Document:

GLOBAL NOTE

 

Exhibit 4 (c)(v)

CUSIP NO. 806605AG6

ISIN NO. US806605AG68

NO. 1

SCHERING-PLOUGH CORPORATION

6.50% GLOBAL SENIOR NOTE DUE 2033

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND SUCH
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME
AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY, ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL, SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
CERTIFICATED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY
THE DEPOSITORY TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO THE DEPOSITORY
OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE
TO A SUCCESSOR OF THE DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR.

     SCHERING-PLOUGH CORPORATION, a New Jersey corporation (herein referred to
as the “Company,” which term includes any successor corporation under the

 

 

Indenture hereinafter referred to), for value received, hereby promises to pay
to Cede & Co., or registered assigns, the principal sum of $500,000,000 on
December 1, 2033 (the “Maturity Date”) and to pay interest thereon from
November 26, 2003 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually on June 1 and
December 1 in each year (each, an “Interest Payment Date”), commencing June 1,
2004, at 6.50% per annum until the principal hereof is paid or duly provided
for, and which such interest rate shall be subject to adjustment as described
below.

     Any payment of principal or interest required to be made on a day that is
not a Business Day need not be made on such day, but may be made on the next
succeeding Business Day with the same force and effect as if made on such day
and no interest shall accrue as a result of such delayed payment. Interest
payable on each Interest Payment Date will include interest accrued from and
including November 26, 2003 or from and including the most recent Interest
Payment Date to which interest has been paid or duly provided for, as the case
may be, to but excluding such Interest Payment Date.

     The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture, be paid to the person
(the “Holder”) in whose name this Note (or one or more Predecessor Securities)
is registered at the close of business on the May 15 or November 15, as
applicable (whether or not a Business Day) preceding such Interest Payment Date
(a “Regular Record Date”). Any such interest not so punctually paid or duly
provided for (“Defaulted Interest”) will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the person in
whose name this Note (or one or more Predecessor Securities) is registered at
the close of business on a special record date (the “Special Record Date”) to
be fixed by the Trustee (referred to herein) for the payment of such Defaulted
Interest, notice whereof shall be given to the Holder of this Note not more
than 15 nor less than ten days prior to such Special Record Date, or may be
paid at any time in any other lawful manner, all as more fully provided in the
Indenture.

     For purposes of this Note, “Business Day” means any day that is not a
Saturday or Sunday and that, in The City of New York, is not a day on which
banking institutions are authorized or obligated by law or executive order to
close.

     Payment of the principal of this Note on the Maturity Date will be made
against presentation of this Note at the Corporate Trust Office of the Trustee
maintained for that purpose in the Borough of Manhattan, the City of New York,
in such 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. So long as
this Note remains in book-entry form, all payments of principal and interest
will be made by the Company in immediately available funds.

     GENERAL. This Note is one of a duly authorized issue of securities
(herein called the “Securities”) of the Company, issued and to be issued under
an indenture dated as of November 26, 2003 (the “Base Indenture”), as
supplemented by the First Supplemental Indenture dated as of November 26, 2003,
the Second Supplemental Indenture dated as of November 26, 2003 (the “Second
Supplemental Indenture”), and as it may be further
supplemented from time to time (herein collectively called the
“Indenture”), between the Company and The Bank of New York, as Trustee (herein
called the “Trustee,” which term

 

 

includes any successor trustee under the
indenture with respect to a series of which this Note is a part), to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be,
authenticated and delivered. The Securities may be issued in one or more
series, which different series may be issued in various aggregate principal
amounts, may mature at different times, may bear interest (if any) at different
rates, may be subject to different redemption provisions (if any), may be
subject to different sinking, purchase or analogous funds (if any), may be
subject to different covenants and Events of Default and may otherwise vary as
provided or permitted in the Indenture. This Note is one of a duly authorized
series of Securities designated as “6.50% Senior Notes due 2033” (collectively,
the “Notes”).

     The Notes are initially limited to $1,150,000,000 aggregate principal
amount. The Company may, without the consent of the Holder hereof, create and
issue additional securities ranking pari passu with the Notes in all respects
and so that such additional securities shall be consolidated and form a single
series having the same terms as to status, redemption or otherwise as the Notes
initially issued. No additional Notes may be issued if an Event of Default has
occurred.

     INTEREST RATE ADJUSTMENTS. The interest rate on the Notes is subject to
adjustment in accordance with the terms of, and in the circumstances provided
for in, the Second Supplemental Indenture.

     EVENTS OF DEFAULT. If an Event of Default with respect to the Notes shall
have occurred and be continuing, the principal of the Notes may be declared due
and payable in the manner and with the effect provided in the Indenture.

