# EDGAR Filing Document

**Accession Number:** 0001114448
**File Stem:** 0001104659-23-036677
**Filing Date:** 2023-3
**Character Count:** 212723
**Document Hash:** 84820e4a1319bd41d005839fe87db44f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-036677.hdr.sgml**: 20230324

**ACCESSION NUMBER**: 0001104659-23-036677

**CONFORMED SUBMISSION TYPE**: S-8 POS

**PUBLIC DOCUMENT COUNT**: 7

**FILED AS OF DATE**: 20230324

**DATE AS OF CHANGE**: 20230324

**EFFECTIVENESS DATE**: 20230324

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NOVARTIS AG
- **CENTRAL INDEX KEY:** 0001114448
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** V8
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-8 POS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-250207
- **FILM NUMBER:** 23760622

**BUSINESS ADDRESS:**
- **STREET 1:** LICHTSTRASSE 35
- **CITY:** BASEL
- **STATE:** V8
- **ZIP:** CH 4056
- **BUSINESS PHONE:** 01141613241111

**MAIL ADDRESS:**
- **STREET 1:** LICHTSTRASSE 35
- **CITY:** BASEL
- **STATE:** V8
- **ZIP:** CH 4056

**As filed with the Securities and Exchange Commission on March 24, 2023**

**Registration No. 333-250207**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**POST-EFFECTIVE AMENDMENT NO. 2**

**TO**

**FORM S-8**

**REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933**

**Novartis AG**

(Exact name of registrant as specified in its charter)

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| | |
|:---|:---|
| **Switzerland** | **N/A** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |

---

**Lichtstrasse 35**

**CH-4056 Basel, Switzerland**

(Address of principal executive offices)

**Novartis AG Long Term Incentive Plan**

**Novartis AG Deferred Share Bonus Plan**

**Novartis Corporation 2011 Stock Incentive Plan for North American Employees**

(Full title of the plan)

**Karen L. Hale**

**Chief Legal Officer**

**Novartis AG**

**Lichtstrasse 35**

**CH-4056 Basel, Switzerland**

(Name and address of agent for service)

**+41 61 324 1111**

(Telephone number, including area code, of agent for service)

**Copy to:**

**David M. Lynn**

**Morrison & Foerster LLP**

**2100 L Street, NW**

**Washington, D.C. 20037**

**(202) 778-1603**

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ⌧ Accelerated filer ◻ Non-accelerated filer ◻ Smaller reporting company ◻

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ◻

**EXPLANATORY NOTE**

This Post-Effective Amendment No. 2 (the "Post-Effective Amendment") to the Registration Statement on [Form S-8, File No. 333-250207](https://www.sec.gov/Archives/edgar/data/1114448/000110465920127414/tm2036313-1_s8.htm) (the "Registration Statement") is filed by Novartis AG solely for the purpose of: (i) filing the Articles of Incorporation of Novartis AG, as amended March 7, 2023, as Exhibit 4.1 to the Registration Statement; (ii) filing the Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG, effective March 7, 2023, as Exhibit 4.2 to the Registration Statement; and (iii) filing the Novartis AG Long Term Incentive Plan, adopted on January 22, 2014, and amended and restated on January 25, 2023, as Exhibit 4.5 to the Registration Statement. No additional securities are being registered. All items have been omitted from the Post-Effective Amendment other than the facing page, this explanatory note, Item 8, the signature page, Exhibit 4.1, Exhibit 4.2 and Exhibit 4.5.

**PART II**

**INFORMATION REQUIRED IN THE REGISTRATION STATEMENT**

**Item 8.** **EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit<br> Number** | **Exhibit** |
| [4.1\*](tm2310162d1_ex4-1.htm) | [Articles of Incorporation of Novartis AG, as amended March 7, 2023 (English translation)](tm2310162d1_ex4-1.htm) |
| [4.2\*](tm2310162d1_ex4-2.htm) | [Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG, effective March 7, 2023](tm2310162d1_ex4-2.htm) |
| [4.3](https://www.sec.gov/Archives/edgar/data/1114448/000110465922127792/tm2227652d1_ex99-a.htm) | [Form of Second Amended and Restated Deposit Agreement among Novartis AG, JPMorgan Chase Bank, N.A., as depositary, and all Holders and Beneficial Owners from time to time of American Depositary Receipts ("ADRs") issued thereunder, including the Form of ADR attached as Exhibit A thereto (incorporated by reference to Exhibit (a) to Novartis AG's registration statement on Form F-6 (File No. 333-198623) as filed with the Commission on December 16, 2022)](https://www.sec.gov/Archives/edgar/data/1114448/000110465922127792/tm2227652d1_ex99-a.htm) |
| [4.4](https://www.sec.gov/Archives/edgar/data/1114448/000110465922127792/tm2227652d1_ex99-a.htm) | [Form of American Depositary Receipt (included as Exhibit A to Exhibit 4.3)](https://www.sec.gov/Archives/edgar/data/1114448/000110465922127792/tm2227652d1_ex99-a.htm) |
| [4.5\*](tm2310162d1_ex4-5.htm) | [Novartis AG Long Term Incentive Plan, adopted on January 22, 2014, and amended and restated on January 25, 2023](tm2310162d1_ex4-5.htm) |
| [4.6](https://www.sec.gov/Archives/edgar/data/1114448/000110465923002748/tm231758d1_ex4-6.htm) | [Novartis AG Deferred Share Bonus Plan, adopted on January 22, 2014, and amended and restated on December 15, 2022](https://www.sec.gov/Archives/edgar/data/1114448/000110465923002748/tm231758d1_ex4-6.htm) |
| [4.7](https://www.sec.gov/Archives/edgar/data/1114448/000110465923002748/tm231758d1_ex4-7.htm) | [Novartis Corporation 2011 Stock Incentive Plan for North American Employees, adopted on November 11, 2010, and amended and restated on December 9, 2022](https://www.sec.gov/Archives/edgar/data/1114448/000110465923002748/tm231758d1_ex4-7.htm) |
| [5.1](https://www.sec.gov/Archives/edgar/data/1114448/000110465920127414/tm2036313d1_ex5-1.htm) | [Opinion of Bär & Karrer AG (incorporated by reference to Novartis AG's registration statement on Form S-8 (File No. 333-250207) as filed with the Commission on November 19, 2020)](https://www.sec.gov/Archives/edgar/data/1114448/000110465920127414/tm2036313d1_ex5-1.htm) |
| [23.1](https://www.sec.gov/Archives/edgar/data/1114448/000110465920127414/tm2036313d1_ex23-1.htm) | [Consent of Independent Auditors - PricewaterhouseCoopers AG (incorporated by reference to Novartis AG's registration statement on Form S-8 (File No. 333-250207) as filed with the Commission on November 19, 2020)](https://www.sec.gov/Archives/edgar/data/1114448/000110465920127414/tm2036313d1_ex23-1.htm) |
| [24](https://www.sec.gov/Archives/edgar/data/1114448/000110465920127414/tm2036313-1_s8.htm#a_001) | [Powers of Attorney (incorporated by reference to the signature page of Novartis AG's registration statement on Form S-8 (File No. 333-250207) as filed with the Commission on November 19, 2020)](https://www.sec.gov/Archives/edgar/data/1114448/000110465920127414/tm2036313-1_s8.htm#a_001) |

---

\* Filed herewith.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this Post-Effective Amendment No. 2 to the Registration Statement on Form S-8 (File No. 333-250207) to be signed on its behalf by the undersigned, thereunto duly authorized, in Basel, Switzerland on March 24, 2023.

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| | | |
|:---|:---|:---|
| **NOVARTIS AG** | **NOVARTIS AG** | **NOVARTIS AG** |
| By: | /s/ Christian Rehm | /s/ Christian Rehm |
|  | Name: | Christian Rehm |
|  | Title: | Authorized Signatory |

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| | | |
|:---|:---|:---|
| By: | /s/ Daniel Weiss | /s/ Daniel Weiss |
|  | Name: | Daniel Weiss |
|  | Title: | Authorized Signatory |

---

Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment No. 2 to the Registration Statement on Form S-8 (File No. 333-250207) has been signed by the following persons in the capacities indicated on this 24<sup>th</sup> day of March, 2023.

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| | |
|:---|:---|
| **SIGNATURE** | **TITLE** |
| \* | Chief Executive Officer |
| Vasant Narasimhan, M.D. | (principal executive officer) |
| \* | Chief Financial Officer |
| Harry Kirsch | (principal financial and accounting officer) |
| \* | Chair of the Board of Directors |
| Joerg Reinhardt, Ph.D. |  |
| \* | Vice-Chair of the Board of Directors |
| Simon Moroney, D.Phil. |  |
| \* | Director |
| Nancy C. Andrews, M.D. Ph.D. |  |
| \* | Director |
| Ton Buechner |  |
| \* | Director |
| Patrice Bula |  |
| \* | Director |
| Elizabeth Doherty |  |
| \* | Director |
| Bridgette Heller |  |
| | Director |
| Daniel Hochstrasser |  |
| \* | Director |
| Frans van Houten |  |

---

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| | |
|:---|:---|
| **SIGNATURE** | **TITLE** |
| \* | Director |
| Andreas von Planta, Ph.D. |  |
| | Director |
| Ana de Pro Gonzalo |  |
| \* | Director |
| Charles L. Sawyers, M.D. |  |
| \* | Director |
| William T. Winters |  |

---

---

| | |
|:---|:---|
| \*By: | /s/ Christian Rehm |
|  | Christian Rehm |
|  | As Attorney-In-Fact |

---

**AUTHORIZED REPRESENTATIVE**

Pursuant to the requirements of the Securities Act of 1933, the undersigned certifies that it is the duly authorized United States representative of the Registrant and has duly caused this Post-Effective Amendment No. 2 to Registration Statement on Form S-8 (File No. 333-250207) to be signed on its behalf by the undersigned, thereunto duly authorized, in East Hanover, New Jersey on March 24, 2023.

---

| |
|:---|
| /s/ Jaime Huertas |
| Jaime Huertas |

---

## Exhibit 4.1

**Exhibit 4.1**

![](tm2310162d1_ex4-1img001.jpg)

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| |
|:---|
| The Articles of Incorporation were adopted at the Extraordinary General Meeting of Novartis AG held on October 15, 1996. |
| Alterations adopted by General Meetings of: |
| April 21, 1999 |
| October 11, 2000 (extraordinary GM) |
| March 22, 2001 |
| March 21, 2002 |
| March 4, 2003 |
| February 24, 2004 |
| March 1, 2005 |
| February 28, 2006 |
| February 26, 2008 |
| February 24, 2009 |
| February 26, 2010 |
| April 8, 2011 (extraordinary GM) |
| February 23, 2012 |
| February 27, 2015 |
| February 23, 2016 |
| February 28, 2017 |
| March 2, 2018 |
| February 28, 2019 |
| February 28, 2020 |
| March 2, 2021 |
| March 4, 2022 |
| March 7, 2023 |
| (The original German text remains, in all matters, binding and definitive) |
| **Novartis AG** |
| 4002 Basel, Switzerland |
|© March 2023, Novartis AG |

---

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| | |
|:---|:---|
| **1** | Articles of Incorporation of Novartis AG |

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| | | |
|:---|:---|:---|
| **Section 1** | Corporate Name, Registered Office, Purpose and Duration | 2 |
| **Section 2** | Share Capital | 2 |
| **Section 3** | Corporate Bodies | 4 |
|  | A. General Meeting of Shareholders | 4 |
|  | B. Board of Directors | 7 |
|  | C. Auditors | 10 |
| **Section 4** | Compensation of the Board of Directors and the Executive Committee | 10 |
| **Section 5** | Annual Financial Statements, Consolidated Financial Statements and Profit Allocation | 14 |
| **Section 6** | Publications and Place of Jurisdiction | 14 |

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| | |
|:---|:---|
| **2** | Articles of Incorporation of Novartis AG |

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| | |
|:---|:---|
| **Section 1** | **Corporate Name, Registered Office, Purpose and Duration** |
|  | Article 1 |
| Corporate name, Registered office | Under the Corporate name<br> Novartis AG<br> Novartis SA<br> Novartis Inc.<br> there exists a company limited by shares with its registered office in Basel. |
|  | Article 2 |

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| | | |
|:---|:---|:---|
| Purpose | 1 | Purpose of the Company is to hold interests in enterprises in the area of health care or nutrition. The Company may also hold interests in enterprises in the areas of biology, chemistry, physics, information technology or related areas. |
|  | 2 | The Company may acquire, mortgage, liquidate or sell real estate and intellectual property rights in Switzerland or abroad. |
|  | 3 | In pursuing its purpose, the Company strives to create sustainable value. |
|  |  | Article 3 |
| Duration |  | The duration of the Company is unlimited. |

---

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| | | |
|:---|:---|:---|
| **Section 2** |  | **Share Capital** |
|  |  | Article 4 |
| Share capital |  | The share capital of the Company is CHF 1 138 738 876, fully paidin and divided into 2 277 477 752 registered shares. Each share has a nominal value of CHF 0.50. |
|  |  | Article 5 |
| Shareholders register and restrictions of registration, Nominees | 1 | The Company shall maintain a shareholders register showing the last names, first names, domicile, address and nationality (in the case of legal entities the registered office) of the holders or usufructuaries of registered shares. |

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| | |
|:---|:---|
| 2 | Upon request acquirers of registered shares are registered in the shareholders register as shareholders with the right to vote, provided that they declare explicitly to have acquired the registered shares in their own name and for their own account. Subject to the restrictions set forth in paragraph 6 of this article, no person or entity shall be registered with the right to vote for more than 2% of the registered share capital as set forth in the commercial register. This restriction of registration also applies to persons who hold some or all of their shares through nominees pursuant to this article. All of the foregoing is subject to Article 685d paragraph 3 of the Swiss Code of Obligations. |

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| | |
|:---|:---|
| **3** | Articles of Incorporation of Novartis AG |

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| | |
|:---|:---|
| 3 | The Board of Directors may register nominees with the right to vote in the share register to the extent of up to 0.5% of the registered share capital as set forth in the commercial register. Registered shares held by a nominee that exceed this limit may be registered in the shareholders register if the nominee discloses the names, addresses and the number of shares of the persons for whose account it holds 0.5% or more of the registered share capital as set forth in the commercial register. Nominees within the meaning of this provision are persons who do not explicitly declare in the request for registration to hold the shares for their own account and with whom the Board of Directors has entered into a corresponding agreement. |

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| | |
|:---|:---|
| 4 | Corporate bodies and partnerships or other groups of persons or joint owners who are interrelated to one another through capital ownership, voting rights, uniform management or otherwise linked as well as individuals or corporate bodies and partnerships who act in concert to circumvent the regulations concerning the limitation of participation or the nominees (especially as syndicates), shall be treated as one single person or nominee within the meaning of paragraphs 2 and 3 of this article. |

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| | |
|:---|:---|
| 5 | After hearing the registered shareholder or nominee, the Board of Directors may cancel registrations in the shareholders register with retroactive effect as of the date of registration if the registration was effected based on false information. The respective shareholder or nominee shall be informed immediately of the cancellation of the registration. |

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| | |
|:---|:---|
| 6 | The Board of Directors shall specify the details and give the necessary orders concerning the adherence to the preceding regulations. In particular cases it may allow exemptions from the limitation for registration in the share register or the regulation concerning nominees. It may delegate its duties. |

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7 The limitation for registration in the share register provided for in this article shall also apply to shares acquired or subscribed by the exercise of subscription, option or conversion rights.

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| | | |
|:---|:---|:---|
|  |  | Article 6 |
| Form of shares | 1 | Subject to paragraphs 2 and 4 of this article, the registered shares of the Company are issued as uncertificated securities (in terms of the Swiss Code of Obligations) and as book entry securities (in terms of the Book Entry Securities Act). |
|  | 2 | The Company may withdraw shares issued as book entry securities from the custodian system (Verwahrungssystem). |
|  | 3 | Provided that the shareholder is registered in the shareholders register, the shareholder may request from the Company a statement of his or her registered shares at any time. |

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| | |
|:---|:---|
| **4** | Articles of Incorporation of Novartis AG |

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| | |
|:---|:---|
| 4 | The shareholder has no right to the printing and delivery of certificates. The Company may, however, print and deliver certificates (individual share certificates, certificates or global certificates) for shares at any time. The Company may, with the consent of the shareholder, cancel issued certificates that are returned to the Company. |

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Article 7

Exercise of rights 1 The shares are not divisible. The Company accepts only one representative per share.

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| | |
|:---|:---|
| 2 | The right to vote and the other rights associated with a registered share may only be exercised vis-à-vis the Company by a shareholder, usufructuary or nominee who is registered in the share register. |

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| | |
|:---|:---|
| **Section 3** | **Corporate Bodies** |
|  | **A. General Meeting of Shareholders** |
|  | Article 8 |
| Competence | The General Meeting of Shareholders is the supreme body of the Company. |
|  | Article 9 |
| General Meetings a. Annual General Meeting | The Annual General Meeting of Shareholders shall be held each year within six months after the close of the financial year of the Company. |

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| | | |
|:---|:---|:---|
|  |  | Article 10 |
| b. Extraordinary General Meetings of Shareholders | 1 | Extraordinary General Meetings of Shareholders shall take place upon request of the Board of Directors or the Auditors. |
|  | 2 | Furthermore, Extraordinary General Meetings of Shareholders shall be convened upon resolution of a General Meeting of Shareholders or if it is required by one or more shareholders who are representing in the aggregate not less than 5% of the share capital and submit a petition signed by such shareholder or shareholders specifying the items for the agenda and the proposals. |
|  |  | Article 11 |

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Convening of General Meetings of Shareholders 1 General Meetings of Shareholders shall be convened by the Board of Directors at the latest twenty days before the date of the meeting. The meeting shall be convened by way of a notice appearing once in the Swiss Official Gazette of Commerce

2 The content of a notice of meeting is governed by the law.

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| | |
|:---|:---|
| **5** | Articles of Incorporation of Novartis AG |

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| | | |
|:---|:---|:---|
|  |  | Article 12 |
| Agenda | 1 | One or more shareholders whose combined shareholdings represent an aggregate nominal value of at least CHF 1 million may demand that an item be included in the agenda of a General Meeting of Shareholders. Such a demand must be made in writing at the latest forty-five days before the meeting and shall specify the items and the proposals of such a shareholder. If an explanatory statement is to be included in the notice of meeting, it must be submitted within the same period and formulated in a short, clear and concise manner. |
|  | 2 | No resolution shall be passed at a General Meeting of Shareholders on matters for which no proper notice was given. This provision shall not apply to proposals to convene an Extraordinary General Meeting of Shareholders or to initiate a special investigation. |
|  |  | Article 12a |
| Electronic Participation | 1 | The Board of Directors may foresee that shareholders who cannot be present at the venue of the General Meeting of Shareholders may exercise their rights through electronic means. |
|  | 2 | The Board of Directors may at any time until June 30, 2028 also order that the General Meeting of Shareholders be held electronically without a venue. |

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Article 13 <br>

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| | |
|:---|:---|
| Presiding officer, Minutes, Vote counters<sub>1</sub> | The General Meeting of Shareholders shall take place at the registered office of the Company, unless the Board of Directors decides otherwise. The Chair of the Board of Directors or in the Chair's absence a Vice-Chair or any other member of the Board of Directors designated by the Board of Directors shall take the chair. |

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|:---|:---|
| 2 | The presiding officer shall appoint a secretary and the vote counters. The minutes shall be signed by the presiding officer and the secretary. |

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| | | |
|:---|:---|:---|
|  |  | Article 14 |
| Proxies | 1 | The Board of Directors may issue regulations regarding the participation and the representation at the General Meeting of Shareholders and may allow electronic proxies without qualified signatures. |
|  | 2 | A shareholder can be represented by a legal representative or, by means of a written proxy, by a representative of choice. Furthermore, a shareholder may be represented by the Independent Proxy (in German: *Unabhängiger Stimmrechtsvertreter*). |
|  | 3 | The General Meeting of Shareholders shall elect the Independent Proxy for a term of office lasting until completion of the next Annual General Meeting of Shareholders. Re-election is possible. |
|  | 4 | If the Company does not have an Independent Proxy, the Board of Directors shall appoint the Independent Proxy for the next General Meeting of Shareholders. |

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| | |
|:---|:---|
| **6** | Articles of Incorporation of Novartis AG |

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Article 15 <br>

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| | |
|:---|:---|
| Voting rights | Each share provides entitlement to one vote. |

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Article 16 <br>

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|:---|:---|
| Resolutions, Elections<sub>1</sub> | Unless the law requires otherwise, the General Meeting passes resolutions and elections with the absolute majority of the votes validly represented. |

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2 Resolutions and elections shall be taken either on a show of hands or by electronic voting, unless the General Meeting decides for, or the presiding officer orders, a secret ballot.

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|:---|:---|
| 3 | The presiding officer may at any time order to repeat an election or resolution taken on a show of hands with a secret ballot, if the presiding officer doubts the results of the vote. In this case, the preceding election or resolution taken on a show of hands is deemed not to have taken place. |

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4 If no election has taken place at the first ballot and if there is more than one candidate, the presiding officer shall order a second ballot in which the relative majority shall be decisive.

