laws of the
State of New York.

  
 A-4-4 

 IN WITNESS WHEREOF, Teva Pharmaceutical Industries Limited has caused the Guarantee to be signed
manually or by facsimile by its duly authorized officers. 
 Dated: July 21, 2016 

 

			
	TEVA PHARMACEUTICAL INDUSTRIES LIMITED
		
	By	 	  

		 	Name:
		 	Title:
		
	By	 	  

		 	Name:
		 	Title:

  
 A-4-5 

 [REVERSE OF NOTE] 

TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V. 

2.800% Senior Notes due 2023 

Payment of Principal, Interest and Additional Tax Amounts, if any, Unconditionally 

Guaranteed By 
 TEVA
PHARMACEUTICAL INDUSTRIES LIMITED 
 Capitalized terms used herein but not defined shall have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated. 
  

	1.	Principal and Interest. 

 Teva Pharmaceutical Finance Netherlands III B.V., a private
company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under Dutch law (the “Issuer”), promises to pay interest on the principal amount of this Note at 2.800% per annum from July
21, 2016 until the principal thereof is paid or made available for payment. Interest shall be payable semi-annually in arrears on each January 21 and July 21 of each year (each an “Interest Payment Date”), commencing
January 21, 2017. 
 Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. 

A Holder of any Note at the close of business on a Regular Record Date shall be entitled to receive interest on such Note on the corresponding
Interest Payment Date. 
  

	2.	Method of Payment. 

 Interest on any Note which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the person in whose name that Note (or one or more Predecessor Notes) is registered at the close of business on the relevant Regular Record Date for such interest. 

Principal of and interest on Global Notes shall be payable to the Depositary in immediately available funds. 

Principal of Physical Notes will be payable at the office or agency of the Issuer maintained for such purpose, initially the Corporate Trust
Office of the Trustee. Interest on Physical Notes will be payable by (i) U.S. Dollar check drawn on a bank in The City of New York mailed to the address of the Person entitled thereto as such address shall appear in the register of the Notes,
or (ii) upon written application to the Registrar not later than the relevant Record Date by a Holder of an aggregate principal amount of Notes in excess of $5,000,000, wire transfer in immediately available funds, which application and written wire
instructions shall remain in effect until the Holder notifies, in writing, the Registrar to the contrary. 

  
 A-4-6 

	3.	Paying Agent and Registrar. 

 Initially, The Bank of New York Mellon, the Trustee under
the Supplemental Indenture, will act as Paying Agent and Registrar. The Issuer may change the Paying Agent or Registrar without notice to any Holder. 
  

	4.	Supplemental Indenture and Indenture. 

 The Issuer issued this Note under a Supplemental
Indenture and a Base Indenture, each dated as of July 21, 2016 (respectively, the “Supplemental Indenture” and the “Base Indenture” and together, the “Indenture”), among the Issuer, the Guarantor
and The Bank of New York Mellon, as trustee (the “Trustee”). The terms of the Note include those stated in the Indenture, and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended
(“TIA”). This Note is subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms
of this Note and the terms of the Indenture, the terms of the Indenture shall control. 
  

	5.	Optional Redemption. 

 This Note may be redeemed in whole at any time or in part from
time to time, at the option of the Issuer, on any date prior to Maturity, upon notice as set forth in Section 4.2 of the Supplemental Indenture, at a Redemption Price equal to the greater of (1) 100% of the principal amount of the Notes to be
redeemed or (2) the sum of the present values of the Remaining Scheduled Payments discounted, on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), at a rate equal to the sum of the Treasury Rate and 25 basis points,
plus any interest accrued and unpaid to, but excluding, the Redemption Date. 
 On and after the Redemption Date, interest shall cease to
accrue on Notes or portions of Notes called for redemption, unless the Issuer defaults in the payment of the Redemption Price. 
 Notice of
redemption will be given by the Issuer to the Holders as provided in the Supplemental Indenture. 
  

	6.	Tax Redemption. 

 The Notes may be redeemed as a whole but not in part, at the option of
the Issuer at any time prior to Stated Maturity, upon the giving of a notice of tax redemption to the Holders, at a Redemption Price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest, if the Issuer determines that,
as a result of any change in or amendment in the laws of any Taxing Jurisdiction, or any change in official position regarding the application or interpretation of the laws, which change or amendment becomes effective or, in the case of a
change in official position, is announced on or after the issuance of the Notes, the Issuer or the Guarantor (or its successor) will be obligated to pay Additional Tax Amounts with respect to the Notes; provided, however, that the
Issuer, in its business judgment, determines that such obligation cannot be avoided by the Issuer or the Guarantor (or its successor), taking reasonable measures avoidable to it. 

  
 A-4-7 

	7.	Special Mandatory Redemption. 

 In the event that (i) the closing of the Actavis Generics
acquisition does not occur on or prior to October 26, 2016, or (ii) the Master Purchase Agreement is terminated at any time prior thereto, the Issuer will be required to redeem the Securities on the Special Redemption Date at the Special Redemption
Price. 
  

	8.	Denominations; Transfer; Exchange. 

 The Notes are issuable in registered form, without
coupons, in minimum denominations of $2,000 principal amount and integral multiples of $1,000 in excess of $2,000. A Holder may register the transfer or exchange of Notes in accordance with the Indenture. The Issuer or the Trustee may
require a Holder, among other things, to furnish appropriate endorsements and transfer documents, and the Issuer may require a Holder to pay any taxes or other governmental charges that may be imposed in connection with any exchange or registration
of transfer of Notes. 
 The Issuer shall not be required to exchange or register a transfer of (a) any Note for a period of 15 days next
preceding the first mailing of notice of redemption of Notes to be redeemed, (b) any Notes selected, called or being called for redemption except, in the case of any Note where notice has been given that such Note is to be redeemed in part, the
portion thereof not so to be redeemed or (c) any Notes between a record date and the next succeeding payment date. 
 In the event of
redemption of the Notes in part only, a new Note or Notes for the unredeemed portion thereof will be issued in the name of the Holder hereof. 
  

	9.	Holders to be Treated as Owners. 

 The registered Holder of this Note shall be treated as
its owner for all purposes. 
  

	10.	Unclaimed Money. 

 Any moneys deposited with or paid to the Trustee or any Paying Agent
for the payment of the principal of or interest on any Note and not applied but remaining unclaimed for two years after the date upon which such principal or interest shall have become due and payable, shall, upon the written request of the Issuer
and unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be repaid to the Issuer by the Trustee or such Paying Agent, and the Holder of the Note shall, unless otherwise required by mandatory
provisions of applicable escheat or abandoned or unclaimed property laws, thereafter look only to the Issuer for any payment which such Holder may be entitled to collect, and all liability of the Trustee or any Paying Agent with respect to such
moneys shall thereupon cease. 
  

	11.	Satisfaction and Discharge. 

 The Issuer and the Guarantor may satisfy and discharge
their obligations under the Indenture while the Notes remain outstanding, if (a) all Outstanding Notes have become due 

  
 A-4-8 

 
and payable at their scheduled Maturity, or (b) all Outstanding Notes have been called for redemption, and in either case, the Issuer has deposited with the Trustee an amount sufficient to pay
and discharge all Outstanding Notes on the date of their scheduled Maturity or the scheduled Redemption Date. 
  

	12.	Supplement; Waiver. 

 The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Outstanding Notes (or such lesser amount as shall have acted at a meeting pursuant to the provisions of the Indenture). The Indenture also contains provisions permitting the Holders of specified percentages in
principal amount of the Notes at the time Outstanding, on behalf of the Holders of all the Notes, to waive compliance by the Issuer 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 Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon 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 Note or such other Note. 
 No reference herein to the
Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, places and rate, and in the coin or
currency, herein prescribed. 
  

	13.	Defaults and Remedies. 

 The Indenture provides that an Event of Default with respect to
the Notes occurs when any of the following occurs: 
 (a) the Issuer defaults in the payment of the principal and premium, if
any, of any of the Notes when it becomes due and payable at Maturity, upon redemption or otherwise; 
 (b) the Issuer
defaults in the payment of interest (including Additional Tax Amounts, if any) on any of the Notes when it becomes due and payable and such default continues for a period of 30 days; 

(c) the Guarantor fails to perform under the Guarantee; 

(d) either the Issuer or the Guarantor fails to perform or observe any other term, covenant or agreement contained in the Notes
or the Indenture and the default continues for a period of 60 days after written notice of such failure, requiring the Issuer or the Guarantor, respectively, to remedy the same, shall have been given to the Issuer or the Guarantor, respectively, by
the Trustee or to the Issuer or the Guarantor, respectively, and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Notes; 

  
 A-4-9 

 (e) except as otherwise permitted by the Indenture, the Guarantee is held in any
final, nonappealable judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full force and effect or the Guarantor, or any person acting on behalf of the Guarantor, shall deny or disaffirm its obligations under the
Guarantee; 
 (f) (i) the Issuer or the Guarantor fails to make by the end of the applicable grace period, if any, any
payment of principal or interest due in respect of any Indebtedness for borrowed money, the aggregate outstanding principal amount of which is an amount in excess of $250,000,000; or (ii) there is an acceleration of any Indebtedness for
borrowed money in an amount in excess of $250,000,000 because of a default with respect to such Indebtedness without such Indebtedness having been discharged or such non-payment or acceleration having been cured, waived, rescinded or annulled, in
the case of either (i) or (ii) above, for a period of 30 days after written notice to the Issuer by the Trustee or to the Issuer and the Trustee by Holders of at least 25% in aggregate principal amount of the Outstanding Notes; or 

(g) the occurrence of events of bankruptcy, insolvency or reorganization of the Issuer or Guarantor as specified in the
Indenture; or 
 (h) failure to comply with the conditions set forth in Section 4.5 of the Indenture. 

If an Event of Default shall occur and be continuing, the principal of all the Notes may be declared due and payable in the manner and with
the effect provided in the Supplemental Indenture. 
  

	14.	Authentication. 

 This Note shall not be valid until the Trustee (or authenticating
agent) executes the certificate of authentication on the other side of this Note. 
  

	15.	CUSIP and ISIN Numbers. 

 The Issuer has caused CUSIP and ISIN numbers to be printed on
this Note and, therefore, the Trustee shall use CUSIP and ISIN numbers in notices of redemption as a convenience to Holders. Any such notice may state that no representation is made as to the correctness of such numbers either as printed on the
Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. 

 

	16.	Governing Law. 

 The Supplemental Indenture, the Base Indenture and this Note shall be
governed by, and construed in accordance with, the law of the State of New York. 

  
 A-4-10 

	17.	Successor Corporation. 

 In the event a successor corporation legal entity assumes all
the obligations of the Issuer or the Guarantor under this Note, pursuant to the terms hereof and of the Indenture, the Issuer or Guarantor, as the case may be, will be released from all such obligations. 

  
 A-4-11 

 ASSIGNMENT FORM 
  

			
		 	To assign this Note, fill in the form below and have your signature guaranteed: (I) or (we) assign and transfer this Note to:
		
		 	  

	(Insert assignee’s soc. sec. or tax I.D. no.)
		
		 	  

		
		 	  

		
		 	  

		
		 	  

	(Print or type assignee’s name, address and zip code)

  

			
	and irrevocably appoint	 	  

	to transfer this Note on the books of the Issuer. The agent may substitute another to act for him.

  

									
	Dated:	 	  
	 		 	Your Name:	 	  

		 		 		 	(Print your name exactly as it appears on the face of this Note)
					
		 		 		 	Your Signature:	 	  

		 		 		 	(Sign exactly as your name appears on the face of this Note)
				
		 		 		 	Signature Guarantee*:

  

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  
 A-4-12 

 EXHIBIT A-5 

[FORM OF FACE OF NOTE] 
 UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO TEVA PHARMACEUTICAL FINANCE III, B.V. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IN
EXCHANGE FOR THIS NOTE IS REGISTERED IN THE NAME OF CEDE & CO. (“CEDE”) OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE 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, HAS AN INTEREST HEREIN. 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE SUPPLEMENTAL INDENTURE REFERRED TO HEREIN. THIS GLOBAL NOTE MAY NOT BE EXCHANGED, IN WHOLE OR IN
PART, FOR A NOTE REGISTERED IN THE NAME OF ANY PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES SET FORTH IN THE SUPPLEMENTAL INDENTURE AND MAY NOT BE TRANSFERRED, IN WHOLE OR IN PART, EXCEPT
IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE SUPPLEMENTAL INDENTURE. 
  

			
	No.    	  	U.S.$         

 CUSIP No. 88167A AE1 
 ISIN No.
US88167AAE10 
 GLOBAL NOTE 

TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V. 

3.150% Senior Notes due 2026 

Payment of Principal, Interest and Additional Tax Amounts, if any, Unconditionally 

Guaranteed By 
 TEVA
PHARMACEUTICAL INDUSTRIES LIMITED 
 This Global Note is in respect of an issue of 3.150% Senior Notes due 2026 (the
“Notes”) of Teva Pharmaceutical Finance Netherlands III B.V., a private company with limited 

  
 A-5-1 

 
liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under Dutch law (the “Issuer”, which term includes any successor corporation under the
Supplemental Indenture and Indenture hereinafter referred to), and issued pursuant to a supplemental indenture and a base indenture, each dated as of July 21, 2016 (respectively, the “Supplemental Indenture” and the “Base
Indenture” and together, the “Indenture”) among the Issuer, Teva Pharmaceutical Industries Limited, as guarantor (the “Guarantor”), and The Bank of New York Mellon, a New York banking corporation, as
trustee (the “Trustee”). Unless the context otherwise requires, the terms used herein shall have the meanings specified in the Supplemental Indenture and the Base Indenture. 

