Document:

EX-10.1

EXHIBIT 10.1

AMENDED AND RESTATED

DISTRIBUTION REINVESTMENT PLAN

COLE CREDIT PROPERTY TRUST II, INC.

Effective as of December 31, 2005

Cole Credit Property Trust II, Inc., a Maryland corporation (the “Company”), has adopted this
Amended and Restated Distribution Reinvestment Plan (the “Plan”), to be administered by the Company
or an unaffiliated third party (the “Administrator”) as agent for participants in the Plan
(“Participants”), on the terms and conditions set forth below.

1. Election to Participate. Any purchaser of shares of common stock of the Company, par
value $.01 per share (the “Shares”), may become a Participant by making a written election to
participate on such purchaser’s subscription agreement at the time of subscription for Shares. Any
stockholder who has not previously elected to participate in the Plan, and subject to Section 8(b)
herein, any participant in any previous or subsequent publicly offered limited partnership, real
estate investment trust or other real estate program sponsored by the Company or its affiliates (an
“Affiliated Program”), may so elect at any time by completing and executing an authorization form
obtained from the Administrator or any other appropriate documentation as may be acceptable to the
Administrator. Participants in the Plan generally are required to have the full amount of their
cash distributions (other than “Excluded Distributions” as defined below) with respect to all
Shares or shares of stock or units of limited partnership interest of an Affiliated Program
(collectively “Securities”) owned by them reinvested pursuant to the Plan. However, the
Administrator shall have the sole discretion, upon the request of a Participant, to accommodate a
Participant’s request for less than all of the Participant’s Securities to be subject to
participation in the Plan.

2. Distribution Reinvestment. The Administrator will receive all cash distributions (other
than Excluded Distributions) paid by the Company or an Affiliated Participant with respect to
Securities of Participants (collectively, the “Distributions”). Participation will commence with
the next Distribution payable after receipt of the Participant’s election pursuant to Paragraph 1
hereof, provided it is received at least ten (10) days prior to the last day of the period to which
such Distribution relates. Subject to the preceding sentence, regardless of the date of such
election, a holder of Securities will become a Participant in the Plan effective on the first day
of the period following such election, and the election will apply to all Distributions
attributable to such period and to all periods thereafter. As used in this Plan, the term
“Excluded Distributions” shall mean those cash or other distributions designated as Excluded
Distributions by the Board of the Company or the board or general partner of an Affiliated Program,
as applicable.

3. General Terms of Plan Investments.

(a) The Company intends to offer Shares pursuant to the Plan at the higher of 95% of the
estimated value of one share as estimated by the Company’s board of directors or $9.50 per share,
regardless of the price per Security paid by the Participant for the Securities in respect of which
the Distributions are paid. A stockholder may not participate in the Plan through distribution
channels that would be eligible to purchase shares in the public offering of shares pursuant to the
Company’s prospectus outside of the Plan at prices below $9.50 per share.

(b) Selling commissions will not be paid for the Shares purchased pursuant to the Plan.

(c) Dealer manager fees will not be paid for the Shares purchased pursuant to the Plan.

(d) For each Participant, the Administrator will maintain an account which shall reflect for
each period in which Distributions are paid (a “Distribution Period”) the Distributions received by
the Administrator on behalf of such Participant. A Participant’s account shall be reduced as
purchases of Shares are made on behalf of such Participant.

(e) Distributions shall be invested in Shares by the Administrator promptly following the
payment date with respect to such Distributions to the extent Shares are available for purchase
under the Plan. If sufficient Shares are not available, any such funds that have not been invested
in Shares within 30 days after receipt by the Administrator and, in any event, by the end of the
fiscal quarter in which they are received, will be distributed to Participants. Any interest
earned on such accounts will be paid to the Company and will become property of the Company.

(f) Participants may acquire fractional Shares so that 100% of the Distributions will be used
to acquire Shares. The ownership of the Shares shall be reflected on the books of the Company or
its transfer agent.

4. Absence of Liability. Neither the Company nor the Administrator shall have any
responsibility or liability as to the value of the Shares or any change in the value of the Shares
acquired for the Participant’s account. Neither the Company nor the Administrator shall be liable
for any act done in good faith, or for any good faith omission to act hereunder.

5. Suitability. Each Participant shall notify the Administrator in the event that, at any
time during his participation in the Plan, there is any material change in the Participant’s
financial condition or inaccuracy of any representation under the Subscription Agreement for the
Participant’s initial purchase of Shares. A material change shall include any anticipated or
actual decrease in net worth or annual gross income or any other change in circumstances that would
cause the Participant to fail to meet the suitability standards set forth in the Company’s
prospectus for the Participant’s initial purchase of Shares.

