Document:

<PAGE>

================================================================================

                                                                   Exhibit 10(e)

                                MERCK & CO., INC.

                            2001 INCENTIVE STOCK PLAN

                              (amended and restated
                               February 26, 2002)

================================================================================

<PAGE>

                            2001 INCENTIVE STOCK PLAN

     The 2001 Incentive Stock Plan ("ISP"), effective January 1, 2001, is
established to encourage employees of Merck & Co., Inc. (the "Company"), its
subsidiaries, its affiliates and its joint ventures to acquire Common Stock in
the Company ("Common Stock"). It is believed that the ISP will stimulate
employees' efforts on the Company's behalf, will tend to maintain and strengthen
their desire to remain with the Company, will be in the interest of the Company
and its Stockholders and will encourage such employees to have a greater
personal financial investment in the Company through ownership of its Common
Stock.

1.   Incentives

     Incentives under the ISP may be granted in any one or a combination of (a)
Incentive Stock Options (or other statutory stock options); (b) Nonqualified
Stock Options; (c) Stock Appreciation Rights; (d) Restricted Stock Grants and
(e) Performance Shares (collectively "Incentives"). All Incentives shall be
subject to the terms and conditions set forth herein and to such other terms and
conditions as may be established by the Compensation and Benefits Committee of
the Board of Directors (the "Committee").

2.   Eligibility

     Regular full-time and part-time employees of the Company, its subsidiaries,
its affiliates and its joint ventures, including officers, whether or not
directors of the Company, and employees of a joint venture partner or affiliate
of the Company who provide services to the joint venture with such partner or
affiliate, shall be eligible to participate in the ISP ("Eligible Employees") if
designated by the Committee. Directors of the Company who are not regular
employees are not eligible to participate in the ISP.

3.   Administration

     The ISP shall be administered by the Committee. The Committee shall be
responsible for the administration of the ISP including, without limitation,
determining which Eligible Employees receive Incentives, what kind of Incentives
are made under the ISP and for what number of shares, and the other terms and
conditions of such Incentives. Determinations by the Committee under the ISP
including, without limitation, determinations of the Eligible Employees, the
form, amount and timing of Incentives, the terms and provisions of Incentives
and the agreements evidencing Incentives, need not be uniform and may be made
selectively among Eligible Employees who receive, or are eligible to receive,
Incentives hereunder, whether or not such Eligible Employees are similarly
situated.

     The Committee shall have the responsibility of construing and interpreting
the ISP and of establishing and amending such rules and regulations as it may
deem necessary or desirable for the proper administration of the ISP. Any
decision or action taken or to be taken by the Committee, arising out of or in
connection with the construction, administration, interpretation and effect of
the ISP and of its rules and regulations, shall, to the maximum extent permitted
by applicable law, be within its absolute discretion (except as otherwise
specifically provided herein) and shall be conclusive and binding upon the
Company, all Eligible Employees and any person claiming under or through any
Eligible Employee.

<PAGE>

     The Committee may delegate some or all of its power and authority hereunder
to the Chief Executive Officer or other senior member of management as the
Committee deems appropriate; provided, however, that the Committee may not
delegate its authority with regard to any matter or action affecting an officer
subject to Section 16 of the Securities Exchange Act of 1934.

     For the purpose of this section and all subsequent sections, the ISP shall
be deemed to include this plan and any comparable sub-plans established by
subsidiaries which, in the aggregate, shall constitute one plan governed by the
terms set forth herein.

4.   Shares Available for Incentives

     (a) Shares Subject to Issuance or Transfer. Subject to adjustment as
provided in Section 4(c) hereof, there is hereby reserved for issuance under the
ISP 95 million shares of Common Stock. The shares available for granting awards
shall be increased by the number of shares as to which options or other benefits
granted under the ISP have lapsed, expired, terminated or been canceled. In
addition, any shares reserved for issuance under the Company's 1996 Incentive
Stock Plan and 1991 Incentive Stock Plan ("Prior Plans") in excess of the number
of shares as to which options or other benefits have been awarded thereunder,
plus any such shares as to which options or other benefits granted under the
Prior Plans may lapse, expire, terminate or be canceled, shall also be reserved
and available for issuance or reissuance under the ISP. Shares under this ISP
may be delivered by the Company from its authorized but unissued shares of
Common Stock or from Common Stock held in the Treasury.

     (b) Limit on an Individual's Incentives. In any given year, no Eligible
Employee may receive Incentives covering more than three (3) million shares of
the Company's Common Stock (such number of shares shall be adjusted in
accordance with Section 4(c)).