The Issuer, for value received, hereby promises to pay to Cede & Co. or its
registered assigns, the principal amount of                      United States Dollars (U.S.$        ) on
October 1, 2026, and to pay interest on such principal amount in U.S. Dollars at the rate of 3.150% per annum, computed on a basis of a 360 day year consisting of twelve 30 day months, from the date hereof until payment of such principal amount has
been made or duly provided for, such interest to be paid semi-annually on April 1 and October 1 of each year, commencing April 1, 2017. The interest so payable on April 1 and October 1 will, subject to certain exceptions
provided in the Supplemental Indenture, be paid to the person in whose name this Note is registered at the close of business on the immediately preceding March 15 and September 15, respectively (whether or not a Business Day). 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 This Note shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by the Trustee. 

  
 A-5-2 

 IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed manually or by facsimile
by its duly authorized officers. 
 Dated: July 21, 2016 
  

			
	TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V.
		
	By	 	  

		 	Name:
		 	Title:
		
	By	 	  

		 	Name:
		 	Title:

  

			
	Trustee’s Certificate of Authentication
	
	This is one of the 3.150% Senior Notes due 2026 described in the within-named Indenture.
	
	THE BANK OF NEW YORK MELLON,
	as Trustee
		
	By:	 	  

		 	Authorized Signatory
	
	Dated: July 21, 2016

  
 A-5-3 

 Teva Pharmaceutical Industries Limited (the “Guarantor”) hereby unconditionally and
irrevocably guarantees to the Holder of this Note (the “Guarantee”) the due and punctual payment of the principal of and interest (including Additional Tax Amounts, if any), on this Note, when and as the same shall become due and payable,
whether at Maturity or upon redemption or upon declaration of acceleration or otherwise, according to the terms of this Note and of the Indenture. The Guarantor agrees that in the case of default by the Issuer in the payment of any such principal or
interest (including Additional Tax Amounts, if any), the Guarantor shall duly and punctually pay the same. The Guarantor hereby agrees that its obligations hereunder shall be absolute and unconditional irrespective of any extension of the time for
payment of this Note, any modification of this Note, any invalidity, irregularity or unenforceability of this Note or the Indenture, any failure to enforce the same or any waiver, modification, consent or indulgence granted to the Issuer with
respect thereto by the Holder of this Note or the Trustee, or any other circumstances which may otherwise constitute a legal or equitable discharge of a surety or guarantor. The Guarantor hereby waives diligence, presentment, demand of payment,
filing of claims with a court in the event of merger or bankruptcy of the Issuer, any right to require a demand or proceeding first against the Issuer, protest or notice with respect to this Note or the indebtedness evidenced hereby and all demands
whatsoever, and covenants that this Guarantee will not be discharged as to this Note except by payment in full of the principal of and interest (including Additional Tax Amounts, if any) on this Note. 

The Guarantor shall be subrogated to all rights of the Holders against the Issuer in respect of any amounts paid by the Guarantor pursuant to
the provisions of the Guarantees or the Indenture; provided, however, that the Guarantor hereby waives any and all rights to which it may be entitled, by operation of law or otherwise, upon making any payment hereunder (i) to be subrogated to the
rights of a Holder against the Issuer with respect to such payment or otherwise to be reimbursed, indemnified or exonerated by the Issuer in respect thereof or (ii) to receive any payment in the nature of contribution or for any other reason, from
any other obligor with respect to such payment, in each case, until the principal of and interest (including Additional Tax Amounts, if any) on this Note shall have been paid in full. 

The Guarantee shall not be valid or become obligatory for any purpose with respect to this Note until the certificate of authentication on
this Note shall have been signed by the Trustee. 
 The Guarantee shall be governed by and construed in accordance with the laws of the
State of New York.

  
 A-5-4 

 IN WITNESS WHEREOF, Teva Pharmaceutical Industries Limited has caused the Guarantee to be signed
manually or by facsimile by its duly authorized officers. 
 Dated: July 21, 2016 

 

			
	TEVA PHARMACEUTICAL INDUSTRIES LIMITED
		
	By	 	  

		 	Name:
		 	Title:
		
	By	 	  

		 	Name:
		 	Title:

  
 A-5-5 

 [REVERSE OF NOTE] 

TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V. 

3.150% Senior Notes due 2026 

Payment of Principal, Interest and Additional Tax Amounts, if any, Unconditionally 

Guaranteed By 
 TEVA
PHARMACEUTICAL INDUSTRIES LIMITED 
 Capitalized terms used herein but not defined shall have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated. 
  

	1.	Principal and Interest. 

 Teva Pharmaceutical Finance Netherlands III B.V., a private
company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under Dutch law (the “Issuer”), promises to pay interest on the principal amount of this Note at 3.150% per annum from July
21, 2016 until the principal thereof is paid or made available for payment. Interest shall be payable semi-annually in arrears on each April 1 and October 1 of each year (each an “Interest Payment Date”), commencing
April 1, 2017. 
 Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. 

A Holder of any Note at the close of business on a Regular Record Date shall be entitled to receive interest on such Note on the corresponding
Interest Payment Date. 
  

	2.	Method of Payment. 

 Interest on any Note which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the person in whose name that Note (or one or more Predecessor Notes) is registered at the close of business on the relevant Regular Record Date for such interest. 

Principal of and interest on Global Notes shall be payable to the Depositary in immediately available funds. 

Principal of Physical Notes will be payable at the office or agency of the Issuer maintained for such purpose, initially the Corporate Trust
Office of the Trustee. Interest on Physical Notes will be payable by (i) U.S. Dollar check drawn on a bank in The City of New York mailed to the address of the Person entitled thereto as such address shall appear in the register of the Notes,
or (ii) upon written application to the Registrar not later than the relevant Record Date by a Holder of an aggregate principal amount of Notes in excess of $5,000,000, wire transfer in immediately available funds, which application and written wire
instructions shall remain in effect until the Holder notifies, in writing, the Registrar to the contrary. 

  
 A-5-6 

	3.	Paying Agent and Registrar. 

 Initially, The Bank of New York Mellon, the Trustee under
the Supplemental Indenture, will act as Paying Agent and Registrar. The Issuer may change the Paying Agent or Registrar without notice to any Holder. 
  

	4.	Supplemental Indenture and Indenture. 

 The Issuer issued this Note under a Supplemental
Indenture and a Base Indenture, each dated as of July 21, 2016 (respectively, the “Supplemental Indenture” and the “Base Indenture” and together, the “Indenture”), among the Issuer, the Guarantor
and The Bank of New York Mellon, as trustee (the “Trustee”). The terms of the Note include those stated in the Indenture, and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended
(“TIA”). This Note is subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms
of this Note and the terms of the Indenture, the terms of the Indenture shall control. 
  

	5.	Optional Redemption. 

 This Note may be redeemed in whole at any time or in part from
time to time, at the option of the Issuer, on any date prior to Maturity, upon notice as set forth in Section 4.2 of the Supplemental Indenture, at a Redemption Price equal to the greater of (1) 100% of the principal amount of the Notes to be
redeemed or (2) the sum of the present values of the Remaining Scheduled Payments discounted, on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), at a rate equal to the sum of the Treasury Rate and 25 basis points,
plus any interest accrued and unpaid to, but excluding, the Redemption Date. 
 On and after the Redemption Date, interest shall cease to
accrue on Notes or portions of Notes called for redemption, unless the Issuer defaults in the payment of the Redemption Price. 
 Notice of
redemption will be given by the Issuer to the Holders as provided in the Supplemental Indenture. 
  

	6.	Tax Redemption. 

 The Notes may be redeemed as a whole but not in part, at the option of
the Issuer at any time prior to Stated Maturity, upon the giving of a notice of tax redemption to the Holders, at a Redemption Price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest, if the Issuer determines that,
as a result of any change in or amendment in the laws of any Taxing Jurisdiction, or any change in official position regarding the application or interpretation of the laws, which change or amendment becomes effective or, in the case of a
change in official position, is announced on or after the issuance of the Notes, the Issuer or the Guarantor (or its successor) will be obligated to pay Additional Tax Amounts with respect to the Notes; provided, however, that the
Issuer, in its business judgment, determines that such obligation cannot be avoided by the Issuer or the Guarantor (or its successor), taking reasonable measures avoidable to it. 

  
 A-5-7 

	7.	Special Mandatory Redemption. 

 In the event that (i) the closing of the Actavis Generics
acquisition does not occur on or prior to October 26, 2016, or (ii) the Master Purchase Agreement is terminated at any time prior thereto, the Issuer will be required to redeem the Securities on the Special Redemption Date at the Special Redemption
Price. 
  

	8.	Denominations; Transfer; Exchange. 

 The Notes are issuable in registered form, without
coupons, in minimum denominations of $2,000 principal amount and integral multiples of $1,000 in excess of $2,000. A Holder may register the transfer or exchange of Notes in accordance with the Indenture. The Issuer or the Trustee may
require a Holder, among other things, to furnish appropriate endorsements and transfer documents, and the Issuer may require a Holder to pay any taxes or other governmental charges that may be imposed in connection with any exchange or registration
of transfer of Notes. 
 The Issuer shall not be required to exchange or register a transfer of (a) any Note for a period of 15 days next
preceding the first mailing of notice of redemption of Notes to be redeemed, (b) any Notes selected, called or being called for redemption except, in the case of any Note where notice has been given that such Note is to be redeemed in part, the
portion thereof not so to be redeemed or (c) any Notes between a record date and the next succeeding payment date. 
 In the event of
redemption of the Notes in part only, a new Note or Notes for the unredeemed portion thereof will be issued in the name of the Holder hereof. 
  

	9.	Holders to be Treated as Owners. 

 The registered Holder of this Note shall be treated as
its owner for all purposes. 
  

	10.	Unclaimed Money. 

 Any moneys deposited with or paid to the Trustee or any Paying Agent
for the payment of the principal of or interest on any Note and not applied but remaining unclaimed for two years after the date upon which such principal or interest shall have become due and payable, shall, upon the written request of the Issuer
and unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be repaid to the Issuer by the Trustee or such Paying Agent, and the Holder of the Note shall, unless otherwise required by mandatory
provisions of applicable escheat or abandoned or unclaimed property laws, thereafter look only to the Issuer for any payment which such Holder may be entitled to collect, and all liability of the Trustee or any Paying Agent with respect to such
moneys shall thereupon cease. 
  

	11.	Satisfaction and Discharge. 

 The Issuer and the Guarantor may satisfy and discharge
their obligations under the Indenture while the Notes remain outstanding, if (a) all Outstanding Notes have become due 

  
 A-5-8 

 
and payable at their scheduled Maturity, or (b) all Outstanding Notes have been called for redemption, and in either case, the Issuer has deposited with the Trustee an amount sufficient to pay
and discharge all Outstanding Notes on the date of their scheduled Maturity or the scheduled Redemption Date. 
  

	12.	Supplement; Waiver. 

 The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Outstanding Notes (or such lesser amount as shall have acted at a meeting pursuant to the provisions of the Indenture). The Indenture also contains provisions permitting the Holders of specified percentages in
principal amount of the Notes at the time Outstanding, on behalf of the Holders of all the Notes, to waive compliance by the Issuer 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 Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon 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 Note or such other Note. 
 No reference herein to the
Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, places and rate, and in the coin or
currency, herein prescribed. 
  

	13.	Defaults and Remedies. 

 The Indenture provides that an Event of Default with respect to
the Notes occurs when any of the following occurs: 
 (a) the Issuer defaults in the payment of the principal and premium, if
any, of any of the Notes when it becomes due and payable at Maturity, upon redemption or otherwise; 
 (b) the Issuer
defaults in the payment of interest (including Additional Tax Amounts, if any) on any of the Notes when it becomes due and payable and such default continues for a period of 30 days; 

(c) the Guarantor fails to perform under the Guarantee; 

(d) either the Issuer or the Guarantor fails to perform or observe any other term, covenant or agreement contained in the Notes
or the Indenture and the default continues for a period of 60 days after written notice of such failure, requiring the Issuer or the Guarantor, respectively, to remedy the same, shall have been given to the Issuer or the Guarantor, respectively, by
the Trustee or to the Issuer or the Guarantor, respectively, and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Notes; 

  
 A-5-9 

 (e) except as otherwise permitted by the Indenture, the Guarantee is held in any
final, nonappealable judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full force and effect or the Guarantor, or any person acting on behalf of the Guarantor, shall deny or disaffirm its obligations under the
Guarantee; 
 (f) (i) the Issuer or the Guarantor fails to make by the end of the applicable grace period, if any, any
payment of principal or interest due in respect of any Indebtedness for borrowed money, the aggregate outstanding principal amount of which is an amount in excess of $250,000,000; or (ii) there is an acceleration of any Indebtedness for
borrowed money in an amount in excess of $250,000,000 because of a default with respect to such Indebtedness without such Indebtedness having been discharged or such non-payment or acceleration having been cured, waived, rescinded or annulled, in
the case of either (i) or (ii) above, for a period of 30 days after written notice to the Issuer by the Trustee or to the Issuer and the Trustee by Holders of at least 25% in aggregate principal amount of the Outstanding Notes; or 

(g) the occurrence of events of bankruptcy, insolvency or reorganization of the Issuer or Guarantor as specified in the
Indenture; or 
 (h) failure to comply with the conditions set forth in Section 4.5 of the Indenture. 

If an Event of Default shall occur and be continuing, the principal of all the Notes may be declared due and payable in the manner and with
the effect provided in the Supplemental Indenture. 
  

