Document:

EX-10.1

 Exhibit 10.1 

TAX MATTERS AGREEMENT 

by and between 

MERCK & CO., INC. 

and 
 ORGANON &
CO. 

 TAX MATTERS AGREEMENT 

This Tax Matters Agreement (the “Agreement”) is entered into as of the 2 day of June, 2021, by and between Merck &
Co., Inc. (“Merck”), a New Jersey corporation, and Organon & Co. (“Organon” and, together with Merck, the “Parties”), a Delaware corporation. 

R E C I T A L S 
 WHEREAS,
Merck’s Board of Directors has determined that it is appropriate and advisable to: (i) separate the Organon Business from Merck’s remaining businesses (the “Separation”), which will include the transfer of the assets
(including interests in intangible assets and stock of subsidiaries) used in connection with the Organon Business to Organon and Organon’s direct and indirect subsidiaries; and (ii) following the Separation, make a distribution, on a pro
rata basis, to holders of common shares of Merck (“Merck Common Stock”) of all of the issued and outstanding shares of common stock of Organon (“Organon Common Stock”) owned by Merck
(the “Distribution,” and, together with the Separation, the “Transactions”) (the date of such Distribution, the “Distribution Date”); 

WHEREAS, Merck and Organon intend that the Distribution and certain other transactions effected as part of the Separation qualify for Tax-Free Status; 
 WHEREAS, as of the date hereof, Merck is the common parent of an affiliated group of
domestic corporations, including Organon, that has elected to file consolidated U.S. federal Income Tax Returns and, as a result of the Distribution, neither Organon nor any of its Affiliates will be a member of such group after the close of the
Distribution Date; and 
 WHEREAS, in contemplation of the Distribution, the Parties desire to provide for and agree upon the rights and
obligations of the Parties and their respective Affiliates of liabilities, and entitlements to refunds thereof, for certain federal, state, local, and non-U.S. Taxes arising prior to, at the time of, and
subsequent to the Distribution, to provide for and agree upon other matters relating to Taxes, and to set forth certain covenants and indemnities relating to the Tax-Free Status of the Separation and the
Distribution. 
 NOW, THEREFORE, in consideration of the mutual agreements, provisions, and covenants contained in this Agreement, the
Parties (and their respective Affiliates) hereby covenant and agree as follows: 
 ARTICLE I 

DEFINITIONS 
 For purposes
of this Agreement (including the recitals hereof), the following terms have the following meaning, and capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings assigned to them in the Separation Agreement.

 “Active Trade or Business” means, as shown on Exhibit A, the active conduct (as defined in Section 355(b)(2) of the
Code and the Treasury Regulations thereunder) by Organon and its “separate affiliated group” (as defined in Section 355(b)(3)(B) of the Code) and any Affiliate of Organon that is a party to a transaction intended to qualify under
Section 355 of the Code and such Affiliate’s “separate affiliated group” of the Organon Business, in each case, as conducted immediately prior to the Distribution or any other relevant distribution. 

  
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 “Adjustment Request” means any formal or informal claim or request filed
with any Tax Authority, or with any administrative agency or court, for the adjustment, Refund, or credit of Taxes, including (a) any amended Tax Return claiming adjustment to the Taxes as reported on the Tax Return or, if applicable, as
previously adjusted, (b) any claim for equitable recoupment or other offset, and (c) any claim for Refund or credit of Taxes previously paid. 

“Affiliate” (including, with a correlative meaning, “affiliated”) means, when used with respect to a specified
Person, a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with such specified Person. For the purpose of this definition, “control” (including with
correlative meanings, “controlled by” and “under common control with”), when used with respect to any specified Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of such Person, whether through the ownership of voting securities or otherwise. The Parties agree that for purposes of this Agreement, neither Organon nor any member of the Organon Group shall be deemed to be an
Affiliate of Merck or any member of the Merck Group, and neither Merck nor any member of the Merck Group shall be deemed to be an Affiliate of Organon or any member of the Organon Group. 

“Agreement” has the meaning set forth in the Preamble. 

“Board Certificate” has the meaning set forth in Section 4.2(d) of this Agreement. 

“Business” means the Merck Business or Organon Business, as the case may be. 

“Business Entity” means any corporation, general or limited partnership, trust, joint venture, unincorporated organization,
limited liability entity or other entity. 
 “Code” means the Internal Revenue Code of 1986, as amended. 

“Controlling Party” has the meaning set forth in Section 3.4(b)(iii) of this Agreement. 

“DGCL” means the Delaware General Corporation Law. 

“Dispute” has the meaning set forth in Section 5.6(a) of this Agreement. 

“Distribution” has the meaning set forth in the Recitals. 

“Distribution Date” has the meaning set forth in the Recitals. 

“Employee Matters Agreement” means the Employee Matters Agreement entered into by and between Merck and Organon in connection
with the Separation, the Distribution or the other transactions contemplated by the Separation Agreement. 
 “Employment
Taxes” means withholding taxes imposed with respect to employment, payroll, social security, workers compensation, unemployment, disability and any similar tax imposed by any Tax Authority, and any interest, penalties, additions to tax or
additional amounts with respect to the foregoing imposed on any taxpayer or consolidated, combined or unitary group of taxpayers. 

“Fifty-Percent or Greater Interest” has the meaning ascribed to such term for purposes of Sections 355(d) and (e) of the
Code. 
 “Final Determination” means the final resolution of liability for any Tax, which resolution may be for a specific
issue or adjustment or for a taxable period, (a) by IRS Form 870 or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the taxpayer, or by a comparable form under the
laws of a state, local, or non-U.S. taxing jurisdiction, except that a Form 870 or 870-AD or comparable form shall not constitute a Final Determination to the extent
that it reserves (whether by its terms or by operation of law) the right of the taxpayer to file a claim for Refund or the right of the Tax Authority to 

  
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assert a further deficiency in respect of such issue or adjustment or for such taxable period (as the case may be); (b) by a decision, judgment, decree, or other order by a court of competent
jurisdiction, which has become final and unappealable; (c) by a closing agreement or accepted offer in compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under the laws of a state, local, or non-U.S. taxing jurisdiction; (d) by any allowance of a Refund or credit in respect of an overpayment of Tax; (e) by a final settlement resulting from a treaty-based competent authority determination; or
(f) by any other final disposition, including by reason of: (i) the expiration of the applicable statute of limitations to which such Tax relates, or (ii) by mutual agreement of the Parties. 

“Foreign Tax Redetermination” means a change in the liability for a foreign Income Tax or other changes that may affect a
Person’s United States federal Income Tax liability within the meaning of Section 905(c) of the Code and the Treasury Regulations thereunder. 

“Gain Recognition Agreement” means a gain recognition agreement as described in Treasury Regulation Section 1.367(a)-8 or any successor provision thereto. 
 “Governmental Authority”
means any supranational, international, national, federal, state, provincial or local court, government, department, commission, board, bureau, agency, official or other regulatory, administrative or governmental authority, including the New York
Stock Exchange and any similar self-regulatory body under applicable securities laws. 
 “Income Tax” means all Taxes
(i) based upon, measured by, or calculated with respect to (A) net income or profits (including any capital gains, minimum Tax or any Tax on items of Tax preference, but not including sales, use, real or personal property, gross or net
receipts, value added, excise, leasing, transfer or similar Taxes), or (B) multiple bases (including corporate franchise, doing business and occupation Taxes) if one or more bases upon which such Tax is determined is described in clause
(A) of this definition, (ii) constituting an income Tax, war profits Tax, or excess profits Tax, or a Tax “in lieu of” such an income Tax, war profits Tax, or excess profits Tax, within the meaning of Section 901 of the
Code, or (iii) for the avoidance of doubt, any Tax imposed by any State of the United States or by any political subdivision of any such State which is imposed on or measured by net income, including state or local franchise or similar Taxes
measured by net income, as well as any state or local franchise, capital or similar Taxes imposed in lieu of a tax imposed on or measured by net income, together with any interest, penalty, additions to tax, or additional amounts in respect of the
foregoing. 
 “Income Tax Return” means any Tax Return relating to Income Taxes. 

“Indemnifying Party” means a Party that has an obligation to make an Indemnity Payment. 

“Indemnitee” means a Party that is entitled to receive an Indemnity Payment. 

“Indemnity Payment” means an indemnity payment contemplated by the Separation Agreement, this Agreement or any other
Transaction Document. 
 “IRS” means the United States Internal Revenue Service. 

“Joint Return” means any Tax Return that actually includes, by election or otherwise, one or more members of the Merck Group
together with one or more members of the Organon Group, including any entity that is a predecessor or successor, including an “acquiring corporation” within the meaning of Section 381 of the Code, to a member of the Merck Group or the
Organon Group. 
 “Merck” has the meaning set forth in the Preamble. 

  
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 “Merck Affiliated Group” means the affiliated group (as that term is
defined in Section 1504 of the Code and the Treasury Regulations thereunder) of which Merck is the common parent. 
 “Merck
Business” has the meaning set forth in the Separation Agreement. 
 “Merck Capital Stock” means all classes or
series of capital stock of Merck, including (a) the Merck Common Stock, (b) all options, warrants and other rights to acquire such capital stock and (c) all instruments properly treated as stock in Merck for U.S. federal Income Tax
purposes. 
 “Merck Common Stock” has the meaning set forth in the Recitals. 

“Merck Federal Consolidated Income Tax Return” means any United States federal Income Tax Return for the Merck Affiliated
Group. 
 “Merck Group” means Merck and all Affiliates of Merck, excluding any entity that is a member of the Organon
Group. 
 “Merck Liability Percentage” means the difference, expressed as a percentage, of (i) one hundred percent
(100%) minus (ii) the Organon Liability Percentage. 
 “Merck Market Capitalization” means the product of (i) the
volume-weighted average trading price per share of Merck Common Stock for the twenty (20) consecutive trading days beginning on and following the first trading day following the Distribution Date, as quoted by Bloomberg Professional Services,
rounded to the nearest whole cent, multiplied by (ii) the arithmetic average of the number of Merck Common Stock outstanding, on a fully-diluted basis, on each of such twenty (20) trading days, rounded to two (2) decimal points. 

“Merck Separate Return” means any Tax Return of or including any member of the Merck Group (including any consolidated,
combined or unitary return) that is not a Joint Return. 
 “Non-Controlling Party”
has the meaning set forth in Section 3.4(b)(iii) of this Agreement. 

“Non-Income Tax” means any Tax that is not an Income Tax or a Property Tax. 

“Notified Action” has the meaning set forth in Section 4.4(a). 

“Organon” has the meaning set forth in the Preamble. 

“Organon Business” has the meaning set forth in the Separation Agreement. 

“Organon Capital Stock” means all classes or series of capital stock of Organon, including (a) the Organon Common Stock,
(b) all options, warrants and other rights to acquire such capital stock and (c) all instruments properly treated as stock in Organon for U.S. federal Income Tax purposes. 

“Organon Common Stock” has the meaning set forth in the Recitals. 

“Organon Group” means Organon and all Affiliates of Organon, as determined immediately after the Distribution. 

“Organon Liability Percentage” means the quotient, expressed as a percentage and rounded to two (2) decimal points, of
(i) the Organon Market Capitalization, divided by (ii) the sum of the Merck Market Capitalization plus the Organon Market Capitalization. 

  
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 “Organon Market Capitalization” means the product of (i) the
volume-weighted average trading price per share of Organon Common Stock for the twenty (20) consecutive trading days beginning on and following the first trading day following the Distribution Date, as quoted by Bloomberg Professional Services,
rounded to the nearest whole cent, multiplied by (ii) the arithmetic average of the number of Organon Common Stock outstanding, on a fully-diluted basis, on each of such twenty (20) trading days, rounded to two (2) decimal points.

 “Organon Separate Return” means any Tax Return for any Tax Period, including, for the avoidance of doubt, any Pre-Distribution Tax Period, of or including any member of the Organon Group (including any consolidated, combined or unitary return) that is not a Joint Return. 

“Parties” has the meaning set forth in the Preamble. 

“Person” means any (i) individual, (ii) Business Entity or (iii) Governmental Authority, and including any
successor or permitted assignee, by merger or otherwise, of any of the foregoing, without regard to whether any entity is treated as disregarded for U.S. federal Income Tax purposes. 

“Pharma Fee” means the “Branded Prescription Drug Fee” as defined in Treasury Regulation Section 51.1, et seq.

 “Post-Distribution Tax Period” means any Tax Period beginning after the Distribution Date, and, in the case of any
Straddle Period, the portion of such Straddle Period beginning the day after the Distribution Date. 
 “Pre-Distribution Tax Period” means any Tax Period ending on or before the Distribution Date, and, in the case of any Straddle Period, the portion of such Straddle Period ending on the Distribution Date.

 “Preliminary Tax Advisor” has the meaning set forth in Section 5.6(c) of this Agreement. 

“Privilege” means any privilege that may be asserted under applicable law, including, any privilege arising under or relating
to the attorney-client relationship (including the attorney-client and work product privileges), the accountant-client privilege and any privilege relating to internal evaluation processes. 

“Property Tax” means any real, personal and intangible ad valorem Tax imposed by any Tax Authority incident to the ownership
of property, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
 “Proposed
Acquisition Transaction” means a transaction or series of transactions (or any agreement, understanding or arrangement, within the meaning of Section 355(e) of the Code and Treasury Regulation
Section 1.355-7, or any other Treasury Regulations promulgated thereunder, to enter into a transaction or series of transactions), whether such transaction is supported by Organon management or
shareholders, is a hostile acquisition, or otherwise, as a result of which Organon would merge or consolidate with any other Person or as a result of which one or more Persons would (directly or indirectly) acquire, or have the right to acquire,
from Organon and/or one or more holders of outstanding shares of Organon Capital Stock, a number of shares of Organon Capital Stock that would, when combined with any other changes in ownership of Organon Capital Stock pertinent for purposes of
Section 355(e) of the Code, comprise twenty percent (20%) or more of (a) the value of all outstanding shares of stock of Organon as of the date of such transaction, or in the case of a series of transactions, the date of the last
transaction of such series, or (b) the total combined voting power of all outstanding shares of voting stock of Organon as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of such
series. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include issuances by Organon that satisfy Safe Harbor VIII (relating to acquisitions in connection with a Person’s performance of services) or Safe Harbor IX
(relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d). For purposes of determining whether a transaction constitutes an indirect acquisition,

  
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any recapitalization resulting in a shift of voting power shall be treated as an acquisition of stock by the shareholder whose voting power increases and any redemption of shares of stock shall
be treated as an indirect acquisition of shares of stock by the non-exchanging shareholders. This definition and the application thereof are intended to monitor compliance with Section 355(e) of the Code
and shall be interpreted accordingly. Any clarification of, or change in, the statute or Treasury Regulations promulgated under Section 355(e) of the Code shall be incorporated in this definition and its interpretation. All references to
“Organon” in this definition shall include any predecessor or successor thereto, within the meaning of Treasury Regulation Section 1.355-8. 

“Records” has the meaning set forth in Section 5.1(a)(i). 

“Refund” has the meaning set forth in Section 2.8(a). 

“Refund Recipient” has the meaning set forth in Section 2.8(a). 

“Representation Letters” means the representation letters and any other materials (including, without limitation, a Ruling
Request and any related supplemental submissions) delivered or deliverable by Merck and others in connection with the rendering by Baker & McKenzie LLP, Ernst & Young LLP, and/or the issuance by any Tax Authority, of the Tax
Opinions/Rulings. 
 “Ruling Request” means any letter filed by Merck with any Tax Authority requesting a ruling regarding
certain Tax consequences of the Transactions (including all attachments, exhibits, and other materials submitted with such ruling request letter) and any amendment or supplement to such ruling request letter. 

“Section 336(e) Election” has the meaning set forth in Section 4.6(b). 

“Section 336(e) Tax Basis” has the meaning set forth in Section 4.6(b)(ii). 

“Section 965 Liability” means the “net tax liability” of the Merck Group under
Section 965(h)(6)(A) of the Code. 
 “Section 4.2(d) Acquisition Transaction” means any transaction
or series of transactions that is not a Proposed Acquisition Transaction but would be a Proposed Acquisition Transaction if the percentage reflected in the definition of Proposed Acquisition Transaction were ten percent (10%) instead of twenty
percent (20%). 
 “Separate Return” means a Merck Separate Return or an Organon Separate Return, as the case may be. 

“Separation” has the meaning set forth in the Recitals. 

“Separation Agreement” means the Separation and Distribution Agreement entered into by and between Merck and Organon on the
date hereof, as the same may be amended. 
 “Separation Plan” means the Global Macro Step Plan dated May 6, 2021,
attached hereto as Exhibit B. 
 “Separation Taxes” means those Taxes shown on Exhibit C, identified by the jurisdiction
imposing such Tax, the step in the Separation Plan with respect to which such Tax is triggered, and a description of the nature of such Tax. Dollar amounts shown on Exhibit C reflect the current estimate of the amount of such Separation Taxes, where
available; the indemnification obligations of Merck pursuant to Section 2.5 hereof with respect to such Separation Taxes shall be determined based upon the final amount of such Separation Taxes as determined under applicable law or a Final
Determination or other adjustment made by a Tax Authority rather than upon the estimated amounts set forth on Exhibit C. For the avoidance of doubt, Separation Taxes shall include only those Taxes shown on Exhibit C, and shall not include any other
Taxes. 

  
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 “Straddle Period” means any Tax Period that begins on or before and ends
after the Distribution Date. 
 “Tax” or “Taxes” means (i) any income, net income, gross income,
gross receipts, profits, capital stock, franchise, property, ad valorem, value added, stamp, excise, severance, occupation, service, sales, use, license, lease, transfer, import, export, alternative minimum, estimated, withholding (to the extent not
related to employment) or other tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax), imposed by any governmental entity or political subdivision thereof, and any interest, penalty, additions to tax, or
additional amounts in respect of the foregoing, and including any liability of any member of the Merck Group or the Organon Group for payment of any amounts described in the foregoing as a result of any express or implied obligation to indemnify any
other Person; and (ii) any Employment Tax. 
 “Tax Advisor” means, with respect to U.S. Tax matters, a U.S. Tax
counsel or accountant of recognized national standing, and, with respect to non-U.S. Tax matters, a local Tax counsel or accountant of recognized national standing in the relevant jurisdiction. 

“Tax Attribute” means a net operating loss, net capital loss, unused investment credit, unused foreign tax credit, excess
charitable contribution, unused general business credit, unused research and development credit, disallowed business interest expense carryforward, earnings and profits, or any other Tax Item that could reduce a Tax or create a Tax Benefit. 

“Tax Authority” means, with respect to any Tax, the Governmental Authority or political subdivision thereof that imposes such
Tax, and the agency (if any) charged with the collection of such Tax for such Governmental Authority or subdivision. 
 “Tax
Benefit” means, with respect to a Tax Period, the amount by which the cash Tax liability of an entity (or of the consolidated or combined group of which it is a member) is reduced solely as a result of a Tax Item, or the amount of an actual
Tax Refund that is generated solely as a result of such Tax Item (plus any related interest received from any Tax Authority), in either case, by comparing the cash Tax liability or actual Tax Refund on the applicable Tax Return that would arise with
and without the Tax Item potentially giving rise to the Tax Benefit. 
 “Tax Contest” means an audit, review, examination,
or any other administrative or judicial proceeding with the purpose or effect of determining or redetermining any Tax (including any administrative or judicial review of any claim for Refund). 

“Tax-Free Status” means the treatment of the Transactions and any other transaction
described in the Tax Opinions/Rulings, in accordance with the treatment set forth therein.  

“Tax Incentive” means a Tax exemption, Tax holiday, Tax incentive, preferential Tax treatment, Tax deferral, Tax credit, or
other Tax reduction agreement relating to the Merck Group or the Organon Group shown on Exhibit D. 
 “Tax Item” means any
item of income, gain, loss, deduction, credit, recapture of credit, or any other item (including the basis or adjusted basis of property) which increases or decreases Taxes paid or payable in any taxable period. 

  
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 “Tax Law” means the law of any governmental entity or political subdivision
thereof relating to any Tax. 
 “Tax Opinions” means (i) the written opinions on the U.S. federal Income Tax
consequences of certain aspects of the Transactions provided by Baker & McKenzie LLP and/or Ernst & Young LLP to any member of the Merck Group or the Organon Group and (ii) any other written opinions on the U.S. state, local,
and non-U.S. tax consequences of certain aspects of the Transactions provided by any Tax Advisors to any member of the Merck Group or Organon Group, in either case, requested prior to the Distribution. 

“Tax Opinions/Rulings” means the Tax Opinions and/or the Tax Rulings shown on Exhibit E. 

“Tax Period” means, with respect to any Tax, the period for which the Tax is reported as provided under the Code or other
applicable Tax Law. 
 “Tax-Related Losses” means (a) all Taxes (including
interest and penalties thereon) imposed pursuant to any settlement, Final Determination, judgment, or otherwise; (b) all accounting, legal, and other professional fees, and court costs incurred in connection with such Taxes; and (c) all
costs, expenses, and damages associated with stockholder litigation or controversies and any amount paid by Merck (or any Merck Affiliate) or Organon (or any Organon Affiliate) in respect of the liability of shareholders, whether paid to
shareholders or to the IRS or any other Tax Authority, in each case, resulting from the failure of the Transactions to have Tax-Free Status. 

“Tax Return” means any report of Tax due, any claims for Refund of Tax paid, any information return with respect to Tax, any
election made with respect to Tax, or any other similar report, statement, declaration, or document required to be filed under the Code or other law with respect to Tax, including any attachments, exhibits, or other materials submitted with any of
the foregoing, and including any amendments or supplements to any of the foregoing for any taxpayer or consolidated, combined, or unitary group of taxpayers. 

“Tax Return Preparer” means (i) with respect to any Tax Return that Merck is responsible for preparing under
Section 3.1(a), Merck, and (ii) with respect to any Tax Return that Organon is responsible for preparing under Section 3.1(b), Organon. 