     (c) Adjustment of Shares. In the event of a reorganization,
recapitalization, stock split, stock dividend, combination of shares, merger,
consolidation, rights offering, spin off, split off, split up or other event
identified by the Committee, the Committee shall make such adjustments, if any,
as it may deem appropriate in (i) the number and kind of shares authorized for
issuance under the ISP, (ii) the number and kind of shares subject to
outstanding Incentives, (iii) the option price of Stock Options and (iv) the
fair market value of stock appreciation rights, provided that fractions of a
share will be rounded down to the nearest whole share.

5.   Stock Options

     The Committee may grant options qualifying as Incentive Stock Options under
the Internal Revenue Code of 1986, as amended, or any successor code thereto
(the "Code"), other statutory options under the Code and Nonqualified Options
(collectively "Stock Options"). Such Stock Options shall be subject to the
following terms and conditions and such other terms and conditions as the
Committee may prescribe:

          (a) Option Price. The option price per share with respect to each
     Stock Option shall be determined by the Committee, but shall not be less
     than 100% of the fair market value of the Common Stock on the date the
     Stock Option is granted, as determined by the Committee.

          (b) Period of Option. The period of each Stock Option shall be fixed
     by the Committee, but shall not exceed ten (10) years.

                                       2

<PAGE>

          (c) Payment. No shares shall be issued until full payment of the
     option price has been made. The option prices may be paid in cash or, if
     the Committee determines, in shares of Common Stock or a combination of
     cash and shares. If the Committee approves the use of shares of Common
     Stock as a payment method, the Committee shall establish such conditions as
     it deems appropriate for the use of Common Stock to exercise a stock
     option. Stock options awarded under the ISP shall be exercised through the
     Company's broker-assisted stock option exercise program, provided such
     program is available at the time of the option exercise, or by such other
     means as the Committee may determine from time to time. The Committee may
     establish rules and procedures to permit an optionholder to defer
     recognition of gain upon the exercise of a stock option.

          (d) Exercise of Option. The Committee shall determine how and when
     shares covered by a Stock Option may be purchased. The Committee may
     establish waiting periods, the dates on which options become exercisable or
     "vested" and exercise periods, provided that in no event (including those
     specified in paragraphs (e), (f) and (g) of this section) shall any Stock
     Option be exercisable after its specified expiration period.

          (e) Termination of Employment. Upon the termination of a Stock Option
     grantee's employment (for any reason other than retirement, death or
     termination for deliberate, willful or gross misconduct), Stock Option
     privileges shall be limited to the shares which were immediately
     exercisable at the date of such termination. The Committee, however, in its
     discretion, may provide that any Stock Options outstanding but not yet
     exercisable upon the termination of a Stock Option grantee's employment may
     become exercisable in accordance with a schedule as may be determined by
     the Committee. Such Stock Option privileges shall expire unless exercised
     or surrendered under a Stock Appreciation Right within such period of time
     after the date of termination of employment as may be established by the
     Committee, but in no event later than the expiration date of the Stock
     Option.

          (f) Retirement. Upon retirement of a Stock Option grantee, Stock
     Option privileges shall apply to those shares immediately exercisable at
     the date of retirement. The Committee, however, in its discretion, may
     provide that any Stock Options outstanding but not yet exercisable upon the
     retirement of a Stock Option grantee may become exercisable in accordance
     with a schedule as may be determined by the Committee. Stock Option
     privileges shall expire unless exercised within such period of time as may
     be established by the Committee, but in no event later than the expiration
     date of the Stock Option.

          (g) Death. Upon the death of a Stock Option grantee, Stock Option
     privileges shall apply to those shares which were immediately exercisable
     at the time of death. The Committee, however, in its discretion, may
     provide that any Stock Options outstanding but not yet exercisable upon the
     death of a Stock Option grantee may become exercisable in accordance with a
     schedule as may be determined by the Committee. Such privileges shall
     expire unless exercised by legal representative(s) within a period of time
     as determined by the Committee, but in no event later than the expiration
     date of the Stock Option.

          (h) Termination due to Misconduct. If a Stock Option grantee's
     employment is terminated for deliberate, willful or gross misconduct, as
     determined by the Company, all rights under the Stock Option shall expire
     upon receipt of the notice of such termination.