	14.	Authentication. 

 This Note shall not be valid until the Trustee (or authenticating
agent) executes the certificate of authentication on the other side of this Note. 
  

	15.	CUSIP and ISIN Numbers. 

 The Issuer has caused CUSIP and ISIN numbers to be printed on
this Note and, therefore, the Trustee shall use CUSIP and ISIN numbers in notices of redemption as a convenience to Holders. Any such notice may state that no representation is made as to the correctness of such numbers either as printed on the
Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. 

 

	16.	Governing Law. 

 The Supplemental Indenture, the Base Indenture and this Note shall be
governed by, and construed in accordance with, the law of the State of New York. 

  
 A-5-10 

	17.	Successor Corporation. 

 In the event a successor corporation legal entity assumes all
the obligations of the Issuer or the Guarantor under this Note, pursuant to the terms hereof and of the Indenture, the Issuer or Guarantor, as the case may be, will be released from all such obligations. 

  
 A-5-11 

 ASSIGNMENT FORM 
  

			
		 	To assign this Note, fill in the form below and have your signature guaranteed: (I) or (we) assign and transfer this Note to:
		
		 	  

	(Insert assignee’s soc. sec. or tax I.D. no.)
		
		 	  

		
		 	  

		
		 	  

		
		 	  

	(Print or type assignee’s name, address and zip code)

  

			
	and irrevocably appoint	 	  

 to transfer this Note on the books of the Issuer. The agent may substitute another to act for him. 

 

									
	Dated:	 	  
	 		 	Your Name:	 	  

		 		 		 	(Print your name exactly as it appears on the face of this Note)
					
		 		 		 	Your Signature:	 	  

		 		 		 	(Sign exactly as your name appears on the face of this Note)
				
		 		 		 	Signature Guarantee*:

  

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  
 A-5-12 

 EXHIBIT A-6 

[FORM OF FACE OF NOTE] 
 UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO TEVA PHARMACEUTICAL FINANCE III, B.V. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IN
EXCHANGE FOR THIS NOTE IS REGISTERED IN THE NAME OF CEDE & CO. (“CEDE”) OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE 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, HAS AN INTEREST HEREIN. 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE SUPPLEMENTAL INDENTURE REFERRED TO HEREIN. THIS GLOBAL NOTE MAY NOT BE EXCHANGED, IN WHOLE OR IN
PART, FOR A NOTE REGISTERED IN THE NAME OF ANY PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES SET FORTH IN THE SUPPLEMENTAL INDENTURE AND MAY NOT BE TRANSFERRED, IN WHOLE OR IN PART, EXCEPT
IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE SUPPLEMENTAL INDENTURE. 
  

			
	No.     	  	U.S.$        

 CUSIP No. 88167A AF8 
 ISIN No.
US88167AAF84 
 GLOBAL NOTE 

TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V. 

4.100% Senior Notes due 2046 

Payment of Principal, Interest and Additional Tax Amounts, if any, Unconditionally 

Guaranteed By 
 TEVA
PHARMACEUTICAL INDUSTRIES LIMITED 
 This Global Note is in respect of an issue of 4.100% Senior Notes due 2046 (the
“Notes”) of Teva Pharmaceutical Finance Netherlands III B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under Dutch law (the “Issuer”, which
term includes any successor corporation under the Supplemental Indenture 

  
 A-6-1 

 
and Indenture hereinafter referred to), and issued pursuant to a supplemental indenture and a base indenture, each dated as of July 21, 2016 (respectively, the “Supplemental
Indenture” and the “Base Indenture” and together, the “Indenture”) among the Issuer, Teva Pharmaceutical Industries Limited, as guarantor (the “Guarantor”), and The Bank of New York Mellon,
a New York banking corporation, as trustee (the “Trustee”). Unless the context otherwise requires, the terms used herein shall have the meanings specified in the Supplemental Indenture and the Base Indenture. 

The Issuer, for value received, hereby promises to pay to Cede & Co. or its
registered assigns, the principal amount of                      United States Dollars (U.S.$        ) on
October 1, 2046, and to pay interest on such principal amount in U.S. Dollars at the rate of 4.100% per annum, computed on a basis of a 360 day year consisting of twelve 30 day months, from the date hereof until payment of such principal amount has
been made or duly provided for, such interest to be paid semi-annually on April 1 and October 1 of each year, commencing April 1, 2017. The interest so payable on April 1 and October 1 will, subject to certain exceptions
provided in the Supplemental Indenture, be paid to the person in whose name this Note is registered at the close of business on the immediately preceding March 15 and September 15, respectively (whether or not a Business Day). 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 This Note shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by the Trustee. 

  
 A-6-2 

 IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed manually or by facsimile
by its duly authorized officers. 
 Dated: July 21, 2016 
  

			
	TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V.
		
	By	 	  

		 	Name:
		 	Title:
		
	By	 	  

		 	Name:
		 	Title:

  

			
	Trustee’s Certificate of Authentication
	
	This is one of the 4.100% Senior Notes due 2046 described in the within-named Indenture.
	
	THE BANK OF NEW YORK MELLON,
	as Trustee
		
	By:	 	  

		 	Authorized Signatory
	
	Dated: July 21, 2016

  
 A-6-3 

 Teva Pharmaceutical Industries Limited (the “Guarantor”) hereby unconditionally and
irrevocably guarantees to the Holder of this Note (the “Guarantee”) the due and punctual payment of the principal of and interest (including Additional Tax Amounts, if any), on this Note, when and as the same shall become due and payable,
whether at Maturity or upon redemption or upon declaration of acceleration or otherwise, according to the terms of this Note and of the Indenture. The Guarantor agrees that in the case of default by the Issuer in the payment of any such principal or
interest (including Additional Tax Amounts, if any), the Guarantor shall duly and punctually pay the same. The Guarantor hereby agrees that its obligations hereunder shall be absolute and unconditional irrespective of any extension of the time for
payment of this Note, any modification of this Note, any invalidity, irregularity or unenforceability of this Note or the Indenture, any failure to enforce the same or any waiver, modification, consent or indulgence granted to the Issuer with
respect thereto by the Holder of this Note or the Trustee, or any other circumstances which may otherwise constitute a legal or equitable discharge of a surety or guarantor. The Guarantor hereby waives diligence, presentment, demand of payment,
filing of claims with a court in the event of merger or bankruptcy of the Issuer, any right to require a demand or proceeding first against the Issuer, protest or notice with respect to this Note or the indebtedness evidenced hereby and all demands
whatsoever, and covenants that this Guarantee will not be discharged as to this Note except by payment in full of the principal of and interest (including Additional Tax Amounts, if any) on this Note. 

The Guarantor shall be subrogated to all rights of the Holders against the Issuer in respect of any amounts paid by the Guarantor pursuant to
the provisions of the Guarantees or the Indenture; provided, however, that the Guarantor hereby waives any and all rights to which it may be entitled, by operation of law or otherwise, upon making any payment hereunder (i) to be subrogated to the
rights of a Holder against the Issuer with respect to such payment or otherwise to be reimbursed, indemnified or exonerated by the Issuer in respect thereof or (ii) to receive any payment in the nature of contribution or for any other reason, from
any other obligor with respect to such payment, in each case, until the principal of and interest (including Additional Tax Amounts, if any) on this Note shall have been paid in full. 

The Guarantee shall not be valid or become obligatory for any purpose with respect to this Note until the certificate of authentication on
this Note shall have been signed by the Trustee. 
 The Guarantee shall be governed by and construed in accordance with the laws of the
State of New York.

  
 A-6-4 

 IN WITNESS WHEREOF, Teva Pharmaceutical Industries Limited has caused the Guarantee to be signed
manually or by facsimile by its duly authorized officers. 
 Dated: July 21, 2016 

 

			
	TEVA PHARMACEUTICAL INDUSTRIES LIMITED
		
	By	 	  

		 	Name:
		 	Title:
		
	By	 	  

		 	Name:
		 	Title:

  
 A-6-5 

 [REVERSE OF NOTE] 

TEVA PHARMACEUTICAL FINANCE NETHERLANDS III B.V. 

4.100% Senior Notes due 2046 

Payment of Principal, Interest and Additional Tax Amounts, if any, Unconditionally 

Guaranteed By 
 TEVA
PHARMACEUTICAL INDUSTRIES LIMITED 
 Capitalized terms used herein but not defined shall have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated. 
  

	1.	Principal and Interest. 

 Teva Pharmaceutical Finance Netherlands III B.V., a private
company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under Dutch law (the “Issuer”), promises to pay interest on the principal amount of this Note at 4.100% per annum from July
21, 2016 until the principal thereof is paid or made available for payment. Interest shall be payable semi-annually in arrears on each April 1 and October 1 of each year (each an “Interest Payment Date”), commencing
April 1, 2017. 
 Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. 

A Holder of any Note at the close of business on a Regular Record Date shall be entitled to receive interest on such Note on the corresponding
Interest Payment Date. 
  

	2.	Method of Payment. 

 Interest on any Note which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the person in whose name that Note (or one or more Predecessor Notes) is registered at the close of business on the relevant Regular Record Date for such interest. 

Principal of and interest on Global Notes shall be payable to the Depositary in immediately available funds. 

Principal of Physical Notes will be payable at the office or agency of the Issuer maintained for such purpose, initially the Corporate Trust
Office of the Trustee. Interest on Physical Notes will be payable by (i) U.S. Dollar check drawn on a bank in The City of New York mailed to the address of the Person entitled thereto as such address shall appear in the register of the Notes,
or (ii) upon written application to the Registrar not later than the relevant Record Date by a Holder of an aggregate principal amount of Notes in excess of $5,000,000, wire transfer in immediately available funds, which application and written wire
instructions shall remain in effect until the Holder notifies, in writing, the Registrar to the contrary. 

  
 A-6-6 

	3.	Paying Agent and Registrar. 

 Initially, The Bank of New York Mellon, the Trustee under
the Supplemental Indenture, will act as Paying Agent and Registrar. The Issuer may change the Paying Agent or Registrar without notice to any Holder. 
  

	4.	Supplemental Indenture and Indenture. 

 The Issuer issued this Note under a Supplemental
Indenture and a Base Indenture, each dated as of July 21, 2016 (respectively, the “Supplemental Indenture” and the “Base Indenture” and together, the “Indenture”), among the Issuer, the Guarantor
and The Bank of New York Mellon, as trustee (the “Trustee”). The terms of the Note include those stated in the Indenture, and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended
(“TIA”). This Note is subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms
of this Note and the terms of the Indenture, the terms of the Indenture shall control. 
  

	5.	Optional Redemption. 

 This Note may be redeemed in whole at any time or in part from
time to time, at the option of the Issuer, on any date prior to Maturity, upon notice as set forth in Section 4.2 of the Supplemental Indenture, at a Redemption Price equal to the greater of (1) 100% of the principal amount of the Notes to be
redeemed or (2) the sum of the present values of the Remaining Scheduled Payments discounted, on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), at a rate equal to the sum of the Treasury Rate and 30 basis points,
plus any interest accrued and unpaid to, but excluding, the Redemption Date. 
 On and after the Redemption Date, interest shall cease to
accrue on Notes or portions of Notes called for redemption, unless the Issuer defaults in the payment of the Redemption Price. 
 Notice of
redemption will be given by the Issuer to the Holders as provided in the Supplemental Indenture. 
  

	6.	Tax Redemption. 

 The Notes may be redeemed as a whole but not in part, at the option of
the Issuer at any time prior to Stated Maturity, upon the giving of a notice of tax redemption to the Holders, at a Redemption Price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest, if the Issuer determines that,
as a result of any change in or amendment in the laws of any Taxing Jurisdiction, or any change in official position regarding the application or interpretation of the laws, which change or amendment becomes effective or, in the case of a
change in official position, is announced on or after the issuance of the Notes, the Issuer or the Guarantor (or its successor) will be obligated to pay Additional Tax Amounts with respect to the Notes; provided, however, that the
Issuer, in its business judgment, determines that such obligation cannot be avoided by the Issuer or the Guarantor (or its successor), taking reasonable measures avoidable to it. 

  
 A-6-7 

	7.	Special Mandatory Redemption. 

 In the event that (i) the closing of the Actavis Generics
acquisition does not occur on or prior to October 26, 2016, or (ii) the Master Purchase Agreement is terminated at any time prior thereto, the Issuer will be required to redeem the Securities on the Special Redemption Date at the Special Redemption
Price. 
  

	8.	Denominations; Transfer; Exchange. 

 The Notes are issuable in registered form, without
coupons, in minimum denominations of $2,000 principal amount and integral multiples of $1,000 in excess of $2,000. A Holder may register the transfer or exchange of Notes in accordance with the Indenture. The Issuer or the Trustee may
require a Holder, among other things, to furnish appropriate endorsements and transfer documents, and the Issuer may require a Holder to pay any taxes or other governmental charges that may be imposed in connection with any exchange or registration
of transfer of Notes. 
 The Issuer shall not be required to exchange or register a transfer of (a) any Note for a period of 15 days next
preceding the first mailing of notice of redemption of Notes to be redeemed, (b) any Notes selected, called or being called for redemption except, in the case of any Note where notice has been given that such Note is to be redeemed in part, the
portion thereof not so to be redeemed or (c) any Notes between a record date and the next succeeding payment date. 
 In the event of
redemption of the Notes in part only, a new Note or Notes for the unredeemed portion thereof will be issued in the name of the Holder hereof. 
  

	9.	Holders to be Treated as Owners. 

 The registered Holder of this Note shall be treated as
its owner for all purposes. 
  

