Document:

Important Information on the Separation Program

 EXHIBIT 10.32 
 IMPORTANT INFORMATION ON THE SEPARATION PROGRAM 
 APPLICABLE TO LEGACY
MERCK 
 “BRIDGE-ELIGIBLE EMPLOYEES” 
 This Brochure applies to “Legacy Merck Employees” as defined in the Merck & Co., Inc. US Separation Benefits Plan (the “Separation Benefits Plan”) who Experience a
“Termination due to Workforce Restructuring” (as defined in the Separation Benefits Plan): 
 (1) on or after January 1,
2012 but before January 1, 2013 and who as of their Separation Date, are 
  

	 	•	 	 at least age 49 and have at least 9 years of Credited Service; or 

 

	 	•	 	 at least age 64 years and have less than 9 years of Credited Service; and 

 

	 	•	 	 who, on their Separation Date, are not at least age 55 with at least 10 years of Credited Service or at least age 65*; or

 (2) on or after January 1, 2013 and who, as of December 31 of the year in which their Separation Date
occurs, are 
  

	 	•	 	 at least age 50 and have at least 10 years of Credited Service; or 

 

	 	•	 	 at least age 64 and have less than 10 years of Credited Service; and 

 

	 	•	 	 who, on their Separation Date, are not at least age 55 with at least 10 years of Credited Service or at least age 65*.

  

	*	For those who on their Separation Date are either at least age 65 regardless of length of Credited Service or at least age 55 with at least 10 years of Credited
Service, see the brochure applicable to “Separated Retirement Eligible Employees”. 

 Note: “Bridge-Eligible
Employees” are not eligible for retiree healthcare unless they meet the age and service requirements to be “Retiree Healthcare Bridge Eligible” (see the glossary contained in this Brochure). 

This Brochure does not apply to Legacy Merck Employees who are “Separated Employees,” “Separated Retirement Eligible Employees,”
or “Rebadged Employees” as those terms are defined in the brochures applicable to those groups. If you are a Legacy Merck Employee who is a “Separated Employee,” “Separated Retirement Eligible Employee,” or
“Rebadged Employee,” see the brochure that applies to you. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 

  
 

 
 Effective Date: As of January 1, 2012 

  
 Bridge-Eligible Employees

 Effective as of November 1, 2005 
 2 

 Table Of Contents 

 

					
	 Brochure Overview
	  	 	3	  
		
	 Separation Program Overview
	  	 	4	  
		
	 Retirement Plan—Pension Bridge
	  	 	5	  
	 •        “Terminated Vested”—If You Do Not Sign the Separation
Letter
	  	 	5	  
	 •        Separation Program—Pension Bridge—If You Sign the
Separation Letter
	  	 	6	  
		
	 Medical (including Prescription Drug) and Dental
	  	 	9	  
	 •        Medical (including Prescription Drug) and Dental—If You Do Not Sign
the Separation Letter
	  	 	9	  
	 •        Separation Program—Medical (including Prescription Drug) and
Dental—If You Sign the Separation Letter
	  	 	9	  
	 •        If You Are Retiree Healthcare Bridge Eligible on Your Separation
Date
	  	 	10	  
	 •        Merck Retiree Healthcare Benefits—In General
	  	 	11	  
	 •        Coordination with Medicare
	  	 	12	  
		
	 Life Insurance
	  	 	13	  
	 •        Basic Life Insurance—If You Do Not Sign the Separation
Letter
	  	 	13	  
	 •        Separation Program—Basic Life Insurance—If You Sign the
Separation Letter
	  	 	13	  
	 •        AD&D, Optional Group Life and Dependent Life
	  	 	13	  
		
	 Health and Life Insurance Benefits Overview Chart
	  	 	14	  
		
	 Stock Options, Restricted Stock Units and Performance Stock Units
	  	 	15	  
	 •        If You Do Not Sign the Separation Letter—“Separated” or
“Involuntarily Terminated” for Purposes of Stock Options, RSUs and PSUs
	  	 	15	  
	 •        Stock Options (separation/sale/involuntary termination
terms)
	  	 	15	  
	 •        RSUs (separation/sale/involuntary termination terms)
	  	 	16	  
	 •        PSUs (separation/sale/involuntary termination terms)
	  	 	17	  
	 •        Separation Program—If You Sign the Separation
Letter—“Retired” for Purposes of Stock Options, RSUs and PSUs
	  	 	18	  
	 •        Stock Options (retirement terms)
	  	 	18	  
	 •        RSUs (retirement terms)
	  	 	19	  
	 •        PSUs (retirement terms)
	  	 	19	  
	 Annual Incentive Program/Executive Incentive Program (“AIP/EIP”)
	  	 	19	  
	 •        Separation Program—If Your Separation Date Occurs On or After
July 1 And On Or Before December 31
	  	 	20	  
		
	 Other Benefits And Programs
	  	 	21	  
	 •        Business Travel Accident
	  	 	21	  
	 •        Dependent Care Flexible Spending Account
	  	 	21	  
	 •        Group Auto & Homeowners Insurance
	  	 	21	  

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 1 

					
	 •        Group Legal Plan
	  	 	21	  
	 •        Health and Insurance Benefits
	  	 	21	  
	 •        Health Care Flexible Spending Account
	  	 	22	  
	 •        Long Term Care
	  	 	22	  
	 •        Long Term Disability
	  	 	22	  
	 •        Merck Deferral Program
	  	 	23	  
	 •        Sales Incentive Plan
	  	 	23	  
	 •        Savings Plan
	  	 	23	  
	 •        Short Term Disability
	  	 	24	  
	 •        Vacation Pay/Floating Holidays
	  	 	24	  
	 •        Vision
	  	 	24	  
		
	 Other Important Information
	  	 	25	  
		
	 Glossary of Definitions
	  	 	26	  

 Note: Capitalized Terms used in this Brochure are generally defined in the Glossary of Definitions. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 2 

 Brochure Overview 
 This Brochure summarizes the benefits for which a “Bridge-Eligible Employee” may be eligible under Merck’s Separation Program and other employee benefit plans and programs of
Merck & Co., Inc. and its subsidiaries. Unless otherwise noted, it is not an official plan document. The terms and conditions of Merck’s employee benefit plans and programs applicable on an employee’s termination of employment
from the Employer are as described in the official plan documents, including applicable summary plan descriptions (“SPDs”) and applicable summaries of material modification, in each case previously provided to you or provided to you with
this Brochure, as such plans and programs (and the applicable SPDs) may be amended from time to time. A copy of the applicable SPDs and applicable summaries of material modification can be obtained on line at
http://one.merck.com/sites/sa/en-us/Pages/USMerckSummaryPlanDescriptions.aspx or by calling the Merck Benefits Service Center at Fidelity at 800-666-3725. Unless otherwise noted below, to the extent the information in this Brochure differs from the
official plan documents, the official plan documents will control. 
 “Bridge-Eligible Employees” are “Legacy Merck
Employees” (as defined in the Separation Benefits Plan) who experience a “Termination due to Workforce Restructuring” (as defined in the Separation Benefits Plan): 
 (1) on or after January 1, 2012 but before January 1, 2013 and who as of their Separation Date, are 
  

	 	•	 	 at least age 49 and have at least 9 years of Credited Service; or 

 

	 	•	 	 at least age 64 years and have less than 9 years of Credited Service; and 

 

	 	•	 	 who, on their Separation Date, are not at least age 55 with at least 10 years of Credited Service or at least age 65; or 

(2) on or after January 1, 2013 and who, as of December 31 of the year in which their Separation Date occurs, are 

 

	 	•	 	 at least age 50 and have at least 10 years of Credited Service; or 

 

	 	•	 	 at least age 64 and have less than 10 years of Credited Service; and 

 

	 	•	 	 who, on their Separation Date, are not at least age 55 with at least 10 years of Credited Service or at least age 65. 

Bridge-Eligible Employees are only those employees who are designated by the Employer or the Parent as “Bridge-Eligible Employees.”
“Bridge-Eligible Employees” do not include employees who terminate employment in any way that does not constitute a Termination due to Workforce Restructuring as determined in accordance with the terms of the Separation Benefits Plan,
including employees who resign for any reason. Benefits described in this Brochure only apply to Bridge-Eligible Employees and do not apply to any other employees of Merck or its subsidiaries or affiliates, including the Employer. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 3 

 If you have been designated as a Bridge-Eligible Employee, the Employer or Parent will provide you with the
Separation Letter. In order to receive the benefits under the Separation Program for which a release of claims is required, you must sign and return the Separation Letter by the date stated in the letter (the “Separation Letter Return
Date”). 
 Bridge-Eligible Employees who sign, return and, if a revocation period is applicable, do not revoke the Separation Letter shall
be treated as retired under the Retirement Plan and referred to as “Bridged Employees.” 
 You are considered to have signed the
Separation Letter if you sign and return the Separation Letter by the Separation Letter Return Date and, if a revocation period is applicable to you, do not revoke the Separation Letter within the revocation period. You are considered to have not
signed the Separation Letter if you either (i) do not sign and return the Separation Letter by the Separation Letter Return Date, or (ii) sign and return the Separation Letter by the Separation Letter Return Date and, if a revocation
period is applicable to you, revoke the Separation Letter within the revocation period. 
 Separation Program Overview 

All benefits under the Separation Program applicable to Bridge-Eligible Employees are contingent upon the Bridge-Eligible Employee signing the Separation
Letter. They consist of: 
  

	 	•	 	 Separation Pay 

  

	 	•	 	 Outplacement Benefits 

  

	 	•	 	 Eligibility for continued medical, dental and Basic Life Insurance benefits 

 

	 	•	 	 Eligibility for a special payment in lieu of an AIP/EIP bonus for the performance year in which his or her Separation Date occurs if his or her
Separation Date occurs on or after July 1 and on or before December 31 of that performance year 

  

	 	•	 	 Eligibility for retiree healthcare for those who are Retiree Healthcare Bridge Eligible on their Separation Date 

 

	 	•	 	 A pro-rata portion of certain early retirement subsidies under the Retirement Plan, including the Social Security Bridge Transition Benefit and
treatment as a retiree under the Retirement Plan (“Pension Bridge”) 

  

	 	•	 	 Treatment as a retiree for purposes of unexercised stock options and restricted stock units and performance stock units 

Separation Pay, Outplacement Benefits and continued medical, dental and Basic Life Insurance benefits are described in the Separation Plan SPD
distributed with this Brochure. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 4 

 This Brochure describes: 
  

	 	•	 	 the benefits offered under the Separation Program that are not described in the Separation Plan SPD; 

 

	 	•	 	 the benefits for those Bridge-Eligible Employees who do not sign the Separation Letter; and 

 

	 	•	 	 the terms and conditions of certain Merck benefit plans and programs as they apply to Bridge-Eligible Employees without regard to whether they sign the
Separation Letter. 

 Retirement Plan—Pension Bridge 
 “Terminated Vested”—If You Do Not Sign the Separation Letter 
 By definition,
as of the Separation Date, Bridge-Eligible Employees are not eligible for early or normal retirement under the terms of the Retirement Plan. So, on your Separation Date, if you are not a Bridged Employee (one who has signed the Separation Letter)
and you have at least 5 years of Vesting Service (as that term is defined in the Retirement Plan), you will be a “terminated vested” participant in the Retirement Plan for all purposes and will stop accruing additional Credited Service (as
that term is defined in the Retirement Plan). This means that your employment will have terminated after you are vested and before you were eligible for early or normal retirement under the Retirement Plan (generally, at least age 55 with at least
10 years of Credited Service, or at least age 65 without regard to years of service). If you are less than 65 and your employment terminates before you have at least 5 years of Vesting Service, you are not vested and have no entitlement under the
Retirement Plan; you are not considered “terminated vested.” 
 If you are a “terminated vested” participant, your benefits
under the Retirement Plan must begin no later than the first day of the month following age 65. However, you can start receiving a reduced lump sum or monthly benefit payment on the first day of any month after you reach age 55. Your lump sum
or monthly benefit payment will be reduced to reflect early payment of your benefits. The early payment reduction for a “terminated vested” participant is an “actuarial” reduction. That is, your life expectancy and certain other
actuarial assumptions are used in calculating the reduction amount for each year prior to age 65 that the benefits begin. You should expect this to reduce your lump sum or monthly payments substantially because by commencing your benefit early, you
receive benefits earlier and for a longer period. A table illustrating examples of actuarial reductions from the age 65 benefit and a more detailed explanation of the benefits for “terminated vested” participants can be found in the SPD
(and applicable summaries of material modification) for the Retirement Plan. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 5 

 After you leave the Employer, if you are entitled to a vested benefit from the Retirement Plan, you’ll
receive a statement that will tell you what your monthly life income payment will be at age 65. This will be sent to you within approximately one year from your Separation Date. If any portion of your benefit is from a different plan, such as the
Retirement Plan for Hourly Employees of MSD, there is an offset which reduces the benefit from the Retirement Plan. The aggregate lump sum benefit payable from two different plans generally differs slightly from a lump sum payable from only one plan
(especially if different interest rate methodologies apply). 
 Payments not Compensation for Retirement Plan. Separation Pay is not
compensation for Retirement Plan purposes. A bonus or the special payment, if any, in lieu of an AIP/EIP bonus paid after your Separation Date is also not compensation for Retirement Plan purposes. 

Separation Program—Pension Bridge—If You Sign the Separation Letter 

For Retirement Plan purposes, as a Bridged Employee (one who has signed the Separation Letter), you will be considered to have retired
from active service with the Employer on your Separation Date and will be entitled to a pro-rata portion of your early retirement subsidies. For those who are not yet 55, you will be considered to have a “deferred” pension on the terms
described below. A “deferred” pension benefit is payable no earlier than the first of the month following the participant’s 55th birthday. 

Early Retirement Subsidy. Your benefit from the Retirement Plan will be based on the Credited Service accrued as of the Separation Date and will
be payable at age 65; however, you can begin to receive your lump sum or monthly benefit payment on the first day of any month after you reach age 55. If you commence your lump sum or monthly benefit payment at or after age 55 but before age 62, the
benefit will still be reduced. The amount of the reduction is less than the actuarial reduction that applies to “terminated vested” participants and more than the reduction that applies to early retirees who are not Bridged Employees.