“Tax Ruling” means a ruling issued by a Tax Authority pursuant to a Ruling Request filed by or on behalf of the Merck Group
with respect to the Transactions (including any supplemental rulings). 
 “Transactions” has the meaning set forth in the
Recitals. 
 “Treasury Regulations” means the regulations promulgated from time to time under the Code as in effect for the
relevant Tax Period. 
 “Unqualified Tax Opinion” means an unqualified “will” opinion of a Tax Advisor, which Tax
Advisor is acceptable to Merck, on which Merck may rely to the effect that a transaction will not affect the Tax-Free Status. Any such opinion must assume that the Transactions would have qualified for Tax-Free Status if the transaction in question did not occur. 

  
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 ARTICLE II 

RESPONSIBILITY FOR TAX 

Section 2.1 General Rule. 

(a) Merck Liability. Merck shall be liable for, and shall indemnify and hold harmless the Organon Group from and against any liability
for, Taxes which are allocated to Merck under this Article II. 
 (b) Organon Liability. Organon shall be liable for, and shall
indemnify and hold harmless the Merck Group from and against any liability for, Taxes which are allocated to Organon under this Article II. 

Section 2.2 Allocation of Income Taxes. 

Except as provided in Section 2.5, all Income Taxes of the Merck Group and Organon Group shall be allocated as
follows: 
 (a) Allocation of Income Taxes Relating to Joint Returns. 

(i) Pre-Distribution Tax Period Joint Returns. With respect to all Pre-Distribution Tax Periods, Merck shall be responsible for any and all Income Taxes (including estimated Income Taxes) shown as due and owing on any originally filed Joint Return, and any and all Income Taxes as a
result of either an amended Joint Return or a Final Determination or other adjustment made by a Tax Authority with respect to any Income Tax Item relating to a Joint Return. 

(ii) Merck U.S. Consolidated Return. All U.S. federal Income Tax Returns that are Joint Returns filed by Merck as the common parent of
a consolidated group shall be treated as Tax Returns filed with respect to a Pre-Distribution Tax Period, without regard to whether a Tax Period ends after the Distribution Date. 

(b) Allocation of Income Taxes Relating to Separate Returns. 

(i) Merck Separate Returns. Merck shall be responsible for any and all Income Taxes (including estimated Income Taxes) shown as due and
owing on any originally filed Merck Separate Return, and any and all Income Taxes as a result of either an amended Merck Separate Return or a Final Determination or other adjustment made by a Tax Authority with respect to any Income Tax Item
relating to a Merck Separate Return, for all Tax Periods. 
 (ii) Organon Separate Returns. Subject to Schedule 2.2, Organon
shall be responsible for any and all Income Taxes (including estimated Income Taxes) shown as due and owing on any originally filed Organon Separate Return, and any and all Income Taxes as a result of either an amended Organon Separate Return or a
Final Determination or other adjustment made by a Tax Authority with respect to any Income Tax Item relating to a Organon Separate Return, for all Tax Periods. 

Section 2.3 Non-Income Taxes. 

Subject to Section 2.5, all Non-Income Taxes of the Merck Group and Organon Group shall be
allocated as follows: 
 (a) Pre-Distribution Tax Period
Non-Income Taxes. For all Pre-Distribution Tax Periods, (i) Merck shall be responsible for any and all Non-Income Taxes
that are attributable to the Merck Business, and (ii) Organon shall be responsible for any and all Non-Income Taxes that are attributable to the Organon Business. 

  
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 (b) Post-Distribution Tax Period Non-Income
Taxes. For all Post-Distribution Tax Periods, (i) Merck shall be responsible for any and all Non-Income Taxes imposed on the Merck Group and (ii) Organon shall be responsible for any and all Non-Income Taxes imposed on the Organon Group. 
 (c) Pharma Fee. Notwithstanding
Section 2.3(a), for all Tax Periods, (i) Merck shall be responsible for any Pharma Fee imposed on the Merck Group and (ii) Organon shall be responsible for any Pharma Fee imposed on the Organon Group;
provided, however, that Organon shall be responsible for any Pharma Fee imposed on the Merck Group relating to transactions that (i) occur on or after November 1, 2020 and (ii) are attributable to the Organon Business or
otherwise results from assets, intellectual property, or other products owned by the Organon Group immediately after the Distribution. 

Section 2.4 Property Taxes. 

Merck shall be responsible for Property Taxes imposed with respect to any property owned by any member of the Merck Group during a Tax Period,
and Organon shall be responsible for Property Taxes imposed with respect to property owned by any member of the Organon Group during a Tax Period. In the event that Property Taxes are imposed with respect to property that is owned by both a member
of the Merck Group and a member of the Organon Group during a Tax Period, the amount of Property Taxes for which each of Merck and Organon is liable shall be computed on a daily pro rata basis with respect to the number of days the Merck Group
member and the Organon Group member, respectively, owned the property. 
 Section 2.5 Certain Transaction Taxes, Section 965
Liability, and Breaches of Representations or Covenants. 
 (a) The Parties acknowledge and agree that this Agreement, including
Article II, shall not apply with respect to any and all Employment Taxes, for which the Employee Matters Agreement shall govern. 

(b) Any Separation Taxes shall be allocated to Merck. 

(c) Any Section 965 Liability shall be allocated to Merck. 

(d) Organon shall be responsible for: (i) any and all Tax-Related Losses for which Organon is
responsible pursuant to Section 4.5 of this Agreement; and (ii) any and all Taxes resulting from a breach by any member of the Organon Group of any representation or covenant in this Agreement. 

(e) Merck shall be responsible for: (i) any and all Tax-Related Losses for which Merck is
responsible pursuant to Section 4.5 of this Agreement; and (ii) any and all Taxes resulting from a breach by any member of the Merck Group of any representation or covenant in this Agreement. 

Section 2.6 Determination of Tax Attributable to Merck Business and Organon Business. 

(a) For purposes of this Article II, the amount of Taxes attributable to either the Merck Business or Organon Business for any Tax
Period shall be determined by Merck, in Merck’s sole discretion, in a manner consistent with the past return filing practices (if any) of the Merck Group with respect to the relevant Tax Return (including any past accounting methods, elections
and conventions). 

  
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 (b) Limitation. The amount of Taxes attributable to the Organon Business for any Tax
Period shall not be less than zero. 
 Section 2.7 Proration of Taxes for Straddle Periods. 

(a) If Merck determines, in its sole discretion, to close the taxable year of any member of the Organon Group for the purposes of any Tax as of
the end of the Distribution Date, Merck and Organon shall take all commercially reasonable actions necessary or appropriate to so close such taxable year, to the extent permitted by applicable law. 

(b) For any Straddle Period, Taxes for the Pre-Distribution Tax Period shall be computed (i) in
the case of Taxes imposed on a periodic basis, on a daily pro rata basis and (ii) in the case of other Taxes generally, as if the Tax Period ended as of the close of business on the Distribution Date. 

Section 2.8 Tax Refunds. 

(a) Subject to Section 2.8(b), and except as provided in Section 2.9, if Merck, Organon or
any of their respective Affiliates receives any refund of Taxes, or any rebate or other repayment of an amount in addition or adjustment with respect to Taxes, whether from a Tax Authority or other entity (collectively, a “Refund”),
with respect to any Taxes for which the other Party is allocated responsibility under this Article II (a “Refund Recipient”), such Refund Recipient or any of its Affiliates shall pay to the other Party the entire amount of
the Refund (including interest received from the relevant Tax Authority or other entity, but net of any Taxes imposed with respect to such Refund and any other reasonable costs) within ten (10) business days of receipt thereof; provided,
however, that the other Party, upon the request of such Refund Recipient, shall repay the amount paid to the other Party (plus any penalties, interest or other charges imposed by the relevant Tax Authority) in the event such Refund Recipient
is required by applicable law to repay such Refund. In the event a Party would be a Refund Recipient but for the fact it elected to apply a Refund to which it would otherwise have been entitled against a Tax liability arising in a subsequent taxable
period, then such Party shall be treated as a Refund Recipient and the economic benefit of so applying the Refund shall be treated as a Refund, and shall be paid within ten (10) business days of the due date of the Tax Return to which such
Refund is applied to reduce the subsequent Tax liability. 
 (b) Notwithstanding anything in Section 2.8(a) to the
contrary, no payments shall be required pursuant to Section 2.8(a) for overpayments shown on any originally filed Income Tax Return for a Pre-Distribution Tax Period (but not
including any amended Income Tax Return or other Adjustment Request), unless the overpayment equals or exceeds $100,000. For the avoidance of doubt, any Refund of Income Taxes for a Pre-Distribution Tax Period
received pursuant to a Final Determination, Adjustment Request, or other adjustment by a Tax Authority (but not an originally filed Income Tax Return), shall be governed by Section 2.2 and
Section 2.8(a). 
 Section 2.9 Carrybacks and Claims for Refund. 

(a) Organon hereby agrees that if a Tax Return of a member of the Organon Group for a Post-Distribution Tax Period reflects any Tax Attribute,
then the applicable member of the Organon Group shall elect to relinquish, waive, or otherwise forgo the right to carry back any such Tax Attribute to a Pre-Distribution Tax Period with respect to a Joint
Return to the extent permissible under applicable law. 
 (b) If, notwithstanding the provisions of Section 2.9(a),
Organon is required to carry back a Tax Attribute, Merck shall promptly remit to Organon any Tax Benefit that the Merck Group actually realizes with respect to any such carryback on an “as and when” realized basis; provided,
however, that Merck shall not be required to remit such Tax Benefit with respect to any such carryback arising from Taxes or Tax Attributes allocated to a member of the Merck Group under this Agreement. 

  
 11 

 (c) If Organon has a Tax Attribute that must be carried back to any Pre-Distribution Tax Period, Organon shall notify Merck in writing that such Tax Attribute must be carried back. Such notification shall include a description in reasonable detail of the basis for any Tax Benefit
and the amount thereof, and a certification by an appropriate officer of Organon setting forth Organon’s belief (together with supporting analysis prepared by a Tax Advisor) that the Tax treatment of such Tax Attribute is more likely than not
correct. 
 (d) If Merck pays any amount to Organon under Section 2.9(b) and, as a result of a subsequent Final
Determination, a Tax Benefit that gave rise to such payment is subsequently disallowed, Merck shall notify Organon of the amount to be repaid to Merck, and Organon shall then repay such amount to Merck, together with any interest, fines, additions
to Tax, penalties, or any additional amounts imposed by a Tax Authority relating thereto. 
 (e) For purposes of this Agreement, a Tax
Benefit shall be deemed to have been realized at the time any actual Refund of Taxes is received or applied against other cash Taxes due, or at the time of filing a Tax Return (including a Tax Return relating to estimated Taxes) on which a Tax Item
is applied in reduction of cash Taxes that would otherwise be payable. 
 (f) For the avoidance of doubt, and notwithstanding
Section 2.8, Merck shall be entitled to the Refund of any Taxes or other Tax Benefit attributable to the use or carryback of any Tax Attribute that was generated on a Joint Return or Merck Separate Return for any Tax Period
that includes the Distribution Date or any Post-Distribution Tax Period; provided, however, that Merck shall not be entitled to the refund of any Taxes or other Tax Benefit attributable to any Taxes or Tax Attributes allocated to the
Organon Group under this Agreement. 
 Section 2.10 Allocation of Tax Attributes. 

(a) Merck shall in good faith advise Organon in writing of the amount, if any, of any Tax Attributes, which Merck determines, in its sole and
absolute discretion, shall be allocated and apportioned to the Organon Group under applicable law, provided that this Section 2.10 shall not be construed as obligating Merck to undertake any such determination. Organon and
all members of the Organon Group shall prepare all Tax Returns in accordance with such written notice. Organon agrees that it shall not dispute Merck’s allocation or apportionment of Tax Attributes. Organon may request that Merck undertake a
determination of the portion, if any, of any particular Tax Attribute to be allocated or apportioned to the Organon Group under applicable law; to the extent that Merck determines, in its sole and absolute discretion, not to undertake such
determination, or does not otherwise advise Organon of its intention to undertake such determination within twenty (20) business days of the receipt of such request, Organon shall be permitted to undertake such determination at its own cost and
expense and shall notify Merck of its determination, which determination shall not be binding upon Merck. 
 (b) The allocations made under
this Section 2.10 shall be revised by Merck, in its sole discretion, to reflect each subsequent Final Determination or change in law that affects such allocations or the amounts of Tax Attributes available for allocation.

 (c) Notwithstanding anything to the contrary contained herein, for the avoidance of doubt, the Parties agree that Merck is not warranting
or guaranteeing the amount of any such Tax Attributes and Merck shall not be liable to any member of the Organon Group for any failure of any determination under this Section 2.10 to be accurate under applicable law. 

  
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 Section 2.11 Certain Allocations Under Other Transaction Documents. 

The Parties acknowledge and agree that, notwithstanding anything contained herein to the contrary, this Agreement, including Article II
hereof, shall not apply with respect to any and all Taxes and Tax Attributes that are expressly allocated pursuant to any Transaction Document (other than this Agreement) that is shown on Exhibit F, for which such other Transaction Document shall
govern. 
 ARTICLE III 

TAX RETURNS, TAX CONTESTS AND OTHER ADMINISTRATIVE MATTERS 

Section 3.1 Responsibility of Preparing Tax Returns. 

(a) Merck shall timely prepare any Joint Returns or Merck Separate Returns that are required or permitted to be filed for any Tax Period. If
Organon is responsible for filing any such Tax Return under Section 3.3(a) Merck shall, subject to Section 3.1(c), promptly deliver such prepared Tax Return to Organon no later than thirty
(30) days in advance of the applicable filing deadline. 
 (b) Organon shall timely prepare any Organon Separate Returns that are
required or permitted to be filed for any Tax Period. If Merck is responsible for filing any such Tax Return under Section 3.3(a), Organon shall, subject to Section 3.1(c), promptly deliver such
prepared Tax Return to Merck no later than thirty (30) days in advance of the applicable filing deadline. 
 (c) To the extent that any
Tax Return described in Section 3.1(a) or 3.1(b) directly relates to matters for which another Party may have an indemnification obligation to the Tax Return Preparer, that may give rise to a Refund to which that
other Party would be entitled under this Agreement, or that may give rise to a Foreign Tax Redetermination for that other Party, the Tax Return Preparer shall (i) prepare the relevant portions of the Tax Return on a basis consistent with past
practice, except (A) as required by applicable law or to correct any clear error, (B) as a result of changes or elections made on any Joint Return that do not relate primarily to the Organon Group or (C) as mutually agreed by the
Parties; (ii) notify the other Party of any such portions not prepared on a basis consistent with past practice; (iii) provide the other Party a reasonable opportunity to review the relevant portions of the Tax Return; (iv) consider
in good faith any reasonable comments made by the other Party; and (v) use commercially reasonable efforts to incorporate, in the portion of such Tax Return related to the other Party’s potential indemnification obligation (or Refund
entitlement), any reasonable comments made by the other Party relating to the Tax Return Preparer’s compliance with clause (i). The Parties shall attempt in good faith to resolve any issues arising out of the review of any such Tax Return.

 (d) The Tax treatment of the Transactions reported on any Tax Return shall be consistent with the treatment thereof in the Tax
Opinions/Rulings, taking into account the jurisdiction in which such Tax Returns are filed, unless the Tax Return Preparer reasonably determines, upon advice from counsel, that there is no reasonable basis for such Tax treatment. Such treatment
reported on any Tax Return for which Organon is the Tax Return Preparer shall be consistent with that on any Tax Return filed or to be filed by Merck or any member of the Merck Group or caused or to be caused to be filed by Merck, unless Organon
reasonably determines, upon advice from counsel, that there is no reasonable basis for such Tax treatment. In the event that a Party shall reasonably determine, upon advice from counsel, that there is no reasonable basis for the Tax treatment
described in either of the preceding two sentences, such Party shall notify the other Party twenty (20) business days prior to filing the relevant Tax Return and the Parties shall attempt in good faith to agree on the manner in which the
relevant portion of the Transactions shall be reported. 

  
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 Section 3.2 Information Packages. 

Each Party (i) shall provide to the other Party (in the format reasonably determined by the other Party) all information and assistance
requested by the other Party as reasonably necessary to prepare any Tax Return described in Section 3.1(a) or Section 3.1(b) on a timely basis consistent with the current practices of the Merck
Group in preparing Tax Returns, but in no event later than thirty (30) days following receipt of such request from the other Party, and (ii) in so providing such information and assistance, shall use any systems and third-party service
providers as are consistent with the current practices of the Merck Group in preparing Tax Returns. 
 Section 3.3 Filing of Tax
Returns and Payment of Taxes. 
 (a) Each Party shall execute and timely file each Tax Return that it is responsible for filing under
applicable law and shall timely pay to the relevant Tax Authority any amount shown as due on each such Tax Return. The obligation to make payments pursuant to this Section 3.3(a) shall not affect a Party’s right, if
any, to receive payments under Section 3.3(b) or otherwise be indemnified with respect to that Tax liability. 

(b) In addition to its obligations under Section 3.1(c), the relevant Tax Return Preparer shall, no later than five
(5) business days before the due date (including extensions) of any Tax Return described in Section 3.1(a) or Section 3.1(b), notify the other Party of any amount (or any portion of any such
amount) shown as due on that Tax Return for which the other Party must indemnify the Tax Return Preparer under this Agreement, as well as any amount with respect to which the other Party may have a Foreign Tax Redetermination obligation. If the
other Party must indemnify the Tax Return Preparer, the other Party shall pay such amount to the Tax Return Preparer no later than the due date (including extensions) of the relevant Tax Return. If the Tax Return Preparer must indemnify the other
Party for any amount with respect to a Tax Return for which the other Party has the filing obligation under Section 3.3(a), the Tax Return Preparer shall pay such amount to the other Party no later than the due date
(including extensions) of the relevant Tax Return. A failure by an Indemnitee to give notice as provided in this Section 3.3(b) shall not relieve the Indemnifying Party’s indemnification obligations under this
Agreement, except to the extent that the Indemnifying Party shall have been actually prejudiced by such failure. 
 (c) Any Tax Indemnity
Payment required to be made by the Indemnifying Party pursuant to this Section 3.3 shall be reduced by any corresponding Tax Benefit. For the avoidance of doubt, a Tax Benefit payment is treated as corresponding to a Tax
Indemnity Payment to the extent the Tax Benefit realized is directly attributable to the same Tax Item (or adjustment of such Tax Item pursuant to a Final Determination) that gave rise to the Tax Indemnity Payment. 

(d) All indemnification payments under this Agreement shall be made by Merck directly to Organon and by Organon directly to Merck; provided,
however, that if the Parties mutually agree with respect to any such indemnification payment, any member of the Merck Group, on the one hand, may make such indemnification payment to any member of the Organon Group, on the other hand, and vice
versa. All indemnification payments shall be treated in the manner described in Section 5.4. 
 (e) Each Party
shall, in its sole discretion, be permitted to file any Adjustment Request for any Tax Returns that it is responsible for preparing pursuant to Section 3.1(a) or Section 3.1(b): provided that,
unless otherwise required by a Final Determination, no such Adjustment Request shall be filed for any Tax Period that begins on or before the Distribution Date (including any Straddle Period) to the extent that any such Adjustment Request
(i) reasonably would be expected to materially adversely impact the other Party or (ii) is inconsistent with past practice, in each case, without the prior written consent of the other Party, which consent shall not be unreasonably
withheld, conditioned, or delayed. 

  
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 Section 3.4 Tax Contests. 

(a) Notice. Merck or Organon, as applicable, shall, within fifteen (15) business days of becoming aware of any Tax Contest that
reasonably could be expected to cause the other Party to have an indemnification obligation or Refund under this Agreement or a Foreign Tax Redetermination obligation, notify the other Party of such Tax Contest and thereafter promptly forward or
make available to the Indemnifying Party copies of notices and communications relating to the relevant portions of such Tax Contest. A failure by an Indemnitee to give notice as provided in this Section 3.4(a) (or to
promptly forward any such notices or communications) shall not relieve the Indemnifying Party’s indemnification obligations under this Agreement, except to the extent that the Indemnifying Party shall have been actually prejudiced by such
failure. 
 (b) Control of Tax Contests. 

(i) Separate Returns. In the case of any Tax Contest with respect to any Tax Item reported on a Separate Return, the Party having
liability for the Tax pursuant to Article II hereof shall have exclusive control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to
Section 3.4(b)(iii) and Section 3.4(b)(iv) below. Notwithstanding the foregoing, Merck shall be entitled to control exclusively the conduct and settlement of any Tax Contest with respect to any Non-Income Tax Item reported on a Merck Separate Return if Merck notifies Organon that (notwithstanding the rights and obligations of the Parties under this Agreement) Merck waives its right to indemnity with
respect to such Non-Income Tax Item and agrees to pay (and indemnify Organon against) any Taxes resulting from such Tax Contest. Organon shall be entitled to control exclusively the conduct and settlement of
any Tax Contest with respect to any Non-Income Tax Item reported on an Organon Separate Return if Organon notifies Merck that (notwithstanding the rights and obligations of the Parties under this Agreement)
Organon waives its right to indemnity with respect to such Non-Income Tax Item and agrees to pay (and indemnify Merck against) any Taxes resulting from such Tax Contest. 

(ii) Joint Returns. In the case of any Tax Contest with respect to any Tax Item reported on a Joint Return, Merck shall have exclusive
control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to Section 3.4(b)(iii) and Section 3.4(b)(iv) below. 