	10.	Unclaimed Money. 

 Any moneys deposited with or paid to the Trustee or any Paying Agent
for the payment of the principal of or interest on any Note and not applied but remaining unclaimed for two years after the date upon which such principal or interest shall have become due and payable, shall, upon the written request of the Issuer
and unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be repaid to the Issuer by the Trustee or such Paying Agent, and the Holder of the Note shall, unless otherwise required by mandatory
provisions of applicable escheat or abandoned or unclaimed property laws, thereafter look only to the Issuer for any payment which such Holder may be entitled to collect, and all liability of the Trustee or any Paying Agent with respect to such
moneys shall thereupon cease. 
  

	11.	Satisfaction and Discharge. 

 The Issuer and the Guarantor may satisfy and discharge
their obligations under the Indenture while the Notes remain outstanding, if (a) all Outstanding Notes have become due 

  
 A-6-8 

 
and payable at their scheduled Maturity, or (b) all Outstanding Notes have been called for redemption, and in either case, the Issuer has deposited with the Trustee an amount sufficient to pay
and discharge all Outstanding Notes on the date of their scheduled Maturity or the scheduled Redemption Date. 
  

	12.	Supplement; Waiver. 

 The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Outstanding Notes (or such lesser amount as shall have acted at a meeting pursuant to the provisions of the Indenture). The Indenture also contains provisions permitting the Holders of specified percentages in
principal amount of the Notes at the time Outstanding, on behalf of the Holders of all the Notes, to waive compliance by the Issuer 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 Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon 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 Note or such other Note. 
 No reference herein to the
Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, places and rate, and in the coin or
currency, herein prescribed. 
  

	13.	Defaults and Remedies. 

 The Indenture provides that an Event of Default with respect to
the Notes occurs when any of the following occurs: 
 (a) the Issuer defaults in the payment of the principal and premium, if
any, of any of the Notes when it becomes due and payable at Maturity, upon redemption or otherwise; 
 (b) the Issuer
defaults in the payment of interest (including Additional Tax Amounts, if any) on any of the Notes when it becomes due and payable and such default continues for a period of 30 days; 

(c) the Guarantor fails to perform under the Guarantee; 

(d) either the Issuer or the Guarantor fails to perform or observe any other term, covenant or agreement contained in the Notes
or the Indenture and the default continues for a period of 60 days after written notice of such failure, requiring the Issuer or the Guarantor, respectively, to remedy the same, shall have been given to the Issuer or the Guarantor, respectively, by
the Trustee or to the Issuer or the Guarantor, respectively, and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Notes; 

  
 A-6-9 

 (e) except as otherwise permitted by the Indenture, the Guarantee is held in any
final, nonappealable judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full force and effect or the Guarantor, or any person acting on behalf of the Guarantor, shall deny or disaffirm its obligations under the
Guarantee; 
 (f) (i) the Issuer or the Guarantor fails to make by the end of the applicable grace period, if any, any
payment of principal or interest due in respect of any Indebtedness for borrowed money, the aggregate outstanding principal amount of which is an amount in excess of $250,000,000; or (ii) there is an acceleration of any Indebtedness for
borrowed money in an amount in excess of $250,000,000 because of a default with respect to such Indebtedness without such Indebtedness having been discharged or such non-payment or acceleration having been cured, waived, rescinded or annulled, in
the case of either (i) or (ii) above, for a period of 30 days after written notice to the Issuer by the Trustee or to the Issuer and the Trustee by Holders of at least 25% in aggregate principal amount of the Outstanding Notes; or 

(g) the occurrence of events of bankruptcy, insolvency or reorganization of the Issuer or Guarantor as specified in the
Indenture; or 
 (h) failure to comply with the conditions set forth in Section 4.5 of the Indenture. 

If an Event of Default shall occur and be continuing, the principal of all the Notes may be declared due and payable in the manner and with
the effect provided in the Supplemental Indenture. 
  

	14.	Authentication. 

 This Note shall not be valid until the Trustee (or authenticating
agent) executes the certificate of authentication on the other side of this Note. 
  

	15.	CUSIP and ISIN Numbers. 

 The Issuer has caused CUSIP and ISIN numbers to be printed on
this Note and, therefore, the Trustee shall use CUSIP and ISIN numbers in notices of redemption as a convenience to Holders. Any such notice may state that no representation is made as to the correctness of such numbers either as printed on the
Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. 

 

	16.	Governing Law. 

 The Supplemental Indenture, the Base Indenture and this Note shall be
governed by, and construed in accordance with, the law of the State of New York. 

  
 A-6-10 

	17.	Successor Corporation. 

 In the event a successor corporation legal entity assumes all
the obligations of the Issuer or the Guarantor under this Note, pursuant to the terms hereof and of the Indenture, the Issuer or Guarantor, as the case may be, will be released from all such obligations. 

  
 A-6-11 

 ASSIGNMENT FORM 

 

	
	To assign this Note, fill in the form below and have your signature guaranteed: (I) or (we) assign and transfer this Note to:
	
	  

	(Insert assignee’s soc. sec. or tax I.D. no.)
	
	  

	
	  

	
	  

	
	  

	(Print or type assignee’s name, address and zip code)

  

			
	and irrevocably appoint	 	  

	to transfer this Note on the books of the Issuer. The agent may substitute another to act for him.

 

			
	Dated:	 	  

 

			
	Your Name:	 	  

	(Print your name exactly as it appears on the face of this Note)
		
	Your Signature:	 	  

	(Sign exactly as your name appears on the face of this Note)
	
	Signature Guarantee*:

 
 

  

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  
 A-6-12Exhibit

PulteGroup, Inc.
3350 Peachtree Road NE, Suite 150
Atlanta, Georgia 30326

July 20, 2016
Elliott Associates, L.P.
Elliott International, L.P.
40 West 57th Street
New York, New York 10019

Ladies and Gentlemen:
This letter agreement (this “Agreement”) constitutes the agreement between PulteGroup, Inc., a Michigan corporation (the “Company”), Elliott Associates, L.P., a Delaware limited partnership (“Elliott Associates”), and Elliott International, L.P., a Cayman Islands limited partnership (“Elliott International”), with respect to the matters set forth below.  Elliott Associates and Elliott International are referred to herein, each individually, as an “Elliott Party” and, collectively, as the “Elliott Parties” or “Elliott.”  The Company and the Elliott Parties are referred to herein, each individually, as a “Party” and, collectively, as the “Parties.”
		
	1.
	Director Appointments.  Effective as of the date hereof, the size of the Board of Directors of the Company (the “Board”) shall increase to thirteen (13) directors and each of John Peshkin (“Mr. Peshkin”),  Josh Gotbaum (“Mr. Gotbaum” or the “Selected Nominee”) and Scott Powers (such individual, the “Additional Nominee” and, together with Mr. Peshkin and Mr. Gotbaum, the “Nominees”, and each referred to herein as a “Nominee”) shall be appointed to fill the three (3) director vacancies so created, with each Nominee serving as a director until the next election of directors and until his successor is duly elected and qualified or until his earlier resignation or removal, subject to the terms of this Agreement.  Subject to Paragraph 5, unless the Board determines in good faith that doing so would violate the Board’s fiduciary duties under applicable law (it being acknowledged that to the extent the Board makes such a determination regarding the Selected Nominee, the Company shall promptly inform the Elliott Parties of such determination, and the Elliott Parties shall be entitled to select a replacement candidate for the Selected Nominee in accordance with Paragraph 2), and subject to the Company having received a certification from the Elliott Parties that at such time the Elliott Parties beneficially own 3.0% or more of the Company common shares, (a) the Company shall include the Selected Nominee and the Additional Nominee on its slate of nominees for the election of directors at its 2017 Annual Meeting of Shareholders in the proxy statement for such Meeting of Shareholders and (b) with respect to the 2017 Annual Meeting of Shareholders, (i) the Board shall recommend (and shall not change such recommendation in a manner adverse to the Selected Nominee or the Additional Nominee) that the Company’s shareholders vote in favor of the Board’s entire slate (including the Selected Nominee and the Additional Nominee) and (ii) the Company shall solicit proxies for the Board’s entire slate (including the Selected Nominee and the Additional Nominee) and otherwise support the Selected Nominee and the Additional Nominee for election in a manner no less rigorous and favorable than the manner in which the Company supports its other director nominees.  The Board shall not increase the size of the Board to more than thirteen (13) directors at any 

time prior to the Expiration Date without the prior written consent of the Elliott Parties; provided that the Board size may be increased by an additional director to a total of no more than fourteen (14) directors as long as such additional director is added in connection with a merger, consolidation, acquisition, business combination or significant stock issuance outside the ordinary course of business and involving the Company or any of its direct or indirect subsidiaries or in connection with settling a demand for representation on the Board by a shareholder of the Company, and not for the purpose of diluting the voting rights or influence of the Nominees.  Notwithstanding anything in this Agreement to the contrary, the Company’s and Board’s obligations in this Section 1 shall terminate prior to the Expiration Date at such time as the Elliott Parties’ aggregate beneficial ownership decreases to less than 3.0% of the Company common shares as a result of dispositions by the Elliott Parties.
		
	2.
	Replacement of Selected Nominee.  In the event that the Selected Nominee (or his replacement appointed pursuant to this Paragraph 2) is unable or unwilling to serve as a director of the Company (other than on account of failure to be elected or reelected) prior to the Expiration Date, subject to the last sentence of this Paragraph 2 and subject to the Company having received a certification from the Elliott Parties that at the time of such selection the Elliott Parties beneficially own 3.0% or more of the Company common shares, the Company agrees that Elliott may select a replacement candidate (a) who qualifies as “independent” under the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) and the New York Stock Exchange (the “NYSE”) and the applicable terms of the Company’s Corporate Governance Guidelines, and whose service as a director of the Company complies with applicable requirements of the Clayton Antitrust Act of 1914, as amended, and other applicable competition laws and regulations, and (b) who is reasonably acceptable to the Nominating and Governance Committee of the Board as a replacement candidate.  Any such replacement candidate (i) shall not be a principal, director, general partner, managing member, manager, officer, employee, agent or representative of any Elliott Party or any Affiliate of any Elliott Party, (ii) shall not be an investor in any Elliot Party or any Affiliate of any Elliott Party and (iii) shall not serve, and shall not have served, on the board of directors or comparable governing body of any other company at the direction or pursuant to the designation of any Elliott Party or any Affiliate of any Elliott Party. Subject to Paragraph 5 and such replacement candidate’s completion of customary director onboarding documentation and the last sentence of this Paragraph 2, the Company shall appoint any such replacement candidate who meets the foregoing criteria to the Board to replace Mr. Gotbaum, with such replacement candidate to serve as a director and as a member of those Board committees on which Mr. Gotbaum served, in each case, during the unexpired term, if any, of Mr. Gotbaum and such replacement candidate shall be considered the Selected Nominee for all purposes of this Agreement.  Elliott’s right to select a qualified replacement candidate, and the Company’s obligation to appoint such candidate to the Board, shall terminate prior to the Expiration Date at such time as the Elliott Parties’ aggregate beneficial ownership decreases to less than 3.0% of the Company common shares as a result of dispositions by the Elliott Parties.

		
	3.
	Nominee and Director Agreements, Arrangements and Understandings.  Each of the Elliott Parties agrees that neither such Elliott Party nor any of its Affiliates (a) will pay any compensation to any Nominee (including replacement candidates of the Selected Nominee contemplated by Paragraph 2) in connection with such Person’s service on the Board or any committee thereof or (b) will have any agreement, arrangement or understanding, written or oral, with any Nominee (including replacement candidates of the Selected Nominee contemplated by Paragraph 2) regarding such Person’s service on the Board or 

any committee thereof (including without limitation pursuant to which such Person will be compensated for his or her service as a director on, or nominee for election to, the Board or any committee thereof).  Each of the Elliott Parties agrees that the Selected Nominee (including replacement candidates contemplated by Paragraph 2) shall not serve on the board of directors or comparable governing body of any other company at the direction or pursuant to the designation of any Elliott Party or any Affiliate of any Elliott Party.
		
	4.
	Committees.  The Board shall, promptly upon execution of this Agreement, appoint (a) the Selected Nominee (including any replacement contemplated by Paragraph 2) to serve on the Board’s Finance Committee, CEO Search Committee and the Audit Committee; and (b) Mr. Peshkin to serve on the Board’s CEO Search Committee and such other committees of the Board as the Board shall determine.  Notwithstanding anything herein to the contrary, the Board shall not (i) increase the size of the Board’s CEO Search Committee to more than five (5) directors at any time prior to the Expiration Date without the prior written consent of the Elliott Parties; or (ii) increase the size of the Board’s Finance Committee to more than seven (7) directors at any time prior to the Expiration Date without the prior written consent of the Elliott Parties.  The Company’s and Board’s obligation to take (or refrain from taking) the actions specified in this Paragraph 4 shall terminate prior to the Expiration Date at such time as the Elliott Parties’ aggregate beneficial ownership decreases to less than 3.0% of the Company common shares as a result of dispositions by the Elliott Parties.

		
	5.
	Nominee Information.  As a condition to the Company’s obligation to nominate the Selected Nominee (including any replacement candidate contemplated by Paragraph 2) for election at the 2017 Annual Meeting of Shareholders, the Selected Nominee shall have provided any and all information required to be disclosed in a proxy statement or other filing under applicable law or that is otherwise consistent with the information that is required to be disclosed by all other Persons standing for election as a director of the Board, stock exchange rules or listing standards, along with any additional information reasonably requested by the Company in connection with assessing eligibility, independence and other criteria applicable to directors or satisfying compliance and legal obligations, and to consent to appropriate background checks.