 The Retirement Plan provides that the benefits for early retirees are reduced by 0.25% for each month (i.e., 3% for each year) that they
begin before age 62. Bridged Employees receive a pro-rata portion (the “Pro-Rata Fraction”) of the enhancement provided by the early retirement subsidies. The Pro-Rata Fraction equals the percentage of the employee’s Credited Service
on his/her Separation Date divided by the Credited Service that employee would have had if employment had continued until he/she was first eligible to be treated as an early retiree. For purposes of this fraction, Credited Service is limited to 35
years for both Credited Service at separation and the Credited Service had employment continued to his/her first day of eligibility for treatment as an early retiree. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 6 

 For example, assume an employee’s Separation Date occurs in 2012 and he is 50 years old with 10 years
of Credited Service on his Separation Date. He would have been first eligible to be treated as an early retiree when he attained age 55, when he would have had 15 years of Credited Service. The Pro-Rata Fraction in this example would be 10/15.

 To calculate the benefit that will be paid, the formula is 
  

	 	•	 	 Pro-Rata Fraction TIMES the participant’s accrued benefit as of the Separation Date payable with early retirement subsidies

  

	 	•	 	 PLUS (1 MINUS the Pro-Rata Fraction) TIMES the participant’s accrued benefit at Separation Date actuarially reduced for early commencement

 Here’s an example of how this formula will work. Assume an employee is 52 years old at separation with 23 years of
Credited Service. His earliest retirement age will be 55, at which time he would have had 26 years of Credited Service, so his Pro-Rata Fraction is 23/26, or 88.46%. Assume his accrued benefit—that is, the age 65 annuity payment paid every
month for the rest of his life—is $1,000. If he receives his pension at age 55, as an early retiree he would receive $790. As a terminated vested participant, he would receive $340. 
 Under the formula, he would receive $738.07 per month beginning, at age 55 calculated as follows: 
  

					
	 88.46% Times $790 =
	  	$	698.83	  
	 Plus
	  			
	 (1-88.46% = 11.54%) Times $340 =
	  	$	39.24	  
		  	  
	  
	 
	 Equals
	  			
	 Total:
	  	$	738.07	  

 The $738.07 monthly annuity value could be converted into any of the forms of benefit available under the Retirement
Plan. 
 Social Security Bridge Transition Benefit. Bridged Employees also may be eligible for the Social Security Bridge Transition
Benefit under the Separation Program. The Social Security Bridge Transition Benefit is fully described in the SPD (and applicable summaries of material modification) for the Retirement Plan. In general, the Social Security Bridge Transition Benefit
reduces the offset for Social Security Benefits under the Retirement Plan by providing a temporary monthly supplement prior to age 62. The benefit was eliminated in July 1995 but was preserved for employees then at least age 50, with 90% preserved
for employees then 49, 80% for employees then 48, etc. The benefit was not preserved for employees then 40 or younger. 
 Death of a Bridged
Employee. If you die after you sign the Separation Letter but before you begin to receive your benefits from the Retirement Plan, your spouse (or estate in the case of any unmarried participant) will receive an annuity or a lump sum. If you die
before age 55, you will be eligible for the Social Security 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 7 

 
Bridge Transition Benefit. If you were eligible for the Rule of 85 Transition Benefit on your Separation Date, you will not be eligible for this benefit if you die before you reach age 55. The
Pro-Rata Fraction described above would be applied as described above. The benefit is calculated as though you had elected a joint and 50% survivor annuity with your spouse (if you’re unmarried, as though you had a spouse the same age as you)
on the day before you died. The lump sum is the actuarial equivalent of just the 50% survivor portion of the benefit—that is, taking into account your death. The annuity or lump sum is payable only after your spouse (or administrator of your
estate) applies for the benefit. Bridged Employees under the Separation Program will not be charged for the qualified pre-retirement spousal annuity fully described in the SPD (and applicable summaries of material modification) for the Retirement
Plan. 
 Other Information. Except as described here, you will be treated as a terminated vested participant for Retirement Plan
purposes. For example, you may not receive a “disability retirement” as discussed in the SPD (and applicable summaries of material modification) for the Retirement Plan. 
 The special provisions in the Retirement Plan regarding Bridged Employees are subject to certain discrimination tests under tax laws. Our actuaries have reviewed data on a preliminary basis and concluded
that these special provisions satisfy those tests under most scenarios. However, if the provisions in practice happen to fail the tests, the benefits described here will be paid, to the extent necessary, from company assets outside the Retirement
Plan. Benefits from the Retirement Plan have tax advantages that payments outside it do not. You will be notified as soon as possible if this provision affects you. 
 After you leave the Employer, if you are entitled to a vested benefit from the Retirement Plan, you’ll receive a statement that will tell you what your monthly life income payment will be at age 65.
This will be sent to you within approximately one year from your Separation Date. If any portion of your benefit is from a different plan, such as the Retirement Plan for Hourly Employees of MSD, there is an offset which reduces the benefit from the
Retirement Plan. The aggregate lump sum benefit payable from two different plans generally differs slightly from a lump sum payable from only one plan (especially if different interest rate methodologies apply). 

Payments not Compensation for Retirement Plan. Separation Pay is not compensation for Retirement Plan purposes. A bonus or the special payment, if
any, in lieu of an AIP/EIP bonus paid after your Separation Date is also not compensation for Retirement Plan purposes. 
 Split
Election. Bridged Employees whose pension benefits are payable in part from the Supplemental Retirement Plan who wish to make an election with respect to the retirement benefits under that plan should do so in accordance

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 8 

 
with that plan by contacting the Support Center at 866-MERCK-HD (866-637-2543) to request the appropriate paperwork if eligible. 
 Official Plan Document. To the extent this section describes eligibility for the Pension Bridge, including the Social Security Bridge Transition Benefit, it constitutes a summary of material
modification to the SPD for the Retirement Plan and should be kept with that document. 
 Medical (including Prescription Drug) and Dental

 Medical (including Prescription Drug) and Dental – If You Do Not Sign the Separation Letter 

If you don’t sign the Separation Letter your medical and dental coverage will continue until the end of the month in which your Separation Date
occurs. You will be eligible to elect to continue your coverage in accordance with COBRA for up to 18 months from the first day of the month coincident with or following your Separation Date, just like any other employee whose employment ends. If
you have no medical and/or dental coverage under Merck’s plans on your Separation Date, you will not be eligible to elect such coverage under COBRA. 
 Separation Program—Medical (including Prescription Drug) and Dental – If You Sign the Separation Letter 
 If you sign the Separation Letter you will be eligible to continue medical and dental coverage under Merck’s plans (as they may be amended from time to time) in accordance with COBRA as described in
the section above, however, you will be eligible to pay a subsidized COBRA rate equal to the contribution rates applicable to active employees as they may change from time to time for your Benefits Continuation Period. Your Benefits Continuation
Period starts on the first day of the COBRA continuation period and continues for a period of up to 18 months. The length of your Benefits Continuation Period is based on your complete years of continuous service on your Separation Date. Please note
that you will receive a letter from the Merck Benefits Service Center regarding your eligibility to elect continuation coverage under COBRA. That letter will reflect the full COBRA rate—not the subsidized rate. You must elect to continue
coverage under COBRA in accordance with the instructions contained in that letter in order to be eligible for continuation coverage at the subsidized rates. See the Separation Plan SPD for more information. Also note that you can terminate your
active medical and/or dental coverage during your Benefits Continuation Period but you cannot re-enroll in that coverage thereafter. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 9 

 If You Are Retiree Healthcare Bridge Eligible on Your Separation Date 

If you are Retiree Healthcare Bridge Eligible and you sign the Separation Letter you are eligible to continue your medical and dental coverage through
COBRA at the subsidized COBRA rates equal to the contribution rates applicable to active employees as they may change form time to time for the duration of your Benefits Continuation Period. At the end of your Benefits Continuation Period, you are
eligible to participate in retiree medical and dental benefits at subsidized retiree rates applicable to similarly situated retirees. 
 You
cannot commence retiree medical or retiree dental benefits before the end of the Benefits Continuation Period, however, you can waive your Benefits Continuation Period as of your Separation Date or in limited circumstances you may elect to end that
period early and elect retiree benefits instead. Also note that you can terminate your medical and/or dental coverage during your Benefits Continuation Period without waiving your Benefits Continuation Period and you will still be eligible to elect
retiree medical and dental coverage at the end of your Benefits Continuation Period. For information, see the Separation Plan SPD. 
 If you are
Retiree Healthcare Bridge Eligible and you sign the Separation Letter but you are not eligible for medical and/or dental benefit continuation as of your Separation Date under the Separation Benefits Plan (e.g., you had no active coverage on your
Separation Date or you failed to timely elect and pay for continuation coverage under COBRA), you are not eligible to continue such coverage under COBRA through your Benefits Continuation Period. Instead, you will be eligible to enroll in retiree
medical and dental benefits at the end of your Benefits Continuation Period or as of your Separation Date if you elect to waive your Benefits Continuation Period. If you elect to end your Benefits Continuation Period early, you can enroll in retiree
medical and dental coverage during annual enrollment (for coverage effective the following January 1) or mid-year if you have a life event (e.g., you lose coverage elsewhere) and you contact the Merck Benefit Service Center within 30 days of
the event. 
 If you elect to waive or end your Benefits Continuation Period early, you are electing to permanently and irrevocably forfeit your
right to active medical and dental (and Basic Life Insurance) continuation for which you would have otherwise been eligible during that period. See the Separation Plan SPD for information on the limited circumstances that permit you to end your
Benefits Continuation Period early. 
 Retiree medical and dental eligibility provided under the Separation Program for those who are Retiree
Healthcare Bridge Eligible is subject to the same forfeiture provision described in the Separation Plan SPD. The forfeiture provision will apply for the period during which Separation Pay would have been paid had it been paid in installments in
accordance with the Employer’s normal payroll 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 10 

 
practices, however, if the forfeiture provision applies during that period, you will be permanently ineligible for retiree healthcare benefits. 

Official Plan Document. To the extent this section describes eligibility for retiree healthcare for those who are Retiree Healthcare Bridge
Eligible, it constitutes a summary of material modification to the medical and dental sections of the Merck SPD for Legacy Merck Retirees and should be kept with that document. 
 Merck Retiree Healthcare Benefits—in General 
 This section only applies to you if you
are Retiree Healthcare Bridge Eligible and you sign the Separation Letter. 
 If you are Retiree Healthcare Bridge Eligible, the date on which
your retiree healthcare benefits begin as described above is the “Retiree Healthcare Commencement Date”. 
 You will be automatically
enrolled in retiree medical and dental coverage as of your Retiree Healthcare Commencement Date. If you do not have medical and/or dental coverage on the last day of your Benefits Continuation Period, you will be enrolled in the no coverage retiree
option. If you have medical and/or dental coverage on the last day of your Benefits Continuation Period, you will be enrolled in retiree dental and medical coverage under the same coverage option in which you were enrolled on the day before your
Retiree Healthcare Commencement Date, provided that coverage option is available to you as a retiree. If that coverage option is not available, you will be automatically enrolled in the plan’s default option. Coverage under your retiree medical
and dental coverage will also automatically continue for your eligible dependents who were enrolled under the applicable plans on the day before your Retiree Healthcare Commencement Date provided they are eligible for coverage. 

You are permitted to add eligible dependents or drop covered dependents and/or change medical and/or dental coverage options retroactive to your Retiree
Healthcare Commencement Date only if you notify the Merck Benefits Service Center of such change(s) within 30 days after your Retiree Healthcare Commencement Date. Thereafter, any permitted changes will only be made prospectively during annual
enrollment (for coverage effective the following January 1) or mid-year if you experience a life event and you notify the Merck Benefits Service Center within 30 days of the event. 
 You can “opt-out” of retiree medical and/or dental coverage at any time, but note that your ability to re-enroll for coverage is generally limited to annual open enrollment (with the following
January 1 as the re-enrollment effective date); mid-year enrollment is available only if you have a life event that permits you to enroll in coverage and you contact the Merck Benefit Service Center to re-enroll in Merck retiree coverage within
30 days of the date of the life event. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 11 

 You must pay the applicable contributions for retiree healthcare coverage beginning on your Retiree
Healthcare Commencement Date. You will receive an invoice from the Merck Benefit Service Center that indicates the contribution due for your retiree healthcare coverage. If you fail to pay the contribution required for retiree healthcare coverage in
the time and manner specified on the invoice, you will be deemed to have opted out of coverage and your ability to re-enroll is limited as described above. You may want to consider enrolling in the automatic payment option available through the
Merck Benefits Service Center at Fidelity. Contact the Merck Benefits Service Center at Fidelity at 800-666-3725 for additional information. 

For purposes of determining retiree medical contributions, a Bridged Employee who is Retiree Healthcare Bridge Eligible 

 

	 	•	 	 will have the number of points that is the sum of his/her age and years of adjusted service as recorded on the Employer’s records (from age 40 for
those subject to the “Rule of 88”; all adjusted service for those subject to the “Rule of 92”) as of his/her Separation Date; and 

  

	 	•	 	 will pay premiums for medical coverage in accordance with the premium schedule for the “Rule of 92” or the “Rule of 88”, as
applicable, in effect on his/her Retiree Healthcare Commencement Date, as the premium schedule may be amended from time to time. 

 To determine whether the “Rule of 92” or the “Rule of 88” applies to you and to see the contributions applicable to those schedules, see About Me on Sync. 

For retiree dental coverage you will pay a flat dollar contribution in accordance with the contribution schedule for retiree dental coverage in effect on
your Retiree Healthcare Commencement Date, as that contribution schedule may be amended from time to time. For the contribution schedule applicable to retiree dental coverage, see About Me on Sync. 

