This document summarizes the benefits for which a “Separated Employee” may be eligible under theSpecial Separation Program and other Merck employee benefit plans and programs. Unless otherwisenoted below, the terms and conditions of Merck’s employee benefit plans and programs applicable onan employee’s termination of employment from Merck are as described in the applicable sections ofthe current Merck Benefits Book (and applicable summaries of material modification) previouslyprovided to you or provided to you with this Brochure, as such plans and programs (and theapplicable sections of the Merck Benefits Book) may be amended from time to time. (A copy of theapplicable sections of the Merck Benefits Book (and applicable summaries of material modification)can be obtained on line at http://humres.merck.com/benefit/about_benefits_book.html orwww.merck.com/benefits or by calling the Merck Benefits Service Center at 1-800-666-3725).However, to the extent that the terms below differ from those described in the applicable sectionsof the current Merck Benefits Book (and applicable summaries of material modification), thiscommunication constitutes a summary of material modifications and should be kept with that book.“Separated Employees” are certain nonunionized Merck & Co., Inc. employees(1) who experience a Separation From Service (as that term is defined in the SeparationBenefits Plan) on or between January 1, 2009 through December 31, 2011; and(2) who, as of their Separation Date, is: **•** Less than age 49 or  **•** At least age 49 but not yet age 64 with less than nine years of CreditedServiceSeparated Employees are only those employees who are designated by Merck as “Separated Employees.”“Separated Employees” do not include employees who terminate employment in any way that does notconstitute a Separation From Service as determined by Merck, including employees who resign for anyreason. Benefits described in this Brochure only apply to Separated Employees and do not apply toany other Merck employees.If you have been designated as a Separated Employee, the Company will provide you with a separationletter (the “Separation Letter”) that will describe the Special Separation Program benefits forwhich you are eligible and include a release of legal claims against the Company, and may alsoinclude other terms, such as non-solicitation and non-competition provisions, as the Company in itssole discretion decides to include. In order to receive the benefits under the Special SeparationProgram, you must sign and return the Separation Letter by the date stated in the letter (the“Separation Letter Return Date”) and, if a revocation period is applicable to you, not revoke theletter within the revocation period.
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**Special Separation Program**All benefits under this Special Separation Program are contingent upon the Separated Employeesigning (and, if a revocation period is applicable, not revoking) the Separation Letter. Theyconsist of: **•** Separation Pay  **•** Outplacement Services  **•** Eligibility for continued medical, dental and life insurance benefits  **•** Eligibility for a special payment in lieu of an AIP/EIP bonus for the performance yearin which his or her Separation Date occurs if his or her Separation Date occurs after June30 and on or before December 31 of that performance year  **•** Eligibility for extended use of the day care centerSeparation Pay, Outplacement Benefits and continued medical, dental and life insurance benefits aredescribed in the Separation Plan SPD distributed with this Brochure.This Brochure describes the following: **•** the eligibility for extended use of the day care center, if applicable, under theSpecial Separation Program in exchange for signing and not revoking the Separation Letter;  **•** the benefits for those Separated Employees who do not sign, or who sign and, if arevocation period is applicable to them, later revoke, the Separation Letter; and  **•** the terms and conditions of certain Merck benefit plans and programs as they apply toany separated employee without regard to whether they sign the Separation Letter.
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**Medical (including Prescription Drug) and Dental****Medical (including Prescription Drug) and Dental — If You Do Not Sign the Separation Letter**If you do not sign the Separation Letter (or if a revocation period is applicable to you, yourevoke the Separation Letter), your medical and dental coverage options in effect on yourSeparation Date will continue under Merck’s medical and dental plans (as they may be amended fromtime to time) until the end of the month following the calendar month in which your Separation Dateoccurred. At the end of that period, you will be eligible to elect to continue your coverage inaccordance with COBRA for up to 18 months from your Separation Date. If you have no medical and/ordental coverage under Merck’s medical and dental plans on your Separation Date, you will not havemedical and/or dental coverage, as applicable, after your Separation Date nor will you be eligibleto elect such coverage under COBRA.**Special Separation Program — Medical (including Prescription Drug) and Dental — If You Sign theSeparation Letter**Under the Special Separation Program, if you sign the Separation Letter (and if a revocation periodis applicable to you, do not revoke the Separation Letter), you will be eligible to continuemedical and dental coverage under Merck’s plans (as they may be amended from time to time) for theSeparation Pay Period as more fully described in the Separation Plan SPD. If the Separation PayPeriod is less than six months, you may continue medical and dental coverage for six months. Yourcontributions to continue such coverage will be the same as the contributions for active employees,as they may change from time to time and will be payable to Merck (or its designee) in the time andmanner specified by Merck from time to time. If you do not pay the required contributions to Merck(or its designee) in the time and manner specified by Merck from time to time, your coverage willbe terminated and it will not be reinstated. Provided you have paid the required contributions tocontinue coverage, at the end of the Separation Pay Period or, if the Separation Pay Period isless than 6 months, at the end of the 6-month period during which medical and dental coverages areprovided, you may elect to continue your coverage in accordance with COBRA for up to an additional18 months.Continuation of medical and dental coverages under the Special Separation Program is subject to theearly forfeiture provisions described in the Separation Plan SPD.