		
	6.
	Company Policies.  The Parties acknowledge that each of the Nominees, upon appointment or election to the Board, will be subject to the same protections and obligations regarding confidentiality, conflicts of interest, fiduciary duties, trading and disclosure and other governance guidelines and policies (collectively, “Company Policies”), and shall, subject to Paragraph 11 below, be required to preserve the confidentiality of the Company’s business and information, including discussions or matters considered in or for meetings of the Board or committees of the Board or related thereto, and shall have the same rights and benefits, including with respect to insurance, indemnification, exculpation, compensation and fees, as are applicable to the independent directors of the Company. The Company agrees that: (i) as of the date hereof, all Company Policies currently in effect are publicly available on the Company’s website or described in its proxy statement filed with the SEC on April 4, 2016 or have otherwise been provided to the Elliott Parties, and such Company Policies will not be amended prior to the appointment of the Nominees and (ii) during the Restricted Period, any changes to the Company Policies, or new Company Policies, will be adopted in good faith and not for the purpose of undermining or conflicting with the arrangements contemplated hereby.

		
	7.
	Buyback.  Promptly following the execution of this Agreement, the Company will authorize (to the extent not previously authorized), and in good faith, subject to market conditions, applicable legal requirements and other relevant factors, take all reasonably 

necessary actions designed to effectuate, a share buyback program to repurchase shares of Company common stock in accordance with the terms set forth in Schedule A and as described in the Press Release (as defined below).
		
	8.
	SG&A Reduction Program.  Promptly following the execution of this Agreement, the Company will authorize, and in good faith, subject to market conditions, applicable legal requirements and other relevant factors, take all reasonably necessary actions designed to implement, a selling, general and administrative expense (“SG&A”) reduction program targeting SG&A spend of 9% or better of home sale revenues in 2017 as described in the Press Release.

		
	9.
	Voting of Elliott Shares.  With respect to each of the Company’s annual and special meetings of shareholders (and any adjournments or postponements thereof) held during the Restricted Period and any actions by written consent taken or proposed to be taken by the shareholders of the Company during the Restricted Period, the Elliott Parties shall (a) in the case of any such meeting, cause to be present for quorum purposes all the Company common shares beneficially owned by them or their controlling or controlled Affiliates and which they or such controlling or controlled Affiliates are entitled to vote at such annual or special meeting of shareholders and (b) vote or cause to be voted (or in the case of any proposed action by written consent, provide a written consent for) all such Company common shares (i) in favor of the election of the Selected Nominee as the  director nominee nominated by the Board; (ii) against (or withhold votes in favor of) the election of any director nominees that are not nominated by the Board; and (iii) in accordance with the Board’s recommendation on all other proposals and business that comes before such annual or special meeting of shareholders (or is proposed as an action by written consent), other than with respect to (A) an Extraordinary Transaction, (B) any proposed issuance of Company common shares or any securities convertible into, or exercisable or exchangeable for, Company common shares, (C) approval of any compensatory plan or arrangement relating to the compensation of Company employees or the members of the Board that is submitted for shareholder approval (but, for the avoidance of doubt, excluding the Company’s “say on pay” proposal, with respect to which the Elliott Parties shall vote or cause to be voted all such Company common shares in accordance with the Board’s recommendation) or (D) any proposal by the Company to implement any takeover defense measures or any other proposal by the Company that would diminish or otherwise impair in any material respect the rights of Company shareholders.

		
	10.
	Standstill.  From the date of this Agreement until the Expiration Date or until such earlier time as the restrictions in this Paragraph 10 terminate as provided herein (such period, the “Restricted Period”), the Elliott Parties shall not, and shall cause their respective Affiliates and their respective principals, directors, general partners, managing members, managers, officers, employees, agents and representatives acting on their behalf (collectively, the “Restricted Persons”) not to, directly or indirectly, absent prior express written invitation or authorization by the Board:

		
	(a)
	engage in any “solicitation” (as such term is defined pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and used in the rules and regulations of the SEC, but without regard to the exclusions set forth in Rules 14a-l(l)(2)(iv) and 14a-2 under the Exchange Act) of proxies or consents with respect to the election or removal of directors of the Company or any other matter or proposal involving the Company or become a “participant” (as such term is defined pursuant to the Exchange Act and used in the rules and regulations of the SEC) in any such solicitation of proxies or consents;

		
	(b)
	knowingly encourage or advise any Person or knowingly assist any other Person in so encouraging or advising any Person with respect to the giving or withholding of any proxy, consent or other authority to vote Company common shares or in conducting any type of referendum or the voting of Company common shares (other than such encouragement or advice that is consistent with the Board’s recommendation in connection with such matter);

		
	(c)
	form, join or participate in any way in any “group” with respect to any Company common shares or the beneficial ownership thereof, other than solely with other Elliott Parties or their Affiliates with respect to the Company common shares now or hereafter beneficially owned by them;

		
	(d)
	acquire, or offer, seek or agree to acquire, by purchase or otherwise, or direct any Third Party in the potential acquisition of, by purchase, agreement, Extraordinary Transaction or otherwise, any Company common shares or beneficial ownership thereof or assets of the Company or any direct or indirect subsidiary thereof, or rights or options to acquire any Company common shares or beneficial ownership thereof or assets of the Company or any direct or indirect subsidiary thereof or engage in any swap or hedging transactions or other derivative agreements of any nature with respect to Company common shares, in each case if such acquisition or transaction or agreement (i) would result in Basic Beneficial Ownership in excess of 4.8% of the total number of outstanding Company common shares or (ii) would result in beneficial ownership in excess of 9.9% of the total number of outstanding Company common shares (it being acknowledged and agreed that the Elliott Parties shall not make any such acquisition or engage in any transaction or enter into any agreement that would result in either of the Elliott Parties becoming an “Acquiring Person” under, and as defined in, the Amended and Restated Section 382 Rights Agreement, dated as of March 18, 2010, between the Company and the Rights Agent thereunder, as amended by that certain First Amendment to Amended and Restated Section 382 Rights Agreement, dated March 14, 2013 and that certain Second Amendment to Amended and Restated 382 Rights Agreement, dated as of March 10, 2016);

		
	(e)
	sell, or offer, seek or agree to sell, all or substantially all, directly or indirectly, through swap or hedging transactions or otherwise, voting rights decoupled from the underlying Company common shares held by the Elliott Parties;

		
	(f)
	initiate, make or in any way participate, directly or indirectly, in any Extraordinary Transaction (it being understood that the foregoing shall not restrict the Elliott Parties from tendering shares, receiving payment for shares or otherwise participating in any such transaction on the same basis as other shareholders of the Company or from participating in any such transaction that has been approved by the Board, subject to the other terms of this Agreement) or make, directly or indirectly, any proposal, either alone or in concert with others, to the Company or the Board that would reasonably be expected to require a public announcement or disclosure regarding any such matter;

		
	(g)
	enter into a voting trust, arrangement or agreement or subject any Company common shares or beneficial ownership thereof to any voting trust, arrangement or agreement, in each case other than solely with other Elliott Parties or their Affiliates;

		
	(h)
	 (i) propose or seek, alone or in concert with others, election or appointment to, or representation on, the Board or nominate or propose the nomination of, or recommend the nomination of, any candidate to the Board, except as specifically 

permitted in Paragraph 2 or (ii) propose or seek, alone or in concert with others, the removal of any member of the Board;
		
	(i)
	(A) initiate, make or be the proponent of any proposal (pursuant to Rule 14a-8 under the Exchange Act or otherwise) for consideration by the Company’s shareholders or (B) conduct any referendum for consideration by the Company’s shareholders;

		
	(j)
	initiate or seek the convening of (or assist any other Person in the convening of) any meeting of the Company’s shareholders;

		
	(k)
	make any request for stock ledger or shareholder list materials or other books and records of the Company under any statutory or regulatory provisions providing for shareholder access to materials, books and records of the Company;

		
	(l)
	(i) make any public or private proposal with respect to or (ii) in a manner adverse to the Company, make any public statement or otherwise seek to encourage or advise or assist any Person in so encouraging or advising with respect to: (A) any change in the identity, number or term of directors serving on the Board or the filling of any vacancies on the Board, (B) any change in the capitalization or dividend policy of the Company, (C) any other change in the Company’s management, governance, corporate structure, affairs or policies, (D) any Extraordinary Transaction, (E) causing a class of securities of the Company to be delisted from, or to cease to be authorized to be quoted on, any securities exchange or (F) causing a class of equity securities of the Company to become eligible for termination of registration pursuant to Section 12(g)(4) of the Exchange Act;

		
	(m)
	institute, solicit, assist or join any litigation, arbitration or other proceeding against or involving the Company or any of its direct or indirect subsidiaries or any of their respective current or former directors or officers (including derivative actions) in order to effect, cause or take any of the actions expressly prohibited by this Paragraph 10; provided, however, that for the avoidance of doubt the foregoing shall not prevent any Restricted Person from (i) bringing litigation to enforce the provisions of this Agreement, (ii) making counterclaims with respect to any proceeding initiated by, or on behalf of, the Company against a Restricted Person, (iii) bringing bona fide commercial disputes that do not relate to the subject matter of this Agreement or the topics covered in the correspondence between the Company and the Restricted Persons prior to the date hereof or (iv) exercising statutory appraisal rights; provided, further, that the foregoing shall also not prevent the Restricted Persons from responding to or complying with a validly issued legal process;

		
	(n)
	make any request or submit any proposal to amend, waive or grant consent with respect to the terms of this Agreement, or refer to any desire or intention to do so; or

		
	(o)
	enter into any discussions, negotiations, agreements or understandings with any Third Party or assist, advise, act in concert with or participate with or encourage any Third Party, to take any action that the Elliott Parties are prohibited from taking pursuant to this Paragraph 10;

(A) provided, that the restrictions in this Paragraph 10 shall terminate automatically upon the earliest of (i) the Expiration Date; (ii) upon five (5) business days’ prior written notice delivered by Elliott to the Company following a material breach of this Agreement by the Company (including, without limitation, a failure to appoint or nominate the Selected Nominee and/or the Additional Nominee in accordance with Paragraph 1 or replacements in accordance with Paragraph 2, in each case, without giving effect to any determination by the Board that 

such appointment would violate the Board's fiduciary duties under applicable law) if such breach has not been cured within such notice period, provided that the Elliott Parties are not then in material breach of this Agreement; (iii) upon the announcement by the Company that it has entered into a definitive agreement with respect to any merger, consolidation, acquisition, business combination, sale of a division, sale of substantially all assets, recapitalization, restructuring, liquidation, dissolution or other similar extraordinary transaction that would, if consummated, result in the acquisition by any Person or group of Persons (other than any direct or indirect subsidiaries of the Company) of more than 50% of the Company common shares; (iv) the commencement of any tender or exchange offer (by a Person other than the Elliott Parties or their Affiliates) which, if consummated, would constitute an Extraordinary Transaction that would result in the acquisition by any person or group of more than 50% of the Company common shares, where the Company files a Schedule 14D-9 (or any amendment thereto), other than a “stop, look and listen” communication by the Company pursuant to Rule 14d-9(f) promulgated under the Exchange Act, that does not recommend that the Company’s shareholders reject such tender or exchange offer; (v) such time as the Company issues a preliminary proxy statement, definitive proxy statement or other proxy materials in connection with the 2017 Annual Meeting of Shareholders that are inconsistent with the Company’s obligations under this Agreement; and (vi) the adoption by the Board of any amendment to the Restated Certificate of Incorporation or Amended and Restated By-Laws of the Company that would reasonably be expected to substantially impair the ability of a shareholder to submit nominations for election to the Board or shareholder proposals in connection with any future Company Annual Meeting of Shareholders; and (B) provided, further, that that nothing contained herein shall prevent the Elliott Parties from making (i) any public or private statement or announcement with respect to an Extraordinary Transaction that is publicly announced by the Company or a Third Party, (ii) any public or private statement with respect to the Company’s business and operations, other than statements that are negative with respect to the Company or the Board, (iii) any factual statement as required by applicable legal process, subpoena, or legal requirement or as part of a response to a request for information from any governmental authority with jurisdiction over the party from whom information is sought (so long as such request did not arise as a result of discretionary acts by the Elliott Parties or any of their Affiliates) or (iv) any public or private statement commenting on the Company’s execution of and compliance with the terms of this Agreement.
		
	11.
	Private Communications; Confidentiality.  Notwithstanding anything to the contrary contained in Paragraph 10, during the Restricted Period, the Elliott Parties and their respective Affiliates may communicate privately with (a) any Third Party so long as such communications do not violate the terms of this Agreement and (b) the Company’s (i) directors, (ii) chief executive officer, chief financial officer, chief legal officer and head of investor relations and (iii) advisors at Evercore Partners and Sidley Austin LLP (collectively, the “Contact Personnel”), but in each case only so long as such private communications do not require any public disclosure thereof.  The Elliott Parties hereby agree that (i) any confidential or proprietary information of the Company that they or their Affiliates obtain in discussions with the Contact Personnel shall be kept confidential, shall be used solely for the purpose of monitoring and evaluating their investments in the Company and shall not be used to make Disparaging Statements and (ii) they and their Affiliates shall not, and shall cause their respective principals, directors, general partners, managing members, managers, officers and employees not to, make any request of any director of the Company to engage in, or consider engaging in, conduct that is inconsistent with the policies, duties and requirements contemplated by Paragraph 6 (but without being 

limited by Company Policies to the extent they provide that management (rather than directors) shall be responsible for engaging in communications with external constituencies).  The Company shall not adopt any new Company Policies that further restrict the ability of the Contact Personnel to engage in discussions with the Elliott Parties.
		