You cannot be covered as an active employee for medical and/or dental and or through COBRA and/or Basic Life Insurance and as a retiree (even under the
no coverage option) for Merck healthcare coverage during the same period. 
 Coordination with Medicare 

An individual is generally eligible for Medicare if he or she is at least age 65 or has been entitled to Social Security disability benefits for at least
24 months. If you or your dependents are eligible for Medicare on your Separation Date or become eligible for Medicare during the period for which you are covered under COBRA at subsidized or non-subsidized rates or thereafter if eligible as a
retiree, the Merck medical plan under which you are covered will coordinate with Medicare. That means that Medicare will be primary and the Merck medical plan 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 12 

 
will be secondary. You or your dependents, as applicable, must enroll in Medicare immediately when first eligible for Medicare. When coordinating with Medicare, the Merck medical plans assume
that you and your dependents are covered by Medicare as of the first date you or your dependents, as applicable, are eligible to be covered under Medicare—whether or not the individual is actually covered. If you and your dependents do not
enroll in Medicare when first eligible you will experience a gap in coverage and you may be obligated to pay a late enrollment penalty to Medicare for Medicare when you do enroll. For information on eligibility for and enrollment in Medicare
visit your local Social Security Administration office or contact the Social Security Administration online at www.ssa.gov or by phone at 800-772-1213. 
 Life Insurance 
 Basic Life Insurance—If You Do Not Sign the Separation Letter

 If you do not sign the Separation Letter, your Basic Life Insurance will continue for 31 days after your Separation Date. During this
31-day period you may elect to convert this coverage to an individual policy with Prudential, subject to certain limitations. Contact the Merck Benefits Service Center (800-666-3725) or Prudential (877-370-4778) for more information. 

Separation Program—Basic Life Insurance—If You Sign the Separation Letter 
 If you sign the Separation Letter, your Basic Life Insurance will continue at no cost to you under Merck’s life insurance plan (as it may be amended from time to time) during your Benefits
Continuation Period as more fully described in the Separation Plan SPD. You are responsible for paying applicable tax on imputed income, if any, for Basic Life Insurance coverage during your Benefits Continuation Period. Note that you may elect to
waive or end your Benefit Continuation Period early under limited circumstances but if you do the Basic Life Insurance (and any medical and/or dental benefit) continuation for which you would have otherwise been eligible during that period will be
permanently and irrevocably forfeited. See the Separation Plan SPD for information on the limited circumstances that permit you to waive or end your Benefits Continuation Period early. 
 AD&D, Optional Group Life and Dependent Life Insurance 
 Whether or not you sign the
Separation Letter, your accidental death and dismemberment coverage will end as of your Separation Date and your optional group term life insurance and dependent life insurance will continue for 31 days after your Separation Date. During this 31-day
period you may elect to convert or port your optional group term life and/or dependent life coverage to an individual policy with Prudential, subject to certain limitations. Contact the Merck 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 13 

 
Benefits Service Center (800-666-3725) or Prudential (877-370-4778) for more information. 

Health and Life Insurance Benefits Overview Chart 
 The chart below is provided for your convenience to compare the medical, dental and Basic Life Insurance benefits offered under the Separation Program to the normal plan provisions. It assumes you are
eligible for medical and dental continuation under COBRA, that you sign the Separation Letter and that you timely pay the required contributions to continue coverage. 
  

					
	  	  	 Regular Plan Provisions
	  	 Separation Program

	Medical (including Prescription Drug) and, Dental	  	Benefits continue to the end of the month in which your Separation Date occurs; eligible for COBRA afterward for up to 18 months at full COBRA rate	  	 Benefits continue to end of month in which your Separation Date occurs; eligible for COBRA afterwards for up to 18 months as
follows:
  
 Provided you elect to continue benefits under
COBRA,
  
 Medical and Dental benefits at subsidized rates equal to
active employee rates continue for the duration of your Benefits Continuation Period;
  
 Thereafter
  

If not Retiree Healthcare Bridge Eligible—continue medical and/or dental benefits for remaining COBRA period, if any, at full COBRA
rate;
  
 If Retiree Healthcare Bridge Eligible—begin
participation in retiree medical and dental benefits w/applicable retiree contributions

			
	Basic Life Insurance	  	 Coverage equal to 1x base pay continues for 31 days after Separation Date.

 
 You may be eligible to convert to an individual policy with Prudential during the
31-day period.
	  	 Coverage equal to 1x base pay continues at no cost to you for the duration of your Benefits Continuation Period.

 
 You may be eligible to convert to an individual policy with Prudential during the
31-day period after coverage ends as described above.

		
	Optional Employee Group Term Life and Dependent Life	  	 Coverage at level in effect on your Separation Date continues for 31 days

 
 You may be eligible to convert or port to an individual policy with Prudential
during the 31-day period.

			
	AD&D	  	No coverage	  	No coverage

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 14 

 Stock Options, Restricted Stock Units and Performance Stock Units 

Only employees may receive incentives under Merck’s incentive stock plans, including stock options, restricted stock units (“RSUs”) or
performance stock units (“PSUs”); therefore, you will not be eligible to receive any grants after your Separation Date. 
 If You
Do Not Sign the Separation Letter – “Separated” or “Involuntarily Terminated” for Purposes of Stock Options, RSUs and PSUs 
 Under Merck’s incentive stock plans, stock options, RSUs and PSUs held by a U.S. employee whose employment ends are treated under the provisions of the grants applicable to retirement only if the
employee is considered a retiree under the Retirement Plan. Bridge-Eligible Employees who do not sign the Separation Letter are not considered retirees under the Retirement Plan. Therefore, if you do not sign the Separation Letter (or, if a
revocation period is applicable to you, you revoke the Separation Letter), the separation provisions (not the retirement provisions) applicable to stock options, RSUs and PSUs will apply to any outstanding incentives granted to you prior to 2010
that you hold on your Separation Date and the sale/involuntary termination provisions (not the retirement provisions) applicable to stock options, RSUs and PSUs will apply to any outstanding incentives granted to you in 2010 and thereafter that you
hold on your Separation Date. Provisions may differ based on the grants. IT IS YOUR RESPONSIBILITY TO FAMILIARIZE YOURSELF WITH THE TERMS OF INDIVIDUAL GRANTS. 
 Stock Options (separation/sale/involuntary termination terms) 
 Generally, for outstanding
annual and quarterly stock option grants made in 2001 through 2009, the separation terms are: 
 Unvested options will vest on
the Separation Date. You will then have two years to exercise them and previously vested grants. All outstanding vested options—including those previously vested—will expire on the day before the second anniversary of your Separation Date
(or their original expiration date, if earlier). 
 Generally, for outstanding annual and quarterly stock option grants made in 2010 and
thereafter terms differ depending on whether your employment terminated due to the sale of your division or otherwise in an involuntary termination: 
  

	 	•	 	 If your employment is terminated due to the sale of your subsidiary, division or joint venture, options that would have become exercisable within one
year of your Separation Date will become exercisable on 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 15 

	 	 
your Separation Date and all others immediately expire. All unexercised options will expire on the day before the first anniversary of your Separation Date (or their original expiration date, if
earlier). 

  

	 	•	 	 If your employment terminates due to an other involuntary termination, options that are unvested on your Separation date will expire on your Separation
Date. Options that are exercisable on your Separation Date will expire on the day before the first anniversary of your Separation Date (or their original expiration date, if earlier). 

Key R&D, MRL and MMD new hire stock option grants, and other stock option grants may have different terms. See the term sheets applicable to such
stock option grants. 
 If on your Separation Date your then outstanding equity is treated as described above and you are rehired, 

 

	 	•	 	 stock options granted before 2010 that are unexercised and outstanding on your rehire date will be reinstated to active status as if your employment
had not been interrupted, and 

  

	 	•	 	 stock options granted during 2010 and thereafter that are unexercised and outstanding on your rehire date will continue to be treated as described
above. 

 RSUs (separation/sale/involuntary termination terms) 
 For RSUs granted before January 1, 2010, if you are treated as separated, a pro rata portion of your annual grants of restricted stock units, if any, generally will vest and become distributable at
the same time as if your employment had continued; the remainder of the grant will expire on your Separation Date. Different terms may apply to RSUs that were not granted as part of the annual RSU grants. See the term sheets applicable to RSUs
granted to you, if any. 
 For each annual and quarterly RSU grant made on or after January 1, 2010, terms differ depending on whether your
employment terminated due to the sale of your division or otherwise in an involuntary termination. 
 If your employment is terminated due to
the sale of your subsidiary, division or joint venture, the following portion of your RSU awards and accrued dividends, if any, will be distributed at the time distributed to active employees: one-third if your Separation Date is on or after the
grant date but before the first anniversary of the grant date; two-thirds if your Separation Date is on or after the first anniversary of the grant date but before the second anniversary of the grant date; and all if your Separation Date is on or
after the second anniversary of the grant date. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 16 

 If your employment terminates in an other involuntary termination and your Separation Date occurs

  

	 	•	 	 On or after the first anniversary of the RSU grant date, a pro rata portion of your RSU grant generally will vest and become distributable to you
(together with any applicable accrued dividend equivalents) at the same time as if your employment had continued; the remainder of the grant will expire on your Separation Date; or 

 

	 	•	 	 before the first anniversary of the RSU grant date, the entire grant (together with any applicable accrued dividend equivalents) will expire on your
Separation Date. 

 See the term sheets applicable to RSUs granted to you, if any. 

PSUs (separation/sale/involuntary termination terms) 
 PSUs granted January 1, 2009 vested or lapsed effective December 31, 2011. Payment, if any, will be made to you in accordance with the terms of the grant. See the term sheets applicable to PSUs
granted to you, if any. 
 For each PSU granted on or after January 1, 2010, terms differ depending on whether your employment terminated
due to the sale of your division or otherwise in an involuntary termination. 
 If your employment is terminated due to the sale of your
subsidiary, division or joint venture, the following portion of your PSU awards will be distributed at the time distributed to active employees, based on actual performance: one-third if your Separation Date is on or after the grant date but before
the first anniversary of the grant date; two-thirds if your Separation Date is on or after the first anniversary of the grant date but before the second anniversary of the grant date; and all if your Separation Date is on or after the second
anniversary of the grant date. 
 If your employment terminates in an other involuntary termination and your Separation Date occurs 

 

	 	•	 	 on or after the first anniversary of the PSU grant date, a pro rata portion of your PSU grant generally will vest and become distributable to you at
the same time as if your employment had continued and based on actual performance; the remainder of the grant will expire on your Separation Date; or 

  

	 	•	 	 before the first anniversary of the PSU grant date, the entire grant will expire on your Separation Date. 

See the term sheets applicable to PSUs granted to you, if any. 
 If you have any question about your stock options, restricted stock units or performance stock units, you can call The Support Center at 866-MERCK-HD (866-637-2543). 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 17 

 Separation Program—If You Sign the Separation Letter—“Retired” for Purposes of Stock
Options, RSUs and PSUs 
 Under Merck’s incentive stock plans, stock options, RSUs and PSUs held by a U.S. employee whose employment
ends are treated under the provisions of the grants applicable to retirement only if the employee is considered a retiree under the Retirement Plan. If you sign the Separation Letter you are considered a retiree under the Retirement Plan. Therefore,
if you sign the Separation Letter, the retirement provisions (not the separation provisions or the involuntary termination provisions) applicable to stock options, RSUs and PSUs will apply to any outstanding incentive you hold on your Separation
Date. The retirement provisions may differ based on the grants. IT IS YOUR RESPONSIBILITY TO FAMILIARIZE YOURSELF WITH THE TERMS OF INDIVIDUAL GRANTS. 
 Stock Options (retirement terms) 
 Generally, for outstanding annual and quarterly stock
option grants made in 2001 through 2009, the retirement provisions are: 
 Unvested options will vest on the original vesting
date and then be exercisable for the full term of the option, expiring on the original expiration date. Vested options will be exercisable for the remaining term of the option, expiring on the original expiration date. 

Generally, for outstanding annual and quarterly stock option grants made in 2010 and thereafter, the retirement provisions are: 

 

	 	•	 	 Unvested Options: 

  

	 	•	 	 If your Separation Date occurs before the 6-month anniversary of the option grant date, the options expire on your Separation Date; or

  

	 	•	 	 If your Separation Date occurs on or after the 6-month anniversary of the option grant date, unvested options will become exercisable on their original
vesting date and remain exercisable until they expire on the day before the fifth anniversary of the grant date (or their original expiration date, if earlier). 

 

	 	•	 	 Vested Options: Options that are vested on your Separation Date will be exercisable until they expire on the day before the fifth anniversary of the
grant date (or their original expiration date, if earlier). 

 Key R&D, MRL and MMD new hire stock option grants, and
other stock option grants may have different terms. See the term sheets applicable to such stock option grants. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 18 

 If you are treated as retired, and later rehired, stock options that are unexercised and outstanding on your
rehire date will continue under the retirement terms. 
 RSUs (retirement terms) 
 If you are treated as retired, any annual grants of restricted stock units that were granted at least 6 months prior to your Separation Date, if any, generally will vest and become distributable (together
with any applicable accrued dividend equivalents for grants made in 2010 and thereafter) as if your employment with the Employer had continued. RSUs granted within 6 months of your Separation Date will be forfeited (together with any applicable
accrued dividend equivalents for grants made in 2010 and thereafter). See the term sheets applicable to RSUs granted to you, if any. 
 PSUs
(retirement terms) 
 If you are treated as retired, a pro rata portion of any annual grant of performance share units that were granted to
you at least 6 months prior to your Separation Date will be payable if at all when the distribution with respect to the applicable performance year is made to active employees; the remainder of the grant will expire on your Separation Date.
Performance share units, if any, granted to you within 6 months of your Separation Date will lapse on your Separation Date. See the term sheets applicable to PSUs granted to you, if any. 
 If you have any question about your stock options, RSUs or PSUs, call the Support Center at 866-MERCK-HD (866-637-2543). 
 Annual Incentive Program/Executive Incentive Program (“AIP/EIP”)— 
 As
described in more detail below, payment of bonuses, or a special payment in lieu of a bonus, depends on when your Separation Date occurs during a performance year and for a special payment in lieu of a bonus, whether or not you sign the Separation
Letter. 
  