6. Reports to Participants. Within ninety (90) days after the end of each calendar year, the
Administrator will mail to each Participant a statement of account describing, as to such
Participant, the Distributions received, the number of Shares purchased and the per Share purchase
price for such Shares pursuant to the Plan during the prior year. Each statement also shall advise
the Participant that, in accordance with Section 5 hereof, the Participant is required to notify
the Administrator in the event there is any material change in the Participant’s financial
condition or if any representation made by the Participant under the subscription agreement for the
Participant’s initial purchase of Securities becomes inaccurate. Tax information regarding a
Participant’s participation in the Plan will be sent to each Participant by the Company or the
Administrator at least annually.

7. Taxes. Taxable Participants may incur a tax liability for Distributions even though they
have elected not to receive their Distributions in cash but rather to have their Distributions
reinvested in Shares under the Plan.

8. Reinvestment in Subsequent Programs.

(a) After the termination of the Company’s initial public offering of Shares pursuant to the
Company’s prospectus dated June 27, 2005 (the “Initial Offering”), the Company may determine, in
its sole discretion, to cause the Administrator to provide to each Participant notice of the
opportunity to have some or all of such Participant’s Distributions (at the discretion of the
Administrator and, if applicable, the Participant) invested through the Plan in any publicly
offered limited partnership, real estate investment trust or other real estate program sponsored by
the Company or an Affiliated Program (a “Subsequent Program”). If the Company makes such an
election, Participants may invest Distributions in equity securities issued by such Subsequent
Program through the Plan only if the following conditions are satisfied:

(i) prior to the time of such reinvestment, the Participant has received the final
prospectus and any supplements thereto offering interests in the Subsequent Program and
such prospectus allows investment pursuant to a distribution reinvestment plan;

(ii) a registration statement covering the interests in the Subsequent Program has
been declared effective under the Securities Act of 1933, as amended;

(iii) the offering and sale of such interests are qualified for sale under the
applicable state securities laws;

(iv) the Participant executes the subscription agreement included with the prospectus
for the Subsequent Program; and

(v) the Participant qualifies under applicable investor suitability standards as
contained in the prospectus for the Subsequent Program.

(b) The Company may determine, in its sole discretion, to cause the Administrator to allow one
or more participants of an Affiliated Program to become a “Participant.” If the Company makes such
an election, such Participants may invest distributions received from the Affiliated Program in
Shares through this Plan, if the following conditions are satisfied:

(i) prior to the time of such reinvestment, the Participant has received the final
prospectus and any supplements thereto offering interests in the Subsequent Program and
such prospectus allows investment pursuant to a distribution reinvestment plan;

(ii) a registration statement covering the interests in the Subsequent Program has
been declared effective under the Securities Act of 1933, as amended;

(iii) the offering and sale of such interests are qualified for sale under the
applicable state securities laws;

(iv) the Participant executes the subscription agreement included with the prospectus
for the Subsequent Program; and

(v) the Participant qualifies under applicable investor suitability standards as
contained in the prospectus for the Subsequent Program.

9. Termination.

(a) A Participant may terminate or modify his participation in the Plan at any time by written
notice to the Administrator. To be effective for any Distribution, such notice must be received by
the Administrator at least ten (10) days prior to the last day of the Distribution Period to which
it relates.

(b) Prior to the listing of the Shares on a national securities exchange or inclusion of the
Shares for quotation on The Nasdaq National Market, a Participant’s transfer of Shares will
terminate participation in the Plan with respect to such transferred Shares as of the first day of
the Distribution Period in which such transfer is effective, unless the transferee of such Shares
in connection with such transfer demonstrates to the Administrator that such transferee meets the
requirements for participation hereunder and affirmatively elects participation by delivering an
executed authorization form or other instrument required by the Administrator.

10. State Regulatory Restrictions. The Administrator is authorized to deny participation in
the Plan to residents of any state or foreign jurisdiction that imposes restrictions on
participation in the Plan that conflict with the general terms and provisions of this Plan,
including, without limitation, any general prohibition on the payment of broker-dealer commissions
for purchases under the Plan.

11. Amendment or Termination by Company.

(a) The terms and conditions of this Plan may be amended by the Company at any time, including
but not limited to an amendment to the Plan to substitute a new Administrator to act as agent for
the Participants, by mailing an appropriate notice at least ten (10) days prior to the effective
date thereof to each Participant.