          (i) Limits on Incentive Stock Options. Except as may otherwise be
     permitted by the Code, the Committee shall not grant to an Eligible
     Employee Incentive Stock Options that, in the aggregate, are first
     exercisable during any one calendar year to the extent that the aggregate
     fair market value of the Common Stock, at the time the Incentive Stock
     Options are granted, exceeds $100,000, or such other amount as the Internal
     Revenue Service may decide from time to time.

                                       3

<PAGE>

6.   Stock Appreciation Rights

     The Committee may, in its discretion, grant a right to receive the
appreciation in the fair market value of shares of Common Stock ("Stock
Appreciation Right") either singly or in combination with an underlying Stock
Option granted hereunder or under the Prior Plans. Such Stock Appreciation
Rights shall be subject to the following terms and conditions and such other
terms and conditions as the Committee may prescribe:

          (a) Time and Period of Grant. If a Stock Appreciation Right is granted
     with respect to an underlying Stock Option, it may be granted at the time
     of the Stock Option grant or at any time thereafter but prior to the
     expiration of the Stock Option grant. If a Stock Appreciation Right is
     granted with respect to an underlying Stock Option, at the time the Stock
     Appreciation Right is granted the Committee may limit the exercise period
     for such Stock Appreciation Right, before and after which period no Stock
     Appreciation Right shall attach to the underlying Stock Option. In no event
     shall the exercise period for a Stock Appreciation Right granted with
     respect to an underlying Stock Option exceed the exercise period for such
     Stock Option. If a Stock Appreciation Right is granted without an
     underlying Stock Option, the period for exercise of the Stock Appreciation
     Right shall be set by the Committee.

          (b) Value of Stock Appreciation Right. If a Stock Appreciation Right
     is granted with respect to an underlying Stock Option, the grantee will be
     entitled to surrender the Stock Option which is then exercisable and
     receive in exchange therefor an amount equal to the excess of the fair
     market value of the Common Stock on the date the election to surrender is
     received by the Company over the Stock Option price multiplied by the
     number of shares covered by the Stock Option which is surrendered. If a
     Stock Appreciation Right is granted without an underlying Stock Option, the
     grantee will receive upon exercise of the Stock Appreciation Right an
     amount equal to the excess of the fair market value of the Common Stock on
     the date the election to surrender such Stock Appreciation Right is
     received by the Company over the fair market value of the Common Stock on
     the date of grant multiplied by the number of shares covered by the grant
     of the Stock Appreciation Right.

          (c) Payment of Stock Appreciation Right. Payment of a Stock
     Appreciation Right shall be in the form of shares of Common Stock, cash or
     any combination of shares and cash. The form of payment upon exercise of
     such a right shall be determined by the Committee either at the time of
     grant of the Stock Appreciation Right or at the time of exercise of the
     Stock Appreciation Right.

7.   Performance Share Awards

     The Committee may grant awards under which payment may be made in shares of
Common Stock, cash or any combination of shares and cash if the performance of
the Company or any subsidiary, division, affiliate or joint venture of the
Company selected by the Committee during the Award Period meets certain goals
established by the Committee ("Performance Share Awards"). Such Performance
Share Awards shall be subject to the following terms and conditions and such
other terms and conditions as the Committee may prescribe:

          (a) Award Period and Performance Goals. The Committee shall determine
     and include in a Performance Share Award grant the period of time for which
     a Performance Share Award is made ("Award Period"). The Committee shall
     also establish performance objectives ("Performance Goals") to be met by
     the Company, subsidiary, division or joint venture during the Award Period
     as a condition to payment of the Performance Share Award. The Performance
     Goals may include earnings per share, return on stockholders' equity,
     return on assets, net income or any other financial or other measurement
     established by the Committee. The Performance Goals may include minimum and
     optimum objectives or a single set of objectives.

                                       4

<PAGE>

          (b) Payment of Performance Share Awards. The Committee shall establish
     the method of calculating the amount of payment to be made under a
     Performance Share Award if the Performance Goals are met, including the
     fixing of a maximum payment. The Performance Share Award shall be expressed
     in terms of shares of Common Stock and referred to as "Performance Shares."
     After the completion of an Award Period, the performance of the Company,
     subsidiary, division or joint venture shall be measured against the
     Performance Goals, and the Committee shall determine whether all, none or
     any portion of a Performance Share Award shall be paid. The Committee, in
     its discretion, may elect to make payment in shares of Common Stock, cash
     or a combination of shares and cash. Any cash payment shall be based on the
     fair market value of Performance Shares on, or as soon as practicable prior
     to, the date of payment.