	 	•	 	 For the performance year prior to the Separation Date: Provided you are in a class of employees eligible for an AIP/EIP and
your employment ends between January 1 and the time AIP/EIP bonuses are paid for that year to other employees, you will be eligible for an actual AIP/EIP bonus with respect to the performance year immediately preceding your Separation Date on
the same terms and conditions as those that apply to other employees. That bonus, if any, will be paid at the time AIP/EIP bonuses are paid for that year to other employees (not later than March 15) or will be deferred in accordance with your
applicable deferral election for that performance year. Eligibility for consideration for your prior performance year AIP/EIP bonus is not contingent upon your signing the Separation Letter. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 19 

	 	•	 	 For the performance year in which Separation Date occurs: If your Separation Date occurs between January 1 and
June 30, inclusive, no AIP/EIP or special payment in lieu of a bonus with respect to the performance year in which your Separation Date occurs is payable. If your Separation Date occurs on or after July 1 and on or before December 31,
a special payment in lieu of a bonus is payable under this program with respect to the performance year in which your Separation Date occurs provided you sign the Separation Letter. See below for details. 

 

	 	•	 	 For executives who are listed in the Summary Compensation Table for the most recent proxy materials issued by Merck in connection with the annual
meeting of shareholders, the amount of payment in lieu of EIP award, if any, will be guided by the principles contained in this section, but Merck retains complete discretion to pay more, or less, than those amounts. 

 

	 	•	 	 The Employer reserves the right to treat the payment of AIP/EIP bonuses and/or the special payments in lieu of AIP/EIP bonuses as supplemental wages
subject to flat-rate withholding (that is, not taking into account any exemptions). 

  

	 	•	 	 No 401(k) deductions are made from any special payment in lieu of an AIP/EIP. 

Separation Program—If Your Separation Date Occurs On or After July 1 And On Or Before December 31 

If your Separation Date occurs on or after July 1 and on or before December 31, a special payment in lieu of an AIP/EIP with respect to the
performance year in which your Separation Date occurs may be paid only if you sign the Separation Letter. The special payment, if any, will be calculated based on the target bonus applicable to you under the AIP/EIP on your Separation Date (subject
to the following sentence) with respect to the current performance year and the number of full and partial months you worked in the current performance year and is subject to downward adjustment by Merck in its sole discretion based on a variety of
factors, including but not limited to your documented poor performance in the current performance year. If your Separation Date occurs on or after the effective date of your assigned band, pathway and level under the new Compensation and Career
Framework communication but before January 1, 2013, your target bonus will be the greater of the target applicable to your assigned position in the Compensation and Career Framework job structure on your Separation Date or your band/tier level
immediately preceding the conversion to the new structure. If you receive a special payment in lieu of an AIP/EIP bonus, it will be paid to you (less applicable withholding) as soon as administratively feasible following your Separation Date (but
not later than March 15 of the year following your Separation Date) and Merck’s receipt of your signed Separation Letter. However, if you elected to defer all or part of your AIP/EIP bonus, that election will apply to payments made in lieu
of AIP/EIP bonus. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 20 

 * * * 
 OTHER BENEFITS AND PROGRAMS 
 The following describes the terms and conditions of certain
Merck benefit plans and programs as they apply to employees whose employment with the Employer terminates for any reason. For additional information, see the applicable SPDs and applicable summaries of material modification. 

Business Travel Accident 
 Your coverage
under the Business Travel Accident Insurance Plan ends on your Separation Date. 
 Dependent Care Flexible Spending Account 

Your participation in the Dependent Care Flexible Spending Account ends on your Separation Date. Eligible expenses incurred throughout
the calendar year in which your Separation Date occurs (even after employment with the Employer ends) can be reimbursed but only up to the amount actually contributed to the account. Claims for those expenses must be submitted to Horizon Blue Cross
Blue Shield by April 15th of the year following the
year in which your Separation Date occurs. Amounts remaining in the account after all eligible expenses have been paid will be forfeited. 

Group Auto & Homeowners Insurance 
 If you participate in the MetLife Group Auto & Homeowners Insurance on your Separation Date, your payroll deduction (and the applicable discount) will end on that date and you will be moved to
direct bill with MetLife. If you have any questions, please contact MetLife at 800-438-6388. 
 Group Legal Plan 

If you participate in the Group Legal Plan on your Separation Date, your coverage will end on that date. You may continue coverage on an individual basis
for 30 months after your Separation Date. If you elect to continue coverage, you must pre-pay for the coverage for 30 months. Contact Hyatt Legal for details at 800-821-6400. 
 Health and Insurance Benefits 
 Merck’s health and insurance benefits consist of the
following Merck plans and programs: medical (including prescription drugs), dental, vision, health care and dependent care flexible spending accounts, life insurance (including basic and 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 21 

 
optional term life, dependent term life and accidental death and dismemberment), long term care and long term disability. Your participation in these plans ends as described elsewhere in this
communication. However, a full month of contribution/premium for your coverage under these plans in effect on your Separation Date may be deducted from your paycheck for the month in which your Separation Date occurs. 

Health Care Flexible Spending Account 

Your participation in the Health Care Flexible Spending Account (“HCFSA”) ends on your Separation Date, unless you elect to continue to
participate in accordance with COBRA for the remainder of the calendar year in which your Separation Date occurs. If you elect to continue participation in HCFSA under COBRA, you must make your required contributions on an after-tax basis. Eligible
expenses incurred while you participate in HCFSA during the calendar year in which your Separation Date occurs can be reimbursed up to your entire elected amount. Claims incurred after your participation in HCFSA ends cannot be reimbursed, no matter
how much money is left in the account. Claims for expenses incurred during the calendar year in which your Separation Date occurs and while you are a participant in HCFSA must be submitted to Horizon Blue Cross Blue Shield by April 15 of the
year following the year in which your Separation Date occurs. Amounts remaining in the account after all eligible expenses have been paid will be forfeited. 
 Long Term Care 
 If you elected coverage under Merck’s Long Term Care Plan for you (or
your spouse or same-sex domestic partner), that coverage will end on your Separation Date. However, you may continue coverage without interruption by contacting CNA (the insurer) and paying your first quarterly premium to CNA within 31 days after
the last day of the month in which your Separation Date occurs. For more information (and to request the necessary forms) contact CNA directly at 800-528-4582. 
 Long Term Disability 
 Your participation in the Long Term Disability Plan (“LTD
Plan”) will end on the last day of the month in which your Separation Date occurs. In other words, you must have satisfied the 26-week LTD Plan eligibility period by the end of the month that includes your Separation Date to be eligible for LTD
Plan benefits. If you are disabled and receiving income replacement benefits under the LTD Plan on your Separation Date, those benefits will continue in accordance with the terms of the LTD Plan. However, Separation Pay paid by the Employer under
the Separation Benefits Plan will be offset from benefits payable under the LTD Plan (meaning the LTD Plan benefits will be reduced by Separation Pay). 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 22 

 Merck Deferral Program 
 If you have an account balance in the Merck & Co., Inc. Deferral Program, your termination of employment will commence distribution of your account in accordance with your previously elected
schedule, subject to applicable plan terms. For example, account balances less than $125,000 are distributed without giving effect to the participant’s election, while distributions to certain of Merck’s most highly paid employees on
account of termination of employment cannot be made for six months from the termination date. 
 If you elected to defer all or part of your
EIP/AIP distribution and receive a payment in lieu thereof as a result of your separation, your deferral election to the Merck Deferral Program will apply to your payment in lieu of your EIP/AIP. 

Sales Incentive Plan 
 If you are a
participant in a sales incentive plan of Merck or its subsidiaries, including the Employer, on your Separation Date, your eligibility to be paid a bonus, if any, will be determined under the terms and conditions of the plan in which you are a
participant. 
 Savings Plan 

Any Separation Pay you receive under the Separation Benefits Plan is not base pay and may not be contributed to the Savings Plan. A bonus or the special
payment, if any, in lieu of an AIP/EIP bonus is also not compensation for purposes of the Savings Plan. 
 If you have an outstanding Savings
Plan loan balance as of your Separation Date, you will have 60 days to repay the balance. If the loan is not repaid within 60 days, the outstanding loan balance will be considered to be in default and will be treated as a partial distribution
subject to taxation and a possible 10% early withdrawal penalty. Please consult your tax advisor. 
 You generally may receive a final
distribution from the Savings Plan at any time after your Separation Date. However, if the value of your Savings Plan account is less than $1,000 upon your Separation Date, you automatically will receive a distribution of your account balance
following your Separation Date. If your account balance is between $1,000 and $5,000 upon your Separation Date, and you do not elect a lump sum distribution or a rollover, your account will be rolled over into an Individual Retirement Account (IRA)
at Fidelity. If, upon reaching age 65, you have not previously elected to receive your benefits, your account balance will be distributed to you without regard to its amount. Review the information in the SPD (and applicable summaries of material
modification) for the Savings Plan for additional information on receiving a final distribution under the Savings Plan. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 23 

 Short Term Disability 
 Subject to applicable state law, your participation in the Short Term Disability Plan (“STD Plan”) ends on your Separation Date. If you are disabled and are receiving income replacement benefits
under the STD Plan on your Separation Date, those benefits will continue in accordance with the terms of the plan. However, subject to state law, Separation Pay paid by the Employer under the Separation Benefits Plan will act as an offset from
benefits payable under the STD Plan (meaning the STD Plan benefits will be reduced by the Separation Pay). Where state law does not permit such offsets to be made to STD Plan benefits (or where the Employer in its sole and absolute discretion
determines it is easier for the Employer to administer), STD Plan benefits will instead act as an offset from Separation Pay paid (or payable) by the Employer under the Separation Benefits Plan (meaning Separation Pay will be reduced by the STD Plan
benefits). The amount of the offset will be established by the Employer and will be a good faith estimate of the STD Plan benefits payable to the employee after the employee’s Separation Date. 

Vacation Pay/Floating Holidays 
 You will
be paid for any amount of vacation that you have accrued but not used as of your Separation Date. Conversely, you must reimburse the Employer for any vacation you used prior to your Separation Date that you had not earned as of your Separation Date.
Any such amounts to be reimbursed may be deducted from any Separation Pay paid pursuant to the Separation Benefits Plan. You will not be paid for unused vacation days carried over from the calendar year prior to your Separation Date or for floating
holidays that are unused as of your Separation Date, unless payment is required under state law. 
 Vision 

Coverage under the Vision Plan ends on the last day of the month in which your Separation Date occurs. You will be given the opportunity to continue this
benefit in accordance with COBRA for up to 18 months from your Separation Date by paying the required premiums. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 24 

 * * * 
 OTHER IMPORTANT INFORMATION 
 Parent (or its applicable subsidiary) retains the right (to
the extent permitted by law) to amend or terminate the Separation Benefits Plan and any other benefit or plan described in this brochure (or otherwise) at any time and nothing in this Brochure in any way limits that right. However, following a
“change in control” of Merck (as defined in the Merck & Co., Inc. Change in Control Separation Benefits Plan, as it may be amended from time to time), certain limitations apply to the ability of Parent (or its applicable
subsidiary) to amend or terminate its benefit plans. In addition, a Legacy Merck Employee whose employment is terminated without cause within two years following a “change in control” who satisfies certain age and service requirements on
the date his or her employment ends, may also be entitled to receive the retirement pension and/or healthcare bridge as provided in the Merck & Co., Inc. Change in Control Separation Benefits Plan. 

Notwithstanding anything in the Separation Program to the contrary, benefits under the Separation Program that are subject to Section 409A of the
Internal Revenue Code of 1986, as amended, will be adjusted to avoid the excise tax under Section 409A. Parent or Employer will take any and all steps it determines are necessary, in its sole and absolute discretion, to adjust benefits under
the Separation Program to avoid the excise tax under Section 409A, including but not limited to, reducing or eliminating benefits, changing the time or form of payment of benefits, etc. 

Payments made on account of separation from service are limited during the six months following the termination of employment of a “Specified
Employee” as defined in Treas. Reg. Sec. 1.409A-1(i) or any successor thereto, which in general includes the top 50 employees of a company ranked by compensation. Notwithstanding anything contained in the Separation Program to the contrary, if
a Covered Employee is a “Specified Employee” on his or her Separation Date, to the extent required by Section 409A of the Internal Revenue Code of 1986, as amended, no payments will be made during the six-month period following
termination of employment. Instead, amounts that would otherwise have been paid during that six-month period will be accumulated and paid, without interest, as soon as administratively feasible following the end of such six-month period after
termination of employment. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 25 

 Glossary of Definitions 
 As used in this document, the following terms have the following meanings. 
 “Basic Life
Insurance” is life insurance provided under a plan sponsored by Parent or a subsidiary of Parent equal to 1x “base pay” (as defined in the Life Insurance SPD”). 
 “Benefits Continuation Period” is as defined in the Separation Benefits Plan. 

“Bridge-Eligible Employees” means “Legacy Merck Employees” as defined in the (Separation Benefits Plan) who experience a
“Termination due to Workforce Restructuring” (as defined in the Separation Benefits Plan): 
 (1) on or after January 1, 2012 but
before January 1, 2013 and who as of their Separation Date, are 
  

	 	•	 	 at least age 49 and have at least 9 years of Credited Service; or 

 

	 	•	 	 at least age 64 years and have less than 9 years of Credited Service; and 

 

	 	•	 	 who, on their Separation Date, are not at least age 55 with at least 10 years of Credited Service or at least age 65; or 

(2) on or after January 1, 2013 and who, as of December 31 of the year in which their Separation Date occurs, are 

 

	 	•	 	 at least age 50 and have at least 10 years of Credited Service; or 

 

	 	•	 	 at least age 64 and have less than 10 years of Credited Service; and 

 

	 	•	 	 who, on their Separation Date, are not at least age 55 with at least 10 years of Credited Service or at least age 65. 