(b) The Administrator may terminate a Participant’s individual participation in the Plan and
the Company may terminate the Plan itself, at any time by providing ten (10) days’ prior written
notice to a Participant, or to all Participants, as the case may be.

(c) After termination of the Plan or termination of a Participant’s participation in the Plan,
the Administrator will send to each Participant a check for the amount of any Distributions in the
Participation’s account that have not been invested in Shares. Any future Distributions with
respect to such former Participant’s Shares made after the effective date of the termination of the
Participant’s participation will be sent directly to the former Participant.

12. Participation by Limited Partners of Cole Operating Partnership II, LP. For purposes of
this Plan, “stockholders” shall be deemed to include limited partners of Cole Operating Partnership
II, LP (the “Partnership”), “Participants” shall be deemed to include limited partners of the
Partnership that elect to participate in the Plan, and “Distribution,” when used with respect to a
limited partner of the Partnership, shall mean cash distributions on limited partnership interests
held by such limited partner.

13. Governing Law. This Plan and the Participants’ election to participate in the Plan shall
be governed by the laws of the State of Maryland.

14. Notice. Any notice or other communication required or permitted to be given by any
provision of this Plan shall be in writing and, if to the Administrator, addressed to Investor
Services Department, 2555 East Camelback Road, Suite 400, Phoenix, Arizona 85016, or such other
address as may be specified by the Administrator by written notice to all Participants. Notices to
a Participant may be given by letter addressed to the Participant at the Participant’s last address
of record with the Administrator. Each Participant shall notify the Administrator promptly in
writing of any changes of address.EX-10.1

Exhibit 10.1

MERCK & CO., INC.

DEFERRAL PROGRAM

(Amended and Restated as of December 15, 2005)

1

TABLE OF CONTENTS

Page

	 	 	 	 	 
	Article I Administration
	 	 	1	 
	Article II Eligibility
	 	 	1	 
	Article III Deferral Into a Deferred Compensation Account
	 	 	1	 
	Article IV Valuation of Deferred Compensation Accounts
	 	 	2	 
	Article V Redesignation Within a Deferred Compensation Account
	 	 	4	 
	Article VI Distribution of Deferred Compensation Accounts
	 	 	6	 
	Article VII Deductions from Distributions
	 	 	8	 
	Article VIII Beneficiary Designations
	 	 	8	 
	Article IXAmendments
	 	 	8	 
	Schedule I Deferral Program Investment Alternatives
	 	 	9	 
	Schedule IISpecial Provisions Applicable to Medco Health Employees
	 	 	15	 
	Schedule AJCA
	 	 	16	 

(i)

2

MERCK & CO., INC. DEFERRAL PROGRAM

The Deferral Program (“the Program”) is intended to permit a select group of management to
defer income which would otherwise be immediately payable to them as annual base salary or under
various incentive plans of Merck & Co., Inc. (“the Company”).

I. ADMINISTRATION

This Program is administered by the Compensation and Benefits Committee of the Company’s Board
of Directors. This Committee is composed of non-employee directors only. The Committee shall have
responsibility for determining which investments will be available under the Program, and those
investments shall be listed on Schedule I hereto. The Committee shall review the investment
selections at least once every five years. The Committee shall make all decisions affecting the
timing, price or amount of any and all of the Deferred Compensation of participants subject to
Section 16 of the Securities Exchange Act of 1934, as amended (“Section 16 Officers”), but may
otherwise delegate any of its authority under this Program.

II. ELIGIBILITY

Eligibility to defer under this Program will be determined in accordance with the terms of the
Company’s Base Salary Deferral Plan and various incentive plans. However, the Committee has the
authority to refuse to permit an employee to participate in this Program, if the Committee
determines that such participation would jeopardize the Program’s compliance with applicable law or
the Program’s status as a top hat plan under the Employee Retirement Income Security Act.