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| | |
|:---|:---|
|  | Article 17 |
| Powers of the General Meeting of Shareholders | The following powers shall be vested exclusively in the General Meeting of Shareholders: |

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a) To adopt and amend the Articles of Incorporation;

b) To elect and remove the members of the Board of Directors, the Chair of the Board of Directors, the members of the Compensation Committee, the Independent Proxy and the Auditors;

c) To approve the management report (if required), the consolidated financial statements and the report on non-financial matters;

d) To approve the financial statements and to decide on the appropriation of available earnings shown on the balance sheet, in particular with regard to dividends (including any repayment of the statutory capital reserves and the approval of interim dividends and the interim financial statements required for such purpose);

e) To approve the aggregate amounts of compensation of the Board of Directors and the Executive Committee in accordance with Article 29 of these Articles of Incorporation;

f) To grant discharge to the members of the Board of Directors and to the members of the Executive Committee;

g) To delist the shares of the Company; and

h) To decide on matters that are reserved by law or by the Articles of Incorporation to the General Meeting of Shareholders.

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| | |
|:---|:---|
| **7** | Articles of Incorporation of Novartis AG |

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| | | |
|:---|:---|:---|
|  | Article 18 | Article 18 |
| Special quorum | The approval of at least two-thirds of the votes represented is required for resolutions of the General Meeting of Shareholders on: | The approval of at least two-thirds of the votes represented is required for resolutions of the General Meeting of Shareholders on: |
|  | a) | An alteration of the purpose of the Company; |
|  | b) | The consolidation of shares, unless the approval of all affected shareholders is required; |
|  | c) | An increase of the share capital out of equity, by contributions in kind or by way of set off against a receivable and the grant of special rights; |
|  | d) | A restriction or suspension of rights of option to subscribe; |
|  | e) | The introduction of a conditional capital or a capital band; |
|  | f) | An implementation of restrictions on the transfer of registered shares and the removal of such restrictions; |
|  | g) | The creation of shares with increased voting powers; |
|  | h) | The change of the currency of the share capital; |
|  | i) | The introduction of the deciding vote for the presiding officer at the General Meeting of Shareholders; |
|  | j) | A provision in the Articles of Incorporation allowing to hold the General Meeting of Shareholders abroad; |
|  | k) | The delisting of the shares of the Company; |
|  | l) | A change of location of the registered office of the Company; |
|  | m) | The introduction of an arbitration clause in the Articles of Incorporation; |
|  | n) | The merger, split or transformation of the Company under the Merger Act (subject to mandatory statutory provisions); and |
|  | o) | The dissolution of the Company. |

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| | | |
|:---|:---|:---|
|  |  | **B. Board of Directors** |
|  |  | Article 19 |
| Number of Directors |  | The Board of Directors shall consist of a minimum of 8 and a maximum of 16 members. |
|  |  | Article 20 |
| Term of office | 1 | The members of the Board of Directors and the Chair of the Board of Directors shall be elected individually by the General Meeting of Shareholders for a term of office lasting until completion of the next Annual General Meeting of Shareholders. |
|  | 2 | Members whose term of office has ended may be immediately re-elected, subject to paragraph 3 hereinafter. |
|  | 3 | A member shall not serve on the Board for more than 12 years. The Board of Directors may, under certain circumstances and if deemed in the best interests of the Company, recommend exceptions to this rule to the General Meeting of Shareholders. |

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| | |
|:---|:---|
| **8** | Articles of Incorporation of Novartis AG |

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| | | |
|:---|:---|:---|
|  |  | Article 21 |
| Organization | 1 | The Board of Directors constitutes itself in compliance with legal requirements and taking into consideration the resolutions of the General Meeting of Shareholders. It shall elect one or two Vice-Chairs. It shall appoint a secretary, who need not be a member of the Board of Directors. |
|  | 2 | If the office of the Chair of the Board of Directors is vacant, the Board of Directors shall appoint a new Chair from amongst its members for the remaining term of office. |
|  |  | Article 22 |
| Convening of meetings |  | The Chair shall convene meetings of the Board of Directors if and when the need arises or if a member so requires in writing. |
|  |  | Article 23 |
| Meetings, Resolutions | 1 | The organization of the meetings, including the quorum and the passing of resolutions, is regulated by the Board of Directors in the organizational regulations. |
|  | 2 | The presiding officer shall not have the deciding vote. |

---

Article 24 <br>Powers of the Board of Directors 1 The Board of Directors has in particular the following non-delegable and inalienable duties:

a) The
 ultimate direction of the Company's business and issuing of the necessary directives;

b) The
 determination of the organization of the Company;

c) The
 determination of the principles of accounting, financial controlling and financial planning;

d) The
 appointment and removal of the persons entrusted with the management and representation of
 the Company (including the CEO and the other members of the Executive Committee);

e) The
 ultimate supervision of the persons entrusted with the management of the Company, specifically
 in view of their compliance with the law, Articles of Incorporation, regulations and directives;

f) The preparation of the annual report, the compensation report and
the report on non-financial matters in accordance with the provisions of the law and the Articles of Incorporation, as well as further
reports which must be approved by the Board of Directors;

g) The
 preparations for the General Meeting of Shareholders and carrying out of the resolutions
 of the General Meeting of Shareholders;

h) The filing of a request for a moratorium and the notification to
the court in the event of over-indebtedness;

---

| | |
|:---|:---|
| **9** | Articles of Incorporation of Novartis AG |

---

i) The adoption of resolutions concerning the implementation of changes
in share capital to the extent that such power is vested in the Board of Directors, as well as resolutions concerning the confirmation
of changes in share capital and respective amendments to the Articles of Incorporation; and

j) All further non-delegable and inalienable duties of the Board of
Directors provided for by the law.

---

| | | |
|:---|:---|:---|
|  | 2.0 | In addition, the Board of Directors can pass resolutions with respect to all matters which are not reserved to the authority of the General Meeting of Shareholders by law or by these Articles of Incorporation. |
|  |  | Article 25 |
| Delegation of powers |  | The Board of Directors may, within the limits of the law and the Articles of Incorporation, delegate the management of the Company in whole or in part to one or several of its members (including to ad hoc or permanent committees of the Board of Directors) or to third persons (Executive Committee). |
|  |  | Article 26 |
| Signature power |  | The Board of Directors shall designate those of its members as well as those third persons who shall have legal signatory power for the Company, and shall further determine the manner in which such persons may sign on behalf of the Company. |

---

---

| | | |
|:---|:---|:---|
|  |  | Article 27 |
| Organization and powers of the Compensation Committee | 1 | The Compensation Committee shall consist of a minimum of 3 and a maximum of 5 members of the Board of Directors. |
|  | 2 | The members of the Compensation Committee shall be elected individually by the General Meeting of Shareholders for a term of office lasting until completion of the next Annual General Meeting of Shareholders. Members of the Compensation Committee whose term of office has expired shall be immediately eligible for re-election. |
|  | 3 | If there are vacancies on the Compensation Committee, the Board of Directors shall appoint substitutes for the remaining term of office. |
|  | 4 | The Board of Directors shall elect a chair of the Compensation Committee. The Board of Directors shall, within the limits of the law and the Articles of Incorporation, define the organization of the Compensation Committee in regulations. |
|  | 5 | The Compensation Committee has the following powers: |

---

a) Develop
 a compensation strategy in line with the principles described in the Articles of Incorporation
 and submit it for approval to the Board of Directors;

b) Propose
 to the Board of Directors the principles and structure of the compensation plans;

---

| | |
|:---|:---|
| **10** | Articles of Incorporation of Novartis AG |

---

c) Support
 the Board of Directors in preparing the proposals to the General Meeting of Shareholders
 regarding the compensation of the members of the Board of Directors and the Executive Committee;

d) Submit
 the compensation report to the Board of Directors for approval;

e) Inform
 the Board of Directors about policies, programs and key decisions as well as comparisons
 of compensation levels at key competitors;

f) Regularly
 report to the Board of Directors on the decisions and deliberations of the Compensation Committee;

g) Assume
 other responsibilities assigned to it by law, the Articles of Incorporation or by the Board
of Directors.

---

| | | |
|:---|:---|:---|
|  | 6.0 | The Board of Directors issues regulations to determine for which positions of the Board of Directors and of the Executive Committee the Compensation Committee shall submit proposals regarding compensation, and for which positions it shall determine the compensation in accordance with the Articles of Incorporation. |
|  |  | **C. Auditors** |
|  |  | Article 28 |
| Term, Powers and Duties |  | The Auditors, who shall be elected by the General Meeting of Shareholders each year, shall have the powers and duties vested in them by law. |

---

---

| | |
|:---|:---|
| **Section 4** | **Compensation of the Board of Directors and the Executive Committee** |

---

---

| | | |
|:---|:---|:---|
|  |  | Article 29 |
| Approval of compensation by the General Meeting of Shareholders | 1 | The General Meeting of Shareholders shall approve annually and separately the proposals of the Board of Directors in relation to the maximum aggregate amount of: |

---

a) Compensation of the Board of
Directors for the period until the next Annual General Meeting of Shareholders; and

b) Compensation of the Executive Committee paid, promised or granted for the following financial year. <br>The Board of Directors may submit for approval by the General Meeting of Shareholders additional proposals relating to the same or different periods.

---

| | |
|:---|:---|
| **11** | Articles of Incorporation of Novartis AG |

---

---

| | |
|:---|:---|
| 2 | If the General Meeting of Shareholders rejects the proposal of the Board of Directors for the total compensation of the Board of Directors and/or the Executive Committee, the decision on how to proceed shall reside with the Board of Directors. The options for the Board of Directors shall be to either convene an Extraordinary General Meeting to submit a new compensation proposal, or to determine the compensation for the corresponding period on an interim basis, subject to approval at the next Annual General Meeting of Shareholders. |

---

3 Notwithstanding the preceding paragraphs, the Company or companies controlled by it may pay out compensation prior to approval by the General Meeting of Shareholders subject to subsequent approval by a General Meeting of Shareholders.

---

| | | |
|:---|:---|:---|
|  | 4.0 | The Board of Directors shall submit the compensation report to an advisory vote of the General Meeting of Shareholders. |
|  |  | Article 30 |
| Additional amount |  | If the maximum aggregate amount of compensation already approved by the General Meeting of Shareholders is not sufficient to also cover the compensation of one or more members who become members of the Executive Committee during a compensation period for which the General Meeting of Shareholders has already approved the compensation of the Executive Committee, the Company or companies controlled by it shall be authorized to pay or grant to such member(s) an additional amount during the compensation period(s) already approved. The total additional amount for each relevant compensation period for which approval by the General Meeting of Shareholders has already been obtained shall not exceed (in full and not *pro rata temporis*) 40% of the aggregate amount of compensation of the Executive Committee last approved by the General Meeting of Shareholders per compensation period. |

---

---

| | | |
|:---|:---|:---|
|  |  | Article 31 |
| General compensation principles | 1 | Compensation of the non-executive members of the Board of Directors comprises fixed compensation elements only. In particular, non-executive members of the Board of Directors shall receive no company contributions to any pension plan, no performance-related elements and no financial instruments (e.g. options). |

---

2 Compensation of the members of the Executive Committee comprises fixed and variable compensation elements. Fixed compensation comprises the base salary and may comprise other compensation elements and benefits. Variable compensation may comprise short-term and long-term compensation elements.

---

| | |
|:---|:---|
| **12** | Articles of Incorporation of Novartis AG |

---

---

| | | |
|:---|:---|:---|
|  | 3 | Compensation (to non-executive members of the Board of Directors and to members of the Executive Committee) may be paid or granted in the form of cash, shares, other benefits or in kind. Compensation to members of the Executive Committee may also be paid or granted in the form of financial instruments or similar units. Compensation may be paid by the Company or companies controlled by it. The Board of Directors determines the valuation of each compensation element on the basis of the principles that apply to the establishment of the compensation report. |
|  |  | Article 32 |
| Variable compensation | 1 | The variable compensation paid or granted to the members of the Executive Committee in a certain year shall consist of compensation elements from short- and long-term compensation plans (as defined in this Article 32). |
|  | 2 | The short-term compensation plans are based on performance metrics that take into account the performance of the Novartis Group and/or parts thereof, and/or individual targets. Achievements are generally measured based on the one-year period to which the short-term compensation relates. The short-term compensation pay-outs shall be subject to caps that may be expressed as predetermined multipliers of the respective target levels. |
|  | 3 | The long-term compensation plans are based on performance metrics that take into account strategic objectives of the Novartis Group (such as financial, innovation, Shareholder return and/or other metrics). Achievements are generally measured based on a period of not less than three years. The long-term compensation pay-outs shall be subject to caps that may be expressed as predetermined multipliers of the respective target levels. |
|  | 4 | The Board of Directors or, to the extent delegated to it, the Compensation Committee determines performance metrics, target levels, and their achievement. |
|  | 5 | The Board of Directors or, to the extent delegated to it, the Compensation Committee determines grant, vesting, blocking, exercise and forfeiture conditions of the compensation; they may provide for continuation, acceleration or removal of vesting and exercise conditions, for payment or grant of compensation assuming target achievement or for forfeiture in the event of predefined events such as death, disability, retirement or termination of an employment or mandate agreement. |

---

---

| | |
|:---|:---|
| **13** | Articles of Incorporation of Novartis AG |

---

---

| | | |
|:---|:---|:---|
|  |  | Article 33 |
| Agreements with Members of the Board of Directors and of the Executive Committee | 1 | The Company or companies controlled by it may enter into agreements with members of the Board of Directors relating to their compensation for a term not exceeding the term of office of the respective members of the Board of Directors. The Company or companies controlled by it may enter into contracts of employment with members of the Executive Committee for a fixed term not exceeding one year or for an indefinite period of time with a notice period not exceeding 12 months. |
|  | 2 | Contracts of employment with members of the Executive Committee may contain a prohibition of competition for the time after the end of employment if this is commercially justified. The overall consideration for such prohibition shall not exceed the average annual compensation for the three preceding business years. |
|  |  | Article 34 |
| Mandates outside of the Novartis Group | 1 | No member of the Board of Directors may hold more than 10 additional mandates in other companies, of which no more than 4 additional mandates shall be in other listed companies. Chairs of the board of directors of other listed companies count as two mandates. Each of these mandates shall be subject to approval by the Board of Directors. |
|  | 2 | No member of the Executive Committee may hold more than 6 additional mandates in other companies, of which no more than 2 additional mandates shall be in other listed companies. Each of these mandates shall be subject to approval by the Board of Directors. Members of the Executive Committee are not allowed to hold chairs of the board of directors of other listed companies. |
|  | 3 | The following mandates are not subject to these limitations: |
|  | a) | Mandates in companies which are controlled by the Company; and |
|  | b) | Mandates which a member of the Board of Directors or of the Executive Committee holds at the request of the Company or companies controlled by it. No member of the Board of Directors or of the Executive Committee shall hold more than 5 such mandates. |

---

---

| | |
|:---|:---|
| 4.0 | Mandates shall mean any membership in the board of directors, in the executive board or in the advisory board, or a comparable function under foreign law, in a company with an economic purpose. Mandates in different legal entities which are under joint control are deemed one mandate. |
| 5.0 | The Board of Directors may issue regulations that may determine additional restrictions, taking into account the position of the respective member. |

---

---

| | |
|:---|:---|
| **14** | Articles of Incorporation of Novartis AG |

---

---

| | | |
|:---|:---|:---|
|  |  | Article 35 |
| Loans |  | No loans or credits shall be granted to the members of the Board of Directors or the Executive Committee. |
| **Section 5** |  | **Annual Financial Statements, Consolidated Financial Statements and Profit Allocation** |
|  |  | Article 36 |
| Financial year |  | The Board of Directors shall prepare for each financial year as of 31 December an annual report consisting of financial statements with a management report if required and the consolidated financial statements. |
|  |  | Article 37 |
| Allocation of profit shown on the balance sheet, Reserves | 1 | The allocation of the profit shown on the balance sheet shall be determined by the General Meeting of Shareholders subject to the legal provisions. The Board of Directors shall submit to the General Meeting of Shareholders its proposals. |
|  | 2 | In addition to statutory reserves additional reserves may be accrued. |
|  | 3 | Dividends which have not been claimed within five years after the due date fall back to the Company and shall be allocated to the general reserves. |
| **Section 6** |  | **Publications and Place of Jurisdiction** |
|  |  | Article 38 |
| Publications | 1 | Notifications to shareholders and external communications of the Company shall be made in the Swiss Official Gazette of Commerce. The Board of Directors may designate additional publication organs. |
|  | 2 | Notices to shareholders may instead or in addition be sent (i) by regular mail to their addresses entered in the share register, (ii) by email or (iii) in any other form that the Board of Directors deems appropriate. |
|  |  | Article 39 |
| Place of jurisdiction |  | The exclusive place of jurisdiction for any disputes arising from or in connection with the shareholdership in the Company shall be at the registered office of the Company. |

---

## Exhibit 4.2

**Exhibit 4.2**

![](tm2310162d1_ex4-2img001.jpg)

---

| |
|:---|
| **Novartis AG** |
| 4002 Basel, Switzerland |
|© March 2023, Novartis AG |

---

---

| | |
|:---|:---|
| **1** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

---

---

| | | |
|:---|:---|:---|
|  | **Table of Contents** |  |
| **Section 1** | Scope of the Regulations, Organization in general | 2.0 |
| **Section 2** | General Provisions | 2.0 |
| **Section 3** | Meetings of the Board, the Board Committees and the Executive Committee | 3.0 |
| **Section 4** | Board of Directors | 4.0 |
| **Section 5** | Executive Committee | 8.0 |
| **Section 6** | Internal Audit | 9.0 |
| **Section 7** | Effectiveness, Amendments | 10.0 |
| **Appendix I** | Board Committees Charter | 11.0 |
| **Appendix II** | Independence Criteria for the Board and the Board Committees | 23.0 |
|  | Abbreviations and Definitions | 26.0 |

---

All references to individuals apply to both male and female persons.

---

| | |
|:---|:---|
| **2** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

---

---

| | |
|:---|:---|
| **Section 1** | **Scope of the Regulations, Organization in general** |
|  | Article 1 |
| Scope | These Regulations govern the internal organization as well as the duties, powers and responsibilities of the following executive bodies and persons of the Company: |
|  | – Board and its Committees |
|  | – Board Chair |
|  | – Vice-Chair |
|  | – Lead Independent Director |
|  | – CEO |
|  | – Executive Committee (including its sub-committees) and |
|  | – Internal Audit |
|  | Article 2 |
| Company Structure | The Company is a holding company, which directly or indirectly owns a global group of companies that conduct the Business. To ensure proper functioning of the Business in the interests of the Company, its shareholders and other relevant stakeholders, and to comply with various requirements imposed by relevant laws and regulatory authorities, the Board shall supervise and, where necessary and appropriate, provide overall strategic direction for the Business. |
| **Section 2** | **General Provisions** |
|  | Article 3 |
| Duty of Care and Loyalty | Each Director or Executive is under the duty to carry out his/her responsibilities with due care and to safeguard and further the interests of the Group, the Company, its shareholders and other relevant stakeholders, including the creation of long-term value. |
|  | Article 4 |
| Conflict of Interest | Each Director or Executive arranges his/her personal and business affairs so as to avoid an actual or apparent Conflict of Interest. |
|  | No Director or Executive shall participate in decisions and resolutions on matters, which affect, or reasonably might affect, his/her interests or the interests of a person close to him/her (but he or she may participate in the discussion). If the Director or Executive is in a position of a permanent Conflict of Interest or any other non-solvable situation that hinders him/her in carrying out his/her duties to the full, he/she shall offer his/her resignation. |
|  | Each Director or Executive must make a notification immediately, if the circumstances change so that it might affect or appear to affect the Director's or Executive's independence or in case of a Conflict of Interest. In case of a new mandate, notification must occur prior to accepting such new mandate. |

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---

| | |
|:---|:---|
| **3** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

---

Required disclosures include (but are not limited to):

(i) a material change
 (or contemplated change) of his/her business or professional affiliations or responsibilities; and/or

(ii) any change of circumstances
 that may affect or appear to affect his/her independence or give rise to a Conflict of Interest.