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**Life Insurance****Life Insurance — If You Do Not Sign the Separation Letter**If you do not sign the Separation Letter (or if a revocation period is applicable to you, yourevoke the Separation Letter), your employee group term life, dependent life, and survivor incomeprotection will continue for 31 days after your Separation Date. After this 31-day period you mayelect to continue these coverages at the level in effect on your Separation Date under Merck’s LifeInsurance Plan (as it may be amended from time to time). You may continue these coverages at yourcost for up to the earlier of 30 months from your Separation Date or age 65. If you wish tocontinue your survivor income protection and/or your dependent life coverage, you must continueyour employee group term life (basic and optional). To continue your life insurance coverage(s)you must contact the Merck Benefits Service Center (1-800-666-3725) within 31 days after yourSeparation Letter Return Date and you must pay the applicable premium in the time and mannerspecified by Merck. If you fail to pay the premium in the time and manner specified by Merck, yourcoverage(s) will be terminated and they will not be reinstated. If you are interested incontinuing your coverage(s), contact the Merck Benefits Service Center (1-800-666-3725) for moreinformation.Your accidental death and dismemberment coverage ends on your Separation Date.A full month’s premium may be deducted from your paycheck for the month in which your SeparationDate occurs.**Special Separation Program — Life Insurance — If You Sign the Separation Letter**Under the Special Separation Program, if you sign the Separation Letter (and if a revocation periodis applicable to you, do not revoke the Separation Letter), your basic employee group term lifeinsurance coverage will continue under Merck’s Life Insurance Plan (as it may be amended from timeto time) until the earlier of (i) last day of the month in which the Separation Pay Period ends,or, if the Separation Pay Period is less than 6 months, then for 6 months beginning on the first ofthe month coincident with or following your Separation Date as more fully described in theSeparation Plan SPD, or (ii) age 65. If your basic employee group term life coverage is under the“Old Format” (that is, equal to 2x base pay), your contributions to continue such coverage will bethe same as the contributions for active employees, as they may change from time to time and willbe payable to Merck (or its designee) in the time and manner specified by Merck from time to time.If you do not pay the required contributions to Merck (or its designee) in the time and mannerspecified by Merck from time to time, your
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coverage will default to “New Format” (that is 1x base pay). No contributions are required ifyour basic employee group term life coverage is under the “New Format” (that is 1x base pay). Continuation of basic life insurance under the Special Separation Program is subject to the earlyforfeiture provisions described in the Separation Plan SPD.If you sign the Separation Letter (and if a revocation period is applicable to you, do not revokethe Separation Letter) and your basic life insurance continues, you may also continue optional termlife, dependent life and survivor income protection at your cost for up to the earlier of 30 monthsfrom your Separation Date or age 65. If you wish to continue your survivor income protection and/oryour dependent life coverage, you must continue your optional employee group term life. To continueyour optional life insurance coverage(s) you must contact the Merck Benefits Service Center(1-800-666-3725) within 31 days after your Separation Letter Return Date and you must pay theapplicable premium in the time and manner specified by Merck. If you fail to pay the premium inthe time and manner specified by Merck, your optional coverage(s) will be terminated and they willnot be reinstated. If you are interested in continuing your optional coverage(s), contact theMerck Benefits Service Center (1-800-666-3725) for more information. After the Separation PayPeriod, you may continue your basic employee group term life coverage at your cost for theremainder of the period ending at the earlier of the expiration of the 30-month period from yourSeparation Date or age 65. At that time, if you are interested in continuing your basic lifecoverage, you must contact the Merck Benefits Service Center (1-800-666-3725).If your basic life insurance ends as a result of the early forfeiture provisions of the SeparationBenefits Plan, you will not be allowed to continue your optional coverages under the 30-monthcontinuation provisions. See the life insurance section of the Merck Benefits Book (and applicablesummaries of material modification) for description of conversion rights.
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The chart below is provided for your convenience to compare the medical, dental and life insurancebenefits offered under the Special Separation Program to the normal plan provisions.       **Regular Plan** **Special Separation**  **Provisions** **Program (if sign letter)****Medical, Dental,**