III. DEFERRAL INTO A DEFERRED COMPENSATION ACCOUNT

A. Election to Defer

A participant’s decision to defer under the Program must be made, (i) for the Base Salary
Deferral Plan, prior to the commencement of the pay period during which the base salary to be
deferred will be earned, (ii) for annual incentive plans, prior to the commencement of the
performance year during which the bonus monies to be deferred will be earned, and (iii) for
long-term incentive plans, prior to the commencement of the last year of the award period during
which the bonus monies to be deferred will be earned. For purposes of annual incentive plans only,
a participant who is hired by the Company during a performance year may make an election, no later
than the thirtieth (30th) day from the participant’s date of hire, to defer bonus monies
to be earned during such performance year. For the Base Salary Deferral Plan, only amounts equal
to or in excess of five percent (5%) of Annual Base Salary (as defined in the Base Salary Deferral
Plan) and less than or equal to the lesser of (1) fifty percent (50%) of Annual Base Salary or (2)
the Participant’s Annual Base Salary in excess of the amount determined under Section 401(a)(17) of
the Internal Revenue Code may be deferred. For the annual and long-term incentive plans, only
amounts in excess of $3,000 may be deferred. Amounts so deferred are known as “Deferred
Compensation” and will be credited to the participant’s “Deferred Compensation Account.” Deferred
Compensation shall be held in one account regardless of the plan (Base Salary Deferral or incentive
plan) under which it was deferred.

B. Election of Distribution Schedule

1. Timing of Election

The participant shall also elect a distribution schedule for his/her Deferred Compensation. A
participant’s election of a distribution schedule in connection with a deferral election under
annual and/or long-term incentive plans shall be made at the same time that the participant makes
the election to defer. A participant’s initial election of a distribution schedule in connection
with deferrals under the Base Salary Deferral Plan shall be made at the same time as the initial
deferral election, shall be irrevocable during the calendar year for which it was made and shall
apply to all deferrals of Annual Base Salary until a new distribution election becomes effective.
Thereafter, an election of a different distribution schedule in connection with deferrals under the
Base Salary Deferral Plan may be made at any time, provided, however, that such new distribution
schedule shall only apply prospectively to deferrals of Annual Base Salary in the following
calendar year.

2. Distribution Schedule

A participant may elect to have payments begin at the participant’s actual retirement date,
subsequent to that date or prior thereto. A participant may elect a lump sum or a schedule of
annual installments, up to a maximum of 15 annual installments. No installment, however, may be
payable more than fifteen years after the participant’s termination of employment.

C. Election of Investment Alternatives

The participant shall designate, in accordance with procedures established by the Company for
such designation, the portion (in multiples of 1%) of the Deferred Compensation to be allocated to
any investment alternative available under this Program.

IV. VALUATION OF DEFERRED COMPENSATION ACCOUNTS

A. Common Stock 

1. Initial Crediting

The 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 Merck
Common Stock on the New York Stock Exchange on the date cash payments of base salary, for amounts
deferred under the Base Salary Deferral Plan, or incentive awards, for amounts deferred under the
various incentive plans, would otherwise be paid to the participant (“the Deferral Date”). Should
the Committee determine that valuation on any 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 paragraph. The Company shall credit the participant’s Deferred
Compensation Account with the number of full and partial shares of Merck Common Stock so
determined. However, at no time prior to the delivery of such shares shall any shares be purchased
or earmarked for such Account and the participant shall not have any of the rights of a shareholder
with respect to shares credited to his/her Deferred Compensation Account.

3

2. Dividends

The Company shall credit the Participant’s Deferred Compensation Account with the number of
full and partial shares of Merck Common Stock purchasable at the closing price of Merck Common
Stock on the New York Stock Exchange as of the date each dividend is paid on the Common Stock, with
the dividends which would have been paid on the number of shares credited to such Account
(including pro rata dividends on any partial share) had the shares so credited then been issued and
outstanding.

3. Redesignations

The value of Merck Common Stock for purposes of redesignation shall be the closing price of
Merck Common Stock on the New York Stock Exchange 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.

4. Distributions

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

5. Limitations

Shares of Merck Common Stock to be delivered under the provisions of this Program may be
delivered by the Company from its authorized but unissued shares of Common Stock or from Common
Stock held in the treasury. The amount of shares available each year under this Program shall be
one-tenth of one-percent of outstanding shares of Merck Common Stock on the last business day of
the preceding calendar year plus any shares authorized under this Program in previous years but not
used, minus any shares distributed under the Executive Incentive Plan after April 26, 1994.

6. 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, the number and kind of shares of Merck Common Stock available under this
Program or credited to participants’ Deferred Compensation Accounts shall be adjusted accordingly.

B. Mutual Funds

1. Initial Crediting

The amount allocated to each Mutual Fund shall be used to determine the number of full and
partial Mutual Fund shares that such amount would purchase at the closing net asset value of the
Mutual Fund shares on the Deferral Date. The Company shall credit the participant’s Deferred
Compensation Account with the number of full and partial Mutual Fund shares so determined.
However, no Mutual Fund shares shall be purchased or earmarked for such Account, nor shall the
participant have the rights of a shareholder with respect to such Mutual Fund shares.

