EXHIBIT 10.19(h)

FORM OF SEVEN YEAR CONVERTIBLE NOTE HEDGE AMENDMENT

 

 

 

A

 

B

 

Contract #

 

Terminated Transaction
US$ Value

 

Number of Shares Delivered
by Party A

 

1

 

 

33,000,000

 

 

 

240,086

 

 

2

 

 

49,000,000

 

 

 

356,492

 

 

3

 

 

17,363,000

 

 

 

126,322

 

 

4

 

 

43,200,000

 

 

 

314,295

 

 

5

 

 

1,800,000

 

 

 

13,096

 

 

6

 

 

31,000,000

 

 

 

225,536

 

 

 

--------------------------------------------------------------------------------

December 13, 2006

 

Credit Suisse International

(formerly known as Credit Suisse First Boston International)

One Cabot Square

London E14 4QJ

England

Cephalon, Inc.

41 Moores Road

P.O. Box 4011

Frazer, Pennsylvania

19355

Re: Cephalon, Inc. Zero Coupon Convertible Subordinated Notes due June 15, 2033,
first putable June 15, 2010 (“Reference Notes”)

Ladies and Gentlemen,

Reference is made to the convertible bond hedge transaction (the “Transaction”)
entered into by Credit Suisse International (“Party A”) and Cephalon Inc.
(“Party B”) pursuant to an ISDA confirmation dated as of June 6, 2003, as
amended by the amendment dated as of December 3, 2004, with respect to the
Reference Notes (the “Confirmation”).  Capitalized terms used herein without
definition shall have the meanings assigned to them in the Confirmation.

Pursuant to Section 4(b) of the Confirmation, the portion of the Transaction in
respect of [A] principal amount of the Exchanged Reference Notes is hereby
terminated (such terminated portion, the “Terminated Transaction”). 
Notwithstanding provisions of Section 6(b) of the Agreement relating to notice,
Party A and Party B hereby agree that the date of this letter shall be the Early
Termination Date in respect of the Terminated Transaction. “Exchanged Reference
Notes” means References Notes that are no longer outstanding as a result of the
occurrence of a Repayment Event on December 13, 2006.

Notwithstanding anything to the contrary in the Agreement and Confirmation with
respect to the Terminated Transaction, Party A agrees to deliver to Party B, in
satisfaction of Party A’s payment obligation under the Terminated Transaction,
through the Agent, [B] Shares on the date that is the third business day
following the date of this letter; provided that Party A shall have the right to
set off its delivery obligation hereunder against any right Party A may have
against Party B to receive delivery of Shares from Party B under any Equity
Transaction that is terminated on the date hereof.  “Equity Transaction” means
any transaction in Shares that qualifies as equity under applicable accounting
rules.

1

--------------------------------------------------------------------------------

In addition, Party B hereby represents and warrants to Party A that Party B is
not, on the date hereof, aware of any material nonpublic information concerning
the Issuer or the Shares.

2

--------------------------------------------------------------------------------

Please indicate your agreement with the terms set forth in this letter by
signing below.

Sincerely Yours,

CREDIT SUISSE INTERNATIONAL (Party A)

By:

/s/ Martin Cox

 

Name:

Martin Cox

 

Title:

Vice President, Complex Product Support

 

 

 

 

 

 

 

By:

/s/ Karen Quick

 

Name:

Karen Quick

 

Title:

Vice President, Complex Product Support

 

CREDIT SUISSE SECURITIES (USA) LLC, acting through its New York branch and
solely in its capacity as Agent

By:

/s/ Melissa Garcia

 

Name:

Melissa Garcia

 

Title:

Asst. Vice President, Complex Product Support

 

 

 

 

 

 

 

By:

/s/ Anthony Fisher

 

Name:

Anthony Fisher

 

Title:

Vice President, Complex Product Support

 

CEPHALON, INC. (Party B)

By:

/s/ J. Kevin Buchi

 

Name:

J. Kevin Buchi

 

Title:

Executive Vice President & CFO

 

 

 

 

 

 

 

By:

/s/ Bryan Reasons

 

Name:

Bryan Reasons

 

Title:

Vice President, Risk Management

 

 

3

--------------------------------------------------------------------------------