(iii) Settlement Rights. The Controlling Party shall have the sole right to contest, litigate, compromise and settle any Tax Contest
without obtaining the prior consent of the Non-Controlling Party. Unless waived by the Parties in writing, in connection with any potential adjustment in a Tax Contest as a result of which adjustment the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment to the Controlling Party under this Agreement: (i) the Controlling Party shall keep the Non-Controlling Party informed in a timely manner of all actions taken or proposed to be taken by the Controlling Party with respect to such potential adjustment in such Tax Contest; (ii) the Controlling Party
shall timely provide the Non-Controlling Party copies of any written materials relating to such potential adjustment in such Tax Contest received from any Tax Authority; (iii) the Controlling Party shall
timely provide the Non-Controlling Party with copies of any correspondence or filings submitted to any Tax Authority or judicial authority in connection with such potential adjustment in such Tax Contest;
(iv) the Controlling Party shall consult with the Non-Controlling Party and offer the Non-Controlling Party a reasonable opportunity to comment before submitting
any written materials prepared or furnished in connection with such potential adjustment in such Tax Contest; and (v) the Controlling Party shall defend such Tax Contest diligently and in good
faith. The failure of the Controlling Party to take any action specified in the preceding sentence with respect to the Non-Controlling Party shall not
relieve the Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement except to the extent that the
Non-Controlling Party was actually harmed by such failure, 

  
 15 

 
and in no event shall such failure relieve the Non-Controlling Party from any other liability or obligation which it may have to the Controlling Party. In
the case of any Tax Contest described in this Section 3.4(b)(iii) or Section 3.4(b)(iv), “Controlling Party” means the Party entitled to control the Tax Contest under
Section 3.4(b)(i) or Section 3.4(b)(ii), as the case may be, and “Non-Controlling Party” means the other Party. 

(iv) Tax Contest Participation. Unless waived by the Parties in writing, the Controlling Party shall provide the Non-Controlling Party with written notice reasonably in advance of, and the Non-Controlling Party shall have the right to attend, any formally scheduled meetings with Tax
Authorities or hearings or proceedings before any judicial authorities in connection with any potential adjustment in a Tax Contest pursuant to which the Non-Controlling Party may reasonably be expected to
become liable to make any indemnification payment to the Controlling Party under this Agreement. The failure of the Controlling Party to provide any notice specified in this Section 3.4(b)(iv) to the Non-Controlling Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement except to
the extent that the Non-Controlling Party was actually harmed by such failure, and in no event shall such failure relieve the Non-Controlling Party from any other
liability or obligation which it may have to the Controlling Party. 
 (c) Power of Attorney. Each member of the Organon Group shall
execute and deliver to Merck (or such member of the Merck Group as Merck shall designate) any power of attorney or other similar document reasonably requested by Merck (or such designee) in connection with any Tax Contest (as to which Merck is the
Controlling Party) described in this Section 3.4. Each member of the Merck Group shall execute and deliver to Organon (or such member of the Organon Group as Organon shall designate) any power of attorney or other similar
document requested by Organon (or such designee) in connection with any Tax Contest (as to which Organon is the Controlling Party) described in this Section 3.4. 

Section 3.5 Reliance by Merck. If any member of the Organon Group supplies information to a member of the Merck Group in
connection with a Tax liability and an officer of a member of the Merck Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the written request of such member of the Merck
Group identifying the information being so relied upon, the chief financial officer of Organon (or any officer or Vice President of Tax of Organon as designated by the chief financial officer of Organon) shall certify in writing that to his or her
knowledge (based upon consultation with appropriate employees) the information so supplied is accurate and complete. 
 Section 3.6
Reliance by Organon. 
 Subject to Section 2.10(c), if any member of the Merck Group supplies information to a
member of the Organon Group in connection with a Tax liability and an officer of a member of the Organon Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the written
request of such member of the Organon Group identifying the information being so relied upon, the chief financial officer of Merck (or any officer or Vice President of Tax of Merck as designated by the chief financial officer of Merck) shall certify
in writing that to his or her knowledge (based upon consultation with appropriate employees) the information so supplied is accurate and complete. 

  
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 Section 3.7 Tax Incentives. 

Merck or Organon, as applicable, shall (i) provide written notice to the other Party describing any action that could reasonably be
expected to cause the other Party to lose all or any part of, or otherwise affect the terms and conditions of, any Tax Incentive granted to the other Party by any Tax Authority, or that could reasonably be expected to cause the other Party to repay
any Tax Incentive previously granted by any Tax Authority and (ii) shall consult with the other Party regarding any such proposed action reasonably in advance of taking such action. 

Section 3.8 Expenses and Applicability. 

After the Distribution, each Party shall bear its own expenses in the course of any Tax Contest, other than expenses included in the definition
of Tax-Related Losses. 
 ARTICLE IV 

TAX-FREE STATUS 

Section 4.1 Tax Opinions/Rulings and Representation Letters. 

Each of Merck and Organon hereby represents and agrees that: (i) it has or will read the Representation Letters deliverable to the
applicable Tax Advisors in connection with the rendering of the Tax Opinions prior to the date submitted and has or will read any Representation Letter (including any Ruling Request) delivered to any Tax Authority in connection with obtaining any
Tax Ruling prior to the date of this Agreement, and (ii) subject to any qualifications therein, all information contained in such Representation Letters and Ruling Requests that concerns or relates to such Party or its Affiliates will be true,
correct, and complete. 
 Section 4.2 Restrictions on Organon. 

(a) Organon agrees that it will not take or fail to take, or permit any member of the Organon Group to take or fail to take, any action where
such action or failure to act would be inconsistent with or cause to be untrue any material, information, covenant, or representation in any Representation Letters or Tax Opinions/Rulings. Organon agrees that it will not take or fail to take, or
permit any member of the Organon Group to take or fail to take, any action which prevents or could reasonably be expected to prevent: (i) the Tax-Free Status, or (ii) any transaction contemplated by
the Separation Agreement which is intended by the Parties to be tax-free (including, but not limited to, those transactions which any Tax Authority has ruled qualify for
tax-free treatment in a Tax Ruling) from so qualifying, including, in the case of Organon, issuing any Organon Capital Stock that would prevent the Distribution from qualifying as a tax-free distribution within the meaning of Section 355 of the Code. 
 (b) Organon agrees that, from
the date hereof until the first day after the two-year anniversary of the Distribution Date, it will: (i) maintain its status as a company engaged in the Active Trade or Business for purposes of
Section 355(b)(2) of the Code, (ii) not engage in any transaction that would result in it ceasing to be a company engaged in the Active Trade or Business for purposes of Section 355(b)(2) of the Code, (iii) cause each Organon
Affiliate whose Active Trade or Business is relied upon in the Tax Opinions/Rulings for purposes of qualifying a transaction as tax-free pursuant to Section 355 of the Code or other Tax Law to maintain
its status as a company engaged in such Active Trade or Business for purposes of Code Section 355(b)(2) of the Code and any such other applicable Tax Law, and (iv) not engage in any transaction or permit any Organon Affiliate to engage in
any transaction that would result in an Organon Affiliate described in clause (iii) hereof ceasing to be a company engaged in the relevant Active Trade or Business for purposes of Section 355(b)(2) or such other applicable Tax Law, in each
case, taking into account Section 355(b)(3) of the Code for purposes of clauses (i) through (iv) hereof. 
 (c) Organon agrees
that, from the date hereof until the first day after the two-year anniversary of the Distribution Date, it shall not (and shall not cause or permit of its Affiliates to), in a single transaction or series of
transactions: 

  
 17 

 (i) enter into any Proposed Acquisition Transaction or, to the extent Organon has the right
to prohibit any Proposed Acquisition Transaction, permit any Proposed Acquisition Transaction to occur (whether by (A) redeeming rights under a shareholder rights plan, (B) finding a tender offer to be a “permitted offer” under
any such plan or otherwise causing any such plan to be inapplicable or neutralized with respect to any Proposed Acquisition Transaction, (C) approving any Proposed Acquisition Transaction, whether for purposes of Section 203 of the DGCL or
any similar corporate statute, any “fair price” or other provision of Organon’s charter or bylaws or otherwise, or (D) amending its certificate of incorporation to declassify its Board of Directors or approving any such
amendment, or otherwise), 
 (ii) except as provided in Exhibit G, liquidate, partially liquidate, merge or consolidate with any other
Person, 
 (iii) sell or transfer (other than sales or transfers of inventory in the ordinary course of business) all or substantially all
of the assets that were transferred to Organon or an Organon Affiliate as part of the Separation or sell or transfer (or cause or permit to be transferred) twenty-five percent (25%) or more of the gross assets of any Active Trade or Business or
twenty-five percent (25%) or more of the consolidated gross assets of Organon and its Affiliates (such percentages to be measured based on fair market value as of the Distribution Date), 

(iv) enter into, permit, approve of or fail to take any action within its control to prevent any transactions relating to any Organon Capital
Stock, or rights to acquire Organon Capital Stock, including any redemption or other repurchase (directly or through an Affiliate) of Organon Capital Stock, other than (A) issuances of stock that satisfy the requirements of Safe Harbor VIII
(relating to acquisitions in connection with a Person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury
Regulations Section 1.355-7(d), or (B) such transactions that are undertaken in a manner consistent with (I) Section 4.05(l)(b) of Revenue Procedure
96-30 (as in effect prior to the amendment of such Revenue Procedure by Revenue Procedure 2003-48 and prior to being superseded by Revenue Procedure 2017-52) or (II) the Representation Letters, 
 (v) amend its certificate of incorporation (or other
organizational documents), or take any other action, whether through a stockholder vote or otherwise, affecting the voting rights of Organon Capital Stock (including, without limitation, through the conversion of one class of Organon Capital Stock
into another class of Organon Capital Stock), or 
 (vi) take any other action or actions (including any action or transaction that would be
reasonably likely to be inconsistent with any representation made in the Representation Letters or the Tax Opinions/Rulings) which in the aggregate (and taking into account any other transactions described in this subparagraph (c)) would be
reasonably likely to have the effect of causing or permitting one or more Persons (whether or not acting in concert) to acquire directly or indirectly stock representing a Fifty-Percent or Greater Interest in Organon or otherwise jeopardize the Tax-Free Status unless, prior to taking any such action set forth in the foregoing clauses (i) through (vi), (A) Organon shall have requested that Merck obtain a Tax Ruling in accordance with
Section 4.4(b) and Section 4.4(d) of this Agreement to the effect that such transaction will not affect the Tax-Free Status and Merck shall have received
such a Tax Ruling in form and substance reasonably satisfactory to Merck (and in determining whether a Tax Ruling is reasonably satisfactory, Merck may consider, among other factors, the appropriateness of any underlying assumptions and
management’s representations made in connection with such Tax Ruling), (B) Organon shall provide Merck with an Unqualified Tax Opinion in form and substance reasonably satisfactory to Merck (and in determining whether an opinion is reasonably
satisfactory, Merck may consider, among other factors, the appropriateness of any underlying assumptions and management’s representations if used as a basis for the opinion) or (C) Merck shall have waived the requirement to obtain such Tax
Ruling or Unqualified Tax Opinion. Notwithstanding the foregoing, for the avoidance of doubt, Organon shall be liable for any Tax actually incurred as a result of any action or failure to act described in Section 4.2(c)(ii)
through Section 4.2(c)(vi), as provided in Section 2.5 and Section 4.5. 

  
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 (d) Certain Issuances of Organon Capital Stock. If Organon proposes to enter into any
Section 4.2(d) Acquisition Transaction or, to the extent Organon has the right to prohibit any Section 4.2(d) Acquisition Transaction, proposes to permit any Section 4.2(d) Acquisition Transaction to occur, in each case, during the
period from the date hereof until the first day after the two-year anniversary of the Distribution Date, Organon shall provide Merck, no later than ten (10) days following the signing of any written
agreement with respect to the Section 4.2(d) Acquisition Transaction, with a written description of such transaction (including the type and amount of Organon Capital Stock to be issued in such transaction) and a certificate of the Board of
Directors of Organon to the effect that the Section 4.2(d) Acquisition Transaction is not a Proposed Acquisition Transaction or any other transaction to which the requirements of Section 4.2(c) apply (a “Board
Certificate”). 
 (e) Organon Internal Restructuring. Organon shall provide written notice to Merck describing any internal
restructuring (including by making or revoking any election under Treasury Regulations Section 301.7701-3) involving a member of the Organon Group or any contribution, sale or other transfer of any of the
assets directly or indirectly contributed to Organon as described in the Separation Agreement, to Organon or any of its Affiliates, apart from sales in the ordinary course of business proposed to be taken during or with respect to any Tax Period (or
portion thereof) beginning after the Distribution Date and ending on or prior to the two-year anniversary of such Distribution Date, and shall consult with Merck regarding any such proposed actions reasonably
in advance of taking any such proposed actions and shall consider in good faith any comments from Merck relating thereto. 
 (f) Gain
Recognition Agreements. Organon shall not (i) take any action (including, but not limited to, the sale or disposition of any stock, securities, or other assets), (ii) permit any member of the Organon Group to take any such action,
(iii) fail to take any action, or (iv) permit any member of the Organon Group to fail to take any action, in each case that would cause Merck or any member of the Merck Group to recognize gain under any Gain Recognition Agreement. In
addition, Organon shall file, and shall cause any member of the Organon Group to file, any Gain Recognition Agreement reasonably requested by Merck which Gain Recognition Agreement is determined by Merck to be necessary so as to (i) allow for
or preserve the tax-free or tax-deferred nature, in whole or part, of any Transaction, or (ii) avoid Merck or any member of the Merck Group recognizing gain under
any Gain Recognition Agreement. 
 Section 4.3 Restrictions on Merck. Merck agrees that it will not take or fail to take, or
permit any member of the Merck Group to take or fail to take, any action where such action or failure to act would be inconsistent with or cause to be untrue any material, information, covenant or representation in any Representation Letters or Tax
Opinions/Rulings, and where any such action or failure to act would give rise to Taxes for which Merck is not already liable under this Agreement. Merck agrees that it will not take or fail to take, or permit any member of the Merck Group to take or
fail to take, any action which prevents or could reasonably be expected to prevent: (i) the Tax-Free Status, or (ii) any transaction contemplated by the Separation Agreement which is intended by the
Parties to be tax-free (including, but not limited to, those transactions which any Tax Authority has ruled qualify for tax-free treatment in a Tax Ruling) from so
qualifying, including, in the case of Merck, issuing any Merck Capital Stock that would prevent the Distribution from qualifying as a tax-free distribution within the meaning of Section 355 of the Code,
in each case where any such action or failure to act would give rise to Taxes for which Merck is not already liable under this Agreement. 

  
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 Section 4.4 Procedures Regarding Opinions and Rulings. 

(a) If Organon notifies Merck that it desires to take one of the actions described in clauses (i) through (vi) of
Section 4.2(c) (a “Notified Action”), Merck and Organon shall reasonably cooperate to attempt to obtain the Tax Ruling or Unqualified Tax Opinion referred to in
Section 4.2(c), unless Merck shall have waived the requirement to obtain such Tax Ruling or Unqualified Tax Opinion. 

(b) Merck agrees that at the reasonable request of Organon pursuant to Section 4.2(c), Merck shall cooperate with
Organon and use its reasonable best efforts to seek to obtain, as expeditiously as possible, a Tax Ruling from the IRS or other applicable Tax Authority or an Unqualified Tax Opinion for the purpose of permitting Organon to take the Notified Action.
Further, in no event shall Merck be required to file any Ruling Request under this Section 4.4(b) unless Organon represents that: (i) it has read the Ruling Request, and (ii) all information and representations,
if any, relating to any member of the Organon Group, contained in the Ruling Request documents are (subject to any qualifications therein) true, correct, and complete. Organon shall reimburse Merck for all reasonable costs and expenses incurred by
the Merck Group in obtaining a Tax Ruling or Unqualified Tax Opinion requested by Organon within ten (10) business days after receiving an invoice from Merck therefor. 

(c) Merck shall have the right to obtain a Tax Ruling or any Tax opinion (including an Unqualified Tax Opinion) at any time in its sole and
absolute discretion. If Merck determines to obtain a Tax Ruling or an Unqualified Tax Opinion, Organon shall (and shall cause each Affiliate of Organon to) cooperate with Merck and take any and all actions reasonably requested by Merck in connection
with obtaining the Tax Ruling or Unqualified Tax Opinion (including, without limitation, by making any representation or covenant or providing any materials or information requested by the IRS or Tax Advisor). Merck shall reimburse Organon for all
reasonable costs and expenses incurred by the Organon Group in obtaining a Tax Ruling or Unqualified Tax Opinion requested by Merck within ten (10) business days after receiving an invoice from Organon therefor. 

(d) Organon hereby agrees that Merck shall have sole and exclusive control over the process of obtaining any Tax Ruling, and that only Merck
shall apply for a Tax Ruling. In connection with obtaining a Tax Ruling pursuant to Section 4.4(b): (i) Merck shall keep Organon informed in a timely manner of all material actions taken or proposed to be taken by Merck in
connection therewith; (ii) Merck shall (A) reasonably in advance of the submission of any Ruling Request documents provide Organon with a draft copy thereof, (B) reasonably consider Organon’s comments on such draft copy, and
(C) provide Organon with a final copy; and (iii) Merck shall provide Organon with notice reasonably in advance of, and Organon shall have the right to attend, any formally scheduled meetings with the IRS (subject to the approval of the
IRS) that relate to such Tax Ruling. Neither Organon nor any Affiliates of Organon shall seek any guidance from the IRS or any other Tax Authority (whether written, verbal or otherwise) at any time concerning the Transactions. 

Section 4.5 Liability for Tax-Related Losses. 

(a) Notwithstanding anything in this Agreement or the Separation Agreement to the contrary, subject to
Section 4.5(c), Organon shall be responsible for, and shall indemnify and hold harmless Merck and each of its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent
(100%) of any Tax-Related Losses that are attributable to or result from any one or more of the following: (i) the acquisition (other than pursuant to the Transactions or any other disposition of Organon
Stock by Merck) of all or a portion of the stock and/or assets of Organon and/or its subsidiaries by any means whatsoever by any Person, (ii) any negotiations, understandings, agreements or 

  
 20 

 
arrangements by Organon with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or otherwise, option grants, capital
contributions or acquisitions, or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly stock of Organon representing a Fifty-Percent
or Greater Interest therein, (iii) any action or failure to act by Organon or a member of the Organon Group after the Distribution (including, without limitation, any amendment to Organon’s certificate of incorporation (or other
organizational documents), whether through a stockholder vote or otherwise) affecting the voting rights of Organon stock (including, without limitation, through the conversion of one class of Organon Capital Stock into another class of Organon
Capital Stock), (iv) any act or failure to act by Organon or any Organon Affiliate described in Section 4.2 (regardless whether such act or failure to act is covered by a Tax Ruling, Unqualified Tax Opinion or waiver
described in clause (A), (B) or (C) of Section 4.2(c) or a Board Certificate described in Section 4.2(d)) or (v) any breach by Organon of its agreement and representations set forth in
Section 4.1. 
 (b) Notwithstanding anything in this Agreement or the Separation Agreement to the contrary, subject
to Section 4.5(c), Merck shall be responsible for, and shall indemnify and hold harmless Organon and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%)
of any Tax-Related Losses that are attributable to, or result from any one or more of the following: (i) the acquisition (other than pursuant to the Transactions) of all or a portion of the stock and/or
assets of Merck and/or its subsidiaries by any means whatsoever by any Person, (ii) any negotiations, understandings, agreements or arrangements by Merck with respect to transactions or events (including, without limitation, stock issuances,
pursuant to the exercise of stock options or otherwise, option grants, capital contributions or acquisitions, or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or more
Persons acquire directly or indirectly stock of Merck representing a Fifty-Percent or Greater Interest therein, (iii) any action or failure to act by Merck or a member of the Merck Group after the Distribution (including, without limitation,
any amendment to Merck’s certificate of incorporation (or other organizational documents), whether through a stockholder vote or otherwise) affecting the voting rights of Merck stock (including, without limitation, through the conversion of one
class of Merck Capital Stock into another class of Merck Capital Stock), (iv) any act or failure to act by Merck or any Merck Affiliate described in Section 4.3, or (v) any breach by Merck of its agreement and
representations set forth in Section 4.1. 
 (c) To the extent that any
Tax-Related Loss is subject to indemnity under both Section 4.5(a) and Section 4.5(b), responsibility for such
Tax-Related Loss shall be shared by Merck and Organon according to relative fault. 
 (d) If the
indemnification obligations resulting from the failure of the Transactions to have Tax-Free Status are not otherwise addressed by any of the provisions in this Section 4.5, any Tax-Related Losses resulting therefrom shall be allocated to (i) Merck in an amount equal to such Tax-Related Loss multiplied by the Merck Liability Percentage and
(ii) to Organon in an amount equal to such Tax-Related Loss multiplied by the Organon Liability Percentage. 

(e) Notwithstanding anything in Section 4.5(b) or Section 4.5(c)(i) or any other provision
of this Agreement or the Separation Agreement to the contrary, with respect to (I) any Tax-Related Loss resulting from Section 355(e) of the Code (other than as a result of an acquisition of a
Fifty-Percent or Greater Interest in Merck, or any predecessor or successor thereto, within the meaning of Treasury Regulation Section 1.355-8) and (II) any other
Tax-Related Loss resulting (for the absence of doubt, in whole or in part) from an acquisition (other than pursuant to the Transactions) after the Distribution of any stock or assets of Organon (or any Organon
Affiliate or predecessor or successor thereto, within the meaning of Treasury Regulation Section 1.355-8) by any means whatsoever by any Person or any action or failure to act by Organon affecting the
voting rights of Organon stock, Organon shall be responsible for, and shall indemnify and hold harmless Merck and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of such Tax-Related Loss. 

  
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 (f) Notwithstanding anything in Section 4.5(a) or
Section 4.5(c)(ii) or any other provision of this Agreement or the Separation Agreement to the contrary, with respect to (I) any Tax-Related Loss resulting from
Section 355(e) of the Code (other than as a result of an acquisition of a Fifty-Percent or Greater Interest in Organon or any predecessor or successor thereto, within the meaning of Treasury Regulation
Section 1.355-8) and (II) any other Tax-Related Loss resulting (for the absence of doubt, in whole or in part) from an acquisition (other than pursuant to the
Transactions) after the Distribution of any stock or assets of Merck (or any Merck Affiliate or predecessor or successor thereto, within the meaning of Treasury Regulation Section 1.355-8) by any means
whatsoever by any Person or any action or failure to act by Merck affecting the voting rights of Merck stock, Merck shall be responsible for, and shall indemnify and hold harmless Organon and its Affiliates and each of their -respective officers,
directors and employees from and against, one hundred percent (100%) of such Tax-Related Loss. 