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| | |
|:---|:---|
| Disclosure must be made by: | Disclosure must be made by: |
| (i) | the Board Chair to the Chair of the GSNC; and by |
| (ii) | a Director or the CEO to the Board Chair; and by |
| (iii) | an Executive to the CEO. |

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---

| | |
|:---|:---|
|  | The Board Chair, the CEO and the Chair of the GSNC, respectively, must review the disclosures and inform the Board, respectively the Executive Committee, with a corresponding proposal for appropriate mitigating measures, if any. |
|  | Article 5 |
| Confidentiality | Each Director and Executive keeps at all times strictly confidential all information – except information already in the public domain – relating to the Company and/or the Group, which the member has learned during the exercise of the duties. This obligation and duty continue even after the expiration of the term of office. |
|  | Documents of the Company and/or the Group must be returned by the Director or Executive at the latest on expiry of the term of office. If required, e.g. in case of legal proceedings, the Director or Executive can access relevant documents at the office of the Corporate Secretary. |
| **Section 3** | **Meetings of the Board, the Board Committees and the Executive Committee** |
|  | Article 6 |
| No Representation of Members | A Director or Executive who is not able to participate in a Board, Board Committee or an Executive Committee meeting may not be represented by another Director or Executive or any other person. |
|  | Article 7 |
| Quorum, Majority Requirements | Unless stated otherwise in these Regulations, the presence in person, by telephone, by video conference or other technical means of a majority of the members is required for any meeting. No such quorum shall be required for resolutions of the Board concerning an amendment of the Articles (article 647 CO). |
|  | If the chair does not participate, the meeting will be chaired by the deputy or, in his/her absence, by any member appointed by the other members as *ad hoc* chair. |

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| | |
|:---|:---|
| **4** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

---

---

| | |
|:---|:---|
|  | Resolutions require the affirmative majority of the votes cast. If an item is, however, not on the agenda, resolutions are passed by an affirmative vote of at least two-thirds of the Directors or Executives present at a meeting. |
|  | In the event of a tie on any issue, (i) in a Board Committee, the full Board decides the issue, and (ii) in the Executive Committee, the CEO decides the issue. |
|  | Article 8 |
| Circular Resolutions | A proposal for a circular resolution must be communicated to all members, giving a deadline for responding, and is only deemed to have passed if: |

---

(i) more than two-thirds
 of all members cast a vote or give written notice that they abstain (written notice can include email notice);

(ii) an absolute majority of
 all members casting a vote approve the proposed resolution; and

(iii) no member requests a meeting
 within the deadline for responding in relation to the subject matter of the proposed resolution.

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| | |
|:---|:---|
|  | A circular resolution must be recorded under a separate heading in the minutes of the following meeting. |
|  | Article 9 |
| Secretary, Minutes | The Board and the Board Committees each appoint a secretary, who need not be a member of the body. |
|  | The secretaries of the Board and the Board Committees, and the Chief Legal Officer in case of the Executive Committee, keep the meeting minutes, which contain all resolutions adopted at the meeting and the key decision-making factors. |
|  | Article 10 |
| Application to other Bodies | Articles 3 – 9 apply analogously to all other management committees of the Company and their members. |
| **Section 4** | **Board of Directors** |
|  | Article 11 |
| Independence | The majority of the Directors have to meet the independence criteria set forth in Appendix II. |
|  | Article 12 |
| Duties of the Board | The Board is the ultimate executive body of the Company. |

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---

| | |
|:---|:---|
| **5** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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---

| | |
|:---|:---|
| It shall resolve all Business matters, which are not reserved to the authority of the General Meeting or to other executive bodies of the Company by law, the Articles, or these Regulations. | It shall resolve all Business matters, which are not reserved to the authority of the General Meeting or to other executive bodies of the Company by law, the Articles, or these Regulations. |
| In particular, the Board has the following duties: | In particular, the Board has the following duties: |
| a) | The ultimate direction of the Business, including, without limitation, the taking of resolutions and the giving of instructions or overall guidance regarding the following matters (where applicable, the duties of the Board are further defined and specified in internal regulations): |

---

---

| |
|:---|
| The strategy upon recommendation of the Executive Committee (including also key ESG aspects). |
| The entry into new areas of activity and withdrawal from existing areas of the Business; acquisitions and divestments of companies, participations in companies or businesses, or incorporations or liquidations of companies or businesses, if such matters are of fundamental significance to the Business. |
| The opening and closing down of sites of fundamental significance to the Business. |
| The initiation and settlement of legal proceedings of funda-mental significance to the Business. |
| The setting of financial targets. |
| The review and approval of corporate policies that are fundamental to the Group, as determined by the Board Chair and the CEO. |
| The adoption from time to time of further regulations and instructions regarding the organization of the Business and the duties and responsibilities of the executive bodies. |

---

b) The
 determination of the organization of the Company and the Group.

c) The manner
 of governance of the Group.

d) The regular
 review of the Group's culture.

e) The review
 of the Group's risk management system and of the most significant risks and how these are managed.

f) The determination
 of the Group's accounting system, financial controls and financial planning.

g) The review
 and approval of the annual report of the Company and of the Group, incl. the Compensation Report and the annual reporting on non-financial
 matters.

h) The nomination
 or appointment, removal, determination of duties and responsibilities, and succession plans of the following persons (subject to
 the powers of the General Meeting):

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| |
|:---|
| Board Chair |
| Vice-Chair |
| Lead Independent Director |
| Board Committee members and Chairpersons |
| CEO |

---

---

| | |
|:---|:---|
| **6** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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– Executives <br> – Independent Proxy <br> – Such other persons as the Board may determine, from time to time, as having significant impact on the Business.

i) The composition
 of the Board, including the appropriate skills and experiences to be considered in succession planning.

j) The designation of those
 persons who have signatory power for the Company and the manner in which such persons may sign on behalf of the Company.

k) The ultimate supervision
 of the persons entrusted with the management of the Business, specifically in view of their compliance with laws, the Articles, these
 Regulations and other applicable regulations, directives and instructions.

l) The preparations for the
 General Meeting and carrying out the resolutions of the General Meeting, including the preparation of the proposals to the General
 Meeting related to the compensation of the Board and of the Executive Committee and to the Compensation Report, as per the Articles.

m) The notification of the
 court if liabilities exceed assets.

n) The adoption of resolutions
 concerning an increase of the share capital to the extent that such power is vested in the Board (article 651 paragraph 4 CO), as
 well as resolutions concerning confirmation of capital increases and related amendments to the Articles. The adoption of such resolutions
 shall be exempted from the majority requirement outlined in article 7.

o) The determination of (i)
 the compensation strategy and of the principles, structure and design of compensation plans for the Executive Committee, (ii) the
 long-term incentive/equity plans,

(iii) the compensation of the
 Directors and of the CEO to be presented to the shareholders, and of the terms of employment of the CEO, (iv) the Group and divisional
 financial, strategic and operational targets and the evaluation of target achievement.

p) The determination of the
 maximum aggregate amount or maximum partial amounts of compensation, in the event the General Meeting has not approved a proposal
 of the Board, as per the Articles.

q) The determination of (i)
 whether or not a Director is independent, based on a proposal by the GSNC, and (ii) whether or not the ACC Directors meet the financial
 literacy and expertise standards.

r) The decision on appropriate
 measures in case of a disclosure in accordance with article 4 of these Regulations.

s) The approval of other business,
 if such business exceeds the authority delegated from time to time by the Board to the Board Committees or to the Executive Committee.

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| | |
|:---|:---|
| **7** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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| | |
|:---|:---|
|  | Article 13 |
| Delegation of Management | Where not stipulated as a Board responsibility in the law, the Articles or these Regulations, the Board delegates the management of the Business to the Executive Committee, pursuant and subject to these Regulations. |
|  | Article 14 |
| Meetings, Agenda | The Board meets at the invitation of the Board Chair as often as may be required. |
|  | Invitations for Board meetings contain the meeting agenda and are sent out at least five business days in advance, except for urgent matters. Also, any Director may request a meeting for a specific purpose or the inclusion of a certain item on the agenda. |
|  | Article 15 |
| Right to Request Information | Directors have full and unrestricted access to the management and employees of the Group in the execution of their duties. |
|  | Article 16 |
| Independent Advisors | The Board has the authority to retain independent advisors for any matters within the scope of its responsibilities. |
|  | Article 17 |
| Evaluation of Board Performance | The Board conducts an annual evaluation of the performance of the Board, of the Board Committees and of the Board Chair. |
|  | Article 18 |
| Board Committees | The Board may establish ad hoc Board Committees and has the following permanent Board Committees: |

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---

| |
|:---|
| GSNC (Governance, Sustainability and Nomination Committee) |
| ACC (Audit and Compliance Committee) |
| CC (Compensation Committee) |
| RC (Risk Committee) |
| STC (Science & Technology Committee) |

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| | |
|:---|:---|
|  | The composition and duties of the permanent Board Committees are set forth in Appendix I. |
|  | Article 19 |
| Board Chair | In addition to other duties described in these Regulations and the Articles, the Board Chair has the following duties: |

---

a) Provides leadership
 to the Board in its governance role, coordinating the tasks within the Board.

b) Coordinates,
 together with the Chairpersons, the work of the Board Committees.

c) Establishes
 and keeps a close working relationship with the CEO, providing advice and support while respecting the fact that the day-to-day management
 responsibility is delegated to the Executive Committee led by the CEO.

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| | |
|:---|:---|
| **8** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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d) Promotes
 effective relationships and communication between the Board, the CEO and the Executive Committee.

e) Takes
 the lead in crisis situations.

f) Together
 with the CEO, ensures effective communication with shareholders, other relevant stakeholders and the general public; and

g) Works
 closely with the CEO in evaluating Executives and in establishing succession plans for key management positions.

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| | |
|:---|:---|
|  | Article 20 |
| Vice-Chair a) | Once a year, the Vice-Chair leads the Board's annual assessment of the Board Chair. |
| b) | In case and as long as the Board Chair is incapacitated, the Vice-Chair assumes all of the Board Chair's responsibilities. |
|  | Article 20bis |
| Lead Independent Director | To support adequate control mechanisms, the Board can, if deemed appropriate and in the best interests of the Company, designate an experienced independent Director as Lead Independent Director with the following duties: |
| a) | Chairs the sessions of the independent Directors; and |
| b) | Leads the independent Directors in case of a crisis or matter requiring their separate consideration or decision. |

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| | |
|:---|:---|
|  | Every independent Director may request separate meetings of the independent Directors if the need arises. |
|  | The roles of the Vice-Chair and the Lead Independent Director can be held by two Directors or by one Director (combined role). |
| **Section 5** | **Executive Committee** |
|  | Article 21 |
| CEO | In addition to other duties that may be assigned by the Board, the CEO, supported by the Executive Committee, has the following duties: |

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a) Overall responsibility for the management and performance of the Business.

b) Leads the Executive Committee.

c) Builds and maintains an effective Executive Committee and proposes adequate succession
 planning to the Board.

d) Represents Novartis, in coordination with the Board Chair, with major customers,
 financial analysts, investors and the media.

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|:---|:---|
| **9** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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| | |
|:---|:---|
|  | Article 22 |
| Members of Executive Committee | The Executive Committee is headed by the CEO. It consists of such members as appointed or removed by the Board. |
|  | Article 23 |
| Duties of Executive Committee | The Executive Committee is responsible for the management of the Business. In particular, and without limitation, the Executive Committee has the following duties: |

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a) Regularly
 assess the achievement of the (financial and non-financial / ESG) targets for the Business.

b) Submit
 proposals to the Board or to one of the Board Committees for approval for items, requiring such approval based on these Regulations
 or further internal regulations.

c) Implement
 the decisions taken by the Board or the Board Committees.

d) Prepare
 and submit quarterly and annual reports for the attention of the Board or the Board Committees, and keep the Board or the Board Committees
 informed of all matters of fundamental significance to the Business and/or that are relevant to allow the Board or the Board Committees
 to fully perform their duties.

e) Implement
 modifications to the organization of the Business to ensure efficient operation of the Business and achievement of optimized consolidated
 results.

f) Ensure
 appropriate external stakeholder management, including an effective internal and external communication strategy.

g) Ensure
 that management capacity, financial and other resources are provided and used efficiently.

h) Deal with
 such other matters as are delegated by the Board or a Board Committee to the Executive Committee.

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| | |
|:---|:---|
|  | Article 24 |
| Sub-committees of the Executive Committee | The Executive Committee may delegate duties as stipulated in article 23 above to other executives and committees and may empower them to further delegate their responsibilities and authorities. Each such delegation must be in writing, and clear responsibilities and accountabilities must be established. The CEO ensures proper reporting to the Executive Committee as needed. |
| **Section 6** | **Internal Audit** |
|  | Article 25 |
| Duties of Internal Audit | The Internal Audit has to: |
| a) | Carry out operational and system audits, assisting the Divisions and Cross-Divisional Units in the accomplishment of objectives by providing an independent approach to the evaluation, improvement, and effectiveness of their risk management and internal control framework. All Divisions, Cross-Divisional Units and subsidiaries of the Group are subject to audit. |

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| | |
|:---|:---|
| **10** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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b) Prepare
 reports regarding the audits it has performed, and report to the ACC and to the CEO material irregularities, whether actual or suspected,
 without delay.

c) Perform
 such other functions and audits as assigned to it by the Board, the ACC or the CEO.

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| | |
|:---|:---|
| **Section 7** | **Effectiveness, Amendments** |
|  | Article 26 |
| Effectiveness, Amendments | These Regulations come into effect on March 7, 2023 and replace former regulations of the Board, the Board Committees and the Executive Committee. |
|  | These Regulations may only be amended or replaced by the Board. |

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| | |
|:---|:---|
| ![](tm2310162d1_ex4-2img002.jpg) | ![](tm2310162d1_ex4-2img002.jpg) |
| Dr. Joerg Reinhardt | Dr. Charlotte Pamer-Wieser |
| Board Chair | Corporate Secretary |

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|:---|:---|
| **11** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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| | | |
|:---|:---|:---|
| **Appendix I:** | **Board Committees Charter** |  |
| **Section 1** | General Provisions | 12.0 |
| **Section 2** | Roles and Responsibilities of the Board Committees |  |
|  | - Roles and Responsibilities of the GSNC | 13.0 |
|  | - Roles and Responsibilities of the ACC | 15.0 |
|  | - Roles and Responsibilities of the CC | 19.0 |
|  | - Roles and Responsibilities of the RC | 21.0 |
|  | - Roles and Responsibilities of the STC | 22.0 |

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|:---|:---|
| **12** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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| | |
|:---|:---|
| **Section 1** | **General Provisions** |
|  | These General Provisions contain additional organizational requirements for Board Committees in addition to the rules set forth in the Regulations. |
|  | Article 1 |
| Composition | The GSNC, the ACC, the RC and the STC each consist of a minimum of 3 members. The CC consists of a minimum of 3 and a maximum of 5 members. |
|  | The Board elects the Chairpersons of the Board Committees. |
|  | Article 2 |
| Independence, Qualifications | Each Director of the GSNC, ACC, and CC has to meet the independence criteria set forth in Appendix II. |
|  | Each ACC member must further be financially literate, including at least one member who has accounting and related financial management expertise ("audit committee financial expert"), as such qualifications are interpreted by the Board in its business judgment. |
|  | The "audit committee financial expert" must have |

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(i) an understanding
 of generally accepted accounting principles and financial statements;

(ii) the ability to assess the
 general application of such principles in connection with the accounting for estimates, accruals and reserves;

(iii) experience preparing, auditing,
 analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally
 comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Group's financial statements,
 or experience actively supervising one or more persons engaged in such activities;

(iv) an understanding of internal
 control over financial reporting; and

(v) an understanding of audit
 committee functions.

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| | |
|:---|:---|
|  | Article 3 |
| Coordination between ACC and RC | The Chairpersons of the RC and the ACC shall generally be appointed as members of the other Committee. To the extent appropriate, the Chairpersons of the ACC and the RC coordinate the work of the ACC and the RC, in particular to ensure that there are as few as possible overlaps. |

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|:---|:---|
| **13** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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| | |
|:---|:---|
|  | Article 4 |
| Meeting Participations and Interactions | Each Board Committee may invite to its meetings other Directors, Executives and such other persons, as the respective Board Committee deems appropriate to carry out its responsibilities. The Board Chair may attend the Board Committee meetings in consultation with the relevant Chairperson. |
|  | Special rules apply to the presence of the following persons at Board Committee meetings: |

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(i) An Executive
 shall not be present during the decision on his/her own pay at a CC meeting

(ii) Anyone with a personal
 interest in the matters to be discussed will be excluded from the GSNC, ACC, RC, and STC meeting, respectively.

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| | |
|:---|:---|
|  | Article 5 |
| Advisors, Investigations | The Board Committees shall have the authority to obtain advice and assistance from internal or external legal, accounting or other advisors. The ACC shall have the authority to conduct or authorize investigations into any matter within the scope of its responsibilities. |
|  | Article 6 |
| Debriefing to the Board | The Board Committees regularly report to the Board on its deliberations and decisions and on the items set forth in Section 2 of this Appendix I. Other matters will be reported, as the Board Committees deem appropriate. |
| **Section 2** | **Roles and Responsibilities of the Board Committees** |
|  | **Roles and Responsibilities of the Governance, Sustainability, and Nomination Committee (GSNC)** |
|  | Article 7 |
| GSNC's Mission Statement | The GSNC assists the Board in fulfilling its responsibilities with respect to the: |

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(i) governance
 of the Group;

(ii) sustainability
 of the Group;

(iii) identification
 of individuals who are qualified to become (or be re-elected as) Directors or the CEO.

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| | | |
|:---|:---|:---|
|  | Article 8 | Article 8 |
| GSNC's Roles and Responsibilities | The GSNC has the following roles and responsibilities: | The GSNC has the following roles and responsibilities: |
|  | *In General* | *In General* |
|  | 1. | Review periodically the Articles and the Regulations and recommend to the Board changes thereto in respect of good corporate governance and fostering shareholders' rights. |

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|:---|:---|
| **14** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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| | |
|:---|:---|
| 2. | Regularly consult with the Board Chair in carrying out the duties of the GSNC. |
| 3. | Regularly discuss feedback from investors, proxy advisors and analysts concerning the Group's performance in ESG matters. |
| 4. | Annually review the voting results of the General Meeting. |
| 5. | Prepare and annually review succession plans for the Board Chair, the Vice-Chair, the Lead Independent Director, Directors, Board Committee members, Chairpersons and the CEO, and make proposals to the Board for the election and the re-election by the Board respectively by the General Meeting for Directors, the Board Chair and CC members. |
| 6. | Make proposals to the Board for the election of the Independent Proxy by the General Meeting. |
| 7. | Recommend such other actions not set out below regarding the governance of the Group that are in the best interests of the Group, the Company's shareholders and other relevant stakeholders, as the GSNC deems appropriate. |
| *Board Composition* | *Board Composition* |

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8. Regularly review
 and as necessary update the Board skills matrix.

9. Regularly review the composition
 and size of the Board to ensure the Board has the proper skills and experience and consists of persons with sufficiently diverse
 backgrounds and viewpoints.

10. Determine the criteria
 for selection of the Board Chair, the Vice-Chair, the Lead Independent Director, Directors, Chairpersons and Board Committee members.
 The GSNC considers factors such as (i) personality, skills and knowledge, (ii) diversity of gender, age, nationality, ethnicity,
 viewpoints, professional backgrounds and expertise, (iii) business and other experience relevant to the Business, (iv) the ability
 and willingness to commit adequate time and effort to Board and Board Committee responsibilities, (v) the extent to which personality,
 background, expertise, knowledge and experience will interact with other Directors to build a diverse and effective Board, and (vi)
 any disclosures made under article 4 of the Regulations, in particular whether existing board memberships or other positions held
 by a candidate could lead to a Conflict of Interest.

11. With the participation
 of the Board Chair, actively seek, interview and screen individuals qualified to become a candidate for the position as a Director,
 for recommendation to the Board.

12. Assess and recommend to
 the Board as to whether Directors should stand for re-election. For its assessment, the GSNC considers factors such as those mentioned
 in item 10 of this article, the contributions to the Board and the Company, and the term limit.

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|:---|:---|
| **15** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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| | |
|:---|:---|
| *Board Committees* | *Board Committees* |
| 13. | With the Board Chair, make recommendations to the Board for the creation of additional Board Committees or a change in mandate or dissolution of Board Committees. |
| 14. | With the Board Chair, periodically review the composition of the Board Committees. When doing so, the GSNC takes into account whether a Board Committee member is suitable for the tasks of the respective Board Committee, including an envisioned quorum of independent Committee members, if applicable. |
| 15. | With the Board Chair, periodically review the chairpersonships of the Board Committees. |
| *Conflicts, Other Directorships and Board member* | *Conflicts, Other Directorships and Board member* |
| 16. | Review directorships and consulting agreements of Board members for conflicts of interest. |
| 17. | Annually submit to the Board a proposal concerning the determination of the independence status of the Directors and the corresponding disclosure. |
| *Sustainability* | *Sustainability* |
| 18. | Oversee the Group's strategy and governance on sustainability, including access to medicine and healthcare, global health, environmental sustainability, human capital management and other material ESG aspects that are relevant for the Group's performance or reputation (unless covered by another Committee). |
| 19. | At least annually review and discuss the Group's performance against relevant ESG reporting frameworks and indices. |
| 20. | Regularly review and discuss emerging trends with regard to sustainability. |
| 21. | Regularly advise the Board and provide counsel to the management on sustainability. |

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| | |
|:---|:---|
|  | **Roles and Responsibilities of the Audit and Compliance Committee (ACC)** |
|  | Article 9 |
| ACC's Mission Statement | The ACC assists the Board in monitoring the: |

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(i) integrity of
 the financial statements of the Group;

(ii) External Auditor's
 qualifications and independence;

(iii) performance of the Internal
 Audit function and of the External Auditor;

(iv) compliance by the Group
 with legal and regulatory requirements; and

(v) financial situation of
 the group to assess the necessity of actions as set out in article 24 (h) of the Articles.