     MATURITY AND OPTIONAL REDEMPTION. The Notes may be redeemed prior to the
Maturity Date as provided for in Section 301 of the Second Supplemental
Indenture. The Notes are not subject to repayment at the option of the Holders
or to the operation of any sinking fund.

     MODIFICATION AND WAIVERS; OBLIGATIONS OF THE COMPANY ABSOLUTE. The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the rights of the Holders of the Securities of each series. Such amendment may
be effected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of not less than a majority in aggregate principal
amount of all Securities issued under the Indenture at the time Outstanding and
affected thereby. The Indenture also contains provisions permitting the
Holders of not less than a majority in aggregate principal amount of the
Securities at the time Outstanding, on behalf of the Holders of all Outstanding
Securities, to waive compliance by the Company with certain provisions of the
Indenture. Furthermore, provisions in the Indenture permit the Holders of not
less than a majority in aggregate principal amount of the Outstanding
Securities of individual series to waive on behalf of all of the Holders of
Securities of such individual series certain past defaults under the Indenture
and their consequences. Any such
consent or waiver shall be conclusive and binding upon the Holder of this
Note and upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in

 

 

exchange hereof or in lieu hereof,
whether or not notation of such consent or waiver is made upon this 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 Company, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, place and rate and in the coin or currency herein prescribed.

     DEFEASANCE AND COVENANT DEFEASANCE. The Indenture contains provisions for
defeasance at any time of (a) the entire indebtedness of the Company on this
Note and (b) certain restrictive covenants and the related defaults and Events
of Default, upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Note.

     REGISTRATION OF TRANSFER OR EXCHANGE. As provided in the Indenture and
subject to certain limitations herein and therein set forth, the transfer of
this Note is registrable in the Security Register upon surrender of this Note
for registration of transfer at the Corporate Trust Office of the Trustee in
any place where the principal of and interest on this Note are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Notes, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

     As provided in the Indenture and subject to certain limitations herein and
therein set forth, the Notes are exchangeable for a like aggregate principal
amount of Notes of different authorized denominations, as requested by the
Holders surrendering the same.

     This Note is a Global Security. If the Depository is at any time
unwilling, unable or ineligible to continue as depository and a successor
depository is not appointed by the Company within 90 days or an Event of
Default under the Indenture has occurred and is continuing, the Company will
issue Notes in certificated form in exchange for each Global Security. In
addition, the Company may at any time determine not to have Notes represented
by a Global Security and, in such event, will issue Notes in certificated form
in exchange in whole for the Global Security representing such Note. In any
such instance, an owner of a beneficial interest in a Global Security will be
entitled to physical delivery in certificated form of Notes equal in principal
amount to such beneficial interest and to have such Notes registered in its
name. Notes so issued in certificated form will be issued in denominations of
$1,000 or any amount in excess thereof which is an integral multiple of $1,000
and will be issued in registered form only, without coupons.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Holder as the owner

 

 

hereof for all purposes, whether or not this Note be
overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary.

     DEFINED TERMS. All terms used in this Note which are defined in the
Indenture and are not otherwise defined herein shall have the meanings assigned
to them in the Indenture.

     GOVERNING LAW. This Note shall be governed by and construed in accordance
with the law of the State of New York.

     NOTICES. Notices to Holders of the Notes may be made by first class mail,
postage prepaid, to the addresses that appear on the register maintained by the
Security Registrar or by guaranteed overnight courier or by facsimile
transmission (receipt confirmed by facsimile transaction receipt) followed by
overnight courier. Any notice will be deemed to have been given on the date of
publication or, if published more than once, on the date of the first
publication.

     Unless the certificate of authentication hereon has been executed by the
Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

 

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its facsimile corporate seal.

Dated: November 26, 2003

	 	 	 	 	 
	 	 	SCHERING-PLOUGH CORPORATION
	 	 	 	 	 
	 	 	
By:
	 	/s/ E. Kevin Moore
	 	 	 	 	

	 	 	 	Name: E. Kevin Moore
	 	 	 	Title: Vice President and Treasurer

	 	 	 	 	 
	 	 	 	 	 
	 	 	
Attest:
	 	/s/ Joseph J. LaRosa
	 	 	 	 	

	 	 	 	Name: Joseph J. LaRosa
	 	 	 	Title: Secretary

TRUSTEE’S CERTIFICATE

 OF AUTHENTICATION

This is one of the Securities of the series

designated therein referred to in the

within-mentioned Indenture

THE BANK OF NEW YORK,

 as Trustee

	 	 	 	 	 	 	 
	By:	 	
/s/ Marie E. Trimboli
	 	 	 	 
	 	 	

	 	 	 	 
	 	 	
    Authorized Signatory	 	 	 	 

 

 

CUSIP NO. 806605AG6

ISIN NO. US806605AG68

NO. 2

SCHERING-PLOUGH CORPORATION

6.50% GLOBAL SENIOR NOTE DUE 2033

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND SUCH
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME
AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY, ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL, SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

     UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
CERTIFICATED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY
THE DEPOSITORY TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO THE DEPOSITORY
OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE
TO A SUCCESSOR OF THE DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR.