	12.
	Non-Disparagement.  During the Restricted Period, each of the Company and the Elliott Parties shall not make or cause to be made, and shall cause their respective Affiliates and its and their respective principals, directors, general partners, members, managers, officers and employees not to make or cause to be made, any expression, statement or announcement (including in any document or report filed with or furnished to the SEC or any stock exchange or through the press, media, analysts, investors or other Persons), either in writing or orally, that constitutes an ad hominem attack on, or otherwise disparages, defames, slanders, or impugns or is reasonably likely to damage the reputation of: (a) in the case of statements or announcements by any of the Elliott Parties: (i) the Company or any of its Affiliates, direct or indirect subsidiaries or advisors or any of its or their respective current or former shareholders, principals, directors, general partners, members, managers, officers, employees, agents or representatives; and (ii) the Company’s and its direct and indirect subsidiaries’ strategies, operations, products, performance or services; and (b) in the case of statements or announcements by the Company, the Elliott Parties, their respective Affiliates, directors, officers, principals, partners, members, managers, current or former shareholders, agents, representatives, and employees, or any Person who has served as an employee of the Elliott Parties (any such statement, a “Disparaging Statement”).  The foregoing shall not restrict the ability of any Person to comply with any subpoena or other legal process or respond to a request for information from any governmental authority with jurisdiction over the party from whom information is sought.

		
	13.
	Press Release.  Following the execution and delivery of this Agreement, the Company shall issue a press release in the form attached hereto as Exhibit A (the “Press Release”).  No Party shall make any statement inconsistent with the Press Release in connection with the announcement of this Agreement; provided that the foregoing shall not prevent (a) the Company or the Elliott Parties from taking any action required by any governmental or regulatory authority or stock exchange that has jurisdiction over the Company or any of its direct or indirect subsidiaries or the Elliott Parties, respectively (except to the extent such requirement arose by discretionary acts by any of the Company or any of the Elliott Parties or any of their respective Affiliates, respectively), and (b) the Company or the Elliott Parties from making any factual statement that is required in any compelled testimony or production of information, either by legal process, by subpoena or as part of a response to a request for information from any governmental authority with jurisdiction over the Company or any of its direct or indirect subsidiaries or the Elliott Parties, respectively, by any applicable stock exchange rule or as otherwise legally required.

		
	14.
	SEC Disclosure.  Following the execution and delivery of this Agreement, the Company shall file a Current Report on Form 8-K or include such disclosure in Item 5 of the Company’s Form 10-Q for the quarterly period ended June 30, 2016 that will report its entry into this Agreement (the “Filing”).  The relevant disclosure in the Filing shall be consistent with the Press Release and the terms of this Agreement, and shall each be in form and substance reasonably acceptable to the Company and the Elliott Parties.

		
	15.
	Representations and Warranties of the Company.  The Company represents and warrants to Elliott that: (a) the Company has the requisite corporate power and authority to execute this Agreement and any other documents or agreements to be entered into in connection with this Agreement and to bind it hereto and thereto; (b) this Agreement has been duly and 

validly authorized, executed and delivered by the Company, constitutes a valid and binding obligation and agreement of the Company and is enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles; and (c) the execution, delivery and performance of this Agreement by the Company does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to the Company or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which the Company is a party or by which it is bound.
		
	16.
	Representations and Warranties of Elliott Parties.  Each of the Elliott Parties represents and warrants to the Company that: (a) each Elliott Party and the authorized signatory of such Elliott Party set forth on the signature page hereto has the requisite power and authority to execute this Agreement and any other documents or agreements to be entered into in connection with this Agreement and to bind it hereto and thereto; (b) this Agreement has been duly authorized, executed and delivered by such Elliott Party, constitutes a valid and binding obligation and agreement of such Elliott Party and is enforceable against such Elliott Party in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles; (c) the execution, delivery and performance of this Agreement by such Elliott Party does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to Elliott or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which such Elliott Party is a party or by which it is bound; (d) the Selected Nominee (i) is not a principal, director, general partner, managing member, manager, officer, employee, agent or representative of any Elliott Party or any Affiliate of any Elliott Party, (ii) is not an investor in any Elliott Party or any Affiliate of any Elliott Party and (iii) has not served on the board of directors or comparable governing body of any company at the direction or pursuant to the designation of any Elliott Party or any Affiliate of any Elliott Party; (e) neither such Elliott Party nor any of its Affiliates (i) has paid any compensation to any Nominee or other member of the Board in connection with such Person’s service on the Board or (ii) has had any agreement, arrangement or understanding, written or oral, with any Nominee or other member of the Board pursuant to which such Person has been or will be compensated for his or her service as a director on, or nominee for election to, the Board or any committee thereof; and (f) as of the date of this Agreement, (i) the Elliott Parties beneficially own in the aggregate 16,411,491 Company common shares, (ii) the Elliott Parties have no other equity interest in, or rights or securities to acquire through exercise, conversion or otherwise, any equity interest in the Company and (iii) except as disclosed in writing by the Elliott Parties to the Company immediately prior to the execution of this Agreement, is a party to any swap or hedging transactions or other derivative agreements of any nature with respect to any Company common shares.

		
	17.
	Certain Defined Terms.  As used in this Agreement: (a) “Person” shall be interpreted broadly to include, without limitation, any individual, general or limited partnership, corporation, limited liability or unlimited liability company, joint venture, estate, trust, group, association or other entity of any kind or structure; (b) “Affiliate” shall have the meaning set forth in Rule 12b-2 under the Exchange Act and shall include Persons who become Affiliates of any Person subsequent to the date of this Agreement; (c) “beneficially own,” “beneficially owned” and “beneficial ownership” shall each have the meaning set forth in Rules 13d-3 and 13d-5(b)(1) under the Exchange Act (the foregoing, "Basic Beneficial Ownership"); provided that, with respect to Company common shares, a Person shall additionally be deemed to be the beneficial owner of (i) all Company common shares which such Person has the right to acquire (whether or not subject to the passage of time or other contingencies) pursuant to the exercise of any rights in connection with any securities or any agreement, arrangement or understanding, whether written or oral and (ii) any other economic exposure to the Company common shares, including through any swap or other derivative transaction that gives a Person the economic equivalent of ownership of Company common shares (including, without limitation, notional principal amount derivative agreements in the form of cash-settled swaps); (d) “business day” shall mean any day other than a Saturday, Sunday or a day on which the Federal Reserve Bank of New York is closed; (e) “Expiration Date” shall mean the one (1) year anniversary of the date of this Agreement; (f) “Extraordinary Transaction” shall mean any tender offer, exchange offer, merger, consolidation, acquisition, business combination, sale of a division, sale of substantially all assets, recapitalization, restructuring, liquidation, dissolution or other similar extraordinary transaction, in each case outside the ordinary course of business and involving the Company or any of its direct or indirect subsidiaries or its or their securities or assets; (g) “group” shall have the meaning set forth in Section 13(d) of the Exchange Act; and (h) “Third Party” means any Person other than a Party.

		
	18.
	Affiliates.  Each of the Elliott Parties agrees that it (a) shall cause its Affiliates to comply with the terms of this Agreement and (b) shall not cause or direct, or attempt to cause or direct, any Person, including any of its Affiliates and its and their respective principals, directors, general partners, managing members, managers, officers, employees, agents and representatives, to take any action that would be in breach or deemed breach of this Agreement if taken by such Elliott Party or any of its Affiliates.  The Company agrees that it (a) shall cause its subsidiaries to comply with the terms of this Agreement and (b) shall not cause or direct, or attempt to cause or direct, any Person, including any of its Affiliates and its and their respective principals, directors, general partners, managing members, managers, officers, employees, agents and representatives, to take any action that would be in breach or deemed breach of this Agreement if taken by such the Company or any of its Affiliates.

		
	19.
	Specific Performance.  Each of Elliott, on the one hand, and the Company, on the other hand, acknowledges and agrees that irreparable injury to the other Party would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached and that such injury would not be adequately compensable by the remedies available at law (including the payment of money damages).  It is accordingly agreed that Elliott, on the one hand, and the Company, on the other hand (as applicable, the “Moving Party”), shall each be entitled to specific enforcement of, and injunctive relief to prevent any violation of, the terms hereof, and the other Party shall not take action, directly or indirectly, in opposition to the Moving Party seeking such relief on the grounds that any other remedy or relief is available at law or in equity.  This Paragraph 19 is not the exclusive remedy for any violation of this Agreement.

		
	20.
	Expenses.  Each Party shall be responsible for its own fees and expenses incurred in connection with the negotiation, execution, delivery and effectuation of this Agreement and the transactions contemplated hereby.

		
	21.
	Severability.  If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the other provisions of this Agreement shall remain in full force and effect.  The Parties further agree to use their best efforts to agree upon and replace such invalid, void or unenforceable provision with a valid and enforceable provision that will achieve, to the extent possible, the purposes of such invalid, void or unenforceable provision.

		
	22.
	Notices.  Any notices, consents, determinations, waivers or other communications required or permitted to be given under the terms of this Agreement shall be in writing and shall be deemed to have been delivered: (a) upon delivery, when delivered personally; (b) upon sending, when sent by facsimile or electronic mail (provided confirmation of transmission is mechanically or electronically generated and retained by the sending party); or (c) one business day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the Party to receive the same as follows:

If to the Company:
PulteGroup, Inc.
3350 Peachtree Road NE, Suite 150
Atlanta, Georgia 30326
Facsimile No: (404) 978-6774
Email Address: Steve.Cook@PulteGroup.com
Attention: Steven M. Cook, Executive Vice President, Chief Legal Officer and Corporate Secretary

with a copy (which shall not constitute notice) to:
Sidley Austin LLP 
One South Dearborn
Chicago, Illinois 60603 
Facsimile No: (312) 853-7036
Email Address: tcole@sidley.com
swilliams@sidley.com
Attention:  Thomas A. Cole
Scott R. Williams 
If to the Elliott Parties:
Elliott Associates, L.P.
Elliott International, L.P.
40 West 57th Street
New York, New York 10019
Facsimile No: (212) 478-2401
Email: aCamporin@elliottmgmt.com
Attention: Austin Camporin

with a copy (which shall not constitute notice) to:
Elliott Associates, L.P.

Elliott International, L.P.
40 West 57th Street
New York, New York 10019
Facsimile No: (212) 478-1851
Attention: General Counsel

Schulte Roth & Zabel LLP
919 Third Avenue
New York, NY 10022
Facsimile No: (212) 593-5955
Email: marc.weingarten@srz.com; eleazer.klein@srz.com
Attention: Marc Weingarten and Eleazer Klein

		
	23.
	Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, except with respect to matters related to the voting of Company common shares and corporate governance matters (including fiduciary determinations) for which Michigan law shall apply, in each case without reference to the conflict of laws principles thereof that would result in the application of the laws of another jurisdiction.  Each of the Parties irrevocably agrees that any legal action or proceeding with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by any of the other Parties or its successors or assigns, shall be brought and determined exclusively in federal or state courts located in New York County, New York and any appellate court therefrom.  Each of the Parties hereby irrevocably submits with regard to any such action or proceeding for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction and venue of the aforesaid courts and agrees that it will not bring any action relating to this Agreement in any court other than the aforesaid courts.  Each of the Parties hereby irrevocably waives, and agrees not to assert in any action or proceeding with respect to this Agreement, (a) any claim that it is not personally subject to the jurisdiction of the aforesaid courts for any reason, (b) any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) to the fullest extent permitted by applicable legal requirements, any claim that (i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.

		
	24.
	Counterparts; Headings.  This Agreement may be executed in two or more counterparts, each of which shall be considered one and the same agreement and shall become effective when counterparts have been executed by each of the Parties and delivered to the other Party (including by means of electronic delivery or facsimile).  The paragraph headings contained in this Agreement are inserted for convenience of reference only and shall not affect the meaning or interpretation of this Agreement.

		
	25.
	Entire Agreement; Amendment and Waiver; Cumulative Remedies; Successors and Assigns; Third Party Beneficiaries; Waiver of Jury Trial.  This Agreement is the only agreement and contains the entire understanding of the Parties with respect to its subject matter and supersedes any prior agreements (including any confidentiality agreements previously entered into by the Parties), understandings, negotiations and discussions, 

whether oral or written, with respect thereto.  There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings between the Parties with respect to the subject matter of this Agreement other than those expressly set forth herein.  No amendments, modifications, supplements or waivers of any provisions of this Agreement can be made except in writing signed by an authorized representative of each the Parties affected thereby.  Any waiver by any Party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement.  No failure on the part of any Party to exercise or enforce, and no delay in exercising or enforcing, any right, obligation, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise or enforcement of such right, obligation, power or remedy by such Party preclude any other or further exercise or enforcement thereof or the exercise or enforcement of any other right, obligation, power or remedy.  All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law.  The terms and conditions of this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors, heirs, executors, legal representatives and permitted assigns.  No Party shall assign this Agreement or any rights or obligations hereunder without, with respect to any Elliott Party, the prior written consent of the Company, and, with respect to the Company, the prior written consent of the Elliott Parties.  Any purported assignment of this Agreement or any rights or obligations hereunder without such respective consent shall be void.  This Agreement is solely for the benefit of the Parties and is not enforceable by any other Persons.  Each of the Parties, after consulting or having had the opportunity to consult with counsel, knowingly, voluntarily and intentionally waives any right that such Party may have had or have to a trial by jury in any litigation based on or arising out of this Agreement or any related instrument or agreement, or any of the transactions contemplated thereby, or any related course of conduct, dealing, statements (whether oral or written) or actions of any of them.  No Party shall seek to consolidate, by counterclaim or otherwise, any action in which a jury trial has been waived with any other action in which a jury trial cannot be or has not been waived.
		