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|:---|:---|
| **16** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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| | |
|:---|:---|
|  | Article 10 |
| ACC's Role and Responsibilities | The ACC has the following roles and responsibilities: |
|  | *Regarding the External Auditor* |

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| | |
|:---|:---|
| 1. | Annually evaluate the qualifications, performance and independence of the External Auditor, including considering whether the External Auditor's quality controls are adequate and whether the provision of permitted non-audit services is compatible with maintaining the External Auditor's independence, taking into account the opinions of management and Internal Audit. |
| 2. | Ensure rotation of the audit partners of the External Auditor at least every five years. Consider whether, in order to ensure continuing auditor independence, it is appropriate to adopt a policy of rotating the external auditing firm on a regular basis. |
| 3. | On behalf of the Board, which has fully delegated this task to the ACC, (1) select and nominate the External Auditor for election by the General Meeting, and (2) be directly responsible for the supervision and compensation of the External Auditor (including the resolution of any disagreement between management and the External Auditor regarding financial reporting). |
| 4. | On behalf of the Board, which has fully delegated this task to the ACC, pre-approve all auditing services, internal control-related services and non-audit services permitted under applicable statutory law, regulations and listing requirements to be performed for the Group by its External Auditor. |
| 5. | Obtain and review a report from the External Auditor at least annually regarding (1) the External Auditor's internal quality-control procedures, (2) any material issues raised by the most recent quality-control review, or peer review, of the firm, or by any inquiry or investigation by governmental or professional authorities within the preceding five years respecting one or more independent audits carried out by the firm, (3) any steps taken to deal with any such issues, and (4) all relationships between the External Auditor and the Group. |
| 6. | Discuss with the External Auditor the results of their audits, any unusual items or disclosures contained in the audits and the matters required by Public Company Auditing Oversight Board Auditing Standards No. 1301, as revised, and request a formal written statement from the External Auditor documenting such discussion. |
| *Regarding Internal Audit* | *Regarding Internal Audit* |
| 7. | On a quarterly basis, review the significant reports to management, prepared by the Internal Audit department and management's responses and supervise the remediation of open audit issues. |

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|:---|:---|
| **17** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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| | |
|:---|:---|
| 8. | Review periodically the adequacy of the organizational structure, budget and appointment or replacement of the senior Internal Audit executives. |
| 9. | Discuss with the CEO, as needed, the Internal Audit department's responsibilities, staffing and any recommended changes in the planned scope of the Internal Audit. |
| *Regarding Financial Reporting and internal controls* | *Regarding Financial Reporting and internal controls* |
| 10. | Review and discuss with management and the External Auditor the Company's and Group's quarterly and annual financial statements (including the sections on Operating and Financial Review and Prospects) to consider significant financial reporting issues and judgments made in connection with the preparation of the Company's and Group's financial statements, including any significant changes in the Company's or Group's selection or application of accounting principles. |
| 11. | On behalf of the Board, which has fully delegated this task to the ACC, approve the Company's and Group's quarterly financial statements for the first three quarters of each calendar year and the corresponding financial results releases. The Board remains responsible for the approval of the annual financial statements of the Company and the Group and of the corresponding results releases. |
| 12. | Annually review and discuss with management and the External Auditor their assessment of the effectiveness of the Group's internal controls, disclosure controls and procedures for financial reporting and whether any changes are appropriate in light of such assessment. |
| 13. | Review and discuss (1) all significant deficiencies in the design or operation of internal controls which could adversely affect the Group's ability to record, process, summarize and report financial data, including any material weaknesses in internal controls, (2) any fraud, whether or not material, that involves management or other employees who have a significant role in the Group's internal controls, and (3) any significant changes in internal controls or in other factors that could significantly affect internal controls, including any corrective actions with regards to significant deficiencies and material weaknesses.Review the non-financial data contained in the Company's annual reporting. |
| 14. | Review such other matters in relation to the Group's accounting, auditing, financial reporting and compliance with law and internal policies. |

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|:---|:---|
| **18** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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| | |
|:---|:---|
| *Regarding Significant Legal Matters and Regulatory Risks* | *Regarding Significant Legal Matters and Regulatory Risks* |
| 15. | Review major issues regarding the status of the Group's material legal matters, as well as major legislative and regulatory developments that may have significant impact on the Group, and get updates on such developments from the Chief Legal Officer at least annually. |
| *Regarding an Effective Compliance Program and Quality Assurance / patient safety* | *Regarding an Effective Compliance Program and Quality Assurance / patient safety* |
| 16. | Twice a year, review the processes and procedures used by management to execute an effective compliance program, and compliance by Novartis associates with those Group policies falling into the subject matter expertise of the ACC. |
| 17. | Review updates from the Company's SpeakUp office twice a year regarding whistleblowing activities and trends. |
| 18. | Establish procedures for (a) the receipt, retention and treatment of complaints received by the Group regarding accounting, internal accounting controls or auditing matters, and (b) the confidential, anonymous submission by employees of the Group of concerns regarding questionable accounting or auditing matters to the SpeakUp office. |
| 19. | Review updates with regards to Quality Assurance / patient safety twice a year. |
| 20. | Annually review updates from Health, Safety & Environment. |
| *Other* | *Other* |
| 21. | Every other year, review the Group's tax policy. |
| 22. | At least annually, hold closed sessions with the External Auditor, the Chief Financial Officer and the Head Internal Audit, respectively. |
| 23. | Annually review the financial literacy of each ACC member to determine whether he/she meets the applicable legal standards, confirm the audit committee financial expert, and propose to the Board the appropriate determination and its disclosure. |
| 24. | Annually review and reassess the adequacy of articles 9-10 of this Appendix I and submit proposed changes to the Board for approval. |

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|:---|:---|
| **19** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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|:---|:---|
|  | **Roles and Responsibilities of the Compensation Committee (CC)** |
|  | Article 11 |
| CC's Mission Statement | The CC assists the Board concerning, but not limited to, the: |

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(i) compensation
 philosophy and strategy;

(ii) design of the compensation
 plans;

(iii) compensation of the Board
 Chair, the Directors and of the CEO and other members of the Executive Committee. The CC has oversight of the remuneration policy
 for the wider employee population;

(iv) preparation of the Compensation
 Report and other relevant disclosures.

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| | |
|:---|:---|
|  | Pay for performance is one of the guiding principles of the compensation strategy of the Group. The Group aims to reward those associates who achieve competitive business results and exemplify the Group values and behaviors. The compensation strategy strives to strengthen the performance-oriented culture and to reinforce entrepreneurial behavior resulting in contributions that motivated and dedicated associates make to sustain superior business results whilst holding executives accountable for behavior that displays innovation, quality, performance, collaboration, courage and integrity. |
|  | Article 12 |
| CC's Role and Responsibilities | The CC has the following responsibilities: |

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1. Develop a compensation
 strategy in line with the principles described in the Articles, and submit to the Board for approval.

2. Develop the principles
 and design of compensation plans, long-term incentive/equity plans, pension arrangements and benefits for the Executives and the
 Directors, and submit to the Board for approval.

3. Support the Board in preparing
 the proposals to the General Meeting regarding the compensation of the Directors and the Executives.

4. Prepare the Compensation
 Report and submit to the Board for approval.

5. Propose to the Board the
 contractual terms (if any) and compensation of the Directors (incl. the Board Chair) and the CEO.

6. Determine, after consulting
 with the CEO, the terms of employment, promotion or termination of the other Executives (except for the CEO).

7. Develop the terms of, and
 administer, the Group's long-term incentive/equity compensation plans, including the weightings, payout curves and caps for
 the chosen performance measures.

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|:---|:---|
| **20** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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8. Assess whether
 the Group's incentives for associates below Executive Committee level are appropriately aligned to business performance and
 do not encourage excessive risk taking.

9. Determine the critical
 performance measures (financial, strategic and operational) that inform how well the Group and its Divisions are performing in relation
 to the business strategy for incorporation into the incentive plans, as well as any measures relating to Environmental, Social and
 Governance (ESG).

10. Periodically review and
 propose to the Board for approval a peer group(s) of companies for executive compensation comparisons.

11. At the start of each performance
 period, approve the target total direct compensation levels and the mix of compensation (fixed/variable, short/long-term, individual/Group/Division,
 and cash/equity) for Executive Committee members and direct reports to the Board Chair taking into consideration pay and conditions
 for the wider population of Group associates.

12. At the end of each performance
 period, taking into consideration the Board's evaluation of Group and divisional performance against targets established at
 the beginning of the performance cycle, approve performance results under the incentive plans, evaluate individual performance, approve
 the amount of compensation earned by Executive Committee members and recommend the amount of compensation earned by the CEO to the
 Board for approval taking into account the overall performance of the Business and, if appropriate, making adjustments to the formulaic
 outcome of any incentive plans, within the plan Rules.

13. Consider and decide whether
 there is a need for malus and/or clawback provisions to be exercised and, if so, the extent and form of the malus and/or clawback.

14. Incorporate the recommendations
 of the STC for the establishment of innovation targets under incentive compensation plans at the start of each performance cycle
 and measurement of achievement thereof at the end.

15. Periodically assess the
 effectiveness of the executive short-term and long-term incentive plans in relation to the Group's strategic objectives, values
 and pay-for-performance principles.

16. Work together with other
 Board Committees, to ensure that executive compensation is correctly aligned to performance and is not structured in a way that could
 lead to inappropriate risk taking.

17. Annually assess the level
 of Board compensation against the peer group and other relevant companies and submit to the Board its recommendations for the compensation
 of Directors and the compensation and terms of employment of the Board Chair.

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|:---|:---|
| **21** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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18. Establish executive
 and director stock ownership guidelines and stock trading policies, and monitor compliance with such policies.

19. Inform the Board about
 policies, programs and key decisions as well as statistical comparisons and benchmarking of compensation levels against key competitors
 and regularly report to the Board on the decisions and deliberations of the Compensation Committee.

20. In collaboration with the
 Board Chair, oversee communication and engagement on executive compensation matters with shareholders and their advisors, including
 shareholder voting on Board and Executive Committee compensation, and assess the voting results on executive compensation matters
 of the most recent General Meeting.

21. Be kept informed of the
 remuneration of the workforce and related policies and keep abreast of any developments.

22. Annually assess the engagement
 and performance of compensation consultants or other outside advisors engaged by the CC and their independence in relation to any
 potential conflicts of interest and manage the rotation/renewal of such advisors.

23. Keep abreast of regulatory
 and corporate governance best practice requirements regarding Board, Executive Committee and other senior executive compensation.

24. Keep abreast of market
 trends and consideration of external factors that may influence pay in terms of design, structure, quantum, disclosure etc.

25. Establish an annual calendar
 of activities for the upcoming year, including special projects to be undertaken by the CC.

26. Review and reassess the
 adequacy of articles 11-12 of this Appendix I and submit proposed changes to the Board for approval.

27. Assume other responsibilities
 assigned to it by law, the Articles and by the Board.

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|:---|:---|
|  | **Roles and Responsibilities of the Risk Committee (RC)** |
|  | Article 13 |
| RC's Mission Statement | The RC will assist the Board in ensuring that risks are properly assessed and professionally managed by: |

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(i) overseeing the Group's risk
 management system and processes; and

(ii) reviewing the Group's risk portfolio and related
 actions implemented by management.

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|:---|:---|
| **22** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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Article 14 <br>RC's Role and Responsibilities The RC has the following role and responsibilities:

1. Ensure that
 the Group has implemented an appropriate and effective risk management system and process.

2. Ensure that all necessary
 steps are taken to foster a culture of risk-adjusted decision-making without constraining reasonable risk taking and innovation.

3. Review with management
 and Internal Audit the identification, prioritization and management of the risks, the accountabilities and roles of the functions
 involved with risk management, the risk portfolio and the related actions implemented by management.

4. Inform the Board on a periodic
 basis on the risk management system and on the most significant risks and how these are managed.

5. Review such other matters
 in relation to the Group's risk management, as the RC may, in its own discretion, deem desirable in connection with its responsibilities
 described above.

6. Annually review updates
 on cyber security.

7. Keep itself up to date
 on risk management best practices. The Chief Ethics, Risk and Compliance Officer, or his/her designee, is expected to update the
 RC at least once a year on developments in this area.

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|:---|:---|
|  | **Roles and Responsibilities of the Science & Technology Committee (STC)** |
|  | Article 15 |
| STC's Mission Statement | The STC (i) oversees the science and technology strategy, including digital and data related innovation, (ii) evaluates and challenges the effectiveness and competitiveness of innovation-related functions, (iii) reviews and discusses emerging scientific trends and activities critical to the success of science and innovation, and (iv) reviews the R&D portfolio. |
|  | Article 16 |
| STC's Role and Responsibilities | The STC has the following role and responsibilities: |

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1. Monitoring
 emerging scientific, data-related, technological and research trends and issues, and bringing recommendations to the Board.

2. Informing the Board on
 a periodic basis about critical developments for the success of the portfolio and for scientific, technological and research activities
 as well as benchmarking.

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|:---|:---|
| **23** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

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3. Assisting the
 Board with setting the Company's strategy for science, data, technology and research.

4. Assisting the Board with
 oversight and evaluation of the performance of the scientific, technological and research teams within the Company in relation to
 the strategy.

5. Review of performance and
 proposed targets in the area of science, technology and research.

6. Reviewing such other matters
 in relation to science, data, technology and research as the STC may, in its own discretion, deem desirable in connection with its
 responsibilities.

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| | | |
|:---|:---|:---|
| **Appendix II** | **Independence Criteria for the Board and the Board Committees** | **Independence Criteria for the Board and the Board Committees** |
|  | Independence of the Directors | Independence of the Directors |
|  | The GSNC annually submits to the full Board a proposal concerning the determination of the independent status of all Directors. For purposes of such assessment, the GSNC considers all relevant facts and circumstances of which it is aware. | The GSNC annually submits to the full Board a proposal concerning the determination of the independent status of all Directors. For purposes of such assessment, the GSNC considers all relevant facts and circumstances of which it is aware. |
|  | In order to be considered independent, a Director shall not have any material relationship with the Group other than his/her service as a Director. | In order to be considered independent, a Director shall not have any material relationship with the Group other than his/her service as a Director. |
|  | I. Material Relationships | I. Material Relationships |
|  | *1.* | *A Director will not be considered independent if* |

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| |
|:---|
| the Director or his/her immediate Family Member owns more than 10% of the stock of the Company; |
| the Director has received direct compensation (other than for former service as an interim Board Chair) of more than USD 120 000 p.a. (other than dividends or Board/Board Committee fees and retirement or deferred pay for prior service, provided such compensation is not contingent in any way on continued service) from the Group within the last three years; |
| a Family Member has received direct compensation of more than USD 120 000 p.a. (other than compensation received for service as an employee other than an executive officer) from the Group within the last three years; |
| the Director is, or has been within the last three years, an employee of the Group; |
| a Family Member is, or has been within the last three years, an executive officer of the Group; |
| the Director is a current partner or employee of the External Auditor of the Group; |
| a Family Member is a partner of the External Auditor or is an employee of the External Auditor and works on the Group's audit; |

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|:---|:---|
| **24** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

---

---

| | |
|:---|:---|
|  | the Director or a Family Member is a former partner or employee of the External Auditor who personally worked on the Group's audit during the last three years; |
|  | the Director or a Family Member is, or has been within the last three years, employed as an executive officer of an enterprise while any of the present Executives serves or has served on that enterprise's compensation committee; |
|  | an enterprise has made payments to or received payments from the Group for goods, property or services in an amount that exceeds, in any of the last three fiscal years, the greater of USD 1 million or 2% of the enterprise's consolidated gross revenues, and |
|  | the Director is a board member or employee of that enterprise or holds more than 10% of the shares in that enterprise; or |
|  | a Family Member is a board member or executive officer or holds more than 10% of the shares in that enterprise. |
| *2.* | *In addition to the independence criteria set forth above for all Directors in Section 1, an ACC Director will not be considered independent if* |
|  | the ACC Director or his/her spouse, minor child, minor stepchild, or child or stepchild sharing the ACC Directors' home, accepts any salary or consulting, advisory or other compensatory fee (other than Board/Board Committee compensation) from the Group; |
|  | the ACC Director is a partner, a member, an officer such as a managing director, executive officer or occupies a similar position in an enterprise that provides advisory services such as accounting, legal, investment banking or financial advisory services to the Group; |
|  | an ACC Director simultaneously serves on the audit committees of more than two public companies other than the Company's, then the GSNC must determine that such simultaneous service would not impair the ability of such Director to effectively serve on the ACC. |
| *3.* | *In addition to the independence criteria set forth for all Directors in Section 1, above, when making its assessment as to the independent status of a CC Director, the GSNC considers whether the CC Director receives compensation from any person or entity that would impair his or her ability to make independent judgments about the Executive compensation.* |
| II. Immaterial Relationships | II. Immaterial Relationships |
| Unless the GSNC concludes in its assessment to the contrary, a relationship is presumed not to impair the independence of a Director if | Unless the GSNC concludes in its assessment to the contrary, a relationship is presumed not to impair the independence of a Director if |
|  | the Director or a Family Member received from the Group, during the last fiscal year, personal benefits (other than the coverage of travel expenses incurred by a Family Member in connection with meetings of the Board) having an aggregate value of less than USD 5 000; |

---

---

| | |
|:---|:---|
| **25** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

---

---

| |
|:---|
| a Family Member is an employee but not an executive officer of the Group, unless the Family Member is an ACC Director's spouse, minor child, minor stepchild or child or stepchild sharing the ACC Director's home; |
| the Director or a Family Member is a board member or executive officer of a non-profit organization and the Group's contributions to such organization did not exceed, in any of the last three fiscal years, the greater of USD 1 million or 2% of the organization's consolidated gross revenues; |
| an enterprise in which the Director or a Family Member is a director, executive officer or employee has been indebted to the Group in connection with a transaction in the ordinary course of business or in an amount that did not exceed USD 100 000 during the last fiscal year; |
| the Director or a Family Member serves on the board of another enterprise at which an Executive or another Director also serves as board member. |
| The enumeration of relationships mentioned in this Section II is merely exemplary. The fact that a particular relationship is not listed does not mean that the relationship affects the independence of a Director. |

---

---

| | |
|:---|:---|
| **26** | Regulations of the Board of Directors, the Board Committees and the Executive Committee of Novartis AG |

---

**Abbreviations and Definitions**

---

| | |
|:---|:---|
| ACC | Audit and Compliance Committee of the Board |
| Appendix I | Appendix I to these Regulations which forms an integral part of these Regulations (Board Committees Charter) |
| Appendix II | Appendix II to these Regulations which forms an integral part of these Regulations (Independence Criteria for the Board and the Board Committees) |
| Articles | Articles of Incorporation of the Company |
| Board | Board of Directors of the Company |
| Board Chair | Chair of the Board |
| Board Committee(s) | Any or all committee(s) of the Board |
| Business | Business operations conducted by the Group |
| CC | Compensation Committee of the Board |
| Chairperson(s) | Any or all Director(s) who chair(s) a / the Board Committee(s) |
| CO | Swiss Code of Obligations |
| Company | Novartis AG |
| Compensation Report | Compensation report of the Company |
| Conflict of Interest | Any personal interest, or the interest of a closely related person or company, that a Director or Executive might have in a particular matter which does or might be regarded to conflict with the interests of the Company or the Group |
| Cross-Divisional Unit(s) | Any or all cross-divisional organizational unit(s) supporting the Divisions |
| Director(s) | Any or all member(s) of the Board |
| Division(s) | Any or all global operating divisions of the Group, including its business units, if any |
| ESG | Environmental, Social and Governance |
| Executive Committee | Executive committee of the Company |
| Executive(s) | Any or all Executive Committee member(s) |
| External Auditor | The Group's external auditor |
| Family Member | An immediate family member of a Director, i.e., including a person's spouse, parents, children, stepchildren, siblings, mother-, father-, brothers-, sisters-, sons- and daughters-in-law and anyone (other than domestic employees) who share such person's home |
| General Meeting | General meeting of shareholders of the Company |
| Group | Novartis and its subsidiaries |
| GSNC | Governance, Sustainability and Nomination Committee of the Board |
| Independence Criteria | Independence criteria set forth in Appendix II |
| Internal Audit | The Group's internal audit |
| Lead Independent Director | Lead Independent Director of the Board |
| RC | Risk Committee of the Board |
| Regulations | These Organizational Regulations of the Company, including Appendix I and Appendix II which form an integral part of these Regulations |
| STC | Science & Technology Committee of the Board |
| Vice-Chair | Vice-Chair of the Board |

---

## Exhibit 4.5

**Exhibit 4.5**

**Novartis AG**

**Long Term Incentive Plan**

Adopted by the Board of Directors on January 22, 2014 and amended thereafter Version effective in relation to awards made on or after January 1, 2023