Bridge-Eligible Employees are only those employees who are designated by the Employer or Parent as “Bridge-Eligible Employees.” This Brochure
only applies to Bridge-Eligible Employees. 
 “Bridged Employees” are those Bridge-Eligible Employees who sign (and if a revocation
period is applicable to them, do not revoke) the Separation Letter. Bridged Employees are considered retired under the Retirement Plan. “Bridged Employees” do not include employees who terminate employment in any way that does not
constitute a Termination due to Workforce Restructuring as determined in accordance with the terms of the Separation Benefits Plan, including employees who resign for any reason. 
 “Credited Service” is as defined in the Retirement Plan. 
 “Employer” means
individually and collectively, Merck Sharp & Dohme Corp., and its direct and indirect wholly owned subsidiaries excluding Comsort, Inc. and Telerx Marketing, Inc. The term “Employer” excludes each Legacy Schering

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 26 

 
Entity (as defined in the Separation Benefits Plan) and Inspire Pharmaceuticals, Inc. 

“Legacy Merck Employee” is as defined in the Separation Benefits Plan. 
 “Parent” means Merck & Co., Inc. 
 “Pension Bridge” means the
pro-rata portion of certain early retirement subsidies under the Retirement Plan, including the Social Security Bridge Transition Benefit and treatment as a retiree under the Retirement Plan 
 “Retiree Healthcare Bridge Eligible” means that you are a Bridged Employee who as of your Separation Date (i) if your Separation Date occurs in 2012 you are at least age 49 with at least 9
years of Credited Service on your Separation Date, or (ii) if your Separation Date occurs in 2013 you are at least age 50 with at least 10 years of Credited Service as of December 31 of the year in which your Separation Date occurs, or
(iii) if your Separation Date occurs in 2014 you are at least age 51 with at least 10 years of Credited Service as of December 31 of the year in which your Separation Date occurs, or (iv) if your Separation Date occurs in 2015 or
thereafter you are at least age 52 with at least 10 years of Credited Service as of December 31 of the year in which your Separation Date occurs. 
 “Retiree Healthcare Commencement Date” means the date your retiree healthcare benefits begin as described in this Brochure. 
 “Retirement Plan” means the Retirement Plan for Salaried Employees of MSD 

“Separation Benefits Plan” means the Merck & Co., Inc. US Separation Benefits Plan. 

“Separation Date” means a Bridge-Eligible Employee’s last day of employment with the Employer. 

“Separation Letter” means the letter provided by Parent or the employer that that includes a “Release of Claims” (as defined in the
Separation Benefits Plan). 
 “Separation Letter Return Date” is the date stated in the Separation Letter (or as extended by the
Employer at its sole discretion) by which Bridge-Eligible Employees must sign and return it to Parent or Employer. Bridge-Eligible Employees who sign and return (and, if a revocation period is applicable to them, do not revoke) the Separation
Letter, become Bridged Employees. 
 “Separation Plan SPD” means the SPD for the Merck & Co., Inc. US Separation Benefits
Plan. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 27 

 “Separation Program” means the (i) Separation Benefits Plan, (ii) provisions described
in this Brochure applicable to (A) eligibility for retiree healthcare benefits for Bridged Employees who are Retiree Healthcare Bridge Eligible, (B) eligibility for the Pension Bridge, (C) treatment as a retiree under Merck’s
options, RSUs and PSUs, and (D) payment in lieu of AIP/EIP. 
 “SPDs” means summary plan descriptions of various employee benefit
plans sponsored by Merck & Co., Inc. or one of its wholly owned subsidiaries. 

  
 LMRK Separated Bridged
Employees 
 Effective as of January 1, 2012 
 Revised as of December 12, 2011 
 28Important Information on the Separation Program

 EXHIBIT 10.33 
 IMPORTANT INFORMATION ON THE SEPARATION PROGRAM 
 APPLICABLE TO LEGACY
SCHERING 
 “REBADGED EMPLOYEES” 
 This Brochure applies to “Legacy Schering Employees” as defined in the Merck & Co., Inc. US Separation Benefits Plan (the “Separation Benefits Plan”) who are “Rebadged
Employees” (as defined in the Separation Benefits Plan) 
 This Brochure does not apply to Legacy Schering Employees who are
“Separated Employees” or “Separated Retirement Eligible Employees” as defined in the brochures applicable to those groups. If you are a Legacy Schering Employee who is a “Separated Employee” or a “Separated
Retirement Eligible Employee,” see the brochure that applies to you. 
 Effective Date: As of January 1, 2012 

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

 TABLE OF CONTENTS 

 

											
	 Brochure Overview
	  	 	3	  
		
	 Separation Program Overview
	  	 	4	  
		
	 Medical (including Prescription Drug) and Dental
	  	 	5	  
		 	Ÿ	 	COBRA—If Your Are Not Retiree Healthcare Eligible or Your Are Retiree Healthcare Bridge Eligible and You Do Not Sign the Separation Letter	  	 	5	  
		 	Ÿ	 	Retiree Medical—If You Are Retiree Healthcare Eligible or under the Separation Program—If You Are Retiree Healthcare Bridge Eligible and You Sign the
Separation Letter	  	 	5	  
		 	Ÿ	 	Merck Retiree Medical Benefits—In General	  	 	6	  
		 	Ÿ	 	Coordination With Medicare	  	 	7	  
		
	 Life Insurance
	  	 	8	  
		 	Ÿ	 	Basic Life, AD&D, Optional Group Life and Dependent Life Insurance	  	 	8	  
		 	Ÿ	 	Retiree Life Insurance	  	 	8	  
		
	 Health and Life Insurance Benefits Overview Chart
	  	 	9	  
		
	 Stock Options, Restricted Stock Units and Performance Stock Units
	  	 	10	  
		 	Ÿ	 	“Involuntarily Terminated” For Purposes of Stock Options, RSUs and PSUs—If You Are Not Pension Retirement Eligible	  	 	10	  
		 		 	Ÿ	 	Stock Options (involuntary termination terms)	  	 	10	  
		 		 	Ÿ	 	DSUs/RSUs (involuntary termination terms)	  	 	10	  
		 		 	Ÿ	 	PSUs (involuntary termination terms)	  	 	11	  
		 	Ÿ	 	“Retired” For Purposes of Stock Options, RSUs and PSUs—If You Are Pension Retirement Eligible	  	 	11	  
		 		 	Ÿ	 	Stock Options (retirement terms)	  	 	12	  
		 		 	Ÿ	 	DSUs/RSUs (retirement terms)	  	 	13	  
		 		 	Ÿ	 	PSUs (retirement terms)	  	 	13	  
		
	 Annual Incentive Program/Executive Incentive Program (“AIP/EIP”)
	  	 	13	  
		 	Ÿ	 	If You Are Not Pension Retirement Eligible And Your Separation Date Occurs Between January 1 and June 30	  	 	14	  
		 	Ÿ	 	Separation Program—If You Are Not Pension Retirement Eligible and Your Separation Date Occurs On or After July 1 And On Or Before December 31 Or
You Are Pension Retirement Eligible And, In Either Case You Sign the Separation Letter	  	 	15	  
		 	Ÿ	 	If You Are Pension Retirement Eligible And You Do Not Sign the Separation Letter	  	 	15	  

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

1 

					
	 Other Benefits and Programs
	  	 	16	  
	 •      Business Travel Accident
	  	 	16	  
	 •      Dependent Care Flexible Spending Account
	  	 	16	  
	 •      Group Auto & Homeowners Insurance
	  	 	16	  
	 •      Group Legal Plan
	  	 	16	  
	 •      Health and Insurance Benefits
	  	 	16	  
	 •      Health Care Flexible Spending Account
	  	 	17	  
	 •      Long Term Care
	  	 	17	  
	 •      Long Term Disability
	  	 	17	  
	 •      Merck Deferral Program
	  	 	18	  
	 •      Pension
	  	 	18	  
	 •      Schering-Plough Corporation Retirement Plan
	  	 	18	  
	 •      BEP and SERP
	  	 	19	  
	 •      Retirement Account Plan for the Organon BioSciences U.S. Affiliates
(“RAP”)
	  	 	19	  
	 •      Sales Incentive Plan
	  	 	20	  
	 •      Savings Plan
	  	 	20	  
	 •      401(k) Savings Plan and Savings Advantage Plan
	  	 	20	  
	 •      Retirement Savings Plan for the Organon BioSciences US Affiliates (the “RSP 401(k)
Savings Plan”)
	  	 	21	  
	 •      Shining Performance Program
	  	 	22	  
	 •      Short Term Disability
	  	 	22	  
	 •      Vacation Pay/Floating Holidays
	  	 	23	  
	 •      Vision
	  	 	23	  
		
	 Other Important Information
	  	 	24	  
		
	 Glossary of Definitions
	  	 	25	  

 Note: Capitalized Terms used in this Brochure are generally defined in the Glossary of Definitions. 

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

2 

 Brochure Overview 
 This Brochure summarizes the benefits for which a “Legacy Schering Employee” who is a “Rebadged Employee” (as such terms are defined in the Separation Benefits Plan) may be eligible
under Merck’s Separation Program and other employee benefit plans and programs of Merck & Co., Inc. and its subsidiaries. Unless otherwise noted, it is not an official plan document. The terms and conditions of Merck’s employee
benefit plans and programs applicable on an employee’s termination of employment from the Employer are as described in the official plan documents, including applicable summary plan descriptions (“SPDs”) and applicable summaries of
material modification, in each case previously provided to you or provided to you with this Brochure, as such plans and programs (and the applicable SPDs) may be amended from time to time. A copy of the applicable SPDs and applicable summaries of
material modification can be obtained on line at http://one.merck.com/sites/sa/en-us/Pages/USMerckSummaryPlanDescriptions.aspx or by calling the Merck Benefits Service Center at Fidelity at 800-666-3725. Unless otherwise noted below, to the extent
the information in this Brochure differs from the official plan documents, the official plan documents will control. 
 Rebadged Employees are
only those employees who are designated by the Employer or the Parent as “Rebadged Employees.” Benefits described in this Brochure only apply to Legacy Schering Employees who are Rebadged Employees and do not apply to any other employees
of Merck or its subsidiaries or affiliates, including the Employer. 
 If you have been designated as a Rebadged Employee, the Employer or
Parent will provide you with the Separation Letter. In order to receive the benefits under the Separation Program for which a release of claims is required, you must sign and return the Separation Letter by the date stated in the letter (the
“Separation Letter Return Date”). 
 You are considered to have signed the Separation Letter if you sign and return the Separation
Letter by the Separation Letter Return Date and, if a revocation period is applicable to you, do not revoke the Separation Letter within the revocation period. You are considered to have not signed the Separation Letter if you either (i) do not
sign and return the Separation Letter by the Separation Letter Return Date, or (ii) sign and return the Separation Letter by the Separation Letter Return Date and, if a revocation period is applicable to you, revoke the Separation Letter within
the revocation period. 

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

3 

 Separation Program Overview 
 All benefits under the Separation Program applicable to Rebadged Employees are contingent upon the Rebadged Employee signing the Separation Letter unless otherwise indicated below. They consist of:

  

	 	•	 	 Separation Pay (under the terms of the Separation Benefits Plan applicable to a Rebadged Employee) 

 

	 	•	 	 Eligibility for a special payment in lieu of an AIP/EIP bonus for the performance year in which his or her Separation Date occurs

  

	 	•	 	 If he or she is Pension Retirement Eligible; or 

  

	 	•	 	 If he or she is not Pension Retirement Eligible and his or her Separation Date occurs on or after July 1 and on or before December 31 of that
performance year 

  

	 	•	 	 Eligibility for retiree medical at subsidized rates for those who are Retiree Healthcare Bridge Eligible on their Separation Date

  

	 	•	 	 For purposes of unexercised stock options and restricted stock units and performance stock units 

 

	 	•	 	 Treatment as a retiree for those who are Pension Retirement Eligible on their Separation Date (signing the Separation Letter not required)

  

	 	•	 	 Treatment under the involuntary termination terms (signing the Separation Letter not required) 

Separation Pay benefits are described in the Separation Plan SPD distributed with this Brochure. 

This Brochure describes: 
  

	 	•	 	 the benefits offered under the Separation Program that are not described in the Separation Plan SPD; 

 

	 	•	 	 the benefits for those Rebadged Employees who do not sign, or, if a revocation period is applicable to them, who sign and later revoke, the Separation
Letter; and 

  

	 	•	 	 the terms and conditions of certain Merck benefit plans and programs as they apply to Rebadged Employees without regard to whether they sign the
Separation Letter. 

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

4 

 Medical (including Prescription Drug) and Dental 

COBRA—If You Are Not Retiree Healthcare Eligible or You Are Retiree Healthcare Bridge Eligible And You Do Not Sign the Separation Letter

 If you are not Retiree Healthcare Eligible or you are Retiree Healthcare Bridge Eligible and you don’t sign the Separation Letter,
your medical and dental coverage options in effect on your Separation Date will continue under Merck’s medical and dental plans (as they may be amended from time to time) until the end of the month in which your Separation Date occur. At the
end of that period, you will be eligible to elect to continue your coverage in accordance with COBRA for up to 18 months starting from the first day of the month coincident with or following your Separation Date just like any other employee whose
employment ends. If you have no medical and/or dental coverage under Merck’s plans on your Separation Date, you will not be eligible to elect such coverage under COBRA. 
 Retiree Medical—If You Are Retiree Healthcare Eligible or Under the Separation Program—If You Are Retiree Healthcare Bridge Eligible And You Sign the Separation Letter 

If you are Retiree Healthcare Eligible or you are Retiree Healthcare Bridge Eligible and you sign the Separation Letter your retiree medical benefits will
begin on the first day of the month coincident with or following your Separation Date (the “Retiree Healthcare Commencement Date”). 

Retiree medical eligibility provided under the Separation Program for those who are Retiree Healthcare Bridge Eligible is subject to the same forfeiture
provision described in the Separation Plan SPD. The forfeiture provision will apply for the period during which Separation Pay would have been paid had it been paid in installments in accordance with the Employer’s normal payroll practice. If
the forfeiture provision applies during that period and you are Retiree Healthcare Bridge Eligible and not also Retiree Healthcare Access Eligible, you will be permanently ineligible for retiree medical benefits. If the forfeiture provision applies
during that period and you are both Retiree Healthcare Bridge Eligible and Retiree Healthcare Access Eligible, you will be permanently ineligible for retiree medical benefits at subsidized rates but you will be eligible for retiree medical at access
rates. 
 Official Plan Document. To the extent this section describes eligibility for retiree healthcare for those who are Retiree
Healthcare Bridge Eligible, it constitutes a summary of material modification to the medical and dental sections of the Merck SPD for Legacy Schering Retirees and should be kept with that document. 