     SCHERING-PLOUGH CORPORATION, a New Jersey corporation (herein referred to
as the “Company,” which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay
to Cede & Co., or registered assigns, the principal sum of $500,000,000 on
December 1, 2033 (the “Maturity

 

 

Date”) and to pay interest thereon from November 26, 2003 or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for, semi-annually on June 1 and December 1 in each year (each, an “Interest
Payment Date”), commencing June 1, 2004, at 6.50% per annum until the principal
hereof is paid or duly provided for, and which such interest rate shall be
subject to adjustment as described below.

     Any payment of principal or interest required to be made on a day that is
not a Business Day need not be made on such day, but may be made on the next
succeeding Business Day with the same force and effect as if made on such day
and no interest shall accrue as a result of such delayed payment. Interest
payable on each Interest Payment Date will include interest accrued from and
including November 26, 2003 or from and including the most recent Interest
Payment Date to which interest has been paid or duly provided for, as the case
may be, to but excluding such Interest Payment Date.

     The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture, be paid to the person
(the “Holder”) in whose name this Note (or one or more Predecessor Securities)
is registered at the close of business on the May 15 or November 15, as
applicable (whether or not a Business Day) preceding such Interest Payment Date
(a “Regular Record Date”). Any such interest not so punctually paid or duly
provided for (“Defaulted Interest”) will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the person in
whose name this Note (or one or more Predecessor Securities) is registered at
the close of business on a special record date (the “Special Record Date”) to
be fixed by the Trustee (referred to herein) for the payment of such Defaulted
Interest, notice whereof shall be given to the Holder of this Note not more
than 15 nor less than ten days prior to such Special Record Date, or may be
paid at any time in any other lawful manner, all as more fully provided in the
Indenture.

     For purposes of this Note, “Business Day” means any day that is not a
Saturday or Sunday and that, in The City of New York, is not a day on which
banking institutions are authorized or obligated by law or executive order to
close.

     Payment of the principal of this Note on the Maturity Date will be made
against presentation of this Note at the Corporate Trust Office of the Trustee
maintained for that purpose in the Borough of Manhattan, the City of New York,
in such 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. So long as
this Note remains in book-entry form, all payments of principal and interest
will be made by the Company in immediately available funds.

     GENERAL. This Note is one of a duly authorized issue of securities
(herein called the “Securities”) of the Company, issued and to be issued under
an indenture dated as of November 26, 2003 (the “Base Indenture”), as
supplemented by the First Supplemental Indenture dated as of November 26, 2003,
the Second Supplemental Indenture dated as of November 26, 2003 (the “Second
Supplemental Indenture”), and as it may be further supplemented from time to
time (herein collectively called the “Indenture”), between the Company and The
Bank of New York, as Trustee (herein called the “Trustee,” which term includes
any successor trustee under the indenture with respect to a series of which
this Note is a part), to which Indenture and all indentures supplemental
thereto reference is hereby made for a

 

 

statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be,
authenticated and delivered. The Securities may be issued in one or more
series, which different series may be issued in various aggregate principal
amounts, may mature at different times, may bear interest (if any) at different
rates, may be subject to different redemption provisions (if any), may be
subject to different sinking, purchase or analogous funds (if any), may be
subject to different covenants and Events of Default and may otherwise vary as
provided or permitted in the Indenture. This Note is one of a duly authorized
series of Securities designated as “6.50% Senior Notes due 2033” (collectively,
the “Notes”).

     The Notes are initially limited to $1,150,000,000 aggregate principal
amount. The Company may, without the consent of the Holder hereof, create and
issue additional securities ranking pari passu with the Notes in all respects
and so that such additional securities shall be consolidated and form a single
series having the same terms as to status, redemption or otherwise as the Notes
initially issued. No additional Notes may be issued if an Event of Default has
occurred.

     INTEREST RATE ADJUSTMENTS. The interest rate on the Notes is subject to
adjustment in accordance with the terms of, and in the circumstances provided
for in, the Second Supplemental Indenture.

     EVENTS OF DEFAULT. If an Event of Default with respect to the Notes shall
have occurred and be continuing, the principal of the Notes may be declared due
and payable in the manner and with the effect provided in the Indenture.

     MATURITY AND OPTIONAL REDEMPTION. The Notes may be redeemed prior to the
Maturity Date as provided for in Section 301 of the Second Supplemental
Indenture. The Notes are not subject to repayment at the option of the Holders
or to the operation of any sinking fund.