          (c) Revision of Performance Goals. At any time prior to the end of an
     Award Period, the Committee may revise the Performance Goals and the
     computation of payment if unforeseen events occur which have a substantial
     effect on the performance of the Company, subsidiary, division or joint
     venture and which, in the judgment of the Committee, make the application
     of the Performance Goals unfair unless a revision is made.

          (d) Requirement of Employment. A grantee of a Performance Share Award
     must remain in the employ of the Company until the completion of the Award
     Period in order to be entitled to payment under the Performance Share
     Award; provided that the Committee may, in its discretion, provide for a
     full or partial payment where such an exception is deemed equitable.

          (e) Dividends. The Committee may, in its discretion, at the time of
     the granting of a Performance Share Award, provide that any dividends
     declared on the Common Stock during the Award Period, and which would have
     been paid with respect to Performance Shares had they been owned by a
     grantee, be (i) paid to the grantee, or (ii) accumulated for the benefit of
     the grantee and used to increase the number of Performance Shares of the
     grantee.

          (f) Limit on Performance Share Awards. Incentives granted as
     Performance Share Awards under this section and Restricted Stock Grants
     under Section 8 shall not exceed, in the aggregate, six (6) million shares
     of Common Stock (such number of shares shall be adjusted in accordance with
     Section 4(c)).

8.   Restricted Stock Grants

     The Committee may award shares of Common Stock to a grantee, which shares
shall be subject to the following terms and conditions and such other terms and
conditions as the Committee may prescribe ("Restricted Stock Grant"):

          (a) Requirement of Employment. A grantee of a Restricted Stock Grant
     must remain in the employment of the Company during a period designated by
     the Committee ("Restriction Period") in order to retain the shares under
     the Restricted Stock Grant. If the grantee leaves the employment of the
     Company prior to the end of the Restriction Period, the Restricted Stock
     Grant shall terminate and the shares of Common Stock shall be returned
     immediately to the Company provided that the Committee may, at the time of
     the grant, provide for the employment restriction to lapse with respect to
     a portion or portions of the Restricted Stock Grant at different times
     during the Restriction Period. The Committee may, in its discretion, also
     provide for such complete or partial exceptions to the employment
     restriction as it deems equitable.

                                       5

<PAGE>

          (b) Restrictions on Transfer and Legend on Stock Certificates. During
     the Restriction Period, the grantee may not sell, assign, transfer, pledge
     or otherwise dispose of the shares of Common Stock. Each certificate for
     shares of Common Stock issued hereunder shall contain a legend giving
     appropriate notice of the restrictions in the grant.

          (c) Escrow Agreement. The Committee may require the grantee to enter
     into an escrow agreement providing that the certificates representing the
     Restricted Stock Grant will remain in the physical custody of an escrow
     holder until all restrictions are removed or expire.

          (d) Lapse of Restrictions. All restrictions imposed under the
     Restricted Stock Grant shall lapse upon the expiration of the Restriction
     Period if the conditions as to employment set forth above have been met.
     The grantee shall then be entitled to have the legend removed from the
     certificates.

          (e) Dividends. The Committee shall, in its discretion, at the time of
     the Restricted Stock Grant, provide that any dividends declared on the
     Common Stock during the Restriction Period shall either be (i) paid to the
     grantee, or (ii) accumulated for the benefit of the grantee and paid to the
     grantee only after the expiration of the Restriction Period.

          (f) Limit on Restricted Stock Grant. Incentives granted as Restricted
     Stock Grants under this section and Performance Share Awards under Section
     7 shall not exceed, in the aggregate, six (6) million shares of Common
     Stock (such number of shares shall be adjusted in accordance with Section
     4(c)).

9.   Transferability

     Each Incentive Stock Option granted under the ISP shall not be transferable
other than by will or the laws of descent and distribution; each other Incentive
granted under the ISP will not be transferable or assignable by the recipient,
and may not be made subject to execution, attachment or similar procedures,
other than by will or the laws of descent and distribution or as determined by
the Committee in accordance with regulations promulgated under the Securities
Exchange Act of 1934, or any other applicable law or regulation.

