Document:

Bonus Description

Exhibit
10.1

2004
Bonus Program Summary Description

(extracted
from text under heading, “Compensation Committee Report On Executive
Compensation,” included in Registrant’s
Proxy Statement, dated April 5, 2004, included in Registrant’s Schedule 14A
filed with the Securities and Exchange Commission on April 8, 2004)

Annual
Bonuses. For
2003, the Board approved an annual bonus program for our executive officers and
certain other employees to provide further incentive to achieve our 2003
performance goals. Bonus targets for the program were 50% of base salary for the
CEO and President and 40% of base salary for the balance of the executive
officers. Awards under this program were based upon achieving our operating
plan, with the opportunity for leverage of the bonus targets based upon
surpassing such plan. **** The Board has approved a similar annual bonus program
for our executive officers and certain other employees, excluding Gabriel
Battista, to provide further incentive to achieve our performance goals in
2004.

In
connection with the transition of Mr. Battista's duties as Chief Executive
Officer to Mr. Meyercord, the Board has approved an annual bonus program for Mr.
Battista to provide him with further incentive to achieve our performance goals
in 2004. Mr. Battista's bonus target is 100% of base salary and is based upon
achieving our operating plan, with the opportunity for leverage of the bonus
targets based upon surpassing such plan. In addition, Mr. Battista may earn an
additional bonus of up to $500,000, based upon his meeting certain subjective
measures established and as determined by the Board.EX-4.1

 

Exhibit 4.1

	 	 	 
	REGISTERED

	 	REGISTERED
	No.                     

	 	PRINCIPAL AMOUNT: $500,000,000
	CUSIP NO.:                     
	 	 

MERCK & CO., INC.

4.75% NOTES DUE 2015

     This Security is a Book-Entry Security within the meaning of the Indenture referred to on the
reverse hereof and is registered in the name of a Depository or a nominee of a Depository. This
Security is exchangeable for Securities registered in the name of a Person other than the
Depository or its nominee only in the limited circumstances described in the Indenture and this
Security may not be transferred except as a whole by the Depository to a nominee of the Depository
or by a nominee of the Depository to the Depository or another nominee of the Depository.

     Unless this Certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to the Company or its agent for registration of transfer,
exchange or payment, and any Certificate issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any payment hereon is made
to Cede & Co. 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 & Co., has an interest herein.

 

 

     Merck & Co., Inc., a New Jersey corporation (hereinafter called the “Company”, which term
includes any successor corporation under the Indenture hereinafter referred to), for value
received, hereby promises to pay to Cede & Co., as nominee for The Depository Trust Company, or
registered assigns, the principal sum of Five Hundred Million Dollars ($500,000,000) on March 1,
2015, and to pay interest thereon from and including February 17, 2005 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for, semi-annually on March
1 and September 1 in each year and at Maturity, commencing on September 1, 2005, at a rate per
annum of 4.75%, until the principal hereof is paid or made available for payment, and (to the
extent that the payment of such interest shall be legally enforceable) at the interest rate
specified above on any overdue principal and premium and on any overdue installment of interest.
The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest, which shall be the February 15 or August 15 (whether or not a Business Day in New
York City), as the case may be, next preceding such Interest Payment Date. Any such interest not so
punctually paid or duly provided for 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 Security (or one or
more Predecessor Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said Indenture.

     The Company will at all times appoint and maintain a Paying Agent (which may be the Trustee)
authorized by the Company to pay the principal of (and premium, if any) or interest on any
Securities of this series on behalf of the Company and having an office or agency (the “Paying
Agent Office”) in The City of New York, where Securities of this series may be presented or
surrendered for payment and where notices, designations or requests in respect of payments with
respect to Securities of this series may be served. The Company has initially appointed U.S. Bank
Trust National Association, formerly known as First Trust of New York, National Association, as
such Paying Agent, with the Paying Agent Office currently at 100 Wall Street, New York, New York
10005. The Company will give prompt written notice to the Trustee of any change in such
appointment.

     Payment of the principal of (and premium, if any) and interest on this Security will be made
in immediately available funds upon surrender of such Security at the Corporate Trust Office of
U.S. Bank Trust National Association, 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
payment of public and private debts. Payments of interest on any Security of this series (other
than at the Maturity of such

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Security) will be made by check mailed to the address of the Person entitled thereto as it
appears in the Security Register or by wire transfer to such account as may have been appropriately
designated in writing no later than the relevant Regular Record Date to the Paying Agent by such
Person.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

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     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security 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
corporate seal.

Dated: February 17, 2005

	 	 	 	 	 
	[SEAL]	 	MERCK & CO., INC.
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	 
	

	 	 	 	Name: Caroline Dorsa
	

	 	 	 	Title: Vice President and Treasurer

Attest:

CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series designated herein referred to in the
within-mentioned Indenture.