     MODIFICATION AND WAIVERS; OBLIGATIONS OF THE COMPANY ABSOLUTE. The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the rights of the Holders of the Securities of each series. Such amendment may
be effected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of not less than a majority in aggregate principal
amount of all Securities issued under the Indenture at the time Outstanding and
affected thereby. The Indenture also contains provisions permitting the
Holders of not less than a majority in aggregate principal amount of the
Securities at the time Outstanding, on behalf of the Holders of all Outstanding
Securities, to waive compliance by the Company with certain provisions of the
Indenture. Furthermore, provisions in the Indenture permit the Holders of not
less than a majority in aggregate principal amount of the Outstanding
Securities of individual series to waive on behalf of all of the Holders of
Securities of such individual series certain past defaults under the Indenture
and their consequences. Any such consent or waiver shall be conclusive and
binding upon the Holder of this Note and upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not notation of such consent or waiver is
made upon this 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 Company, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, place and rate and in the coin or currency herein prescribed.

     DEFEASANCE AND COVENANT DEFEASANCE. The Indenture contains provisions for
defeasance at any time of (a) the entire indebtedness of the Company on this
Note and (b) certain restrictive covenants and the related defaults and Events
of Default, upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Note.

     REGISTRATION OF TRANSFER OR EXCHANGE. As provided in the Indenture and
subject to certain limitations herein and therein set forth, the transfer of
this Note is registrable in the Security Register upon surrender of this Note
for registration of transfer at the Corporate Trust Office of the Trustee in
any place where the principal of and interest on this Note are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Notes, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

     As provided in the Indenture and subject to certain limitations herein and
therein set forth, the Notes are exchangeable for a like aggregate principal
amount of Notes of different authorized denominations, as requested by the
Holders surrendering the same.

     This Note is a Global Security. If the Depository is at any time
unwilling, unable or ineligible to continue as depository and a successor
depository is not appointed by the Company within 90 days or an Event of
Default under the Indenture has occurred and is continuing, the Company will
issue Notes in certificated form in exchange for each Global Security. In
addition, the Company may at any time determine not to have Notes represented
by a Global Security and, in such event, will issue Notes in certificated form
in exchange in whole for the Global Security representing such Note. In any
such instance, an owner of a beneficial interest in a Global Security will be
entitled to physical delivery in certificated form of Notes equal in principal
amount to such beneficial interest and to have such Notes registered in its
name. Notes so issued in certificated form will be issued in denominations of
$1,000 or any amount in excess thereof which is an integral multiple of $1,000
and will be issued in registered form only, without coupons.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Holder as the owner hereof for all purposes, whether or not this Note be
overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary.

 

 

     DEFINED TERMS. All terms used in this Note which are defined in the
Indenture and are not otherwise defined herein shall have the meanings assigned
to them in the Indenture.

     GOVERNING LAW. This Note shall be governed by and construed in accordance
with the law of the State of New York.

     NOTICES. Notices to Holders of the Notes may be made by first class mail,
postage prepaid, to the addresses that appear on the register maintained by the
Security Registrar or by guaranteed overnight courier or by facsimile
transmission (receipt confirmed by facsimile transaction receipt) followed by
overnight courier. Any notice will be deemed to have been given on the date of
publication or, if published more than once, on the date of the first
publication.

     Unless the certificate of authentication hereon has been executed by the
Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

 

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its facsimile corporate seal.

Dated: November 26, 2003

	 	 	 	 	 
	 	 	SCHERING-PLOUGH CORPORATION
	 	 	 	 	 
	 	 	
By:
	 	/s/ E. Kevin Moore
	 	 	 	 	

	 	 	 	Name: E. Kevin Moore
	 	 	 	Title: Vice President and Treasurer

	 	 	 	 	 
	 	 	 	 	 
	 	 	
Attest:
	 	/s/ Joseph J. LaRosa
	 	 	 	 	

	 	 	 	Name: Joseph J. LaRosa
	 	 	 	Title: Secretary

TRUSTEE’S CERTIFICATE

 OF AUTHENTICATION

This is one of the Securities of the series

designated therein referred to in the

within-mentioned Indenture

THE BANK OF NEW YORK,

 as Trustee

	 	 	 	 	 	 	 
	By:	 	
/s/ Marie E. Trimboli
	 	 	 	 
	 	 	

	 	 	 	 
	 	 	
    Authorized Signatory	 	 	 	 

 

 

CUSIP NO. 806605AG6

ISIN NO. US806605AG68

NO. 3

SCHERING-PLOUGH CORPORATION

6.50% GLOBAL SENIOR NOTE DUE 2033

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND SUCH
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME
AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY, ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL, SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
CERTIFICATED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY
THE DEPOSITORY TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO THE DEPOSITORY
OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE
TO A SUCCESSOR OF THE DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR.