Section 4.6 Reporting, Protective Section 336(e) Election. 

(a) Merck and Organon shall (i) timely file any appropriate information and statements (including as required by Section 6045B of the
Code and Section 1.355-5 and, to the extent applicable, Section 1.368-3 of the Treasury Regulations) to report each step of the Transactions as qualifying for
its Tax-Free Status and (ii) absent a change of law or an applicable Final Determination otherwise, not take any position on any Tax Return that is inconsistent with such qualification. 

(b) Each Party covenants and agrees that it will make a protective election under Section 336(e) of the Code (a
“Section 336(e) Election”) with respect to the Transactions, and that: 
 (i) Merck, Organon and their
respective Affiliates shall cooperate in making the Section 336(e) Election, including by filing any statements, amending any Tax Returns or taking such other actions reasonably necessary to carry out the Section 336(e) Election; 

(ii) if the Distribution fails to qualify (in whole or in part) for Tax-Free Status and Organon or any
member of the Organon Group realizes an increase in Tax basis as a result of the Section 336(e) Election (the “Section 336(e) Tax Basis”), then the cash Tax savings realized by Organon and each member of the
Organon Group as a result of the Section 336(e) Tax Basis shall be shared between Merck and Organon in the same proportion as the Taxes giving rise to the Section 336(e) Tax Basis were borne by Merck and Organon (after giving effect to the
indemnification obligations in this Agreement); and 
 (iii) to the extent the Section 336(e) Election becomes effective, each Party
agrees not to take any position (and to cause each of its Affiliates not to take any position) that is inconsistent with the Section 336(e) Election on any Tax Return, in connection with any Tax Contest or otherwise, except as may be required
by a Final Determination. 
 ARTICLE V 

PROCEDURAL MATTERS 

Section 5.1 Cooperation. 

(a) Each Party shall cooperate with reasonable requests from the other Party in matters covered by this Agreement, including in connection with
the preparation and filing of Tax Returns, the calculation of Taxes, the determination of the proper financial accounting treatment of Tax Items and the conduct and settlement of Tax Contests. Such cooperation shall include: 

  
 22 

 (i) retaining until the expiration of the relevant statute of limitations (including
extensions) records, documents, accounting data, computer data and other information (“Records”) necessary for the preparation, filing, review, audit, or defense of all Tax Returns relevant to an obligation, right, or liability of
either Party under this Agreement; 
 (ii) providing the other Party reasonable access to Records and to its personnel (ensuring their
cooperation) and premises during normal business hours to the extent relevant to an obligation, right or liability of the other Party under this Agreement or otherwise reasonably required by the other Party to complete Tax Returns or to compute the
amount of any payment contemplated by this Agreement; and 
 (iii) notifying the other Party prior to disposing of any relevant Records and
affording the other Party the opportunity to take possession or make copies of such Records at its discretion. 
 (b) Notwithstanding any
other provision of this Agreement or any other agreement, (i) neither Merck nor any Merck Affiliate shall be required to provide Organon or any Organon Affiliate or any other Person access to or copies of any information or procedures
(including the proceedings of any Tax Contest) other than information or procedures that relate to Organon, the business or assets of Organon or any Organon Affiliate and (ii) in no event shall Merck or any Merck Affiliate be required to
provide Organon, any Organon Affiliate or any other Person access to or copies of any information if such action could reasonably be expected to result in the waiver of any Privilege. In addition, in the event that Merck determines that the
provision of any information to Organon or any Organon Affiliate could be commercially detrimental, violate any law or agreement or waive any Privilege, the Parties shall use reasonable best efforts to permit compliance with its obligations under
this Agreement in a manner that avoids any such harm or consequence. 
 (c) No member of the Organon Group shall provide access to,
copies of, or otherwise disclose to any Person any documentation relating to Taxes allocated under this Agreement existing as of the date hereof to which Privilege may reasonably be asserted without the prior written consent of Merck, such consent
not to be unreasonably withheld. 
 Section 5.2 Interest. 

Any payments required pursuant to this Agreement that are not made within the time period specified in this Agreement shall bear interest from
the end of that period. Interest required to be paid pursuant to this Agreement shall, unless otherwise specified, be computed at the rate and in the manner provided in the Code for interest on underpayments and overpayments, as applicable, for the
relevant period. 
 Section 5.3 Indemnification Claims and Payments. 

(a) An Indemnitee shall be entitled to make a claim for payment with respect to Taxes under this Agreement when the Indemnitee determines that
it is entitled to such payment and is able to calculate with reasonably accuracy the amount of such payment. Except as otherwise provided in Section 3.3(b), the Indemnitee shall provide to the Indemnifying Party notice of
such claim within sixty (60) days of the first date on which it so becomes entitled to make such claim. Such notice shall include a description of such claim and a detailed calculation of the amount claimed. 

(b) Except as otherwise provided in Section 3.3(b), the Indemnifying Party shall make the claimed payment to the
Indemnitee within thirty (30) days after receiving such notice, unless the Indemnifying Party reasonably disputes its liability for, or the amount of, such payment. 

  
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 (c) A failure by an Indemnitee to give notice as provided in
Section 3.3(b) or 5.3(a) shall not relieve the Indemnifying Party’s indemnification obligations under this Agreement, except to the extent that the Indemnifying Party shall have been actually prejudiced by such
failure. 
 (d) Nothing in this Section 5.3 shall prejudice a Party’s right to receive payments pursuant to
Section 3.3(b). 
 Section 5.4 Treatment of Indemnity Payments. 

In the absence of any change in Tax treatment under the Code or other applicable Tax Law and except as provided in
Section 5.2, any payments made by a Party under this Agreement shall be reported for Tax purposes by the payor and the recipient as distributions or capital contributions, as appropriate, occurring immediately before the
Distribution (but only to the extent that the payment does not relate to a Tax allocated to the payor in accordance with Section 1552 of the Code or the Treasury Regulations thereunder or Treasury Regulation
Section 1.1502-33(d) (or under corresponding principles of other applicable Tax Laws)) or as payments of an assumed or retained liability. 

Section 5.5 Tax Gross-Up. 

If (i) notwithstanding the manner in which any payment under this Agreement is reported, there is a Final Determination with respect to
the Tax liability of a Party as a result of its receipt of a payment pursuant to this Agreement or (ii) any deduction or withholding is required by law to be made from any payment (other than an interest payment) under this Agreement, such
payment shall be appropriately adjusted so that the amount of such payment, reduced by the amount of all Income Taxes payable with respect to the receipt thereof or the amount of all deduction or withholding required by law with respect to such
payment, as applicable (in each case, taking into account all correlative Tax Benefits resulting from the payment of such Income Taxes), shall equal the amount of the payment which the Party receiving such payment would otherwise be entitled to
receive pursuant to this Agreement. 
 Section 5.6 Dispute Resolution. 

 (a) Discussion. The Parties will try, and they will cause their respective Group members to try, to resolve in an amicable
manner all disagreements and misunderstandings connected with their respective rights and obligations under this Agreement, including any amendments hereto. In furtherance thereof, in the event of any dispute or disagreement (a
“Dispute”) between any member of the Merck Group and any member of the Organon Group as to the interpretation of any provision of this Agreement or the performance of obligations hereunder, the Tax departments of the Parties shall
negotiate in good faith to resolve the Dispute. 
 (b) Escalation. If such good faith negotiations do not resolve the Dispute, then
the matter, upon written request of either Party, will be referred for resolution to representatives of the Parties at a senior level of management of the Parties pursuant to the procedures set forth in Article VII of the Separation Agreement. 

(c) Referral to Tax Advisor. If the Parties are not able to resolve the Dispute through the escalation process referred to above, then
the matter will be referred to a Tax Advisor acceptable to each of the Parties to act as an arbitrator in order to resolve the Dispute. In the event that the Parties are unable to agree upon a Tax Advisor within fifteen (15) business days
following the completion of the escalation process, the Parties shall each separately retain an independent, nationally recognized law or accounting firm (each, a “Preliminary Tax Advisor”), which Preliminary Tax Advisors shall
jointly select a Tax Advisor on behalf of the Parties to act as an arbitrator in order to resolve the Dispute. The Tax 

  
 24 

 
Advisor may, in its discretion, obtain the services of any third-party appraiser, accounting firm or consultant that the Tax Advisor deems necessary to assist it in resolving such disagreement.
The Tax Advisor shall furnish written notice to the Parties of its resolution of any such Dispute as soon as practical, but in any event no later than thirty (30) business days after its acceptance of the matter for resolution. Any such
resolution by the Tax Advisor will be conclusive and binding on the Parties. Following receipt of the Tax Advisor’s written notice to the Parties of its resolution of the Dispute, the Parties shall each take or cause to be taken any action
necessary to implement such resolution of the Tax Advisor. Each Party shall pay its own fees and expenses (including the fees and expenses of its representatives) incurred in connection with the referral of the matter to the Tax Advisor (and the
Preliminary Tax Advisors, if any). All fees and expenses of the Tax Advisor (and the Preliminary Tax Advisors, if any) in connection with such referral shall be shared equally by the Parties. 

(d) Injunctive Relief. Nothing in this Section 5.6 will prevent either Party from seeking injunctive relief if
any delay resulting from the efforts to resolve the Dispute through the process set forth above could result in serious and irreparable injury to either Party. Notwithstanding anything to the contrary in this Agreement, Merck and Organon are the
only members of their respective Group entitled to commence a Dispute resolution procedure under this Agreement, and each of Merck and Organon will cause its respective Group members not to commence any Dispute resolution procedure other than
through such party as provided in this Section 5.6. 
 ARTICLE VI 

MISCELLANEOUS 

Section 6.1 Termination. 

This Agreement may be terminated at any time prior to the Effective Time by and in the sole discretion of Merck without the approval of any
Person, including Organon. In the event of such termination, this Agreement shall become null and void and no Party, nor any of its directors, officers or employees, shall have any Liability of any kind to any Person by reason of this Agreement.
After the Effective Time, this Agreement may not be terminated except by an agreement in writing signed by a duly authorized officer of each of the Parties. 

Section 6.2 Counterparts; Entire Agreement; Corporate Power; Facsimile Signatures. 

(a) Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same
agreement. 
 (b) Entire Agreement. This Agreement and the exhibits, schedules and annexes hereto and thereto contain the entire
agreement between the Parties and their subsidiaries with respect to the subject matter hereof, supersede all previous agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter
and there are no agreements or understandings between the Parties or their subsidiaries other than those set forth or referred to herein or therein. 

(c) Corporate Power. Merck represents on behalf of itself and, to the extent applicable, each Merck subsidiary, and Organon represents
on behalf of itself and, to the extent applicable, each Organon subsidiary as follows: 
 (i) each such Person has the requisite corporate
or other power and authority and has taken all corporate or other action necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby and thereby; and 

  
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 (ii) this Agreement has been duly executed and delivered by it and constitutes a valid and
binding agreement of it enforceable in accordance with the terms thereof. 
 (d) Signatures and Delivery. Each Party acknowledges that
it and its subsidiaries and the other Party and its subsidiaries may execute this Agreement by manual, stamp or mechanical signature, and that delivery of an executed counterpart of a signature page to this Agreement (whether executed by manual,
stamp or mechanical signature) by facsimile or by email or other electronic delivery in portable document format (PDF) or other electronic format shall be effective as delivery of such executed counterpart of this Agreement. Each Party (including on
behalf of its subsidiaries) expressly adopts and confirms a stamp or mechanical signature (regardless of whether delivered in person, by mail, by courier, by facsimile or by email or other electronic delivery in portable document format (PDF) or
other electronic format) made in its name as if it were a manual signature delivered in person, agrees that it shall not assert that any such signature or delivery is not adequate to bind such Party or party to the same extent as if it were signed
manually and delivered in person and agrees that, at the reasonable request of the other Party at any time, it shall as promptly as reasonably practicable cause this Agreement to be manually executed (any such execution to be as of the date of the
initial date thereof) and delivered in person, by mail or by courier. 
 Section 6.3 Governing Law. 

This Agreement shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware, irrespective of the
choice of laws and principles of the State of Delaware, as to all matters, including matters of validity, construction, effect, enforceability, performance and remedies. 

Section 6.4 Assignability. 

This Agreement shall be binding upon and inure to the benefit of the Parties and the parties thereto, respectively, and their respective
successors and permitted assigns. 
 Section 6.5 Third Party Beneficiaries. 

Except for the indemnification rights under this Agreement of an Indemnitee under this Agreement, (a) the provisions of this Agreement are
solely for the benefit of the Parties and their respective subsidiaries and their permitted successors and assigns, and are not intended to confer upon any Person except the Parties and their respective subsidiaries, and their permitted successors
and assigns, any rights or remedies hereunder; and (b) there are no other third-party beneficiaries of this Agreement and this Agreement shall not provide any other Third Party with any remedy, claim, Liability, reimbursement, claim of action
or other right in excess of those existing without reference to this Agreement. 
 Section 6.6 Notices. 

All notices, and to the extent applicable and unless otherwise provided therein, under this Agreement shall be in writing and shall be given or
made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by e-mail (followed by delivery of an original via overnight courier service) or by
registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice): 

  
 26 

 If to Merck: 

Merck & Co., Inc. 
 2000
Galloping Hill Road 
 Kenilworth, New Jersey 07033 

Attention: Sunil Patel, SVP, Business Development 

E-mail: sunil_patel@merck.com 

With a copy to: 

Merck & Co., Inc. 
 2000
Galloping Hill Road 
 Kenilworth, New Jersey 07033 

E-mail: office.secretary@merck.com 

If to Organon: 

Organon & Co. 
 30 Hudson
Street, 33rd Floor 
 Jersey City, New Jersey 07302 

Attention: Office of Secretary 
 E-mail: secretaryoffice@organon.com 
 Either Party may, by notice to the other Party, change the address
to which such notices are to be given. 
 Section 6.7 Severability. 

In the event that any one or more of the terms or provisions of this Agreement or the application thereof to any Person or circumstance is
determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement, or the application of such term
or provision to Persons or circumstances or in jurisdictions other than those as to which it has been determined to be invalid, illegal or unenforceable, and the Parties shall (and shall cause their applicable subsidiaries to) use their commercially
reasonable efforts to substitute one or more valid, legal and enforceable terms or provisions into this Agreement which, insofar as practicable, implement the purposes and intent of the Parties. Any term or provision of this Agreement held invalid
or unenforceable only in part, degree or within certain jurisdictions shall remain in full force and effect to the extent not held invalid or unenforceable to the extent consistent with the intent of the parties as reflected by this Agreement. To
the extent permitted by applicable law, each party waives any term or provision of law which renders any term or provision of this Agreement to be invalid, illegal or unenforceable in any respect. 

Section 6.8 Force Majeure. 

No Party or other Person shall be deemed in default of this Agreement, unless otherwise expressly provided herein and without limiting the
generality of the provisions hereof, for failure to fulfill any obligation (other than a payment obligation) so long as and to the extent to which any delay or failure in the fulfillment of such obligations is prevented, frustrated, hindered or
delayed as a consequence of circumstances of Force Majeure. In the event of any such excused delay, the time for performance shall be extended for a period equal to the time lost by reason of the delay. A Party or other Person claiming the benefit
of this provision shall, as soon as reasonably practicable after the occurrence of any such event, (a) provide notice to the other Party or Parties of the nature and extent of any such Force Majeure condition; and (b) use commercially
reasonable efforts to remove any such causes and resume performance under this Agreement as soon as reasonably practicable. 

  
 27 

 Section 6.9 No Set-Off. 

Except as set forth in this Agreement or as otherwise mutually agreed to in writing by the Parties, neither Party nor any of its subsidiaries
shall have any right of set off or other similar rights with respect to (a) any amounts received pursuant to this Agreement; or (b) any other amounts claimed to be owed to the other Party or any of its subsidiaries arising out of this
Agreement. 
 Section 6.10 Headings. 

The Article, Section and Paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. 
 Section 6.11 Survival of Covenants. 

Except as expressly set forth in this Agreement, the covenants and other agreements contained in this Agreement, and liability for the breach
of any obligations contained herein or therein, shall survive the Effective Time and shall remain in full force and effect thereafter. 

Section 6.12 Subsidiaries and Employees. 

Merck shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be
performed by a Merck subsidiary (including the employees thereof) and Organon shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by an Organon subsidiary
(including the employees thereof). 
 Section 6.13 Waivers. 

Waiver by either Party or any of its subsidiaries of any default by the other Party or any of its subsidiaries of any provision of this
Agreement shall not be deemed a waiver by the waiving Party or Person of any subsequent or other default, nor shall it prejudice the rights of the waiving Party or Person. No provisions of this Agreement shall be deemed waived unless such waiver is
in writing and signed by the authorized representative of the Party or relevant subsidiary against whom it is sought to be enforced. No failure or delay of any Party (or any of its subsidiaries) in exercising any right or remedy under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, or any course of conduct, preclude any other or further exercise
thereof or the exercise of any other right or power. 
 Section 6.14 Amendments. 

No provisions of this Agreement shall be deemed amended, supplemented or modified unless such amendment, supplement or modification is in
writing and signed by an authorized representative of both Parties or their relevant subsidiaries, as the case may be. 

  
 28 

 Section 6.15 Interpretation. 

Words in the singular shall be deemed to include the plural and vice versa and words of one gender shall be deemed to include the other genders
as the context requires. The terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole (including all of the Schedules and
Exhibits hereto and thereto) and not to any particular provision of this Agreement. Article, Section, Exhibit and Schedule references are to the Articles, Sections, Exhibits, and Schedules to this Agreement unless otherwise specified. Unless
otherwise stated, all references to any agreement shall be deemed to include the exhibits, schedules and annexes to such agreement. The word “including” and words of similar import when used in this Agreement shall mean “including,
without limitation,” unless the context otherwise requires or unless otherwise specified. The word “or” shall not be exclusive. Unless otherwise specified in a particular case, the word “days” refers to calendar days.
References herein to this Agreement or any Transaction Document shall be deemed to refer to this Agreement or such Transaction Document as of the date on which it is executed and as it may be amended, modified or supplemented thereafter, unless
otherwise specified. References to the performance, discharge or fulfillment of any Liability in accordance with its terms shall have meaning only to the extent such Liability has terms. If the Liability does not have terms, the reference shall mean
performance, discharge or fulfillment of such Liability. 
 Section 6.16 Specific Performance. 

In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Party or
Parties who are or are to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief (on an interim or permanent basis) of its rights under this Agreement, in addition to any and all other rights and
remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that the remedies at law for any breach or threatened breach, including monetary damages, may be inadequate compensation for any loss and that any
defense in any Proceeding for specific performance that a remedy at law would be adequate is waived. 
 Section 6.17 Mutual
Drafting. 
 This Agreement shall be deemed to be the joint work product of the Parties and any rule of construction that a document
shall be interpreted or construed against a drafter of such document shall not be applicable. 
 Section 6.18 Confidentiality.

 Each Party hereby acknowledges that confidential information of such Party or its subsidiaries may be exposed to employees and agents
of the other Party or its subsidiaries as a result of the activities contemplated by this Agreement. Each Party agrees, on behalf of itself and its subsidiaries, that such Party’s obligations with respect to information and data of the other
Party or its subsidiaries shall be governed by the Separation Agreement. 

  
 29 

 IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the day and
year first written above. 
  

			
	MERCK & CO., INC.
		
	By:	 	 /s/ Robert M. Davis

	Name: Robert M. Davis
	Title: President
	
	ORGANON & CO.
		
	By:	 	 /s/ Kevin Ali

	Name: Kevin Ali
	Title: Chief Executive OfficerEX-10.2

 Exhibit 10.2 

EMPLOYEE MATTERS AGREEMENT 

BY AND BETWEEN 

MERCK & CO., INC. 

AND 
 ORGANON &
CO. 
 DATED AS OF JUNE 2, 2021 

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	 ARTICLE I DEFINITIONS
	  	 	1	 
		
	 Section 1.01 Defined Terms
	  	 	1	 
		
	 ARTICLE II GENERAL PRINCIPLES
	  	 	8	 
		
	 Section 2.01 Allocation of Liabilities
	  	 	8	 
	 Section 2.02 Employment with Organon
	  	 	10	 
	 Section 2.03 Establishment of Organon Plans
	  	 	12	 
	 Section 2.04 Post-Distribution Organon Employees
	  	 	13	 
	 Section 2.05 Collective Bargaining
	  	 	14	 
		
	 ARTICLE III U.S. QUALIFIED AND NON-QUALIFIED RETIREMENT
PLANS
	  	 	14	 
		
	 Section 3.01 Pension Plan
	  	 	14	 
	 Section 3.02 Savings Plan
	  	 	15	 
	 Section 3.03 Supplemental Pension Plan
	  	 	16	 
	 Section 3.04 Deferred Compensation Plan
	  	 	16	 
	 Section 3.05 Failure to Notify of Employment Termination
	  	 	17	 
		
	 ARTICLE IV NON-U.S. RETIREMENT PLANS
	  	 	17	 
		
	 Section 4.01 Establishment of Non-U.S. Retirement
Plans and Transfers of Assets and Liabilities
	  	 	17	 
		
	 ARTICLE V WELFARE AND FRINGE BENEFIT PLANS
	  	 	19	 
		
	 Section 5.01 Health and Welfare Plans.
	  	 	19	 
	 Section 5.02 COBRA
	  	 	22	 
	 Section 5.03 Vacation, Holidays and Leaves of Absence
	  	 	22	 
	 Section 5.04 Severance and Unemployment Compensation
	  	 	23	 
	 Section 5.05 Workers’ Compensation
	  	 	23	 
		
	 ARTICLE VI EQUITY, INCENTIVE, AND DIRECTOR AND EXECUTIVE COMPENSATION PROGRAMS
	  	 	23	 
		
	 Section 6.01 Equity Incentive Programs
	  	 	23	 
	 Section 6.02 Annual Bonus
	  	 	27	 
	 Section 6.03 Merck Deferred Stock Units
	  	 	28	 
	 Section 6.04 Directors’ Deferred Compensation Plan
	  	 	28	 
		
	 ARTICLE VII POST-DISTRIBUTION COVENANTS
	  	 	29	 
		
	 Section 7.01 Non-Hire;
Non-Solicit
	  	 	29	 
		
	 ARTICLE VIII TAXES
	  	 	29	 
		
	 Section 8.01 Reporting, Withholding and Deductions
	  	 	29	 
		
	 ARTICLE IX MISCELLANEOUS
	  	 	30	 
		
	 Section 9.01 Transfer of Records and Information
	  	 	30	 
	 Section 9.02 Cooperation
	  	 	31	 
	 Section 9.03 Employee Agreements
	  	 	31	 

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	Page	 
	 Section 9.04 Recoupment Assets
	  	 	31	 
	 Section 9.05 Compliance
	  	 	31	 
	 Section 9.06 Preservation of Rights
	  	 	31	 
	 Section 9.07 Reimbursement
	  	 	31	 
	 Section 9.08 Not a Change in Control
	  	 	32	 
	 Section 9.09 Incorporation by Reference
	  	 	32	 
	 Section 9.10 Limitation on Enforcement
	  	 	32	 
	 Section 9.11 Further Assurances and Consents
	  	 	32	 
	 Section 9.12 Third Party Consent
	  	 	33	 
	 Section 9.13 Effect if Distribution Does Not Occur
	  	 	33	 
	 Section 9.14 Disputes
	  	 	33	 
		
	 Schedule 6.01(d) - Non-U.S. Equity Adjustment
Exceptions
	  			

  
 ii 

 This EMPLOYEE MATTERS AGREEMENT dated as of June 2, 2021, is by and between
Merck & Co., Inc., a New Jersey corporation (“Merck”) and Organon & Co., a Delaware corporation (“Organon”) (each a “Party” and together, the “Parties”). 