	26.
	Interpretation.  Each of the Parties acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution and delivery of this Agreement and that it has executed this Agreement with the advice of such counsel.  Each Party and its counsel cooperated and participated in the drafting and preparation of this Agreement, and any and all drafts relating thereto exchanged among the Parties shall be deemed the work product of all of the Parties and may not be construed against any Party by reason of its drafting or preparation.  Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any Party that drafted or prepared it is of no application and is hereby expressly waived by each of the Parties, and any controversy over interpretations of this Agreement shall be decided without regard to events of drafting or preparation.

[Signature page follows.]

	
			
	 
	 
	 

[Signature Page to Settlement Letter Agreement]

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized signatories of the Parties as of the date hereof.
PULTEGROUP, INC.

By:    /s/ Richard J. Dugas, Jr.    
Name:  Richard J. Dugas, Jr.
Title:    Chairman and Chief Executive Officer

ELLIOTT ASSOCIATES, L.P.
		
	By: 
	Elliott Capital Advisors, L.P., as General Partner

		
	By: 
	Braxton Associates, Inc., as General Partner

By:      /s/ Elliot Greenberg    
Name:  Elliot Greenberg
Title:    Vice President

ELLIOTT INTERNATIONAL, L.P.
		
	By: 
	Elliott International Capital Advisors Inc., as Attorney-in-Fact

By:      /s/ Elliot Greenberg    
Name:  Elliot Greenberg
Title:    Vice President

	
			
	 
	 
	 

Schedule A
Share Repurchase Program Schedule

	
		
	Fiscal Period
	Amount

	3rd Quarter 2016
	$250 million

	4th Quarter 2016
	$250 million

	2017
	$1.0 billion

Exhibit A
Press Release
See attached.

	
		
	FOR IMMEDIATE RELEASE
	Company Contact

	 
	Investors:  Jim Zeumer

	 
	(404) 978-6434

	 
	          Email:  jim.zeumer@pultegroup.com

	 
	 

PULTEGROUP REPORTS SECOND QUARTER 2016 FINANCIAL RESULTS,
ANNOUNCES NEXT PHASE OF VALUE CREATION PLAN
AND ADDS THREE EXPERIENCED EXECUTIVES TO ITS BOARD OF DIRECTORS

		
	•
	Reported Q2 Net Income of $0.34 Per Share Includes $0.03 Per Share of Land and Corporate Office Relocation Charges; Prior Year Net Income of $0.28 Per Share Included a Benefit of $0.05 Per Share Relating to a Legal Settlement

		
	•
	Home Sale Revenues Increased 41% to $1.8 Billion; Closings Increased 27% to 4,772 Homes

		
	•
	Value of Net New Orders Increased 21% to $2.1 Billion; Net New Orders Up 11% to 5,697 Homes

		
	•
	Backlog Value Increased 21% to $3.7 Billion; Unit Backlog Increased 8% to 9,679 Homes  

		
	•
	Company Announces Next Phase of Value Creation with Plans to Drive Greater Overhead Leverage, Moderate the Growth of Future Land Investment and Increase Share Repurchase Activities Consistent with Stated Capital Allocation Priorities 

		
	•
	Company Increases Share Repurchase Authorization by $1.0 Billion to $1.5 Billion and Intends to Repurchase $1.5 Billion of its Shares by End of 2017

		
	•
	Company Adds 3 New Independent Directors, Bringing Additional Industry and Financial Expertise to its Board

ATLANTA - July 21, 2016 - PulteGroup, Inc. (NYSE: PHM) announced today financial results for its second quarter ended June 30, 2016.  For the quarter, the Company’s reported net income of $118 million, or $0.34 per share, included pretax charges of $15 million, or $0.03 per share, associated with the termination of certain pending land transactions and recognition of final costs associated with its corporate relocation.  Prior year net income of $103 million, or $0.28 per share, included a pretax benefit of $27 million, or $0.05 per share, resulting from a legal settlement realized in the period.

“Building on our strong Q1 results, PulteGroup posted another quarter of significant year-over-year growth in signups, closings, revenues and earnings,” said Richard J. Dugas, Jr., Chairman and Chief Executive Officer of PulteGroup.  “Equally important, given the 21% increase in our backlog value to $3.7 billion, we believe the Company is well positioned to deliver outstanding full year performance in 2016.”

“We remain optimistic about the direction of the overall housing market and expect that current economic conditions, continued job formations and low interest rates can support slow and steady growth in housing demand for the next several years.  Against this backdrop, we believe that our prior period land investments position us well for continued strong earnings growth.”

Second Quarter Results

Home sale revenues for the second quarter increased 41% over the prior year to $1.8 billion.  Higher revenues for the period were driven by a 27% increase in deliveries to 4,772 homes, combined with an 11% increase in average selling price to $367,000.

The Company’s second quarter home sale gross margin was 21.5%, which is in line with Company guidance.  Margins for the quarter were reduced by approximately 70 basis points as a result of closings associated with the Company’s purchase of substantially all of the assets of John Wieland Homes and Communities in January 2016.  

Homebuilding SG&A expense for the quarter was $192 million, or 11.0% of home sale revenues.  Prior year SG&A of $130 million, or 10.5% of home sale revenues, included a benefit of $27 million relating to a legal settlement realized in the period.  

The value of net new orders in the second quarter increased 21% to $2.1 billion.  On a unit basis, net new orders for the period increased 11% to 5,697 homes.  The Company operated out of 700 communities in the quarter, an increase of 11% from the second quarter of 2015.

Backlog value increased 21% over the prior year to $3.7 billion, while the number of homes in backlog increased 8% to 9,679 homes.  The average price of homes in backlog was $387,000, which is up 13% over last year and up 5% from the average selling price of homes delivered in the current quarter.

The Company's financial services operations reported second quarter pretax income of $17 million compared with $10 million in 2015.  Higher pretax income for the period was the result of higher closing volumes in the Company’s homebuilding operations and a favorable interest rate environment.  Mortgage capture rate for the quarter was 81%, compared with 83% in the prior year.

During the quarter, PulteGroup repurchased 2.6 million common shares for $48 million, or an average price of $18.53 per share.  The Company also used available cash to retire $465 million of bonds which matured during the second quarter.  

PulteGroup announced today that its Board approved increasing its existing share repurchase authorization by $1.0 billion, bringing the total authorization to $1.5 billion.  At the end of the second quarter, the Company had $507 million available under the existing repurchase authorization.  The Company expects that share repurchases will be made from time to time in the open market, through privately negotiated transactions or otherwise subject to market conditions, applicable legal requirements, and other relevant factors.

Company Announces Next Phase of Value Creation

The Company also announced the next phase of its Value Creation strategy, with plans to drive greater overhead leverage, moderate the growth of future land investment, and increase share repurchase activities consistent with stated capital allocation priorities.  These actions build on the highly successful initiatives it launched in 2011 in support of efforts to deliver higher returns on invested capital.  As part of its Value Creation strategy, the Company established its capital allocation priorities which include investing in high returning projects, while routinely returning funds to shareholders through dividends and systematic share repurchases.  Since launching Value Creation, the Company has seen its gross margins, its operating margins, and its returns increase to 

be among the industry leaders, and it has returned over $1.2 billion to shareholders through dividends and share buy backs.  

“Through our Value Creation strategy, PulteGroup has realized tremendous gains in its operating and financial performance, which is what ultimately drives returns for our shareholders,” said Mr. Dugas.  “After our initial focus on improving our operating and balance sheet metrics, we transitioned to increasing investment into the business in support of profitable growth.  Increased land investment over the past 24 to 36 months is resulting in substantial growth in 2016 volumes, revenues and profitability, and we believe has the Company well positioned for continued earnings growth over the next few years.”

“As we now look ahead and begin planning for the next successful phase of Value Creation, we are implementing the following actions:

		
	•
	We plan to slow the rate of growth in our land spend going forward, and use expected strong cash flows from operations to help fund the repurchase of $1.5 billion of our shares over the next six quarters;

		
	•
	We are taking actions to lower our SG&A spend from an expected 10% of home sale revenues in 2016 to a targeted rate of 9% or less of 2017 home sale revenues;

		
	•
	Our Board of Directors has approved a $1.0 billion increase in the Company’s share repurchase authorization raising our total authorization to $1.5 billion. The Company plans to repurchase $250 million of its shares in each of the third and fourth quarters of 2016 and $1.0 billion of its shares in 2017;

		
	•
	And, as announced in a separate release, we have added three new directors: John Peshkin, who has over 30 years of direct homebuilding experience including having served as CEO of Taylor Woodrow Homes and on the Boards of Standard Pacific Homes and WCI Communities; Joshua Gotbaum, who has served in a number of senior private and public sector roles; and Scott Powers, who has over 30 years of experience in financial asset management and most recently served as president and CEO of State Street Global Advisors.”

Elliott Management Comments on Company Actions

“We appreciate PulteGroup’s ongoing efforts to run a more efficient homebuilding business and toward building long-term shareholder value,” said Dave Miller, Senior Portfolio Manager at Elliott Management.  “The addition of these proven executives to the Board, along with PulteGroup’s continued focus on improving operations, unlocking the value of its asset base and accretive capital return will drive significant value for shareholders.” 
    
The Company and affiliates of Elliott Management, which recently acquired 4.7% of PulteGroup shares, have entered into an agreement that provides, among other things, that Elliott will support the Company’s slate of director nominees at the Company’s 2017 Annual Meeting of Shareholders.  

Company Updates CEO search

PulteGroup announced that newly named Board members John Peshkin and Josh Gotbaum will be added to the Company’s previously established CEO search committee.  “We look forward to having the perspectives of two experienced senior leaders such as John and Josh added to the committee,” stated Patrick J. O’Leary, PulteGroup director and search committee leader.  “Our committee is making good progress and we look forward to completing our evaluation of internal and external candidates.”  

A conference call discussing PulteGroup's second quarter 2016 results is scheduled for Thursday, July 21, 2016, at 8:30 a.m. Eastern Time.  Interested investors can access the live webcast via PulteGroup's corporate website at www.pultegroupinc.com.

Forward-Looking Statements

This press release includes "forward-looking statements."  These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements.  You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events.  Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "may," "can," "could," "might," "will" and similar expressions identify forward-looking statements, including statements related to expected operating and performing results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future.

Such risks, uncertainties and other factors include, among other things: interest rate changes and the availability of mortgage financing; continued volatility in the debt and equity markets; competition within the industries in which PulteGroup operates; the availability and cost of land and other raw materials used by PulteGroup in its homebuilding operations; the impact of any changes to our strategy in responding to the cyclical nature of the industry, including any changes regarding our land positions and the rate of growth in land spend; the availability and cost of insurance covering risks associated with PulteGroup's businesses; shortages and the cost of labor; weather related slowdowns; slow growth initiatives and/or local building moratoria; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans; the interpretation of or changes to tax, labor and environmental laws; economic changes nationally or in PulteGroup's local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; legal or regulatory proceedings or claims; our ability to generate sufficient cash flow in order to successfully implement our capital allocation priorities; required accounting changes; terrorist acts and other acts of war; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature.  See PulteGroup's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and other public filings with the Securities and Exchange Commission (the "SEC") for a further discussion of these and other risks and uncertainties applicable to our businesses.  PulteGroup undertakes no duty to update any forward-looking statement, whether as a result of new information, future events or changes in PulteGroup's expectations.

About PulteGroup

PulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one of America's largest homebuilding companies with operations in approximately 50 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes and John Wieland Homes and Neighborhoods, the Company is one of the industry's most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup conducts extensive research to provide homebuyers with innovative solutions and consumer inspired homes and communities to make lives better.

For more information about PulteGroup, Inc. and PulteGroup brands, go to www.pultegroupinc.com;
www.pulte.com; www.centex.com; www.delwebb.com; www.divosta.com and www.jwhomes.com.