Contents

---

| | | |
|:---|:---|:---|
| **NOVARTIS AG LONG TERM INCENTIVE PLAN** | **NOVARTIS AG LONG TERM INCENTIVE PLAN** | **4** |
| **1.** | **PURPOSE OF THE PLAN** | 4 |
| **2.** | **GRANTING OF AWARDS** | 4 |
| **3.** | **DIVIDENDS AND DIVIDEND EQUIVALENTS** | 6 |
| **4.** | **VESTING OF AWARDS** | 7 |
| **5.** | **LAPSE OR FORFEITURE OF AWARDS** | 9 |
| **6.** | **CESSATION OF EMPLOYMENT** | 10 |
| **7.** | **CORPORATE EVENTS** | 12 |
| **8.** | **PARTICIPANT RIGHTS AND OBLIGATIONS** | 13 |
| **9.** | **CLAWBACK** | 13 |
| **10.** | **TAX, SOCIAL SECURITY AND OTHER CHARGES** | 14 |
| **11.** | **TRANSFER OF AWARDS** | 14 |
| **12.** | **COMPANY DOCUMENTS** | 14 |
| **13.** | **BOARD'S POWERS** | 15 |
| **14.** | **ADMINISTRATION AND REGULATIONS** | 15 |
| **15** | **AWARDS NOT PENSIONABLE ETC.** | 15 |
| **16** | **NOTICES** | 15 |
| **17** | **DATA PROTECTION** | 15 |
| **18** | **AMENDMENT AND TERMINATION OF THE PLAN** | 16 |
| **19** | **COMPLIANCE WITH LAW AND ARTICLES OF INCORPORATION** | 16 |
| **20** | **APPLICABLE LAW** | 17 |
| **21** | **DEFINITIONS AND INTERPRETATION** | 17 |
| **SCHEDULE A NOVARTIS COMPETITORS** | **SCHEDULE A NOVARTIS COMPETITORS** | **23** |
| **SCHEDULE 1 LONG TERM PERFORMANCE PLAN** | **SCHEDULE 1 LONG TERM PERFORMANCE PLAN** | **24** |
| **1.** | **APPLICATION OF THE SCHEDULE** | 24 |
| **2.** | **PERFORMANCE PERIOD** | 24 |
| **3.** | **PERFORMANCE CONDITIONS** | 24 |
| **4.** | **CESSATION OF EMPLOYMENT** | 26 |
| **5.** | **AMENDMENTS** | 26 |
| **SCHEDULE 2 PARTICIPANTS WHO ARE OR BECOME MEMBERS OF THE ECN** | **SCHEDULE 2 PARTICIPANTS WHO ARE OR BECOME MEMBERS OF THE ECN** | **27** |
| **1.** | **APPLICATION OF THIS SCHEDULE** | 27 |
| **2.** | **DEFINITIONS** | 27 |

---

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

---

| | | |
|:---|:---|:---|
| **3.** | **PERFORMANCE CONDITIONS AND ECN LTPP AWARDS VESTING** | 27 |
| **4.** | **BLOCKING RESTRICTIONS** | 28 |
| **5.** | **CESSATION OF EMPLOYMENT – INTRODUCTION** | 29 |
| **6.** | **CESSATION OF EMPLOYMENT AS A RESULT OF RETIREMENT** | 29 |
| **7.** | **CORPORATE EVENTS** | 30 |
| **SCHEDULE 3 UNITED STATES** | **SCHEDULE 3 UNITED STATES** | **31** |
| **1.** | **APPLICATION OF THIS SCHEDULE** | 31 |
| **2.** | **GRANT OF AWARDS – SHARES SUBJECT TO THE PLAN** | 31 |
| **3.** | **DEFINITIONS** | 31 |
| **4.** | **STOCK APPRECIATION RIGHTS** | 31 |
| **5.** | **CONSEQUENCES OF VESTING – RESTRICTED STOCK UNITS** | 33 |
| **6.** | **CORPORATE EVENTS** | 33 |
| **7.** | **CODE SECTION 409A** | 33 |
| **8.** | **US EXECUTIVE FINANCIAL RECOUPMENT PROGRAM** | 34 |
| **SCHEDULE 4 SELECT PLAN 2015** | **SCHEDULE 4 SELECT PLAN 2015** | **35** |
| **1.** | **APPLICATION OF THE SCHEDULE** | 35 |
| **2.** | **PURPOSE** | 35 |
| **3.** | **PARTICIPANTS** | 35 |
| **4.** | **VESTING AND OTHER CONDITIONS** | 35 |
| **5.** | **DEFINITIONS** | 35 |
| **6.** | **CESSATION OF EMPLOYMENT** | 36 |
| **7.** | **US SELLING RESTRICTIONS** | 37 |
| **8.** | **APPENDICES TO THE SELECT PLAN** | 37 |
| **APPENDIX 1 NOVARTIS SELECT PLAN SWITZERLAND** | **APPENDIX 1 NOVARTIS SELECT PLAN SWITZERLAND** | **38** |
| **1.** | **SELECT SWITZERLAND** | 38 |
| **2.** | **SELECT CHOICES SWITZERLAND** | 38 |
| **3.** | **CESSATION OF EMPLOYMENT** | 38 |
| **SCHEDULE 5 NOVARTIS LAUNCH LEADER PLAN** | **SCHEDULE 5 NOVARTIS LAUNCH LEADER PLAN** | **39** |
| **1.** | **APPLICATION OF THE SCHEDULE** | 39 |
| **2.** | **ELIGIBLE PARTICIPANTS** | 39 |
| **3.** | **AWARD SIZE** | 39 |
| **4.** | **VESTING AND OTHER CONDITIONS** | 39 |
| **5.** | **DIVIDENDS AND DIVIDEND EQUIVALENTS** | 40 |

---

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

---

| | | |
|:---|:---|:---|
| **6.** | **CESSATION OF EMPLOYMENT** | 40.0 |
| **7.** | **DEFINITIONS** | 41.0 |
| **8.** | **AMENDMENTS** | 42.0 |

---

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

**NOVARTIS AG LONG TERM INCENTIVE PLAN**

***1.***  ***<u>P</u>***  ***<u>URPOSE OF THE PLAN</u>*** 

The purpose of the Plan is to enhance the alignment of the Participants in the Plan with the interests of the Company and its shareholders and to foster long term value creation.

The Rules govern the grant of Awards under the Plan and any sub-plan of the Plan, including the Long Term Performance Plan, the Business Unit Performance Plan, Select 2015 and other forms of long term incentive awards (including special, off cycle and ad hoc awards).

***2.***  ***<u>G</u>***  ***<u>RANTING OF AWARDS</u>*** 

2.1 <u>Selection of Participants</u> 

The Board may select any Eligible Employee to be granted an Award.

2.2 <u>Timing of Awards</u> 

Subject to any Dealing Restrictions which prevent Awards being granted, the Board may grant Awards at any time during a Grant Period.

2.3 <u>Decisions relating to Awards</u> 

In respect of any Award (whether Restricted Stock, Restricted Stock Units, SARs or other form of award) the Board will determine:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the type of Award to be granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where relevant, whether the Award is in respect of Shares or ADIs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Award is a SAR, the base value from which the growth in value is to be measured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the Award does not comprise Restricted Stock, Restricted Stock Units or SARs, the form and terms and
conditions of any such Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) subject to Rule 2.4, the minimum, target and maximum number of Shares or ADIs to be subject or linked
to the Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Vesting Date or Vesting Dates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) whether the Award is subject to Performance Conditions and, if so, the terms of such Performance Conditions
(including the applicable Performance Period);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) whether the Award (or Shares or other rights comprising the Award) is subject to any holding or blocking
period and if so the terms of any such period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) whether or not the Award will carry Dividend Equivalents and, if so, the form of such Dividend Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) whether the Participant is required to sell sufficient Shares to meet Taxation; and

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

(k) which,
if any, Schedules to the Plan will apply to the Award.

2.4 <u>Determining the number of Shares or ADIs subject to an Award</u> 

In order to determine the minimum, target and maximum number of Shares or ADIs subject to or linked to an Award, the Board shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) divide the relevant percentage of salary (as determined by the Board) expressed as a cash sum by the Market
Value of a Share or ADI (as appropriate) as at the date immediately preceding the Grant Date and then, where necessary, round up to the
nearest whole Share or ADI; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) apply such other method as the Board may determine from time to time.

2.5 <u>Change of Performance Conditions</u> 

Notwithstanding Rule 18 (amendment and termination of the Plan), the Board may change a Performance Condition applicable to an outstanding Award if there are circumstances which cause the Board to consider that an altered performance condition would be a fairer measure of performance. Any such altered Performance Condition must be, in all material respects, no easier and no harder to satisfy than the original Performance Condition.

2.6 <u>Award documentation</u> 

Each Award as such will be granted by resolution of the Board and subsequently legally offered by the respective Employer of the Eligible Employee.

Each Participant shall receive a notice of the grant of an Award (either electronically or in hard copy) in such form as the Board shall determine from time to time.

In relation to any Award the Participant is required to accept the grant of the Award to him by providing such acceptance via the service provider's online interface (or in such form as the Board shall determine from time to time) as well as, if required, complete and update the CRS FACTA documentation via the service provider's online interface at the latest within 6 months after he received the notice of the grant of the Award. The Board may determine that the Participant will be reminded of these prerequisites for participation in the Plan. If a Participant does not provide such acceptance and/or CRS FATCA documentation in time (and, if any, after reminders), any Awards granted shall lapse or, in the case of Restricted Stock, the Shares under that Award shall be forfeited without compensation, unless the Board determines otherwise.

Alternatively, the Board may determine that a Participant who receives an Award is deemed (as of the time of receipt) to have accepted the grant and agreed to the Rules (including applicable Schedules) and the terms set out in the notice of the grant of the Award. If this is the case, a Participant may reject his Award within 14 days of receiving the notice of grant of that Award (or such longer period as the Board permits or is otherwise required by law). If a Participant does so reject his Award, then immediately on such rejection that Award shall lapse or, in the case of Restricted Stock, the Shares under that Award shall be forfeited.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

2.7 <u>Schedules to the Plan</u> 

The Board may establish such schedules to the Rules as it considers necessary or appropriate. Such schedules may be included in the Plan in such a way that they create special rules applicable to certain Eligible Employees or categories of Eligible Employees and/or to constitute sub-plans to the Plan for Eligible Employees inside and outside Switzerland.

2.8 <u>Policies etc.</u> 

Awards shall be subject to all applicable policies and procedures adopted by the Group from time to time, including without limitation the policies entitled "*Policy for the treatment of awards in the event of a new hire, modified target, assignment or transfer within the Group*" and "*Policy for the grant of equity awards under the Novartis AG Long Term Incentive Plan in circumstances where an employee may leave the Group or has received an unsatisfactory performance or behaviour assessment*".

2.9 <u>Delegations</u> 

The Board decided to delegate the following powers with regard the Plan, to the Employer, who decides after consultation with the Group Rewards &/or Group Legal teams at their discretion:

(a) with reference to section 5 (Lapse of forfeiture of awards)

(b) with
reference to section 6.6 (Cessation of employment as a result of Death or disability) for the assessment of the performance condition
if any; and

(c) with reference to section 9 (Clawback)

The Board decided to delegate the implementation and execution of the Plan, including making non-material changes to the Rules themselves, to the Group Rewards &/or Group Legal teams.

***3.***  ***<u>D</u>***  ***<u>IVIDENDS AND DIVIDEND EQUIVALENTS</u>*** 

3.1 <u>Restricted Stock Units and SARs</u> 

A Participant holding an Award of Restricted Stock Units or SARs shall not be entitled to vote, to receive dividends or to have any other rights of a shareholder in respect of such an Award unless and until the Shares comprising the Award are transferred to or acquired by the Participant.

3.2 <u>Restricted Stock</u> 

The Board in relation to an Award of Restricted Stock may determine that the Participant must agree to surrender or waive any right to vote, receive dividends or any other rights of a shareholder in respect of such Award.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

3.3 <u>Dividend Equivalents</u> 

If the Board determines that an Award carries Dividend Equivalents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) unless the Board decides otherwise, the number of Shares (or notional Shares if the Award is a SAR) subject
to the Award will be increased by the number of Shares which could have been acquired by the reinvestment in the purchase of Shares (at
the market value of a Share on each relevant dividend payment date) of dividends payable between the Grant Date and the Vesting Date on
that number of Shares (or notional Shares) subject to the Award that Vests; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Board decides that Dividend Equivalents would not be on a notional reinvestment basis as described
in Rule 3.3(a), as soon as practicable after the time an Award vests in full (and Shares are transferred or acquired or cash is paid
to the Participant) the Company (or the Participant's Employer) shall pay to the Participant (in cash or Shares) (subject to all
applicable tax and social security deductions) an amount equal to the aggregate dividends which would have been paid on the Award (including
in respect of notional Shares for Awards that are SARs) between the Grant Date and the Vesting Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Board may decide that the Dividend Equivalents may be calculated on any other basis.

For the avoidance of doubt, the amount of a dividend, for these purposes is the amount of the gross dividend before taxes.

For the purposes of this Rule 3, "market value" shall be determined by the Board on each relevant occasion.

Unless otherwise determined by the Board at any time or times, a Participant is not entitled to receive Dividend Equivalents with respect to the time period between the Vesting Date and the date that the relevant Shares are transferred to or acquired by him or payment in respect of the Award is made.

***4.***  ***<u>V</u>***  ***<u>ESTING OF AWARDS</u>*** 

4.1 <u>General</u> 

Vesting of Awards under the Plan, transfer of Shares or ADIs or payment of cash is subject to any Rules or law that may require otherwise, including Rule 4.6 (dealing restrictions), Rule 4.8 (delivery of Shares or ADIs to a deposit account), Rule 5 (lapse or forfeiture of Awards) and Rule 9 (clawback).

The Board shall determine the number of Shares (or amount of cash in respect of a SAR) comprising an Award that shall Vest on any particular day or days.

4.2 <u>Normal Vesting</u> 

Subject to satisfying applicable Performance Conditions to which the Award is subject and the exceptions set out in the Rules, an Award shall Vest on the Vesting Date (or, if there is more than one Vesting Date, as to the relevant number of Shares or relevant cash entitlement in the case of SARs on each Vesting Date) or, if later, the date or dates on which the Performance Condition is confirmed as satisfied by the Board.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

4.3 <u>Consequences of Vesting – Restricted Stock Units</u> 

As soon as practicable and legally possible after the Vesting the Company shall transfer the number of Shares (or pay or procure to be paid a cash sum if the Board has determined that the RSU is to be settled in cash) in respect of which the Award has Vested to the Participant.

4.4 <u>Consequences of Vesting – Restricted Stock</u> 

On Vesting the restrictions applicable to the relevant Restricted Stock under the Plan shall cease to apply to the extent such Restricted Stock Vests.

4.5 <u>Consequences of Vesting – SARs</u> 

As soon as practicable and legally possible after Vesting the Company or the Participant's Employer shall pay to the Participant a sum equal to growth in the market value (as determined by the Board) of the number of Vested notional Shares comprising each SAR.

4.6 <u>Dealing Restrictions</u> 

If the Vesting of an Award is prevented on any date by a Dealing Restriction, the Award shall Vest on the first day it is not so prevented.

If the transfer of Shares or ADIs (or payment of cash) on or following Vesting is prevented by a Dealing Restriction, the period for such transfer or payment shall start from the first date on which it is no longer so prevented.

Shares received by a Participant on or following Vesting may be subject to Dealing Restrictions. Subject to any such restrictions, a Participant may sell (or may be required to do so) a sufficient number of such Shares to meet Taxation (as defined in Rule 10 (tax, social security and other charges)).

4.7 <u>Fractional entitlements</u> 

Any fractional number of Shares which arises for any reason under the Plan shall be aggregated as at the Vesting Date and rounded up to the nearest whole Share (or, in the case of a SAR, notional Share), unless the Board determines otherwise.

4.8 <u>Delivery of Shares or ADIs to a deposit account</u> 

Subject to Board determination otherwise, all Shares and ADIs transferred to Participants under the Plan shall be transferred to and registered in one single securities account (**Securities Deposit Account**) held in trust by such service provider as is nominated from time to time by the Company.

If a Participant Ceases Employment, the Participant must dispose of or if possible transfer from the Securities Deposit Account to a private securities account all of the Shares or ADIs managed by the service provider within the period of three months. If that is not done, the service provider will sell all of the Shares at market value without delay on behalf of the Participant or the Participant's successor and transfer the proceeds less costs of sale to the Participant's last known salary account and such transfer is in full and final satisfaction.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

If a Participant Ceases Employment due to death, the period within which the Participant's personal representative or successor in title must dispose of or transfer the Shares is twelve (12) months or such longer period as the Board may determine.

If the Company's contract with the service provider for administration of the Plan ends in circumstances where the Plan continues, the Company will make arrangements for appropriate services to be provided by another service provider that the Company shall instruct at its sole discretion. In such circumstances, each Participant must give all notices and take all steps necessary to end the trust or custody agreement with the old service provider and appoint a new service provider.

The procedures specified above may be altered and other procedures established by the Board.

4.9 <u>Lock-In period</u> 

Subject to Rule 4.10, the Board may determine or a Participant may elect at any time (in such form as the Board requires) that Shares or ADIs transferred or to be transferred to him under the Plan are or will be held in the Securities Deposit Account for a fixed period of time (the **Lock-In Period**) during which time such a Participant may not alienate such Shares or ADIs or create any security interest in or encumbrance on such Shares except as may be necessary for the proper administration of the Plan. During the Lock-In Period, the Participant is entitled without restriction to the dividend and voting rights associated with the Shares or ADIs the Participant acquired.

4.10 <u>Cash, Share and ADI alternatives</u> 

The Board may decide to satisfy an Award (including any Dividend Equivalents) by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) paying or procuring to be paid to the Participant a sum equal to the market value (as determined by the
Board) of the number of Shares that would otherwise have been transferred to the Participant following the Vesting of that Award; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) delivering to the Participant ADIs with a value equal to the market value of the number of Shares that
would otherwise have been transferred to the Participant following the Vesting of that Award; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the case of SARs delivering to the Participant Shares or ADIs with a value equal to the cash sum that
would otherwise have been paid to the Participant following the vesting of that Award.

***5.***  ***<u>L</u>***  ***<u>APSE OR FORFEITURE OF AWARDS</u>*** 

Subject to Board determination otherwise, Awards lapse or in the case of Restricted Stock are forfeited on the earlier of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) failure to meet the Performance Condition or integrity conditions or compliance with company policies.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the occurrence of any event described in the Rules resulting in forfeiture or lapse of Awards, including
under Rule 2 (granting of awards), Rule 6 (cessation of employment) and Rule 7 (corporate events).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) failure from the Participant to adhere to Rule 2.6 (Award documentation).

Furthermore, the Board may decide to deem that Awards lapse or in the case of Restricted Stock are forfeited if the Participant grossly negligently or intentionally violates his obligations resulting from his employment with his Employer, e.g. breach of confidentiality.

***6.***  ***<u>C</u>***  ***<u>ESSATION OF</u> <u>E</u> <u>MPLOYMENT</u>*** 

6.1 <u>Introduction</u> 

This Rule 6 applies where a Participant Ceases Employment.

Notwithstanding any other part of this Rule 6, the Board may, in its discretion with no obligation to do so, allow (on such terms as the Board decides, including, without limitation, the Participant first executing and not revoking a general release of claims acceptable to the Company) a greater proportion of an Award to Vest and/or accelerate the time at which Vesting occurs and/or treat a Participant who has Ceased Employment as having done so within Rules 6.3, 6.4 or 6.6.

In the event that Awards are outstanding pursuant to Rules 6.3 or 6.4 and the Participant dies prior to the Vesting of those Awards, then Rule 6.6 shall apply.

6.2 <u>General</u> 

Unless Rule 6.3, Rule 6.4 or Rule 6.6 applies, an Award that has not Vested will lapse or be forfeited on the day the Participant Ceases Employment.

6.3 <u>Cessation of Employment as a result of Retirement</u> 

If a Participant Ceases Employment because of Retirement with the agreement of the Participant's employer, his Award shall, subject to Rule 6.5 and, if so determined by the Board, the Participant first executing and not revoking a general release of claims acceptable to the Company, Vest on the Vesting Date to the extent the Performance Conditions have been met PROVIDED ALWAYS THAT if the Cessation of Employment in respect of which this Rule 6.3 applies occurs on or before the first anniversary of the Grant Date then the extent to which such Award Vests shall be reduced to take account of the proportion of the Performance Period as has elapsed when the Cessation of Employment occurs.

6.4 <u>Cessation of Employment for other good reasons and following sale</u> 

If a Participant Ceases Employment because of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) termination of employment by the Participant's Employer (whether or not by notice) other than for
cause, including misconduct or poor performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) his Employer ceasing to be a member of the Group;

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the business for which the Participant works is transferred to a person which or who is not a member of
the Group,

his Award shall, subject to Rule 6.5 and, in relation to Rule 6.4(a) and if so determined by the Board, the Participant first executing and not revoking a general release of claims acceptable to the Company, Vest on the Vesting Date in respect of a proportion of the Award (corresponding to such proportion of the Performance Period as has elapsed when the Participant Ceases Employment (notwithstanding Rule 6.1)) to the extent the Performance Conditions have been met provided that the Board may determine in the case of leaving for reasons set out in Rule 6.4(b) or Rule 6.4(c) that some or all of the Awards held by relevant Participants shall be exchanged in accordance with Rule 7.2 (exchange of awards).