2. Dividends

The Company shall credit the participant’s Deferred Compensation Account with the number of
full and partial Mutual Fund shares 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 credited to such Account (including pro rata dividends
on any partial share) had the shares then been owned by the participant for purposes of the above
computation.

3. Redesignations

The value of Mutual Fund shares for purposes of redesignation shall be the net asset value of
such Mutual Fund at the close of business 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.

4. Distributions

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

5. 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 a Mutual Fund, the number and kind of shares of that Mutual Fund credited to
participants’ Deferred Compensation Accounts shall be adjusted accordingly.

V. REDESIGNATION WITHIN A DEFERRED COMPENSATION ACCOUNT

A. Basic Redesignation Rules

A participant, or the beneficiary or legal representative of a deceased participant, may
redesignate amounts credited to a Deferred Compensation Account among the investments available
under this Program in accordance with the following rules:

	 	(1)	 	Eligible Participants - Active employees, separated employees and retired
participants are eligible to redesignate.

	 	(2)	 	Frequency and Timing — Effective June 1, 1999, there is no limit on the number of
times a participant may redesignate amounts measured by Mutual Funds, or, subject to
Section B, below, Merck Common Stock. Redesignation shall take place 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.

	 	(3)	 	Amount and Extent of Redesignation - Redesignation must be in 1% multiples of the
investment from which redesignation is being made.

	 	(4)	 	Beneficiaries or Legal Representatives — The beneficiary or legal representative of
a deceased participant may redesignate subject to the same rules as participants.

B. Special Rules for Redesignation Out of Common Stock 

1. Frequency and Timing

For Section 16 Officers, redesignations may only be made out of Merck Common Stock during any
window period established by the Company from time-to-time and is restricted to amounts held in
Merck Common Stock for longer than six (6) months.

2. Material, Nonpublic Information

The Committee, in its sole discretion and with advice of counsel, at any time may rescind a
redesignation out of Merck Common Stock if such redesignation was made by a participant who, a) at
the time of the redesignation was in the possession of material, nonpublic information with respect
to the Company; and b) in the Committee’s estimation benefited from such information in the timing
of his/her redesignation. The Committee’s determination shall be final and binding. In the event
of such rescission, the participant’s Deferred Compensation Account shall be returned to a status
as though such redesignation had not occurred. Notwithstanding the above, the Committee shall not
rescind a redesignation if the facts were reviewed by the participant with the General Counsel of
the Company or a designee prior to the redesignation and if the General Counsel or designee had
concluded that such participant was not in possession of adverse material, nonpublic information.

C. Conversion of Common Stock Accounts

The Committee may, in its sole discretion, convert all of the shares of Merck Common Stock
allocated to a participant’s Deferred Compensation Account in the manner provided below where a
position which a terminated or retired participant has taken or wishes to take is, in the opinion
of the Committee, such as would make uncertain the propriety of the participant’s having a
continued interest in Merck Common Stock. The date of conversion shall be the date of commencement
of such other employment or the date of the Committee’s action, whichever is later.

Conversion shall be from an expression of value in shares of Merck Common Stock in the
participant’s Deferred Compensation Account to an expression of value in United States dollars in
another available investment. The value of the Merck Common Stock shall be based upon its closing
price on the New York Stock Exchange on the date of conversion or if no trading took place on such
day, the next business day on which trading took place. Any conversion under this paragraph shall
be irrevocable and absolute.

VI. DISTRIBUTION OF DEFERRED COMPENSATION ACCOUNTS

Distribution of Deferred Compensation Accounts shall be made in accordance with the
participant’s distribution schedule pro rata by investment. Distributions from Merck Common Stock
will be made in shares, with cash payable for any partial share, subject to the limitations set
forth in Article IV, Section A.5. For Section 16 Officers, distribution of amounts in Merck Common
Stock is also restricted to amounts held in Merck Common Stock for longer than six months.
Distributions from Mutual Funds will be in cash. Distributions will 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 practicable.

A. Retirement

A participant’s retirement from active service will cause distributions of his/her Deferred
Compensation Account to commence as soon as administratively feasible in accordance with the
participant’s previously elected schedule.

If a participant retires from active service prior to age 65, the Committee may establish a
different distribution schedule. The schedule chosen by the Committee, however, shall not be
shorter than the participant’s previously elected schedule unless there has been or would be a
significant change in the participant’s economic circumstances attributable to the participant’s
early retirement. If the Committee decides to change the participant’s distribution schedule, the
participant’s Deferred Compensation Account must be distributed ratably over no less than five
years. However, if a participant has retired at the Company’s request, the limitation in the
preceding sentence does not apply.