RECITALS: 
 WHEREAS, the
board of directors of Merck has determined that it is appropriate and advisable to separate the Organon Business from the Merck Business (the “Spin-Off”); 

WHEREAS, to achieve the foregoing, the Parties have executed a Separation and Distribution Agreement (the “Separation and Distribution
Agreement”), which provides for, among other things, distribution, on a pro rata basis, to holders of the outstanding Merck Common Shares on the Record Date of all of the outstanding shares of Organon Common Stock, and the execution and
delivery of this Agreement and certain other agreements to facilitate and provide for the foregoing, in each case subject to the terms and conditions set forth therein; 

WHEREAS, the Employees of the Organon Business are currently or were previously employed by the Merck Group and are expected to or have
previously become Employees of the Organon Group in connection with the Spin-Off; and 
 WHEREAS,
this Agreement describes the principal employment, compensation and employee benefit plan arrangements between the Parties in connection with the Spin-Off. 

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, the Parties hereby agree as
follows: 
 AGREEMENT 

ARTICLE I 
 DEFINITIONS

 Section 1.01    Defined Terms. Capitalized terms used but not defined herein shall
have the meanings ascribed to such terms in the Separation and Distribution Agreement. The following capitalized terms as used in this Agreement shall have the meaning set forth below unless otherwise specified herein: 

“Adjusted Merck Award” means a Merck Option, Merck PSU Award, or Merck RSU Award, as adjusted in accordance with
Section 6.01(a). 
 “Adjusted Merck Phantom Share” means a Merck Phantom Share, as adjusted in
accordance with Section 3.04(c). 
 “Adjusted Organon Stock Value” means the product obtained by
multiplying (i) the Organon Price by (ii) the Distribution Ratio. 

  
 1 

 “Affiliate” means any corporation, partnership, limited liability company,
or entity directly or indirectly controlled by the entity in question. 
 “Agreement” means this Employee Matters Agreement
and each of the Schedules hereto. 
 “Applicable Closing Date” has the meaning set forth in
Section 4.01(a). 
 “Benefit Plan” means any (i) “employee benefit plan,” as defined in
ERISA Section 3(3) (whether or not such plan is subject to ERISA); and (ii) employment, compensation, severance, salary continuation, bonus, thirteenth month, incentive, retirement, thrift, superannuation, savings, pension, workers’
compensation, termination benefit (including termination notice requirements), termination indemnity, other indemnification, supplemental unemployment benefit, redundancy pay, profit sharing, deferred compensation, stock ownership, stock purchase,
stock option, stock appreciation right, restricted stock, “phantom” stock, performance share unit, restricted stock unit, other stock-based incentive, change in control, paid time off, perquisite, fringe benefit, vacation, disability,
life, or other insurance, death benefit, hospitalization, medical, or other compensatory or benefit plan, program, fund, agreement, arrangement, or policy of any kind (whether written or oral, qualified or nonqualified, funded or unfunded, foreign
or domestic, currently effective or terminated), and any trust, escrow or similar agreement related thereto, whether or not funded, excluding any plan, program, fund, agreement, arrangement, or policy (other than for workers’ compensation
Liabilities) that is mandated by and maintained solely pursuant to applicable Law. 
 “COBRA” means the U.S. Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended. 
 “Code” means the U.S. Internal Revenue Code of 1986, as amended.

 “Core Benefits” means retirement, separation pay, paid time off, medical (excluding retiree medical), dental, vision,
life, short-term and long-term disability plans or coverage. 
 “Core Benefit Plans” means Benefit Plans offering any of
the Core Benefits. 
 “Core Merck Health and Welfare Plan” means a Health and Welfare Plan sponsored by, maintained by, or
contributed to by the Merck Group offering any of the Core Benefits. 
 “Core Non-U.S.
Organon Benefit Plan” means an Organon Benefit Plan established, maintained, or contributed to by the Organon Group that is primarily for the benefit of Employees or Former Employees who work primarily outside of the United States which
offers any of the Core Benefits. 
 “Core Organon Health and Welfare Plans” means a Health and Welfare Plan sponsored by,
maintained by, or contributed to by the Organon Group which offers any of the Core Benefits. 
 “Employee” means an
employee of the Merck Group or the Organon Group, as applicable, including any employee absent from work on account of long-term disability or workers’ compensation leave (in each case, unless treated as a separated employee for

  
 2 

 
employment purposes), vacation, jury duty, funeral leave, personal leave, sickness, short-term disability, military leave, family leave, pay continuation leave, or other approved leave of absence
or for whom an obligation to recall, rehire or otherwise return to employment exists under a contractual obligation or Law. 

“Employee Agreement” means any employment contract, whether written or unwritten, between a member of the Merck Group and an
Employee or Former Employee, including any standard form employee agreement customarily signed by certain Employees of the Merck Group and any other form of employment agreement, employment letter or notice with respect to the terms of employment
between a member of the Merck Group and an Employee or Former Employee signed or otherwise effective under applicable local Law. The term Employee Agreement also includes any cash retention agreement. 

“Employee Recoupment Asset” means an employer’s right to repayment from an employee in respect of a tax equalization
payment, sign-on bonus payment, relocation expense payment, tuition payment, reimbursement, loan, or other similar item, including any agreement related thereto. 

“Employment Tax” means withholding, payroll, social security, workers compensation, unemployment, disability and any similar
tax imposed by any Tax Authority, and any interest, penalties, additions to tax or additional amounts with respect to the foregoing imposed on any taxpayer or consolidated, combined or unitary group of taxpayers. 

“ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended. 

“Former Employee” means any individual whose employment with the Merck Group terminated on or prior to the Distribution Date,
excluding any employee absent from work immediately prior to the Distribution Date on account of long-term disability or workers’ compensation leave (in each case, to the extent not treated as a separated employee for employment purposes),
vacation, jury duty, funeral leave, personal leave, sickness, short-term disability, military leave, family leave, pay continuation leave, or other approved leave of absence or for whom an obligation to recall, rehire or otherwise return to
employment exists under a contractual obligation or Law. 
 “Health and Welfare Plan” means any Benefit Plan established or
maintained to provide, through the purchase of insurance or otherwise, medical, dental, prescription, vision, short-term disability, long-term disability, death benefits, life insurance, accidental death and dismemberment insurance, business travel
accident insurance, employee assistance program, group legal services, wellness, cafeteria (including premium payment, health care flexible spending account, and dependent care flexible spending account components), travel reimbursement,
transportation, vacation benefits, apprenticeship or other training programs, day care centers, or prepaid legal services benefits, including any “employee welfare benefit plan” (as defined in ERISA Section 3(1)) that is not a
severance plan. 
 “Incurred Claim” means a Liability related to services or benefits provided under a Benefit Plan, and
shall be deemed to be incurred: (i) with respect to medical, dental, vision, and 

  
 3 

 
prescription drug benefits, upon the rendering of services giving rise to such Liability; (ii) with respect to death benefits, life insurance, accidental death and dismemberment insurance,
and business travel accident insurance, upon the occurrence of the event giving rise to such Liability; (iii) with respect to disability benefits, upon the date of disability, as determined by the disability benefit insurance carrier or claim
administrator, giving rise to such Liability; (iv) with respect to a period of continuous hospitalization, upon the date of admission to the hospital; and (v) with respect to tuition reimbursement or adoption assistance, upon completion of
the requirements for such reimbursement or assistance, whichever is applicable. 
 “Local Closing Transaction” means the
local closing transaction involving a Deferred Organon Local Business. 
 “Merck” has the meaning set forth in the
Preamble. 
 “Merck Benefit Plan” means a Benefit Plan sponsored by, maintained by, or contributed to by the Merck Group.

 “Merck Board” means the Merck board of directors. 

“Merck Change of Control” has the meaning set forth in Section 6.01(b). 

“Merck Compensation & Benefits Committee” means the compensation and benefits committee of the Merck
Board. 
 “Merck Conversion Ratio” means the quotient obtained by dividing (i) the Merck Pre-Spin Value by (ii) the Merck Post-Spin Value. 
 “Merck DCP” means the
Merck & Co., Inc. Deferral Program. 
 “Merck Deferred Stock Unit” means a deferred unit (a.k.a. a phantom share)
credited under a non-employee director’s Merck Common Stock account under the Merck Directors’ DCP. 

“Merck Directors’ DCP” means the Merck & Co., Inc. Plan for Deferred Payment of Directors’ Compensation.

 “Merck Group” means Merck and its Affiliates (excluding, after the Distribution, any member of the Organon Group). 

“Merck Health and Welfare Plan” means a Health and Welfare Plan sponsored by, maintained by, or contributed to by the Merck
Group. 
 “Merck Pension Plan” means the Merck U.S. Pension Plan. 

“Merck Phantom Share” means a Merck common-stock-denominated investment pursuant to the Merck DCP. 

  
 4 

 “Merck Pre-Spin Value” means the
price per share of Merck Common Stock trading “regular-way” as reported on the NYSE at the close on the Distribution Date. 

“Merck Post-Spin Value” means the volume weighted average trading price per share of Merck Common Stock on the NYSE on the
trading day immediately following the Distribution Date, as reported by Bloomberg. 
 “Merck Retained Employee” means any
Employee other than an Organon Employee. 
 “Merck Retiree Health Care Plan” means the Merck Retiree Medical Plan. 

“Merck Savings Plan ” means the Merck US Savings Plan. 

“Merck SERP” means the MSD Supplemental Retirement Plan. 

“Merck Separation Plan” means the Merck U.S. Separation Benefits Plan. 

“Merck Stock Programs” means, collectively, (i) the Merck 2007 Incentive Stock Plan, (ii) the Merck & Co.,
Inc. 2010 Incentive Stock Plan, (iii) the Merck & Co., Inc. 2019 Incentive Stock Plan and (iv) any similar prior Merck plans and all sub-plans or equity plans related to any of the
foregoing, together with any incentive compensation program or arrangement that governs the terms of equity-based incentive awards assumed by the Merck Group in connection with a corporate transaction and that is maintained by the Merck Group
immediately prior to the Distribution Date, and any sub-plans established under those programs. 

“Non-U.S. Merck Benefit Plan” means a Merck Benefit Plan established, maintained, or
contributed to by the Merck Group that is primarily for the benefit of Employees or Former Employees who work primarily outside of the United States. 

“Non-U.S. Organon Benefit Plan” means an Organon Benefit Plan established,
maintained, or contributed to by the Organon Group that is primarily for the benefit of Employees or Former Employees who work primarily outside of the United States. 

“Non-U.S. Organon Employee” means an Organon Employee who works primarily outside of
the United States. 
 “Non-U.S. Health and Welfare Plan” means a Health and Welfare
Plan established, maintained, or contributed to by the Merck Group or the Organon Group, as applicable, that is primarily for the benefit of Employees (including Former Employees, as appropriate) who work primarily outside of the United States. 

“Organon” has the meaning set forth in the Preamble. 

“Organon Award” means an Organon Option, Organon PSU Award, or Organon RSU Award granted pursuant to
Section 6.01. 
 “Organon Benefit Plan” means each Benefit Plan sponsored by, maintained by, or
contributed to by the Organon Group, including, following the consummation of a Local Closing Transaction, each Benefit Plan sponsored by, maintained by, or contributed to by the applicable Deferred Organon Local Business. 

  
 5 

 “Organon Board” means the Organon board of directors. 

“Organon Change of Control” has the meaning set forth in Section 6.01(b). 

“Organon Conversion Ratio” means the quotient obtained by dividing (i) the Merck
Pre-Spin Value by (ii) the Adjusted Organon Stock Value. 
 “Organon DCP”
means the Organon & Co. U.S. Non-Qualified Savings Plan. 
 “Organon
Employee” means any Employee who is (i) employed by the Organon Group as of the Distribution Date, or (ii) a Post-Distribution Organon Employee. 

“Organon Equity Plan” means the Organon & Co. 2021 Incentive Stock Plan. 

“Organon Group” means Organon and its Affiliates. 

“Organon Health and Welfare Plan” means a Health and Welfare Plan sponsored by, maintained by, or contributed to by the
Organon Group. 
 “Organon Price” means the volume weighted average trading price per share of Organon Common Stock on the
NYSE on the trading day immediately following the Distribution Date, as reported by Bloomberg. 
 “Organon Retiree
Liability” means that portion of the aggregate incremental cost of providing early retirement subsidies, service crediting bridges, and retiree healthcare benefits to Transferred Employees under the Merck Pension Plan, the Merck SERP and
the Merck Retiree Health Care Plan, as described in Sections 3.01, 3.03 and 5.01(d) hereof, that is attributable to future service, with such aggregate incremental cost as determined based on reasonable estimates in the discretion of the actuaries
designated by Merck to calculate such amounts. 
 “Organon Savings Plan” means the Organon U.S. Savings Plan 

“Option” means (i) when immediately preceded by “Merck,” an option to purchase one or more Merck Common Shares
granted under a Merck Stock Program and outstanding immediately prior to the Distribution Date (whether or not then vested or exercisable); (ii) when immediately preceded by “Adjusted Merck,” an option to purchase one or more Merck Common
Shares adjusted in accordance with Section 6.01; and (iii) when immediately preceded by “Organon,” an option to purchase one or more shares of Organon Common Stock granted by Organon in accordance with
Section 6.01. 
 “Parties” has the meaning set forth in the Preamble. 

“Post-Distribution Organon Employee” means each Employee named as a Post-Distribution Organon Employee on a record maintained
by Merck, which includes designated secondees from the Merck Group to the Organon Group and those Employees transferring only 

  
 6 

 
upon a Local Closing Transaction if employed in connection with a Deferred Organon Local Business, including any Employee hired on or after the Distribution Date to the extent such Employee is
primarily related to a Deferred Organon Local Business or is hired to replace any terminated or departing Employee who would have otherwise been a Post-Distribution Organon Employee. 

“PSU Award” means (i) when immediately preceded by “Merck,” a performance share unit award granted pursuant to
a Merck Stock Program and outstanding immediately prior to the Distribution Date; (ii) when immediately preceded by “Adjusted Merck,” a performance share unit award granted pursuant to a Merck Stock Program adjusted in accordance with
Section 6.01; and (iii) when immediately preceded by “Organon,” a performance share unit award granted by Organon in accordance with Section 6.01. 

“Regular Trading Hours” means the period beginning at 9:30 A.M. New York City time and ending 4:00 P.M. New York City time.

 “RSU Award” means (i) when immediately preceded by “Merck,” a restricted stock unit award granted
pursuant to a Merck Stock Program and outstanding immediately prior to the Distribution Date; (ii) when immediately preceded by “Adjusted Merck,” a restricted stock unit award granted pursuant to a Merck Stock Program adjusted in
accordance with Section 6.01 or Section 6.03; and (iii) when immediately preceded by “Organon,” a restricted stock unit award granted by Organon in accordance with
Section 6.01 or Section 6.03. 
 “Securities Act” means the U.S.
Securities Act of 1933, as amended. 
 “Separation and Distribution Agreement” has the meaning set forth in the recitals.

 “Trading Day” means the period of time during any given calendar day, commencing with the determination of the opening
price on the NYSE and ending with the determination of the closing price on the NYSE, in which trading and settlement in Merck Common Shares or Organon Common Stock, as applicable, is permitted on the NYSE. 

“Transfer Date” means the date on which such person first becomes employed by the Organon Group (whether prior to, on or
following the Distribution Date). 
 “Transferred Employee” has the meaning set forth in
Section 2.02(a)(i). 
 “Transferred Flexible Spending Account Balances” has the meaning set forth
in Section 5.01(c)(iii). 
 “Transferred Non-U.S.
Employee” means a Transferred Employee who works primarily outside of the United States. 
 “United States” means,
when used in a territorial sense, the fifty states of the United States of America and the District of Columbia, but does not, unless otherwise specifically provided, include Puerto Rico or any other territory of the United States. 

  
 7 

 “USERRA” means the Uniformed Services Employment and Reemployment Rights
Act of 1994, as amended. 
 ARTICLE II 

GENERAL PRINCIPLES 

Section 2.01    Allocation of Liabilities. 

(a)    Organon Liabilities. Except as expressly provided in this Agreement, the Separation and Distribution
Agreement or any Transaction Document, Organon hereby assumes (or retains) and agrees to pay, perform, fulfill, and discharge all Liabilities to the extent relating to, arising out of, or resulting from or with respect to: 

(i)    the employment (or termination of employment), including with respect to any statutory or other
Liabilities (whether those Liabilities are otherwise the legal responsibility of the Merck Group or the Organon Group) triggered by or in connection with the Spin-Off, of each Transferred Employee by the Merck
Group up to the applicable Transfer Date and by the Organon Group on and after the applicable Transfer Date (including, in each case, all Liabilities with respect to any such Organon Employee relating to, arising out of, or resulting from Employment
Taxes, Employee Agreements, any Merck Benefit Plan or any Organon Benefit Plan); provided, however, that, Organon shall assume only the Organon Retiree Liability with respect to any Liabilities relating to, arising out of, or resulting from the
Merck Retiree Health Care Plan, the Merck Pension Plan, the Merck SERP, the Merck DCP and Merck Directors’ DCP, which Liabilities shall otherwise be expressly retained by Merck; 

(ii)    the employment (or termination of employment) of each Former Employee to the extent such individual
was last employed prior to his or her termination of employment with a manufacturing plant or entity located outside of the United States and wholly transferring to the Organon Group in connection with the
Spin-Off (including all Liabilities to the extent relating to, arising out of, or resulting from Employment Taxes, Employee Agreements, any Merck Benefit Plan or any Organon Benefit Plan); 

(iii)    the retention of any individual who is, or was, an independent contractor, temporary employee,
temporary service worker, consultant, freelancer, agency employee, leased employee, on-call worker, incidental worker, or non-payroll worker or any other individual in
any other similar relationship to the extent the services provided by any such individual were primarily related to the Organon Group or the Organon Business and such individual is identified to be transferred to the Organon Group in connection with
the Spin-Off; provided that, for the avoidance of doubt, this Agreement is not intended to, and does not, address any Liabilities in respect of the services provided by consulting firms, investment
advisory firms, valuation advisory firms, legal advisors or other third-party entities retained to provide advice with respect to or in connection with the Spin-Off; 

  
 8 

 (iv)    all Liabilities under any Organon Benefit Plan
established or adopted by any member of the Organon Group, regardless of whether established prior to, on or following the Distribution Date; and 

(v)    Liabilities and responsibilities expressly assumed or retained by Organon pursuant to this
Agreement. 
 (b)    Merck Liabilities. Except as expressly provided in this Agreement, the Separation and
Distribution Agreement or any Transaction Document, Merck hereby retains (or assumes) and agrees to pay, perform, fulfill, and discharge all Liabilities to the extent relating to, arising out of, or resulting from: 

(i)    the employment (or termination of employment) of each Merck Retained Employee by the Merck Group
prior to, on, or after the Distribution Date (including all Liabilities with respect to any such Merck Retained Employee to the extent relating to, arising out of, or resulting from Employment Taxes, Employee Agreements or any Merck Benefit Plan);

 (ii)    except as provided in Section 2.01(a)(ii) or (iv), the employment (or termination of
employment) of each Former Employee and each Organon Employee unless and until such Organon Employee becomes a Transferred Employee (including all Liabilities to the extent relating to, arising out of, or resulting from Employment Taxes, Employee
Agreements or any Merck Benefit Plan); 
 (iii)    the retention of any individual who is, or was, an
independent contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee, leased employee, on-call worker, incidental worker,
non-payroll worker or any other individual in any other similar relationship to the extent the services provided by any such individual were primarily related to the Merck Group or the Merck Business;
provided that, for the avoidance of doubt, this Agreement is not intended to, and does not, address any Liabilities in respect of the services provided by consulting firms, investment advisory firms, valuation advisory firms, legal advisors
or other third-party entities retained to provide advice with respect to or in connection with the Spin-Off; and 

(iv)    Liabilities and responsibilities expressly retained or assumed by Merck pursuant to this Agreement.