6.5 <u>Lapse or forfeiture of Awards on joining a Competitor</u> 

Where either Rule 6.3 or 6.4 applies such that Awards are retained by the Participant following Cessation of Employment, the following shall also apply: In the event that the Participant, in the period commencing on such cessation and ending immediately following the relevant Vesting Date, becomes an employee or director (or otherwise provides services to) a Competitor, other than as a direct result of an event within Rule 6.4(b) or Rule 6.4(c), the Awards held by that Participant shall immediately lapse (or in the case of Restricted Stock, shall be immediately forfeited).

6.6 <u>Cessation of Employment as a result of death or Disability</u> 

If a Participant Ceases Employment as a result of his death or Disability then Awards held by that Participant shall Vest immediately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if, as at the date of Cessation of Employment, it is impractical to assess performance against the applicable
Performance Conditions, at target; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if, as at the date of Cessation of Employment, it is practicable to assess performance against the applicable
Performance Conditions, to the extent the Board determines having regard to performance against the applicable Performance Conditions
up to the date of Cessation of Employment.

In case of a Participant's death, upon notice to the Company his personal representative or successor in title shall be entitled to, if any, the Vested Awards. Settlement of these Vested Awards to the Participant's personal representative or successor in title excludes any other potential claims of the Participant's estate with regards to the Plan.

6.7 <u>Cessation of Employment – effect on blocking periods</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If Rule 6.3 or 6.4 apply, all Awards held by the Participant will remain blocked until the end of
the Mandatory Blocking Period and/or, where applicable, until the end of any Additional Blocking Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Participant Ceases Employment as a result of his death or Disability all Mandatory and Additional
Blocking Periods shall cease to apply immediately.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

***7.***  ***<u>C</u>***  ***<u>ORPORATE EVENTS</u>*** 

7.1 <u>Change of Control</u> 

If a Change of Control occurs or is anticipated to occur, unvested Awards shall Vest at the effective time of such Change of Control (or such earlier date or time that the Board may determine) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if, as at the proposed date of Vesting, it is impractical to assess performance against the applicable
Performance Conditions, at target; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if, as at the proposed date of Vesting, it is practicable to assess performance against the applicable
Performance Conditions, to the extent the Board determines having regard to performance against the applicable Performance Conditions
up to the date of proposed date of Vesting,

PROVIDED ALWAYS THAT if, in respect of an Award, the Change of Control in respect of which this Rule 7.1 applies occurs on or before the first anniversary of the Grant Date then the extent to which such Award Vests shall be reduced to take account of the proportion of the Performance Period as has elapsed when the Change of Control occurs.

Notwithstanding the preceding paragraph of this Rule 7.1, the Board may in its discretion with no obligation to do so, allow a greater proportion of an Award to Vest.

Alternatively, the Board may determine that some or all Awards will be automatically exchanged under Rule 7.2 or may allow Participants to choose Vesting and/or exchange.

7.2 <u>Exchange of Awards</u> 

If an Award is exchanged, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the exchanged award will be in respect of or by reference to shares in any company determined by the company
offering the exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the exchanged award shall have equivalent terms to those of the Award that was exchanged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Board may determine that any holding or blocking periods shall continue to apply to the exchanged
Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the exchanged award will be subject to the Plan as it had effect in relation to the old Award immediately
before the exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) with effect from the exchange, the Rules will apply as if references to Shares are references to
shares over which the exchanged award has been granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Rules shall apply with such other adjustments as the Board may decide.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

7.3 <u>Demerger, variations of share capital and other corporate events</u> 

If the Board becomes aware that the Company is or is expected to be affected by any variation of share capital, rights issue, sub-division, consolidation or reduction of share capital, demerger, distribution (other than an ordinary dividend), liquidation or other event (other than a Change of Control) which, in the opinion of the Board, could affect the current or future value of Shares, the Board may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) adjust Awards in such manner as it considers appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) allow Awards (for all or some Participants) to Vest in whole or in part, subject to any conditions that
the Board may impose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) require some or all Awards to be exchanged under Rule 7.2.

***8.***  ***<u>P</u>***  ***<u>ARTICIPANT RIGHTS AND OBLIGATIONS</u>*** 

The rights and obligations of a Participant under the terms of his or her office, employment or contract are not affected by becoming a Participant. These Rules do not form part of, and will not be incorporated into, any contract between a Participant and any member of the Group.

Participants do not have any right to continued employment with the Group as a result of participating in the Plan, nor are they entitled to any compensation or damages if any benefit under the Plan is reduced or cancelled as a result of applying the Rules.

Selection as a Participant refers only to the participation for the one grant year and does not guarantee a right of participation in the Plan in any subsequent year.

Nothing in this Plan confers any benefit, right or expectation on a person who is not an Eligible Employee or a Participant.

The Plan is discretionary and is not part of the any employment contract with the Employer or with any other Group company. Neither does the Plan create any contract between the Participant and Company or any other Group company, nor does the Plan give rise to a claim or legal entitlement to compensation for the Participant. The Plan may be changed or cancelled by the Board in its absolute discretion. Any future Awards may therefore be changed or cancelled at any time.

***9.***  ***<u>C</u>***  ***<u>LAWBACK</u>*** 

Participants must adhere at all times to applicable laws, the Articles, the Company's organisational regulations, the Code of Ethics and all applicable Company, Group or Employer policies, procedures and guidelines (including without limitation the "Malus and clawback" practice). If a Participant fails to comply with any such laws, Articles, regulations, Code of Ethics, policies, procedures and/or guidelines in material respects then the Board may determine that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all or any Award (whether vested or unvested) held by the Participant will lapse or be forfeited; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all or any of a Participant's Shares or ADIs transferred to him under the Plan following the Vesting
of Awards will be forfeited and must be transferred to the Company; and

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Participant must pay the Company (or such other member of the Group as the Board may determine) gross
proceeds from the sale of some or all of the Shares or ADIs transferred to him following the Vesting of Awards; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) pay to the Company (or such other member of the Group as the Board may determine) some or all of the gross
sums paid to him under the Plan.

***10.***  ***<u>T</u>***  ***<u>AX, SOCIAL SECURITY AND OTHER CHARGES</u>*** 

The Participant indemnifies each member of the Group against all taxes, social security contributions and other levies for which he is responsible that arise in connection with an Award (together "**Taxation**").

If a member of the Group must settle Taxation on behalf of the Participant, where such duties are permitted and/or required by applicable laws, regulations or policies (e.g. tax equalization policies) to be deducted from the Participant's net pay, the member of the Group shall withhold such amount from the current and/or subsequent payrolls and make such arrangements as is considered necessary for such a deduction.

If the available amounts of net pay are not sufficient, the Participant shall be obliged to forward a payment in the appropriate amount to the member of the Group or another designated legal entity to cover the amount of duties.

At the member of the Group's discretion, a number of Shares in respect of which the Award has Vested to the Participant may be sold (Sell-to-Cover) or withheld (Withhold-to-Cover) in order to settle any Taxation. For this purpose, the Participant expressly authorizes the service provider, the Company and the Employer to sell or withhold Shares in an amount that is necessary to cover the Taxation.

The Company and/or the Employer may make such arrangements which it or they consider necessary to meet any liability to pay or account for Taxation (including selling sufficient Shares to meet such liability and accounting for the proceeds of sale to the Company or the Employer). The Participant will promptly do all things necessary to facilitate any such arrangements. Vesting and the transfer of Shares to him can be delayed until he does so.

***11.***  ***<u>T</u>***  ***<u>RANSFER OF AWARDS</u>*** 

Unless specifically permitted under the Plan or with the prior written consent of the Board, Awards or any rights in respect of any Award may not be transferred, assigned or otherwise disposed of. If Awards (or any rights in respect of Awards) are transferred, assigned or otherwise disposed of or if the Participant becomes bankrupt they shall lapse or be forfeited immediately.

***12.***  ***<u>C</u>***  ***<u>OMPANY DOCUMENTS</u>*** 

The Company may (but need not) send to any Participant any documents which the Company sends to its shareholders.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

***13.***  ***<u>B</u>***  ***<u>OARD'S POWERS</u>*** 

The exercise of any power or discretion, including refraining from exercise, of the Board concerning the Plan or any Award is absolute and unlimited and may be reasonably exercised at any time, subject always to the principle of good faith. When the Board exercises any of its powers or discretions in a way that will impact a Participant, the Board may (but need not) inform the relevant Participant in such manner as the Board shall determine.

Any decision of the Board in connection with the Plan, the interpretation of the Plan and any related documents and in connection with any dispute relating to the Plan will be final and binding.

***14.***  ***<u>A</u>***  ***<u>DMINISTRATION AND REGULATIONS</u>*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 The Plan shall be administered by the
 Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 The Board may make and vary regulations
 and policies for the administration and operation of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3 The Board has the right to delegate
 its powers related to this Plan.

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| | |
|:---|:---|
| ***15*** | ***<u>A</u>*** ***<u>WARDS NOT PENSIONABLE ETC.</u>*** |

---

For the avoidance of doubt, Awards under the Plan are not pensionable and do not count in relation to the calculation of benefit under programmes such as life cover, income protection or continuation, medical or such other benefits as the Board may determine.

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| | |
|:---|:---|
| ***16*** | ***<u>N</u>*** ***<u>OTICES</u>*** |

---

Any notice or other communication under or in connection with the Plan or any Award may be given:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by the Company to an Eligible Employee
 or Participant either personally or sent to him at his place of work by electronic mail or other electronic
 means (including the internet or the intranet) or by post addressed to the address last known to the
 Company (including any address supplied by the relevant member of the Group) or sent through the Company's
 internal postal service; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the Company, either personally or
 by post to the Company secretary.

Items sent by post shall be pre-paid and shall be deemed to have been received 72 hours after posting. Items sent by electronic mail or other electronic means shall be deemed to have been received at the expiration of 24 hours from when they were sent.

The Board may decide the accept notices given by Participants if received after any time stipulated for receipt.

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| | |
|:---|:---|
| ***17*** | ***<u>D</u>*** ***<u>ATA PROTECTION</u>*** |

---

As required by local laws and regulations, Participants are informed about the processing of their personal information in connection with an Award and the general administration of the Plan by the Company and any other member of the Group and any of their advisers or agents and to the transmission of any such information to other jurisdictions.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

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| | |
|:---|:---|
| ***18*** | ***<u>A</u>*** ***<u>MENDMENT AND TERMINATION OF THE PLAN</u>*** |

---

The Board may at any time change the Plan (including amending or adding schedules to the Plan) in any way. Changes may affect Awards already granted provided always that, unless required by law, no such change may be made which is to the material disadvantage of a Participant without that Participant's prior written consent. The Board shall give notice of any changes to any Participant. The Board may terminate the Plan at any time. Termination will not affect existing Awards.

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| | |
|:---|:---|
| ***19*** | ***<u>C</u>*** ***<u>OMPLIANCE WITH LAW AND ARTICLES OF INCORPORATION</u>*** |

---

19.1 <u>Compliance with Law etc.</u> 

The Plan is subject to all applicable laws and the Company's Articles. If such law or the Articles require, the terms of any provision of the Plan and any Award (including any outstanding Award) shall be interpreted and/or amended and applied to the extent required to comply fully with such law or the Articles.

19.2 <u>Swiss law with respect to the compensation of certain executives of listed companies</u> 

The Plan, in particular, is subject to any mandatory provisions of Swiss law pertaining to compensation of governing bodies derived from article 95 paragraph 3 of the Swiss Federal Constitution and the related implementing legislation (**VegüV** or later implementing Federal law). Any interpretation and/or amendment necessary in respect of any provision of the Plan or any Award as a result of applicable law and/or the Articles (whether currently in force or in the future) to the detriment of the Participant shall not give rise to any claims by or other rights whatsoever of the Participant. This applies in particular if the annual general meeting of the Company does not approve the compensation of the Participant which is subject to approval under the VegüV.

19.3 <u>US Code Section 409A</u> 

If a Participant (other than a Participant whose benefits are provided under the United States Schedule) is subject to the United States Internal Revenue Code ("**US Code**") (a "**US Participant**"), and if benefits under this Plan for such US Participant are not exempt from US Code Section 409A, it is intended that to the maximum extent permitted under all applicable law this Plan will be interpreted and administered to conform to the requirements of US Code Section 409A as they apply to such US Participant.

In furtherance of this intent, to the extent that any portion of the benefits provided under the Plan constitutes a "deferral of compensation" under United States Treasury Regulation Section 1.409A-1(b):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any election to voluntarily defer such portion shall be made in accordance with the requirements for an
initial deferral under United States Treasury Regulation 1.409A-2(a);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the substantive provisions of Section 4(a) of Schedule United States shall apply to Awards of
SARs with the "market value" in paragraphs 4(a)(i) and 4(a)(ii) of that same Schedule determined pursuant to Rule 22 of the Plan
rather than paragraph 4(a)(iii) of Schedule United States;

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section 5.2 of Schedule United States shall apply to Restricted Stock Units, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the provisions of Sections 6 and 7 of Schedule United States shall apply to all such Awards.

19.4 <u>Voluntary Participation</u> 

By accepting any award or grant of securities under this Plan, Participants shall be deemed to represent and warrant to the Company that such Participant's participation in the trade and acceptance of such securities is voluntary and that such Participant has not been induced to participate by expectation of engagement, appointment, employment or continued engagement, appointment or employment, as applicable.

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| | |
|:---|:---|
| ***20*** | ***<u>A</u>*** ***<u>PPLICABLE LAW</u>*** |

---

The Plan is governed by and construed in accordance with the laws of Switzerland, under express exclusion of any provisions of conflict of laws.

The Board may resolve conclusively all questions of fact or interpretation concerning the Plan and has the authority to resolve any dispute of any kind that arises under or in connection with the Plan. In the event a dispute escalates to require resolution by a court, the dispute will exclusively be resolved by the Courts of Basel, Switzerland.

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| | |
|:---|:---|
| ***21*** | ***<u>D</u>*** ***<u>EFINITIONS AND INTERPRETATION</u>*** |

---

In this Plan and in the Schedules to the Plan, unless otherwise required by the Rules:

21.1 <u>Definitions</u> 

**ADIs** means American depositary instruments being either American Depositary Shares or American Depositary Receipts of the Company as specified in the Grant Notice.

**Articles** means the articles of incorporation of the Company as amended from time to time.

**Award** means an award under the Plan (which may be an award of Restricted Stock Units, Restricted Stock, Stock Appreciation Rights or such other form of award referable to the Company's equity as the Board may determine).

**Board** means the Company's Board of Directors or, to the extent permitted by applicable law, the Board's delegate or, following a Change of Control, those persons who comprised the Board immediately prior to such Change of Control.

**Cessation of Employment** occurs, for the purposes of the Plan, when a Participant ceases to hold an office or employment with any member of the Group PROVIDED THAT a Participant will not be treated as Ceasing Employment in circumstances in which that Participant is on a leave of absence where the Participant's right to re-employment is guaranteed either by statute or contract and employment is not otherwise terminated during such leave of absence (in which case the Participant will Cease Employment at the time of such termination) and similar terms, such as "**Ceases Employment**" or "**Ceasing to be Employed**", shall be construed accordingly.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

**Change of Control** means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any person or group of persons who are acting together purchases or otherwise becomes the beneficial owner
or has the right to acquire such beneficial ownership (whether or not such right is exercisable immediately or subject to passage of time
or other conditions) of voting securities representing more than 50% of the combined voting power of all outstanding securities of the
Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company's shareholders approve an agreement to merge or consolidate the Company with or into
another corporation as a result of which less than 50% of the outstanding voting securities of the surviving or resulting entity are or
will be owned by the former shareholders of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Company's shareholders approve the sale of all or substantially all of the Company's business
and/or assets to a person or entity which is not a member of the Group,

provided that an Internal Reorganisation shall not be a Change of Control.

**Code of Ethics** means the code of ethics adopted by the Company or any company within the Group which describes the fundamental principles concerning ethical business conduct as amended from time to time.

**Company** means Novartis AG.

**Competitor** means any company or other organisation that is either or both:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) part of the Company's comparator peer group of peer companies in the global healthcare industry, as listed in Schedule A, as
may be updated by the Board at any time without prior notice to plan participants, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in competition with the Company or any member of the Group in relation to products and/or clinical areas.

The intent of identifying Competitors under this Plan is, and always has been, to be inclusive of all subsidiaries and affiliates of each such Competitor, and with respect to organisations that are in competition with the Company or any member of the Group in relation to products and/or clinical areas, is also inclusive of investors (including without limitation venture capital and private equity funds or management companies) that "significantly" invest in companies or other organisations that are engaged in activities that are in competition with the Company or any member of the Group in relation to products and/or clinical areas ("Investors"). For these purposes, a company or organisation shall be considered to be an Investor if the Board determines, in its sole and exclusive discretion, that such company or organisation makes significant investments in areas that are in competition with the Company or any member of the Group in relation to products and/or clinical areas. The determination of whether an Investor significantly invests in companies or other organisations that are engaged in activities that are in competition with the Company or any member of the Group in relation to products and/or clinical areas, and therefore is a "Competitor" for the purpose of this Plan, is within the complete, sole and unfettered discretion of the Board, which it can determine at any time without prior notice to plan participants.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

Notwithstanding the foregoing, for the purposes of this Plan, a company or other organisation (including an Investor) shall not be deemed to be a "Competitor" if it is active in (or for Investors, does not invest in any products and/or clinical areas that are in competition with the Company or any member of the Group in relation to products and/or clinical areas) **no** jurisdiction (or, in connection with products or services, for delivery, sale, marketing, or development in **no** jurisdiction) in which the Company does business. For these purposes, "jurisdiction" means country.

If any part of the definition of "Competitor" is held to be void but would be valid if part of the wording were deleted or reformed, the definition of "Competitor" shall apply with such deletion or revision as may be necessary to make it valid and effective.

**Dealing Day** means a day on which the Swiss Exchange (SIX) or, in relation to ADIs, the national securities exchange in the US on which ADIs are listed, is open for business.

**Dealing Restrictions** means restrictions on the dealing in Shares or the grant of Awards imposed by any law, regulation or Code of Practice (including the Novartis Global Insider Trading Policy, as amended or replaced from time to time) or otherwise.

**Disability** means the Participant is permanently incapable of performing his duties and responsibilities due to illness or accident, in accordance with applicable law, or in the absence of such applicable law, as determined by the Board.

**Dividend Equivalents** means a right to cash or Shares as described in Rule 3.

**Eligible Employee** means any member of the Executive Committee and the Corporate Executive Group or any employee or group of employees of the Group as the Board shall determine.

**Employer** means the member of the Group by or in which the Participant is or, where the context so admits, was an office holder or employed.

**Grant Date** means the date an Award is made as specified in the Grant Notice.

**Grant Notice** means a grant notice provided to a Participant in accordance with the Rules.

**Grant Period** means the period of 42 calendar days commencing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the day on which the Plan is adopted by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Dealing Day immediately following the day on which the Company announces results for any period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the day on which the Company's annual general meeting is held; or

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any day on which the Board resolves that exceptional circumstances exist which justify the making of an
Award.

**Group** means the Company, all its direct and indirect subsidiaries, and any other entity determined by the Board to be a member of the Group for the purposes of the Plan.

**Internal Reorganisation** means any event, offer, scheme, share purchase, merger or arrangement whereby:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a Change of Control occurs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) immediately afterwards the share capital of the company then controlling (whether directly or indirectly)
the Company is owned substantially by the same persons who were shareholders of the Company immediately prior to such event, scheme or
arrangement in substantially the same proportions.

**Lock-In Period** has the meaning set out in Rule 4.9.

**Market Value** means in relation to a Share or ADI (as appropriate) on any given day:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the Shares are admitted to trading on the Swiss Exchange (SIX) an amount equal to the closing price
on that day (or if there is no such price on that day the last preceding day for which such price is available);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the ADIs are listed on a national securities exchange in the US an amount equal to the closing price
on that day (or if there is no such price on that day the last preceding day for which such price is available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Shares are not admitted to trading on the Swiss Exchange (SIX) or the ADIs are not are listed on
a national securities exchange in the US, then such value as is determined by the Board.

**Participant** means an Eligible Employee who is selected by the Board to participate in the Plan and is employed by the Group at the Grant Date.

**Performance Condition** means the condition (whether performance, time based or otherwise) set out in any Schedule or such other condition as the Board determines from time to time.

**Performance Period** means the period over which the Performance Conditions are measured, as determined by the Board.

**Plan** means the Novartis AG Long Term Incentive Plan.

**Restricted Stock** means an award of Shares subject to restrictions in accordance with the Plan.

**Restricted Stock Units** means a right to receive Shares or cash under the Plan (but subject to Rule 4.10 (cash and ADI alternative)).

**Retirement** means the Cessation of Employment:

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) subject, for the purposes of the Plan, to approval by the Employer, after having attained retirement age
according to the law applicable to the Participant, if any; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) on early retirement in accordance to applicable local law as approved by the Employer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by reason of retirement provided that such retirement is approved by the Board and the Employer.