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

5 

 Merck Retiree Medical Benefits—in General 

This section only applies to you if you are Retiree Healthcare Eligible or you are Retiree Healthcare Bridge Eligible and you sign the Separation Letter.

 You will be automatically enrolled in retiree medical coverage as of your Retiree Healthcare Commencement Date. If you do not have medical
coverage on the day before your Retiree Healthcare Commencement Date, you will be enrolled in the no coverage retiree medical option. If you have medical coverage on the day before your Retiree Healthcare Commencement Date, you will be enrolled in
the Aetna PPO Choice medical option. Coverage under your retiree medical coverage will also automatically continue for your eligible dependents who were enrolled under the plan on the day before your Retiree Healthcare Commencement Date provided
they are eligible for coverage. 
 You are permitted to add eligible dependents or drop covered dependents and/or change available medical
coverage options retroactive to your Retiree Healthcare Commencement Date only if you notify the Merck Benefits Service Center of such change(s) within 30 days after your Retiree Healthcare Commencement Date. Thereafter, any permitted changes will
only be made prospectively during annual enrollment (for coverage effective the following January 1) or mid-year if you experience a life event and you notify the Merck Benefits Service Center within 30 days of the event. 

You can “opt-out” of retiree coverage at any time, but note that your ability to re-enroll for coverage is generally limited to annual open
enrollment (with the following January 1 as the re-enrollment effective date); mid-year enrollment is available only if you have a life event that permits a change in coverage and you contact the Merck Benefits Service Center to re-enroll in
Merck retiree coverage within 30 days of the date of the life event. 
 You are eligible for retiree medical at subsidized rates if you
are 
  

	 	•	 	 Retiree Healthcare Bridge Eligible and you sign the Separation Letter; or 

 

	 	•	 	 Retiree Healthcare Subsidy Eligible. 

 You are eligible for retiree medical at access only rates if you are 
  

	 	•	 	 Retiree Healthcare Access Eligible and Retiree Healthcare Bridge Eligible and you do not sign the Separation Letter; or 

 

	 	•	 	 Retiree Healthcare Access Eligible. 

 You must pay the applicable contributions for retiree medical coverage beginning on your Retiree Healthcare Commencement Date. In general, if you are receiving a pension annuity, your contributions for
retiree medical will automatically be deducted from your monthly pension check unless you elect otherwise. If you do not want your contributions for retiree medical deducted from your pension annuity, you have the option to receive an monthly
invoice 

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

6 

 
from the Merck Benefits Service Center and to pay that invoice directly to the Merck Benefits Service Center or to sign up for automatic payment from your bank account by contacting the Merck
Benefits Service Center at 800-666-3725. 
 If you are not receiving a monthly pension annuity or you have requested a monthly invoice as
described above, you will receive an invoice from the Merck Benefits Service Center that indicates the contribution due for your retiree coverage. If you fail to pay the contribution required for retiree medical coverage in the time and manner
specified on the invoice, you will be deemed to have opted out of coverage and your ability to re-enroll is limited as described above. You may want to consider enrolling in the automatic payment option available through the Merck Benefits Service
Center. Contact the Merck Benefits Service Center at 800-666-3725 for additional information. 
 You cannot be covered as an active employee for
medical through COBRA and as a retiree (even under the no coverage option) for Merck medical coverage during the same period; provided, however, that you may be covered through COBRA at full COBRA rates for dental coverage even if during that period
that you are also covered as a retiree for Merck medical coverage. 
 Coordination with Medicare 

An individual is generally eligible for Medicare if he or she is at least age 65 or has been entitled to Social Security disability benefits for at least
24 months. If you or your dependents are eligible for Medicare on your Separation Date or become eligible for Medicare during the period for which you are covered under COBRA or if eligible as a retiree, the Merck medical plan under which you are
covered will coordinate with Medicare. That means that Medicare will be primary and the Merck medical plan will be secondary. You or your dependents, as applicable, must enroll in Medicare immediately when first eligible for Medicare. When
coordinating with Medicare, the Merck medical plans assume that you and your dependents are covered by Medicare as of the first date you or your dependents, as applicable, are eligible to be covered under Medicare—whether or not the individual
is actually covered. If you and your dependents do not enroll in Medicare when first eligible you will experience a gap in coverage and you may be obligated to pay a late enrollment penalty to Medicare for Medicare when you first enroll. For
information on eligibility for and enrollment in Medicare visit your local Social Security Administration office or contact the Social Security Administration online at www.ssa.gov or by phone at 800-772-1213. 

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

7 

 Life Insurance 
 Basic Life, AD&D, Optional Group Life and Dependent Life Insurance 
 Whether or not you
sign the Separation Letter, your accidental death and dismemberment coverage will end as of your Separation Date and your basic life insurance, optional group term life insurance and dependent life insurance will continue for 31 days after your
Separation Date. During this 31-day period you may elect to convert your basic life insurance and/or convert or port your optional group term life and/or dependent life coverage to an individual policy with Prudential, subject to certain
limitations. Contact the Merck Benefits Service Center (800-666-3725) or Prudential (877-370-4778) for more information. 
 Retiree Life
Insurance 
 If you are a Legacy Schering Employee (and not a Legacy OBS Employee) who was employed by a Legacy Schering Entity on
January 1, 1995 and was at least age 55 on that date, you may be eligible for retiree life insurance at no cost to you if you have at least 10 years of Benefit Service on your Separation Date. If you are a Legacy OBS Employee who was employed
by a Legacy Schering Entity on December 31, 2008 and were at least age 55 on that date, you may be eligible for retiree life insurance at no cost to you if you have at least 10 years of Benefit Service on your Separation Date. If you are
eligible for retiree life insurance, that coverage will begin on the first of the month coincident with or following your Separation Date. You do not need to enroll. If eligible, you will be covered automatically. For more information, refer to the
Merck SPD for Legacy Schering Retirees or call the Merck Benefits Service Center at 800-666-3725. 
 You cannot be covered as an active employee
for Merck life insurance and as a retiree for Merck life insurance coverage during the same period. 

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

8 

 Health and Life Insurance Benefits Overview Chart 

The chart below is provided for your convenience to compare the medical and dental benefits offered to Rebadged Employees under the Separation Program to
the normal plan provisions. It assumes you are eligible for medical and dental continuation under COBRA, that you sign the Separation Letter and that you timely pay the required contributions to continue coverage. 

 

					
	  	  	 Regular Plan Provisions
	  	 Separation Program

	Medical (including Prescription Drug) and Dental	  	Benefits continue to the end of the month in which your Separation Date occurs; eligible for COBRA afterward for up to 18 months at full COBRA rate	  	 Benefits continue to the end of the month in which your Separation Date occurs.

 
 Thereafter

 
 Medical:

 
 If not Retiree Healthcare Eligible or Retiree Healthcare Bridge Eligible—
eligible for COBRA for up to 18 months at full COBRA rate.
  
 If
Retiree Healthcare Eligible or Retiree Healthcare Bridge Eligible—begin participation in retiree medical w/applicable retiree contributions.
  

•      If Retiree Healthcare Subsidy Eligible or Retiree Healthcare Bridge
Eligible, pay subsidized retiree rates.
  
 •      If Retiree Healthcare Access Eligible, pay access retiree rates.
  

Dental: Eligible for COBRA for up to 18 months at full COBRA rate.

		
	Basic Life Insurance, Optional Employee Group Term Life and Dependent Life	  	 Coverage continues for 31 days after Separation Date.

 
 You may be eligible to convert basic life insurance or convert or port optional
life and/or dependent life insurance to an individual policy with Prudential during the 31-day period.

			
	AD&D	  	No coverage	  	

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

9 

 Stock Options, Restricted Stock Units and Performance Stock Units 

Only employees may receive incentives under Merck’s incentive stock plans, including stock options, restricted stock units (“RSUs”) or
performance stock units (“PSUs”); therefore, you will not be eligible to receive any grants after your Separation Date. 

“Involuntarily Terminated” for Purposes of Stock Options, RSUs and PSUs—If You Are Not Pension Retirement Eligible 

Under Merck’s incentive stock plans, stock options, Deferred Stock Units (“DSUs”), RSUs and PSUs held by a U.S. employee whose employment
ends are treated under the provisions of the grants applicable to retirement only if the employee is considered a retiree under the Retirement Plan. If you are not Pension Retirement Eligible, you are not considered a retiree under the Retirement
Plan. Therefore, the involuntary termination provisions (not the retirement provisions) applicable to stock options, DSUs, RSUs and PSUs will apply to any outstanding incentives that you hold on your Separation Date. Provisions may differ based on
the grants. IT IS YOUR RESPONSIBILITY TO FAMILIARIZE YOURSELF WITH THE TERMS OF INDIVIDUAL GRANTS. 
 Stock Options (involuntary
termination terms) 
 Generally, for outstanding annual and quarterly stock option grants made prior to 2010 or in 2010 and thereafter the
involuntary termination terms are: 
 Options that are unvested on your Separation Date will expire on your Separation Date.
Options that are exercisable on your Separation Date will expire on the day before the first anniversary of your Separation Date (or their original expiration date, if earlier). 
 Key R&D stock option grants, and other stock option grants may have different terms. See the term sheets applicable to such stock option grants. 

If on your Separation Date your then outstanding stock options are treated under the involuntary termination terms as described above and you are
rehired, stock options that are unexercised and outstanding on your rehire date will continue to be treated as described above. 
 DSUs/RSUs
(involuntary termination terms) 
 Under the involuntary termination terms for DSUs granted before 1/1/2010, a pro rata portion of your DSU
grant generally will vest and become distributable to you (together with any applicable accrued dividend equivalents) at the same time as 

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

10 

 
if your employment had continued; the remainder of the grant will expire on your Separation Date. 
 Different terms may apply to DSUs that were not granted as part of the annual DSU grants. See the term sheets applicable to DSUs granted to you, if any. 

For each annual and quarterly RSU grant made on or after January 1, 2010, under the involuntary termination terms if your Separation Date occurs

  

	 	•	 	 On or after the first anniversary of the RSU grant date, a pro rata portion of your RSU grant generally will vest and become distributable to you
(together with any applicable accrued dividend equivalents) at the same time as if your employment had continued; the remainder of the grant will expire on your Separation Date; or 

 

	 	•	 	 before the first anniversary of the RSU grant date, the entire grant (together with any applicable accrued dividend equivalents) will expire on your
Separation Date. 

 See the term sheets applicable to RSUs granted to you, if any. 

PSUs (involuntary termination terms) 

PSUs granted January 1, 2009 vested or lapsed effective December 31, 2011. Payment, if any, will be made to you in accordance with the terms of
the grant. See the term sheets applicable to PSUs granted to you, if any. 
 For each PSU granted on or after January 1, 2010, under the
involuntary termination terms if your Separation Date occurs 
  

	 	•	 	 on or after the first anniversary of the PSU grant date, a pro rata portion of your PSU grant generally will vest and become distributable to you at
the same time as if your employment had continued and based on actual performance; the remainder of the grant will expire on your Separation Date; or 

  

	 	•	 	 before the first anniversary of the PSU grant date, the entire grant will expire on your Separation Date. 

See the term sheets applicable to PSUs granted to you, if any. 
 If you have any question about your stock options, restricted stock units or performance stock units, you can call The Support Center at 866-MERCK-HD (866-637-2543). 

“Retired” for Purposes of Stock Options, RSUs and PSUs—If You Are Pension Retirement Eligible 

Under Merck’s incentive stock plans, stock options, RSUs and PSUs held by a U.S. employee whose employment ends are treated under the provisions of
the grants applicable to retirement only if the employee is considered a retiree under 

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

11 

 
the Retirement Plan. If you are Pension Retirement Eligible you are considered a retiree under the Retirement Plan. Therefore, the retirement provisions (not the involuntary termination
provisions) applicable to stock options, Deferred Stock Units (“DSUs”), RSUs and PSUs will apply to any outstanding incentive you hold on your Separation Date. The retirement provisions may differ based on the grants. IT IS YOUR
RESPONSIBILITY TO FAMILIARIZE YOURSELF WITH THE TERMS OF INDIVIDUAL GRANTS. 
 Stock Options (retirement terms) 

Generally, for outstanding annual and quarterly stock option grants made prior to 2010, the retirement provisions are: 

 

	 	•	 	 Options unvested as of your Separation Date that were granted at least one year prior to your Separation Date will continue to vest and become
exercisable as if your employment had continued and remain exercisable until the earlier of (i) five years after your Separation Date and (ii) the original expiration date. 

 

	 	•	 	 Options vested as of your Separation Date will remain exercisable until the earlier of (i) five years after your Separation Date and (ii) the
original expiration date. 

 Generally, for outstanding annual and quarterly stock option grants made in 2010 and thereafter,
the retirement provisions are: 
  

	 	•	 	 Unvested Options: 

  

	 	•	 	 If your Separation Date occurs before the 6-month anniversary of the option grant date, the options expire on your Separation Date; or

  

	 	•	 	 If your Separation Date occurs on or after the 6-month anniversary of the option grant date, unvested options will become exercisable on their original
vesting date and remain exercisable until they expire on the day before the fifth anniversary of the grant date (or their original expiration date, if earlier). 

 

	 	•	 	 Vested Options: Options that are vested on your Separation Date will be exercisable until they expire on the day before the fifth anniversary of the
grant date (or their original expiration date, if earlier). 

 Key R&D stock option grants, and other stock option grants
may have different terms. See the term sheets applicable to such stock option grants. 
 If you are treated as retired, and later rehired, stock
options that are unexercised and outstanding on your rehire date will continue under the retirement terms. 

  
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 DSUs/RSUs (retirement terms) 
 Under the retirement provisions for DSUs granted in 2009, DSUs will become distributable (together with any applicable accrued dividend equivalents) as if your employment with the Employer had continued.