B. Death

In the event of a participant’s death, distributions under this Program will commence as soon
as administratively feasible in accordance with his/her previously elected schedule. The
participant’s beneficiary or legal representative, however, may request that the Committee change
such distribution schedule.

C. Automatic Distribution

If a participant terminates employment for reasons other than death, divestiture or a
separation due to reorganization, reduction in force, elimination of the participant’s job, or to
take a position with a joint venture or other business entity defined in Section E, below, and is
not eligible to retire from active service under one of the Company’s pension plans, then his/her
Deferred Compensation Account will be automatically paid in a lump sum as soon as administratively
feasible following his/her termination of employment. Furthermore, except as provided in Schedule
II, any participant who dies, retires from active service, or whose employment terminates as a
result of a divestiture, or a separation due to reorganization, reduction in force, or elimination
of the participant’s job, but whose Deferred Compensation Account is valued at less than $125,000
on the date of his/her death, retirement, termination due to divestiture or separation will have
his/her Deferred Compensation Account distributed in a lump sum as soon as administratively
feasible following his/her death, retirement, or termination due to divestiture or separation.

D. Termination Due to Divestiture or Separation

If a participant is employed by a subsidiary of the Company that is sold, so that the
subsidiary is no longer considered within the controlled group of the Company, that participant
shall be considered to have terminated employment with the Company for purposes of this Program.
If a participant’s employment terminates as a result of a divestiture of a division or subsidiary
of the Company, or as a result of a separation due to a reorganization, reduction in force, or
elimination of the participant’s job, distributions under this Program will commence as soon as
administratively feasible after such termination of employment in accordance with his/her
previously elected schedule or such schedule as the Committee, in its discretion, may approve in
accordance with Section G, below.

E. Joint Venture Service

A participant’s termination of employment in order to take a position with a joint venture or
other business entity in which the Company shall directly or indirectly own fifty percent or more
of the outstanding voting or other ownership interest shall not be considered a termination of
employment with the Company for purposes of distribution under this Program.

F. Hardship Distributions

The Committee, in its sole discretion, may accelerate the time of distribution of a
participant’s Deferred Compensation Account, if the participant experiences severe financial
hardship due to illness, accident or death in the immediate family, loss of or damage to property
due to casualty, or other extraordinary and unforeseeable circumstances. Such participant should
provide the Committee with a statement in reasonable detail as to the nature of such financial
hardship together with a statement that such acceleration is necessary to alleviate such hardship.

G. Post-Retirement, Post-Divestiture and Post-Separation Modifications

A participant who has retired from active service or whose employment has terminated as a
result of a divestiture or separation as described in Section D, above, may submit one petition to
the Committee requesting an extension of the period of distribution of his/her Deferred
Compensation Account. Such petition must be received by the Committee prior to the first
distribution to the participant of his/her previously elected distribution schedule. Any revised
distribution schedule may not exceed fifteen years from the date of actual retirement, or the
divestiture or separation date and will be effective the beginning of the next calendar year. The
Committee shall in no event grant a new schedule under which the participant would cumulatively
receive a greater portion of his/her Deferred Compensation Account as measured at the end of each
calendar year. Except as provided in Schedule II, a participant who is an active employee may not
make a request under this paragraph.

VII. DEDUCTIONS FROM DISTRIBUTIONS

The Company will deduct from each distribution amounts required to be withheld for income,
Social Security and other tax purposes. Such withholding will be done on a pro rata basis per
investment. The Company may also deduct any amounts the participant owes the Company for any
reason.

VIII. BENEFICIARY DESIGNATIONS

A participant under this program may designate a beneficiary to receive his/her Deferred
Compensation Account upon the participant’s death. Should the beneficiary predecease the
participant or should the participant not name a beneficiary, the participant’s Deferred
Compensation Account will be distributed to the participant’s estate.

IX. AMENDMENTS

The Committee may amend this Program at any time. However, such amendment shall not
materially adversely affect any right or obligation with respect to any Deferred Compensation made
theretofore.