**Rules** mean the rules of the Plan (including all Schedules).

**Schedule** means a schedule to the Rules.

**Service** means the period of continuous employment with the Group ending with the relevant Cessation of Employment for the purposes of the Plan PROVIDED ALWAYS THAT the Board may determine that prior periods of employment with the Group and/or periods of employment with entities outside the Group (but which are subsequently acquired by the Group) may be taken into account.

**Share** means a registered share of the Company with a par value of CHF -.50 or, in the case of SARs, notional Shares.

**Stock Appreciation Rights** or **SARs** means an award under the Plan, the future value of which is based on the increase in the value of Shares (from the base value set by the Board at the time an Award is made) which notionally comprises each SAR from the relevant Grant Date.

**VegüV** means the Swiss ordinance in executive compensation and is the German abbreviation for the ordinance against excessive compensation in listed companies (in full "Verordnung gegen übermässige Vergütungen bei börsenkotierten Aktiengesellschaften" or compensation of governing bodies in public companies such as members of the executive committee, the board of directors or the advisory boards).

**Vesting** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of Restricted Stock Units, a Participant being entitled to receive Shares or cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of Restricted Stock, restrictions under the Plan ceasing to apply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the case of SARs, a Participant being entitled to receive a cash sum based on the growth in value of
the notional Shares comprising the Award,

and "**Vest**" shall be construed accordingly.

**Vesting Date** means the date an Award vests as determined by the Board and specified in the Grant Notice.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

21.2 <u>Interpretation</u> 

Unless the context requires otherwise: words importing the singular include the plural and vice versa; the masculine includes the feminine and vice versa; the word "includes" is not a word of limitation; references to "Schedule" shall refer to the appropriate Schedule to the Plan; headings and boldings are for convenience only and do not affect the interpretation of these Rules.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

**SCHEDULE A**

**NOVARTIS COMPETITORS**

Where a Participant who retains his or her Awards following termination of Employment according to Rule 6, becomes an employee or director or otherwise provides services to a Competitor as listed or described below (and as defined in Rule 21.1), then all unvested Awards and/ or unexercised Stock Options shall immediately be forfeited under that Rule 6.5 (provided that such Rule 6.5 is applicable to the Award in question):

&nbsp;&nbsp;&nbsp;&nbsp;· AbbVie

&nbsp;&nbsp;&nbsp;&nbsp;· Amgen

&nbsp;&nbsp;&nbsp;&nbsp;· AstraZeneca

&nbsp;&nbsp;&nbsp;&nbsp;· Biogen

&nbsp;&nbsp;&nbsp;&nbsp;· Bristol-Myers Squibb

&nbsp;&nbsp;&nbsp;&nbsp;· Eli Lilly & Company

&nbsp;&nbsp;&nbsp;&nbsp;· Gilead

&nbsp;&nbsp;&nbsp;&nbsp;· GlaxoSmithKline

&nbsp;&nbsp;&nbsp;&nbsp;· Johnson & Johnson

&nbsp;&nbsp;&nbsp;&nbsp;· Merck & Co.

&nbsp;&nbsp;&nbsp;&nbsp;· Novo Nordisk

&nbsp;&nbsp;&nbsp;&nbsp;· Pfizer

&nbsp;&nbsp;&nbsp;&nbsp;· Roche

&nbsp;&nbsp;&nbsp;&nbsp;· Sanofi

Each company and organisation identified above is, as it always has been, intended to include all of its subsidiaries and affiliates.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

**SCHEDULE 1**

**LONG TERM PERFORMANCE PLAN**

***1.***  ***<u>A</u>***  ***<u>PPLICATION OF THE SCHEDULE</u>*** 

Where Awards are granted under the Long Term Performance Plan (the **LTPP**), then the Rules of the Novartis AG Long Term Incentive Plan (LTIP) shall apply subject to the terms set out in this Schedule.

***2.***  ***<u>P</u>***  ***<u>ERFORMANCE PERIOD</u>*** 

The Performance Period is the three-year period over which the Performance Conditions are measured ending on 31 December of the year preceding the year in which the Vesting Date of the relevant LTPP Award occurs or such other period as the Board shall determine as set out in the relevant Grant Notice.

***3.***  ***<u>P</u>***  ***<u>ERFORMANCE CONDITIONS</u>*** 

LTPP Awards are subject to Performance Conditions relating to Net Sales Growth, Core Operating Income Growth and Innovation. Each of the Performance Conditions is subject to an equal weighting percentage of an LTPP Award.

The maximum number of Vested LTPP Awards is 200% of the Awards determined in the Grant Notice before any Dividend Equivalents (with the caps applicable to each specific Performance Condition detailed below). To achieve this maximum, each Performance Condition should have a Performance Factor of 200% i.e. one Performance Conditions cannot compensate for the loss of another.

**<u>Net Sales Growth Performance Condition</u>**

For the purposes of this Schedule :

**"Base Net Sales"** means net sales of the Company for the Financial Year ended 31 December preceding the Grant Date as determined from time to time by the Board; and

**"Net Sales Growth CAGR"** means compound annual growth in net sales over the Performance Period as determined from time to time by the Board and expressed as the percentage change in comparison with the Base Net Sales, which is defined above.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

The number of LTPP Awards that are subject to the Net Sales Growth Performance Condition Vesting on the Vesting Date is determined by multiplying the number of granted LTPP Awards that are subject to that Performance Condition with the Net Sales Growth Performance Factor. The Net Sales Growth Performance Factor is determined by the Board based on the following Vesting schedule for all positive values of Net Sales Growth CAGR:

---

| | |
|:---|:---|
| Net Sales Growth CAGR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Sales Growth Performance Factor |
| Target Range 1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120 to 200 per cent |
| Target Range 2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80 to 120 per cent |
| Target Range 3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40 to 80 per cent |
| below Target Range 3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 per cent |

---

Target Range 1, Target Range 2 and Target Range 3 will be determined by the Board and notified to a Participant in the relevant Grant Notice.

**<u>Core Operating Income Growth Performance Condition</u>**

For the purposes of this Schedule:

**"Base Core Operating Income"** means the core operating income of the Company for the Financial Year ended 31 December preceding the Grant Date as determined from time to time by the Board; and

**"COI Growth CAGR"** means compound annual growth in core operating income over the Performance Period as determined from time to time by the Board and expressed as the percentage change in comparison with the Base Core Operating Income, which is defined above.

The number of LTPP Awards that are subject to the Core Operating Income Growth Performance Condition Vesting on the Vesting Date is determined by multiplying the number of granted LTPP Awards that are subject to that Performance Condition with the COI Growth Performance Factor. The COI Growth Performance Factor is determined by the Board based on the above Vesting schedule for the Net Sales Growth Performance Condition for all positive values of COI Growth CAGR (on the basis that the Vesting Schedule will have the following substituted column headings: the COI Growth CAGR and the COI Growth Performance Factor and that, as noted above, Target Range 1, Target Range 2 and Target Range 3 will be determined by the Board and notified to a Participant in the relevant Grant Notice).

**<u>Innovation Performance Condition</u>**

The Innovation Performance Factor reflects the achievement of the three-year forward-looking Innovation Targets set out for the respective grant of an Award and is determined by the Board as a percentage (**the "Innovation Performance Factor"**).

Innovation Targets focus on key innovation program milestones that will improve future business and/or highly contribute to Company's scientific reputation and are approved by the Board under consultation with Company's CEO and Research & Development Committee of the Board.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

The number of LTPP Awards that are subject to the Innovation Performance Condition Vesting on the Vesting Date is determined by multiplying the number of granted LTPP Awards that are subject to that Performance Condition with the Innovation Performance Factor.

***4.***  ***<u>CESSATION OF EMPLOYMENT</u>*** 

Rule 6 of the LTIP shall apply save as modified as follows:

6.6 <u>Cessation of Employment as a result of death or Disability</u> 

Rule 6.6 shall apply as follows:

"If a Participant Ceases Employment as a result of his death then the number of LTPP Awards as determined in the Grant Notice and held by that Participant shall Vest immediately in respect of a proportion of the LTPP Award (corresponding to such proportion of the Performance Period as has elapsed when the Participant Ceases Employment as a result of death):

(a) if, as at the date of Cessation of Employment, it is impractical to assess performance against the applicable
Performance Conditions, at target; or

(b) if, as at the date of Cessation of Employment, it is practicable to assess performance against the applicable
Performance Conditions, to the extent the Board determines having regard to performance against the applicable Performance Conditions
up to the date of Cessation of Employment.

In case of a Participant's death, upon notice to the Company his personal representative or successor in title shall be entitled to, if any, the Vested LTPP Awards. Settlement of these Vested LTPP Awards to the Participant's personal representative or successor in title excludes any other potential claims of the Participant's estate with regards to the LTPP."

***5.***  ***<u>AMENDMENTS</u>*** 

The Board may at any time change this Schedule. Subject to Rule 2.5 of the LTIP, changes may affect Awards already granted provided always that, unless required by law, no such change may be made which is to the material disadvantage of a Participant without that Participant's prior written consent.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

**SCHEDULE 2**

**PARTICIPANTS WHO ARE OR BECOME MEMBERS OF THE ECN**

***1.***  ***<u>A</u>***  ***<u>PPLICATION OF THIS</u> <u>S</u> <u>CHEDULE</u>*** 

Unless specifically provided otherwise, this Schedule shall apply to:

(a) Awards granted to any Participant who at the relevant Grant Date is a member of the ECN; and

(b) Awards granted to any Participant who, after the relevant Grant Date, becomes a member of the ECN.

Where this Schedule applies relevant Awards shall be subject to all the provisions of the Novartis AG Long Term Incentive Plan save as modified below.

***2.***  ***<u>D</u>***  ***<u>EFINITIONS</u>*** 

For the purposes of this Schedule the following definitions shall apply:

"**ECN**" means the Executive Committee of Novartis AG (including permanent attendees to that committee).

"**Retirement**" means the Cessation of Employment after:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) having attained age 58 or older, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in respect of those Participants who satisfied the Rule of 60 at December 31, 2015, having attained
age 55 or older and having completed at least 10 years of Service.

"**Rule of 60**" the sum of the Participant's age plus Service being equal to 60 or more. For the purposes of this definition the Participant's age and his Service shall be whole calendar years as at December 31, 2015.

***3.***  ***<u>P</u>***  ***<u>ERFORMANCE CONDITIONS AND ECN LTPP AWARDS VESTING</u>*** 

The paragraph 3 of "Schedule Long Term Performance Plan" shall apply as modified as follows:

In addition, for Executive Committee members, Relative TSR is included to the Performance Conditions previously mentioned.

**<u>Relative Total Shareholder Return (TSR) Performance Condition</u>**

TSR is calculated using such standard published methodology as the Board may determine from time to time, including share price growth and dividends paid over the Performance Period.

TSR is measured against a comparator peer group of fourteen peer companies in the global healthcare industry, currently AbbVie, Amgen, AstraZeneca, Biogen, Bristol-Myers Squibb, Eli Lilly & Company, Gilead, GlaxoSmithKline, Johnson & Johnson, Merck & Co., Novo Nordisk, Pfizer, Roche and Sanofi. The Board, in its discretion, may alter the constituents of the comparator group in such circumstances as it considers appropriate, including where a constituent company is no longer listed on a stock exchange.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

The number of LTPP Awards that are subject to the TSR Performance Condition Vesting on the Vesting Date is determined by multiplying the number of granted LTPP Awards that are subject to that Performance Condition with the TSR Performance Factor. The TSR Performance Factor is determined by the Board based on the following Vesting schedule for all positive values of TSR

The performance factor is set out as follows PROVIDED ALWAYS that the below shall not apply to Awards under the LTPP which were granted prior to the date on which the Participant became a member of the ECN:

---

| | |
|:---|:---|
| TSR rank compared to the comparator group | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LTPP Performance Factor |
| 1 to 2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170 to 200 per cent |
| 3 to 5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;130 to 160 per cent |
| 6 to 8 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80 to 120 per cent |
| 9 to 15 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 per cent |

---

In the event of a non-positive TSR value, the Board may reduce the number of LTPP Awards subject to the TSR Performance Condition, which would otherwise Vest.

For the avoidance of doubt, all of the other Performance Conditions set out in paragraph 3 of Schedule Long Term Performance Plan (i.e. the Net Sales Growth Performance Condition, the Core Operating Income Growth Performance Condition and the Innovation Performance Condition) shall continue to apply, as specified in Schedule Long Term Performance Plan.

***4.***  ***<u>B</u>***  ***<u>LOCKING</u> <u>R</u> <u>ESTRICTIONS</u>*** 

Awards granted to the Chief Executive Officer and Chief Financial Officer are subject to a mandatory blocking period of two years beyond the vesting date (after applicable taxes) ("**Mandatory Blocking Period**").

Furthermore, the Board may offer Participants the opportunity to block Awards in the form of Restricted Stocks after the expiry of the Mandatory Blocking Period ("**Additional Blocking Period**"). The blocking choices and the terms of the blocking will be determined by the Board from time to time.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

***5.***  ***<u>C</u>***  ***<u>ESSATION OF</u> <u>E</u> <u>MPLOYMENT</u> <u>– INTRODUCTION</u>*** 

The following in Rule 6.1 shall not apply:

"Notwithstanding any other part of this Rule 6, the Board may, in its discretion with no obligation to do so, allow (on such terms as the Board decides, including, without limitation, the Participant first executing and not revoking a general release of claims acceptable to the Company) a greater proportion of an Award to Vest and/or accelerate the time at which Vesting occurs and/or treat a Participant who has Ceased Employment as having done so within Rules 6.3, 6.4 or 6.6."

***6.***  ***<u>C ESSATION OF E MPLOYMENT AS A RESULT OF R ETIREMENT</u>*** 

6.1 Subject to proviso (b) below, Rule 6.3 shall be deleted
in its entirety and replaced with the following:

"If a Participant Ceases Employment because of Retirement with the agreement of the Participant's employer his Award shall, subject to Rule 6.5 and, if so determined by the Board, the Participant first executing and not revoking a general release of claims acceptable to the Company, Vest on the Vesting Date to the extent the Performance Conditions have been met PROVIDED ALWAYS THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the extent to which such Award Vests shall be reduced to take account of the proportion of the Performance
Period as has elapsed when the Cessation of Employment occurs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) this provision of this Schedule shall not apply to any member of the ECN who, as at 1 January 2018,
satisfied the definition of Retirement, as set out above in this Schedule (irrespective of whether or not such Retirement has been approved
by his employer). If this proviso (b) applies then Rule 6.3 (as set out in the main body of the Plan) shall apply."

6.2 Immediately following Rule 6.3 the following shall be added as Rule 6.3A:

"In determining whether to approve Retirement under Rule 6.3(a), the Board shall take into consideration the Participant's satisfaction of certain conditions, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) whether the Participant is leaving the Group in good standing and not for "cause" (for example
because of dishonesty, misconduct, gross negligence, violation of the Code of Ethics or similar reason);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether the Participant has returned to his Employer all company property in his possession at his termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) whether the Participant has cooperated with his Employer in the orderly handover and transition of his
duties and responsibilities prior to his date of termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) whether the Participant has given his written commitment that for one year following his termination he
will not work for a Competitor and he will refrain from soliciting other employees of the Group to terminate their employment; and

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) whether the Participant has affirmed his obligation not to disclose confidential information he received
during his employment with the Group and to refrain from using any such information for any purpose not in Group's business interests."

6.3 At the end of Rule 6.6 the following proviso shall be added:

"PROVIDED ALWAYS THAT if, in respect of an Award, the death or Disability in respect of which this Rule 6.6 applies occurs on or before the first anniversary of the Grant Date then the extent to which such Award Vests shall be reduced to take account of the proportion of the Performance Period as has elapsed when Cessation of Employment by reason of death or Disability occurs."

***7.***  ***<u>C</u>***  ***<u>ORPORATE EVENTS</u>*** 

The following in Rule 7.1 shall not apply:

"Notwithstanding the preceding paragraph of this Rule 7.1, the Board may in its discretion with no obligation to do so, allow a greater proportion of an Award to Vest."

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

**SCHEDULE 3**

**UNITED STATES**

***1.***  ***<u>A</u>***  ***<u>PPLICATION OF THIS</u> <u>S</u> <u>CHEDULE</u>*** 

When Awards under the Plan (including but not limited to Awards under the LTPP, BUPP and Select Schedules to the Plan) are to be granted the Board may determine that this Schedule applies, in which case such Awards shall be subject to all the provisions of the Novartis AG Long Term Incentive Plan save as modified below.

ADIs subject to the Awards under the Plan are intended to be registered under the United States Securities Act of 1933.

***2.***  ***<u>G</u>***  ***<u>RANT OF</u> <u>A</u> <u>WARDS –</u> <u>S</u> <u>HARES SUBJECT TO THE</u> <u>P</u> <u>LAN</u>*** 

(a) Subject to Rule 7.3, the aggregate number of ADIs made subject to Awards under this Schedule may
not exceed 13,510,000, plus any ADIs that were not issued under the Plan as of January 1, 2021; plus any ADIs subject to outstanding
Awards under the Plan as of January 1, 2021 that on or after January 1, 2021 cease for any reason to be subject to such Awards.

(b) Such ADIs shall be deemed to have been used in payment of Awards whether they are actually delivered or
the market value equivalent of such ADIs is paid in cash. In the event any Award is surrendered or terminated, or expires or is forfeited,
the number of ADIs no longer subject thereto shall thereupon be released and shall thereafter be available for new Awards under this Schedule.

(c) ADIs comprising Awards under this Schedule or delivered by the Company in settlement of Awards under this
Schedule may be derived from authorised and unissued Shares or from Shares or ADIs held in the treasury of the Company or held by another
member of the Group or may be purchased on the open market or by private purchase.

**3.**  ***<u>D</u>***  ***<u>EFINITIONS</u>*** 

For the purposes of this Schedule the following definitions shall apply:

"**Company**" in this Schedule means Novartis Corporation, a New York corporation.

"**Retirement**" the Cessation of Employment after having attained age 55 or older and having completed at least 10 years of Service.

***4.***  ***<u>S</u>***  ***<u>TOCK</u> <u>A</u> <u>PPRECIATION</u> <u>R</u> <u>IGHTS</u>*** 

SARs granted under this Schedule shall be subject to such terms and conditions, not inconsistent with the Plan, as the Board may impose, including, but not limited to, the following:

(a) <u>SARs with Participant discretion to exercise</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Base Value</u>. The Base Value for SARs per ADI subject to a SAR shall not be less than 100% of the
market value of an ADI at the Grant Date.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Payment on exercise</u>. On the exercise of a SAR, the Company or the Employer shall pay to the Participant
an amount equal to the number of ADIs subject to the SAR multiplied by the excess, if any, of the market value of one ADI on the exercise
date over the Base Value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Market value</u>. For the purposes of SARs subject to this Schedule, "market value" in
paragraphs 4(a)(i) and 4(a)(ii) of this Schedule on a given date means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) if the ADIs are listed on a national securities exchange in the United States, the closing sale price
reported as having occurred on the primary exchange with which the Shares are listed and traded (currently the New York Stock Exchange)
on such date or, if there is no such sale on that date, then the last preceding date on which such a sale was reported;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) if the ADIs are not listed on any national securities exchange but is quoted on the National Market System
of the National Association of Securities Dealers Automated Quotation System ()"**NASDAQ** "), the trade price of the last
sale reported on such date or, if there is no such sale on that date, then the last preceding date on which such a sale was reported;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) if the ADIs are not listed on a national securities exchange nor quoted on NASDAQ, on a last sale basis
the amount determined by the Board to be the fair market value based upon a good faith attempt to value the Shares accurately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Dividend Equivalents</u>. If the Board designates Dividend Equivalents to apply to SARs pursuant to
Rule 3.3(a), such accumulated Dividend Equivalents shall be paid to the Participant immediately upon Vesting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No deferral of proceeds</u>. Pursuant to the limitations of the United States Treasury Regulation Section 1.409A-1(b)(5)(i)(B)(3),
a Participant may not defer the proceeds of the exercise of a SAR.