# # #

	PulteGroup, Inc.
Consolidated Results of Operations
($000's omitted, except per share data)
(Unaudited)

																
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Three Months Ended
	 
	Six Months Ended

	 
	June 30,
	 
	June 30,

	 
	2016
	 
	2015
	 
	2016
	 
	2015

	Revenues:
	 
	 
	 
	 
	 
	 
	 

	Homebuilding
	 
	 
	 
	 
	 
	 
	 

	Home sale revenues
	$
	1,751,882
	

	 
	$
	1,243,077
	

	 
	$
	3,146,125
	

	 
	$
	2,331,235
	

	Land sale revenues
	4,950
	

	 
	6,460
	

	 
	7,437
	

	 
	24,002
	

	 
	1,756,832
	

	 
	1,249,537
	

	 
	3,153,562
	

	 
	2,355,237
	

	Financial Services
	43,082
	

	 
	30,754
	

	 
	78,930
	

	 
	58,352
	

	Total revenues
	1,799,914
	

	 
	1,280,291
	

	 
	3,232,492
	

	 
	2,413,589
	

	 
	 
	 
	 
	 
	 
	 
	 

	Homebuilding Cost of Revenues:
	 
	 
	 
	 
	 
	 
	 

	Home sale cost of revenues
	1,374,509
	

	 
	953,280
	

	 
	2,463,838
	

	 
	1,794,425
	

	Land sale cost of revenues
	4,403
	

	 
	5,312
	

	 
	6,430
	

	 
	18,691
	

	 
	1,378,912
	

	 
	958,592
	

	 
	2,470,268
	

	 
	1,813,116
	

	Financial Services expenses
	26,180
	

	 
	20,767
	

	 
	52,298
	

	 
	43,308
	

	Selling, general, and administrative expenses
	192,333
	

	 
	130,119
	

	 
	383,348
	

	 
	291,431
	

	Other expense (income), net
	12,909
	

	 
	3,186
	

	 
	18,785
	

	 
	2,303
	

	Income before income taxes
	189,580
	

	 
	167,627
	

	 
	307,793
	

	 
	263,431
	

	Income tax expense
	71,820
	

	 
	64,303
	

	 
	106,733
	

	 
	105,136
	

	Net income
	$
	117,760
	

	 
	$
	103,324
	

	 
	$
	201,060
	

	 
	$
	158,295
	

	 
	 
	 
	 
	 
	 
	 
	 

	Per share:
	 
	 
	 
	 
	 
	 
	 

	Basic earnings
	$
	0.34
	

	 
	$
	0.28
	

	 
	$
	0.58
	

	 
	$
	0.43
	

	Diluted earnings
	$
	0.34
	

	 
	$
	0.28
	

	 
	$
	0.57
	

	 
	$
	0.43
	

	Cash dividends declared
	$
	0.09
	

	 
	$
	0.08
	

	 
	$
	0.18
	

	 
	$
	0.16
	

	 
	 
	 
	 
	 
	 
	 
	 

	Number of shares used in calculation:
	 
	 
	 
	 
	 
	 
	 

	Basic
	345,240
	

	 
	361,009
	

	 
	346,528
	

	 
	363,863
	

	Effect of dilutive securities
	2,759
	

	 
	3,232
	

	 
	2,710
	

	 
	3,297
	

	Diluted
	347,999
	

	 
	364,241
	

	 
	349,238
	

	 
	367,160
	

	PulteGroup, Inc.
Condensed Consolidated Balance Sheets
($000's omitted)
(Unaudited)

								
	 
	June 30, 
2016
	 
	December 31, 
2015

	 
	 
	 
	 

	ASSETS
	 
	 
	 

	 
	 
	 
	 

	Cash and equivalents
	$
	229,187
	

	 
	$
	754,161
	

	Restricted cash
	26,484
	

	 
	21,274
	

	House and land inventory
	6,629,464
	

	 
	5,450,058
	

	Land held for sale
	85,781
	

	 
	81,492
	

	Residential mortgage loans available-for-sale
	364,004
	

	 
	442,715
	

	Investments in unconsolidated entities
	52,500
	

	 
	41,267
	

	Other assets
	681,168
	

	 
	660,835
	

	Intangible assets
	161,372
	

	 
	110,215
	

	Deferred tax assets, net
	1,277,096
	

	 
	1,394,879
	

	 
	$
	9,507,056
	

	 
	$
	8,956,896
	

	 
	 
	 
	 

	LIABILITIES AND SHAREHOLDERS’ EQUITY
	 
	 
	 

	 
	 
	 
	 

	Liabilities:
	 
	 
	 

	Accounts payable
	$
	340,847
	

	 
	$
	327,725
	

	Customer deposits
	252,259
	

	 
	186,141
	

	Accrued and other liabilities
	1,269,263
	

	 
	1,284,273
	

	Income tax liabilities
	33,980
	

	 
	57,050
	

	Financial Services debt
	189,557
	

	 
	267,877
	

	Term loan
	499,212
	

	 
	498,423
	

	Senior notes
	2,103,821
	

	 
	1,576,082
	

	 
	4,688,939
	

	 
	4,197,571
	

	Shareholders' equity
	4,818,117
	

	 
	4,759,325
	

	 
	$
	9,507,056
	

	 
	$
	8,956,896
	

	PulteGroup, Inc.
Consolidated Statements of Cash Flows
($000's omitted)
(Unaudited)

								
	 
	Six Months Ended

	 
	June 30,

	 
	2016
	 
	2015

	Cash flows from operating activities:
	 
	 
	 

	Net income
	$
	201,060
	

	 
	$
	158,295
	

	Adjustments to reconcile net income to net cash from operating activities:
	 
	 
	 

	Deferred income tax expense
	117,783
	

	 
	103,059
	

	Depreciation and amortization
	26,705
	

	 
	21,853
	

	Share-based compensation expense
	16,906
	

	 
	14,654
	

	Other, net
	9,790
	

	 
	9,319
	

	Increase (decrease) in cash due to:
	 
	 
	 

	Restricted cash
	(5,210
	)
	 
	(4,526
	)

	Inventories
	(810,417
	)
	 
	(485,676
	)

	Residential mortgage loans available-for-sale
	78,460
	

	 
	70,123
	

	Other assets
	(15,506
	)
	 
	(57,054
	)

	Accounts payable, accrued and other liabilities
	55,113
	

	 
	(21,150
	)

	Net cash provided by (used in) operating activities
	(325,316
	)
	 
	(191,103
	)

	Cash flows from investing activities:
	 
	 
	 

	Capital expenditures
	(21,044
	)
	 
	(23,115
	)

	Cash used for business acquisition
	(430,025
	)
	 
	—
	

	Other investing activities, net
	(8,296
	)
	 
	14,650
	

	Net cash used in investing activities
	(459,365
	)
	 
	(8,465
	)

	Cash flows from financing activities:
	 
	 
	 

	Proceeds from debt issuance
	986,084
	

	 
	—
	

	Repayments of debt
	(484,974
	)
	 
	(237,994
	)

	Borrowings under revolving credit facility
	358,000
	

	 
	—
	

	Repayments under revolving credit facility
	(358,000
	)
	 
	—
	

	Financial Services borrowings (repayments)
	(78,320
	)
	 
	(20,970
	)

	Stock option exercises
	742
	

	 
	7,222
	

	Share repurchases
	(100,806
	)
	 
	(322,066
	)

	Dividends paid
	(63,019
	)
	 
	(59,125
	)

	Net cash provided by (used in) financing activities
	259,707
	

	 
	(632,933
	)

	Net increase (decrease) in cash and equivalents
	(524,974
	)
	 
	(832,501
	)

	Cash and equivalents at beginning of period
	754,161
	

	 
	1,292,862
	

	Cash and equivalents at end of period
	$
	229,187
	

	 
	$
	460,361
	

	 
	 
	 
	 

	Supplemental Cash Flow Information:
	 
	 
	 

	Interest paid (capitalized), net
	$
	(14,671
	)
	 
	$
	(1,911
	)

	Income taxes paid (refunded), net
	$
	(5,457
	)
	 
	$
	(1,685
	)

	PulteGroup, Inc.
Segment Data
($000's omitted)
(Unaudited)

																
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Three Months Ended
	 
	Six Months Ended

	 
	June 30,
	 
	June 30,

	 
	2016
	 
	2015
	 
	2016
	 
	2015

	HOMEBUILDING:
	 
	 
	 
	 
	 
	 
	 

	Home sale revenues
	$
	1,751,882
	

	 
	$
	1,243,077
	

	 
	$
	3,146,125
	

	 
	$
	2,331,235
	

	Land sale revenues
	4,950
	

	 
	6,460
	

	 
	7,437
	

	 
	24,002
	

	Total Homebuilding revenues
	1,756,832
	

	 
	1,249,537
	

	 
	3,153,562
	

	 
	2,355,237
	

	 
	 
	 
	 
	 
	 
	 
	 

	Home sale cost of revenues
	1,374,509
	

	 
	953,280
	

	 
	2,463,838
	

	 
	1,794,425
	

	Land sale cost of revenues
	4,403
	

	 
	5,312
	

	 
	6,430
	

	 
	18,691
	

	Selling, general, and administrative expenses
	192,333
	

	 
	130,119
	

	 
	383,348
	

	 
	291,431
	

	Other expense (income), net
	13,041
	

	 
	3,186
	

	 
	18,967
	

	 
	2,303
	

	Income before income taxes
	$
	172,546
	

	 
	$
	157,640
	

	 
	$
	280,979
	

	 
	$
	248,387
	

	 
	 
	 
	 
	 
	 
	 
	 

	FINANCIAL SERVICES:
	 
	 
	 
	 
	 
	 
	 

	Income before income taxes
	$
	17,034
	

	 
	$
	9,987
	

	 
	$
	26,814
	

	 
	$
	15,044
	

	 
	 
	 
	 
	 
	 
	 
	 

	CONSOLIDATED:
	 
	 
	 
	 
	 
	 
	 

	Income before income taxes
	$
	189,580
	

	 
	$
	167,627
	

	 
	$
	307,793
	

	 
	$
	263,431
	

	PulteGroup, Inc.
Segment Data, continued
($000's omitted)
(Unaudited) 

																
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Three Months Ended
	 
	Six Months Ended

	 
	June 30,
	 
	June 30,

	 
	2016
	 
	2015
	 
	2016
	 
	2015

	 
	 
	 
	 
	 
	 
	 
	 

	Home sale revenues
	$
	1,751,882
	

	 
	$
	1,243,077
	

	 
	$
	3,146,125
	

	 
	$
	2,331,235
	

	 
	 
	 
	 
	 
	 
	 
	 

	Closings - units
	 
	 
	 
	 
	 
	 
	 

	Northeast
	310
	

	 
	316
	

	 
	572
	

	 
	564
	

	Southeast (a)
	1,025
	

	 
	772
	

	 
	1,851
	

	 
	1,384
	

	Florida
	767
	

	 
	597
	

	 
	1,512
	

	 
	1,198
	

	Midwest
	786
	

	 
	659
	

	 
	1,338
	

	 
	1,228
	

	Texas
	923
	

	 
	754
	

	 
	1,698
	

	 
	1,500
	

	West
	961
	

	 
	646
	

	 
	1,746
	

	 
	1,235
	

	 
	4,772
	

	 
	3,744
	

	 
	8,717
	

	 
	7,109
	

	Average selling price
	$
	367
	

	 
	$
	332
	

	 
	$
	361
	

	 
	$
	328
	

	 
	 
	 
	 
	 
	 
	 
	 

	Net new orders - units
	 
	 
	 
	 
	 
	 
	 

	Northeast
	352
	

	 
	443
	

	 
	730
	

	 
	880
	

	Southeast (a)
	1,016
	

	 
	1,041
	

	 
	2,068
	

	 
	1,979
	

	Florida
	1,011
	

	 
	805
	

	 
	1,934
	

	 
	1,716
	

	Midwest
	1,059
	

	 
	830
	

	 
	2,053
	

	 
	1,593
	

	Texas
	1,036
	

	 
	993
	

	 
	2,157
	

	 
	2,110
	

	West
	1,223
	

	 
	1,006
	

	 
	2,407
	

	 
	1,979
	

	 
	5,697
	

	 
	5,118
	

	 
	11,349
	

	 
	10,257
	

	Net new orders - dollars (b)
	$
	2,142,024
	

	 
	$
	1,766,848
	

	 
	$
	4,255,995
	

	 
	$
	3,475,238
	

	 
	 
	 
	 
	 
	 
	 
	 

	Unit backlog
	 
	 
	 
	 
	 
	 
	 

	Northeast
	 
	 
	 
	 
	602
	

	 
	777
	

	Southeast (a)
	 
	 
	 
	 
	1,679
	

	 
	1,563
	

	Florida
	 
	 
	 
	 
	1,696
	

	 
	1,520
	

	Midwest
	 
	 
	 
	 
	1,804
	

	 
	1,553
	

	Texas
	 
	 
	 
	 
	1,804
	

	 
	1,883
	

	West
	 
	 
	 
	 
	2,094
	

	 
	1,702
	

	 
	 
	 
	 
	 
	9,679
	

	 
	8,998
	

	Dollars in backlog
	 
	 
	 
	 
	$
	3,749,299
	

	 
	$
	3,087,862
	

	 
	 
	 
	 
	 
	 
	 
	 

		
	(a)
	Southeast includes the acquisition in January 2016 of substantially all of the assets of JW Homes ("Wieland").

		
	(b)
	Net new orders excludes backlog acquired from Wieland in January 2016. Net new order dollars represent a composite of new order dollars combined with other movements of the dollars in backlog related to cancellations and change orders.

	PulteGroup, Inc.
Segment Data, continued
($000's omitted)
(Unaudited)

																
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Three Months Ended
	 
	Six Months Ended

	 
	June 30,
	 
	June 30,

	 
	2016
	 
	2015
	 
	2016
	 
	2015

	MORTGAGE ORIGINATIONS:
	 
	 
	 
	 
	 
	 
	 

	Origination volume
	3,158
	

	 
	2,507
	

	 
	5,706
	

	 
	4,623
	

	Origination principal
	$
	868,671
	

	 
	$
	635,153
	

	 
	$
	1,535,317
	

	 
	$
	1,149,941
	

	Capture rate
	80.6
	%
	 
	83.4
	%
	 
	80.8
	%
	 
	82.5
	%

	Supplemental Data
($000's omitted)
(Unaudited)

																
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Three Months Ended
	 
	Six Months Ended

	 
	June 30,
	 
	June 30,

	 
	2016
	 
	2015
	 
	2016
	 
	2015

	 
	 
	 
	 
	 
	 
	 
	 

	Interest in inventory, beginning of period
	$
	158,653
	

	 
	$
	166,887
	

	 
	$
	149,498
	

	 
	$
	167,638
	

	Interest capitalized
	38,231
	

	 
	31,296
	

	 
	73,515
	

	 
	62,099
	

	Interest expensed
	(29,396
	)
	 
	(33,799
	)
	 
	(55,525
	)
	 
	(65,353
	)

	Interest in inventory, end of period
	$
	167,488
	

	 
	$
	164,384
	

	 
	$
	167,488
	

	 
	$
	164,384

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}]]