 Under the retirement provisions for RSUs granted in 2010 and thereafter, any annual grants of restricted stock units that were granted at
least 6 months prior to your Separation Date, if any, generally will vest and become distributable (together with any applicable accrued dividend equivalents for grants made in 2010 and thereafter) as if your employment with the Employer had
continued. RSUs granted within 6 months of your Separation Date will be forfeited (together with any applicable accrued dividend equivalents for grants made in 2010 and thereafter). See the term sheets applicable to RSUs granted to you, if any.

 PSUs (retirement terms) 

Under the retirement provisions for PSUs granted in 2009, PSUs will become distributable (together with any applicable accrued dividend equivalents) as if
your employment with the Employer had continued. 
 Under the retirement provisions for PSUs granted in 2010 and thereafter, a pro rata portion
of any annual grant of performance share units that were granted to you at least 6 months prior to your Separation Date will be payable if at all when the distribution with respect to the applicable performance year is made to active employees; the
remainder of the grant will expire on your Separation Date. Performance share units, if any, granted to you within 6 months of your Separation Date will lapse on your Separation Date. See the term sheets applicable to PSUs granted to you, if any.

 If you have any question about your stock options, RSUs or PSUs, call the Support Center at 866-MERCK-HD (866-637-2543). 

Annual Incentive Program/Executive Incentive Program (“AIP/EIP”)— 
 As described in more detail below, payment of bonuses, or a special payment in lieu of a bonus, depends on when your Separation Date occurs during a performance year and for a special payment in lieu of a
bonus, whether or not you sign the Separation Letter. 
  

	 	•	 	 For the performance year prior to Separation Date: Provided you are in a class of employees eligible for an AIP/EIP and your employment
ends between January 1 and the time AIP/EIP bonuses are paid for that year to other employees, you will be eligible for an actual AIP/EIP bonus with respect to the performance year immediately preceding your Separation Date on the same terms
and conditions as those that apply to other employees. That bonus, if any, will be paid at the time AIP/EIP bonuses  

  
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are paid for that year to other employees (not later than March 15) or will be deferred in accordance with your applicable deferral election for that performance year. Eligibility for
consideration for your prior performance year AIP/EIP bonus is not contingent upon your signing the Separation Letter. 

  

	 	•	 	 For the performance year in which Separation Date occurs: 

 

	 	•	 	 If you are not Pension Retirement Eligible: If you are not Pension Retirement Eligible and your Separation Date occurs between January 1
and June 30, inclusive, no AIP/EIP or special payment in lieu of a bonus with respect to the performance year in which your Separation Date occurs is payable to you. If your Separation Date is on or after July 1 and on or before
December 31 and you sign the Separation Letter, a special payment in lieu of a bonus is payable to you under this program with respect to the performance year in which your Separation Date occurs. See below. 

 

	 	•	 	 If you are Pension Retirement Eligible: If you are Pension Retirement Eligible and you do not sign the Separation Letter, a pro-rated actual
AIP/EIP bonus with respect to the performance year in which your Separation Date occurs may be paid to you at the time AIP/EIP bonuses are paid for that performance year to other employees. If you are Pension Retirement Eligible and you sign the
Separation Letter, a special payment in lieu of an actual AIP/EIP bonus for the performance year in which your Separation Date occurs is payable under this program. See below. 

 

	 	•	 	 For executives who are listed in the Summary Compensation Table for the most recent proxy materials issued by Merck in connection with the annual
meeting of shareholders, the amount of payment in lieu of EIP award, if any, will be guided by the principles contained in this section, but Merck retains complete discretion to pay more, or less, than those amounts. 

 

	 	•	 	 The Employer reserves the right to treat the payment of AIP/EIP bonuses and/or the special payments in lieu of AIP/EIP bonuses as supplemental wages
subject to flat-rate withholding (that is, not taking into account any exemptions). 

  

	 	•	 	 No 401(k) deductions are made from any special payment in lieu of an AIP/EIP. 

If You Are Not Pension Retirement Eligible And Your Separation Date Occurs Between January 1 and June 30 

If you are not Pension Retirement Eligible and your Separation Date occurs on or after January 1 and on or before June 30, you will not be
eligible for consideration for an actual AIP/EIP bonus or the special payment in lieu of bonus payment described below for the performance year in which your Separation Date occurs whether or not you sign the Separation Letter. 

  
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 Separation Program—If You Are Not Pension Retirement Eligible and Your Separation Date Occurs On or
After July 1 And On Or Before December 31 or You Are Pension Retirement Eligible And, In Either Case You Sign the Separation Letter 
 If you are not Pension Retirement Eligible and your Separation Date occurs on or after July 1 and on or before December 31 or if you are Pension Retirement Eligible, a special payment in lieu of
an AIP/EIP with respect to the performance year in which your Separation Date occurs may be paid only if you sign (and, if a revocation period is applicable to you, do not revoke) the Separation Letter. The special payment, if any, will be
calculated based on the target bonus applicable to you under the AIP/EIP on your Separation Date (subject to the following sentence) with respect to the current performance year and the number of full and partial months you worked in the current
performance year and is subject to downward adjustment by Merck in its sole discretion based on a variety of factors, including but not limited to your documented poor in the current performance year. If your Separation Date occurs on or after the
effective date of your assigned band, pathway and level under the new Compensation and Career Framework communication but before January 1, 2013, your target bonus will be the greater of the target applicable to your assigned position in the
Compensation and Career Framework job structure on your Separation Date or your band/tier level immediately preceding the conversion to the new structure. If you receive a special payment in lieu of an AIP/EIP bonus, it will be paid to you (less
applicable withholding) as soon as administratively feasible following your Separation Date (but not later than March 15 of the year following your Separation Date) and Merck’s receipt of your signed Separation Letter. However, if you
elected to defer all or a part of your AIP/EIP bonus, that election will apply to payments made in lieu of AIP/EIP bonus. 
 If You Are
Pension Retirement Eligible and You Do Not Sign the Separation Letter 
 If you are Pension Retirement Eligible and you do not sign the
Separation Letter, you will be eligible for consideration for an AIP/EIP bonus with respect to the performance year in which your Separation Date occurs on the same terms and conditions as other employees of the Employer who retired during the
performance year. Provided you are in a class of employees eligible for an AIP/EIP, your AIP/EIP bonus, if any, will be paid to you at the same time AIP/EIP bonuses are paid to other employees or will be deferred in accordance with your applicable
deferral election for that AIP/EIP performance year, as applicable. 

  
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 * * * 
 OTHER BENEFITS AND PROGRAMS 
 The following describes the terms and conditions of certain
Merck benefit plans and programs as they apply to employees whose employment with the Employer terminates for any reason. For additional information, see the applicable SPDs and applicable summaries of material modification. 

Business Travel Accident 
 Your coverage
under the Business Travel Accident Insurance Plan ends on your Separation Date. 
 Dependent Care Flexible Spending Account 

Your participation in the Dependent Care Flexible Spending Account ends on your Separation Date. Eligible expenses incurred throughout
the calendar year in which your Separation Date occurs (even after employment with the Employer ends) can be reimbursed but only up to the amount actually contributed to the account. Claims for those expenses must be submitted to Horizon Blue Cross
Blue Shield by April 15th of the year following the
year in which your Separation Date occurs. Amounts remaining in the account after all eligible expenses have been paid will be forfeited. 

Group Auto & Homeowners Insurance 
 If you participate in the MetLife Group Auto & Homeowners Insurance on your Separation Date, your payroll deduction (and the applicable discount) will end on that date and you will be moved to
direct bill with MetLife. If you have any questions, please contact MetLife at 800-438-6388. 
 Group Legal Plan 

If you participate in the Group Legal Plan on your Separation Date, your coverage will end on that date. You may continue coverage on an individual basis
for 30 months after your Separation Date. If you elect to continue coverage, you must pre-pay for the coverage for 30 months. Contact Hyatt Legal for details at 800-821-6400. 
 Health and Insurance Benefits 
 Merck’s health and insurance benefits consist of the
following Merck plans and programs: medical (including prescription drug), dental, vision, health care and dependent care flexible spending accounts, life insurance (including basic and optional term life, dependent term life and accidental death
and dismemberment), 

  
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long term care and long term disability. Your participation in these plans ends as described elsewhere in this communication. However, a full month of contribution/premium for your coverage under
these plans in effect on your Separation Date may be deducted from your paycheck for the month in which your Separation Date occurs. 

Health Care Flexible Spending Account 

Your participation in the Health Care Flexible Spending Account (“HCFSA”) ends on your Separation Date, unless you elect to continue to
participate in accordance with COBRA for the remainder of the calendar year in which your Separation Date occurs. If you elect to continue participation in HCFSA under COBRA, you must make your required contributions on an after-tax basis. Eligible
expenses incurred while you participate in HCFSA during the calendar year in which your Separation Date occurs can be reimbursed up to your entire elected amount. Claims incurred after your participation in HCFSA ends cannot be reimbursed, no matter
how much money is left in the account. Claims for expenses incurred during the calendar year in which your Separation Date occurs and while you are a participant in HCFSA must be submitted to Horizon Blue Cross Blue Shield by April 15 of the
year following the year in which your Separation Date occurs. Amounts remaining in the account after all eligible expenses have been paid will be forfeited. 
 Long Term Care 
 If you elected coverage under Merck’s Long Term Care Plan for you (or
your spouse or same-sex domestic partner), that coverage will end on your Separation Date. However, you may continue coverage without interruption by contacting CNA (the insurer) and paying your first quarterly premium to CNA within 31 days after
the last day of the month in which your Separation Date occurs. For more information (and to request the necessary forms) contact CNA directly at 800-528-4582. 
 Long Term Disability 
 Your participation in the Long Term Disability Plan (“LTD
Plan”) will end on the last day of the month in which your Separation Date occurs. In other words, you must have satisfied the 26-week LTD Plan eligibility period by the end of the month that includes your Separation Date to be eligible for LTD
Plan benefits. If you are disabled and receiving income replacement benefits under the LTD Plan on your Separation Date, those benefits will continue in accordance with the terms of the LTD Plan. However, Separation Pay paid by the Employer under
the Separation Benefits Plan will be offset from benefits payable under the LTD Plan (meaning the LTD Plan benefits will be reduced by Separation Pay). 

  
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 Merck Deferral Program 
 Generally, the Merck Deferral Program first became available to certain eligible Legacy Schering Employees beginning January 1, 2010. If you have an account balance in the Merck & Co., Inc.
Deferral Program, your termination of employment will commence distribution of your account in accordance with your previously elected schedule, subject to applicable plan terms. For example, account balances less than $125,000 are distributed
without giving effect to the participant’s election, while distributions to certain of Merck’s most highly paid employees on account of termination of employment cannot be made for six months from the termination date. 

If you elected to defer all or part of your EIP/AIP distribution and receive a payment in lieu thereof as a result of your separation, your deferral
election to the Merck Deferral Program will apply to your payment in lieu of EIP/AIP. 
 Pension 

Schering-Plough Corporation Retirement Plan 
 The Schering-Plough Corporation Retirement Plan is a traditional defined benefit pension plan designed to provide an annuity payment each month during retirement. 

You are entitled to a benefit from the Retirement Plan if you do not participate in the Retirement Savings Plan for the Organon BioSciences U.S.
Affiliates and either 
  

	 	•	 	 you have five years of vesting service* with a Legacy Schering Entity on your Separation Date; or 

 

	 	•	 	 you are at least age 65. 

  

	*	Due to the number of terminations since the merger of Merck and Schering-Plough, by law special vesting rules apply. If you are involuntarily terminated, other than for
“Misconduct” (as defined in the Retirement Plan) between November 4, 2009 and December 31, 2012, you will be immediately vested. 

 You will receive a letter from the Retirement Center approximately three to six months following your Separation Date if you are a vested participant in the Retirement Plan. The letter explains your
rights under the plan, the dollar amount of your vested benefit and your options for initiating benefits under the plan. You will need to notify the Retirement Center at 866-201-2858 at least 30 days prior to the date you wish to commence your
benefit. 
 If the present value of your Retirement Plan benefit is more than $5,000, your retirement benefit will be payable at your Separation
Date or your normal retirement age (age 65) whichever is later. However, you may be eligible to 

  
 LSP Rebadged Employees

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receive your retirement benefit as an early retirement benefit as early as age 55 (which may be reduced in accordance with the terms of the Retirement Plan) to reflect the longer period of time
benefits are paid, or you may defer receipt of your benefit until age 65. Retirement benefits generally are paid as a monthly benefit for life, but optional forms of payments are available. 

If the present value of your accrued retirement benefit is $5,000 or less, the Retirement Center will send you information and
lump-sum payment election forms three to six months following your Separation Date. You will have 90 days from the date your election forms are mailed to return the forms. If the forms are not returned within 90 days, you will receive a lump-sum
payment if your benefit is less than $1,000 or, if your benefit is between $1,000 and $5,000, your payment will be rolled over into an Individual Retirement Account (IRA) at Fidelity. The lump-sum payment can be rolled over into an IRA or another
eligible qualified retirement plan that accepts rollovers. The lump-sum payment may be subject to federal, state and local income taxes, and if taken prior to age 59
 1/2, may be subject to an early withdrawal penalty
if not rolled over. Please consult your tax advisor if you are going to receive a distribution under the Retirement Plan. 
 BEP and
SERP 
 You may also be entitled to a pension benefit from the Benefit Equalization Plan (BEP) and Supplemental Executive Retirement Plan
(SERP), if eligible. You will receive information from the Retirement Center shortly after your Separation Date, which will outline the value of your benefits and instructions you must take in order to commence your benefit. 

If you are a SERP participant and have a distribution election on file to have your SERP/BEP payment transferred to the Savings Advantage Plan
(“SAP”) and distributed to you in annual installments, the transfer will take place as soon as administratively practicable following your Separation Date. Your annual installment payments will generally begin on April 1 following the
year you terminate employment. 
 If you are considered to be a “specified employee” under IRC Section 409A, your BEP or SERP/BEP
payment and/or annual installments from the SAP will be delayed for a period of six months following termination of employment. 
 Retirement
Account Plan for the Organon BioSciences U.S. Affiliates (“RAP”) 
 You are entitled to a benefit from the Retirement Account Plan
for the Organon BioSciences U.S. Affiliates if you were a participant in the Akzo Nobel Retirement Plan on January 1, 1998. If eligible, you will receive a letter from the Retirement Center approximately three to six months following your
Separation Date. The 

  
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letter explains your rights under the plan, the dollar amount of your vested benefit and your options for initiating benefits under the plan. 