(b) <u>SARs without Participant Discretion to exercise</u> 

If a SAR is granted with a fixed exercise date and the Participant has no discretion to exercise the SAR, Participants may elect to defer the payment of the proceeds of the automatic exercise of the SAR, and any accumulated Dividend Equivalents, to the date later than the payment date specified in the Award provided that the Participant makes such deferred election either as an initial deferral under United States Treasury Regulation Section 1.409A-2(a) or pursuant to the subsequent deferral provisions of United States Treasury Regulation Section 1.409A-2(b). The Board shall determine whether such deferral is in the form of Shares (ADIs) or cash. If deferrals are in Shares (ADIs), unless otherwise directed by the Board such Shares (ADIs), and any accumulated Dividend Equivalents, shall be delivered upon such deferred payment date. If the deferrals are in cash, the cash proceeds of such automatic exercise of the SARs shall be transferred into the applicable non-qualified deferred compensation plan of the Group entity which employs the Participant.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

***5.***  ***<u>C</u>***  ***<u>ONSEQUENCES OF</u> <u>V</u> <u>ESTING –</u> <u>R</u> <u>ESTRICTED</u> <u>S</u> <u>TOCK</u> <u>U</u> <u>NITS</u>*** 

5.1 Participants may elect to defer the payment of Restricted Stock Units, and any accumulated Dividend Equivalents,
to the date later than the payment date specified in the relevant Award provided that the Participant makes such a deferred election either
as an initial deferral under United States Treasury Regulation Section 1.409A-2(a) or pursuant to the subsequent deferral provisions
of United States Treasury Regulation Section 1.409A-2(b). The Board shall determine whether such deferral is in the form of Shares
(ADIs) or cash. If deferrals are in Shares (ADIs), unless otherwise directed by the Board, such Shares (ADIs), and any accumulated Dividend
Equivalents, shall be delivered from this Plan upon such deferred payment date. If deferrals are in cash, the cash proceeds of such Awards
shall be transferred into the applicable non-qualified deferred compensation plan of the Participant's employing Group company in
the United States.

5.2 Rule 4.3 shall be amended by inserting the underlined words below:

"As soon as practicable after the Vesting <u>(but no later than the 15<sup>th</sup> day of the third calendar month after the Vesting)</u> the Company shall transfer the number of Shares (or pay or procure to be paid a cash sum if the Board has determined that the RSU is to be settled in cash) in respect of which the Award has Vested to the Participant".

***6.***  ***<u>C</u>***  ***<u>ORPORATE</u> <u>E</u> <u>VENTS</u>*** 

Should the Board determine that adjustments be made to Awards under Rule 7, any such adjustments or modifications must be made in a manner which is consistent with the provisions of section 409A of the United States Internal Revenue Code ("**Code Section 409A**").

***7.***  ***<u>C</u>***  ***<u>ODE</u> <u>S</u> <u>ECTION 409A</u>*** 

7.1. Notwithstanding anything under the Plan to the contrary, to the extent applicable, it is intended that
the Plan as it applies to Participants shall comply with the provisions of Code Section 409A and the Plan and all applicable Awards
be construed and applied in a manner consistent with this intent. In furtherance thereof, any amount constituting a "deferral of
compensation" under Treasury Regulation Section 1.409A-1(b) that is payable to a Participant upon a separation from service
of the Participant (within the meaning of Treasury Regulation Section 1.409A-1(h)) (other than due to the Participant's death),
occurring while the Participant shall be a "specified employee" (within the meaning of Treasury Regulation Section 1.409A-1(i))
of the Group (as limited by Code Sections 414(b), (c), (m) and (o)), shall not be paid until the earlier of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the date that is six months following such separation from service; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the date of the Participant's death following such separation from service.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

7.2 Notwithstanding any provision of the Plan to the contrary, to the extent that an Award constituting a
 "deferral of compensation" subject to Code Section 409A shall be deemed to be vested or restrictions lapse upon the occurrence
of a Change of Control, and if such Change of Control does not constitute a "change in control event" (as defined in Treasury
Regulation Section 1.409A-3(i)), then even though such Award may be deemed to be vested or restrictions lapse, payment will only
be made to the extent necessary to comply with the provisions of Code Section 409A, to the United States Participant on the earliest
of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the United States Participant's separation from service, the date payment otherwise would have been
made pursuant to the regular payment terms of the Award; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Participant's death.

***8.***  ***<u>US E</u>***  ***<u>XECUTIVE</u> <u>F</u> <u>INANCIAL</u> <u>R</u> <u>ECOUPMENT</u> <u>P</u> <u>ROGRAM</u>*** 

For grants made on or after January 1, 2021 for US-based roles covered by the Incentive Compensation Restriction and Executive Financial Recoupment Program, as set forth in Appendix E of the Corporate Integrity Agreement Between the Office of Inspector General of the Department of Health and Human Services and Novartis Corporation ("2020 Novartis Corporate CIA") (the "Corporate Executive Financial Recoupment Program") and/or for grants made on or after January 1, 2022 for US-based roles covered by Appendix C of the Corporate Integrity Agreement Between the Office of Inspector General of the Department of Health and Human Services and Sandoz Inc ("2021 Sandoz CIA") (the "Sandoz Executive Financial Recoupment Program")(such roles hereinafter referenced as "Covered Executives"), the Board temporarily delegates its authority and discretion to make Clawback determinations under section 9 of this Plan, with respect to incentives awarded under this Plan, to the respective Recoupment Committee established under the Corporate and Sandoz Executive Financial Recoupment Programs, respectively, and to fulfill the obligations entrusted to the respective Recoupment Committee under such Programs, for the term of the 2020 Novartis Corporate CIA and/or 2021 Sandoz CIA, respectively.

Covered Executives must agree to accept the terms and conditions of the respective Executive Financial Recoupment Program as a condition of accepting awards under this Plan. The terms and conditions of the respective Executive Financial Recoupment Program shall apply to all awards made under this Plan to Covered Executives during the term of the 2020 Novartis Corporate CIA and/or Sandoz CIA.

At the conclusion of the 2020 Novartis Corporate CIA and/or 2021 Sandoz CIA, this temporary delegation of authority and discretion shall cease and will revert to the Board. The 2020 CIA may be accessed online at: <u>https://oig.hhs.gov/fraud/cia/agreements/Novartis_Corporation_06302020.pdf</u>.

The 2021 Sandoz CIA may be accessed online at

<u>https://oig.hhs.gov/fraud/cia/agreements/Sandoz_Inc_09302021.pdf</u>

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

**SCHEDULE 4**

**SELECT PLAN 2015**

***1.***  ***<u>A</u>***  ***<u>PPLICATION OF THE</u> <u>S</u> <u>CHEDULE</u>*** 

Where Awards are granted under the Select Plan 2015 ("**Select Plan**"), then the Rules of the Novartis AG Long Term Incentive Plan (LTIP) shall apply subject to the terms set out in this Schedule.

The Select Plan applies for Select Awards made on or after 1 January 2015.

***2.***  ***<u>P</u>***  ***<u>URPOSE</u>*** 

The purpose of the Select Plan 2015 is to provide selected Eligible Employees of the Company or any member of the Group with an opportunity to receive an Award in respect of Restricted Stock and/or Restricted Stock Units, thus providing an increased incentive for such persons to contribute to the future success and prosperity of the Company and the Group, enhancing the value of the Shares for the benefit of the shareholders of the Company and increasing the ability of the Company and the Group to attract and retain individuals of exceptional skill.

***3.***  ***<u>P</u>***  ***<u>ARTICIPANTS</u>*** 

(a) Members of the ECN may not be granted Awards under the Select Plan.

(b) Without prejudice to any subsisting Awards, the Board may, from time to time, exclude from participation
under the Select Plan such category or categories of Eligible Employees as the Board may determine.

***4.***  ***<u>V</u>***  ***<u>ESTING AND OTHER</u> <u>C</u> <u>ONDITIONS</u>*** 

(a) Subject to the Board determining otherwise the vesting period of the Awards under the Select Plan is 3
years.

(b) In the event that an Award comprises Select Restricted Stock, the Participant shall be entitled to receive
all dividends declared in respect of such shares (if any) and, other than in the year in which the Award is made if that Award is made
after the Company's annual general meeting, to vote in any meeting of the Company's shareholders by reference to such shares.

(c) In the event that an Award comprises Select Restricted Stock Units, during the Vesting Period the Participant
shall not, in relation to any shares referable to such SRSU, be entitled to any dividends or votes. SRSUs are not tradeable.

***5.***  ***<u>D</u>***  ***<u>EFINITIONS</u>*** 

For the purposes of this Schedule and its Appendices the following definitions shall apply:

"**ECN**" means the Executive Committee of Novartis AG (including permanent attendees to that committee).

"**Select Restricted Stock**" or "**SRS**" shall mean a Share subject to restrictions in accordance with the Select Plan.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

"**Select Restricted Stock Unit**" or "**SRSU**" shall mean a right to receive a Share (subject to the Board determining that SRSUs or any of them are to be settled in cash) in accordance with the Select Plan after the expiry of the Vesting Period.

"**U.S. Person**" has the same meaning as set out in Regulation S under the Securities Act of the United States of America provided that "U.S. Person" shall always include any person who is a resident of the United States.

"**Vesting Date**" means in relation to an Award the Vesting Date specified in the relevant Grant Notice.

**"Vesting Period"** shall mean the period between the Grant Date and Vesting Date of an Award.

***6.***  ***<u>C</u>***  ***<u>ESSATION OF</u> <u>E</u> <u>MPLOYMENT</u>*** 

Rule 6 of the LTIP shall apply save as modified as follows:

6.3 <u>Cessation of Employment as a result of Retirement</u> 

Rule 6.3 shall apply as follows:

"If a Participant Ceases Employment because of Retirement with the agreement of the Participant's employer his Award shall, provided, if so determined by the Board, the Participant first executes and does not revoke a general release of claims acceptable to the Company, Vest on the date of such Cessation of Employment PROVIDED ALWAYS THAT if the Cessation of Employment in respect of which this Rule 6.3 applies occurs on or before the first anniversary of the Grant Date then the extent to which such Award Vests shall be reduced to take account of the proportion of the Vesting Period as has elapsed when the Cessation of Employment occurs."

6.4 <u>Cessation of Employment for other good reasons and following sale</u> 

"If a Participant Ceases Employment because of:

(a) termination of employment by the Participant's Employer (whether or not by notice) other than for
misconduct or poor performance;

(b) his Employer ceasing to be a member of the Group;

(c) the business for which the Participant works is transferred to a person which or who is not a member of
the Group,

his Award shall, provided, in relation to Rule 6.4(a) and if so determined by the Board, the Participant first executes and does not revoke a general release of claims acceptable to the Company, Vest on the date of such Cessation of Employment in respect of a proportion of the Award (corresponding to such proportion of the Vesting Period as has elapsed when the Participant Ceases Employment provided that the Board may determine in the case of leaving for reasons set out in (b) or (c) above that some or all of the Awards held by relevant Participants shall be exchanged in accordance with Rule 7.2 of the LTIP (exchange of awards)."

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

6.5 <u>Lapse or forfeiture of Awards on joining a Competitor</u> 

"Section 6.5 entitled Lapse or forfeiture of Awards on joining a Competitor shall not apply to awards made under this Schedule."

6.6 <u>Cessation of Employment as a result of death or Disability</u> 

"If a Participant Ceases Employment as a result of his death or Disability then Awards held by that Participant shall Vest immediately."

***7.***  ***<u>US S</u>***  ***<u>ELLING RESTRICTIONS</u>*** 

The Shares subject to the Select Plan (including those received by Participants following Vesting of SRSUs) have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons except in certain transactions exempt from the registration requirements of the Securities Act. In connection with the acquisition of Shares, each Participant will represent and agree that she/he: is not a U.S. Person; is not purchasing or acquiring the Shares for the account or benefit of any U.S. Person; and has not offered or sold, and will not offer, sell or deliver, any of the Shares within the United States or to, or for the account or benefit of, any U.S. Person except pursuant to registration under the Securities Act or an available exemption from such registration.

***8.***  ***<u>A</u>***  ***<u>PPENDICES TO THE</u> <u>S</u> <u>ELECT</u> <u>P</u> <u>LAN</u>*** 

The Board may establish such appendices to the Select Plan as it considers necessary or appropriate. Such appendices may be included in such a way that they create special rules applicable to certain Eligible Employees or categories of Eligible Employees and/or constitute sub-plans to the Select Plan.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

**APPENDIX 1**

**NOVARTIS SELECT PLAN SWITZERLAND**

***1.***  ***<u>S</u>***  ***<u>ELECT</u> <u>S</u> <u>WITZERLAND</u>*** 

Where Awards are granted under the Novartis Select Plan Switzerland ("**Select Switzerland**"), then the Rules of the Select Plan 2015 (forming a schedule to the Novartis AG Long Term Incentive Plan) shall apply subject to the terms set out in this Appendix 1.

***2.***  ***<u>S</u>***  ***<u>ELECT</u> <u>C</u> <u>HOICES</u> <u>S</u> <u>WITZERLAND</u>*** 

Select Switzerland offers Participants the choice to receive Awards in the form of either:

(a) Select Restricted Stock (SRS); or

(b) Select Restricted Stock Units (SRSUs).

The Board may determine that Awards in the form of SRS may be subject to a mandatory blocking period ("**Mandatory Blocking Period**"). Furthermore, the Board may offer Participants the opportunity to block Awards in the form of SRS after the expiry of the Mandatory Blocking Period ("**Additional Blocking Period**"). The blocking choices and the terms of the blocking will be determined by the Board from time to time.

***3.***  ***<u>C</u>***  ***<u>ESSATION OF</u> <u>E</u> <u>MPLOYMENT</u>*** 

Rule 6 as applied by Schedule Select Plan 2015 shall apply save as modified as follows:

3.1 <u>General</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If upon Cessation of Employment the outstanding SRS are forfeited with immediate effect, no compensation
is paid to the Participant for the loss of the Award. In the event the applicable tax authorities decline to reimburse or compensate the
personal income tax paid at the time of Award in respect of the forfeited SRS, the Company will compensate such cost on such basis as
the Board may determine subject to receipt of such documentary proof as the Board may reasonably require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No compensation will be paid for the forfeiture of SRSUs.

3.2 <u>Cessation of Employment – effect on blocking periods</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If Rule 6 of Schedule Select Plan 2015 applies, all SRS held by the Participant will remain blocked
until the end of the Mandatory Blocking Period and/or, where applicable, until the end of any Additional Blocking Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Participant Ceases Employment as a result of his death or Disability all Mandatory and Additional
Blocking Periods shall cease to apply immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No further Additional Blocking periods shall be offered following Cessation of Employment.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

**SCHEDULE 5**

**NOVARTIS LAUNCH LEADER PLAN**

***1.***  ***<u>A</u>***  ***<u>PPLICATION OF THE S CHEDULE</u>*** 

Where Awards are granted under the Novartis Launch Leader Plan (the "NLLP") then the rules of the Novartis AG Long Term Incentive Plan (LTIP) shall apply subject to the terms set out in this Schedule. Awards under the NLLP may be granted in addition to the Awards under other long-term incentive programs within this Plan or other Plans. Awards under the NLLP granted to US and Canadian Participants will be awarded under the respective Schedule of the Novartis Corporation 2011 Stock Incentive Plan for North American Employees, as amended.

***2.***  ***<u>E</u>***  ***<u>LIGIBLE P ARTICIPANTS</u>*** 

For Participants to be eligible to participate in the NLLP they must be both

1. US and global launch leaders of products with anticipated peak sales in excess of 1 billion USD in the financial year (as determined
in the sole discretion of the company), and

2. Holder of Enterprise Value Roles ("EVR") and Business Value Roles ("BVR")

ECN members are excluded from participation in the NLLP. Additionally, those Participants that are US or Canadian paid are not eligible under this schedule. US and Canadian Participants are eligible for awards under the respective Schedule of the Novartis Corporation 2011 Stock Incentive Plan for North American Employees, as amended.

***3.***  ***<u>A</u>***  ***<u>WARD S IZE</u>*** 

Eligible participants may receive Awards up to the following size

(i) Business Value Role ("BVR"): up to 5,000 Restricted Stock Units

(ii) Holder of Enterprise Value Roles ("EVR"): up to 10,000 Restricted Stock Units

The Board may change the Award size at any time.

***4.***  ***<u>V</u>***  ***<u>ESTING AND OTHER C ONDITIONS</u>*** 

a) NLLP Awards are subject to the following Vesting conditions:

1. The Participants need to receive at least a short term individual performance factor of 100% over the
Vesting Period as defined in the Grant Notice, and

2. The Participants may not move out of their EVR or BVR role they were in at the grant date before the end
of the Vesting Period.

b) If the Vesting condition no. 1 is not met at the time of Vesting, the NLLP Award will not qualify for
Vesting and will lapse.

&nbsp;&nbsp;&nbsp;&nbsp;c) If a Participant initiates a move to a role that does not qualify for eligibility for NLLP Awards within
the Group (including all subsidiaries and affiliates of Novartis AG) at any time during the vesting period but prior to Vesting, condition
no. 2 fails and the NLLP Award will lapse.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

&nbsp;&nbsp;&nbsp;&nbsp;d) The Novartis Compensation Committee or the CEO can approve exceptions to these Vesting conditions. The
CEO may delegate approval for exceptions to the Chief People & Organization Officer.

&nbsp;&nbsp;&nbsp;&nbsp;e) To the extent the Vesting conditions are met (as determined by the Board), the NLLP Award shall Vest on
the Vesting Date subject to the rules of the Novartis AG Long Term Incentive Plan, including subject to the provisions relating to
cessation of employment. The Board can also define additional Vesting conditions in the Grant Notice.

***5.***  ***<u>D</u>***  ***<u>IVIDENDS AND DIVIDEND EQUIVALENTS</u>*** 

A Participant holding an NLLP Award of Restricted Stock Units shall not be entitled to vote, to receive dividends or to have any other rights of a shareholder in respect of such an Award unless and until the Shares comprising the Award are transferred to or acquired by the Participant.

***6.***  ***<u>C</u>***  ***<u>ESSATION OF</u> <u>E</u> <u>MPLOYMENT</u>*** 

Rule 6 of the LTIP shall apply save as modified as follows:

6.3 <u>Cessation of Employment as a result of Retirement</u> 

Rule 6.3 shall apply as follows:

"If a Participant Ceases Employment because of Retirement with the agreement of the Participant's employer his Award shall, provided, if so determined by the Board, the Participant first executes and does not revoke a general release of claims acceptable to the Company, Vest on the date of such Cessation of Employment PROVIDED ALWAYS THAT if the Cessation of Employment in respect of which this Rule 6.3 applies occurs on or before the first anniversary of the Grant Date then the extent to which such Award Vests shall be reduced to take account of the proportion of the Vesting Period as has elapsed when the Cessation of Employment occurs."

6.4 <u>Cessation of Employment for other good reasons and following sale</u> 

"If a Participant Ceases Employment because of:

(a) termination of employment by the Participant's Employer (whether or not by notice) other than for
misconduct or poor performance;

(b) his Employer ceasing to be a member of the Group;

(c) the business for which the Participant works is transferred to a person which or who is not a member of
the Group,

his Award shall, provided, in relation to Rule 6.4(a) and if so determined by the Board, the Participant first executes and does not revoke a general release of claims acceptable to the Company, Vest on the date of such Cessation of Employment in respect of a proportion of the Award (corresponding to such proportion of the Vesting Period as has elapsed when the Participant Ceases Employment provided that the Board may determine in the case of leaving for reasons set out in (b) or (c) above that some or all of the Awards held by relevant Participants shall be exchanged in accordance with Rule 7.2 of the LTIP (exchange of awards)."

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

6.5 <u>Lapse or forfeiture of Awards on joining a Competitor</u> 

"Where either Rule 6.3 or 6.4 applies such that NLLP Awards are retained by the Participant following Cessation of Employment, the following shall also apply: In the event that the Participant, in the period commencing on such cessation and ending immediately following the relevant Vesting Date, becomes an employee or director of (or otherwise provides services to) a Competitor, other than as a direct result of an event within Rule 6.4(b) or Rule 6.4(c), the NLLP Awards held by that Participant shall immediately lapse (or in the case of Restricted Stock, shall be immediately forfeited)."

6.6 <u>Cessation of Employment as a result of death or Disability</u> 

"If a Participant Ceases Employment as a result of his death or Disability then Awards held by that Participant shall Vest immediately."

***7.***  ***<u>D</u>***  ***<u>EFINITIONS</u>*** 

For the purpose of this Schedule, the following additional definitions shall apply:

"**Equivalent Performance Measurement**" If the performance assessment is not available for any reason including any performance management system changes, only the available assessments will be considered or an Equivalent Performance Measurement will be sought. For new Awards, the Equivalent Performance Measurement will be defined in the Grant Notice.

"**EVR**" Enterprise Value Roles are roles with enterprise-wide responsibilities and impact.

"**BVR**" Business Value Roles are roles with function-wide or business-wide responsibilities and impact.

"**Launch Leaders**" have responsibility and control over product launches with anticipated sales budgets of > 1 billion USD per financial year (as determined in the sole discretion of the company).

"**Rating**" means the performance assessment on the Novartis matrix used for the annual performance evaluation, which is required subsequently over the performance period.

"**Restricted Stock Unit**" or "**SRSU**" shall mean a right to receive a Share (subject to the Board determining that SRSUs or any of them are to be settled in cash) in accordance with the Select Plan after the expiry of the Vesting Period.

"**Vesting Date**" means in relation to an Award the Vesting Date specified in the relevant Grant Notice.

**"Vesting Period"** shall mean the period between the Grant Date and Vesting Date of an Award.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)

***8.***  ***<u>A</u>***  ***<u>MENDMENTS</u>*** 

The Board may change this Schedule at any time. Changes may affect NLLP Awards already granted provided always that, unless required by law, no such change may be made which is to the material disadvantage of a Participant without the Participant's prior written consent.

LTIP rules – January 22, 2014 and amended thereafter (effective in relation to awards made on or after January 1, 2023)