10.  Discontinuance or Amendment of the Plan

     The Board of Directors may discontinue the ISP at any time and may from
time to time amend or revise the terms of the ISP as permitted by applicable
statutes, except that it may not revoke or alter, in a manner unfavorable to the
grantees of any Incentives hereunder, any Incentives then outstanding, nor may
the Board amend the ISP without stockholder approval where the absence of such
approval would cause the Plan to fail to comply with Rule 16b-3 under the
Securities Exchange Act of 1934, or any other requirement of applicable law or
regulation. Unless approved by the Company's stockholders, no adjustments or
reduction of the exercise price of any outstanding Incentives shall be made by
cancellation of outstanding Incentives and the subsequent regranting of
Incentives at a lower price to the same individual. No Incentive shall be
granted under the ISP after December 31, 2003, but Incentives granted
theretofore may extend beyond that date.

11.  No Right of Employment or Participation

     The ISP and the Incentives granted hereunder shall not confer upon any
Eligible Employee the right to continued employment with the Company, its
subsidiaries, its affiliates or its joint ventures or affect in any way the
right of such entities to terminate the employment of an Eligible Employee at
any time and for any reason. No individual shall have a right to be granted an
Incentive, or having been granted an Incentive, to receive any future
Incentives.

                                       6

<PAGE>

12.  No Limitation on Compensation

     Nothing in the ISP shall be construed to limit the right of the Company to
establish other plans or to pay compensation to its employees, in cash or
property, in a manner which is not expressly authorized under the ISP.

13.  No Impact on Benefits

     Except as may otherwise be specifically stated under any employee benefit
plan, policy or program, no amount payable in respect of any Incentive shall be
treated as compensation for purposes of calculating an employee's right under
any such plan, policy or program.

14.  No Constraint on Corporate Action

     Nothing in the ISP shall be construed (i) to limit, impair or otherwise
affect the Company's right or power to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure, or to merge or
consolidate, or dissolve, liquidate, sell or transfer all or any part of its
business or assets, or (ii) except as provided in Section 10, to limit the right
or power of the Company or any subsidiary to take any action which such entity
deems to be necessary or appropriate.

15.  Withholding Taxes

     The Company shall be entitled to deduct from any payment under the ISP,
regardless of the form of such payment, the amount of all applicable income and
employment taxes required by law to be withheld with respect to such payment or
may require the Eligible Employee to pay to it such tax prior to and as a
condition of the making of such payment. In accordance with any applicable
administrative guidelines it establishes, the Committee may allow an Eligible
Employee to pay the amount of taxes required by law to be withheld from an
Incentive by withholding from any payment of Common Stock due as a result of
such Incentive, or by permitting the Eligible Employee to deliver to the
Company, shares of Common Stock having a fair market value, as determined by the
Committee, equal to the amount of such required withholding taxes.

16.  Governing Law

     The ISP, and all agreements hereunder, shall be construed in accordance
with and governed by the laws of the State of New Jersey.

                                       7<PAGE>

================================================================================

                                                                   Exhibit 10(k)

                                MERCK & CO., INC.

                          PLAN FOR DEFERRED PAYMENT OF

                             DIRECTORS' COMPENSATION

                  (Amended and Restated as of January 1, 2002)

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                          Page
<S>                                                                                                         <C>
Article I         Purpose                                                                                   1

Article II        Election of Deferral, Measurement Methods and Distribution Schedule                       1

Article III       Valuation of Deferred Amounts                                                             2

Article IV        Redesignation Within a Deferral Account                                                   3

Article V         Payment of Deferred Amounts                                                               4

Article VI        Designation of Beneficiary                                                                5

Article VII       Plan Amendment or Termination                                                             5

Schedule A        Measurement Methods                                                                       6
</TABLE>

                                       (i)

<PAGE>

                                MERCK & CO., INC.
                          PLAN FOR DEFERRED PAYMENT OF
                             DIRECTORS' COMPENSATION

I.       PURPOSE

         To provide an arrangement under which directors of Merck & Co., Inc.
         other than current employees may (i) elect to voluntarily defer payment
         of the annual retainer and meeting and committee fees until after
         termination of their service as a director, and (ii) value compensation
         mandatorily deferred on their behalf.

II.      ELECTION OF DEFERRAL, MEASUREMENT METHODS AND
         DISTRIBUTION SCHEDULE

         A.       Election of Voluntary Deferral Amount
                  -------------------------------------

         1.       Prior to December 28 of each year, each director is entitled
                  to make an irrevocable election to defer until termination of
                  service as a director receipt of payment of (a) 50% or 100% of
                  the retainer for the 12 months beginning April 1 of the next
                  calendar year, (b) 50% or 100% of the Committee Chairperson
                  retainer beginning April 1 of the next calendar year, and (c)
                  50% or 100% of the meeting and committee fees for the 12
                  months beginning April 1 of the next calendar year.