4

SCHEDULE I

DEFERRAL PROGRAM INVESTMENT ALTERNATIVES

(January 1, 2002 – January 10, 2003)

Merck Common Stock

Mutual Funds

American Century Emerging Markets Fund

American Funds 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 Fund-Class Z

PIMCO Foreign Bond Institutional

PIMCO Long Term US Government Institutional

PIMCO Total Return Institutional

Putnam Global Equity Fund A*

Putnam International Voyager A

Putnam Vista A

T. Rowe Price Blue Chip Growth Fund

Vanguard Asset Allocation

• From September 20, 2002 – September 30, 2002, this investment was briefly named the Putnam
Global Growth Fund A as a result of the merger, in September 2002, of Putnam Global Equity Fund A
with Putnam Global Growth Fund A. The merged fund briefly retained the name “Putnam Global Growth
Fund A.” Effective October 1, 2002, the merged fund changed its name to “Putnam Global Equity Fund
A.”

5

SCHEDULE I

DEFERRAL PROGRAM INVESTMENT ALTERNATIVES

(Effective January 11, 2003 to July 31, 2003)

Merck Common Stock

Mutual Funds

American Century Emerging Markets Institutional

American Funds EuroPacific Growth Fund

Fidelity Destiny I

Fidelity Dividend Growth

Fidelity Equity-Income

Fidelity Low-Priced Stock

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 Class Z

PIMCO Foreign Bond Institutional

PIMCO Long Term US Government Institutional

PIMCO Total Return Institutional

Putnam Global Equity A

Putnam International Capital Opportunities Fund A*

Putnam Vista A

T. Rowe Price Blue Chip Growth

Vanguard Asset Allocation

• Prior to April 30, 2003, known as Putnam International Voyager Fund A

Redesignation of Deferred Amounts measured by Putnam Vista A on July 31, 2003

Prior to 4 p.m. ET on July 31, 2003, each participant who has any part of his/her Deferred
Compensation Account measured by the Putnam Vista A investment alternative may redesignate the
amount in such investment alternative in accordance with Article V, Section A. If a participant
does not redesignate the amount measured by the Putnam Vista A investment alternative to any other
remaining investment alternatives before 4 p.m. ET on July 31, 2003, then the amount in the Putnam
Vista A account shall be redesignated as of 4 p.m. ET on July 31, 2003, to the Fidelity Mid-Cap
Stock Fund.

6

SCHEDULE I

DEFERRAL PROGRAM INVESTMENT ALTERNATIVES

(Effective July 31, 2003-November 19, 2003)

Merck Common Stock

Mutual Funds

American Century Emerging Markets Institutional

American Funds EuroPacific Growth Fund

Columbia Acorn Fund Z*

Fidelity Destiny I

Fidelity Dividend Growth

Fidelity Equity-Income

Fidelity Low-Priced Stock

Fidelity Mid-Cap 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

PIMCO Foreign Bond Institutional

PIMCO Long Term US Government Institutional

PIMCO Total Return Institutional

Putnam Global Equity A

Putnam International Capital Opportunities Fund A**

T. Rowe Price Blue Chip Growth

Vanguard Asset Allocation

• Prior to October 2003, known as Liberty Acorn Class Z

** Prior to April 30, 2003, known as Putnam International Voyager Fund A

Redesignation of Deferred Amounts measured by Putnam Global Equity A and Putnam International
Capital Opportunities Fund A (collectively, the “Putnam Funds”) on November 19, 2003

Prior to 4 p.m. ET on November 19, 2003, each participant who has any part of his/her Deferred
Compensation Account measured by a Putnam Funds investment alternative may redesignate the amount
in such investment alternative in accordance with Article V, Section A. If a participant does not
redesignate the amount measured by a Putnam Funds investment alternative to any other remaining
investment alternative(s) before 4 p.m. ET on November 19, 2003, then the amount in the Putnam
Funds investment alternative shall be redesignated as of 4 p.m. ET on November 19, 2003, to the
Fidelity Retirement Money Market portfolio.

7

SCHEDULE I

DEFERRAL PROGRAM INVESTMENT ALTERNATIVES

(November 19, 2003 to April 2, 2004)

Merck Common Stock

Mutual Funds

American Century Emerging Markets Institutional

American Funds EuroPacific Growth Fund

Columbia Acorn Class Z*

Fidelity Destiny I

Fidelity Dividend Growth

Fidelity Equity-Income

Fidelity Low-Priced Stock

Fidelity Mid-Cap 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

PIMCO Foreign Bond Institutional

PIMCO Long Term US Government Institutional

PIMCO Total Return Institutional

T. Rowe Price Blue Chip Growth

Vanguard Asset Allocation

• Prior to October 2003, known as Liberty Acorn Class Z

8

SCHEDULE I

DEFERRAL PROGRAM INVESTMENT ALTERNATIVES

(April 2, 2004 to January 31, 2005)