Payments not Compensation for Retirement Plans. Separation Pay is not compensation for purposes of the Retirement Plan, BEP, SERP or RAP. A bonus
or the special payment, if any, in lieu of an AIP/EIP bonus paid after your Separation Date is also not compensation for purposes of these plans. 
 Sales Incentive Plan 
 If you are a participant in a sales incentive plan of Merck or its
subsidiaries, including the Employer, on your Separation Date, your eligibility to be paid a bonus, if any, will be determined under the terms and conditions of the plan in which you are a participant. 

Savings Plan 
 401(k) Savings Plan and
Savings Advantage Plan 
 If you are a participant in the Schering-Plough Employees’ Savings Plan (the “401(k) Savings Plan”)
and Savings Advantage Plan (“SAP” and collectively with the 401(k) Savings Plan, the “Savings Plans”), information about your Savings Plans’ accounts will be sent from Fidelity, the Savings Plans’ administrator,
approximately two to three weeks following your Separation Date. Please review the information carefully. If you do not receive the information, call Fidelity at 800-666-3725. 
 401(k) Savings Plan 
 If the value of your 401(k) Savings Plan account is less than $1,000
upon your Separation Date, you automatically will receive a distribution of your account balance under the plan as soon as practicable following your Separation Date. If your account balance is between $1,000 and $5,000 upon your Separation Date,
and you do not elect a lump sum distribution or a rollover within 45 days of your Separation Date, your account will be rolled over into an Individual Retirement Account (IRA) at Fidelity. 

If the value of your account is more than $5,000, you may take a distribution of your account balance or defer the funds in the plan
until April 1 of the calendar year following the year in which you reach age 70 1/2. Distribution options include a lump-sum payment or installment payments over a period not longer than the combined life expectancy of you and your beneficiary. You also may choose to roll over your
account balance into an eligible retirement plan that accepts rollovers or an IRA. 
 Your distribution may be
subject to federal, state and local income taxes and if taken prior to age 59 1/2, a possible early withdrawal penalty if not rolled over. 

  
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Because you are over age 55 on your Separation Date, the early withdrawal penalty may not apply to you. Please consult your tax advisor if you are going to receive a distribution under the 401(k)
Savings Plan. 
 If you have an outstanding 401(k) Savings Plan loan balance as of your Separation Date, you will have 60 days to repay the
balance. If the loan is not repaid within 60 days, the outstanding loan balance will be considered in default and will be treated as a partial distribution subject to taxation and a possible 10% early withdrawal penalty. Please consult your tax
advisor. 
 Savings Advantage Plan (SAP) 
 If eligible for the SAP, upon termination of employment, you will receive your distribution based on your elections on file. If eligible, you can check your SAP account balance or your current
distribution election by contacting Fidelity at 800-666-3725. If you are considered to be a “specified employee” under IRC Section 409A, and you have elected to receive distribution of your account upon termination of employment, your
distribution will be delayed for a period of six months following termination of employment. 
 Retirement Savings Plan for the Organon
BioSciences US Affiliates (the “RSP 401k Savings Plan”) 
 If eligible for the RSP 401k Savings Plan, information about your
account will be sent by Fidelity, the RSP 401k Savings Plan administrator, approximately two to three weeks following your Separation Date, If you do not receive the information, call Fidelity at 800-835-5095. 

Generally, in order to be vested in the Company Contribution portion of your RSP 401(k) Savings Plan account, you need three years of vesting service.
However, due to the number of terminations since the merger of Merck and Schering-Plough, by law special vesting rules apply. If you are involuntarily terminated, other than for “Misconduct” (as defined in the RSP 401(k) Savings Plan)
between November 4, 2009 and December 31, 2012, you will be immediately vested in the Company Contribution portion of your account. You are always 100% vested in your contributions and any matching contributions. 

If the value of your RSP 401(k) Savings Plan account is less than $1,000 upon your Separation Date, you will automatically receive a lump sum
distribution. However, you will first receive information from Fidelity giving you the option to elect wither a rollover distribution or a lump sum payment. If you do not make a timely election Fidelity will then process your lump sum distribution.

 If the value of your account is more than $1,000, you may take a distribution of your account balance or defer the funds
in the plan until April 1 of the calendar year following the year in which you reach age 70 1/2. You also may choose to 

  
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roll over your account balance into an eligible retirement plan that accepts rollovers or an IRA. 
 Your distribution may be subject to federal, state and local income taxes and if taken prior to age
59 1/2, a possible early withdrawal penalty if not
rolled over. Because you are over age 55 on your Separation Date, the early withdrawal penalty may not apply to you. Please consult your tax advisor if you are going to receive a distribution under the RSP 401(k) Savings Plan. 

If you have an outstanding RSP 401(k) Savings Plan loan balance as of your Separation Date, you will have until the end of the calendar quarter following
the calendar quarter in which your Separation Date occurs to repay the balance. If the loan is not repaid in this time period, the outstanding loan balance will be considered in default and will be treated as a partial distribution subject to
taxation and a possible 10% early withdrawal penalty. Please consult your tax advisor. 
 Payments not Compensation for Savings Plans.
Any Separation Pay you receive under the Separation Benefits Plan may not be contributed to the Savings Plans or the RSP 410(k) Savings Plan and is not considered eligible compensation for Company Contribution purposes. A bonus or the special
payment, if any, in lieu of an AIP/EIP bonus paid after your Separation Date is also not compensation for purposes of these plans. 
 Shining
Performance Program 
 You have up to 90 days following your Separation Date to redeem any points earned under the Shining Performance
Program. You can call Maritz customer service at 800-237-4047 to redeem your points. 
 Short Term Disability 

Subject to applicable state law, your participation in the Short Term Disability Plan (“STD Plan”) ends on your Separation Date. If you are
disabled and are receiving income replacement benefits under the STD Plan on your Separation Date, those benefits will continue in accordance with the terms of the plan. However, subject to state law, Separation Pay paid by the Employer under the
Separation Benefits Plan will act as an offset from benefits payable under the STD Plan (meaning the STD Plan benefits will be reduced by the Separation Pay). Where state law does not permit such offsets to be made to STD Plan benefits (or where the
Employer in its sole and absolute discretion determines it is easier for the Employer to administer), STD Plan benefits will instead act as an offset from Separation Pay paid (or payable) by the Employer under the Separation Benefits Plan (meaning
Separation Pay will be reduced by the STD Plan benefits). The amount of the offset will be established by the Employer and 

  
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will be a good faith estimate of the STD Plan benefits payable to the employee after the employee’s Separation Date. 
 Vacation Pay/Floating Holidays 
 If you accept the Negotiated Job Offer (as defined in the
Separation Benefits Plan) and the outsource vendor agrees to honor the vacation you have accrued but not used as of your Separation Date, you will not be paid for your accrued unused vacation, unless otherwise required by state law. If you do not
accept the Negotiated Job Offer or the outsource vendor does not agree to honor the vacation you have accrued but not used as of your Separation Date, you will be paid for any amount of vacation that you have accrued but not used as of your
Separation Date. Conversely, you must reimburse the Employer for any vacation you used prior to your Separation Date that you had not earned as of your Separation Date. Any such amounts to be reimbursed may be deducted from any Separation Pay paid
pursuant to the Separation Benefits Plan. You will not be paid for unused vacation days carried over from the calendar year prior to your Separation Date or for floating holidays that are unused as of your Separation Date, unless payment is required
under state law. 
 Vision 

Coverage under the Vision Plan ends on the last day of the month in which your Separation Date occurs. You will be given the opportunity to continue this
benefit in accordance with COBRA for up to 18 months from your Separation Date by paying the required premiums. 

  
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 * * * 
 Other Important Information 
 Parent (or its applicable subsidiary) retains the right (to
the extent permitted by law) to amend or terminate the Separation Benefits Plan and any other benefit or plan described in this brochure (or otherwise) at any time and nothing in this Brochure in any way limits that right. However, following a
“change in control” of Merck (as defined in the Merck & Co., Inc. Change in Control Separation Benefits Plan, as it may be amended from time to time), certain limitations apply to the ability of Parent (or its applicable
subsidiary) to amend or terminate its benefit plans. 
 Notwithstanding anything in the Separation Program to the contrary, benefits
under the Separation Program that are subject to Section 409A of the Internal Revenue Code of 1986, as amended, will be adjusted to avoid the excise tax under Section 409A. Parent or Employer will take any and all steps it determines are
necessary, in its sole and absolute discretion, to adjust benefits under the Separation Program to avoid the excise tax under Section 409A, including but not limited to, reducing or eliminating benefits, changing the time or form of payment of
benefits, etc. 
 Payments made on account of separation from service are limited during the six months following the termination of
employment of a “Specified Employee” as defined in Treas. Reg. Sec. 1.409A-1(i) or any successor thereto, which in general includes the top 50 employees of a company ranked by compensation. Notwithstanding anything contained in the
Separation Program to the contrary, if a Covered Employee is a “Specified Employee” on his or her Separation Date, to the extent required by Section 409A of the Internal Revenue Code of 1986, as amended, no payments will be made
during the six-month period following termination of employment. Instead, amounts that would otherwise have been paid during that six-month period will be accumulated and paid, without interest, as soon as administratively feasible following the end
of such six-month period after termination of employment. 

  
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24 

 Glossary of Definitions 
 As used in this document, the following terms have the following meanings. 
 “Benefit
Service” is (i) for Legacy Schering Employees who are not Legacy OBS Employees as defined in the Retirement Plan and (ii) for Legacy OBS Employees as defined in the RSP 401(k) Savings Plan. 

“Employer” means individually and collectively, each direct and indirect wholly owned subsidiary of Merck & Co., Inc. excluding each
Legacy Merck Entity (as defined in the Separation Benefits Plan) and Inspire Pharmaceuticals, Inc. 
 “Legacy OBS Employee” means a
Legacy Schering Employee who is a participant in the RSP 401(k) Savings Plan. 
 “Legacy Schering Employee” is as defined in the
Separation Benefits Plan. 
 “Parent” means Merck & Co., Inc. 
 “Pension Retirement Eligible” means that as of your Separation Date you are a Legacy Schering Employee and as of that date you are at least age 55 with at least 5 years of Benefit Service or you
are at least age 65. 
 “Rebadged Employee” is as defined in the Separation Benefits Plan. 

“Retiree Healthcare Bridge Eligible” means that as of your Separation Date you are a Legacy Schering Employee who is a Rebadged Employee who is
not Retiree Healthcare Subsidy Eligible and (i) if your Separation Date occurs in 2012 you are at least age 49 with at least 9 years of Benefit Service on your Separation Date, or (ii) if your Separation Date occurs in 2013 you are at
least age 50 with at least 10 years of Benefit Service as of December 31 of the year in which your Separation Date occurs, or (iii) if your Separation Date occurs in 2014 you are at least age 51 with at least 10 years of Benefit Service as
of December 31 of the year in which your Separation Date occurs, or (iv) if your Separation Date occurs in 2015 or thereafter you are at least age 52 with at least 10 years of Benefit Service as of December 31 of the year in which
your Separation Date occurs. 
 “Retiree Healthcare Commencement Date” means the date your retiree healthcare benefits begin as
described in this Brochure. 
 “Retiree Healthcare Eligible” means collectively Retiree Healthcare Access Eligible and Retiree
Healthcare Subsidy Eligible. 
 “Retiree Healthcare Access Eligible” means that as of your Separation Date you are a Legacy Schering
Employee who is at least age 55 and has at least 5 but 

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

25 

 
less than 10 years of Benefit Service. A Separated Retirement Eligible Employee who is Retiree Healthcare Access Eligible on his/her Separation Date is eligible for retiree medical coverage at
access rates. 
 “Retiree Healthcare Subsidy Eligible” means that as of your Separation Date you are a Legacy Schering Employee who is
at least age 55 and you have at least 10 years of Benefit Service. A Separated Retirement Eligible Employee who is Retiree Healthcare Subsidy Eligible on his/her Separation Date is eligible for retiree medical coverage at subsidized rates.

 “Retirement Plan” means the Retirement Plan for Salaried Employees of MSD 
 “RSP 401(k) Savings Plan” means the Retirement Savings Plan for the Organon BioSciences US Affiliates. 
 “Separation Benefits Plan” means the Merck & Co., Inc. US Separation Benefits Plan. 
 “Separation Date” means a Rebadged Employee’s last day of employment with the Employer. 
 “Separation Letter” means the letter provided by Parent or the employer that that includes a “Release of Claims” (as defined in the Separation Benefits Plan). 

“Separation Letter Return Date” is the date stated in the Separation Letter (or as extended by the Employer at its sole discretion) by which
Rebadged Employees must sign and return it to Parent or Employer. 
 “Separation Pay” is as defined in the Separation Benefits Plan
and applicable to Rebadged Employees. 
 “Separation Plan SPD” means the SPD for the Merck & Co., Inc. US Separation Benefits
Plan. 
 “Separation Program” means the (i) Separation Pay applicable to Rebadged Employees under the Separation Benefits Plan,
(ii) provisions described in this Brochure applicable to (A) eligibility for retiree medical benefits at subsidized rates for those who are Retiree Healthcare Bridge Eligible, (B) treatment under Merck’s options, RSUs and PSUs
(i) as retired for those who are Pension Retirement Eligible, and (ii) as involuntarily terminated, and (C) payment in lieu of AIP/EIP. A signed Separation Letter is not required for the benefits described in clause ((B). 

“SPDs” means summary plan descriptions of various employee benefit plans sponsored by Merck & Co., Inc. or one of its wholly owned
subsidiaries. 

  
 LSP Rebadged Employees

 Effective as of January 1, 2012 

Revised as of December 12, 2011 

26

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