         2.       Prior to commencement of duties as a director, a director
                  newly elected or appointed to the Board during a calendar year
                  must make the election under this paragraph for the portion of
                  the Voluntary Deferral Amount applicable to such director's
                  first year of service (or part thereof).

         3.       The Voluntary Deferral Amount shall be credited as follows:
                  (1) Meeting and committee fees that are deferred are credited
                  as of the day the director's services are rendered; (2) if the
                  Board retainer and/or Committee Chairperson retainer is
                  deferred, a pro-rata share of the deferred retainer is
                  credited on the last business day of each calendar quarter.
                  The dates the Voluntary Deferral Amount, or parts thereof, are
                  credited to the director's deferred account are hereinafter
                  referred to as the Voluntary Deferral Dates.

         B.       Mandatory Deferral Amount
                  -------------------------

         1.       On the Friday following the Company's Annual Meeting of
                  Stockholders (such Friday hereinafter referred to as the
                  "Mandatory Deferral Date"), each director will be credited
                  with an amount equivalent to one-third of the annual cash
                  retainer for the 12 month period beginning on the April 1
                  preceding the Annual Meeting (the "Mandatory Deferral
                  Amount"). The Mandatory Deferral Amount will be measured by
                  the Merck Common Stock account.

         2.       A director newly elected or appointed to the Board after the
                  Mandatory Deferral Date will be credited with a pro rata
                  portion of the Mandatory Deferral Amount applicable to such
                  director's first year of service (or part thereof). Such pro
                  rata portion shall be credited to the director's account on
                  the first day of such director's service.

<PAGE>

         C.       Election of Measurement Method
                  ------------------------------

                  Each such annual election referred to in Section A shall
                  include an election as to the measurement method or methods by
                  which the value of amounts deferred will be measured in
                  accordance with Article III, below. The available measurement
                  methods are set forth on Schedule A hereto.

         D.       Election of Distribution Schedule
                  ---------------------------------

                  Each annual election referred to in Section A above shall also
                  include an election to receive payment following termination
                  of service as a director of all Voluntary Deferral Amounts and
                  Mandatory Deferral Amounts in a lump sum either immediately or
                  one year after such termination, or in quarterly or annual
                  installments over five, ten or fifteen years.

III.     VALUATION OF DEFERRED AMOUNTS

         A.       Common Stock
                  ------------

         1.       Initial Crediting. The annual Mandatory Deferral Amount shall
                  be used to determine the number of full and partial shares of
                  Merck Common Stock which such amount would purchase at the
                  closing price of the Common Stock on the New York Stock
                  Exchange on the Mandatory Deferral Date.

                  That portion of the Voluntary Deferral Amount allocated to
                  Merck Common Stock shall be used to determine the number of
                  full and partial shares of Merck Common Stock which such
                  amount would purchase at the closing price of the Common Stock
                  on the New York Stock Exchange on the applicable Voluntary
                  Deferral Date.

                  However, should it be determined by the Committee on Directors
                  of the Board of Directors that a measurement of Merck Common
                  Stock on any Mandatory or Voluntary Deferral Date would not
                  constitute fair market value, then the Committee shall decide
                  on which date fair market value shall be determined using the
                  valuation method set forth in this Article III, Section A.1.

                  At no time during the deferral period will any shares of Merck
                  Common Stock be purchased or earmarked for such deferred
                  amounts nor will any rights of a shareholder exist with
                  respect to such amounts.

         2.       Dividends. Each director's account will be credited with the
                  additional number of full and partial shares of Merck Common
                  Stock which would have been purchasable with the dividends on
                  shares previously credited to the account at the closing price
                  of the Common Stock on the New York Stock Exchange on the date
                  each dividend was paid.

         3.       Distributions. Distribution from the Merck Common Stock
                  account will be valued at the closing price of Merck Common
                  Stock on the New York Stock Exchange on the distribution date.

                                       2

<PAGE>

         B.       Mutual Funds
                  ------------

         1.       Initial Crediting. The amount allocated to each Mutual Fund
                  shall be used to determine the full and partial Mutual Fund
                  shares which such amount would purchase at the closing net
                  asset value of the Mutual Fund shares on the Mandatory or
                  Voluntary Deferral Date, whichever is applicable. The
                  director's account will be credited with the number of full
                  and partial Mutual Fund shares so determined.

                  At no time during the deferral period will any Mutual Fund
                  shares be purchased or earmarked for such deferred amounts nor
                  will any rights of a shareholder exist with respect to such
                  amounts.