 (c)    Other Liabilities. To the extent that this Agreement does not cover particular Liabilities or
responsibilities that relate to, arise out of, or result from employment (or termination of employment), Employment Taxes, Employee Agreements or any Benefit Plan and the Parties later determine that they should be allocated in connection with the Spin-Off, such Liabilities and responsibilities shall be handled in a manner similar to the manner in which this Agreement handles comparable Liabilities and responsibilities, subject to the mutual agreement of the
Parties, as evidenced by the written consent of an authorized officer of each Party. 
 (d)    Labor Relations.
To the extent required by applicable Law or any contract or arrangement with a labor union, works council or similar employee organization, Organon 

  
 9 

 
shall provide notice, engage in consultation and take any similar action which may be required after the Distribution Date on its part in connection with the
Spin-Off and shall fully indemnify each member of the Merck Group against any Liabilities arising from its failure to comply with such requirements. 

Section 2.02    Employment with Organon. 

(a)    Employment Transfers. The Parties intend for Organon Employees to transfer to the Organon Group and shall use
their respective best efforts and cooperate with each other to effectuate this intent. 
 (i)    Except
as otherwise mutually agreed upon by the Parties, as of each Organon Employee’s Transfer Date, the Organon Group shall: (A) continue to employ (on a basis consistent with Section 2.02(b)) each Organon Employee
employed in a jurisdiction where employment continues automatically by operation of Law (and such individual does not object, where such right exists under applicable Law); (B) offer to employ (on a basis consistent with
Section 2.02(b)) each Organon Employee employed in a jurisdiction where employment does not continue automatically by operation of Law; and (C) offer to employ (on a basis consistent with
Section 2.02(b) or as otherwise required by applicable Law) each former Employee who would have been an Organon Employee had such former Employee been employed on the Distribution Date, and whose right to re-employment is protected by any applicable Law. Each Organon Employee who accepts an offer of employment with the Organon Group, or who continues employment with the Organon Group following his or her Transfer
Date automatically by operation of Law (and does not object where such right exists under applicable Law), as the case may be, will be referred to in this Agreement as a “Transferred Employee.” 

(ii)    The Merck Group may terminate the employment of any Organon Employee who does not become a
Transferred Employee as of his or her intended Transfer Date, or, if such Organon Employee cannot be terminated in accordance with applicable Law or otherwise, then the Merck Group may terminate any other Employee of the Merck Group whose employment
(in the sole judgment of Merck) is made redundant as a result of the continued retention of such Organon Employee. The Merck Group may also terminate the employment of any Organon Employee if retaining such Employee would constitute a violation of
applicable Laws or the Merck Code of Conduct. Organon will be responsible for, and will indemnify the Merck Group from and against, any Liabilities incurred or payments made (including any severance payments made) in connection with the termination
of an Organon Employee or any other Employee of the Merck Group pursuant to this Section 2.02(a)(ii) to the extent of any payment occurring on or after the Distribution Date. 

(b)    Compensation and Benefits. 

(i)    Except as expressly provided in this Agreement or in local Conveyance and Assumption Instruments, no
Transferred Employee shall participate in any Merck Benefit Plan following the later of (i) the Distribution Date; and (ii) his or her Transfer Date. 

  
 10 

 (ii)    Except as expressly provided in this Agreement,
as otherwise required by applicable Law or with respect to any Transferred Employee who experiences a change in primary country of employment as part of his or her transfer, from the applicable Transfer Date through December 31, 2022, the
Organon Group shall provide to each Transferred Employee (A) at least the same rate of base salary as provided to that Transferred Employee immediately prior to the later of the Distribution Date and his or her Transfer Date (or if greater, as
provided to that Transferred Employee pursuant to the terms of any Employee Agreement that becomes effective upon the consummation of or immediately following the Spin-Off), (B) at least the same cash
incentive compensation opportunities and long-term incentive compensation opportunities as provided to that Transferred Employee immediately prior to the later of the Distribution Date and his or her Transfer Date (or if greater, as provided to that
Transferred Employee pursuant to the terms of any Employee Agreement that becomes effective upon the consummation of or immediately following the Spin-Off), (C) Core Benefits under the Organon Benefit Plans
that are substantially comparable in the aggregate to benefits provided under the corresponding Merck Benefit Plans immediately prior to the earlier of the Distribution Date or the date as of which the comparable Organon Benefit Plan is established
or adopted by any member of the Organon Group (but, for the avoidance of doubt, Organon is not required to establish any particular types of plans (such as defined benefit pension plans) to satisfy this obligation), and (D) at least the same
separation pay and comparable post-termination continuation of Health and Welfare Benefits providing Core Benefits (excluding, for the avoidance of doubt, retiree healthcare and retiree life insurance benefits) as were provided to that Transferred
Employee immediately prior to the earlier of the Distribution Date or the date as of which the comparable Organon Health and Welfare Benefits is established or adopted by any member of the Organon Group (or if greater, as provided to that
Transferred Employee pursuant to the terms of any Employee Agreement that becomes effective upon the consummation of or immediately following the Spin-Off). Nothing in this Section 2.02(b)(ii) shall
prevent the Organon Group from terminating the employment of any Transferred Employee or adopting, amending or terminating any Organon Benefit Plan. 

(c)    Service Credit. Except as otherwise expressly provided in this Agreement or to the extent it would result in
a duplication of benefits, Organon and each Organon Benefit Plan shall, to the extent permitted in accordance with applicable Law, give each Transferred Employee credit for vesting, eligibility, and accrual purposes for all service with the Merck
Group (except for defined benefit pension plans and post-employment welfare benefits and, solely if a Transferred Employee receives severance benefits in connection with his or her termination of employment with the Merck Group, for purpose of
determining severance benefits under any Organon Benefit Plan that provides severance benefits) (other than as required by law)) and shall calculate such service as it would be calculated by Merck or under the corresponding Merck Benefit Plan as of
the applicable Transfer Date. 

  
 11 

 Section 2.03    Establishment of Organon Plans. 

(a)    Generally. 

(i)    U.S. On or prior to the Distribution Date, Organon shall adopt Core Benefit Plans (and
related trusts, if applicable, as determined by the Parties), with terms substantially comparable in the aggregate to those of the corresponding Merck Benefit Plans in the U.S., but excluding defined benefit pension plans, deferred compensation
plans and post-employment welfare benefit plans; provided, however, that Organon may limit participation in any Organon Benefit Plan to Transferred Employees who participated in the corresponding Merck Benefit Plan immediately prior to
the applicable Transfer Date. 
 (ii)    Non-U.S. (including
Puerto Rico). On or prior to the Distribution Date, the Organon Group shall, except as otherwise mutually agreed upon by the Parties, adopt Core Non-U.S. Organon Benefit Plans, with terms substantially
comparable in the aggregate to those of the corresponding Non-U.S. Merck Benefit Plans immediately prior to the Distribution Date; provided, however, that Organon may limit participation in any
such Core Non-U.S. Organon Benefit Plan to Non-U.S. Organon Employees who are Transferred Employees and who participated in the corresponding Non-U.S. Merck Benefit Plan. As described in Article IV, or as otherwise mutually agreed upon by the Parties from time to time, the Merck Group shall, or shall cause the applicable
Non-U.S. Merck Benefit Plan’s related trust to, transfer to the Organon Group or the relevant Core Non-U.S. Organon Benefit Plan’s related trust, trust Assets,
insurance reserves, and other Assets of each Non-U.S. Merck Benefit Plan. To the extent a Non-U.S. Merck Benefit Plan is not required to be funded by applicable Law or
is not voluntarily funded, there shall be no transfer of assets by the Non-U.S. Merck Benefit Plan or by the Merck Group. As described in Article IV, or as otherwise mutually agreed upon by the Parties
from time to time, the Organon Group shall, or shall cause the relevant Core Non-U.S. Organon Benefit Plan to, assume the Liabilities of the corresponding Non-U.S. Merck
Benefit Plan with respect to all benefits accrued under that Non-U.S. Merck Benefit Plan by Non-U.S. Organon Employees who are Transferred Employees. 

(b)    Plan Information and Operation. Merck shall provide Organon with information describing each Merck Benefit
Plan election made by a Transferred Employee that may have application following the applicable Transfer Date. Organon shall determine, in its sole discretion (and in compliance with Code Section 409A to the extent applicable), whether to
administer the Organon Benefit Plans using those elections or to require Transferred Employees to submit new elections with respect to the Organon Benefit Plans. Except as provided in this Agreement, the Distribution and the transfer of any
Employee’s employment to the Organon Group shall not cause a distribution from or payment of benefits under any Merck Benefit Plan. Each Party shall, upon reasonable request, provide the other Party and the other Party’s respective
Affiliates, agents, and vendors all information reasonably necessary to the other Party’s operation or administration of its Benefit Plans and to accommodate the transfer of benefits. 

  
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 Section 2.04    Post-Distribution Organon Employees. 

(a)    The following provisions shall apply to all Post-Distribution Organon Employees. During the period commencing on the
Distribution Date and ending on the applicable Transfer Date, Merck or its appropriate Affiliate shall manage the employment of each Post-Distribution Organon Employee consistently with its management of the employment of similar Merck Employees in
the ordinary course of business (including with respect to compensation, annual and other bonuses, and other compensation, subject to Sections 2.04(a)(iii)(E) and 6.02 below); provided that Merck and its Affiliates shall have no
obligation to make any equity grant or provide any other equity incentive to any Post-Distribution Organon Employee on or after the Distribution Date, and Organon shall have no obligation to Merck or any of its Affiliates in respect of any equity
grant or other equity incentive that is provided by Merck or its appropriate Affiliate to any Post-Distribution Organon Employee on or after the Distribution Date unless and except where the Parties have agreed, as evidenced by the written consent
of an authorized officer of each Party, otherwise. Organon shall be responsible for all cash compensation and benefits liabilities arising with respect to such Post-Distribution Organon Employee during such period pursuant to the terms of the
applicable Transaction Document. Merck shall until the time of the applicable Local Closing Transaction (or such other Transfer Date with respect to any other Post-Distribution Organon Employee): 

(i)    provide Organon or its appropriate Affiliate with notice of (A) any material amendment to the
Merck Code of Conduct to the extent applicable to the employment of a Post-Distribution Organon Employee or (B) the termination of any Post-Distribution Organon Employee due to a violation or potential violation of Law or the Merck Code of
Conduct, or otherwise pursuant to Section 2.02(a)(ii); 
 (ii)    provide
Organon or its appropriate Affiliate with at least 30 days’ advance written notice prior to (A) making any material substantive change to the Employee Agreement of a Post-Distribution Organon Employee unless such change is required by
applicable Law; (B) making any material change to the base salary of a Post-Distribution Organon Employee, other than an increase in the ordinary course of business, any change required by Law or any contract existing as of the Distribution
Date, or as otherwise approved by Organon; or (C) making any modification to a Merck Benefit Plan in which a Post-Distribution Organon Employee participates if such modification would result in a significant change in the cost of such plan to
the employer or the participant unless such change is required by applicable Law; and 
 (iii)    consult
with and request a recommendation from Organon or its appropriate Affiliate prior to (A) hiring any individual (other than in the ordinary course to replace any individual whose employment has terminated) who will be classified as an Organon
Employee unless such headcount addition was authorized prior to the Distribution Date, (B) terminating any Post-Distribution Organon Employee, except due to a violation of Law or the Merck Code of Conduct, or otherwise pursuant to Section
2.02(a)(ii), (C) promoting any Post-Distribution Organon Employee to a compensation and career band of 700 or higher (other than in the ordinary course to replace any individual whose employment has terminated) unless such promotion was
authorized prior to the Distribution Date, (D) demoting any Post-Distribution Organon Employee or 

  
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otherwise materially changing the role or responsibility of any Post-Distribution Organon Employee, or (E) establishing targets or goals for bonus and other incentive compensation awards
granted to Post-Distribution Organon Employees by Merck or any member of the Merck Group. Organon will be responsible for, and will indemnify the Merck Group from and against, any Liabilities incurred or payments made (including any severance
payments made) in connection with the termination of a Post-Distribution Organon Employee pursuant to this Section 2.04(a)(iii) to the extent of any amount owed on or after the Distribution Date in accordance with the terms of the applicable
Transaction Document. 
 (b)    Except as otherwise mutually agreed upon by the Parties (including in a Conveyance and
Assumption Instrument), if an Organon Employee’s transfer of employment to the Organon Group upon the consummation of a Local Closing Transaction or otherwise causes, at the time of such transfer, a forfeiture of awards granted under a Merck
Stock Program (or successor thereto), Merck shall not have any obligation, Liability or responsibility to such Organon Employee with respect to such forfeited awards, and Organon shall equitably compensate the affected Organon Employee for such
forfeited awards in a manner determined by Organon in its sole discretion. Merck shall inform Organon on a regular basis of any such forfeited awards. The foregoing sentence shall not preclude the Parties from making arrangements, if allowed by the
Merck Stock Program (or successor thereto) and applicable Law, to permit affected Organon Employees to continue to hold, after the Local Closing Transaction or other Transfer Date, awards granted under a Merck Stock Program (or successor thereto).

 Section 2.05    Collective Bargaining. Organon shall cause the appropriate member of the Organon Group to
assume all Liabilities arising under any collective bargaining agreement (including but not limited to any national, sector or local collective bargaining agreement), works council agreement, or other similar agreement with respect to any
Transferred Employee. To the extent necessary, Organon shall cause the appropriate member of the Organon Group to join any industrial, employer or similar association or federation if membership is required for the relevant collective bargaining,
works council, or other similar agreement to continue to apply. 
 ARTICLE III 

U.S. QUALIFIED AND NON-QUALIFIED RETIREMENT PLANS 

Section 3.01    Pension Plan. The Merck Pension Plan shall continue to be responsible for Liabilities in
respect of all Employees (including Transferred Employees) and Former Employees. No Employees of the Organon Group shall accrue any additional benefits under the Merck Pension Plan following the later of (i) the Distribution Date, and
(ii) their applicable Transfer Date. The accrued benefits of Transferred Employees under the Merck Pension Plan shall become fully vested as of the later of (i) the Distribution Date, and (ii) their applicable Transfer Dates. In
addition, until distributions commence under the Merck Pension Plan for a Transferred Employee, the Merck Pension Plan shall continue to credit service earned with Organon and its Affiliates for purposes of early retirement eligibility and subsidies
under the Merck Pension Plan. Furthermore, Merck shall provide any pension service crediting bridges 

  
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offered under the Merck Separation Plan to any Transferred Employee who otherwise meets, on or prior to December 31, 2022, the age and service requirements for such pension service crediting
bridges in the event that such Transferred Employee experiences a separation of employment from the Organon Group that would have entitled the Transferred Employee to benefits under the Merck Separation Plan prior to the Spin-Off (including satisfying any requirement to execute a release of claims against Merck and its affiliates). 

Section 3.02    Savings Plan. 

(a)    Establishment of Organon Savings Plan. Effective as of or prior to the Distribution Date, Organon shall
establish the Organon Savings Plan. As of the Distribution Date, the Organon Savings Plan shall include provisions so that, subject to the applicable nondiscrimination rules under Code Sections 401(a)(4) and 401(m), the aggregate contributions
during any plan year through at least December 31, 2022 for Transferred Employees shall be no less than the aggregate sum of such contributions under the Merck Savings Plan and the pay credits under the Merck Pension Plan as in effect
immediately prior to the Distribution Date. On or prior to the Distribution Date, Organon shall provide Merck with (i) a copy of the Organon Savings Plan; and (ii) a copy of certified resolutions of the Organon Board (or its authorized
committee or other delegate) evidencing adoption of the Organon Savings Plan and the related trust(s) and the acceptance by the Organon Savings Plan of the Liabilities described in Section 3.02(b) as and when rollovers
occur. 
 (b)    Elective Rollovers of Account Balances. As soon as practicable after the later of (i) the
Distribution Date, and (ii) the Transferred Employee’s applicable Transfer Date, Organon shall take all actions necessary to permit Transferred Employees to directly roll over their account balances in the Merck Savings Plan to the Organon
Savings Plan. Such rollovers may be made in cash, promissory notes evidencing outstanding loans or any combination thereof, as elected by the Transferred Employee. 

(c)    Organon Savings Plan Provisions. The Organon Savings Plan shall provide that: 

(i)    Transferred Employees shall (A) be eligible to participate in the Organon Savings Plan as of
the later of (i) the Distribution Date, and (ii) their applicable Transfer Date, to the extent they were eligible to participate in the Merck Savings Plan as of immediately prior to such date, and (B) receive credit for vesting and
benefit accrual purposes for all service credited for that purpose under the Merck Savings Plan as of the later of (y) the Distribution Date, and (z) their applicable Transfer Date, as if that service had been rendered to Organon; and 

(ii)    the Organon Savings Plan shall provide the opportunity to make up elective deferrals, and any
employer contributions, required by USERRA for a Former Employee who is employed by the Organon Group following the Distribution Date pursuant to Section 2.02(a)(i)(C), including any amount that relates to the period of
military leave that occurred prior to the Distribution Date. 

  
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 (d)    Determination Letter Request. Unless the Organon Savings
Plan may rely on a favorable opinion letter from the Internal Revenue Service, Organon shall submit an application to the Internal Revenue Service either prior to, or as soon as practicable following, the Distribution Date for a determination
regarding the qualification of the Organon Savings Plan as of the Distribution Date and shall make any amendments reasonably requested by the Internal Revenue Service to receive a favorable determination letter regarding the Organon Savings Plan.

 (e)    Merck Savings Plan after Distribution Date. From and after the Distribution Date the Merck Savings Plan
shall continue to be responsible for Liabilities in respect of all Employees (including Transferred Employees) and Former Employees. From and after the later of (ii) the Distribution Date, and (ii) their applicable Transfer Date, no
Employees of the Organon Group shall accrue any benefits under the Merck Savings Plan. Without limiting the generality of the foregoing, Transferred Employees shall cease to be active participants in the Merck Savings Plan effective as of their
applicable Transfer Date. For the avoidance of doubt, Merck Employees and Transferred Employees, until their respective Transfer Dates, shall accrue benefits under the Merck Savings Plan. 

(f)    Plan Fiduciaries. For all periods whether before or after the Distribution Date, the Parties agree that the
applicable fiduciaries of each of the Merck Savings Plan and the Organon Savings Plan, respectively, shall have the authority with respect to the Merck Savings Plan and the Organon Savings Plan, respectively, to determine the investment
alternatives, the terms and conditions with respect to those investment alternatives and such other matters as are within the scope of their duties under ERISA Section 404. Without limiting the generality of the foregoing, Merck or its
designate may recommend initial investment funds available under the Organon Savings Plan, which Organon shall be free to accept or reject in accordance with its fiduciary duties. 

Section 3.03    Supplemental Pension Plan. The Merck SERP shall continue to be responsible for Liabilities in
respect of all Employees (including Transferred Employees) and Former Employees accrued thereunder. No Employees of the Organon Group shall accrue any benefits under the Merck SERP following the later of the Distribution Date and their applicable
Transfer Date, but the Merck SERP shall credit such Employee’s continuous service with the Organon Group following the Transfer Date for purposes of early retirement eligibility and early retirement subsidies. Except as otherwise provided by
Code Section 409A, a Transferred Employee shall not be considered to have undergone a “separation from service” for purposes of Code Section 409A and the Merck SERP solely by reason of the
Spin-Off, and, following his or her Transfer Date, the determination of whether a Transferred Employee has incurred a separation from service with respect to his or her benefit in the Merck SERP shall be based
solely upon his performance of services for the Organon Group. 
 Section 3.04    Deferred Compensation
Plan. 
 (a)    Establishment of Organon DCP. Effective as of or before the Distribution Date, Organon shall
establish the Organon DCP to permit company credits to Organon Savings Plan participant accounts to the extent contributions cannot be made to the Organon Savings Plan by reason of the limits under the Code, such as Code Section 401(a)(17).

  
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 (b)    Merck DCP after
Spin-Off. From and after the later of the Distribution Date and a Transferred Employee’s Transfer Date, such individual shall not actively participate in or accrue any benefits under the Merck DCP.
The Merck DCP shall continue to be responsible for Liabilities in respect of all Employees (including Transferred Employees) and Former Employees. Except as otherwise provided by Code Section 409A, a Transferred Employee shall not be considered
to have undergone a “separation from service” for purposes of Code Section 409A and the Merck DCP solely by reason of the Spin-Off, and, following his Transfer Date, the determination of whether
a Transferred Employee has incurred a separation from service with respect to his or her benefit in the Merck DCP shall be based solely upon his or her performance of services for the Organon Group. 

(c)    Adjustment of Merck Common-Stock-Denominated Investments (“Merck Phantom Shares”). Each Merck
Phantom Share that remains outstanding in the Merck DCP as of immediately prior to the Distribution Date, regardless of by whom held shall be converted concurrently with the Distribution on the Distribution Date into an “Adjusted Merck
Phantom Share.” The number of units represented by an Adjusted Merck Phantom Share shall be equal to (1) the number of Merck Phantom Shares immediately prior to the Distribution Date, divided by (2) the Merck Conversion Ratio,
rounded to the nearest unit. 
 Section 3.05    Failure to Notify of Employment Termination. Organon shall
notify Merck of the “separation from service” (as determined pursuant to Section 409A of the Code) of any Transferred Employee by the 15th day of the calendar month following the
calendar month of such Transferred Employee’s separation from service. At that time, Organon shall also notify Merck whether the Transferred Employee is a “specified employee” as determined pursuant to Code Section 409A. In the
event that a distribution of benefits to a Transferred Employee is not made at the proper time pursuant to any Merck plan because Organon did not timely notify Merck of any such separation from service, or specified employee status, Organon shall
reimburse Merck for all costs, including incidental and consequential damages incurred by Merck in connection therewith (including but not limited to additional benefit plan payments, legal fees, accounting fees and advisor fees, service provider
fees, the costs of preparing and making any governmental filings, any “gross-up” Merck determines to pay to such Transferred Employee in connection with a violation of Code Section 409A) and any
other amounts Merck reasonably determines would have been avoided if Organon had timely notified Merck of such separation from service or specified employee status. 

ARTICLE IV 
 NON-U.S. RETIREMENT PLANS 
 Section 4.01    Establishment of Non-U.S. Retirement Plans and Transfers of Assets and Liabilities. Except as mutually agreed upon by the Parties or required under this Article IV, effective as of or before the Distribution Date, Organon or its
appropriate Affiliate will establish pension and retirement plans (whether defined contribution or defined benefit pension plans) with terms that are substantially comparable in the aggregate to those offered to Transferred Non-U.S. Employees immediately prior to the earlier of (i) the Distribution Date or (ii) their applicable Transfer Date. 

