Item 1.01. Entry into a Material Definitive Agreement.

On July 1, 2009, Watson Pharmaceuticals, Inc. ("Watson") entered into Amendment No. 1 (the "Amendment") to the Credit Agreement, dated as of November 3, 2006, by and among Watson, Canadian Imperial Bank of Commerce, acting through its New York agency, as administrative agent, Wachovia Capital Markets, LLC, as syndication agent, a syndicate of lenders, and Wells Fargo Bank, National Association, Union Bank of California, N.A., Sumitomo Mitsui Banking Corporation, as documentation agents and the financial institutions from time to time party thereto (the "Credit Agreement").
The Amendment provides for, among other things, the following:
• an increase in Watson's ability to incur general unsecured indebtedness from $100 million to $500 million;

• the exclusion from the restrictions on "Indebtedness" under the Credit Agreement of a principal amount of up to $151.4 million of certain acquired indebtedness expected to be acquired in connection with the previously announced acquisition of the Arrow Group and certain post-closing payment obligations expected to be incurred by Watson in connection with the acquisition of Arrow Group;

• certain modifications and clarifications with respect to the terms of refinancing Watson's outstanding indebtedness; and

• the repayment by Watson of $100 million of the outstanding term loan on or before the later of (x) September 15, 2009 and (y) two business days after the closing of certain financing transactions; but in any event not later than December 16, 2009.

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