U.S. BANK TRUST NATIONAL ASSOCIATION,

     As Trustee

	 	 	 
	By
	 	 
	

	 	 
	

	 	Authorized Officer

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[REVERSE OF SECURITY]

MERCK & CO., INC.

4.75% NOTES DUE 2015

          This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
April 1, 1991, as amended and supplemented (herein called the “Indenture”), between the Company and
U.S. Bank Trust National Association, formerly known as First Trust of New York, National
Association, as successor Trustee (herein called the “Trustee”, which term includes any successor
trustee under the Indenture), 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. This Security is
one of the series designated on the face hereof. The aggregate principal amount of such series is
$1,000,000,000, provided that the Company may increase such aggregate principal amount at any time.

          Payments of interest hereon with respect to any Interest Payment Date will include interest
accrued to but excluding such Interest Payment Date. Interest hereon shall be computed on the
basis of a 360-day year consisting of twelve 30-day months.

          This Security is not subject to any sinking fund.

          The Notes will be redeemable in whole at any time or in part from time to time, at the
Company’s option, at a redemption price 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
of principal and interest thereon from the redemption date to the maturity date (exclusive of any
accrued interest) discounted to the redemption date on a semiannual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate plus 15 basis points, plus, in each case,
any interest accrued but not paid to the date of redemption.

          “Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the
semiannual equivalent yield to maturity or interpolation (on a day count basis) of the interpolated
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.

          “Comparable Treasury Issue” means the United States Treasury security or securities selected
by an Independent Investment Banker as having an actual or

 

 

interpolated 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 such securities.

          “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the
Trustee after consultation with the Company.

          “Comparable Treasury Price” means, with respect to any redemption date for the Notes, (i) 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 (ii) if the Trustee obtains
fewer than three such Reference Treasury Dealer Quotations, the average of all such quotations.

          “Reference Treasury Dealer” means Citigroup Global Markets Inc. and Morgan Stanley & Co.
Incorporated and their respective successors; provided, however, that if any of the foregoing shall
cease to be a primary U.S. government securities dealer in New York City (a “Primary Treasury
Dealer”), the Company will substitute for such dealer another 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 Trustee, 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 Trustee by such Reference Treasury Dealer at 3:30 p.m. (New York City
time) on the third business day preceding such redemption date.

          Holders of Notes to be redeemed will receive notice thereof by first-class mail at least 30
and not more than 60 days before the date fixed for redemption. If fewer than all of the Notes are
to be redeemed, the Trustee will select the particular Notes or portions thereof for redemption
from the outstanding Notes not previously called, pro rata or by lot, or in such other manner as
the Company shall direct.

          Unless the Company defaults in payment of the redemption price, on and after the redemption
date interest will cease to accrue on the Notes or portions thereof called for redemption.

          If an Event of Default with respect to the Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture.

          The Indenture contains provisions for defeasance at any time of (i) the entire indebtedness of
this Security or (ii) certain restrictive covenants and Events of Default with respect to this
Security, in each case upon compliance with certain conditions set forth therein.

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          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 to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of
a majority in principal amount of the Securities at the time Outstanding of each series to be
affected. The Indenture also contains provisions permitting the Holders of specified percentages in
principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders
of all Securities of such series, to waive compliance by the Company 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 Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration of transfer hereof
or in exchange thereof or in lieu hereof, whether or not notation of such consent or waiver is made
upon this Security.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.

          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of (and premium, if any) and interest on this Security 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 Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

          The Securities of this series are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

          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 Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or

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not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

          All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

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ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face of the within Security,
shall be construed as though they were written out in full according to applicable laws or
regulations.

	 	 	 	 	 	 	 	 	 
	 

	 	TEN COM
	 	-
	 	as tenants in common	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	TEN ENT
	 	-
	 	as tenants by the entireties	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	JT TEN
	 	-
	 	as joint tenants with right of survivorship and not
as tenants in common	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	UNIF GIFT MIN ACT -                                                             
Custodian                                                             
	

	 	 	 	 	 	                                   
(Cust)	 	       (Minor)
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	under Uniform Gifts to Minors Act	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	                                                                                                      	 	 
	

	 	 	 	 	 	(State)	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Additional abbreviations may also be used	 	 
	

	 	 	 	 	 	           though not in the above list.	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	                                                                                                      	 	 

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ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto                                                                                                    

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

 

(Please Print or Typewrite Name and Address, Including Postal Zip Code, of Assignee)

the within Security and all rights thereunder, and hereby irrevocably constitutes and
appoints                                                                                                                                            

to transfer said Security on the books of the Company, with full power of substitution in the
premises.

Dated:_________________

Signature Guaranteed

	 	 	 
	

	 	

	NOTICE: Signature must be guaranteed
by a member firm of the New York
Stock Exchange or a commercial bank
or trust company.

	 	NOTICE: The signature to this
assignment must correspond with the
name as written upon the face of the
within Security in every particular,
without alteration or enlargement or
any change whatever.

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