  
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 (a)    Transfer of Non-U.S.
Retirement Plan Assets and Liabilities. As soon as practicable following the establishment of a Non-U.S. Organon Benefit Plan, except as otherwise provided in this Agreement or as mutually agreed upon by
the Parties, the Assets and Liabilities (determined as of the date of the applicable local closing, whether occurring prior to, on or after the Distribution Date (such date, the “Applicable Closing Date”)) under the corresponding Non-U.S. Merck Benefit Plan attributable to Transferred Non-U.S. Employees who are participants in such plan, along with any other Assets and Liabilities that Organon agrees
to assume with respect to such plan, shall be transferred to such Non-U.S. Organon Benefit Plan. The Non-U.S. Merck Benefit Plan shall retain all Assets and Liabilities
related to Merck Retained Employees, Former Employees and Post-Distribution Organon Employees (subject to Section 4.01(c)). Except as otherwise mutually agreed upon by the Parties, assets will be allocated between the plans
based on the proportion of Liabilities borne by each plan. Except as otherwise mutually agreed upon by the Parties, such Liabilities will be valued using the projected benefit obligation based on plan provisions as in effect at the Applicable
Closing Date and applying demographic and other assumptions used in the most recently completed valuation of the applicable Non-U.S. Merck Benefit Plan (and taking into account the requirements of ASC 715 as
it exists as of the Applicable Closing Date); provided, however, that all economic assumptions will be updated as of the Applicable Closing Date. The transfer amount described above shall be credited or debited, as applicable, with a
pro rata share of the actual investment earnings or losses allocable to the transfer amount for the period between the Applicable Closing Date and an assessment date set by Merck that is as close as practicable, taking into account the timing and
reporting of valuation of the applicable Non-U.S. Merck Benefit Plan’s Assets, to the date upon which Assets equal in value to the transfer amount are actually transferred from the applicable Non-U.S. Merck Benefit Plan to the applicable Non-U.S. Organon Benefit Plan; provided that, if actual investment earnings or losses are not then determinable, Merck and
Organon shall then agree on a reasonable alternative methodology (which may include expected or estimated returns used for other similar purposes by Merck in the ordinary course of business). During this period, benefits payable to Transferred Non-U.S. Employees shall be paid from the Non-U.S. Merck Benefit Plan. Except as otherwise mutually agreed upon by the Parties, the ultimate transfer amount shall be reduced
by the amount of these benefits and credited or debited by the actual investment earnings or losses from the payment date to the assessment date set by Merck above. Any third party fees, costs or expenses incurred under the applicable Non-U.S. Merck Benefit Plan during the period from the Applicable Closing Date to the assessment date set by Merck shall be shared by the Parties based on the proportion of Liabilities borne by the applicable Non-U.S. Merck Benefit Plan and the applicable Non-U.S. Organon Benefit Plan. The Parties agree to use commercially reasonable efforts to accomplish each transfer as soon as
practicable on or following the Applicable Closing Date and to cooperate with each other to make such filings and disclosures and obtain such approvals as may be deemed necessary or advisable in accordance with applicable Law. Notwithstanding the
foregoing, to the extent a Non-U.S. Merck Benefit Plan is not required to be funded by applicable Law or is not voluntarily funded, there shall be no transfer of Assets by the
Non-U.S. Merck Benefit Plan or by the Merck Group in respect thereof. 

  
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 (b)    Non-U.S. Organon
Retirement Plan Provisions. Each Non-U.S. Organon Benefit Plan shall provide, except as otherwise provided in this Agreement or local Conveyance and Assumption Instruments, that: 

(i)    Transferred Non-U.S. Employees shall (A) be eligible to
participate in the Non-U.S. Organon Benefit Plan to the extent they were eligible to participate in the corresponding Non-U.S. Merck Benefit Plan, and (B) receive
credit for vesting, eligibility and benefit service to the same extent recognized by Merck as of immediately prior to their Transfer Date for all service credited for those purposes under the corresponding
Non-U.S. Merck Benefit Plan as if that service had been rendered to Organon; 

(ii)    the compensation paid by the Merck Group to a Transferred
Non-U.S. Employee that is recognized under the Non-U.S. Merck Benefit Plan shall be credited and recognized for all applicable purposes under the corresponding Non-U.S. Organon Benefit Plan as though it were compensation from the Organon Group; and 

(iii)    the accrued benefit of each Transferred Non-U.S. Employee
under the Non-U.S. Merck Benefit Plan that is transferred to the corresponding Non-U.S. Organon Benefit Plan pursuant to Section 4.01(a) shall
be paid under such Non-U.S. Organon Benefit Plan in accordance with the terms of such Non-U.S. Organon Benefit Plan and applicable Law, with employment by the Merck
Group treated as employment by the Organon Group under the Non-U.S. Organon Benefit Plan for purposes of determining eligibility for optional forms of benefit, early retirement benefits, or other benefit
forms. 
 (c)    Subsequent Transfers. Periodically, at such times as agreed upon by the Parties after the
initial transfer described in Section 4.01(a), Organon shall cause the applicable Non-U.S. Organon Benefit Plan to receive Assets and assume all Liabilities under the applicable Non-U.S. Merck Benefit Plan for Post-Distribution Organon Employees who become Transferred Employees (including Assets and Liabilities in respect of beneficiaries and/or alternate payees) and the applicable Non-U.S. Merck Benefit Plan shall transfer all such Assets and be relieved of such Liabilities. The amount of such Assets to be transferred shall be determined as provided in
Section 4.01(a) (and shall include any employee contributions made by such Post-Distribution Organon Employee between the Distribution Date and the applicable Transfer Date) and shall be subject to the applicable provisions
of Section 4.01(a). 
 (d)    Notwithstanding the foregoing, if pension benefits are funded by
individually linked insurance contracts, such contracts in respect of Transferred Employees shall be assigned to Organon or its applicable Subsidiary in lieu of the transfers of (and calculations of value with respect to) other Assets otherwise
contemplated hereby. 
 ARTICLE V 

WELFARE AND FRINGE BENEFIT PLANS 

Section 5.01    Health and Welfare Plans. 

(a)    Establishment of Organon Health and Welfare Plans. Effective as of or before the Distribution Date, Organon
shall establish the Core Organon Health and Welfare Plans, with terms substantially comparable in the aggregate to those of the corresponding Core 

  
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Merck Health and Welfare Plans unless otherwise provided in this Article V. For the avoidance of doubt, Organon shall not be required to provide retiree medical benefits to any employee hired on
or after the Distribution Date. 
 (b)    Waiver of Conditions; Benefit Maximums. Organon shall, to the extent
commercially reasonable and permitted under applicable Law and, with respect to Non-U.S. Health and Welfare Plans, to the extent applicable, cause the Organon Health and Welfare Plans to: 

(i)    with respect to initial enrollment (whether passive or active) prior to, as of or following an
individual’s applicable Transfer Date: 
 (A)    waive all limitations as to preexisting conditions,
exclusions, and service conditions with respect to participation and coverage requirements applicable to any Transferred Employee, other than limitations that were in effect with respect to the Transferred Employee under the applicable Merck Health
and Welfare Plan as of immediately prior to such individual’s Transfer Date; 
 (B)    waive any
waiting period limitation or evidence of insurability requirement applicable to a Transferred Employee other than limitations or requirements that were in effect with respect to such Transferred Employee under the applicable Merck Health and Welfare
Plan as of immediately prior to such individual’s Transfer Date; 
 (C)    with respect to aggregate
annual, lifetime, or similar maximum benefits available under the Organon Health and Welfare Plans, recognize a Transferred Employee’s prior claim experience under the Merck Health and Welfare Plans and any Benefit Plan that provides leave
benefits; and 
 (D)    cause any eligible expenses incurred by a Transferred Employee and his or her
covered dependents during the portion of the plan year of the applicable Merck Health and Welfare Plan ending on the date that the Transferred Employee’s coverage commences under the Organon Health and Welfare Plan to be taken into account
under such Organon Health and Welfare Plan for purposes of satisfying all deductible, coinsurance, and maximum out-of-pocket requirements applicable to such Transferred
Employee and his or her covered dependents for the applicable plan year as if such amounts had been paid in accordance with such Organon Health and Welfare Plan. 

(c)    Allocation of Health and Welfare Assets and Liabilities. 

(i)    General Principles. Notwithstanding any other provision hereof and except as otherwise agreed
between the Parties, (A) Merck shall retain all Liabilities relating to Incurred Claims of Merck Retained Employees and Former Employees under the Merck Health and Welfare Plans, and shall also retain Assets (including, without limitation,
Medicare reimbursements, pharmaceutical rebates, and similar items) associated with such Incurred Claims and (B) Organon shall be responsible for Incurred 

  
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Claims of Organon Employees from and after the applicable Transfer Date. Organon shall be responsible for all Liabilities relating to Incurred Claims under any Organon Health and Welfare Plan and
shall also retain Assets (including, without limitation, Medicare reimbursements, pharmaceutical rebates, and similar items) associated with such Incurred Claims. Merck shall retain any Assets (including, without limitation, Medicare reimbursements,
pharmaceutical rebates, and similar items) that are not associated with any specific Incurred Claim. 

(ii)    Disability Benefits. Notwithstanding any other provision hereof and except as otherwise
agreed between the Parties, (A) Merck shall be responsible for Incurred Claims (including ongoing benefit payments) of Merck Retained Employees and Former Employees for short- and long-term disability benefits, regardless of when the applicable
Incurred Claim was incurred and (B) subject to the immediately following sentence, Organon shall be responsible for Incurred Claims (including ongoing benefit payments) of Organon Employees from and after the applicable Transfer Date for
short-term disability benefits and long-term disability benefits. Notwithstanding the foregoing, an Organon Employee who is on short-term disability leave on the Transfer Date under a U.S. Health and Welfare Plan and who subsequently qualifies for
long-term disability without an intervening new Incurred Claim shall receive long-term disability benefits from the Merck long-term disability plan, but all other benefits attributable to his or her disability (including continued pension accrual,
if applicable, and participation in any medical or life insurance plan for disabled persons, if applicable) shall be provided by the applicable Organon Benefit Plan, if any, or otherwise be the responsibility of Organon, and if Organon does not
sponsor a plan providing any such benefits, such Organon Employee shall not be entitled to such benefits from any Merck Benefit Plan. 

(iii)    U.S. Flexible Spending Accounts. The Parties shall take all actions necessary to ensure
that, effective as of the later of the Distribution Date and the applicable Employee’s Transfer Date, (A) the health care and dependent care flexible spending accounts of the applicable Transferred Employees (whether positive or negative)
(the “Transferred Flexible Spending Account Balances”) under the applicable Merck Health and Welfare Plan shall be transferred to the corresponding Organon Health and Welfare Plan; (B) the elections, contribution levels and
coverage of the Transferred Employees shall apply under the Organon Health and Welfare Plan in the same manner as under the corresponding Merck Health and Welfare Plan; and (C) the Transferred Employees shall be eligible for reimbursement from
the Organon Health and Welfare Plan on the same basis and the same terms and conditions as under the corresponding Merck Health and Welfare Plan. As soon as practicable after the Distribution Date (and any later Transferred Employee’s Transfer
Date), and in any event within 30 business days after the amount of the Transferred Flexible Spending Account Balances is determined, Merck shall pay Organon the net aggregate amount of the Transferred Flexible Spending Account Balances, if such
amount is positive, and Organon shall pay Merck the net aggregate amount of the Transferred Flexible Spending Account Balances, if such amount is negative. 

(d)    Retiree Health Care Plan and Retiree Life Insurance. Notwithstanding any other provision hereof (or any
other action taken by Merck and Organon on or prior to the 

  
 21 

 
Distribution Date, including any assignment and assumption of Assets or Liabilities related thereto), Merck shall retain the Liabilities and responsibility for all obligations under the Merck
Retiree Health Care Plan for benefits due to Merck Retained Employees, Transferred Employees and Former Employees, and shall also retain Assets, including, without limitation, Medicare reimbursements, pharmaceutical rebates, and similar items,
associated with such benefits. For each Transferred Employee, Merck shall (i) cause the Merck Retiree Health Care Plan to credit service with Organon and its Affiliates after a Transferred Employee’s Transfer Date for purposes of benefit
eligibility under the Merck Retiree Health Care Plan, and (ii) in the event of a separation of employment that occurs on or prior to December 31, 2022, that would have entitled the Transferred Employee to benefits under the Merck
Separation Plan prior to the Spin-Off (including any requirement to execute a release of claims against Merck and its affiliates), provide any retiree medical bridges that would have been offered under the
Merck Separation Plan. For the avoidance of doubt, nothing herein shall be deemed to restrict the right of Merck to amend or terminate the Merck Retiree Health Care Plan at any time; provided, however, that Merck may not amend the Merck Retiree
Health Care Plan in any manner that disproportionately, materially and adversely effects the rights of Organon Employees vis-à-vis the Merck Employees. 

(e)    Merck Health and Welfare Plans after Distribution Date. Except as otherwise provided in Section 5.01,
Transferred Employees shall cease to participate in the Merck Health and Welfare Plans effective as of their respective Transfer Dates. 

Section 5.02    COBRA. Merck shall continue to be responsible for compliance with the health care continuation
requirements of COBRA, and the corresponding provisions of the Merck Health and Welfare Plans with respect to any (a) Merck Retained Employees and any Former Employees (and their covered dependents) who incur a qualifying event under COBRA on,
prior to, or following the Distribution Date, (b) Organon Employees who do not at any time become Transferred Employees (and their covered dependents) who incur a qualifying event under COBRA on, prior to, or following the Distribution Date,
and (c) subject to Section 2.04, other Organon Employees (and their covered dependents), with respect to qualifying events under COBRA incurred prior to the applicable Transfer Date. Organon shall assume responsibility
for compliance with the health care continuation requirements of COBRA and the corresponding provisions of the Organon Health and Welfare Plans with respect to any Transferred Employees (and their covered dependents) who incur a qualifying event or
loss of coverage under the Organon Health and Welfare Plans on or after their respective Transfer Dates. The Parties agree that the consummation of the transactions contemplated by the Separation and Distribution Agreement shall not constitute a
COBRA qualifying event for any purpose of COBRA. 
 Section 5.03    Vacation, Holidays and Leaves of
Absence. Effective as of the applicable Transfer Date in accordance with Section 2.01(a)(i), Organon shall be responsible for any and all Liabilities to, or relating to, Transferred Employees in respect of vacation,
holiday, personal days, sick days, annual leave or other leave of absence, and required payments related thereto (whether accruing prior to, on or after the applicable Transfer Date), including any such Liabilities, and any such required payments
related thereto, reasonably determined by Merck in its sole discretion. Merck shall retain all Liabilities with respect to vacation, holiday, annual leave or other leave of absence, and required payments related thereto, for each Merck Retained
Employee and Former Employee, as well as Organon Employees until the applicable Transfer Date of such Organon Employees. 

  
 22 

 Section 5.04    Severance and Unemployment Compensation.
Effective as of the applicable Transfer Date, Organon shall be responsible for any and all Liabilities to, or relating to, Transferred Employees in respect of severance and unemployment compensation.    Transferred Employees
shall receive credit for service with Merck as of the applicable Transfer Date as if that service had been rendered to Organon for determining severance entitlements subject to the limitations on service crediting in
Section 2.02(c). Subject to any specific agreement to the contrary in the Separation and Distribution Agreement or any Transaction Document and subject to Sections 2.02(a)(ii) and 2.04 hereof, Merck shall be
responsible for any and all Liabilities to, or relating to, Merck Retained Employees and Former Employees, as well as Organon Employees until an applicable Transfer Date occurs with respect to such Organon Employees, in respect of severance and
unemployment compensation, regardless of whether the event giving rise to the Liability occurred prior to, on, or following the Distribution Date. 

Section 5.05    Workers’ Compensation. Except as required by applicable Law or as otherwise
determined jointly by the Parties as a result of the requirements of any Governmental Authority, all United States workers’ compensation Liabilities relating to, arising out of, or resulting from any claim shall be assumed, or retained as the
case may be, by the Party (or its applicable Subsidiary) that employed such Employee as of the time of such claim. The Merck Group shall be responsible for all Liabilities relating to, arising out of, or resulting from any United States
workers’ compensation claims incurred prior to an applicable Transferred Employee’s Transfer Date unless expressly specified otherwise in the immediately preceding sentence or as required by applicable Law. Each member of the Organon Group
and the Merck Group shall cooperate with respect to any notification to appropriate governmental agencies of the disposition and the issuance of new, or the transfer of existing, workers’ compensation insurance policies and claims handling
contracts. 
 ARTICLE VI 

EQUITY, INCENTIVE, AND DIRECTOR AND EXECUTIVE COMPENSATION PROGRAMS 

Section 6.01    Equity Incentive Programs. 

(a)    Options, PSUs and RSUs. The Parties shall use commercially reasonable efforts to take all actions necessary
or appropriate so that each outstanding Merck Option, Merck PSU Award, and Merck RSU Award granted under a Merck Stock Program shall be adjusted or converted as set forth in this Section 6.01. This
Section 6.01(a) shall not apply to grants made under the Merck Directors’ DCP (or any successor or predecessor plan), and the sole provisions with respect to the adjustment and conversion of those grants are set forth
in Section 6.03. 
 (i)    Merck Options. Each Merck Option outstanding
as of immediately prior to the Distribution Date, whether vested or unvested and regardless of by whom held shall be converted concurrently with the Distribution on the Distribution Date into (x) an Adjusted Merck Option in the case of Merck
Employees, Post-Distribution 

  
 23 

 
Organon Employees and Former Employees or (y) an Organon Option in the case of Organon Employees (excluding any Post-Distribution Organon Employee). Each such adjusted or converted Option
shall, except as otherwise provided in this Section 6.01, be subject to the same terms and conditions (including with respect to vesting) after the Distribution Date as applicable to such Merck Option immediately prior to
the Distribution Date; provided, however, that upon such adjustment or conversion: 

(A)    the number of Merck Common Shares subject to such Adjusted Merck Option (if any) shall be equal to
(1) the number of Merck Common Shares subject to the Merck Option immediately prior to the Distribution Date, multiplied by (2) the Merck Conversion Ratio, rounded down to the nearest whole share; 

(B)    the number of shares of Organon Common Stock subject to the Organon Option into which such Merck
Option is converted (if any) shall be equal to (1) (xx) the number of Merck Common Shares subject to the Merck Option immediately prior to the Distribution Date multiplied by (yy) the Distribution Ratio, multiplied by (2) the Organon Conversion
Ratio, rounded down to the nearest whole share; 
 (C)    the per share exercise price of each Adjusted
Merck Option, shall be equal to (1) the per share exercise price of the Merck Option immediately prior to the Distribution Date divided by (2) the Merck Conversion Ratio, rounded up to the nearest cent; and 

(D)    the per share exercise price of each Organon Option, shall be equal to (1) the per share
exercise price of the Merck Option immediately prior to the Distribution Date divided by (2) the Organon Conversion Ratio divided by (3) the Distribution Ratio, rounded up to the nearest cent; 

provided, however, that the exercise price, the number of Merck Common Shares and the number of shares of Organon Common Stock subject to such
options, and the terms and conditions of exercise of such options shall be determined in a manner consistent with the requirements of Code Section 409A. 

(ii)    Merck PSU Awards. 

(A)    Merck Employees, Post-Distribution Organon Employees and Former Employees. Merck shall,
concurrently with the Distribution on the Distribution Date and notwithstanding the existing terms of such awards, cause the performance goals under each outstanding Merck PSU Award held by a Merck Employee, a Post-Distribution Organon Employee or a
Former Employee to be equitably adjusted, as determined in its sole discretion. Each such Merck PSU Award held by a Merck Employee, a Post-Distribution Organon Employee or a Former Employee shall be converted concurrently with the Distribution on
the Distribution Date into an Adjusted Merck PSU Award. Such converted award shall be (in all other respects) subject to substantially the same terms and 

  
 24 

 
conditions immediately following the Distribution Date as applicable immediately prior to the Distribution Date; provided, however, that the number of units represented by the Adjusted Merck PSU
Award shall be equal to (1) the number of units subject to the Merck PSU Award immediately prior to the Distribution Date, multiplied by (2) the Merck Conversion Ratio, rounded to the nearest whole unit. 

(B)    Organon Employees’ (other than Post-Distribution Organon Employees’) 2019 Merck PSU
Awards. Effective as of immediately prior to the Distribution on the Distribution Date, the Merck Compensation and Benefits Committee, pursuant to its authority under the applicable Merck Stock Program and notwithstanding the existing terms of
such awards, shall determine and certify the level of attainment of all applicable performance goals under each outstanding Merck PSU Award with a 2019 to 2021 performance period that is held by an Organon Employee (other than a Post-Distribution
Organon Employee), whether vested or unvested, as of immediately prior to the Distribution (with December 31, 2020 treated as the last day of the applicable performance period and such level of attained performance applied to 100% of the shares
subject to the Merck PSU Award). Any such earned Merck PSU Award shall be converted, concurrently with the Distribution on the Distribution Date, into an Organon RSU Award with respect to a number of shares of Organon Common Stock equal to (1) (xx)
the number of units subject to the earned Merck PSU Award immediately prior to the Distribution Date (as determined pursuant to the foregoing sentence) multiplied by (yy) the Distribution Ratio, multiplied by (2) the Organon Conversion Ratio,
rounded to the nearest unit. Such Organon RSU Award shall be (in all other respects, including time-based vesting) subject to substantially the same terms and conditions immediately following the Distribution Date as applicable to the Merck PSU
Award from which it was converted. Any portion of such Merck PSU Award that is not earned shall be immediately forfeited as of the Distribution Date without the payment of any consideration therefore. 