     SCHERING-PLOUGH CORPORATION, a New Jersey corporation (herein referred to
as the “Company,” which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay
to Cede & Co., or registered assigns, the principal sum of $150,000,000 on
December 1, 2033 (the “Maturity

 

 

Date”) and to pay interest thereon from November 26, 2003 or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for, semi-annually on June 1 and December 1 in each year (each, an “Interest
Payment Date”), commencing June 1, 2004, at 6.50% per annum until the principal
hereof is paid or duly provided for, and which such interest rate shall be
subject to adjustment as described below.

     Any payment of principal or interest required to be made on a day that is
not a Business Day need not be made on such day, but may be made on the next
succeeding Business Day with the same force and effect as if made on such day
and no interest shall accrue as a result of such delayed payment. Interest
payable on each Interest Payment Date will include interest accrued from and
including November 26, 2003 or from and including the most recent Interest
Payment Date to which interest has been paid or duly provided for, as the case
may be, to but excluding such Interest Payment Date.

     The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture, be paid to the person
(the “Holder”) in whose name this Note (or one or more Predecessor Securities)
is registered at the close of business on the May 15 or November 15, as
applicable (whether or not a Business Day) preceding such Interest Payment Date
(a “Regular Record Date”). Any such interest not so punctually paid or duly
provided for (“Defaulted Interest”) will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the person in
whose name this Note (or one or more Predecessor Securities) is registered at
the close of business on a special record date (the “Special Record Date”) to
be fixed by the Trustee (referred to herein) for the payment of such Defaulted
Interest, notice whereof shall be given to the Holder of this Note not more
than 15 nor less than ten days prior to such Special Record Date, or may be
paid at any time in any other lawful manner, all as more fully provided in the
Indenture.

     For purposes of this Note, “Business Day” means any day that is not a
Saturday or Sunday and that, in The City of New York, is not a day on which
banking institutions are authorized or obligated by law or executive order to
close.

     Payment of the principal of this Note on the Maturity Date will be made
against presentation of this Note at the Corporate Trust Office of the Trustee
maintained for that purpose in the Borough of Manhattan, the City of New York,
in such 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. So long as
this Note remains in book-entry form, all payments of principal and interest
will be made by the Company in immediately available funds.

     GENERAL. This Note is one of a duly authorized issue of securities
(herein called the “Securities”) of the Company, issued and to be issued under
an indenture dated as of November 26, 2003 (the “Base Indenture”), as
supplemented by the First Supplemental Indenture dated as of November 26, 2003,
the Second Supplemental Indenture dated as of November 26, 2003 (the “Second
Supplemental Indenture”), and as it may be further supplemented from time to
time (herein collectively called the “Indenture”), between the Company and The
Bank of New York, as Trustee (herein called the “Trustee,” which term includes
any successor trustee under the indenture with respect to a series of which
this Note is a part), to which Indenture and all indentures supplemental
thereto reference is hereby made for a

 

 

statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be,
authenticated and delivered. The Securities may be issued in one or more
series, which different series may be issued in various aggregate principal
amounts, may mature at different times, may bear interest (if any) at different
rates, may be subject to different redemption provisions (if any), may be
subject to different sinking, purchase or analogous funds (if any), may be
subject to different covenants and Events of Default and may otherwise vary as
provided or permitted in the Indenture. This Note is one of a duly authorized
series of Securities designated as “6.50% Senior Notes due 2033” (collectively,
the “Notes”).

     The Notes are initially limited to $1,150,000,000 aggregate principal
amount. The Company may, without the consent of the Holder hereof, create and
issue additional securities ranking pari passu with the Notes in all respects
and so that such additional securities shall be consolidated and form a single
series having the same terms as to status, redemption or otherwise as the Notes
initially issued. No additional Notes may be issued if an Event of Default has
occurred.

     INTEREST RATE ADJUSTMENTS. The interest rate on the Notes is subject to
adjustment in accordance with the terms of, and in the circumstances provided
for in, the Second Supplemental Indenture.

     EVENTS OF DEFAULT. If an Event of Default with respect to the Notes shall
have occurred and be continuing, the principal of the Notes may be declared due
and payable in the manner and with the effect provided in the Indenture.

     MATURITY AND OPTIONAL REDEMPTION. The Notes may be redeemed prior to the
Maturity Date as provided for in Section 301 of the Second Supplemental
Indenture. The Notes are not subject to repayment at the option of the Holders
or to the operation of any sinking fund.