         2.       Dividends. Each director's account will be credited with the
                  additional number of full and partial Mutual Fund shares which
                  would have been purchasable, at the closing net asset value of
                  the Mutual Fund shares as of the date each dividend is paid on
                  the Mutual Fund shares, with the dividends which would have
                  been paid on the number of shares previously credited to such
                  account (including pro rata dividends on any partial shares).

         3.       Distributions. Mutual Fund distributions will be valued based
                  on the closing net asset value of the Mutual Fund shares on
                  the distribution date.

         C.       Adjustments
                  -----------

                  In the event of a reorganization, recapitalization, stock
                  split, stock dividend, combination of shares, merger,
                  consolidation, rights offering or any other change in the
                  corporate structure or shares of the Company or a Mutual Fund,
                  the number and kind of shares or units of such investment
                  measurement method available under this Plan and credited to
                  each director's account shall be adjusted accordingly.

IV.      REDESIGNATION WITHIN A DEFERRAL ACCOUNT

         A.       General
                  -------

                  A director may request a change in the measurement methods
                  used to value all or a portion his/her account other than
                  Merck Common Stock. Amounts deferred using the Merck Common
                  Stock method and any earnings attributable to such deferrals
                  may not be redesignated. The change will be effective on (i)
                  the day when the redesignation request is received pursuant to
                  administrative guidelines established by the Human Resources
                  Financial Services area of the Treasury department, provided
                  the request is received prior to the close of the New York
                  Stock Exchange on such day or (ii) the next following business
                  day if the request is received when the New York Stock
                  Exchange is closed.

         B.       When Redesignation May Occur
                  ----------------------------

         1.       During Active Service. There is no limit on the number of
                  times a director may redesignate the portion of his/her
                  deferred account permitted to be redesignated. Each such
                  request shall be irrevocable and can be designated in whole
                  percentages or as a dollar amount.

                                       3

<PAGE>

         2.       After Death. Following the death of a director, the legal
                  representative or beneficiary of such director may redesignate
                  subject to the same rules as for active directors set forth in
                  Article IV, Section B.1.

         C.       Valuation of Amounts to be Redesignated
                  ----------------------------------------

                  The portion of the director's account to be redesignated will
                  be valued at its cash equivalent and such cash equivalent will
                  be converted into shares or units of the other measurement
                  method(s). For purposes of such redesignations, the cash
                  equivalent of the value of the Mutual Fund shares shall be the
                  closing net asset value of such Mutual Fund on (i) the day
                  when the redesignation request is received pursuant to
                  administrative guidelines established by the Human Resources
                  Financial Services area of the Treasury department, provided
                  the request is received prior to the close of the New York
                  Stock Exchange on such day or (ii) the next following business
                  day if the request is received when the New York Stock
                  Exchange is closed.

V.       PAYMENT OF DEFERRED AMOUNTS

         A.       Payment
                  -------

                  All payments to directors of amounts deferred will be in cash
                  in accordance with the distribution schedule elected by the
                  director pursuant to Article II, Section D. Distributions
                  shall be pro rata by measurement method. Distributions shall
                  be valued on the fifteenth day of the distribution month (or,
                  if such day is not a business day, the next business day) and
                  paid as soon thereafter as possible.

         B.       Changes to Distribution Schedule Prior to Termination
                  -----------------------------------------------------

                  Upon the request of a director made at any time during the
                  calendar year immediately preceding the calendar year in which
                  service as a director is expected to terminate, the Committee
                  on Directors of the Board of Directors ("Committee on
                  Directors"), in its sole discretion, may authorize: (a) an
                  extension of a payment period beyond that originally elected
                  by the director not to exceed that otherwise allowable under
                  Article II, Section D, and/or (b) a payment frequency
                  different from that originally elected by the director. Such
                  request may not be made with regard to amounts deferred after
                  December 31, 1990 using the Merck Common Stock method and to
                  any earnings attributable to such deferrals. Deferrals into
                  Merck Common Stock made after December 31, 1990 and any
                  earnings thereon may only be distributed in accordance with
                  the schedule elected by the director under Article II, Section
                  D or determined by the Committee on Directors under Article
                  VI.

         C.       Post-Termination Changes to Distribution Schedule
                  -------------------------------------------------

                  Following termination of service as a director, each director
                  may make one request for a further extension of the period for
                  distribution of his/her deferred compensation. Such request
                  must be received by the Committee on Directors prior to the
                  first distribution to the participant under his/her previously
                  elected distribution schedule. Any revised distribution
                  schedule may not exceed the deferral period otherwise
                  allowable under Article II, Section C. This request may be
                  granted and a new payment schedule determined in the sole
                  discretion of the Committee on Directors.