(C)    Organon Employees (other than Post-Distribution Organon Employees), 2020 and 2021 Merck PSU
Awards. Effective as of immediately prior to the Distribution on the Distribution Date, a number of shares equal to the target number of shares subject to each outstanding Merck PSU Award with a 2020 to 2022 performance period and each
outstanding Merck PSU Award with a 2021 to 2023 performance period that is held by an Organon Employee (other than a Post-Distribution Organon Employee), whether vested or unvested, as of immediately prior to the Distribution shall be deemed earned.
Any such earned Merck PSU Award shall be converted, concurrently with the Distribution on the Distribution Date, into an Organon RSU Award with respect to a number of shares of Organon Common Stock equal to (1) (xx) the number of units subject to
the earned Merck PSU Award immediately prior to the Distribution Date (as determined pursuant to the foregoing sentence) multiplied by (yy) the Distribution Ratio, multiplied by (2) the Organon Conversion Ratio, rounded to the nearest unit.
Such Organon RSU Award shall be (in all other respects, including time-

  
 25 

 
based vesting) subject to substantially the same terms and conditions immediately following the Distribution Date as applicable to the Merck PSU Award from which it was converted. Any portion of
such Merck PSU Award that is not earned shall be immediately forfeited as of the Distribution Date without the payment of any consideration therefore. 

(iii)    Merck RSU Awards. Each Merck RSU Award that remains outstanding as of immediately prior to
the Distribution Date, regardless of by whom held, whether vested or unvested, shall be converted concurrently with the Distribution on the Distribution Date into (A) an Adjusted Merck RSU Award in the case of Merck Employees, Post-Distribution
Organon Employees and Former Employees or (B) an Organon RSU Award in the case of Organon Employees (other than Post-Distribution Organon Employees). Except as set forth in this Section 6.01(a)(iii), all Adjusted Merck
RSU Awards and Organon RSU Awards issued in accordance with this Section 6.01(a)(iii) shall be subject to substantially the same terms and conditions (including with respect to vesting) immediately following the
Distribution Date as applicable immediately prior to the Distribution Date for those Merck RSU Awards from which such Adjusted Merck RSU Awards and Organon RSU Awards were converted; provided, however, that upon such adjustment or
conversion: 
 (A)    the number of units represented by an Adjusted Merck RSU Award shall be equal to
(1) the number of units subject to the Merck RSU Award immediately prior to the Distribution Date, multiplied by (2) the Merck Conversion Ratio, rounded to the nearest unit; and 

(B)    the number of units represented by an Organon RSU Award shall be equal to (1) (xx) the number of
units subject to the Merck RSU Award immediately prior to the Distribution Date multiplied by (yy) the Distribution Ratio, multiplied by (2) the Organon Conversion Ratio, rounded to the nearest unit. 

(iv)    Notwithstanding the foregoing, the Parties may mutually agree not to adjust (or to otherwise adjust
as they deem appropriate) certain outstanding Merck equity-based awards pursuant to the foregoing provisions of this Section 6.01 to the extent such actions would create or trigger adverse legal, accounting, administrative,
tax consequences or in order to comply with any Employee Agreement or similar agreement with any affected Employee. 

(b)    Miscellaneous Award Terms. After the Distribution Date, Adjusted Merck Awards, regardless of by whom held,
shall be settled by Merck, and Organon Awards, regardless of by whom held, shall be settled by Organon. Except as otherwise provided in this Agreement, with respect to grants described in this Section 6.01, no Transferred
Employee (other than a Post-Distribution Organon Employee) shall be treated as having incurred a termination of employment or separation from service with respect to any Merck Award solely by reason of his or her transfer of employment. Following
the Distribution Date, for any award adjusted or otherwise received in accordance with this Section 6.01, any reference to a “change in control,” “change of control” or similar definition in an award
agreement, employment agreement or 

  
 26 

 
Merck Stock Program applicable to such award (A) with respect to Adjusted Merck Awards, shall be deemed to refer to a “change in control,” “change of control” or similar
defined term as set forth in the applicable award agreement, employment agreement or Merck Stock Program (a “Merck Change of Control”) and (B) with respect to Organon Awards, shall be deemed to refer to a “change in
control,” “change of control” or similar defined term as set forth in the Organon Equity Plan (a “Organon Change of Control”). The Distribution shall not, in and of itself, be treated as either a Merck Change of
Control or an Organon Change of Control. 
 (c)    Registration and Other Regulatory Requirements. As soon as
possible following (or prior to) the Distribution Date, but in any case before the date of issuance of any shares of Organon Common Stock pursuant to the Organon Equity Plan, Organon agrees to file a Form S-8
Registration Statement (or such other registration statement as may be permitted in lieu thereof if a Form S-8 Registration Statement is not then available for any such awards to be granted in accordance with
the terms of this Agreement) with respect to, and to cause to be registered pursuant to the Securities Act, the shares of Organon Common Stock authorized for issuance under the Organon Equity Plan as required pursuant to the Securities Act. The
Parties shall take such additional actions as are deemed necessary or advisable to effectuate the foregoing provisions of this Section 6.01, including compliance with securities Laws and other legal requirements associated
with equity compensation awards in affected non-U.S. jurisdictions. 

(d)    Merck Equity-Based Awards in Certain Non-U.S. Jurisdictions.
Notwithstanding the foregoing provisions of this Section 6.01, the Parties may mutually agree, in their sole discretion (including as set forth in Schedule 6.01(d)), not to adjust certain outstanding Merck
equity-based awards pursuant to the foregoing provisions of this Section 6.01, where those actions would create or trigger adverse legal, accounting or tax consequences for Merck, Organon, and/or the affected non-U.S. award holders. In such circumstances, Merck and/or Organon may take any action necessary or advisable to prevent any such adverse legal, accounting or tax consequences, including, but not limited to,
agreeing that the outstanding Merck equity-based awards of the affected non-U.S. award holders shall terminate in accordance with the terms of the Merck Stock Programs and the underlying award agreements, in
which case Organon or Merck, as applicable, shall equitably compensate the affected non-U.S. award holders in an alternate manner determined by Organon or Merck, as applicable, in its sole discretion, or apply
an alternate adjustment method. Where and to the extent required by applicable Law or tax considerations outside the United States, the adjustments described in this Section 6.01 shall be deemed to have been effectuated
immediately prior to the Distribution Date. 
 Section 6.02    Annual Bonus. The Organon Group shall be
responsible for all annual bonus payments or other forms of cash incentive compensation (including commissions) payable to Transferred Employees (including Post-Distribution Organon Employees) the performance period for which ends after the
applicable Transferred Employee’s Transfer Date. For the avoidance of doubt, the Merck Group shall have no obligation or responsibility to pay such amounts to such Transferred Employees (including Post-Distribution Employees) in respect of any
portion of such performance period and annual bonus payments or other forms of cash incentive compensation (including commissions) for such full performance period shall be the sole obligation and responsibility of the Organon Group pursuant to the
final applicable program 

  
 27 

 
terms and conditions established and administered by the Organon Group. The Merck Group shall be responsible for any annual bonus payments or other forms of cash incentive compensation payable to
Transferred Employees (including Post-Distribution Organon Employees) the performance period for which ends on or prior to the applicable Transferred Employee’s Transfer Date. 

Section 6.03    Merck Deferred Stock Units. Each outstanding Merck Deferred Stock Unit shall be adjusted or
converted as set forth in this Section 6.03. For the avoidance of doubt, the remainder of this Section 6.03 applies only to grants made under the Merck Directors’ DCP (or any successor or
predecessor plan), while Section 6.01 is intended to apply to other programs included within the Merck Stock Programs. Each holder of a Merck Deferred Stock Unit that remains outstanding as of immediately prior to the
Distribution Date (regardless of by whom held, whether vested or unvested), shall be converted concurrently with the Distribution on the Distribution Date into an Adjusted Merck Deferred Stock Unit Award. Except as set forth in this
Section 6.03(a), all Adjusted Merck Deferred Stock Unit Awards issued in accordance with this Section 6.03(a) shall be subject to substantially the same terms and conditions (including with respect to vesting)
immediately following the Distribution Date as applicable immediately prior to the Distribution Date for those Merck Deferred Stock Units from which such Adjusted Merck Deferred Stock Unit Awards were converted; provided, however, that with respect
to each Merck Deferred Stock Unit converted in accordance with the immediately preceding sentence the number of units represented by an Adjusted Merck RSU Award (if any) shall be equal to (1) the number of units subject to the Merck Deferred
Stock Unit immediately prior to the Distribution Date, multiplied by (2) the Merck Conversion Ratio, rounded to the nearest unit. To the maximum extent permitted by Treasury Regulations
Section 1.409A-1(h)(4), a member of the Merck Board who no longer serves on the Merck Board immediately following the Distribution Date shall be considered to have undergone a “separation from
service” for purposes of Code Section 409A and the Merck Directors’ DCP. 

Section 6.04    Directors’ Deferred Compensation Plan. 

(a)    Retention of Directors’ DCP Liabilities. Merck shall retain all of the Liabilities under the Merck
Directors’ DCP following the Distribution Date. To the maximum extent permitted by Treasury Regulations Section 1.409A-1(h)(4), a member of the Merck Board who no longer serves on the Merck Board
immediately following the Distribution Date shall be considered to have undergone a “separation from service” for purposes of Code Section 409A and the Merck Directors’ DCP. 

(b)    Merck Directors’ DCP after Transfer Date. From and after the Distribution Date, each person who no
longer serves on the Merck Board, as of immediately following the Distribution Date, shall not accrue any additional benefits under the Merck Directors’ DCP. 

  
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 ARTICLE VII 

POST-DISTRIBUTION COVENANTS 

Section 7.01    Non-Hire;
Non-Solicit.. 
 (a)    To the fullest extent permitted by applicable Law,
from the Distribution Date through the first anniversary of the Distribution Date, Organon shall not, and shall cause the Organon Group not to, recruit, solicit or hire (whether as an employee, consultant, contractor or otherwise) any individual who
was an Employee of the Merck Group as of or within six months prior to the Distribution Date and who both (i) rejected any offer of employment made by the Organon Group in connection with the Separation and Distribution and (ii) received
severance payments in connection with the termination of their employment with the Merck Group, for a position that is the same as or similar to such previously rejected position. 

(b)    Organon specifically acknowledges and agrees that this provision does not impede the Organon Group from competing
in the marketplace or obtaining sufficient talent to effectively innovate, develop, grow, or sustain its business. 

(c)    The Parties further specifically acknowledge and agree that any remedy at law for any breach of this
Section 7.01 shall be inadequate and that in the event of any actual or threatened breach of this Section 7.01, the non-breaching party, in addition to any other relief available to it, shall be
entitled to temporary and permanent injunctive relief without the necessity of proving actual damage. 
 (d)    The
Parties specifically acknowledge and agree that an exception may be made to this provision at the sole discretion and with the written consent of Organon’s Chief Human Resources Officer. Any exception made shall not be used as precedent to
compel or allow any further exceptions. 
 ARTICLE VIII 

TAXES 

Section 8.01    Reporting, Withholding and Deductions. Unless otherwise provided under
this Agreement, the Party that has been allocated a Liability under this Agreement shall take responsibility for tax reporting and withholding (including paying any corresponding employer tax obligation and remitting both the employer taxes and the
withheld taxes) with respect to that Liability, and shall be entitled to claim the benefit of any corresponding tax deductions on an applicable income tax return. The Party with responsibility for reporting and withholding shall prepare all
associated Tax Returns (as defined in the Tax Matters Agreement) and shall be Liable and shall indemnify and hold harmless the other Party for any Taxes (as defined in the Tax Matters Agreement), including interest, penalties, additions to Tax, or
additional amounts in respect of Taxes. The Party responsible for preparing and filing the required Tax Returns shall be determined as set forth in Sections 3.1 and 3.3 of the Tax Matters Agreement, and each Party shall provide to the other Party
all information and assistance requested to fulfill the obligations set forth herein applying the standards set forth in Section 3.2 of the Tax Matters Agreement. 

For the avoidance of doubt, the allocation of Tax deductions in this Section 8.01 shall be taken into account for purposes of the
allocation of Tax Attributes under Section 2.10 of the Tax Matters Agreement and for purposes of all other provisions of the Tax Matters Agreement relating to Income Taxes, including Section 2.2 (Allocation of Income Taxes),
Section 2.6 (Determination of Tax Attributable to Merck Business and Organon Business), Section 2.9 (Carrybacks and Claims for Refund), and Article III (Tax Returns, Tax Contests, and Other Administrative Matters) of the Tax Matters
Agreement. 

  
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 (a)    Qualified Retirement Plans. Unless otherwise required by non-U.S. law, where applicable, Merck will report and withhold, as necessary, on distributions with respect to Liabilities it retains with respect to Merck Employees, Former Employees, and Organon Employees under
the Merck Pension Plan under Section 3.01 of this Agreement. Merck shall be entitled to claim the benefit of any tax deductions for amounts it contributes to the Merck Pension Plan. 

(b)    Nonqualified Retirement Plans. Unless otherwise required by non-U.S.
law, where applicable, Merck will report and withhold, as necessary, on Merck SERP and Merck DCP distributions with respect to Liabilities it retains under Sections 3.03 and 3.04(b) with respect to Merck Employees, Former Employees, and Organon
Employees. Merck shall be entitled to claim the benefit of any tax deductions with respect to the amounts paid under such plans. 

(c)    Health and Welfare Plans. Unless otherwise required by non-U.S. law,
where applicable, Merck shall be entitled to claim the benefit of any tax deductions with respect to amounts contributed to fund obligations to Transferred Employees and Former Employees under Section 5.01(d) under the Merck Retiree Health Care
Plan on the applicable income tax return. 
 (d)    Equity Compensation. Unless otherwise required by non-U.S. law, where applicable, Merck shall report and withhold on any Adjusted Merck Options, Adjusted Merck PSU Awards, and Adjusted Merck RSU Awards and Organon shall report and withhold on any Organon Options
and Organon RSU Awards. The entity that transfers its stock shall be entitled to claim the benefit of any tax deduction on any applicable income tax returns. 

(e)    Annual Bonus. Unless otherwise required by non-U.S. law, where
applicable, the 2021 annual bonuses paid to Transferred Employees by the Organon Group shall be reported and withheld upon by Organon. Organon shall be entitled to claim the benefit of any tax deduction of such payments on any applicable income tax
returns. 
 ARTICLE IX 

MISCELLANEOUS 

Section 9.01    Transfer of Records and Information. Merck shall transfer to Organon originals or copies of
employment records and information with respect to Transferred Employees that are reasonably required by Organon to enable Organon properly to carry out its obligations under this Agreement. Such transfer of records and information generally shall
occur as soon as administratively practicable on or after the Distribution Date (or, if later, the applicable Transfer Date) and shall in each case be required and shall occur only to the extent permitted by applicable local Law; provided
that it is understood and agreed that certain records required to effect the contemplated transfer of employment may be provided prior to the Transfer Date to the extent required by applicable local Law. Each Party will permit the other Party
reasonable access to Employee records and information, to the extent reasonably necessary for such accessing Party to carry out its obligations hereunder. 

  
 30 

 Section 9.02    Cooperation. Each Party shall upon
reasonable request provide the other Party and the other Party’s respective Affiliates, agents, and vendors all information reasonably necessary to the other Party’s performance of its obligations hereunder. The Parties agree to use their
respective best efforts and to cooperate with each other in order to carry out their obligations hereunder and to effectuate the terms of this Agreement. 

Section 9.03    Employee Agreements. Effective as of the applicable Transfer Date of each Transferred
Employee, or such earlier date as may be required by applicable Law, Merck and the applicable members of the Merck Group hereby assign to Organon or another member of the Organon Group, to the extent a Transferred Employee did not otherwise sign an
Employee Agreement to affect his or her transfer to and hiring by the Organon Group, each Employee Agreement entered into between a member of the Merck Group and any Organon Employee, and all rights and obligations thereunder; provided,
however, that Merck and the Merck Group shall retain all rights under each Employee Agreement to the extent that such rights are related to any continuing Liability of the Merck Group not assumed by Organon in connection with the Separation and
Distribution. 
 Section 9.04    Recoupment Assets. Effective as of the Distribution Date, the Merck Group
shall be entitled to all Employee Recoupment Assets in respect of Merck Retained Employees and all Former Employees. The Organon Group shall be entitled to all Employee Recoupment Assets in respect of Organon Employees, effective as of the
applicable Transfer Date. 
 Section 9.05    Compliance. The agreements and covenants of the Parties
hereunder shall at all times be subject to the requirements and limitations of applicable Law (including, for purposes of Article IV, local rules and customs relating to the treatment of pension plans) and collective bargaining, works council, or
other similar agreements. Where an agreement or covenant of a Party hereunder cannot be effected in compliance with applicable Law or an applicable collective bargaining, works council, or other similar agreement, the Parties agree to negotiate in
good faith to modify such agreement or covenant to the least extent possible in keeping with the original agreement or covenant in order to comply with applicable Law or such applicable collective bargaining agreement. Each provision of this
Agreement is subject to and qualified by this Section 9.05, whether or not such provision expressly states that it is subject to or limited by applicable Law or by applicable collective bargaining, works council, or other similar
agreements. Each reference to the Code, ERISA, or the Securities Act or any other Law shall be deemed to include the rules, regulations, and guidance issued thereunder. 

Section 9.06    Preservation of Rights. Unless expressly provided otherwise in this Agreement, nothing herein
shall be construed as a limitation on the right of the Merck Group or the Organon Group to (a) amend, modify or terminate any Benefit Plan or (b) terminate the employment of any Employee. 

Section 9.07    Reimbursement. The Parties acknowledge that the Merck Group, on the one hand, and the Organon
Group, on the other hand, may incur costs and expenses 

  
 31 

 
(including, without limitation, contributions to Benefit Plans and the payment of insurance premiums) which are, as set forth in this Agreement, the responsibility of the other Party.
Accordingly, the Parties agree to reimburse each other for Liabilities and obligations for which such Party is responsible, and shall provide such reimbursement reasonably promptly and in accordance with the terms of any agreement between the
Parties or their Affiliates expressly addressing such matters. 
 Section 9.08    Not a Change in Control.
The Parties acknowledge and agree that the transactions contemplated by the Separation and Distribution Agreement and this Agreement do not constitute a “change in control” or a “change of control” for purposes of any U.S.
Benefit Plan. 
 Section 9.09    Incorporation by Reference. The following sections of the Separation and
Distribution Agreement are hereby incorporated into this Agreement by reference: Section 10.01. Counterparts, Entire Agreement, Corporate Power, Facsimile or Electronic Signatures; Section 10.02. Governing Law; Section 10.03.
Assignability; Section 10.04. Third Party Beneficiaries; Section 10.05. Notices; Section 10.06. Severability; Section 10.07. Force Majeure; Section 10.08. No Set Off; Section 10.09. Responsibility for Expenses;
Section 10.10. Headings; Section 10.11. Survival of Covenants; Section 10.12. Subsidiaries and Employees; Section 10.13. Waivers; Section 10.14. Amendments; Section 10.15. Interpretation; Section 10.16. Public
Announcements; Section 10.17. Specific Performance; and Section 10.18. Mutual Drafting. 

Section 9.10    Limitation on Enforcement. This Agreement is an agreement solely between the Parties. Nothing
in this Agreement, whether express or implied, shall be construed to: (a) confer upon any current or former Employee of the Merck Group or the Organon Group, or any other person any rights or remedies, including, but not limited to any right to
(i) employment or recall; (ii) continued employment or continued service for any specified period; or (iii) claim any particular compensation, benefit or aggregation of benefits, of any kind or nature; or (b) create, modify, or
amend any Benefit Plan. 
 Section 9.11    Further Assurances and Consents. In addition to the actions
specifically provided for elsewhere in this Agreement, each of the Parties hereto shall use commercially reasonable efforts to (a) execute and deliver such further instruments and documents and take such other actions as the other party may
reasonably request to effectuate the purposes of this Agreement and carry out the terms hereof; (b) take, or cause to be taken, all actions, and do, or cause to be done, all things, reasonably necessary, proper or advisable under applicable
Laws and agreements or otherwise to consummate and make effective the transactions contemplated by this Agreement, including, without limitation, using commercially reasonable efforts to obtain any consents and approvals and to make any filings and
applications necessary or desirable to consummate the transactions contemplated by this Agreement; provided that no Party shall be obligated to pay any consideration therefor (except for filing fees and other similar charges) to any third
party from whom those consents, approvals and amendments are required or to take any action or omit to take any action if the taking of action or the omission to take action would be unreasonably burdensome to the Party or the business thereof. 

  
 32 

 Section 9.12    Third Party Consent. If the obligation of
any Party under this Agreement depends on the consent of a third party, such as a vendor or insurance company, and that consent is withheld, the Parties shall use commercially reasonable efforts to implement the applicable provisions of this
Agreement to the fullest extent practicable. If any provision of this Agreement cannot be implemented due to the failure of a third party to consent, the Parties shall negotiate in good faith to implement the provision in a mutually satisfactory
manner, taking into account the original purposes of the provision in light of the Spin-Off and communications to affected individuals. 

Section 9.13    Effect if Distribution Does Not Occur. If the Spin-Off
does not occur, then all actions and events that are to be taken under this Agreement, or otherwise in connection with the Distribution, shall not be taken or occur, except to the extent specifically provided by Merck. 

Section 9.14    Disputes. The Parties agree to use commercially reasonable efforts to resolve in an amicable
manner any and all controversies, disputes and claims between them arising out of or related in any way to this Agreement. The Parties agree that any controversy, dispute or claim (whether arising in contract, tort or otherwise) arising out of or
related in any way to this Agreement that cannot be amicably resolved informally will be resolved pursuant to the dispute resolution procedures set forth in Article VIII of the Separation and Distribution Agreement. 

[SIGNATURE PAGE FOLLOWS] 

  
 33 

 The Parties have caused this Agreement to be signed by their authorized representatives as
of the date of this Agreement. 
  

			
	Merck & Co., Inc.
		
	By:	 	 /s/ Robert Davis

	Title:	 	President
	
	Organon & Co.
		
	By:	 	 /s/ Kevin Ali

	Title:	 	Chief Executive Officer

  
 [Signature Page to
Employee Matters Agreement]

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