     MODIFICATION AND WAIVERS; OBLIGATIONS OF THE COMPANY ABSOLUTE. The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the rights of the Holders of the Securities of each series. Such amendment may
be effected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of not less than a majority in aggregate principal
amount of all Securities issued under the Indenture at the time Outstanding and
affected thereby. The Indenture also contains provisions permitting the
Holders of not less than a majority in aggregate principal amount of the
Securities at the time Outstanding, on behalf of the Holders of all Outstanding
Securities, to waive compliance by the Company with certain provisions of the
Indenture. Furthermore, provisions in the Indenture permit the Holders of not
less than a majority in aggregate principal amount of the Outstanding
Securities of individual series to waive on behalf of all of the Holders of
Securities of such individual series certain past defaults under the Indenture
and their consequences. Any such consent or waiver shall be conclusive and
binding upon the Holder of this Note and upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not notation of such consent or waiver is
made upon this 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 Company, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, place and rate and in the coin or currency herein prescribed.

     DEFEASANCE AND COVENANT DEFEASANCE. The Indenture contains provisions for
defeasance at any time of (a) the entire indebtedness of the Company on this
Note and (b) certain restrictive covenants and the related defaults and Events
of Default, upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Note.

     REGISTRATION OF TRANSFER OR EXCHANGE. As provided in the Indenture and
subject to certain limitations herein and therein set forth, the transfer of
this Note is registrable in the Security Register upon surrender of this Note
for registration of transfer at the Corporate Trust Office of the Trustee in
any place where the principal of and interest on this Note are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Notes, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

     As provided in the Indenture and subject to certain limitations herein and
therein set forth, the Notes are exchangeable for a like aggregate principal
amount of Notes of different authorized denominations, as requested by the
Holders surrendering the same.

     This Note is a Global Security. If the Depository is at any time
unwilling, unable or ineligible to continue as depository and a successor
depository is not appointed by the Company within 90 days or an Event of
Default under the Indenture has occurred and is continuing, the Company will
issue Notes in certificated form in exchange for each Global Security. In
addition, the Company may at any time determine not to have Notes represented
by a Global Security and, in such event, will issue Notes in certificated form
in exchange in whole for the Global Security representing such Note. In any
such instance, an owner of a beneficial interest in a Global Security will be
entitled to physical delivery in certificated form of Notes equal in principal
amount to such beneficial interest and to have such Notes registered in its
name. Notes so issued in certificated form will be issued in denominations of
$1,000 or any amount in excess thereof which is an integral multiple of $1,000
and will be issued in registered form only, without coupons.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Holder as the owner hereof for all purposes, whether or not this Note be
overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary.

 

 

     DEFINED TERMS. All terms used in this Note which are defined in the
Indenture and are not otherwise defined herein shall have the meanings assigned
to them in the Indenture.

     GOVERNING LAW. This Note shall be governed by and construed in accordance
with the law of the State of New York.

     NOTICES. Notices to Holders of the Notes may be made by first class mail,
postage prepaid, to the addresses that appear on the register maintained by the
Security Registrar or by guaranteed overnight courier or by facsimile
transmission (receipt confirmed by facsimile transaction receipt) followed by
overnight courier. Any notice will be deemed to have been given on the date of
publication or, if published more than once, on the date of the first
publication.

     Unless the certificate of authentication hereon has been executed by the
Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

 

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its facsimile corporate seal.

Dated: November 26, 2003

	 	 	 	 	 
	 	 	SCHERING-PLOUGH CORPORATION
	 	 	 	 	 
	 	 	
By:
	 	/s/ E. Kevin Moore
	 	 	 	 	

	 	 	 	Name: E. Kevin Moore
	 	 	 	Title: Vice President and Treasurer

	 	 	 	 	 
	 	 	 	 	 
	 	 	
Attest:
	 	/s/ Joseph J. LaRosa
	 	 	 	 	

	 	 	 	Name: Joseph J. LaRosa
	 	 	 	Title: Secretary

TRUSTEE’S CERTIFICATE

 OF AUTHENTICATION

This is one of the Securities of the series

designated therein referred to in the

within-mentioned Indenture

THE BANK OF NEW YORK,

 as Trustee

	 	 	 	 	 	 	 
	By:	 	
/s/ Marie E. Trimboli
	 	 	 	 
	 	 	

	 	 	 	 
	 	 	
    Authorized SignatoryLETTER AGREEMENT

 

Exhibit 10(e)(iii)

November 4, 2003                    

Mr. Robert Bertolini

9 Uptom Pine Road

Lebanon, NJ 08833

Dear Bob:

     This will confirm our offer for you to join Schering-Plough as Executive
Vice President and Chief Financial Officer effective November 17, 2003 or such
other date as is agreed upon by you and the Company. As such, you will be
elected a Corporate Officer and a member of the EMT (Executive Management
Team). You will report to Fred Hassan, Chairman and CEO. The terms we
discussed are as follows:

	1.	 	Your base salary will be $775,000 per year (less deductions), paid in
semi-monthly installments. Your salary will be reviewed annually and
subject to increase in accordance with our practices generally applicable
to senior officers.
	 
