Pershing Square Activist Presentation Deck

Allergan's Poorly Designed Executive Compensation Program (Cont.) Time-Vested Stock Options ■ Time-vested options comprise nearly all of senior management's long- term equity compensation The options have no performance trigger The options are issued at the money, making them valuable even if Allergan's share price growth is meager over the life of the option Inadequate TSR Trigger (on one-time grants) ■ In 2012, CEO Pyott was granted 165,000 restricted stock units to "recognize over a decade of outstanding performance" ■ To achieve maximum vesting, total shareholder return must be 9% over a five year period ■9% is below the 10% minimum TSR Valeant must achieve for any of management's restricted stock to vest 90

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