Merck Common Stock

Mutual Funds

American Century Emerging Markets Institutional

American Funds EuroPacific Growth Fund

Columbia Acorn Class Z*

Fidelity Destiny I

Fidelity Dividend Growth

Fidelity Equity-Income

Fidelity Low-Priced Stock

Fidelity Mid-Cap Stock Fund

Fidelity Retirement Money Market

Fidelity Spartan Government Income

Fidelity Spartan U.S. Equity Index

Janus Enterprise

Janus Growth & Income

PIMCO Foreign Bond Institutional

PIMCO Long Term US Government Institutional

PIMCO Total Return Institutional

T. Rowe Price Blue Chip Growth

Vanguard Asset Allocation

• Prior to October 2003, known as Liberty Acorn Class Z

9

SCHEDULE I

(February 1, 2005)*

Merck Common Stock Fund

Mutual Funds

AXA Rosenberg U.S. Small Capitalization Account

American Funds EuroPacific Growth Fund — Class A

Columbia Acorn Fund — Class Z

Fidelity Diversified International Fund

Fidelity Freedom 2005 Fund

Fidelity Freedom 2010 Fund

Fidelity Freedom 2015 Fund

Fidelity Freedom 2020 Fund

Fidelity Freedom 2025 Fund

Fidelity Freedom 2030 Fund

Fidelity Freedom 2035 Fund

Fidelity Freedom 2040 Fund

Fidelity Low-Priced Stock Fund

Fidelity Retirement Money Market Portfolio

GMO U.S. Core Fund – M

PIMCO Total Return Fund — Institutional Class

SSgA S&P 500 Index Fund

T. Rowe Price Blue Chip Growth Fund

• Or as near thereto as is administratively feasible

10

SCHEDULE II

SPECIAL PROVISIONS APPLICABLE TO

MEDCO HEALTH EMPLOYEES

(Approved July 23, 2002)

DEFINITIONS

Medco Health – Medco Health Solutions, Inc.

Medco Health Employee – A participant who is (i) employed by Medco Health prior to the
Spin-Off or (ii) employed by Merck prior to the Spin-Off and expected to be employed by Medco
Health prior to or as of the Spin-Off.

Separated Medco Health Employee – A participant in the Deferral Program who is employed by
Medco Health as of the date of the Spin-Off and is considered to have terminated employment with
the Company as a result of the Spin-Off.

Spin-Off — The distribution by Merck to its shareholders of the equity securities of Medco
Health. The Spin-Off will be a divestiture for purposes of the Deferral Program.

SPECIAL PROVISIONS

Notwithstanding anything to the contrary in Article VI, Section C of the Deferral Program, the
Deferred Compensation Account of each Separated Medco Health Employee shall be paid out in
accordance with Article VI, Section D, without regard to the $125,000 threshold set forth in
Section C.

Notwithstanding anything to the contrary in Article VI, Section G of the Deferral Program, each
Medco Health Employee may submit the petition for an extension of the distribution schedule
permitted under Section G either prior to the Spin-Off or once the Medco Health Employee has become
a Separated Medco Health Employee; provided, however, that if a Medco Health Employee makes a
request for a new distribution schedule prior to the Spin-Off and thereafter does not become a
Separated Medco Health Employee, then such request shall not be effective.

11

Schedule AJCA

(effective December 15, 2005)

Anything in the Program to the contrary notwithstanding, prior to
the end of 2005, Eligible Participants may elect to cancel any or
all prior deferral elections into the Deferral Program.

To the extent shares of Merck Common Stock are distributed as a
result of any such cancellation, a dividend equivalent for the
amount that would be paid if the shares were held by a shareholder
on November 30, 2005 will be distributed before December 31, 2005.

Distribution of Deferred Compensation the election of which has
been cancelled shall be made no later than December 31, 2005.

For purposes of this Schedule, Eligible Participants include all
participants in the Program.

Anything in the Program to the contrary notwithstanding, where a
participant has elected that distributions be made beginning in
the year of retirement, distribution shall not be made in 2006 for
participants who retire or are separated due to a divestiture of a
division or subsidiary of the Company, or as a result of a
separation due to a reorganization, reduction in force, or
elimination of the participant’s job (a “Separation”), in 2006
(“Active Eligible Participants”); provided, however,
Automatic Distributions pursuant to Paragraph C. of Article VI
shall be made in 2006 to the extent applicable.

12

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