	2.	 	The bonus target for your position is 70%. Unless the Chief Executive
Officer determines that your performance during 2004 has been
substantially inadequate, your bonus will be guaranteed at target for 2004
and will be payable in March 2005.
	 
	3.	 	As an incentive to join Schering-Plough, the following are provided:

a) A hire-on bonus of $100,000 (less deductions).

b) The following awards under the 2002 Stock Incentive Plan (the “Stock
Plan”), effective as of the date your employment commences. You shall
have all of the rights and benefits available to participants under the
terms of the Stock Plan, such as fully vesting of all awards upon a
change of control or upon your termination of employment due to your
death or disability:

	 	•	 	350,000 stock options, which vest in three approximately
equal annual installments, beginning one year from the date of
grant.

	 	•	 	65,000 stock awards (restricted stock) which vest 3 years
from date of grant.

	4.	 	You will receive a payment of up to $200,000 grossed up for taxes to
cover certain tax liabilities on phantom income (i.e., taxes on income
which you will never receive as a result of your leaving your current
employer). Appropriate supporting documentation will be required.

 

 

	5.	 	You will be covered by the same form of corporate Change of Control
Agreement as is applicable generally to our senior executive officers.
The basic terms of this agreement are outlined on Attachment A, and the
complete agreement will be provided to you upon your joining
Schering-Plough.
	 
	6.	 	As an executive, you will be provided with the same benefits and
perquisites as are generally made available to other senior executive
officers. Among these are the following benefits and perquisites:

	 	•	 	The executive supplement to the medical/dental insurance,
which provides 100% reimbursement of reasonable and customary
charges after the deductibles are satisfied. (Please note this plan
is being eliminated effective 1/1/04.)

	 	•	 	Executive life insurance is also provided. The life
insurance coverage is $2,250,000. Again, the details of this also
will be discussed with you after you are on board.

	 	•	 	Four weeks vacation.

	 	•	 	Financial planning reimbursement up to $8,000 in the first
year to establish a plan, and up to $5,000 annually thereafter as
needed. In addition, reimbursement for tax preparation up to $2,500
annually is also provided.

	7.	 	You shall participate in the Supplemental Executive Retirement Plan
(SERP). As explained, the SERP provides a retirement benefit based on a
formula of 2% of final average earnings (base and bonus earnings) times
years of service (up to 20 years of service; after 20 years the formula is
1% per year of service). An unreduced pension is earned at age 62, and a
minimum benefit of 35% of final average earnings is provided after 10
years of service and attainment of age 60. We will provide a complete
explanation of this and other executive benefits when you join the
Company. As a special enhancement to the benefits provided under the
Schering-Plough SERP, you shall receive the additional retirement benefits
outlined on Attachment B.

	8.	 	You will also be provided employment security in the form of a lump sum
payment equal to 3 times base salary and bonus at target if you are
involuntarily terminated for any reason other than for cause or you
terminate your employment for good reason. This amount will be offset by
any other severance payment made to you by the Company under any other
severance plan or arrangement. In the event that you are eligible to
receive this employment security payment, you will also vest in your
restricted stock awards and your stock option grants.

	9.	 	In addition to the awards referred to above, you will be eligible to
receive additional awards under our Stock Plan. The plan provides annual
stock option

2

 

	 	 	 	and stock award grants. The actual level of grants is based on an
overall assessment of market competitiveness as well as individual
performance, and approval by executive management.

	10.	 	For purposes of this letter, cause shall be defined in a manner
consistent with the definition of that term as applicable to our senior
executives (including those who have individually negotiated agreements).
Good reason will mean (i) the assignment to you of duties inconsistent
with the position referenced above or any significant diminution in such
duties in responsibilities, (ii) an adverse change in your title or in
your reporting relationship, (iii) the relocation of your principal place
of employment to a location more than 35 miles from that at which you were
previously performing your services; or (iv) any reduction in your base
salary or target bonus opportunity.

     Our offer of employment is also contingent upon the successful completion
of [a pre-employment physical examination and] the Employment Eligibility
Verification Form (I-9) and the production of documents that establish identity
and employment eligibility.

     Bob, we hope that our relationship will continue for some time, but it is
important to point out that Schering-Plough operates under “Employment at
Will”. Subject to your rights and our obligations outlined above, this means
just as you are free to leave the Company at any time for any reason, the
Company retains the same right to end our employment relationship at any time
for any reason. No representative of the company has the authority to make any
verbal assurance to the contrary.

     Please acknowledge your acceptance of our offer by signing in the space
provided below and return the letter to me.