                                       4

<PAGE>

                  Such request may not be made with regard to amounts deferred
                  after December 31, 1990 using the Merck Common Stock Method
                  and to any earnings attributable to such deferrals. Any
                  retired director who is not subject to U.S. income tax may
                  petition the Committee on Directors to change payment
                  frequency, including a lump sum distribution, and the
                  Committee on Directors may grant such petition if, in its
                  discretion, it considers there to be reasonable justification
                  therefor. Deferrals into Merck Common Stock made after
                  December 30, 1990 and any earnings thereon may only be
                  distributed in accordance with the schedule elected by the
                  director under Article II, Section D or determined by the
                  Committee on Directors under Article VI.

         D.       Forfeitures
                  -----------

                  A director's deferred amount attributable to the Mandatory
                  Deferral Amount and earnings thereon shall be forfeited upon
                  his or her removal as a director or upon a determination by
                  the Committee on Directors in its sole discretion, that a
                  director has:

                  (i)    joined the Board of, managed, operated, participated in
                         a material way in, entered employment with, performed
                         consulting (or any other) services for, or otherwise
                         been connected in any material manner with a company,
                         corporation, enterprise, firm, limited partnership,
                         partnership, person, sole proprietorship or any other
                         business entity determined by the Committee on
                         Directors in its sole discretion to be competitive with
                         the business of the Company, its subsidiaries or its
                         affiliates (a "Competitor");

                  (ii)   directly or indirectly acquired an equity interest of
                         five (5) percent or greater in a Competitor; or

                  (iii)  disclosed any material trade secrets or other material
                         confidential information, including customer lists,
                         relating to the Company or to the business of the
                         Company to others, including a Competitor.

VI.      DESIGNATION OF BENEFICIARY

         In the event of the death of a director, the deferred amount at the
         date of death shall be paid to the last named beneficiary or
         beneficiaries designated by the director, or, if no beneficiary has
         been designated, to the director's legal representative, in one or more
         installments as the Committee on Directors in its sole discretion may
         determine.

VII.     PLAN AMENDMENT OR TERMINATION

         The Committee on Directors shall have the right to amend or terminate
         this Plan at any time for any reason.

                                       5

<PAGE>

                                   SCHEDULE A

                               MEASUREMENT METHODS

                     (February 1, 2001 - December 31, 2001)

         Merck Common Stock

         Mutual Funds

                  Acorn Fund
                  American Century Emerging Markets Fund
                  Europacific Growth Fund
                  Fidelity Destiny I
                  Fidelity Dividend Growth
                  Fidelity Equity Income Fund
                  Fidelity Low-Priced Stock Fund
                  Fidelity Retirement Money Market
                  Fidelity Spartan Government Income
                  Fidelity Spartan U.S. Equity Index
                  Franklin Small Cap Growth A
                  Janus Enterprise
                  Janus Growth & Income
                  PIMCO Foreign Bond Institutional
                  PIMCO Long Term US Government Institutional
                  PIMCO Total Return Institutional
                  Putnam Global Equity A
                  Putnam International Voyager A
                  Putnam Vista A
                  T. Rowe Price Blue Chip Growth Fund
                  Vanguard Asset Allocation
                  Vanguard U.S. Growth Portfolio

                                       6

<PAGE>

                                   SCHEDULE A

                               MEASUREMENT METHODS

                                (January 1, 2002)

         Merck Common Stock

         Mutual Funds

                  American Century Emerging Markets Fund
                  Europacific Growth Fund
                  Fidelity Destiny I
                  Fidelity Dividend Growth
                  Fidelity Equity Income Fund
                  Fidelity Low-Priced Stock Fund
                  Fidelity Retirement Money Market
                  Fidelity Spartan Government Income
                  Fidelity Spartan U.S. Equity Index
                  Franklin Small-Mid Cap Growth A
                  Janus Enterprise
                  Janus Growth & Income
                  Liberty Acorn Z
                  PIMCO Foreign Bond Institutional
                  PIMCO Long Term US Government Institutional
                  PIMCO Total Return Institutional
                  Putnam Global Equity A
                  Putnam International Voyager A
                  Putnam Vista A
                  T. Rowe Price Blue Chip Growth Fund
                  Vanguard Asset Allocation

                                       7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]