     We are very much looking forward to your joining Schering-Plough
Corporation. If you have any questions or if I can be of further assistance,
please do not hesitate to contact me.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	/s/Fred Hassan
 	 
	 	 	 
	 	Fred Hassan
Chairman and
Chief Executive Officer 	 
	 

	 	 	 
	Accepted:    /s/Robert Bertolini
	 	   11/04/03
	
 
	 	
 
	Robert Bertolini
	 	Date

3

 

Attachment A

Provisions For Change of Control

Employment Agreement

	1.	 	The Agreement becomes effective only upon a change of control or a
termination of employment in anticipation of a change of control.
	 
	2.	 	Upon a change of control, it becomes a 3 year employment agreement,
preserving the status quo of the executive’s duties, responsibilities,
compensation and benefits.
	 
	3.	 	Upon termination after a change of control, if

	 	(a)	 	Other than for cause, death or disability, or for “good reason”, or
	 
	 	(b)	 	During a 30 day window period one year after a change of
control, the executive receives:

	 	(i)	 	Three (3) times base salary, EIP, and profit sharing;
	 
	 	(ii)	 	Continued welfare benefit programs for three (3) years;
	 
	 	(iii)	 	SERP and pension plan benefits in a lump sum for an additional
three (3) years of service.

	4.	 	Accelerated vesting of retiree medical coverage for executives age 45 or
over. Upon a change of control, this will assure executive age 45 or over
but not yet 55 or receiving the company’s then current retiree medical
coverage when they attain retirement age.
	 
	5.	 	No actuarial reduction in pension payments for early retirement for
executives age 50 and over.
	 
	6.	 	Gross-up for any “golden parachute” tax effect.
	 
	7.	 	Reimbursement for any legal fees incurred in enforcing or contesting the
Agreement.

 

 

Attachment B

Enhanced Retirement Benefits Under Supplemental Executive Retirement Plan (SERP)

	•	 	You will be granted 20 years of benefit service which will vest after
5 years of continuous service with Schering-Plough. Your total
accrued benefit from the SERP at retirement (based on 20 years of
service plus actual years of service) will be offset by (1) the amount
of retirement benefits you are entitled to receive under
Schering-Plough’s qualified defined benefit retirement plan any
Schering-Plough non-qualified defined benefit retirement plans and (2)
the amount of qualified and non-qualified defined benefit retirement
benefits you are entitled to receive from any and all of your prior
employers as of your actual retirement date. If you leave employment
after completing five years of continuous service, your benefit
accrued under the SERP (including your special service credit) will be
payable in accordance with the SERP.

	•	 	In the event that (i) you are involuntarily terminated other than for
cause, (ii) your employment terminates due to your death or disability
(as such term is applied to senior officers generally) or (iii) you
terminate your employment for “good reason,” your benefit accrued
under the Plan (including your special service credit) will vest
immediately and become payable commencing at age 55 (or actual age if
older) without reduction for early retirement, or (at your election)
may be payable immediately (prior to age 55) in a lump sum, which
shall be determined using the actuarial assumptions applicable to lump
sum distributions contained in the SERP in effect at the time of the
distribution.

	•	 	In addition to the foregoing, in the event that you voluntarily
terminate your employment with the Company at age 50 or later, you
will nonetheless be entitled to receive annual retirement benefits
from the Company in an amount equal to the estimated annual retirement
benefits that you would have received at such age from
PricewaterhouseCoopers. Such retirement benefits will commence at the
later of age 50 or your actual age at your termination of employment
and continue (i) until the earliest age at which you are able to
commence receipt of your benefits under the SERP and at which the
aggregate of your Company-sponsored qualified and non-qualified
defined benefit retirement benefits (including benefits payable under
the SERP and the Schering-Plough Corporation Retirement Plan) are at
least equal to or greater than such retirement benefits described in
the immediately preceding sentence or (ii) for the remainder of your
lifetime (with a survivor benefit payable to your spouse, if she
survives you), if, and to the extent that, such retirement benefits
are greater than the aggregate amount payable to you under the
Company-sponsored qualified and non-qualified defined benefit
retirement plans.

	•	 	Additionally, in the event of a change of control, any actuarial
adjustment in respect of your accrued benefit under the SERP for early
retirement prior to age 50 will be determined using the same reduction
factors from age 50 as is applicable under the

5

 

	 	 	SERP’s pre-age 62 reduction schedule (e.g., a reduction factor for one year for
benefits payable at age 49; a reduction factor for five years for benefits
payable at age 45). Consistent with your change of control agreement, you
shall be entitled to receive a lump sum payment of your benefits under the SERP
at any time after your termination of employment, regardless of your age at
that time.

	•	 	Alternative forms of benefits will be made
actuarially equivalent and will be determined as of
your actual retirement date.

6

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